Disappointing dividend decision from Boyd Gaming Corporation

American casino operator Boyd Gaming Corporation has announced that it will not be paying investors a first-quarter dividend due to the financial uncertainty caused by the coronavirus-related shutdown of its almost 30 properties.

The Las Vegas-headquartered firm used an official Wednesday press release to detail that all of its venues have now been temporarily shuttered as local and state governments attempt to stop the spread of a highly-contagious coronavirus strain that has so far killed almost 1,040 Americans.

Cash concerns:

Boyd Gaming Corporation is responsible for 29 casinos including the 211-room Aliante Casino Hotel and Spa in Las Vegas as well as Pennsylvania’s larger Valley Forge Casino Resort. A recent investigation from Macquarie Research found that the coronavirus-related shutdown is costing the New York-listed firm around $3.2 million every day with its continuation likely to see the operator facing insolvency in as little as nine months.

Relevant retraction:

Established in 1975, Boyd also used the press release to declare that it has now withdrawn its previously-issued forecast concerning adjusted annual earnings before interest, taxes, depreciation, amortization and restructuring or rental costs. It furthermore stated that it does not now intend to issue any new such investor guidelines due to ‘the continued impact of the pandemic’ on its business as well as ‘its current inability to project future results.’

Confusing calendar:

The operator used a separate statement issued on Tuesday to explain that a rise in the number of Americans being diagnosed with the potentially-deadly coronavirus strain had recently led several states in which it operates to extend the terms of their casino shutdowns. It pronounced that Illinois is one such jurisdiction with its Par-A-Dice Hotel Casino in the city of East Peoria now consequently due to remain closed until at least April 8.

Boyd Gaming Corporation moreover proclaimed that a similar extension in the neighboring state of Indiana means that its Belterra Casino Resort and Blue Chip Casino Hotel and Spa facilities will now not open until at least April 7 while its Belterra Park venue in southern Ohio as well as its five casinos in Mississippi are to remain closed through to April 12. It finally asserted that its 486-room Valley Forge Casino Resort is to stay shuttered ‘until further notice’ so as to abide by ‘Pennsylvania Governor Tom Wolf‘s directive ordering the closure of all entertainment venues in Montgomery County.’