The entertainment and gaming corporation, Boyd Gaming, announced outstanding financial performance for the third quarter of fiscal year 2021. Their total earnings reached $843.1 million, reflecting a substantial 29% rise compared to the corresponding period in the previous year. This revenue surge yielded a net profit of $138.2 million, equating to $1.21 per share. This result stands in sharp contrast to the $38.1 million, or 0.33 cents per share, achieved in the third quarter of 2020.
The firm attributes this accomplishment to a tactical realignment of its operations, emphasizing the cultivation of loyalty within its primary customer demographic and the implementation of streamlined practices. This customer-focused strategy, coupled with a resurgence in the travel and leisure sector, has generated five consecutive quarters of robust performance, culminating in unprecedented figures for Q3.
Boyd Gaming expresses confidence in the sustainability of this upward trend. They emphasized a notable increase in both expenditure and visitation rate from their core clientele, in conjunction with operational enhancements, as pivotal factors contributing to their record-setting revenue and remarkable 42% expansion in EBITDAR.
Looking towards the future, the company maintains an optimistic outlook. As pandemic-related limitations ease and consumer trust in travel and entertainment experiences continues to strengthen, Boyd Gaming projects further growth in both revenue generation and EBITDAR.
To leverage this favorable momentum and capitalize on emerging prospects, Boyd Gaming’s board of directors has sanctioned a $300 million share repurchase initiative. This strategic maneuver underscores the company’s solid financial standing and their belief in their ongoing expansion.
This initiative demonstrates the board’s faith in the company’s prospective expansion and their commitment to prudent financial management for growth.
They retain the capacity to allocate approximately $61 million towards repurchasing company stock, an action they intend to undertake consistently. As of September 30, 2021, Boyd Gaming possessed $570 million in cash reserves and $3.38 billion in outstanding liabilities.
