BOYD GAMING CORPORATION LAS VEGAS, Oct. 30, 2014 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the third quarter ended September 30, 2014.
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Boyd Gaming reported third-quarter 2014 net revenues of $738.8 million, up slightly from $738.6 million during the same quarter in 2013. Total Adjusted EBITDA((1)) rose 5.5% to $163.9 million, compared to $155.3 million in the year-ago quarter.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "This was a solid quarter for our operations, as we improved operating margins in every segment of our business. Growth resumed in our Nevada business, as our Las Vegas Locals and Downtown Las Vegas operations both achieved positive EBITDA comparisons. We saw initial signs of stabilization in our regional business as well. We paid down an additional $70 million in debt in the quarter, bringing our total debt reduction to more than $165 million so far this year, as we continue to use free cash flow to deleverage the balance sheet. And we began work on several projects in our long-term initiative to reposition and enhance select non-gaming amenities in our portfolio. In all, we continue to make good progress executing on our strategy to drive profitable growth and increase long-term shareholder value."
Adjusted Earnings((1)) for the third quarter 2014 were $0.3 million, breakeven on a per-share basis, compared to a loss of $8.3 million, or $0.08 per share, 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 a net loss of $15.1 million, or $0.14 per share, for the third quarter 2014, compared to a net loss of $37.3 million, or $0.37 per share, for the year-ago period.
The Company's GAAP results include a third-quarter pretax impairment charge of $12.1 million to adjust the value of the Company's equity ownership interest in Borgata as a result of its deconsolidation. In addition, the Company's third-quarter results include a pretax impairment charge of $6.2 million to write down certain non-operating assets to their estimated recoverable value. The prior-year third quarter included an aggregate pretax loss on early extinguishments of debt of $27.1 million due to debt refinancing activities that were completed during that period.
(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 region, third-quarter 2014 net revenues were $141.2 million, an increase of nearly 1% from $140.3 million in the year-ago quarter. Third-quarter 2014 Adjusted EBITDA rose 6.5% to $28.1 million, versus $26.4 million in the third quarter of 2013, marking the sixth positive quarterly EBITDA comparison in the last seven quarters. Growth in non-gaming business drove increases in both revenue and EBITDA during the quarter. Results also benefitted from continued efficiencies in operations, as EBITDA margins improved more than 100 basis points year-over-year.
Downtown
Downtown Las Vegas net revenues were $53.4 million in the third quarter of 2014, up 1.3% from $52.7 million in the year-ago quarter. Adjusted EBITDA increased 14.1% to $6.3 million in the current period, compared to $5.5 million in the third quarter of 2013. Strong pedestrian traffic in the Fremont Street area and growth in visitation from Hawaii contributed to revenue and EBITDA gains, while operating margins improved more than 130 basis points.
Midwest and South; Peninsula
In the Midwest and South segment, net revenues were $210.7 million, compared to $214.8 million in the third quarter of 2013. Adjusted EBITDA grew 4.0% to $43.6 million versus $41.9 million in the year-ago period.
During the third quarter of 2014, the Peninsula segment reported net revenues of $123.6 million and Adjusted EBITDA of $42.9 million. This compares to net revenues of $130.7 million and Adjusted EBITDA of $45.3 million in the third quarter of 2013.
While revenues were affected by continued softness in casual play, operational efficiencies drove margin improvements across both segments. Results reflect strong EBITDA performances at Delta Downs, IP and Blue Chip. These EBITDA gains were offset by weakness at Par-A-Dice, due to significantly heightened competition in Illinois, as well as Kansas Star, which was impacted by lower visitation levels.
Borgata
Borgata, the Company's 50% joint venture, reported third-quarter 2014 net revenues of $209.9 million, including $6.1 million from its online gaming operations. This represented a 4.9% increase from the $200.1 million in revenues reported in the year-ago period. Adjusted EBITDA, was $56.9 million in the third quarter of 2014, up 22.1% from $46.6 million in the year-ago period.
Benefits from a property tax settlement reached with the City of Atlantic City earlier this year contributed $8.1 million to EBITDA during the quarter. Excluding property tax-related gains, EBITDA increased 4.7% year-over-year, as slot and hotel revenue grew, and the property expanded its overall gaming market share by 260 basis points. Additionally, the property's online gaming operations achieved profitability throughout the third quarter.
