LAS VEGAS, April 30, 2015 /PRNewswire/ -- Boyd Gaming
Corporation (NYSE: BYD) today reported financial results for the
first quarter ended March 31,
2015.
Boyd Gaming reported first-quarter 2015 net revenues of
$550.6 million, an increase of 1.8%
compared to pro forma net revenues of $541.1
million for the same quarter in 2014. Total Adjusted
EBITDA(1) was $149.2
million, up 11.1% from the comparable pro forma amount of
$134.2 million for the year-ago
period. Effective September 30,
2014, the Company deconsolidated Borgata and is accounting
for its 50% investment in Borgata by applying the equity method for
periods subsequent to that date. The prior-year pro forma
amounts reflect the results for Borgata on a comparable equity
method basis.
Keith Smith, President and Chief
Executive Officer of Boyd Gaming, said: "In the first quarter, we
delivered broad-based EBITDA growth and margin improvement, driven
by higher revenues and more efficient operations. We
continued to make progress enhancing non-gaming amenities across
our portfolio, allowing us to further capitalize on growing
customer demand in this area. We also continued to use free cash
flow to further reduce debt during the quarter. The execution of
our Company's strategic plan is clearly improving our growth and
profit potential, and increasing long-term shareholder value."
Adjusted Earnings(1) for the first quarter 2015 were
$14.2 million, or $0.13 per share, compared to a loss of
$4.1 million, or $0.04 per share, for the same period in
2014. The calculations of Adjusted Earnings, Adjusted
Earnings per share, and pro forma results reflecting Borgata on a
comparable basis for all periods are presented in tables at the end
of this press release.
On a GAAP basis, the Company reported net income of $35.1 million, or $0.31 per share, for the first quarter 2015,
compared to a net loss of $6.2
million, or $0.06 per share,
for the year-ago period. The income tax provision for the
first quarter 2015 was favorably impacted by the settlement of the
Company's 2005 through 2009 IRS appeal, which resulted in a
$23.2 million reduction to the
Company's first quarter 2015 income tax provision. The impact
of the settlement is not included in Adjusted Earnings or Adjusted
Earnings per share.
|
(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, first-quarter 2015 net revenues were $150.3 million, compared to $151.4 million in the year-ago period.
First-quarter 2015 Adjusted EBITDA was $38.9
million, versus $40.0 million
in the first quarter of 2014. Declines in revenue and EBITDA
were the result of significant business disruption caused by an
extensive roadway project adjacent to the Suncoast, as well as
lower sports book hold related to the Super Bowl. These items
were partially offset by growth in non-gaming revenues, which
increased for the seventh consecutive quarter.
Downtown Las
Vegas
In the Downtown
Las Vegas segment, net revenues were $56.6 million in the first quarter of 2015, up
1.6% from $55.7 million in the
year-ago period. Adjusted EBITDA increased 14.5% to
$10.7 million, compared to
$9.3 million in the first quarter of
2014. Results reflect increased gaming revenues from Hawaiian
customers, continued growth in pedestrian traffic in downtown
Las Vegas, and lower fuel costs at
the Company's Hawaiian charter service.
Midwest and South; Peninsula
In the Midwest and
South segment, net revenues were $217.8
million, an increase of 2.9% from $211.6 million in the first quarter of
2014. Adjusted EBITDA increased 15.6% to $51.0 million, compared to $44.1 million in the year-ago period.
The Peninsula segment reported net revenues of $125.9 million, up 3.0% from $122.3 million in the first quarter of 2014.
Adjusted EBITDA grew 3.6% to $46.4
million, compared to $44.8
million in the year-ago period.
Positive results were driven by broad-based revenue growth and
improved operating margins. Ten of the 12 properties in the
segments generated revenue and EBITDA growth in the quarter, led by
particularly strong performances at Kansas Star, IP, Blue Chip and
Treasure Chest. Delta Downs
achieved EBITDA levels similar to last year's record performance
due to strong visitation from its core customers, despite the
introduction of significant new capacity in the market.
Borgata
Borgata reported first quarter 2015 net
revenues of $182.6 million, an
increase of 9.2% from $167.3 million
in revenues reported in the year-ago period. Adjusted EBITDA at
Borgata was $37.8 million, nearly
doubling from $20.5 million in the
year-ago period.
Due to its deconsolidation, the Company now applies the equity
method of accounting to its investment in Borgata. The
Company's share of Borgata's Adjusted EBITDA was $18.9 million for the first quarter of 2015 as
compared to pro forma Adjusted EBITDA of $10.2 million for the prior-year period.
Borgata generated a 7.4% increase in gaming revenue during the
quarter, with growth in both slot and table game win. Non-gaming
revenue grew broadly as well; the property generated an additional
14,000 hotel room nights during the first quarter, and food and
beverage revenues increased 11%. EBITDA benefitted from
revenue growth, strong flow-through, and lower property taxes.
Additionally, Borgata's online operations generated a profit for
the third consecutive quarter, generating $1.1 million in EBITDA during the first quarter
of 2015, compared to a loss of $3.2
million in the year-ago quarter.
Balance Sheet Statistics
As of March 31, 2015, Boyd Gaming had cash on hand of
$130.8 million, including
$27.7 million related to
Peninsula. Total debt was $3.42
billion, of which $1.08
billion was related to Peninsula. As a result of the
deconsolidation, Borgata's cash and debt balances are no longer
included in the Company's balance sheet. Borgata had cash on hand
of $28.5 million and total debt of
$733.1 million at March 31, 2015.
Full Year 2015 Guidance
Based on first-quarter 2015
results, Boyd Gaming is raising its previously provided guidance
for the full year 2015. The Company now projects total Adjusted
EBITDA, including Peninsula and 50% of Borgata's Adjusted EBITDA,
of $542 million to $567 million.
