Boyd Gaming Reports Fourth-Quarter, Full-Year Results Full-Year 2013 Highlights

-- Four Consecutive Quarters of EBITDA Growth in Las Vegas Locals

-- $525 Million in Debt Reduction; Annual Interest Expense Cut by More Than $60 Million

-- Market-Leading Online Gaming Presence Launched in New Jersey

LAS VEGAS, March 5, 2014 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2013.  

Boyd Gaming reported fourth-quarter 2013 net revenues of $681.5 million, up 9.1% from $624.7 million during the same quarter in 2012.  Total Adjusted EBITDA(1)  was $131.5 million, an increase of 30.4% from $100.9 million in the year-ago quarter.  Results reflect the addition of the operations of Peninsula Gaming, LLC, which was acquired by the Company on November 20, 2012.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "We made great progress executing on our strategic plan in 2013, despite some external headwinds that we faced over the course of the year.  We made significant refinements to our marketing and operations, launched a market-leading online gaming presence in New Jersey, and introduced our Penny Lane initiative across the country.  We successfully integrated Peninsula Gaming into our Company, generating nearly $100 million in free cash flow from these assets during our first full year of ownership.  Our Las Vegas Locals business returned to consistent growth, with four consecutive quarters of EBITDA gains.  And we significantly strengthened our balance sheet, repaying $525 million in debt and eliminating more than $60 million in interest expense."

Smith continued: "Looking ahead, we are taking the right steps to drive efficiencies, grow EBITDA and margins, and maximize long-term shareholder value.  We are well-positioned to capitalize on future growth in online gaming across the country.  We are beginning the roll-out of our B Connected program at the Peninsula properties, further enhancing our ability to cross-market our properties nationwide.  And we continue to pursue opportunities to further expand our pipeline of growth projects.  Boyd Gaming is moving in the right direction, and I am optimistic about our prospects in 2014 and beyond."   

Adjusted Earnings(1) for the fourth quarter 2013 reflect a loss of $26.4 million, or $0.24 per share, compared to a loss of $25.2 million, or $0.29 per share, for the same period in 2012.   The calculations of Adjusted Earnings and Adjusted Earnings per share are presented in a table at the end of this press release.

During the fourth quarter of 2013, Boyd Gaming reported an aggregate pretax loss on early extinguishments of debt of $24.7 million, primarily due to the redemption of all of the outstanding 2015 notes at Borgata using the net proceeds from Borgata's new $380 million term loan. Results for the prior-year period included impairment charges of $1.05 billion, including a $993.9 million impairment charge associated with the former Echelon site on the Las Vegas Strip, sold by the Company on March 4, 2013.  These charges are not included in Adjusted Earnings or Adjusted Earnings per share. 

On a GAAP basis, the Company reported a net loss of $47.3 million, or $0.43 per share, for the fourth quarter 2013, compared to a net loss of $899.9 million, or $10.24 per share, for the year-ago period. 

(1)

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

Key Operations Review

Las Vegas Locals
In the Las Vegas Locals segment, fourth-quarter 2013 net revenues were $148.6 million, even with net revenues in the prior-year period.  Fourth-quarter 2013 Adjusted EBITDA was $33.2 million, an increase of 5.6% from $31.5 million in the fourth quarter of 2012.  Lower and more effective marketing spend, and continued operating efficiencies, drove the fourth consecutive quarter of year-over-year EBITDA gains, as margins improved by more than 120 basis points. 

Downtown
In the Downtown Las Vegas segment, net revenues were $59.8 million in the fourth quarter of 2013, up 3.7% from $57.7 million in the year-ago period.  Adjusted EBITDA increased 31.8% to $13.1 million, compared to $9.9 million in the fourth quarter of 2012.  The Downtown properties experienced broad-based strength in operations.  Revenue growth at all three properties, as well as efficiencies throughout our operations, contributed to EBITDA gains. 

Midwest and South; Peninsula
In the Midwest and South segment, net revenues were $196.0 million, compared to $213.8 million in the fourth quarter of 2012.  Adjusted EBITDA was $39.7 million, including a one-time, favorable property tax adjustment of $9.3 million. By comparison, Adjusted EBITDA was $34.5 million in the year-ago period. 

