News Releases
LAS VEGAS, May 4 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the first quarter ended March 31, 2010.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030219/BOYDLOGO)
For the quarter, we reported net income of $8.4 million, or $0.10 per share, compared to a loss of $13.8 million, or $0.16 per share, in the same period last year.
Adjusted Earnings(1) for the first quarter 2010 were $8.9 million, or $0.10 per share, compared to $13.0 million, or $0.15 per share, for the same period in 2009. The first quarter 2009 included certain pre-tax adjustments resulting in a net reduction of income by $41.5 million ($26.8 million, net of tax, or $0.31 per share). Pre-tax adjustments in the first quarter 2010 and 2009 are listed in a table at the end of this press release.
Net revenues(1) were $398.4 million for the first quarter 2010, compared to $434.8 million for the same quarter in 2009, a decrease of 8.4%. Total Adjusted EBITDA(1) was $87.4 million for the quarter, down 20.2% from $109.6 million in the prior year.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented on the quarter: "We continue to be encouraged by improving trends in our business, which clearly reflect the signs of an emerging recovery. Our Las Vegas Locals market reported the best year-over-year comparison in nearly two years, and business levels are returning to normal seasonal patterns in this region. Given the positive developments in our business, combined with continued improvement in the national economy, we expect to generate year-over-year growth during the second half of 2010."
(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 our Las Vegas Locals segment, first quarter 2010 net revenues were $156.6 million versus $170.1 million for the first quarter 2009. First quarter 2010 Adjusted EBITDA was $40.4 million, a 10.8% decrease from the $45.3 million in the same quarter 2009. While conditions remain challenging in the region, the fundamentals of our business are strengthening, and we saw sequential improvement in this region for the second straight quarter.
Downtown
Our Downtown Las Vegas properties generated net revenues of $54.0 million, compared to $58.7 million in the first quarter 2009. Adjusted EBITDA for the first quarter 2010 was $8.4 million, down 37.3% from $13.4 million in the first quarter 2009. Results reflect lower ticket pricing and higher fuel costs associated with our Hawaiian charter operation, as well as lower Downtown visitor volumes.
Midwest and South
In our Midwest and South region, we recorded $187.8 million in net revenues for the first quarter 2010, compared to $206.1 million for the same period in 2009. Adjusted EBITDA for the current period was $38.6 million, a decrease of 19.7% from the $48.0 million reported in the first quarter of 2009. Regional results were impacted by declines at our Louisiana properties as the market continues to normalize, partially offset by Adjusted EBITDA growth in Illinois and Indiana.
Borgata
Borgata's operating income for the first quarter 2010 was $19.6 million versus $25.5 million for the first quarter 2009. Net revenues for Borgata were $175.1 million for the first quarter 2010, compared to the $187.9 million recorded in the same quarter in 2009. Adjusted EBITDA was $38.0 million, a decrease of 17.2% from the $45.9 million generated in the first quarter 2009. The decline was principally due to reductions in visitation caused by severe winter weather, which impacted the property repeatedly throughout the first quarter.
Key Financial Statistics
The following is additional information as of and for the three months ended March 31, 2010:
- Cash, excluding Borgata: $82.2 million
- Cash at Borgata: $26.0 million
- Debt, excluding Borgata: $2.57 billion
- Debt at Borgata: $630.3 million
Conference Call Information
We will host our first quarter 2010 conference call today, May 4 at 12:00 p.m. Eastern. The conference call number is 888.713.4205 and the passcode is 70867693. 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://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=95703&eventID=3046104
Following the call's completion, a replay will be available by dialing 888.286.8010 today, beginning two hours after the completion of the call and continuing through Tuesday, May 11. The passcode for the replay will be 54017432. The replay will also be available on the Internet at www.boydgaming.com .
The results for the three months ended March 31, 2010, as reported in the table below, reflect our 50% of the equity earnings of Borgata for the period from January 1, 2010 through March 23, 2010 and the results of the consolidation of Borgata for the period from March 24, 2010 through March 31, 2010, which is the proper presentation in accordance with GAAP. For simplicity, because this period is not comparable to the equity method reporting for Borgata's results in the prior quarter, and because the consolidation occurred relatively late in the current quarter, throughout the text of our press release, we have discussed our operating results and those of Borgata as if the eight days of consolidation had not occurred. The succeeding table sets forth a reconciliation between the amounts reported in accordance with GAAP, which include the consolidation of Borgata for the period from March 24 to March 31, 2010 and the results using the equity method for the entire three months ended March 31, 2010, comparable with the three months ended March 31, 2009.
