Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Boyd Gaming Updates Guidance For Fourth Quarter 2013



             Boyd Gaming Updates Guidance For Fourth Quarter 2013

PR Newswire

LAS VEGAS, Jan. 30, 2014

LAS VEGAS, Jan. 30, 2014 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD)
today announced that it is updating its previously provided Adjusted EBITDA
and Adjusted EPS guidance for the fourth quarter ended December 31, 2013.

(Logo: http://photos.prnewswire.com/prnh/20030219/BOYDLOGO)

For the fourth quarter 2013, the Company expects Borgata to report Adjusted
EBITDA^(1) of $15.0 million to $17.0 million, compared to previous guidance of
$22.0 million to $24.0 million.   As previously disclosed, Borgata's
fourth-quarter results were impacted by several short-term factors in
December, including an unusually low hold percentage and severe winter weather
during two weekends. Borgata's expected fourth-quarter performance and
previously provided guidance do not include any meaningful impacts from online
gaming.

The Company expects to report wholly-owned Adjusted EBITDA, after the
deduction of corporate expense, at the lower end of the previously provided
range of $105.0 million to $110.0 million.  Despite the impact of soft market
conditions and winter weather on operations in the Midwest and South and
Peninsula segments, the Company's wholly-owned operations performed in-line
with expectations in the fourth quarter, benefitting from continued
performance in the Las Vegas Locals and Downtown Las Vegas segments.
Wholly-owned Adjusted EBITDA for fourth quarter 2013 excludes a favorable
property tax adjustment of $9.3 million.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said,
"Despite short-term challenges at Borgata, we remain optimistic about the
overall direction of our business.   We are confident that the investments and
refinements we have made throughout the business, our improving financial
position, and our leadership position in real-money online gaming will fuel
further momentum in our business in 2014 and beyond."

Adjusted loss per share ^(1) for fourth quarter 2013 is expected to range from
a loss of $0.21 to $0.27 per share, compared to previous guidance of a loss of
$0.15 to $0.20 per share. 

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

GAAP Reconciliation and GAAP Metrics

On a GAAP basis, the Company expects to report a net loss attributable to Boyd
Gaming Corporation of $44.3 million to $49.8 million, and a net loss per share
of $0.40 to $0.46. The Company's fourth-quarter results will include charges
of $24.7 million due to early extinguishments of debt, primarily related to
debt refinancing activities at Borgata.  The Company also expects its
fourth-quarter results to be impacted by non-cash impairment charges,
currently estimated to total $4.1 million, arising primarily from the annual
impairment test of its indefinite-lived intangible assets. Reconciliations of
the range of estimated Adjusted EBITDA to the estimated net loss attributable
to Boyd Gaming Corporation, and the range of estimated net loss per share to
estimated Adjusted loss per share, are provided in the tables included with
this release.

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Estimated Adjusted EBITDA to Estimated Net Loss

For Fourth Quarter 2013

(Unaudited)
                                                    Range of Estimated Results
                                                    for Fourth Quarter 2013
(In millions)                                       Low            High
Wholly owned Adjusted EBITDA, before property tax   $  105.0       $  110.0
adjustment
Add: Property tax adjustment                        9.3            9.3
Wholly owned Adjusted EBITDA                        114.3          119.3
Atlantic City                                       15.0           17.0
Adjusted EBITDA                                     129.3          136.3
Other operating costs and expenses
Depreciation and amortization                       69.1           69.1
Estimated impairments of assets                     4.1            4.1
Other, net                                          18.8           21.2
Total                                               92.0           94.4
Operating income                                    37.3           41.9
Other non-operating items
Interest expense, net                               77.0           77.0
Loss on early extinguishments of debt               24.7           24.7
Other, net                                          (2.3)          (1.4)
Total                                               99.4           100.3
Loss from continuing operations before taxes        (62.1)         (58.4)
Income taxes                                        (7.3)          (6.5)
Net loss                                            (69.4)         (64.9)
Net loss attributable to noncontrolling interests   19.6           20.6
Net loss attributable to Boyd Gaming Corporation    $  (49.8)      $  (44.3)

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Estimated Net Loss Per Share to Estimated Adjusted Loss Per
Share

For Fourth Quarter 2013

(Unaudited)
                                                  Range of Estimated Results
                                                  for Fourth Quarter 2013
                                                  Low              High
Net loss per share attributable to Boyd Gaming    $   (0.46)       $  (0.40)
Corporation
  Pretax adjustments:
    Loss on early extinguishments of debt         0.23             0.23
    Estimated impairments of assets               0.04             0.04
    Property tax adjustment                       (0.09)           (0.09)
    Other                                         0.05             0.05
  Estimated income tax effect of adjustments      0.08             0.08
  Impact on noncontrolling interests              (0.12)           (0.12)
Adjusted loss per share                           $   (0.27)       $  (0.21)

 

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.

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 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 estimated
Adjusted EBITDA to estimated 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, 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, changes in the fair value
of derivative instruments, gain or loss on early retirements of debt, other
non-recurring adjustments, net, 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 estimated net income (loss) based upon GAAP to estimated
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: expectations regarding the Company's and
Borgata's anticipated fourth quarter results; optimism for the Company's and
Borgata's results in 2014; Borgata's performance during the first full month
of online wagering; that the challenges at Borgata were short-term; that
investments and refinements that have been made throughout the business, the
Company's improving financial position, and its leadership position in
real-money online gaming will fuel further momentum in our business in 2014
and beyond. 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.

SOURCE Boyd Gaming Corporation

Website: http://www.boydgaming.com
Contact: Investors, Josh Hirsberg, (702) 792-7234,
joshhirsberg@boydgaming.com; or Media, David Strow, (702) 792-7386,
davidstrow@boydgaming.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement