Boyd Gaming Reports Fourth-Quarter, Full-Year Results -Fourth Consecutive Quarter of Wholly-Owned EBITDA Growth-

-All Four Business Units Post Revenue Gains-

LAS VEGAS, Feb. 21, 2012 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2011.

(Logo:  http://photos.prnewswire.com/prnh/20030219/BOYDLOGO)

Net revenues were $606.7 million for the fourth quarter 2011, an increase of 9.9% from $551.9 million during the same quarter in 2010.  Total Adjusted EBITDA(1) rose 14.3% to $114.3 million, compared to $100.0 million in the prior year.  These results include the operations of the IP Casino Resort Spa, acquired by the Company on October 4, 2011.

Boyd Gaming's wholly-owned business, including the IP, reported fourth-quarter 2011 net revenues of $428.9 million, up 12.3% from the year-ago period.  Wholly-owned Adjusted EBITDA rose 15.9% to $76.4 million.  Borgata, the Company's 50% joint venture, reported fourth-quarter 2011 net revenues of $176.4 million, up 4.5% from the fourth quarter of 2010, while Adjusted EBITDA at the property increased 11.0% to $37.9 million.  

For the fourth quarter 2011, the Company reported a net loss of $0.5 million, or $0.01 per share, compared to a net loss of $7.1 million, or $0.08 per share, in the same period last year.  

Adjusted Earnings(1) for the fourth quarter 2011 were a loss of $2.9 million, or $0.03 per share, compared to a loss of $3.9 million, or $0.05 per share, for the same period in 2010.  Certain pre-tax items included in Adjusted Earnings for the fourth quarter 2011 resulted in a net decrease of less than $0.1 million ($2.4 million, net of tax and noncontrolling interest, or $0.02 per share).  By comparison, pre-tax items included in Adjusted Earnings for the fourth quarter 2010 resulted in a net increase in income of $4.9 million ($3.2 million, net of tax and noncontrolling interest, or $0.03 per share). Pre-tax items included in adjusted earnings are listed in a table at the end of this press release.

Commenting on the quarter, Keith Smith, President and Chief Executive Officer of Boyd Gaming, said, "We continued to produce consistent growth across the business in the fourth quarter. Our focus on profitable revenue growth and creating efficiencies allowed us to produce gains in EBITDA every quarter in 2011 and, for the first time in several years, we reported revenue increases in each of our business segments during the quarter.  As economic conditions strengthen in our core markets, we are confident that our strategy of keeping a tight rein on costs, generating profitable new revenues and diversifying our sources of cash flow will deliver bottom-line results."  

(1)

See footnotes at the end of the release for additional information relative to non-GAAP financial measures.



Full-Year 2011 Results

For the year ended December 31, 2011, Boyd Gaming reported net revenues of $2.34 billion, an increase of 1.6% from the year ended December 31, 2010.  Total Adjusted EBITDA was $466.1 million during the period, an increase of 4.7% from the year 2010. (2)  Full-year 2011 results include the operations of the IP, acquired by the Company on October 4, 2011.  

During the full-year 2011, the Company's wholly-owned operations posted net revenues of $1.60 billion, up 3.0% from the year-ago period, while wholly-owned Adjusted EBITDA rose 11.7% to $308.0 million.  Borgata reported net revenues of $730.3 million during the year ended December 31, 2011, a decline of 1.1%, while property Adjusted EBITDA was down 6.7% to $158.1 million.

The Company reported a net loss for the year ended December 31, 2011 of $3.9 million, or $0.04 per share.  By comparison, we reported net income of $10.3 million, or $0.12 per share, for the year ended December 31, 2010.

Adjusted Earnings for the Company for the year ended December 31, 2011 were $1.1 million, or $0.01 per share, compared to earnings of $10.6 million, or $0.12 per share, during the full-year 2010.

(2)

See financial schedules at the end of this release for reconciliations relative to the pro forma effect of the consolidation of Borgata as if such consolidation had occurred as of the beginning of the period presented.



Key Operations Review

Las Vegas Locals

In the Las Vegas Locals segment, fourth-quarter 2011 net revenues were $152.7 million, up slightly from the fourth quarter of 2010.  Fourth-quarter 2011 Adjusted EBITDA increased 8.0% to $36.8 million, marking the region's third consecutive quarter of positive EBITDA comparisons.  All four major properties in the region posted year-over-year EBITDA growth, as we improved operating margins by 170 basis points despite a heightened promotional environment.

For the full year 2011, Adjusted EBITDA for the Las Vegas Locals region increased $8.4 million, or 6.1%, to $145.8 million, while net revenues were essentially flat at $605.0 million. More productive marketing initiatives and effective cost-control measures helped drive full-year EBITDA growth.

Downtown

The Company's Downtown Las Vegas properties generated net revenues of $58.7 million for the fourth quarter 2011, up 2.7% from $57.1 million in the fourth quarter 2010. Adjusted EBITDA was $10.8 million, flat with the same quarter last year.  EBITDA at the three Downtown properties rose 7.2% during the fourth quarter; however, this strong performance was offset by significantly higher fuel expense associated with the Company's Hawaiian charter service.  

During the year ended December 31, 2011, Adjusted EBITDA rose 2.9% to $35.2 million, and net revenues increased 2.8% to $224.3 million. At the property operating level, EBITDA at the three Downtown properties increased $4.1 million, or 9.7%, to $47.6 million. Full-year results benefitted from increased visitation and play by our Hawaiian customer segment, offset almost entirely by higher fuel expense.

Midwest and South

In the Midwest and South region, net revenues were $217.6 million, up 26.1% from the year-ago quarter, while Adjusted EBITDA rose 28.5% to $39.1 million. Regional results reflect the acquisition of the IP, as well as strong operating performances at Blue Chip and Delta Downs.  The IP contributed $44.6 million in net revenues and $8.4 million in EBITDA to regional results following our acquisition of the property on October 4.

