Exhibit 99.2
Boyd Gaming Corporation and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Financial Information
The following unaudited pro forma condensed consolidated financial information is derived from and should be read in conjunction with historical consolidated financial statements and related notes of Boyd Gaming Corporation (“Boyd”). Boyd and MGM Resorts International ("MGM") each originally held a 50% interest in Marina District Development Holding Co., LLC ("Holding Company"). Holding Company owns all the equity interests in Marina District Development Company, LLC, d.b.a. Borgata Hotel Casino and Spa ("Borgata"). Boyd is the managing member of Holding Company and is responsible for the day-to-day operations of Borgata.
In February 2010, Boyd entered into an agreement with MGM to amend the operating agreement to, among other things, facilitate the transfer of MGM's interest in Holding Company ("MGM Interest") to a divestiture trust (the "Divestiture Trust") established for the purpose of selling the MGM Interest to a third party. The proposed sale of the MGM Interest through the Divestiture Trust was part of a then-proposed settlement agreement between MGM and the New Jersey Department of Gaming Enforcement (the "NJDGE").
On March 17, 2010, MGM announced that its settlement agreement with the NJDGE had been approved by the New Jersey Casino Control Commission ("NJCCC"). Under the terms of the settlement agreement, MGM agreed to transfer the MGM Interest into the Divestiture Trust. Upon the transfer of the MGM Interest into the Divestiture Trust on March 24, 2010, Boyd determined that it had control, as defined in the relevant accounting literature, of Holding Company and commenced consolidating the business as of that date. Subsequent to a Joint Petition of MGM, Boyd and Holding Company, on February 13, 2013, the NJCCC approved amendments to the settlement agreement which permitted MGM to file an application for a statement of compliance, which, if approved, would permit MGM to reacquire its interest in Holding Company.
The NJCCC approved MGM’s application for licensure on September 10, 2014. On September 30, 2014, the Divestiture Trust was dissolved and MGM reacquired its Borgata ownership interest and its substantive participation rights in the management of Borgata. As a result, Boyd is deconsolidating Borgata as of the close of business on September 30, 2014, and will account for its investment in Borgata applying the equity method for periods subsequent to the deconsolidation. As a result of the deconsolidation, Boyd has adjusted the book value of its investment to equal fair value and recognized a loss due to the deconsolidation of $12.1 million in its third quarter 2014 results.
The unaudited pro forma condensed consolidated financial information for each of the quarterly periods within and for the year ended December 31, 2013, and for each of the quarterly periods in and for the year-to-date period ended September 30, 2014, gives effect to:
• | the deconsolidation by Boyd of Holding Company, and |
• | the recording by Boyd using the equity method of accounting of its 50% share of the operating results of Holding Company for the respective periods. |
The unaudited pro forma condensed consolidated financial information assumes that these transactions occurred as of January 1, 2013.
The unaudited pro forma condensed consolidated financial information has been prepared based upon currently available information and assumptions that are deemed appropriate by Boyd’s management. The pro forma information is for informational purposes only and is not intended to be indicative of the actual consolidated results that would have been reported had the transactions occurred on the date indicated, nor does the information represent a forecast of the consolidated financial results for any future period.
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Three Months Ended March 31, 2013 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 632.6 | $ | (145.7 | ) | $ | — | $ | 486.9 | |||||||
Food and beverage | 111.8 | (33.9 | ) | — | 77.9 | |||||||||||
Room | 63.9 | (26.7 | ) | — | 37.2 | |||||||||||
Other | 39.2 | (9.2 | ) | — | 30.0 | |||||||||||
Gross revenues | 847.5 | (215.5 | ) | — | 632.0 | |||||||||||
Less promotional allowances | 111.9 | (49.8 | ) | — | 62.1 | |||||||||||
Net revenues | 735.6 | (165.7 | ) | — | 569.9 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 297.3 | (61.1 | ) | — | 236.2 | |||||||||||
Food and beverage | 60.1 | (17.3 | ) | — | 42.8 | |||||||||||
Room | 13.1 | (3.0 | ) | — | 10.1 | |||||||||||
Other | 28.2 | (6.7 | ) | — | 21.5 | |||||||||||
Selling, general and administrative | 123.9 | (34.9 | ) | — | 89.0 | |||||||||||
Maintenance and utilities | 39.2 | (14.3 | ) | — | 24.9 | |||||||||||
Depreciation and amortization | 70.0 | (15.6 | ) | — | 54.4 | |||||||||||
Corporate expense | 15.4 | — | — | 15.4 | ||||||||||||
Preopening expenses | 2.4 | — | — | 2.4 | ||||||||||||
Asset transactions costs | 3.0 | (0.3 | ) | — | 2.7 | |||||||||||
Other operating items, net | 1.6 | — | — | 1.6 | ||||||||||||
Total operating costs and expenses | 654.2 | (153.2 | ) | — | 501.0 | |||||||||||
Operating income from Borgata | — | — | 6.2 | 6.2 | ||||||||||||
Operating income | 81.4 | (12.5 | ) | 6.2 | 75.1 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (0.7 | ) | — | — | (0.7 | ) | ||||||||||
Interest expense, net | 95.7 | (20.8 | ) | — | 74.9 | |||||||||||
Other, net | (0.6 | ) | — | — | (0.6 | ) | ||||||||||
Other non-operating expenses from Borgata, net | — | — | 10.1 | 10.1 | ||||||||||||
Total other expense, net | 94.4 | (20.8 | ) | 10.1 | 83.7 | |||||||||||
Income (loss) from continuing operations before taxes | (13.0 | ) | 8.3 | (3.9 | ) | (8.6 | ) | |||||||||
Income taxes | 2.4 | (0.5 | ) | — | 1.9 | |||||||||||
Income (loss) from continuing operations, net of tax | (10.6 | ) | 7.8 | (3.9 | ) | (6.7 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | (1.0 | ) | — | — | (1.0 | ) | ||||||||||
Net income (loss) | (11.6 | ) | 7.8 | (3.9 | ) | (7.7 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | 4.3 | — | (3.9 | ) | 0.4 | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (7.3 | ) | $ | 7.8 | $ | (7.8 | ) | $ | (7.3 | ) |
2
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Three Months Ended March 31, 2013 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.07 | ) | $ | (0.07 | ) | ||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||||||
Basic net income (loss) per common share | $ | (0.08 | ) | $ | (0.08 | ) | ||||||
Weighted average basic shares outstanding | 88.0 | 88.0 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.07 | ) | $ | (0.07 | ) | ||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||||||
Diluted net income (loss) per common share | $ | (0.08 | ) | $ | (0.08 | ) | ||||||
Weighted average diluted shares outstanding | 88.0 | 88.0 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
3
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 152.8 | $ | — | $ | — | $ | 152.8 | |||||||
Downtown Las Vegas | 54.1 | — | — | 54.1 | |||||||||||
Midwest and South | 229.1 | — | — | 229.1 | |||||||||||
Peninsula | 133.9 | — | — | 133.9 | |||||||||||
Borgata | 165.7 | (165.7 | ) | — | — | ||||||||||
Net revenues | $ | 735.6 | $ | (165.7 | ) | $ | — | $ | 569.9 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 39.2 | $ | — | $ | — | $ | 39.2 | |||||||
Downtown Las Vegas | 7.1 | — | — | 7.1 | |||||||||||
Midwest and South | 49.7 | — | — | 49.7 | |||||||||||
Peninsula | 50.7 | — | — | 50.7 | |||||||||||
Wholly owned property Adjusted EBITDA | 146.7 | — | — | 146.7 | |||||||||||
Corporate expense | (11.6 | ) | — | — | (11.6 | ) | |||||||||
Wholly owned Adjusted EBITDA | 135.1 | — | — | 135.1 | |||||||||||
Borgata | 28.4 | (28.4 | ) | 14.2 | 14.2 | ||||||||||
Adjusted EBITDA | 163.5 | (28.4 | ) | 14.2 | 149.3 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 1.0 | — | — | 1.0 | |||||||||||
Depreciation and amortization | 70.0 | (15.6 | ) | — | 54.4 | ||||||||||
Preopening expenses | 2.4 | — | — | 2.4 | |||||||||||
Share-based compensation expense | 4.1 | — | — | 4.1 | |||||||||||
Asset transactions costs | 3.0 | (0.3 | ) | — | 2.7 | ||||||||||
Other operating charges and credits, net | 1.6 | — | — | 1.6 | |||||||||||
Our share of Borgata's other operating costs and expenses | — | — | 8.0 | 8.0 | |||||||||||
Total other operating costs and expenses | 82.1 | (15.9 | ) | 8.0 | 74.2 | ||||||||||
Operating income | 81.4 | (12.5 | ) | 6.2 | 75.1 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 95.0 | (20.8 | ) | — | 74.2 | ||||||||||
Other, net | (0.6 | ) | — | — | (0.6 | ) | |||||||||
Our share of Borgata's other non-operating expenses | — | — | 10.1 | 10.1 | |||||||||||
Total other non-operating items, net | 94.4 | (20.8 | ) | 10.1 | 83.7 | ||||||||||
Income (loss) from continuing operations before income taxes | (13.0 | ) | 8.3 | (3.9 | ) | (8.6 | ) | ||||||||
Income taxes | 2.4 | (0.5 | ) | — | 1.9 | ||||||||||
Income (loss) from continuing operations, net of tax | (10.6 | ) | 7.8 | (3.9 | ) | (6.7 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | (1.0 | ) | — | — | (1.0 | ) | |||||||||
Net income (loss) | (11.6 | ) | 7.8 | (3.9 | ) | (7.7 | ) | ||||||||
Net (income) loss attributable to noncontrolling interest | 4.3 | — | (3.9 | ) | 0.4 | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (7.3 | ) | $ | 7.8 | $ | (7.8 | ) | $ | (7.3 | ) |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
