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UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 8-K
CURRENT REPORT
Date of Report (Date of earliest event reported):
March 2, 2010
Boyd Gaming Corporation
3883 Howard Hughes Parkway, Ninth Floor
(702) 792-7200
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
(Exact name of registrant as specified in its charter)
Las Vegas, Nevada 89169
(Address of principal executive offices including zip code)
(Registrant's telephone number, including area code)
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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 March 2, 2010, Boyd Gaming Corporation (the "Company") issued a press release announcing its financial results for the year ended December 31, 2009 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.
|
Press Release dated March 2, 2010* |
__________
*Pursuant to Item 2.02 of Form 8-K, Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
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.
Date: March 2, 2010 |
Boyd Gaming Corporation |
/s/ Josh Hirsberg
Josh Hirsberg Senior Vice President, Chief Financial Officer and Treasurer |
EXHIBIT INDEX
|
Description |
|
Press Release dated March 2, 2010 Also provided in PDF format as a courtesy. |
Financial Contact:
Josh Hirsberg
(702) 792-7234
Media Contact:
Rob Meyne
(702) 792-7353
BOYD GAMING REPORTS FOURTH QUARTER, YEAR-END RESULTS
LAS VEGAS — MARCH 2, 2010 — Boyd Gaming Corporation (NYSE: BYD)
today reported financial results for the fourth quarter and full year ended December 31, 2009.For the quarter, we reported a net loss of $1.0 million, or $0.01 per share, compared to a net loss of $220.8 million, or $2.51 per share, in the same period last year. Adjusted Earnings(1) for the fourth quarter 2009 were $0.2 million, or less than $0.01 per share, compared to $11.4 million, or $0.13 per share, for the same period in 2008.
Certain pre-tax items resulted in a net increase in Adjusted Earnings of $2.0 million ($1.2 million, net of tax, or $0.01 per share) during the fourth quarter 2009, including preopening expenses related to Echelon and the write-off of deferred loan fees, offset by gains on retirement of debt. By comparison, the fourth quarter 2008 included certain pre-tax adjustments that had a net effect of increasing Adjusted Earnings by $271.8 million ($232.2 million, net of tax, or $2.64 per share), primarily related to non-cash impairment charges related to the writedown of goodwill and intangible assets of certain business units acquired in previous years.
Net revenues were $384.9 million for the fourth quarter 2009, compared to $422.6 million for the same quarter in 2008, a decrease of 8.9%. Total Adjusted EBITDA was $74.0 million for the quarter, a decrease of 21.4% from $94.1 million in the prior year.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented on the quarter, "The stabilizing trends we've noted
previously continued during the fourth quarter, and we were especially encouraged by our Las Vegas Locals business, which showed
sequential improvement from the third quarter. Visitation to the city continues to grow, reflecting the popularity of Las Vegas as a destination.
As the economic recovery accelerates, consumer spending will increase, providing us the opportunity to capitalize on our more efficient
business model."
(1) See footnotes at the end of the release for additional information relative to non-GAAP financial
measures.
Full-Year 2009 Results
We reported net income for the year ended December 31, 2009 of $4.2 million, or $0.05 per share. By comparison, we reported a net loss of $223.0 million, or $2.54 per share, for the year ended December 31, 2008. Adjusted Earnings for the year ended December 31, 2009 were $31.6 million, or $0.37 per share, compared to $81.4 million, or $0.93 per share, for the full year 2008.
Net revenues were $1.64 billion and $1.78 billion for the years ended December 31, 2009 and 2008, respectively. Total Adjusted EBITDA was $385.9 million for the year 2009, compared to $442.6 million in the prior year.
Key Operations Review
Las Vegas Locals
In our Las Vegas Locals segment, fourth-quarter 2009 net revenues were $155.0 million versus $176.8 million for the fourth quarter 2008. Fourth-quarter 2009 Adjusted EBITDA was $34.7 million, a 20.7% decrease from the $43.8 million in the same quarter 2008. We saw stable visitation at our properties in the Las Vegas Valley, but continued to be impacted by depressed consumer discretionary spending.
