Boyd Gaming sees greater effect from hurricane than Strip shooting

Boyd Gaming Corp. said it has seen a greater effect on its business from Hurricane Harvey than from the shooting on the Strip.

Boyd properties near the Strip experienced a slight uptick in cancellations in the days after the shooting, Chief Executive Officer Keith Smith told Wall Street analysts on a conference call on Thursday. However, business quickly returned to normal, he said.

“We are not really seeing an impact to the overall business,” Smith said in reference to the shooting.

The negative impact from the shooting is being partially offset by construction at the Palms, which is driving some customers to Boyd’s The Orleans and Gold Coast properties located nearby, Smith said.

“We have seen some pickup from [the Palms],” he told the analysts.

On the other hand, Boyd’s Delta Downs Racetrack Casino in Louisiana was shut for several days as Hurricane Harvey dumped several feet of rainfall on the Gulf region.

Overall, Smith expressed optimism about the outlook for Boyd’s Las Vegas gaming business, describing it as an “extremely strong market” with downtown showing “no signs of slowing.”

Smith said the gaming strength is driven by solid job and wage growth and rising home prices in Nevada.

The state’s economy is “much healthier, much more diversified,” Smith said, adding that Boyd would like to acquire more gaming assets in Nevada.

Third-quarter results

Earlier on Thursday, the company announced third-quarter net revenue rose 11 percent driven by gains at its newly acquired properties in Las Vegas.

Companywide net revenue rose to $588 million during the three months ended Sept. 30 from $532 million in the year-earlier period, the company said in a statement.

Las Vegas locals net revenue surged 39 percent to $207 million as Boyd purchased the Aliante Hotel, Cannery and Eastside Cannery late last year. Downtown Las Vegas net revenue grew 3.9 percent to $58.8 million.

Operating income companywide rose 16 percent to $78.6 million. Net profit though fell to $22.9 million from $343 million as the company did not repeat any one-time tax breaks and assets sales in the quarter.

The company last year posted a tax benefit of $190 million in the third quarter in addition to a $180 million gain from the sale of a gaming property.

Shares of Boyd fell 53 cents, or 1.9 percent, Thursday to $27.17. They rose more than 1 percent in after-hours trade.

Contact Todd Prince at 702-383-0386 or tprince@reviewjournal.com. Follow @toddprincetv on Twitter.