LAS VEGAS, July 23, 2015 /PRNewswire/ --Boyd Gaming
Corporation (NYSE: BYD) today reported financial results for the
second quarter ended June 30,
2015.
Boyd Gaming reported second-quarter 2015 net revenues of
$559.9 million, an increase of
$19.2 million, or 3.5%, from pro
forma net revenues of $540.7 million
for the same quarter in 2014. Total Adjusted
EBITDA(1) was $162.9
million, up $23.6 million or
17.0% from the comparable pro forma amount of $139.3 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: "This was an exceptional
quarter for our Company, as our property management teams
successfully capitalized on a strengthening consumer environment to
deliver broad-based revenue growth. At the same time, we
continued driving efficiencies to further improve our cost
structure, leading to strong flow-through and our third straight
quarter of double-digit EBITDA gains. In addition, the upgrades we
are making to enhance our amenities also contributed to revenue
growth across the portfolio. We are pleased with the progress we
have made so far this year, and we remain focused on continuing to
produce strong results for our shareholders."
Adjusted Earnings(1) for the second quarter 2015 were
$26.9 million, or $0.24 per share, compared to $5.2 million, or $0.05 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 a net loss of $6.4 million, or $0.06 per share, for the second quarter 2015, due
to pretax losses on the early extinguishments of debt of
$31.0 million primarily related to
the Company's redemption of its 9.125% Senior Notes due 2018.
By comparison, the Company reported net income of $0.7 million, or $0.01 per share, for the year-ago
period.
(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 2015 net
revenues rose 3.2% to $153.0 million,
compared to $148.3 million in the
year-ago quarter. Second-quarter 2015 Adjusted EBITDA grew
15.3% to $42.2 million, compared to
$36.6 million in the second quarter
of 2014. Despite significant disruption from roadwork next to
Suncoast and Sam's Town, all four of the Company's major Locals
properties achieved year-over-year EBITDA growth, led by continued
strength at The Orleans and Gold Coast. Gaming revenues in
the Las Vegas Locals segment increased year-over-year, with
particularly strong growth in table games. Additionally, non-gaming
revenues grew for the eighth consecutive quarter.
Downtown Las
Vegas
In the Downtown Las Vegas
segment, net revenues increased $2.9
million to $58.4 million,
compared to $55.6 million in the
second quarter of 2014. Adjusted EBITDA was $12.3 million, up $3.8
million from $8.6 million in
the year-ago quarter. Significant growth in pedestrian
traffic along Fremont Street, as well as continued strength in
Hawaiian visitation, contributed to gaming and non-gaming revenue
growth at all three downtown properties. EBITDA also
benefitted from lower year-over-year 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 4.1% from
$209.1 million in the second quarter
of 2014. Adjusted EBITDA increased 22.7% to $51.8 million, compared to $42.2 million in the year-ago period.
The Peninsula segment reported net revenues of $130.6 million, up 2.2% from $127.8 million in the second quarter of 2014.
Adjusted EBITDA grew 8.6% to $49.2
million, compared to $45.3
million in the year-ago period.
Eleven of the 12 properties in the combined segments reported
year-over-year EBITDA growth, as nine properties posted
double-digit gains. Solid revenue growth and further operational
refinements led to substantial flow-through across the two
segments, as combined operating margins improved by 300 basis
points. Additionally, Kansas Star achieved record second-quarter
EBITDA.
Borgata
Borgata reported second-quarter 2015 net revenues of
$191.2 million, increasing 5.1% from
$181.9 million in the year-ago
period. Adjusted EBITDA was $44.5
million, up 4.4% from $42.6
million in the second quarter of 2014. Excluding a one-time
property tax benefit of $11.8 million
recorded in the year-ago quarter, Borgata grew EBITDA by
approximately 45% in the second quarter of 2015.
Due to its deconsolidation, the Company now applies the equity
method of accounting to its 50% investment in Borgata. The
Company's share of Borgata's Adjusted EBITDA was $22.3 million for the second quarter of 2015 as
compared to pro forma Adjusted EBITDA of $21.3 million, inclusive of the Company's share
of the one-time property tax benefit, in the prior-year period.
Borgata achieved growth throughout the business, with revenue
increases in gaming, hotel, food and beverage, and
entertainment. The property increased its market share of
gross gaming revenue by nearly 400 basis points year-over-year, to
more than 27% of the Atlantic City
market. Online gaming contributed $1.6
million to EBITDA during the second quarter, marking a
fourth consecutive quarter of profitability.
Balance Sheet Statistics
As of June 30, 2015, Boyd Gaming
had cash on hand of $124.5 million,
including $26.4 million related to
Peninsula. Total debt was $3.40
billion, of which $1.04
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 $35.1 million and total debt of
$710.8 million at June 30, 2015.
In May, the Company completed a public offering of $750 million in 6.875% Senior Notes due
2023. Net proceeds were used to redeem the Company's existing
$500 million in 9.125% Senior Notes
due 2018, and to pay down outstanding borrowings under the
Company's revolving credit facility.
Full Year 2015 Guidance
Based on second-quarter results, and to reflect positive trends
in the business, the Company 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 $575 million to $595
million.
Conference Call Information
Boyd Gaming will host its conference call to discuss
second-quarter 2015 results today, July
23, at 5:00 p.m.
Eastern. The conference call number is (888) 317-6003,
passcode 1397357. 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/964/9595
Following the call's completion, a replay will be available by
dialing (877) 344-7529 today, July
23, beginning at 7:00 p.m.
Eastern and continuing through Friday, July
31, at 11:59 p.m.