Downtown
Our Downtown Las Vegas region reported net revenues of $58.0 million, compared to $60.8 million in the prior year quarter. Adjusted EBITDA for the fourth quarter was $12.2 million, a 7.7% decrease from the $13.3 million reported in the fourth quarter 2008. Stronger operating results at
2
our three downtown properties were offset by lower pricing and higher fuel costs associated with our Hawaiian charter service.
Midwest and South
In our Midwest and South region, we recorded $171.9 million in net revenues for the fourth quarter 2009, compared to $185.1 million for the same quarter in 2008. Adjusted EBITDA for the current period was $28.1 million, a decrease of 22.7% from the $36.3 million reported in the same period of 2008. In Indiana, Blue Chip reported solid year-over-year growth, which was offset by previously anticipated weakness at our southern Louisiana properties.
Borgata
Net revenues for Borgata were $175.4 million for the fourth quarter 2009, compared to $183.5 million recorded in the same quarter in 2008. Operating income for the fourth quarter 2009 was $17.1 million, up from $16.5 million in the prior year quarter. Adjusted EBITDA was $36.4 million, essentially flat with the $36.7 million recorded in the fourth quarter 2008. Borgata was able to maintain Adjusted EBITDA at prior-year levels despite the impact of severe winter weather in December.
Key Financial Statistics
The following is additional information as of and for the three months ended December 31, 2009:
Conference Call Information
We will host our fourth quarter 2009 conference call today, March 2, at 12:00 p.m. Eastern. The conference call number is 888.713.4218 and the passcode is 87895430. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.
3
The conference call will also be available live on the Internet at www.boydgaming.com or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=95703&eventID=2745655
Following the call's completion, a replay will be available by dialing 888.286.8010 today, March 2, beginning two hours after the completion of the call and continuing through Tuesday, March 9. The passcode for the replay will be 87359864. The replay will also be available on the Internet at www.boydgaming.com ..
4
BOYD GAMING CORPORATION AND SUBSIDIARIES 5
The following table reconciles the net income (loss) based upon United States generally accepted accounting principles to adjusted
earnings and adjusted earnings per share. The following table illustrates the impact of the above adjustments on earnings per share. 6
The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Adjusted EBITDA to net income
(loss) for the three months and year ended December 31, 2009 and 2008. Note that in the Company's periodic reports filed with the
Securities and Exchange Commission, the results from Dania Jai-Alai and corporate expense are classified as part of total other operating
costs and expenses and are not included in Reportable Segment Adjusted EBITDA. 7
(a)
Includes revenues related to Vacations Hawaii and other travel agency related entities
of $8.2 million and $32.3 million for the three months and year ended December 31, 2009, respectively, and
$10.5 million and $42.7 million for the three months and year ended December 31, 2008, respectively.
(b)
Net of interest income and amounts capitalized. Interest expense for the year ended December 31,
2009, includes $8.9 million of prior period interest expense (from the March 1, 2007 date of acquisition to
December 31, 2008) related to the January 2009 amendment to the purchase agreement resulting in the
finalization of our purchase price for Dania Jai-Alai, as well as $1.8 million in accelerated interest expense
related to our bank credit facility amendment.
(c)
The following table reconciles the presentation of corporate expense on our condensed consolidated statements of operations to the
presentation on the accompanying table.
(d)
The following table reconciles the presentation of our share of Borgata's operating income on our condensed consolidated statements of
operations to the presentation of our share of Borgata's results on the accompanying table. 8
(e)
The following table reconciles Adjusted EBITDA to EBITDA and net income (loss).
