Boyd Gaming Reports Fourth-Quarter, Full-Year Results

Mar 01, 2011, 07:00 ET from Boyd Gaming Corporation

LAS VEGAS, March 1, 2011 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2010.  

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

For the fourth quarter 2010, we reported a net loss of $7.1 million, or $0.08 per share, compared to a net loss of $1.0 million, or $0.01 per share, in the same period last year.  

Adjusted Earnings(1) for the fourth quarter 2010 reflect a loss of $3.9 million, or $0.05 per share, compared to earnings of $0.2 million, or less than $0.01 per share, for the same period in 2009.  Certain pre-tax items included in Adjusted Earnings for the fourth quarter of 2010 resulted in a net increase in income of $4.9 million ($3.2 million, net of tax, or $0.03 per share).  By comparison, certain pre-tax items included in Adjusted Earnings for the fourth quarter 2009 resulted in a net increase in income of $2.0 million ($1.2 million, net of tax, or $0.01 per share).  Pre-tax items included in adjusted earnings are listed in a table at the end of this press release.

Net revenues were $551.9 million for the fourth quarter 2010, compared to $560.4 million(2) during the same quarter in 2009, a decrease of 1.5%.  Total Adjusted EBITDA was $100.0 million for the quarter, a decrease of 3.1% from $103.2 million(2) in the prior year.

Commenting on the quarter, Keith Smith, President and Chief Executive Officer of Boyd Gaming, said, "As expected, fourth-quarter comparisons were the best of the year, as business conditions and consumer confidence continued to improve.  As the economic recovery gains momentum, we anticipate we will see increases in both visitation and spend-per-visit, resulting in a return to consistent growth across our business this year."  

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

(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.



Full-Year 2010 Results

We reported net income for the year ended December 31, 2010, of $10.3 million, or $0.12 per share. By comparison, we reported net income of $4.2 million, or $0.05 per share for the full year ended December 31, 2009.  

Adjusted Earnings for the full year 2010 were $10.6 million, or $0.12 per share, compared to $31.6 million, or $0.37 per share for the full year 2009.

Net revenues as reported were $2.14 billion and $1.64 billion for the full year ended December 31, 2010 and December 31, 2009, respectively. Total Adjusted EBITDA was $420.3 million for 2010, as compared to $389.5 million in 2009.  The 2010 results reflect the consolidation of Borgata, effective March 24, 2010.  

Consolidating Borgata on a pro forma basis for the full year 2010 and 2009, net revenues were $2.30 billion and $2.42 billion, respectively, and Adjusted EBITDA on a comparable basis was $445.2 million and $527.7 million for those periods, respectively.

Key Operations Review

Las Vegas Locals

In our Las Vegas Locals segment, fourth-quarter 2010 net revenues were $152.1 million versus $155.0 million for the fourth quarter of 2009.  Fourth-quarter 2010 Adjusted EBITDA was $34.1 million, compared to $34.7 million reported in the same quarter of 2009.  These results marked the region's best year-over-year comparison in 12 quarters, as our operating margins remained consistent and local economic conditions began to stabilize.

Downtown

Our Downtown Las Vegas properties generated net revenues of $57.1 million for the fourth quarter 2010, compared to $58.0 million in the fourth quarter 2009. Adjusted EBITDA was $10.9 million, down from $12.2 million in the fourth quarter 2009.  While we continued to expand our leading market share Downtown, business results were impacted by our Hawaiian charter operation.

Midwest and South

In our Midwest and South region, we recorded $172.5 million in net revenues for the fourth quarter 2010, up from $170.3 million for the same period in 2009.  Adjusted EBITDA for the current period was $30.4 million, an increase of 3.4% from the $29.4 million reported in the fourth quarter of 2009.  This increase was the region's best year-over-year comparison in five quarters.  The gain was primarily driven by strong business volumes at our southern Louisiana properties.

Borgata

Borgata's net revenues for the fourth quarter 2010 were $168.8 million, versus $175.4 million in the fourth quarter 2009.  Adjusted EBITDA was $34.1 million, down 6.3% from $36.4 million in the comparable period in 2009. While we were encouraged by growth in slot win, non-gaming revenue and overall market share, these gains were offset by higher promotional expense, declines in table game hold and volume, and increased regional competition.

Key Financial Statistics

The following is additional information as of December 31, 2010:

  • Cash, excluding Borgata: $103.2 million
  • Cash at Borgata: $42.1 million
  • Debt, excluding Borgata: $2.39 billion (including $1.43 billion outstanding under Boyd Gaming's bank credit facility)
  • Debt at Borgata: $860.9 million (including $60.9 million outstanding under Borgata's bank credit facility)

Conference Call Information

We will host our fourth-quarter and full-year 2010 conference call today, March 1, at 12:00 p.m. Eastern.  The conference call number is 888.680.0878 and the passcode is 40848173.  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, www.streetevents.com, or:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=95703&eventID=3739887

Following the call's completion, a replay will be available by dialing 888.286.8010 today, March 1, beginning at 3:00 p.m. Eastern and continuing through Tuesday, March 8.  The passcode for the replay will be 65093144.  The replay will also be available on the Internet at www.boydgaming.com.

