Boyd Gaming Reports Second-Quarter 2014 Results - NBC12 - Richmond, VA News

Boyd Gaming Reports Second-Quarter 2014 Results

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SOURCE 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.  

Boyd Gaming logo.

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 
    taxes

10,579


(10,596)


4,202


(23,684)

Income taxes

(5,241)


4,102


(10,089)


6,526

Income (loss) from continuing operations, net of tax

5,338


(6,494)


(5,887)


(17,158)

Income from discontinued operations, net of tax

-


11,753


-


10,790

Net income (loss)

5,338


5,259


(5,887)


(6,368)

Net (income) loss attributable to noncontrolling interest

(4,669)


6,368


374


10,711

Net income (loss) attributable to Boyd Gaming Corporation

$

669


$

11,627


$

(5,513)


$

4,343









Basic net income (loss) per common share








Continuing operations

$

0.01


$

-


$

(0.05)


$

(0.07)

Discontinued operations

-


0.13


-


0.12

Basic net income (loss) per common share

$

0.01


$

0.13


$

(0.05)


$

0.05

Weighted average basic shares outstanding

109,884


89,230


109,819


88,606









Diluted net income (loss) per common share








Continuing operations

$

0.01


$

-


$

(0.05)


$

(0.07)

Discontinued operations

-


0.13


-


0.12

Diluted net income (loss) per common share

$

0.01


$

0.13


$

(0.05)


$

0.05

Weighted average diluted shares outstanding

110,813


90,265


109,819


89,447

 













BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA to Operating Income (Loss)

(Unaudited)


























Three Months Ended


Six Months Ended


June 30,


June 30,

(In thousands)

2014


2013


2014


2013

Net Revenues by Reportable Segment








Las Vegas Locals

$

148,270


$

149,690


$

299,713


$

302,517

Downtown Las Vegas

55,552


56,128


111,285


110,211

Midwest and South

209,104


224,273


420,740


453,390

Peninsula

127,754


135,780


250,027


269,693

Borgata

181,854


172,877


349,118


338,521

  Net revenues

$

722,534


$

738,748


$

1,430,883


$

1,474,332









Adjusted EBITDA by Reportable Segment








Las Vegas Locals

$

36,581


$

38,723


$

76,588


$

77,928

Downtown Las Vegas

8,551


9,297


17,878


16,408

Midwest and South

42,199


48,625


86,297


98,307

Peninsula

45,282


48,323


90,043


99,035

  Wholly owned property Adjusted EBITDA

132,613


144,968


270,806


291,678

Corporate expense (1)

(14,625)


(12,628)


(28,795)


(24,266)

  Wholly owned Adjusted EBITDA

117,988


132,340


242,011


267,412

Borgata

42,598


27,847


63,044


56,252

  Adjusted EBITDA

160,586


160,187


305,055


323,664









Other operating costs and expenses








Deferred rent

904


958


1,811


1,915

Depreciation and amortization

65,898


70,318


132,077


140,356

Preopening expenses

1,790


789


2,574


3,154

Share-based compensation expense

3,424


2,894


9,905


6,985

Impairments of assets

293


5,032


1,926


5,032

Asset transactions costs

1,859


614


2,014


3,627

Other operating charges and credits, net

(561)


203


(747)


1,796

Total other operating costs and expenses

73,607


80,808


149,560


162,865

Operating income

86,979


79,379


155,495


160,799

Other non-operating items








Interest expense, net

74,826


87,556


149,853


182,582

Loss on early extinguishments of debt

904


2,372


1,058


2,372

Other, net

670


47


382


(471)

Total other non-operating items, net

76,400


89,975


151,293


184,483

Income (loss) from continuing operations before income taxes

10,579


(10,596)


4,202


(23,684)

Income taxes

(5,241)


4,102


(10,089)


6,526

Income (loss) from continuing operations, net of tax

5,338


(6,494)


(5,887)


(17,158)

Income from discontinued operations, net of tax

-


11,753


-


10,790

Net income (loss)

5,338


5,259


(5,887)


(6,368)

Net (income) loss attributable to noncontrolling interest

(4,669)


6,368


374


10,711

Net income (loss) attributable to Boyd Gaming Corporation

$

669


$

11,627


$

(5,513)


$

4,343

_______________________________________________

(1) Reconciliation of corporate expense:














Three Months Ended


Six Months Ended


June 30,


June 30,

(In thousands)

2014


2013


2014


2013

Corporate expense as reported on Consolidated Statements of
   Operations

$

17,621


$

15,148


$

37,541


$

30,504

Corporate share-based compensation expense

(2,996)


(2,520)