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
|
Revenues
|
|
(In thousands)
|
|
|
Gaming
|
|
$ 350,405
|
|
$ 366,063
|
|
|
Food and beverage
|
|
59,982
|
|
59,041
|
|
|
Room
|
|
31,434
|
|
30,641
|
|
|
Other
|
|
23,822
|
|
26,935
|
|
|
Gross revenues
|
|
465,643
|
|
482,680
|
|
|
Less promotional allowances
|
|
50,508
|
|
47,835
|
|
|
Net revenues
|
|
415,135
|
|
434,845
|
|
| |
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
Gaming
|
|
168,105
|
|
172,912
|
|
|
Food and beverage
|
|
32,642
|
|
31,384
|
|
|
Room
|
|
10,050
|
|
9,957
|
|
|
Other
|
|
19,238
|
|
19,314
|
|
|
Selling, general and administrative
|
|
70,278
|
|
73,973
|
|
|
Maintenance and utilities
|
|
24,139
|
|
22,386
|
|
|
Depreciation and amortization
|
|
40,046
|
|
42,652
|
|
|
Corporate expense
|
|
12,089
|
|
12,685
|
|
|
Preopening expenses
|
|
1,063
|
|
5,839
|
|
|
Write-downs and other charges
|
|
1,601
|
|
28,963
|
|
|
Total costs and expenses
|
|
379,251
|
|
420,065
|
|
| |
|
|
|
|
|
|
Operating income from Borgata
|
|
8,146
|
|
12,422
|
|
|
Operating income
|
|
44,030
|
|
27,202
|
|
| |
|
|
|
|
|
|
Other expense (income)
|
|
|
|
|
|
|
Interest income
|
|
(4)
|
|
(4)
|
|
|
Interest expense, net of amounts capitalized
|
|
29,007
|
|
45,271
|
|
|
Gain on early retirements of debt
|
|
(2,037)
|
|
(2,400)
|
|
|
Other non-operating expenses from Borgata, net
|
|
3,133
|
|
4,522
|
|
|
Total other expense, net
|
|
30,099
|
|
47,389
|
|
| |
|
|
|
|
|
|
Income (loss) before income taxes
|
|
13,931
|
|
(20,187)
|
|
|
Income taxes
|
|
(4,249)
|
|
6,359
|
|
|
Net income (loss)
|
|
9,682
|
|
(13,828)
|
|
|
Noncontrolling interest
|
|
(1,247)
|
|
-
|
|
|
Net income (loss) attributable to Boyd Gaming Corporation
|
|
$ 8,435
|
|
$ (13,828)
|
|
| |
|
|
|
|
|
|
Basic and diluted net income (loss) per common share
|
|
$ 0.10
|
|
$ (0.16)
|
|
| |
|
|
|
|
|
|
Weighted average basic shares outstanding
|
|
86,430
|
|
86,931
|
|
| |
|
|
|
|
|
|
Diluted net income (loss) per common share
|
|
$ 0.10
|
|
$ (0.16)
|
|
| |
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
86,601
|
|
86,931
|
|
| |
|
|
|
|
The following table sets forth a reconciliation between the statement of operations reported in accordance with GAAP, as presented above, and the operating results discussed in our earnings release. The reconciliation shows the effect of the consolidation of Borgata for the period from March 24 to March 31, 2010 as compared to the results using the equity method for the entire three months ended March 31, 2010, The "As Reported" presentation had no effect on net income or net income per share as computed in accordance with GAAP.