The results of Borgata for the period from October 1, 2010 through December 31, 2010 are included in our condensed consolidated statement of operations for the three months ended December 31, 2010, and its results for the period from March 24, 2010 through December 31, 2010 are included in our condensed consolidated statement of operations for the year ended December 31, 2010.










Three Months Ended


Year Ended


December 31,


December 31,


2010


2009


2010


2009


(In thousands, except per share data)

Revenues








   Gaming

$                     468,204


$                     320,377


$                  1,812,487


$                  1,372,091

   Food and beverage

92,422


55,950


347,588


229,374

   Room

56,799


29,054


211,046


122,305

   Other

32,008


24,253


123,603


100,396

Gross revenues

649,433


429,634


2,494,724


1,824,166

Less promotional allowances

97,493


44,686


353,825


183,180

       Net revenues

551,940


384,948


2,140,899


1,640,986









Costs and expenses








   Gaming

224,357


162,710


859,818


664,739

   Food and beverage

48,359


31,306


180,840


125,830

   Room

12,556


9,443


49,323


39,655

   Other

25,125


19,110


99,458


77,840

   Selling, general and administrative

98,576


67,445


369,217


284,937

   Maintenance and utilities

35,952


22,185


140,722


92,296

   Depreciation and amortization

51,370


39,103


199,275


164,427

   Corporate expense

12,225


12,540


48,861


47,617

   Preopening expenses

3,415


3,025


8,405


17,798

   Write-downs and other items, net

(219)


365


4,713


41,780

       Total costs and expenses

511,716


367,232


1,960,632


1,556,919









Operating income from Borgata

-


8,205


8,146


72,126

Operating income

40,224


25,921


188,413


156,193









Other expense (income)








   Interest income

(1)


(1)


(5)


(6)

   Interest expense, net of amounts capitalized

55,016


33,024


164,454


146,830

   Fair value adjustment of derivative instruments

480


-


480


-

   (Gain) loss on early retirements of debt, net

1,191


(3,223)


(2,758)


(15,284)

   Gain on equity distribution

-


-


(2,535)


-

   Other income

-


-


(10,000)


-

   Other non-operating expenses

-


3


-


33

   Other non-operating expenses from Borgata, net

-


3,073


3,133


19,303

       Total other expense, net

56,686


32,876


152,769


150,876









Income (loss) before income taxes

(16,462)


(6,955)


35,644


5,317

Income taxes

7,296


5,931


(8,236)


(1,076)

Net income (loss)

(9,166)


(1,024)


27,408


4,241

Noncontrolling interest

2,068


-


(17,098)


-

Net income (loss) attributable to Boyd Gaming Corporation

$                       (7,098)


$                       (1,024)


$                       10,310


$                         4,241









Basic net income (loss) per common share

$                         (0.08)


$                         (0.01)


$                           0.12


$                           0.05









Weighted average basic shares outstanding

86,877


86,276


86,601


86,429









Diluted net income (loss) per common share

$                         (0.08)


$                         (0.01)


$                           0.12


$                           0.05









Weighted average diluted shares outstanding

86,877


86,276


86,831


86,517



The following table sets forth the consolidation of Borgata from a basis comparable to the historical reporting by Boyd Gaming Corporation. For purposes of this presentation, and consistent with GAAP, Borgata has been consolidated for the entire period presented, or for the period from October 1, 2010 through December 31, 2010. The historical column reflects equity method 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, 2010


Boyd Gaming Corp






Boyd Gaming Corp


Historical


Borgata


Adjustments


Consolidated


(In thousands, except per share data)

Revenues








   Gaming

$                     319,445


$                      148,759


$                                 -


$                     468,204

   Food and beverage

58,260


34,162


-


92,422

   Room

29,795


27,004


-


56,799

   Other

22,303


9,705


-


32,008

Gross revenues

429,803


219,630


-


649,433

Less promotional allowances

46,649


50,844


-


97,493

       Net revenues

383,154


168,786


-


551,940









Costs and expenses








   Gaming

162,044


62,313


-


224,357

   Food and beverage

31,963


16,396


-


48,359

   Room

9,343


3,213


-


12,556

   Other

17,444


7,681


-


25,125

   Selling, general and administrative

68,066


30,510


-


98,576

   Maintenance and utilities

21,376


14,576


-


35,952

   Depreciation and amortization

34,797


16,573


-


51,370

   Corporate expense

12,225


-


-


12,225

   Preopening expenses

3,415


-


-


3,415

   Write-downs and other items, net

(203)


(16)


-


(219)

       Total costs and expenses

360,470


151,246


-


511,716









Operating income from Borgata

8,770


-


(8,770)


-

Operating income

31,454


17,540


(8,770)


40,224









Other expense (income)








   Interest income

(1)


-


-


(1)

   Interest expense, net of amounts capitalized

33,225


21,791


-


55,016

   Fair value adjustment of derivative instruments

480


-


-


480

   Gain on early retirements of debt

1,191


-


-


1,191

   Other income

-


-


-


-

   Other non-operating expenses from Borgata, net

10,838


-


(10,838)


-

       Total other expense, net

45,733


21,791


(10,838)


56,686









Income (loss) before income taxes

(14,279)


(4,251)


2,068


(16,462)

Income taxes

7,181


115


-


7,296

Net income (loss)

(7,098)


(4,136)


2,068


(9,166)

Noncontrolling interest

-


-


2,068


2,068

Net income (loss) attributable to Boyd Gaming Corporation

$                       (7,098)


$                        (4,136)


$                         4,136


$                       (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 supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on October 1, 2009 for the three months ended December 31, 2009, to provide a basis of comparability to the three months ended December 31, 2010. 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.










