LAS VEGAS, April 26, 2016 /PRNewswire/ -- Boyd
Gaming Corporation (NYSE: BYD) today reported financial results for
the first quarter ended March 31,
2016.
Boyd Gaming reported first-quarter 2016 net revenues of
$552.4 million, up from $550.6 million in the year-ago quarter.
Total Adjusted EBITDA(1) was $160.4 million, up 7.5% from $149.2 million in the first quarter of 2015.
Keith Smith, President and Chief
Executive Officer of Boyd Gaming, said: "Our Company continues to
perform at a high level and deliver strong results, as the positive
trends we saw in 2015 carried into the first quarter of 2016.
Thanks to a strengthening southern Nevada economy, growth accelerated throughout
our Las Vegas Locals business, which achieved its best
year-over-year revenue comparisons in more than a decade. Recent
investments across our portfolio delivered strong returns, driving
increases in both visitation and revenues. And we used our
substantial free cash flow to further deleverage our balance sheet,
paying down nearly $125 million in
debt during the quarter. In all, this was another great
quarter for our Company as we continued to successfully execute our
strategy, and we remain optimistic about our long-term growth
potential."
Commenting on the Company's recently announced acquisitions of
Aliante Casino Hotel & Spa and the Las Vegas assets of Cannery Casino Resorts,
Smith added: "The Las Vegas Valley's growth prospects are
compelling. We are excited to add three more assets that will
expand and further diversify our presence in this high-growth
market, and believe these acquisitions will deliver strong
long-term returns for our shareholders."
Adjusted Earnings(1) for the first quarter 2016 were
$34.0 million, or $0.30 per share, compared to earnings of
$14.2 million, or $0.13 per share, for the same period in
2015.
On a GAAP basis, the Company reported net income of $33.2 million, or $0.29 per share, for the first quarter 2016,
compared to net income of $35.1
million, or $0.31 per share,
for the year-ago period. Settlements of previous years'
income tax appeals reduced the first-quarter 2015 income tax
provision by $23.2 million. The
impact of the settlements is not included in the prior year's
Adjusted Earnings or Adjusted Earnings per share.
(1)
|
See footnotes at the
end of the release for additional information relative to non-GAAP
financial measures
|
Key Operations Review
Las Vegas Locals
In the Las Vegas Locals
segment, first-quarter 2016 net revenues were $158.4 million, an increase of 5.4% from
$150.3 million in the year-ago
quarter. First-quarter 2016 Adjusted EBITDA was $44.3 million, up 13.9% from $38.9 million in the first quarter of 2015.
The first quarter of 2016 marked the fourth consecutive quarter
of revenue and double-digit Adjusted EBITDA gains for the segment,
as all major Locals properties achieved both higher revenues and
Adjusted EBITDA. A strengthening local economy and
recent investments in property amenities drove growth in
visitation, gaming revenues and non-gaming revenues. Adjusted
EBITDA gains reflect strong flow-through of incremental revenues,
as operating margins improved more than 200 basis points.
Downtown Las
Vegas
In the Downtown
Las Vegas segment, net revenues were $58.6 million in the first quarter of 2016, up
3.5% from $56.6 million in the
year-ago period. Adjusted EBITDA increased 18.8% to
$12.7 million, compared to
$10.7 million in the first quarter of
2015.
All properties in the segment grew revenue and Adjusted EBITDA
during the quarter – led by a record first-quarter Adjusted EBITDA
performance at the Fremont – as operating margins improved 280
basis points across the segment. Positive results reflect
continued growth in visitation throughout the Downtown area, as
well as strengthening business volumes from the Company's Hawaiian
customer segments.
Midwest and South; Peninsula
In the Midwest and
South segment, net revenues were $209.2
million, compared to $217.8
million in the first quarter of 2015. Adjusted EBITDA
was $48.8 million versus $51.0 million in the year-ago period.
The Peninsula segment reported net revenues of $126.2 million, compared to $125.9 million in the first quarter of 2015.