For the full year 2011, Adjusted EBITDA in the Midwest and South region increased 16.3% to $167.1 million, while revenues rose 5.8% to $771.4 million. Full-year results reflect strong operating performances and margin improvements at a majority of our properties, as well as the addition of the IP to regional operations.

Borgata

Borgata's net revenues for the fourth quarter 2011 were $176.4 million, up 4.5% from the fourth quarter 2010, while Adjusted EBITDA rose 11.0% to $37.9 million in the same period.  The EBITDA growth was driven by a 7% increase in gross gaming revenue, as well as a 110 basis point improvement in operating margins.  Borgata continued to lead the market, achieving an all-time record market share of 21.2% in the fourth quarter.

For the full year, Borgata's net revenues fell 1.1% to $730.3 million, while Adjusted EBITDA declined 6.7% to $158.1 million.  Full-year results were impacted by heightened competition in the region, as well as the three-day hurricane-related closure of the property over a weekend in late August.

Commenting on Company operations, Paul Chakmak, Executive Vice President and Chief Operating Officer of Boyd Gaming, said, "Our strategy of maintaining efficiencies and pursuing profitable revenue growth is succeeding, as shown by our full-year results.  We remain focused on developing new ways to enhance the guest experience, and will take an important step in that direction early in the second quarter when we launch an enhanced version of B Connected Online, our award-winning player loyalty website."

Conference Call Information

Boyd Gaming will host its fourth-quarter 2011 conference call today, February 21, at 12:00 p.m. Eastern, on which the Company will provide guidance for the first quarter 2012.  The conference call number is (866) 524-3160.  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=84986

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, February 21, beginning at 2:00 p.m. Eastern and continuing through Tuesday, February 28 at 9 a.m. Eastern.  The conference number for the replay will be 10009798.  The replay will also be available on the Internet at www.boydgaming.com.

The results of Borgata for the period from October 1 through December 31 are included in our condensed consolidated statements of operations for the three months ended December 31, 2011 and 2010, respectively; and its results for the period from January 1, 2011 through December 31, 2011 and from March 24, 2010 through December 31, 2010 are included in the condensed consolidated statements of operations for the years ended December 31, 2011 and 2010, respectively. The results of LVE are consolidated in our condensed consolidated statements of operations for the three months and years ended December 31, 2011 and 2010. The previously reported results for the three months and year ended December 31, 2010 have been revised to reflect the correction of an immaterial error related to the consolidation of LVE. These revisions had no effect on net income, as previously reported in these periods.


Three Months Ended


Year Ended


December 31,


December 31,


2011

2010


2011

2010


(In thousands, except per share data)

Revenues






   Gaming

$   517,328

$   468,204


$    1,986,644

$    1,812,487

   Food and beverage

102,265

92,422


388,148

347,588

   Room

64,328

56,799


246,209

211,046

   Other

34,764

32,008


135,176

123,603

Gross revenues

718,685

649,433


2,756,177

2,494,724

      Less promotional allowances

112,011

97,493


419,939

353,825

          Net revenues

606,674

551,940


2,336,238

2,140,899







Costs and expenses






   Gaming

243,994

224,357


924,451

859,818

   Food and beverage

51,649

48,359


200,165

180,840

   Room

16,190

12,556


56,111

49,323

   Other

26,716

25,125


108,907

99,458

   Selling, general and administrative

106,119

98,576


394,991

369,217

   Maintenance and utilities

38,399

35,952


153,512

140,722

   Depreciation and amortization

50,237

51,370


195,343

199,275

   Corporate expense

12,393

12,225


48,962

48,861

   Preopening expenses

1,342

2,469


6,634

7,459

   Other operating charges, net

4,789

(219)


14,058

4,713

          Total costs and expenses

551,828

510,770


2,103,134

1,959,686







Operating income from Borgata

-

-


-

8,146

Operating income

54,846

41,170


233,104

189,359







Other expense (income)






   Interest income

(6)

(1)


(46)

(5)

   Interest expense, net of amounts capitalized

66,663

71,120


250,731

180,558

   Fair value adjustment of derivative instruments

-

480


265

480

    (Gain) loss on early retirements of debt, net

48

1,191


14

(2,758)

   Gain on equity distribution

-

-


-

(2,535)

   Other income

(10,582)

-


(11,582)

(10,000)

   Other non-operating expenses from Borgata, net

-

-


-

3,133

          Total other expense, net

56,123

72,790


239,382

168,873







Income (loss) before income taxes

(1,277)

(31,620)


(6,278)

20,486

Income taxes

(1,749)

7,296


(1,721)

(8,236)

Net income (loss)

(3,026)

(24,324)


(7,999)

12,250

Noncontrolling interest

2,535

17,226


4,145

(1,940)

Net income (loss) attributable to Boyd Gaming Corporation

$         (491)

$      (7,098)


$         (3,854)

$         10,310







Basic net income (loss) per common share

$        (0.01)

$        (0.08)


$           (0.04)

$             0.12







Weighted average basic shares outstanding

87,732

86,877


87,339

86,601







Diluted net income (loss) per common share

$        (0.01)

$        (0.08)


$           (0.04)

$             0.12







Weighted average diluted shares outstanding

87,732

86,877


87,339

86,831



The following table sets forth the impact of the consolidation of Borgata and LVE during the three months ended December 31, 2011. For the purposes of this presentation, and consistent with GAAP, Borgata and LVE have both been consolidated for the entire period. The wholly-owned column reflects the equity method of accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.


