Attached files
| file | filename |
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| 8-K - 8-K - BOYD GAMING CORP | form8-kq32012earningrelease.htm |
Exhibit 99.1
Financial Contact:
Josh Hirsberg
(702) 792-7234
joshhirsberg@boydgaming.com
Media Contact:
Rob Meyne
(702) 792-7353
robmeyne@boydgaming.com
BOYD GAMING REPORTS THIRD-QUARTER RESULTS
- IP Leads Midwest and South Region with 35% EBITDA Growth -
- Company on Track to Complete Peninsula Gaming Acquisition in Fourth Quarter -
LAS VEGAS - NOVEMBER 1, 2012 - Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the third quarter ended September 30, 2012.
Net revenues were $613.3 million for the third quarter 2012, an increase of 3.9% from $590.2 million during the same quarter in 2011. Total Adjusted EBITDA(1) for the quarter was $103.6 million, compared to $122.0 million in the prior year. Results for the third quarter 2012 include the operations of the IP Casino Resort Spa, acquired by the Company on October 4, 2011.
Boyd Gaming's wholly-owned business, including the IP, reported third-quarter 2012 net revenues of $426.2 million, up 9.8% from the year-ago period. Wholly-owned Adjusted EBITDA for the quarter was $70.3 million, compared to $71.8 million in the year-ago period. The Adjusted EBITDA comparison was adversely impacted by business disruptions from Hurricane Isaac and a favorable property tax adjustment in the year-ago quarter. Borgata, the Company's 50% joint venture, reported third-quarter 2012 net revenues of $187.1 million, compared to $202.0 million in the third quarter of 2011. Adjusted EBITDA at the property was $33.4 million, compared to $50.3 million in the year-ago quarter. Both revenue and Adjusted EBITDA were impacted by lower table game hold percentage and volume.
For the third quarter 2012, the Company reported a net loss of $15.8 million, or $0.18 per share, compared to net income of $3.1 million, or $0.04 per share, in the same period last year. Net results reflect lower operating income and increased interest expense, including interest related to the Peninsula Gaming acquisition financing.
Adjusted Earnings(1) for the third quarter 2012 reflect a loss of $9.4 million, or $0.11 per share, compared to income of $4.6 million, or $0.05 per share, for the same period in 2011. Certain pre-tax items included in Adjusted Earnings for the third quarter of 2012 resulted in a net increase of $7.1 million ($6.3 million, net of tax and noncontrolling interest, or $0.07 per share). By comparison, pre-tax items included in Adjusted Earnings for the third quarter 2011 resulted in a net increase of $2.4 million ($1.5 million, net of tax and noncontrolling interest, or $0.01 per share). Pre-tax items included in Adjusted Earnings are listed in a table at the end of this press release.
“We are encouraged by continued strength in our Midwest and South region, which recorded its eighth consecutive quarter of EBITDA growth,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming. “With the acquisition of Peninsula Gaming, more than two-thirds of our wholly-owned EBITDA will be generated by our Midwest and South properties, further expanding our operations in the strongest segment of the domestic gaming industry. Moving forward, our focus will be on generating sustainable long-term growth, continuing to manage our operations efficiently and strengthening our balance sheet.”
(1) | See footnotes at the end of the release for additional information relative to non-GAAP financial measures. |
Year-To-Date Results
For the nine months ended September 30, 2012, we reported net revenues of $1.86 billion, an increase of 7.6% compared to the nine months ended September 30, 2011. Total Adjusted EBITDA was $351.2 million during the period, even with the prior year.
During the nine-month period in 2012, our wholly-owned operations posted net revenues of $1.32 billion, up 12.5% from the year-ago period, while wholly-owned Adjusted EBITDA increased 7.2% to $248.3 million. Borgata reported net revenues of $538.7 million, compared to $553.9 million in the year-ago period, while Adjusted EBITDA was $103.0 million, compared to $120.6 million in the third quarter of 2011.
We reported a net loss of $9.0 million for the nine months ended September 30, 2012, or $0.10 per share. By comparison, we reported a net loss of $3.4 million, or $0.04 per share, for the nine months ended September 30, 2011.
Adjusted Earnings for the nine months ended September 30, 2012 were $2.5 million, or $0.03 per share, compared to $4.0 million, or $0.05 per share, during the comparable period in 2011.
Operations Review
Las Vegas Locals
In the Las Vegas Locals segment, third-quarter 2012 net revenues were $138.8 million, compared to $145.9 million in the year-ago period. Third-quarter 2012 Adjusted EBITDA was $24.3 million, compared to $30.8 million in the third quarter of 2011. To improve our performance in the Locals market, we are implementing measures to improve business volumes from casual players, including a significant expansion of our low-denomination slot product.
Downtown
The Company's Downtown Las Vegas business generated net revenues of $53.5 million for the third quarter 2012, up slightly from the third quarter 2011. Adjusted EBITDA was $6.4 million, an increase of 5.8% from the year-ago quarter. Growth was driven primarily by effective marketing campaigns aimed at our Hawaiian customer base. Additionally, we saw improved revenue and profitability at our Hawaiian charter service, as changes in our weekly flight schedule allowed us to grow revenue-per-seat by about 12%.
Midwest and South
In the Midwest and South region, net revenues were $233.0 million, up 24.0% from the year-ago quarter, while Adjusted EBITDA rose 9.4%, or $4.2 million, to $48.7 million. Regional results were impacted by Hurricane Isaac, which forced the closure of the IP and Treasure Chest in late August, and disrupted business throughout the Gulf Coast region through mid-September. In addition, results reflect a favorable property tax adjustment in the year-ago quarter.
The IP contributed $49.1 million in net revenues and $9.6 million in EBITDA to regional results during the quarter. Net revenues at the property were even with the third quarter 2011 as compared to the property's historical results, while EBITDA rose 35.4%. Improved operating efficiencies and the introduction of our B Connected player loyalty program drove significant EBITDA growth at the IP.
