Exhibit 99.1
Financial Contact:
Josh Hirsberg
(702) 792-7234
joshhirsberg@boydgaming.com
Media Contact:
David Strow
(702) 792-7386
davidstrow@boydgaming.com
BOYD GAMING REPORTS FOURTH-QUARTER, FULL-YEAR RESULTS;
ANNOUNCES AGREEMENT TO SELL ECHELON SITE
LAS VEGAS - MARCH 4, 2013 - Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2012.
The Company also announced that it has entered into a definitive agreement to sell the Echelon site on the Las Vegas Strip to the Genting Group for $350 million in cash.
The sale agreement includes both the 87-acre land parcel as well as all improvements to the site. Subject to the terms of the definitive purchase agreement and satisfaction of various conditions, the transaction is expected to close today. A portion of the proceeds will be paid to a third party to fulfill the Company's obligations to LVE Energy Partners, LLC. Following this payment and other closing costs, Boyd Gaming expects to receive approximately $157 million in net proceeds from the transaction.
Based on the Company's decision not to proceed with development of the Echelon site, Boyd Gaming recorded a one-time, non-cash pretax impairment charge of approximately $994 million, which is reflected in the Company's fourth-quarter 2012 results.
“Our highest priority is strengthening our balance sheet. The sale of the Echelon site is another important step in the ongoing effort to improve our long-term financial position,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming. “While we remain committed to the Las Vegas market, we determined that developing a large-scale project on the Las Vegas Strip was not consistent with our current strategy.”
Fourth-Quarter Results
For the fourth quarter of 2012, Boyd Gaming reported net revenues of $625.8 million, an increase of 3.2% from $606.7 million during the same quarter in 2011. Total Adjusted EBITDA(1) was $100.9 million, compared to $114.3 million in the year-ago quarter. Results reflect the addition of the operations of Peninsula Gaming, LLC, acquired by the Company on November 20, 2012.
Boyd Gaming's wholly-owned business reported fourth-quarter 2012 net revenues of $477.1 million, up 11.2% from the year-ago period. Wholly-owned Adjusted EBITDA was $86.8 million, an increase of 13.7% from the fourth quarter of 2011. Borgata, the Company's 50% joint venture, reported fourth-quarter 2012 net revenues of $147.6 million, compared to $176.4 million in the year-ago period, while Adjusted EBITDA was $14.0 million, down from the $37.9 million reported in the fourth quarter of 2011.
Adjusted Earnings(1) for the fourth quarter 2012 were a loss of $27.7 million, or $0.31 per share, compared to a loss of $2.9 million, or $0.03 per share, for the same period in 2011. The calculations of Adjusted Earnings and Adjusted Earnings per share are presented in a table at the end of this press release.
Significant items excluded from Adjusted Earnings in the fourth quarter 2012 include the $993.9 million impairment charge associated with the Echelon site; $39.4 million of impairment charges associated with the Company's excess land holdings in North Las Vegas and Pennsylvania; and a $17.5 million impairment charge associated with the Company's gaming license in Shreveport, La.
Including these items, for the fourth quarter 2012 the Company reported a net loss of $899.9 million, or $10.24 per share, compared to a net loss of $0.5 million, or $0.01 per share, in the same period last year.
Commenting on the quarter, Keith Smith said, “We continued to make significant progress executing our Company's strategic plan. The completion of the Peninsula acquisition further diversifies our operations, and will strengthen our balance sheet by greatly expanding our free cash flow. We were also encouraged to see sequential improvement throughout the quarter in our Las Vegas Locals business, as our initiatives in this market began to pay off. We remain focused on improving our core business, successfully
integrating the Peninsula assets, and finding new ways to drive revenue and EBITDA growth throughout the business.”
| |
| (1) | See footnotes at the end of the release for additional information relative to non-GAAP financial measures. |
Full-Year 2012 Results
For the year ended December 31, 2012, Boyd Gaming reported net revenues of $2.49 billion, an increase of 6.5% from the year ended December 31, 2011. Total Adjusted EBITDA was $452.1 million during the period, compared to $466.1 million in the full year 2011. Full-year 2012 results include the operations of Peninsula Gaming, acquired by the Company on November 20, 2012; as well as a full year of contributions from the IP Casino Resort Spa in Biloxi, Mississippi, acquired on October 4, 2011.
During the full-year 2012, the Company's wholly-owned operations posted net revenues of $1.80 billion, up 12.2% from the year-ago period. Wholly-owned Adjusted EBITDA increased 8.8% to $335.1 million, compared to $308.0 million in 2011. Borgata reported net revenues of $686.2 million during the year ended December 31, 2012, compared to $730.3 million in the full-year 2011, while property Adjusted EBITDA was $117.0 million in the current period, compared to $158.1 million in the year ended December 31, 2011.
Adjusted Earnings for the Company for the year ended December 31, 2012 reflect a loss of $24.7 million, or $0.28 per share, compared to earnings of $1.1 million, or $0.01 per share, during the full-year 2011.
Including the significant one-time charges recorded in the fourth quarter of 2012, the Company reported a net loss for the year ended December 31, 2012 of $908.9 million, or $10.37 per share. By comparison, the Company reported a net loss of $3.9 million, or $0.04 per share, for the year ended December 31, 2011.
Key Operations Review
Las Vegas Locals
In the Las Vegas Locals segment, fourth-quarter 2012 net revenues were $148.7 million, compared to $152.7 million in the fourth quarter of 2011. Fourth-quarter 2012 Adjusted EBITDA was $31.5 million, down from $36.8 million in the year-ago period. Business levels strengthened at our Locals properties toward the end of the quarter. This was primarily attributable to our introduction of an expanded offering of low-denomination slot product throughout the market, and related marketing programs.
Downtown
The Company's Downtown Las Vegas properties reported net revenues of $57.7 million for the fourth quarter 2012, down from $58.7 million in the year-ago period. Adjusted EBITDA was $9.9 million, compared to $10.8 million in the fourth quarter of 2011. Due to previously announced reductions in our weekly flight schedule, revenues declined at our Hawaiian charter service. EBITDA at our Downtown operations was flat year-over-year prior to the impact of several one-time charges.
Midwest and South
In the Midwest and South region, net revenues were $213.8 million, compared to $217.6 million in the fourth quarter of 2011. Adjusted EBITDA was $34.5 million versus $39.1 million in the year-ago period. Our regional operations were impacted by softness in visitation among casual players.
Peninsula
From November 20 to December 31, 2012, the five Peninsula Gaming properties contributed net revenues of $56.9 million, and Adjusted EBITDA of $21.2 million. The segment reported substantial growth from the prior year when Peninsula was a standalone company, due to a full quarter of contributions from the Kansas Star Casino, which commenced operations on December 20, 2011.
Borgata
Borgata, the Company's 50% joint venture, reported fourth-quarter 2012 net revenues of $147.6 million, compared to $176.4 million in the year-ago period, while Adjusted EBITDA was $14.0 million, down from the $37.9 million reported in the fourth quarter of 2011. Results were impacted by the effects of Superstorm Sandy, including the closure of the property for five days.
Conference Call Information
Boyd Gaming will host its fourth-quarter 2012 conference call today, March 4, at 12:00 p.m. Eastern, on which the Company will provide guidance for the first quarter 2013. The conference call number is (888) 317-6003, passcode 8459751. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.
The conference call will also be available live on the Internet at www.boydgaming.com, or:
http://www.videonewswire.com/event.asp?id=92591
Following the call's completion, a replay will be available by dialing (877) 344-7529 today, March 4, beginning at 2:00 p.m. Eastern and continuing through Tuesday, March 12, at 9 a.m. Eastern. The
conference number for the replay will be 10025828. The replay will also be available on the Internet at www.boydgaming.com.
