Boyd Gaming Reports Third-Quarter Results
? Las Vegas Locals Posts EBITDA Gain for Third Consecutive Quarter ?
? Borgata Generates Strong Growth, Prepares for Launch of Online Gaming ?
LAS VEGAS, Oct. 31, 2013 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the third quarter ended September 30, 2013.
(Logo: http://photos.prnewswire.com/prnh/20030219/BOYDLOGO)
Boyd Gaming reported net revenues of $738.6 million, an increase of 20.6% from $612.4 million during the same quarter in 2012. Total Adjusted EBITDA(1) grew 49.9% to $155.3 million, compared to $103.6 million in the year-ago quarter. Results reflect the addition of the operations of Peninsula Gaming, LLC, which was acquired by the Company on November 20, 2012.
Boyd Gaming's wholly-owned operations reported third-quarter 2013 net revenues of $538.5 million, up 26.6% from $425.3 million in the third quarter of 2012. Wholly-owned Adjusted EBITDA was $108.7 million, an increase of 54.7% from $70.3 million in the third quarter of 2012. Borgata, the Company's 50% joint venture, reported third-quarter 2013 net revenues of $200.1 million, up 6.9% from $187.1 million in the year-ago period, while Adjusted EBITDA rose 39.7% to $46.6 million, compared to $33.4 million in the third quarter of 2012.
Adjusted Earnings(1) for the third quarter 2013 reflect a loss of $8.3 million, or $0.08 per share, compared to a loss of $8.8 million, or $0.10 per share, for the same period in 2012. The calculations of Adjusted Earnings and Adjusted Earnings per share are presented in a table at the end of this press release.
During the third quarter of 2013, Boyd Gaming replaced its credit facility with a new credit facility, redeemed its 7.125% Senior Subordinated Notes due 2016, and amended the Borgata credit facility. These actions resulted in an aggregate pretax loss on early extinguishments of debt of $27.1 million. The loss is not included in Adjusted Earnings or Adjusted Earnings per share.
On a GAAP basis, the Company reported a net loss of $37.3 million, or $0.37 per share, for the third quarter 2013, compared to a net loss of $15.8 million, or $0.18 per share, for the year-ago period. Results for the prior-year period reflect the Dania Jai-Alai business as discontinued operations. Dania Jai-Alai was sold during the second quarter of 2013.
"Our third-quarter performance fell below our expectations, as solid results in July and August were offset by significant weakness in September in many of our markets. However, October year-over-year results have shown improvement in most of our operations," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "Despite a challenging operating environment, we continued to make encouraging progress in many areas of our business. Our Las Vegas Locals business grew EBITDA for the third consecutive quarter. In New Jersey, Borgata generated strong results, and we are now finalizing preparations for real-money online gaming in that state. And we further strengthened our balance sheet, bringing our Company's total debt reduction to more than $500 million so far this year."
|
(1) See footnotes at the end of the release for additional information relative to non-GAAP financial measures. |
Year-To-Date Results
For the nine months ended September 30, 2013, Boyd Gaming reported net revenues of $2.21 billion, an increase of 19.1% from the $1.86 billion in net revenues reported in the year-ago period. Total Adjusted EBITDA was $478.9 million, up 36.4% from $351.2 million in the prior year.
During the nine months ended September 30, 2013, the Company's wholly-owned operations generated net revenues of $1.67 billion, up 26.9% from $1.32 billion in the year-ago period, while wholly-owned Adjusted EBITDA increased 51.5% to $376.1 million, compared to $248.3 million in the comparable period 2012. Borgata reported net revenues of $538.6 million and Adjusted EBITDA of $102.8 million during the nine-month period ended September 30, 2013. Both revenues and Adjusted EBITDA at Borgata were essentially flat compared to the nine months ended September 30, 2012.
Adjusted Earnings for the nine months ended September 30, 2013, reflect a loss of $7.0 million, or $0.07 per share, compared to income of $4.6 million, or $0.05 per share, during the nine months ended September 30, 2012.
The Company reported a pretax loss from early extinguishments of debt of $29.5 million for the nine months ended September 30, 2013, as a result of its refinancing activities. Discontinued operations for the first nine months of 2013 reflects income, net of tax, of $10.8 million, as compared to a loss of $2.1 million for the prior-year period. The current year amount includes the gain from the second-quarter 2013 sale of the Dania business. These amounts are excluded from Adjusted Earnings and Adjusted Earnings per share.
On a GAAP basis, and including the discontinued operations, Boyd Gaming reported a net loss of $32.9 million, or $0.35 per share. By comparison, the Company reported a net loss of $9.0 million, or $0.10 per share, for the nine months ended September 30, 2012.
Key Operations Review
Las Vegas Locals
In the Las Vegas Locals segment, third-quarter 2013 net revenues were $140.3 million, up 1.1% from $138.8 million in the third quarter of 2012. Third-quarter 2013 Adjusted EBITDA rose 8.6% to $26.4 million, compared to $24.3 million in the year-ago period, as EBITDA grew for the third consecutive quarter. Ongoing refinements to our business continued to drive revenue growth at our four Locals properties during the quarter. We also benefited from efficiencies throughout our operations, as EBITDA margins improved 130 basis points year-over-year.
Downtown
The Downtown Las Vegas region reported net revenues of $52.7 million for the third quarter of 2013, down from $53.5 million in the year-ago period. Adjusted EBITDA was $5.5 million, compared to $6.4 million in the third quarter of 2012. Weakness at the Fremont during September was primarily responsible for the EBITDA shortfall. Business at the property was impacted by construction disruption in the Downtown area, which resulted in reduced visitation.
Midwest and South; Peninsula
In the Midwest and South segment, net revenues were $214.8 million, compared to $233.0 million in the third quarter of 2012. Adjusted EBITDA was $41.9 million versus $48.7 million in the year-ago period.
During the third quarter 2013, the Peninsula segment contributed net revenues of $130.7 million, and Adjusted EBITDA of $45.3 million.
Solid performances at Diamond Jo Dubuque and Delta Downs were offset by declines at other properties in the region, particularly in September. Our operations were impacted by soft economic conditions late in the quarter, as well as increased supply in certain markets.
Borgata
Borgata, the Company's 50% joint venture, reported third-quarter 2013 net revenues of $200.1 million, up 6.9% from $187.1 million in the year-ago period, while Adjusted EBITDA increased 39.7% to $46.6 million, compared to $33.4 million in the third quarter of 2012. Borgata's market share rose 3 percentage points and EBITDA margins improved by 550 basis points, due largely to more normalized table hold as compared to the year-ago quarter. Despite increased regional supply, Borgata's first-in-class amenities, service and effective marketing programs are providing a significant competitive advantage.
On October 9, Borgata received the first Internet Gaming Permit granted by the New Jersey Division of Gaming Enforcement. Preparations are ongoing for the launch of our Borgata-branded online gaming site, and we remain on track to be among the first operators to offer real-money online gaming in New Jersey.
