Boyd Gaming Reports Second-Quarter 2016 Results
LAS VEGAS, Aug. 3, 2016 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2016.
Boyd Gaming reported second-quarter 2016 net revenues of $544.9 million, compared to $559.9 million in the year-ago quarter. On a GAAP basis, and including discontinued operations, the Company reported net income of $30.0 million, or $0.26 per share, for the second quarter of 2016, compared to a net loss of $6.4 million, or $0.06 per share, for the year-ago period. Income from continuing operations, net of tax, for the second quarter was $11.3 million, or $0.10 per share, compared to a net loss of $12.4 million, or $0.11 per share, in the prior-year second quarter. Prior-year results were impacted by pretax losses on the early extinguishments of debt of $31.0 million. During the second quarter of 2016, the Company announced an agreement to sell its 50% equity interest in the parent company of Borgata Hotel Casino & Spa. As a result of this agreement, the Company's share of Borgata's net income is reflected as discontinued operations in the accompanying consolidated financial statements.
Total Adjusted EBITDA(1) was $137.9 million, compared to $140.6 million in the second quarter of 2015. Adjusted Earnings(1) for the second quarter 2016 were $18.1 million, or $0.16 per share, compared to Adjusted Earnings of $20.9 million, or $0.19 per share, for the same period in 2015. Adjusted EBITDA and Adjusted Earnings exclude discontinued operations.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "The second quarter of 2016 was a significant time for our Company, as we executed several transactions that will strengthen our financial foundation and position us for continued growth. With the acquisitions of Aliante and the Cannery properties, we will be expanding our presence in the high-growth Las Vegas locals market. And we unlocked the significant value in our Borgata joint venture, allowing us to further accelerate our deleveraging efforts."
Smith continued, "In terms of our operational performance, results across our business segments were varied. In Las Vegas, strong performances in our Locals operations in April and June were tempered by a tough year-over-year comparison in May, while our Downtown Las Vegas operations continued to deliver a high level of performance. In the Midwest and South segment, our performance improved modestly from trends earlier in the year, while the Peninsula segment performed below our expectations, largely due to a weaker than expected gaming market in Kansas. We continue to make significant progress in the execution of our growth strategy, and are optimistic about the future."
|
(1) |
See footnotes at the end of the release for additional information relative to non-GAAP financial measures. |
Key Operations Review
Las Vegas Locals In the Las Vegas Locals segment, second-quarter 2016 net revenues were $154.9 million, an increase of 1.2% from $153.0 million in the year-ago quarter. Second-quarter 2016 Adjusted EBITDA was $43.2 million, up 2.4% from $42.2 million in the second quarter of 2015.
The segment achieved its fifth consecutive quarter of revenue growth, Adjusted EBITDA growth and margin improvements. Additionally, the Company's amenity investment initiative continued to drive growth in non-gaming revenue during the quarter. Solid operating performances in April and June were partially offset by challenging year-over-year comparisons in May. In May 2015, one-time citywide events drove unusually strong visitation to the Las Vegas market.
Downtown Las VegasIn the Downtown Las Vegas segment, net revenues were $59.2 million in the second quarter of 2016, up 1.3% from $58.4 million in the year-ago period. Adjusted EBITDA increased 15.9% to $14.3 million, compared to $12.3 million in the second quarter of 2015.
The Downtown Las Vegas segment delivered its sixth straight quarter of revenue and double-digit Adjusted EBITDA gains, driven by growth in Hawaiian business and further increases in visitation to the downtown area. Results also benefitted from continued operational efficiencies, as operating margins improved by 300 basis points during the quarter.
Midwest and South; PeninsulaIn the Midwest and South segment, net revenues were $207.8 million, compared to $217.8 million in the second quarter of 2015, while Adjusted EBITDA was $50.1 million versus $51.8 million in the year-ago period. The Peninsula segment reported net revenues of $122.9 million, compared to $130.6 million in the second quarter of 2015, and Adjusted EBITDA of $44.7 million versus $49.2 million in the year-ago period.
In the Midwest and South, five of the segment's seven properties achieved Adjusted EBITDA above prior-year levels, and overall operating margins improved. Results reflect declines at IP and Par-A-Dice, as both properties continued to contend with new competition in their markets. Overall, the segment's Adjusted EBITDA performance reflected a slight improvement over first-quarter trends.
Peninsula segment results were largely impacted by revenue and Adjusted EBITDA declines at the Kansas Star, due to general softness in visitation across the state's gaming market. Additionally, results at Evangeline Downs and Amelia Belle reflect continued economic weakness in south-central Louisiana.
BorgataBorgata reported second quarter 2016 net revenues of $203.3 million, up from $191.2 million in revenues in the year-ago period. Adjusted EBITDA was $60.8 million, compared to $44.5 million in the year-ago period.
Year-over-year growth was primarily driven by higher slot volumes, normalized table game hold compared to the year-ago quarter, and a $5 million recovery from the Casino Reinvestment Development Authority, related to certain capital improvement projects.
The Company's share of Borgata's net income is reported as discontinued operations, and was $18.7 million for the second quarter of 2016, compared to $6.0 million in the year-ago period.