Three Months Ended December 31, 2009


Boyd Gaming Corp






Boyd Gaming Corp


Historical


Borgata


Adjustments


Pro Forma


(In thousands, except per share data)

Revenues








   Gaming

$                            320,377


$                                  153,387


$                                -


$                      473,764

   Food and beverage

55,950


32,297


-


88,247

   Room

29,054


26,087


-


55,141

   Other

24,253


10,124


-


34,377

Gross revenues

429,634


221,895


-


651,529

Less promotional allowances

44,686


46,487


-


91,173

       Net revenues

384,948


175,408


-


560,356









Costs and expenses








   Gaming

162,710


65,352


-


228,062

   Food and beverage

31,306


15,395


-


46,701

   Room

9,443


2,942


-


12,385

   Other

19,110


8,323


-


27,433

   Selling, general and administrative

67,445


31,914


-


99,359

   Maintenance and utilities

22,185


15,034


-


37,219

   Depreciation and amortization

39,103


19,380


324


58,807

   Corporate expense

12,540


-


-


12,540

   Preopening expenses

3,025


-


-


3,025

   Write-downs and other items, net

365


10


-


375

       Total costs and expenses

367,232


158,350


324


525,906









Operating income from Borgata

8,205


-


(8,205)


-

Operating income

25,921


17,058


(8,529)


34,450









Other expense (income)








   Interest income

(1)


-


-


(1)

   Interest expense, net of amounts capitalized

33,024


5,787


-


38,811

   Gain on early retirements of debt

(3,223)


-


-


(3,223)

   Other non-operating expenses

3


-


-


3

   Other non-operating expenses from Borgata, net

3,073


-


(3,073)


-

       Total other expense, net

32,876


5,787


(3,073)


35,590









Income (loss) before income taxes

(6,955)


11,271


(5,456)


(1,140)

Income taxes

5,931


(359)


-


5,572

Net income (loss)

(1,024)


10,912


(5,456)


4,432

Noncontrolling interest

-


-


(5,456)


(5,456)

Net income (loss) attributable to Boyd Gaming Corporation

$                              (1,024)


$                                    10,912


$                     (10,912)


$                        (1,024)









Basic net income (loss) per common share

$                                (0.01)






$                          (0.01)









Weighted average basic shares outstanding

86,276






86,276









Diluted net income (loss) per common share

$                                (0.01)






$                          (0.01)









Weighted average diluted shares outstanding

86,276






86,276



The following table sets forth the consolidation of Borgata from a basis comparable to the historical reporting by Boyd Gaming Corporation. For purposes of this presentation, and consistent with GAAP, Borgata has been consolidated for the period from March 24, 2010 through December 31, 2010. The historical column reflects the equity method 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, 2010


Boyd Gaming Corp


Borgata




Boyd Gaming Corp


Historical


Stub


Eliminations


Consolidated


(In thousands, except per share data)

Revenues








   Gaming

$                         1,306,414


$                            506,073


$                                        -


$                         1,812,487

   Food and beverage

231,054


116,534


-


347,588

   Room

120,000


91,046


-


211,046

   Other

89,851


33,752


-


123,603

Gross revenues

1,747,319


747,405


-


2,494,724

Less promotional allowances

186,561


167,264


-


353,825

       Net revenues

1,560,758


580,141


-


2,140,899









Costs and expenses








   Gaming

655,856


203,962


-


859,818

   Food and beverage

124,851


55,989


-


180,840

   Room

37,517


11,806


-


49,323

   Other

72,249


27,209


-


99,458

   Selling, general and administrative

274,234


94,983


-


369,217

   Maintenance and utilities

90,809


49,913


-


140,722

   Depreciation and amortization

146,389


52,886


-


199,275

   Corporate expense

48,861


-


-


48,861

   Preopening expenses

8,405


-


-


8,405

   Write-downs and other items, net

4,721


(8)


-


4,713

       Total costs and expenses

1,463,892


496,740


-


1,960,632









Operating income from Borgata

49,846


-


(41,700)


8,146

Operating income

146,712


83,401


(41,700)


188,413









Other expense (income)








   Interest income

(5)


-


-


(5)

   Interest expense, net of amounts capitalized

119,316


45,138


-


164,454

   Fair value adjustment of derivative instruments

480


-


-


480

   Gain on early retirements of debt

(2,758)


-


-


(2,758)

   Gain on equity distribution

(2,535)


-


-


(2,535)

   Other income

(10,000)


-


-


(10,000)

   Other non-operating expenses from Borgata, net

27,736


-


(24,603)


3,133

       Total other expense, net

132,234


45,138


(24,603)


152,769









Income before income taxes

14,478


38,263


(17,097)


35,644

Income taxes

(4,168)


(4,068)


-


(8,236)

Net income

10,310


34,195


(17,097)


27,408

Noncontrolling interest

-


-


(17,098)


(17,098)

Net income attributable to Boyd Gaming Corporation

$                              10,310


$                              34,195


$                             (34,195)


$                              10,310









Basic net income per common share

$                                  0.12






$                                  0.12









Weighted average basic shares outstanding

86,601






86,601









Diluted net income per common share

$                                  0.12






$                                  0.12









Weighted average diluted shares outstanding

86,831






86,831



The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2010 (as opposed to March 24, 2010) for the year ended December 31, 2010. 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.


