Conference Call Information
Boyd Gaming will host its
conference call to discuss first-quarter 2015 results today,
April 30, at 5:00 p.m. Eastern. The conference call
number is (888) 317-6003, passcode 3858748.
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=102187
Following the call's completion, a replay will be available by
dialing (877) 344-7529 today, April
30, beginning at 7:00 p.m.
Eastern and continuing through Friday, May
8, at 11:59 p.m.
Eastern. The conference number for the replay will be
10064626. The replay will also be available on the Internet
at www.boydgaming.com.
|
BOYD GAMING
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (a)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
Gaming
|
$
|
464,757
|
|
|
$
|
608,757
|
|
|
Food and
beverage
|
76,296
|
|
|
106,643
|
|
|
Room
|
39,353
|
|
|
64,380
|
|
|
Other
|
29,685
|
|
|
38,960
|
|
|
Gross
revenues
|
610,091
|
|
|
818,740
|
|
|
Less promotional
allowances
|
59,513
|
|
|
110,391
|
|
|
Net
revenues
|
550,578
|
|
|
708,349
|
|
|
Operating costs
and expenses
|
|
|
|
|
Gaming
|
226,697
|
|
|
285,174
|
|
|
Food and
beverage
|
41,567
|
|
|
57,269
|
|
|
Room
|
10,047
|
|
|
13,170
|
|
|
Other
|
19,646
|
|
|
27,792
|
|
|
Selling, general and
administrative
|
81,689
|
|
|
124,679
|
|
|
Maintenance and
utilities
|
25,319
|
|
|
43,264
|
|
|
Depreciation and
amortization
|
51,942
|
|
|
66,179
|
|
|
Corporate
expense
|
19,652
|
|
|
19,920
|
|
|
Preopening
expenses
|
505
|
|
|
784
|
|
|
Impairments of
assets
|
1,065
|
|
|
1,633
|
|
|
Asset transactions
costs
|
450
|
|
|
155
|
|
|
Other operating
items, net
|
116
|
|
|
(186)
|
|
|
Total operating
costs and expenses
|
478,695
|
|
|
639,833
|
|
|
Boyd's share of
Borgata's operating income (a)
|
11,675
|
|
|
—
|
|
|
Operating
income
|
83,558
|
|
|
68,516
|
|
|
Other expense
(income)
|
|
|
|
|
Interest
income
|
(471)
|
|
|
(476)
|
|
|
Interest expense, net
of amounts capitalized
|
56,935
|
|
|
75,503
|
|
|
Loss on early
extinguishments of debt
|
508
|
|
|
154
|
|
|
Other, net
|
618
|
|
|
(288)
|
|
|
Boyd's share of
Borgata's non-operating items, net (a)
|
7,661
|
|
|
—
|
|
|
Total other
expense, net
|
65,251
|
|
|
74,893
|
|
|
Income (loss)
before income taxes
|
18,307
|
|
|
(6,377)
|
|
|
Income taxes benefit
(provision)
|
16,796
|
|
|
(4,848)
|
|
|
Net income
(loss)
|
35,103
|
|
|
(11,225)
|
|
|
Net loss attributable
to noncontrolling interest (a)
|
—
|
|
|
5,043
|
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
35,103
|
|
|
$
|
(6,182)
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
$
|
0.31
|
|
|
$
|
(0.06)
|
|
|
Weighted average
basic shares outstanding
|
111,446
|
|
|
109,753
|
|
|
|
|
|
|
Diluted net income
(loss) per common share
|
$
|
0.31
|
|
|
$
|
(0.06)
|
|
|
Weighted average
diluted shares outstanding
|
112,358
|
|
|
109,753
|
|
|
|
|
|
|
|
|
|
(a)
|
Due to the
deconsolidation of Borgata on September 30, 2014, the Company has
accounted for its 50% investment in Borgata by applying the equity
method for the three months ended March 31, 2015. For the three
months ended March 31, 2014, Boyd Gaming consolidated the financial
results of Borgata. Please see the unaudited pro forma financial
results also presented in this release for a comparison of Boyd
Gaming's financial results reflecting Borgata on the equity method
for all periods presented.