Balance Sheet StatisticsAs of June 30, 2016, Boyd Gaming had cash on hand of $628.3 million, including $23.6 million related to Peninsula. Total debt was $3.71 billion, of which $960.5 million was related to Peninsula.
Borgata's cash and debt balances are not included in the Company's balance sheet. Borgata had cash on hand of $31.3 million and total debt of $603.0 million at June 30, 2016.
Full Year 2016 GuidanceFollowing Boyd Gaming's divestiture of its 50% equity interest in Borgata, the Company is excluding Borgata's results from its guidance for the full year 2016.
Boyd Gaming projects wholly-owned Adjusted EBITDA of $535 million to $555 million for the full year 2016, which includes anticipated fourth-quarter contributions from Aliante and the Cannery properties. Excluding these pending acquisitions, the Company projects wholly-owned Adjusted EBITDA of $535 million to $545 million for the full year 2016.
Conference Call InformationBoyd Gaming will host its conference call to discuss second-quarter 2016 results and provide an update on its pending acquisitions today, August 3, at 5:00 p.m. Eastern. The conference call number is (888) 317-6003, passcode 5148733. 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: https://www.webcaster4.com/Webcast/Page/964/16471
Following the call's completion, a replay will be available by dialing (877) 344-7529 today, August 3, beginning at 7:00 p.m. Eastern and continuing through Wednesday, August 10, at 11:59 p.m. Eastern. The passcode for the replay will be 10090638. 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 |
Six Months Ended | ||||||||||||||
|
June 30, |
June 30, | ||||||||||||||
|
(In thousands, except per share data) |
2016 |
2015 |
2016 |
2015 | |||||||||||
|
Revenues |
|||||||||||||||
|
Gaming |
$ |
452,928 |
$ |
468,580 |
$ |
915,479 |
$ |
933,337 |
|||||||
|
Food and beverage |
75,898 |
77,909 |
152,698 |
154,205 |
|||||||||||
|
Room |
43,365 |
42,332 |
85,240 |
81,685 |
|||||||||||
|
Other |
29,693 |
30,642 |
61,159 |
60,327 |
|||||||||||
|
Gross revenues |
601,884 |
619,463 |
1,214,576 |
1,229,554 |
|||||||||||
|
Less promotional allowances |
57,010 |
59,596 |
117,324 |
119,109 |
|||||||||||
|
Net revenues |
544,874 |
559,867 |
1,097,252 |
1,110,445 |
|||||||||||
|
Operating costs and expenses |
|||||||||||||||
|
Gaming |
217,768 |
224,686 |
441,293 |
451,383 |
|||||||||||
|
Food and beverage |
42,116 |
42,913 |
83,919 |
84,480 |
|||||||||||
|
Room |
11,293 |
10,682 |
21,792 |
20,729 |
|||||||||||
|
Other |
18,827 |
19,744 |
38,159 |
39,390 |
|||||||||||
|
Selling, general and administrative |
79,002 |
81,013 |
160,853 |
162,702 |
|||||||||||
|
Maintenance and utilities |
25,009 |
26,616 |
48,857 |
51,935 |
|||||||||||
|
Depreciation and amortization |
48,250 |
51,964 |
95,903 |
103,906 |
|||||||||||
|
Corporate expense |
16,099 |
17,352 |
34,006 |
37,004 |
|||||||||||
|
Project development, preopening and writedowns |
5,897 |
1,749 |
7,738 |
2,704 |
|||||||||||
|
Impairments of assets |
— |
— |
1,440 |
1,065 |
|||||||||||
|
Other operating items, net |
123 |
54 |
552 |
170 |
|||||||||||
|
Total operating costs and expenses |
464,384 |
476,773 |
934,512 |
955,468 |
|||||||||||
|
Operating income |
80,490 |
83,094 |
162,740 |
154,977 |
|||||||||||
|
Other expense (income) |
|||||||||||||||
|
Interest income |
(959) |
(465) |
(1,456) |
(936) |
|||||||||||
|
Interest expense, net of amounts capitalized |
61,887 |
57,131 |
114,952 |
114,066 |
|||||||||||
|
Loss on early extinguishments of debt |
419 |
30,962 |
846 |
31,470 |
|||||||||||
|
Other, net |
65 |
1,270 |
142 |
1,888 |
|||||||||||
|
Total other expense, net |
61,412 |
88,898 |
114,484 |
146,488 |
|||||||||||
|
Income (loss) from continuing operations before income taxes |
19,078 |
(5,804) |
48,256 |
8,489 |
|||||||||||
|
Income taxes benefit (provision) |
(7,771) |
(6,586) |
(15,389) |
9,625 |
|||||||||||
|
Income (loss) from continuing operations, net of tax |
11,307 |
(12,390) |
32,867 |
18,114 |
|||||||||||
|
Income from discontinued operations, net of tax |
18,715 |
5,965 |
30,345 |
10,564 |
|||||||||||
|
Net income (loss) |
$ |
30,022 |
$ |
(6,425) |