Eastern. The conference number for the replay will be
10069416. 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
Gaming
|
$
|
468,580
|
|
|
$
|
618,914
|
|
|
$
|
933,337
|
|
|
$
|
1,227,671
|
|
Food and
beverage
|
77,909
|
|
|
110,353
|
|
|
154,205
|
|
|
216,996
|
|
Room
|
42,332
|
|
|
70,362
|
|
|
81,685
|
|
|
134,742
|
|
Other
|
30,642
|
|
|
41,173
|
|
|
60,327
|
|
|
80,133
|
|
Gross
revenues
|
619,463
|
|
|
840,802
|
|
|
1,229,554
|
|
|
1,659,542
|
|
Less promotional
allowances
|
59,596
|
|
|
118,268
|
|
|
119,109
|
|
|
228,659
|
|
Net
revenues
|
559,867
|
|
|
722,534
|
|
|
1,110,445
|
|
|
1,430,883
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Gaming
|
224,686
|
|
|
288,214
|
|
|
451,383
|
|
|
573,388
|
|
Food and
beverage
|
42,913
|
|
|
61,196
|
|
|
84,480
|
|
|
118,465
|
|
Room
|
10,682
|
|
|
14,481
|
|
|
20,729
|
|
|
27,651
|
|
Other
|
19,744
|
|
|
30,362
|
|
|
39,390
|
|
|
58,154
|
|
Selling, general and
administrative
|
81,013
|
|
|
111,379
|
|
|
162,702
|
|
|
236,058
|
|
Maintenance and
utilities
|
26,616
|
|
|
43,023
|
|
|
51,935
|
|
|
86,287
|
|
Depreciation and
amortization
|
51,964
|
|
|
65,898
|
|
|
103,906
|
|
|
132,077
|
|
Corporate
expense
|
17,352
|
|
|
17,621
|
|
|
37,004
|
|
|
37,541
|
|
Preopening
expenses
|
830
|
|
|
1,790
|
|
|
1,335
|
|
|
2,574
|
|
Impairments of
assets
|
—
|
|
|
293
|
|
|
1,065
|
|
|
1,926
|
|
Asset transactions
costs
|
919
|
|
|
1,859
|
|
|
1,369
|
|
|
2,014
|
|
Other operating
items, net
|
54
|
|
|
(561)
|
|
|
170
|
|
|
(747)
|
|
Total operating
costs and expenses
|
476,773
|
|
|
635,555
|
|
|
955,468
|
|
|
1,275,388
|
|
Boyd's share of
Borgata's operating income (a)
|
15,088
|
|
|
—
|
|
|
26,763
|
|
|
—
|
|
Operating
income
|
98,182
|
|
|
86,979
|
|
|
181,740
|
|
|
155,495
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
Interest
income
|
(465)
|
|
|
(470)
|
|
|
(936)
|
|
|
(946)
|
|
Interest expense, net
of amounts capitalized
|
57,131
|
|
|
75,296
|
|
|
114,066
|
|
|
150,799
|
|
Loss on early
extinguishments of debt
|
30,962
|
|
|
904
|
|
|
31,470
|
|
|
1,058
|
|
Other, net
|
1,270
|
|
|
670
|
|
|
1,888
|
|
|
382
|
|
Boyd's share of
Borgata's non-operating items, net (a)
|
9,112
|
|
|
—
|
|
|
16,773
|
|
|
—
|
|
Total other
expense, net
|
98,010
|
|
|
76,400
|
|
|
163,261
|
|
|
151,293
|
|
Income before
income taxes
|
172
|
|
|
10,579
|
|
|
18,479
|
|
|
4,202
|
|
Income taxes benefit
(provision)
|
(6,597)
|
|
|
(5,241)
|
|
|
10,199
|
|
|
(10,089)
|
|
Net income
(loss)
|
(6,425)
|
|
|
5,338
|
|
|
28,678
|
|
|
(5,887)
|
|
Net (income) loss
attributable to noncontrolling interest (a)
|
—
|
|
|
(4,669)
|
|
|
—
|
|
|
374
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
(6,425)
|
|
|
$
|
669
|
|
|
$
|
28,678
|
|
|
$
|
(5,513)
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
0.26
|
|
|
$
|
(0.05)
|
|
Weighted average
basic shares outstanding
|
112,232
|
|
|
109,884
|
|
|
111,841
|
|
|
109,819
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
0.25
|
|
|
$
|
(0.05)
|
|
Weighted average
diluted shares outstanding
|
112,232
|
|
|
110,813
|
|
|
112,694
|
|
|
109,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 and six months ended June 30, 2015. For the
three and six months ended June 30, 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In
thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Revenues by
Reportable Segment
|
|
|
|
|
|
|
|
Las Vegas
Locals
|
$
|
153,032
|
|
|
$
|
148,270
|
|
|
$
|
303,332
|
|
|
$
|
299,713
|
|
Downtown Las
Vegas
|
58,434
|
|
|
55,552
|
|
|
115,038
|
|
|
111,285
|
|
Midwest and
South
|
217,777
|
|
|
209,104
|
|
|
435,542
|
|
|
420,740
|
|
Peninsula
|
130,624
|
|
|
127,754
|
|
|
256,533
|
|
|
250,027
|
|
Borgata
(b)
|
—
|
|
|
181,854
|
|
|
—
|
|
|
349,118
|
|
Net
revenues
|
$
|
559,867
|
|
|
$
|
722,534
|
|
|
$
|
1,110,445
|
|
|
$
|
1,430,883
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Reportable Segment
|
|
|
|
|
|
|
|
Las Vegas
Locals
|
$
|
42,175
|
|
|
$
|
36,581
|
|
|
$
|
81,052
|
|
|
$
|
76,588
|
|
Downtown Las
Vegas
|
12,307
|
|
|
8,551
|
|
|
22,984
|
|
|
17,878
|
|
Midwest and
South
|
51,777
|
|
|
42,199
|
|
|
102,761
|
|
|
86,297
|
|
Peninsula
|
49,164
|
|
|
45,282
|
|
|
95,527
|
|
|
90,043
|
|
Wholly
owned property Adjusted EBITDA
|
155,423
|
|
|
132,613
|
|
|
302,324
|
|
|
270,806
|
|
Corporate expense
(c)
|
(14,777)
|
|
|
(14,625)
|
|
|
(31,419)
|
|
|
(28,795)
|
|
Wholly
owned Adjusted EBITDA
|
140,646
|
|
|
117,988
|
|
|
270,905
|
|
|
242,011
|
|
Borgata
(b)
|
22,264
|
|
|
42,598
|
|
|
41,176
|
|
|
63,044
|
|
Adjusted
EBITDA
|
162,910
|
|
|
160,586
|
|
|
312,081
|
|
|
305,055
|
|
|
|
|
|
|
|
|
|
Other operating
costs and expenses
|
|
|
|
|
|
|
|
Deferred
