BOYD GAMING CORPORATION Exhibit 99.1
Financial Contact:
Josh Hirsberg
(702) 792-7234
joshhirsberg@boydgaming.com
Media Contact:
David Strow
(702) 792-7386
davidstrow@boydgaming.com
BOYD GAMING REPORTS SECOND-QUARTER 2014 RESULTS
LAS VEGAS - JULY 31, 2014 - Boyd Gaming Corporation (NYSE: BYD)today reported financial results for the second quarter ended June 30, 2014.
Boyd Gaming reported second-quarter 2014 net revenues of $722.5 million, compared to $738.7 million during the same quarter in 2013. Total Adjusted EBITDA(1) was $160.6 million, up slightly from $160.2 million in the year-ago quarter. Adjusted EBITDA in the current quarter included a benefit of $11.8 million related to Borgata's recent property tax settlement with the City of Atlantic City.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "Our second-quarter results were below expectations, principally due to continued weakness in casual play. We are actively addressing this on several fronts, including strengthening our senior management team, refining our marketing strategies, and repositioning targeted non-gaming amenities. We also continue to strengthen our balance sheet, and are on track for $200 million in additional debt reduction in 2014. Despite a tough operating environment, we remain diligently focused on improving our performance and generating long-term growth."
1
Adjusted Earnings(1) for the second quarter 2014 were $5.2 million, or $0.05 per share, compared to a loss of $0.1 million, or breakeven on a per-share basis, for the same period in 2013. The calculations of Adjusted Earnings and Adjusted Earnings per share are presented in a table at the end of this press release.
On a GAAP basis, the Company reported net income of $0.7 million, or $0.01 per share, for the second quarter 2014, compared to net income of $11.6 million, or $0.13 per share, for the year-ago period. The prior-year period included income from discontinued operations of $11.8 million, net of tax, reflecting the operating results and the gain on the sale of Dania Jai-Alai, which was sold in the second quarter of 2013.
(1) | See footnotes at the end of the release for additional information relative to non-GAAP financial measures. |
Operations Review
Las Vegas Locals
In the Las Vegas Locals segment, second-quarter 2014 net revenues were $148.3 million, compared to $149.7 million in the year-ago quarter, while second-quarter 2014 Adjusted EBITDA was $36.6 million versus $38.7 million in the second quarter of 2013. Revenue and EBITDA during the quarter benefitted from continued growth in our non-gaming business, offset by lower hold and significantly higher utility costs.
Downtown
In the Downtown Las Vegas segment, net revenues were $55.6 million in the second quarter of 2014, versus $56.1 million in the year-ago period. Adjusted EBITDA was $8.6 million in the current period, compared to $9.3 million in the second quarter of 2013. Though the entire Fremont Street area saw unusually low visitation levels in May and June, we increased our market share in Downtown Las Vegas during the quarter. Visitation has since recovered.
Midwest and South; Peninsula
In the Midwest and South segment, net revenues were $209.1 million, compared to $224.3 million in the second quarter of 2013. Adjusted EBITDA was $42.2 million versus $48.6 million in the year-ago period.
Increased gaming capacity impacted our operations in the Biloxi, Shreveport and central Illinois markets. These markets accounted for virtually all of the EBITDA decline in the Midwest and South segment.
2
During the second quarter of 2014, the Peninsula segment reported net revenues of $127.8 million and Adjusted EBITDA of $45.3 million. This compares to net revenues of $135.8 million and Adjusted EBITDA of $48.3 million in the second quarter of 2013.
Kansas Star's year-over-year EBITDA trends improved from the first quarter to the second. On a year-over-year basis, Kansas Star increased margins in the second quarter by 255 basis points to 45.2%. The Company also continued the introduction of the B Connected player loyalty program at the five Peninsula properties, and expects to complete the rollout by the end of the third quarter of 2014.
Borgata
Borgata, the Company's 50% joint venture, reported second-quarter 2014 net revenues of $181.9 million, including $6.7 million from its online gaming operations. This compares to $172.9 million in revenues reported in the year-ago period. Adjusted EBITDA, which included an $11.8 million property tax-related benefit, was $42.6 million in the second quarter of 2014, up from $27.8 million in the year-ago period. Excluding the tax-related benefit, Borgata's Adjusted EBITDA rose nearly 11% year-over-year.
The property saw growth in slots, table games and hotel revenues. Borgata continued to outperform the competition, growing its share of the Atlantic City gaming market by more than 240 basis points during the quarter.
Year-To-Date Results
For the six months ended June 30, 2014, Boyd Gaming reported net revenues of $1.43 billion, compared to $1.47 billion in the prior-year period. Total Adjusted EBITDA was $305.1 million, versus $323.7 million in the second quarter of 2013.
Adjusted Earnings for the current period were $1.1 million, or $0.01 per share, compared to $1.3 million, or $0.01 per share, during the first six months of 2013.
On a GAAP basis, the Company reported a net loss of $5.5 million, or $0.05 per share, for the six months ended June 30, 2014. This compares to net income of $4.3 million, or $0.05 per share, in the year-ago period. The prior-year period included income of $10.8 million, after tax, related to discontinued operations.
3
Balance Sheet Statistics
As of June 30, 2014, Boyd Gaming had cash on hand of $162.5 million, including $28.0 million related to Peninsula and $32.8 million related to Borgata.
Total debt was $4.33 billion, of which $1.12 billion was related to Peninsula and $804.7 million was related to Borgata.
Full-Year Guidance
Given current business trends, Boyd Gaming is revising its previously provided full-year guidance. For the full-year 2014, the Company now projects total Adjusted EBITDA of $580 million to $600 million. This revised guidance assumes that results for the third and fourth quarter will be similar to comparable periods last year.
Conference Call Information
Boyd Gaming will host its conference call to discuss second-quarter 2014 results today, July 31, at 5:00 p.m. Eastern. The conference call number is (888) 317-6003, passcode 2654057. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.
