Marina District Finance Company, Inc. - FORM 8-K - EX-99.1 - EXHIBIT - April 30, 2014

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Exhibit 99.1



Financial Contact:
Josh Hirsberg
(702) 792-7234
joshhirsberg@boydgaming.com

Media Contact:
David Strow
(702) 792-7386
davidstrow@boydgaming.com


BOYD GAMING REPORTS FIRST-QUARTER 2014 RESULTS

First-Quarter Highlights
•
Company Reports Results at High End of Guidance
•
Las Vegas Locals Generates Fifth Straight Quarter of EBITDA Growth

LAS VEGAS - APRIL 30, 2014 - Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the first quarter ended March 31, 2014.

Boyd Gaming reported first-quarter 2014 net revenues of $708.3 million, compared to $735.6 million during the same quarter in 2013, and total Adjusted EBITDA(1) of $144.5 million, versus $163.5 million in the year-ago quarter. Adjusted EBITDA was negatively impacted by an estimated $10 million to $12 million during the quarter due to unusually severe winter weather at the Company’s operations outside of Nevada. Additionally, Borgata’s online gaming operations recorded a $3.2 million operating loss related to its launch.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “Boyd Gaming continued to make steady progress in the first quarter, delivering results at the high end of our guidance. We were particularly encouraged by the performance of our Las Vegas Locals business, which generated its fifth straight quarter of EBITDA growth. The refinements we have made to our operations are paying clear dividends in all segments of our business, and we expect additional benefits as the economy recovers. We further strengthened our financial position as well, repaying an additional $55 million in debt in the

1


first quarter. We are diligently focused on building long-term value for our shareholders, and I remain confident about our future prospects.”

Adjusted Earnings(1) for the first quarter 2014 reflect a loss of $4.1 million, or $0.04 per share, compared to income of $1.4 million, or $0.02 per share, for the same period in 2013. The calculations of Adjusted Earnings and Adjusted Earnings per share are presented in a table at the end of this press release.

On a GAAP basis, the Company reported a net loss of $6.2 million, or $0.06 per share, for the first quarter 2014, compared to a net loss of $7.3 million, or $0.08 per share, for the year-ago period.

(1)
See footnotes at the end of the release for additional information relative to non-GAAP financial measures. 

Key Operations Review

Las Vegas Locals
In the Las Vegas Locals segment, first-quarter 2014 net revenues were $151.4 million, compared to $152.8 million in the year-ago quarter. First-quarter 2014 Adjusted EBITDA increased 2.0% to $40.0 million, compared to $39.2 million in the first quarter of 2013. Growth in non-gaming operations and continued efficiencies helped drive the fifth consecutive quarter of EBITDA gains and margin improvements in the Locals segment.

Downtown    
In the Downtown Las Vegas segment, net revenues were $55.7 million in the first quarter of 2014, up 3.1% from $54.1 million in the year-ago period. Adjusted EBITDA increased 31.2% to $9.3 million, compared to $7.1 million in the first quarter of 2013. Results benefited from increased traffic from Fremont Street, as well as continued yield improvements in the Company’s Hawaiian charter service.

Midwest and South; Peninsula
In the Midwest and South segment, net revenues were $211.6 million, compared to $229.1 million in the first quarter of 2013. Adjusted EBITDA was $44.1 million versus $49.7 million in the year-ago period.

During the first quarter of 2014, the Peninsula segment reported net revenues of $122.3 million and Adjusted EBITDA of $44.8 million. This compares to net revenues of $133.9 million and Adjusted EBITDA of $50.7 million in the first quarter of 2013.


2


Results were predominately impacted by unusually severe winter weather, as well as continued softness in the casual gaming segment.

Borgata
Borgata, the Company’s 50% joint venture, reported first-quarter 2014 net revenues of $167.3 million, including $7.7 million from its online gaming operations, compared to $165.6 million in revenues reported in the year-ago period. Adjusted EBITDA was $20.4 million, compared to $28.4 million in the first quarter of 2013.