(f)
The following table reconciles the presentation of depreciation and amortization on our condensed consolidated statements of operations
to the presentation on the accompanying table. 9
The following table reports Borgata's financial results. The following table reconciles our share of Borgata's financial results to the amounts reported on our condensed consolidated statements
of operations. 10
The following table reconciles operating income to Adjusted EBITDA for Borgata. The following table reconciles Adjusted EBITDA to EBITDA and net income for Borgata. 11
Footnotes and Safe Harbor Statements 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. Note that while the Company will continue to include the results of Dania Jai-Alai and corporate expense in Adjusted EBITDA for
purposes of its earnings releases, in filings of the Company's periodic reports with the Securities and Exchange Commission, the results of
Dania Jai-Alai and corporate expense are not included in the Company's Reportable Segment Adjusted EBITDA. Effective April 1, 2008, the
Company reclassified the reporting of its Midwest and South segment to exclude the results of Dania Jai-Alai, since it does not share similar
economic characteristics with our other Midwest and South operations. In the Company's periodic reports, Dania Jai-Alai's results are
included as part of total other operating costs and expenses. In addition, as of the same date, we reclassified the reporting of corporate
expense to exclude it from our subtotal for Reportable Segment Adjusted EBITDA and include it as part of total other operating costs and
expenses. Furthermore, in the Company's periodic reports, corporate expense is presented to include its portion of share-based
compensation expense. EBITDA and Adjusted EBITDA EBITDA is a commonly used measure of performance in our industry which we believe, when considered with measures
calculated in accordance with United States Generally Accepted Accounting Principles (GAAP), gives investors a more complete
understanding of 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 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 do not reflect such items when calculating EBITDA; however, we adjust for these items and refer to this measure as
Adjusted EBITDA. 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 management in its 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
determining the value of acquisitions and dispositions. Adjusted EBITDA is also widely 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,
write-downs and other charges, net, increase in value of derivative instruments, gain on early retirements of debt, other non-operating
expenses, and our share of Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. In addition,
Adjusted EBITDA includes the results of Dania Jai-Alai and corporate expense. A reconciliation of Adjusted EBITDA to EBITDA and net
income (loss), based upon GAAP, is included in the financial schedules accompanying this release. Adjusted Earnings and Adjusted EPS Adjusted Earnings is net income (loss) before preopening expenses, increase in value of derivative instruments, write-downs
and other charges, net, gain on early retirements of debt, prior period interest expense related to the finalization of our purchase price for
Dania Jai-Alai, accelerated interest expense related to our bank credit facility amendment, certain one-time permanent tax readjustments,
other non-operating expenses, and our share of Borgata's preopening expenses and other items and write-downs, net. 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. A reconciliation of net loss based upon GAAP to Adjusted Earnings and Adjusted EPS are included in
the financial schedules accompanying this release. Limitations on the Use of Non-GAAP Measures The use of EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS has certain limitations. Our presentation of EBITDA,
Adjusted EBITDA, Adjusted Earnings and Adjusted EPS 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 GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our
performance. 12
EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS are used in addition to and in conjunction with results presented in
accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS 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 and Adjusted EPS reflect additional ways of
viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding 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 the future, including, but