rent
|
859
|
|
|
904
|
|
|
1,716
|
|
|
1,811
|
|
Depreciation and
amortization
|
51,964
|
|
|
65,898
|
|
|
103,906
|
|
|
132,077
|
|
Preopening
expenses
|
830
|
|
|
1,790
|
|
|
1,335
|
|
|
2,574
|
|
Share-based
compensation expense
|
2,926
|
|
|
3,424
|
|
|
6,367
|
|
|
9,905
|
|
Impairments of
assets
|
—
|
|
|
293
|
|
|
1,065
|
|
|
1,926
|
|
Asset transactions
costs
|
919
|
|
|
1,859
|
|
|
1,369
|
|
|
2,014
|
|
Other operating
items, net
|
54
|
|
|
(561)
|
|
|
170
|
|
|
(747)
|
|
Boyd's share of
Borgata's other operating costs and expenses
|
7,176
|
|
|
—
|
|
|
14,413
|
|
|
—
|
|
Total other
operating costs and expenses
|
64,728
|
|
|
73,607
|
|
|
130,341
|
|
|
149,560
|
|
Operating
income
|
98,182
|
|
|
86,979
|
|
|
181,740
|
|
|
155,495
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
Interest
income
|
(465)
|
|
|
(470)
|
|
|
(936)
|
|
|
(946)
|
|
Interest expense, net
of amounts capitalized
|
57,131
|
|
|
75,296
|
|
|
114,066
|
|
|
150,799
|
|
Loss on early
extinguishments of debt
|
30,962
|
|
|
904
|
|
|
31,470
|
|
|
1,058
|
|
Other, net
|
1,270
|
|
|
670
|
|
|
1,888
|
|
|
382
|
|
Boyd's share of
Borgata's non-operating items, net
|
9,112
|
|
|
—
|
|
|
16,773
|
|
|
—
|
|
Total other
expense, net
|
98,010
|
|
|
76,400
|
|
|
163,261
|
|
|
151,293
|
|
Income before
income taxes
|
172
|
|
|
10,579
|
|
|
18,479
|
|
|
4,202
|
|
Income taxes benefit
(provision)
|
(6,597)
|
|
|
(5,241)
|
|
|
10,199
|
|
|
(10,089)
|
|
Net income
(loss)
|
(6,425)
|
|
|
5,338
|
|
|
28,678
|
|
|
(5,887)
|
|
Net (income) loss attributable to
noncontrolling interest
|
—
|
|
|
(4,669)
|
|
|
—
|
|
|
374
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
(6,425)
|
|
|
$
|
669
|
|
|
$
|
28,678
|
|
|
$
|
(5,513)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and six months
ended June 30, 2015, Boyd Gaming accounted for its 50% investment
in Borgata by applying the equity method. For the three and six
months ended June 30, 2014, Boyd Gaming consolidated the financial
results of the Borgata.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In
thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues reported
for Borgata
|
|
|
|
|
|
|
|
Consolidated
|
$
|
—
|
|
|
$
|
181,854
|
|
|
$
|
—
|
|
|
$
|
349,118
|
|
Equity
Method
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
$
|
—
|
|
|
$
|
181,854
|
|
|
$
|
—
|
|
|
$
|
349,118
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reported for Borgata
|
|
|
|
|
|
|
|
Consolidated
|
$
|
—
|
|
|
$
|
42,598
|
|
|
$
|
—
|
|
|
$
|
63,044
|
|
Equity
Method
|
22,264
|
|
|
—
|
|
|
41,176
|
|
|
—
|
|
Total
|
$
|
22,264
|
|
|
$
|
42,598
|
|
|
$
|
41,176
|
|
|
$
|
63,044
|
|
|
(c) Reconciliation of
corporate expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In
thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Corporate expense
as reported on Consolidated Statements of Operations
|
$
|
17,352
|
|
|
$
|
17,621
|
|
|
$
|
37,004
|
|
|
$
|
37,541
|
|
Corporate share-based
compensation expense
|
(2,575)
|
|
|
(2,996)
|
|
|
(5,585)
|
|
|
(8,746)
|
|
Corporate expense
as reported on the above table
|
$
|
14,777
|
|
|
$
|
14,625
|
|
|
$
|
31,419
|
|
|
$
|
28,795
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Reconciliation of
Net Income (Loss) to Adjusted Earnings and Net Income (Loss) Per
Share to
|
Adjusted Earnings
Per Share (a)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
(6,425)
|
|
|
$
|
669
|
|
|
$
|
28,678
|
|
|
$
|
(5,513)
|
|
Pretax
adjustments related to Boyd Gaming:
|
|
|
|
|
|
|
|
Preopening
expenses
|
830
|
|
|
1,554
|
|
|
1,335
|
|
|
2,305
|
|
Loss on early
extinguishments of debt
|
30,962
|
|
|
904
|
|
|
31,470
|
|
|
1,058
|
|
Impairments of
assets
|
—
|
|
|
293
|
|
|
1,065
|
|
|
1,926
|
|
Asset
transactions costs
|
919
|
|
|
1,858
|
|
|
1,369
|
|
|
2,015
|
|
Other operating
items, net
|
54
|
|
|
(561)
|
|
|
170
|
|
|
(345)
|
|
Other,
net
|
1,270
|
|
|
670
|
|
|
1,888
|
|
|
295
|
|
|
|
|
|
|
|
|
|
Pretax
adjustments related to Borgata (b):
|
|
|
|
|
|
|
|
Preopening
expenses
|
—
|
|
|
236
|
|
|
—
|
|
|
269
|
|
Loss on early
extinguishments of debt
|
272
|
|
|
—
|
|
|
518
|
|
|
(1,268)
|
|
Valuation
adjustments related to consolidation, net
|
—
|
|
|
(634)
|
|
|
—
|
|
|
—
|
|
Asset
transactions costs
|
—
|
|
|
1
|
|
|
—
|
|
|
(1)
|
|
Other operating
items, net
|
(219)
|
|
|
—
|
|
|
(381)
|
|
|
(402)
|
|
Total
adjustments
|
34,088
|
|
|
4,321
|
|
|
37,434
|
|
|
5,852
|
|
|
|
|
|
|
|
|
|
Income tax
effect for above adjustments
|
(785)
|
|
|
18
|
|
|
(1,789)
|
|
|
63
|
|
Impact of tax
audit settlement on provision
|
—
|
|
|
—
|
|
|
(23,196)
|
|
|
—
|
|
Impact on
noncontrolling interest, net
|
—
|
|
|
199
|
|
|
—
|
|
|
703
|
|