Results reflect reduced visitation due to unusually severe winter weather throughout the quarter. Adjusted EBITDA was further impacted by a $3.2 million loss in Borgata’s online gaming operations related to the launch of this business, primarily as a result of approximately $2 million in non-recurring marketing and advertising expenses.

Key Balance Sheet Statistics
As of March 31, 2014, Boyd Gaming had cash on hand of $162.9 million, including $27.9 million related to Peninsula and $29.0 million related to Borgata.

Total debt was $4.37 billion, of which $1.14 billion was related to Peninsula and $809.3 million was related to Borgata.

Full-Year Guidance
For the full-year 2014, Boyd Gaming currently projects total Adjusted EBITDA of $600 million to $620 million.
 
Conference Call Information
Boyd Gaming will host its conference call to discuss first-quarter 2014 results today, April 30, at 5:00 p.m. Eastern. The conference call number is (888) 317-6003, passcode 4440004. 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=99039


3


Following the call’s completion, a replay will be available by dialing (877) 344-7529 today, April 30, beginning at 7:00 p.m. Eastern and continuing through Thursday, May 8, at 9 a.m. Eastern. The conference number for the replay will be 10045059. The replay will also be available on the Internet at www.boydgaming.com.

4


BOYD GAMING CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended
 
March 31,
(In thousands, except per share data)
2014
 
2013
Revenues
 
 
 
Gaming
$
608,757

 
$
632,559

Food and beverage
106,643

 
111,774

Room
64,380

 
63,855

Other
38,960

 
39,311

Gross revenues
818,740

 
847,499

Less promotional allowances
110,391

 
111,915

Net revenues
708,349

 
735,584

 
 
 
 
Costs and expenses
 
 
 
Gaming
285,174

 
297,262

Food and beverage
57,269

 
60,053

Room
13,170

 
13,100

Other
27,792

 
28,174

Selling, general and administrative
124,679

 
124,028

Maintenance and utilities
43,264

 
39,209

Depreciation and amortization
66,179

 
70,038

Corporate expense
19,920

 
15,356

Preopening expenses
784

 
2,365

Impairments of assets
1,633

 
—

Asset transactions costs
155

 
3,013

Other operating charges and credits, net
(186
)
 
1,566

Total costs and expenses
639,833

 
654,164

Operating income
68,516

 
81,420

 
 
 
 
Other expense (income)
 
 
 
Interest income
(476
)
 
(656
)
Interest expense, net of amounts capitalized
75,503

 
95,682

Loss on early extinguishments of debt
154

 
—

Other, net
(288
)
 
(518
)
Total other expense, net
74,893

 
94,508

 
 
 
 
Loss from continuing operations before income taxes
(6,377
)
 
(13,088
)
Income taxes
(4,848
)
 
2,424

Loss from continuing operations, net of tax
(11,225
)
 
(10,664
)
Income (loss) from discontinued operations, net of tax
—

 
(963
)
Net loss
(11,225
)
 
(11,627
)
Net loss attributable to noncontrolling interest
5,043

 
4,343

Net loss attributable to Boyd Gaming Corporation
$
(6,182
)
 
$
(7,284
)
 
 
 
 
Basic net loss per common share
 
 
 
Continuing operations
$
(0.06
)
 
$
(0.07
)
Discontinued operations
—

 
(0.01
)
Basic net loss per common share
$
(0.06
)
 
$
(0.08
)
Weighted average basic shares outstanding
109,753

 
87,974

 
 
 
 
Diluted net loss per common share
 
 
 
Continuing operations
$
(0.06
)
 
$
(0.07
)
Discontinued operations
—

 
(0.01
)
Diluted net loss per common share
$
(0.06
)
 
$
(0.08
)
Weighted average diluted shares outstanding
109,753

 
87,974



5


BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Reconciliation of Adjusted EBITDA to Operating Income (Loss)
(Unaudited)
 
Three Months Ended
 
March 31,
(In thousands)
2014
 
2013
Net Revenues by Reportable Segment
 
 
 