Footnotes and Safe Harbor Statements
Non-GAAP Financial Measures
Regulation G, "Conditions for Use of Non-GAAP Financial Measures," prescribes the conditions for use of non-GAAP financial information in public disclosures. We believe that our presentations of the following non-GAAP financial measures are important supplemental measures of operating performance to investors: earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings Per Share (Adjusted EPS). The following discussion defines these terms and why we believe they are useful measures of our performance.
EBITDA and Adjusted EBITDA
EBITDA is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with GAAP, gives investors a more complete understanding of operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of our core operating results and as a means to evaluate period-to-period results. We refer to this measure as Adjusted EBITDA. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. We have historically reported this measure to our investors and believe that the continued inclusion of Adjusted EBITDA provides consistency in our financial reporting. We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by management in its financial and operational decision-making. Adjusted EBITDA is among the more significant factors in management's internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA as a measure in the evaluation of potential acquisitions and dispositions. Adjusted EBITDA is also widely used by management in the annual budget process. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company. Adjusted EBITDA reflects EBITDA adjusted for deferred rent, preopening expenses, share-based compensation expense, impairments of assets and other operating charges, net, and our share of Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. In addition, Adjusted EBITDA includes corporate expense. A reconciliation of Adjusted EBITDA to net income (loss), based upon GAAP, is included in the financial schedules accompanying this release.
Adjusted Earnings and Adjusted EPS
Adjusted Earnings is net income (loss) before preopening expenses, acquisition-related expenses, net gains on insurance settlements, impairments of assets, adjustments to property tax accruals, write-downs and other charges, net, accelerated amortization of deferred loan fees, changes in the fair value of derivative instruments, gain on early retirements of debt, other non-recurring adjustments, net, valuation adjustments related to the consolidation of Borgata, and our share of Borgata's preopening expenses and other items and write-downs, net. Adjusted Earnings and Adjusted EPS are presented solely as supplemental disclosures because management believes that they are widely used measures of performance in the gaming industry. A reconciliation of net loss based upon GAAP to Adjusted Earnings and Adjusted EPS are included in the financial schedules accompanying this release.
Limitations on the Use of Non-GAAP Measures
The use of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS or certain other non-GAAP financial measures may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, capital expenditures and other items both in our reconciliations to the GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.
EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial
measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.
Forward Looking Statements and Company Information
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding: the anticipated transactions involving Echelon and pending sale of Dania, the timing for completion of such transactions and the anticipated benefits from such transactions, including strengthen the Company's balance sheet; the benefits of the Peninsula acquisition, including diversifies the Company's operations and significantly strengthening its balance sheet by expanding its free cash flow; and the continued improvement in the Company's Las Vegas Locals business. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: fluctuations in the Company's operating results; recovery of its properties in various markets; the state of the economy and its effect on consumer spending and the Company's results of operations; the timing for economic recovery, its effect on the Company's business and the local economies where the Company's properties are located; the satisfaction to the various conditions to the Company's pending Echelon and Dania transactions, and whether such conditions will be satisfied when expected, if at all; the availability of financing to the purchaser of Dania; the receipt of legislative, and other state, federal and local approvals for the Company's development projects in Florida and other jurisdictions; consumer reaction to fluctuations in the stock market and economic factors; the fact that the Company's expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Boyd Gaming
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 22 gaming entertainment properties located in Nevada, New Jersey, Illinois, Indiana, Iowa, Kansas, Louisiana and Mississippi. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.
BOYD GAMING CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2012 | | 2011 | | 2012 | | 2011 |
| | (in thousands, except per share data) |
| Revenues | | | | | | | |
| Gaming | $ | 542,441 |
| | $ | 517,328 |
| | $ | 2,110,233 |
| | $ | 1,986,644 |
|
| Food and beverage | 99,383 |
| | 102,265 |
| | 417,506 |
| | 388,148 |
|
| Room | 59,314 |
| | 64,328 |
| | 264,903 |
| | 246,209 |
|
| Other | 34,845 |
| | 34,764 |
| | 145,460 |
| | 135,176 |
|
| Gross revenues | 735,983 |
| | 718,685 |
| | 2,938,102 |
| | 2,756,177 |
|
| Less promotional allowances | 110,141 |
| | 112,011 |
| | 450,676 |
| | 419,939 |
|
| Net revenues | 625,842 |
| | 606,674 |
| | 2,487,426 |
| | 2,336,238 |
|
| | | | | | | | |
| Costs and expenses | | | | | | | |
| Gaming | 268,660 |
| | 243,994 |
| | 1,011,064 |
| | 924,451 |
|
| Food and beverage | 50,470 |
| | 51,649 |
| | 219,921 |
| | 200,165 |
|
| Room | 11,860 |
| | 16,190 |
| | 55,531 |
| | 56,111 |
|
| Other | 28,363 |
| | 26,716 |
| | 111,075 |
| | 108,907 |
|
| Selling, general and administrative | 119,607 |
| | 106,119 |
| | 452,926 |
| | 394,991 |
|
| Maintenance and utilities | 38,569 |
| | 38,399 |
| | 155,016 |
| | 153,512 |
|
| Depreciation and amortization | 63,207 |
| | 50,237 |
| | 214,332 |
| | 195,343 |
|
| Corporate expense | 14,522 |
| | 12,393 |
| | 50,719 |
| | 48,962 |
|
| Preopening expenses | 6,053 |
| | 1,342 |
| | 11,541 |
| | 6,634 |
|
| Impairments of assets | 1,053,526 |
| | 1,741 |
| | 1,053,526 |
| | 6,741 |
|
| Other operating charges, net | 9,049 |
