Tuesday April 18, 3:03 pm Eastern Time
Company Press Release
SOURCE: Boyd Gaming Corporation
Boyd Gaming Reports Record Results
- First Quarter E.P.S. Rises 22% to $.22 Per Share -
LAS VEGAS, April 18 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD - news) today announced that in the first quarter ended March 31, 2000, the Company earned $.22 per share, excluding the earnings from the one-time payment received from the early termination of the Silver Star management agreement. This represents a 22% increase over the $.18 per share before preopening expenses reported in the first quarter last year. Including the early termination fee, the Company reported earnings of $.92 per share. Per share amounts are presented on a diluted basis.
Quarterly highlights include:
-- First quarter earnings per share of $.22 sets a record as the highest
quarterly E.P.S. in the Company's history.
-- Operating cash flow from the Company's properties was a record
$71.1 million in the first quarter, exceeding the previous quarterly
record by over $9 million.
-- The Company significantly reduced its debt in the quarter by
$111 million, from $984 million to $873 million. The Silver Star
termination payment accounted for $72 million of the reduction.
-- Blue Chip Casino reported operating cash flow in the first quarter of
$20.9 million, 27% above the property's results in the first quarter
last year. Boyd Gaming acquired Blue Chip in November 1999.
-- Sam's Town Las Vegas recorded the highest quarterly slot win in the
property's 21 year history, despite the on-going effects of
construction disruption from a major renovation at the property.
-- The Downtown Las Vegas properties recorded operating cash flow in the
quarter of $10.1 million, the second quarter in a row that these
properties reported results in excess of $10 million.
-- Par-A-Dice reported operating cash flow in the quarter of
$12.2 million, an increase of 41% over results in the first quarter
last year. It was the third quarter in a row with year-over-year
operating cash flow increases of over 40% since the
introduction of dockside gaming in Illinois.
-- Sam's Town Tunica and Treasure Chest continued to feel the effects of
competition in their markets. While both properties reported operating
cash flows in the quarter much below prior year levels, both reported
operating cash flow gains above the immediately preceding quarter. By
that measure, Sam's Town Tunica was up 7.4%, and Treasure Chest was up
44% over their respective results in the fourth quarter of 1999.
Revenue for the first quarter, before the Silver Star termination payment, was $282 million, up 15.8% over the $243 million reported in the first quarter last year. Also, before the one-time payment and before preopening expense, operating income in the quarter was $42.2 million, an increase of 17.3% over the prior year, and EBITDA in the quarter was $63.7 million, an increase of 16.5% over the first quarter last year. These quarterly results were affected by the acquisition of Blue Chip Casino in November 1999 and the termination of the Silver Star management agreement on January 31, 2000.
Commenting on the quarterly results, William S. Boyd, Chairman and Chief Executive Officer of Boyd Gaming said, ``I am so very pleased that, despite the termination of the Silver Star management contract in January, we saw record earnings and cash flow in our first quarter. After growing our E.P.S. over 20% annually in each of the last three years, I am most gratified to see a further continuation of the trend with a 22% E.P.S. gain in the first quarter of 2000. Equally gratifying is our success in deleveraging our balance sheet, as the $111 million debt reduction included $39 million in addition to what we received from the Silver Star termination payment. To look at this large pay-down another way, in just one quarter we repaid over 40% of the debt we incurred to purchase Blue Chip in November 1999.'
Quarterly Property Highlights
In Nevada, the Downtown Las Vegas properties reported $10.1 million of operating cash flow in the quarter versus $9.3 million last year, a gain of 7.9%. Revenue for these properties grew 1.9% in the quarter over the prior year and operating cash flow margin increased by one percentage point. It was the sixth consecutive quarter that the operating cash flow of the group exceeded $9 million and the second in a row that it exceeded $10 million. Sam's Town Las Vegas reported operating cash flow 10.5% above the prior year and operating cash flow margin 2.9 percentage points above the comparable quarter in the prior year. Gaming revenue in the quarter rose 3.5%, but total revenue declined 3.5% mostly due to the closure of the Western Emporium retail store to make way for the major expansion of the property scheduled to be completed by the end of the year. The Stardust experienced lower volumes in most of its operations and, as a result, reported a 23% decline in operating cash flow in the quarter when compared with the prior year. However, the Stardust reported operating cash flow 16.9% above the fourth quarter of 1999.
The Central Region reported operating cash flow in the quarter that was more than $10 million above the comparable quarter last year due to the November 1999 acquisition of Blue Chip, whose operating cash flow in the quarter of $20.9 million more than offset the loss of fee income from the January 31 termination of the Silver Star management agreement. When comparing Blue Chip's results with the prior year, before the acquisition, revenue increased 26%, operating cash flow increased 27% and operating cash flow margin increased 0.3 percentage points. Blue Chip opened its new hotel during February of the recent quarter. Par-A-Dice reported its third consecutive quarter of strong gains over the comparable quarter in the prior year primarily as a result of dockside gaming, which was authorized at the end of June 1999. In the first quarter, Par-A-Dice's revenue increased 26%, its operating cash flow increased 41% and its operating cash flow margin increased 3.9 percentage points.