Conference Call Information
Boyd Gaming will host its third-quarter 2013 conference call today, October 31, at 12:00 p.m. Eastern, on which the Company will provide guidance for the fourth quarter 2013. The conference call number is (888) 317-6003, passcode 1655358. 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=96604
Following the call's completion, a replay will be available by dialing (877) 344-7529 today, October 31, beginning at 2:00 p.m. Eastern and continuing through Thursday, November 7, at 9 a.m. Eastern. The conference number for the replay will be 10036018. The replay will also be available on the Internet at www.boydgaming.com.
|
BOYD GAMING CORPORATION Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||
|
September 30, |
September 30, | ||||||||||
|
(In thousands, except per share data) |
2013 |
2012 |
2013 |
2012 | |||||||
|
Revenues |
|||||||||||
|
Gaming |
$ |
633,237 |
$ |
516,206 |
$ |
1,893,722 |
$ |
1,564,760 | |||
|
Food and beverage |
114,397 |
106,658 |
338,975 |
317,876 | |||||||
|
Room |
72,299 |
69,964 |
203,308 |
205,589 | |||||||
|
Other |
43,808 |
38,911 |
125,017 |
110,416 | |||||||
|
Gross revenues |
863,741 |
731,739 |
2,561,022 |
2,198,641 | |||||||
|
Less promotional allowances |
125,172 |
119,349 |
348,121 |
340,512 | |||||||
|
Net revenues |
738,569 |
612,390 |
2,212,901 |
1,858,129 | |||||||
|
Costs and expenses |
|||||||||||
|
Gaming |
302,373 |
252,300 |
887,436 |
739,242 | |||||||
|
Food and beverage |
57,655 |
54,920 |
181,950 |
169,129 | |||||||
|
Room |
12,556 |
13,605 |
41,611 |
43,671 | |||||||
|
Other |
33,056 |
29,947 |
92,429 |
82,643 | |||||||
|
Selling, general and administrative |
122,837 |
112,393 |
373,865 |
330,711 | |||||||
|
Maintenance and utilities |
45,735 |
37,929 |
125,986 |
115,924 | |||||||
|
Depreciation and amortization |
69,002 |
50,424 |
209,358 |
151,059 | |||||||
|
Corporate expense |
12,084 |
10,317 |
42,588 |
36,197 | |||||||
|
Preopening expenses |
1,675 |
1,618 |
4,829 |
5,488 | |||||||
|
Impairments of assets |
1,250 |
— |
6,282 |
— | |||||||
|
Asset transactions costs |
(1,362) |
645 |
2,265 |
6,917 | |||||||
|
Other operating charges and credits, net |
3,386 |
(1,095) |
5,181 |
(9,316) | |||||||
|
Total costs and expenses |
660,247 |
563,003 |
1,973,780 |
1,671,665 | |||||||
|
Operating income |
78,322 |
49,387 |
239,121 |
186,464 | |||||||
|
Other expense (income) |
|||||||||||
|
Interest income |
(553) |
(272) |
(1,779) |
(684) | |||||||
|
Interest expense, net of amounts capitalized |
83,145 |
74,115 |
266,953 |
202,731 | |||||||
|
Loss on early extinguishments of debt |
27,141 |
— |
29,513 |
— | |||||||
|
Other, net |
136 |
— |
(335) |
— | |||||||
|
Total other expense, net |
109,869 |
73,843 |
294,352 |
202,047 | |||||||
|
Loss from continuing operations before income taxes |
(31,547) |
(24,456) |
(55,231) |
(15,583) | |||||||
|
Income taxes |
(3,048) |
8,050 |
3,478 |
6,427 | |||||||
|
Loss from continuing operations, net of tax |
(34,595) |
(16,406) |
(51,753) |
(9,156) | |||||||
|
Income (loss) from discontinued operations, net of tax |
— |
(676) |
10,790 |
(2,142) | |||||||
|
Net income (loss) |
(34,595) |
(17,082) |
(40,963) |
(11,298) | |||||||
|
Net (income) loss attributable to noncontrolling interest |
(2,672) |
1,286 |
8,039 |
2,331 | |||||||
|
Net loss attributable to Boyd Gaming Corporation |
$ |
(37,267) |
$ |
(15,796) |
$ |
(32,924) |
$ |
(8,967) | |||
|
Basic net loss per common share: |
|||||||||||
|
Continuing operations |
$ |
(0.37) |
$ |
(0.17) |
$ |
(0.47) |
$ |
(0.08) | |||
|
Discontinued operations |
— |
(0.01) |
0.12 |
(0.02) | |||||||
|
Basic net loss per common share |
$ |
(0.37) |
$ |
(0.18) |
$ |
(0.35) |
$ |
(0.10) | |||
|
Weighted average basic shares outstanding |
101,555 |
87,643 |
93,122 |
87,587 | |||||||
|
Diluted net loss per common share: |
|||||||||||
|
Continuing operations |
$ |
(0.37) |
$ |
(0.17) |
$ |
(0.47) |
$ |
(0.08) | |||
|
Discontinued operations |
— |
(0.01) |
0.12 |
(0.02) | |||||||
|
Diluted net loss per common share |
$ |
(0.37) |
$ |
(0.18) |
$ |
(0.35) |
$ |
(0.10) | |||
|
Weighted average diluted shares outstanding |
101,555 |
87,643 |
93,122 |
87,587 | |||||||
|
BOYD GAMING CORPORATION SUPPLEMENTAL INFORMATION Reconciliation of Adjusted EBITDA to Operating Income (Loss) (Unaudited) | |||||||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||||||||
|
September 30, |
September 30, | ||||||||||||||||||||||||||
|
(In thousands) |
2013 |
2012 |
2013 |
2012 | |||||||||||||||||||||||
|
Net revenues by Reportable Segment |
|||||||||||||||||||||||||||
|
Las Vegas Locals |
$ |
140,291 |
$ |
138,787 |
$ |
442,808 |
$ |
442,563 | |||||||||||||||||||
|
Downtown Las Vegas |
52,674 |
53,547 |
162,884 |
166,494 | |||||||||||||||||||||||
|
Midwest and South |
214,831 |
232,965 |
668,221 |
710,415 | |||||||||||||||||||||||
|
Peninsula (1) |
130,722 |
— |
400,416 |
— | |||||||||||||||||||||||
|
Atlantic City |
200,051 |
187,091 |
538,572 |
538,657 | |||||||||||||||||||||||
|
Net revenues |
$ |
738,569 |
$ |
612,390 |
$ |
2,212,901 |
$ |
1,858,129 | |||||||||||||||||||
|
Adjusted EBITDA by Reportable Segment |
|||||||||||||||||||||||||||
|
Las Vegas Locals |
$ |
26,350 |
$ |
24,271 |
$ |
104,278 |
$ |
97,292 | |||||||||||||||||||
|
Downtown Las Vegas |
5,534 |
6,356 |
21,942 |
22,897 | |||||||||||||||||||||||
|
Midwest and South |
41,936 |
48,708 |
140,243 |
157,841 | |||||||||||||||||||||||
|
Peninsula (1) |
45,274 |
— |
144,309 |
— | |||||||||||||||||||||||
|
Wholly owned property Adjusted EBITDA |
119,094 |
79,335 |
410,772 |
278,030 | |||||||||||||||||||||||
|
Corporate expense (2) |
(10,409) |
(9,082) |
(34,675) |
(29,756) | |||||||||||||||||||||||
|
Wholly owned Adjusted EBITDA |
108,685 |
70,253 |
376,097 |