Three Months Ended December 31, 2011


Boyd Gaming  Wholly-Owned


Borgata


Borgata Eliminations


Boyd/Borgata Subtotal


LVE (Variable Interest Entity)


LVE Eliminations


Boyd Gaming Consolidated


(In thousands, except per share data)















Revenues














   Gaming

$        359,618


$   157,710


$               -


$       517,328


$       -


$               -


$       517,328

   Food and beverage

67,042


35,223


-


102,265


-


-


102,265

   Room

36,968


27,360


-


64,328


-


-


64,328

   Other

25,195


9,569


-


34,764


2,724


(2,724)


34,764

Gross revenues

488,823


229,862


-


718,685


2,724


(2,724)


718,685

     Less promotional allowances

58,559


53,452


-


112,011


-


-


112,011

         Net revenues

430,264


176,410


-


606,674


2,724


(2,724)


606,674















Costs and expenses














   Gaming

179,491


64,503


-


243,994


-


-


243,994

   Food and beverage

33,706


17,943


-


51,649


-


-


51,649

   Room

12,651


3,539


-


16,190


-


-


16,190

   Other

19,360


7,356


-


26,716


-


-


26,716

   Selling, general and administrative

75,582


30,537


-


106,119


-


-


106,119

   Maintenance and utilities

24,677


14,672


-


39,349


(950)


-


38,399

   Depreciation and amortization

35,377


14,860


-


50,237


-


-


50,237

   Corporate expense

12,393


-


-


12,393


-


-


12,393

   Preopening expenses

3,929


137


-


4,066


-


(2,724)


1,342

   Other operating charges, net

4,150


639


-


4,789


-


-


4,789

         Total costs and expenses

401,316


154,186


-


555,502


(950)


(2,724)


551,828















Operating income from Borgata

11,112


-


(11,112)


-


-


-


-















Operating income

40,060


22,224


(11,112)


51,172


3,674


-


54,846















Other expense (income)














   Interest income

(6)


-


-


(6)


-


-


(6)

   Interest expense, net of amounts capitalized

38,638


21,708


-


60,346


6,317


-


66,663

   Fair value adjustment of derivative instruments

-


-


-


-


-


-


-

   Loss on early retirements of debt, net

-


48


-


48


-


-


48

   Other income

(10,582)


-


-


(10,582)


-


-


(10,582)

   Gain on equity distribution

-


-


-


-


-


-


-

   Other non-operating expenses from Borgata, net

11,004


-


(11,004)


-


-


-


-

         Total other expense, net

39,054


21,756


(11,004)


49,806


6,317


-


56,123















Income (loss) before income taxes

1,006


468


(108)


1,366


(2,643)


-


(1,277)

Income taxes

(1,497)


(252)


-


(1,749)


-


-


(1,749)















Net income (loss)

(491)


216


(108)


(383)


(2,643)


-


(3,026)

Noncontrolling interest

-


-


(108)


(108)


2,643


-


2,535















Net income (loss) attributable to Boyd Gaming Corporation

$             (491)


$          216


$          (216)


$            (491)


$        -


$               -


$            (491)















Basic net income (loss) per common share

$            (0.01)












$           (0.01)















Weighted average basic shares outstanding

87,732












87,732















Diluted net income (loss) per common share

$            (0.01)












$           (0.01)















Weighted average diluted shares outstanding

87,732












87,732



The following table sets forth the impact of the consolidation of Borgata and LVE during the three months ended December 31, 2010. For the purposes of this presentation, and consistent with GAAP, Borgata and LVE have both been consolidated for the entire period. The wholly-owned column reflects the equity method of accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation. The previously reported results for the three months ended December 31, 2010 have been revised to reflect the correction of an immaterial error related to the consolidation of LVE. These revisions had no effect on net income, as previously reported in this period.


Three Months Ended December 31, 2010


Boyd Gaming  Wholly-Owned


Borgata


Borgata Eliminations


Boyd/Borgata Subtotal


LVE (Variable Interest Entity)


LVE Eliminations


Boyd Gaming Consolidated


(In thousands, except per share data)















Revenues














   Gaming

$          319,445


$       148,759


$               -


$          468,204


$      -


$                -


$          468,204

   Food and beverage

58,260


34,162


-


92,422


-


-


92,422

   Room

29,795


27,003


-


56,799


-


-


56,799

   Other

22,303


9,705


-


32,008


-


-


32,008

Gross revenues

429,803


219,629


-


649,433


-


-


649,433

   Less promotional allowances

46,648


50,845


-


97,493


-


-


97,493

        Net revenues

383,155


168,784


-


551,940


-


-


551,940















Costs and expenses














   Gaming

162,044


62,313


-


224,357


-


-


224,357

   Food and beverage

31,963


16,396


-


48,359


-


-


48,359

   Room

9,342


3,214


-


12,556


-


-


12,556

   Other

17,446


7,679


-


25,125


-


-


25,125

   Selling, general and administrative

68,066


30,510


-


98,576


-


-


98,576

   Maintenance and utilities

21,376


14,576


-


35,952


-


-


35,952

   Depreciation and amortization

34,798


16,572


-


51,370


-


-


51,370

   Corporate expense

12,225


-


-


12,225


-


-


12,225

   Preopening expenses

3,415


-


-


3,415


(946)


-


2,469

   Other operating charges, net

(204)


(15)


-


(219)


-


-


(219)

        Total costs and expenses

360,471


151,245


-


511,716


(946)


-


510,770















Operating income from Borgata

8,769


-


(8,769)


-






-















Operating income

31,453


17,539


(8,769)


40,224


946


-


41,170















Other expense (income)














   Interest income

(1)


-


-


(1)


-


-


(1)

   Interest expense, net of amounts capitalized

33,225


21,791


-


55,016


16,104


-


71,120

   Fair value adjustment of derivative instruments

480


-


-


480


-


-


480

   Loss on early retirements of debt, net

1,191


-


-


1,191


-


-


1,191

   Other income

-


-


-


-


-


-


-

   Gain on equity distribution

-


-


-


-


-


-


-

   Other non-operating expenses from Borgata, net

10,837


-


(10,837)