|
|
BOYD GAMING
CORPORATION
SUPPLEMENTAL
INFORMATION
Reconciliation of
Adjusted EBITDA to Operating Income (a)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In
thousands)
|
2015
|
|
2014
|
|
Net Revenues by
Reportable Segment
|
|
|
|
|
Las Vegas
Locals
|
$
|
150,302
|
|
|
$
|
151,443
|
|
|
Downtown Las
Vegas
|
56,603
|
|
|
55,733
|
|
|
Midwest and
South
|
217,764
|
|
|
211,636
|
|
|
Peninsula
|
125,909
|
|
|
122,273
|
|
|
Borgata
(b)
|
—
|
|
|
167,264
|
|
|
Net revenues
|
$
|
550,578
|
|
|
$
|
708,349
|
|
|
|
|
|
|
Adjusted EBITDA by
Reportable Segment
|
|
|
|
|
Las Vegas
Locals
|
$
|
38,877
|
|
|
$
|
40,007
|
|
|
Downtown Las
Vegas
|
10,677
|
|
|
9,327
|
|
|
Midwest and
South
|
50,984
|
|
|
44,098
|
|
|
Peninsula
|
46,363
|
|
|
44,761
|
|
|
Wholly owned property Adjusted EBITDA
|
146,901
|
|
|
138,193
|
|
|
Corporate
expense (c)
|
(16,642)
|
|
|
(14,171)
|
|
|
Wholly owned Adjusted EBITDA
|
130,259
|
|
|
124,022
|
|
|
Borgata
(b)
|
18,913
|
|
|
20,446
|
|
|
Adjusted EBITDA
|
149,172
|
|
|
144,468
|
|
|
|
|
|
|
Other operating
costs and expenses
|
|
|
|
|
Deferred
rent
|
857
|
|
|
906
|
|
|
Depreciation
and amortization
|
51,942
|
|
|
66,179
|
|
|
Preopening
expenses
|
505
|
|
|
784
|
|
|
Share-based
compensation expense
|
3,441
|
|
|
6,481
|
|
|
Impairments of
assets
|
1,065
|
|
|
1,633
|
|
|
Asset
transactions costs
|
450
|
|
|
155
|
|
|
Other
operating items, net
|
116
|
|
|
(186)
|
|
|
Boyd's share
of Borgata's other operating costs and expenses
|
7,238
|
|
|
—
|
|
|
Total other operating
costs and expenses
|
65,614
|
|
|
75,952
|
|
|
Operating
income
|
83,558
|
|
|
68,516
|
|
|
Other expense
(income)
|
|
|
|
|
Interest
expense, net of amounts capitalized
|
56,464
|
|
|
75,027
|
|
|
Loss on early
extinguishments of debt
|
508
|
|
|
154
|
|
|
Other,
net
|
618
|
|
|
(288)
|
|
|
Boyd's share
of Borgata's non-operating items, net
|
7,661
|
|
|
—
|
|
|
Total other expense, net
|
65,251
|
|
|
74,893
|
|
|
Income (loss)
before income taxes
|
18,307
|
|
|
(6,377)
|
|
|
Income taxes
benefit (provision)
|
16,796
|
|
|
(4,848)
|
|
|
Net income
(loss)
|
35,103
|
|
|
(11,225)
|
|
|
Net loss
attributable to noncontrolling interest
|
—
|
|
|
5,043
|
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
35,103
|
|
|
$
|
(6,182)
|
|
|
___________________________________________
|
|
BOYD GAMING
CORPORATION
|
|
SUPPLEMENTAL
INFORMATION
|
|
Reconciliation of
Adjusted EBITDA to Operating Income (a)
|
|
(Unaudited)
|
|
(Continued)
|
|
|
|
(a)
|
See note (a) on
Condensed Consolidated Statements of Operations.
|
|
|
|
(b)
|
The following table
reflects the financial results of Borgata as reported by Boyd
Gaming in its financial statements under the respective method of
accounting for the indicated period. For the three months ended
March 31, 2015, Boyd Gaming accounted for its 50% investment in
Borgata by applying the equity method. For the three months ended
March 31, 2014, Boyd Gaming consolidated the financial results of
the Borgata.
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In
thousands)
|
2015
|
|
2014
|
|
Revenues reported
for Borgata
|
|
|
|
|
Consolidated
|
$
|
—
|
|
|
$
|
167,264
|
|
|
Equity
Method
|
—
|
|
|
—
|
|
|
Total
|
$
|
—
|
|
|
$
|
167,264
|
|
|
|
|
|
|
Adjusted EBITDA
reported for Borgata
|
|
|
|
|
Consolidated
|
$
|
—
|
|
|
$
|
20,446
|
|
|
Equity
Method
|
18,913
|
|
|
—
|
|
|
Total
|
$
|
18,913
|
|
|
$
|
20,446
|
|
|
|
(c)
Reconciliation of corporate expense:
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In
thousands)
|
2015
|
|
2014
|
|
Corporate expense
as reported on Consolidated Statements of Operations
|
$
|
19,652
|
|
|
$
|
19,920
|
|
|
Corporate share-based
compensation expense
|
(3,010)
|
|
|
(5,749)
|
|
|
Corporate expense
as reported on the above table
|
$
|
16,642
|
|
|
$
|
14,171
|
|
|
BOYD GAMING
CORPORATION
SUPPLEMENTAL
INFORMATION
Reconciliation of
Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss)
Per Share to
Adjusted Earnings
(Loss) Per Share (a)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
35,103
|
|
|
$
|
(6,182)
|
|
|
Pretax
adjustments related to Boyd Gaming:
|
|
|
|
|
Preopening
expenses
|
505
|
|
|
751
|
|
|
Loss on early
extinguishments of debt
|
508
|
|
|
154
|
|
|
Impairments of
assets
|
1,065
|
|
|
1,633
|
|
|
Asset
transactions costs
|
450
|
|
|
157
|
|
|
Other