| |
|
Three Months Ended March 31, 2010
|
|
| |
|
Boyd Gaming Corp
|
|
MDDC LLC
|
|
|
|
Boyd Gaming Corp
|
|
| |
|
As Reported
|
|
3/24/2010 to 3/31/2010
|
|
Adjustments
|
|
GAAP
|
|
| |
|
(In thousands, except share and per share data)
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
$ 334,460
|
|
$ 15,945
|
|
$ -
|
|
$ 350,405
|
|
|
Food and beverage
|
|
56,836
|
|
3,146
|
|
-
|
|
59,982
|
|
|
Room
|
|
29,186
|
|
2,248
|
|
-
|
|
31,434
|
|
|
Other
|
|
23,158
|
|
664
|
|
-
|
|
23,822
|
|
|
Gross revenues
|
|
443,640
|
|
22,003
|
|
-
|
|
465,643
|
|
|
Less promotional allowances
|
|
45,281
|
|
5,227
|
|
-
|
|
50,508
|
|
|
Net revenues
|
|
398,359
|
|
16,776
|
|
-
|
|
415,135
|
|
| |
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
163,980
|
|
4,125
|
|
-
|
|
168,105
|
|
|
Food and beverage
|
|
30,172
|
|
2,470
|
|
-
|
|
32,642
|
|
|
Room
|
|
9,285
|
|
765
|
|
-
|
|
10,050
|
|
|
Other
|
|
18,660
|
|
578
|
|
-
|
|
19,238
|
|
|
Selling, general and administrative
|
|
68,819
|
|
1,459
|
|
-
|
|
70,278
|
|
|
Maintenance and utilities
|
|
21,663
|
|
2,476
|
|
-
|
|
24,139
|
|
|
Depreciation and amortization
|
|
38,421
|
|
1,625
|
|
-
|
|
40,046
|
|
|
Corporate expense
|
|
12,089
|
|
|
|
-
|
|
12,089
|
|
|
Preopening expenses
|
|
1,063
|
|
-
|
|
-
|
|
1,063
|
|
|
Write-downs and other charges
|
|
1,601
|
|
-
|
|
-
|
|
1,601
|
|
|
Total costs and expenses
|
|
365,753
|
|
13,498
|
|
-
|
|
379,251
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating income from Borgata
|
|
9,785
|
|
-
|
|
(1,639)
|
|
8,146
|
|
|
Operating income
|
|
42,391
|
|
3,278
|
|
(1,639)
|
|
44,030
|
|
| |
|
|
|
|
|
|
|
|
|
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
(4)
|
|
|
|
|
|
(4)
|
|
|
Interest expense, net of amounts capitalized
|
|
28,523
|
|
484
|
|
-
|
|
29,007
|
|
|
Gain on early retirements of debt
|
|
(2,037)
|
|
|
|
|
|
(2,037)
|
|
|
Other non-operating expenses from Borgata, net
|
|
3,525
|
|
-
|
|
(392)
|
|
3,133
|
|
|
Total other expense, net
|
|
30,007
|
|
484
|
|
(392)
|
|
30,099
|
|
| |
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
12,384
|
|
2,794
|
|
(1,247)
|
|
13,931
|
|
|
Income taxes
|
|
(3,949)
|
|
(300)
|
|
-
|
|
(4,249)
|
|
|
Net income
|
|
8,435
|
|
2,494
|
|
(1,247)
|
|
9,682
|
|
|
Noncontrolling interest
|
|
-
|
|
-
|
|
(1,247)
|
|
(1,247)
|
|
|
Net income attributable to Boyd Gaming Corporation
|
|
$ 8,435
|
|
$ 2,494
|
|
$ (2,494)
|
|
$ 8,435
|
|
| |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per common share
|
|
$ 0.10
|
|
|
|
|
|
$ 0.10
|
|
| |
|
|
|
|
|
|
|
|
|
|
Weighted average basic and diluted shares outstanding
|
|
86,430
|
|
|
|
|
|
86,430
|
|
| |
|
|
|
|
|
|
|
|
|
|
Diluted net income per common share
|
|
$ 0.10
|
|
|
|
|
|
$ 0.10
|
|
| |
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
86,601
|
|
|
|
|
|
86,601
|
|
| |
|
|
|
|
|
|
|
|
The following table reconciles the net income (loss) in accordance with GAAP to adjusted earnings and adjusted earnings per share.
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Net income (loss)
|
|
$ 8,435
|
|
$ (13,828)
|
|
|
Adjustments:
|
|
|
|
|
|
|
Preopening expenses
|
|
1,063
|
|
5,839
|
|
|
Our share of Borgata's preopening expenses
|
|
-
|
|
176
|
|
|
Our share of Borgata's write-downs and other items, net
|
|
34
|
|
(5)
|
|
|
Gain on early retirements of debt
|
|
(2,037)
|
|
(2,400)
|
|
|
Write-downs and other charges
|
|
1,601
|
|
28,963
|
|
|
Prior period interest expense related to the finalization
|
|
|
|
|
|
|
of our purchase price for Dania Jai-Alai
|
|
-
|
|
8,883
|
|
|
Income tax effect for above adjustments
|
|
(234)
|
|
(14,626)
|
|
|
Adjusted earnings
|
|
$ 8,862
|
|
$ 13,002
|
|
| |
|
|
|
|
|
|
Adjusted earnings per diluted share (Adjusted EPS)
|
|
$ 0.10
|
|
$ 0.15
|
|
| |
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
86,601
|
|
86,931
|
|
| |
|
|
|
|
The following table illustrates the impact of the above adjustments on earnings per share.
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Diluted Net income (loss) per common share
|
|
$ 0.10
|
|
$ (0.16)
|
|
|
Adjustments:
|
|
|
|
|
|
|
Preopening expenses
|
|
0.01
|
|
0.07
|
|
|
Our share of Borgata's preopening expenses
|
|
-
|
|
-
|
|
|
Our share of Borgata's write-downs and other items, net
|
|
-
|
|
-
|
|
|
Gain on early retirements of debt
|
|
(0.02)
|
|
(0.03)
|
|
|
Write-downs and other charges
|
|
0.02
|
|
0.34
|
|
|
Prior period interest expense related to the finalization
|
|
|
|
|
|
|
of our purchase price for Dania Jai-Alai
|
|
-
|
|
0.10
|
|
|
Income tax effect for above adjustments
|
|
(0.01)
|
|
(0.17)
|
|
|
Adjusted earnings per diluted share (Adjusted EPS)
|
|
$ 0.10
|
|
$ 0.15
|
|
| |
|
|
|
|
|
| |
|
|
|
|
The following table sets forth a reconciliation between adjusted earnings to net income. The reconciliation shows the effect of the consolidation of Borgata for the period from March 24 to March 31, 2010 as compared to the results using the equity method for the entire three months ended March 31, 2010.
| |
|
|
Three Months Ended March 31, 2010
|
|
| |
|
|
Boyd Gaming Corp
|
|
MDDC LLC
|
|
|
|
Boyd Gaming Corp
|
|
| |
|
|
As Reported
|
|
3/24/2010 to 3/31/2010
|
|
Adjustments
|
|
GAAP
|
|
| |
|
|
(In thousands, except share and per share data)
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 8,435
|
|
$ 2,494
|
|
$ (1,247)
|
|
$ 9,682
|
|
|
Noncontrolling interest
|
|
-
|
|
-
|
|
(1,247)
|
|
(1,247)
|
|
|
Net income attributable to Boyd Gaming Corporation
|
|
8,435
|
|
2,494
|
|
(2,494)
|
|
8,435
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Preopening expenses
|
|
1,063
|
|
-
|
|
-
|
|
1,063
|
|
|
Our share of Borgata's write-downs and other charges, net
|
|
34
|
|
-
|
|
(34)
|
|
-
|
|
|
Gain on early retirements of debt
|
|
(2,037)
|
|
-
|
|
-
|
|
(2,037)
|
|
|
Write-downs and other charges
|
|
1,601
|
|
-
|
|
-
|
|
1,601
|
|
|
Income tax effect for above adjustments
|
|
(234)
|
|
-
|
|
-
|
|
(234)
|
|
|
Adjusted earnings
|
|
$ 8,862
|
|
$ 2,494
|
|
$ (2,528)
|
|
$ 8,828
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per diluted share (Adjusted EPS)
|
|
$ 0.10
|
|
|
|
|
|
$ 0.10
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
86,601
|
|
|
|
|
|
86,601
|
|
| |
|
|
|
|
|
|
|
|
|
The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Adjusted EBITDA to net income (loss) for the three months ended March 31, 2010 and 2009. Note that in the Company's periodic reports filed with the Securities and Exchange Commission, the results from Dania Jai-Alai and corporate expense are classified as part of total other operating costs and expenses and are not included in Reportable Segment Adjusted EBITDA. Additionally, the results for the three months ended March 31, 2010, as reported in the table below, reflect 50% of the equity earnings of Borgata for the entire three months ended March 31, 2010 (despite the consolidation effective on March 24, 2010), which is reconciled to the GAAP presentation in the next succeeding table.
