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