During the fourth quarter 2013, the Peninsula segment reported net revenues of $119.9 million and Adjusted EBITDA of $41.0 million.  This compares to net revenues of $56.9 million and Adjusted EBITDA of $21.2 million that Boyd Gaming generated from the business from November 20 to December 31, 2012.

Revenues were impacted by continued softness in consumer spending in many markets, as well as severe winter weather in December.  However, a significant amount of the revenue shortfall's impact on EBITDA was successfully mitigated through ongoing cost-containment measures. 

Borgata
Borgata, the Company's 50% joint venture, reported fourth-quarter 2013 net revenues of $157.1 million, including $2.2 million from its online gaming operations.  This represented a 6.5% increase from the $147.6 million in revenues reported in the year-ago period. Adjusted EBITDA rose 17.0% to $16.4 million, compared to $14.0 million in the fourth quarter of 2012. 

Borgata's December 2013 results were adversely impacted by an unusually low hold percentage and severe winter weather. Prior-year results reflect the impact of Superstorm Sandy. 

Full-Year 2013 Results
For the full year ended December 31, 2013, Boyd Gaming reported net revenues of $2.89 billion, an increase of 16.6% from the $2.48 billion in net revenues reported in the year-ago period.  Total Adjusted EBITDA was $610.4 million, up 35.0% from $452.1 million in the prior year.

Adjusted Earnings for the year ended December 31, 2013, reflect a loss of $33.4 million, or $0.34 per share, compared to a loss of $20.1 million, or $0.23 per share, for the year ended December 31, 2012.

For the full year 2013, Boyd Gaming reported an aggregate pretax loss on early extinguishments and modifications of debt of $54.2 million.  The Company also reported impairment charges of $10.4 million in 2013, as compared to the $1.05 billion reported in the prior year.  Results for all periods reflect the Dania Jai-Alai business (sold in the second quarter of 2013) as discontinued operations. These amounts are excluded from Adjusted Earnings and Adjusted Earnings per share.

On a GAAP basis, including discontinued operations, Boyd Gaming reported a net loss of $80.3 million, or $0.83 per share, for the full year ended December 31, 2013.  By comparison, the Company reported a net loss of $908.9 million, or $10.37 per share, for the comparable prior-year period.

Key Balance Sheet Statistics
As of December 31, 2013, Boyd Gaming had cash on hand of $177.8 million, including $31.2 million related to Peninsula and $37.5 million related to Borgata.

Total debt was $4.43 billion, of which $1.15 billion was related to Peninsula and $813.4 million was related to Borgata. 

First-Quarter and Full-Year 2014 Guidance
For the first quarter of 2014, Boyd Gaming expects to generate total Adjusted EBITDA (including Peninsula and Borgata) of $140 million to $145 million.

For the full year 2014, Boyd Gaming currently projects total Adjusted EBITDA, including Peninsula and Borgata, of $600 million to $630 million.

Conference Call Information
Boyd Gaming will host its conference call to discuss fourth-quarter and full-year 2013 results today, March 5, at 5:00 p.m. Eastern.  The conference call number is (888) 317-6003, passcode 9793904.  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=98245

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, March 5, beginning at 7:00 p.m. Eastern and continuing through Thursday, March 13, at 9 a.m. Eastern.  The conference number for the replay will be 10041845.  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


Year Ended


December 31,


December 31,

(In thousands, except per share data)

2013


2012


2013


2012

Revenues








   Gaming

$

585,261


$

541,451


$

2,478,983


$

2,106,211

   Food and beverage

107,392


99,308


446,367


417,184

   Room

62,063


59,314


265,371


264,903

   Other

40,173


34,760


165,190


145,176

Gross revenues

794,889


734,833


3,355,911


2,933,474

   Less promotional allowances

113,352


110,134


461,473


450,646

     Net revenues

681,537


624,699


2,894,438


2,482,828









Costs and expenses








   Gaming

283,407


267,588


1,170,843


1,006,830

   Food and beverage

58,131


50,368


240,081


219,497

   Room

12,727


11,860


54,338


55,531

   Other

29,171


28,324


121,600


110,967

   Selling, general and administrative

116,361


118,575


490,226


449,286

   Maintenance and utilities

40,412


38,384


166,398


154,308

   Depreciation and amortization

69,055


63,177


278,413


214,236

   Corporate expense

20,661


14,522


63,249


50,719

   Preopening expenses

4,203


6,053


9,032


11,541

   Impairments of assets

4,101


1,053,526


10,383


1,053,526

   Asset transactions costs

3,311


11,525


5,576


18,442

   Other operating charges and credits, net

817


(2,476)


