Boyd Gaming Announces Additional Measures To Mitigate Financial Impact Of COVID-19 Closures
Boyd Gaming Corporation today announced it is taking additional measures to mitigate the financial impact of the COVID-19 pandemic, which resulted in the closure of all of the Company’s properties in mid-March.
Due to the continued closure of all revenue-generating operations, Boyd Gaming will place most of its team members on unpaid furlough effective Saturday, April 11. For furloughed team members enrolled in the Company’s health care plans, Boyd Gaming will pay all insurance premiums through June 30 or their return to work, whichever is sooner. A limited number of essential team members will remain on payroll during the closure period.
“This is by far the most difficult decision we have ever made,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming. “We care deeply about the well-being of our team members, which is why we maintained full pay and benefits through April 10. Implementing furloughs was a last resort for us, but a necessary step to protect our Company, especially given the current lack of visibility regarding property re-openings.”
The Company also announced that its executive leadership team will be taking significant salary reductions, while the Company’s Board of Directors has agreed to suspend the Board’s compensation. Additionally, all non-furloughed members of the Company’s corporate and property management teams will take a salary cut.
Additional cost-containment measures taken by the Company include:
- Following a thorough review of the Company’s expenses, all non-essential spending has been postponed indefinitely.
- All capital projects have been suspended and will be re-evaluated by the Board of Directors.
- As previously announced, the Company’s cash dividend program has also been suspended.
“As a result of these difficult but necessary actions, we are confident Boyd Gaming will have sufficient liquidity and resources to sustain itself until we are able to re-open for business,” Smith said. “We will continue to carefully review our operations and expenditures during the closure period and make additional adjustments as necessary.”