- Borgata Continues to Lead Market and Unveils Expansion Plans -
LAS VEGAS, July 28 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation
(NYSE: BYD) today reported its financial results for the second quarter 2004.
The Company reported adjusted earnings(1) of $.27 per share for the second
quarter versus adjusted earnings of $.21 per share reported for the second
quarter 2003. Adjusted earnings for the current quarter exclude expenses
related to the acquisition of Sam's Town Shreveport of $5.9 million, or
$.05 per share, and a gain on the sale of undeveloped land of $1.4 million, or
$.01 per share. Adjusted earnings for the comparable quarter last year
exclude the Company's share of preopening expenses related to Borgata of
$11.9 million, or $.11 per share, and a charge of $3.5 million, or $.03 per
share, for a one-time retroactive gaming tax imposed by the State of Indiana.
This year's results include the operations of Borgata, which opened in July
2003, and Sam's Town Shreveport, which the Company acquired in May 2004 and
operated for 41 days in the second quarter. Per share amounts are reported on
a diluted basis.
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The Company reported EBITDA for the second quarter of $85.3 million versus
$63.1 million (before the one-time Indiana charge) reported last year. The
increase was attributable to the addition of the two new properties mentioned
above in this year's results. One of those, Borgata, had a particularly
strong performance in the quarter, reporting its best-ever quarterly revenue,
EBITDA, and EBITDA margin. Same-store EBITDA (before the one-time Indiana
charge) was essentially even with the prior year, despite the continuing
negative impact of the gaming tax increase in Illinois, which reduced
Par-A-Dice EBITDA by $3.1 million in the quarter.
Revenues for the second quarter were $341.9 million versus $312.5 million
reported last year. The increase was attributable to the addition of Sam's
Town Shreveport and a 3.7% increase in same-store revenues driven particularly
by strong revenue gains at the Stardust and Sam's Town Las Vegas. Net income
in the second quarter was $15.5 million, or $.23 per share, versus $4.4
million, or $.07 per share, reported in the second quarter last year.
In footnote (1), you will find a discussion of how and why the Company
uses adjusted earnings, adjusted earnings per share, EBITDA (non-GAAP measures
of earnings as defined in footnote (1)) and EBITDA margin, performance
measurements widely used in the gaming industry. As used in this release,
EBITDA for a particular property (adjusted EBITDA) is before corporate
expense. Further in this release you will also find tables that reconcile
certain non-GAAP measurements to GAAP financial information.
Six-month Results
Revenues for the first half of 2004 were $672 million, an increase of 5.9%
over the $634 million reported in the first six months of 2003. The increase
was primarily attributable to the addition of Sam's Town Shreveport and strong
gains in revenues at Stardust and Sam's Town Las Vegas. EBITDA for the six
months was $166 million versus $135 million (before the one-time Indiana
charge) reported in the same period last year. The increase was principally
attributable to the addition of both Borgata and Sam's Town Shreveport,
neither of which operated in the first half of 2003. Adjusted earnings for
the first half were $.55 per share versus $.50 per share for the comparable
period in 2003. Net income for the first half of 2004 was $29.0 million, or
$.43 per share, versus $20.9 million, or $.32 per share, in the first half of
2003. Net income for the first half of 2004 includes a $5.7 million, or
$.08 per share, charge to the Company's income tax provision associated with
an adverse tax ruling in Indiana that related primarily to prior periods.
Borgata
The Company also reported second quarter results for Borgata Hotel Casino
and Spa, the Company's joint venture property in Atlantic City. As an
unconsolidated joint venture, Borgata's results appear in only two lines of
the Company's consolidated statements of operations; therefore, more detailed
financial information is presented in tables later in this release.
In the second quarter 2004, Borgata reported record quarterly gaming
revenue of $150 million and record quarterly non-gaming revenue of $57
million. Net revenues in the second quarter were $165 million, the highest
quarterly result since the property opened. Borgata's EBITDA in the second
quarter was $52.3 million and its EBITDA margin was 31.7%, both record
results. Borgata's second quarter EBITDA was the highest of any property in
the Atlantic City market by a wide margin.