248,274 | |||||||||||||||||||||||
|
Atlantic City |
46,592 |
33,350 |
102,844 |
102,966 | |||||||||||||||||||||||
|
Adjusted EBITDA |
155,277 |
103,603 |
478,941 |
351,240 | |||||||||||||||||||||||
|
Other operating costs and expenses |
|||||||||||||||||||||||||||
|
Deferred rent |
956 |
996 |
2,872 |
2,988 | |||||||||||||||||||||||
|
Depreciation and amortization |
69,002 |
50,424 |
209,358 |
151,059 | |||||||||||||||||||||||
|
Preopening expenses |
1,675 |
1,618 |
4,829 |
5,488 | |||||||||||||||||||||||
|
Share-based compensation expense |
2,048 |
1,607 |
9,033 |
7,560 | |||||||||||||||||||||||
|
Impairments of assets |
1,250 |
— |
6,282 |
— | |||||||||||||||||||||||
|
Asset transactions costs |
(1,362) |
645 |
2,265 |
6,917 | |||||||||||||||||||||||
|
Other operating charges and credits, net |
3,386 |
(1,074) |
5,181 |
(9,236) | |||||||||||||||||||||||
|
Total other operating costs and expenses |
76,955 |
54,216 |
239,820 |
164,776 | |||||||||||||||||||||||
|
Operating income |
78,322 |
49,387 |
239,121 |
186,464 | |||||||||||||||||||||||
|
Other non-operating items |
|||||||||||||||||||||||||||
|
Interest expense, net |
82,592 |
73,843 |
265,174 |
202,047 | |||||||||||||||||||||||
|
Loss on early extinguishments of debt |
27,141 |
— |
29,513 |
— | |||||||||||||||||||||||
|
Other, net |
136 |
— |
(335) |
— | |||||||||||||||||||||||
|
Total other non-operating items, net |
109,869 |
73,843 |
294,352 |
202,047 | |||||||||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
(31,547) |
(24,456) |
(55,231) |
(15,583) | |||||||||||||||||||||||
|
Income taxes |
(3,048) |
8,050 |
3,478 |
6,427 | |||||||||||||||||||||||
|
Income (loss) from continuing operations, net of tax |
(34,595) |
(16,406) |
(51,753) |
(9,156) | |||||||||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
— |
(676) |
10,790 |
(2,142) | |||||||||||||||||||||||
|
Net income (loss) |
(34,595) |
(17,082) |
(40,963) |
(11,298) | |||||||||||||||||||||||
|
Net (income) loss attributable to noncontrolling interest |
(2,672) |
1,286 |
8,039 |
2,331 | |||||||||||||||||||||||
|
Net income (loss) attributable to Boyd Gaming Corporation |
$ |
(37,267) |
$ |
(15,796) |
$ |
(32,924) |
$ |
(8,967) | |||||||||||||||||||
|
________________________________________________ | |||||||||||||||||||||||||||
|
(1) Peninsula Gaming was acquired on November 20, 2012. | |||||||||||||||||||||||||||
|
(2) Reconciliation of corporate expense: |
|
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||||||||||
|
September 30, |
September 30, | ||||||||||||||||||||||||||||
|
(In thousands) |
2013 |
2012 |
2013 |
2012 | |||||||||||||||||||||||||
|
Corporate expense as reported on Condensed Consolidated Statements of Operations |
$ |
12,084 |
$ |
10,317 |
$ |
42,588 |
$ |
36,197 | |||||||||||||||||||||
|
Corporate share-based compensation expense |
(1,675) |
(1,235) |
(7,913) |
(6,441) | |||||||||||||||||||||||||
|
Corporate expense as reported on the above table |
$ |
10,409 |
$ |
9,082 |
$ |
34,675 |
$ |
29,756 | |||||||||||||||||||||
|
BOYD GAMING CORPORATION SUPPLEMENTAL INFORMATION Reconciliations of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) Per Share to Adjusted Earnings (Loss) Per Share (Unaudited) | |||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||
|
September 30, |
September 30, | ||||||||||||||
|
(In thousands, except per share data) |
2013 |
2012 |
2013 |
2012 | |||||||||||
|
Net income (loss) attributable to Boyd Gaming Corporation |
$ |
(37,267) |
$ |
(15,796) |
$ |
(32,924) |
$ |
(8,967) | |||||||
|
Less: (income) loss from discontinued operations, net of tax (1) |
— |
676 |
(10,790) |
2,142 | |||||||||||
|
Adjusted net income (loss) attributable to Boyd Gaming Corporation |
(37,267) |
(15,120) |
(43,714) |
(6,825) | |||||||||||
|
Pretax adjustments related to Boyd Gaming: |
|||||||||||||||
|
Preopening expenses, excluding impact of LVE |
1,259 |
4,342 |
6,295 |
13,420 | |||||||||||
|
Loss on early extinguishments of debt |
24,605 |
— |
26,977 |
— | |||||||||||
|
Impairments of assets |
1,250 |
— |
1,250 |
— | |||||||||||
|
Asset transactions costs |
(1,162) |
645 |
2,058 |
6,917 | |||||||||||
|
Adjustments to property tax accruals, net |
— |
(658) |
— |
(1,255) | |||||||||||
|
Other operating charges and credits, net |
240 |
528 |
2,035 |
(5,505) | |||||||||||
|
Interest on acquisition financing |
— |
3,614 |
— |
3,614 | |||||||||||
|
Other non-operating expense (income) |
— |
— |
(817) |
— | |||||||||||
|
Pretax adjustments related to Borgata: |
|||||||||||||||
|
Preopening expenses |
416 |
— |
470 |
240 | |||||||||||
|
Loss on early extinguishments of debt |
2,536 |
— |
2,536 |
— | |||||||||||
|
Valuation adjustments related to consolidation, net |
(181) |
286 |
(683) |
432 | |||||||||||
|
Impairments of assets |
— |
— |
5,032 |
— | |||||||||||
|
Asset transactions costs |
(201) |
— |
205 |
— | |||||||||||
|
Other expense (income) |
3,146 |
(1,623) |
3,146 |
(3,811) | |||||||||||
|
Total adjustments |
31,908 |
7,134 |
48,504 |
14,052 | |||||||||||
|
Income tax effect for above adjustments |
(33) |
(1,454) |
(6,401) |
(4,170) | |||||||||||
|
Impact on noncontrolling interest, net |
(2,859) |
669 |
(5,355) |
1,570 | |||||||||||
|
Adjusted earnings (loss) |
$ |
(8,251) |
$ |
(8,771) |
$ |
(6,966) |
$ |
4,627 | |||||||
|
Net income (loss) per share attributable to Boyd Gaming Corporation |
$ |
(0.37) |
$ |
(0.18) |
$ |
(0.35) |
$ |
(0.10) | |||||||
|
Less: (income) loss from discontinued operations, net of tax (1) |
— |
0.01 |
(0.12) |
0.02 | |||||||||||
|
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation |
(0.37) |
(0.17) |
(0.47) |
(0.08) | |||||||||||
|
Pretax adjustments related to Boyd Gaming: |
|||||||||||||||
|
Preopening expenses, excluding impact of LVE |
0.01 |
0.05 |
0.07 |