| | 3,048 |
| | 6,650 |
| | 7,317 |
|
| Total costs and expenses | 1,663,886 |
| | 551,828 |
| | 3,342,301 |
| | 2,103,134 |
|
| Operating income | (1,038,044 | ) | | 54,846 |
| | (854,875 | ) | | 233,104 |
|
| | | | | | | | |
| Other expense (income) | | | | | | | |
| Interest income | (485 | ) | | (6 | ) | | (1,169 | ) | | (46 | ) |
| Interest expense, net of amounts capitalized | 87,273 |
| | 66,663 |
| | 290,004 |
| | 250,731 |
|
| Other, net | 137 |
| | (10,534 | ) | | 137 |
| | (11,303 | ) |
| Total other expense, net | 86,925 |
| | 56,123 |
| | 288,972 |
| | 239,382 |
|
| | | | | | | | |
| Loss before income taxes | (1,124,969 | ) | | (1,277 | ) | | (1,143,847 | ) | | (6,278 | ) |
| Income taxes | 213,192 |
| | (1,749 | ) | | 220,772 |
| | (1,721 | ) |
| Net loss | (911,777 | ) | | (3,026 | ) | | (923,075 | ) | | (7,999 | ) |
| Net loss attributable to noncontrolling interest | 11,879 |
| | 2,535 |
| | 14,210 |
| | 4,145 |
|
| Net loss attributable to Boyd Gaming Corporation | $ | (899,898 | ) | | $ | (491 | ) | | $ | (908,865 | ) | | $ | (3,854 | ) |
| | | | | | | | |
| Basic net income (loss) per common share | $ | (10.24 | ) | | $ | (0.01 | ) | | $ | (10.37 | ) | | $ | (0.04 | ) |
| | | | | | | | |
| Weighted average basic shares outstanding | 87,846 |
| | 87,732 |
| | 87,652 |
| | 87,263 |
|
| | | | | | | | |
| Diluted net income (loss) per common share | $ | (10.24 | ) | | $ | (0.01 | ) | | $ | (10.37 | ) | | $ | (0.04 | ) |
| | | | | | | | |
| Weighted average diluted shares outstanding | 87,846 |
| | 87,732 |
| | 87,652 |
| | 87,263 |
|
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Reconciliation of Adjusted EBITDA to Operating Income (Loss)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | December 31, | | December 31, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
| | | (in thousands) |
| Net Revenues by Reportable Segment | | | | | | | | |
| Las Vegas Locals | | $ | 148,743 |
| | $ | 152,696 |
| | $ | 591,306 |
| | $ | 604,965 |
|
| Downtown Las Vegas | | 57,684 |
| | 58,671 |
| | 224,178 |
| | 224,250 |
|
Midwest and South (1) | | 213,773 |
| | 217,567 |
| | 924,188 |
| | 771,355 |
|
Peninsula Gaming (2) | | 56,925 |
| | — |
| | 56,925 |
| | — |
|
| Atlantic City | | 147,565 |
| | 176,410 |
| | 686,222 |
| | 730,274 |
|
| Reportable Segment Net revenues | | 624,690 |
| | 605,344 |
| | 2,482,819 |
| | 2,330,844 |
|
| Other | | 1,152 |
| | 1,330 |
| | 4,607 |
| | 5,394 |
|
| Net revenues | | $ | 625,842 |
| | $ | 606,674 |
| | $ | 2,487,426 |
| | $ | 2,336,238 |
|
| | | | | | | | | |
| Adjusted EBITDA by Reportable Segment | | | | | | | | |
| Las Vegas Locals | | $ | 31,450 |
| | $ | 36,842 |
| | $ | 128,742 |
| | $ | 145,848 |
|
| Downtown Las Vegas | | 9,935 |
| | 10,839 |
| | 32,832 |
| | 35,214 |
|
Midwest and South (1) | | 34,508 |
| | 39,090 |
| | 192,349 |
| | 167,101 |
|
Peninsula Gaming (2) | | 21,152 |
| | — |
| | 21,152 |
| | — |
|
| Wholly owned property Adjusted EBITDA | | 97,045 |
| | 86,771 |
| | 375,075 |
| | 348,163 |
|
Corporate expense (3) | | (10,198 | ) | | (10,363 | ) | | (39,954 | ) | | (40,189 | ) |
| Wholly owned Adjusted EBITDA | | 86,847 |
| | 76,408 |
| | 335,121 |
| | 307,974 |
|
| Atlantic City | | 14,010 |
| | 37,860 |
| | 116,976 |
| | 158,126 |
|
| Adjusted EBITDA | | 100,857 |
| | 114,268 |
| | 452,097 |
| | 466,100 |
|
| | | | | | | | | |
| Other operating costs and expenses | | | | | | | | |
| Deferred rent | | 996 |
| | 1,034 |
| | 3,984 |
| | 4,136 |
|
| Depreciation and amortization | | 63,207 |
| | 50,237 |
| | 214,332 |
| | 195,343 |
|
| Preopening expenses | | 6,053 |
| | 1,342 |
| | 11,541 |
| | 6,634 |
|
| Share-based compensation expense | | 4,687 |
| | 2,257 |
| | 12,247 |
| | 9,997 |
|
| Impairments of assets | | 1,053,526 |
| | 1,741 |
| | 1,053,526 |
| | 6,741 |
|
| Other operating charges, net | | 10,432 |
| | 2,811 |
| | 11,342 |
| | 10,145 |
|
| Total other operating costs and expenses | | 1,138,901 |
| | 59,422 |
| | 1,306,972 |
| | 232,996 |
|
| Operating income (loss) | | (1,038,044 | ) | | 54,846 |
| | (854,875 | ) | | 233,104 |
|
| Other non-operating items | | | | | | | | |
| Interest expense, net | | 86,788 |
| | 66,657 |
| | 288,835 |
| | 250,685 |
|
| Other, net | | 137 |
| | (10,534 | ) | | 137 |
| | (11,303 | ) |
| Total other non-operating items, net | | 86,925 |
| | 56,123 |
| | 288,972 |
| | 239,382 |
|
| Loss before income taxes | | (1,124,969 | ) | | (1,277 | ) | | (1,143,847 | ) | | (6,278 | ) |
| Income taxes | | 213,192 |
| | (1,749 | ) | | 220,772 |
| | (1,721 | ) |
| Net loss | | (911,777 | ) | | (3,026 | ) | | (923,075 | ) | | (7,999 | ) |
| Net loss attributable to noncontrolling interest | | 11,879 |
| | 2,535 |
| | 14,210 |
| | 4,145 |
|
| Net loss attributable to Boyd Gaming Corporation | | $ | (899,898 | ) | | $ | (491 | ) | | $ | (908,865 | ) | | $ | (3,854 | ) |
(1) IP provided $44.6 million in net revenues and $8.4 million in Adjusted EBITDA, which is reported in the three months and year ended December 31, 2011.
(2) Results of Peninsula Gaming are included from the November 20, 2012, date of acquisition.
(3) Reconciliation of corporate expense:
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | December 31, | | December 31, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
| | | (in thousands) |
| Corporate expense as reported on Condensed Consolidated | | | | | | | | |
| Statements of operations | | $ | 14,522 |
| | $ | 12,393 |
| | $ | 50,719 |
| | $ | 48,962 |
|
| Corporate share-based compensation expense | | (4,324 | ) | | (2,030 | ) | | (10,765 | ) | | (8,773 | ) |
| Corporate expense as reported on the above table | | $ | 10,198 |
| | $ | 10,363 |
| | $ | 39,954 |
| | $ | 40,189 |
|
| | | | | | | | | |
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Reconciliation of Net Loss to Adjusted Earnings (Loss) and Net Loss Per Share to Adjusted Earnings (Loss) Per Share
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2012 | | 2011 | | 2012 | | 2011 |
| | (in thousands, except per share data) |
| Net income (loss) attributable to Boyd Gaming Corporation | $ | (899,898 | ) | | $ | (491 | ) | | $ | (908,865 | ) | | $ | (3,854 | ) |
| Pretax adjustments related to Boyd Gaming: | | | | | | | |
| Preopening expenses, excluding impact of LVE | 8,776 |
| | 3,929 |
| | 22,196 |
| | 17,264 |
|
| Acquisition-related expenses | 11,734 |
| | (2,244 | ) | | 18,651 |
| | — |
|
| Gain on insurance settlement, net of flood expense | (1,007 | ) | | (144 | ) | | (7,098 | ) | | 1,428 |
|
| Impairments of assets | 1,050,715 |
| | — |
| | 1,050,715 |
| | — |
|
| Miscellaneous non-recurring adjustments, net | 113 |
| | (1,240 | ) | | 699 |