The conference call will also be available live on the Internet at www.boydgaming.com, orhttp://www.videonewswire.com/event.asp?id=100136
Following the call's completion, a replay will be available by dialing (877) 344-7529 today, July 31, beginning at 7:00 p.m. Eastern and continuing through Friday, August 8, at 9 a.m. Eastern. The conference number for the replay will be 10050177. The replay will also be available on the Internet at www.boydgaming.com.
4
BOYD GAMING CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Revenues | |||||||||||||||
Gaming | $ | 618,914 | $ | 627,926 | $ | 1,227,671 | $ | 1,260,485 | |||||||
Food and beverage | 110,353 | 112,804 | 216,996 | 224,578 | |||||||||||
Room | 70,362 | 67,154 | 134,742 | 131,009 | |||||||||||
Other | 41,173 | 41,898 | 80,133 | 81,209 | |||||||||||
Gross revenues | 840,802 | 849,782 | 1,659,542 | 1,697,281 | |||||||||||
Less promotional allowances | 118,268 | 111,034 | 228,659 | 222,949 | |||||||||||
Net revenues | 722,534 | 738,748 | 1,430,883 | 1,474,332 | |||||||||||
Costs and expenses | |||||||||||||||
Gaming | 288,214 | 287,801 | 573,388 | 585,063 | |||||||||||
Food and beverage | 61,196 | 64,242 | 118,465 | 124,295 | |||||||||||
Room | 14,481 | 15,955 | 27,651 | 29,055 | |||||||||||
Other | 30,362 | 31,199 | 58,154 | 59,373 | |||||||||||
Selling, general and administrative | 111,379 | 127,000 | 236,058 | 251,028 | |||||||||||
Maintenance and utilities | 43,023 | 41,042 | 86,287 | 80,251 | |||||||||||
Depreciation and amortization | 65,898 | 70,318 | 132,077 | 140,356 | |||||||||||
Corporate expense | 17,621 | 15,148 | 37,541 | 30,504 | |||||||||||
Preopening expenses | 1,790 | 789 | 2,574 | 3,154 | |||||||||||
Impairments of assets | 293 | 5,032 | 1,926 | 5,032 | |||||||||||
Asset transactions costs | 1,859 | 614 | 2,014 | 3,627 | |||||||||||
Other operating charges and credits, net | (561 | ) | 229 | (747 | ) | 1,795 | |||||||||
Total costs and expenses | 635,555 | 659,369 | 1,275,388 | 1,313,533 | |||||||||||
Operating income | 86,979 | 79,379 | 155,495 | 160,799 | |||||||||||
Other expense (income) | |||||||||||||||
Interest income | (470 | ) | (570 | ) | (946 | ) | (1,226 | ) | |||||||
Interest expense, net of amounts capitalized | 75,296 | 88,126 | 150,799 | 183,808 | |||||||||||
Loss on early extinguishments of debt | 904 | 2,372 | 1,058 | 2,372 | |||||||||||
Other, net | 670 | 47 | 382 | (471 | ) | ||||||||||
Total other expense, net | 76,400 | 89,975 | 151,293 | 184,483 | |||||||||||
Income (loss) from continuing operations before income taxes | 10,579 | (10,596 | ) | 4,202 | (23,684 | ) | |||||||||
Income taxes | (5,241 | ) | 4,102 | (10,089 | ) | 6,526 | |||||||||
Income (loss) from continuing operations, net of tax | 5,338 | (6,494 | ) | (5,887 | ) | (17,158 | ) | ||||||||
Income from discontinued operations, net of tax | - | 11,753 | - | 10,790 | |||||||||||
Net income (loss) | 5,338 | 5,259 | (5,887 | ) | (6,368 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | (4,669 | ) | 6,368 | 374 | 10,711 | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 669 | $ | 11,627 | $ | (5,513 | ) | $ | 4,343 | ||||||
Basic net income (loss) per common share | |||||||||||||||
Continuing operations | $ | 0.01 | $ | - | $ | (0.05 | ) | $ | (0.07 | ) | |||||
Discontinued operations | - | 0.13 | - | 0.12 | |||||||||||
Basic net income (loss) per common share | $ | 0.01 | $ | 0.13 | $ | (0.05 | ) | $ | 0.05 | ||||||
Weighted average basic shares outstanding | 109,884 | 89,230 | 109,819 | 88,606 | |||||||||||
Diluted net income (loss) per common share | |||||||||||||||
Continuing operations | $ | 0.01 | $ | - | $ | (0.05 | ) | $ | (0.07 | ) | |||||
Discontinued operations | - | 0.13 | - | 0.12 | |||||||||||
Diluted net income (loss) per common share | $ | 0.01 | $ | 0.13 | $ | (0.05 | ) | $ | 0.05 | ||||||
Weighted average diluted shares outstanding | 110,813 | 90,265 | 109,819 | 89,447 |
5
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Reconciliation of Adjusted EBITDA to Operating Income (Loss)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 148,270 | $ | 149,690 | $ | 299,713 | $ | 302,517 | |||||||
Downtown Las Vegas | 55,552 | 56,128 | 111,285 | 110,211 | |||||||||||
Midwest and South | 209,104 | 224,273 | 420,740 | 453,390 | |||||||||||
Peninsula | 127,754 | 135,780 | 250,027 | 269,693 | |||||||||||
Borgata | 181,854 | 172,877 | 349,118 | 338,521 | |||||||||||
Net revenues | $ | 722,534 | $ | 738,748 | $ | 1,430,883 | $ | 1,474,332 | |||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 36,581 | $ | 38,723 | $ | 76,588 | $ | 77,928 | |||||||
Downtown Las Vegas | 8,551 | 9,297 | 17,878 | 16,408 | |||||||||||
Midwest and South | 42,199 | 48,625 | 86,297 | 98,307 | |||||||||||
Peninsula | 45,282 | 48,323 | 90,043 | 99,035 | |||||||||||
Wholly owned property Adjusted EBITDA | 132,613 | 144,968 | 270,806 | 291,678 | |||||||||||
Corporate expense (1) | (14,625 | ) | (12,628 | ) | (28,795 | ) | (24,266 | ) | |||||||
Wholly owned Adjusted EBITDA | 117,988 | 132,340 | 242,011 | 267,412 | |||||||||||
Borgata | 42,598 | 27,847 | 63,044 | 56,252 | |||||||||||
Adjusted EBITDA | 160,586 | 160,187 | 305,055 | 323,664 | |||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 904 | 958 | 1,811 | 1,915 | |||||||||||