0.15 | |||||||||||
|
Loss on early extinguishments of debt |
0.26 |
— |
0.29 |
— | |||||||||||
|
Impairments of assets |
0.01 |
— |
0.01 |
— | |||||||||||
|
Asset transactions costs |
(0.01) |
0.01 |
0.02 |
0.08 | |||||||||||
|
Adjustments to property tax accruals, net |
— |
(0.01) |
— |
(0.01) | |||||||||||
|
Other operating charges and credits, net |
— |
0.01 |
0.02 |
(0.06) | |||||||||||
|
Interest on acquisition financing |
— |
0.04 |
— |
0.04 | |||||||||||
|
Other non-operating expense (income) |
— |
— |
(0.01) |
— | |||||||||||
|
Pretax adjustments related to Borgata: |
|||||||||||||||
|
Preopening expenses |
— |
— |
0.01 |
— | |||||||||||
|
Loss on early extinguishments of debt |
0.02 |
— |
0.03 |
— | |||||||||||
|
Valuation adjustments related to consolidation, net |
— |
— |
(0.01) |
— | |||||||||||
|
Impairments of assets |
— |
— |
0.05 |
— | |||||||||||
|
Asset transactions costs |
— |
— |
— |
— | |||||||||||
|
Other expense (income) |
0.03 |
(0.02) |
0.04 |
(0.04) | |||||||||||
|
Total adjustments |
0.32 |
0.08 |
0.52 |
0.16 | |||||||||||
|
Income tax effect for above adjustments |
— |
(0.02) |
(0.07) |
(0.05) | |||||||||||
|
Impact on noncontrolling interest, net |
(0.03) |
0.01 |
(0.05) |
0.02 | |||||||||||
|
Adjusted earnings (loss) per share |
$ |
(0.08) |
$ |
(0.10) |
$ |
(0.07) |
$ |
0.05 | |||||||
|
Weighted average shares outstanding |
101,555 |
87,643 |
93,122 |
87,824 | |||||||||||
|
____________________________________________________ |
|
(1) Results from all periods are adjusted to exclude the financial results of Dania Jai-Alai, which was sold during the second quarter of 2013. |
|
BOYD GAMING CORPORATION | |||||||||||||||||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||||||||||||||||
|
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||||||
|
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||||||||||
|
Boyd Gaming Wholly Owned |
|||||||||||||||||||||||||||||
|
(In thousands, except per share data) |
Excluding Peninsula Segment |
Peninsula Segment |
Eliminations |
Total |
Borgata (1) |
Eliminations |
Boyd Gaming Consolidated | ||||||||||||||||||||||
|
Revenues |
|||||||||||||||||||||||||||||
|
Gaming |
$ |
334,874 |
$ |
121,383 |
$ |
— |
$ |
456,257 |
$ |
176,980 |
$ |
— |
$ |
633,237 | |||||||||||||||
|
Food and beverage |
65,485 |
9,759 |
— |
75,244 |
39,153 |
— |
114,397 | ||||||||||||||||||||||
|
Room |
38,318 |
— |
— |
38,318 |
33,981 |
— |
72,299 | ||||||||||||||||||||||
|
Other |
30,248 |
5,148 |
(4,884) |
30,512 |
13,296 |
— |
43,808 | ||||||||||||||||||||||
|
Gross revenues |
468,925 |
136,290 |
(4,884) |
600,331 |
263,410 |
— |
863,741 | ||||||||||||||||||||||
|
Less promotional allowances |
56,245 |
5,568 |
— |
61,813 |
63,359 |
— |
125,172 | ||||||||||||||||||||||
|
Net revenues |
412,680 |
130,722 |
(4,884) |
538,518 |
200,051 |
— |
738,569 | ||||||||||||||||||||||
|
Costs and expenses |
|||||||||||||||||||||||||||||
|
Gaming |
173,087 |
57,480 |
— |
230,567 |
71,806 |
— |
302,373 | ||||||||||||||||||||||
|
Food and beverage |
34,940 |
6,627 |
— |
41,567 |
16,088 |
— |
57,655 | ||||||||||||||||||||||
|
Room |
10,592 |
— |
— |
10,592 |
1,964 |
— |
12,556 | ||||||||||||||||||||||
|
Other |
18,232 |
8,993 |
(4,884) |
22,341 |
10,715 |
— |
33,056 | ||||||||||||||||||||||
|
Selling, general and administrative |
72,380 |
13,627 |
— |
86,007 |
36,830 |
— |
122,837 | ||||||||||||||||||||||
|
Maintenance and utilities |
26,073 |
3,605 |
— |
29,678 |
16,057 |
— |
45,735 | ||||||||||||||||||||||
|
Depreciation and amortization |
32,455 |
22,210 |
— |
54,665 |
14,337 |
— |
69,002 | ||||||||||||||||||||||
|
Corporate expense |
11,850 |
234 |
— |
12,084 |
— |
— |
12,084 | ||||||||||||||||||||||
|
Preopening expenses |
1,260 |
— |
— |
1,260 |
415 |
— |
1,675 | ||||||||||||||||||||||
|
Impairments of assets |
1,250 |
— |
— |
1,250 |
— |
— |
1,250 | ||||||||||||||||||||||
|
Asset transactions costs |
(1,296) |
133 |
— |
(1,163) |
(199) |
— |
(1,362) | ||||||||||||||||||||||
|
Other, net |
178 |
62 |
— |
240 |
3,146 |
— |
3,386 | ||||||||||||||||||||||
|
Total costs and expenses |
381,001 |
112,971 |
(4,884) |
489,088 |
171,159 |
— |
660,247 | ||||||||||||||||||||||
|
Operating income from Borgata |
14,446 |
— |
— |
14,446 |
— |
(14,446) |
— | ||||||||||||||||||||||
|
Operating income (loss) |
46,125 |
17,751 |
— |
63,876 |
28,892 |
(14,446) |
78,322 | ||||||||||||||||||||||
|
Other expense (income) |
|||||||||||||||||||||||||||||
|
Interest income |
— |
(553) |
— |
(553) |
— |
— |
(553) | ||||||||||||||||||||||
|
Interest expense, net of amounts capitalized |
42,956 |
19,908 |
— |
62,864 |
20,281 |
— |
83,145 | ||||||||||||||||||||||
|
Loss on early extinguishments of debt |
24,605 |
— |
— |
24,605 |
2,536 |
— |
27,141 | ||||||||||||||||||||||
|
Other income |
87 |
49 |
— |
136 |
— |
— |
136 | ||||||||||||||||||||||
|
Other non-operating expenses from Borgata, net |
11,775 |
— |
— |
11,775 |
— |
(11,775) |
— | ||||||||||||||||||||||
|
Total other expense, net |
79,423 |
19,404 |
— |
98,827 |
22,817 |
(11,775) |
109,869 | ||||||||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
(33,298) |
(1,653) |
— |
(34,951) |
6,075 |
(2,671) |
(31,547) | ||||||||||||||||||||||
|
Income taxes |
1,052 |
(3,368) |
— |
(2,316) |
(732) |
— |
(3,048) | ||||||||||||||||||||||
|
Income (loss) from continuing operations, net of tax |
(32,246) |
(5,021) |
— |
(37,267) |
5,343 |
(2,671) |
(34,595) | ||||||||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
— |
— |
— |
— |
— |
— |
— | ||||||||||||||||||||||
|
Net income (loss) |
(32,246) |
(5,021) |
— |
(37,267) |
5,343 |
(2,671) |
(34,595) | ||||||||||||||||||||||
|
Net (income) loss attributable to noncontrolling interest |
— |
— |
— |
— |
— |
(2,672) |
(2,672) | ||||||||||||||||||||||