Deconsolidation of Borgata
The Company's Atlantic City partner reacquired its 50% ownership interest in Borgata on September 30, 2014. As a result, the Company has deconsolidated Borgata as of that date, and adjusted its equity investment in Borgata by $12.1 million to equal fair value. The deconsolidation of Borgata does not have an economic impact, but does affect the accounting presentation in the Company's financial statements. The Company will account for its 50% investment in Borgata by applying the equity method for periods subsequent to the date of deconsolidation. A Form 8-K furnished to the Securities and Exchange Commission today contains unaudited pro forma condensed consolidated financial information reflecting the effect of the deconsolidation for each of the quarters and full year of 2013, and each of the quarters and year-to-date period in 2014.
Balance Sheet Statistics
As of September 30, 2014, Boyd Gaming had cash on hand of $120.9 million, including $25.4 million related to Peninsula. Total debt was $3.48 billion, of which $1.11 billion was related to Peninsula.
As of September 30, 2014, Borgata is no longer included in the Company's consolidated balance sheet. On that date, Borgata had cash on hand of $26.9 million, and debt of $776.6 million.
Full-Year Guidance
Based on third-quarter results and current business trends, Boyd Gaming is narrowing its full-year 2014 Adjusted EBITDA guidance to the high end of its previously provided guidance. Before consideration of the deconsolidation of Borgata, the Company expects to generate between $590 million and $600 million in Adjusted EBITDA for the year. As a result of the deconsolidation of Borgata, the Company is modifying its guidance to eliminate 50% of Borgata's Adjusted EBITDA from the fourth quarter. Reflecting this change in accounting, full-year 2014 guidance for Boyd Gaming's Adjusted EBITDA is $576 million to $586 million.
Conference Call Information
Boyd Gaming will host its conference call to discuss third-quarter 2014 results today, October 30, at 5:00 p.m. Eastern. The conference call number is (888) 317-6003, passcode 8021592. 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=100701
Following the call's completion, a replay will be available by dialing (877) 344-7529 today, October 30, beginning at 7:00 p.m. Eastern and continuing through Friday, November 7, at 9 a.m. Eastern. The conference number for the replay will be 10054259. 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 Nine Months Ended
September 30, September 30,
------------- -------------
(In thousands, except per share data) 2014 2013 2014 2013
---- ---- ---- ----
REVENUES
Operating revenues
Gaming $631,668 $633,237 $1,859,339 $1,893,722
Food and beverage 115,072 114,397 332,068 338,975
Room 75,330 72,299 210,072 203,308
Other 44,441 43,808 124,574 125,017
------ ------ ------- -------
Gross revenues 866,511 863,741 2,526,053 2,561,022
Less promotional allowances 127,668 125,172 356,327 348,121
------- ------- ------- -------
Net revenues 738,843 738,569 2,169,726 2,212,901
------- ------- --------- ---------
COST AND EXPENSES
Operating costs and expenses
Gaming 294,118 302,373 867,506 887,436
Food and beverage 61,511 57,655 179,976 181,950
Room 14,679 12,556 42,330 41,611
Other 33,554 33,056 91,708 92,429
Selling, general and administrative 113,436 122,837 349,494 373,865
Maintenance and utilities 45,050 45,735 131,337 125,986
Depreciation and amortization 66,168 69,002 198,245 209,358
Corporate expense 15,064 12,084 52,605 42,588
Preopening expense 1,262 1,675 3,836 4,829
Impairments of assets 18,279 1,250 20,205 6,282
Asset transactions costs 3,064 (1,362) 5,078 2,265
Other operating items, net (1,116) 3,386 (1,863) 5,181