operating items, net
|
116
|
|
|
216
|
|
|
Other,
net
|
618
|
|
|
(375)
|
|
|
|
|
|
|
Pretax
adjustments related to Borgata (b):
|
|
|
|
|
Preopening
expenses
|
—
|
|
|
33
|
|
|
Loss on early
extinguishments of debt
|
246
|
|
|
—
|
|
|
Valuation
adjustments related to consolidation, net
|
—
|
|
|
(634)
|
|
|
Asset
transactions costs
|
—
|
|
|
(2)
|
|
|
Other
operating items, net
|
(162)
|
|
|
(402)
|
|
|
Total
adjustments
|
3,346
|
|
|
1,531
|
|
|
|
|
|
|
Income tax effect for above
adjustments
|
(1,004)
|
|
|
45
|
|
|
Impact
of tax audit settlement on provision
|
(23,196)
|
|
|
—
|
|
|
Impact
on noncontrolling interest, net
|
—
|
|
|
504
|
|
|
Adjusted earnings
(loss)
|
$
|
14,249
|
|
|
$
|
(4,102)
|
|
|
|
|
|
|
Net income (loss)
per share attributable to Boyd Gaming Corporation
|
$
|
0.31
|
|
|
$
|
(0.06)
|
|
|
Pretax
adjustments related to Boyd Gaming:
|
|
|
|
|
Preopening
expenses
|
0.01
|
|
|
0.01
|
|
|
Loss on early
extinguishments of debt
|
0.01
|
|
|
—
|
|
|
Impairments of
assets
|
0.01
|
|
|
0.01
|
|
|
Asset
transactions costs
|
—
|
|
|
—
|
|
|
Other
operating items, net
|
—
|
|
|
—
|
|
|
Other,
net
|
0.01
|
|
|
—
|
|
|
|
|
|
|
Pretax
adjustments related to Borgata (b):
|
|
|
|
|
Preopening
expenses
|
—
|
|
|
—
|
|
|
Loss on early
extinguishments of debt
|
—
|
|
|
—
|
|
|
Valuation
adjustments related to consolidation, net
|
—
|
|
|
(0.01)
|
|
|
Asset
transactions costs
|
—
|
|
|
—
|
|
|
Other
operating items, net
|
—
|
|
|
—
|
|
|
Total
adjustments
|
0.04
|
|
|
0.01
|
|
|
|
|
|
|
Income
tax effect for above adjustments
|
(0.01)
|
|
|
—
|
|
|
Impact
of tax audit settlement on provision
|
(0.21)
|
|
|
—
|
|
|
Impact
on noncontrolling interest, net
|
—
|
|
|
0.01
|
|
|
Adjusted earnings
(loss) per share
|
$
|
0.13
|
|
|
$
|
(0.04)
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
112,358
|
|
|
109,753
|
|
|
|
|
|
|
|
|
(a)
|
See note (a) on
Condensed Consolidated Statements of Operations.
|
|
(b)
|
For periods after the
September 30, 2014, date of Borgata's deconsolidation, the
calculation includes Boyd's share of the adjusting items. Prior to
this date, the calculation includes 100% of the adjusting items for
Borgata.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOYD GAMING
CORPORATION
|
|
SUPPLEMENTAL
INFORMATION
|
|
Condensed
Consolidating Statements of Operations
|
|
Three Months Ended
March 31, 2015 (a)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Boyd Gaming Wholly
Owned
|
|
|
(In thousands,
except per share data)
|
|
Excluding
Peninsula
Segment
|
|
Peninsula
Segment
|
|
Eliminations
|
|
Boyd
Gaming
Consolidated
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
$
|
347,714
|
|
|
$
|
117,043
|
|
|
$
|
—
|
|
|
$
|
464,757
|
|
|
Food and
beverage
|
|
66,317
|
|
|
9,979
|
|
|
—
|
|
|
76,296
|
|
|
Room
|
|
39,353
|
|
|
—
|
|
|
—
|
|
|
39,353
|
|
|
Other
|
|
30,608
|
|
|
3,905
|
|
|
(4,828)
|
|
|
29,685
|
|
|
Gross
revenues
|
|
483,992
|
|
|
130,927
|
|
|
(4,828)
|
|
|
610,091
|
|
|
Less
promotional allowances
|
|
54,495
|
|
|
5,018
|
|
|
—
|
|
|
59,513
|
|
|
Net
revenues
|
|
429,497
|
|
|
125,909
|
|
|
(4,828)
|
|
|
550,578
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
172,417
|
|
|
54,280
|
|
|
—
|
|
|
226,697
|
|
|
Food and
beverage
|
|
35,198
|
|
|
6,369
|
|
|
—
|
|
|
41,567
|
|
|
Room
|
|
10,047
|
|
|
—
|
|
|
—
|
|
|
10,047
|
|
|
Other
|
|
17,264
|
|
|
7,210
|
|
|
(4,828)
|
|
|
19,646
|
|
|
Selling,
general and administrative
|
|
68,433
|
|
|
13,256
|
|
|
—
|
|
|
81,689
|
|
|
Maintenance
and utilities
|
|
22,060
|
|
|
3,259
|
|
|
—
|
|
|
25,319
|
|
|
Depreciation
and amortization
|
|
34,954
|
|
|
16,988
|
|
|
—
|
|
|
51,942
|
|
|
Corporate
expense
|
|
19,247
|
|
|
405
|
|
|
—
|
|
|
19,652
|
|
|
Preopening
expenses
|
|
505
|
|
|
—
|
|
|
—
|
|
|
505
|
|
|
Impairments of
assets
|
|
1,065
|
|
|
—
|
|
|
—
|
|
|
1,065
|
|
|
Asset
transactions costs
|
|
322
|
|
|
128
|
|
|
—
|
|
|
450
|
|
|
Other
operating items, net
|
|
70
|
|
|
46
|
|
|
—
|
|
|
116
|
|
|
Total costs and expenses
|
|
381,582
|
|
|
101,941
|
|
|
(4,828)
|
|
|
478,695
|
|
|
|
|
|
|
|
|
|
|
|
Boyd's share of
Borgata's operating income
|
|
11,675
|
|
|
—
|
|
|
—
|
|
|
11,675
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
59,590
|
|
|
23,968
|
|
|
—
|
|
|
83,558
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
(4)
|
|