William S. Boyd, Chairman and Chief Executive Officer of Boyd Gaming,
commented, "Borgata has now operated for four quarters, and every quarter
since its opening has been better than the quarter before in both EBITDA and
EBITDA margin. In fact, the current quarter EBITDA represents a 30% increase
from the EBITDA results in the previous quarter. When we developed Borgata,
we knew we were building the right product for Atlantic City and the Northeast
gaming market, but it is exceeding our expectations both in how fast its
revenues and earnings are ramping up and in how quickly we need to expand the
property."
Borgata continued to show strength in all revenue categories. For the
second quarter, the property reported the highest table game win in the
Atlantic City market, again by a wide margin. Table game win per unit per day
in the quarter was $4,184, which beat the second place property by $916. By
way of comparison, the average table in Atlantic City won $2,660 per day in
the second quarter. In slot win per unit per day, Borgata reported the
highest result in the Atlantic City market at $310, which is $9 above the
property in second place. The average Atlantic City slot machine win was $237
per day in the second quarter. In this important measure, Borgata, in the
last three quarters, has moved from fifth place to second place to first
place. Hotel occupancy in the quarter was 94% and the average daily room rate
was $119. The property reported strong results in non-gaming revenue in both
absolute amounts, at an average of $622,000 per day, and as a percentage of
total gross revenue, at 27% for the quarter. Also, the Company believes that
the property's percentage of cash revenue to total non-gaming revenue
continues to be the highest in the Atlantic City market.
Borgata Expansion
The Company announced a major expansion of Borgata. Bob Boughner, Chief
Executive Officer of Borgata, said, "In many areas, we simply cannot meet the
strong demand for our facilities. Our revenues, EBITDA and EBITDA margins
have increased steadily and significantly since our opening. We are capacity
constrained in nearly every major product offering and our customer research
clearly signals that demand for our products is strong and growing.
"We realized early on that we needed to add supply and began planning and
design work on an expansion of Borgata. The project, which requires various
government and regulatory approvals, consists of substantial additions of both
gaming and non-gaming amenities."
Borgata announced that its expansion plans include the following:
* 600 additional slot machines, bringing the total to 4,100
* 36 additional gaming tables, bringing the total to 175
* 56 additional poker tables, bringing the total to 90
* 46 additional race book positions, bringing the total to 90
* 2 additional fine dining restaurants
* 1 additional casual dining restaurant
* 1 large, multi-concept, quick-service restaurant
* 2 additional nightclubs
* 9 additional spa treatment rooms
* 6 additional retail shops
Bob Boughner continued, "We estimate the cost of the expansion to be
approximately $200 million and expect construction to start in December 2004
with completion to occur in the second quarter 2006. Boyd Gaming and MGM
MIRAGE have approved the project, which will be built on land leased from MGM
MIRAGE."
Borgata expects to renegotiate its bank credit facility, which has been
paid down significantly from its original level, to provide funding for the
project. Boyd Gaming and MGM MIRAGE do not expect to make further capital
contributions to Borgata for the expansion project.
Wholly-owned Properties
The Company's ten wholly-owned operating units reported total property
EBITDA (before corporate expense) for the second quarter of $73.9 million
versus $70.2 million (before the one-time Indiana charge) reported in the
second quarter last year. This quarter's results include EBITDA of $3.7
million from Sam's Town Shreveport, which operated for 41 days in the second
quarter following the Company's acquisition of the property from Harrah's.
Keith Smith, Boyd Gaming's Chief Operating Officer, commented, "We are pleased
with our progress since the transition. The Shreveport/Bossier City market,
which has seen a lot of changes in the last couple of months, remains solid,
and we will promote aggressively to build market share under the Sam's Town
banner."