Depreciation and amortization | 65,898 | 70,318 | 132,077 | 140,356 | |||||||||||
Preopening expenses | 1,790 | 789 | 2,574 | 3,154 | |||||||||||
Share-based compensation expense | 3,424 | 2,894 | 9,905 | 6,985 | |||||||||||
Impairments of assets | 293 | 5,032 | 1,926 | 5,032 | |||||||||||
Asset transactions costs | 1,859 | 614 | 2,014 | 3,627 | |||||||||||
Other operating charges and credits, net | (561 | ) | 203 | (747 | ) | 1,796 | |||||||||
Total other operating costs and expenses | 73,607 | 80,808 | 149,560 | 162,865 | |||||||||||
Operating income | 86,979 | 79,379 | 155,495 | 160,799 | |||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 74,826 | 87,556 | 149,853 | 182,582 | |||||||||||
Loss on early extinguishments of debt | 904 | 2,372 | 1,058 | 2,372 | |||||||||||
Other, net | 670 | 47 | 382 | (471 | ) | ||||||||||
Total other non-operating items, net | 76,400 | 89,975 | 151,293 | 184,483 | |||||||||||
Income (loss) from continuing operations before income taxes | 10,579 | (10,596 | ) | 4,202 | (23,684 | ) | |||||||||
Income taxes | (5,241 | ) | 4,102 | (10,089 | ) | 6,526 | |||||||||
Income (loss) from continuing operations, net of tax | 5,338 | (6,494 | ) | (5,887 | ) | (17,158 | ) | ||||||||
Income from discontinued operations, net of tax | - | 11,753 | - | 10,790 | |||||||||||
Net income (loss) | 5,338 | 5,259 | (5,887 | ) | (6,368 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | (4,669 | ) | 6,368 | 374 | 10,711 | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 669 | $ | 11,627 | $ | (5,513 | ) | $ | 4,343 |
_______________________________________________
(1) Reconciliation of corporate expense:
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Corporate expense as reported on Consolidated Statements of Operations | $ | 17,621 | $ | 15,148 | $ | 37,541 | $ | 30,504 | |||||||
Corporate share-based compensation expense | (2,996 | ) | (2,520 | ) | (8,746 | ) | (6,238 | ) | |||||||
Corporate expense as reported on the above table | $ | 14,625 | $ | 12,628 | $ | 28,795 | $ | 24,266 |
6
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) Per Share to
Adjusted Earnings (Loss) Per Share
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 669 | $ | 11,627 | $ | (5,513 | ) | $ | 4,343 | ||||||
Less: income from discontinued operations, net of tax (1) | - | (11,753 | ) | - | (10,790 | ) | |||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | 669 | (126 | ) | (5,513 | ) | (6,447 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 1,554 | 735 | 2,305 | 5,033 | |||||||||||
Loss on early extinguishments of debt | 904 | 2,372 | 1,058 | 2,372 | |||||||||||
Impairments of assets | 293 | - | 1,926 | - | |||||||||||
Asset transactions costs | 1,858 | 544 | 2,015 | 3,223 | |||||||||||
Other operating charges and credits, net | (561 | ) | 229 | (345 | ) | 1,795 | |||||||||
Other (income) loss | 670 | - | 295 | (817 | ) | ||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 236 | 54 | 269 | 54 | |||||||||||
Valuation adjustments related to consolidation, net | (634 | ) | (243 | ) | (1,268 | ) | (502 | ) | |||||||
Impairments of assets | - | 5,032 | - | 5,032 | |||||||||||
Asset transactions costs | 1 | 70 | (1 | ) | 404 | ||||||||||
Other operating charges and credits, net | - | - | (402 | ) | - | ||||||||||
Total adjustments | 4,321 | 8,793 | 5,852 | 16,594 | |||||||||||
Income tax effect for above adjustments | 18 | (6,337 | ) | 63 | (6,368 | ) | |||||||||
Impact on noncontrolling interest, net | 199 | (2,458 | ) | 703 | (2,496 | ) | |||||||||
Adjusted earnings (loss) | $ | 5,207 | $ | (128 | ) | $ | 1,105 | $ | 1,283 | ||||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | 0.01 | $ | 0.13 | $ | (0.05 | ) | $ | 0.05 | ||||||
Less: income from discontinued operations, net of tax (1) | - | (0.13 | ) | - | (0.12 | ) | |||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | 0.01 | - | (0.05 | ) | (0.07 | ) | |||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.01 | 0.01 | 0.02 | 0.06 | |||||||||||
Loss on early extinguishments of debt | 0.01 | 0.02 | 0.01 | 0.02 | |||||||||||
Impairments of assets | - | - | 0.01 | - | |||||||||||
Asset transactions costs | 0.02 | 0.01 | 0.02 | 0.04 | |||||||||||
Other operating charges and credits, net | - | - | - | 0.02 | |||||||||||
Other (income) loss | 0.01 | - | - | (0.01 | ) | ||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | - | - | - | - | |||||||||||
Valuation adjustments related to consolidation, net | (0.01 | ) | - | (0.01 | ) | (0.01 | ) | ||||||||
Impairments of assets | - | 0.06 | - | 0.06 | |||||||||||
Asset transactions costs | - | - | - | - | |||||||||||
Other operating charges and credits, net | - | - | - | - | |||||||||||
Total adjustments | 0.04 | 0.10 | 0.05 | 0.18 | |||||||||||
Income tax effect for above adjustments | - | (0.07 | ) | - | (0.07 | ) | |||||||||
Impact on noncontrolling interest, net | - | (0.03 | ) | 0.01 | (0.03 | ) | |||||||||
Adjusted earnings per share | $ | 0.05 | $ | - | $ | 0.01 | $ | 0.01 | |||||||
Weighted average shares outstanding | 110,813 | 89,230 | 109,819 | 89,447 |
_______________________________________________
(1) Results for the prior year period are adjusted to exclude the financial results of Dania Jai-Alai, which was sold during the second quarter of 2013.