|
(467)
|
|
|
—
|
|
|
(471)
|
|
|
Interest
expense, net of amounts capitalized
|
|
38,265
|
|
|
18,670
|
|
|
—
|
|
|
56,935
|
|
|
Loss on early
extinguishments of debt
|
|
—
|
|
|
508
|
|
|
—
|
|
|
508
|
|
|
Other,
net
|
|
457
|
|
|
161
|
|
|
—
|
|
|
618
|
|
|
Boyd's share
of Borgata's non-operating expenses, net
|
|
7,661
|
|
|
—
|
|
|
—
|
|
|
7,661
|
|
|
Total other expense, net
|
|
46,379
|
|
|
18,872
|
|
|
—
|
|
|
65,251
|
|
|
Income before
income taxes
|
|
13,211
|
|
|
5,096
|
|
|
—
|
|
|
18,307
|
|
|
Income taxes
benefit (provision)
|
|
21,294
|
|
|
(4,498)
|
|
|
—
|
|
|
16,796
|
|
|
Net
income
|
|
34,505
|
|
|
598
|
|
|
—
|
|
|
35,103
|
|
|
Net loss
attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
attributable to Boyd Gaming Corporation
|
|
$
|
34,505
|
|
|
$
|
598
|
|
|
$
|
—
|
|
|
$
|
35,103
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per common share
|
|
|
|
|
|
|
|
$
|
0.31
|
|
|
Weighted
average basic shares outstanding
|
|
|
|
|
|
|
|
111,446
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
$
|
0.31
|
|
|
Weighted
average diluted shares outstanding
|
|
|
|
|
|
|
|
112,358
|
|
|
|
|
|
|
|
(a)
|
See note (a) on
Condensed Consolidated Statements of Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOYD GAMING
CORPORATION
|
|
SUPPLEMENTAL
INFORMATION
|
|
Condensed
Consolidating Statements of Operations
|
|
Three Months Ended
March 31, 2014 (a)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boyd Gaming Wholly
Owned
|
|
|
|
|
|
|
|
(In thousands,
except per share data)
|
|
Excluding
Peninsula
Segment
|
|
Peninsula
Segment
|
|
Eliminations
|
|
Total
|
|
Borgata
(b)
|
|
Eliminations
|
|
Boyd
Gaming
Consolidated
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
$
|
341,204
|
|
|
$
|
113,867
|
|
|
$
|
—
|
|
|
$
|
455,071
|
|
|
$
|
153,686
|
|
|
$
|
—
|
|
|
$
|
608,757
|
|
|
Food and
beverage
|
|
66,141
|
|
|
9,448
|
|
|
—
|
|
|
75,589
|
|
|
31,054
|
|
|
—
|
|
|
106,643
|
|
|
Room
|
|
38,811
|
|
|
—
|
|
|
—
|
|
|
38,811
|
|
|
25,569
|
|
|
—
|
|
|
64,380
|
|
|
Other
|
|
31,172
|
|
|
3,898
|
|
|
(4,681)
|
|
|
30,389
|
|
|
8,571
|
|
|
—
|
|
|
38,960
|
|
|
Gross
revenues
|
|
477,328
|
|
|
127,213
|
|
|
(4,681)
|
|
|
599,860
|
|
|
218,880
|
|
|
—
|
|
|
818,740
|
|
|
Less
promotional allowances
|
|
53,835
|
|
|
4,940
|
|
|
—
|
|
|
58,775
|
|
|
51,616
|
|
|
—
|
|
|
110,391
|
|
|
Net revenues
|
|
423,493
|
|
|
122,273
|
|
|
(4,681)
|
|
|
541,085
|
|
|
167,264
|
|
|
—
|
|
|
708,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
168,499
|
|
|
53,211
|
|
|
—
|
|
|
221,710
|
|
|
63,464
|
|
|
—
|
|
|
285,174
|
|
|
Food and
beverage
|
|
35,488
|
|
|
6,086
|
|
|
—
|
|
|
41,574
|
|
|
15,695
|
|
|
—
|
|
|
57,269
|
|
|
Room
|
|
10,386
|
|
|
—
|
|
|
—
|
|
|
10,386
|
|
|
2,784
|
|
|
—
|
|
|
13,170
|
|
|
Other
|
|
18,661
|
|
|
7,313
|
|
|
(4,681)
|
|
|
21,293
|
|
|
6,499
|
|
|
—
|
|
|
27,792
|
|
|
Selling,
general and administrative
|
|
70,904
|
|
|
12,373
|
|
|
—
|
|
|
83,277
|
|
|
41,402
|
|
|
—
|
|
|
124,679
|
|
|
Maintenance
and utilities
|
|
23,081
|
|
|
3,210
|
|
|
—
|
|
|
26,291
|
|
|
16,973
|
|
|
—
|
|
|
43,264
|
|
|
Depreciation
and amortization
|
|
33,854
|
|
|
18,464
|
|
|
—
|
|
|
52,318
|
|
|
13,861
|
|
|
—
|
|
|
66,179
|
|
|
Corporate
expense
|
|
19,497
|
|
|
423
|
|
|
—
|
|
|
19,920
|
|
|
—
|
|
|
—
|
|
|
19,920
|
|
|
Preopening
expenses
|
|
566
|
|
|
185
|
|
|
—
|
|
|
751
|
|
|
33
|
|
|
—
|
|
|
784
|
|
|
Impairments of
assets
|
|
1,633
|
|
|
—
|
|
|
—
|
|
|
1,633
|
|
|
—
|
|
|
—
|
|
|
1,633
|
|
|
Asset
transactions costs
|
|
139
|
|
|
18
|
|
|
—
|
|
|
157
|
|
|
(2)
|
|
|
—
|
|
|
155
|
|
|
Other
operating items, net
|
|
150
|
|
|
66
|
|
|
—
|
|
|
216
|
|
|
(402)
|
|
|
—
|
|
|
(186)
|
|
|
Total costs and
expenses
|
|
382,858
|
|
|
101,349
|
|
|
(4,681)
|
|
|
479,526
|
|
|
160,307
|
|
|
—
|
|
|
639,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boyd's share of
Borgata's operating income
|
|
3,478
|
|
|
—
|
|
|
—
|
|
|
3,478
|
|
|
—
|
|
|
(3,478)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
44,113
|
|
|
20,924
|
|
|
—
|
|
|
65,037
|
|
|
6,957
|
|
|
(3,478)
|
|
|
68,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
(4)
|
|
|
(472)
|
|
|
—
|
|
|
(476)
|
|
|
—
|
|
|
—
|
|
|
(476)
|
|
|
Interest
expense, net of amounts capitalized
|
|
38,495
|
|
|
19,318
|
|
|
|
|
57,813
|
|
|
17,690
|
|