------ ----- ------ -----
Total operating costs and expenses 665,069 660,247 1,940,457 1,973,780
------- ------- --------- ---------
Operating income 73,774 78,322 229,269 239,121
------ ------ ------- -------
Other expense (income)
Interest income (466) (553) (1,412) (1,779)
Interest expense, net 75,420 83,145 226,219 266,953
Loss on early extinguishments of debt 71 27,141 1,129 29,513
Other, net 116 136 498 (335)
--- --- --- ----
Total other expense, net 75,141 109,869 226,434 294,352
------ ------- ------- -------
Income (loss) from continuing operations before income taxes (1,367) (31,547) 2,835 (55,231)
Income taxes benefit (expense) (1,961) (3,048) (12,050) 3,478
------ ------ ------- -----
Loss from continuing operations, net of tax (3,328) (34,595) (9,215) (51,753)
Income from discontinued operations, net of tax - - - 10,790
Net loss (3,328) (34,595) (9,215) (40,963)
Net (income) loss attributable to noncontrolling interest (11,777) (2,672) (11,403) 8,039
------- ------ ------- -----
Net loss attributable to Boyd Gaming Corporation $(15,105) $(37,267) $(20,618) $(32,924)
======== ======== ======== ========
Basic net income (loss) per common share:
Continuing operations $(0.14) $(0.37) $(0.19) $(0.47)
Discontinued operations - - - 0.12
--- --- --- ----
Basic net loss per common share $(0.14) $(0.37) $(0.19) $(0.35)
====== ====== ====== ======
Weighted average basic shares outstanding 109,923 101,555 109,854 93,122
======= ======= ======= ======
Diluted net income (loss) per common share:
Continuing operations $(0.14) $(0.37) $(0.19) $(0.47)
Discontinued operations - - - 0.12
--- --- --- ----
Diluted net loss per common share $(0.14) $(0.37) $(0.19) $(0.35)
====== ====== ====== ======
Weighted average diluted shares outstanding 109,923 101,555 109,854 93,122
======= ======= ======= ======
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Reconciliation of Adjusted EBITDA to Operating Income (Loss)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
(In thousands) 2014 2013 2014 2013
---- ---- ---- ----
Net Revenues by Reportable Segment
Las Vegas Locals $141,207 $140,291 $440,920 $442,808
Downtown Las Vegas 53,379 52,674 164,664 162,884
Midwest and South 210,732 214,831 631,472 668,221
Peninsula 123,579 130,722 373,606 400,416
Borgata 209,946 200,051 559,064 538,572
-------
Net revenues $738,843 $738,569 $2,169,726 $2,212,901
======== ======== ========== ==========
Adjusted EBITDA by Reportable Segment
Las Vegas Locals $28,052 $26,350 $104,640 $104,278
Downtown Las Vegas 6,315 5,534 24,193 21,942
Midwest and South 43,593 41,936 129,890 140,243
Peninsula 42,875 45,274 132,918 144,309
------ ------ ------- -------
Wholly owned property Adjusted EBITDA 120,835 119,094 391,641 410,772
Corporate expense (1) (13,848) (10,409) (42,643) (34,675)
------- ------- ------- -------
Wholly owned Adjusted EBITDA 106,987 108,685 348,998 376,097
Borgata 56,873 46,592 119,917 102,844
------ ------ ------- -------
Adjusted EBITDA 163,860 155,277 468,915 478,941
------- ------- ------- -------
Other operating costs and expenses
Deferred rent 903 956 2,714 2,872
Depreciation and amortization 66,168 69,002 198,245 209,358
Preopening expenses 1,262 1,675 3,836 4,829
Share-based compensation expense 1,526 2,048 11,431 9,033
Impairments of assets 18,279 1,250 20,205 6,282
Asset transactions costs 3,064 (1,362) 5,078 2,265
Other operating charges and credits, net (1,116) 3,386 (1,863) 5,181
------ ----- ------ -----
Total other operating costs and expenses 90,086 76,955 239,646 239,820
------ ------ ------- -------
Operating income 73,774 78,322 229,269 239,121
------ ------ ------- -------
Other non-operating items
Interest expense, net 74,954 82,592 224,807 265,174