7
BOYD GAMING CORPORATION | ||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Boyd Gaming Wholly Owned | ||||||||||||||||||||||||||||
(In thousands, except per share data) | Excluding Peninsula Segment | Peninsula Segment | Eliminations | Total | Borgata (1) | Eliminations | Boyd Gaming Consolidated | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Gaming | $ | 334,090 | $ | 118,225 | $ | - | $ | 452,315 | $ | 166,599 | $ | - | $ | 618,914 | ||||||||||||||
Food and beverage | 66,679 | 9,610 | - | 76,289 | 34,064 | - | 110,353 | |||||||||||||||||||||
Room | 40,760 | - | - | 40,760 | 29,602 | - | 70,362 | |||||||||||||||||||||
Other | 30,861 | 4,825 | (4,821 | ) | 30,865 | 10,308 | - | 41,173 | ||||||||||||||||||||
Gross revenues | 472,390 | 132,660 | (4,821 | ) | 600,229 | 240,573 | - | 840,802 | ||||||||||||||||||||
Less promotional allowances | 54,643 | 4,906 | - | 59,549 | 58,719 | - | 118,268 | |||||||||||||||||||||
Net revenues | 417,747 | 127,754 | (4,821 | ) | 540,680 | 181,854 | - | 722,534 | ||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||
Gaming | 166,260 | 56,954 | - | 223,214 | 65,000 | - | 288,214 | |||||||||||||||||||||
Food and beverage | 36,786 | 6,165 | - | 42,951 | 18,245 | - | 61,196 | |||||||||||||||||||||
Room | 10,788 | - | - | 10,788 | 3,693 | - | 14,481 | |||||||||||||||||||||
Other | 18,338 | 8,201 | (4,821 | ) | 21,718 | 8,644 | - | 30,362 | ||||||||||||||||||||
Selling, general and administrative | 70,231 | 12,593 | - | 82,824 | 28,555 | - | 111,379 | |||||||||||||||||||||
Maintenance and utilities | 24,520 | 3,382 | - | 27,902 | 15,121 | - | 43,023 | |||||||||||||||||||||
Depreciation and amortization | 33,443 | 18,325 | - | 51,768 | 14,130 | - | 65,898 | |||||||||||||||||||||
Corporate expense | 17,236 | 385 | - | 17,621 | - | - | 17,621 | |||||||||||||||||||||
Preopening expenses | 1,130 | 424 | - | 1,554 | 236 | - | 1,790 | |||||||||||||||||||||
Impairments of assets | 293 | - | - | 293 | - | - | 293 | |||||||||||||||||||||
Asset transactions costs | 1,755 | 103 | - | 1,858 | 1 | - | 1,859 | |||||||||||||||||||||
Other, net | (578 | ) | 17 | - | (561 | ) | - | - | (561 | ) | ||||||||||||||||||
Total costs and expenses | 380,202 | 106,549 | (4,821 | ) | 481,930 | 153,625 | - | 635,555 | ||||||||||||||||||||
Operating income from Borgata | 14,115 | - | - | 14,115 | - | (14,115 | ) | - | ||||||||||||||||||||
Operating income | 51,660 | 21,205 | - | 72,865 | 28,229 | (14,115 | ) | 86,979 | ||||||||||||||||||||
Other expense (income) | ||||||||||||||||||||||||||||
Interest income | - | (470 | ) | - | (470 | ) | - | - | (470 | ) | ||||||||||||||||||
Interest expense, net of amounts capitalized | 38,293 | 19,175 | - | 57,468 | 17,828 | - | 75,296 | |||||||||||||||||||||
Loss on early extinguishments of debt | - | 904 | - | 904 | - | - | 904 | |||||||||||||||||||||
Other, net | 756 | (86 | ) | - | 670 | - | - | 670 | ||||||||||||||||||||
Other non-operating expenses from Borgata, net | 9,446 | - | - | 9,446 | - | (9,446 | ) | - | ||||||||||||||||||||
Total other expense, net | 48,495 | 19,523 | - | 68,018 | 17,828 | (9,446 | ) | 76,400 | ||||||||||||||||||||
Income (loss) from continuing operations before taxes | 3,165 | 1,682 | - | 4,847 | 10,401 | (4,669 | ) | 10,579 | ||||||||||||||||||||
Income taxes | (3,686 | ) | (492 | ) | - | (4,178 | ) | (1,063 | ) | - | (5,241 | ) | ||||||||||||||||
Income (loss) from continuing operations, net of tax | (521 | ) | 1,190 | - | 669 | 9,338 | (4,669 | ) | 5,338 | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | - | - | - | - | - | - | - | |||||||||||||||||||||
Net income (loss) | (521 | ) | 1,190 | - | 669 | 9,338 | (4,669 | ) | 5,338 | |||||||||||||||||||
Net income attributable to noncontrolling interest | - | - | - | - | - | (4,669 | ) | (4,669 | ) | |||||||||||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (521 | ) | $ | 1,190 | $ | - | $ | 669 | $ | 9,338 | $ | (9,338 | ) | $ | 669 | ||||||||||||
8
BOYD GAMING CORPORATION | ||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Boyd Gaming Wholly Owned | ||||||||||||||||||||||||||||
(In thousands, except per share data) | Excluding Peninsula Segment | Peninsula Segment | Eliminations | Total | Borgata (1) | Eliminations | Boyd Gaming Consolidated | |||||||||||||||||||||
Basic net income per common share | ||||||||||||||||||||||||||||
Continuing operations | $ | 0.01 | $ | 0.01 | ||||||||||||||||||||||||
Discontinued operations | - | - | ||||||||||||||||||||||||||
Basic net income per common share | $ | 0.01 | $ | 0.01 | ||||||||||||||||||||||||
Weighted average basic shares outstanding | 109,884 | 109,884 | ||||||||||||||||||||||||||
Diluted net income per common share | ||||||||||||||||||||||||||||
Continuing operations | $ | 0.01 | $ | 0.01 | ||||||||||||||||||||||||
Discontinued operations | - | - | ||||||||||||||||||||||||||
Diluted net income per common share | $ | 0.01 | $ | 0.01 | ||||||||||||||||||||||||
Weighted average diluted shares outstanding | 110,813 | 110,813 |
(1) | Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements. |
9