Las Vegas Locals
$
151,443

 
$
152,827

Downtown Las Vegas
55,733

 
54,083

Midwest and South
211,636

 
229,117

Peninsula
122,273

 
133,913

Borgata
167,264

 
165,644

Net revenues
$
708,349

 
$
735,584

 
 
 
 
Adjusted EBITDA by Reportable Segment
 
 
 
Las Vegas Locals
$
40,007

 
$
39,205

Downtown Las Vegas
9,327

 
7,111

Midwest and South
44,098

 
49,682

Peninsula
44,761

 
50,712

Wholly owned property Adjusted EBITDA
138,193

 
146,710

Corporate expense (1)
(14,171
)
 
(11,638
)
Wholly owned Adjusted EBITDA
124,022

 
135,072

Borgata
20,446

 
28,405

Adjusted EBITDA
144,468

 
163,477

 
 
 
 
Other operating costs and expenses
 
 
 
Deferred rent
906

 
957

Depreciation and amortization
66,179

 
70,038

Preopening expenses
784

 
2,365

Share-based compensation expense
6,481

 
4,091

Impairments of assets
1,633

 
—

Asset transactions costs
155

 
3,013

Other operating charges and credits, net
(186
)
 
1,593

Total other operating costs and expenses
75,952

 
82,057

Operating income
68,516

 
81,420

Other non-operating items
 
 
 
Interest expense, net
75,027

 
95,026

Loss on early extinguishments of debt
154

 
—

Other, net
(288
)
 
(518
)
Total other non-operating items, net
74,893

 
94,508

Loss from continuing operations before income taxes
(6,377
)
 
(13,088
)
Income taxes
(4,848
)
 
2,424

Loss from continuing operations, net of tax
(11,225
)
 
(10,664
)
Income (loss) from discontinued operations, net of tax
—

 
(963
)
Net loss
(11,225
)
 
(11,627
)
Net loss attributable to noncontrolling interest
5,043

 
4,343

Net loss attributable to Boyd Gaming Corporation
$
(6,182
)
 
$
(7,284
)
_______________________________________________

(1) Reconciliation of corporate expense:
 
Three Months Ended
 
March 31,
(In thousands)
2014
 
2013
Corporate expense as reported on Consolidated Statements of Operations
$
19,920

 
$
15,356

Corporate share-based compensation expense
(5,749
)
 
(3,718
)
Corporate expense as reported on the above table
$
14,171

 
$
11,638


6


BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Reconciliation of Net Loss to Adjusted Earnings (Loss) and Net Loss Per Share to Adjusted Earnings (Loss) Per Share
(Unaudited)
 
Three Months Ended
 
March 31,
(In thousands, except per share data)
2014
 
2013
Net loss attributable to Boyd Gaming Corporation
$
(6,182
)
 
$
(7,284
)
Less: (income) loss from discontinued operations, net of tax (1)
—

 
963

Adjusted net loss attributable to Boyd Gaming Corporation
(6,182
)
 
(6,321
)
 
 
 
 
Pretax adjustments related to Boyd Gaming:
 
 
 
Preopening expenses, excluding impact of LVE
751

 
4,298

Loss on early extinguishments of debt
154

 
—

Impairments of assets
1,633

 
—

Asset transactions costs
157

 
2,679

Other operating charges and credits, net
216

 
1,566

Other (income) loss
(375
)
 
(817
)
 
 
 
 
Pretax adjustments related to Borgata:
 
 
 
Preopening expenses
33

 
—

Valuation adjustments related to consolidation, net
(634
)
 
(259
)
Asset transactions costs
(2
)
 
334

Other operating charges and credits, net
(402
)
 
—

Total adjustments
1,531

 
7,801

 
 
 
 
Income tax effect for above adjustments
45

 
(31
)
Impact on noncontrolling interest, net
504

 
(38
)
Adjusted earnings (loss)
$
(4,102
)
 
$
1,411

 
 
 
 
Net loss per share attributable to Boyd Gaming Corporation
$
(0.06
)
 