Year Ended December 31, 2010


Boyd Gaming Corp


Borgata




Boyd Gaming Corp


Historical


Historical


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

8,405


-


-


8,405

   Write-downs and other items, net

4,721


60


-


4,781

       Total costs and expenses

1,463,892


638,736


-


2,102,628









Operating income from Borgata

49,846


-


(49,846)


-

Operating income

146,712


99,693


(49,846)


196,559









Other expense (income)








   Interest income

(5)


-


-


(5)

   Interest expense, net of amounts capitalized

119,316


50,199


-


169,515

   Fair value adjustment of derivative instruments

480




-


480

   Gain on early retirements of debt

(2,758)


-


-


(2,758)

   Gain on controlling interest in Borgata

(2,535)




-


(2,535)

   Other income

(10,000)


-


-


(10,000)

   Other non-operating expenses from Borgata, net

27,736


-


(27,736)


-

       Total other expense, net

132,234


50,199


(27,736)


154,697









Income before income taxes

14,478


49,494


(22,110)


41,862

Income taxes

(4,168)


(5,273)


-


(9,441)

Net income

10,310


44,221


(22,110)


32,421

Noncontrolling interest

-


-


(22,111)


(22,111)

Net income attributable to Boyd Gaming Corporation

$                              10,310


$                              44,221


$                             (44,221)


$                                   10,310









Basic net income per common share

$                                  0.12






$                                       0.12









Weighted average basic shares outstanding

86,601






86,601









Diluted net income per common share

$                                  0.12






$                                       0.12









Weighted average diluted shares outstanding

86,831






86,831



The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2009 for the year ended December 31, 2009, to provide a basis of comparability to the year  ended December 31, 2010. 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.


















 Year Ended December 31, 2009


Boyd Gaming Corp






Boyd Gaming Corp


Historical


Borgata


Adjustments


Pro Forma


 (In thousands, except share and per share data)

Revenues








   Gaming

$                         1,372,091


$                       691,428


$                                -


$                   2,063,519

   Food and beverage

229,374


143,410


-


372,784

   Room

122,305


113,143


-


235,448

   Other

100,396


42,620


-


143,016

Gross revenues

1,824,166


990,601


-


2,814,767

Less promotional allowances

183,180


213,193


-


396,373

       Net revenues

1,640,986


777,408


-


2,418,394









Costs and expenses








   Gaming

664,739


280,620


-


945,359

   Food and beverage

125,830


64,217


-


190,047

   Room

39,655


11,940


-


51,595

   Other

77,840


34,908


-


112,748

   Selling, general and administrative

284,937


128,164


-


413,101

   Maintenance and utilities

92,296


59,900


-


152,196

   Depreciation and amortization

164,427


78,719


1,298


244,444

   Corporate expense

47,617


-


-


47,617

   Preopening expenses

17,798


699


-


18,497

   Write-downs and other items, net

41,780


(28,606)


-


13,174

       Total costs and expenses

1,556,919


630,561


1,298


2,188,778









Operating income from Borgata

72,126


-


(72,126)


-

Operating income

156,193


146,847


(73,424)


229,616









Other expense (income)








   Interest income

(6)


-


-


(6)

   Interest expense, net of amounts capitalized

146,830


27,668


-


174,498

   Gain on early retirements of debt

(15,284)


-


-


(15,284)

   Other non-operating expenses

33


-


-


33

    Other non-operating expenses from Borgata, net

19,303


-


(19,303)


-

       Total other expense, net

150,876


27,668


(19,303)


159,241









Income before income taxes

5,317


119,179


(54,121)


70,375

Income taxes

(1,076)


(10,938)


-


(12,014)

Net income

4,241


108,241


(54,121)


58,361

Noncontrolling interest

-


-


(54,120)


(54,120)

Net income attributable to Boyd Gaming Corporation

$                                4,241


$                       108,241


$                   (108,241)


$                          4,241









Basic net income per common share

$                                  0.05






$                            0.05









Weighted average basic shares outstanding

86,429






86,429









Diluted net income per common share

$                                  0.05






$                            0.05









Weighted average diluted shares outstanding

86,517






86,517



The following table reconciles the net income (loss) in accordance with GAAP to adjusted earnings (loss) and adjusted earnings (loss) per share.