Adjusted
earnings
|
$
|
26,878
|
|
|
$
|
5,207
|
|
|
$
|
41,127
|
|
|
$
|
1,105
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share attributable to Boyd Gaming Corporation
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
0.25
|
|
|
$
|
(0.05)
|
|
Pretax
adjustments related to Boyd Gaming:
|
|
|
|
|
|
|
|
Preopening
expenses
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.02
|
|
Loss on early
extinguishments of debt
|
0.28
|
|
|
0.01
|
|
|
0.29
|
|
|
0.01
|
|
Impairments of
assets
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
Asset
transactions costs
|
0.01
|
|
|
0.02
|
|
|
0.01
|
|
|
0.02
|
|
Other operating
items, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other,
net
|
0.01
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Pretax
adjustments related to Borgata (b):
|
|
|
|
|
|
|
|
Preopening
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loss on early
extinguishments of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Valuation
adjustments related to consolidation, net
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
—
|
|
Asset
transactions costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other operating
items, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
adjustments
|
0.31
|
|
|
0.04
|
|
|
0.34
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
Income tax
effect for above adjustments
|
(0.01)
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Impact of tax
audit settlement on provision
|
—
|
|
|
—
|
|
|
(0.21)
|
|
|
—
|
|
Impact on
noncontrolling interest, net
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Adjusted earnings
per share
|
$
|
0.24
|
|
|
$
|
0.05
|
|
|
$
|
0.36
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
113,021
|
|
|
110,813
|
|
|
112,694
|
|
|
109,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
June 30, 2015 (a)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Boyd Gaming Wholly
Owned
|
|
|
(In thousands,
except per share data)
|
Excluding
Peninsula
Segment
|
|
Peninsula
Segment
|
|
Eliminations
|
|
Boyd
Gaming
Consolidated
|
Revenues
|
|
|
|
|
|
|
|
Gaming
|
$
|
347,647
|
|
|
$
|
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
|
|
Preopening
expenses
|
829
|
|
|
1
|
|
|
—
|
|
|
830
|
|
Impairments of
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Asset transactions
costs
|
397
|
|
|
522
|
|
|
—
|
|
|
919
|
|
Other operating
items, net
|
(1)
|
|
|
55
|
|
|
—
|
|
|
54
|
|
Total costs
and expenses
|
377,288
|
|
|
104,538
|
|
|
(5,053)
|
|
|
476,773
|
|
|
|
|
|
|
|
|
|
Boyd's share of
Borgata's operating income
|
15,088
|
|
|
—
|
|
|
—
|
|
|
15,088
|
|
|
|
|
|
|
|
|
|
Operating
income
|
72,098
|
|
|
26,084
|
|
|
—
|
|
|
98,182
|
|
|
|
|
|
|
|
|
|
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
|
|
Boyd's share of
Borgata's non-operating expenses, net
|
9,112
|
|
|
—
|
|
|
—
|
|
|
9,112
|
|
Total other
expense, net
|
79,071
|
|
|
18,939
|
|
|
—
|
|
|
98,010
|
|
Income (loss)
before income taxes
|
(6,973)
|
|
|
7,145
|
|
|
—
|
|
|
172
|
|
Income taxes benefit
(provision)
|
(2,099)
|
|
|
(4,498)
|
|
|
—
|
|
|
(6,597)
|
|
Net income
(loss)
|
(9,072)
|
|
|
2,647
|
|
|
—
|
|
|
(6,425)
|
|
Net (income)
loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
(9,072)
|
|
|
$
|
2,647
|
|
|
$
|
—
|
|
|
$
|
(6,425)
|
|
|
|
|
|
|
|
|
|
Basic net loss per
common share
|
|
|
|
|
|
|
$
|
(0.06)
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
112,232
|
|
|
|
|
|
|
|
|
|
Diluted net loss
per common share
|
|
|
|
|
|
|
$
|
(0.06)
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
112,232
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
See note (a) on
Condensed Consolidated Statements of Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Condensed
Consolidating Statements of Operations
|
Three Months Ended
June 30, 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
|
$
|
334,090
|
|
|
$
|
118,225
|
|
|
$
|
—
|
|
|
$
|
452,315
|
|
|
$
|
166,599
|
|
|
$
|
—
|
|
|
$
|
618,914
|
|
Food and
beverage
|
66,679
|
|
|
9,610
|
|
|
—
|
|
|
76,289
|
|
|
34,064
|
|
|
—
|
|
|
110,353
|
|
Room
|
40,760
|
|
|
—
|
|
|
—
|
|
|
40,760
|
|
|
29,602
|
|
|
—
|
|
|
70,362
|
|
Other
|
30,861
|
|
|
4,825
|
|
|
(4,821)
|
|
|
30,865
|
|
|
10,308
|
|
|
—
|
|
|
41,173
|
|
Gross
revenues
|
472,390
|
|
|
132,660
|
|
|
(4,821)
|
|
|
600,229
|
|
|
240,573
|
|
|
—
|
|
|
840,802
|
|
Less promotional
allowances
|
54,643
|
|
|
4,906
|
|
|
—
|
|
|
59,549
|
|
|
58,719
|
|
|
—
|
|
|
118,268
|
|
Net
revenues
|
417,747
|
|
|
127,754
|
|
|
(4,821)
|
|
|
540,680
|
|
|
181,854
|
|
|
—
|
|
|
722,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
166,260
|
|
|
56,954
|
|
|
—
|
|
|
223,214
|
