Boyd Gaming Reports Fourth-Quarter, Full-Year Results; Announces Agreement to Sell Echelon Site

04 Mar, 2013, 04:00 ET from Boyd Gaming Corporation

LAS VEGAS, March 4, 2013 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2012. 

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

The Company also announced that it has entered into a definitive agreement to sell the Echelon site on the Las Vegas Strip to the Genting Group for $350 million in cash.

The sale agreement includes both the 87-acre land parcel as well as all improvements to the site. Subject to the terms of the definitive purchase agreement and satisfaction of various conditions, the transaction is expected to close today.  A portion of the proceeds will be paid to a third party to fulfill the Company's obligations to LVE Energy Partners, LLC.  Following this payment and other closing costs, Boyd Gaming expects to receive approximately $157 million in net proceeds from the transaction.

Based on the Company's decision not to proceed with development of the Echelon site, Boyd Gaming recorded a one-time, non-cash pretax impairment charge of approximately $994 million, which is reflected in the Company's fourth-quarter 2012 results.

"Our highest priority is strengthening our balance sheet.  The sale of the Echelon site is another important step in the ongoing effort to improve our long-term financial position," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "While we remain committed to the Las Vegas market, we determined that developing a large-scale project on the Las Vegas Strip was not consistent with our current strategy."  

Fourth-Quarter Results

For the fourth quarter of 2012, Boyd Gaming reported net revenues of $625.8 million, an increase of 3.2% from $606.7 million during the same quarter in 2011.  Total Adjusted EBITDA(1)  was $100.9 million, compared to $114.3 million in the year-ago quarter.  Results reflect the addition of the operations of Peninsula Gaming, LLC, acquired by the Company on November 20, 2012.

Boyd Gaming's wholly-owned business reported fourth-quarter 2012 net revenues of $477.1 million, up 11.2% from the year-ago period.  Wholly-owned Adjusted EBITDA was $86.8 million, an increase of 13.7% from the fourth quarter of 2011.  Borgata, the Company's 50% joint venture, reported fourth-quarter 2012 net revenues of $147.6 million, compared to $176.4 million in the year-ago period, while Adjusted EBITDA was $14.0 million, down from the $37.9 million reported in the fourth quarter of 2011. 

Adjusted Earnings(1) for the fourth quarter 2012 were a loss of $27.7 million, or $0.31 per share, compared to a loss of $2.9 million, or $0.03 per share, for the same period in 2011.   The calculations of Adjusted Earnings and Adjusted Earnings per share are presented in a table at the end of this press release.

Significant items excluded from Adjusted Earnings in the fourth quarter 2012 include the $993.9 million impairment charge associated with the Echelon site; $39.4 million of impairment charges associated with the Company's excess land holdings in North Las Vegas and Pennsylvania; and a $17.5 million impairment charge associated with the Company's gaming license in Shreveport, La.

Including these items, for the fourth quarter 2012 the Company reported a net loss of $899.9 million, or $10.24 per share, compared to a net loss of $0.5 million, or $0.01 per share, in the same period last year. 

Commenting on the quarter, Keith Smith said, "We continued to make significant progress executing our Company's strategic plan.  The completion of the Peninsula acquisition further diversifies our operations, and will strengthen our balance sheet by greatly expanding our free cash flow. We were also encouraged to see sequential improvement throughout the quarter in our Las Vegas Locals business, as our initiatives in this market began to pay off.  We remain focused on improving our core business, successfully integrating the Peninsula assets, and finding new ways to drive revenue and EBITDA growth throughout the business."

(1)

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

Full-Year 2012 Results

For the year ended December 31, 2012, Boyd Gaming reported net revenues of $2.49 billion, an increase of 6.5% from the year ended December 31, 2011.  Total Adjusted EBITDA was $452.1 million during the period, compared to $466.1 million in the full year 2011. Full-year 2012 results include the operations of Peninsula Gaming, acquired by the Company on November 20, 2012; as well as a full year of contributions from the IP Casino Resort Spa in Biloxi, Mississippi, acquired on October 4, 2011. 