5,998


(11,792)

     Total costs and expenses

642,357


1,661,426


2,616,137


3,333,091

Operating income (loss)

39,180


(1,036,727)


278,301


(850,263)









Other expense (income)








   Interest income

(368)


(485)


(2,147)


(1,169)

   Interest expense, net of amounts capitalized

77,377


87,273


344,330


290,004

   Loss on early extinguishments of debt

24,689



54,202


   Other, net

(1,755)


137


(2,090)


137

     Total other expense, net

99,943


86,925


394,295


288,972









Loss from continuing operations before income taxes

(60,763)


(1,123,652)


(115,994)


(1,139,235)

   Income taxes

(6,828)


214,362


(3,350)


220,789

Loss from continuing operations, net of tax

(67,591)


(909,290)


(119,344)


(918,446)

Income (loss) from discontinued operations, net of tax


(2,487)


10,790


(4,629)

Net loss

(67,591)


(911,777)


(108,554)


(923,075)

   Net loss attributable to noncontrolling interest

20,251


11,879


28,290


14,210

Net loss attributable to Boyd Gaming Corporation

$

(47,340)


$

(899,898)


$

(80,264)


$

(908,865)








Basic net loss per common share







   Continuing operations

$

(0.43)


$

(10.22)


$

(0.94)


$

(10.32)

   Discontinued operations


(0.02)


0.11


(0.05)

     Basic net loss per common share

$

(0.43)


$

(10.24)


$

(0.83)


$

(10.37)

   Weighted average basic shares outstanding

109,471


87,846


97,243


87,652








Diluted net loss per common share







   Continuing operations

$

(0.43)


$

(10.22)


$

(0.94)


$

(10.32)

   Discontinued operations


(0.02)


0.11


(0.05)

     Diluted net loss per common share

$

(0.43)


$

(10.24)


$

(0.83)


$

(10.37)

   Weighted average diluted shares outstanding

109,471


87,846


97,243


87,652

         

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA to Operating Income (Loss)

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands)

2013


2012


2013


2012

Net Revenues by Reportable Segment








   Las Vegas Locals

$

148,639


$

148,743


$

591,447


$

591,306

   Downtown Las Vegas

59,831


57,684


222,715


224,178

   Midwest and South

196,025


213,782


864,247


924,197

   Peninsula (1)

119,914


56,925


520,329


56,925

   Borgata

157,128


147,565


695,700


686,222

     Net revenues

$

681,537


$

624,699


$

2,894,438


$

2,482,828









Adjusted EBITDA by Reportable Segment








   Las Vegas Locals

$

33,223


$

31,450


$

137,501


$

128,742

   Downtown Las Vegas

13,094


9,935


35,036


32,832

   Midwest and South

39,733


34,508


179,976


192,349

   Peninsula (1)

40,960


21,152


185,269


21,152

     Wholly owned property Adjusted EBITDA

127,010


97,045


537,782


375,075

   Corporate expense (2)

(11,919)


(10,198)


(46,594)


(39,954)

     Wholly owned Adjusted EBITDA

115,091


86,847


491,188


335,121

   Borgata

16,393


14,010


119,237


116,976

     Adjusted EBITDA

131,484


100,857


610,425


452,097









Other operating costs and expenses








   Deferred rent

959


996


3,831


3,984

   Depreciation and amortization

69,055


63,177


278,413


214,236

   Preopening expenses

4,203


6,053


9,032


11,541

   Share-based compensation expense

9,858


4,687


18,891


12,247

   Impairments of assets

4,101


1,053,526


10,383


1,053,526

   Asset transactions costs

3,311


11,525


5,576


18,442

   Other operating charges and credits, net

817


(2,380)


5,998


(11,616)