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
|
Net Revenues
|
|
(In thousands)
|
|
|
Las Vegas Locals
|
|
$ 156,572
|
|
$ 170,099
|
|
|
Downtown Las Vegas (a)
|
|
54,007
|
|
58,665
|
|
|
Midwest and South
|
|
187,780
|
|
206,081
|
|
|
Net revenues
|
|
$ 398,359
|
|
$ 434,845
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
Las Vegas Locals
|
|
$ 40,413
|
|
$ 45,320
|
|
|
Downtown Las Vegas
|
|
8,372
|
|
13,354
|
|
|
Midwest and South
|
|
38,580
|
|
48,021
|
|
|
Wholly-owned property Adjusted EBITDA
|
|
87,365
|
|
106,695
|
|
|
Corporate expense (c)
|
|
(9,750)
|
|
(9,980)
|
|
|
Wholly-owned Adjusted EBITDA
|
|
77,615
|
|
96,715
|
|
|
Our share of Borgata's operating income before net
|
|
|
|
|
|
|
amortization, preopening and other items (d)
|
|
9,819
|
|
12,917
|
|
|
Adjusted EBITDA (e)
|
|
87,434
|
|
109,632
|
|
|
Other operating costs and expenses
|
|
|
|
|
|
|
Deferred rent
|
|
1,068
|
|
1,089
|
|
|
Depreciation and amortization (f)
|
|
38,421
|
|
42,976
|
|
|
Preopening expenses
|
|
1,063
|
|
5,839
|
|
|
Our share of Borgata's preopening expenses
|
|
-
|
|
176
|
|
|
Our share of Borgata's write-downs and other items, net
|
|
34
|
|
(5)
|
|
|
Share-based compensation expense
|
|
2,856
|
|
3,392
|
|
|
Write-downs and other charges
|
|
1,601
|
|
28,963
|
|
|
Total other operating costs and expenses
|
|
45,043
|
|
82,430
|
|
|
Operating income
|
|
42,391
|
|
27,202
|
|
|
Other non-operating items
|
|
|
|
|
|
|
Interest expense, net (b)
|
|
28,519
|
|
45,267
|
|
|
Gain on early retirements of debt
|
|
(2,037)
|
|
(2,400)
|
|
|
Our share of Borgata's non-operating expenses, net
|
|
3,525
|
|
4,522
|
|
|
Total other non-operating costs and expenses, net
|
|
30,007
|
|
47,389
|
|
|
Income (loss) before income taxes
|
|
12,384
|
|
(20,187)
|
|
|
Income taxes
|
|
(3,949)
|
|
6,359
|
|
|
Net income (loss)
|
|
$ 8,435
|
|
$ (13,828)
|
|
| |
|
|
|
|
The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Net Revenues and Adjusted EBITDA to net income (loss) for the three months ended March 31, 2010 and 2009. The results for the three months ended March 31, 2010, as reported in the GAAP column of the table below, reflect our 50% of the equity earnings of Borgata for the period from January 1, 2010 through March 23, 2010 and the results of the consolidation of Borgata for the period from March 24, 2010 through March 31, 2010.