|
|
65,000
|
|
|
—
|
|
|
288,214
|
|
Food and
beverage
|
36,786
|
|
|
6,165
|
|
|
—
|
|
|
42,951
|
|
|
18,245
|
|
|
—
|
|
|
61,196
|
|
Room
|
10,788
|
|
|
—
|
|
|
—
|
|
|
10,788
|
|
|
3,693
|
|
|
—
|
|
|
14,481
|
|
Other
|
18,338
|
|
|
8,201
|
|
|
(4,821)
|
|
|
21,718
|
|
|
8,644
|
|
|
—
|
|
|
30,362
|
|
Selling, general and
administrative
|
70,231
|
|
|
12,593
|
|
|
—
|
|
|
82,824
|
|
|
28,555
|
|
|
—
|
|
|
111,379
|
|
Maintenance and
utilities
|
24,520
|
|
|
3,382
|
|
|
—
|
|
|
27,902
|
|
|
15,121
|
|
|
—
|
|
|
43,023
|
|
Depreciation and
amortization
|
33,443
|
|
|
18,325
|
|
|
—
|
|
|
51,768
|
|
|
14,130
|
|
|
—
|
|
|
65,898
|
|
Corporate
expense
|
17,236
|
|
|
385
|
|
|
—
|
|
|
17,621
|
|
|
—
|
|
|
—
|
|
|
17,621
|
|
Preopening
expenses
|
1,130
|
|
|
424
|
|
|
—
|
|
|
1,554
|
|
|
236
|
|
|
—
|
|
|
1,790
|
|
Impairments of
assets
|
293
|
|
|
—
|
|
|
—
|
|
|
293
|
|
|
—
|
|
|
—
|
|
|
293
|
|
Asset transactions
costs
|
1,755
|
|
|
103
|
|
|
—
|
|
|
1,858
|
|
|
1
|
|
|
—
|
|
|
1,859
|
|
Other operating
items, net
|
(578)
|
|
|
17
|
|
|
—
|
|
|
(561)
|
|
|
—
|
|
|
—
|
|
|
(561)
|
|
Total costs
and expenses
|
380,202
|
|
|
106,549
|
|
|
(4,821)
|
|
|
481,930
|
|
|
153,625
|
|
|
—
|
|
|
635,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boyd's share of
Borgata's operating income
|
14,115
|
|
|
—
|
|
|
—
|
|
|
14,115
|
|
|
—
|
|
|
(14,115)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
51,660
|
|
|
21,205
|
|
|
—
|
|
|
72,865
|
|
|
28,229
|
|
|
(14,115)
|
|
|
86,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
—
|
|
|
(470)
|
|
|
—
|
|
|
(470)
|
|
|
—
|
|
|
—
|
|
|
(470)
|
|
Interest expense, net
of amounts capitalized
|
38,293
|
|
|
19,175
|
|
|
|
|
57,468
|
|
|
17,828
|
|
|
—
|
|
|
75,296
|
|
Loss on early
extinguishments of debt
|
—
|
|
|
904
|
|
|
—
|
|
|
904
|
|
|
—
|
|
|
—
|
|
|
904
|
|
Other, net
|
756
|
|
|
(86)
|
|
|
—
|
|
|
670
|
|
|
—
|
|
|
—
|
|
|
670
|
|
Boyd's share of
Borgata's non-operating expenses, net
|
9,446
|
|
|
—
|
|
|
—
|
|
|
9,446
|
|
|
—
|
|
|
(9,446)
|
|
|
—
|
|
Total other expense,
net
|
48,495
|
|
|
19,523
|
|
|
—
|
|
|
68,018
|
|
|
17,828
|
|
|
(9,446)
|
|
|
76,400
|
|
Income (loss)
before income taxes
|
3,165
|
|
|
1,682
|
|
|
—
|
|
|
4,847
|
|
|
10,401
|
|
|
(4,669)
|
|
|
10,579
|
|
Income taxes
provision
|
(3,686)
|
|
|
(492)
|
|
|
—
|
|
|
(4,178)
|
|
|
(1,063)
|
|
|
—
|
|
|
(5,241)
|
|
Net income
(loss)
|
(521)
|
|
|
1,190
|
|
|
—
|
|
|
669
|
|
|
9,338
|
|
|
(4,669)
|
|
|
5,338
|
|
Net income
attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,669)
|
|
|
(4,669)
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
(521)
|
|
|
$
|
1,190
|
|
|
$
|
—
|
|
|
$
|
669
|
|
|
$
|
9,338
|
|
|
$
|
(9,338)
|
|
|
$
|
669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per common share
|
|
|
|
|
|
|
$
|
0.01
|
|
|
|
|
|
|
$
|
0.01
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
109,884
|
|
|
|
|
|
|
109,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
$
|
0.01
|
|
|
|
|
|
|
$
|
0.01
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
110,813
|
|
|
|
|
|
|
110,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Condensed
Consolidating Statements of Operations
|
Six Months Ended
June 30, 2015 (a)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Boyd Gaming Wholly
Owned
|
|
|
(In thousands,
except per share data)
|
Excluding
Peninsula
Segment
|
|
Peninsula
Segment
|
|
Eliminations
|
|
Boyd Gaming
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
|
|
Preopening
expenses
|
1,334
|
|
|
1
|
|
|
—
|
|
|
1,335
|
|
Impairments of
assets
|
1,065
|
|
|
—
|
|
|
—
|
|
|
1,065
|
|
Asset transactions
costs
|
717
|
|
|
652
|
|
|
—
|
|
|
1,369
|
|
Other operating
items, net
|
70
|
|
|
100
|
|
|
—
|
|
|
170
|
|
Total costs
and expenses
|
758,869
|
|
|
206,480
|
|
|
(9,881)
|
|
|
955,468
|
|
|
|
|
|
|
|
|
|
Boyd's share of
Borgata's operating income
|
26,763
|
|
|
—
|
|
|
—
|
|
|
26,763
|
|
|
|
|
|
|
|
|
|
Operating
income
|
131,689
|
|
|
50,051
|
|
|
—
|
|
|
181,740
|
|
|
|
|
|
|
|
|
|
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
|
|
Boyd's share of
Borgata's non-operating expenses, net
|
16,773
|
|
|
—
|
|
|
—
|
|
|
16,773
|
|
Total other
expense, net
|
125,450
|
|
|
37,811
|
|
|
—
|
|
|
163,261
|
|
Income before
income taxes
|
6,239
|
|
|
12,240
|
|
|
—
|
|
|
18,479
|
|
Income taxes
benefit (provision)
|
19,196
|
|
|
(8,997)
|
|
|
—
|
|
|
10,199
|
|
Net
income
|
25,435
|
|
|
3,243
|
|
|
—
|
|
|
28,678
|
|
Net (income)
loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
attributable to Boyd Gaming Corporation
|
$
|
25,435
|
|
|
$
|
3,243
|
|
|
$
|
—
|
|
|
$
|
28,678
|
|
|
|
|
|
|
|
|
|
Basic net income
per common share