-


-


-


-

        Total other expense, net

45,732


21,791


(10,837)


56,686


16,104


-


72,790















Income (loss) before income taxes

(14,279)


(4,251)


2,068


(16,462)


(15,158)


-


(31,620)

Income taxes

7,181


115


-


7,296


-


-


7,296















Net income (loss)

(7,098)


(4,136)


2,068


(9,166)


(15,158)


-


(24,324)

Noncontrolling interest

-


-


2,068


2,068


15,158


-


17,226















Net income (loss) attributable to Boyd Gaming Corporation

$         (7,098)


$      (4,136)


$         4,136


$         (7,098)


$      -


$                -


$         (7,098)















Basic net income (loss) per common share

$              (0.08)












$              (0.08)















Weighted average basic shares outstanding

86,877












86,877















Diluted net income (loss) per common share

$              (0.08)












$              (0.08)















Weighted average diluted shares outstanding

86,877












86,877



The following table sets forth the impact of the consolidation of Borgata and LVE during the year ended December 31, 2011. For the purposes of this presentation, and consistent with GAAP, Borgata and LVE have both been consolidated for the period from January 1, 2011 through December 31, 2011. The wholly-owned column reflects the equity method of accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.


Year Ended December 31, 2011


Boyd Gaming  Wholly-Owned


Borgata


Borgata Eliminations


Boyd/Borgata Subtotal


LVE (Variable Interest Entity)


LVE Eliminations


Boyd Gaming Consolidated


(in thousands, except per share data)

Revenues














   Gaming

$     1,338,202


$   648,442


$               -


$    1,986,644


$       -


$               -


$    1,986,644

   Food and beverage

240,065


148,083


-


388,148


-


-


388,148

   Room

129,672


116,537


-


246,209


-


-


246,209

   Other

93,718


41,458


-


135,176


10,858


(10,858)


135,176

Gross revenues

1,801,657


954,520


-


2,756,177


10,858


(10,858)


2,756,177

Less promotional allowances

195,693


224,246


-


419,939


-


-


419,939

        Net revenues

1,605,964


730,274


-


2,336,238


10,858


(10,858)


2,336,238















Costs and expenses














   Gaming

660,580


263,871


-


924,451


-


-


924,451

   Food and beverage

128,807


71,358


-


200,165


-


-


200,165

   Room

41,576


14,535


-


56,111


-


-


56,111

   Other

75,630


33,277


-


108,907


-


-


108,907

   Selling, general and administrative

268,049


126,942


-


394,991


-


-


394,991

   Maintenance and utilities

91,347


62,165


-


153,512


-


-


153,512

   Depreciation and amortization

129,906


65,437


-


195,343


-


-


195,343

   Corporate expense

48,962


-


-


48,962


-


-


48,962

   Preopening expenses

17,263


229


-


17,492


-


(10,858)


6,634

   Other operating charges, net

7,660


6,398


-


14,058


-


-


14,058

        Total costs and expenses

1,469,780


644,212


-


2,113,992


-


(10,858)


2,103,134















Operating income from Borgata

43,031




(43,031)


-


-


-


-















Operating income

179,215


86,062


(43,031)


222,246


10,858


-


233,104















Other expense (income)














   Interest income

(46)


-


-


(46)


-

-

-


(46)

   Interest expense, net of amounts capitalized

152,664


81,314


-


233,978


16,753


-


250,731

   Fair value adjustment of derivative instruments

265


-


-


265


-


-


265

    (Gain) loss on early retirements of debt, net

20


(6)


-


14


-


-


14

   Other income

(11,582)


-


-


(11,582)


-


-


(11,582)

   Gain on equity distribution



-


-


-


-


-


-

   Other non-operating expenses from Borgata, net

41,280


-


(41,280)


-


-


-


-

        Total other expense, net

182,601


81,308


(41,280)


222,629


16,753


-


239,382















Income (loss) before income taxes

(3,386)


4,754


(1,751)


(383)


(5,895)


-


(6,278)

Income taxes

(468)


(1,253)


-


(1,721)


-


-


(1,721)















Net income (loss)

(3,854)


3,501


(1,751)


(2,104)


(5,895)


-


(7,999)

Noncontrolling interest

-


-


(1,750)


(1,750)


5,895


-


4,145















Net income (loss) attributable to Boyd Gaming Corporation

$          (3,854)


$       3,501


$       (3,501)


$         (3,854)


$       -


$               -


$         (3,854)















Basic net income (loss) per common share

$            (0.04)












$           (0.04)















Weighted average basic shares outstanding

87,339












87,339















Diluted net income (loss) per common share

$            (0.04)












$           (0.04)















Weighted average diluted shares outstanding

87,339












87,339



The following table sets forth the impact of the consolidation of Borgata and LVE during the year ended December 31, 2010. For the purposes of this presentation, and consistent with GAAP, Borgata has been consolidated for the period from March 24, 2010 through December 31, 2010, and LVE has been consolidated for the period from January 1, 2010 through December 31, 2010. The wholly-owned column reflects the equity method of accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation. The previously reported results for the year ended December 31, 2010 have been revised to reflect the correction of an immaterial error related to the consolidation of LVE. These revisions had no effect on net income, as previously reported in this period.