| | — |
|
| Adjustments to property tax accruals, net | — |
| | — |
| | (1,255 | ) | | (7,464 | ) |
| Interest on acquisition financing | 4,163 |
| | — |
| | 7,777 |
| | — |
|
| Write-downs and other items, net | 900 |
| | 7,804 |
| | 900 |
| | 6,232 |
|
| Accelerated amortization of deferred loan fees | — |
| | 376 |
| | — |
| | 376 |
|
| Change in fair value of derivative instruments | — |
| | — |
| | — |
| | 265 |
|
| (Gain) loss on early retirements of debt, net | — |
| | — |
| | — |
| | 20 |
|
| Other income | 137 |
| | (10,582 | ) | | 137 |
| | (11,582 | ) |
| | | | | | | | |
| Pretax adjustments related to Borgata: | | | | | | | |
| Preopening expenses | — |
| | 137 |
| | 240 |
| | 228 |
|
| Impairments of assets | 2,811 |
| | 1,741 |
| | 2,811 |
| | 6,741 |
|
| Write-downs and other items, net | (2,692 | ) | | (951 | ) | | (6,503 | ) | | (166 | ) |
| Accelerated amortization of deferred loan fees | — |
| | 707 |
| | — |
| | 1,029 |
|
| Valuation adjustments related to consolidation, net | (137 | ) | | 389 |
| | 295 |
| | 389 |
|
| (Gain) loss on early retirements of debt | — |
| | 48 |
| | — |
| | (6 | ) |
| Total adjustments | 1,075,513 |
| | (30 | ) | | 1,089,565 |
| | 14,754 |
|
| | | | | | | | |
| Income tax effect for above adjustments | (203,283 | ) | | (1,316 | ) | | (207,020 | ) | | (5,648 | ) |
| Impact on noncontrolling interest, net | 9 |
| | (1,035 | ) | | 1,579 |
| | (4,108 | ) |
| Adjusted earnings (loss) | $ | (27,659 | ) | | $ | (2,872 | ) | | $ | (24,741 | ) | | $ | 1,144 |
|
| | | | | | | | |
| | | | | | | | |
| Net income (loss) per share | $ | (10.24 | ) | | $ | (0.01 | ) | | $ | (10.37 | ) | | $ | (0.04 | ) |
| Pretax adjustments related to Boyd Gaming: | | | | | | | |
| Preopening expenses, excluding impact of LVE | 0.10 |
| | 0.04 |
| | 0.25 |
| | 0.20 |
|
| Acquisition-related expenses | 0.13 |
| | (0.03 | ) | | 0.21 |
| | — |
|
| Gain on insurance settlement, net of flood expense | (0.01 | ) | | — |
| | (0.08 | ) | | 0.02 |
|
| Impairments of assets | 11.96 |
| | — |
| | 11.99 |
| | — |
|
| Miscellaneous non-recurring adjustments, net | — |
| | — |
| | 0.01 |
| | — |
|
| Adjustments to property tax accruals, net | — |
| | — |
| | (0.01 | ) | | (0.09 | ) |
| Interest on acquisition financing | 0.05 |
| | — |
| | 0.09 |
| | — |
|
| Write-downs and other items, net | 0.01 |
| | 0.09 |
| | 0.01 |
| | 0.07 |
|
| Accelerated amortization of deferred loan fees | — |
| | — |
| | — |
| | — |
|
| Change in fair value of derivative instruments | — |
| | — |
| | — |
| | — |
|
| (Gain) loss on early retirements of debt, net | — |
| | — |
| | — |
| | — |
|
| Other income | — |
| | (0.11 | ) | | — |
| | (0.13 | ) |
| | | | | | | | |
| Pretax adjustments related to Borgata: | | | | | | | |
| Preopening expenses | — |
| | — |
| | — |
| | — |
|
| Impairment of assets | 0.03 |
| | 0.02 |
| | 0.03 |
| | 0.08 |
|
| Write-downs and other items, net | (0.03 | ) | | (0.01 | ) | | (0.07 | ) | | — |
|
| Accelerated amortization of deferred loan fees | — |
| | 0.01 |
| | — |
| | 0.01 |
|
| Valuation adjustments related to consolidation, net | — |
| | — |
| | — |
| | — |
|
| (Gain) loss on early retirements of debt | — |
| | — |
| | — |
| | — |
|
| Total adjustments | 12.24 |
| | 0.01 |
| | 12.43 |
| | 0.16 |
|
| | | | | | | | |
| Income tax effect for above adjustments | (2.31 | ) | | (0.02 | ) | | (2.36 | ) | | (0.06 | ) |
| Impact on noncontrolling interest, net | — |
| | (0.01 | ) | | 0.02 |
| | (0.05 | ) |
| Adjusted earnings (loss) per share | $ | (0.31 | ) | | $ | (0.03 | ) | | $ | (0.28 | ) | | $ | 0.01 |
|
| | | | | | | | |
| Weighted average shares outstanding | 87,846 |
| | 87,732 |
| | 87,652 |
| | 87,594 |
|
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statement of Operations
Three Months Ended December 31, 2012
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Boyd Gaming Wholly Owned | | | | | | | | |
| | | | Excluding | | | | | | | | | | | | | | |
| | | | Peninsula | | Peninsula | | | | | | | | LVE (Variable | | | | Boyd Gaming |
| | | | Gaming | | Gaming (1) | | Eliminations | | Total | | Borgata (2) | | Interest Entity) | | Eliminations | | Consolidated |
| | | | (in thousands, except per share data) |
| Revenues | | | | | | | | | | | | | | | | |
| | Gaming | | $ | 350,157 |
| | $ | 53,442 |
| | $ | — |
| | $ | 403,599 |
| | $ | 138,842 |
| | $ | — |
| | $ | — |
| | $ | 542,441 |
|
| | Food and beverage | | 67,354 |
| | 3,988 |
| | — |
| | 71,342 |
| | 28,041 |
| | — |
| | — |
| | 99,383 |
|
| | Room | | 35,857 |
| | — |
| | — |
| | 35,857 |
| | 23,457 |
| | — |
| | — |
| | 59,314 |
|
| | Other | | 27,370 |
| | 1,687 |
| | (2,181 | ) | | 26,876 |
| | 7,969 |
| | 2,724 |
| | (2,724 | ) | | 34,845 |
|
| Gross revenues | | 480,738 |
| | 59,117 |
| | (2,181 | ) | | 537,674 |
| | 198,309 |
| | 2,724 |
| | (2,724 | ) | | 735,983 |
|
| Less promotional allowances | | 57,205 |
| | 2,192 |
| | — |
| | 59,397 |
| | 50,744 |
| | — |
| | — |
| | 110,141 |
|
| | Net revenues | | 423,533 |
| | 56,925 |
| | (2,181 | ) | | 478,277 |
| | 147,565 |
| | 2,724 |
| | (2,724 | ) | | 625,842 |
|
| | | | | | | | | | | | | | | | | | |
| Costs and expenses | | | | | | | | | | | | | | | | |
| | Gaming | | 184,386 |
| | 24,565 |
| | — |
| | 208,951 |
| | 59,709 |
| | — |
| | — |
| | 268,660 |
|
| | Food and beverage | | 32,564 |
| | 2,855 |
| | — |
| | 35,419 |
| | 15,051 |
| | — |
| | — |
| | 50,470 |
|
| | Room | | 9,313 |
| | — |
| | — |
| | 9,313 |
| | 2,547 |
| | — |
| | — |
| | 11,860 |
|
| | Other | | 20,906 |
| | 3,271 |
| | (2,181 | ) | | 21,996 |
| | 6,367 |
| | — |
| | — |
| | 28,363 |
|
| | Selling, general and administrative | | 78,216 |
| | 5,250 |
| | — |
| | 83,466 |
| | 36,100 |
| | 41 |
| | — |
| | 119,607 |
|
| | Maintenance and utilities | | 22,776 |
| | 2,015 |
| | — |
| | 24,791 |
| | 13,778 |
| | — |
| | — |
| | 38,569 |
|
| | Depreciation and amortization | | 33,069 |
| | 13,327 |
| | — |
| | 46,396 |
| | 16,811 |
| | — |
| | — |
| | 63,207 |
|
| | Corporate expense | | 14,147 |
| | 375 |
| | — |
| | 14,522 |
| | — |
| | — |
| | — |
| | 14,522 |
|
| | Preopening expenses | | 8,238 |
| | 538 |
| | — |
| | 8,776 |
| | 1 |
| | — |
| | (2,724 | ) | | 6,053 |
|
| | Impairments of assets | | 1,050,715 |
| | — |
| | — |
| | 1,050,715 |
| | 2,811 |
| | — |
| | — |
| | 1,053,526 |
|
| | Other operating charges, net | | 11,741 |
| | — |
| | — |
| | 11,741 |
| | (2,692 | ) | | — |
| | — |
| | 9,049 |
|
| | Total costs and expenses | | 1,466,071 |
| | 52,196 |
| | (2,181 | ) | | 1,516,086 |
| | 150,483 |
| | 41 |
| | (2,724 | ) | | 1,663,886 |
|
| | | | | | | | | | | | | | | | | | |
| Operating income from Borgata | | 1,461 |
| | — |
| | — |
| | 1,461 |