$
(0.08
)
Less: (income) loss from discontinued operations, net of tax (1)
—

 
0.01

Adjusted net loss per share attributable to Boyd Gaming Corporation
(0.06
)
 
(0.07
)
Pretax adjustments related to Boyd Gaming:
 
 
 
Preopening expenses, excluding impact of LVE
0.01

 
0.05

Impairments of assets
0.01

 
—

Asset transactions costs
—

 
0.03

Other operating charges and credits, net
—

 
0.02

Other (income) loss
—

 
(0.01
)
 
 
 
 
Pretax adjustments related to Borgata:
 
 
 
Valuation adjustments related to consolidation, net
(0.01
)
 
—

Total adjustments
0.01

 
0.09

 
 
 
 
Income tax effect for above adjustments
—

 
—

Impact on noncontrolling interest, net
0.01

 
—

Adjusted earnings (loss) per share
$
(0.04
)
 
$
0.02

 
 
 
 
Weighted average shares outstanding
109,753

 
88,354

_______________________________________________
(1) Results for the prior year period are adjusted to exclude the financial results of Dania Jai-Alai, which was sold during the second quarter of 2013.

7


BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2014
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Boyd Gaming Wholly Owned
 
 
 
 
 
 
(In thousands, except per share data)
 
Excluding
Peninsula
Segment
 
Peninsula
Segment
 
Eliminations
 
Total
 
Borgata (1)
 
Eliminations
 
Boyd Gaming
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gaming
 
$
341,204

 
$
113,867

 
$
—

 
$
455,071

 
$
153,686

 
$
—

 
$
608,757

Food and beverage
 
66,141

 
9,448

 
—

 
75,589

 
31,054

 
—

 
106,643

Room
 
38,811

 
—

 
—

 
38,811

 
25,569

 
—

 
64,380

Other
 
31,172

 
3,898

 
(4,681
)
 
30,389

 
8,571

 
—

 
38,960

Gross revenues
 
477,328

 
127,213

 
(4,681
)
 
599,860

 
218,880

 
—

 
818,740

Less promotional allowances
 
53,835

 
4,940

 
—

 
58,775

 
51,616

 
—

 
110,391

Net revenues
 
423,493

 
122,273

 
(4,681
)
 
541,085

 
167,264

 
—

 
708,349

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gaming
 
168,499

 
53,211

 
—

 
221,710

 
63,464

 
—

 
285,174

Food and beverage
 
35,488

 
6,086

 
—

 
41,574

 
15,695

 
—

 
57,269

Room
 
10,386

 
—

 
—

 
10,386

 
2,784

 
—

 
13,170

Other
 
18,661

 
7,313

 
(4,681
)
 
21,293

 
6,499

 
—

 
27,792

Selling, general and administrative
 
70,904

 
12,373

 
—

 
83,277

 
41,402

 
—

 
124,679

Maintenance and utilities
 
23,081

 
3,210

 
—

 
26,291

 
16,973

 
—

 
43,264

Depreciation and amortization
 
33,854

 
18,464

 
—

 
52,318

 
13,861

 
—

 
66,179

Corporate expense
 
19,497

 
423

 
—

 
19,920

 
—

 
—

 
19,920

Preopening expenses
 
566

 
185

 
—

 
751

 
33

 
—

 
784

Impairments of assets
 
1,633

 
—

 
—

 
1,633

 
—

 
—

 
1,633

Asset transactions costs
 
139

 
18

 
—

 
157

 
(2
)
 
—

 
155

Other, net
 
150

 
66

 
—

 
216

 
(402
)
 
—

 
(186
)
Total costs and expenses
 
382,858

 
101,349

 
(4,681
)
 
479,526

 
160,307

 
—

 
639,833

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income from Borgata
 
3,478

 
—

 
—

 
3,478

 
—

 
(3,478
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
44,113

 
20,924

 
—

 
65,037

 
6,957

 
(3,478
)
 
68,516

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense (income)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
(4
)
 
(472
)
 
—

 
(476
)
 