     Total other operating costs and expenses

92,304


1,137,584


332,124


1,302,360

Operating income (loss)

39,180


(1,036,727)


278,301


(850,263)

Other non-operating items








   Interest expense, net

77,009


86,788


342,183


288,835

   Loss on early extinguishments of debt

24,689



54,202


   Other, net

(1,755)


137


(2,090)


137

     Total other non-operating items, net

99,943


86,925


394,295


288,972

Loss from continuing operations before taxes

(60,763)


(1,123,652)


(115,994)


(1,139,235)

   Income taxes

(6,828)


214,362


(3,350)


220,789

Loss from continuing operations, net of tax

(67,591)


(909,290)


(119,344)


(918,446)

Income (loss) from discontinued operations, net of tax


(2,487)


10,790


(4,629)

Net loss

(67,591)


(911,777)


(108,554)


(923,075)

   Net loss attributable to noncontrolling interest

20,251


11,879


28,290


14,210

Net loss attributable to Boyd Gaming Corporation

$

(47,340)


$

(899,898)


$

(80,264)


$

(908,865)


_______________________________________________

(1)

Peninsula Gaming was acquired on November 20, 2012.

(2)

Reconciliation of corporate expense:

       


Three Months Ended


Year Ended


December 31,


December 31,

(In thousands)

2013


2012


2013


2012

Corporate expense as reported on Consolidated Statements of Operations

$

20,661


$

14,522


$

63,249


$

50,719

Corporate share-based compensation expense

(8,742)


(4,324)


(16,655)


(10,765)

Corporate expense as reported on the above table

$

11,919


$

10,198


$

46,594


$

39,954

       

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Net Loss to Adjusted Earnings (Loss) and Net Loss Per Share to Adjusted Earnings (Loss) Per Share

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands, except per share data)

2013


2012


2013


2012

Net loss attributable to Boyd Gaming Corporation

$

(47,340)


$

(899,898)


$

(80,264)


$

(908,865)

Less: (income) loss from discontinued operations, net of tax (1)


2,487


(10,790)


4,629

Adjusted net loss attributable to Boyd Gaming Corporation

(47,340)


(897,411)


(91,054)


(904,236)









Pretax adjustments related to Boyd Gaming:








   Preopening expenses, excluding impact of LVE

616


8,776


6,909


22,196

   Loss on early extinguishments of debt

1,368



28,346


   Impairments of assets

4,101


1,050,715


5,351


1,050,715

   Asset transactions costs

3,336


11,734


5,396


18,651

   Adjustments to property tax accruals, net

(9,325)



(9,325)


(1,255)

   Other operating charges and credits, net

825


6


2,861


(5,498)

   Interest on acquisition financing


4,163



7,776

   Other (income) loss

(1,509)


137


(2,325)


137









Pretax adjustments related to Borgata:








   Preopening expenses

3,587



4,056


240

   Loss on early extinguishments of debt

23,321



25,856


   Valuation adjustments related to consolidation, net

(290)


(137)


(973)


295

   Impairments of assets


2,811


5,032


2,811

   Asset transactions costs

(25)


(209)


180


(209)

   Other operating charges and credits, net

(8)


(2,483)


3,137


(6,294)

     Total adjustments

25,997


1,075,513


74,501


1,089,565









 Income tax effect for above adjustments

8,245


(203,283)


1,844


(207,020)

 Impact on noncontrolling interest, net

(13,294)


9


(18,649)


1,579

Adjusted loss

$

(26,392)


$

(25,172)


$

(33,358)


$

(20,112)









Net loss per share attributable to Boyd Gaming Corporation

$

(0.43)


$

(10.24)


$

(0.83)


$

(10.37)

Less: (income) loss from discontinued operations, net of tax (1)


0.02


(0.11)


0.05

Adjusted net loss per share attributable to Boyd Gaming Corporation

(0.43)


(10.22)


(0.94)


(10.32)

 Pretax adjustments related to Boyd Gaming:








   Preopening expenses, excluding impact of LVE

0.01


0.10


0.07


0.25

   Loss on early extinguishments of debt

0.01



0.29


   Impairments of assets

0.04


11.96


0.06


11.99

   Asset transactions costs

0.03


0.13


0.06


0.21

   Adjustments to property tax accruals, net

(0.09)