|
|
|
|
|
|
|
$
|
0.26
|
|
Weighted average basic
shares outstanding
|
|
|
|
|
|
|
111,841
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
$
|
0.25
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
112,694
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
See note (a) on
Condensed Consolidated Statements of Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Condensed
Consolidating Statements of Operations
|
Six Months Ended
June 30, 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
|
$
|
675,294
|
|
|
$
|
232,092
|
|
|
$
|
—
|
|
|
$
|
907,386
|
|
|
$
|
320,285
|
|
|
$
|
—
|
|
|
$
|
1,227,671
|
|
Food and
beverage
|
132,820
|
|
|
19,058
|
|
|
—
|
|
|
151,878
|
|
|
65,118
|
|
|
—
|
|
|
216,996
|
|
Room
|
79,571
|
|
|
—
|
|
|
—
|
|
|
79,571
|
|
|
55,171
|
|
|
—
|
|
|
134,742
|
|
Other
|
62,033
|
|
|
8,723
|
|
|
(9,502)
|
|
|
61,254
|
|
|
18,879
|
|
|
—
|
|
|
80,133
|
|
Gross
revenues
|
949,718
|
|
|
259,873
|
|
|
(9,502)
|
|
|
1,200,089
|
|
|
459,453
|
|
|
—
|
|
|
1,659,542
|
|
Less promotional
allowances
|
108,477
|
|
|
9,847
|
|
|
—
|
|
|
118,324
|
|
|
110,335
|
|
|
—
|
|
|
228,659
|
|
Net
revenues
|
841,241
|
|
|
250,026
|
|
|
(9,502)
|
|
|
1,081,765
|
|
|
349,118
|
|
|
—
|
|
|
1,430,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
334,759
|
|
|
110,165
|
|
|
—
|
|
|
444,924
|
|
|
128,464
|
|
|
—
|
|
|
573,388
|
|
Food and
beverage
|
72,274
|
|
|
12,251
|
|
|
—
|
|
|
84,525
|
|
|
33,940
|
|
|
—
|
|
|
118,465
|
|
Room
|
21,174
|
|
|
—
|
|
|
—
|
|
|
21,174
|
|
|
6,477
|
|
|
—
|
|
|
27,651
|
|
Other
|
37,000
|
|
|
15,513
|
|
|
(9,502)
|
|
|
43,011
|
|
|
15,143
|
|
|
—
|
|
|
58,154
|
|
Selling, general and
administrative
|
141,135
|
|
|
24,966
|
|
|
—
|
|
|
166,101
|
|
|
69,957
|
|
|
—
|
|
|
236,058
|
|
Maintenance and
utilities
|
47,601
|
|
|
6,592
|
|
|
—
|
|
|
54,193
|
|
|
32,094
|
|
|
—
|
|
|
86,287
|
|
Depreciation and
amortization
|
67,296
|
|
|
36,790
|
|
|
—
|
|
|
104,086
|
|
|
27,991
|
|
|
—
|
|
|
132,077
|
|
Corporate
expense
|
36,733
|
|
|
808
|
|
|
—
|
|
|
37,541
|
|
|
—
|
|
|
—
|
|
|
37,541
|
|
Preopening
expenses
|
1,696
|
|
|
609
|
|
|
—
|
|
|
2,305
|
|
|
269
|
|
|
—
|
|
|
2,574
|
|
Impairments of
assets
|
1,926
|
|
|
—
|
|
|
—
|
|
|
1,926
|
|
|
—
|
|
|
—
|
|
|
1,926
|
|
Asset transactions
costs
|
1,895
|
|
|
120
|
|
|
—
|
|
|
2,015
|
|
|
(1)
|
|
|
—
|
|
|
2,014
|
|
Other operating
items, net
|
(428)
|
|
|
83
|
|
|
—
|
|
|
(345)
|
|
|
(402)
|
|
|
—
|
|
|
(747)
|
|
Total costs
and expenses
|
763,061
|
|
|
207,897
|
|
|
(9,502)
|
|
|
961,456
|
|
|
313,932
|
|
|
—
|
|
|
1,275,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boyd's share of
Borgata's operating income
|
17,593
|
|
|
—
|
|
|
—
|
|
|
17,593
|
|
|
—
|
|
|
(17,593)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
95,773
|
|
|
42,129
|
|
|
—
|
|
|
137,902
|
|
|
35,186
|
|
|
(17,593)
|
|
|
155,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(4)
|
|
|
(942)
|
|
|
—
|
|
|
(946)
|
|
|
—
|
|
|
—
|
|
|
(946)
|
|
Interest expense, net
of amounts capitalized
|
76,788
|
|
|
38,493
|
|
|
|
|
115,281
|
|
|
35,518
|
|
|
|
|
150,799
|
|
Loss on early
extinguishments of debt
|
—
|
|
|
1,058
|
|
|
—
|
|
|
1,058
|
|
|
—
|
|
|
—
|
|
|
1,058
|
|
Other, net
|
365
|
|
|
17
|
|
|
—
|
|
|
382
|
|
|
—
|
|
|
—
|
|
|
382
|
|
Boyd's share of
Borgata's non-operating expenses, net
|
17,967
|
|
|
—
|
|
|
—
|
|
|
17,967
|
|
|
—
|
|
|
(17,967)
|
|
|
—
|
|
Total other expense,
net
|
95,116
|
|
|
38,626
|
|
|
—
|
|
|
133,742
|
|
|
35,518
|
|
|
(17,967)
|
|
|
151,293
|
|
Income (loss)
before income taxes
|
657
|
|
|
3,503
|
|
|
—
|
|
|
4,160
|
|
|
(332)
|
|
|
374
|
|
|
4,202
|
|
Income taxes
provision
|
(5,386)
|
|
|
(4,287)
|
|
|
—
|
|
|
(9,673)
|
|
|
(416)
|
|
|
—
|
|
|
(10,089)
|
|
Net income
(loss)
|
(4,729)
|
|
|
(784)
|
|
|
—
|
|
|
(5,513)
|
|
|
(748)
|
|
|
374
|
|
|
(5,887)
|
|
Net loss attributable
to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
374
|
|
|
374
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
(4,729)
|
|
|
$
|
(784)
|
|
|
$
|
—
|
|
|
$
|
(5,513)
|
|
|
$
|
(748)
|
|
|
$
|
748
|
|
|
$
|
(5,513)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
common share
|
|
|
|
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
$
|
(0.05)
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
109,819
|
|
|
|
|
|
|
109,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss
per common share
|
|
|
|
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
$
|
(0.05)
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
109,819
|
|
|
|
|
|
|
109,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In
thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
Gaming
|
$
|
170,277
|
|
|
$
|