Both Stardust and Sam's Town Las Vegas continued to turn in strong
performances in the second quarter. Stardust reported a 16.4% revenue gain
and a 62% EBITDA gain in the second quarter versus the prior year. By the end
of May 2004, Stardust had produced EBITDA equal to its EBITDA for all of 2003.
Sam's Town Las Vegas reported a 12.2% increase in revenue and a 20% increase
in EBITDA in the second quarter versus the comparable quarter in 2003. Sam's
Town Tunica, Treasure Chest, and Blue Chip each exceeded prior year EBITDA
results in the second quarter. On the other hand, Par-A-Dice reported a
$3.7 million EBITDA decline, principally due to the July 2003 gaming tax
increase in Illinois; the Downtown Las Vegas properties reported a 12.1%
decline in EBITDA principally resulting from a fuel surcharge in its Honolulu
to Las Vegas air charter operations; and Delta Downs reported a slight EBITDA
decline related to both construction disruption and excessive wet weather in
southwest Louisiana during the quarter.
Coast Casinos
On July 1, 2004, Boyd Gaming completed its merger with Coast Casinos,
which is now a wholly-owned subsidiary of Boyd Gaming and which will be
reported as part of Boyd Gaming's consolidated group starting with the third
quarter. Because Coast, which was not part of Boyd Gaming in the second
quarter, will no longer publish financial statements and its second quarter
results would otherwise be unreported, Boyd Gaming is providing certain of
Coast's historical financial information ($ in millions):
Latest Twelve
Three Months Six Months Months
Ended Ended Ended
June 30, June 30, June 30,
2004 2003 2004 2003 2004 2003
Net Revenues $163 $145 $327 $292 $628 $565
Property Adjusted
EBITDA(2) $46 $40 $99 $84 $179 $144
A table reconciling property adjusted EBITDA to net income for the three
and six month periods appears later in this release. Coast Casinos' results
are shown on a historical basis only and are not necessarily indicative of
future results.
Looking forward, Boyd Gaming expects, solely due to the Coast merger and
excluding the effects of the acquisition of Sam's Town Shreveport and other
potential factors, its corporate expense to increase approximately $2.0
million per quarter; its depreciation to increase approximately $13 million to
$15 million per quarter; and its interest expense to increase approximately
$9 million to $10 million per quarter.
Financial Statistics
The Company provided the following additional information for the second
quarter ended June 30, 2004 and certain updated information:
* June 30 debt balance: $1.277 billion
* June 30 debt balance proforma for the merger
with Coast Casinos: $2.236 billion
* June 30 cash: $84.6 million
* Dividends paid in the quarter: $5.0 million
* Maintenance capital expenditures during the quarter: $21.0 million
* Expansion capital expenditures for Delta Downs and Blue Chip during
the quarter: $19.5 million
* Number of shares outstanding on June 30: 67.3 million
* Number of shares outstanding immediately after the merger:
86.7 million
* Approximate number of diluted shares immediately after the merger:
88.4 million
(1) Adjusted Earnings are earnings before preopening expenses,
acquisition related expenses, the gain on sale of undeveloped land,
and the charges associated with the Indiana state tax assessment and
the Indiana retroactive gaming tax. Adjusted Earnings (and Adjusted
EPS) are presented solely as a supplemental disclosure because
management believes that it is a widely used measure of performance
in the gaming industry and as this measure is considered by many to
be a better measure on which to base expectations of future results
than net income computed in accordance with generally accepted
accounting principles ("GAAP"). Reconciliations of net income and
net income per share, each based upon GAAP, to Adjusted Earnings and
Adjusted EPS are included in the financial schedules accompanying
this release. EBITDA is earnings before interest, taxes,
depreciation, amortization, preopening expenses, acquisition related
expenses, and the gain on sale of undeveloped land. EBITDA and
EBITDA margin are presented solely as supplemental disclosures
because the Company believes that they are widely used measures of
operating performance in the gaming industry and EBITDA is a
principal basis for valuation of gaming companies. Specifically,
EBITDA is presented before preopening expenses as it represents a
measure of performance of the Company's existing operational
activities. The Company uses property EBITDA (EBITDA before
corporate expense) as the primary measure of the operating
performance of its properties, including the evaluation of operating
personnel. EBITDA should not be construed as an alternative to
operating income, as an indicator of the Company's operating
performance or as an alternative to cash flow from operating
activities, as a measure of liquidity, or as any other measure
determined in accordance with GAAP. The Company has significant
uses of cash flows, including capital expenditures, interest
payments, income taxes and debt principal repayments which are not
reflected in EBITDA. Also, other gaming companies that report
EBITDA information may calculate EBITDA in a different manner than
the Company.