—

 
—

 
(476
)
Interest expense, net of amounts capitalized
 
38,495

 
19,318

 
—

 
57,813

 
17,690

 
—

 
75,503

Loss on early extinguishments of debt
 
—

 
154

 
—

 
154

 
—

 
—

 
154

Other, net
 
(391
)
 
103

 
—

 
(288
)
 
—

 
—

 
(288
)
Other non-operating expenses from Borgata, net
 
8,521

 
—

 
—

 
8,521

 
—

 
(8,521
)
 
—

     Total other expense, net
 
46,621

 
19,103

 
—

 
65,724

 
17,690

 
(8,521
)
 
74,893

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing
   operations before taxes
 
(2,508
)
 
1,821

 
—

 
(687
)
 
(10,733
)
 
5,043

 
(6,377
)
Income taxes
 
(1,701
)
 
(3,794
)
 
—

 
(5,495
)
 
647

 
—

 
(4,848
)
Income (loss) from continuing
   operations, net of tax
 
(4,209
)
 
(1,973
)
 
—

 
(6,182
)
 
(10,086
)
 
5,043

 
(11,225
)
Income (loss) from discontinued operations, net of tax
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Net income (loss)
 
(4,209
)
 
(1,973
)
 
—

 
(6,182
)
 
(10,086
)
 
5,043

 
(11,225
)
Net income (loss) attributable to noncontrolling interest
 
—

 
—

 
—

 
—

 
—

 
5,043

 
5,043

Net income (loss) attributable to Boyd Gaming Corporation
 
$
(4,209
)
 
$
(1,973
)
 
$
—

 
$
(6,182
)
 
$
(10,086
)
 
$
10,086

 
$
(6,182
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

8


BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2014
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Boyd Gaming Wholly Owned
 
 
 
 
 
 
(In thousands, except per share data)
 
Excluding
Peninsula
Segment
 
Peninsula
Segment
 
Eliminations
 
Total
 
Borgata (1)
 
Eliminations
 
Boyd Gaming
Consolidated
Basic net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
$
(0.06
)
 
 
 
 
 
$
(0.06
)
Discontinued operations
 
 
 
 
 
 
 
—

 
 
 
 
 
—

Basic net loss per common share
 
 
 
 
 
 
 
$
(0.06
)
 
 
 
 
 
$
(0.06
)
Weighted average basic shares outstanding
 
 
 
 
 
 
 
109,753

 
 
 
 
 
109,753

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
$
(0.06
)
 
 
 
 
 
$
(0.06
)
Discontinued operations
 
 
 
 
 
 
 
—

 
 
 
 
 
—

Diluted net loss per common share
 
 
 
 
 
 
 
$
(0.06
)
 
 
 
 
 
$
(0.06
)
Weighted average diluted shares outstanding
 
 
 
 
 
 
 
109,753

 
 
 
 
 
109,753

_______________________________________________

(1)
Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

9


BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2013
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Boyd Gaming Wholly Owned
 
 
 
 
 
 
 
 
(In thousands, except per share data)
 
Excluding
Peninsula
Segment
 
Peninsula Segment
 
Eliminations
 
Total
 
Borgata (1)
 
LVE (Variable Interest Entity) (2)
 
Eliminations
 
Boyd Gaming
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gaming
 
$
360,968

 
$
125,911

 
$
—

 
$
486,879

 
$
145,680

 
$
—

 
$
—

 
$
632,559

Food and beverage
 
68,148

 
9,691

 
—

 
77,839

 
33,935

 
—

 
—

 
111,774

Room
 
37,181

 
—

 
—

 
37,181

 
26,674

 
—

 
—

 
63,855

Other
 
31,596

 
3,696

 
(5,171
)
 
30,121

 
9,190

 
1,933

 
(1,933
)
 
39,311

Gross revenues
 
497,893

 
139,298

 
(5,171
)
 
632,020

 
215,479

 
1,933

 
(1,933
)
 
847,499

Less promotional allowances
 
56,694

 
5,385

 
—

 
62,079

 
49,836

 
—

 
—

 
111,915

Net revenues
 
441,199

 
133,913

 
(5,171
)
 