During the full-year 2012, the Company's wholly-owned operations posted net revenues of $1.80 billion, up 12.2% from the year-ago period.  Wholly-owned Adjusted EBITDA increased 8.8% to $335.1 million, compared to $308.0 million in 2011.  Borgata reported net revenues of $686.2 million during the year ended December 31, 2012, compared to $730.3 million in the full-year 2011, while property Adjusted EBITDA was $117.0 million in the current period, compared to $158.1 million in the year ended December 31, 2011.

Adjusted Earnings for the Company for the year ended December 31, 2012 reflect a loss of $24.7 million, or $0.28 per share, compared to earnings of $1.1 million, or $0.01 per share, during the full-year 2011.

Including the significant one-time charges recorded in the fourth quarter of 2012, the Company reported a net loss for the year ended December 31, 2012 of $908.9 million, or $10.37 per share.  By comparison, the Company reported a net loss of $3.9 million, or $0.04 per share, for the year ended December 31, 2011.

Key Operations Review

Las Vegas Locals

In the Las Vegas Locals segment, fourth-quarter 2012 net revenues were $148.7 million, compared to $152.7 million in the fourth quarter of 2011.  Fourth-quarter 2012 Adjusted EBITDA was $31.5 million, down from $36.8 million in the year-ago period.  Business levels strengthened at our Locals properties toward the end of the quarter.  This was primarily attributable to our introduction of an expanded offering of low-denomination slot product throughout the market, and related marketing programs.

Downtown

The Company's Downtown Las Vegas properties reported net revenues of $57.7 million for the fourth quarter 2012, down from $58.7 million in the year-ago period. Adjusted EBITDA was $9.9 million, compared to $10.8 million in the fourth quarter of 2011. Due to previously announced reductions in our weekly flight schedule, revenues declined at our Hawaiian charter service. EBITDA at our Downtown operations was flat year-over-year before several one-time charges.

Midwest and South

In the Midwest and South region, net revenues were $213.8 million, compared to $217.6 million in the fourth quarter of 2011.  Adjusted EBITDA was $34.5 million versus $39.1 million in the year-ago period.  Our regional operations were impacted by softness in visitation among casual players.

Peninsula

From November 20 to December 31, 2012, the five Peninsula Gaming properties contributed net revenues of $56.9 million, and Adjusted EBITDA of $21.2 million.  The segment reported substantial growth from the prior year when Peninsula was a standalone company, due to a full quarter of contributions from the Kansas Star Casino, which commenced operations on December 20, 2011.

Borgata

Borgata, the Company's 50% joint venture, reported fourth-quarter 2012 net revenues of $147.6 million, compared to $176.4 million in the year-ago period, while Adjusted EBITDA was $14.0 million, down from the $37.9 million reported in the fourth quarter of 2011.  Results were impacted by the effects of Superstorm Sandy, including the closure of the property for five days. 

Conference Call Information

Boyd Gaming will host its fourth-quarter 2012 conference call today, March 4, at 12:00 p.m. Eastern, on which the Company will provide guidance for the first quarter 2013.  The conference call number is (888) 317-6003, passcode 8459751.  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=92591

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, March 4, beginning at 2:00 p.m. Eastern and continuing through Tuesday, March 12, at 9 a.m. Eastern.  The conference number for the replay will be 10025828.  The replay will also be available on the Internet at www.boydgaming.com.