Borgata
Borgata reported third-quarter 2012 net revenues of $187.1 million, compared to $202.0 million in the third quarter of 2011. Adjusted EBITDA at the property was $33.4 million, compared to $50.3 million in the year-ago quarter. The declines were primarily the result of lower table game hold percentage and volume. We remain encouraged by strength in other segments of the business, as slot and hotel revenue increased year-over-year.
Peninsula Gaming Acquisition
The Company continues to make progress toward completing the acquisition of Peninsula Gaming, LLC. The transaction, announced on May 16, will add five properties to Boyd Gaming's portfolio: the Kansas Star Casino, Hotel and Event Center in Mulvane, Kansas; Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Casino in Worth County, Iowa; Evangeline Downs Racetrack and Casino in Opelousas, Louisiana; and Amelia Belle Casino in Amelia, Louisiana.
“We look forward to successfully completing this transformative transaction, which will strengthen our balance sheet and further diversify our operations,” Keith Smith said. “We have already secured regulatory approvals from Iowa and Louisiana, and Kansas regulators are scheduled to consider the transaction the week of November 12. Subject to regulatory approvals, we expect to complete the acquisition of Peninsula Gaming in the fourth quarter.”
Conference Call Information
Boyd Gaming will host its third-quarter 2012 conference call today, November 1, at 12:00 p.m. Eastern, on which the Company will provide guidance for the fourth quarter 2012. The conference call number is (866) 652-5200. 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=90411
Following the call's completion, a replay will be available by dialing (877) 344-7529 today, November 1, beginning at 2:00 p.m. Eastern and continuing through Friday, November 9, at 9 a.m. Eastern. The conference number for the replay will be 10020383. The replay will also be available on the Internet at www.boydgaming.com.
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, Adjusted Earnings Per Share (Adjusted EPS) and certain line items which intentionally exclude the effects of the consolidation of Borgata and/or LVE and/or both. The following discussion defines these terms and why we believe they are useful measures of our performance.
In the accompanying release, and the Company's periodic reports filed with the Securities and Exchange Commission, 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 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 corporate expense. A reconciliation of Adjusted EBITDA to 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, adjustments to prior-year property taxes, increase in value of derivative instruments, write-downs and other charges, net, gain on early retirements of debt, acquisition-related expenses, expenses related to a property closure due to flooding, other non-operating expenses, valuation adjustments related to the consolidation of Borgata, 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, 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 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 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 anticipated acquisition of Peninsula Gaming, the timing for completion of such acquisition and the anticipated benefits from such transaction, including strengthen the Company's balance sheet and diversifying its operations; the anticipated benefits from new development arrangements with Wilton Rancheria and SSE, the expectation that legislation and other regulations will pass permitting these developments, and the timing for the approvals for such developments; the continued strength in the Company's Midwest and South region and that upon the closing of the acquisition of Peninsula Gaming, more than two-thirds of the Company's wholly-owned EBITDA will be generated by properties in regional markets; that these regional markets represent the strongest segment of the domestic gaming industry; that the Company will focus on generating sustainable long-term growth, continuing to manage our operations efficiently and strengthening our balance sheet in the future; the roll out of new slot games and expanding product offerings; that the locals marked has shown sustained growth; the expected benefits from introducing B Connected to the IP; that marketing costs will be refined and synergies will be realized at the IP; the impact of new competition on Borgata; and that the Company believes that it will be able to drive significant efficiencies and generate additional revenue through cross-marketing opportunities. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: fluctuations in the Company's operating results; recovery of its properties in various markets; the state of the economy and its effect on consumer spending and the Company's results of operations; the timing for economic recovery, its effect on the Company's business and the local economies where the Company's properties are located; the satisfaction to the various conditions to the Company's pending acquisition of Peninsula Gaming, and whether such conditions will be satisfied when expected, if at all; the availability of financing for such acquisition on terms that are acceptable to the Company, if at all; the receipt of legislative, and other state, federal and local approvals for the pending acquisition and the Company's development projects in Florida and other jurisdictions; consumer reaction to fluctuations in the stock market and economic factors; the fact that the Company's expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Boyd Gaming
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 17 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.