Sam's Town Tunica reported an operating cash flow decline in the quarter of $4.0 million when compared with the first quarter last year. The property is beginning a $21 million renovation, scheduled to be completed by the end of the year, to improve its casino and restaurant offerings in order to be more competitive with others in its market. The property is also adding a 100-space RV park. Treasure Chest reported an 11.8% decline in revenue in the quarter due to the opening of a major land-based competitor in New Orleans in October 1999. The property continues to be aggressive to recapture as much business as possible and to grow the market in its attractive suburban location.
The following table reports March quarterly net revenues and EBITDA for the Company's properties. Downtown Properties include the California Hotel and Casino, the Fremont Hotel and Casino, and Main Street Station. Blue Chip Casino was acquired in November 1999, and the Silver Star management agreement terminated at the end of January 2000.
($ in thousands) Three Months Ended
March 31,
2000 1999
Net Revenues
Stardust $39,341 $41,290
Sam's Town Las Vegas 38,058 39,449
Eldorado & Jokers Wild 9,140 9,130
Downtown Properties (a) 55,039 53,993
Sam's Town Tunica 25,901 29,306
Par-A-Dice 34,549 27,430
Treasure Chest 28,081 31,847
Blue Chip 47,795 --
Total Owned Properties 277,904 232,445
Management Fee 3,815 10,813
Total Properties $281,719 (b) $243,258
EBITDA
Stardust $4,757 $6,214
Sam's Town Las Vegas 8,727 (c) 7,895
Eldorado & Jokers Wild 1,920 2,254
Downtown Properties 10,087 9,346
Sam's Town Tunica 3,003 7,043
Par-A-Dice 12,182 8,620
Treasure Chest 5,705 9,067
Blue Chip 20,867 (c) --
Total Owned Properties 67,248 50,439
Management Fee 3,815 10,353
Total Properties $71,063 (b) $60,792
(a) Includes revenues related to Vacations Hawaii, a Honolulu travel
agency, of $9,651 and $8,472, respectively, for the three months
ended March 31, 2000 and 1999.
(b) Before termination fee.
(c) Before preopening expenses.
This press release contains forward-looking statements regarding operating trends and the completion of renovation projects, which are subject to change. The actual results may differ materially from those described in any forward-looking statements. In that regard, there can be no assurance that the Company's steps to address underperforming properties will be successful. Additional information concerning potential factors that could affect the Company's financial results are included in the Company's Form 10-K for the year ended 1999.
Headquartered in Las Vegas, Boyd Gaming Corporation is a leading diversified owner and operator of 11 casino entertainment properties located in Nevada, Mississippi, Illinois, Indiana and Louisiana. Boyd Gaming is also developing ``The Borgata' (AOL keyword:borgata or www.theborgata.com) an entertainment destination resort in Atlantic City, through a joint venture with Mirage Resorts, Incorporated.
Boyd Gaming press releases are available by facsimile through Company News On-Call (800) 758-5804, extension 104550, or at www.prnewswire.com . Additional news and information on Boyd Gaming can be found at www.boydgaming.com .
BOYD GAMING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
(In thousands, except per share data) 2000 1999
Revenues
Casino $225,628 $179,533
Food and beverage 40,910 40,968
Room 18,395 19,304
Other 17,208 17,345
Management fee 3,815 10,813
Termination fee, net 70,988 --
Gross revenues 376,944 267,963
Less promotional allowances 24,237 24,705
Net revenues 352,707 243,258
Costs and expenses
Casino 109,815 90,298
Food and beverage 25,275 25,833
Room 5,706 6,242
Other 16,515 15,401
Selling, general and administrative 41,639 35,038
Maintenance and utilities 11,706 9,654
Depreciation 19,102 17,294
Amortization of intangible license
rights and acquisition costs 2,450 1,438
Corporate expense 7,338 6,102
Preopening expense 382 539
Total 239,928 207,839
Operating income 112,779 35,419
Other income (expense)
Interest income 134 57
Interest expense, net of
amounts capitalized (20,118) (17,131)
Total (19,984) (17,074)
Income before provision for income taxes
and cumulative effect of a change in
accounting principle 92,795 18,345
Provision for income taxes 35,726 7,705
Income before cumulative effect of a
change in accounting principle 57,069 10,640
Cumulative effect of a change in accounting
for start-up activities, net of tax
benefit of $936 -- (1,738)
Net income $57,069 $8,902
Basic and Diluted Net income
per common share
Income before cumulative effect
of a change in accounting principle $0.92 $0.17
Cumulative effect of a change in
accounting for start-up activities,
net of tax -- (0.03)
Net income $ 0.92 $ 0.14
Average Basic Shares Outstanding 62,228 62,028
Average Diluted Shares Outstanding 62,305 62,028 |