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 and Adjusted Earnings Per Share (Adjusted EPS). The following discussion defines these terms and why we believe they are useful measures of our performance.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with 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 refer to this measure as Adjusted EBITDA. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. We have historically reported this measure to our investors and believe that the continued inclusion of Adjusted EBITDA provides consistency in our financial reporting. We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by 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 the evaluation of potential 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, impairments of assets and other operating charges, net, 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, acquisition-related expenses, net gains on insurance settlements, impairments of assets, adjustments to property tax accruals, write-downs and other charges, net, accelerated amortization of deferred loan fees, changes in the fair value of derivative instruments, gain on early retirements of debt, other non-recurring adjustments, net, 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.

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: the anticipated transactions involving Echelon and pending sale of Dania, the timing for completion of such transactions and the anticipated benefits from such transactions, including strengthen the Company's balance sheet; the benefits of the Peninsula acquisition, including diversifies the Company's operations and significantly strengthening its balance sheet by expanding its free cash flow; and the continued improvement in the Company's Las Vegas Locals business.  Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: fluctuations in the Company's operating results; recovery of its properties in various markets; the state of the economy and its effect on consumer spending and the Company's results of operations; the timing for economic recovery, its effect on the Company's business and the local economies where the Company's properties are located; the satisfaction to the various conditions to the Company's pending Echelon and Dania transactions, and whether such conditions will be satisfied when expected, if at all; the availability of financing to the purchaser of Dania; the receipt of legislative, and other state, federal and local approvals for the Company's development projects in Florida and other jurisdictions; consumer reaction to fluctuations in the stock market and economic factors; the fact that the Company's expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

About Boyd Gaming

Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of  22 gaming entertainment properties located in Nevada, New Jersey, Illinois, Indiana, Iowa, Kansas, Louisiana and Mississippi.  Boyd Gaming press releases are available at www.prnewswire.com.  Additional news and information on Boyd Gaming can be found at www.boydgaming.com.

 

BOYD GAMING CORPORATION Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended

Year Ended

December 31,

December 31,

2012

2011

2012

2011

(In thousands, except per share data)

Revenues

  Gaming

$   542,441

$ 517,328

$ 2,110,233

$ 1,986,644

  Food and beverage

99,383

102,265

417,506

388,148

  Room

59,314

64,328

264,903

246,209

  Other

34,845

34,764

145,460

135,176

Gross revenues

735,983

718,685

2,938,102

2,756,177

  Less promotional allowances

110,141

112,011

450,676

419,939

    Net revenues

625,842

606,674

2,487,426

2,336,238

Costs and expenses

  Gaming

268,660

243,994

1,011,064

924,451

  Food and beverage

50,470

51,649

219,921

200,165

  Room

11,860

16,190

55,531

56,111

  Other

28,363

26,716

111,075

108,907

  Selling, general and administrative

119,607

106,119

452,926

394,991

  Maintenance and utilities

38,569

38,399

155,016

153,512

  Depreciation and amortization

63,207

50,237

214,332

195,343

  Corporate expense

14,522

12,393

50,719

48,962

  Preopening expenses

6,053

1,342

11,541

6,634

  Impairment of assets

1,053,526

1,741

1,053,526

6,741

  Other operating charges, net

9,049

3,048

6,650

7,317

    Total costs and expenses

1,663,886

551,828

3,342,301

2,103,134

Operating income

(1,038,044)

54,846

(854,875)

233,104

Other expense (income)

  Interest income

(485)

(6)

(1,169)

(46)

  Interest expense, net of amounts capitalized

87,273

66,663

290,004

250,731

  Other income (expense)

137

(10,534)

137

(11,303)

    Total other expense, net

86,925

56,123

288,972

239,382

Loss before income taxes

(1,124,969)

(1,277)

(1,143,847)

(6,278)

Income taxes

213,192

(1,749)

220,772

(1,721)

Net loss

(911,777)

(3,026)

(923,075)

(7,999)

Noncontrolling interest

11,879

2,535

14,210

4,145

Net loss attributable to Boyd Gaming Corporation

$  (899,898)

$      (491)

$  (908,865)

$      (3,854)

Basic net income (loss) per common share

$      (10.24)

$     (0.01)