Adjusted EBITDA rose 1.6% to $47.1
million, versus $46.4 million
in the year-ago period.
Improved operating trends continued at a number of properties in
the segments, with both revenue and Adjusted EBITDA growth at Blue
Chip, Diamond Jo Dubuque,
Diamond Jo Worth, Treasure Chest and
Kansas Star. Strong performances at these properties were
offset by the impact of severe regional flooding in March, which
affected operations in portions of Louisiana and Mississippi. Additionally,
results at the IP reflect the short-term impact of the recent
opening of a new competitor in the Biloxi market.
Borgata
Borgata reported first quarter 2016 net
revenues of $190.3 million, an
increase of 4.2% from $182.6 million
in revenues in the year-ago period. Adjusted EBITDA at Borgata was
$45.3 million, an increase of 19.9%
from $37.8 million in the first
quarter of 2015.
Borgata recorded its strongest first-quarter Adjusted EBITDA
performance since 2009, led by significant growth in slot
volumes. The property continued to successfully maintain
operating efficiencies, improving operating margins by more than
300 basis points.
The Company accounts for its 50% investment in Borgata by
applying the equity method of accounting. The Company's share of
Borgata's Adjusted EBITDA was $22.7
million for the first quarter of 2016, compared to
$18.9 million in the year-ago
period.
Balance Sheet Statistics
Including operating cash
balances and excess cash proceeds from its recent bond offering,
Boyd Gaming had cash on hand of $616.2
million, including $27.2
million related to Peninsula, as of March 31, 2016. Total debt was $3.75 billion, of which $0.99 billion was related to Peninsula.
Borgata's cash and debt balances are not included in the
Company's balance sheet. Borgata had cash on hand of $29.8 million and total debt of $651.5 million at March
31, 2016.
Full Year 2016 Guidance
For the full year 2016, the
Company is re-affirming its previously provided guidance of total
Adjusted EBITDA, including Peninsula and 50% of Borgata's Adjusted
EBITDA, of $635 million to $655
million. This guidance excludes the Company's recently
announced acquisitions.
Conference Call Information
Boyd Gaming will host its
conference call to discuss first-quarter 2016 results today,
April 26, at 5:00 p.m. Eastern. The conference call
number is (888) 317-6003, passcode 1870859.
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:
https://www.webcaster4.com/Webcast/Page/964/14670
Following the call's completion, a replay will be available by
dialing (877) 344-7529 today, April
26, beginning at 7:00 p.m.
Eastern and continuing through Tuesday, May
3, at 11:59 p.m.
Eastern. The conference number for the replay will be
10084676. 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
|
|
March
31,
|
(In thousands,
except per share data)
|
2016
|
|
2015
|
Revenues
|
|
|
|
Gaming
|
$
|
462,551
|
|
|
$
|
464,757
|
|
Food and
beverage
|
76,800
|
|
|
76,296
|
|
Room
|
41,875
|
|
|
39,353
|
|
Other
|
31,466
|
|
|
29,685
|
|
Gross
revenues
|
612,692
|
|
|
610,091
|
|
Less promotional
allowances
|
60,314