BOYD GAMING CORPORATION | ||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Boyd Gaming Wholly Owned | ||||||||||||||||||||||||||||
(In thousands, except per share data) | Excluding Peninsula Segment | Peninsula Segment | Eliminations | Total | Borgata (1) | Eliminations | Boyd Gaming Consolidated | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Gaming | $ | 351,927 | $ | 126,617 | $ | - | $ | 478,544 | $ | 149,382 | $ | - | $ | 627,926 | ||||||||||||||
Food and beverage | 67,606 | 10,075 | - | 77,681 | 35,123 | - | 112,804 | |||||||||||||||||||||
Room | 38,679 | - | - | 38,679 | 28,475 | - | 67,154 | |||||||||||||||||||||
Other | 31,584 | 4,570 | (5,106 | ) | 31,048 | 10,850 | - | 41,898 | ||||||||||||||||||||
Gross revenues | 489,796 | 141,262 | (5,106 | ) | 625,952 | 223,830 | - | 849,782 | ||||||||||||||||||||
Less promotional allowances | 54,600 | 5,481 | - | 60,081 | 50,953 | - | 111,034 | |||||||||||||||||||||
Net revenues | 435,196 | 135,781 | (5,106 | ) | 565,871 | 172,877 | - | 738,748 | ||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||
Gaming | 172,811 | 59,798 | - | 232,609 | 55,192 | - | 287,801 | |||||||||||||||||||||
Food and beverage | 36,369 | 6,814 | - | 43,183 | 21,059 | - | 64,242 | |||||||||||||||||||||
Room | 10,749 | - | - | 10,749 | 5,206 | - | 15,955 | |||||||||||||||||||||
Other | 18,457 | 8,350 | (5,106 | ) | 21,701 | 9,498 | - | 31,199 | ||||||||||||||||||||
Selling, general and administrative | 73,016 | 14,362 | - | 87,378 | 39,622 | - | 127,000 | |||||||||||||||||||||
Maintenance and utilities | 23,348 | 3,241 | - | 26,589 | 14,453 | - | 41,042 | |||||||||||||||||||||
Depreciation and amortization | 32,547 | 22,268 | - | 54,815 | 15,503 | - | 70,318 | |||||||||||||||||||||
Corporate expense | 14,367 | 781 | - | 15,148 | - | - | 15,148 | |||||||||||||||||||||
Preopening expenses | 644 | 91 | - | 735 | 54 | - | 789 | |||||||||||||||||||||
Impairments of assets | - | - | - | - | 5,032 | - | 5,032 | |||||||||||||||||||||
Asset transactions costs | 491 | 53 | - | 544 | 70 | - | 614 | |||||||||||||||||||||
Other, net | 94 | 135 | - | 229 | - | - | 229 | |||||||||||||||||||||
Total costs and expenses | 382,893 | 115,893 | (5,106 | ) | 493,680 | 165,689 | - | 659,369 | ||||||||||||||||||||
Operating income from Borgata | 3,594 | - | - | 3,594 | - | (3,594 | ) | - | ||||||||||||||||||||
Operating income | 55,897 | 19,888 | - | 75,785 | 7,188 | (3,594 | ) | 79,379 | ||||||||||||||||||||
Other expense (income) | ||||||||||||||||||||||||||||
Interest income | (17 | ) | (553 | ) | - | (570 | ) | - | - | (570 | ) | |||||||||||||||||
Interest expense, net of amounts capitalized | 46,469 | 20,813 | 67,282 | 20,844 | - | 88,126 | ||||||||||||||||||||||
Loss on early extinguishments of debt | 2,372 | - | - | 2,372 | - | - | 2,372 | |||||||||||||||||||||
Other, net | (2,793 | ) | 2,840 | - | 47 | - | - | 47 | ||||||||||||||||||||
Other non-operating expenses from Borgata, net | 9,961 | - | - | 9,961 | - | (9,961 | ) | - | ||||||||||||||||||||
Total other expense, net | 55,992 | 23,100 | - | 79,092 | 20,844 | (9,961 | ) | 89,975 | ||||||||||||||||||||
Income (loss) from continuing operations before taxes | (95 | ) | (3,212 | ) | - | (3,307 | ) | (13,656 | ) | 6,367 | (10,596 | ) | ||||||||||||||||
Income taxes | 5,381 | (2,200 | ) | - | 3,181 | 921 | - | 4,102 | ||||||||||||||||||||
Income (loss) from continuing operations, net of tax | 5,286 | (5,412 | ) | - | (126 | ) | (12,735 | ) | 6,367 | (6,494 | ) | |||||||||||||||||
Income from discontinued operations, net of tax | 11,753 | - | - | 11,753 | - | - | 11,753 | |||||||||||||||||||||
Net income (loss) | 17,039 | (5,412 | ) | - | 11,627 | (12,735 | ) | 6,367 | 5,259 | |||||||||||||||||||
Net loss attributable to noncontrolling interest | - | - | - | - | - | 6,368 | 6,368 | |||||||||||||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 17,039 | $ | (5,412 | ) | $ | - | $ | 11,627 | $ | (12,735 | ) | $ | 12,735 | $ | 11,627 | ||||||||||||
10
BOYD GAMING CORPORATION | ||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Boyd Gaming Wholly Owned | ||||||||||||||||||||||||||||
(In thousands, except per share data) | Excluding Peninsula Segment | Peninsula Segment | Eliminations | Total | Borgata (1) | Eliminations | Boyd Gaming Consolidated | |||||||||||||||||||||
Basic net income per common share | ||||||||||||||||||||||||||||
Continuing operations | $ | - | $ | - | ||||||||||||||||||||||||
Discontinued operations | 0.13 | 0.13 | ||||||||||||||||||||||||||
Basic net income per common share | $ | 0.13 | $ | 0.13 | ||||||||||||||||||||||||
Weighted average basic shares outstanding | 89,230 | 89,230 | ||||||||||||||||||||||||||
Diluted net income per common share | ||||||||||||||||||||||||||||
Continuing operations | $ | - | $ | - | ||||||||||||||||||||||||
Discontinued operations | 0.13 | 0.13 | ||||||||||||||||||||||||||
Diluted net income per common share | $ | 0.13 | $ | 0.13 | ||||||||||||||||||||||||
Weighted average diluted shares outstanding | 90,265 | 90,625 | ||||||||||||||||||||||||||
_______________________________________________
(1) Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.