$      (10.37)

$        (0.04)

Weighted average basic shares outstanding

87,846

87,732

87,652

87,263

Diluted net income (loss) per common share

$      (10.24)

$     (0.01)

$      (10.37)

$        (0.04)

Weighted average diluted shares outstanding

87,846

87,732

87,652

87,263

 

 

BOYD GAMING CORPORATION SUPPLEMENTAL INFORMATION Reconciliation of Adjusted EBITDA to Operating Income (Loss) (Unaudited)

Three Months Ended

Year Ended

December 31,

December 31,

2012

2011

2012

2011

(In thousands)

Net Revenues by Reportable Segment

  Las Vegas Locals

$   148,743

$ 152,696

$    591,306

$    604,965

  Downtown Las Vegas

57,684

58,671

224,178

224,250

  Midwest and South (1)

213,773

217,567

924,188

771,355

  Peninsula Gaming (2)

56,925

56,925

  Atlantic City

147,565

176,410

686,222

730,274

  Reportable Segment Net revenues

624,690

605,344

2,482,819

2,330,844

  Other

1,152

1,330

4,607

5,394

Net revenues

$   625,842

$ 606,674

$ 2,487,426

$ 2,336,238

Adjusted EBITDA by Reportable Segment

  Las Vegas Locals

$     31,450

$   36,842

$    128,742

$    145,848

  Downtown Las Vegas

9,935

10,839

32,832

35,214

  Midwest and South (1)

34,508

39,090

192,349

167,101

  Peninsula Gaming (2)

21,152

21,152

    Wholly-owned property Adjusted EBITDA

97,045

86,771

375,075

348,163

  Corporate expense (3)

(10,198)

(10,363)

(39,954)

(40,189)

    Wholly-owned Adjusted EBITDA

86,847

76,408

335,121

307,974

  Atlantic City

14,010

37,860

116,976

158,126

    Adjusted EBITDA

$   100,857

$ 114,268

$    452,097

$    466,100

Other operating costs and expenses

  Deferred rent

996

1,034

3,984

4,136

  Depreciation and amortization

63,207

50,237

214,332

195,343

  Preopening expenses

6,053

1,342

11,541

6,634

  Share-based compensation expense

4,687

2,257

12,247

9,997

  Impairment of assets

1,053,526

1,741

1,053,526

6,741

  Other operating charges, net

10,432

2,811

11,342

10,145

    Total other operating costs and expenses

1,138,901

59,422

1,306,972

232,996

Operating income (loss)

(1,038,044)

54,846

(854,875)

233,104

Other non-operating items

  Interest expense, net

86,788

66,657

288,835

250,685

  Other, net

137

(10,534)

137

(11,303)

    Total other non-operating items, net

86,925

56,123

288,972

239,382

Loss before income taxes

(1,124,969)

(1,277)

(1,143,847)

(6,278)

Income taxes

213,192

(1,749)

220,772

(1,721)

Net loss

(911,777)

(3,026)

(923,075)

(7,999)

Net loss attributable to noncontrolling interest

11,879

2,535

14,210

4,145

Net income (loss) attributable to Boyd Gaming Corporation

$  (899,898)

$      (491)

$  (908,865)

$      (3,854)

 

(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.

(2)

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

(3)

Reconciliation of corporate expense:

 

Three Months Ended

Year Ended

December 31,

December 31,

2012

2011

2012

2011

(In thousands)

Corporate expense as reported on Condensed Consolidated Statements of operations

$     14,522

$   12,393

$      50,719

$      48,962

Corporate share-based compensation expense

(4,324)

(2,030)

(10,765)

(8,773)

Corporate expense as reported on the above table

$     10,198

$   10,363

$      39,954

$      40,189

 

 

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,

2012

2011

2012

2011

(In thousands, except per share data)

Net income (loss) attributable to Boyd Gaming Corporation

$ (899,898)