4
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (7.3 | ) | $ | 7.8 | $ | (7.8 | ) | $ | (7.3 | ) | ||||
Less: income from discontinued operations, net of tax | 1.0 | — | — | 1.0 | |||||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | (6.3 | ) | 7.8 | (7.8 | ) | (6.3 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 4.3 | — | — | 4.3 | |||||||||||
Asset transactions costs | 2.7 | — | — | 2.7 | |||||||||||
Other operating charges and credits, net | 1.6 | — | — | 1.6 | |||||||||||
Other (income) loss | (0.9 | ) | — | — | (0.9 | ) | |||||||||
Our share of Borgata's pretax adjustments | — | — | — | — | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Valuation adjustments related to consolidation, net | (0.3 | ) | 0.3 | — | — | ||||||||||
Asset transactions costs | 0.3 | (0.3 | ) | — | — | ||||||||||
Total adjustments | 7.7 | — | — | 7.7 | |||||||||||
Income tax effect for above adjustments | — | — | — | — | |||||||||||
Impact on noncontrolling interest, net | — | — | — | — | |||||||||||
Adjusted earnings (loss) | $ | 1.4 | $ | 7.8 | $ | (7.8 | ) | $ | 1.4 | ||||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | (0.08 | ) | $ | 0.09 | $ | (0.09 | ) | $ | (0.08 | ) | ||||
Less: income from discontinued operations, net of tax | 0.01 | — | — | 0.01 | |||||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | (0.07 | ) | 0.09 | (0.09 | ) | (0.07 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.05 | — | — | 0.05 | |||||||||||
Asset transactions costs | 0.03 | — | — | 0.03 | |||||||||||
Other operating charges and credits, net | 0.02 | — | — | 0.02 | |||||||||||
Other (income) loss | (0.01 | ) | — | — | (0.01 | ) | |||||||||
Our share of Borgata's pretax adjustments | — | — | — | — | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Valuation adjustments related to consolidation, net | — | — | — | — | |||||||||||
Asset transactions costs | — | — | — | — | |||||||||||
Total adjustments | 0.09 | — | — | 0.09 | |||||||||||
Income tax effect for above adjustments | — | — | — | — | |||||||||||
Impact on noncontrolling interest, net | — | — | — | — | |||||||||||
Adjusted earnings (loss) per share | $ | 0.02 | $ | 0.09 | $ | (0.09 | ) | $ | 0.02 | ||||||
Weighted average shares outstanding | 88.4 | 88.4 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
5
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Three Months Ended June 30, 2013 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 627.9 | $ | (149.3 | ) | $ | — | $ | 478.6 | |||||||
Food and beverage | 112.8 | (35.1 | ) | — | 77.7 | |||||||||||
Room | 67.2 | (28.5 | ) | — | 38.7 | |||||||||||
Other | 41.8 | (10.9 | ) | — | 30.9 | |||||||||||
Gross revenues | 849.7 | (223.8 | ) | — | 625.9 | |||||||||||
Less promotional allowances | 111.0 | (51.0 | ) | — | 60.0 | |||||||||||
Net revenues | 738.7 | (172.8 | ) | — | 565.9 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 287.8 | (55.1 | ) | — | 232.7 | |||||||||||
Food and beverage | 64.2 | (21.1 | ) | — | 43.1 | |||||||||||
Room | 16.0 | (5.2 | ) | — | 10.8 | |||||||||||
Other | 31.2 | (9.5 | ) | — | 21.7 | |||||||||||
Selling, general and administrative | 127.3 | (39.6 | ) | — | 87.7 | |||||||||||
Maintenance and utilities | 41.0 | (14.5 | ) | — | 26.5 | |||||||||||
Depreciation and amortization | 70.3 | (15.5 | ) | — | 54.8 | |||||||||||
Corporate expense | 15.1 | — | — | 15.1 | ||||||||||||
Preopening expenses | 0.8 | (0.1 | ) | — | 0.7 | |||||||||||
Impairments of assets | 5.0 | (5.0 | ) | — | — | |||||||||||
Asset transactions costs | 0.6 | (0.1 | ) | — | 0.5 | |||||||||||
Other operating items, net | 0.2 | — | — | 0.2 | ||||||||||||
Total operating costs and expenses | 659.5 | (165.7 | ) | — | 493.8 | |||||||||||
Operating income from Borgata | — | — | 3.6 | 3.6 | ||||||||||||
Operating income | 79.2 | (7.1 | ) | 3.6 | 75.7 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (0.6 | ) | — | — | (0.6 | ) | ||||||||||
Interest expense, net | 88.1 | (20.8 | ) | — | 67.3 | |||||||||||
Loss on early extinguishments of debt | 2.4 | — | — | 2.4 | ||||||||||||
Other non-operating expenses from Borgata, net | — | — | 10.0 | 10.0 | ||||||||||||
Total other expense, net | 89.9 | (20.8 | ) | 10.0 | 79.1 | |||||||||||
Income (loss) from continuing operations before taxes | (10.7 | ) | 13.7 | (6.4 | ) | (3.4 | ) | |||||||||
Income taxes | 4.1 | (0.9 | ) | — | 3.2 | |||||||||||
Income (loss) from continuing operations, net of tax | (6.6 | ) | 12.8 | (6.4 | ) | (0.2 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | 11.8 | — | — | 11.8 | ||||||||||||
Net income (loss) | 5.2 | 12.8 | (6.4 | ) | 11.6 | |||||||||||
Net (income) loss attributable to noncontrolling interest | 6.4 | — | (6.4 | ) | — | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 11.6 | $ | 12.8 | $ | (12.8 | ) | $ | 11.6 |
6
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Three Months Ended June 30, 2013 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | — | $ | — | ||||||||
Discontinued operations | 0.13 | 0.13 | ||||||||||
Basic net income (loss) per common share | $ | 0.13 | $ | 0.13 | ||||||||
Weighted average basic shares outstanding | 89.2 | 89.2 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | — | $ | — | ||||||||
Discontinued operations | 0.13 | 0.13 | ||||||||||
Diluted net income (loss) per common share | $ | 0.13 | $ | 0.13 | ||||||||
Weighted average diluted shares outstanding | 90.3 | 90.3 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
7
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Three Months Ended June 30, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 149.7 | $ | — | $ | — | $ | 149.7 | |||||||
Downtown Las Vegas | 56.1 | — | — | 56.1 | |||||||||||
Midwest and South | 224.3 | — | — | 224.3 | |||||||||||
Peninsula | 135.8 | — | — | 135.8 | |||||||||||
Borgata | 172.8 | (172.8 | ) | — | — | ||||||||||
Net revenues | $ | 738.7 | $ | (172.8 | ) | $ | — | $ | 565.9 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 38.7 | $ | — | $ | — | $ | 38.7 | |||||||
Downtown Las Vegas | 9.3 | — | — | 9.3 | |||||||||||
Midwest and South | 48.7 | — | — | 48.7 | |||||||||||
Peninsula | 48.3 | — | — | 48.3 | |||||||||||
Wholly owned property Adjusted EBITDA | 145.0 | — | — | 145.0 | |||||||||||
Corporate expense | (12.6 | ) | — | — | (12.6 | ) | |||||||||
Wholly owned Adjusted EBITDA | 132.4 | — | — | 132.4 | |||||||||||
Borgata | 27.8 | (27.8 | ) | 13.9 | 13.9 | ||||||||||
Adjusted EBITDA | 160.2 | (27.8 | ) | 13.9 | 146.3 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 1.2 | — | — | 1.2 | |||||||||||
Depreciation and amortization | 70.3 | (15.5 | ) | — | 54.8 | ||||||||||
Preopening expenses | 0.8 | (0.1 | ) | — | 0.7 | ||||||||||
Share-based compensation expense | 2.9 | — | — | 2.9 | |||||||||||
Impairments of assets | 5.0 | (5.0 | ) | — | — | ||||||||||
Asset transactions costs | 0.6 | (0.1 | ) | — | 0.5 | ||||||||||
Other operating charges and credits, net | 0.2 | — | — | 0.2 | |||||||||||
Our share of Borgata's other operating costs and expenses | — | — | 10.3 | 10.3 | |||||||||||
Total other operating costs and expenses | 81.0 | (20.7 | ) | 10.3 | 70.6 | ||||||||||
Operating income | 79.2 | (7.1 | ) | 3.6 | 75.7 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 87.5 | (20.8 | ) | — | 66.7 | ||||||||||
Loss on early extinguishments of debt | 2.4 | — | — | 2.4 | |||||||||||
Our share of Borgata's other non-operating expenses | — | — | 10.0 | 10.0 | |||||||||||
Total other non-operating items, net | 89.9 | (20.8 | ) | 10.0 | 79.1 | ||||||||||
Income (loss) from continuing operations before income taxes | (10.7 | ) | 13.7 | (6.4 | ) | (3.4 | ) | ||||||||
Income taxes | 4.1 | (0.9 | ) | — | 3.2 | ||||||||||
Income (loss) from continuing operations, net of tax | (6.6 | ) | 12.8 | (6.4 | ) | (0.2 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | 11.8 | — | — | 11.8 | |||||||||||
Net income (loss) | 5.2 | 12.8 | (6.4 | ) | 11.6 | ||||||||||
Net (income) loss attributable to noncontrolling interest | 6.4 | — | (6.4 | ) | — | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 11.6 | $ | 12.8 | $ | (12.8 | ) | $ | 11.6 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
8
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Three Months Ended June 30, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 11.6 | $ | 12.8 | $ | (12.8 | ) | $ | 11.6 | ||||||
Less: income from discontinued operations, net of tax | (11.8 | ) | — | — | (11.8 | ) | |||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | (0.2 | ) | 12.8 | (12.8 | ) | (0.2 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.7 | — | — | 0.7 | |||||||||||
Loss on early extinguishments of debt | 2.4 | — | — | 2.4 | |||||||||||
Asset transactions costs | 0.5 | — | — | 0.5 | |||||||||||
Other operating charges and credits, net | 0.2 | — | — | 0.2 | |||||||||||
Our share of Borgata's pretax adjustments | — | — | 2.5 | 2.5 | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 0.1 | (0.1 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | (0.2 | ) | 0.2 | — | — | ||||||||||
Impairments of assets | 5.0 | (5.0 | ) | — | — | ||||||||||
Asset transactions costs | 0.1 | (0.1 | ) | — | — | ||||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Total adjustments | 8.8 | (5.0 | ) | 2.5 | 6.3 | ||||||||||
Income tax effect for above adjustments | (6.3 | ) | 0.2 | (0.2 | ) | (6.3 | ) | ||||||||
Impact on noncontrolling interest, net | (2.5 | ) | 2.5 | — | — | ||||||||||