| |
|
|
Three Months Ended March 31, 2010
|
|
| |
|
|
Boyd Gaming Corp
|
|
MDDC LLC
|
|
|
|
Boyd Gaming Corp
|
|
| |
|
|
As Reported
|
|
3/24/2010 to 3/31/2010
|
|
Adjustments
|
|
GAAP
|
|
| |
|
|
(In thousands, except share and per share data)
|
|
|
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
Las Vegas Locals
|
|
$ 156,572
|
|
$ -
|
|
$ -
|
|
$ 156,572
|
|
|
Downtown Las Vegas (a)
|
|
54,007
|
|
-
|
|
-
|
|
54,007
|
|
|
Midwest and South
|
|
187,780
|
|
-
|
|
-
|
|
187,780
|
|
|
Atlantic City
|
|
-
|
|
16,776
|
|
-
|
|
16,776
|
|
|
Net revenues
|
|
$ 398,359
|
|
$ 16,776
|
|
$ -
|
|
$ 415,135
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
Las Vegas Locals
|
|
$ 40,413
|
|
$ -
|
|
$ -
|
|
$ 40,413
|
|
|
Downtown Las Vegas
|
|
8,372
|
|
-
|
|
-
|
|
8,372
|
|
|
Midwest and South
|
|
38,580
|
|
-
|
|
-
|
|
38,580
|
|
|
Atlantic City
|
|
-
|
|
4,903
|
|
-
|
|
4,903
|
|
|
Property Adjusted EBITDA
|
|
87,365
|
|
4,903
|
|
-
|
|
92,268
|
|
|
Corporate expense (c)
|
|
(9,750)
|
|
-
|
|
-
|
|
(9,750)
|
|
| |
|
|
77,615
|
|
4,903
|
|
-
|
|
82,518
|
|
|
Our share of Borgata's operating income before net
|
|
|
|
|
|
|
|
|
|
|
amortization, preopening and other items (d)
|
|
9,819
|
|
-
|
|
(1,673)
|
|
8,146
|
|
|
Adjusted EBITDA (e)
|
|
87,434
|
|
4,903
|
|
(1,673)
|
|
90,664
|
|
|
Other operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
Deferred rent
|
|
1,068
|
|
-
|
|
-
|
|
1,068
|
|
|
Depreciation and amortization (f)
|
|
38,421
|
|
1,625
|
|
-
|
|
40,046
|
|
|
Preopening expenses
|
|
1,063
|
|
-
|
|
-
|
|
1,063
|
|
|
Our share of Borgata's preopening expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Our share of Borgata's write-downs and other charges, net
|
|
34
|
|
-
|
|
(34)
|
|
-
|
|
|
Share-based compensation expense
|
|
2,856
|
|
-
|
|
-
|
|
2,856
|
|
|
Write-downs and other charges
|
|
1,601
|
|
-
|
|
-
|
|
1,601
|
|
|
Total other operating costs and expenses
|
|
45,043
|
|
1,625
|
|
(34)
|
|
46,634
|
|
|
Operating income
|
|
42,391
|
|
3,278
|
|
(1,639)
|
|
44,030
|
|
|
Other non-operating items
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net (b)
|
|
28,519
|
|
484
|
|
-
|
|
29,003
|
|
|
Gain on early retirements of debt
|
|
(2,037)
|
|
-
|
|
-
|
|
(2,037)
|
|
|
Our share of Borgata's non-operating expenses, net
|
|
3,525
|
|
-
|
|
(392)
|
|
3,133
|
|
|
Total other non-operating costs and expenses, net
|
|
30,007
|
|
484
|
|
(392)
|
|
30,099
|
|
|
Income before income taxes
|
|
12,384
|
|
2,794
|
|
(1,247)
|
|
13,931
|
|
|
Income taxes
|
|
(3,949)
|
|
(300)
|
|
-
|
|
(4,249)
|
|
|
Net income
|
|
8,435
|
|
2,494
|
|
(1,247)
|
|
9,682
|
|
|
Noncontrolling interest
|
|
-
|
|
-
|
|
(1,247)
|
|
(1,247)
|
|
|
Net income attributable to Boyd Gaming Corporation
|
|
$ 8,435
|
|
$ 2,494
|
|
$ (2,494)
|
|
$ 8,435
|
|
| |
|
|
|
|
|
|
|
|
|
|
(a) Includes revenues related to Vacations Hawaii and other travel related entities of $7.4 million and $8.7 million for the three months ended March 31, 2010 and 2009, respectively.
(b) Net of interest income and amounts capitalized.
(c) The following table reconciles the presentation of corporate expense on our condensed consolidated statements of operations to the presentation on the accompanying table.
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Corporate expense as reported on our condensed
|
|
|
|
|
|
|
consolidated statements of operations
|
|
$ 12,089
|
|
$ 12,685
|
|
|
Corporate share-based compensation expense
|
|
(2,339)
|
|
(2,705)
|
|
|
Corporate expense as reported on the accompanying table
|
|
$ 9,750
|
|
$ 9,980
|
|
| |
|
|
|
|
|
|
(d) The following table reconciles the presentation of our share of Borgata's operating income on our condensed consolidated statements of operations to the presentation of our share of Borgata's results on the accompanying table.