|
—
|
|
|
75,503
|
|
|
Loss on early
extinguishments of debt
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
154
|
|
|
Other,
net
|
|
(391)
|
|
|
103
|
|
|
—
|
|
|
(288)
|
|
|
—
|
|
|
—
|
|
|
(288)
|
|
|
Boyd's share
of Borgata's non-operating expenses, net
|
|
8,521
|
|
|
—
|
|
|
—
|
|
|
8,521
|
|
|
—
|
|
|
(8,521)
|
|
|
—
|
|
|
Total other expense, net
|
|
46,621
|
|
|
19,103
|
|
|
—
|
|
|
65,724
|
|
|
17,690
|
|
|
(8,521)
|
|
|
74,893
|
|
|
Income (loss)
before income taxes
|
|
(2,508)
|
|
|
1,821
|
|
|
—
|
|
|
(687)
|
|
|
(10,733)
|
|
|
5,043
|
|
|
(6,377)
|
|
|
Income taxes
benefit (provision)
|
|
(1,701)
|
|
|
(3,794)
|
|
|
—
|
|
|
(5,495)
|
|
|
647
|
|
|
—
|
|
|
(4,848)
|
|
|
Net income
(loss)
|
|
(4,209)
|
|
|
(1,973)
|
|
|
—
|
|
|
(6,182)
|
|
|
(10,086)
|
|
|
5,043
|
|
|
(11,225)
|
|
|
Net loss
attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,043
|
|
|
5,043
|
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
|
$
|
(4,209)
|
|
|
$
|
(1,973)
|
|
|
$
|
—
|
|
|
$
|
(6,182)
|
|
|
$
|
(10,086)
|
|
|
$
|
10,086
|
|
|
$
|
(6,182)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
common share
|
|
|
|
|
|
|
|
$
|
(0.06)
|
|
|
|
|
|
|
$
|
(0.06)
|
|
|
Weighted average basic shares outstanding
|
|
|
|
|
|
|
|
109,753
|
|
|
|
|
|
|
109,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss
per common share
|
|
|
|
|
|
|
|
$
|
(0.06)
|
|
|
|
|
|
|
$
|
(0.06)
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
|
|
|
|
109,753
|
|
|
|
|
|
|
109,753
|
|
|
|
|
|
|
|
(a)
|
See note (a) on
Condensed Consolidated Statements of Operations.
|
|
(b)
|
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.
|
|
MARINA DISTRICT
DEVELOPMENT COMPANY, LLC
dba BORGATA HOTEL
CASINO AND SPA
CONSOLIDATED
STATEMENTS OF OPERATIONS (a)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In
thousands)
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
Gaming
|
$
|
165,128
|
|
|
$
|
153,686
|
|
|
Food and
beverage
|
34,468
|
|
|
31,054
|
|
|
Room
|
27,604
|
|
|
25,569
|
|
|
Other
|
8,510
|
|
|
8,571
|
|
|
Gross
revenues
|
235,710
|
|
|
218,880
|
|
|
Less
promotional allowances
|
53,121
|
|
|
51,616
|
|
|
Net
revenues
|
182,589
|
|
|
167,264
|
|
|
Operating costs
and expenses
|
|
|
|
|
Gaming
|
66,919
|
|
|
63,464
|
|
|
Food and
beverage
|
17,687
|
|
|
15,695
|
|
|
Room
|
3,260
|
|
|
2,784
|
|
|
Other
|
6,754
|
|
|
6,499
|
|
|
Selling,
general and administrative
|
34,153
|
|
|
41,402
|
|
|
Maintenance
and utilities
|
15,991
|
|
|
16,927
|
|
|
Depreciation
and amortization
|
14,799
|
|
|
14,542
|
|
|
Preopening
expenses
|
—
|
|
|
33
|
|
|
Other
operating items, net
|
(324)
|
|
|
(404)
|
|
|
Total
operating costs and expenses
|
159,239
|
|
|
160,942
|
|
|
Operating
income
|
23,350
|
|
|
6,322
|
|
|
Other
expense
|
|
|
|
|
Interest
expense, net of amounts capitalized
|
16,657
|
|
|
17,690
|
|
|
Loss on early
extinguishments of debt
|
492
|
|
|
—
|
|
|
Total
other expense
|
17,149
|
|
|
17,690
|
|
|
Income (loss)
before state income taxes
|
6,201
|
|
|
(11,368)
|
|
|
State income
tax benefit
|
1,827
|
|
|
704
|
|
|
Net income
(loss)
|
$
|
8,028
|
|
|
$
|
(10,664)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA to Operating Income (Loss)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In
thousands)
|
2015
|
|
2014
|
|
Adjusted
EBITDA
|
$
|
37,825
|
|
|
$
|
20,493
|
|
|
Less:
|
|
|
|
|
Depreciation and
amortization
|
14,799
|
|
|
14,542
|
|
|
Preopening
expenses
|
—
|
|
|
33
|
|
|
Other operating items,
net
|
(324)
|
|
|
(404)
|
|
|
Operating income
(loss)
|
$
|
23,350
|
|
|
$
|
6,322
|
|
|
|
|
|
|
|
(a)
|
These financial
statements present the financial results reported by Borgata on a
standalone basis and do not include consolidation adjustments
recorded by Boyd Gaming during the period that Boyd Gaming
consolidated Borgata.
|
Boyd Gaming Corporation
Unaudited Supplemental Pro
Forma Information
Boyd Gaming Corporation ("Boyd Gaming") and MGM Resorts
International ("MGM") each originally held a 50% interest in Marina
District Development Holding Co., LLC ("Holding Company"). Holding
Company owns all the equity interests in Marina District
Development Company, LLC, d.b.a. Borgata Hotel Casino and Spa
("Borgata"). Boyd Gaming is the managing member of Holding Company
and is responsible for the day-to-day operations of Borgata.
