I've often thought of buying stock in Boyd before heading out for a trip<g>
I do kick myself for not buying any when it was down under $5- I remember watching it down there and knowing it was largely under valued, even if they never dealt another hand or even if another slot arm was never pulled.
Property alone is worth about $6/share.
However, at $25, I think it's way over valued.
Oh well....
<font color=teal>Las Vegas-Based Boyd Gaming Reports 18 Percent Decline in Quarterly Net Income</font>
Apr 23, 2004 (Las Vegas Review-Journal - Knight Ridder/Tribune Business News
via COMTEX) -- Despite strong performances from its East Coast rookie ace and a
pair of reliable Las Vegas veterans, profits at Boyd Gaming Corp. slipped during
this year's first quarter, company officials said Thursday.
The Las Vegas-based gaming operator reported $13.5 million in quarterly net
income, or 20 cents per share, during the three-month period ended March 31.
That total was down 18 percent from the same period a year ago, when quarterly
net income was $16.4 million, or 25 cents per share.
Companywide revenue improved to $330 million, up 2.5 percent from $321.8 million
a year ago, while adjusted cash flow climbed to $80.7 million from $71.9 million
in last year's first quarter.
Boyd Gaming's adjusted first-quarter earnings per share totaled 29 cents,
unchanged from the same quarter last year.
The company's best news came from Atlantic City, where its new $1 billion
Borgata megaresort has exceeded expectations since opening July 3.
Thanks in part to bustling casino play and an unusually high 83 percent hotel
occupancy rate along a seasonally chilly New Jersey shore, Borgata reported
quarterly net revenue of $146 million. The property's cash flow, defined as
earnings before interest, taxes, depreciation and amortization, was $40.1
million, the best in the Atlantic City market, Ellis Landau, Boyd Gaming
executive vice president and chief financial officer, said in a Thursday
conference call.
"If you're an Atlantic City operator, winters are supposed to be a time you wish
your casino was someplace else," Landau said. "But not Borgata. I've said that
the Boardwalk may be seasonal, the beach may be seasonal, but having fun is not
seasonal and Borgata results showed it."
Borgata Chief Executive Officer Bob Boughner said the company plans to expand
Borgata, including building a larger spa; five restaurants; two bars; a
100-table poker room; 700 slots; 20 new table games; and added meeting space.
Boyd Gaming owns 50 percent of the Borgata with partner Las Vegas-based gaming
giant MGM Mirage.
Returns were also positive in Southern Nevada, where Sam's Town, a 25-year-old
locals casino in east Las Vegas, also reported its best-ever quarterly cash
flow.
The Western-themed resort's $12.4 million cash flow total was up 17.4 percent
from the then-record $10.6 million it reported a year ago. Sam's Town's revenue
total was also up 8.4 percent to $38.7 million.
On the Strip, Boyd Gaming's nearly 46-year-old Stardust reported a 14.9 percent
cash flow increase at $5.5 million. Net revenue was also up, this time by 7.8
percent, at $38.7 million.
Landau said last year's Nevada gaming tax increase cost Boyd Gaming about $1
million during the quarter.
Those properties' gains were offset by higher gaming taxes imposed by the state
of Illinois. Boyd Gaming's East Peoria-based Par-A-Dice resort saw its quarterly
cash flow dip by $3.3 million to $8.2 million, a decline the company traced
primarily to Illinois' 2003 gaming tax increase.
Illinois Gov. Rod Blagojevich in June raised his state's taxes on adjusted gross
receipts exceeding $250 million to 70 percent from 50 percent effective July 1,
2003.
Snyder also said Boyd Gaming's pending acquisition of Harrah's Shreveport (La.)
hotel-casino, soon to be Sam's Town Shreveport, as well as the company's planned
merger with Las Vegas-based Coast Casinos, will diversify the company's U.S.
holdings and allow it to better compete in both the Las Vegas locals market and
on the Strip.
"We feel very good about how this company is positioned for the future," Boyd
Gaming President Don Snyder said.
Boyd Gaming shares closed Thursday at $24.80, down 27 cents or 1.08 percent.
By Chris Jones
To see more of the Las Vegas Review-Journal, or to subscribe to the newspaper,
go to lvrj.com.
(c) 2004, Las Vegas Review-Journal. Distributed by Knight Ridder/Tribune
Business News.
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