Adjusted earnings (loss) | $ | (0.2 | ) | $ | 10.5 | $ | (10.5 | ) | $ | (0.2 | ) | ||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | 0.13 | $ | 0.14 | $ | (0.14 | ) | $ | 0.13 | ||||||
Less: income from discontinued operations, net of tax | (0.13 | ) | — | — | (0.13 | ) | |||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | — | 0.14 | (0.14 | ) | — | ||||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.01 | — | — | 0.01 | |||||||||||
Loss on early extinguishments of debt | 0.02 | — | — | 0.02 | |||||||||||
Asset transactions costs | 0.01 | — | — | 0.01 | |||||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Our share of Borgata's pretax adjustments | — | — | 0.03 | 0.03 | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | — | — | — | — | |||||||||||
Valuation adjustments related to consolidation, net | — | — | — | — | |||||||||||
Impairments of assets | 0.06 | (0.06 | ) | — | — | ||||||||||
Asset transactions costs | — | — | — | — | |||||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Total adjustments | 0.10 | (0.06 | ) | 0.03 | 0.07 | ||||||||||
Income tax effect for above adjustments | (0.07 | ) | — | — | (0.07 | ) | |||||||||
Impact on noncontrolling interest, net | (0.03 | ) | 0.03 | — | — | ||||||||||
Adjusted earnings (loss) per share | $ | — | $ | 0.11 | $ | (0.11 | ) | $ | — | ||||||
Weighted average shares outstanding | 89.2 | 89.2 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
9
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Three Months Ended September 30, 2013 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 633.2 | $ | (177.0 | ) | $ | — | $ | 456.2 | |||||||
Food and beverage | 114.4 | (39.2 | ) | — | 75.2 | |||||||||||
Room | 72.3 | (34.0 | ) | — | 38.3 | |||||||||||
Other | 43.9 | (13.3 | ) | — | 30.6 | |||||||||||
Gross revenues | 863.8 | (263.5 | ) | — | 600.3 | |||||||||||
Less promotional allowances | 125.2 | (63.4 | ) | — | 61.8 | |||||||||||
Net revenues | 738.6 | (200.1 | ) | — | 538.5 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 302.4 | (71.8 | ) | — | 230.6 | |||||||||||
Food and beverage | 57.7 | (16.1 | ) | — | 41.6 | |||||||||||
Room | 12.6 | (2.0 | ) | — | 10.6 | |||||||||||
Other | 33.1 | (10.7 | ) | — | 22.4 | |||||||||||
Selling, general and administrative | 122.8 | (36.8 | ) | — | 86.0 | |||||||||||
Maintenance and utilities | 45.7 | (16.1 | ) | — | 29.6 | |||||||||||
Depreciation and amortization | 69.0 | (14.3 | ) | — | 54.7 | |||||||||||
Corporate expense | 12.1 | — | — | 12.1 | ||||||||||||
Preopening expenses | 1.7 | (0.4 | ) | — | 1.3 | |||||||||||
Impairments of assets | 1.3 | — | — | 1.3 | ||||||||||||
Asset transactions costs | (1.4 | ) | 0.2 | — | (1.2 | ) | ||||||||||
Other operating items, net | 3.4 | (3.3 | ) | — | 0.1 | |||||||||||
Total operating costs and expenses | 660.4 | (171.3 | ) | — | 489.1 | |||||||||||
Operating income from Borgata | — | — | 14.4 | 14.4 | ||||||||||||
Operating income | 78.2 | (28.8 | ) | 14.4 | 63.8 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (0.6 | ) | — | — | (0.6 | ) | ||||||||||
Interest expense, net | 83.2 | (20.3 | ) | — | 62.9 | |||||||||||
Loss on early extinguishments of debt | 27.1 | (2.5 | ) | — | 24.6 | |||||||||||
Other, net | 0.1 | — | — | 0.1 | ||||||||||||
Other non-operating expenses from Borgata, net | — | — | 11.8 | 11.8 | ||||||||||||
Total other expense, net | 109.8 | (22.8 | ) | 11.8 | 98.8 | |||||||||||
Income (loss) from continuing operations before taxes | (31.6 | ) | (6.0 | ) | 2.6 | (35.0 | ) | |||||||||
Income taxes | (3.0 | ) | 0.7 | — | (2.3 | ) | ||||||||||
Income (loss) from continuing operations, net of tax | (34.6 | ) | (5.3 | ) | 2.6 | (37.3 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | ||||||||||||
Net income (loss) | (34.6 | ) | (5.3 | ) | 2.6 | (37.3 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | (2.7 | ) | — | 2.7 | — | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (37.3 | ) | $ | (5.3 | ) | $ | 5.3 | $ | (37.3 | ) |
10
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Three Months Ended September 30, 2013 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.37 | ) | $ | (0.37 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Basic net income (loss) per common share | $ | (0.37 | ) | $ | (0.37 | ) | ||||||
Weighted average basic shares outstanding | 101.6 | 101.6 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.37 | ) | $ | (0.37 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Diluted net income (loss) per common share | $ | (0.37 | ) | $ | (0.37 | ) | ||||||
Weighted average diluted shares outstanding | 101.6 | 101.6 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
11
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 140.3 | $ | — | $ | — | $ | 140.3 | |||||||
Downtown Las Vegas | 52.7 | — | — | 52.7 | |||||||||||
Midwest and South | 214.8 | — | — | 214.8 | |||||||||||
Peninsula | 130.7 | — | — | 130.7 | |||||||||||
Borgata | 200.1 | (200.1 | ) | — | — | ||||||||||
Net revenues | $ | 738.6 | $ | (200.1 | ) | $ | — | $ | 538.5 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 26.4 | $ | — | $ | — | $ | 26.4 | |||||||
Downtown Las Vegas | 5.5 | — | — | 5.5 | |||||||||||
Midwest and South | 41.9 | — | — | 41.9 | |||||||||||
Peninsula | 45.3 | — | — | 45.3 | |||||||||||
Wholly owned property Adjusted EBITDA | 119.1 | — | — | 119.1 | |||||||||||
Corporate expense | (10.4 | ) | — | — | (10.4 | ) | |||||||||
Wholly owned Adjusted EBITDA | 108.7 | — | — | 108.7 | |||||||||||
Borgata | 46.6 | (46.6 | ) | 23.3 | 23.3 | ||||||||||
Adjusted EBITDA | 155.3 | (46.6 | ) | 23.3 | 132.0 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 1.1 | — | — | 1.1 | |||||||||||
Depreciation and amortization | 69.0 | (14.3 | ) | — | 54.7 | ||||||||||
Preopening expenses | 1.7 | (0.4 | ) | — | 1.3 | ||||||||||
Share-based compensation expense | 2.0 | — | — | 2.0 | |||||||||||
Impairments of assets | 1.3 | — | — | 1.3 | |||||||||||
Asset transactions costs | (1.4 | ) | 0.2 | — | (1.2 | ) | |||||||||
Other operating charges and credits, net | 3.4 | (3.3 | ) | — | 0.1 | ||||||||||
Our share of Borgata's other operating costs and expenses | — | — | 8.9 | 8.9 | |||||||||||
Total other operating costs and expenses | 77.1 | (17.8 | ) | 8.9 | 68.2 | ||||||||||
Operating income | 78.2 | (28.8 | ) | 14.4 | 63.8 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 82.6 | (20.3 | ) | — | 62.3 | ||||||||||
Loss on early extinguishments of debt | 27.1 | (2.5 | ) | — | 24.6 | ||||||||||
Other, net | 0.1 | — | — | 0.1 | |||||||||||
Our share of Borgata's other non-operating expenses | — | — | 11.8 | 11.8 | |||||||||||
Total other non-operating items, net | 109.8 | (22.8 | ) | 11.8 | 98.8 | ||||||||||
Income (loss) from continuing operations before income taxes | (31.6 | ) | (6.0 | ) | 2.6 | (35.0 | ) | ||||||||
Income taxes | (3.0 | ) | 0.7 | — | (2.3 | ) | |||||||||
Income (loss) from continuing operations, net of tax | (34.6 | ) | (5.3 | ) | 2.6 | (37.3 | ) | ||||||||
Income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income (loss) | (34.6 | ) | (5.3 | ) | 2.6 | (37.3 | ) | ||||||||
Net (income) loss attributable to noncontrolling interest | (2.7 | ) | — | 2.7 | — | ||||||||||
Net loss attributable to Boyd Gaming Corporation | $ | (37.3 | ) | $ | (5.3 | ) | $ | 5.3 | $ | (37.3 | ) |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
12
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (37.3 | ) | $ | (5.3 | ) | $ | 5.3 | $ | (37.3 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | (37.3 | ) | (5.3 | ) | 5.3 | (37.3 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 1.3 | — | — | 1.3 | |||||||||||
Loss on early extinguishments of debt | 24.6 | — | — | 24.6 | |||||||||||
Impairments of assets | 1.3 | — | — | 1.3 | |||||||||||
Asset transactions costs | (1.2 | ) | — | — | (1.2 | ) | |||||||||
Other operating charges and credits, net | 0.1 | — | — | 0.1 | |||||||||||
Our share of Borgata's pretax adjustments | — | — | 2.9 | 2.9 | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 0.4 | (0.4 | ) | — | — | ||||||||||
Loss on early extinguishments of debt | 2.5 | (2.5 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | (0.2 | ) | 0.2 | — | — | ||||||||||
Asset transactions costs | (0.2 | ) | 0.2 | — | — | ||||||||||
Other operating charges and credits, net | 3.3 | (3.3 | ) | — | — | ||||||||||
Total adjustments | 31.9 | (5.8 | ) | 2.9 | 29.0 | ||||||||||
Income tax effect for above adjustments | — | 0.3 | (0.3 | ) | — | ||||||||||
Impact on noncontrolling interest, net | (2.9 | ) | 2.9 | — | — | ||||||||||
Adjusted earnings (loss) | $ | (8.3 | ) | $ | (7.9 | ) | $ | 7.9 | $ | (8.3 | ) | ||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | (0.37 | ) | $ | (0.05 | ) | $ | 0.05 | $ | (0.37 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | (0.37 | ) | (0.05 | ) | 0.05 | (0.37 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.01 | — | — | 0.01 | |||||||||||
Loss on early extinguishments of debt | 0.25 | — | — | 0.25 | |||||||||||
Impairments of assets | 0.01 | — | — | 0.01 | |||||||||||
Asset transactions costs | (0.01 | ) | — | — | (0.01 | ) | |||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Our share of Borgata's pretax adjustments | — | — | 0.03 | 0.03 | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | — | — | — | — | |||||||||||
Loss on early extinguishments of debt | 0.03 | (0.03 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | — | — | — | — | |||||||||||
Asset transactions costs | — | — | — | — | |||||||||||