11
BOYD GAMING CORPORATION | ||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Boyd Gaming Wholly Owned | ||||||||||||||||||||||||||||
(In thousands, except per share data) | Excluding Peninsula Segment | Peninsula Segment | Eliminations | Total | Borgata (1) | Eliminations | Boyd Gaming Consolidated | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Gaming | $ | 675,294 | $ | 232,092 | $ | - | $ | 907,386 | $ | 320,285 | $ | - | $ | 1,227,671 | ||||||||||||||
Food and beverage | 132,820 | 19,058 | - | 151,878 | 65,118 | - | 216,996 | |||||||||||||||||||||
Room | 79,571 | - | - | 79,571 | 55,171 | - | 134,742 | |||||||||||||||||||||
Other | 62,033 | 8,723 | (9,502 | ) | 61,254 | 18,879 | - | 80,133 | ||||||||||||||||||||
Gross revenues | 949,718 | 259,873 | (9,502 | ) | 1,200,089 | 459,453 | - | 1,659,542 | ||||||||||||||||||||
Less promotional allowances | 108,477 | 9,847 | - | 118,324 | 110,335 | - | 228,659 | |||||||||||||||||||||
Net revenues | 841,241 | 250,026 | (9,502 | ) | 1,081,765 | 349,118 | - | 1,430,883 | ||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||
Gaming | 334,759 | 110,165 | - | 444,924 | 128,464 | - | 573,388 | |||||||||||||||||||||
Food and beverage | 72,274 | 12,251 | - | 84,525 | 33,940 | - | 118,465 | |||||||||||||||||||||
Room | 21,174 | - | - | 21,174 | 6,477 | - | 27,651 | |||||||||||||||||||||
Other | 37,000 | 15,513 | (9,502 | ) | 43,011 | 15,143 | - | 58,154 | ||||||||||||||||||||
Selling, general and administrative | 141,135 | 24,966 | - | 166,101 | 69,957 | - | 236,058 | |||||||||||||||||||||
Maintenance and utilities | 47,601 | 6,592 | - | 54,193 | 32,094 | - | 86,287 | |||||||||||||||||||||
Depreciation and amortization | 67,296 | 36,790 | - | 104,086 | 27,991 | - | 132,077 | |||||||||||||||||||||
Corporate expense | 36,733 | 808 | - | 37,541 | - | - | 37,541 | |||||||||||||||||||||
Preopening expenses | 1,696 | 609 | - | 2,305 | 269 | - | 2,574 | |||||||||||||||||||||
Impairments of assets | 1,926 | - | - | 1,926 | - | - | 1,926 | |||||||||||||||||||||
Asset transactions costs | 1,895 | 120 | - | 2,015 | (1 | ) | - | 2,014 | ||||||||||||||||||||
Other, net | (428 | ) | 83 | - | (345 | ) | (402 | ) | - | (747 | ) | |||||||||||||||||
Total costs and expenses | 763,061 | 207,897 | (9,502 | ) | 961,456 | 313,932 | - | 1,275,388 | ||||||||||||||||||||
Operating income from Borgata | 17,593 | - | - | 17,593 | - | (17,593 | ) | - | ||||||||||||||||||||
Operating income | 95,773 | 42,129 | - | 137,902 | 35,186 | (17,593 | ) | 155,495 | ||||||||||||||||||||
Other expense (income) | ||||||||||||||||||||||||||||
Interest income | (4 | ) | (942 | ) | - | (946 | ) | - | - | (946 | ) | |||||||||||||||||
Interest expense, net of amounts capitalized | 76,788 | 38,493 | - | 115,281 | 35,518 | - | 150,799 | |||||||||||||||||||||
Loss on early extinguishments of debt | - | 1,058 | - | 1,058 | - | - | 1,058 | |||||||||||||||||||||
Other, net | 365 | 17 | - | 382 | - | - | 382 | |||||||||||||||||||||
Other non-operating expenses from Borgata, net | 17,967 | - | - | 17,967 | - | (17,967 | ) | - | ||||||||||||||||||||
Total other expense, net | 95,116 | 38,626 | - | 133,742 | 35,518 | (17,967 | ) | 151,293 | ||||||||||||||||||||
Income (loss) from continuing operations before taxes | 657 | 3,503 | - | 4,160 | (332 | ) | 374 | 4,202 | ||||||||||||||||||||
Income taxes | (5,386 | ) | (4,287 | ) | - | (9,673 | ) | (416 | ) | - | (10,089 | ) | ||||||||||||||||
Income (loss) from continuing operations, net of tax | (4,729 | ) | (784 | ) | - | (5,513 | ) | (748 | ) | 374 | (5,887 | ) | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | - | - | - | - | - | - | - | |||||||||||||||||||||
Net income (loss) | (4,729 | ) | (784 | ) | - | (5,513 | ) | (748 | ) | 374 | (5,887 | ) | ||||||||||||||||
Net loss attributable to noncontrolling interest | - | - | - | - | - | 374 | 374 | |||||||||||||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (4,729 | ) | $ | (784 | ) | $ | - | $ | (5,513 | ) | $ | (748 | ) | $ | 748 | $ | (5,513 | ) | |||||||||
12
BOYD GAMING CORPORATION | ||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Boyd Gaming Wholly Owned | ||||||||||||||||||||||||||||
(In thousands, except per share data) | Excluding Peninsula Segment | Peninsula Segment | Eliminations | Total | Borgata (1) | Eliminations | Boyd Gaming Consolidated | |||||||||||||||||||||
Basic net loss per common share | ||||||||||||||||||||||||||||
Continuing operations | $ | (0.05 | ) | $ | (0.05 | ) | ||||||||||||||||||||||
Discontinued operations | - | - | ||||||||||||||||||||||||||
Basic net loss per common share | $ | (0.05 | ) | $ | (0.05 | ) | ||||||||||||||||||||||
Weighted average basic shares outstanding | 109,819 | 109,819 | ||||||||||||||||||||||||||
Diluted net loss per common share | ||||||||||||||||||||||||||||
Continuing operations | $ | (0.05 | ) | $ | (0.05 | ) | ||||||||||||||||||||||
Discontinued operations | - | - | ||||||||||||||||||||||||||
Diluted net loss per common share | $ | (0.05 | ) | $ | (0.05 | ) | ||||||||||||||||||||||
Weighted average diluted shares outstanding | 109,819 | 109,819 |
_______________________________________________
(1) | Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements. |
13