Loss on early extinguishments of debt 71 27,141 1,129 29,513
Other, net 116 136 498 (335)
--- --- --- ----
Total other non-operating items, net 75,141 109,869 226,434 294,352
------ ------- ------- -------
Income (loss) from continuing operations before income (1,367) (31,547) 2,835 (55,231)
taxes
Income taxes (1,961) (3,048) (12,050) 3,478
------ ------ ------- -----
Loss from continuing operations, net of tax (3,328) (34,595) (9,215) (51,753)
Income from discontinued operations, net of tax - - - 10,790
--- --- --- ------
Net loss (3,328) (34,595) (9,215) (40,963)
Net (income) loss attributable to noncontrolling interest (11,777) (2,672) (11,403) 8,039
------- ------ ------- -----
Net loss attributable to Boyd Gaming Corporation $(15,105) $(37,267) $(20,618) $(32,924)
======== ======== ======== ========
(1) Reconciliation of corporate expense:
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
(In thousands) 2014 2013 2014 2013
---- ---- ---- ----
Corporate expense as reported on Consolidated Statements $15,064 $12,084 $52,605 $42,588
of Operations
Corporate share-based compensation expense (1,216) (1,675) (9,962) (7,913)
------ ------ ------ ------
Corporate expense as reported on the above table $13,848 $10,409 $42,643 $34,675
======= ======= ======= =======
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 Nine Months Ended
September 30, September 30,
------------- -------------
(In thousands, except per share data) 2014 2013 2014 2013
---- ---- ---- ----
Net loss attributable to Boyd Gaming Corporation $(15,105) $(37,267) $(20,618) $(32,924)
Less: income from discontinued operations, net of tax (1) - - - (10,790)
Adjusted net loss attributable to Boyd Gaming Corporation (15,105) (37,267) (20,618) (43,714)
------- ------- ------- -------
Pretax adjustments related to Boyd Gaming:
Preopening expenses, excluding impact of LVE 1,262 1,259 3,567 6,295
Loss on early extinguishments of debt 71 24,605 1,129 26,977
Impairments of assets 18,279 1,250 20,205 1,250
Asset transactions costs 2,689 (1,162) 4,704 2,058
Other operating charges and credits, net 593 240 248 2,035
Other (income) loss 116 - 411 (817)
Pretax adjustments related to Borgata:
Preopening expenses - 416 269 470
Loss on early extinguishments of debt - 2,536 - 2,536
Valuation adjustments related to consolidation, net (633) (181) (1,901) (683)
Impairments of assets - - - 5,032
Asset transactions costs 375 (201) 374 205
Other operating charges and credits, net (1,709) 3,146 (2,111) 3,146
------ ----- ------ -----
Total adjustments 21,043 31,908 26,895 48,504
Income tax effect for above adjustments (6,608) (33) (6,545) (6,401)
Impact on noncontrolling interest, net 983 (2,859) 1,686 (5,355)
--- ------ ----- ------
Adjusted earnings (loss) $313 $(8,251) $1,418 $(6,966)
==== ======= ====== =======
Net loss per share attributable to Boyd Gaming Corporation $(0.14) $(0.37) $(0.19) $(0.35)
Less: income from discontinued operations, net of tax (1) - - - (0.12)
Adjusted net loss per share attributable to Boyd Gaming Corporation (0.14) (0.37) (0.19) (0.47)
----- ----- ----- -----
Pretax adjustments related to Boyd Gaming:
Preopening expenses, excluding impact of LVE 0.01 0.01 0.03 0.07
Loss on early extinguishments of debt - 0.26 0.01 0.29
Impairments of assets 0.17 0.01 0.19 0.01
Asset transactions costs 0.03 (0.01) 0.05 0.02
Other operating charges and credits, net - - - 0.02
Other (income) loss - - - (0.01)
Pretax adjustments related to Borgata:
Preopening expenses - - - 0.01
Loss on early extinguishments of debt - 0.02 - 0.03
Valuation adjustments related to consolidation, net (0.01) - (0.02) (0.01)
Impairments of assets - - - 0.05
Asset transactions costs - - - -