(2) EBITDA reported for Coast Casinos is earnings before interest,
taxes, depreciation, amortization, preopening expenses, merger
related expenses, gain on sale of asset and deferred rent. EBITDA
is presented solely as a supplemental disclosure because the Company
believes that it is a widely used measure of operating performance
in the gaming industry.
The following tables report June quarterly and year to date results.
Downtown properties include the California Hotel and Casino, the Fremont Hotel
and Casino, and Main Street Station.
($ in thousands, Three Months Ended Six Months Ended
except footnotes) June 30, June 30,
2004 2003 2004 2003
Net Revenues
Stardust $38,174 $32,783 $76,928 $68,721
Sam's Town Las Vegas 36,658 32,679 75,361 68,398
Eldorado & Jokers Wild 7,632 7,984 16,092 16,898
Downtown Properties (a) 58,967 57,625 118,603 117,250
Sam's Town Tunica 29,927 27,028 59,460 54,020
Par-A-Dice 33,342 36,179 68,092 72,427
Treasure Chest 28,014 26,497 55,544 53,667
Blue Chip 58,999 57,444 114,695 111,781
Delta Downs 32,493 34,284 69,469 71,197
Sam's Town Shreveport 17,689 -- 17,689 --
Net revenues $341,895 $312,503 $671,933 $634,359
Adjusted EBITDA
Stardust $4,600 $2,832 $10,087 $7,607
Sam's Town Las Vegas 10,182 8,467 22,612 19,051
Eldorado & Jokers Wild 1,099 1,370 2,767 3,095
Downtown Properties 8,798 10,012 18,853 21,249
Sam's Town Tunica 3,304 1,750 6,227 4,361
Par-A-Dice 8,335 12,019 16,581 24,256
Treasure Chest 4,959 4,672 9,972 10,440
Blue Chip (b) 22,553 18,419 42,712 38,687
Delta Downs 6,382 7,254 14,213 15,531
Sam's Town Shreveport 3,712 -- 3,712 --
Wholly-owned property
adjusted EBITDA 73,924 66,795 147,736 144,277
Corporate expense 7,563 7,193 13,831 12,765
Wholly-owned
adjusted EBITDA 66,361 59,602 133,905 131,512
Our share of Borgata's
operating income
before preopening
expenses (e) 18,918 -- 32,062 --
Total adjusted
EBITDA 85,279 59,602 165,967 131,512
Other operating costs
and expenses
Depreciation and
amortization 26,585 23,162 51,559 46,095
Acquisition related
expenses 5,909 -- 5,909 --
Our share of Borgata's
preopening expenses -- 11,900 -- 16,125
Total other operating
costs and expenses 32,494 35,062 57,468 62,220
Operating income 52,785 24,540 108,499 69,292
Other non-operating
costs and expenses
Interest expense, net (c) 21,840 17,160 39,635 35,609
Gain on sale of
undeveloped land (1,420) -- (1,420) --
Our share of Borgata's
non-operating expense,
net 6,690 -- 13,150 --
Total other
non-operating
costs and expenses 27,110 17,160 51,365 35,609
Income before provision
for income taxes 25,675 7,380 57,134 33,683
Provision for
income taxes (d) 10,142 2,936 28,136 12,800
Net income $15,533 $4,444 $28,998 $20,883
(a) Includes revenues related to Vacations Hawaii, the Company's
Honolulu travel agency, of $11.2 million and $12.1 million,
respectively, for the three months ended June 30, 2004 and 2003 and
$22.4 million and $23.9 million, respectively, for the six months
ended June 30, 2004 and 2003.
