What the changes say
- Debt risks are more detailed, while consolidated long-term debt fell to $2.1 billion from $3.2 billion.
- Annual rent to GLPI increased to $113.8 million from $111.4 million.
- Impairment charges rose sharply to $128.4 million from $10.5 million.
What changed since the prior 10-K
New
- NewRisks Related to our Indebtedness
We have incurred a significant amount of indebtedness in the past and may incur significant indebtedness in the future, which could adversely affect our business and financial condition
Boyd had $2.1 billion of long-term debt at year-end and may add substantial debt for expansion, investments, development, or strategic initiatives.
- NewRisks Related to our Indebtedness
The terms of our Credit Facility and other debt instruments do not fully prohibit us or our subsidiaries from incurring additional indebtedness, and borrowings under the Credit Facility could be effectively senior to other indebtedness to the extent of the value of the collateral securing such borrowings
Debt agreements permit additional borrowing, and Credit Facility borrowings may effectively rank ahead of other debt through collateral.
- NewRisks Related to our Indebtedness
The restrictive covenants in our Credit Facility and other debt instruments may limit our operational and financial flexibility, and failure to comply with these covenants could adversely impact our business
Debt covenants restrict borrowing, liens, investments, acquisitions, dividends, and other actions; financial limits include 2.50 interest coverage and 4.50 leverage ratios.
Dropped
- DroppedRisks Related to our Indebtedness
We have a significant amount of indebtedness
- DroppedRisks Related to our Indebtedness
We and our subsidiaries are able to incur substantially more debt, which could further exacerbate the risks described above
Reworded
- 69% rewrittenRisks Related to our Indebtedness
We require a significant amount of cash to service our debt. Our ability to generate cash depends on many factors beyond our control
The risk now covers servicing debt as well as payments and refinancing, and replaces the prior statement that sufficient cash generation was unlikely with a possibility.
- 49% rewrittenRisks Related to our Equity Ownership
Certain of our stockholders own large interests in our capital stock and may significantly influence our affairs
Boyd family ownership increased from approximately 27% to 30%; Marianne Boyd Johnson is now identified as Chairman rather than Executive Chairman.
- 43% rewrittenRisks Related to our Indebtedness
We are required to pay a substantial amount of rent pursuant to our Master Lease agreements with GLPI, which impacts free cash flow and could limit our ability to invest in our operations or seek additional development or strategic opportunities
Annual GLPI rent increased from $111.4 million to $113.8 million, with casualty and rebuilding obligations stated more explicitly.
- 37% rewrittenRisks Related to our Business
We may incur impairments to goodwill, indefinite-lived intangible assets, or long-lived assets
The risk now expressly includes long-lived asset testing, and reported impairment charges increased to $128.4 million in 2025 from $10.5 million in 2024.
- 34% rewrittenRisks Related to our Properties
We draw a significant percentage of our customers from certain geographic regions. Events adversely impacting the economy of these regions, including public health outbreaks and man-made or natural disasters, may adversely impact our business
Hawaiian customers now represent approximately half rather than more than half of room nights, while COVID-related disruption is replaced by mechanical-failure and regulatory-compliance risks.
- 23% rewrittenRisks Related to our Indebtedness
fund working capital, capital expenditures and other general corporate activities; and
The wording shifts from limiting the ability to pursue opportunities to affecting responses to business and industry changes, and changes “would” otherwise pursue to “might.”
Was: limit our ability to fund working capital, capital expenditures and other general corporate purposes; and
- 20% rewrittenRisks Related to our Properties
Some of our hotels and casinos are located on leased property. If we default on one or more leases, the applicable lessors could terminate the affected leases, and we could lose possession of the affected hotel and/or casino
The lease risk is substantively unchanged, with minor singular and wording edits concerning lease expiration and long-term leased land.
All 23 risk factors
Headings as the filing states them, in filing order.
Other
- 01In addition to the other information contained in this report on Form 10-K, the following Risk Factors should be considered carefully in evaluating our business
Risks Related to our Business
- 02Our business is particularly sensitive to reductions in discretionary consumer spending due to inflation and downturns in the economy
- 03Failure to maintain the integrity of our information technology systems, protect our internal information, or comply with applicable privacy and data security regulations could adversely affect us
- 04Our technology infrastructure is critical to the performance of our digital gaming operations, and any system failures, errors, defects, or disruptions could adversely affect our operations
- 05Intense competition exists in the gaming industry, and we expect competition to continue to intensify
- 06We also compete with legalized gaming from casinos located on Native American tribal lands. Expansion of Native American gaming in areas located near our properties, or in areas in or near those from which we draw our customers, could have an adverse effect on our operating results
- 07We may incur impairments to goodwill, indefinite-lived intangible assets, or long-lived assets37% rewritten
Risks Related to the Regulation of our Industry
- 08We are subject to extensive governmental regulation, including federal, state and local laws affecting business in general, which may harm our business
- 09We are subject to extensive taxation policies, which may harm our business
Risks Related to our Properties
- 10We own real property and are subject to extensive environmental regulation, which creates uncertainty regarding future environmental expenditures and liabilities and could affect our ability to develop, sell or rent our property or to borrow money using such property as collateral
- 11Our operations could be impacted by extreme weather conditions
- 12Our properties in Illinois, Indiana, Iowa, Kansas, Louisiana, Missouri, Ohio and Pennsylvania are at risk of experiencing snowstorms, tornadoes and flooding
- 13We draw a significant percentage of our customers from certain geographic regions. Events adversely impacting the economy of these regions, including public health outbreaks and man-made or natural disasters, may adversely impact our business34% rewritten
- 14Generally, all of our facilities are subject to the risk that operations could be halted for a temporary or extended period of time due to casualty, forces of nature, mechanical failure, or extended or extraordinary maintenance, among other causes
- 15Some of our hotels and casinos are located on leased property. If we default on one or more leases, the applicable lessors could terminate the affected leases, and we could lose possession of the affected hotel and/or casino20% rewritten
Risks Related to our Indebtedness
- 16We have incurred a significant amount of indebtedness in the past and may incur significant indebtedness in the future, which could adversely affect our business and financial conditionNew
- 17The terms of our Credit Facility and other debt instruments do not fully prohibit us or our subsidiaries from incurring additional indebtedness, and borrowings under the Credit Facility could be effectively senior to other indebtedness to the extent of the value of the collateral securing such borrowingsNew
- 18The restrictive covenants in our Credit Facility and other debt instruments may limit our operational and financial flexibility, and failure to comply with these covenants could adversely impact our businessNew
- 19We require a significant amount of cash to service our debt. Our ability to generate cash depends on many factors beyond our control69% rewritten
- 20Current and future economic, capital and credit market conditions could adversely affect our ability to service our indebtedness and other financial commitments or make planned expenditures
- 21We are required to pay a substantial amount of rent pursuant to our Master Lease agreements with GLPI, which impacts free cash flow and could limit our ability to invest in our operations or seek additional development or strategic opportunities43% rewritten
- 22fund working capital, capital expenditures and other general corporate activities; and23% rewritten
Risks Related to our Equity Ownership
- 23Certain of our stockholders own large interests in our capital stock and may significantly influence our affairs49% rewritten
Other Boyd Gaming 10-Ks
- FY2024 10-K risk factors22 risks
Discretionary consumer spending, intense industry competition, and heavy regulation dictate core risks. Substantial debt of $3.2 billion and significant lease obligations pressure cash flow. Geographic concentration in Hawaii and riverboat operations heighten natural disaster and weather vulnerabilities.
Filed Feb 21, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.