The results of IP are included in our condensed consolidated statements of operations for the three and nine months ended September 30, 2012.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Revenues | |||||||||||||||
Gaming | $ | 516,991 | $ | 500,824 | $ | 1,567,792 | $ | 1,469,316 | |||||||
Food and beverage | 106,722 | 99,221 | 318,123 | 285,883 | |||||||||||
Room | 69,964 | 64,831 | 205,589 | 181,881 | |||||||||||
Other | 38,958 | 34,105 | 110,615 | 100,412 | |||||||||||
Gross revenues | 732,635 | 698,981 | 2,202,119 | 2,037,492 | |||||||||||
Less promotional allowances | 119,356 | 108,766 | 340,535 | 307,928 | |||||||||||
Net revenues | 613,279 | 590,215 | 1,861,584 | 1,729,564 | |||||||||||
Costs and expenses | |||||||||||||||
Gaming | 253,196 | 230,675 | 742,404 | 680,457 | |||||||||||
Food and beverage | 55,014 | 50,868 | 169,451 | 148,516 | |||||||||||
Room | 13,605 | 13,586 | 43,671 | 39,921 | |||||||||||
Other | 29,960 | 28,617 | 82,712 | 82,191 | |||||||||||
Selling, general and administrative | 113,148 | 96,301 | 333,319 | 288,872 | |||||||||||
Maintenance and utilities | 38,114 | 40,925 | 116,447 | 115,113 | |||||||||||
Depreciation and amortization | 50,409 | 46,034 | 151,125 | 145,106 | |||||||||||
Corporate expense | 10,317 | 11,025 | 36,197 | 36,569 | |||||||||||
Preopening expense | 1,618 | 1,720 | 5,488 | 5,292 | |||||||||||
Other operating items, net | (450 | ) | 2,300 | (2,399 | ) | 9,269 | |||||||||
Total costs and expenses | 564,931 | 522,051 | 1,678,415 | 1,551,306 | |||||||||||
Operating income | 48,348 | 68,164 | 183,169 | 178,258 | |||||||||||
Other expense (income) | |||||||||||||||
Interest income | (272 | ) | (15 | ) | (684 | ) | (40 | ) | |||||||
Interest expense, net of amounts capitalized | 74,115 | 60,083 | 202,731 | 184,068 | |||||||||||
Fair value adjustment of derivative instruments | — | — | — | 265 | |||||||||||
Gain on early retirements of debt, net | — | (54 | ) | — | (34 | ) | |||||||||
Other income | — | (1,000 | ) | — | (1,000 | ) | |||||||||
Total other expense, net | 73,843 | 59,014 | 202,047 | 183,259 | |||||||||||
Income (loss) before income taxes | (25,495 | ) | 9,150 | (18,878 | ) | (5,001 | ) | ||||||||
Income taxes | 8,413 | (2,170 | ) | 7,580 | 28 | ||||||||||
Net income (loss) | (17,082 | ) | 6,980 | (11,298 | ) | (4,973 | ) | ||||||||
Net loss attributable to noncontrolling interest | 1,286 | (3,871 | ) | 2,331 | 1,610 | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (15,796 | ) | $ | 3,109 | $ | (8,967 | ) | $ | (3,363 | ) | ||||
Basic net income (loss) per common share | $ | (0.18 | ) | $ | 0.04 | $ | (0.10 | ) | $ | (0.04 | ) | ||||
Weighted average basic shares outstanding | 87,643 | 87,256 | 87,587 | 87,206 | |||||||||||
Diluted net income (loss) per common share | $ | (0.18 | ) | $ | 0.04 | $ | (0.10 | ) | $ | (0.04 | ) | ||||
Weighted average diluted shares outstanding | 87,643 | 87,432 | 87,587 | 87,206 | |||||||||||
The following table sets forth the impact of the consolidation of Borgata and LVE during the three months ended September 30, 2012. The wholly-owned column reflects the equity method of accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Boyd Gaming | Borgata | Boyd/Borgata | LVE (Variable | LVE | Boyd Gaming | |||||||||||||||||||||||||
Wholly-Owned | Borgata | Eliminations | Subtotal | Interest Entity) | Eliminations | Consolidated | ||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
Gaming | $ | 354,631 | $ | 162,360 | $ | — | $ | 516,991 | $ | — | $ | — | $ | 516,991 | ||||||||||||||||
Food and beverage | 66,488 | 40,234 | — | 106,722 | — | — | 106,722 | |||||||||||||||||||||||
Room | 35,744 | 34,220 | — | 69,964 | — | — | 69,964 | |||||||||||||||||||||||
Other | 26,149 | 12,809 | — | 38,958 | 2,724 | (2,724 | ) | 38,958 | ||||||||||||||||||||||
Gross revenues | 483,012 | 249,623 | — | 732,635 | 2,724 | (2,724 | ) | 732,635 | ||||||||||||||||||||||
Less promotional allowances | 56,824 | 62,532 | — | 119,356 | — | — | 119,356 | |||||||||||||||||||||||
Net revenues | 426,188 | 187,091 | — | 613,279 | 2,724 | (2,724 | ) | 613,279 | ||||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||||
Gaming | 185,604 | 67,592 | — | 253,196 | — | — | 253,196 | |||||||||||||||||||||||
Food and beverage | 35,270 | 19,744 | — | 55,014 | — | — | 55,014 | |||||||||||||||||||||||
Room | 9,615 | 3,990 | — | 13,605 | — | — | 13,605 | |||||||||||||||||||||||
Other | 18,930 | 11,030 | — | 29,960 | — | — | 29,960 | |||||||||||||||||||||||
Selling, general and administrative | 77,674 | 35,470 | — | 113,144 | 4 | — | 113,148 | |||||||||||||||||||||||
Maintenance and utilities | 22,200 | 15,914 | — | 38,114 | — | — | 38,114 | |||||||||||||||||||||||
Depreciation and amortization | 34,101 | 16,308 | — | 50,409 | — | — | 50,409 | |||||||||||||||||||||||
Corporate expense | 10,317 | — | — | 10,317 | — | — | 10,317 | |||||||||||||||||||||||
Preopening expense | 4,342 | — | — | 4,342 | — | (2,724 | ) | 1,618 | ||||||||||||||||||||||
Other operating items, net | 1,174 | (1,624 | ) | — | (450 | ) | — | — | (450 | ) | ||||||||||||||||||||
Total costs and expenses | 399,227 | 168,424 | — | 567,651 | 4 | (2,724 | ) | 564,931 | ||||||||||||||||||||||
Operating loss from Borgata | (9,333 | ) | — | 9,333 | — | — | — | — | ||||||||||||||||||||||
Operating income | 36,294 | 18,667 | (9,333 | ) | 45,628 | 2,720 | — | 48,348 | ||||||||||||||||||||||
Other expense (income) | ||||||||||||||||||||||||||||||
Interest income | (272 | ) | — | — | (272 | ) | — | — | — | (272 | ) | |||||||||||||||||||
Interest expense, net of amounts capitalized | 50,379 | 20,755 | — | 71,134 | 2,981 | — | 74,115 | |||||||||||||||||||||||
Other non-operating expenses from Borgata, net | 10,359 | (10,359 | ) | — | — | — | — | |||||||||||||||||||||||
Total other expense, net | 60,466 | 20,755 | (10,359 | ) | 70,862 | 2,981 | — | 73,843 | ||||||||||||||||||||||
Income (loss) before income taxes | (24,172 | ) | (2,088 | ) | 1,026 | (25,234 | ) | (261 | ) | — | (25,495 | ) | ||||||||||||||||||
Income taxes | 8,376 | 37 | — | 8,413 | — | — | 8,413 | |||||||||||||||||||||||
Net income (loss) | (15,796 | ) | (2,051 | ) | 1,026 | (16,821 | ) | (261 | ) | — | (17,082 | ) | ||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | 1,025 | 1,025 | 261 | — | 1,286 | |||||||||||||||||||||||
Net loss attributable to Boyd Gaming Corp | $ | (15,796 | ) | $ | (2,051 | ) | $ | 2,051 | $ | (15,796 | ) | $ | — | $ | — | $ | (15,796 | ) | ||||||||||||
Basic net loss per common share | $ | (0.18 | ) | $ | (0.18 | ) | ||||||||||||||||||||||||
Weighted average basic shares outstanding | 87,643 | 87,643 | ||||||||||||||||||||||||||||
Diluted net loss per common share | $ | (0.18 | ) | $ | (0.18 | ) | ||||||||||||||||||||||||
Weighted average diluted shares outstanding | 87,643 | 87,643 | ||||||||||||||||||||||||||||
The following table sets forth the impact of the consolidation of Borgata and LVE during the three months ended September 30, 2011. The wholly-owned column reflects the equity method of accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.