|
|
| |
|
|
|
|
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Operating income from Borgata, as reported on our
|
|
|
|
|
|
|
condensed consolidated statements of operations
|
|
$ 8,146
|
|
$ 12,422
|
|
|
Add back:
|
|
|
|
|
|
|
Borgata's operating results for the period of
|
|
|
|
|
|
|
March 24, 2010 to March 31, 2010
|
|
1,673
|
|
-
|
|
|
Net amortization expense related to our
|
|
|
|
|
|
|
investment in Borgata
|
|
-
|
|
324
|
|
|
Our share of preopening expenses
|
|
-
|
|
176
|
|
|
Our share of write-downs and other items, net
|
|
-
|
|
(5)
|
|
|
Our share of Borgata's operating income before net
|
|
|
|
|
|
|
amortization, preopening and other items
|
|
|
|
|
|
|
as reported on the accompanying table
|
|
$ 9,819
|
|
$ 12,917
|
|
| |
|
|
|
|
|
|
(e) The following table reconciles Adjusted EBITDA to EBITDA and net income (loss).
|
|
| |
|
|
|
|
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Adjusted EBITDA
|
|
$ 87,434
|
|
$ 109,632
|
|
|
Deferred rent
|
|
1,068
|
|
1,089
|
|
|
Preopening expenses
|
|
1,063
|
|
5,839
|
|
|
Our share of Borgata's preopening expenses
|
|
-
|
|
176
|
|
|
Our share of Borgata's write-downs and other items, net
|
|
34
|
|
(5)
|
|
|
Share-based compensation expense
|
|
2,856
|
|
3,392
|
|
|
Write-downs and other charges
|
|
1,601
|
|
28,963
|
|
|
Gain on early retirements of debt
|
|
(2,037)
|
|
(2,400)
|
|
|
Our share of Borgata's non-operating expenses, net
|
|
3,525
|
|
4,522
|
|
|
EBITDA
|
|
79,324
|
|
68,056
|
|
|
Depreciation and amortization
|
|
38,421
|
|
42,976
|
|
|
Interest expense, net
|
|
28,519
|
|
45,267
|
|
|
Income taxes
|
|
3,949
|
|
(6,359)
|
|
| |
|
|
|
|
|
|
Net income (loss)
|
|
$ 8,435
|
|
$ (13,828)
|
|
| |
|
|
|
|
|
| |
|
|
|
|
The following table sets forth a reconciliation between Adjusted EBITDA to net income. The reconciliation shows the effect of the consolidation of Borgata for the period from March 24 to March 31, 2010 as compared to the results using the equity method for the entire three months ended March 31, 2010.
| |
|
|
Three Months Ended March 31, 2010
|
|
| |
|
|
Boyd Gaming Corp
|
|
MDDC LLC
|
|
|
|
Boyd Gaming Corp
|
|
| |
|
|
As Reported
|
|
3/24/2010 to 3/31/2010
|
|
Adjustments
|
|
GAAP
|
|
| |
|
|
(In thousands, except share and per share data)
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$ 87,434
|
|
$ 4,903
|
|
$ (1,673)
|
|
$ 90,664
|
|
|
Deferred rent
|
|
1,068
|
|
-
|
|
-
|
|
1,068
|
|
|
Preopening expenses
|
|
1,063
|
|
-
|
|
-
|
|
1,063
|
|
|
Our share of Borgata's preopening expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Our share of Borgata's write-downs and other charges, net
|
|
34
|
|
-
|
|
(34)
|
|
-
|
|
|
Share-based compensation expense
|
|
2,856
|
|
-
|
|
-
|
|
2,856
|
|
|
Write-downs and other charges
|
|
1,601
|
|
-
|
|
-
|
|
1,601
|
|
|
Gain on early retirements of debt
|
|
(2,037)
|
|
-
|
|
-
|
|
(2,037)
|
|
|
Our share of Borgata's non-operating expenses, net
|
|
3,525
|
|
-
|
|
(392)
|
|
3,133
|
|
|
EBITDA
|
|
79,324
|
|
4,903
|
|
(1,247)
|
|
82,980
|
|
|
Depreciation and amortization
|
|
38,421
|
|
1,625
|
|
-
|
|
40,046
|
|
|
Interest expense, net
|
|
28,519
|
|
484
|
|
-
|
|
29,003
|
|
|
Income taxes
|
|
3,949
|
|
300
|
|
-
|
|
4,249
|
|
|
Net income
|
|
8,435
|
|
2,494
|
|
(1,247)
|
|
9,682
|
|
|
Noncontrolling interest
|
|
-
|
|
-
|
|
(1,247)
|
|
(1,247)
|
|
|
Net income attributable to Boyd Gaming Corporation
|
|
$ 8,435
|
|
$ 2,494
|
|
$ (2,494)
|
|
$ 8,435
|
|
| |
|
|
(f) The following table reconciles the presentation of depreciation and amortization on our condensed consolidated statements of operations to the presentation on the accompanying table.