|
|
|
59,513
|
|
Net
revenues
|
552,378
|
|
|
550,578
|
|
Operating costs
and expenses
|
|
|
|
Gaming
|
223,525
|
|
|
226,697
|
|
Food and
beverage
|
41,803
|
|
|
41,567
|
|
Room
|
10,499
|
|
|
10,047
|
|
Other
|
19,332
|
|
|
19,646
|
|
Selling, general and
administrative
|
81,851
|
|
|
81,689
|
|
Maintenance and
utilities
|
23,848
|
|
|
25,319
|
|
Depreciation and
amortization
|
47,653
|
|
|
51,942
|
|
Corporate
expense
|
17,907
|
|
|
19,652
|
|
Project development,
preopening and writedowns
|
1,841
|
|
|
955
|
|
Impairments of
assets
|
1,440
|
|
|
1,065
|
|
Other operating
items, net
|
429
|
|
|
116
|
|
Total operating
costs and expenses
|
470,128
|
|
|
478,695
|
|
Boyd's share of
Borgata's operating income
|
18,836
|
|
|
11,675
|
|
Operating
income
|
101,086
|
|
|
83,558
|
|
Other expense
(income)
|
|
|
|
Interest
income
|
(497)
|
|
|
(471)
|
|
Interest expense, net
of amounts capitalized
|
53,065
|
|
|
56,935
|
|
Loss on early
extinguishments of debt
|
427
|
|
|
508
|
|
Other, net
|
77
|
|
|
618
|
|
Boyd's share of
Borgata's non-operating items, net
|
7,206
|
|
|
7,661
|
|
Total other
expense, net
|
60,278
|
|
|
65,251
|
|
Income before
income taxes
|
40,808
|
|
|
18,307
|
|
Income taxes benefit
(provision)
|
(7,618)
|
|
|
16,796
|
|
Net
income
|
$
|
33,190
|
|
|
$
|
35,103
|
|
|
|
|
|
Basic net income
per common share
|
$
|
0.29
|
|
|
$
|
0.31
|
|
Weighted average
basic shares outstanding
|
114,109
|
|
|
111,446
|
|
|
|
|
|
Diluted net income
per common share
|
$
|
0.29
|
|
|
$
|
0.31
|
|
Weighted average
diluted shares outstanding
|
114,868
|
|
|
112,358
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Reconciliation of
Adjusted EBITDA to Operating Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(In
thousands)
|
2016
|
|
2015
|
Net Revenues by
Reportable Segment
|
|
|
|
Las Vegas
Locals
|
$
|
158,398
|
|
|
$
|
150,302
|
|
Downtown Las
Vegas
|
58,605
|
|
|
56,603
|
|
Midwest and
South
|
209,185
|
|
|
217,764
|
|
Peninsula
|
126,190
|
|
|
125,909
|
|
Net
revenues
|
$
|
552,378
|
|
|
$
|
550,578
|
|
|
|
|
|
Adjusted EBITDA by
Reportable Segment
|
|
|
|
Las Vegas
Locals
|
$
|
44,271
|
|
|
$
|
38,877
|
|
Downtown Las
Vegas
|
12,681
|
|
|
10,677
|
|
Midwest and
South
|
48,813
|
|
|
50,984
|
|
Peninsula
|
47,112
|
|
|
46,363
|
|
Wholly
owned property Adjusted EBITDA
|
152,877
|
|
|
146,901
|
|
Corporate expense
(a)
|
(15,185)
|
|
|
(16,642)
|
|
Wholly
owned Adjusted EBITDA
|
137,692
|
|
|
130,259
|
|
Borgata
|
22,668
|
|
|
18,913
|
|
Adjusted
EBITDA
|
160,360
|
|
|
149,172
|
|
|
|
|
|
Other operating
costs and expenses
|
|
|
|
Deferred
rent
|
817
|
|
|
857
|
|
Depreciation and
amortization
|
47,653
|
|
|
51,942
|
|
Share-based
compensation expense
|
3,263
|
|
|
3,441
|
|
Project development,
preopening and writedowns
|
1,841
|
|
|
955
|
|
Impairments of
assets
|
1,440
|
|
|
1,065
|
|
Other operating
items, net
|
429
|
|
|
116
|
|
Boyd's share of
Borgata's other operating costs and expenses
|
3,831
|
|
|
7,238
|
|
Total other
operating costs and expenses
|
59,274
|
|
|
65,614
|
|
Operating
income
|
101,086
|
|
|
83,558
|
|