Three Months Ended September 30, 2011 | |||||||||||||||||||||||||||||
Boyd Gaming | Borgata | Boyd/Borgata | LVE (Variable | LVE | Boyd Gaming | ||||||||||||||||||||||||
Wholly-Owned | Borgata | Eliminations | Subtotal | Interest Entity) | Eliminations | Consolidated | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Gaming | $ | 324,086 | $ | 176,738 | $ | — | $ | 500,824 | $ | — | $ | — | $ | 500,824 | |||||||||||||||
Food and beverage | 57,884 | 41,337 | — | 99,221 | — | — | 99,221 | ||||||||||||||||||||||
Room | 31,762 | 33,069 | — | 64,831 | — | — | 64,831 | ||||||||||||||||||||||
Other | 22,116 | 11,989 | — | 34,105 | 2,724 | (2,724 | ) | 34,105 | |||||||||||||||||||||
Gross revenues | 435,848 | 263,133 | — | 698,981 | 2,724 | (2,724 | ) | 698,981 | |||||||||||||||||||||
Less promotional allowances | 47,651 | 61,115 | — | 108,766 | — | — | 108,766 | ||||||||||||||||||||||
Net revenues | 388,197 | 202,018 | — | 590,215 | 2,724 | (2,724 | ) | 590,215 | |||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||
Gaming | 161,732 | 68,943 | — | 230,675 | — | — | 230,675 | ||||||||||||||||||||||
Food and beverage | 31,409 | 19,459 | — | 50,868 | — | — | 50,868 | ||||||||||||||||||||||
Room | 9,480 | 4,106 | — | 13,586 | — | — | 13,586 | ||||||||||||||||||||||
Other | 18,550 | 10,067 | — | 28,617 | — | — | 28,617 | ||||||||||||||||||||||
Selling, general and administrative | 63,442 | 32,859 | — | 96,301 | — | — | 96,301 | ||||||||||||||||||||||
Maintenance and utilities | 24,250 | 16,656 | — | 40,906 | 19 | — | 40,925 | ||||||||||||||||||||||
Depreciation and amortization | 30,871 | 15,163 | — | 46,034 | — | — | 46,034 | ||||||||||||||||||||||
Corporate expense | 11,025 | — | — | 11,025 | — | — | 11,025 | ||||||||||||||||||||||
Preopening expense | 4,444 | — | — | 4,444 | — | (2,724 | ) | 1,720 | |||||||||||||||||||||
Other operating items, net | 2,306 | (6 | ) | — | 2,300 | — | — | 2,300 | |||||||||||||||||||||
Total costs and expenses | 357,509 | 167,247 | — | 524,756 | 19 | (2,724 | ) | 522,051 | |||||||||||||||||||||
Operating income from Borgata | 17,385 | — | (17,385 | ) | — | — | — | — | |||||||||||||||||||||
Operating income | 48,073 | 34,771 | (17,385 | ) | 65,459 | 2,705 | — | 68,164 | |||||||||||||||||||||
Other expense (income) | |||||||||||||||||||||||||||||
Interest income | (15 | ) | — | — | (15 | ) | — | — | (15 | ) | |||||||||||||||||||
Interest expense, net of amounts capitalized | 34,086 | 20,995 | — | 55,081 | 5,002 | — | 60,083 | ||||||||||||||||||||||
Fair value adjustment of derivative instruments | — | — | — | — | — | — | — | ||||||||||||||||||||||
Gain on early retirements of debt, net | — | (54 | ) | — | (54 | ) | — | — | (54 | ) | |||||||||||||||||||
Other income | (1,000 | ) | — | — | (1,000 | ) | — | — | (1,000 | ) | |||||||||||||||||||
Other non-operating expenses from Borgata, net | 11,215 | — | (11,215 | ) | — | — | — | — | |||||||||||||||||||||
Total other expense, net | 44,286 | 20,941 | (11,215 | ) | 54,012 | 5,002 | — | 59,014 | |||||||||||||||||||||
Income (loss) before income taxes | 3,787 | 13,830 | (6,170 | ) | 11,447 | (2,297 | ) | — | 9,150 | ||||||||||||||||||||
Income taxes | (678 | ) | (1,492 | ) | — | (2,170 | ) | — | — | (2,170 | ) | ||||||||||||||||||
Net income (loss) | 3,109 | 12,338 | (6,170 | ) | 9,277 | (2,297 | ) | — | 6,980 | ||||||||||||||||||||
Net income attributable to noncontrolling interest | — | — | (6,168 | ) | (6,168 | ) | 2,297 | — | (3,871 | ) | |||||||||||||||||||
Net income attributable to Boyd Gaming Corp | $ | 3,109 | $ | 12,338 | $ | (12,338 | ) | $ | 3,109 | $ | — | $ | — | $ | 3,109 | ||||||||||||||
Basic net income per common share | $ | 0.04 | $ | 0.04 | |||||||||||||||||||||||||
Weighted average basic shares outstanding | 87,256 | 87,256 | |||||||||||||||||||||||||||
Diluted net income per common share | $ | 0.04 | $ | 0.04 | |||||||||||||||||||||||||
Weighted average diluted shares outstanding | 87,432 | 87,432 | |||||||||||||||||||||||||||