$ |
63,212 |
$ |
28,678 |
|||||||
|
Basic net income (loss) per common share |
|||||||||||||||
|
Continuing operations |
$ |
0.10 |
$ |
(0.11) |
$ |
0.29 |
$ |
0.17 |
|||||||
|
Discontinued operations |
0.16 |
0.05 |
0.27 |
0.09 |
|||||||||||
|
Basic net income (loss) per common share |
$ |
0.26 |
$ |
(0.06) |
$ |
0.56 |
$ |
0.26 |
|||||||
|
Weighted average basic shares outstanding |
114,328 |
112,232 |
114,218 |
111,841 |
|||||||||||
|
Diluted net income (loss) per common share |
|||||||||||||||
|
Continuing operations |
$ |
0.10 |
$ |
(0.11) |
$ |
0.29 |
$ |
0.16 |
|||||||
|
Discontinued operations |
0.16 |
0.05 |
0.26 |
0.09 |
|||||||||||
|
Diluted net income (loss) per common share |
$ |
0.26 |
$ |
(0.06) |
$ |
0.55 |
$ |
0.25 |
|||||||
|
Weighted average diluted shares outstanding |
115,077 |
112,232 |
114,974 |
112,694 |
|||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||
|
Reconciliation of Adjusted EBITDA to Net Income (Loss) | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
June 30, |
June 30, | ||||||||||||||
|
(In thousands) |
2016 |
2015 |
2016 |
2015 | |||||||||||
|
Net Revenues by Reportable Segment |
|||||||||||||||
|
Las Vegas Locals |
$ |
154,936 |
$ |
153,032 |
$ |
313,334 |
$ |
303,332 |
|||||||
|
Downtown Las Vegas |
59,212 |
58,434 |
117,817 |
115,038 |
|||||||||||
|
Midwest and South |
207,837 |
217,777 |
417,022 |
435,542 |
|||||||||||
|
Peninsula |
122,889 |
130,624 |
249,079 |
256,533 |
|||||||||||
|
Net revenues |
$ |
544,874 |
$ |
559,867 |
$ |
1,097,252 |
$ |
1,110,445 |
|||||||
|
Adjusted EBITDA by Reportable Segment |
|||||||||||||||
|
Las Vegas Locals |
$ |
43,173 |
$ |
42,175 |
$ |
87,444 |
$ |
81,052 |
|||||||
|
Downtown Las Vegas |
14,263 |
12,307 |
26,944 |
22,984 |
|||||||||||
|
Midwest and South |
50,056 |
51,777 |
98,869 |
102,761 |
|||||||||||
|
Peninsula |
44,691 |
49,164 |
91,803 |
95,527 |
|||||||||||
|
Property Adjusted EBITDA |
152,183 |
155,423 |
305,060 |
302,324 |
|||||||||||
|
Corporate expense (a) |
(14,286) |
(14,777) |
(29,471) |
(31,419) |
|||||||||||
|
Adjusted EBITDA |
137,897 |
140,646 |
275,589 |
270,905 |
|||||||||||
|
Other operating costs and expenses |
|||||||||||||||
|
Deferred rent |
817 |
859 |
1,633 |
1,716 |
|||||||||||
|
Depreciation and amortization |
48,250 |
51,964 |
95,903 |
103,906 |
|||||||||||
|
Share-based compensation expense |
2,320 |
2,926 |
5,583 |
6,367 |
|||||||||||
|
Project development, preopening and writedowns |
5,897 |
1,749 |
7,738 |
2,704 |
|||||||||||
|
Impairments of assets |
— |
— |
1,440 |
1,065 |
|||||||||||
|
Other operating items, net |
123 |
54 |
552 |
170 |
|||||||||||
|
Total other operating costs and expenses |
57,407 |
57,552 |
112,849 |
115,928 |
|||||||||||
|
Operating income |
80,490 |
83,094 |
162,740 |
154,977 |
|||||||||||
|
Other expense (income) |
|||||||||||||||
|
Interest income |
(959) |
(465) |
(1,456) |
(936) |
|||||||||||
|
Interest expense, net of amounts capitalized |
61,887 |
57,131 |
114,952 |
114,066 |
|||||||||||
|
Loss on early extinguishments of debt |
419 |
30,962 |
846 |
31,470 |
|||||||||||
|
Other, net |
65 |
1,270 |
142 |
1,888 |
|||||||||||
|
Total other expense, net |
61,412 |
88,898 |
114,484 |
146,488 |
|||||||||||
|
Income (loss) before income taxes |
19,078 |
(5,804) |
48,256 |
8,489 |
|||||||||||
|
Income taxes benefit (provision) |
(7,771) |
(6,586) |
(15,389) |
9,625 |
|||||||||||
|
Income (loss) from continuing operations, net of tax |
11,307 |
(12,390) |
32,867 |
18,114 |
|||||||||||
|
Income from discontinued operations, net of tax |
18,715 |
5,965 |
30,345 |
10,564 |
|||||||||||
|
Net income (loss) |
$ |
30,022 |
$ |
(6,425) |
$ |
63,212 |
$ |
28,678 |
|||||||
|
BOYD GAMING CORPORATION | |||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||
|
Reconciliation of Adjusted EBITDA to Net Income (Loss) | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
(Continued) | |||||||||||||||
|
(a) Reconciliation of corporate expense: | |||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
June 30, |
June 30, | ||||||||||||||
|
(In thousands) |
2016 |
2015 |
2016 |
2015 | |||||||||||
|
Corporate expense as reported on Consolidated Statements of Operations |