(0.10)


(0.01)

   Other operating charges and credits, net

0.01



0.03


(0.06)

   Interest on acquisition financing


0.05



0.09

   Other (income) loss

(0.02)



(0.02)










 Pretax adjustments related to Borgata:








   Preopening expenses

0.03



0.04


   Loss on early extinguishments of debt

0.21



0.27


   Valuation adjustments related to consolidation, net



(0.01)


   Impairments of assets


0.03


0.05


0.03

   Asset transactions costs




   Other operating charges and credits, net


(0.03)


0.03


(0.07)

     Total adjustments

0.23


12.24


0.77


12.43









 Income tax effect for above adjustments

0.08


(2.31)


0.02


(2.36)

 Impact on noncontrolling interest, net

(0.12)



(0.19)


0.02

Adjusted loss per share

$

(0.24)


$

(0.29)


$

(0.34)


$

(0.23)









Weighted average shares outstanding

109,471


87,846


97,243


87,652


_______________________________________________

(1)

Results for all periods 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 Income

Three Months Ended December 31, 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


$

330,687


$

110,882


$


$

441,569


$

143,692


$


$

585,261

   Food and beverage


65,629


9,682



75,311


32,081



107,392

   Room


36,080




36,080


25,983



62,063

   Other


31,035


4,521


(4,423)


31,133


9,040



40,173

Gross revenues


463,431


125,085


(4,423)


584,093


210,796



794,889

   Less promotional allowances


54,513


5,171



59,684


53,668



113,352

     Net revenues


408,918


119,914


(4,423)


524,409


157,128



681,537
















Costs and expenses















   Gaming


169,328


52,866



222,194


61,213



283,407

   Food and beverage


35,245


6,313



41,558


16,573



58,131

   Room


9,960




9,960


2,767



12,727

   Other


18,322


7,520


(4,423)


21,419


7,752



29,171

   Selling, general and administrative


65,418


13,389



78,807


37,554



116,361

   Maintenance and utilities


22,247


3,288



25,535


14,877



40,412

   Depreciation and amortization


33,081


21,676



54,757


14,298



69,055

   Corporate expense


20,088


573



20,661




20,661

   Preopening expenses


616




616


3,587



4,203

   Impairments of assets


901


3,200



4,101




4,101

   Asset transactions costs


1,568


1,768



3,336


(25)



3,311

   Other, net


711


114



825


(8)



817

     Total costs and expenses


377,485


110,707


(4,423)


483,769


158,588



642,357
















Operating loss from Borgata


(729)




(729)



729

















Operating income (loss)


30,704


9,207



39,911


(1,460)


729


39,180
















Other expense (income)















   Interest income


123


(491)



(368)




(368)

   Interest expense, net of amounts capitalized


38,254


19,687



57,941


19,436



77,377

   Loss on early extinguishments of debt



1,368



1,368


23,321



24,689

   Other, net


(1,523)


(232)



(1,755)




(1,755)

   Other non-operating expenses from Borgata, net


19,521




19,521



(19,521)


        Total other expense, net


56,375


20,332



76,707


42,757


(19,521)


99,943
















Income (loss) from continuing operations before taxes


(25,671)


(11,125)



(36,796)


(44,217)


20,250


(60,763)

   Income taxes


(10,306)


(236)



(10,542)


3,714



(6,828)

Income (loss) from continuing operations, net of tax


(35,977)


(11,361)



(47,338)


(40,503)


20,250


(67,591)

Income (loss) from discontinued operations, net of tax








Net income (loss)


(35,977)


(11,361)



(47,338)


(40,503)


20,250


(67,591)

   Net income (loss) attributable to noncontrolling interest







20,251


20,251

Net income (loss) attributable to Boyd Gaming Corporation


$

(35,977)


$

(11,361)


$


$

(47,338)


$

(40,503)


$

40,501


$

(47,340)
















       

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Income

Three Months Ended December 31, 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 loss per common share















   Continuing operations








$

(0.43)






$

(0.43)

   Discontinued operations













     Basic net loss per common share








$

(0.43)