(b) Adjusted EBITDA results for the three and six month periods ended
June 30, 2003 include a one-time charge for a retroactive gaming tax
imposed by the State of Indiana of $3.5 million.
(c) Net of interest income and amounts capitalized.
(d) Results for the six months ended June 30, 2004 include $5.7 million
of tax expense, net of federal tax benefit, related to the Indiana
Department of Revenue's assessment for state income taxes.
(e) The following table reconciles the presentation of our share of
Borgata's operating results in our consolidated statement of
operations to the presentation of our share of Borgata's results in
the above table:
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Our share of Borgata's
operating income (loss) $18,918 $(11,900) $32,062 $(16,125)
Add back our share of
Borgata's preopening
expenses (1) -- 11,900 -- 16,125
Our share of Borgata's
operating income before
preopening expenses $18,918 $-- $32,062 $--
(1) Borgata's preopening expenses are included in Borgata's operating
loss and are deducted for the presentation of total adjusted EBITDA.
Adjusted EBITDA is presented before preopening expenses as it
represents a measure of performance of our existing operational
activities.
The following table reports June quarterly and year to date results for
Coast Casinos, Inc. On July 1, 2004, Boyd Gaming completed its merger with
Coast Casinos, which is now a wholly-owned subsidiary of Boyd Gaming and which
will be reported as part of Boyd Gaming's consolidated group starting with the
third quarter. Because Coast, which was not part of Boyd Gaming in the second
quarter, will no longer publish financial statements and its second quarter
results would otherwise be unreported, Boyd Gaming is providing certain of
Coast's historical financial information. Coast Casinos' results are shown on
a historical basis only and are not necessarily indicative of future results.
Three Months Ended Six Months Ended
June 30, June 30,
(In thousands) 2004 2003 2004 2003
Property adjusted EBITDA $46,378 $40,370 $99,192 $83,661
Corporate expense 2,314 1,651 4,396 3,248
Adjusted EBITDA 44,064 38,719 94,796 80,413
Other operating costs
and expenses
Depreciation and
amortization 12,574 12,125 25,250 23,563
Gain on sale of asset (1,653) -- (1,653) --
Merger related expenses 14,642 -- 15,885 --
Preopening expenses 654 119 1,047 242
Deferred rent 764 780 1,528 1,559
Total other operating
costs and expenses 26,981 13,024 42,057 25,364
Operating income 17,083 25,695 52,739 55,049
Other non-operating
costs and expenses -
Interest expense, net 9,041 9,069 18,266 17,450
Income before provision
for income taxes 8,042 16,626 34,473 37,599
Provision for income
taxes 2,961 5,739 12,132 13,006
Net income $5,081 $10,887 $22,341 $24,593
BOYD GAMING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
(Unaudited) June 30, June 30,
(In thousands, except
per share data) 2004 2003 2004 2003
Revenues
Gaming $292,811 $267,279 $575,530 $544,781
Food and beverage 44,643 41,405 88,352 83,366
Room 22,187 19,335 42,808 38,969
Other 19,806 19,710 39,065 39,114
Gross revenues 379,447 347,729 745,755 706,230
Less promotional
allowances 37,552 35,226 73,822 71,871
Net revenues 341,895 312,503 671,933 634,359
Costs and expenses
Gaming 145,078 133,683 285,187 267,139
Food and beverage 25,777 23,956 50,307 47,635
