Boyd Gaming Corp (BYD)

[MCArmel1]

Boyd Gaming beats by $0.04, beats on revenue

Apr 30 2015, 16:13 ET | About: Boyd Gaming Corporation (BYD) | By: Niloofer Shaikh, SA News Editor

Boyd Gaming (NYSE:BYD): Q1 EPS of $0.13 beats by $0.04.
Revenue of $550.58M (-22.3% Y/Y) beats by $1.54M.
Press Release

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Boyd Gaming Reports First-Quarter 2015 Results
Thu April 30, 2015 4:05 PM|PR Newswire | About: BYD

LAS VEGAS, April 30, 2015 /PRNewswire/ -- Boyd Gaming Corporation (BYD) today reported financial results for the first quarter ended March 31, 2015.
photos.prnewswire.com/prnvar/20030219/BOYDLOGO
Boyd Gaming reported first-quarter 2015 net revenues of $550.6 million, an increase of 1.8% compared to pro forma net revenues of $541.1 million for the same quarter in 2014. Total Adjusted EBITDA(1) was $149.2 million, up 11.1% from the comparable pro forma amount of $134.2 million for the year-ago period. Effective September 30, 2014, the Company deconsolidated Borgata and is accounting for its 50% investment in Borgata by applying the equity method for periods subsequent to that date. The prior-year pro forma amounts reflect the results for Borgata on a comparable equity method basis.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "In the first quarter, we delivered broad-based EBITDA growth and margin improvement, driven by higher revenues and more efficient operations. We continued to make progress enhancing non-gaming amenities across our portfolio, allowing us to further capitalize on growing customer demand in this area. We also continued to use free cash flow to further reduce debt during the quarter. The execution of our Company's strategic plan is clearly improving our growth and profit potential, and increasing long-term shareholder value."

Adjusted Earnings(1) for the first quarter 2015 were $14.2 million, or $0.13 per share, compared to a loss of $4.1 million, or $0.04 per share, for the same period in 2014. The calculations of Adjusted Earnings, Adjusted Earnings per share, and pro forma results reflecting Borgata on a comparable basis for all periods are presented in tables at the end of this press release.

On a GAAP basis, the Company reported net income of $35.1 million, or $0.31 per share, for the first quarter 2015, compared to a net loss of $6.2 million, or $0.06 per share, for the year-ago period. The income tax provision for the first quarter 2015 was favorably impacted by the settlement of the Company's 2005 through 2009 IRS (IRS) appeal, which resulted in a $23.2 million reduction to the Company's first quarter 2015 income tax provision. The impact of the settlement is not included in Adjusted Earnings or Adjusted Earnings per share.

(1)

See footnotes at the end of the release for additional information relative to non-GAAP financial measures.

Key Operations Review

Las Vegas Locals
In the Las Vegas Locals segment, first-quarter 2015 net revenues were $150.3 million, compared to $151.4 million in the year-ago period. First-quarter 2015 Adjusted EBITDA was $38.9 million, versus $40.0 million in the first quarter of 2014. Declines in revenue and EBITDA were the result of significant business disruption caused by an extensive roadway project adjacent to the Suncoast, as well as lower sports book hold related to the Super Bowl. These items were partially offset by growth in non-gaming revenues, which increased for the seventh consecutive quarter.

Downtown Las Vegas
In the Downtown Las Vegas segment, net revenues were $56.6 million in the first quarter of 2015, up 1.6% from $55.7 million in the year-ago period. Adjusted EBITDA increased 14.5% to $10.7 million, compared to $9.3 million in the first quarter of 2014. Results reflect increased gaming revenues from Hawaiian customers, continued growth in pedestrian traffic in downtown Las Vegas, and lower fuel costs at the Company's Hawaiian charter service.

Midwest and South; Peninsula
In the Midwest and South segment, net revenues were $217.8 million, an increase of 2.9% from $211.6 million in the first quarter of 2014. Adjusted EBITDA increased 15.6% to $51.0 million, compared to $44.1 million in the year-ago period.

The Peninsula segment reported net revenues of $125.9 million, up 3.0% from $122.3 million in the first quarter of 2014. Adjusted EBITDA grew 3.6% to $46.4 million, compared to $44.8 million in the year-ago period.

Positive results were driven by broad-based revenue growth and improved operating margins. Ten of the 12 properties in the segments generated revenue and EBITDA growth in the quarter, led by particularly strong performances at Kansas Star, IP, Blue Chip and Treasure Chest. Delta Downs achieved EBITDA levels similar to last year's record performance due to strong visitation from its core customers, despite the introduction of significant new capacity in the market.

Borgata
Borgata reported first quarter 2015 net revenues of $182.6 million, an increase of 9.2% from $167.3 million in revenues reported in the year-ago period. Adjusted EBITDA at Borgata was $37.8 million, nearly doubling from $20.5 million in the year-ago period.

Due to its deconsolidation, the Company now applies the equity method of accounting to its investment in Borgata. The Company's share of Borgata's Adjusted EBITDA was $18.9 million for the first quarter of 2015 as compared to pro forma Adjusted EBITDA of $10.2 million for the prior-year period.

Borgata generated a 7.4% increase in gaming revenue during the quarter, with growth in both slot and table game win. Non-gaming revenue grew broadly as well; the property generated an additional 14,000 hotel room nights during the first quarter, and food and beverage revenues increased 11%. EBITDA benefitted from revenue growth, strong flow-through, and lower property taxes.

Additionally, Borgata's online operations generated a profit for the third consecutive quarter, generating $1.1 million in EBITDA during the first quarter of 2015, compared to a loss of $3.2 million in the year-ago quarter.

Balance Sheet Statistics
As of March 31, 2015, Boyd Gaming had cash on hand of $130.8 million, including $27.7 million related to Peninsula. Total debt was $3.42 billion, of which $1.08 billion was related to Peninsula. As a result of the deconsolidation, Borgata's cash and debt balances are no longer included in the Company's balance sheet. Borgata had cash on hand of $28.5 million and total debt of $733.1 million at March 31, 2015.

Full Year 2015 Guidance
Based on first-quarter 2015 results, Boyd Gaming is raising its previously provided guidance for the full year 2015. The Company now projects total Adjusted EBITDA, including Peninsula and 50% of Borgata's Adjusted EBITDA, of $542 million to $567 million.

Conference Call Information
Boyd Gaming will host its conference call to discuss first-quarter 2015 results today, April 30, at 5:00 p.m. Eastern. The conference call number is [phone], passcode 3858748. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.

The conference call will also be available live on the Internet at www.boydgaming.com, or: http://www.videonewswire.com/event.asp?id=102187

Following the call's completion, a replay will be available by dialing [phone] today, April 30, beginning at 7:00 p.m. Eastern and continuing through Friday, May 8, at 11:59 p.m. Eastern. The conference number for the replay will be 10064626. The replay will also be available on the Internet at www.boydgaming.com .

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