(8,746)


(6,238)

Corporate expense as reported on the above table

$

14,625


$

12,628


$

28,795


$

24,266

 













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
  Corporation

0.01


-


(0.05)


(0.07)

Pretax adjustments related to Boyd Gaming:








  Preopening expenses, excluding impact of LVE

0.01


0.01


0.02


0.06

  Loss on early extinguishments of debt

0.01


0.02


0.01


0.02

  Impairments of assets

-


-


0.01


-

  Asset transactions costs

0.02


0.01


0.02


0.04

  Other operating charges and credits, net

-


-


-


0.02

  Other (income) loss

0.01


-


-


(0.01)









Pretax adjustments related to Borgata:








  Preopening expenses

-


-


-


-

  Valuation adjustments related to consolidation, net

(0.01)


-


(0.01)


(0.01)

  Impairments of assets

-


0.06


-


0.06

  Asset transactions costs

-


-


-


-

  Other operating charges and credits, net

-


-


-


-

 Total adjustments

0.04


0.10


0.05


0.18









Income tax effect for above adjustments

-


(0.07)


-


(0.07)

Impact on noncontrolling interest, net

-


(0.03)


0.01


(0.03)

Adjusted earnings per share

$

0.05


$

-


$

0.01


$

0.01









Weighted average shares outstanding

110,813


89,230


109,819


89,447

_______________________________________________

(1)

Results for the prior year period are adjusted to exclude the financial results of Dania Jai-Alai, which was sold during the second quarter of 2013.

 























BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Three Months Ended June 30, 2014

(Unaudited)

























Boyd Gaming Wholly Owned







(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment


Eliminations


Total


Borgata (1)


Eliminations


Boyd Gaming

Consolidated

Revenues















Gaming


$

334,090


$

118,225


$

-


$

452,315


$

166,599


$

-


$

618,914

Food and beverage


66,679


9,610


-


76,289


34,064


-


110,353

Room


40,760


-


-


40,760


29,602


-


70,362

Other


30,861


4,825


(4,821)


30,865


10,308


-


41,173

Gross revenues


472,390


132,660


(4,821)


600,229


240,573


-


840,802

Less promotional allowances


54,643


4,906


-


59,549


58,719


-


118,268

  Net revenues


417,747


127,754


(4,821)


540,680


181,854


-


722,534
















Costs and expenses















Gaming


166,260


56,954


-


223,214


65,000


-


288,214

Food and beverage


36,786


6,165


-


42,951


18,245


-


61,196

Room


10,788


-


-


10,788


3,693


-


14,481

Other


18,338


8,201


(4,821)


21,718


8,644


-


30,362

Selling, general and administrative


70,231


12,593


-


82,824


28,555


-


111,379

Maintenance and utilities


24,520


3,382


-


27,902


15,121


-


43,023

Depreciation and amortization


33,443


18,325


-


51,768


14,130


-


65,898

Corporate expense


17,236


385


-


17,621


-


-


17,621

Preopening expenses


1,130


424


-


1,554


236


-


1,790

Impairments of assets


293


-


-


293


-


-


293

Asset transactions costs


1,755


103


-


1,858


1


-


1,859

Other, net


(578)


17


-


(561)


-


-


(561)

  Total costs and expenses


380,202


106,549


(4,821)


481,930


153,625


-


635,555
















Operating income from Borgata


14,115


-


-


14,115


-


(14,115)


-
















Operating income


51,660


21,205


-


72,865


28,229


(14,115)


86,979
















Other expense (income)















Interest income


-


(470)


-


(470)


-


-


(470)

Interest expense, net of amounts capitalized


38,293


19,175


-


57,468


17,828


-


75,296

Loss on early extinguishments of debt


-


904


-


904


-


-


904

Other, net


756


(86)


-


670


-


-


670

Other non-operating expenses from Borgata, net


9,446


-


-


9,446


-


(9,446)


-

     Total other expense, net


48,495


19,523


-


68,018


17,828


(9,446)


76,400
















Income (loss) from continuing

   operations before taxes


3,165


1,682


-


4,847


10,401


(4,669)


10,579

Income taxes


(3,686)


(492)


-


(4,178)


(1,063)


-


(5,241)

Income (loss) from continuing

   operations, net of tax


(521)


1,190


-


669


9,338


(4,669)


5,338

Income (loss) from discontinued operations, net of tax


-


-


-


-


-


-


-

Net income (loss)


(521)


1,190


-


669


9,338


(4,669)


5,338

Net income attributable to noncontrolling interest


-


-


-


-


-


(4,669)


(4,669)

Net income (loss) attributable to Boyd Gaming Corporation


$

(521)