Room 6,446 5,523 12,340 10,633
Other 20,379 20,916 40,124 41,527
Selling, general and
administrative 55,334 47,617 108,017 95,557
Maintenance and utilities 14,957 14,013 28,222 27,591
Depreciation and
amortization 26,585 23,162 51,559 46,095
Corporate expense 7,563 7,193 13,831 12,765
Acquisition related
expenses 5,909 -- 5,909 --
Total 308,028 276,063 595,496 548,942
Operating income (loss)
from Borgata 18,918 (11,900) 32,062 (16,125)
Operating income 52,785 24,540 108,499 69,292
Other income (expense)
Interest income 47 53 94 216
Interest expense, net of
amounts capitalized (21,887) (17,213) (39,729) (35,825)
Gain on sale of
undeveloped land 1,420 -- 1,420 --
Other expense from
Borgata, net (6,690) -- (13,150) --
Total (27,110) (17,160) (51,365) (35,609)
Income before provision
for income taxes 25,675 7,380 57,134 33,683
Provision for income taxes 10,142 2,936 28,136 12,800
Net income $15,533 $4,444 $28,998 $20,883
Basic Net Income
Per Common Share $0.23 $0.07 $0.44 $0.33
Average Basic Shares
Outstanding 66,743 63,802 66,004 64,143
Diluted Net Income
Per Common Share $0.23 $0.07 $0.43 $0.32
Average Diluted Shares
Outstanding 68,456 65,715 67,559 66,016
The following table reconciles net income and net income per share
(each based upon generally accepted accounting principles, or "GAAP")
to adjusted net income and adjusted net income per share.
Three Months Ended Six Months Ended
(In thousands, June 30, June 30,
except per share data) 2004 2003 2004 2003
Net income $15,533 $4,444 $28,998 $20,883
Adjustments:
Gain on sale of
undeveloped land (1,420) -- (1,420) --
Acquisition related
expenses 5,909 -- 5,909 --
Preopening expenses
from Borgata -- 11,900 -- 16,125
One-time Indiana
gaming tax charge -- 3,452 -- 3,452
Indiana state income
tax assessment -- -- 5,725 --
Income tax effect
for above adjustments (1,773) (6,108) (1,760) (7,439)
Adjusted net income $18,249 $13,688 $37,452 $33,021
Net income per
diluted share $0.23 $0.07 $0.43 $0.32
Gain on sale of
undeveloped land,
net of tax (0.01) -- (0.01) --
Acquisition related
expenses, net of tax 0.05 -- 0.05 --
Preopening expenses
from Borgata,
net of tax -- 0.11 -- 0.15
One-time Indiana
gaming tax charge,
net of tax -- 0.03 -- 0.03
Indiana state income
tax assessment -- -- 0.08 --
Adjusted net income
per diluted share $0.27 $0.21 $0.55 $0.50
The following table reconciles operating income to EBITDA.
Three Months Ended June 30, 2004
Depreciation Acquisition
Operating and Related
(In thousands) Income (Loss) Amortization Expenses EBITDA
Stardust $913 $3,687 $-- $4,600
Sam's Town Las Vegas 5,863 4,319 -- 10,182
Eldorado & Jokers Wild 619 480 -- 1,099
Downtown Properties 5,085 3,713 -- 8,798
Sam's Town Tunica (117) 3,421 -- 3,304
Par-A-Dice 6,959 1,376 -- 8,335
Treasure Chest 3,024 1,935 -- 4,959
Blue Chip 19,660 2,893 -- 22,553
Delta Downs 4,453 1,929 -- 6,382
Sam's Town Shreveport (3,697) 1,500 5,909 3,712
Corporate (8,895) 1,332 -- (7,563)
Totals for
wholly-owned
properties 33,867 26,585 5,909 66,361
Our share of
Borgata results 18,918 -- -- 18,918
Consolidated $52,785 $26,585 $5,909 $85,279
Three Months Ended June 30, 2003
Depreciation
Operating and Preopening
Income (Loss) Amortization Expenses EBITDA
Stardust $(588) $3,420 $-- $2,832
Sam's Town Las Vegas 4,178 4,289 -- 8,467
Eldorado & Jokers Wild 919 451 -- 1,370
