Supplier News
US – Boyd Gaming third quarter revenues down slightly
By Phil - 2 November 2016
Locals operator Boyd Gaming has reported third-quarter 2016 net revenues of $531.9m, compared to $546.3m in the year-ago quarter.
The company’s Las Vegas Locals segment, third-quarter 2016 net revenues were $148.9m, up slightly from $148m in the year-ago quarter whilst the Downtown Las Vegas segment reported net revenues of $56.6m while Adjusted EBITDA was $10m, both essentially even with the year-ago period.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “Our Nevada operations continued their strong performance in the third quarter, as our Las Vegas Locals segment delivered double-digit EBITDA growth for the fifth time in the last six quarters. The Downtown Las Vegas market remains strong as visitation continues to grow. Despite the impact of construction disruption at the California related to various renovation projects, results for the segment were near record levels.”
As a result of the refinancing completed during the third quarter of 2016, the Company has combined its Midwest and South and Peninsula segments into a single reportable Midwest and South segment.
In this segment, net revenues were $326.4m, compared to $341.6min the third quarter of 2015. Results reflect declines at IP and Par-A-Dice, which continue to be challenged by increased competition in their markets, as well as the impact of flooding in southern Louisiana in August. The remainder of the segment’s properties generally performed in-line with the company’s expectations.
“Outside of Nevada, results were primarily impacted by continued softness at IP and Par-A-Dice, while the remainder of our regional operations generally performed in-line with our expectations,” Mr. Smith continued. “Looking ahead, the acquisition of Aliante positions us well for future growth, as we expand our presence in our top-performing market. We also continued to strengthen our financial foundation with the completion of a major refinancing, simplifying the Company’s capital structure and significantly reducing interest expense.”
The company’s third quarter results were favourably impacted by $190.4m of noncash income tax benefits resulting from the release of a previously recorded deferred tax asset valuation allowance. Third-quarter 2016 results were also impacted by pretax losses of $41m related to the early extinguishments and modification of debt during the quarter. Discontinued operations for third quarter 2016 included a $181.7m after-tax gain from the previously announced sale of the company’s 50 per cent equity interest in the parent company of Borgata Hotel Casino & Spa, which was completed on August 1, 2016.