not limited to, statements that Las Vegas continues to be an extremely popular destination, the viability of the Las Vegas market, and
statements regarding current economic conditions, that customer spending will increase, industry growth and related opportunities, the
Company's resources and strategy, and future outlook. 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 when or if the
economy will improve, the timing for resuming construction on Echelon, if at all, the future plans for Echelon and the site for Echelon and
whether the Company will be able to remain well positioned to manage through the current economic cycle. Further risks include the
timing or effects of the Company's delay of construction at Echelon and when, or if, construction will be recommenced, or the effect that such
delay will have on the Company's business, operations or financial condition. Additional factors that could cause actual results to differ
materially are the following: competition, litigation, financial community and rating agency perceptions of the Company, changes in laws and
regulations, including increased taxes, the availability and price of energy, weather, regulation, economic, credit and capital market conditions
(and the ability of the Company's joint venture participants to secure favorable financing, if at all) and the effects of war, terrorist or similar
activity. In addition, the Company's development projects are subject to the many risks inherent in the construction of a new enterprise,
including poor performance or non-performance by any of the joint venture partners or other third parties on whom the Company is relying,
unanticipated design, construction, regulatory, environmental and operating problems and lack of demand for the Company's projects, as well
as unanticipated delays and cost increases, shortages of materials, shortages of skilled labor or work stoppages, unforeseen construction
scheduling, engineering, environmental, permitting, construction or geological problems, weather interference, floods, fires or other casualty
losses. In addition, the Company's anticipated costs and construction periods for projects are based upon budgets, conceptual design
documents and construction schedule estimates prepared by the Company in consultation with its architects and contractors. Many of these
costs are estimated at inception of the project and can change over time as the project is built to completion. The cost of any project may vary
significantly from initial budget expectations, and the Company may have a limited amount of capital resources to fund cost overruns. If the
Company cannot finance cost overruns on a timely basis, the completion of one or more projects may be delayed until adequate funding is
available. The Company cannot assure that any project will be completed, if at all, on time or within established budgets, or that any project
will result in increased earnings to the Company. Significant delays, cost overruns, or failures of the Company's projects to achieve market
acceptance could have a material adverse effect on the Company's business, financial condition and results of operations. Furthermore, the
Company's projects may not help it compete with new or increased competition in its markets. Additional factors that could cause actual
results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 2009, filed with the SEC, 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
Revenues
(In thousands)
Gaming
$ 320,377
$ 351,664
$ 1,372,091
$ 1,477,476
Food and beverage
55,950
60,277
229,374
251,854
Room
29,054
32,715
122,305
140,651
Other
24,253
28,497
100,396
117,574
Gross revenues
429,634
473,153
1,824,166
1,987,555
Less promotional allowances
44,686
50,523
183,180
206,588
Net revenues
384,948
422,630
1,640,986
1,780,967
Costs and expenses
Gaming
162,710
172,420
664,739
690,847
Food and beverage
31,306
33,084
125,830
144,092
Room
9,443
10,257
39,655
43,851
Other
19,110
20,221
77,840
89,222
Selling, general and administrative
67,445
72,311
284,937
299,662
Maintenance and utilities
22,185
23,232
92,296
95,963
Depreciation and amortization
39,103
41,679
164,427
168,997
Corporate expense
12,540
10,009
47,617
52,332
Preopening expenses
3,025
3,501
17,798
20,265
Write-downs and other charges, net
365
290,819
41,780
385,521
Total costs and expenses
367,232
677,533
1,556,919
1,990,752
Operating income from Borgata
8,205
7,915
72,126
56,356
Operating income (loss)
25,921
(246,988)
156,193
(153,429)
Other expense (income)
Interest income
(1)
(1)
(6)
(1,070)
Interest expense, net of amounts capitalized
33,024
25,323
146,830
110,146