$

(0.43)

   Weighted average basic shares outstanding








109,471






109,471
















Diluted net loss per common share















   Continuing operations








$

(0.43)






$

(0.43)

   Discontinued operations













     Diluted net loss per common share








$

(0.43)






$

(0.43)

   Weighted average diluted shares outstanding








109,471






109,471


_______________________________________________

(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 Income

Three Months Ended December 31, 2012

(Unaudited)




Boyd Gaming Wholly Owned









(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment (1)


Eliminations


Total


Borgata (2)


LVE (Variable Interest Entity)


Eliminations


Boyd Gaming

Consolidated

Revenues

















   Gaming


$

349,167


$

53,442


$


$

402,609


$

138,842


$


$


$

541,451

   Food and beverage


67,279


3,988



71,267


28,041




99,308

   Room


35,857




35,857


23,457




59,314

   Other


27,285


1,687


(2,181)


26,791


7,969


2,724


(2,724)


34,760

Gross revenues


479,588


59,117


(2,181)


536,524


198,309


2,724


(2,724)


734,833

   Less promotional allowances


57,198


2,192



59,390


50,744




110,134

     Net revenues


422,390


56,925


(2,181)


477,134


147,565


2,724


(2,724)


624,699


















Costs and expenses

















   Gaming


183,314


24,565



207,879


59,709




267,588

   Food and beverage


32,462


2,855



35,317


15,051




50,368

   Room


9,313




9,313


2,547




11,860

   Other


20,867


3,271


(2,181)


21,957


6,367




28,324

   Selling, general and administrative


77,184


5,250



82,434


36,100


41



118,575

   Maintenance and utilities


22,591


2,015



24,606


13,778




38,384

   Depreciation and amortization


33,039


13,327



46,366


16,811




63,177

   Corporate expense


14,147


375



14,522





14,522

   Preopening expenses


8,239


538



8,777




(2,724)


6,053

   Impairments of assets


1,050,715




1,050,715


2,811




1,053,526

   Asset transactions costs


11,734




11,734


(209)




11,525

   Other, net


6




6


(2,482)




(2,476)

     Total costs and expenses


1,463,611


52,196


(2,181)


1,513,626


150,483


41


(2,724)


1,661,426


















Operating loss from Borgata


(1,461)




(1,461)




1,461



















Operating income (loss)


(1,042,682)


4,729



(1,037,953)


(2,918)


2,683


1,461


(1,036,727)


















Other expense (income)

















   Interest income


(238)


(247)



(485)





(485)

Interest expense, net of amounts capitalized


52,891


10,065




62,956


21,017


3,300




87,273

   Other, net



137



137





137

   Other non-operating expenses from Borgata, net


9,800




9,800




(9,800)


        Total other expense, net


62,453


9,955



72,408


21,017


3,300


(9,800)


86,925


















Income (loss) from continuing operations before taxes


(1,105,135)


(5,226)



(1,110,361)


(23,935)


(617)


11,261


(1,123,652)

   Income taxes


212,950




212,950


1,412




214,362

Income (loss) from continuing operations, net of tax


(892,185)


(5,226)



(897,411)


(22,523)


(617)


11,261


(909,290)

Income (loss) from discontinued operations, net of tax


(2,487)




(2,487)





(2,487)

Net income (loss)


(894,672)


(5,226)



(899,898)


(22,523)


(617)


11,261


(911,777)

   Net income (loss) attributable to noncontrolling interest







617


11,262


11,879

Net income (loss) attributable to Boyd Gaming Corporation


$

(894,672)


$

(5,226)


$


$

(899,898)


$

(22,523)


$


$

22,523


$

(899,898)


















        

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Income

Three Months Ended December 31, 2012

(Unaudited)




Boyd Gaming Wholly Owned









(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment (1)


Eliminations


Total


Borgata (2)


LVE (Variable Interest Entity)


Eliminations


Boyd Gaming

Consolidated


















Basic net loss per common share

















   Continuing operations








$

(10.22)








$

(10.22)

   Discontinued operations








(0.02)








(0.02)

     Basic net loss per common share








$

(10.24)








$

(10.24)

   Weighted average basic shares outstanding








87,846








87,846


















Diluted net loss per common share

















   Continuing operations








$

(10.22)








$

(10.22)

   Discontinued operations








(0.02)








(0.02)

     Diluted net loss per common share








$

(10.24)








$

(10.24)

   Weighted average diluted shares outstanding








87,846








87,846


_______________________________________________

(1)

Results of Peninsula Gaming are included from the November 20, 2012, date of acquisition.