Other expense
(income)
|
|
|
|
Interest
income
|
(497)
|
|
|
(471)
|
|
Interest expense, net
of amounts capitalized
|
53,065
|
|
|
56,935
|
|
Loss on early
extinguishments of debt
|
427
|
|
|
508
|
|
Other, net
|
77
|
|
|
618
|
|
Boyd's share of
Borgata's non-operating items, net
|
7,206
|
|
|
7,661
|
|
Total other
expense, net
|
60,278
|
|
|
65,251
|
|
Income before
income taxes
|
40,808
|
|
|
18,307
|
|
Income taxes benefit
(provision)
|
(7,618)
|
|
|
16,796
|
|
Net
income
|
$
|
33,190
|
|
|
$
|
35,103
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Reconciliation of
Adjusted EBITDA to Operating Income
|
(Unaudited)
|
(Continued)
|
|
(a) Reconciliation of
corporate expense:
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(In
thousands)
|
2016
|
|
2015
|
Corporate expense
as reported on Consolidated Statements of Operations
|
$
|
17,907
|
|
$
|
19,652
|
Corporate share-based
compensation expense
|
|
(2,722)
|
|
|
(3,010)
|
Corporate expense
as reported on the above table
|
$
|
15,185
|
|
$
|
16,642
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Reconciliation of
Net Income to Adjusted Earnings and Net Income Per Share
to
|
Adjusted Earnings
Per Share
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(In thousands,
except per share data)
|
2016
|
|
2015
|
Net
income
|
$
|
33,190
|
|
|
$
|
35,103
|
|
Pretax
adjustments related to Boyd Gaming:
|
|
|
|
Project
development, preopening and writedowns
|
1,841
|
|
|
955
|
|
Impairments of
assets
|
1,440
|
|
|
1,065
|
|
Other
operating items, net
|
77
|
|
|
116
|
|
Loss on early
extinguishments of debt
|
427
|
|
|
508
|
|
Other,
net
|
429
|
|
|
618
|
|
|
|
|
|
Boyd's share of
pretax adjustments related to Borgata:
|
|
|
|
Preopening
expenses
|
36
|
|
|
—
|
|
Loss on early
extinguishments of debt
|
163
|
|
|
246
|
|
Recovery of
property taxes
|
(3,380)
|
|
|
—
|
|
Other
operating items, net
|
—
|
|
|
(162)
|
|
Total
adjustments
|
1,033
|
|
|
3,346
|
|
|
|
|
|
Income tax
effect for above adjustments
|
(263)
|
|
|
(1,004)
|
|
Impact of tax
audit settlements on provision
|
—
|
|
|
(23,196)
|
|
Adjusted
earnings
|
$
|
33,960
|
|
|
$
|
14,249
|
|
|
|
|
|
Net income per
share
|
$
|
0.29
|
|
|
$
|
0.31
|
|
Pretax
adjustments related to Boyd Gaming:
|
|
|
|
Project
development, preopening and writedowns
|
0.02
|
|
|
0.01
|
|
Impairments of
assets
|
0.01
|
|
|
0.01
|
|
Other
operating items, net
|
—
|
|
|
—
|
|
Loss on early
extinguishments of debt
|
—
|
|
|
0.01
|
|
Other,
net
|
0.01
|
|
|
0.01
|
|
|
|
|
|
Boyd's share of
pretax adjustments related to Borgata:
|
|
|
|
Preopening
expenses
|
—
|
|
|
—
|
|
Loss on early
extinguishments of debt
|
—
|
|
|
—
|
|
Recovery of
property taxes
|
(0.03)
|
|
|
—
|
|
Other
operating items, net
|
—
|
|
|
—
|
|
Total
adjustments
|
0.01
|
|
|
0.04
|
|
|
|
|
|
Income tax
effect for above adjustments
|
—
|
|
|
(0.01)
|
|
Impact of tax
audit settlements on provision
|
—
|
|
|
(0.21)
|
|
Adjusted earnings
per share
|
$
|
0.30
|
|
|
$
|
0.13
|
|
|
|
|
|
Weighted average
shares outstanding
|
114,868
|
|
|
112,358
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Condensed