Other operating charges and credits, net | 0.03 | (0.03 | ) | — | — | ||||||||||
Total adjustments | 0.32 | (0.06 | ) | 0.03 | 0.29 | ||||||||||
Income tax effect for above adjustments | — | — | — | — | |||||||||||
Impact on noncontrolling interest, net | (0.03 | ) | 0.03 | — | — | ||||||||||
Adjusted earnings (loss) per share | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.08 | $ | (0.08 | ) | ||||
Weighted average shares outstanding | 101.6 | 101.6 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
13
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Three Months Ended December 31, 2013 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 585.3 | $ | (143.7 | ) | $ | — | $ | 441.6 | |||||||
Food and beverage | 107.4 | (32.1 | ) | — | 75.3 | |||||||||||
Room | 62.1 | (26.0 | ) | — | 36.1 | |||||||||||
Other | 40.1 | (9.0 | ) | — | 31.1 | |||||||||||
Gross revenues | 794.9 | (210.8 | ) | — | 584.1 | |||||||||||
Less promotional allowances | 113.4 | (53.7 | ) | — | 59.7 | |||||||||||
Net revenues | 681.5 | (157.1 | ) | — | 524.4 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 283.4 | (61.2 | ) | — | 222.2 | |||||||||||
Food and beverage | 58.1 | (16.6 | ) | — | 41.5 | |||||||||||
Room | 12.7 | (2.8 | ) | — | 9.9 | |||||||||||
Other | 29.2 | (7.8 | ) | — | 21.4 | |||||||||||
Selling, general and administrative | 116.4 | (37.4 | ) | — | 79.0 | |||||||||||
Maintenance and utilities | 40.4 | (14.9 | ) | — | 25.5 | |||||||||||
Depreciation and amortization | 69.1 | (14.3 | ) | — | 54.8 | |||||||||||
Corporate expense | 20.7 | — | — | 20.7 | ||||||||||||
Preopening expenses | 4.2 | (3.6 | ) | — | 0.6 | |||||||||||
Impairments of assets | 4.1 | — | — | 4.1 | ||||||||||||
Asset transactions costs | 3.3 | — | — | 3.3 | ||||||||||||
Other operating items, net | 0.8 | — | — | 0.8 | ||||||||||||
Total operating costs and expenses | 642.4 | (158.6 | ) | — | 483.8 | |||||||||||
Operating income from Borgata | — | — | (0.7 | ) | (0.7 | ) | ||||||||||
Operating income | 39.1 | 1.5 | (0.7 | ) | 39.9 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (0.4 | ) | — | — | (0.4 | ) | ||||||||||
Interest expense, net | 77.4 | (19.4 | ) | — | 58.0 | |||||||||||
Loss on early extinguishments of debt | 24.7 | (23.3 | ) | — | 1.4 | |||||||||||
Other, net | (1.8 | ) | — | — | (1.8 | ) | ||||||||||
Other non-operating expenses from Borgata, net | — | — | 19.5 | 19.5 | ||||||||||||
Total other expense, net | 99.9 | (42.7 | ) | 19.5 | 76.7 | |||||||||||
Income (loss) from continuing operations before taxes | (60.8 | ) | 44.2 | (20.2 | ) | (36.8 | ) | |||||||||
Income taxes | (6.8 | ) | (3.7 | ) | — | (10.5 | ) | |||||||||
Income (loss) from continuing operations, net of tax | (67.6 | ) | 40.5 | (20.2 | ) | (47.3 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | ||||||||||||
Net income (loss) | (67.6 | ) | 40.5 | (20.2 | ) | (47.3 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | 20.3 | — | (20.3 | ) | — | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (47.3 | ) | $ | 40.5 | $ | (40.5 | ) | $ | (47.3 | ) |
14
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Three Months Ended December 31, 2013 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.43 | ) | $ | (0.43 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Basic net income (loss) per common share | $ | (0.43 | ) | $ | (0.43 | ) | ||||||
Weighted average basic shares outstanding | 109.5 | 109.5 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.43 | ) | $ | (0.43 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Diluted net income (loss) per common share | $ | (0.43 | ) | $ | (0.43 | ) | ||||||
Weighted average diluted shares outstanding | 109.5 | 109.5 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
15
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Three Months Ended December 31, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 148.6 | $ | — | $ | — | $ | 148.6 | |||||||
Downtown Las Vegas | 59.8 | — | — | 59.8 | |||||||||||
Midwest and South | 196.1 | — | — | 196.1 | |||||||||||
Peninsula | 119.9 | — | — | 119.9 | |||||||||||
Borgata | 157.1 | (157.1 | ) | — | — | ||||||||||
Net revenues | $ | 681.5 | $ | (157.1 | ) | $ | — | $ | 524.4 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 33.2 | $ | — | $ | — | $ | 33.2 | |||||||
Downtown Las Vegas | 13.1 | — | — | 13.1 | |||||||||||
Midwest and South | 39.7 | — | — | 39.7 | |||||||||||
Peninsula | 41.0 | — | — | 41.0 | |||||||||||
Wholly owned property Adjusted EBITDA | 127.0 | — | — | 127.0 | |||||||||||
Corporate expense | (11.9 | ) | — | — | (11.9 | ) | |||||||||
Wholly owned Adjusted EBITDA | 115.1 | — | — | 115.1 | |||||||||||
Borgata | 16.4 | (16.4 | ) | 8.2 | 8.2 | ||||||||||
Adjusted EBITDA | 131.5 | (16.4 | ) | 8.2 | 123.3 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 1.0 | — | — | 1.0 | |||||||||||
Depreciation and amortization | 69.1 | (14.3 | ) | — | 54.8 | ||||||||||
Preopening expenses | 4.2 | (3.6 | ) | — | 0.6 | ||||||||||
Share-based compensation expense | 9.9 | — | — | 9.9 | |||||||||||
Impairments of assets | 4.1 | — | — | 4.1 | |||||||||||
Asset transactions costs | 3.3 | — | — | 3.3 | |||||||||||
Other operating charges and credits, net | 0.8 | — | — | 0.8 | |||||||||||
Our share of Borgata's other operating costs and expenses | — | — | 8.9 | 8.9 | |||||||||||
Total other operating costs and expenses | 92.4 | (17.9 | ) | 8.9 | 83.4 | ||||||||||
Operating income | 39.1 | 1.5 | (0.7 | ) | 39.9 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 77.0 | (19.4 | ) | — | 57.6 | ||||||||||
Loss on early extinguishments of debt | 24.7 | (23.3 | ) | — | 1.4 | ||||||||||
Other, net | (1.8 | ) | — | — | (1.8 | ) | |||||||||
Our share of Borgata's other non-operating expenses | — | — | 19.5 | 19.5 | |||||||||||
Total other non-operating items, net | 99.9 | (42.7 | ) | 19.5 | 76.7 | ||||||||||
Income (loss) from continuing operations before income taxes | (60.8 | ) | 44.2 | (20.2 | ) | (36.8 | ) | ||||||||
Income taxes | (6.8 | ) | (3.7 | ) | — | (10.5 | ) | ||||||||
Income (loss) from continuing operations, net of tax | (67.6 | ) | 40.5 | (20.2 | ) | (47.3 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income (loss) | (67.6 | ) | 40.5 | (20.2 | ) | (47.3 | ) | ||||||||
Net (income) loss attributable to noncontrolling interest | 20.3 | — | (20.3 | ) | — | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (47.3 | ) | $ | 40.5 | $ | (40.5 | ) | $ | (47.3 | ) |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
16
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Three Months Ended December 31, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (47.3 | ) | $ | 40.5 | $ | (40.5 | ) | $ | (47.3 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | (47.3 | ) | 40.5 | (40.5 | ) | (47.3 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.6 | — | — | 0.6 | |||||||||||
Loss on early extinguishments of debt | 1.4 | — | — | 1.4 | |||||||||||
Impairments of assets | 4.1 | — | — | 4.1 | |||||||||||
Asset transactions costs | 3.3 | — | — | 3.3 | |||||||||||
Adjustments to property tax accruals, net | (9.3 | ) | — | — | (9.3 | ) | |||||||||
Other operating charges and credits, net | 0.8 | — | — | 0.8 | |||||||||||
Other (income) loss | (1.5 | ) | — | — | (1.5 | ) | |||||||||
Our share of Borgata's pretax adjustments | — | — | 13.3 | 13.3 | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 3.6 | (3.6 | ) | — | — | ||||||||||
Loss on early extinguishments of debt | 23.3 | (23.3 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | (0.3 | ) | 0.3 | — | — | ||||||||||
Total adjustments | 26.0 | (26.6 | ) | 13.3 | 12.7 | ||||||||||
Income tax effect for above adjustments | 8.2 | 1.2 | (1.2 | ) | 8.2 | ||||||||||
Impact on noncontrolling interest, net | (13.3 | ) | 13.3 | — | — | ||||||||||
Adjusted earnings (loss) | $ | (26.4 | ) | $ | 28.4 | �� | $ | (28.4 | ) | $ | (26.4 | ) | |||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | (0.43 | ) | $ | 0.37 | $ | (0.37 | ) | $ | (0.43 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | (0.43 | ) | 0.37 | (0.37 | ) | (0.43 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.01 | — | — | 0.01 | |||||||||||
Loss on early extinguishments of debt | 0.01 | — | — | 0.01 | |||||||||||
Impairments of assets | 0.04 | — | — | 0.04 | |||||||||||
Asset transactions costs | 0.03 | — | — | 0.03 | |||||||||||
Adjustments to property tax accruals, net | (0.09 | ) | — | — | (0.09 | ) | |||||||||
Other operating charges and credits, net | 0.01 | — | — | 0.01 | |||||||||||
Other (income) loss | (0.02 | ) | — | — | (0.02 | ) | |||||||||
Our share of Borgata's pretax adjustments | — | — | 0.12 | 0.12 | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 0.03 | (0.03 | ) | — | — | ||||||||||
Loss on early extinguishments of debt | 0.21 | (0.21 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | — | — | — | — | |||||||||||
Total adjustments | 0.23 | (0.24 | ) | 0.12 | 0.11 | ||||||||||
Income tax effect for above adjustments | 0.08 | 0.01 | (0.01 | ) | 0.08 | ||||||||||
Impact on noncontrolling interest, net | (0.12 | ) | 0.12 | — | — | ||||||||||
Adjusted earnings (loss) per share | $ | (0.24 | ) | $ | 0.26 | $ | (0.26 | ) | $ | (0.24 | ) | ||||
Weighted average shares outstanding | 109.5 | 109.5 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
17
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 2,479.0 | $ | (615.7 | ) | $ | — | $ | 1,863.3 | |||||||
Food and beverage | 446.4 | (140.3 | ) | — | 306.1 | |||||||||||