Other operating charges and credits, net (0.1) 0.03 (0.02) 0.04
Total adjustments 0.19 0.32 0.24 0.52
Income tax effect for above adjustments (0.06) - (0.06) (0.07)
Impact on noncontrolling interest, net 0.01 (0.03) 0.02 (0.05)
---- ----
Adjusted earnings per share $ - $(0.08) $0.01 $(0.07)
=== === ====== ===== ======
Weighted average shares outstanding 110,827 101,555 110,780 93,122
======= ======= ======= ======
(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 September 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 $329,769 $114,343 $ - $444,112 $187,556 $ - $631,668
Food and beverage 66,028 9,330 - 75,358 39,714 - 115,072
Room 39,706 - - 39,706 35,624 - 75,330
Other 31,103 4,892 (4,608) 31,387 13,054 - 44,441
------ ----- ------ ------ ---
Gross revenues 466,606 128,565 (4,608) 590,563 275,948 - 866,511
Less promotional allowances 56,679 4,987 - 61,666 66,002 - 127,668
------ ----- --- ------ --- -------
Net revenues 409,927 123,578 (4,608) 528,897 209,946 - 738,843
------- ------- ------ ------- ------- --- -------
Costs and expenses
Gaming 168,581 54,514 - 223,095 71,023 - 294,118
Food and beverage 35,325 6,463 - 41,788 19,723 - 61,511
Room 10,382 - - 10,382 4,297 - 14,679
Other 18,877 8,346 (4,608) 22,615 10,939 - 33,554
Selling, general and administrative 68,995 12,468 - 81,463 31,973 - 113,436
Maintenance and utilities 26,417 3,517 - 29,934 15,116 - 45,050
Depreciation and amortization 33,386 18,644 - 52,030 14,138 - 66,168
Corporate expense 14,523 541 - 15,064 - - 15,064
Preopening expenses 1,192 70 - 1,262 - - 1,262
Impairments of assets 18,279 - - 18,279 - - 18,279
Asset transactions costs 2,494 195 - 2,689 375 - 3,064
Other, net 593 - - 593 (1,709) - (1,116)
---
Total costs and expenses 399,044 104,758 (4,608) 499,194 165,875 - 665,069
------- ------- ------ ------- ------- --- -------
Operating income from Borgata 22,036 - - 22,036 - (22,036) -
------ --- --- ------ --- ------- ---
Operating income 32,919 18,820 - 51,739 44,071 (22,036) 73,774
------ ------ --- ------ ------ ------- ------
Other expense (income)
Interest income (1) (465) - (466) - - (466)
Interest expense, net of amounts capitalized 38,452 19,159 - 57,611 17,809 - 75,420
Loss on early extinguishments of debt 1 70 - 71 - - 71
Other, net 38 78 - 116 - - 116
Other non-operating expenses from 10,259 - - 10,259 - (10,259) -
Borgata, net
Total other expense, net 48,749 18,842 - 67,591 17,809 (10,259) 75,141
------ ------ --- ------ ------ ------- ------
Income (loss) from continuing (15,830) (22) - (15,852) 26,262 (11,777) (1,367)
operations before taxes
Income taxes 7,843 (7,096) - 747 (2,708) - (1,961)
-----
Income (loss) from continuing (7,987) (7,118) - (15,105) 23,554 (11,777) (3,328)
operations, net of tax
Income (loss) from discontinued - - - - - - -
operations, net of tax
Net income (loss) (7,987) (7,118) - (15,105) 23,554 (11,777) (3,328)
Net income attributable to - - - - - (11,777) (11,777)
noncontrolling interest
Net income (loss) attributable to $(7,987) $(7,118) $ - $(15,105) $23,554 $(23,554) $(15,105)
Boyd Gaming Corporation
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Three Months Ended September 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 $(0.14) $(0.14)
Discontinued operations - -
Basic net loss per common share $(0.14) $(0.14)
====== ======
Weighted average basic shares 109,923 109,923
outstanding
Diluted net loss per common share:
Continuing operations $(0.14) $(0.14)
Discontinued operations - -
Diluted net loss per common share $(0.14) $(0.14)
====== ======
Weighted average diluted shares 109,923 109,923
outstanding
(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 September 30, 2013