| | — |
| | — |
| | (1,461 | ) | | — |
|
| | | | | | | | | | | | | | | | | | |
| Operating income (loss) | | (1,043,999 | ) | | 4,729 |
| | — |
| | (1,039,270 | ) | | (2,918 | ) | | 2,683 |
| | 1,461 |
| | (1,038,044 | ) |
| | | | | | | | | | | | | | | | | | |
| Other expense (income) | | | | | | | | | | | | | | | | |
| | Interest income | | (238 | ) | | (247 | ) | | — |
| | (485 | ) | | — |
| | — |
| | — |
| | (485 | ) |
| | Interest expense, net of amounts | | 52,891 |
| | 10,065 |
| | — |
| | 62,956 |
| | 21,017 |
| | 3,300 |
| | — |
| | 87,273 |
|
| | capitalized | | | | | | | | |
| | Other income | | — |
| | 137 |
| | — |
| | 137 |
| | — |
| | — |
| | — |
| | 137 |
|
| | Other non-operating expenses from | | 9,800 |
| | — |
| | — |
| | 9,800 |
| | — |
| | — |
| | (9,800 | ) | | — |
|
| | Borgata, net | | | | | | | | |
| | Total other expense, net | | 62,453 |
| | 9,955 |
| | — |
| | 72,408 |
| | 21,017 |
| | 3,300 |
| | (9,800 | ) | | 86,925 |
|
| | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | (1,106,452 | ) | | (5,226 | ) | | — |
| | (1,111,678 | ) | | (23,935 | ) | | (617 | ) | | 11,261 |
| | (1,124,969 | ) |
| Income taxes | | 211,778 |
| | — |
| | — |
| | 211,780 |
| | 1,412 |
| | — |
| | — |
| | 213,192 |
|
| | | | | | | | | | | | | | | | | | |
| Net income (loss) | | (894,674 | ) | | (5,226 | ) | | — |
| | (899,898 | ) | | (22,523 | ) | | (617 | ) | | 11,261 |
| | (911,777 | ) |
| Net (income) loss attributable to | | — |
| | — |
| | — |
| | — |
| | — |
| | 617 |
| | 11,262 |
| | 11,879 |
|
| noncontrolling interest | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Net income (loss) attributable to | | $ | (894,674 | ) | | $ | (5,226 | ) | | $ | — |
| | $ | (899,898 | ) | | $ | (22,523 | ) | | $ | — |
| | $ | 22,523 |
| | $ | (899,898 | ) |
| Boyd Gaming Corporation | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Basic net loss per common share | | | | | | | | $ | (10.24 | ) | | | | | | | | $ | (10.24 | ) |
| | | | | | | | | |
| | | | | | | |
|
| Weighted average basic shares | | | | | | | | 87,846 |
| | | | | | | | 87,846 |
|
| outstanding | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | |
|
| Diluted net loss per common share | | | | | | | | $ | (10.24 | ) | | | | | | | | $ | (10.24 | ) |
| | | | | | | | | |
| | | | | | | |
|
| Weighted average diluted shares | | | | | | | | 87,846 |
| | | | | | | | 87,846 |
|
| outstanding | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
(1) Results of Peninsula Gaming are included from the November 20, 2012, date of acquisition.
(2) Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down
to Borgata and are therefore not reflected in Borgata's standalone financial statements.
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statement of Operations
Three Months Ended December 31, 2011
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | Boyd Gaming | | | | LVE (Variable | | | | Boyd Gaming |
| | | | Wholly-Owned | | Borgata (1) | | Interest Entity) | | Eliminations | | Consolidated |
| | | | (in thousands, except per share data) |
| Revenues | | | | | | | | | | |
| | Gaming | | $ | 359,618 |
| | $ | 157,710 |
| | $ | — |
| | $ | — |
| | $ | 517,328 |
|
| | Food and beverage | | 67,042 |
| | 35,223 |
| | — |
| | — |
| | 102,265 |
|
| | Room | | 36,968 |
| | 27,360 |
| | — |
| | — |
| | 64,328 |
|
| | Other | | 25,195 |
| | 9,569 |
| | 2,724 |
| | (2,724 | ) | | 34,764 |
|
| Gross revenues | | 488,823 |
| | 229,862 |
| | 2,724 |
| | (2,724 | ) | | 718,685 |
|
| Less promotional allowances | | 58,559 |
| | 53,452 |
| | — |
| | — |
| | 112,011 |
|
| | Net revenues | | 430,264 |
| | 176,410 |
| | 2,724 |
| | (2,724 | ) | | 606,674 |
|
| | | | | | | | | | | | |
| Costs and expenses | | | | | | | | | | |
| | Gaming | | 179,491 |
| | 64,503 |
| | — |
| | — |
| | 243,994 |
|
| | Food and beverage | | 33,706 |
| | 17,943 |
| | — |
| | — |
| | 51,649 |
|
| | Room | | 12,651 |
| | 3,539 |
| | — |
| | — |
| | 16,190 |
|
| | Other | | 19,360 |
| | 7,356 |
| | — |
| | — |
| | 26,716 |
|
| | Selling, general and administrative | | 75,582 |
| | 30,537 |
| | — |
| | — |
| | 106,119 |
|
| | Maintenance and utilities | | 24,677 |
| | 14,672 |
| | (950 | ) | | — |
| | 38,399 |
|
| | Depreciation and amortization | | 35,377 |
| | 14,860 |
| | — |
| | — |
| | 50,237 |
|
| | Corporate expense | | 12,393 |
| | — |
| | — |
| | — |
| | 12,393 |
|
| | Preopening expenses | | 3,929 |
| | 137 |
| | — |
| | (2,724 | ) | | 1,342 |
|
| | Impairments of assets | | 690 |
| | 1,051 |
| | — |
| | — |
| | 1,741 |
|
| | Other operating charges, net | | 3,460 |
| | (412 | ) | | — |
| | — |
| | 3,048 |
|
| | Total costs and expenses | | 401,316 |
| | 154,186 |
| | (950 | ) | | (2,724 | ) | | 551,828 |
|
| | | | | | | | | | | | |
| Operating income from Borgata | | 11,112 |
| | — |
| | — |
| | (11,112 | ) | | — |
|
| | | | | | | | | | | | |
| Operating income | | 40,060 |
| | 22,224 |
| | 3,674 |
| | (11,112 | ) | | 54,846 |
|
| | | | | | | | | | | | |
| Other expense (income) | | | | | | | | | | |
| | Interest income | | (6 | ) | | — |
| | — |
| | — |
| | (6 | ) |
| | Interest expense, net of amounts capitalized | | 38,638 |
| | 21,708 |
| | 6,317 |
| | — |
| | 66,663 |
|
| | Other expense (income) | | (10,582 | ) | | 48 |
| | — |
| | — |
| | (10,534 | ) |
| | Other non-operating expenses from Borgata, net | | 11,004 |
| | — |
| | — |
| | (11,004 | ) | | — |
|
| | Total other expense, net | | 39,054 |
| | 21,756 |
| | 6,317 |
| | (11,004 | ) | | 56,123 |
|
| | | | | | | | | | | | |
| Income (loss) before income taxes | | 1,006 |
| | 468 |
| | (2,643 | ) | | (108 | ) | | (1,277 | ) |
| Income taxes | | (1,497 | ) | | (252 | ) | | — |
| | — |
| | (1,749 | ) |
| | | | | | | | | | | | |
| Net income (loss) | | (491 | ) | | 216 |
| | (2,643 | ) | | (108 | ) | | (3,026 | ) |
| Net income attributable to noncontrolling interest | | — |
| | — |
| | 2,643 |
| | (108 | ) | | 2,535 |
|
| | | | | | | | | | | | |
| Net income (loss) attributable to Boyd Gaming Corporation | | $ | (491 | ) | | $ | 216 |
| | $ | — |
| | $ | (216 | ) | | $ | (491 | ) |
| | | | | | | | | | | | |
| Basic net loss per common share | | $ | (0.01 | ) | | | | | | | | $ | (0.01 | ) |
| | | |
| | | | | | | | |
| Weighted average basic shares outstanding | | 87,732 |
| | | | | | | | 87,732 |
|
| | | |
| | | | | | | | |
| Diluted net loss per common share | | $ | (0.01 | ) | | | | | | | | $ | (0.01 | ) |
| | | |
| | | | | | | | |
| Weighted average diluted shares outstanding | | 87,732 |
| | | | | | | | 87,732 |
|
(1) Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down
to Borgata and are therefore not reflected in Borgata's standalone financial statements.