Room | 265.4 | (115.1 | ) | — | 150.3 | |||||||||||
Other | 165.2 | (42.4 | ) | — | 122.8 | |||||||||||
Gross revenues | 3,356.0 | (913.5 | ) | — | 2,442.5 | |||||||||||
Less promotional allowances | 461.6 | (217.8 | ) | — | 243.8 | |||||||||||
Net revenues | 2,894.4 | (695.7 | ) | — | 2,198.7 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 1,170.8 | (249.4 | ) | — | 921.4 | |||||||||||
Food and beverage | 240.1 | (71.0 | ) | — | 169.1 | |||||||||||
Room | 54.3 | (12.9 | ) | — | 41.4 | |||||||||||
Other | 121.6 | (34.6 | ) | — | 87.0 | |||||||||||
Selling, general and administrative | 490.3 | (148.9 | ) | — | 341.4 | |||||||||||
Maintenance and utilities | 166.4 | (59.7 | ) | — | 106.7 | |||||||||||
Depreciation and amortization | 278.4 | (59.7 | ) | — | 218.7 | |||||||||||
Corporate expense | 63.2 | — | — | 63.2 | ||||||||||||
Preopening expenses | 9.0 | (4.1 | ) | — | 4.9 | |||||||||||
Impairments of assets | 10.4 | (5.0 | ) | — | 5.4 | |||||||||||
Asset transactions costs | 5.6 | (0.2 | ) | — | 5.4 | |||||||||||
Other operating items, net | 6.0 | (3.1 | ) | — | 2.9 | |||||||||||
Total operating costs and expenses | 2,616.1 | (648.6 | ) | — | 1,967.5 | |||||||||||
Operating income from Borgata | — | — | 23.5 | 23.5 | ||||||||||||
Operating income | 278.3 | (47.1 | ) | 23.5 | 254.7 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (2.1 | ) | — | — | (2.1 | ) | ||||||||||
Interest expense, net | 344.3 | (81.3 | ) | — | 263.0 | |||||||||||
Loss on early extinguishments of debt | 54.2 | (25.9 | ) | — | 28.3 | |||||||||||
Other, net | (2.1 | ) | — | — | (2.1 | ) | ||||||||||
Other non-operating expenses from Borgata, net | — | — | 51.4 | 51.4 | ||||||||||||
Total other expense, net | 394.3 | (107.2 | ) | 51.4 | 338.5 | |||||||||||
Income (loss) from continuing operations before taxes | (116.0 | ) | 60.1 | (27.9 | ) | (83.8 | ) | |||||||||
Income taxes | (3.4 | ) | (4.4 | ) | — | (7.8 | ) | |||||||||
Income (loss) from continuing operations, net of tax | (119.4 | ) | 55.7 | (27.9 | ) | (91.6 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | 10.8 | — | — | 10.8 | ||||||||||||
Net income (loss) | (108.6 | ) | 55.7 | (27.9 | ) | (80.8 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | 28.3 | — | (27.8 | ) | 0.5 | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (80.3 | ) | $ | 55.7 | $ | (55.7 | ) | $ | (80.3 | ) |
18
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Year Ended December 31, 2013 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.94 | ) | $ | (0.94 | ) | ||||||
Discontinued operations | 0.11 | 0.11 | ||||||||||
Basic net income (loss) per common share | $ | (0.83 | ) | $ | (0.83 | ) | ||||||
Weighted average basic shares outstanding | 97.2 | 97.2 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.94 | ) | $ | (0.94 | ) | ||||||
Discontinued operations | 0.11 | 0.11 | ||||||||||
Diluted net income (loss) per common share | $ | (0.83 | ) | $ | (0.83 | ) | ||||||
Weighted average diluted shares outstanding | 97.2 | 97.2 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
19
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 591.5 | $ | — | $ | — | $ | 591.5 | |||||||
Downtown Las Vegas | 222.7 | — | — | 222.7 | |||||||||||
Midwest and South | 864.2 | — | — | 864.2 | |||||||||||
Peninsula | 520.3 | — | — | 520.3 | |||||||||||
Borgata | 695.7 | (695.7 | ) | — | — | ||||||||||
Net revenues | $ | 2,894.4 | $ | (695.7 | ) | $ | — | $ | 2,198.7 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 137.5 | $ | — | $ | — | $ | 137.5 | |||||||
Downtown Las Vegas | 35.0 | — | — | 35.0 | |||||||||||
Midwest and South | 180.0 | — | — | 180.0 | |||||||||||
Peninsula | 185.3 | — | — | 185.3 | |||||||||||
Wholly owned property Adjusted EBITDA | 537.8 | — | — | 537.8 | |||||||||||
Corporate expense | (46.6 | ) | — | — | (46.6 | ) | |||||||||
Wholly owned Adjusted EBITDA | 491.2 | — | — | 491.2 | |||||||||||
Borgata | 119.2 | (119.2 | ) | 59.6 | 59.6 | ||||||||||
Adjusted EBITDA | 610.4 | (119.2 | ) | 59.6 | 550.8 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 3.8 | — | — | 3.8 | |||||||||||
Depreciation and amortization | 278.4 | (59.7 | ) | — | 218.7 | ||||||||||
Preopening expenses | 9.0 | (4.1 | ) | — | 4.9 | ||||||||||
Share-based compensation expense | 18.9 | — | — | 18.9 | |||||||||||
Impairments of assets | 10.4 | (5.0 | ) | — | 5.4 | ||||||||||
Asset transactions costs | 5.6 | (0.2 | ) | — | 5.4 | ||||||||||
Other operating charges and credits, net | 6.0 | (3.1 | ) | — | 2.9 | ||||||||||
Our share of Borgata's other operating costs and expenses | — | — | 36.1 | 36.1 | |||||||||||
Total other operating costs and expenses | 332.1 | (72.1 | ) | 36.1 | 296.1 | ||||||||||
Operating income | 278.3 | (47.1 | ) | 23.5 | 254.7 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 342.2 | (81.3 | ) | — | 260.9 | ||||||||||
Loss on early extinguishments of debt | 54.2 | (25.9 | ) | — | 28.3 | ||||||||||
Other, net | (2.1 | ) | — | — | (2.1 | ) | |||||||||
Our share of Borgata's other non-operating expenses | — | — | 51.4 | 51.4 | |||||||||||
Total other non-operating items, net | 394.3 | (107.2 | ) | 51.4 | 338.5 | ||||||||||
Income (loss) from continuing operations before income taxes | (116.0 | ) | 60.1 | (27.9 | ) | (83.8 | ) | ||||||||
Income taxes | (3.4 | ) | (4.4 | ) | — | (7.8 | ) | ||||||||
Income (loss) from continuing operations, net of tax | (119.4 | ) | 55.7 | (27.9 | ) | (91.6 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | 10.8 | — | — | 10.8 | |||||||||||
Net income (loss) | (108.6 | ) | 55.7 | (27.9 | ) | (80.8 | ) | ||||||||
Net (income) loss attributable to noncontrolling interest | 28.3 | — | (27.8 | ) | 0.5 | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (80.3 | ) | $ | 55.7 | $ | (55.7 | ) | $ | (80.3 | ) |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
20
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (80.3 | ) | $ | 55.7 | $ | (55.7 | ) | $ | (80.3 | ) | ||||
Less: income from discontinued operations, net of tax | (10.8 | ) | — | — | (10.8 | ) | |||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | (91.1 | ) | 55.7 | (55.7 | ) | (91.1 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 6.9 | — | — | 6.9 | |||||||||||
Loss on early extinguishments of debt | 28.3 | — | — | 28.3 | |||||||||||
Impairments of assets | 5.4 | — | — | 5.4 | |||||||||||
Asset transactions costs | 5.4 | — | — | 5.4 | |||||||||||
Adjustments to property tax accruals, net | (9.3 | ) | — | — | (9.3 | ) | |||||||||
Other operating charges and credits, net | 2.9 | — | — | 2.9 | |||||||||||
Other (income) loss | (2.3 | ) | — | — | (2.3 | ) | |||||||||
Our share of Borgata's pretax adjustments | — | — | 18.7 | 18.7 | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 4.1 | (4.1 | ) | — | — | ||||||||||
Loss on early extinguishments of debt | 25.9 | (25.9 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | (1.0 | ) | 1.0 | — | — | ||||||||||
Impairments of assets | 5.0 | (5.0 | ) | — | — | ||||||||||
Asset transactions costs | 0.2 | (0.2 | ) | — | — | ||||||||||
Other operating charges and credits, net | 3.1 | (3.1 | ) | — | — | ||||||||||
Total adjustments | 74.6 | (37.3 | ) | 18.7 | 56.0 | ||||||||||
Income tax effect for above adjustments | 1.8 | 1.7 | (1.7 | ) | 1.8 | ||||||||||
Impact on noncontrolling interest, net | (18.6 | ) | 18.6 | — | — | ||||||||||
Adjusted earnings (loss) | $ | (33.3 | ) | $ | 38.7 | $ | (38.7 | ) | $ | (33.3 | ) |
21
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Year Ended December 31, 2013 (Continued) | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | (0.83 | ) | $ | 0.57 | $ | (0.57 | ) | $ | (0.83 | ) | ||||
Less: income from discontinued operations, net of tax | (0.11 | ) | — | — | (0.11 | ) | |||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | (0.94 | ) | 0.57 | (0.57 | ) | (0.94 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.07 | — | — | 0.07 | |||||||||||
Loss on early extinguishments of debt | 0.29 | — | — | 0.29 | |||||||||||
Impairments of assets | 0.06 | — | — | 0.06 | |||||||||||
Asset transactions costs | 0.06 | — | — | 0.06 | |||||||||||
Adjustments to property tax accruals, net | (0.10 | ) | — | — | (0.10 | ) | |||||||||
Other operating charges and credits, net | 0.03 | — | — | 0.03 | |||||||||||
Other (income) loss | (0.02 | ) | — | — | (0.02 | ) | |||||||||
Our share of Borgata's pretax adjustments | — | — | 0.19 | 0.19 | |||||||||||
— | |||||||||||||||
Pretax adjustments related to Borgata: | — | ||||||||||||||
Preopening expenses | 0.04 | (0.04 | ) | — | — | ||||||||||
Loss on early extinguishments of debt | 0.27 | (0.27 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | (0.01 | ) | 0.01 | — | — | ||||||||||
Impairments of assets | 0.05 | (0.05 | ) | — | — | ||||||||||
Asset transactions costs | — | — | — | — | |||||||||||
Other operating charges and credits, net | 0.03 | (0.03 | ) | — | — | ||||||||||
Total adjustments | 0.77 | (0.38 | ) | 0.19 | 0.58 | ||||||||||
Income tax effect for above adjustments | 0.02 | 0.02 | (0.02 | ) | 0.02 | ||||||||||
Impact on noncontrolling interest, net | (0.19 | ) | 0.19 | — | — | ||||||||||
Adjusted earnings (loss) per share | $ | (0.34 | ) | $ | 0.40 | $ | (0.40 | ) | $ | (0.34 | ) | ||||
Weighted average shares outstanding | 97.2 | 97.2 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
22
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 608.8 | $ | (153.7 | ) | $ | — | $ | 455.1 | |||||||
Food and beverage | 106.6 | (31.1 | ) | — | 75.5 | |||||||||||