$ |
16,099 |
$ |
17,352 |
$ |
34,006 |
$ |
37,004 |
|||||||
|
Corporate share-based compensation expense |
(1,813) |
(2,575) |
(4,535) |
(5,585) |
|||||||||||
|
Corporate expense as reported on the above table |
$ |
14,286 |
$ |
14,777 |
$ |
29,471 |
$ |
31,419 |
|||||||
|
BOYD GAMING CORPORATION | |||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||
|
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) Per Share to | |||||||||||||||
|
Adjusted Earnings Per Share | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
June 30, |
June 30, | ||||||||||||||
|
(In thousands, except per share data) |
2016 |
2015 |
2016 |
2015 | |||||||||||
|
Net income (loss) |
$ |
30,022 |
$ |
(6,425) |
$ |
63,212 |
$ |
28,678 |
|||||||
|
Less: income from discontinued operations, net of tax |
(18,715) |
(5,965) |
(30,345) |
(10,564) |
|||||||||||
|
Adjusted net income (loss) |
11,307 |
(12,390) |
32,867 |
18,114 |
|||||||||||
|
Pretax adjustments: |
|||||||||||||||
|
Project development, preopening and writedowns |
5,897 |
1,749 |
7,738 |
2,704 |
|||||||||||
|
Impairments of assets |
— |
— |
1,440 |
1,065 |
|||||||||||
|
Other operating items, net |
123 |
54 |
552 |
170 |
|||||||||||
|
Loss on early extinguishments of debt |
419 |
30,962 |
846 |
31,470 |
|||||||||||
|
Other, net |
65 |
1,270 |
142 |
1,888 |
|||||||||||
|
Total adjustments |
6,504 |
34,035 |
10,718 |
37,297 |
|||||||||||
|
Income tax effect for above adjustments |
294 |
(785) |
30 |
(1,789) |
|||||||||||
|
Impact of tax audit settlements on provision |
— |
— |
— |
(22,606) |
|||||||||||
|
Adjusted earnings |
$ |
18,105 |
$ |
20,860 |
$ |
43,615 |
$ |
31,016 |
|||||||
|
Net income (loss) per share |
$ |
0.26 |
$ |
(0.06) |
$ |
0.55 |
$ |
0.25 |
|||||||
|
Less: income from discontinued operations per share |
(0.16) |
(0.05) |
(0.26) |
(0.09) |
|||||||||||
|
Adjusted net income (loss) per share |
0.10 |
(0.11) |
0.29 |
0.16 |
|||||||||||
|
Pretax adjustments: |
|||||||||||||||
|
Project development, preopening and writedowns |
0.05 |
0.02 |
0.07 |
0.02 |
|||||||||||
|
Impairments of assets |
— |
— |
0.01 |
0.01 |
|||||||||||
|
Other operating items, net |
— |
— |
— |
— |
|||||||||||
|
Loss on early extinguishments of debt |
— |
0.28 |
— |
0.29 |
|||||||||||
|
Other, net |
0.01 |
0.01 |
— |
0.02 |
|||||||||||
|
Total adjustments |
0.06 |
0.31 |
0.09 |
0.34 |
|||||||||||
|
Income tax effect for above adjustments |
— |
(0.01) |
— |
(0.02) |
|||||||||||
|
Impact of tax audit settlements on provision |
— |
— |
— |
(0.20) |
|||||||||||
|
Adjusted earnings per share |
$ |
0.16 |
$ |
0.19 |
$ |
0.38 |
$ |
0.28 |
|||||||
|
Weighted average shares outstanding |
115,077 |
113,021 |
114,974 |
112,694 |
|||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||
|
Condensed Consolidating Statements of Operations | |||||||||||||||
|
Three Months Ended June 30, 2016 | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Boyd Gaming | |||||||||||||||
|
(In thousands, except per share data) |
ExcludingPeninsulaSegment |
PeninsulaSegment |
Eliminations |
Consolidated | |||||||||||
|
Revenues |
|||||||||||||||
|
Gaming |
$ |
338,772 |
$ |
114,156 |
$ |
— |
$ |
452,928 |
|||||||
|
Food and beverage |
66,981 |
8,917 |
— |
75,898 |
|||||||||||
|
Room |
43,365 |
— |
— |
43,365 |
|||||||||||
|
Other |
29,960 |
4,425 |
(4,692) |
29,693 |
|||||||||||
|
Gross revenues |
479,078 |
127,498 |
(4,692) |
601,884 |
|||||||||||
|
Less promotional allowances |
52,400 |
4,610 |
— |
57,010 |
|||||||||||
|
Net revenues |
426,678 |
122,888 |
(4,692) |
544,874 |
|||||||||||
|
Operating costs and expenses |
|||||||||||||||
|
Gaming |
164,063 |
53,705 |
— |
217,768 |
|||||||||||
|
Food and beverage |
35,943 |
6,173 |
— |
42,116 |
|||||||||||
|
Room |
11,293 |
— |
— |
11,293 |
|||||||||||
|
Other |
16,197 |
7,322 |
(4,692) |
18,827 |
|||||||||||
|
Selling, general and administrative |
66,510 |
12,492 |
— |
79,002 |
|||||||||||
|
Maintenance and utilities |
21,813 |
3,196 |
— |
25,009 |
|||||||||||
|
Depreciation and amortization |
34,570 |
13,680 |
— |
48,250 |
|||||||||||
|
Corporate expense |
15,709 |
390 |
— |
16,099 |
|||||||||||
|