(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 $334,874 $121,383 $ - $456,257 $176,980 $ - $633,237
Food and beverage 65,485 9,759 - 75,244 39,153 - 114,397
Room 38,318 - - 38,318 33,981 - 72,299
Other 30,248 5,148 (4,884) 30,512 13,296 - 43,808
------ ----- ------ ------ --- ------
Gross revenues 468,925 136,290 (4,884) 600,331 263,410 - 863,741
Less promotional allowances 56,245 5,568 - 61,813 63,359 - 125,172
------ ----- --- ------ --- -------
Net revenues 412,680 130,722 (4,884) 538,518 200,051 - 738,569
------- ------- ------ ------- ------- --- -------
Costs and expenses
Gaming 173,087 57,480 - 230,567 71,806 - 302,373
Food and beverage 34,940 6,627 - 41,567 16,088 - 57,655
Room 10,592 - - 10,592 1,964 - 12,556
Other 18,232 8,993 (4,884) 22,341 10,715 - 33,056
Selling, general and administrative 72,380 13,627 - 86,007 36,830 - 122,837
Maintenance and utilities 26,073 3,605 - 29,678 16,057 - 45,735
Depreciation and amortization 32,455 22,210 - 54,665 14,337 - 69,002
Corporate expense 11,850 234 - 12,084 - - 12,084
Preopening expenses 1,260 - - 1,260 415 - 1,675
Impairments of assets 1,250 - - 1,250 - - 1,250
Asset transactions costs (1,296) 133 - (1,163) (199) - (1,362)
Other, net 178 62 - 240 3,146 - 3,386
--- --- --- ----- ---
Total costs and expenses 381,001 112,971 (4,884) 489,088 171,159 - 660,247
------- ------- ------ ------- ------- --- -------
Operating income from Borgata 14,446 - - 14,446 - (14,446) -
------ --- --- ------ --- ------- ---
Operating income 46,125 17,751 - 63,876 28,892 (14,446) 78,322
------ ------ --- ------ ------ ------- ------
Other expense (income)
Interest income - (553) - (553) - - (553)
Interest expense, net of amounts capitalized 42,956 19,908 62,864 20,281 - 83,145
Loss on early extinguishments of debt 24,605 - - 24,605 2,536 - 27,141
Other, net 87 49 - 136 - - 136
Other non-operating expenses from 11,775 - - 11,775 - (11,775) -
Borgata, net
Total other expense, net 79,423 19,404 - 98,827 22,817 (11,775) 109,869
------ ------ --- ------ ------ ------- -------
Income (loss) from continuing (33,298) (1,653) - (34,951) 6,075 (2,671) (31,547)
operations before taxes
Income taxes 1,052 (3,368) - (2,316) (732) - (3,048)
Income (loss) from continuing (32,246) (5,021) - (37,267) 5,343 (2,671) (34,595)
operations, net of tax
Income from discontinued - - - - - - -
operations, net of tax
Net income (loss) (32,246) (5,021) - (37,267) 5,343 (2,671) (34,595)
Net income attributable to - - - - - (2,672) (2,672)
noncontrolling interest
Net income (loss) attributable to $(32,246) $(5,021) $ - $(37,267) $5,343 $(5,343) $(37,267)
Boyd Gaming Corporation
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Three Months Ended September 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 loss per common share:
Continuing operations $(0.37) $(0.37)
Discontinued operations - -
Basic net loss per common share $(0.37) $(0.37)
====== ======
Weighted average basic shares 101,555 101,555
outstanding
Diluted net loss per common share:
Continuing operations $(0.37) $(0.37)
Discontinued operations - -
--- ---
Diluted net loss per common share $(0.37) $(0.37)
====== ======
Weighted average diluted shares 101,555 101,555
outstanding
(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
Nine Months Ended September 30, 2014
(Unaudited)
Boyd Gaming Wholly Owned
(In thousands, except per share data) Excluding Peninsula Eliminations Total Borgata (1) Eliminations Boyd
Peninsula Segment Gaming
Segment Consolidated
------- ------------
Revenues
Gaming $1,005,063 $346,435 $ - $1,351,498 $507,841 $ - $1,859,339
Food and beverage 198,848 28,388 - 227,236 104,832 - 332,068
Room 119,277 - - 119,277 90,795 - 210,072
Other 93,135 13,615 (14,109) 92,641 31,933 - 124,574
------ ------ ------- ------ --- -------