$    (491)

$ (908,865)

$ (3,854)

   Pretax adjustments related to Boyd Gaming:

   Preopening expenses, excluding impact of LVE

8,776

3,929

22,196

17,264

Acquisition-related expenses

11,734

(2,244)

18,651

Gain on insurance settlement, net of flood expense

(1,007)

(144)

(7,098)

1,428

Impairment of assets

1,050,715

1,050,715

Miscellaneous non-recurring adjustments, net

113

(1,240)

699

   Adjustments to property tax accruals, net

(1,255)

(7,464)

Interest on acquisition financing

4,163

7,777

   Write-downs and other items, net

900

7,804

900

6,232

Accelerated amortization of deferred loan fees

376

376

   Change in fair value of derivative instruments

265

   (Gain) loss on early retirements of debt, net

20

   Other income

137

(10,582)

137

(11,582)

Pretax adjustments related to Borgata:

   Preopening expenses

137

240

228

   Impairments of assets

2,811

1,741

2,811

6,741

   Write-downs and other items, net

(2,692)

(951)

(6,503)

(166)

   Accelerated amortization of deferred loan fees

707

1,029

Valuation adjustments related to consolidation, net

(137)

389

295

389

   (Gain) loss on early retirements of debt

48

(6)

      Total adjustments

1,075,513

(30)

1,089,565

14,754

   Income tax effect for above adjustments

(203,283)

(1,316)

(207,020)

(5,648)

   Impact on noncontrolling interest, net

9

(1,035)

1,579

(4,108)

Adjusted earnings (loss)

$   (27,659)

$ (2,872)

$   (24,741)

$  1,144

Net income (loss) per share

$     (10.24)

$   (0.01)

$     (10.37)

$   (0.04)

Pretax adjustments related to Boyd Gaming:

   Preopening expenses, excluding impact of LVE

0.10

0.04

0.25

0.20

Acquisition-related expenses

0.13

(0.03)

0.21

Gain on insurance settlement, net of flood expenses

(0.01)

(0.08)

0.02

Impairment of assets

11.96

11.99

Miscellaneous non-recurring adjustments, net

0.01

   Adjustments to property tax accruals, net

(0.01)

(0.09)

Interest on acquisition financing

0.05

0.09

   Write-downs and other items, net

0.01

0.09

0.01

0.07

Accelerated amortization of deferred loan fees

   Change in fair value of derivative instruments

   (Gain) loss on early retirements of debt, net

   Other income

(0.11)

(0.13)

Pretax adjustments related to Borgata:

   Preopening expenses

Impairment of assets

0.03

0.02

0.03

0.08

   Write-downs and other items, net

(0.03)

(0.01)

(0.07)

   Accelerated amortization of deferred loan fees

0.01

0.01

   Valuation adjustments related to consolidation, net

   (Gain) on early retirements of debt

      Total adjustments

12.24

0.01

12.43

0.16

   Income tax effect for above adjustments

(2.31)

(0.02)

(2.36)

(0.06)

   Impact on noncontrolling interest, net

(0.01)

0.02

(0.05)

Adjusted earnings (loss) per share

$       (0.31)

$   (0.03)

$       (0.28)

$    0.01

Weighted average shares outstanding

87,846

87,732

87,652

87,594

 

BOYD GAMING CORPORATION SUPPLEMENTAL INFORMATION Condensed Consolidating Statement of Operations Three Months Ended December 31, 2012 (Unaudited)

Boyd Gaming Wholly Owned

Excluding Peninsula Gaming

Peninsula Gaming (1)

Eliminations

Total

Borgata (2)

LVE (Variable Interest Entity)

Eliminations

Boyd Gaming Consolidated

(in thousands, except per share data)

Revenues

  Gaming

$    350,157

$  53,442

$             —

$        403,599

$            138,842

$                —

$             —

$       542,441

  Food and beverage

67,354

3,988

71,342

28,041

99,383

  Room

35,857

35,857

23,457

59,314

  Other

27,370

1,687

(2,181)