$

1,190


$

-


$

669


$

9,338


$

(9,338)


$

669



















BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Three Months Ended June 30, 2014

(Unaudited)

























Boyd Gaming Wholly Owned








(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment


Eliminations


Total


Borgata (1)


Eliminations


Boyd Gaming

Consolidated

Basic net income per common share















Continuing operations








$

0.01






$

0.01

Discontinued operations








-






-

    Basic net income per common share








$

0.01






$

0.01

Weighted average basic shares outstanding








109,884






109,884
















Diluted net income per common share















Continuing operations








$

0.01






$

0.01

Discontinued operations








-






-

    Diluted net income per common share








$

0.01






$

0.01

Weighted average diluted shares outstanding








110,813






110,813

_______________________________________________

(1)

Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

 























BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Three Months Ended June 30, 2013

(Unaudited)

























Boyd Gaming Wholly Owned







(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula Segment


Eliminations


Total


Borgata (1)


Eliminations


Boyd Gaming

Consolidated

Revenues















Gaming


$

351,927


$

126,617


$

-


$

478,544


$

149,382


$

-


$

627,926

Food and beverage


67,606


10,075


-


77,681


35,123


-


112,804

Room


38,679


-


-


38,679


28,475


-


67,154

Other


31,584


4,570


(5,106)


31,048


10,850


-


41,898

Gross revenues


489,796


141,262


(5,106)


625,952


223,830


-


849,782

Less promotional allowances


54,600


5,481


-


60,081


50,953


-


111,034

  Net revenues


435,196


135,781


(5,106)


565,871


172,877


-


738,748
















Costs and expenses















Gaming


172,811


59,798


-


232,609


55,192


-


287,801

Food and beverage


36,369


6,814


-


43,183


21,059


-


64,242

Room


10,749


-


-


10,749


5,206


-


15,955

Other


18,457


8,350


(5,106)


21,701


9,498


-


31,199

Selling, general and administrative


73,016


14,362


-


87,378


39,622


-


127,000

Maintenance and utilities


23,348


3,241


-


26,589


14,453


-


41,042

Depreciation and amortization


32,547


22,268


-


54,815


15,503


-


70,318

Corporate expense


14,367


781


-


15,148


-


-


15,148

Preopening expenses


644


91


-


735


54


-


789

Impairments of assets


-


-


-


-


5,032


-


5,032

Asset transactions costs


491


53


-


544


70


-


614

Other, net


94


135


-


229


-


-


229

  Total costs and expenses


382,893


115,893


(5,106)


493,680


165,689


-


659,369
















Operating income from Borgata


3,594


-


-


3,594


-


(3,594)


-
















Operating income


55,897


19,888


-


75,785


7,188


(3,594)


79,379
















Other expense (income)















Interest income


(17)


(553)


-


(570)


-


-


(570)

Interest expense, net of amounts capitalized


46,469


20,813




67,282


20,844


-


88,126

Loss on early extinguishments of debt


2,372


-


-


2,372


-


-


2,372

Other, net


(2,793)


2,840


-


47


-


-


47

Other non-operating expenses from Borgata, net


9,961


-


-


9,961


-


(9,961)


-

     Total other expense, net


55,992


23,100


-


79,092


20,844


(9,961)


89,975
















Income (loss) from continuing

   operations before taxes


(95)


(3,212)


-


(3,307)


(13,656)


6,367


(10,596)

Income taxes


5,381


(2,200)


-


3,181


921


-


4,102

Income (loss) from continuing

   operations, net of tax


5,286


(5,412)


-


(126)


(12,735)


6,367


(6,494)

Income from discontinued operations, net of tax


11,753


-


-


11,753


-


-


11,753

Net income (loss)


17,039


(5,412)


-


11,627


(12,735)


6,367


5,259

Net loss attributable to noncontrolling interest


-


-


-


-


-


6,368


6,368

Net income (loss) attributable to Boyd Gaming Corporation


$

17,039


$

(5,412)


$

-


$

11,627


$

(12,735)


$

12,735


$

11,627
































BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Three Months Ended June 30, 2013

(Unaudited)











Boyd Gaming Wholly Owned








(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula Segment


Eliminations


Total


Borgata (1)


Eliminations


Boyd Gaming

Consolidated

Basic net income per common share















Continuing operations








$

-






$

-

Discontinued operations








0.13






0.13

  Basic net income per common share








$

0.13






$

0.13

Weighted average basic shares outstanding








89,230






89,230
















Diluted net income per common share















Continuing operations








$

-






$

-

Discontinued operations








0.13






0.13

  Diluted net income per common share








$

0.13






$

0.13

Weighted average diluted shares outstanding








90,265






90,625

_______________________________________________

(1)

Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

 























BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Six Months Ended June 30, 2014

(Unaudited)

























Boyd Gaming Wholly Owned







(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment


Eliminations


Total


Borgata (1)


Eliminations


Boyd Gaming

Consolidated

Revenues















Gaming


$

675,294


$

232,092


$

-


$

907,386


$

320,285


$

-


$

1,227,671

Food and beverage


132,820


19,058


-


151,878


65,118


-


216,996

Room


79,571


-


-


79,571


55,171


-


134,742

Other


62,033


8,723


(9,502)


61,254


18,879


-


80,133

Gross revenues


949,718


259,873


(9,502)


1,200,089


459,453


-


1,659,542

Less promotional allowances


108,477


9,847


-


118,324


110,335


-


228,659

  Net revenues


841,241


250,026


(9,502)


1,081,765


349,118


-


1,430,883
















Costs and expenses















Gaming


334,759


110,165


-


444,924


128,464


-


573,388

Food and beverage


72,274


12,251


-


84,525


33,940


-


118,465

Room


21,174


-


-


21,174


6,477


-


27,651

Other


37,000


15,513


(9,502)


43,011


15,143


-


58,154

Selling, general and administrative


141,135


24,966


-


166,101


69,957


-


236,058

Maintenance and utilities


47,601


6,592


-


54,193


32,094


-


86,287

Depreciation and amortization


67,296


36,790


-


104,086


27,991


-


132,077

Corporate expense


36,733


808


-


37,541


-


-


37,541

Preopening expenses


1,696


609


-


2,305


269


-


2,574

Impairments of assets


1,926


-


-


1,926


-


-


1,926

Asset transactions costs


1,895


120


-


2,015


(1)


-


2,014

Other, net


(428)


83


-


(345)


(402)


-


(747)

  Total costs and expenses


763,061


207,897


(9,502)


961,456


313,932


-


1,275,388
















Operating income from Borgata


17,593


-


-


17,593


-


(17,593)


-
















Operating income


95,773


42,129


-


137,902


35,186


(17,593)


155,495
















Other expense (income)















Interest income


(4)


(942)


-


(946)


-


-


(946)

Interest expense, net of amounts capitalized


76,788


38,493


-


115,281


35,518


-


150,799

Loss on early extinguishments of debt


-


1,058


-


1,058


-


-


1,058

Other, net


365


17


-


382


-


-


382

Other non-operating expenses from Borgata, net


17,967


-


-


17,967


-


(17,967)


-

     Total other expense, net


95,116


38,626


-


133,742


35,518


(17,967)


151,293
















Income (loss) from continuing

   operations before taxes


657


3,503


-


4,160


(332)


374


4,202

Income taxes


(5,386)


(4,287)


-


(9,673)


(416)


-


(10,089)

Income (loss) from continuing

   operations, net of tax


(4,729)


(784)


-


(5,513)


(748)


374


(5,887)

Income (loss) from discontinued operations, net of tax


-


-


-


-


-


-


-

Net income (loss)


(4,729)


(784)


-


(5,513)


(748)


374


(5,887)

Net loss attributable to noncontrolling interest


-


-


-


-


-


374


374

Net income (loss) attributable to Boyd Gaming Corporation


$

(4,729)


$

(784)


$

-


$

(5,513)


$

(748)


$

748


$

(5,513)



































































BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Six Months Ended June 30, 2014
(Unaudited)

























Boyd Gaming Wholly Owned










(In thousands, except per share data)


Excluding
Peninsula
Segment


Peninsula
Segment


Eliminations


Total


Borgata (1)


Eliminations


Boyd Gaming
Consolidated

Basic net loss per common share






















   Continuing operations











$

(0.05)








$

(0.05)

   Discontinued operations












-









-

      Basic net loss per common share











$

(0.05)








$

(0.05)

   Weighted average basic shares outstanding












109, 819









109, 819























Diluted net loss per common share






















   Continuing operations











$

(0.05)








$

(0.05)

   Discontinued operations












-









-

       Diluted net loss per common share











$

(0.05)








$

(0.05)

   Weighted average diluted shares outstanding












109, 819









109, 819

_______________________________________________

(1)

Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

 


























BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Six Months Ended June 30, 2013

(Unaudited)




























Boyd Gaming Wholly Owned









(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula Segment


Eliminations


Total


Borgata (1)


LVE
(Variable
Interest
Entity) (2)