The following table sets forth the impact of the consolidation of Borgata and LVE during the nine months ended September 30, 2012. The wholly-owned column reflects the equity method of accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Boyd Gaming | Borgata | Boyd/Borgata | LVE (Variable | LVE | Boyd Gaming | ||||||||||||||||||||||||||
Wholly-Owned | Borgata | Eliminations | Subtotal | Interest Entity) | Eliminations | Consolidated | |||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||
Gaming | $ | 1,097,507 | $ | 470,285 | $ | — | $ | 1,567,792 | $ | — | ` | $ | — | $ | 1,567,792 | ||||||||||||||||
Food and beverage | 205,773 | 112,350 | — | 318,123 | — | — | 318,123 | ||||||||||||||||||||||||
Room | 114,541 | 91,048 | — | 205,589 | — | — | 205,589 | ||||||||||||||||||||||||
Other | 79,068 | 31,547 | — | 110,615 | 8,172 | (8,172 | ) | 110,615 | |||||||||||||||||||||||
Gross revenues | 1,496,889 | 705,230 | — | 2,202,119 | 8,172 | (8,172 | ) | 2,202,119 | |||||||||||||||||||||||
Less promotional allowances | 173,962 | 166,573 | — | 1 | 340,535 | — | — | 340,535 | |||||||||||||||||||||||
Net revenues | 1,322,927 | 538,657 | — | 1,861,584 | 8,172 | (8,172 | ) | 1,861,584 | |||||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||||
Gaming | 547,179 | 195,225 | — | 742,404 | — | — | 742,404 | ||||||||||||||||||||||||
Food and beverage | 112,918 | 56,533 | — | 169,451 | — | — | 169,451 | ||||||||||||||||||||||||
Room | 32,727 | 10,944 | — | 43,671 | — | — | 43,671 | ||||||||||||||||||||||||
Other | 57,367 | 25,345 | — | 82,712 | — | — | 82,712 | ||||||||||||||||||||||||
Selling, general and administrative | 230,307 | 102,999 | — | 333,306 | 13 | — | 333,319 | ||||||||||||||||||||||||
Maintenance and utilities | 71,803 | 44,644 | — | 116,447 | — | — | 116,447 | ||||||||||||||||||||||||
Depreciation and amortization | 103,673 | 47,452 | — | 151,125 | — | — | 151,125 | ||||||||||||||||||||||||
Corporate expense | 36,197 | — | — | 36,197 | — | — | 36,197 | ||||||||||||||||||||||||
Preopening expense | 13,420 | 240 | — | 13,660 | — | (8,172 | ) | 5,488 | |||||||||||||||||||||||
Other operating items, net | 1,413 | (3,812 | ) | — | (2,399 | ) | — | — | (2,399 | ) | |||||||||||||||||||||
Total costs and expenses | 1,207,004 | 479,570 | — | 1,686,574 | 13 | (8,172 | ) | 1,678,415 | |||||||||||||||||||||||
Operating loss from Borgata | (29,543 | ) | 29,543 | — | — | — | — | ||||||||||||||||||||||||
Operating income | 145,466 | 59,087 | (29,543 | ) | 175,010 | 8,159 | — | 183,169 | |||||||||||||||||||||||
Other expense (income) | |||||||||||||||||||||||||||||||
Interest income | (684 | ) | — | — | (684 | ) | — | — | — | (684 | ) | ||||||||||||||||||||
Interest expense, net of amounts capitalized | 131,823 | 61,885 | — | 193,708 | 9,023 | — | 202,731 | ||||||||||||||||||||||||
Other non-operating expenses from Borgata, net | 31,010 | — | (31,010 | ) | — | — | — | — | |||||||||||||||||||||||
Total other expense, net | 162,149 | 61,885 | (31,010 | ) | 193,024 | 9,023 | — | 202,047 | |||||||||||||||||||||||
Income (loss) before income taxes | (16,683 | ) | (2,798 | ) | 1,467 | (18,014 | ) | (864 | ) | — | (18,878 | ) | |||||||||||||||||||
Income taxes | 7,716 | (136 | ) | — | 7,580 | — | — | 7,580 | |||||||||||||||||||||||
Net income (loss) | (8,967 | ) | (2,934 | ) | 1,467 | (10,434 | ) | (864 | ) | — | (11,298 | ) | |||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | 1,467 | 1,467 | 864 | — | 2,331 | ||||||||||||||||||||||||
Net loss attributable to Boyd Gaming Corp | $ | (8,967 | ) | $ | (2,934 | ) | $ | 2,934 | $ | (8,967 | ) | $ | — | $ | — | $ | (8,967 | ) | |||||||||||||
Basic net loss per common share | $ | (0.10 | ) | $ | (0.10 | ) | |||||||||||||||||||||||||
Weighted average basic shares outstanding | 87,587 | 87,587 | |||||||||||||||||||||||||||||
Diluted net loss per common share | $ | (0.10 | ) | $ | (0.10 | ) | |||||||||||||||||||||||||
Weighted average diluted shares outstanding | 87,587 | 87,587 | |||||||||||||||||||||||||||||
The following table sets forth the impact of the consolidation of Borgata and LVE during the nine months ended September 30, 2011. The wholly-owned column reflects the equity method of accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.