Year Ended December 31, 2010


Boyd Gaming  Wholly-Owned


Borgata


Borgata Eliminations


Boyd/Borgata Subtotal


LVE (Variable Interest Entity)


LVE Eliminations


Boyd Gaming Consolidated


(in thousands, except per share data)

Revenues














   Gaming

$       1,306,414


$    506,073


$               -


$    1,812,487


$         -


$               -


$         1,812,487

   Food and beverage

231,054


116,534


-


347,588


-


-


347,588

   Room

120,000


91,045


-


211,046


-


-


211,046

   Other

89,851


33,752


-


123,603


-


-


123,603

Gross revenues

1,747,319


747,404


-


2,494,724


-


-


2,494,724

Less promotional allowances

186,561


167,264


-


353,825






353,825

        Net revenues

1,560,758


580,140


-


2,140,899


-


-


2,140,899















Costs and expenses














   Gaming

655,856


203,962


-


859,818


-


-


859,818

   Food and beverage

124,851


55,989


-


180,840


-


-


180,840

   Room

37,517


11,806


-


49,323


-


-


49,323

   Other

72,249


27,209


-


99,458


-


-


99,458

   Selling, general and administrative

274,234


94,983


-


369,217


-


-


369,217

   Maintenance and utilities

90,809


49,913


-


140,722


-


-


140,722

   Depreciation and amortization

146,389


52,886


-


199,275


-


-


199,275

   Corporate expense

48,861


-


-


48,861


-


-


48,861

   Preopening expenses

8,405


-


-


8,405


(946)


-


7,459

   Other operating charges, net

4,721


(8)


-


4,713


-


-


4,713

        Total costs and expenses

1,463,892


496,740


-


1,960,632


(946)


-


1,959,686















Operating income from Borgata

49,846


-


(41,700)


8,146


-


-


8,146















Operating income

146,712


83,400


(41,700)


188,413


946


-


189,359















Other expense (income)














   Interest income

(5)


-


-


(5)


-


-


(5)

   Interest expense, net of amounts capitalized

119,316


45,138


-


164,454


16,104


-


180,558

   Fair value adjustment of derivative instruments

480


-


-


480


-


-


480

   Gain on early retirements of debt, net

(2,758)


-


-


(2,758)


-


-


(2,758)

   Other income

(10,000)


-


-


(10,000)


-


-


(10,000)

   Gain on equity distribution

(2,535)


-


-


(2,535)


-


-


(2,535)

   Other non-operating expenses from Borgata, net

27,736


-


(24,603)


3,133


-


-


3,133

        Total other expense, net

132,234


45,138


(24,603)


152,769


16,104


-


168,873















Income (loss) before income taxes

14,478


38,263


(17,097)


35,644


(15,158)


-


20,486

Income taxes

(4,168)


(4,068)


-


(8,236)


-


-


(8,236)















Net income (loss)

10,310


34,195


(17,097)


27,408


(15,158)


-


12,250

Noncontrolling interest

-


-


(17,098)


(17,098)


15,158


-


(1,940)















Net income (loss) attributable to Boyd Gaming Corporation

$            10,310


$       34,195


$     (34,195)


$         10,310


$          -


$                -


$            10,310















Basic net income (loss) per common share

$                0.12












$                0.12















Weighted average basic shares outstanding

86,601












86,601















Diluted net income (loss) per common share

$                0.12












$                0.12















Weighted average diluted shares outstanding

86,831












86,831



The following supplemental pro forma information presents pro forma consolidated financial results as if the effective control of Borgata had occurred on January 1, 2010 (rather than March 24, 2010). The Boyd Gaming Corp column reflects the full consolidation of LVE and presents Borgata using the equity method of accounting. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what the actual results would have been had the consolidation of Borgata been completed as of the earlier dates, nor are they indicative of any future results. The previously reported results for the year ended December 31, 2010 have been revised to reflect the correction of an immaterial error related to the consolidation of LVE. These revisions had no effect on net income, as previously reported in this period.


Year Ended December 31, 2010








Boyd Gaming Corp


Boyd Gaming Corp


Borgata


Eliminations 


Pro Forma


(In thousands, except per share data)









Revenues








   Gaming

$              1,306,414


$     643,904


$                 -


$               1,950,318

   Food and beverage

231,054


147,751


-


378,805

   Room

120,000


115,199


-


235,199

   Other

89,851


42,931


-


132,782

Gross revenues

1,747,319


949,785


-


2,697,104

Less promotional allowances

186,561


211,356


-


397,917

        Net revenues

1,560,758


738,429


-


2,299,187









Costs and expenses








   Gaming

655,856


263,823


-


919,679

   Food and beverage

124,851


69,489


-


194,340

   Room

37,517


13,992


-


51,509

   Other

72,249


34,334


-


106,583

   Selling, general and administrative

274,234


123,963


-


398,197

   Maintenance and utilities

90,809


63,435


-


154,244

   Depreciation and amortization

146,389


69,640


-


216,029

   Corporate expense

48,861


-


-


48,861

   Preopening expenses

7,459


-


-


7,459

   Other operating charges, net

4,721


60


-


4,781

        Total costs and expenses

1,462,946


638,736


-


2,101,682









Operating income from Borgata

49,846


-


(49,846)


-

Operating income

147,658


99,693


(49,846)


197,505









Other expense (income)








   Interest income

(5)


-


-


(5)

   Interest expense, net of amounts capitalized

135,420


50,199


-


185,619

   Fair value adjustment of derivative instruments

480


-


-


480

   Gain on early retirements of debt, net

(2,758)


-


-


(2,758)

   Other income

(10,000)


-


-


(10,000)

   Gain on equity distribution

(2,535)


-


-


(2,535)

   Other non-operating expenses from Borgata, net

27,736


-


(27,736)


-

        Total other expense, net

148,338


50,199


(27,736)


170,801









Income (loss) before income taxes

(680)


49,494


(22,110)


26,704

Income taxes

(4,168)


(5,273)


-


(9,441)

Net income (loss)

(4,848)


44,221


(22,110)


17,263

Noncontrolling interest

15,158


-


(22,111)


(6,953)

Net income (loss) attributable to Boyd Gaming Corporation

$                   10,310


$      44,221


$       (44,221)


$                   10,310









Basic net income (loss) per common share

$                       0.12






$                       0.12









Weighted average basic shares outstanding

86,601






86,601









Diluted net income (loss) per common share

$                       0.12






$                       0.12









Weighted average diluted shares outstanding

86,831






86,831



The following tables reconcile Adjusted earnings (loss) and Adjusted earnings (loss) per share to Net income (loss) attributable to Boyd Gaming Corporation and Net income (loss) per share, respectively, as reported in accordance with GAAP. The weighted average shares outstanding represent the shares used in the diluted net income per share computations, except to the extent such common share equivalents are anti-dilutive. Also, during periods in which our adjusted earnings result in a loss, our basic shares outstanding are used in the computation of Adjusted loss per share, as any common share equivalents would be anti-dilutive.