|
Net income (loss) attributable to Boyd Gaming Corporation |
$ |
(32,246) |
$ |
(5,021) |
$ |
— |
$ |
(37,267) |
$ |
5,343 |
$ |
(5,343) |
$ |
(37,267) | |||||||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||||||
|
Condensed Consolidating Statement of Operations | |||||||||||||||||||
|
Three Months Ended September 30, 2013 | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
Boyd Gaming Wholly Owned |
|||||||||||||||||||
|
(In thousands, except per share data) |
Excluding Peninsula Segment |
Peninsula Segment |
Eliminations |
Total |
Borgata (1) |
Eliminations |
Boyd Gaming Consolidated | ||||||||||||
|
Basic net loss per common share |
|||||||||||||||||||
|
Continuing operations |
$ |
(0.37) |
$ |
(0.37) | |||||||||||||||
|
Discontinued operations |
— |
— | |||||||||||||||||
|
Basic net loss per common share |
$ |
(0.37) |
$ |
(0.37) | |||||||||||||||
|
Weighted average basic shares outstanding |
101,555 |
101,555 | |||||||||||||||||
|
Diluted net loss per common share |
|||||||||||||||||||
|
Continuing operations |
$ |
(0.37) |
$ |
(0.37) | |||||||||||||||
|
Discontinued operations |
— |
— | |||||||||||||||||
|
Diluted net loss per common share |
$ |
(0.37) |
$ |
(0.37) | |||||||||||||||
|
Weighted average diluted shares outstanding |
101,555 |
101,555 | |||||||||||||||||
|
__________________________________________________ | |
|
(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 | ||||||||||||||||||||
|
Three Months Ended September 30, 2012 | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In thousands, except per share data) |
Boyd Gaming Wholly Owned |
Borgata (1) |
LVE (Variable Interest Entity) |
Eliminations |
Boyd Gaming Consolidated | |||||||||||||||
|
Revenues |
||||||||||||||||||||
|
Gaming |
$ |
353,846 |
$ |
162,360 |
$ |
— |
$ |
— |
$ |
516,206 | ||||||||||
|
Food and beverage |
66,424 |
40,234 |
— |
— |
106,658 | |||||||||||||||
|
Room |
35,744 |
34,220 |
— |
— |
69,964 | |||||||||||||||
|
Other |
26,102 |
12,809 |
2,724 |
(2,724) |
38,911 | |||||||||||||||
|
Gross revenues |
482,116 |
249,623 |
2,724 |
(2,724) |
731,739 | |||||||||||||||
|
Less promotional allowances |
56,817 |
62,532 |
— |
— |
119,349 | |||||||||||||||
|
Net revenues |
425,299 |
187,091 |
2,724 |
(2,724) |
612,390 | |||||||||||||||
|
Costs and expenses |
||||||||||||||||||||
|
Gaming |
184,708 |
67,592 |
— |
— |
252,300 | |||||||||||||||
|
Food and beverage |
35,176 |
19,744 |
— |
— |
54,920 | |||||||||||||||
|
Room |
9,615 |
3,990 |
— |
— |
13,605 | |||||||||||||||
|
Other |
18,917 |
11,030 |
— |
— |
29,947 | |||||||||||||||
|
Selling, general and administrative |
76,919 |
35,470 |
4 |
— |
112,393 | |||||||||||||||
|
Maintenance and utilities |
22,015 |
15,914 |
— |
— |
37,929 | |||||||||||||||
|
Depreciation and amortization |
34,116 |
16,308 |
— |
— |
50,424 | |||||||||||||||
|
Corporate expense |
10,317 |
— |
— |
— |
10,317 | |||||||||||||||
|
Preopening expenses |
4,342 |
— |
— |
(2,724) |
1,618 | |||||||||||||||
|
Asset transactions costs |
587 |
58 |
— |
— |
645 | |||||||||||||||
|
Other, net |
587 |
(1,682) |
— |
— |
(1,095) | |||||||||||||||
|
Total costs and expenses |
397,299 |
168,424 |
4 |
(2,724) |
563,003 | |||||||||||||||
|
Operating income from Borgata |
9,333 |
— |
— |
(9,333) |
— | |||||||||||||||
|
Operating income (loss) |
37,333 |
18,667 |
2,720 |
(9,333) |
49,387 | |||||||||||||||
|
Other expense (income) |
||||||||||||||||||||
|
Interest income |
(272) |
— |
— |
— |
(272) | |||||||||||||||
|
Interest expense, net of amounts capitalized |
50,379 |
20,755 |
2,981 |
— |
74,115 | |||||||||||||||
|
Other non-operating expenses from Borgata, net |
10,359 |
— |
— |
(10,359) |
— | |||||||||||||||
|
Total other expense, net |
60,466 |
20,755 |
2,981 |
(10,359) |
73,843 | |||||||||||||||
|
Income (loss) from continuing operations, before income taxes |
(23,133) |
(2,088) |
(261) |
1,026 |
(24,456) | |||||||||||||||
|
Income taxes |
8,013 |
37 |
— |
— |
8,050 | |||||||||||||||
|
Income (loss) from continuing operations, net of tax |
(15,120) |
(2,051) |
(261) |
1,026 |
(16,406) | |||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
(676) |
— |
— |
— |
(676) | |||||||||||||||
|
Net income (loss) |
(15,796) |
(2,051) |
(261) |
1,026 |
(17,082) | |||||||||||||||
|
Net income (loss) attributable to noncontrolling interest |
— |
— |
261 |
1,025 |
1,286 | |||||||||||||||
|
Net income (loss) attributable to Boyd Gaming Corporation |
$ |
(15,796) |
$ |
(2,051) |
$ |
— |
$ |
2,051 |
$ |
(15,796) | ||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||
|
Condensed Consolidating Statement of Operations | |||||||||||||||
|
Three Months Ended September 30, 2012 | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
(In thousands, except per share data) |
Boyd Gaming Wholly Owned |
Borgata (1) |
LVE (Variable Interest Entity) |
Eliminations |
Boyd Gaming Consolidated | ||||||||||
|
Basic net loss per common share |
|||||||||||||||
|
Continuing operations |
$ |
(0.17) |
$ |
(0.17) | |||||||||||
|
Discontinued operations |
(0.01) |
(0.01) | |||||||||||||
|
Basic net loss per common share |
$ |
(0.18) |
$ |
(0.18) | |||||||||||
|
Weighted average basic shares outstanding |
87,643 |
87,643 | |||||||||||||
|
Diluted net loss per common share |
|||||||||||||||
|
Continuing operations |
$ |
(0.17) |
$ |
(0.17) | |||||||||||
|
Discontinued operations |
(0.01) |
(0.01) | |||||||||||||
|
Diluted net loss per common share |
$ |
(0.18) |
$ |
(0.18) | |||||||||||
|
Weighted average diluted shares outstanding |
87,643 |
87,643 | |||||||||||||
|
__________________________________________________________ |
|
(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 | |||||||||||||||||||||||||||||||||
|
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||||||||||||||