In February 2010, Boyd Gaming
entered into an agreement with MGM to amend the operating agreement
to, among other things, facilitate the transfer of MGM's interest
in Holding Company ("MGM Interest") to a divestiture trust (the
"Divestiture Trust") established for the purpose of selling the MGM
Interest to a third party. The proposed sale of the MGM Interest
through the Divestiture Trust was part of a then-proposed
settlement agreement between MGM and the New Jersey Department of
Gaming Enforcement (the "NJDGE").
On March 17, 2010, MGM announced
that its settlement agreement with the NJDGE had been approved by
the New Jersey Casino Control Commission ("NJCCC"). MGM transferred
the MGM Interest into the Divestiture Trust on March 24, 2010, and Boyd Gaming determined that
it had control, as defined in the relevant accounting literature,
of Holding Company and commenced consolidating the business as of
that date. Subsequent to a Joint Petition of MGM, Boyd Gaming and
Holding Company, on February 13,
2013, the NJCCC approved amendments to the settlement
agreement which permitted MGM to file an application for a
statement of compliance, which, if approved, would permit MGM to
reacquire its interest in Holding Company.
The NJCCC approved MGM's application for licensure on
September 10, 2014. On September 30, 2014, the Divestiture Trust was
dissolved and MGM reacquired its Borgata ownership interest and its
substantive participation rights in the management of Borgata. As a
result, Boyd Gaming deconsolidated Borgata as of the close of
business on September 30, 2014, and
is accounting for its investment in Borgata applying the equity
method for periods subsequent to the deconsolidation.
The following unaudited supplemental information presents Boyd
Gaming's financial results for three months ended March 31, 2015 and pro forma financial results
for the three months ended March 31,
2014. The prior year unaudited pro forma financial
statements give effect to:
- the deconsolidation by Boyd Gaming of Holding Company,
and
- the recording by Boyd Gaming using the equity method of
accounting for its 50% share of the operating results of Holding
Company for the periods presented,
and assumes that these transactions occurred as of January 1, 2014.
The unaudited supplemental pro forma information has been
prepared based upon currently available information and assumptions
that are deemed appropriate by Boyd Gaming's management. The pro
forma information is for informational purposes only and is not
intended to be indicative of Boyd Gaming's actual results that
would have been reported had the transactions occurred on the date
indicated, nor does the information represent a forecast of Boyd
Gaming's financial results for any future period.
|
BOYD GAMING
CORPORATION
SUPPLEMENTAL PRO
FORMA INFORMATION
Pro Forma
Condensed Consolidated Statements of Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
Gaming
|
$
|
464,757
|
|
|
$
|
455,071
|
|
|
Food and
beverage
|
76,296
|
|
|
75,589
|
|
|
Room
|
39,353
|
|
|
38,811
|
|
|
Other
|
29,685
|
|
|
30,389
|
|
|
Gross
revenues
|
610,091
|
|
|
599,860
|
|
|
Less
promotional allowances
|
59,513
|
|
|
58,775
|
|
|
Net
revenues
|
550,578
|
|
|
541,085
|
|
|
Operating costs
and expenses
|
|
|
|
|
Gaming
|
226,697
|
|
|
221,710
|
|
|
Food and
beverage
|
41,567
|
|
|
41,574
|
|
|
Room
|
10,047
|
|
|
10,386
|
|
|
Other
|
19,646
|
|
|
21,293
|
|
|
Selling,
general and administrative
|
81,689
|
|
|
83,277
|
|
|
Maintenance
and utilities
|
25,319
|
|
|
26,291
|
|
|
Depreciation
and amortization
|
51,942
|
|
|
52,318
|
|
|
Corporate
expense
|
19,652
|
|
|
19,920
|
|
|
Preopening
expenses
|
505
|
|
|
751
|
|
|
Impairments of
assets
|
1,065
|
|
|
1,633
|
|
|
Asset
transactions costs
|
450
|
|
|
157
|
|
|
Other
operating items, net
|
116
|
|
|
216
|
|
|
Total
operating costs and expenses
|
478,695
|
|
|
479,526
|
|
|
Boyd's share of
Borgata's operating income
|
11,675
|
|
|
3,478
|
|
|
Operating
income
|
83,558
|
|
|
65,037
|
|
|
Other expense
(income)
|
|
|
|
|
Interest
income
|
(471)
|
|
|
(476)
|
|
|
Interest
expense, net of amounts capitalized
|
56,935
|
|
|
57,813
|
|
|
Loss on early
extinguishments of debt
|
508
|
|
|
154
|
|
|
Other,
net
|
618
|
|
|
(288)
|
|
|
Boyd's share
of Borgata's non-operating items, net
|
7,661
|
|
|
8,521
|
|
|
Total
other expense, net
|
65,251
|
|
|
65,724
|
|
|
Income (loss)
before income taxes
|
18,307
|
|
|
(687)
|
|
|
Income taxes
benefit (provision)
|
16,796
|
|
|
(5,495)
|
|
|
Net income
(loss)
|
35,103
|
|
|
(6,182)
|
|
|
Net (income)
loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
35,103
|
|
|
$
|
(6,182)
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
$
|
0.31
|
|
|
$
|
(0.06)
|
|
|
Weighted
average basic shares outstanding
|
111,446
|
|
|
109,753