Consolidating Statements of Operations
|
Three Months Ended
March 31, 2016
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Boyd
Gaming
|
(In thousands,
except per share data)
|
Excluding
Peninsula
Segment
|
|
Peninsula
Segment
|
|
Eliminations
|
|
Consolidated
|
Revenues
|
|
|
|
|
|
|
|
Gaming
|
$
|
345,306
|
|
|
$
|
117,245
|
|
|
$
|
—
|
|
|
$
|
462,551
|
|
Food and
beverage
|
67,275
|
|
|
9,525
|
|
|
—
|
|
|
76,800
|
|
Room
|
41,875
|
|
|
—
|
|
|
—
|
|
|
41,875
|
|
Other
|
31,981
|
|
|
4,363
|
|
|
(4,878)
|
|
|
31,466
|
|
Gross
revenues
|
486,437
|
|
|
131,133
|
|
|
(4,878)
|
|
|
612,692
|
|
Less promotional
allowances
|
55,371
|
|
|
4,943
|
|
|
—
|
|
|
60,314
|
|
Net
revenues
|
431,066
|
|
|
126,190
|
|
|
(4,878)
|
|
|
552,378
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Gaming
|
169,724
|
|
|
53,801
|
|
|
—
|
|
|
223,525
|
|
Food and
beverage
|
35,433
|
|
|
6,370
|
|
|
—
|
|
|
41,803
|
|
Room
|
10,499
|
|
|
—
|
|
|
—
|
|
|
10,499
|
|
Other
|
17,062
|
|
|
7,148
|
|
|
(4,878)
|
|
|
19,332
|
|
Selling, general and
administrative
|
68,303
|
|
|
13,548
|
|
|
—
|
|
|
81,851
|
|
Maintenance and
utilities
|
20,759
|
|
|
3,089
|
|
|
—
|
|
|
23,848
|
|
Depreciation and
amortization
|
34,070
|
|
|
13,583
|
|
|
—
|
|
|
47,653
|
|
Corporate
expense
|
17,498
|
|
|
409
|
|
|
—
|
|
|
17,907
|
|
Project development,
preopening and writedowns
|
1,690
|
|
|
151
|
|
|
—
|
|
|
1,841
|
|
Impairments of
assets
|
1,440
|
|
|
—
|
|
|
—
|
|
|
1,440
|
|
Other operating
items, net
|
429
|
|
|
—
|
|
|
—
|
|
|
429
|
|
Total
operating costs and expenses
|
376,907
|
|
|
98,099
|
|
|
(4,878)
|
|
|
470,128
|
|
Boyd's share of
Borgata's operating income
|
18,836
|
|
|
—
|
|
|
—
|
|
|
18,836
|
|
Operating
income
|
72,995
|
|
|
28,091
|
|
|
—
|
|
|
101,086
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
Interest
income
|
(35)
|
|
|
(462)
|
|
|
—
|
|
|
(497)
|
|
Interest expense, net
of amounts capitalized
|
35,254
|
|
|
17,811
|
|
|
—
|
|
|
53,065
|
|
Loss on early
extinguishments of debt
|
—
|
|
|
427
|
|
|
—
|
|
|
427
|
|
Other, net
|
(15)
|
|
|
92
|
|
|
—
|
|
|
77
|
|
Boyd's share of
Borgata's non-operating items, net
|
7,206
|
|
|
—
|
|
|
—
|
|
|
7,206
|
|
Total other expense, net
|
42,410
|
|
|
17,868
|
|
|
—
|
|
|
60,278
|
|
Income before
income taxes
|
30,585
|
|
|
10,223
|
|
|
—
|
|
|
40,808
|
|
Income taxes
provision
|
(2,013)
|
|
|
(5,605)
|
|
|
—
|
|
|
(7,618)
|
|
Net
income
|
$
|
28,572
|
|
|
$
|
4,618
|
|
|
$
|
—
|
|
|
$
|
33,190
|
|
|
|
|
|
|
|
|
|
Basic net income
per common share
|
|
|
|
|
|
|
$
|
0.29
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
114,109
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
$
|
0.29
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
114,868
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Condensed
Consolidating Statements of Operations
|
Three Months Ended
March 31, 2015
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Boyd
Gaming
|
(In thousands,
except per share data)
|
Excluding
Peninsula
Segment
|
|
Peninsula
Segment
|
|
Eliminations
|
|
Consolidated
|