569,941

 
165,643

 
1,933

 
(1,933
)
 
735,584

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gaming
 
179,357

 
56,759

 
—

 
236,116

 
61,146

 
—

 
—

 
297,262

Food and beverage
 
36,025

 
6,700

 
—

 
42,725

 
17,328

 
—

 
—

 
60,053

Room
 
10,103

 
—

 
—

 
10,103

 
2,997

 
—

 
—

 
13,100

Other
 
19,205

 
7,463

 
(5,171
)
 
21,497

 
6,677

 
—

 
—

 
28,174

Selling, general and administrative
 
74,882

 
14,371

 
—

 
89,253

 
34,775

 
—

 
—

 
124,028

Maintenance and utilities
 
21,814

 
3,079

 
—

 
24,893

 
14,316

 
—

 
—

 
39,209

Depreciation and amortization
 
32,733

 
21,697

 
—

 
54,430

 
15,608

 
—

 
—

 
70,038

Corporate expense
 
14,270

 
1,086

 
—

 
15,356

 
—

 
—

 
—

 
15,356

Preopening expenses
 
4,298

 
—

 
—

 
4,298

 
—

 
—

 
(1,933
)
 
2,365

Asset transactions costs
 
2,571

 
108

 
—

 
2,679

 
334

 
—

 
—

 
3,013

Other, net
 
1,566

 
—

 
—

 
1,566

 
—

 
—

 
—

 
1,566

Total costs and expenses
 
396,824

 
111,263

 
(5,171
)
 
502,916

 
153,181

 
—

 
(1,933
)
 
654,164

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income from Borgata
 
6,231

 
—

 
—

 
6,231

 
—

 
—

 
(6,231
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
50,606

 
22,650

 
—

 
73,256

 
12,462

 
1,933

 
(6,231
)
 
81,420

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense (income)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
(129
)
 
(527
)
 
—

 
(656
)
 
—

 
—

 
—

 
(656
)
Interest expense, net of amounts capitalized
 
50,147

 
22,385

 
 
 
72,532

 
20,774

 
2,376

 
 
 
95,682

Other, net
 
—

 
(518
)
 
—

 
(518
)
 
—

 
—

 
—

 
(518
)
Other non-operating expenses from Borgata, net
 
10,131

 
—

 
—

 
10,131

 
—

 
—

 
(10,131
)
 
—

     Total other expense, net
 
60,149

 
21,340

 
—

 
81,489

 
20,774

 
2,376

 
(10,131
)
 
94,508

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing
   operations before taxes
 
(9,543
)
 
1,310

 
—

 
(8,233
)
 
(8,312
)
 
(443
)
 
3,900

 
(13,088
)
Income taxes
 
6,603

 
(4,691
)
 
—

 
1,912

 
512

 
—

 
—

 
2,424

Income (loss) from continuing
   operations, net of tax
 
(2,940
)
 
(3,381
)
 
—

 
(6,321
)
 
(7,800
)
 
(443
)
 
3,900

 
(10,664
)
Income (loss) from discontinued operations, net of tax
 
(963
)
 
—

 
—

 
(963
)
 
—

 
—

 
—

 
(963
)
Net income (loss)
 
(3,903
)
 
(3,381
)
 
—

 
(7,284
)
 
(7,800
)
 
(443
)
 
3,900

 
(11,627
)
Net income (loss) attributable to noncontrolling interest
 
—

 
—

 
—

 
—

 
—

 
443

 
3,900

 
4,343

Net income (loss) attributable to Boyd Gaming Corporation
 
$
(3,903
)
 
$
(3,381
)
 
$
—

 
$
(7,284
)
 
$
(7,800
)
 
$
—

 
$
7,800

 
$
(7,284
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

10


BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2013
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Boyd Gaming Wholly Owned
 
 
 
 
 
 
 
 
(In thousands, except per share data)
 
Excluding
Peninsula
Segment
 
Peninsula Segment
 
Eliminations
 
Total
 
Borgata (1)
 