Downtown Properties 6,151 3,861 -- 10,012
Sam's Town Tunica (1,537) 3,287 -- 1,750
Par-A-Dice 10,713 1,306 -- 12,019
Treasure Chest 3,094 1,578 -- 4,672
Blue Chip 15,976 2,443 -- 18,419
Delta Downs 5,628 1,626 -- 7,254
Corporate (8,094) 901 -- (7,193)
Totals for
wholly-owned
properties 36,440 23,162 -- 59,602
Our share of
Borgata results (11,900) -- 11,900 --
Consolidated $24,540 $23,162 $11,900 $59,602
Six Months Ended June 30, 2004
Depreciation Acquisition
Operating and Related
(In thousands) Income (Loss) Amortization Expenses EBITDA
Stardust $2,718 $7,369 $-- $10,087
Sam's Town Las Vegas 14,054 8,558 -- 22,612
Eldorado & Jokers Wild 1,847 920 -- 2,767
Downtown Properties 11,424 7,429 -- 18,853
Sam's Town Tunica (729) 6,956 -- 6,227
Par-A-Dice 13,798 2,783 -- 16,581
Treasure Chest 6,174 3,798 -- 9,972
Blue Chip 36,968 5,744 -- 42,712
Delta Downs 10,396 3,817 -- 14,213
Sam's Town Shreveport (3,697) 1,500 5,909 3,712
Corporate (16,516) 2,685 -- (13,831)
Totals for
wholly-owned
properties 76,437 51,559 5,909 133,905
Our share of
Borgata results 32,062 -- -- 32,062
Consolidated $108,499 $51,559 $5,909 $165,967
Six Months Ended June 30, 2003
Depreciation
Operating and Preopening
Income (Loss) Amortization Expenses EBITDA
Stardust $760 $6,847 $-- $7,607
Sam's Town Las Vegas 10,503 8,548 -- 19,051
Eldorado & Jokers Wild 2,178 917 -- 3,095
Downtown Properties 13,553 7,696 -- 21,249
Sam's Town Tunica (2,208) 6,569 -- 4,361
Par-A-Dice 21,666 2,590 -- 24,256
Treasure Chest 7,291 3,149 -- 10,440
Blue Chip 33,919 4,768 -- 38,687
Delta Downs 12,305 3,226 -- 15,531
Corporate (14,550) 1,785 -- (12,765)
Totals for
wholly-owned
properties 85,417 46,095 -- 131,512
Our share of
Borgata results (16,125) -- 16,125 --
Consolidated $69,292 $46,095 $16,125 $131,512
The following table reports Borgata financial results.
For the For the
Three Months Ended Three Months Ended
June 30, 2004 June 30, 2003
Our Our
100% of Share of 100% of Share of
(In thousands) Borgata Borgata Borgata Borgata
Gaming revenue $149,965 $--
Non-gaming revenue 56,562 --
Gross revenues 206,527 --
Less promotional
allowances 41,586 --
Net revenues 164,941 $82,470 -- $--
Expenses 112,644 56,322 -- --
Depreciation 14,254 7,127 -- --
Preopening expenses -- -- 23,799 11,900
Loss on asset
disposal 207 103 -- --
Operating income
(loss) 37,836 18,918 (23,799) (11,900)
Interest and other
expenses, net (8,913) (4,456) -- --
Provision for
income taxes (4,467) (2,234) -- --
Subtotal (13,380) (6,690) -- --
Net income (loss) $24,456 $12,228 $(23,799) $(11,900)
For the For the
Six Months Ended Six Months Ended
June 30, 2004 June 30, 2003
Our Our
100% of Share of 100% of Share of
(In thousands) Borgata Borgata Borgata Borgata
Gaming revenue $290,169 $--
Non-gaming revenue 106,991 --
Gross revenues 397,160 --
Less promotional
allowances 86,330 --
Net revenues 310,830 $155,415 -- $--
Expenses 218,428 109,214 -- --
Depreciation 28,071 14,036 -- --
Preopening expenses -- -- 32,249 16,125
Loss on asset
disposal 207 103 -- --
Operating income
(loss) 64,124 32,062 (32,249) (16,125)
Interest and other
expenses, net (19,369) (9,684) -- --
Provision for
income taxes (6,932) (3,466) -- --
Subtotal (26,301) (13,150) -- --
Net income (loss) $37,823 $18,912 $(32,249) $(16,125)
The following table reconciles operating income to Adjusted EBITDA for
Borgata.