BOYD GAMING CORPORATION | ||||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Boyd Gaming Wholly Owned | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Excluding Peninsula Segment | Peninsula Segment | Eliminations | Total | Borgata (1) | LVE (Variable Interest Entity) (2) | Eliminations | Boyd Gaming Consolidated | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Gaming | $ | 712,896 | $ | 252,527 | $ | - | $ | 965,423 | $ | 295,062 | $ | - | $ | - | $ | 1,260,485 | ||||||||||||||||
Food and beverage | 135,754 | 19,766 | - | 155,520 | 69,058 | - | - | 224,578 | ||||||||||||||||||||||||
Room | 75,860 | - | - | 75,860 | 55,149 | - | - | 131,009 | ||||||||||||||||||||||||
Other | 63,179 | 8,266 | (10,277 | ) | 61,168 | 20,041 | 1,933 | (1,933 | ) | 81,209 | ||||||||||||||||||||||
Gross revenues | 987,689 | 280,559 | (10,277 | ) | 1,257,971 | 439,310 | 1,933 | (1,933 | ) | 1,697,281 | ||||||||||||||||||||||
Less promotional allowances | 111,294 | 10,866 | - | 122,160 | 100,789 | - | - | 222,949 | ||||||||||||||||||||||||
Net revenues | 876,395 | 269,693 | (10,277 | ) | 1,135,811 | 338,521 | 1,933 | (1,933 | ) | 1,474,332 | ||||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||||||
Gaming | 352,168 | 116,557 | - | 468,725 | 116,338 | - | - | 585,063 | ||||||||||||||||||||||||
Food and beverage | 72,394 | 13,514 | - | 85,908 | 38,387 | - | - | 124,295 | ||||||||||||||||||||||||
Room | 20,852 | - | - | 20,852 | 8,203 | - | - | 29,055 | ||||||||||||||||||||||||
Other | 37,662 | 15,813 | (10,277 | ) | 43,198 | 16,175 | - | - | 59,373 | |||||||||||||||||||||||
Selling, general and administrative | 147,899 | 28,732 | - | 176,631 | 74,397 | - | - | 251,028 | ||||||||||||||||||||||||
Maintenance and utilities | 45,162 | 6,320 | - | 51,482 | 28,769 | - | - | 80,251 | ||||||||||||||||||||||||
Depreciation and amortization | 65,280 | 43,965 | - | 109,245 | 31,111 | - | - | 140,356 | ||||||||||||||||||||||||
Corporate expense | 28,637 | 1,867 | - | 30,504 | - | - | - | 30,504 | ||||||||||||||||||||||||
Preopening expenses | 4,942 | 91 | - | 5,033 | 54 | - | (1,933 | ) | 3,154 | |||||||||||||||||||||||
Impairments of assets | - | - | - | - | 5,032 | - | - | 5,032 | ||||||||||||||||||||||||
Asset transactions costs | 3,060 | 163 | - | 3,223 | 404 | - | - | 3,627 | ||||||||||||||||||||||||
Other, net | 1,662 | 133 | - | 1,795 | - | - | - | 1,795 | ||||||||||||||||||||||||
Total costs and expenses | 779,718 | 227,155 | (10,277 | ) | 996,596 | 318,870 | - | (1,933 | ) | 1,313,533 | ||||||||||||||||||||||
Operating income from Borgata | 9,825 | - | - | 9,825 | - | - | (9,825 | ) | - | |||||||||||||||||||||||
Operating income | 106,502 | 42,538 | - | 149,040 | 19,651 | 1,933 | (9,825 | ) | 160,799 | |||||||||||||||||||||||
Other expense (income) | ||||||||||||||||||||||||||||||||
Interest income | (144 | ) | (1,082 | ) | - | (1,226 | ) | - | - | - | (1,226 | ) | ||||||||||||||||||||
Interest expense, net of amounts capitalized | 96,614 | 43,199 | 139,813 | 41,618 | 2,377 | 183,808 | ||||||||||||||||||||||||||
Loss on early extinguishments of debt | 2,372 | - | - | 2,372 | - | - | - | 2,372 | ||||||||||||||||||||||||
Other, net | (2,792 | ) | 2,321 | - | (471 | ) | - | - | - | (471 | ) | |||||||||||||||||||||
Other non-operating expenses from Borgata, net | 20,092 | - | - | 20,092 | - | - | (20,092 | ) | - | |||||||||||||||||||||||
Total other expense, net | 116,142 | 44,438 | - | 160,580 | 41,618 | 2,377 | (20,092 | ) | 184,483 | |||||||||||||||||||||||
Income (loss) from continuing operations before taxes | (9,640 | ) | (1,900 | ) | - | (11,540 | ) | (21,967 | ) | (444 | ) | 10,267 | (23,684 | ) | ||||||||||||||||||
Income taxes | 11,984 | (6,891 | ) | - | 5,093 | 1,433 | - | - | 6,526 | |||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | 2,344 | (8,791 | ) | - | (6,447 | ) | (20,534 | ) | (444 | ) | 10,267 | (17,158 | ) | |||||||||||||||||||
Income from discontinued operations, net of tax | 10,790 | - | - | 10,790 | - | - | - | 10,790 | ||||||||||||||||||||||||
Net income (loss) | 13,134 | (8,791 | ) | - | 4,343 | (20,534 | ) | (444 | ) | 10,267 | (6,368 | ) | ||||||||||||||||||||
Net loss attributable to noncontrolling interest | - | - | - | - | - | 444 | 10,267 | 10,711 | ||||||||||||||||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 13,134 | $ | (8,791 | ) | $ | - | $ | 4,343 | $ | (20,534 | ) | $ | - | $ | 20,534 | $ | 4,343 | ||||||||||||||
14
BOYD GAMING CORPORATION | ||||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Boyd Gaming Wholly Owned | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Excluding Peninsula Segment | Peninsula Segment | Eliminations | Total | Borgata (1) | LVE (Variable Interest Entity) (2) | Eliminations | Boyd Gaming Consolidated | ||||||||||||||||||||||||
Basic net income per common share | ||||||||||||||||||||||||||||||||
Continuing operations | $ | (0.07 | ) | $ | (0.07 | ) | ||||||||||||||||||||||||||
Discontinued operations | 0.12 | 0.12 | ||||||||||||||||||||||||||||||
Basic net income per common share | $ | 0.05 | $ | 0.05 | ||||||||||||||||||||||||||||
Weighted average basic shares outstanding | 88,606 | 88,606 | ||||||||||||||||||||||||||||||
Diluted net income per common share | ||||||||||||||||||||||||||||||||
Continuing operations | $ | (0.07 | ) | $ | (0.07 | ) | ||||||||||||||||||||||||||
Discontinued operations | 0.12 | 0.12 | ||||||||||||||||||||||||||||||
Diluted net income per common share | $ | 0.05 | $ | 0.05 | ||||||||||||||||||||||||||||
Weighted average diluted shares outstanding | 89,447 | 89,447 | ||||||||||||||||||||||||||||||