Gross revenues 1,416,323 388,438 (14,109) 1,790,652 735,401 - 2,526,053
Less promotional allowances 165,156 14,834 - 179,990 176,337 - 356,327
------- ------ --- ------- --- -------
Net revenues 1,251,167 373,604 (14,109) 1,610,662 559,064 - 2,169,726
--------- ------- ------- --------- ------- --- ---------
Costs and expenses
Gaming 503,339 164,680 - 668,019 199,487 - 867,506
Food and beverage 107,599 18,714 - 126,313 53,663 - 179,976
Room 31,556 - - 31,556 10,774 - 42,330
Other 55,876 23,859 (14,109) 65,626 26,082 - 91,708
Selling, general and administrative 210,129 37,435 - 247,564 101,930 - 349,494
Maintenance and utilities 74,019 10,108 - 84,127 47,210 - 131,337
Depreciation and amortization 100,683 55,433 - 156,116 42,129 - 198,245
Corporate expense 51,257 1,348 - 52,605 - - 52,605
Preopening expenses 2,888 679 - 3,567 269 - 3,836
Impairments of assets 20,205 - - 20,205 - - 20,205
Asset transactions costs 4,389 315 - 4,704 374 - 5,078
Other, net 165 83 - 248 (2,111) - (1,863)
--- ------
Total costs and expenses 1,162,105 312,654 (14,109) 1,460,650 479,807 - 1,940,457
--------- ------- ------- --------- ------- --- ---------
Operating income from Borgata 39,629 - - 39,629 - (39,629) -
------ --- --- ------ --- ------- ---
Operating income 128,691 60,950 - 189,641 79,257 (39,629) 229,269
------- ------ --- ------- ------ ------- -------
Other expense (income)
Interest income (4) (1,408) - (1,412) - - (1,412)
Interest expense, net of amounts capitalized 115,240 57,652 - 172,892 53,327 - 226,219
Loss on early extinguishments of debt - 1,129 - 1,129 - - 1,129
Other, net 403 95 - 498 - - 498
Other non-operating expenses from 28,226 - - 28,226 - (28,226) -
Borgata, net
Total other expense, net 143,865 57,468 - 201,333 53,327 (28,226) 226,434
------- ------ --- ------- ------ ------- -------
Income (loss) from continuing (15,174) 3,482 - (11,692) 25,930 (11,403) 2,835
operations before taxes
Income taxes 2,457 (11,383) - (8,926) (3,124) - (12,050)
-----
Income (loss) from continuing (12,717) (7,901) - (20,618) 22,806 (11,403) (9,215)
operations, net of tax
Income (loss) from discontinued - - - - - - -
operations, net of tax
Net income (loss) (12,717) (7,901) - (20,618) 22,806 (11,403) (9,215)
Net loss attributable to - - - - - (11,403) (11,403)
noncontrolling interest
Net income (loss) attributable to $(12,717) $(7,901) $ - $(20,618) $22,806 $(22,806) $(20,618)
Boyd Gaming Corporation
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Nine Months Ended September 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 $(0.19) $(0.19)
Discontinued operations - -
Basic net loss per common share $(0.19) $(0.19)
====== ======
Weighted average basic shares 109,854 109,854
outstanding
Diluted net loss per common share:
Continuing operations $(0.19) $(0.19)
Discontinued operations - -
Diluted net loss per common share $(0.19) $(0.19)
====== ======
Weighted average diluted shares 109,854 109,854
outstanding
(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
Nine Months Ended September 30, 2013
(Unaudited)
Boyd Gaming Wholly Owned
------------------------
(In thousands, except per share data) Excluding Peninsula Eliminations Total Borgata (1) LVE Eliminations Boyd
Peninsula Segment (Variable
Interest
Entity)
(2) Gaming
Segment Consolidated
------- ------------
Revenues
Gaming $1,047,770 $373,910 $ - $1,421,680 $472,042 $ - $ - $1,893,722
Food and beverage 201,240 29,524 - 230,764 108,211 - - 338,975
Room 114,178 - - 114,178 89,130 - - 203,308
Other 93,427 13,415 (15,162) 91,680 33,337 1,933 (1,933) 125,017
------ ------ ------- ------ ----- ------ -------
Gross revenues 1,456,615 416,849 (15,162) 1,858,302 702,720 1,933 (1,933) 2,561,022
