BOYD GAMING CORPORATION LAS VEGAS, July 31, 2014 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2014.
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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."
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.
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.
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, or http://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.
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 10,579 (10,596) 4,202 (23,684)
taxes
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
======= ====== ======= ======
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 $17,621 $15,148 $37,541 $30,504
Operations
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
======= ======= ======= =======
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
(Unaudited)
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 0.01 - (0.05) (0.07)
Corporation
---
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.
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 Eliminations Total Borgata (1) Eliminations Boyd Gaming
Peninsula Segment Consolidated
Segment
-------
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 3,165 1,682 - 4,847 10,401 (4,669) 10,579
operations before taxes
Income taxes (3,686) (492) - (4,178) (1,063) - (5,241)
------
Income (loss) from continuing (521) 1,190 - 669 9,338 (4,669) 5,338
operations, net of tax
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
===== ====== === === ==== ====== ======= ====
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 Eliminations Total Borgata (1) Eliminations Boyd Gaming
Peninsula Segment Consolidated
Segment
-------
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.
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 Eliminations Total Borgata (1) Eliminations Boyd Gaming
Peninsula Consolidated
Segment
-------
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 (95) (3,212) - (3,307) (13,656) 6,367 (10,596)
operations before taxes
Income taxes 5,381 (2,200) - 3,181 921 - 4,102
Income (loss) from continuing 5,286 (5,412) - (126) (12,735) 6,367 (6,494)
operations, net of tax
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
======= ======= === === ======= ======== ======= =======
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 Eliminations Total Borgata (1) Eliminations Boyd Gaming
Peninsula Consolidated
Segment
-------
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.
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 Eliminations Total Borgata (1) Eliminations Boyd Gaming
Peninsula Segment Consolidated
Segment
-------
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 657 3,503 - 4,160 (332) 374 4,202
operations before taxes
Income taxes (5,386) (4,287) - (9,673) (416) - (10,089)
------
Income (loss) from continuing (4,729) (784) - (5,513) (748) 374 (5,887)
operations, net of tax
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)
======= ===== === === ======= ===== ==== =======
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 Eliminations Total Borgata (1) Eliminations Boyd Gaming
Peninsula Segment Consolidated
Segment
-------
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.
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 Eliminations Total Borgata (1) LVE Eliminations Boyd Gaming
(Variable
Peninsula Interest Consolidated
Entity)
(2)
Segment
-------
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 (9,640) (1,900) - (11,540) (21,967) (444) 10,267 (23,684)
operations before taxes
Income taxes 11,984 (6,891) - 5,093 1,433 - - 6,526
Income (loss) from continuing 2,344 (8,791) - (6,447) (20,534) (444) 10,267 (17,158)
operations, net of tax
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
======= ======= === === ====== ======== === === ======= ======
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 LVE
(Variable
Peninsula Peninsula
Segment Eliminations Total Borgata (1) Interest Eliminations Boyd Gaming
Entity)
(2)
Segment 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.
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.
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; strengthening the Company's management team, refining its marketing strategies, and repositioning amenities; the Company's plan to continue transforming and upgrading selected products to better appeal to consumers nationwide; the Company's plan to strengthen its balance sheet, including reducing debt by $200 million in 2014; the Company's focus on improving its performance and generating 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.
Logo - http://photos.prnewswire.com/prnh/20030219/BOYDLOGO
SOURCE Boyd Gaming Corporation