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Depreciation and amortization as reported on our
|
|
|
|
|
condensed consolidated statements of operations
|
|
$ 40,046
|
|
$ 42,652
|
|
|
Depreciation at Borgata from March 24, 2010 to March 31, 2010
|
|
(1,625)
|
|
-
|
|
|
Net amortization expense related to our investment in Borgata
|
|
-
|
|
324
|
|
|
Depreciation and amortization as reported on
|
|
|
|
|
|
|
the accompanying table
|
|
$ 38,421
|
|
$ 42,976
|
|
| |
|
|
|
|
|
| |
|
|
|
|
The following table reports Borgata's financial results.
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Gaming revenue
|
|
$ 153,776
|
|
$ 168,849
|
|
|
Non-gaming revenue
|
|
70,608
|
|
69,339
|
|
|
Gross revenues
|
|
224,384
|
|
238,188
|
|
|
Less promotional allowances
|
|
49,318
|
|
50,298
|
|
|
Net revenues
|
|
175,066
|
|
187,890
|
|
|
Operating expenses
|
|
137,049
|
|
141,964
|
|
|
Depreciation and amortization
|
|
18,379
|
|
20,091
|
|
|
Preopening expenses
|
|
-
|
|
353
|
|
|
Write-downs and other items, net
|
|
68
|
|
(10)
|
|
|
Operating income
|
|
19,570
|
|
25,492
|
|
|
Interest expense, net
|
|
(5,544)
|
|
(8,011)
|
|
|
Provision for state income taxes
|
|
(1,506)
|
|
(1,032)
|
|
|
Total non-operating expenses
|
|
(7,050)
|
|
(9,043)
|
|
|
Net income
|
|
$ 12,520
|
|
$ 16,449
|
|
| |
|
|
|
|
The following table reconciles our share of Borgata's financial results to the amounts reported on our condensed consolidated statements of operations.
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Our share of Borgata's operating income
|
|
$ 8,146
|
|
$ 12,746
|
|
|
Net amortization expense related to our
|
|
|
|
|
|
|
investment in Borgata
|
|
-
|
|
(324)
|
|
|
Operating income from Borgata, as reported on our
|
|
|
|
|
|
|
condensed consolidated statements of operations
|
|
$ 8,146
|
|
$ 12,422
|
|
| |
|
|
|
|
|
|
Other non-operating expenses from Borgata, as reported on our
|
|
|
|
|
|
|
condensed consolidated statements of operations
|
|
$ 3,133
|
|
$ 4,522
|
|
| |
|
|
|
|
The following table reconciles operating income to Adjusted EBITDA for Borgata.
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Operating income
|
|
$ 19,570
|
|
$ 25,492
|
|
|
Depreciation and amortization
|
|
18,379
|
|
20,091
|
|
|
Preopening expenses
|
|
-
|
|
353
|
|
|
Write-downs and other items, net
|
|
68
|
|
(10)
|
|
|
Adjusted EBITDA
|
|
$ 38,017
|
|
$ 45,926
|
|
| |
|
|
|
|
The following table reconciles Adjusted EBITDA to EBITDA and net income for Borgata.
| |
|
Three Months Ended
|
|
| |
|
March 31,
|
|
| |
|
2010
|
|
2009
|
|
| |
|
(In thousands)
|
|
|
Adjusted EBITDA
|
|
$ 38,017
|
|
$ 45,926
|
|
|
Preopening expenses
|
|
-
|
|
353
|
|
|
Write-downs and other items, net
|
|
68
|
|
(10)
|
|
|
EBITDA
|
|
37,949
|
|
45,583
|
|
|
Depreciation and amortization
|
|
18,379
|
|
20,091
|
|
|
Interest expense, net
|
|
5,544
|
|
8,011
|
|
|
Provision for income taxes
|
|
1,506
|
|
1,032
|
|
|
Net income
|
|
|
search blogs
share it
blog it