Room | 64.4 | (25.6 | ) | — | 38.8 | |||||||||||
Other | 38.9 | (8.5 | ) | — | 30.4 | |||||||||||
Gross revenues | 818.7 | (218.9 | ) | — | 599.8 | |||||||||||
Less promotional allowances | 110.4 | (51.6 | ) | — | 58.8 | |||||||||||
Net revenues | 708.3 | (167.3 | ) | — | 541.0 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 285.2 | (63.5 | ) | — | 221.7 | |||||||||||
Food and beverage | 57.3 | (15.7 | ) | — | 41.6 | |||||||||||
Room | 13.2 | (2.8 | ) | — | 10.4 | |||||||||||
Other | 27.8 | (6.5 | ) | — | 21.3 | |||||||||||
Selling, general and administrative | 124.5 | (41.3 | ) | — | 83.2 | |||||||||||
Maintenance and utilities | 43.3 | (17.0 | ) | — | 26.3 | |||||||||||
Depreciation and amortization | 66.2 | (13.9 | ) | — | 52.3 | |||||||||||
Corporate expense | 19.9 | — | — | 19.9 | ||||||||||||
Preopening expenses | 0.8 | — | — | 0.8 | ||||||||||||
Impairments of assets | 1.6 | — | — | 1.6 | ||||||||||||
Asset transactions costs | 0.2 | — | — | 0.2 | ||||||||||||
Other operating items, net | (0.2 | ) | 0.4 | — | 0.2 | |||||||||||
Total operating costs and expenses | 639.8 | (160.3 | ) | — | 479.5 | |||||||||||
Operating income from Borgata | — | — | 3.4 | 3.4 | ||||||||||||
Operating income | 68.5 | (7.0 | ) | 3.4 | 64.9 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (0.5 | ) | — | — | (0.5 | ) | ||||||||||
Interest expense, net | 75.5 | (17.7 | ) | — | 57.8 | |||||||||||
Loss on early extinguishments of debt | 0.2 | — | — | 0.2 | ||||||||||||
Other, net | (0.3 | ) | — | — | (0.3 | ) | ||||||||||
Other non-operating expenses from Borgata, net | — | — | 8.5 | 8.5 | ||||||||||||
Total other expense, net | 74.9 | (17.7 | ) | 8.5 | 65.7 | |||||||||||
Income (loss) from continuing operations before taxes | (6.4 | ) | 10.7 | (5.1 | ) | (0.8 | ) | |||||||||
Income taxes | (4.8 | ) | (0.6 | ) | — | (5.4 | ) | |||||||||
Income (loss) from continuing operations, net of tax | (11.2 | ) | 10.1 | (5.1 | ) | (6.2 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | ||||||||||||
Net income (loss) | (11.2 | ) | 10.1 | (5.1 | ) | (6.2 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | 5.0 | — | (5.0 | ) | — | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (6.2 | ) | $ | 10.1 | $ | (10.1 | ) | $ | (6.2 | ) |
23
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Three Months Ended March 31, 2014 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.06 | ) | $ | (0.06 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Basic net income (loss) per common share | $ | (0.06 | ) | $ | (0.06 | ) | ||||||
Weighted average basic shares outstanding | 109.8 | 109.8 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.06 | ) | $ | (0.06 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Diluted net income (loss) per common share | $ | (0.06 | ) | $ | (0.06 | ) | ||||||
Weighted average diluted shares outstanding | 109.8 | 109.8 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
24
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 151.4 | $ | — | $ | — | $ | 151.4 | |||||||
Downtown Las Vegas | 55.7 | — | — | 55.7 | |||||||||||
Midwest and South | 211.6 | — | — | 211.6 | |||||||||||
Peninsula | 122.3 | — | — | 122.3 | |||||||||||
Borgata | 167.3 | (167.3 | ) | — | — | ||||||||||
Net revenues | $ | 708.3 | $ | (167.3 | ) | $ | — | $ | 541.0 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 40.0 | $ | — | $ | — | $ | 40.0 | |||||||
Downtown Las Vegas | 9.3 | — | — | 9.3 | |||||||||||
Midwest and South | 44.1 | — | — | 44.1 | |||||||||||
Peninsula | 44.8 | — | — | 44.8 | |||||||||||
Wholly owned property Adjusted EBITDA | 138.2 | — | — | 138.2 | |||||||||||
Corporate expense | (14.2 | ) | — | — | (14.2 | ) | |||||||||
Wholly owned Adjusted EBITDA | 124.0 | — | — | 124.0 | |||||||||||
Borgata | 20.5 | (20.5 | ) | 10.2 | 10.2 | ||||||||||
Adjusted EBITDA | 144.5 | (20.5 | ) | 10.2 | 134.2 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 0.9 | — | — | 0.9 | |||||||||||
Depreciation and amortization | 66.2 | (13.9 | ) | — | 52.3 | ||||||||||
Preopening expenses | 0.8 | — | — | 0.8 | |||||||||||
Share-based compensation expense | 6.5 | — | — | 6.5 | |||||||||||
Impairments of assets | 1.6 | — | — | 1.6 | |||||||||||
Asset transactions costs | 0.2 | — | — | 0.2 | |||||||||||
Other operating charges and credits, net | (0.2 | ) | 0.4 | — | 0.2 | ||||||||||
Our share of Borgata's other operating costs and expenses | — | — | 6.8 | 6.8 | |||||||||||
Total other operating costs and expenses | 76.0 | (13.5 | ) | 6.8 | 69.3 | ||||||||||
Operating income | 68.5 | (7.0 | ) | 3.4 | 64.9 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 75.0 | (17.7 | ) | — | 57.3 | ||||||||||
Loss on early extinguishments of debt | 0.2 | — | — | 0.2 | |||||||||||
Other, net | (0.3 | ) | — | — | (0.3 | ) | |||||||||
Our share of Borgata's other non-operating expenses | — | — | 8.5 | 8.5 | |||||||||||
Total other non-operating items, net | 74.9 | (17.7 | ) | 8.5 | 65.7 | ||||||||||
Income (loss) from continuing operations before income taxes | (6.4 | ) | 10.7 | (5.1 | ) | (0.8 | ) | ||||||||
Income taxes | (4.8 | ) | (0.6 | ) | — | (5.4 | ) | ||||||||
Income (loss) from continuing operations, net of tax | (11.2 | ) | 10.1 | (5.1 | ) | (6.2 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income (loss) | (11.2 | ) | 10.1 | (5.1 | ) | (6.2 | ) | ||||||||
Net (income) loss attributable to noncontrolling interest | 5.0 | — | (5.0 | ) | — | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (6.2 | ) | $ | 10.1 | $ | (10.1 | ) | $ | (6.2 | ) |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
25
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (6.2 | ) | $ | 10.1 | $ | (10.1 | ) | $ | (6.2 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | (6.2 | ) | 10.1 | (10.1 | ) | (6.2 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.8 | — | — | 0.8 | |||||||||||
Loss on early extinguishments of debt | 0.2 | — | — | 0.2 | |||||||||||
Impairments of assets | 1.6 | — | — | 1.6 | |||||||||||
Asset transactions costs | 0.2 | — | — | 0.2 | |||||||||||
Other operating charges and credits, net | 0.2 | — | — | 0.2 | |||||||||||
Other (income) loss | (0.4 | ) | — | — | (0.4 | ) | |||||||||
Our share of Borgata's pretax adjustments | — | — | (0.5 | ) | (0.5 | ) | |||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Valuation adjustments related to consolidation, net | (0.6 | ) | 0.6 | — | — | ||||||||||
Other operating charges and credits, net | (0.4 | ) | 0.4 | — | — | ||||||||||
Total adjustments | 1.6 | 1.0 | (0.5 | ) | 2.1 | ||||||||||
Income tax effect for above adjustments | — | — | — | — | |||||||||||
Impact on noncontrolling interest, net | 0.5 | (0.5 | ) | — | — | ||||||||||
Adjusted earnings (loss) | $ | (4.1 | ) | $ | 10.6 | $ | (10.6 | ) | $ | (4.1 | ) | ||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | (0.06 | ) | $ | 0.09 | $ | (0.09 | ) | $ | (0.06 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | (0.06 | ) | 0.09 | (0.09 | ) | (0.06 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.01 | — | — | 0.01 | |||||||||||
Loss on early extinguishments of debt | — | — | — | — | |||||||||||
Impairments of assets | 0.01 | — | — | 0.01 | |||||||||||
Asset transactions costs | — | — | — | — | |||||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Other (income) loss | — | — | — | — | |||||||||||
Our share of Borgata's pretax adjustments | — | — | (0.01 | ) | (0.01 | ) | |||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Valuation adjustments related to consolidation, net | (0.01 | ) | 0.01 | — | — | ||||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Total adjustments | 0.01 | 0.01 | (0.01 | ) | 0.01 | ||||||||||
Income tax effect for above adjustments | — | — | — | — | |||||||||||
Impact on noncontrolling interest, net | 0.01 | — | — | 0.01 | |||||||||||
Adjusted earnings (loss) per share | $ | (0.04 | ) | $ | 0.10 | $ | (0.10 | ) | $ | (0.04 | ) | ||||
Weighted average shares outstanding | 109.8 | 109.8 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
26
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Three Months Ended June 30, 2014 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 618.9 | $ | (166.6 | ) | $ | — | $ | 452.3 | |||||||
Food and beverage | 110.4 | (34.1 | ) | — | 76.3 | |||||||||||
Room | 70.4 | (29.6 | ) | — | 40.8 | |||||||||||
Other | 41.1 | (10.3 | ) | — | 30.8 | |||||||||||
Gross revenues | 840.8 | (240.6 | ) | — | 600.2 | |||||||||||
Less promotional allowances | 118.3 | (58.7 | ) | — | 59.6 | |||||||||||
Net revenues | 722.5 | (181.9 | ) | — | 540.6 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 288.2 | (65.0 | ) | — | 223.2 | |||||||||||
Food and beverage | 61.2 | (18.2 | ) | — | 43.0 | |||||||||||
Room | 14.5 | (3.7 | ) | — | 10.8 | |||||||||||
Other | 30.4 | (8.6 | ) | — | 21.8 | |||||||||||
Selling, general and administrative | 111.3 | (28.7 | ) | — | 82.6 | |||||||||||
Maintenance and utilities | 43.0 | (15.1 | ) | — | 27.9 | |||||||||||
Depreciation and amortization | 65.9 | (14.1 | ) | — | 51.8 | |||||||||||
Corporate expense | 17.6 | — | — | 17.6 | ||||||||||||
Preopening expenses | 1.8 | (0.2 | ) | — | 1.6 | |||||||||||
Impairments of assets | 0.3 | — | — | 0.3 | ||||||||||||
Asset transactions costs | 1.9 | — | — | 1.9 | ||||||||||||
Other operating items, net | (0.6 | ) | — | — | (0.6 | ) | ||||||||||
Total operating costs and expenses | 635.5 | (153.6 | ) | — | 481.9 | |||||||||||
Operating income from Borgata | — | — | 14.1 | 14.1 | ||||||||||||