(2)

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 Income

Year Ended December 31, 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


$

1,378,458


$

484,791


$


$

1,863,249


$

615,734


$


$


$

2,478,983

   Food and beverage


266,868


39,207



306,075


140,292




446,367

   Room


150,258




150,258


115,113




265,371

   Other


124,463


17,934


(19,584)


122,813


42,377


1,933


(1,933)


165,190

Gross revenues


1,920,047


541,932


(19,584)


2,442,395


913,516


1,933


(1,933)


3,355,911

   Less promotional allowances


222,054


21,603



243,657


217,816




461,473

     Net revenues


1,697,993


520,329


(19,584)


2,198,738


695,700


1,933


(1,933)


2,894,438


















Costs and expenses

















   Gaming


694,581


226,905



921,486


249,357




1,170,843

   Food and beverage


142,579


26,454



169,033


71,048




240,081

   Room


41,404




41,404


12,934




54,338

   Other


74,218


32,324


(19,584)


86,958


34,642




121,600

   Selling, general and administrative


285,700


55,746



341,446


148,780




490,226

   Maintenance and utilities


93,483


13,212



106,695


59,703




166,398

   Depreciation and amortization


130,816


87,851



218,667


59,746




278,413

   Corporate expense


60,576


2,673



63,249





63,249

   Preopening expenses


6,818


91



6,909


4,056



(1,933)


9,032

   Impairments of assets


2,151


3,200



5,351


5,032




10,383

   Asset transactions costs


3,334


2,062



5,396


180




5,576

   Other, net


2,548


313



2,861


3,137




5,998

     Total costs and expenses


1,538,208


450,831


(19,584)


1,969,455


648,615



(1,933)


2,616,137


















Operating income from Borgata


23,542




23,542




(23,542)



















Operating income


183,327


69,498



252,825


47,085


1,933


(23,542)


278,301


















Other expense (income)

















   Interest income


(21)


(2,126)



(2,147)





(2,147)

Interest expense, net of amounts capitalized


177,823


82,795



260,618


81,335


2,377



344,330

   Loss on early extinguishments of debt


25,002


3,344



28,346


25,856




54,202

   Other, net


(2,252)


162



(2,090)





(2,090)

Other non-operating expenses from Borgata, net


51,388




51,388




(51,388)


Total other expense, net


251,940


84,175



336,115


107,191


2,377


(51,388)


394,295


















Income (loss) from continuing operations before taxes


(68,613)


(14,677)



(83,290)


(60,106)


(444)


27,846


(115,994)

    Income taxes


2,731


(10,496)



(7,765)


4,415




(3,350)

Income (loss) from continuing operations, net of tax


(65,882)


(25,173)



(91,055)


(55,691)


(444)


27,846


(119,344)

Income (loss) from discontinued operations, net of tax


10,790




10,790





10,790

Net income (loss)


(55,092)


(25,173)



(80,265)


(55,691)


(444)


27,846


(108,554)

    Net income (loss) attributable to noncontrolling interest







444


27,846


28,290

Net income (loss) attributable to Boyd Gaming Corporation


$

(55,092)


$

(25,173)


$


$

(80,265)


$

(55,691)


$


$

55,692


$

(80,264)


















       

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Income

Year Ended December 31, 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 loss per common share

















   Continuing operations








$

(0.94)








$

(0.94)

   Discontinued operations








0.11








0.11

       Basic net loss per common share








$

(0.83)








$

(0.83)

   Weighted average basic shares outstanding








97,243








97,243


















Diluted net loss per common share

















   Continuing operations








$

(0.94)








$

(0.94)

   Discontinued operations








0.11








0.11

      Diluted net loss per common share








$

(0.83)








$

(0.83)

   Weighted average diluted shares outstanding








97,243








97,243


_______________________________________________

(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.