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statement of Operations
Year Ended December 31, 2012
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Boyd Gaming Wholly Owned | | | | | | | | |
| | | | Excluding | | | | | | | | | | | | | | |
| | | | Peninsula | | Peninsula | | | | | | | | LVE (Variable | | | | Boyd Gaming |
| | | | Gaming | | Gaming (1) | | Eliminations | | Total | | Borgata (2) | | Interest Entity) | | Eliminations | | Consolidated |
| | | | (in thousands, except per share data) |
| Revenues | | | | | | | | | | | | | | | | |
| | Gaming | | $ | 1,447,664 |
| | $ | 53,442 |
| | $ | — |
| | $ | 1,501,106 |
| | $ | 609,127 |
| | $ | — |
| | $ | — |
| | $ | 2,110,233 |
|
| | Food and beverage | | 273,127 |
| | 3,988 |
| | — |
| | 277,115 |
| | 140,391 |
| | — |
| | — |
| | 417,506 |
|
| | Room | | 150,398 |
| | — |
| | — |
| | 150,398 |
| | 114,505 |
| | — |
| | — |
| | 264,903 |
|
| | Other | | 106,438 |
| | 1,687 |
| | (2,181 | ) | | 105,944 |
| | 39,516 |
| | 10,896 |
| | (10,896 | ) | | 145,460 |
|
| Gross revenues | | 1,977,627 |
| | 59,117 |
| | (2,181 | ) | | 2,034,563 |
| | 903,539 |
| | 10,896 |
| | (10,896 | ) | | 2,938,102 |
|
| Less promotional allowances | | 231,166 |
| | 2,192 |
| | — |
| | 233,359 |
| | 217,317 |
| | — |
| | — |
| | 450,676 |
|
| | Net revenues | | 1,746,461 |
| | 56,925 |
| | (2,181 | ) | | 1,801,204 |
| | 686,222 |
| | 10,896 |
| | (10,896 | ) | | 2,487,426 |
|
| | | | | | | | | | | | | | | | | | |
| Costs and expenses | | | | | | | | | | | | | | | | |
| | Gaming | | 731,565 |
| | 24,565 |
| | — |
| | 756,130 |
| | 254,934 |
| | — |
| | — |
| | 1,011,064 |
|
| | Food and beverage | | 145,482 |
| | 2,855 |
| | — |
| | 148,337 |
| | 71,584 |
| | — |
| | — |
| | 219,921 |
|
| | Room | | 42,040 |
| | — |
| | — |
| | 42,040 |
| | 13,491 |
| | — |
| | — |
| | 55,531 |
|
| | Other | | 78,273 |
| | 3,271 |
| | (2,181 | ) | | 79,363 |
| | 31,712 |
| | — |
| | — |
| | 111,075 |
|
| | Selling, general and administrative | | 308,522 |
| | 5,250 |
| | — |
| | 313,772 |
| | 139,100 |
| | 54 |
| | — |
| | 452,926 |
|
| | Maintenance and utilities | | 94,579 |
| | 2,015 |
| | — |
| | 96,594 |
| | 58,422 |
| | — |
| | — |
| | 155,016 |
|
| | Depreciation and amortization | | 136,742 |
| | 13,327 |
| | — |
| | 150,069 |
| | 64,263 |
| | — |
| | — |
| | 214,332 |
|
| | Corporate expense | | 50,344 |
| | 375 |
| | — |
| | 50,719 |
| | — |
| | — |
| | — |
| | 50,719 |
|
| | Preopening expenses | | 21,658 |
| | 538 |
| | — |
| | 22,196 |
| | 241 |
| | — |
| | (10,896 | ) | | 11,541 |
|
| | Impairments of assets | | 1,050,715 |
| | — |
| | — |
| | 1,050,715 |
| | 2,811 |
| | — |
| | — |
| | 1,053,526 |
|
| | Other operating charges, net | | 13,153 |
| | — |
| | — |
| | 13,153 |
| | (6,503 | ) | | — |
| | — |
| | 6,650 |
|
| | Total costs and expenses | | 2,673,073 |
| | 52,196 |
| | (2,181 | ) | | 2,723,088 |
| | 630,055 |
| | 54 |
| | (10,896 | ) | | 3,342,301 |
|
| | | | | | | | | | | | | | | | | | |
| Operating from Borgata | | (28,082 | ) | | — |
| | — |
| | (28,082 | ) | | — |
| | — |
| | 28,082 |
| | — |
|
| | | | | | | | | | | | | | | | | | |
| Operating income (loss) | | (898,530 | ) | | 4,729 |
| | — |
| | (893,802 | ) | | 56,167 |
| | 10,842 |
| | (28,082 | ) | | (854,875 | ) |
| | | | | | | | | | | | | | | | | | |
| Other expense (income) | | | | | | | | | | | | | | | | |
| | Interest income | | (922 | ) | | (247 | ) | | — |
| | (1,169 | ) | | — |
| | — |
| — |
| — |
| | (1,169 | ) |
| | Interest expense, net of amounts | | 184,714 |
| | 10,065 |
| | — |
| | 194,779 |
| | 82,902 |
| | 12,323 |
| | — |
| | 290,004 |
|
| | capitalized | |
| | Other income | | — |
| | 137 |
| | — |
| | 137 |
| | — |
| | — |
| | — |
| | 137 |
|
| | Other non-operating expenses from | | 40,810 |
| | — |
| | — |
| | 40,810 |
| | — |
| | — |
| | (40,810 | ) | | — |
|
| | Borgata, net | | | | | | | | |
| | Total other expense, net | | 224,602 |
| | 9,955 |
| | — |
| | 234,557 |
| | 82,902 |
| | 12,323 |
| | (40,810 | ) | | 288,972 |
|
| | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | (1,123,132 | ) | | (5,226 | ) | | — |
| | (1,128,359 | ) | | (26,735 | ) | | (1,481 | ) | | 12,728 |
| | (1,143,847 | ) |
| Income taxes | | 219,493 |
| | — |
| | — |
| | 219,493 |
| | 1,279 |
| | — |
| | — |
| | 220,772 |
|
| | | | | | | | | | | | | | | | | | |
| Net income (loss) | | (903,639 | ) | | (5,226 | ) | | — |
| | (908,865 | ) | | (25,456 | ) | | (1,482 | ) | | 12,728 |
| | (923,075 | ) |
| Net (income) loss attributable to | | — |
| | — |
| | — |
| | — |
| | — |
| | 1,482 |
| | 12,728 |
| | 14,210 |
|
| noncontrolling interest | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) attributable to | | $ | (903,639 | ) | | $ | (5,226 | ) | | $ | — |
| | $ | (908,865 | ) | | $ | (25,456 | ) | | $ | — |
| | $ | 25,456 |
| | $ | (908,865 | ) |
| Boyd Gaming Corporation | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Basic net loss per common share | | | | | | | | $ | (10.37 | ) | | | | | | | | $ | (10.37 | ) |
| | | | | | | | | | | | | | | | | | |
| Weighted average basic shares | | | | | | | | 87,652 |
| | | | | | | | 87,652 |
|
| outstanding | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Diluted net loss per common share | | | | | | | | $ | (10.37 | ) | | | | | | | | $ | (10.37 | ) |
| | | | | | | | | | | | | | | | | | |
| Weighted average diluted shares | | | | | | | | 87,652 |
| | | | | | | | 87,652 |
|
| outstanding | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
(1) Results of Peninsula Gaming are included from the November 20, 2012, date of acquisition.
