Boyd Gaming posts $8.4 million profit in first quarter

7 May 2010

LAS VEGAS, Nevada -- Boyd Gaming Corp.'s first quarter was a mixed bag of news with the company surpassing analysts' expectations on some points but disappointing on others.

One category that peaked Wall Street's interest was the company's performance in the Las Vegas locals market, even though it posted a double-digit cash flow decline when compared to last year's first three months.

Boyd Gaming posted a profit of $8.4 million, or 10 cents per share, for the first quarter ended March 31, a morning filing the Securities and Exchange Commission shows.

That is a sharp swing compared to a loss of $13.8 million, or 16 cents per share, in the same period last year.

A survey of analysts had expected an adjusted profit of 7 cents per share, according to Thomson Reuters.

Revenues slipped 8.4 percent to $398.4 million in the quarter, down from $434.8 million same time last year. Cash flow, reported as earnings before interest, taxes, depreciation and amortization, dropped 20.2 percent to $87.4 million from $109.6 million prior year.

Revenues and cash flow missed Wall Street's expectations of $409 million $92.4 million respectively, JP Morgan Research gaming analyst Joseph Greff said in a morning note to investors.

Boyd Gaming President and Chief Executive Officer Keith Smith said in a statement the company's business trends "clearly reflect the signs of an emerging recovery."

Both analysts and Boyd Gaming were pleased with the company's performance in the Las Vegas locals market even though revenues slipped 7.9 percent to $156.6 million and cash flow dropped 10.8 percent to $40.4 million from the prior year.

Smith said the results were the best for them in the market in two years and points to a larger recovery.

"Business levels are returning to normal seasonal patterns in this region," Smith's statement said. "Given the positive developments in our business, combined with continued improvement in the national economy, we expect to generate year-over-year growth during the second half of 2010."

Greff had anticipated a much sharper decrease in cash flow.

"(This is) the narrowest year-over-year decline since the downturn began," Greff said in a morning note to investors. "Our sense is that the slightly better Las Vegas locals performance is what really matters to investors here."

Boyd Gaming owns and operates the hotel-casinos Sam's Town, The Orleans, Gold Coast and Suncoast in the locals market, as well as casino properties Jokers Wild and Eldorado.

The company is looking to bolster in locals market share by acquiring part or all of competitor Station Casinos, which is currently in bankruptcy.

The company's downtown properties - California, Fremont and Main Street Station - saw revenues decline 8 percent to $54 million and cash flow fall 37.3 percent to $8.4 million from first quarter 2009.

The company said the results reflect lower ticket pricing and higher fuel costs associated with its Hawaiian charter operation, as well as lower-than-expected visitor volumes.

Boyd Gaming owns and operates six casinos in Mississippi, Illinois, Louisiana and Indiana. The company owns 50 percent of the Borgata in Atlantic City, and operates the property.

Partner MGM Mirage has said it plans to sell its share in the property after running afoul of New Jersey regulators due to its relationships in Macau.

Work on Echelon project on the former Stardust site, which halted in 2008, remains suspended.

Boyd Gaming's stock closed at $13.47 per share Monday on the New York Stock Exchange. It was down 3.9 percent to $13 per share during morning trading. The stock is up 51 percent since the first of the year.

Goldman Sachs Global Investment gaming analyst Steven Kent said he believes the company stock will continue to trade on the potential for Boyd Gaming to acquire some of Station Casinos' properties and on MGM Mirage's stake in the Borgata.


Related Links
Nevada Gambling


Copyright GamingWire. All rights reserved.
Featured Vendors
Casino Essentials
Regulatory Management Counselors, PC
Casino Essentials
The Ultimate Online Training Platform for the Casino Industry
Regulatory Management Counselors, PC
Over 35 years of experience serving the legal and regulatory needs of casino industry clients
Slot Machines Unlimited
Gaming Tickets, Inc.
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Gaming Tickets, Inc.
35 years in the gaming industry - premium quality slot tickets, lottery tickets on time under budget
Code Red Headsets
Allen Meyer Group LLC
Code Red Headsets
Since 1999 Code Red provides a variety of 2-way radio accessories for Casinos & Hotels.
Allen Meyer Group LLC
AllenMeyer - the PPE Suppliers' Supplier
Kallop
Castle Merchandising Inc
Kallop
Reward every player like a VIP with luxury brands at surprisingly affordable prices.
Castle Merchandising Inc
Brand Name Products for your Player Rewards and Loyalty Programs
Rymax Marketing Services, Inc.
Sunkist Graphics, Inc.
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
TribalHub
iPaySolutions Ltd
TribalHub
21st Annual TribalNet Conference & Tradeshow Nov 9-12, 2020 Gaylord Texan Resort, Grapevine TX
iPaySolutions Ltd
Leading experts to help your iGaming business accept payments at the rates you deserve to win big
Meister Economic Consulting, LLC
Casino Schedule Ease
Meister Economic Consulting, LLC
Economic consulting firm specializing in high quality research and analysis
Casino Schedule Ease
Get a 90-Day Free Trial of 100% contactless, customizable table game & full casino scheduling
Elite Gaming USA
Breathe Easy with Smokefree Casinos- a project of the American Nonsmokers’ Rights Foundation
Elite Gaming USA
Provides a diverse inventory of refurbished gaming equipment and supplies from top manufacturers
Breathe Easy with Smokefree Casinos- a project of the American Nonsmokers’ Rights Foundation
Breathe easier during COVID-19. We can help you reopen smokefree for everyone’s health.
Global Gaming Expo (G2E)
Slot-Tickets Worldwide
Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
Slot-Tickets Worldwide
Slot-Tickets® Worldwide, The Original and Still the Best.
Casino City Press
Betson Imperial Parts & Service
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Betson Imperial Parts & Service
You one stop shop for all your gaming and OEM needs!
Bar Maid Corporation
Bar Maid Corporation
Clean and dry thousands of chips, dice and tiles per hour with the high-speed CHIP CHAMPION machine!


Your Guide to 15,689 Gaming Industry Suppliers