Three Months Ended


Year Ended



December 31,


December 31,



2010


2009


2010


2009



(In thousands, except per share data)

Net income (loss) attributable to Boyd Gaming Corporation


$                 (7,098)


$                 (1,024)


$                 10,310


$                   4,241

  Adjustments related to Boyd Gaming:









     Preopening expenses


3,415


3,025


8,405


17,798

     Loss (gain) on early retirements of debt, net


1,191


(3,223)


(2,758)


(15,284)

     Other income


-


-


(10,000)


-

     Gain on equity distribution


-


-


(2,535)


-

     Change in fair value of derivative instruments


480


-


480


-

     Write-downs and other items, net


(203)


365


4,721


41,780

     Other non-operating expenses


-


3


-


33

     Accelerated interest expense for credit facility recommitment


-


1,813


-


1,813

     Prior period interest expense related to the finalization









     of our purchase price for Dania Jai-Alai


-


-


-


8,883










   Adjustments related to Borgata:









     Our share of Borgata's preopening expenses


-


-


-


349

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


-


5


34


(14,303)

     Accelerated amortization of deferred loan fees


-


-


2,012



     Write-downs and other items, net


(16)


-


(8)


-

           Impact on noncontrolling interest


8


-


(1,002)


-










     Income tax effect for above adjustments


(1,721)


(758)


899


(13,680)

        Adjusted earnings (loss)


$                 (3,944)


$                      206


$                 10,558


$                 31,630










     Adjusted earnings (loss) per share (Adjusted EPS)


$                   (0.05)


$                     0.00


$                     0.12


$                     0.37










     Weighted average shares outstanding


86,877


86,276


86,831


86,517










The following table illustrates the impact of the above adjustments on earnings per share.




















Three Months Ended


Year Ended



December 31,


December 31,



2010


2009


2010


2009










Net income (loss) attributable to Boyd Gaming Corporation


$                   (0.08)


$                   (0.01)


$                     0.12


$                     0.05

  Adjustments related to Boyd Gaming:









     Preopening expenses


0.04


0.04


0.10


0.22

     Loss (gain) on early retirements of debt


0.01


(0.04)


(0.03)


(0.17)

     Other income


-


-


(0.12)


-

     Gain on equity distribution


-


-


(0.03)


-

     Change in fair value of derivative instruments


-


-


0.01


-

     Write-downs and other items, net


-


-


0.05


0.48

     Other non-operating expenses


-


-


-


-

     Accelerated interest expense for credit facility recommitment


-


0.02


-


0.02

     Prior period interest expense related to the finalization









     of our purchase price for Dania Jai-Alai


-


-


-


0.10










  Adjustments related to Borgata:









     Our share of Borgata's preopening expenses


-


-


-


-

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


-


-


-


(0.17)

     Accelerated amortization of deferred loan fees


-


-


0.02



     Write-downs and other items, net


-


-


-


-

           Impact on noncontrolling interest


-


-


(0.01)


-










     Income tax effect for above adjustments


(0.02)


(0.01)


0.01


(0.16)

         Adjusted earnings (loss) per share


$                   (0.05)


$0.00


$                     0.12


$                     0.37



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 year ended December 31, 2010 and 2009. 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, 2010, as reported in the table below, reflect the consolidation of Borgata for the entire period and 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 three months and year ended December 31, 2009 are reported on a historical basis.










Three Months Ended


Year Ended


December 31,


December 31,


2010


2009


2010


2009


(In thousands)

Net Revenues








   Las Vegas Locals

$                    152,123


$                    154,966


$                    607,366


$                    641,941

   Downtown Las Vegas

57,133


58,049


218,221


229,149

   Midwest and South

172,546


170,251


728,767


762,336

   Atlantic City

168,786


-


580,140


-

           Reportable Segment Net revenues

550,588


383,266


2,134,494


1,633,426

   Other

1,352


1,682


6,405


7,560

           Net revenues

$                    551,940


$                    384,948


$                 2,140,899


$                 1,640,986









Adjusted EBITDA








   Las Vegas Locals

$                      34,125


$                      34,736


$                    137,464


$                    155,336

   Downtown Las Vegas

10,866


12,247


34,227


46,102

   Midwest and South

30,423


29,369


143,699


165,534

       Wholly-owned property Adjusted EBITDA

75,414


76,352


315,390


366,972

        Corporate expense

(9,500)


(9,581)


(39,565)


(36,934)

        Wholly-owned Adjusted EBITDA

65,914


66,771


275,825


330,038

   Atlantic City

34,096


-


136,278


-

       Our share of Borgata's operating income before net 








         amortization, preopening and other items

-


8,535


8,180


59,470

           Adjusted EBITDA

$                    100,010


$                      75,306


$                    420,283


$                    389,508









Other operating costs and expenses








   Deferred rent

1,067


1,088


4,271


4,354

   Depreciation and amortization

51,370


39,428


199,275


165,725

   Preopening expenses

3,415


3,025


8,405


17,798

   Our share of Borgata's preopening expenses

-


-


-


349

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

-


5


34


(14,303)

   Share-based compensation expense

3,200


4,186


11,324


13,970

   Write-downs and other items, net

(219)


365


4,713


41,780

   Other

953


1,288


3,848


3,642

           Total other operating costs and expenses

59,786


49,385


231,870


233,315

Operating income

40,224


25,921


188,413


156,193

Other non-operating items








   Interest expense, net

55,015


33,023


164,449


146,824

   Fair value adjustment of derivative instruments

480


-


480


-

   Gain on early retirements of debt, net

1,191


(3,223)