26,876

7,969

2,724

(2,724)

34,845

Gross revenues

480,738

59,117

(2,181)

537,674

198,309

2,724

(2,724)

735,983

  Less promotional allowances

57,205

2,192

59,397

50,744

110,141

    Net revenues

423,533

56,925

(2,181)

478,277

147,565

2,724

(2,724)

625,842

Costs and expenses

  Gaming

184,386

24,565

208,951

59,709

268,660

  Food and beverage

32,564

2,855

35,419

15,051

50,470

  Room

9,313

9,313

2,547

11,860

  Other

20,906

3,271

(2,181)

21,996

6,367

28,363

  Selling, general and administrative

78,216

5,250

83,466

36,100

41

119,607

  Maintenance and utilities

22,776

2,015

24,791

13,778

38,569

  Depreciation and amortization

33,069

13,327

46,396

16,811

63,207

  Corporate expense

14,147

375

14,522

14,522

  Preopening expenses

8,238

538

8,776

1

(2,724)

6,053

  Impairment of assets

1,050,715

1,050,715

2,811

1,053,526

  Other operating charges, net

11,741

11,741

(2,692)

9,049

    Total costs and expenses

1,466,071

52,196

(2,181)

1,516,086

150,483

41

(2,724)

1,663,886

Operating income from Borgata

1,461

1,461

(1,461)

Operating income (loss)

(1,043,999)

4,729

(1,039,270)

(2,918)

2,683

1,461

(1,038,044)

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 income

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) before income taxes

(1,106,452)

(5,226)

(1,111,678)

(23,935)

(617)

11,261

(1,124,969)

Income taxes

211,778

211,780

1,412

213,192

Net income (loss)

(894,674)

(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

$   (894,674)

$   (5,226)

$             —

$       (899,898)

$             (22,523)

$                —

$       22,523

$      (899,898)

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

$          (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 Statement of Operations Three Months Ended December 31, 2011 (Unaudited)

Boyd Gaming Wholly-Owned

Borgata (1)

LVE (Variable Interest Entity)

Eliminations

Boyd Gaming Consolidated

(In thousands, except per share data)

Revenues

  Gaming

$    359,618

$  157,710

$        —

$             —

$       517,328

  Food and beverage

67,042

35,223

102,265

  Room

36,968

27,360

64,328

  Other

25,195

9,569

2,724

(2,724)

34,764

Gross revenues

488,823

229,862

2,724

(2,724)

718,685

  Less promotional allowances

58,559

53,452

112,011

    Net revenues

430,264

176,410

2,724

(2,724)

606,674

Costs and expenses

  Gaming

179,491

64,503

243,994

  Food and beverage

33,706

17,943

51,649

  Room

12,651

3,539

16,190

  Other

19,360

7,356

26,716

  Selling, general and administrative

75,582

30,537

106,119

  Maintenance and utilities

24,677

14,672

(950)

38,399

  Depreciation and amortization

35,377

14,860

50,237

  Corporate expense

12,393

12,393

  Preopening expenses

3,929

137

(2,724)

1,342

  Impairment of assets

690

1,051

1,741

  Other operating charges, net

3,460

(412)

3,048

    Total costs and expenses

401,316

154,186

(950)

(2,724)

551,828

Operating income from Borgata

11,112

(11,112)

Operating income

40,060

22,224

3,674

(11,112)

54,846

Other expense (income)

  Interest income

(6)

(6)

  Interest expense, net of amounts capitalized

38,638

21,708

6,317

66,663

  Other expense (income)

(10,582)

48

(10,534)

  Other non-operating expenses from Borgata, net

11,004

(11,004)

    Total other expense, net

39,054

21,756

6,317

(11,004)

56,123

Income (loss) before income taxes

1,006

468

(2,643)