Project development, preopening and writedowns |
5,744 |
153 |
— |
5,897 |
|||||||||||
|
Impairments of assets |
— |
— |
— |
— |
|||||||||||
|
Other operating items, net |
71 |
52 |
— |
123 |
|||||||||||
|
Total operating costs and expenses |
371,913 |
97,163 |
(4,692) |
464,384 |
|||||||||||
|
Operating income |
54,765 |
25,725 |
— |
80,490 |
|||||||||||
|
Other expense (income) |
|||||||||||||||
|
Interest income |
(500) |
(459) |
— |
(959) |
|||||||||||
|
Interest expense, net of amounts capitalized |
44,392 |
17,495 |
— |
61,887 |
|||||||||||
|
Loss on early extinguishments of debt |
— |
419 |
— |
419 |
|||||||||||
|
Other, net |
(18) |
83 |
— |
65 |
|||||||||||
|
Total other expense, net |
43,874 |
17,538 |
— |
61,412 |
|||||||||||
|
Income before income taxes |
10,891 |
8,187 |
— |
19,078 |
|||||||||||
|
Income taxes provision |
(2,166) |
(5,605) |
— |
(7,771) |
|||||||||||
|
Income (loss) from continuing operations, net of tax |
8,725 |
2,582 |
— |
11,307 |
|||||||||||
|
Income from discontinued operations, net of tax |
18,715 |
— |
— |
18,715 |
|||||||||||
|
Net income |
$ |
27,440 |
$ |
2,582 |
$ |
— |
$ |
30,022 |
|||||||
|
Basic net income per common share |
|||||||||||||||
|
Continuing operations |
$ |
0.10 |
|||||||||||||
|
Discontinued operations |
0.16 |
||||||||||||||
|
Basic net income per common share |
$ |
0.26 |
|||||||||||||
|
Weighted average basic shares outstanding |
114,328 |
||||||||||||||
|
Diluted net income per common share |
|||||||||||||||
|
Continuing operations |
$ |
0.10 |
|||||||||||||
|
Discontinued operations |
0.16 |
||||||||||||||
|
Diluted net income per common share |
$ |
0.26 |
|||||||||||||
|
Weighted average diluted shares outstanding |
115,077 |
||||||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||
|
Condensed Consolidating Statements of Operations | |||||||||||||||
|
Three Months Ended June 30, 2015 | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Boyd Gaming | |||||||||||||||
|
(In thousands, except per share data) |
ExcludingPeninsulaSegment |
PeninsulaSegment |
Eliminations |
Consolidated | |||||||||||
|
Revenues |
|||||||||||||||
|
Gaming |
$ |
347,647 |
$ |
120,933 |
$ |
— |
$ |
468,580 |
|||||||
|
Food and beverage |
68,195 |
9,714 |
— |
77,909 |
|||||||||||
|
Room |
42,332 |
— |
— |
42,332 |
|||||||||||
|
Other |
30,755 |
4,940 |
(5,053) |
30,642 |
|||||||||||
|
Gross revenues |
488,929 |
135,587 |
(5,053) |
619,463 |
|||||||||||
|
Less promotional allowances |
54,631 |
4,965 |
— |
59,596 |
|||||||||||
|
Net revenues |
434,298 |
130,622 |
(5,053) |
559,867 |
|||||||||||
|
Operating costs and expenses |
|||||||||||||||
|
Gaming |
168,830 |
55,856 |
— |
224,686 |
|||||||||||
|
Food and beverage |
36,556 |
6,357 |
— |
42,913 |
|||||||||||
|
Room |
10,682 |
— |
— |
10,682 |
|||||||||||
|
Other |
16,759 |
8,038 |
(5,053) |
19,744 |
|||||||||||
|
Selling, general and administrative |
68,023 |
12,990 |
— |
81,013 |
|||||||||||
|
Maintenance and utilities |
23,345 |
3,271 |
— |
26,616 |
|||||||||||
|
Depreciation and amortization |
34,863 |
17,101 |
— |
51,964 |
|||||||||||
|
Corporate expense |
17,005 |
347 |
— |
17,352 |
|||||||||||
|
Project development, preopening and writedowns |
1,226 |
523 |
— |
1,749 |
|||||||||||
|
Impairments of assets |
— |
— |
— |
— |
|||||||||||
|
Other operating items, net |
(1) |
55 |
— |
54 |
|||||||||||
|
Total operating costs and expenses |
377,288 |
104,538 |
(5,053) |
476,773 |
|||||||||||
|
Operating income |
57,010 |
26,084 |
— |
83,094 |
|||||||||||
|
Other expense (income) |
|||||||||||||||
|
Interest income |
— |
(465) |
— |
(465) |
|||||||||||
|
Interest expense, net of amounts capitalized |
38,706 |
18,425 |
57,131 |
||||||||||||
|
Loss on early extinguishments of debt |
30,008 |
954 |
— |
30,962 |
|||||||||||
|
Other, net |
1,245 |
25 |
— |
1,270 |
|||||||||||
|
Total other expense, net |
69,959 |
18,939 |
— |
88,898 |
|||||||||||
|
Income before income taxes |
(12,949) |
7,145 |
— |
(5,804) |
|||||||||||
|
Income taxes provision |
(2,088) |
(4,498) |
— |
(6,586) |
|||||||||||
|
Income (loss) from continuing operations, net of tax |
(15,037) |
2,647 |
— |
(12,390) |
|||||||||||
|