LVE (Variable Interest Entity) (2)
 
Eliminations
 
Boyd Gaming
Consolidated
Basic net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
$
(0.07
)
 
 
 
 
 
 
 
$
(0.07
)
Discontinued operations
 
 
 
 
 
 
 
(0.01
)
 
 
 
 
 
 
 
(0.01
)
Basic net loss per common share
 
 
 
 
 
 
 
$
(0.08
)
 
 
 
 
 
 
 
$
(0.08
)
Weighted average basic
shares outstanding
 
 
 
 
 
 
 
87,974

 
 
 
 
 
 
 
87,974

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
$
(0.07
)
 
 
 
 
 
 
 
$
(0.07
)
Discontinued operations
 
 
 
 
 
 
 
(0.01
)
 
 
 
 
 
 
 
(0.01
)
Diluted net loss per common share
 
 
 
 
 
 
 
$
(0.08
)
 
 
 
 
 
 
 
$
(0.08
)
Weighted average diluted
shares outstanding
 
 
 
 
 
 
 
87,974

 
 
 
 
 
 
 
87,974

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
_______________________________________________

(1) Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.
(2) Boyd Gaming's contractual agreements with LVE were terminated on March 4, 2013, in connection with the sale of the Echelon development site. As a result, Boyd Gaming ceased consolidation of LVE as of that date. The financial results presented for LVE include only that portion of the period that the variable interest entity was consolidated by Boyd Gaming.




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Non-GAAP Financial Measures

Regulation G, "Conditions for Use of Non-GAAP Financial Measures," prescribes the conditions for use of non-GAAP financial information in public disclosures. We believe that our presentations of the following non-GAAP financial measures are important supplemental measures of operating performance to investors: earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings Per Share (Adjusted EPS). The following discussion defines these terms and why we believe they are useful measures of our performance. We do not provide a reconciliation of forward-looking non-GAAP financial measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with accounting principles generally accepted in the United States (“GAAP”), provides our investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of our core operating results and as a means to evaluate period-to-period results. We refer to this measure as Adjusted EBITDA. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. We have historically reported this measure to our investors and believe that the continued inclusion of Adjusted EBITDA provides consistency in our financial reporting. We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by our management in their financial and operational decision-making. Adjusted EBITDA is among the more significant factors in management's internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA as a measure in the evaluation of potential acquisitions and dispositions. Adjusted EBITDA is also used by management in the annual budget process. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company. Adjusted EBITDA reflects EBITDA adjusted for deferred rent, preopening expenses, share-based compensation expense, impairments of assets, asset transactions costs, loss on early extinguishments of debt and other operating charges, net, and Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. In addition, Adjusted EBITDA includes corporate expense.

Adjusted Earnings and Adjusted EPS

Adjusted Earnings is net income (loss) before preopening expenses, asset transactions costs, net gains on insurance settlements, impairments of assets, certain adjustments to property tax accruals, write-downs and other charges, net, accelerated amortization of deferred loan fees, gain or loss on early retirements of debt, other non-recurring adjustments, net, valuation adjustments related to the consolidation of Borgata, and 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.

Limitations on the Use of Non-GAAP Measures

The use of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS or certain other non-GAAP financial measures may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, capital expenditures and other items both in our reconciliations to the historical GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.

EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding historical GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

Forward-looking Statements and Company Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking

12


statements in this press release include statements regarding: the Company’s guidance for the full year 2014; that refinements to the Company’s operations are benefiting all segments of the business; the expectation for additional benefits as the economy recovers; that the Company is diligently focused on building long-term shareholder value; and future prospects for the Company. 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 receipt of legislative, and other state, federal and local approvals for the Company's development projects in Florida, California and other jurisdictions; whether online gaming will become legalized in various states, the Company's ability to operate online gaming profitably, or otherwise; consumer reaction to fluctuations in the stock market and economic factors; the fact that the Company's expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Company's Annual Report on Form 10-K, 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 22 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi and New Jersey. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.



13

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