166,599
|
|
|
$
|
335,405
|
|
|
$
|
320,285
|
|
Food and
beverage
|
36,392
|
|
|
34,064
|
|
|
70,860
|
|
|
65,118
|
|
Room
|
30,349
|
|
|
29,602
|
|
|
57,953
|
|
|
55,171
|
|
Other
|
10,397
|
|
|
10,308
|
|
|
18,907
|
|
|
18,879
|
|
Gross
revenues
|
247,415
|
|
|
240,573
|
|
|
483,125
|
|
|
459,453
|
|
Less promotional
allowances
|
56,252
|
|
|
58,719
|
|
|
109,373
|
|
|
110,335
|
|
Net
revenues
|
191,163
|
|
|
181,854
|
|
|
373,752
|
|
|
349,118
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Gaming
|
67,057
|
|
|
65,000
|
|
|
133,976
|
|
|
128,464
|
|
Food and
beverage
|
19,147
|
|
|
18,245
|
|
|
36,834
|
|
|
33,940
|
|
Room
|
3,799
|
|
|
3,693
|
|
|
7,059
|
|
|
6,477
|
|
Other
|
9,590
|
|
|
8,644
|
|
|
16,344
|
|
|
15,143
|
|
Selling, general and
administrative
|
32,523
|
|
|
28,555
|
|
|
66,676
|
|
|
69,957
|
|
Maintenance and
utilities
|
14,520
|
|
|
15,072
|
|
|
30,511
|
|
|
31,999
|
|
Depreciation and
amortization
|
14,791
|
|
|
14,812
|
|
|
29,590
|
|
|
29,354
|
|
Preopening
expenses
|
—
|
|
|
236
|
|
|
—
|
|
|
269
|
|
Other operating
items, net
|
(441)
|
|
|
1
|
|
|
(765)
|
|
|
(403)
|
|
Total
operating costs and expenses
|
160,986
|
|
|
154,258
|
|
|
320,225
|
|
|
315,200
|
|
Operating
income
|
30,177
|
|
|
27,596
|
|
|
53,527
|
|
|
33,918
|
|
Other
expense
|
|
|
|
|
|
|
|
Interest expense, net
of amounts capitalized
|
16,307
|
|
|
17,828
|
|
|
32,964
|
|
|
35,518
|
|
Loss on early
extinguishments of debt
|
543
|
|
|
—
|
|
|
1,035
|
|
|
—
|
|
Total other
expense
|
16,850
|
|
|
17,828
|
|
|
33,999
|
|
|
35,518
|
|
Income (loss)
before state income taxes
|
13,327
|
|
|
9,768
|
|
|
19,528
|
|
|
(1,600)
|
|
State income tax
benefit (expense)
|
(1,374)
|
|
|
(1,006)
|
|
|
453
|
|
|
(302)
|
|
Net income
(loss)
|
$
|
11,953
|
|
|
$
|
8,762
|
|
|
$
|
19,981
|
|
|
$
|
(1,902)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA to Operating Income
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In
thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Adjusted
EBITDA
|
$
|
44,527
|
|
|
$
|
42,645
|
|
|
$
|
82,352
|
|
|
$
|
63,138
|
|
Less:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
14,791
|
|
|
14,812
|
|
|
29,590
|
|
|
29,354
|
|
Preopening
expenses
|
—
|
|
|
236
|
|
|
—
|
|
|
269
|
|
Other operating items,
net
|
(441)
|
|
|
1
|
|
|
(765)
|
|
|
(403)
|
|
Operating
income
|
$
|
30,177
|
|
|
$
|
27,596
|
|
|
$
|
53,527
|
|
|
$
|
33,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 and six months ended
June 30, 2015 and pro forma financial
results for the three and six months ended June 30, 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In thousands,
except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
Gaming
|
$
|
468,580
|
|
|
$
|
452,315
|
|
|
$
|
933,337
|
|
|
$
|
907,386
|
|
Food and
beverage
|
77,909
|
|
|
76,289
|
|
|
154,205
|
|
|
151,878
|
|
Room
|
42,332
|
|
|
40,760
|
|
|
81,685
|
|
|
79,571
|
|
Other
|
30,642
|
|
|
30,865
|
|
|
60,327
|
|
|
61,254
|
|
Gross
revenues
|
619,463
|
|
|
600,229
|
|
|
1,229,554
|
|
|
1,200,089
|
|
Less promotional
allowances
|
59,596
|
|
|
59,549
|
|
|
119,109
|
|
|
118,324
|
|
Net
revenues
|
559,867
|
|
|
540,680
|
|
|
1,110,445
|
|
|
1,081,765
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Gaming
|
224,686
|
|
|
223,214
|
|
|
451,383
|
|
|
444,924
|
|
Food and
beverage
|
42,913
|
|
|
42,951
|
|
|
84,480
|
|
|
84,525
|
|
Room
|
10,682
|
|
|
10,788
|
|
|
20,729
|
|
|
21,174
|
|
Other
|
19,744
|
|
|
21,718
|
|
|
39,390
|
|
|
43,011
|
|
Selling, general and
administrative
|
81,013
|
|
|
82,824
|
|
|
162,702
|
|
|
166,101
|
|
Maintenance and
utilities
|
26,616
|
|
|
27,902
|
|
|
51,935
|
|
|
54,193
|
|
Depreciation and
amortization
|
51,964
|
|
|
51,768
|
|
|
103,906
|
|
|
104,086
|
|
Corporate
expense
|
17,352
|
|
|
17,621
|
|
|
37,004
|
|
|
37,541
|
|
Preopening
expenses
|
830
|
|
|
1,554
|
|
|
1,335
|
|
|
2,305
|
|
Impairments of
assets
|
—
|
|
|
293
|
|
|
1,065
|
|
|
1,926
|
|
Asset transactions
costs
|
919
|
|
|
1,858
|
|
|
1,369
|
|
|
2,015
|
|
Other operating
items, net
|
54
|
|
|
(561)
|
|
|
170
|
|
|
(345)
|
|
Total operating
costs and expenses
|
476,773
|
|
|
481,930
|
|
|
955,468
|
|
|
961,456
|
|
Boyd's share of
Borgata's operating income
|
15,088
|
|
|
14,115
|
|
|
26,763
|
|
|
17,593
|
|
Operating
income
|
98,182
|
|
|
72,865
|
|
|
181,740
|
|
|
137,902
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
Interest
income
|
(465)
|
|
|
(470)
|
|
|
(936)
|
|
|
(946)
|
|
Interest expense, net
of amounts capitalized
|
57,131
|
|
|
57,468
|
|
|
114,066
|
|
|
115,281
|
|
Loss on early
extinguishments of debt
|
30,962
|
|
|
904
|
|
|
31,470
|
|
|
1,058
|
|
Other, net
|
1,270
|
|
|
670
|
|
|