Nine Months Ended September 30, 2011 | |||||||||||||||||||||||||||||
Boyd Gaming | Borgata | Boyd/Borgata | LVE (Variable | LVE | Boyd Gaming | ||||||||||||||||||||||||
Wholly-Owned | Borgata | Eliminations | Subtotal | Interest Entity) | Eliminations | Consolidated | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Gaming | $ | 978,584 | $ | 490,732 | $ | — | $ | 1,469,316 | $ | — | $ | — | $ | 1,469,316 | |||||||||||||||
Food and beverage | 173,023 | 112,860 | — | 285,883 | — | — | 285,883 | ||||||||||||||||||||||
Room | 92,704 | 89,177 | — | 181,881 | — | — | 181,881 | ||||||||||||||||||||||
Other | 68,523 | 31,889 | — | 100,412 | 8,134 | (8,134 | ) | 100,412 | |||||||||||||||||||||
Gross revenues | 1,312,834 | 724,658 | — | 2,037,492 | 8,134 | (8,134 | ) | 2,037,492 | |||||||||||||||||||||
Less promotional allowances | 137,134 | 170,794 | — | 307,928 | — | — | 307,928 | ||||||||||||||||||||||
Net revenues | 1,175,700 | 553,864 | — | 1,729,564 | 8,134 | (8,134 | ) | 1,729,564 | |||||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||||||||
Gaming | 481,089 | 199,368 | — | 680,457 | — | — | 680,457 | ||||||||||||||||||||||
Food and beverage | 95,101 | 53,415 | — | 148,516 | — | — | 148,516 | ||||||||||||||||||||||
Room | 28,925 | 10,996 | — | 39,921 | — | — | 39,921 | ||||||||||||||||||||||
Other | 56,270 | 25,921 | — | 82,191 | — | — | 82,191 | ||||||||||||||||||||||
Selling, general and administrative | 192,467 | 96,405 | — | 288,872 | — | — | 288,872 | ||||||||||||||||||||||
Maintenance and utilities | 66,670 | 47,493 | — | 114,163 | 950 | — | 115,113 | ||||||||||||||||||||||
Depreciation and amortization | 94,529 | 50,577 | — | 145,106 | — | — | 145,106 | ||||||||||||||||||||||
Corporate expense | 36,569 | — | — | 36,569 | — | — | 36,569 | ||||||||||||||||||||||
Preopening expense | 13,334 | 92 | — | 13,426 | — | (8,134 | ) | 5,292 | |||||||||||||||||||||
Other operating items, net | 3,510 | 5,759 | — | 9,269 | — | — | 9,269 | ||||||||||||||||||||||
Total costs and expenses | 1,068,464 | 490,026 | — | 1,558,490 | 950 | (8,134 | ) | 1,551,306 | |||||||||||||||||||||
Operating income from Borgata | 31,919 | — | (31,919 | ) | — | — | — | — | |||||||||||||||||||||
Operating income | 139,155 | 63,838 | (31,919 | ) | 171,074 | 7,184 | — | 178,258 | |||||||||||||||||||||
Other expense (income) | |||||||||||||||||||||||||||||
Interest income | (40 | ) | — | — | (40 | ) | — | — | (40 | ) | |||||||||||||||||||
Interest expense, net of amounts capitalized | 114,026 | 59,606 | — | 173,632 | 10,436 | — | 184,068 | ||||||||||||||||||||||
Fair value adjustment of derivative instruments | 265 | — | — | 265 | — | — | 265 | ||||||||||||||||||||||
(Gain) loss on early retirements of debt, net | 20 | (54 | ) | — | (34 | ) | — | — | (34 | ) | |||||||||||||||||||
Other income | (1,000 | ) | — | — | (1,000 | ) | — | — | (1,000 | ) | |||||||||||||||||||
Other non-operating expenses from Borgata, net | 30,275 | — | (30,275 | ) | — | — | — | — | |||||||||||||||||||||
Total other expense, net | 143,546 | 59,552 | (30,275 | ) | 172,823 | 10,436 | — | 183,259 | |||||||||||||||||||||
Income (loss) before income taxes | (4,391 | ) | 4,286 | (1,644 | ) | (1,749 | ) | (3,252 | ) | — | (5,001 | ) | |||||||||||||||||
Income taxes | 1,028 | (1,001 | ) | — | 28 | — | — | 28 | |||||||||||||||||||||
Net income (loss) | (3,363 | ) | 3,285 | (1,644 | ) | (1,722 | ) | (3,252 | ) | — | (4,973 | ) | |||||||||||||||||
Net (income) loss attributable to noncontrolling interest | — | — | (1,641 | ) | (1,641 | ) | 3,252 | — | 1,610 | ||||||||||||||||||||
Net loss attributable to Boyd Gaming Corp | $ | (3,363 | ) | $ | 3,285 | $ | (3,285 | ) | $ | (3,363 | ) | $ | — | $ | — | $ | (3,363 | ) | |||||||||||
Basic net loss per common share | $ | (0.04 | ) | $ | (0.04 | ) | |||||||||||||||||||||||
Weighted average basic shares outstanding | 87,206 | 87,206 | |||||||||||||||||||||||||||
Diluted net loss per common share | $ | (0.04 | ) | $ | (0.04 | ) | |||||||||||||||||||||||
Weighted average diluted shares outstanding | 87,206 | 87,206 | |||||||||||||||||||||||||||
The following tables reconcile Adjusted earnings (loss) and Adjusted earnings (loss) per share to Net income (loss) attributable to Boyd Gaming Corporation and Net income (loss) per share, respectively, as reported in accordance with GAAP. The weighted average shares outstanding represent the shares used in the diluted net income per share computations, except to the extent such common share equivalents are anti-dilutive. Also, during periods in which our adjusted earnings result in a loss, our basic shares outstanding are used in the computation of Adjusted loss per share, as any common share equivalents would be anti-dilutive.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (15,796 | ) | $ | 3,109 | $ | (8,967 | ) | $ | (3,363 | ) | ||||
Adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expense, excluding impact of LVE | 4,342 | 4,444 | 13,420 | 13,334 | |||||||||||
Acquisition related expenses | 645 | 1,874 | 6,917 | 2,244 | |||||||||||
Gain on insurance settlement, net of flood expense | — | — | (6,091 | ) | — | ||||||||||
Miscellaneous non-recurring adjustments, net | 528 | 406 | 586 | 1,240 | |||||||||||
Adjustments to property tax accruals, net | (658 | ) | (3,926 | ) | (1,255 | ) | (7,464 | ) | |||||||
Change in fair value of derivative instruments | — | — | — | 265 | |||||||||||
Other income | — | (1,000 | ) | — | (1,000 | ) | |||||||||
Interest on acquisition financing | 3,614 | — | 3,614 | — | |||||||||||
Loss on early retirements of debt, net | — | — | — | 20 | |||||||||||
Adjustments related to Borgata: | |||||||||||||||
Other operating items, net | (1,623 | ) | 20 | (3,811 | ) | 5,785 | |||||||||
Preopening expense | — | — | 240 | 92 | |||||||||||
Gain on early retirements of debt | — | (54 | ) | — | (54 | ) | |||||||||
Other valuation adjustments related to consolidation, net | 286 | 649 | 432 | 322 | |||||||||||
Total adjustments | 7,134 | 2,413 | 14,052 | 14,784 | |||||||||||
Income tax effect for above adjustments | (1,454 | ) | (587 | ) | (4,170 | ) | (4,332 | ) | |||||||
Impact on noncontrolling interest, net | 669 | (308 | ) | 1,570 | (3,073 | ) | |||||||||
Adjusted earnings (loss) | $ | (9,447 | ) | $ | 4,627 | $ | 2,485 | $ | 4,016 | ||||||
Adjusted earnings (loss) per share | $ | (0.11 | ) | $ | 0.05 | $ | 0.03 | $ | 0.05 | ||||||
Weighted average shares outstanding | 87,643 | 87,432 | 87,587 | 87,591 | |||||||||||
Net income (loss) per share | $ | (0.18 | ) | $ | 0.04 | $ | (0.10 | ) | $ | (0.04 | ) | ||||
Adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expense, excluding impact of LVE | 0.05 | 0.05 | 0.15 | 0.15 | |||||||||||
Acquisition related expenses | 0.01 | 0.02 | 0.08 | 0.03 | |||||||||||
Gain on insurance settlement, net of flood expense | — | — | (0.07 | ) | — | ||||||||||
Miscellaneous non-recurring adjustments, net | 0.01 | — | 0.01 | 0.01 | |||||||||||
Adjustments to property tax accruals, net | (0.01 | ) | (0.05 | ) | (0.01 | ) | (0.09 | ) | |||||||
Other income | |||||||||||||||
Change in fair value of derivative instruments | — | — | — | — | |||||||||||
Other income | — | (0.01 | ) | — | (0.01 | ) | |||||||||
Interest on acquisition financing | 0.04 | — | 0.04 | — | |||||||||||
Loss on early retirements of debt, net | — | — | — | — | |||||||||||
Adjustments related to Borgata: | |||||||||||||||
Other operating items, net | (0.02 | ) | — | (0.04 | ) | 0.08 | |||||||||
Preopening expense | — | — | — | — | |||||||||||
Other valuation adjustments related to consolidation, net | — | 0.01 | — | — | |||||||||||
Total adjustments | 0.08 | 0.02 | 0.16 | 0.17 | |||||||||||
Income tax effect for above adjustments | (0.02 | ) | (0.01 | ) | (0.05 | ) | (0.05 | ) | |||||||
Impact on noncontrolling interest, net | 0.01 | — | 0.02 | (0.03 | ) | ||||||||||
Adjusted earnings (loss) per share | $ | (0.11 | ) | $ | 0.05 | $ | 0.03 | $ | 0.05 | ||||||
The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Adjusted EBITDA to Net income (loss) attributable to Boyd Gaming Corporation on our condensed consolidated statements of operations for the three and nine months ended September 30, 2012 and 2011. Note that the results from Dania Jai-Alai are classified as part of total other operating costs and expenses and are not included in Adjusted EBITDA.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
Net Revenues | |||||||||||||||
Las Vegas Locals | $ | 138,787 | $ | 145,915 | $ | 442,563 | $ | 452,270 | |||||||
Downtown Las Vegas | 53,547 | 53,327 | 166,494 | 165,578 | |||||||||||
Midwest and South (1) | 232,965 | 187,906 | 710,415 | 553,787 | |||||||||||
Atlantic City | 187,091 | 202,018 | 538,657 | 553,864 | |||||||||||
Reportable Segment Net revenues | 612,390 | 589,166 | 1,858,129 | 1,725,499 | |||||||||||
Other | 889 | 1,049 | 3,455 | 4,065 | |||||||||||
Net revenues | $ | 613,279 | $ | 590,215 | $ | 1,861,584 | $ | 1,729,564 | |||||||
Adjusted EBITDA | |||||||||||||||
Las Vegas Locals | $ | 24,271 | $ | 30,793 | $ | 97,292 | $ | 109,006 | |||||||
Downtown Las Vegas | 6,356 | 6,005 | 22,897 | 24,375 | |||||||||||
Midwest and South (1) | 48,708 | 44,524 | 157,841 | 128,011 | |||||||||||
Wholly-owned Property Adjusted EBITDA | 79,335 | 81,322 | 278,030 | 261,392 | |||||||||||
Corporate expense | (9,082 | ) | (9,570 | ) | (29,756 | ) | (29,826 | ) | |||||||
Wholly-owned Adjusted EBITDA | 70,253 | 71,752 | 248,274 | 231,566 | |||||||||||