Operating income | 87.0 | (28.3 | ) | 14.1 | 72.8 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (0.5 | ) | — | — | (0.5 | ) | ||||||||||
Interest expense, net | 75.3 | (17.9 | ) | — | 57.4 | |||||||||||
Loss on early extinguishments of debt | 0.9 | — | — | 0.9 | ||||||||||||
Other, net | 0.7 | — | — | 0.7 | ||||||||||||
Other non-operating expenses from Borgata, net | — | — | 9.5 | 9.5 | ||||||||||||
Total other expense, net | 76.4 | (17.9 | ) | 9.5 | 68.0 | |||||||||||
Income (loss) from continuing operations before taxes | 10.6 | (10.4 | ) | 4.6 | 4.8 | |||||||||||
Income taxes | (5.2 | ) | 1.1 | — | (4.1 | ) | ||||||||||
Income (loss) from continuing operations, net of tax | 5.4 | (9.3 | ) | 4.6 | 0.7 | |||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | ||||||||||||
Net income (loss) | 5.4 | (9.3 | ) | 4.6 | 0.7 | |||||||||||
Net (income) loss attributable to noncontrolling interest | (4.7 | ) | — | 4.7 | — | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 0.7 | $ | (9.3 | ) | $ | 9.3 | $ | 0.7 |
27
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Three Months Ended June 30, 2014 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.1 | ) | $ | (0.1 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Basic net income (loss) per common share | $ | (0.1 | ) | $ | (0.1 | ) | ||||||
Weighted average basic shares outstanding | 109.9 | 109.9 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.1 | ) | $ | (0.1 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Diluted net income (loss) per common share | $ | (0.1 | ) | $ | (0.1 | ) | ||||||
Weighted average diluted shares outstanding | 110.8 | 110.8 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
28
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Three Months Ended June 30, 2014 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 148.3 | $ | — | $ | — | $ | 148.3 | |||||||
Downtown Las Vegas | 55.6 | — | — | 55.6 | |||||||||||
Midwest and South | 208.9 | — | — | 208.9 | |||||||||||
Peninsula | 127.8 | — | — | 127.8 | |||||||||||
Borgata | 181.9 | (181.9 | ) | — | — | ||||||||||
Net revenues | $ | 722.5 | $ | (181.9 | ) | $ | — | $ | 540.6 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 36.6 | $ | — | $ | — | $ | 36.6 | |||||||
Downtown Las Vegas | 8.6 | — | — | 8.6 | |||||||||||
Midwest and South | 42.1 | — | — | 42.1 | |||||||||||
Peninsula | 45.3 | — | — | 45.3 | |||||||||||
Wholly owned property Adjusted EBITDA | 132.6 | — | — | 132.6 | |||||||||||
Corporate expense | (14.6 | ) | — | — | (14.6 | ) | |||||||||
Wholly owned Adjusted EBITDA | 118.0 | — | — | 118.0 | |||||||||||
Borgata | 42.6 | (42.6 | ) | 21.3 | 21.3 | ||||||||||
Adjusted EBITDA | 160.6 | (42.6 | ) | 21.3 | 139.3 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 0.9 | — | — | 0.9 | |||||||||||
Depreciation and amortization | 65.9 | (14.1 | ) | — | 51.8 | ||||||||||
Preopening expenses | 1.8 | (0.2 | ) | — | 1.6 | ||||||||||
Share-based compensation expense | 3.4 | — | — | 3.4 | |||||||||||
Impairments of assets | 0.3 | — | — | 0.3 | |||||||||||
Asset transactions costs | 1.9 | — | — | 1.9 | |||||||||||
Other operating charges and credits, net | (0.6 | ) | — | — | (0.6 | ) | |||||||||
Our share of Borgata's other operating costs and expenses | — | — | 7.2 | 7.2 | |||||||||||
Total other operating costs and expenses | 73.6 | (14.3 | ) | 7.2 | 66.5 | ||||||||||
Operating income | 87.0 | (28.3 | ) | 14.1 | 72.8 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 74.8 | (17.9 | ) | — | 56.9 | ||||||||||
Loss on early extinguishments of debt | 0.9 | — | — | 0.9 | |||||||||||
Other, net | 0.7 | — | — | 0.7 | |||||||||||
Our share of Borgata's other non-operating expenses | — | — | 9.5 | 9.5 | |||||||||||
Total other non-operating items, net | 76.4 | (17.9 | ) | 9.5 | 68.0 | ||||||||||
Income (loss) from continuing operations before income taxes | 10.6 | (10.4 | ) | 4.6 | 4.8 | ||||||||||
Income taxes | (5.2 | ) | 1.1 | — | (4.1 | ) | |||||||||
Income (loss) from continuing operations, net of tax | 5.4 | (9.3 | ) | 4.6 | 0.7 | ||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income (loss) | 5.4 | (9.3 | ) | 4.6 | 0.7 | ||||||||||
Net (income) loss attributable to noncontrolling interest | (4.7 | ) | — | 4.7 | — | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 0.7 | $ | (9.3 | ) | $ | 9.3 | $ | 0.7 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
29
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Three Months Ended June 30, 2014 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | 0.7 | $ | (9.3 | ) | $ | 9.3 | $ | 0.7 | ||||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | 0.7 | (9.3 | ) | 9.3 | 0.7 | ||||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 1.6 | — | — | 1.6 | |||||||||||
Loss on early extinguishments of debt | 0.9 | — | — | 0.9 | |||||||||||
Impairments of assets | 0.3 | — | — | 0.3 | |||||||||||
Asset transactions costs | 1.9 | — | — | 1.9 | |||||||||||
Other operating charges and credits, net | (0.7 | ) | — | — | (0.7 | ) | |||||||||
Other (income) loss | 0.7 | — | — | 0.7 | |||||||||||
Our share of Borgata's pretax adjustments | — | — | (0.2 | ) | (0.2 | ) | |||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 0.2 | (0.2 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | (0.6 | ) | 0.6 | — | — | ||||||||||
Total adjustments | 4.3 | 0.4 | (0.2 | ) | 4.5 | ||||||||||
Income tax effect for above adjustments | — | — | — | — | |||||||||||
Impact on noncontrolling interest, net | 0.2 | (0.2 | ) | — | — | ||||||||||
Adjusted earnings (loss) | $ | 5.2 | $ | (9.1 | ) | $ | 9.1 | $ | 5.2 | ||||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | 0.01 | $ | (0.08 | ) | $ | 0.08 | $ | 0.01 | ||||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | 0.01 | (0.08 | ) | 0.08 | 0.01 | ||||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.01 | — | — | 0.01 | |||||||||||
Loss on early extinguishments of debt | 0.01 | — | — | 0.01 | |||||||||||
Impairments of assets | — | — | — | — | |||||||||||
Asset transactions costs | 0.02 | — | — | 0.02 | |||||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Other (income) loss | — | — | — | — | |||||||||||
Our share of Borgata's pretax adjustments | — | — | — | — | |||||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 0.01 | (0.01 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | (0.01 | ) | 0.01 | — | — | ||||||||||
Total adjustments | 0.04 | — | — | 0.04 | |||||||||||
Income tax effect for above adjustments | — | — | — | — | |||||||||||
Impact on noncontrolling interest, net | — | — | — | — | |||||||||||
Adjusted earnings (loss) per share | $ | 0.05 | $ | (0.08 | ) | $ | 0.08 | $ | 0.05 | ||||||
Weighted average shares outstanding | 109.9 | 109.9 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
30
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Three Months Ended September 30, 2014 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 631.7 | $ | (187.6 | ) | $ | — | $ | 444.1 | |||||||
Food and beverage | 115.1 | (39.7 | ) | — | 75.4 | |||||||||||
Room | 75.3 | (35.6 | ) | — | 39.7 | |||||||||||
Other | 44.4 | (13.1 | ) | — | 31.3 | |||||||||||
Gross revenues | 866.5 | (276.0 | ) | — | 590.5 | |||||||||||
Less promotional allowances | 127.7 | (66.0 | ) | — | 61.7 | |||||||||||
Net revenues | 738.8 | (210.0 | ) | — | 528.8 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 294.1 | (71.0 | ) | — | 223.1 | |||||||||||
Food and beverage | 61.5 | (19.7 | ) | — | 41.8 | |||||||||||
Room | 14.7 | (4.3 | ) | — | 10.4 | |||||||||||
Other | 33.6 | (10.9 | ) | — | 22.7 | |||||||||||
Selling, general and administrative | 113.2 | (32.1 | ) | — | 81.1 | |||||||||||
Maintenance and utilities | 45.1 | (15.1 | ) | — | 30.0 | |||||||||||
Depreciation and amortization | 66.2 | (14.1 | ) | — | 52.1 | |||||||||||
Corporate expense | 15.1 | — | — | 15.1 | ||||||||||||
Preopening expenses | 1.3 | — | — | 1.3 | ||||||||||||
Impairments of assets | 18.3 | — | — | 18.3 | ||||||||||||
Asset transactions costs | 3.1 | (0.4 | ) | — | 2.7 | |||||||||||
Other operating items, net | (1.1 | ) | 1.7 | — | 0.6 | |||||||||||
Total operating costs and expenses | 665.1 | (165.9 | ) | — | 499.2 | |||||||||||
Operating income from Borgata | — | — | 22.1 | 22.1 | ||||||||||||
Operating income | 73.7 | (44.1 | ) | 22.1 | 51.7 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (0.5 | ) | — | — | (0.5 | ) | ||||||||||
Interest expense, net | 75.4 | (17.8 | ) | — | 57.6 | |||||||||||
Loss on early extinguishments of debt | 0.1 | — | — | 0.1 | ||||||||||||
Other, net | 0.1 | — | — | 0.1 | ||||||||||||
Other non-operating expenses from Borgata, net | — | — | 10.3 | 10.3 | ||||||||||||
Total other expense, net | 75.1 | (17.8 | ) | 10.3 | 67.6 | |||||||||||
Income (loss) from continuing operations before taxes | (1.4 | ) | (26.3 | ) | 11.8 | (15.9 | ) | |||||||||
Income taxes | (1.9 | ) | 2.7 | — | 0.8 | |||||||||||
Income (loss) from continuing operations, net of tax | (3.3 | ) | (23.6 | ) | 11.8 | (15.1 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | ||||||||||||
Net income (loss) | (3.3 | ) | (23.6 | ) | 11.8 | (15.1 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | (11.8 | ) | — | 11.8 | — | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (15.1 | ) | $ | (23.6 | ) | $ | 23.6 | $ | (15.1 | ) |
31
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Three Months Ended September 30, 2014 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.14 | ) | $ | (0.14 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Basic net income (loss) per common share | $ | (0.14 | ) | $ | (0.14 | ) | ||||||