|
Boyd Gaming Wholly Owned |
|||||||||||||||||||||||||||||||||
|
(In thousands, except per share data) |
Excluding Peninsula Segment |
Peninsula Segment |
Eliminations |
Total |
Borgata (1) |
LVE (Variable Interest Entity) (2) |
Eliminations |
Boyd Gaming Consolidated | |||||||||||||||||||||||||
|
Revenues |
|||||||||||||||||||||||||||||||||
|
Gaming |
$ |
1,047,770 |
$ |
373,910 |
$ |
— |
$ |
1,421,680 |
$ |
472,042 |
$ |
— |
$ |
— |
$ |
1,893,722 | |||||||||||||||||
|
Food and beverage |
201,240 |
29,524 |
— |
230,764 |
108,211 |
— |
— |
338,975 | |||||||||||||||||||||||||
|
Room |
114,178 |
— |
— |
114,178 |
89,130 |
— |
— |
203,308 | |||||||||||||||||||||||||
|
Other |
93,427 |
13,415 |
(15,162) |
91,680 |
33,337 |
1,933 |
(1,933) |
125,017 | |||||||||||||||||||||||||
|
Gross revenues |
1,456,615 |
416,849 |
(15,162) |
1,858,302 |
702,720 |
1,933 |
(1,933) |
2,561,022 | |||||||||||||||||||||||||
|
Less promotional allowances |
167,541 |
16,432 |
— |
183,973 |
164,148 |
— |
— |
348,121 | |||||||||||||||||||||||||
|
Net revenues |
1,289,074 |
400,417 |
(15,162) |
1,674,329 |
538,572 |
1,933 |
(1,933) |
2,212,901 | |||||||||||||||||||||||||
|
Costs and expenses |
|||||||||||||||||||||||||||||||||
|
Gaming |
525,254 |
174,038 |
— |
699,292 |
188,144 |
— |
— |
887,436 | |||||||||||||||||||||||||
|
Food and beverage |
107,334 |
20,141 |
— |
127,475 |
54,475 |
— |
— |
181,950 | |||||||||||||||||||||||||
|
Room |
31,444 |
— |
— |
31,444 |
10,167 |
— |
— |
41,611 | |||||||||||||||||||||||||
|
Other |
55,895 |
24,806 |
(15,162) |
65,539 |
26,890 |
— |
— |
92,429 | |||||||||||||||||||||||||
|
Selling, general and administrative |
220,277 |
42,361 |
— |
262,638 |
111,227 |
— |
— |
373,865 | |||||||||||||||||||||||||
|
Maintenance and utilities |
71,235 |
9,925 |
— |
81,160 |
44,826 |
— |
— |
125,986 | |||||||||||||||||||||||||
|
Depreciation and amortization |
97,737 |
66,173 |
— |
163,910 |
45,448 |
— |
— |
209,358 | |||||||||||||||||||||||||
|
Corporate expense |
40,487 |
2,101 |
— |
42,588 |
— |
— |
— |
42,588 | |||||||||||||||||||||||||
|
Preopening expenses |
6,202 |
91 |
— |
6,293 |
469 |
— |
(1,933) |
4,829 | |||||||||||||||||||||||||
|
Impairments of assets |
1,250 |
— |
— |
1,250 |
5,032 |
— |
— |
6,282 | |||||||||||||||||||||||||
|
Asset transactions costs |
1,768 |
292 |
— |
2,060 |
205 |
— |
— |
2,265 | |||||||||||||||||||||||||
|
Other, net |
1,836 |
199 |
— |
2,035 |
3,146 |
— |
— |
5,181 | |||||||||||||||||||||||||
|
Total costs and expenses |
1,160,719 |
340,127 |
(15,162) |
1,485,684 |
490,029 |
— |
(1,933) |
1,973,780 | |||||||||||||||||||||||||
|
Operating income from Borgata |
24,271 |
— |
— |
24,271 |
— |
— |
(24,271) |
— | |||||||||||||||||||||||||
|
Operating income (loss) |
152,626 |
60,290 |
— |
212,916 |
48,543 |
1,933 |
(24,271) |
239,121 | |||||||||||||||||||||||||
|
Other expense (income) |
|||||||||||||||||||||||||||||||||
|
Interest income |
(145) |
(1,634) |
— |
(1,779) |
— |
— |
— |
(1,779) | |||||||||||||||||||||||||
|
Interest expense, net of amounts capitalized |
139,570 |
63,107 |
— |
202,677 |
61,899 |
2,377 |
— |
266,953 | |||||||||||||||||||||||||
|
Loss on early extinguishments of debt |
25,001 |
1,976 |
— |
26,977 |
2,536 |
— |
— |
29,513 | |||||||||||||||||||||||||
|
Other income (expense) |
(729) |
394 |
— |
(335) |
— |
— |
— |
(335) | |||||||||||||||||||||||||
|
Other non-operating expenses from Borgata, net |
31,867 |
— |
— |
31,867 |
— |
— |
(31,867) |
— | |||||||||||||||||||||||||
|
Total other expense, net |
195,564 |
63,843 |
— |
259,407 |
64,435 |
2,377 |
(31,867) |
294,352 | |||||||||||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
(42,938) |
(3,553) |
— |
(46,491) |
(15,892) |
(444) |
7,596 |
(55,231) | |||||||||||||||||||||||||
|
Income taxes |
13,036 |
(10,259) |
— |
2,777 |
701 |
— |
— |
3,478 | |||||||||||||||||||||||||
|
Income (loss) from continuing operations, net of tax |
(29,902) |
(13,812) |
— |
(43,714) |
(15,191) |
(444) |
7,596 |
(51,753) | |||||||||||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
10,790 |
— |
— |
10,790 |
— |
— |
— |
10,790 | |||||||||||||||||||||||||
|
Net income (loss) |
(19,112) |
(13,812) |
— |
(32,924) |
(15,191) |
(444) |
7,596 |
(40,963) | |||||||||||||||||||||||||
|
Net (income) loss attributable to noncontrolling interest |
— |
— |
— |
— |
— |
444 |
7,595 |
8,039 | |||||||||||||||||||||||||
|
Net income (loss) attributable to Boyd Gaming Corporation |
$ |
(19,112) |
$ |
(13,812) |
$ |
— |
$ |
(32,924) |
$ |
(15,191) |
$ |
— |
$ |
15,191 |
$ |
(32,924) | |||||||||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||||||||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||||||||||||||||||||
|
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||
|
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||||||||||||||
|
Boyd Gaming Wholly Owned |
|||||||||||||||||||||||||||||||||
|
(In thousands, except per share data) |
Excluding Peninsula Segment |
Peninsula Segment |
Eliminations |
Total |
Borgata (1) |
LVE (Variable Entity) (2) |
Eliminations |
Boyd Gaming Consolidated | |||||||||||||||||||||||||
|
Basic net income (loss) per common share |
|||||||||||||||||||||||||||||||||
|
Continuing operations |
$ |
(0.47) |
$ |
(0.47) | |||||||||||||||||||||||||||||
|
Discontinued operations |
0.12 |
0.12 | |||||||||||||||||||||||||||||||
|
Basic net loss per common share |
$ |
(0.35) |
$ |
(0.35) | |||||||||||||||||||||||||||||
|
Weighted average basic shares outstanding |
93,122 |
93,122 | |||||||||||||||||||||||||||||||
|
Diluted net income (loss) per common share |
|||||||||||||||||||||||||||||||||
|
Continuing operations |
$ |
(0.47) |
$ |
(0.47) | |||||||||||||||||||||||||||||
|
Discontinued operations |
0.12 |
0.12 | |||||||||||||||||||||||||||||||