Three Months Ended


Year Ended


December 31,


December 31,


2011


2010


2011


2010


(In thousands, except per share data)









Net income (loss) attributable to Boyd Gaming Corporation

$      (491)


$   (7,098)


$   (3,854)


$   10,310

   Adjustments related to Boyd Gaming:








        Preopening expenses, excluding impact of LVE

3,929


3,415


17,264


8,405

        Adjustments to property tax accruals, net

-


-


(7,464)


-

        Other operating charges, net

4,176


(203)


7,660


4,721

        Accelerated amortization of deferred loan fees

376


-


376


-

        Change in fair value of derivative instruments

-


480


265


480

        (Gain) loss on early retirements of debt, net

-


1,191


20


(2,758)

        Other income

(10,582)


-


(11,582)


(10,000)

        Gain on equity distribution

-


-


-


(2,535)

   Adjustments related to Borgata:








        Preopening expenses

137


-


228


-

        Other operating charges, net

790


(16)


6,575


(8)

        Accelerated amortization of deferred loan fees

1,029


-


1,029


2,012

        Valuation adjustments related to consolidation, net

67


-


389


-

        (Gain) loss on early retirements of debt

48


-


(6)


-

        Our share of Borgata's other operating charges, net

-


-


-


34

              Total adjustments

(30)


4,867


14,754


351









        Income tax effect for above adjustments

$   (1,316)


$   (1,721)


$   (5,648)


$        899

        Impact on noncontrolling interest, net

(1,035)


8


(4,108)


(1,002)

              Adjusted earnings (loss)

$   (2,872)


$   (3,944)


$     1,144


$   10,558









        Adjusted earnings (loss) per share (Adjusted EPS)

$     (0.03)


$     (0.05)


$       0.01


$       0.12









        Weighted average shares outstanding

87,732


86,877


87,594


86,831









Net income (loss) per share 

$     (0.01)


$     (0.08)


$     (0.04)


$       0.12

   Adjustments related to Boyd Gaming:








        Preopening expenses, excluding impact of LVE

$       0.05


$       0.04


$       0.20


$       0.10

        Adjustments to property tax accruals, net

-


-


(0.09)


-

        Other operating charges, net

0.06


-


0.09


0.05

        Accelerated amortization of deferred loan fees

-


-


-


-

        Change in fair value of derivative instruments

-


-


-


0.01

        (Gain) loss on early retirements of debt, net

-


0.01


-


(0.03)

        Other income

(0.12)


-


(0.13)


(0.12)

        Gain on equity distribution

-


-


-


(0.03)

   Adjustments related to Borgata:








        Preopening expenses

-


-


-


-

        Other operating charges, net

0.01


-


0.08


-

        Accelerated amortization of deferred loan fees

0.01


-


0.01


0.02

        Valuation adjustments related to consolidation, net

-


-


-


-

        (Gain) on early retirements of debt

-


-


-


-

        Our share of Borgata's other operating charges, net

-


-


-


-

              Total adjustments

0.01


0.05


0.16


0.00









        Income tax effect for above adjustments

(0.02)


(0.02)


(0.06)


0.01

        Impact on noncontrolling interest, net

(0.01)


-


(0.05)


(0.01)

              Adjusted earnings (loss)

$     (0.03)


$     (0.05)


$       0.01


$       0.12



The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Adjusted EBITDA to Net income (loss) attributable to Boyd Gaming Corporation on our condensed consolidated statements of operations for the three months and years ended December 31, 2011 and 2010. Note that the results from Dania Jai-Alai are classified as part of total other operating costs and expenses and are not included in Adjusted EBITDA. Additionally, the results for the three months ended December 31, 2011 and 2010 and for the year ended December 31, 2011, as reported in the table below, reflect the consolidation of Borgata and LVE for the entire period. The results for the year ended December 31, 2010 reflect the consolidation of Borgata for the period from March 24, 2010 through December 31, 2010. The previously reported results for the three months and year ended December 31, 2010 have been revised to reflect the correction of an immaterial error related to the consolidation of LVE. These revisions had no effect on net income, as previously reported in these periods.


Three Months Ended


Year Ended


December 31,


December 31,


2011

2010


2011

2010


(In thousands)







Net Revenues






   Las Vegas Locals

$   152,696

$   152,123


$       604,965

$       607,366

   Downtown Las Vegas

58,671

57,133


224,250

218,221

   Midwest and South (1)

217,567

172,546


771,355

728,767

   Atlantic City

176,410

168,786


730,274

580,140

         Reportable Segment Net revenues

605,344

550,588


2,330,844

2,134,494

   Other

1,329

1,352


5,394

6,405

         Net revenues

$   606,673

$   551,940


$    2,336,238

$    2,140,899







Adjusted EBITDA






   Las Vegas Locals

$     36,842

$     34,125


$       145,848

$       137,464

   Downtown Las Vegas

10,839

10,866


35,214

34,227

   Midwest and South (1)

39,090

30,423


167,101

143,699

        Wholly-owned property Adjusted EBITDA

86,771

75,414


348,163

315,390

        Corporate expense

(10,363)

(9,500)