Less promotional allowances 167,541 16,432 - 183,973 164,148 - - 348,121
------- ------ --- ------- --- --- -------
Net revenues 1,289,074 400,417 (15,162) 1,674,329 538,572 1,933 (1,933) 2,212,901
--------- ------- ------- --------- ------- ----- ------ ---------
Costs and expenses
Gaming 525,254 174,038 - 699,292 188,144 - - 887,436
Food and beverage 107,334 20,141 - 127,475 54,475 - - 181,950
Room 31,444 - - 31,444 10,167 - - 41,611
Other 55,895 24,806 (15,162) 65,539 26,890 - - 92,429
Selling, general and administrative 220,277 42,361 - 262,638 111,227 - - 373,865
Maintenance and utilities 71,235 9,925 - 81,160 44,826 - - 125,986
Depreciation and amortization 97,737 66,173 - 163,910 45,448 - - 209,358
Corporate expense 40,487 2,101 - 42,588 - - - 42,588
Preopening expenses 6,202 91 - 6,293 469 - (1,933) 4,829
Impairments of assets 1,250 - - 1,250 5,032 - - 6,282
Asset transactions costs 1,768 292 - 2,060 205 - - 2,265
Other, net 1,836 199 - 2,035 3,146 - - 5,181
----- --- --- ----- --- ---
Total costs and expenses 1,160,719 340,127 (15,162) 1,485,684 490,029 - (1,933) 1,973,780
--------- ------- ------- --------- ------- --- ------ ---------
Operating income from Borgata 24,271 - - 24,271 - - (24,271) -
------ --- --- ------ --- --- ------- ---
Operating income 152,626 60,290 - 212,916 48,543 1,933 (24,271) 239,121
------- ------ --- ------- ------ ----- ------- -------
Other expense (income)
Interest income (145) (1,634) - (1,779) - - - (1,779)
Interest expense, net of amounts capitalized 139,570 63,107 202,677 61,899 2,377 266,953
Loss on early extinguishments of debt 25,001 1,976 - 26,977 2,536 - - 29,513
Other, net (729) 394 - (335) - - - (335)
Other non-operating expenses 31,867 - - 31,867 - - (31,867) -
from Borgata, net
Total other expense, net 195,564 63,843 - 259,407 64,435 2,377 (31,867) 294,352
------- ------ --- ------- ------ ----- ------- -------
Income (loss) from continuing (42,938) (3,553) - (46,491) (15,892) (444) 7,596 (55,231)
operations before taxes
Income taxes 13,036 (10,259) - 2,777 701 - - 3,478
Income (loss) from continuing (29,902) (13,812) - (43,714) (15,191) (444) 7,596 (51,753)
operations, net of tax
Income from discontinued 10,790 - - 10,790 - - - 10,790
operations, net of tax
Net income (loss) (19,112) (13,812) - (32,924) (15,191) (444) 7,596 (40,963)
Net loss attributable to - - - - - 444 7,595 8,039
noncontrolling interest
Net income (loss) attributable to $(19,112) $(13,812) $ - $(32,924) $(15,191) $ - $15,191 $(32,924)
Boyd Gaming Corporation
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2013
(Unaudited)
Boyd Gaming Wholly Owned
------------------------
(In thousands, except per share data) Excluding Peninsula Segment Eliminations Total Borgata (1) LVE Eliminations Boyd Gaming
Peninsula (Variable Consolidated
Segment Interest
Entity) (2)
----------
Basic net loss per common share:
Continuing operations $(0.47) $(0.47)
Discontinued operations 0.12 0.12
Basic net loss per common share $(0.35) $(0.35)
====== ======
Weighted average basic shares 93,122 93,122
outstanding
Diluted net loss per common share:
Continuing operations $(0.47) $(0.47)
Discontinued operations 0.12 0.12
---- ----
Diluted net loss per common share $(0.35) $(0.35)
====== ======
Weighted average diluted shares 93,122 93,122
outstanding
(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 resumption of growth in the Company's Nevada business; possible stabilization in the Company's regional business; commencement of work on several long-term projects to reposition select amenities; progress in executing the Company's strategy to drive profitability, growth and increase long-term shareholder value; 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