(2,758)


(15,284)

   Gain on equity distribution

-


-


(2,535)


-

   Other income

-


-


(10,000)


-

   Other non-operating expenses

-


3


-


33

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

-


3,073


3,133


19,303

             Total other non-operating costs and expenses, net

56,686


32,876


152,769


150,876

Income (loss) before income taxes

(16,462)


(6,955)


35,644


5,317

Income taxes

7,296


5,931


(8,236)


(1,076)

Net income (loss)

(9,166)


(1,024)


27,408


4,241

Noncontrolling interest

2,068


-


(17,098)


-

Net income loss) attributable to Boyd Gaming Corporation

$                       (7,098)


$                       (1,024)


$                      10,310


$                        4,241



The following table sets forth the consolidation of Borgata from a basis comparable to the historical reporting by Boyd Gaming Corporation. For purposes of this presentation, and consistent with GAAP, Borgata has been consolidated for the entire period presented, or for the period from October 1, 2010 through December 31, 2010. The historical column reflects equity method 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, 2010



Boyd Gaming Corp






Boyd Gaming Corp



Historical


Borgata


Adjustments


Consolidated



(In thousands)

Net Revenues









   Las Vegas Locals


$                       152,123


$                                   -


$                                   -


$                       152,123

   Downtown Las Vegas


57,133


-


-


57,133

   Midwest and South


172,546


-


-


172,546

   Atlantic City


-


168,786


-


168,786

           Reportable Segment Net revenues


381,802


168,786


-


550,588

   Other


1,352


-


-


1,352

           Net revenues


$                       383,154


$                       168,786


$                                   -


$                       551,940










Adjusted EBITDA









   Las Vegas Locals


$                         34,125


$                                   -


$                                   -


$                         34,125

   Downtown Las Vegas


10,866


-


-


10,866

   Midwest and South


30,423


-


-


30,423

       Wholly-owned property Adjusted EBITDA


75,414


-


-


75,414

        Corporate expense


(9,500)


-


-


(9,500)

        Wholly-owned Adjusted EBITDA


65,914


-


-


65,914

   Atlantic City


-


34,096


-


34,096

       Our share of Borgata's operating income before net









         amortization, preopening and other items


8,770


-


(8,770)


-

           Adjusted EBITDA


$                         74,684


$                         34,096


$                          (8,770)


$                       100,010










Other operating costs and expenses









   Deferred rent


1,067


-


-


1,067

   Depreciation and amortization


34,797


16,573


-


51,370

   Preopening expenses


3,415


-


-


3,415

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


-


-


-


-

   Share-based compensation expense


3,200


-


-


3,200

   Write-downs and other items, net


(203)


(16)


-


(219)

   Other


954


-


-


954

           Total other operating costs and expenses


43,230


16,557


-


59,787

Operating income


31,454


17,540


(8,770)


40,224










Other non-operating items









   Interest expense, net


33,224


21,791


-


55,015

   Fair value adjustment of derivative instruments


480


-


-


480

   Gain on early retirements of debt


1,191


-


-


1,191

   Gain on controlling interest in Borgata


-


-


-


-

   Other income


-


-


-


-

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


10,838


-


(10,838)


-

           Total other non-operating costs and expenses, net


45,733


21,791


(10,838)


56,686










Income (loss) before income taxes


(14,279)


(4,251)


2,068


(16,462)

Income taxes


7,181


115


-


7,296

Net income (loss)


(7,098)


(4,136)


2,068


(9,166)

Noncontrolling interest


-


-


2,068


2,068

Net income (loss) attributable to Boyd Gaming Corporation


$                          (7,098)


$                          (4,136)


$                           4,136


$                          (7,098)



The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on October 1, 2009 for the period through December 31, 2009. 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.












Three Months Ended December 31, 2009



Boyd Gaming Corp


Borgata




Boyd Gaming Corp



Historical


Stub


Adjustments


Pro Forma



(In thousands)

Net Revenues









   Las Vegas Locals


$                       154,966


$                                   -


$                                   -


$                       154,966

   Downtown Las Vegas


58,049


-


-


58,049

   Midwest and South


170,251


-


-


170,251

   Atlantic City


-


175,408


-


175,408

           Reportable Segment Net revenues


383,266


175,408


-


558,674

   Other


1,682


-


-


1,682

           Net revenues


$                       384,948


$                       175,408


$                                   -


$                       560,356










Adjusted EBITDA









   Las Vegas Locals


$                         34,736


$                                   -


$                                   -


$                         34,736

   Downtown Las Vegas


12,247


-


-


12,247

   Midwest and South


29,369


-


-


29,369

       Wholly-owned property Adjusted EBITDA


76,352


-


-


76,352

        Corporate expense


(9,581)


-


-


(9,581)

        Wholly-owned Adjusted EBITDA


66,771


-


-


66,771

   Atlantic City


-


36,448


-


36,448

       Our share of Borgata's operating income before net









         amortization, preopening and other items


8,535


-


(8,535)


-

           Adjusted EBITDA


$                         75,306


$                         36,448


$                          (8,535)