(2) Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down
to Borgata and are therefore not reflected in Borgata's standalone financial statements.
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidating Statement of Operations
Year Ended December 31, 2011
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | | Boyd Gaming | | | | LVE (Variable | | | | Boyd Gaming |
| | | | Wholly-Owned | | Borgata (1) | | Interest Entity) | | Eliminations | | Consolidated |
| | | | (in thousands, except per share data) |
| Revenues | | | | | | | | | | |
| | Gaming | | $ | 1,338,202 |
| | $ | 648,442 |
| | $ | — |
| | $ | — |
| | $ | 1,986,644 |
|
| | Food and beverage | | 240,065 |
| | 148,083 |
| | — |
| | — |
| | 388,148 |
|
| | Room | | 129,672 |
| | 116,537 |
| | — |
| | — |
| | 246,209 |
|
| | Other | | 93,718 |
| | 41,458 |
| | 10,858 |
| | (10,858 | ) | | 135,176 |
|
| Gross revenues | | 1,801,657 |
| | 954,520 |
| | 10,858 |
| | (10,858 | ) | | 2,756,177 |
|
| | Less promotional allowances | | 195,693 |
| | 224,246 |
| | — |
| | — |
| | 419,939 |
|
| | Net revenues | | 1,605,964 |
| | 730,274 |
| | 10,858 |
| | (10,858 | ) | | 2,336,238 |
|
| | | | | | | | | | | | |
| Costs and expenses | | | | | | | | | | |
| | Gaming | | 660,580 |
| | 263,871 |
| | — |
| | — |
| | 924,451 |
|
| | Food and beverage | | 128,807 |
| | 71,358 |
| | — |
| | — |
| | 200,165 |
|
| | Room | | 41,576 |
| | 14,535 |
| | — |
| | — |
| | 56,111 |
|
| | Other | | 75,630 |
| | 33,277 |
| | — |
| | — |
| | 108,907 |
|
| | Selling, general and administrative | | 268,049 |
| | 126,942 |
| | — |
| | — |
| | 394,991 |
|
| | Maintenance and utilities | | 91,347 |
| | 62,165 |
| | — |
| | — |
| | 153,512 |
|
| | Depreciation and amortization | | 129,906 |
| | 65,437 |
| | — |
| | — |
| | 195,343 |
|
| | Corporate expense | | 48,962 |
| | — |
| | — |
| | — |
| | 48,962 |
|
| | Preopening expenses | | 17,263 |
| | 229 |
| | — |
| | (10,858 | ) | | 6,634 |
|
| | Impairments of assets | | 5,690 |
| | 1,051 |
| | — |
| | — |
| | 6,741 |
|
| | Other operating charges, net | | 1,970 |
| | 5,347 |
| | — |
| | — |
| | 7,317 |
|
| | Total costs and expenses | | 1,469,780 |
| | 644,212 |
| | — |
| | (10,858 | ) | | 2,103,134 |
|
| | | | | | | | | | | | |
| Operating income from Borgata | | 43,031 |
| | | | — |
| | (43,031 | ) | | — |
|
| | | | | | | | | | | | |
| Operating income | | 179,215 |
| | 86,062 |
| | 10,858 |
| | (43,031 | ) | | 233,104 |
|
| | | | | | | | | | | | |
| Other expense (income) | | | | | | | | | | |
| | Interest income | | (46 | ) | | — |
| | — |
| — |
| — |
| | (46 | ) |
| | Interest expense, net of amounts capitalized | | 152,664 |
| | 81,314 |
| | 16,753 |
| | — |
| | 250,731 |
|
| | Other income | | (11,297 | ) | | (6 | ) | | — |
| | — |
| | (11,303 | ) |
| | Other non-operating expenses from Borgata, net | | 41,280 |
| | — |
| | — |
| | (41,280 | ) | | — |
|
| | Total other expense, net | | 182,601 |
| | 81,308 |
| | 16,753 |
| | (41,280 | ) | | 239,382 |
|
| | | | | | | | | | | | |
| Income (loss) before income taxes | | (3,386 | ) | | 4,754 |
| | (5,895 | ) | | (1,751 | ) | | (6,278 | ) |
| Income taxes | | (468 | ) | | (1,253 | ) | | — |
| | — |
| | (1,721 | ) |
| | | | | | | | | | | | |
| Net income (loss) | | (3,854 | ) | | 3,501 |
| | (5,895 | ) | | (1,751 | ) | | (7,999 | ) |
| Net income attributable to noncontrolling interest | | — |
| | — |
| | 5,895 |
| | (1,750 | ) | | 4,145 |
|
| | | | | | | | | | | | |
| Net income (loss) attributable to Boyd Gaming Corporation | | $ | (3,854 | ) | | $ | 3,501 |
| | $ | — |
| | $ | (3,501 | ) | | (3,854 | ) |
| | | | | | | | | | | | |
| Basic net income per common share | | $ | (0.04 | ) | | | | | | | | $ | (0.04 | ) |
| | | | | | | | | | | | |
| Weighted average basic shares outstanding | | 87,263 |
| | | | | | | | 87,263 |
|
| | | | | | | | | | | | |
| Diluted net income per common share | | $ | (0.04 | ) | | | | | | | | $ | (0.04 | ) |
| | | | | | | | | | | | |
| Weighted average diluted shares outstanding | | 87,263 |
| | | | | | | | 87,263 |
|
(1) Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down
to Borgata and are therefore not reflected in Borgata's standalone financial statements.