|
|
|
|
|
|
|
Diluted net income
(loss) per common share
|
$
|
0.31
|
|
|
$
|
(0.06)
|
|
|
Weighted
average diluted shares outstanding
|
112,358
|
|
|
109,753
|
|
|
BOYD GAMING
CORPORATION
SUPPLEMENTAL PRO
FORMA INFORMATION
Reconciliation of
Pro Forma Adjusted EBITDA to Pro Forma Operating Income
(Loss)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(In
thousands)
|
2015
|
|
2014
|
|
Net Revenues by
Reportable Segment
|
|
|
|
|
Las Vegas
Locals
|
$
|
150,302
|
|
|
$
|
151,443
|
|
|
Downtown Las
Vegas
|
56,603
|
|
|
55,733
|
|
|
Midwest and
South
|
217,764
|
|
|
211,636
|
|
|
Peninsula
|
125,909
|
|
|
122,273
|
|
|
Net
revenues
|
$
|
550,578
|
|
|
$
|
541,085
|
|
|
|
|
|
|
Adjusted EBITDA by
Reportable Segment
|
|
|
|
|
Las Vegas
Locals
|
$
|
38,877
|
|
|
$
|
40,007
|
|
|
Downtown Las
Vegas
|
10,677
|
|
|
9,327
|
|
|
Midwest and
South
|
50,984
|
|
|
44,098
|
|
|
Peninsula
|
46,363
|
|
|
44,761
|
|
|
Wholly owned property
Adjusted EBITDA
|
146,901
|
|
|
138,193
|
|
|
Corporate
expense
|
(16,642)
|
|
|
(14,171)
|
|
|
Wholly owned Adjusted
EBITDA
|
130,259
|
|
|
124,022
|
|
|
Boyd's
share of Borgata's Adjusted EBITDA
|
18,913
|
|
|
10,223
|
|
|
Adjusted
EBITDA
|
149,172
|
|
|
134,245
|
|
|
|
|
|
|
Other operating
costs and expenses
|
|
|
|
|
Deferred
rent
|
857
|
|
|
906
|
|
|
Depreciation
and amortization
|
51,942
|
|
|
52,318
|
|
|
Preopening
expenses
|
505
|
|
|
751
|
|
|
Share-based
compensation expense
|
3,441
|
|
|
6,481
|
|
|
Impairments of
assets
|
1,065
|
|
|
1,633
|
|
|
Asset
transactions costs
|
450
|
|
|
157
|
|
|
Other
operating items, net
|
116
|
|
|
216
|
|
|
Boyd's share
of Borgata's operating costs and expenses
|
7,238
|
|
|
6,745
|
|
|
Total
other operating costs and expenses
|
65,614
|
|
|
69,207
|
|
|
Operating
income
|
83,558
|
|
|
65,038
|
|
|
Other expense
(income)
|
|
|
|
|
Interest
expense, net of amounts capitalized
|
56,464
|
|
|
57,337
|
|
|
Loss on early
extinguishments of debt
|
508
|
|
|
154
|
|
|
Other,
net
|
618
|
|
|
(288)
|
|
|
Boyd's share
of Borgata's non-operating items, net
|
7,661
|
|
|
8,521
|
|
|
Total
other expense, net
|
65,251
|
|
|
65,724
|
|
|
Income (loss)
before income taxes
|
18,307
|
|
|
(686)
|
|
|
Income taxes
benefit (provision)
|
16,796
|
|
|
(5,496)
|
|
|
Net income
(loss)
|
35,103
|
|
|
(6,182)
|
|
|
Net loss
attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
35,103
|
|
|
$
|
(6,182)
|
|
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 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
Borgata's non-operating expenses, preopening expenses and other
items and write-downs, net. For periods prior to the September 30, 2014, deconsolidation of Borgata,
the calculation of Adjusted EBITDA includes 100% of the adjusting
items for Borgata. For periods after the date of
deconsolidation, the calculation includes Boyd's share of the
adjusting items. Pro forma EBITDA and pro forma Adjusted
EBITDA reflect Borgata on the equity method for all periods
presented. Both EBITDA and Adjusted EBITDA include corporate
expense.
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, gain or loss on early
retirements of debt, other non-recurring adjustments, net,
valuation adjustments related to the consolidation of Borgata, the
impact on Boyd's income tax provision of tax audit settlements, and
Borgata's preopening expenses and other items and write-downs, net.
For periods prior to the September 30,
2014, deconsolidation of Borgata, the calculation of
Adjusted Earnings includes 100% of the adjusting items for
Borgata. For periods after the date of deconsolidation, the
calculation includes Boyd's share of the adjusting items.
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
Information
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Such statements contain words such as "may,"
"will," "might," "expect," "believe," "anticipate," "could,"
"would," "estimate," "continue," "pursue," or the negative thereof
or comparable terminology, and may include (without limitation)
information regarding the Company's expectations, goals or
intentions regarding future performance. In addition,
forward-looking statements in this press release include statements
regarding: the Company's continued enhancement of non-gaming
amenities, strategic initiatives, customer demand growth, improved
growth and profit potential, as well as increasing long-term
shareholder value, and all of the statements under the heading
"Full-Year 2015 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: 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, 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.
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visit:http://www.prnewswire.com/news-releases/boyd-gaming-reports-first-quarter-2015-results-300075333.html
SOURCE Boyd Gaming Corporation