Income from discontinued operations, net of tax |
5,965 |
— |
— |
5,965 |
|||||||||||
|
Net income (loss) |
$ |
(9,072) |
$ |
2,647 |
$ |
— |
$ |
(6,425) |
|||||||
|
Basic net income (loss) per common share |
|||||||||||||||
|
Continuing operations |
$ |
(0.11) |
|||||||||||||
|
Discontinued operations |
0.05 |
||||||||||||||
|
Basic net loss per common share |
$ |
(0.06) |
|||||||||||||
|
Weighted average basic shares outstanding |
112,232 |
||||||||||||||
|
Diluted net income (loss) per common share |
|||||||||||||||
|
Continuing operations |
$ |
(0.11) |
|||||||||||||
|
Discontinued operations |
0.05 |
||||||||||||||
|
Diluted net per common share |
$ |
(0.06) |
|||||||||||||
|
Weighted average diluted shares outstanding |
112,232 |
||||||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||
|
Condensed Consolidating Statements of Operations | |||||||||||||||
|
Six Months Ended June 30, 2016 | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Boyd Gaming | |||||||||||||||
|
(In thousands, except per share data) |
ExcludingPeninsulaSegment |
PeninsulaSegment |
Eliminations |
Consolidated | |||||||||||
|
Revenues |
|||||||||||||||
|
Gaming |
$ |
684,078 |
$ |
231,401 |
$ |
— |
$ |
915,479 |
|||||||
|
Food and beverage |
134,256 |
18,442 |
— |
152,698 |
|||||||||||
|
Room |
85,240 |
— |
— |
85,240 |
|||||||||||
|
Other |
61,940 |
8,789 |
(9,570) |
61,159 |
|||||||||||
|
Gross revenues |
965,514 |
258,632 |
(9,570) |
1,214,576 |
|||||||||||
|
Less promotional allowances |
107,771 |
9,553 |
— |
117,324 |
|||||||||||
|
Net revenues |
857,743 |
249,079 |
(9,570) |
1,097,252 |
|||||||||||
|
Operating costs and expenses |
|||||||||||||||
|
Gaming |
333,785 |
107,508 |
— |
441,293 |
|||||||||||
|
Food and beverage |
71,376 |
12,543 |
— |
83,919 |
|||||||||||
|
Room |
21,792 |
— |
— |
21,792 |
|||||||||||
|
Other |
33,259 |
14,470 |
(9,570) |
38,159 |
|||||||||||
|
Selling, general and administrative |
134,814 |
26,039 |
— |
160,853 |
|||||||||||
|
Maintenance and utilities |
42,571 |
6,286 |
— |
48,857 |
|||||||||||
|
Depreciation and amortization |
68,640 |
27,263 |
— |
95,903 |
|||||||||||
|
Corporate expense |
33,207 |
799 |
— |
34,006 |
|||||||||||
|
Project development, preopening and writedowns |
7,434 |
304 |
— |
7,738 |
|||||||||||
|
Impairments of assets |
1,440 |
— |
— |
1,440 |
|||||||||||
|
Other operating items, net |
500 |
52 |
— |
552 |
|||||||||||
|
Total operating costs and expenses |
748,818 |
195,264 |
(9,570) |
934,512 |
|||||||||||
|
Operating income |
108,925 |
53,815 |
— |
162,740 |
|||||||||||
|
Other expense (income) |
|||||||||||||||
|
Interest income |
(535) |
(921) |
— |
(1,456) |
|||||||||||
|
Interest expense, net of amounts capitalized |
79,647 |
35,305 |
— |
114,952 |
|||||||||||
|
Loss on early extinguishments of debt |
— |
846 |
— |
846 |
|||||||||||
|
Other, net |
(33) |
175 |
— |
142 |
|||||||||||
|
Total other expense, net |
79,079 |
35,405 |
— |
114,484 |
|||||||||||
|
Income before income taxes |
29,846 |
18,410 |
— |
48,256 |
|||||||||||
|
Income taxes provision |
(4,180) |
(11,209) |
— |
(15,389) |
|||||||||||
|
Income from continuing operations, net of tax |
25,666 |
7,201 |
— |
32,867 |
|||||||||||
|
Income from discontinued operations, net of tax |
30,345 |
— |
— |
30,345 |
|||||||||||
|
Net income |
$ |
56,011 |
$ |
7,201 |
$ |
— |
$ |
63,212 |
|||||||
|
Basic net income per common share |
|||||||||||||||
|
Continuing operations |
$ |
0.29 |
|||||||||||||
|
Discontinued operations |
0.27 |
||||||||||||||
|
Basic net income per common share |
$ |
0.56 |
|||||||||||||
|
Weighted average basic shares outstanding |
114,218 |
||||||||||||||
|
Diluted net income per common share |
|||||||||||||||
|
Continuing operations |
$ |
0.29 |
|||||||||||||
|
Discontinued operations |
0.26 |
||||||||||||||
|
Diluted net income per common share |
$ |
0.55 |
|||||||||||||
|
Weighted average diluted shares outstanding |
114,974 |
||||||||||||||
|
BOYD GAMING CORPORATION | |||||||||||||||
|
SUPPLEMENTAL INFORMATION | |||||||||||||||
|
Condensed Consolidating Statements of Operations | |||||||||||||||
|
Six Months Ended June 30, 2015 | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Boyd Gaming | |||||||||||||||