For the For the
Three Months Ended Six Months Ended
June 30, June 30,
(In thousands) 2004 2003 2004 2003
Operating income
(loss) $37,836 $(23,799) $64,124 $(32,249)
Depreciation 14,254 -- 28,071 --
Preopening expenses -- 23,799 -- 32,249
Loss on asset
disposal 207 -- 207 --
Adjusted EBITDA $52,297 $-- $92,402 $--
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 include
information regarding the Company's expectations, goals or intentions
regarding the future, including but not limited to statements regarding the
Company's strategy, expenses (including the anticipated increase in expenses
due to the Coast merger), revenue, earnings, taxes and accruals related to
taxes, cash flow and the growth of certain gaming markets and the Company's
ability to build market share. In addition, forward-looking statements
include statements regarding Borgata, including its continued strong
performance, the strength and growth of demand, its achievement of market
share premiums, market rankings for gaming revenue (including cash revenue to
non-gaming revenue), table game win and slot win, increased revenue, earnings
and margins and the expansion of Borgata, including the timing and cost of the
expansion, the number of slot machines, table games and other amenities to be
added and the ability for Borgata to renegotiate its credit facility.
Forward-looking statements involve certain risks and uncertainties, and actual
results may differ materially from those discussed in any such statement. In
particular, the Company can provide no assurances that its ability to achieve
increased margins and market share premiums, grow revenues, or meet other
identified expectations for the Company or Borgata will be achieved or that
Borgata's current estimated rankings in the Atlantic City market will continue
in future periods. In addition, the Company can provide no assurances that
the Borgata expansion will yield the estimated number of slot machines, table
games or other amenities, will be completed within the estimated time frame
and budget, or that Borgata will be able to renegotiate its bank credit
facility on favorable terms, or at all. Among the factors that could cause
actual results to differ materially are the following: competition, increased
costs (including marketing costs) and uncertainties relating to new
developments and expansion (including enhancements to improve property
performance), 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 "Investment Considerations" and in other sections
of the Company's Form 10-K for the fiscal year ended December 31, 2003 on file
with the Securities and Exchange Commission, and in its other current and
periodic reports filed from time to time with the Commission. In addition,
factors that could cause actual results to differ are discussed under the
heading "Risk Factors" and in other sections of the Company's registration
statement on Form S-4 filed with the Commission on June 25, 2004. All
forward-looking statements in this document 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.
Boyd Gaming will host a webcast at 4:30 p.m. EDT on Wednesday, July 28,
2004 to review the second quarter results. The Webcast will be available on
the Company's website at http://www.boydgaming.com and at
http://www.firstcallevents.com/service/ajwz407914634gf12.html
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a
leading diversified owner and operator of 18 gaming entertainment properties,
plus one under development, located in Nevada, New Jersey, Mississippi,
Illinois, Indiana and Louisiana. Boyd Gaming press releases are available at
http://www.prnewswire.com. Additional news and information on Boyd Gaming can be
found at http://www.boydgaming.com.
SOURCE Boyd Gaming Corporation
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Related links:
http://www.boydgaming.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20030219/BOYDLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
Audio:http://www.firstcallevents.com/service/ajwz407914634gf12.html
CONTACT:
financial, Ellis Landau, +1-702-792-7210, or
Paul Chakmak, +1-702-792-7212, or media, Rob Stillwell,
+1-702-792-7353, robstillwell@boydgaming.com, all of Boyd Gaming
Corporation
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