Increase in value of derivative instruments
-
-
-
(425)
Gain on early retirements of debt
(3,223)
(26,124)
(15,284)
(28,553)
Other non-operating expenses
3
-
33
-
Other non-operating expenses from Borgata, net
3,073
3,120
19,303
16,009
Total other expense, net
32,876
2,318
150,876
96,107
Income (loss) before income taxes
(6,955)
(249,306)
5,317
(249,536)
Benefit from (provision for) income taxes
5,931
28,532
(1,076)
26,531
Net income (loss)
$ (1,024)
$ (220,774)
$ 4,241
$ (223,005)
Basic net income (loss) per common share
$ (0.01)
$ (2.51)
$ 0.05
$ (2.54)
Weighted average basic shares outstanding
86,276
87,882
86,429
87,854
Diluted net income (loss) per common share
$ (0.01)
$ (2.51)
$ 0.05
$ (2.54)
Weighted average diluted shares outstanding
86,276
87,882
86,517
87,854
Dividends declared per common share
$ -
$ -
$ -
$ 0.30
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Net income (loss)
$ (1,024)
$ (220,774)
$ 4,241
$ (223,005)
Adjustments:
Preopening expenses
3,025
3,501
17,798
20,265
Our share of Borgata's preopening expenses
-
(141)
349
2,785
Our share of Borgata's other items and write-downs, net
5
5
(14,303)
81
Write-downs and other charges, net
365
290,819
41,780
385,521
Increase in value of derivative instruments
-
-
-
(425)
Gain on early retirements of debt
(3,223)
(26,124)
(15,284)
(28,553)
Other non-operating expenses
3
-
33
-
Prior period interest expense related to the finalization of
our purchase price for Dania Jai-Alai
-
-
8,883
-
Accelerated interest expense related to our
bank credit facility amendment
1,813
-
1,813
-
Income tax effect for above adjustments
(758)
(39,616)
(13,680)
(78,981)
Certain one-time permanent tax adjustments
-
3,745
-
3,745
Adjusted earnings
$ 206
$ 11,415
$ 31,630
$ 81,433
Adjusted earnings per diluted share (Adjusted EPS)
$ 0.00
$ 0.13
$ 0.37
$ 0.93
Weighted average diluted shares outstanding
86,276
87,882
86,517
87,854
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
Diluted net income (loss) per common share
$ (0.01)
$ (2.51)
$ 0.05
$ (2.54)
Adjustments:
Preopening expenses
0.04
0.04
0.21
0.23
Our share of Borgata's preopening expenses
-
-
-
0.03
Our share of Borgata's other items and write-downs, net
-
-
(0.16)
-
Write-downs and other charges, net
-
3.31
0.48
4.39
Increase in value of derivative instruments
-
-
-
-
Gain on early retirements of debt
(0.04)
(0.30)
(0.17)
(0.32)
Other non-operating expenses
-
-
-
-
Prior period interest expense related to the finalization of
our purchase price for Dania Jai-Alai
-
-
0.10
-
Accelerated interest expense related to our
bank credit facility amendment
0.02
-
0.02
-
Income tax effect for above adjustments
(0.01)
(0.45)
(0.16)
(0.90)
Certain one-time permanent tax adjustments
-
0.04
-
0.04
Adjusted earnings per diluted share (Adjusted EPS)
$ 0.00
$ 0.13
$ 0.37
$ 0.93
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Net Revenues
Las Vegas Locals
$ 154,966
$ 176,819
$ 641,941
$ 763,002
Downtown Las Vegas (a)
58,049
60,755
229,149
240,232
Midwest and South
171,933
185,056
769,896
777,733
Net Revenues
$ 384,948
$ 422,630
$ 1,640,986
$ 1,780,967
Adjusted EBITDA
Las Vegas Locals
$ 34,736
$ 43,828
$ 155,336
$ 218,591
Downtown Las Vegas
12,247
13,264
46,102
40,657
Midwest and South
28,081
36,327
161,892
166,366
Wholly-owned property Adjusted EBITDA
75,064
93,419
363,330
425,614
Corporate expense (c)
(9,581)
(7,391)
(36,934)
(43,494)
Wholly-owned Adjusted EBITDA
65,483
86,028
326,396
382,120
Our share of Borgata's operating income before net
amortization, preopening and other items (d)
8,535
8,104
59,470
60,520
Adjusted EBITDA (e)
74,018
94,132
385,866
442,640
Other operating costs and expenses
Deferred rent
1,088
1,115
4,354
4,460
Depreciation and amortization (f)
39,428
42,004
165,725
170,295
Preopening expenses
3,025
3,501
17,798
20,265
Our share of Borgata's preopening expenses
-
(141)
349
2,785
Our share of Borgata's other items and write-downs, net
5
5
(14,303)
81
Share-based compensation expense
4,186
3,817
13,970
12,662
Write-downs and other charges, net
365
290,819
41,780
385,521
Total other operating costs and expenses
48,097
341,120
229,673
596,069
Operating income (loss)
25,921
(246,988)
156,193
(153,429)
Other non-operating items
Interest expense, net (b)
33,023
25,322
146,824
109,076
Increase in value of derivative instruments
-
-
-
(425)
Gain on early retirements of debt
(3,223)
(26,124)
(15,284)
(28,553)
Other non-operating expenses
3
-
33
-
Our share of Borgata's other non-operating expenses, net
3,073
3,120
19,303
16,009
Total other non-operating costs and expenses
32,876
2,318
150,876
96,107