1,888
|
|
|
382
|
|
Boyd's share of
Borgata's non-operating items, net
|
9,112
|
|
|
9,446
|
|
|
16,773
|
|
|
17,967
|
|
Total other
expense, net
|
98,010
|
|
|
68,018
|
|
|
163,261
|
|
|
133,742
|
|
Income before
income taxes
|
172
|
|
|
4,847
|
|
|
18,479
|
|
|
4,160
|
|
Income taxes benefit
(provision)
|
(6,597)
|
|
|
(4,178)
|
|
|
10,199
|
|
|
(9,673)
|
|
Net income
(loss)
|
(6,425)
|
|
|
669
|
|
|
28,678
|
|
|
(5,513)
|
|
Net (income) loss
attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
(6,425)
|
|
|
$
|
669
|
|
|
$
|
28,678
|
|
|
$
|
(5,513)
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
0.26
|
|
|
$
|
(0.05)
|
|
Weighted average
basic shares outstanding
|
112,232
|
|
|
109,884
|
|
|
111,841
|
|
|
109,819
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
0.25
|
|
|
$
|
(0.05)
|
|
Weighted average
diluted shares outstanding
|
112,232
|
|
|
110,813
|
|
|
112,694
|
|
|
109,819
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL PRO
FORMA INFORMATION
|
Reconciliation of
Pro Forma Adjusted EBITDA to Pro Forma Operating
Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(In
thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Revenues by
Reportable Segment
|
|
|
|
|
|
|
|
Las Vegas
Locals
|
$
|
153,032
|
|
|
$
|
148,270
|
|
|
$
|
303,332
|
|
|
$
|
299,713
|
|
Downtown Las
Vegas
|
58,434
|
|
|
55,552
|
|
|
115,038
|
|
|
111,285
|
|
Midwest and
South
|
217,777
|
|
|
209,104
|
|
|
435,542
|
|
|
420,740
|
|
Peninsula
|
130,624
|
|
|
127,754
|
|
|
256,533
|
|
|
250,027
|
|
Net
revenues
|
$
|
559,867
|
|
|
$
|
540,680
|
|
|
$
|
1,110,445
|
|
|
$
|
1,081,765
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Reportable Segment
|
|
|
|
|
|
|
|
Las Vegas
Locals
|
$
|
42,175
|
|
|
$
|
36,581
|
|
|
$
|
81,052
|
|
|
$
|
76,588
|
|
Downtown Las
Vegas
|
12,307
|
|
|
8,551
|
|
|
22,984
|
|
|
17,878
|
|
Midwest and
South
|
51,777
|
|
|
42,199
|
|
|
102,761
|
|
|
86,297
|
|
Peninsula
|
49,164
|
|
|
45,282
|
|
|
95,527
|
|
|
90,043
|
|
Wholly
owned property Adjusted EBITDA
|
155,423
|
|
|
132,613
|
|
|
302,324
|
|
|
270,806
|
|
Corporate
expense
|
(14,777)
|
|
|
(14,625)
|
|
|
(31,419)
|
|
|
(28,795)
|
|
Wholly
owned Adjusted EBITDA
|
140,646
|
|
|
117,988
|
|
|
270,905
|
|
|
242,011
|
|
Boyd's share of
Borgata's Adjusted EBITDA
|
22,264
|
|
|
21,299
|
|
|
41,176
|
|
|
31,522
|
|
Adjusted
EBITDA
|
162,910
|
|
|
139,287
|
|
|
312,081
|
|
|
273,533
|
|
|
|
|
|
|
|
|
|
Other operating
costs and expenses
|
|
|
|
|
|
|
|
Deferred
rent
|
859
|
|
|
902
|
|
|
1,716
|
|
|
1,811
|
|
Depreciation and
amortization
|
51,964
|
|
|
51,768
|
|
|
103,906
|
|
|
104,086
|
|
Preopening
expenses
|
830
|
|
|
1,554
|
|
|
1,335
|
|
|
2,305
|
|
Share-based
compensation expense
|
2,926
|
|
|
3,424
|
|
|
6,367
|
|
|
9,905
|
|
Impairments of
assets
|
—
|
|
|
293
|
|
|
1,065
|
|
|
1,926
|
|
Asset transactions
costs
|
919
|
|
|
1,858
|
|
|
1,369
|
|
|
2,015
|
|
Other operating
items, net
|
54
|
|
|
(561)
|
|
|
170
|
|
|
(346)
|
|
Boyd's share of
Borgata's operating costs and expenses
|
7,176
|
|
|
7,184
|
|
|
14,413
|
|
|
13,929
|
|
Total other
operating costs and expenses
|
64,728
|
|
|
66,422
|
|
|
130,341
|
|
|
135,631
|
|
Operating
income
|
98,182
|
|
|
72,865
|
|
|
181,740
|
|
|
137,902
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
Interest
income
|
(465)
|
|
|
(470)
|
|
|
(936)
|
|
|
(946)
|
|
Interest expense, net
of amounts capitalized
|
57,131
|
|
|
57,468
|
|
|
114,066
|
|
|
115,281
|
|
Loss on early
extinguishments of debt
|
30,962
|
|
|
904
|
|
|
31,470
|
|
|
1,058
|
|
Other, net
|
1,270
|
|
|
670
|
|
|
1,888
|
|
|
382
|
|
Boyd's share of
Borgata's non-operating items, net
|
9,112
|
|
|
9,446
|
|
|
16,773
|
|
|
17,967
|
|
Total other
expense, net
|
98,010
|
|
|
68,018
|
|
|
163,261
|
|
|
133,742
|
|
Income before
income taxes
|
172
|
|
|
4,847
|
|
|
18,479
|
|
|
4,160
|
|
Income taxes benefit
(provision)
|
(6,597)
|
|
|
(4,178)
|
|
|
10,199
|
|
|
(9,673)
|
|
Net income
(loss)
|
(6,425)
|
|
|
669
|
|
|
28,678
|
|
|
(5,513)
|
|
Net (income) loss
attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income (loss)
attributable to Boyd Gaming Corporation
|
$
|
(6,425)
|
|
|
$
|
669
|
|
|
$
|
28,678
|
|
|
$
|
(5,513)
|
|
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, among others,
forward-looking statements in this press release include statements
regarding: the Company's views that there is a strengthening
consumer market, the Company's statement that is remaining focused
on continuing to produce strong results for shareholders, 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.
Logo -
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SOURCE Boyd Gaming Corporation