Atlantic City | 33,350 | 50,287 | 102,966 | 120,626 | |||||||||||
Adjusted EBITDA | $ | 103,603 | $ | 122,039 | $ | 351,240 | $ | 352,192 | |||||||
Unallocated costs and expenses | |||||||||||||||
Deferred rent | $ | 996 | $ | 1,034 | $ | 2,988 | $ | 3,102 | |||||||
Depreciation and amortization | 50,409 | 46,034 | 151,125 | 145,106 | |||||||||||
Preopening expenses | 1,618 | 1,720 | 5,488 | 5,292 | |||||||||||
Share-based compensation expense | 1,607 | 1,787 | 7,560 | 7,740 | |||||||||||
Other operating items, net | (450 | ) | 2,300 | (2,399 | ) | 9,269 | |||||||||
Other | 1,075 | 1,000 | 3,309 | 3,425 | |||||||||||
Total unallocated costs and expenses | 55,255 | 53,875 | 168,071 | 173,934 | |||||||||||
Operating income | 48,348 | 68,164 | 183,169 | 178,258 | |||||||||||
Other expense | |||||||||||||||
Interest expense, net | 73,843 | 60,068 | 202,047 | 184,028 | |||||||||||
Fair value adjustment of derivative instruments | — | — | — | 265 | |||||||||||
Gain on early retirements of debt, net | — | (54 | ) | — | (34 | ) | |||||||||
Other income | — | (1,000 | ) | — | (1,000 | ) | |||||||||
Total other expense, net | 73,843 | 59,014 | 202,047 | 183,259 | |||||||||||
Income (loss) before income taxes | (25,495 | ) | 9,150 | (18,878 | ) | (5,001 | ) | ||||||||
Income taxes | 8,413 | (2,170 | ) | 7,580 | 28 | ||||||||||
Net income (loss) | (17,082 | ) | 6,980 | (11,298 | ) | (4,973 | ) | ||||||||
Net (income) loss attributable to noncontrolling interest | 1,286 | (3,871 | ) | 2,331 | 1,610 | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (15,796 | ) | $ | 3,109 | $ | (8,967 | ) | $ | (3,363 | ) | ||||
(1) During the three and nine months ended September 30, 2012, IP provided $ 49.1 million and $ 145.4 million in Net Revenues and $ 9.6 million and $ 33.7 million in Wholly-owned Property Adjusted EBITDA, respectively.
The following table reconciles the presentation of corporate expense on our condensed consolidated statements of operations to the presentation on the previous table.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Corporate expense as reported on our consolidated statements of operations | $ | 10,317 | $ | 11,025 | $ | 36,197 | $ | 36,569 | |||||||
Corporate share-based compensation expense | (1,235 | ) | (1,455 | ) | (6,441 | ) | (6,743 | ) | |||||||
Corporate expense as reported on the previous table | $ | 9,082 | $ | 9,570 | $ | 29,756 | $ | 29,826 | |||||||
The following table presents Borgata's condensed consolidated statements of operations for the three and nine months ended September 30, 2012 and 2011, as reflected in our condensed consolidated statements presented herein. These results present the impact of certain valuation adjustments made upon consolidation; however, these adjustments were not pushed down to Borgata and are therefore not reflected in Borgata's stand alone financial statements.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Revenues | |||||||||||||||
Gaming | $ | 162,360 | $ | 176,738 | $ | 470,285 | $ | 490,732 | |||||||
Food and beverage | 40,234 | 41,337 | 112,350 | 112,860 | |||||||||||
Room | 34,220 | 33,069 | 91,048 | 89,177 | |||||||||||
Other | 12,809 | 11,989 | 31,547 | 31,889 | |||||||||||
Gross revenues | 249,623 | 263,133 | 705,230 | 724,658 | |||||||||||
Less promotional allowances | 62,532 | 61,115 | 166,573 | 170,794 | |||||||||||
Net revenues | 187,091 | 202,018 | 538,657 | 553,864 | |||||||||||
Costs and expenses | |||||||||||||||
Gaming | 67,592 | 68,943 | 195,225 | 199,368 | |||||||||||
Food and beverage | 19,744 | 19,459 | 56,533 | 53,415 | |||||||||||
Room | 3,990 | 4,106 | 10,944 | 10,996 | |||||||||||
Other | 11,030 | 10,067 | 25,345 | 25,921 | |||||||||||
Selling, general and administrative | 35,470 | 32,859 | 102,999 | 96,405 | |||||||||||
Maintenance and utilities | 15,914 | 16,656 | 44,644 | 47,493 | |||||||||||
Depreciation and amortization | 16,308 | 15,163 | 47,452 | 50,577 | |||||||||||
Preopening expense | — | — | 240 | 92 | |||||||||||
Other operating items, net | (1,624 | ) | (6 | ) | (3,812 | ) | 5,759 | ||||||||
Total costs and expenses | 168,424 | 167,247 | 479,570 | 490,026 | |||||||||||
Operating income | 18,667 | 34,771 | 59,087 | 63,838 | |||||||||||
Other expense (income) | |||||||||||||||
Interest expense, net of amounts capitalized | 20,755 | 20,995 | 61,885 | 59,606 | |||||||||||
Gain on early retirements of debt | — | (54 | ) | — | (54 | ) | |||||||||
Total other expense, net | 20,755 | 20,941 | 61,885 | 59,552 | |||||||||||
Income (loss) before income taxes | (2,088 | ) | 13,830 | (2,798 | ) | 4,286 | |||||||||
Income taxes | 37 | (1,492 | ) | (136 | ) | (1,001 | ) | ||||||||
Net income (loss) | $ | (2,051 | ) | $ | 12,338 | $ | (2,934 | ) | $ | 3,285 | |||||