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidated Statements of Operations of Peninsula Gaming Segment
Successor and Predecessor Periods Comprising the Three Month Periods Ended December 31, 2012 and 2011
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Successor | | | Predecessor | | Combined | | Predecessor |
| | November 20, 2012 | | | October 1, 2012 | | October 1, 2012 | | Three Months |
| | Through | | | Through | | Through | | Ended |
| | December 31, 2012 | | | November 19, 2012 | | December 31, 2012 | | December 31, 2011 |
| | | | | | | (In thousands) | | |
| Revenues | | | | | | | | |
| Gaming | $ | 53,442 |
| | | $ | 63,338 |
| | $ | 116,780 |
| | $ | 77,472 |
|
| Food and beverage | 3,988 |
| | | 4,507 |
| | 8,495 |
| | 6,709 |
|
| Other | 1,687 |
| | | 2,299 |
| | 3,986 |
| | 3,439 |
|
| Gross revenues | 59,117 |
| | | 70,144 |
| | 129,261 |
| | 87,620 |
|
| Less promotional allowances | 2,192 |
| | | 2,725 |
| | 4,917 |
| | 4,150 |
|
| Net revenues | 56,925 |
| | | 67,419 |
| | 124,344 |
| | 83,470 |
|
| | | | | | | | | |
| Costs and expenses | | | | | | | | |
| Gaming | 24,565 |
| | | 29,337 |
| | 53,902 |
| | 38,077 |
|
| Food and beverage | 2,855 |
| | | 2,865 |
| | 5,720 |
| | 4,263 |
|
| Other | 1,090 |
| | | 1,547 |
| | 2,637 |
| | 2,471 |
|
| Selling, general and administrative | 5,250 |
| | | 7,208 |
| | 12,458 |
| | 8,696 |
|
| Maintenance and utilities | 2,014 |
| | | 1,518 |
| | 3,532 |
| | 2,187 |
|
| Depreciation and amortization | 13,327 |
| | | 5,504 |
| | 18,831 |
| | 7,964 |
|
| Corporate expense | 375 |
| | | 2,685 |
| | 3,060 |
| | 2,747 |
|
| Affiliate management fee | 2,182 |
| | | 1,096 |
| | 3,278 |
| | 1,477 |
|
| Preopening expenses | 538 |
| | | 392 |
| | 930 |
| | 3,273 |
|
| Other operating charges, net | — |
| | | 26,830 |
| | 26,830 |
| | 93 |
|
| Total costs and expenses | 52,196 |
| | | 78,982 |
| | 131,178 |
| | 71,248 |
|
| Operating income (loss) | 4,729 |
| | | (11,563 | ) | | (6,834 | ) | | 12,222 |
|
| | | | | | | | | |
| Other expense (income) | | | | | | | | |
| Interest income | (247 | ) | | | (309 | ) | | (556 | ) | | (574 | ) |
| Interest expense, net of amounts capitalized | 10,065 |
| | | 9,231 |
| | 19,296 |
| | 17,086 |
|
| Loss on early retirements of debt, net | — |
| | | 79,571 |
| | 79,571 |
| | — |
|
| Loss from equity affiliate | 137 |
| | | — |
| | 137 |
| | 29 |
|
| Total other expense, net | 9,955 |
| | | 88,493 |
| | 98,448 |
| | 16,541 |
|
| | | | | | | | | |
| Net income (loss) | $ | (5,226 | ) | | | $ | (100,056 | ) | | $ | (105,282 | ) | | $ | (4,319 | ) |
| | | | | | | | | |
| Adjusted EBITDA, after corporate expense | $ | 20,776 |
| | | $ | 22,259 |
| | $ | 43,035 |
| | $ | 25,029 |
|
Note: Peninsula Gaming, LLC (PGL) was acquired by Boyd Gaming on November 20, 2012. In accordance with Generally Accepted Accounting Principles (GAAP), PGL's 2012 historical financial results have been separated between the Successor period from November 20, 2012 through December 31, 2012, and the Predecessor period from October 1, 2012 through November 19, 2012. However, the Successor and Predecessor periods' results comprising the quarter ended December 31, 2012 are also presented on a combined basis because management believes doing so provides a meaningful presentation and comparison of results.
BOYD GAMING CORPORATION
SUPPLEMENTAL INFORMATION
Condensed Consolidated Statements of Operations of Peninsula Gaming Segment
Successor and Predecessor Periods Comprising the Years Ended December 31, 2012 and 2011
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Successor | | | Predecessor | | Combined | | Predecessor |
| | November 20, 2012 | | | January 1, 2012 | | January 1, 2012 | | Year |
| | Through | | | Through | | Through | | Ended |
| | December 31, 2012 | | | November 19, 2012 | | December 31, 2012 | | December 31, 2011 |
| | | | | | | (in thousands) | | |
| Revenues | | | | | | | | |
| Gaming | $ | 53,442 |
| | | $ | 438,417 |
| | $ | 491,859 |
| | $ | 306,704 |
|
| Food and beverage | 3,988 |
| | | 29,802 |
| | 33,790 |
| | 27,127 |
|
| Other | 1,687 |
| | | 14,655 |
| | 16,342 |
| | 15,176 |
|
| Gross revenues | 59,117 |
| | | 482,874 |
| | 541,991 |
| | 349,007 |
|
| Less promotional allowances | 2,192 |
| | | 17,686 |
| | 19,878 |
| | 16,677 |
|
| Net revenues | 56,925 |
| | | 465,188 |
| | 522,113 |
| | 332,330 |
|
| | | | | | | | | |
| Costs and expenses | | | | | | | | |
| Gaming | 24,565 |
| | | 198,680 |
| | 223,245 |
| | 150,496 |
|
| Food and beverage | 2,855 |
| | | 18,736 |
| | 21,591 |
| | 17,209 |
|
| Other | 1,090 |
| | | 10,190 |
| | 11,280 |
| | 10,829 |
|
| Selling, general and administrative | 5,250 |
| | | 44,160 |
| | 49,410 |
| | 33,723 |
|
| Maintenance and utilities | 2,014 |
| | | 9,792 |
| | 11,806 |
| | 8,980 |
|
| Depreciation and amortization | 13,327 |
| | | 36,743 |
| | 50,070 |
| | 29,427 |
|
| Corporate expense | 375 |
| | | 11,572 |
| | 11,947 |
| | 9,424 |
|
| Affiliate management fee | 2,182 |
| | | 8,145 |
| | 10,327 |
| | 6,185 |
|
| Preopening expenses | 538 |
| | | 548 |
| | 1,086 |
| | 10,136 |
|
| Other operating charges, net | — |
| | | 29,258 |
| | 29,258 |
| | 179 |
|
| Total costs and expenses | 52,196 |
| | | 367,824 |
| | 420,020 |
| | 276,588 |
|
| Operating income | 4,729 |
| | | 97,364 |
| | 102,093 |
| | 55,742 |
|
| | | | | | | | | |
| Other expense (income) | | | | | | | | |
| Interest income | (247 | ) | | | (1,994 | ) | | (2,241 | ) | | (2,350 | ) |
| Interest expense, net of amounts capitalized | 10,065 |
| | | 62,935 |
| | 73,000 |
| | 68,302 |
|
| Loss on early retirements of debt, net | — |
| | | 79,571 |
| | 79,571 |
| | — |
|
| Loss from equity affiliate | 137 |
| | | 62 |
| | 199 |
| | 91 |
|
| Total other expense, net | 9,955 |
| | | 140,574 |
| | 150,529 |
| | 66,043 |
|
| | | | | | | | | |
| Net income (loss) | $ | (5,226 | ) | | | $ | (43,210 | ) | | $ | (48,436 | ) | | $ | (10,301 | ) |
| | | | | | | | | |
| Adjusted EBITDA, after corporate expense | $ | 20,776 |
| | | $ | 172,058 |
| | $ | 192,834 |
| | $ | 101,669 |
|
Note: Peninsula Gaming, LLC (PGL) was acquired by Boyd Gaming on November 20, 2012. In accordance with Generally Accepted Accounting Principles (GAAP), PGL's 2012 historical financial results have been separated between the Successor period from November 20, 2012 through December 31, 2012, and the Predecessor period from January 1, 2012 through November 19, 2012. However, the Successor and Predecessor periods' results comprising the year ended December 31, 2012 are also presented on a combined basis because management believes doing so provides a meaningful presentation and comparison of results.