_______________________________________________
(1) | Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements. |
(2) | Boyd Gaming's contractual agreements with LVE were terminated on March 4, 2013, in connection with the sale of the Echelon development site. As a result, Boyd Gaming ceased consolidation of LVE as of that date. The financial results presented for LVE include only that portion of the period that the variable interest entity was consolidated by Boyd Gaming. |
15
Non-GAAP Financial Measures
Regulation G, "Conditions for Use of Non-GAAP Financial Measures," prescribes the conditions for use of non-GAAP financial information in public disclosures. We believe that our presentations of the following non-GAAP financial measures are important supplemental measures of operating performance to investors: earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings Per Share (Adjusted EPS). The following discussion defines these terms and why we believe they are useful measures of our performance. We do not provide a reconciliation of forward-looking non-GAAP financial measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.
EBITDA and Adjusted EBITDA
EBITDA is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), provides our investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of our core operating results and as a means to evaluate period-to-period results. We refer to this measure as Adjusted EBITDA. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. We have historically reported this measure to our investors and believe that the continued inclusion of Adjusted EBITDA provides consistency in our financial reporting. We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by our management in their financial and operational decision-making. Adjusted EBITDA is among the more significant factors in management's internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA as a measure in the evaluation of potential acquisitions and dispositions. Adjusted EBITDA is also used by management in the annual budget process. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company. Adjusted EBITDA reflects EBITDA adjusted for deferred rent, preopening expenses, share-based compensation expense, impairments of assets, asset transactions costs, loss on early extinguishments of debt and other operating charges, net, and Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. In addition, Adjusted EBITDA includes corporate expense.
Adjusted Earnings and Adjusted EPS
Adjusted Earnings is net income (loss) before preopening expenses, asset transactions costs, impairments of assets, write-downs and other charges, net, gain or loss on early retirements of debt, other non-recurring adjustments, net, valuation adjustments related to the consolidation of Borgata, and Borgata's preopening expenses and other items and write-downs, net. Adjusted Earnings and Adjusted EPS are presented solely as supplemental disclosures because management believes that they are widely used measures of performance in the gaming industry.
Limitations on the Use of Non-GAAP Measures
The use of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS or certain other non-GAAP financial measures may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, capital expenditures and other items both in our reconciliations to the historical GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.
EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding historical GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.
16
Forward-looking Statements and Company Information
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding: the Company's continued progress implementing strategic initiatives that will help improve its performance and enhance profitable topline growth; the Company's plan to continue transforming and upgrading selected products to better appeal to consumers nationwide; the Company's plan to reduce debt by $200 million in 2014; the Company's belief that it is taking the right actions to strengthen its portfolio and position it for long-term growth; that the Company's Fremont Street area has recovered; that the Company expects to complete the rollout of the B Connected player loyalty program at the five Peninsula properties by the end of the third quarter 2014; and discussion under the heading "Full-Year Guidance." Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: fluctuations in the Company's operating results; recovery of its properties in various markets; the state of the economy and its effect on consumer spending and the Company's results of operations; the timing for economic recovery, its effect on the Company's business and the local economies where the Company's properties are located; the receipt of legislative, and other state, federal and local approvals for the Company's development projects in Florida, California and other jurisdictions; whether online gaming will become legalized in various states, the Company's ability to operate online gaming profitably, or otherwise; consumer reaction to fluctuations in the stock market and economic factors; the fact that the Company's expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Boyd Gaming
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 22 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi and New Jersey. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.
17
|
distributed by
|