Revenues
|
|
|
|
|
|
|
|
Gaming
|
$
|
347,714
|
|
|
$
|
117,043
|
|
|
$
|
—
|
|
|
$
|
464,757
|
|
Food and
beverage
|
66,317
|
|
|
9,979
|
|
|
—
|
|
|
76,296
|
|
Room
|
39,353
|
|
|
—
|
|
|
—
|
|
|
39,353
|
|
Other
|
30,608
|
|
|
3,905
|
|
|
(4,828)
|
|
|
29,685
|
|
Gross
revenues
|
483,992
|
|
|
130,927
|
|
|
(4,828)
|
|
|
610,091
|
|
Less promotional
allowances
|
54,495
|
|
|
5,018
|
|
|
—
|
|
|
59,513
|
|
Net
revenues
|
429,497
|
|
|
125,909
|
|
|
(4,828)
|
|
|
550,578
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Gaming
|
172,417
|
|
|
54,280
|
|
|
—
|
|
|
226,697
|
|
Food and
beverage
|
35,198
|
|
|
6,369
|
|
|
—
|
|
|
41,567
|
|
Room
|
10,047
|
|
|
—
|
|
|
—
|
|
|
10,047
|
|
Other
|
17,264
|
|
|
7,210
|
|
|
(4,828)
|
|
|
19,646
|
|
Selling, general and
administrative
|
68,433
|
|
|
13,256
|
|
|
—
|
|
|
81,689
|
|
Maintenance and
utilities
|
22,060
|
|
|
3,259
|
|
|
—
|
|
|
25,319
|
|
Depreciation and
amortization
|
34,954
|
|
|
16,988
|
|
|
—
|
|
|
51,942
|
|
Corporate
expense
|
19,247
|
|
|
405
|
|
|
—
|
|
|
19,652
|
|
Project development,
preopening and writedowns
|
827
|
|
|
128
|
|
|
—
|
|
|
955
|
|
Impairments of
assets
|
1,065
|
|
|
—
|
|
|
—
|
|
|
1,065
|
|
Other operating
items, net
|
70
|
|
|
46
|
|
|
—
|
|
|
116
|
|
Total
operating costs and expenses
|
381,582
|
|
|
101,941
|
|
|
(4,828)
|
|
|
478,695
|
|
Boyd's share of
Borgata's operating income
|
11,675
|
|
|
—
|
|
|
—
|
|
|
11,675
|
|
Operating
income
|
59,590
|
|
|
23,968
|
|
|
—
|
|
|
83,558
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
Interest
income
|
(4)
|
|
|
(467)
|
|
|
—
|
|
|
(471)
|
|
Interest expense, net
of amounts capitalized
|
38,265
|
|
|
18,670
|
|
|
|
|
56,935
|
|
Loss on early
extinguishments of debt
|
—
|
|
|
508
|
|
|
—
|
|
|
508
|
|
Other, net
|
457
|
|
|
161
|
|
|
—
|
|
|
618
|
|
Boyd's share of
Borgata's non-operating items, net
|
7,661
|
|
|
—
|
|
|
—
|
|
|
7,661
|
|
Total other expense, net
|
46,379
|
|
|
18,872
|
|
|
—
|
|
|
65,251
|
|
Income before
income taxes
|
13,211
|
|
|
5,096
|
|
|
—
|
|
|
18,307
|
|
Income taxes
provision
|
21,294
|
|
|
(4,498)
|
|
|
—
|
|
|
16,796
|
|
Net
income
|
$
|
34,505
|
|
|
$
|
598
|
|
|
$
|
—
|
|
|
$
|
35,103
|
|
|
|
|
|
|
|
|
|
Basic net income
per common share
|
|
|
|
|
|
|
$
|
0.31
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
111,446
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
$
|
0.31
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
112,358
|
|
MARINA DISTRICT
DEVELOPMENT COMPANY, LLC
|
dba BORGATA HOTEL
CASINO AND SPA
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(In
thousands)
|
2016
|
|
2015
|
Revenues
|
|
|
|
Gaming
|
$
|
174,013
|
|
|
$
|
165,128
|
|
Food and
beverage
|
33,758
|
|
|
34,468
|
|
Room
|
28,628
|
|
|
27,604
|
|
Other
|
9,127
|
|
|
8,510
|
|
Gross
revenues
|
245,526
|
|
|
235,710
|
|
Less promotional
allowances
|
55,233
|
|
|
53,121
|
|
Net
revenues
|
190,293
|
|
|
182,589
|
|
Operating costs
and expenses
|
|
|
|
Gaming
|
67,793
|
|
|
66,919
|
|
Food and
beverage
|
16,784
|
|
|
17,687
|
|
Room
|
3,269
|
|
|
3,260
|
|
Other
|
7,323
|
|
|