(108)

(1,277)

Income taxes

(1,497)

(252)

(1,749)

Net income (loss)

(491)

216

(2,643)

(108)

(3,026)

Net income attributable to noncontrolling interest

2,643

(108)

2,535

Net income (loss) attributable to Boyd Gaming Corporation

$         (491)

$        216

$        —

$          (216)

$           (491)

Basic net loss per common share

$        (0.01)

$          (0.01)

Weighted average basic shares outstanding

87,732

87,732

Diluted net loss per common share

$        (0.01)

$          (0.01)

Weighted average diluted shares outstanding

87,732

87,732

 

(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 Statement of Operations Year Ended December 31, 2012 (Unaudited)

Boyd Gaming Wholly Owned

Excluding Peninsula Gaming

Peninsula Gaming (1)

Eliminations

Total

Borgata (2)

LVE (Variable Interest Entity)

Eliminations

Boyd Gaming Consolidated

(in thousands, except per share data)

Revenues

  Gaming

$       1,447,664

$  53,442

$             —

$     1,501,106

$            609,127

$                —

$             —

$    2,110,233

  Food and beverage

273,127

3,988

277,115

140,391

417,506

  Room

150,398

150,398

114,505

264,903

  Other

106,438

1,687

(2,181)

105,944

39,516

10,896

(10,896)

145,460

Gross revenues

1,977,627

59,117

(2,181)

2,034,563

903,539

10,896

(10,896)

2,938,102

  Less promotional allowances

231,166

2,192

233,359

217,317

450,676

  Net revenues

1,746,461

56,925

(2,181)

1,801,204

686,222

10,896

(10,896)

2,487,426

Costs and expenses

  Gaming

731,565

24,565

756,130

254,934

1,011,064

  Food and beverage

145,482

2,855

148,337

71,584

219,921

  Room

42,040

42,040

13,491

55,531

  Other

78,273

3,271

(2,181)

79,363

31,712

111,075

  Selling, general and administrative

308,522

5,250

313,772

139,100

54

452,926

  Maintenance and utilities

94,579

2,015

96,594

58,422

155,016

  Depreciation and amortization

136,742

13,327

150,069

64,263

214,332

  Corporate expense

50,344

375

50,719

50,719

  Preopening expenses

21,658

538

22,196

241

(10,896)

11,541

  Impairment of assets

1,050,715

1,050,715

2,811

1,053,526

  Other operating charges, net

13,153

13,153

(6,503)

6,650

    Total costs and expenses

2,673,073

52,196

(2,181)

2,723,088

630,055

54

(10,896)

3,342,301

Operating income from Borgata

(28,082)

(28,082)

28,082

Operating income (loss)

(898,530)

4,729

(893,802)

56,167

10,842

(28,082)

(854,875)

Other expense (income)

  Interest income

(922)

(247)

(1,169)

(1,169)

  Interest expense, net of amounts capitalized

184,714

10,065

194,779

82,902

12,323

290,004

  Other income

137

137

137

  Other non-operating expenses from Borgata, net

40,810

40,810

(40,810)

    Total other expense, net

224,602

9,955

234,557

82,902

12,323

(40,810)

288,972

Income (loss) before income taxes

(1,123,132)

(5,226)

(1,128,359)

(26,735)

(1,481)

12,728

(1,143,847)

Income taxes

219,493

219,493

1,279

220,772

Net income (loss)

(903,639)

(5,226)

(908,865)

(25,456)

(1,482)

12,728

(923,075)

Net (income) loss attributable to noncontrolling interest

1,482

12,728

14,210

Net income (loss) attributable to Boyd Gaming Corporation

$        (903,639)

$   (5,226)

$             —

$       (908,865)

$             (25,456)

$                —

$       25,456

$      (908,865)

Basic net loss per common share

$          (10.37)

$         (10.37)

Weighted average basic shares outstanding

87,652

87,652