|
Diluted net loss per common share |
$ |
(0.35) |
$ |
(0.35) | |||||||||||||||||||||||||||||
|
Weighted average diluted shares outstanding |
93,122 |
93,122 | |||||||||||||||||||||||||||||||
|
__________________________________________________ | |
|
(1) |
Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements. |
|
(2) |
Boyd Gaming's contractual agreements with LVE were terminated on March 4, 2013, in connection with the sale of the Echelon development site. As a result, Boyd Gaming ceased consolidation of LVE as of that date. The financial results presented for LVE include only that portion of the period that the variable interest entity was consolidated by Boyd Gaming. |
|
BOYD GAMING CORPORATION | |||||||||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||||||||
|
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
|
Nine Months Ended September 30, 2012 | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In thousands, except per share data) |
Boyd Gaming Wholly Owned |
Borgata (1) |
LVE (Variable Interest Entity) |
Eliminations |
Boyd Gaming Consolidated | ||||||||||||||||
|
Revenues |
|||||||||||||||||||||
|
Gaming |
$ |
1,094,475 |
$ |
470,285 |
$ |
— |
$ |
— |
$ |
1,564,760 | |||||||||||
|
Food and beverage |
205,526 |
112,350 |
— |
— |
317,876 | ||||||||||||||||
|
Room |
114,541 |
91,048 |
— |
— |
205,589 | ||||||||||||||||
|
Other |
78,869 |
31,547 |
8,172 |
(8,172) |
110,416 | ||||||||||||||||
|
Gross revenues |
1,493,411 |
705,230 |
8,172 |
(8,172) |
2,198,641 | ||||||||||||||||
|
Less promotional allowances |
173,939 |
166,573 |
— |
— |
340,512 | ||||||||||||||||
|
Net revenues |
1,319,472 |
538,657 |
8,172 |
(8,172) |
1,858,129 | ||||||||||||||||
|
Costs and expenses |
|||||||||||||||||||||
|
Gaming |
544,017 |
195,225 |
— |
— |
739,242 | ||||||||||||||||
|
Food and beverage |
112,596 |
56,533 |
— |
— |
169,129 | ||||||||||||||||
|
Room |
32,727 |
10,944 |
— |
— |
43,671 | ||||||||||||||||
|
Other |
57,298 |
25,345 |
— |
— |
82,643 | ||||||||||||||||
|
Selling, general and administrative |
227,699 |
102,999 |
13 |
— |
330,711 | ||||||||||||||||
|
Maintenance and utilities |
71,280 |
44,644 |
— |
— |
115,924 | ||||||||||||||||
|
Depreciation and amortization |
103,607 |
47,452 |
— |
— |
151,059 | ||||||||||||||||
|
Corporate expense |
36,197 |
— |
— |
— |
36,197 | ||||||||||||||||
|
Preopening expenses |
13,420 |
240 |
— |
(8,172) |
5,488 | ||||||||||||||||
|
Asset transactions costs |
6,917 |
— |
— |
— |
6,917 | ||||||||||||||||
|
Other, net |
(5,504) |
(3,812) |
— |
— |
(9,316) | ||||||||||||||||
|
Total costs and expenses |
1,200,254 |
479,570 |
13 |
(8,172) |
1,671,665 | ||||||||||||||||
|
Operating income from Borgata |
29,543 |
— |
— |
(29,543) |
— | ||||||||||||||||
|
Operating income (loss) |
148,761 |
59,087 |
8,159 |
(29,543) |
186,464 | ||||||||||||||||
|
Other expense (income) |
|||||||||||||||||||||
|
Interest income |
(684) |
— |
— |
— |
(684) | ||||||||||||||||
|
Interest expense, net of amounts capitalized |
131,823 |
61,885 |
9,023 |
— |
202,731 | ||||||||||||||||
|
Other non-operating expenses from Borgata, net |
31,010 |
— |
— |
(31,010) |
— | ||||||||||||||||
|
Total other expense, net |
162,149 |
61,885 |
9,023 |
(31,010) |
202,047 | ||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
(13,388) |
(2,798) |
(864) |
1,467 |
(15,583) | ||||||||||||||||
|
Income taxes |
6,563 |
(136) |
— |
— |
6,427 | ||||||||||||||||
|
Income (loss) from continuing operations, net of tax |
(6,825) |
(2,934) |
(864) |
1,467 |
(9,156) | ||||||||||||||||
|
Loss from discontinued operations, net of tax |
(2,142) |
— |
— |
— |
(2,142) | ||||||||||||||||
|
Net income (loss) |
(8,967) |
(2,934) |
(864) |
1,467 |
(11,298) | ||||||||||||||||
|
Net income (loss) attributable to noncontrolling interest |
— |
— |
864 |
1,467 |
2,331 | ||||||||||||||||
|
Net income (loss) attributable to Boyd Gaming Corporation |
$ |
(8,967) |
$ |
(2,934) |
$ |
— |
$ |
2,934 |
$ |
(8,967) | |||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||||||||
|
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
|
Nine Months Ended September 30, 2012 | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In thousands, except per share data) |
Boyd Gaming Wholly Owned |
Borgata (1) |
LVE (Variable Interest Entity) |
Eliminations |
Boyd Gaming Consolidated | ||||||||||||||||
|
Basic net loss per common share |
|||||||||||||||||||||
|
Continuing operations |
$ |
(0.08) |
$ |
(0.08) | |||||||||||||||||
|
Discontinued operations |
(0.02) |
(0.02) | |||||||||||||||||||
|
Basic net loss per common share |
$ |
(0.10) |
$ |
(0.10) | |||||||||||||||||
|
Weighted average basic shares outstanding |
87,587 |
87,587 | |||||||||||||||||||
|
Diluted net loss per common share |
|||||||||||||||||||||
|
Continuing operations |
$ |
(0.08) |
$ |
(0.08) | |||||||||||||||||
|
Discontinued operations |
(0.02) |
(0.02) | |||||||||||||||||||
|
Diluted net loss per common share |
$ |
(0.10) |
$ |
(0.10) | |||||||||||||||||
|
Weighted average diluted shares outstanding |
87,587 |
87,587 | |||||||||||||||||||
|
__________________________________________________________ |
|
(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 Consolidated Statements of Operations of Peninsula Segment (1) Successor and Predecessor Periods Comprising the Three and Nine Month Periods Ended September 30, 2013 and 2012 (Unaudited) | |||||||||||||||||
|
Successor |
Predecessor (2) |
Successor |
Predecessor (2) | ||||||||||||||
|
Three Months |
Three Months |
Nine Months |
Nine Months | ||||||||||||||
|
Ended |
Ended |
Ended |
Ended | ||||||||||||||
|
(In thousands) |
September 30, 2013 |
September 30, 2012 |
September 30, 2013 |
September 30, 2012 | |||||||||||||
|
Revenues |
|||||||||||||||||