$                       103,219










Other operating costs and expenses









   Deferred rent


1,088


-


-


1,088

   Depreciation and amortization


39,428


19,380


-


58,808

   Preopening expenses


3,025


-


-


3,025

   Our share of Borgata's preopening expenses


-


-


-


-

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


5


-


(5)


-

   Share-based compensation expense


4,186


-


-


4,186

   Write-downs and other items, net


365


10


-


375

   Other


1,288


-


-


1,288

           Total other operating costs and expenses


49,385


19,390


(5)


68,770

Operating income


25,921


17,058


(8,530)


34,449










Other non-operating items









   Interest expense, net


33,023


5,787


-


38,810

   Gain on early retirements of debt


(3,223)


-


-


(3,223)

   Other non-operating expenses


3


-


-


3

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


3,073


-


(3,073)


-

           Total other non-operating costs and expenses, net


32,876


5,787


(3,073)


35,590










Income (loss) before income taxes


(6,955)


11,271


(5,457)


(1,141)

Income taxes


5,931


(359)


-


5,572

Net income (loss)


(1,024)


10,912


(5,457)


4,431

Noncontrolling interest


-


-


(5,455)


(5,455)

Net income (loss) attributable to Boyd Gaming Corporation


$                          (1,024)


$                         10,912


$                        (10,912)


$                          (1,024)



The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2010, for the year ended December 31, 2010. 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.












Year Ended December 31, 2010



Boyd Gaming Corp


Borgata




Boyd Gaming Corp



Consolidated


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


158,290


-


738,430

           Reportable Segment Net revenues


2,134,494


158,290


-


2,292,784

   Other


6,405


-


-


6,405

           Net revenues


$                    2,140,899


$                       158,290


$                                   -


$                    2,299,189










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


8,405


-


-


8,405

   Our share of Borgata's preopening expenses


-


-


-


-

   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


231,870


16,821


(34)


248,657

Operating income


188,413


16,294


(8,146)


196,561










Other non-operating items









   Interest expense, net


164,449


5,063


-


169,512

   Fair value adjustment of derivative instruments


480


-


-


480

   Gain on early retirements of debt


(2,758)


-


-


(2,758)

   Gain on equity distribution


(2,535)


-


-


(2,535)

   Other income


(10,000)


-


-


(10,000)

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


3,133


-


(3,133)


-

            Total other non-operating costs and expenses, net


152,769


5,063


(3,133)


154,699










Income before income taxes


35,644


11,231


(5,013)


41,862

Income taxes


(8,236)


(1,206)


-


(9,442)

Net income


27,408


10,025


(5,013)


32,420

Noncontrolling interest


(17,098)


-


(5,012)


(22,110)

Net income attributable to Boyd Gaming Corporation


$                         10,310


$                         10,025


$                        (10,025)


$                         10,310



The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2009, for the year ended December 31, 2009. 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.










Year Ended December 31, 2009


Boyd Gaming Corp






Boyd Gaming Corp


Historical


Borgata


Adjustments


Pro Forma


(In thousands)

Net Revenues








   Las Vegas Locals

$                       641,941


$                                       -


$                         -


$                        641,941

   Downtown Las Vegas

229,149


-


-


229,149

   Midwest and South

762,336


-


-


762,336

   Atlantic City

-


777,408


-


777,408

           Reportable Segment Net revenues

1,633,426


777,408


-


2,410,834

   Other

7,560


-


-


7,560

           Net revenues

$                    1,640,986


$                           777,408


$                         -


$                     2,418,394









Adjusted EBITDA








   Las Vegas Locals

$                       155,336


$                                       -


$                         -


$                        155,336

   Downtown Las Vegas

46,102


-


-


46,102

   Midwest and South

165,534


-


-


165,534

       Wholly-owned property Adjusted EBITDA

366,972


-


-


366,972

        Corporate expense

(36,934)


-


-


(36,934)

        Wholly-owned Adjusted EBITDA

330,038


-


-


330,038

   Atlantic City

-


197,659


-


197,659

       Our share of Borgata's operating income before net








         amortization, preopening and other items

59,470


-


(59,470)


-

           Adjusted EBITDA

$                       389,508


$                           197,659


$             (59,470)


$                        527,697









Other operating costs and expenses








   Deferred rent

4,354


-


-


4,354

   Depreciation and amortization

165,725


78,719


-


244,444

   Preopening expenses

17,798


699


-


18,497

   Our share of Borgata's preopening expenses

349


-


(349)


-

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

(14,303)


-


14,303


-

   Share-based compensation expense

13,970


-


-


13,970

   Write-downs and other items, net

41,780


(28,606)


-


13,174

   Other

3,642


-


-


3,642

           Total other operating costs and expenses

233,315


50,812


13,954


298,081

Operating income

156,193


146,847


(73,424)


229,616









Other non-operating items








   Interest expense, net

146,824


27,668


-


174,492

   Gain on early retirements of debt

(15,284)


-


-


(15,284)

   Other non-operating expenses

33


-


-


33

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

19,303


-


(19,303)


-

            Total other non-operating costs and expenses, net

150,876


27,668


(19,303)


159,241

Income before income taxes

5,317


119,179


(54,121)


70,375

Income taxes

(1,076)


(10,938)


-


(12,014)

Net income

4,241


108,241


(54,121)


58,361

Noncontrolling interest

-


-


(54,120)


(54,120)

Net income attributable to Boyd Gaming Corporation

$                           4,241


$                           108,241


$           (108,241)


$                            4,241



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,



2010


2009


2010


2009



(In thousands)

Corporate expense as reported on our









  consolidated statements of operations


$         12,225


$         12,540


$         48,861


$         47,617

Corporate share-based compensation expense


(2,725)


(2,959)


(9,296)


(10,683)

Corporate expense as reported on the accompanying table


$           9,500


$           9,581


$         39,565


$         36,934






























The following table reconciles the presentation of our share of Borgata’s operating income on our consolidated statements of operations to the presentation of our share of Borgata’s results on the accompanying table.