|
(In thousands, except per share data) |
ExcludingPeninsulaSegment |
PeninsulaSegment |
Eliminations |
Consolidated | |||||||||||
|
Revenues |
|||||||||||||||
|
Gaming |
$ |
695,361 |
$ |
237,976 |
$ |
— |
$ |
933,337 |
|||||||
|
Food and beverage |
134,512 |
19,693 |
— |
154,205 |
|||||||||||
|
Room |
81,685 |
— |
— |
81,685 |
|||||||||||
|
Other |
61,363 |
8,845 |
(9,881) |
60,327 |
|||||||||||
|
Gross revenues |
972,921 |
266,514 |
(9,881) |
1,229,554 |
|||||||||||
|
Less promotional allowances |
109,126 |
9,983 |
— |
119,109 |
|||||||||||
|
Net revenues |
863,795 |
256,531 |
(9,881) |
1,110,445 |
|||||||||||
|
Operating costs and expenses |
|||||||||||||||
|
Gaming |
341,246 |
110,137 |
— |
451,383 |
|||||||||||
|
Food and beverage |
71,754 |
12,726 |
— |
84,480 |
|||||||||||
|
Room |
20,729 |
— |
— |
20,729 |
|||||||||||
|
Other |
34,023 |
15,248 |
(9,881) |
39,390 |
|||||||||||
|
Selling, general and administrative |
136,456 |
26,246 |
— |
162,702 |
|||||||||||
|
Maintenance and utilities |
45,406 |
6,529 |
— |
51,935 |
|||||||||||
|
Depreciation and amortization |
69,817 |
34,089 |
— |
103,906 |
|||||||||||
|
Corporate expense |
36,252 |
752 |
— |
37,004 |
|||||||||||
|
Project development, preopening and writedowns |
2,051 |
653 |
— |
2,704 |
|||||||||||
|
Impairments of assets |
1,065 |
— |
— |
1,065 |
|||||||||||
|
Other operating items, net |
70 |
100 |
— |
170 |
|||||||||||
|
Total operating costs and expenses |
758,869 |
206,480 |
(9,881) |
955,468 |
|||||||||||
|
Operating income |
104,926 |
50,051 |
— |
154,977 |
|||||||||||
|
Other expense (income) |
|||||||||||||||
|
Interest income |
(4) |
(932) |
— |
(936) |
|||||||||||
|
Interest expense, net of amounts capitalized |
76,971 |
37,095 |
114,066 |
||||||||||||
|
Loss on early extinguishments of debt |
30,008 |
1,462 |
— |
31,470 |
|||||||||||
|
Other, net |
1,702 |
186 |
— |
1,888 |
|||||||||||
|
Total other expense, net |
108,677 |
37,811 |
— |
146,488 |
|||||||||||
|
Income before income taxes |
(3,751) |
12,240 |
— |
8,489 |
|||||||||||
|
Income taxes benefit (provision) |
18,622 |
(8,997) |
— |
9,625 |
|||||||||||
|
Income from continuing operations, net of tax |
14,871 |
3,243 |
— |
18,114 |
|||||||||||
|
Income from discontinued operations, net of tax |
10,564 |
— |
— |
10,564 |
|||||||||||
|
Net income |
$ |
25,435 |
$ |
3,243 |
$ |
— |
$ |
28,678 |
|||||||
|
Basic net income per common share |
|||||||||||||||
|
Continuing operations |
$ |
0.17 |
|||||||||||||
|
Discontinued operations |
0.09 |
||||||||||||||
|
Basic net income per common share |
$ |
0.26 |
|||||||||||||
|
Weighted average basic shares outstanding |
111,841 |
||||||||||||||
|
Diluted net income per common share |
|||||||||||||||
|
Continuing operations |
$ |
0.16 |
|||||||||||||
|
Discontinued operations |
0.09 |
||||||||||||||
|
Diluted net income per common share |
$ |
0.25 |
|||||||||||||
|
Weighted average diluted shares outstanding |
112,694 |
||||||||||||||
|
MARINA DISTRICT DEVELOPMENT COMPANY, LLC | |||||||||||||||
|
dba BORGATA HOTEL CASINO AND SPA | |||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
June 30, |
June 30, | ||||||||||||||
|
(In thousands) |
2016 |
2015 |
2016 |
2015 | |||||||||||
|
Revenues |
|||||||||||||||
|
Gaming |
$ |
180,987 |
$ |
170,277 |
$ |
355,000 |
$ |
335,405 |
|||||||
|
Food and beverage |
38,002 |
36,392 |
71,760 |
70,860 |
|||||||||||
|
Room |
31,050 |
30,349 |
59,678 |
57,953 |
|||||||||||
|
Other |
10,138 |
10,397 |
19,265 |
18,907 |
|||||||||||
|
Gross revenues |
260,177 |
247,415 |
505,703 |
483,125 |
|||||||||||
|
Less promotional allowances |
56,830 |
56,252 |
112,063 |
109,373 |
|||||||||||
|
Net revenues |
203,347 |
191,163 |
393,640 |
373,752 |
|||||||||||
|
Operating costs and expenses |
|||||||||||||||
|
Gaming |
67,233 |
67,057 |
135,026 |
133,976 |
|||||||||||
|
Food and beverage |
19,135 |
19,147 |
35,919 |
36,834 |
|||||||||||
|
Room |
3,671 |
3,799 |
6,940 |
7,059 |
|||||||||||
|
Other |
8,768 |
9,590 |
16,091 |
16,344 |
|||||||||||
|
Selling, general and administrative |
28,804 |
32,523 |
64,226 |
66,676 |
|||||||||||
|