|
Gaming |
$ |
121,383 |
$ |
122,189 |
$ |
373,910 |
$ |
375,079 | |||||||||
|
Food and beverage |
9,759 |
8,299 |
29,524 |
25,295 | |||||||||||||
|
Other |
5,148 |
4,592 |
13,415 |
12,356 | |||||||||||||
|
Gross revenues |
136,290 |
135,080 |
416,849 |
412,730 | |||||||||||||
|
Less promotional allowances |
5,568 |
4,926 |
16,432 |
14,961 | |||||||||||||
|
Net revenues |
130,722 |
130,154 |
400,417 |
397,769 | |||||||||||||
|
Costs and expenses |
|||||||||||||||||
|
Gaming |
57,480 |
55,435 |
174,038 |
169,343 | |||||||||||||
|
Food and beverage |
6,627 |
5,272 |
20,141 |
15,871 | |||||||||||||
|
Other |
4,109 |
3,379 |
9,644 |
8,643 | |||||||||||||
|
Selling, general and administrative |
13,627 |
12,341 |
42,361 |
36,952 | |||||||||||||
|
Maintenance and utilities |
3,605 |
3,010 |
9,925 |
8,274 | |||||||||||||
|
Depreciation and amortization |
22,210 |
10,465 |
66,173 |
31,239 | |||||||||||||
|
Corporate expense |
234 |
3,541 |
2,101 |
8,887 | |||||||||||||
|
Affiliate management fee |
4,884 |
2,286 |
15,162 |
7,049 | |||||||||||||
|
Preopening expenses |
— |
153 |
91 |
156 | |||||||||||||
|
Asset transactions costs |
133 |
(9) |
292 |
(46) | |||||||||||||
|
Other operating items |
62 |
301 |
199 |
2,474 | |||||||||||||
|
Total costs and expenses |
112,971 |
96,174 |
340,127 |
288,842 | |||||||||||||
|
Operating income (loss) |
17,751 |
33,980 |
60,290 |
108,927 | |||||||||||||
|
Other expense (income) |
|||||||||||||||||
|
Interest income |
(553) |
(557) |
(1,634) |
(1,685) | |||||||||||||
|
Interest expense, net of amounts capitalized |
19,908 |
17,306 |
63,107 |
53,704 | |||||||||||||
|
Debt modification fees |
— |
— |
1,976 |
— | |||||||||||||
|
Loss from equity affiliates |
49 |
18 |
394 |
62 | |||||||||||||
|
Total other expense, net |
19,404 |
16,767 |
63,843 |
52,081 | |||||||||||||
|
Income (loss) before income taxes |
(1,653) |
17,213 |
(3,553) |
56,846 | |||||||||||||
|
Income taxes (3) |
(3,368) |
— |
(10,259) |
— | |||||||||||||
|
Net income (loss) |
$ |
(5,021) |
$ |
17,213 |
$ |
(13,812) |
$ |
56,846 | |||||||||
|
Adjusted EBITDA, after corporate expense |
$ |
45,040 |
$ |
47,176 |
$ |
142,207 |
$ |
149,799 | |||||||||
|
___________________________________ | |
|
(1) |
Peninsula Gaming, LLC ("PGL") was acquired by Boyd Gaming on November 20, 2012. In accordance with Generally Accepted Accounting Principles ("GAAP"), PGL's post acquisition financial results have been prepared on Boyd Gaming's ("Successor") basis of accounting and reflect adjustments resulting from the application of the acquisition method. Financial information for the prior year period has been prepared on PGL's ("Predecessor") basis of accounting. Consequently, the financial statements for the Successor and Predecessor periods are presented on different bases. |
|
(2) |
Certain amounts for the prior year have been reclassified to conform with the Successor presentation. These reclassifications had no impact on income from operations or net income as previously reported by the Predecessor. |
|
(3) |
The Predecessor was structured as a limited liability company and the members were taxed on their proportionate share of its taxable income. Accordingly, no provision for income taxes was included in the financial statements of the Predecessor. |
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 accounting principles generally accepted in the United States ("GAAP"), provides our investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of our core operating results and as a means to evaluate period-to-period results. We refer to this measure as Adjusted EBITDA. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. We have historically reported this measure to our investors and believe that the continued inclusion of Adjusted EBITDA provides consistency in our financial reporting. We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by our management in their financial and operational decision-making. Adjusted EBITDA is among the more significant factors in management's internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA as a measure in the evaluation of potential acquisitions and dispositions. Adjusted EBITDA is also used by management in the annual budget process. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company. Adjusted EBITDA reflects EBITDA adjusted for deferred rent, preopening expenses, share-based compensation expense, impairments of assets, asset transactions costs, loss on early extinguishments of debt and other operating charges, net, and 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, asset transactions costs, net gains on insurance settlements, impairments of assets, certain 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 or loss 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 income (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: improvement in October year-over-year results in most of our operations, that Borgata's amenities are providing a significant competitive advantage, and that Borgata is on track to be among the first operators to offer real-money online gaming in New Jersey. 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; whether online gaming will become legalized in various states, the Company's ability to operate online gaming profitably, or otherwise; consumer reaction to fluctuations in the stock market and economic factors; the fact that the Company's expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Boyd Gaming
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 22 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi and New Jersey. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.
SOURCE Boyd Gaming Corporation
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