Income (loss) before income taxes
(6,955)
(249,306)
5,317
(249,536)
Benefit from (provision for) income taxes
5,931
28,532
(1,076)
26,531
Net income (loss)
$ (1,024)
$ (220,774)
$ 4,241
$ (223,005)
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Corporate expense as reported on our
consolidated statements of operations
$ 12,540
$ 10,009
$ 47,617
$ 52,332
Corporate share-based compensation expense
(2,959)
(2,618)
(10,683)
(8,838)
Corporate expense as reported on the accompanying table
$ 9,581
$ 7,391
$ 36,934
$ 43,494
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Operating income from Borgata as reported on our
consolidated statements of operations
$ 8,205
$ 7,915
$ 72,126
$ 56,356
Add back:
Net amortization expense related to our investment in Borgata
325
325
1,298
1,298
Our share of Borgata's preopening expenses
-
(141)
349
2,785
Our share of Borgata's other items and write-downs, net
5
5
(14,303)
81
Our share of Borgata's operating income before net
amortization, preopening and other items
as reported on the accompanying table
$ 8,535
$ 8,104
$ 59,470
$ 60,520
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Adjusted EBITDA
$ 74,018
$ 94,132
$ 385,866
$ 442,640
Deferred rent
1,088
1,115
4,354
4,460
Preopening expenses
3,025
3,501
17,798
20,265
Our share of Borgata's preopening expenses
-
(141)
349
2,785
Our share of Borgata's other items and write-downs, net
5
5
(14,303)
81
Share-based compensation expense
4,186
3,817
13,970
12,662
Write-downs and other charges, net
365
290,819
41,780
385,521
Increase in value of derivative instruments
-
-
-
(425)
Gain on early retirements of debt
(3,223)
(26,124)
(15,284)
(28,553)
Other non-operating expenses
3
-
33
-
Our share of Borgata's other non-operating expenses, net
3,073
3,120
19,303
16,009
EBITDA
65,496
(181,980)
317,866
29,835
Depreciation and amortization
39,428
42,004
165,725
170,295
Interest expense, net
33,023
25,322
146,824
109,076
Benefit from (provision for) income taxes
(5,931)
(28,532)
1,076
(26,531)
Income (loss) from continuing operations
$ (1,024)
$ (220,774)
$ 4,241
$ (223,005)
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Depreciation and amortization as reported on
our consolidated statements of operations
$ 39,103
$ 41,679
$ 164,427
$ 168,997
Net amortization expense related to our investment in Borgata
325
325
1,298
1,298
Depreciation and amortization
as reported on the accompanying table
$ 39,428
$ 42,004
$ 165,725
$ 170,295
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Gaming revenue
$ 153,387
$ 169,796
$ 691,428
$ 734,306
Non-gaming revenue
68,508
72,722
299,173
310,157
Gross revenues
221,895
242,518
990,601
1,044,463
Less promotional allowances
46,487
59,035
213,193
213,974
Net revenues
175,408
183,483
777,408
830,489
Expenses
138,960
146,765
579,749
633,353
Depreciation and amortization
19,380
20,511
78,719
76,096
Preopening expenses
-
(282)
699
5,570
Write-downs and other items, net
10
9
(28,606)
162
Operating income
17,058
16,480
146,847
115,308
Interest expense, net
(5,787)
(8,171)
(27,668)
(29,049)
State income tax (provision) benefit
(359)
1,930
(10,938)
(2,970)
Total non-operating expenses
(6,146)
(6,241)
(38,606)
(32,019)
Net income
$ 10,912
$ 10,239
$ 108,241
$ 83,289
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Our share of Borgata's operating income
$ 8,530
$ 8,240
$ 73,424
$ 57,654
Net amortization expense related to
our investment in Borgata
(325)
(325)
(1,298)
(1,298)
Operating income from Borgata, as reported on
our consolidated financial statements
$ 8,205
$ 7,915
$ 72,126
$ 56,356
Other non-operating expenses from Borgata, as reported on
our consolidated financial statements
$ 3,073
$ 3,120
$ 19,303
$ 16,009
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Operating income
$ 17,058
$ 16,480
$ 146,847
$ 115,308
Depreciation and amortization
19,380
20,511
78,719
76,096
Preopening expenses
-
(282)
699
5,570
Write-downs and other items, net
10
9
(28,606)
162
Adjusted EBITDA
$ 36,448
$ 36,718
$ 197,659
$ 197,136
Three Months Ended
Year Ended
December 31,
December 31,
2009
2008
2009
2008
(In thousands)
Adjusted EBITDA
$ 36,448
$ 36,718
$ 197,659
$ 197,136
Preopening expenses
-
(282)
699
5,570
Other items and write-downs, net
10
9
(28,606)
162
EBITDA
36,438
36,991
225,566
191,404
Depreciation and amortization
19,380
20,511
78,719
76,096
Interest expense, net
5,787
8,171
27,668
29,049
State income tax (provision) benefit
359
(1,930)
10,938
2,970
Net income
$ 10,912
$ 10,239
$ 108,241
$ 83,289
Headquartered in Las Vegas, Boyd Gaming Corporation
###
13
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