Boyd Gaming Corp. told investors Wednesday it was suspending its quarterly cash dividend due to the shut down of the company’s 29 casinos in 10 states, brought about by the COVID-19 coronavirus pandemic.
Las Vegas-based Boyd also said it was following the trend with other casino companies and withdrawing its cashflow projections for 2020. Boyd is paying salaries for its workers who put of work when state governments began ordering casino closures last week to halt the spread of the virus.
According to one gaming analyst, Boyd is spending $3.2 million a day while its casinos are closed and will run out cash in a little more than nine months. Boyd drew down $660 million from its credit facility a week ago to fund operations.
Boyd shares lost roughly 82% of its value in the past month, but the stock rallied back in the past two days. Shares of Boyd closed at $15.38 on the New York Stock Exchange Wednesday, up 37 cents or 2.47%.
The announcements came without a comment from the company.
Boyd also said its April 9 annual shareholders meeting was being changed from in-person to online only.
The company designed the format to ensure that stockholders are afforded the same rights and opportunities to participate as they would at an in‑person meeting, using online tools to ensure access and participation.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
