Boyd keeping mum about REIT plans

24 July 2015

The investment community knew the answer going into Boyd Gaming Corp.'s second-quarter earnings conference call.

The casino operator wasn't providing additional commentary on a possible real estate investment trust or strategic corporate option. The answer has been the same since Boyd first brought up the idea last year.

"It's something that we've said we're not going to discuss publicly until we have a definitive direction," Boyd Gaming CEO Keith Smith said Thursday.

Two days after regional gaming rival Pinnacle Entertainment struck a $4.75 billion deal to sell and lease back its casinos to Gaming and Leisure Properties, Smith knew the questions about a potential Boyd REIT or acquiring casinos were coming.

"It's something we will continue to study and it's difficult to provide any answers," Smith said without commenting directly on the GLPI-Pinnacle deal. "These are very company-specific issues and each company has a different set of facts to consider."

Smith and Boyd Chief Financial Officer Josh Hirsberg told analysts the company is always looking to expand the business through transactions.

In the quarter that ended June 30, Boyd Gaming grew revenue 3.5 percent, but recorded a net loss due to pretax losses after an early retirement of $31 million in debt.

Still, Smith termed the three-month period a success. Boyd saw revenue increases across all divisions and double-digit growth in cash flow for the third straight quarter.

"The upgrades we are making to enhance our amenities also contributed to revenue growth across the portfolio," Smith said. "We are pleased with the progress we have made so far this year."

Overall, Boyd Gaming had net revenue of $559.9 million. However, the net loss of $6.4 million, or 6 cents per share, compared to a net income of $5.3 million in the same quarter a year ago.

Cash flow of $162.9 million was a 17 percent increase from the prior year.

In the company's Las Vegas locals segment, which includes the Coast Casinos brands and Sam's Town Hotel & Gambling Hall, Boyd grew revenue 3.2 percent and cash flow jumped 15.3 percent. In a statement, the company said Suncoast Hotel and Casino and Sam's Town had "significant disruption from roadwork" but still achieved cash flow growth.

Boyd's three downtown Las Vegas casinos grew revenue 5 percent to while cash flow was up 44 percent.

The company has plans to add 20 different nongaming amenities to its properties in eight states. Smith said a large portion of the concepts will be directed to its Las Vegas resorts. For example, next week, a new bar is opening at the Fremont.

The Borgata Hotel Casino and Spa in Atlantic City saw revenue increase 5.1 percent and cash flow jump 4.4 percent.

Smith said the cumulative $151 million Atlantic City owes the company in property tax refunds going back to 2009 has not been paid and it's unclear when the company will see the funds.

"We are still waiting to have an active dialogue with the city," Smith said. "There is no clarity on when we will get paid."

Boyd Gaming had total debt of $3.4 billion as if June 30. Shares of Boyd closed at $16.82 on the New York Stock Exchange Thursday, up 10 cents or 0.60 percent.

Related Links
Nevada Online Gambling
Boyd Gaming Gaming Vendor Information
Sam's Town Las Vegas Details
Suncoast Hotel & Casino Details
Borgata Hotel Casino and Spa Details


Copyright GamingWire. All rights reserved.
Featured Vendors
Slot Machines Unlimited
Oklahoma Indian Gaming Association (OIGA) Conference
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Kallop
House Tech Ads
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
House Tech Ads
Drive quality casino-gambling traffic to your brand from over 70 countries from our premium assets!
Rymax Marketing Services, Inc.
Talisman Group Creators of EZ Baccarat
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Top One Tech Limited
Casino Schedule Ease
Top One Tech Limited
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
AmericanChecked
Casino Network
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Shenzhen ZhengYuanTai Technology Co., Ltd.
Sunkist Graphics, Inc.
Shenzhen ZhengYuanTai Technology Co., Ltd.
14 years Experienced Gaming Display Manufacture: Open Frame monitor, Curved Monitor, Halo Monitor
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Regulatory Management Counselors, PC
Dable Advisory & Consulting Services
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
Texas Slots & Gaming
Casino City Press
Texas Slots & Gaming
Wholesale gaming reimagined. Texas Slots & Gaming is your sustainable gaming partner.
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
GamblersPick
Imagine This
GamblersPick
Share & Read other players' reviews! A top player community-driven portal for online casinos.
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
OCR - Online Casino Reports
TribalHub
OCR - Online Casino Reports
Delivers highly targeted casino traffic from over 70 countries! Get your casino listed today at OCR!
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas


Your Guide to 14,906 Gaming Industry Suppliers