Boyd Gaming chief says company ‘moving in the right direction’
Las Vegas-based Boyd Gaming, which operates locals properties the Orleans, Gold Coast, Suncoast and Sam’s Town, downtown’s Main Street Station, California and Fremont and a total of 22 casinos in eight states, reported its second-quarter earnings Tuesday.
Company: Boyd Gaming Corp. (NYSE: BYD)
Revenue: $738.7 million (up 40.7 percent from second quarter of 2012). Higher revenue was attributed to the company’s acquisition of Peninsula Gaming in November.
Earnings: $11.6 million (up 1,090 percent from second quarter of 2012). The big percentage jump in earnings resulted from gains in the sale of Dania Jai-Alai in Florida and adjustments from discontinued operations. On an adjusted basis, the company lost $128,000 and broke even per share.
Earnings per share: 13 cents (up 1,200 percent from second quarter of 2012)
Quote: “Operating efficiencies and effective marketing programs drove solid growth across our Las Vegas properties. And Borgata posted year-over-year gains as well, after factoring out the impact of a tax charge. Our company is moving in the right direction, and I am optimistic about the outlook for our business.” — Boyd President and CEO Keith Smith
What it means: Boyd showed slight revenue increases in its locals and downtown Las Vegas properties, while cash flow improved in the locals properties by 12.1 percent from a year ago and was up for a second straight quarter. The company said new slot marketing initiatives drove locals revenue.
For downtown Las Vegas, cash flow grew by 14.7 percent as the company benefited from increased visitor volume to Fremont Street. The company also rolled out a new marketing initiative to its Hawaiian customers.
Revenue was off for the company’s Midwest and South properties and at the Borgata in Atlantic City. Boyd has a 50 percent interest in the Borgata.
The newly acquired Peninsula Gaming properties — five operations in Iowa, Kansas and Louisiana — contributed revenue of $138.5 million.Smith said the Borgata brand should help the company in its efforts to offer online poker in New Jersey. "We have the right strategy, we have the right assets, and we have the right team," Smith said in the company's earnings conference call.