Maintenance and utilities |
14,973 |
14,520 |
29,340 |
30,511 |
|||||||||||
|
Depreciation and amortization |
14,638 |
14,791 |
28,987 |
29,590 |
|||||||||||
|
Preopening expenses |
242 |
— |
313 |
— |
|||||||||||
|
Other operating items, net |
(7,269) |
(441) |
(14,027) |
(765) |
|||||||||||
|
Total operating costs and expenses |
150,195 |
160,986 |
302,815 |
320,225 |
|||||||||||
|
Operating income |
53,152 |
30,177 |
90,825 |
53,527 |
|||||||||||
|
Other expense |
|||||||||||||||
|
Interest expense, net of amounts capitalized |
11,125 |
16,307 |
22,880 |
32,964 |
|||||||||||
|
Loss on early extinguishments of debt |
903 |
543 |
1,228 |
1,035 |
|||||||||||
|
Total other expense |
12,028 |
16,850 |
24,108 |
33,999 |
|||||||||||
|
Income before state income taxes |
41,124 |
13,327 |
66,717 |
19,528 |
|||||||||||
|
State income tax benefit (expense) |
(3,736) |
(1,374) |
(6,068) |
453 |
|||||||||||
|
Net income |
$ |
37,388 |
$ |
11,953 |
$ |
60,649 |
$ |
19,981 |
|||||||
|
Reconciliation of Adjusted EBITDA to Operating Income | |||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
June 30, |
June 30, | ||||||||||||||
|
(In thousands) |
2016 |
2015 |
2016 |
2015 | |||||||||||
|
Adjusted EBITDA |
$ |
60,763 |
$ |
44,527 |
$ |
106,098 |
$ |
82,352 |
|||||||
|
Less: |
|||||||||||||||
|
Depreciation and amortization |
14,638 |
14,791 |
28,987 |
29,590 |
|||||||||||
|
Preopening expenses |
242 |
— |
313 |
— |
|||||||||||
|
Other operating items, net |
(7,269) |
(441) |
(14,027) |
(765) |
|||||||||||
|
Operating income |
$ |
53,152 |
$ |
30,177 |
$ |
90,825 |
$ |
53,527 |
|||||||
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. We do not provide a reconciliation of forward-looking non-GAAP financial measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.
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 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, share-based compensation expense, project development, preopening and write-down expenses, impairments of assets, loss on early extinguishments of debt and other operating items, net.
Adjusted Earnings and Adjusted EPS
Adjusted Earnings is net income (loss) before project development, preopening and write-down expenses, impairments of assets, certain adjustments to property tax accruals, other items, net, gain or loss on early extinguishments of debt, other non-recurring adjustments, net, the impact on Boyd's income tax provision of tax audit settlements, and income from discontinued operations, net of tax. 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.
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 historical 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 historical 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 InformationThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding: the Company's pending acquisitions, continued growth, strengthening the Company's financial foundation, long-term growth trends throughout southern Nevada, optimism for long-term prospects for the business, the high-growth locals market, progress on the Company's strategic growth plan, and all of the statements under the heading "Full-Year 2016 Guidance." 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: failure of the Company's pending acquisitions to close, or to close when anticipated; fluctuations in the Company's operating results; recovery of its properties in various markets; the state of the economy and its effect on consumer spending and the Company's results of operations; the timing for economic recovery, its effect on the Company's business and the local economies where the Company's properties are located; the receipt of legislative, and other state, federal and local approvals for the Company's development projects; 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, 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 GamingHeadquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 21 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana and Mississippi. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.
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SOURCE Boyd Gaming Corporation