(40,189)

(39,565)

        Wholly-owned Adjusted EBITDA

76,408

65,914


307,974

275,825

   Atlantic City

37,860

34,096


158,126

136,278

        Our share of Borgata's operating income before net






           amortization, preopening and other items

-

-


-

8,180

                Adjusted EBITDA

$   114,268

$   100,010


$       466,100

$       420,283







Other operating costs and expenses






   Deferred rent

1,034

1,067


4,136

4,271

   Depreciation and amortization

50,237

51,370


195,343

199,275

   Preopening expenses

1,342

2,469


6,634

7,459

   Share-based compensation expense

2,257

3,200


9,997

11,324

   Other operating charges, net

4,789

(219)


14,058

4,713

   Other

(237)

953


2,828

3,882

                Total other operating costs and expenses

59,422

58,840


232,996

230,924

Operating income

54,846

41,170


233,104

189,359

Other non-operating items






   Interest expense, net

66,657

71,119


250,685

180,553

   Fair value adjustment of derivative instruments

-

480


265

480

    (Gain) loss on early retirements of debt, net

48

1,191


14

(2,758)

   Other income

(10,582)

-


(11,582)

(10,000)

   Gain on equity distribution

-

-


-

(2,535)

   Our share of Borgata's non-operating expenses, net

-

-


-

3,133

                Total other non-operating costs and expenses, net

56,123

72,790


239,382

168,873

Income (loss) before income taxes

(1,277)

(31,620)


(6,278)

20,486

Income taxes

(1,749)

7,296


(1,721)

(8,236)

Net income (loss)

(3,026)

(24,324)


(7,999)

12,250

Noncontrolling interest

2,535

17,226


4,145

(1,940)

Net income (loss) attributable to Boyd Gaming Corporation                      

$         (491)

$      (7,098)


$         (3,854)

$         10,310



(1)

IP provided $44.6 million in net revenues and $8.4 million in Adjusted EBITDA, which is reported in the three months and year ended December 31, 2011.



The following supplemental pro forma information presents pro forma consolidated financial results as if the effective control of Borgata had occurred on January 1, 2010 (rather than March 24, 2010). The Boyd Gaming Corp column reflects the full consolidation of LVE and presents Borgata using the equity method of accounting. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what the actual results would have been had the consolidation of Borgata been completed as of the earlier dates, nor are they indicative of any future results. The previously reported results for the year ended December 31, 2010 have been revised to reflect the correction of an immaterial error related to the consolidation of LVE. These revisions had no effect on net income, as previously reported in this period.


Year Ended December 31, 2010


Boyd Gaming

Borgata


Boyd Gaming Corp


Corp

Stub

Adjustments

Pro Forma


(In thousands)

Net Revenues





   Las Vegas Locals

$                 607,366

$              -

$                 -

$                 607,366

   Downtown Las Vegas

218,221

-

-

218,221

   Midwest and South

728,767

-

-

728,767

   Atlantic City

580,140

158,289

-

738,429

           Reportable Segment Net revenues

2,134,494

158,289

-

2,292,783

   Other

6,405

-

-

6,405

           Net revenues

$              2,140,899

$   158,289

$                 -

$              2,299,188






Adjusted EBITDA





   Las Vegas Locals

$                 137,464

$              -

$                 -

$                 137,464

   Downtown Las Vegas

34,227

-

-

34,227

   Midwest and South

143,699

-

-

143,699

         Wholly-owned property Adjusted EBITDA

315,390

-

-

315,390

         Corporate expense

(39,565)

-

-

(39,565)

         Wholly-owned Adjusted EBITDA

275,825

-

-

275,825

   Atlantic City

136,278

33,115

-

169,393

        Our share of Borgata's operating income before net





           amortization, preopening and other items

8,180

-

(8,180)

-

              Adjusted EBITDA

$                 420,283

$     33,115

$         (8,180)

$                 445,218






Other operating costs and expenses





   Deferred rent

4,271

-

-

4,271

   Depreciation and amortization

199,275

16,753

-

216,028

   Preopening expenses

7,459

-

-

7,459

   Our share of Borgata's write-downs and other items, net

34

-

(34)

-

   Share-based compensation expense

11,324

-

-

11,324

   Write-downs and other items, net

4,713

68

-

4,781

   Other

3,848

-

-

3,848

              Total other operating costs and expenses

230,924

16,821

(34)

247,711

Operating income

189,359

16,294

(8,146)

197,507

Other non-operating items





   Interest expense, net

180,553

5,063

-

185,616

   Fair value adjustment of derivative instruments

480

-

-

480

    (Gain) loss on early retirements of debt, net

(2,758)

-

-

(2,758)

   Other income

(10,000)

-

-

(10,000)

   Gain on equity distribution

(2,535)

-

-

(2,535)

   Our share of Borgata's non-operating expenses, net

3,133

-

(3,133)

-

              Total other non-operating costs and expenses, net

168,873

5,063

(3,133)

170,803

Income (loss) before income taxes

20,486

11,231

(5,013)

26,704

Income taxes

(8,236)

(1,206)

-

(9,442)

Net income (loss)

12,250

10,025

(5,013)

17,262

Noncontrolling interest

(1,940)

-

(5,012)

(6,952)

Net income (loss) attributable to Boyd Gaming Corporation                  

$                   10,310

$     10,025

$       (10,025)

$                   10,310



The following table reconciles the presentation of corporate expense on our condensed consolidated statements of operations to the presentation on the accompanying table.


Three Months Ended


Year Ended


December 31,


December 31,


2011

2010


2011

2010


(In thousands)







Corporate expense as reported on our consolidated statements






   of operations

$   12,393

$   12,225


$   48,962

$   48,861

Corporate share-based compensation expense

(2,030)

(2,725)


(8,773)

(9,296)

Corporate expense as reported on the accompanying table

$   10,363

$     9,500


$   40,189

$   39,565









The following table reconciles the presentation of operating income from Borgata, as reported on our condensed consolidated statements of operations to the presentation on the accompanying table.