Three Months Ended


Year Ended



December 31,


December 31,



2010


2009


2010


2009



(In thousands)

Operating income from Borgata, as reported on our









    consolidated statements of operations


$                   -


$           8,205


$           8,146


$         72,126

Add back:









   Net amortization expense related to our









       investment in Borgata


-


325


-


1,298

   Our share of preopening expenses


-


-


-


349

   Our share of write-downs and other items, net


-


5


34


(14,303)

Our share of Borgata's operating income before net









   amortization, preopening and other items









   as reported on the accompanying table


$                   -


$           8,535


$           8,180


$         59,470





















The following table reconciles the presentation of depreciation and amortization on our condensed consolidated statements of operations to the presentation on the accompanying table.












Three Months Ended


Year Ended



December 31,


December 31,



2010


2009


2010


2009



(In thousands)

Depreciation and amortization as reported on our









  condensed consolidated statements of operations


$         51,370


$         39,103


$       199,275


$       164,427

Net amortization expense related to our investment in Borgata


-


325


-


1,298

Depreciation and amortization as reported on









  the accompanying table


$         51,370


$         39,428


$       199,275


$       165,725



The following table presents Borgata's condensed consolidated statements of operations.  










Three Months Ended


Year Ended


December 31,


December 31,


2010


2009


2010


2009


(In thousands)

Revenues








   Gaming

$                  148,759


$                  153,387


$                  643,904


$                  691,428

   Food and beverage

34,162


32,297


147,751


143,410

   Room

27,004


26,087


115,199


113,143

   Other

9,705


10,124


42,931


42,620

Gross revenues

219,630


221,895


949,785


990,601

Less promotional allowances

50,844


46,487


211,356


213,193

       Net revenues

168,786


175,408


738,429


777,408









Costs and expenses








   Gaming

62,313


65,352


263,823


280,620

   Food and beverage

16,396


15,395


69,489


64,217

   Room

3,213


2,942


13,992


11,940

   Other

7,681


8,323


34,334


34,908

   Selling, general and administrative

30,510


31,914


123,963


128,164

   Maintenance and utilities

14,576


15,034


63,435


59,900

   Depreciation and amortization

16,573


19,380


69,640


78,719

   Preopening expenses

-


-


-


699

   Write-downs and other items, net

(16)


10


60


(28,606)

       Total costs and expenses

151,246


158,350


638,736


630,561

Operating income

17,540


17,058


99,693


146,847









Other expense (income)








    Interest expense, net of amounts capitalized

21,791


5,787


50,199


27,668

Income (loss) before state income taxes

(4,251)


11,271


49,494


119,179

State income taxes

115


(359)


(5,273)


(10,938)

Net income (loss)

$                    (4,136)


$                    10,912


$                    44,221


$                  108,241



The following table reconciles operating income to Adjusted EBITDA for Borgata.
















Three Months Ended


Year Ended



December 31,


December 31,



2010


2009


2010


2009



(In thousands)

Operating income


$                    17,540


$                    17,058


$                    99,693


$                  146,847

   Depreciation and amortization


16,573


19,380


69,640


78,719

   Preopening expenses


-


-


-


699

   Write-downs and other items, net


(16)


10


60


(28,606)

Adjusted EBITDA


$                    34,096


$                    36,448


$                  169,393


$                  197,659



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 net revenues (excluding the 8 days of consolidation for Borgata). 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, increase in value of derivative instruments, write-downs and other charges, net, gain on early retirements of debt, prior period interest expense related to the finalization of our purchase price for Dania Jai-Alai, accelerated interest expense related to our bank credit facility amendment, certain one-time permanent tax readjustments, other non-operating expenses, 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

The effective change in control of Borgata was triggered at the end of the first quarter 2010. For purposes of comparability throughout this release, when such results are reported on a consolidated basis, the results of the prior year are retroactively recast to present such results on a consolidated basis, comparable to the current period. 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 September 30, 2010, or September 30, 2009, 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 the economic recovery, increases in both visitation and spend-per-visit, and returning to consistent year-over-year growth in the 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 our operating results; recovery of our properties in various markets; the state of the economy and its effect on consumer spending and our results of operations; the timing for the economic recovery, its effect on our business and the local economies where our properties are located; consumer reaction to fluctuations in the stock market and economic factors; the fact that our 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 we draw a significant percentage of our customers; competition; litigation; financial community and rating agency perceptions of the Company; 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, filed with the SEC, 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 16 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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