UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________________________________________________
FORM 8-K
____________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 23, 2015
____________________________________________________________________
Boyd Gaming Corporation
(Exact Name of Registrant as Specified in its Charter)
____________________________________________________________________
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| | | | |
Nevada | | 001-12882 | | 88-0242733 |
(State or Other Jurisdiction of Incorporation) | | (Commission File Number) | | (I.R.S. Employer Identification Number) |
3883 Howard Hughes Parkway, Ninth Floor
Las Vegas, Nevada 89169
(Address of Principal Executive Offices, Including Zip Code)
(702) 792-7200
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On July 23, 2015, Boyd Gaming Corporation issued a press release announcing its financial results for the second quarter ended June 30, 2015 and other financial information. A copy of the press release is furnished hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
|
| | |
Exhibit Number | | Description |
| | |
99.1 | | Press Release, dated July 23, 2015 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | |
Date: | July 23, 2015 | Boyd Gaming Corporation |
| | |
| By: | /s/ Anthony D. McDuffie |
| | Anthony D. McDuffie |
| | Vice President and Chief Accounting Officer |
| | |
EXHIBIT INDEX
|
| | |
Exhibit Number | | Description |
| | |
99.1 | | Press Release, dated July 23, 2015 |
Exhibit 99.1
Financial Contact:
Josh Hirsberg
(702) 792-7234
joshhirsberg@boydgaming.com
Media Contact:
David Strow
(702) 792-7386
davidstrow@boydgaming.com
BOYD GAMING REPORTS SECOND-QUARTER 2015 RESULTS
Second-Quarter 2015 Highlights
| |
• | All Business Segments Grow Gaming and Non-Gaming Revenues |
| |
• | Company Achieves Double-Digit EBITDA Gains for Third Straight Quarter |
| |
• | Companywide Operating Margins Improve for Fifth Consecutive Quarter |
LAS VEGAS - JULY 23, 2015 - 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 (Loss) 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.
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