6,754
|
|
Selling, general and
administrative
|
35,422
|
|
|
34,153
|
|
Maintenance and
utilities
|
14,367
|
|
|
15,991
|
|
Depreciation and
amortization
|
14,349
|
|
|
14,799
|
|
Preopening
expenses
|
71
|
|
|
—
|
|
Other operating
items, net
|
(6,758)
|
|
|
(324)
|
|
Total operating
costs and expenses
|
152,620
|
|
|
159,239
|
|
Operating
income
|
37,673
|
|
|
23,350
|
|
Other
expense
|
|
|
|
Interest expense, net
of amounts capitalized
|
11,755
|
|
|
16,657
|
|
Loss on early
extinguishments of debt
|
325
|
|
|
492
|
|
Total other
expense
|
12,080
|
|
|
17,149
|
|
Income before
state income taxes
|
25,593
|
|
|
6,201
|
|
State income tax
benefit (expense)
|
(2,332)
|
|
|
1,827
|
|
Net
income
|
$
|
23,261
|
|
|
$
|
8,028
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA to Operating Income
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(In
thousands)
|
2016
|
|
2015
|
Adjusted
EBITDA
|
$
|
45,335
|
|
|
$
|
37,825
|
|
Less:
|
|
|
|
Depreciation and amortization
|
14,349
|
|
|
14,799
|
|
Preopening expenses
|
71
|
|
|
—
|
|
Other
operating items, net
|
(6,758)
|
|
|
(324)
|
|
Operating
income
|
$
|
37,673
|
|
|
$
|
23,350
|
|
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, share-based compensation expense, project development,
preopening and write-down expenses, impairments of assets, loss on
early extinguishments of debt and other operating items, net, and
Boyd's share of Borgata's non-operating expenses, preopening
expenses and other items and write-downs, net.
Adjusted Earnings and Adjusted EPS
Adjusted Earnings is net income (loss) before project
development, preopening and write-down expenses, impairments
of assets, certain adjustments to property tax accruals, other
items, net, gain or loss on early extinguishments of debt,
other non-recurring adjustments, net, the impact on Boyd's
income tax provision of tax audit settlements, and Boyd's share of
Borgata's preopening expenses and other items, losses on early
extinguishments of debt, write-downs, net, and the income tax
provision of tax audit settlements. 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 strengthening southern Nevada economy, growth in the Las Vegas Locals
business, optimism regarding long-term growth, Las Vegas Valley's
long-term growth potential, discussions regarding the recently
announced transactions to acquire Aliante Casino Hotel & Spa
and the Las Vegas assets of
Cannery Casino Resorts, and the belief that these transactions will
deliver strong long-term returns to the Company's shareholders, and
all of the statements under the heading "Full-Year 2016 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 and ability to close the pending
acquisitions, the ability to successfully integrate the companies
or to recognize synergies from the pending acquisitions, if the
transactions close, 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; 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
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/boyd-gaming-reports-first-quarter-2016-results-300257804.html
SOURCE Boyd Gaming Corporation