Boyd swings to profit despite flat local results
24 April 2012
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Boyd Gaming Corp. of Las Vegas said Tuesday it earned a profit in the first quarter despite continued difficulties in the Las Vegas market.
Boyd earned $5.8 million, or 7 cents per share, in the quarter, reversing a loss in the year-ago quarter of $3.5 million, or 4 cents per share.
Net revenue grew 12.1 percent to $633.1 million, thanks in part to the October acquisition of IP Casino Resort Spa, in Biloxi, Miss.
Boyd on Tuesday said its results were led by strong performances outside of Nevada from properties such as the IP and the half-owned Borgata resort in Atlantic City.
In the Las Vegas locals market, a segment hit by foreclosures and high unemployment, Boyd said its net revenue of $154.8 million was up just slightly from the year-ago quarter’s $154.5 million.
But a key profitability measure known as EBITDA declined 2.9 percent to $38.5 million for the Las Vegas properties because of higher marketing costs and a decrease in win from gamblers on some of the company's table games. EBITDA means earnings before interest, taxes, depreciation and amortization.
The local market, which includes such properties as Sam's Town and the Orleans, has been marked by intense promotional activity from competitor Station Casinos LLC.
In the downtown Las Vegas market, which includes such properties as Main Street Station and the California, Boyd's net revenue was up 2.4 percent to $57 million. EBITDA fell 6.4 percent to $8.4 million because of higher fuel costs for Boyd’s charter airline business that transports customers from Hawaii to Las Vegas.
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