Eliminations


Boyd Gaming

Consolidated

Revenues

















Gaming


$

712,896


$

252,527


$

-


$

965,423


$

295,062


$

-


$

-


$

1,260,485

Food and beverage


135,754


19,766


-


155,520


69,058


-


-


224,578

Room


75,860


-


-


75,860


55,149


-


-


131,009

Other


63,179


8,266


(10,277)


61,168


20,041


1,933


(1,933)


81,209

Gross revenues


987,689


280,559


(10,277)


1,257,971


439,310


1,933


(1,933)


1,697,281

Less promotional allowances


111,294


10,866


-


122,160


100,789


-


-


222,949

  Net revenues


876,395


269,693


(10,277)


1,135,811


338,521


1,933


(1,933)


1,474,332


















Costs and expenses

















Gaming


352,168


116,557


-


468,725


116,338


-


-


585,063

Food and beverage


72,394


13,514


-


85,908


38,387


-


-


124,295

Room


20,852


-


-


20,852


8,203


-


-


29,055

Other


37,662


15,813


(10,277)


43,198


16,175


-


-


59,373

Selling, general and administrative


147,899


28,732


-


176,631


74,397


-


-


251,028

Maintenance and utilities


45,162


6,320


-


51,482


28,769


-


-


80,251

Depreciation and amortization


65,280


43,965


-


109,245


31,111


-


-


140,356

Corporate expense


28,637


1,867


-


30,504


-


-


-


30,504

Preopening expenses


4,942


91


-


5,033


54


-


(1,933)


3,154

Impairments of assets


-


-


-


-


5,032


-


-


5,032

Asset transactions costs


3,060


163


-


3,223


404


-


-


3,627

Other, net


1,662


133


-


1,795


-


-


-


1,795

  Total costs and expenses


779,718


227,155


(10,277)


996,596


318,870


-


(1,933)


1,313,533


















Operating income from Borgata


9,825


-


-


9,825


-


-


(9,825)


-


















Operating income


106,502


42,538


-


149,040


19,651


1,933


(9,825)


160,799


















Other expense (income)

















Interest income


(144)


(1,082)


-


(1,226)


-


-


-


(1,226)

Interest expense, net of amounts capitalized


96,614


43,199




139,813


41,618


2,377




183,808

Loss on early extinguishments of debt


2,372


-


-


2,372


-


-


-


2,372

Other, net


(2,792)


2,321


-


(471)


-


-


-


(471)

Other non-operating expenses from Borgata, net


20,092


-


-


20,092


-


-


(20,092)


-

     Total other expense, net


116,142


44,438


-


160,580


41,618


2,377


(20,092)


184,483


















Income (loss) from continuing

   operations before taxes


(9,640)


(1,900)


-


(11,540)


(21,967)


(444)


10,267


(23,684)

Income taxes


11,984


(6,891)


-


5,093


1,433


-


-


6,526

Income (loss) from continuing

   operations, net of tax


2,344


(8,791)


-


(6,447)


(20,534)


(444)


10,267


(17,158)

Income from discontinued operations, net of tax


10,790


-


-


10,790


-


-


-


10,790

Net income (loss)


13,134


(8,791)


-


4,343


(20,534)


(444)


10,267


(6,368)

Net loss attributable to noncontrolling interest


-


-


-


-


-


444


10,267


10,711

Net income (loss) attributable to Boyd Gaming Corporation


$

13,134


$

(8,791)


$

-


$

4,343


$

(20,534)


$

-


$

20,534


$

4,343












































BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Six Months Ended June 30, 2013

(Unaudited)




























Boyd Gaming Wholly Owned













(In thousands, except per share data)


Excluding

Peninsula

Segment


 

Peninsula Segment


 

Eliminations


 

Total


 

Borgata (1)


LVE
(Variable
Interest
Entity) (2)


 

Eliminations


 

Boyd Gaming

Consolidated

Basic net income per common share















Continuing operations







$

(0.07)







$

(0.07)

Discontinued operations







0.12







0.12

    Basic net income per common share







$

0.05







$

0.05

Weighted average basic shares outstanding







88,606







88,606
















Diluted net income per common share















Continuing operations







$

(0.07)







$

(0.07)

Discontinued operations







0.12







0.12

   Diluted net income per common share







$

0.05







$

0.05

Weighted average diluted shares outstanding







89,447







89,447

 _______________________________________________

(1)

Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

(2)

Boyd Gaming's contractual agreements with LVE were terminated on March 4, 2013, in connection with the sale of the Echelon development site. As a result, Boyd Gaming ceased consolidation of LVE as of that date. The financial results presented for LVE include only that portion of the period that the variable interest entity was consolidated by Boyd Gaming.

 

 

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.

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