Three Months Ended


Year Ended


December 31,


December 31,


2011

2010


2011

2010


(In thousands)

Operating income from Borgata, as reported on our consolidated






   statements of operations

$            -

$            -


$            -

$     8,146

   Our share of write-downs and other items, net

-

-


-

34

Our share of Borgata's operating income before net amortization,






   preopening and other items as reported on the accompanying table

$            -

$            -


$            -

$     8,180



The following table presents Borgata's condensed consolidated statements of operations as reflected, or partially reflected as during the year ended December 31, 2010, in our condensed consolidated statements presented herein. These results present the impact of certain valuation adjustments made upon consolidation; however, these adjustments were not pushed down to Borgata and are therefore not reflected in Borgata's stand alone financial statements.


Three Months Ended


Year Ended


December 31,


December 31,


2011

2010


2011

2010


(In thousands)

Revenues






   Gaming

$   157,710

$   148,759


$   648,442

$   643,904

   Food and beverage

35,223

34,162


148,083

147,751

   Room

27,360

27,003


116,537

115,199

   Other

9,569

9,705


41,458

42,931

Gross revenues

229,862

219,629


954,520

949,785

   Less promotional allowances

53,452

50,845


224,246

211,356

       Net revenues

176,410

168,784


730,274

738,429







Costs and expenses






   Gaming

64,503

62,313


263,871

263,823

   Food and beverage

17,943

16,396


71,358

69,489

   Room

3,539

3,214


14,535

13,992

   Other

7,356

7,679


33,277

34,334

   Selling, general and administrative

30,537

30,510


126,942

123,963

   Maintenance and utilities

14,672

14,576


62,165

63,435

   Depreciation and amortization

14,860

16,572


65,437

69,640

   Preopening expense

137

-


229

-

   Write-downs and other items, net

639

(15)


6,398

60

       Total costs and expenses

154,186

151,245


644,212

638,736

Operating income

22,224

17,539


86,062

99,693







Other (income) expense






   Interest expense, net of amounts capitalized

21,708

21,791


81,314

50,199

   Gain on early retirements of debt

48

-


(6)

-

       Total other (income) expense

21,756

21,791


81,308

50,199

Income (loss) before state income taxes             

468

(4,251)


4,754

49,494

Income taxes

(252)

115


(1,253)

(5,273)

Net income (loss)

$          216

$      (4,136)


$       3,501

$     44,221



Footnotes and Safe Harbor Statements

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, Adjusted Earnings Per Share (Adjusted EPS) and certain line items which intentionally exclude the effects of the consolidation of Borgata and/or LVE and/or both. The following discussion defines these terms and why we believe they are useful measures of our performance.

In the accompanying release, and the Company's periodic reports filed with the Securities and Exchange Commission, Dania Jai-Alai's results are included as part of total other operating costs and expenses. In addition, as of the same date, we reclassified the reporting of corporate expense to exclude it from our subtotal for Reportable Segment Adjusted EBITDA and include it as part of total other operating costs and expenses. Furthermore, in the Company's periodic reports, corporate expense is presented to include its portion of share-based compensation expense.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in our industry which we believe, when considered with measures calculated in accordance with GAAP, gives investors a more complete understanding of 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 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 do not reflect such items when calculating EBITDA; however, we adjust for these items and refer to this measure as Adjusted EBITDA. 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 management in its 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 determining the value of acquisitions and dispositions. Adjusted EBITDA is also widely 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, write-downs and other charges, net, increase in value of derivative instruments, gain on early retirements of debt, other non-operating expenses, and our share of Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. In addition, Adjusted EBITDA includes corporate expense. A reconciliation of Adjusted EBITDA to net income (loss), based upon GAAP, is included in the financial schedules accompanying this release.

Adjusted Earnings and Adjusted EPS

Adjusted Earnings is net income (loss) before preopening expenses, adjustments to prior-year property taxes, increase in value of derivative instruments, write-downs and other charges, net, gain on early retirements of debt, acquisition-related expenses, expenses related to a property closure due to flooding, other non-operating expenses, valuation adjustments related to the consolidation of Borgata, and our share of 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. A reconciliation of net loss based upon GAAP to Adjusted Earnings and Adjusted EPS are included in the financial schedules accompanying this release.

Pro Forma Effect of Consolidation of Borgata and LVE

The effective change in control of Borgata was triggered at the end of the first quarter 2010, and its results were consolidated prospectively beginning late in the first quarter 2010; the consolidation of our variable interest in LVE was initially reported during the year ended December 31, 2010, but not in any specific quarter therein. For purposes of comparability throughout this release, certain results reported on a consolidated basis are presented by respective entity or on a Boyd wholly-owned historical basis. Additionally, for further purposes of comparability, certain year to date amounts have been presented on a pro forma basis, as if the consolidation of Borgata had occurred as of the beginning of the period presented (i.e. January 1, for the year ended December 31, 2010, as applicable).

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 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 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: maintaining an exceptional customer experience, keeping a tight rein on costs and delivering strong results; that the IP Casino Resort Spa gives the Company a leading presence in an important market, that it will be integrated into the Company's business, and that the Company believes that it will be able to drive significant efficiencies and generate additional revenue through cross-marketing opportunities; the Company's belief that Borgata would have achieved both revenue and EBITDA growth but for Hurricane Irene; and that the Company's B Connected Online and B Connected Mobile tools will continue to contribute to growth among its customers.  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; 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 17 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana.  Boyd Gaming press releases are available at www.prnewswire.com.  Additional news and information on Boyd Gaming can be found at www.boydgaming.com.

SOURCE Boyd Gaming Corporation



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