Weighted average basic shares outstanding | 109.9 | 109.9 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.14 | ) | $ | (0.14 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Diluted net income (loss) per common share | $ | (0.14 | ) | $ | (0.14 | ) | ||||||
Weighted average diluted shares outstanding | 109.9 | 109.9 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
32
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 141.2 | $ | — | $ | — | $ | 141.2 | |||||||
Downtown Las Vegas | 53.4 | — | — | 53.4 | |||||||||||
Midwest and South | 210.6 | — | — | 210.6 | |||||||||||
Peninsula | 123.6 | — | — | 123.6 | |||||||||||
Borgata | 210.0 | (210.0 | ) | — | — | ||||||||||
Net revenues | $ | 738.8 | $ | (210.0 | ) | $ | — | $ | 528.8 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 28.1 | $ | — | $ | — | $ | 28.1 | |||||||
Downtown Las Vegas | 6.3 | — | — | 6.3 | |||||||||||
Midwest and South | 43.6 | — | — | 43.6 | |||||||||||
Peninsula | 42.9 | — | — | 42.9 | |||||||||||
Wholly owned property Adjusted EBITDA | 120.9 | — | — | 120.9 | |||||||||||
Corporate expense | (13.8 | ) | — | — | (13.8 | ) | |||||||||
Wholly owned Adjusted EBITDA | 107.1 | — | — | 107.1 | |||||||||||
Borgata | 56.9 | (56.9 | ) | 28.5 | 28.5 | ||||||||||
Adjusted EBITDA | 164.0 | (56.9 | ) | 28.5 | 135.6 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 1.0 | — | — | 1.0 | |||||||||||
Depreciation and amortization | 66.2 | (14.1 | ) | — | 52.1 | ||||||||||
Preopening expenses | 1.3 | — | — | 1.3 | |||||||||||
Share-based compensation expense | 1.5 | — | — | 1.5 | |||||||||||
Impairments of assets | 18.3 | — | — | 18.3 | |||||||||||
Asset transactions costs | 3.1 | (0.4 | ) | — | 2.7 | ||||||||||
Other operating charges and credits, net | (1.1 | ) | 1.7 | — | 0.6 | ||||||||||
Our share of Borgata's other operating costs and expenses | — | — | 6.4 | 6.4 | |||||||||||
Total other operating costs and expenses | 90.3 | (12.8 | ) | 6.4 | 83.9 | ||||||||||
Operating income | 73.7 | (44.1 | ) | 22.1 | 51.7 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 74.9 | (17.8 | ) | — | 57.1 | ||||||||||
Loss on early extinguishments of debt | 0.1 | — | — | 0.1 | |||||||||||
Other, net | 0.1 | — | — | 0.1 | |||||||||||
Our share of Borgata's other non-operating expenses | — | — | 10.3 | 10.3 | |||||||||||
Total other non-operating items, net | 75.1 | (17.8 | ) | 10.3 | 67.6 | ||||||||||
Income (loss) from continuing operations before income taxes | (1.4 | ) | (26.3 | ) | 11.8 | (15.9 | ) | ||||||||
Income taxes | (1.9 | ) | 2.7 | — | 0.8 | ||||||||||
Income (loss) from continuing operations, net of tax | (3.3 | ) | (23.6 | ) | 11.8 | (15.1 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income (loss) | (3.3 | ) | (23.6 | ) | 11.8 | (15.1 | ) | ||||||||
Net (income) loss attributable to noncontrolling interest | (11.8 | ) | — | 11.8 | — | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (15.1 | ) | $ | (23.6 | ) | $ | 23.6 | $ | (15.1 | ) |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
33
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (15.1 | ) | $ | (23.6 | ) | $ | 23.6 | $ | (15.1 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | (15.1 | ) | (23.6 | ) | 23.6 | (15.1 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 1.3 | — | — | 1.3 | |||||||||||
Impairments of assets | 18.3 | — | — | 18.3 | |||||||||||
Asset transactions costs | 2.7 | — | — | 2.7 | |||||||||||
Other operating charges and credits, net | 0.6 | — | — | 0.6 | |||||||||||
Other (income) loss | 0.1 | — | — | 0.1 | |||||||||||
Our share of Borgata's pretax adjustments | — | — | (1.0 | ) | (1.0 | ) | |||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Valuation adjustments related to consolidation, net | (0.7 | ) | 0.7 | — | — | ||||||||||
Asset transactions costs | 0.4 | (0.4 | ) | — | — | ||||||||||
Other operating charges and credits, net | (1.7 | ) | 1.7 | — | — | ||||||||||
Total adjustments | 21.0 | 2.0 | (1.0 | ) | 22.0 | ||||||||||
Income tax effect for above adjustments | (6.6 | ) | (0.1 | ) | 0.1 | (6.6 | ) | ||||||||
Impact on noncontrolling interest, net | 1.0 | (1.0 | ) | — | — | ||||||||||
Adjusted earnings (loss) | $ | 0.3 | $ | (22.7 | ) | $ | 22.7 | $ | 0.3 | ||||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | (0.14 | ) | $ | (0.21 | ) | $ | 0.21 | $ | (0.14 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | (0.14 | ) | (0.21 | ) | 0.21 | (0.14 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.01 | — | — | 0.01 | |||||||||||
Impairments of assets | 0.17 | — | — | 0.17 | |||||||||||
Asset transactions costs | 0.03 | — | — | 0.03 | |||||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Other (income) loss | — | — | — | — | |||||||||||
Our share of Borgata's pretax adjustments | — | — | (0.01 | ) | (0.01 | ) | |||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Valuation adjustments related to consolidation, net | (0.01 | ) | 0.01 | — | — | ||||||||||
Asset transactions costs | — | — | — | — | |||||||||||
Other operating charges and credits, net | (0.01 | ) | 0.01 | — | — | ||||||||||
Total adjustments | 0.19 | 0.02 | (0.01 | ) | 0.20 | ||||||||||
Income tax effect for above adjustments | (0.06 | ) | — | — | (0.06 | ) | |||||||||
Impact on noncontrolling interest, net | 0.01 | (0.01 | ) | — | — | ||||||||||
Adjusted earnings (loss) per share | $ | — | $ | (0.20 | ) | $ | 0.20 | $ | — | ||||||
Weighted average shares outstanding | 110.8 | 110.8 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
34
Boyd Gaming Corporation and Subsidiaries | ||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||||||
REVENUES | ||||||||||||||||
Operating revenues | ||||||||||||||||
Gaming | $ | 1,859.3 | $ | (507.8 | ) | $ | — | $ | 1,351.5 | |||||||
Food and beverage | 332.1 | (104.8 | ) | — | 227.3 | |||||||||||
Room | 210.1 | (90.8 | ) | — | 119.3 | |||||||||||
Other | 124.5 | (32.0 | ) | — | 92.5 | |||||||||||
Gross revenues | 2,526.0 | (735.4 | ) | — | 1,790.6 | |||||||||||
Less promotional allowances | 356.3 | (176.3 | ) | — | 180.0 | |||||||||||
Net revenues | 2,169.7 | (559.1 | ) | — | 1,610.6 | |||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Gaming | 867.5 | (199.5 | ) | — | 668.0 | |||||||||||
Food and beverage | 180.0 | (53.7 | ) | — | 126.3 | |||||||||||
Room | 42.3 | (10.8 | ) | — | 31.5 | |||||||||||
Other | 91.7 | (26.1 | ) | — | 65.6 | |||||||||||
Selling, general and administrative | 349.6 | (101.9 | ) | — | 247.7 | |||||||||||
Maintenance and utilities | 131.3 | (47.2 | ) | — | 84.1 | |||||||||||
Depreciation and amortization | 198.2 | (42.1 | ) | — | 156.1 | |||||||||||
Corporate expense | 52.6 | — | — | 52.6 | ||||||||||||
Preopening expenses | 3.8 | (0.3 | ) | — | 3.5 | |||||||||||
Impairments of assets | 20.2 | — | — | 20.2 | ||||||||||||
Asset transactions costs | 5.1 | (0.4 | ) | — | 4.7 | |||||||||||
Other operating items, net | (1.9 | ) | 2.1 | — | 0.2 | |||||||||||
Total operating costs and expenses | 1,940.4 | (479.9 | ) | — | 1,460.5 | |||||||||||
Operating income from Borgata | — | — | 39.6 | 39.6 | ||||||||||||
Operating income | 229.3 | (79.2 | ) | 39.6 | 189.7 | |||||||||||
Other expense (income) | ||||||||||||||||
Interest income | (1.4 | ) | — | — | (1.4 | ) | ||||||||||
Interest expense, net | 226.2 | (53.3 | ) | — | 172.9 | |||||||||||
Loss on early extinguishments of debt | 1.1 | — | — | 1.1 | ||||||||||||
Other, net | 0.5 | — | — | 0.5 | ||||||||||||
Other non-operating expenses from Borgata, net | — | — | 28.2 | 28.2 | ||||||||||||
Total other expense, net | 226.4 | (53.3 | ) | 28.2 | 201.3 | |||||||||||
Income (loss) from continuing operations before taxes | 2.9 | (25.9 | ) | 11.4 | (11.6 | ) | ||||||||||
Income taxes | (12.1 | ) | 3.1 | — | (9.0 | ) | ||||||||||
Income (loss) from continuing operations, net of tax | (9.2 | ) | (22.8 | ) | 11.4 | (20.6 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | ||||||||||||
Net income (loss) | (9.2 | ) | (22.8 | ) | 11.4 | (20.6 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest | (11.4 | ) | — | 11.4 | — | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (20.6 | ) | $ | (22.8 | ) | $ | 22.8 | $ | (20.6 | ) |
35
Boyd Gaming Corporation and Subsidiaries | ||||||||||||
Pro Forma Condensed Consolidated Statement of Operations | ||||||||||||
For the Nine Months Ended September 30, 2014 (Continued) | ||||||||||||
(Unaudited) | ||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | |||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | |||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | ||||||||
Basic net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.19 | ) | $ | (0.19 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Basic net income (loss) per common share | $ | (0.19 | ) | $ | (0.19 | ) | ||||||
Weighted average basic shares outstanding | 109.9 | 109.9 | ||||||||||
Diluted net income (loss) per common share: | ||||||||||||
Continuing operations | $ | (0.19 | ) | $ | (0.19 | ) | ||||||
Discontinued operations | — | — | ||||||||||
Diluted net income (loss) per common share | $ | (0.19 | ) | $ | (0.19 | ) | ||||||
Weighted average diluted shares outstanding | 109.9 | 109.9 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
36
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Adjusted EBITDA to Operating Income (Loss) | |||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net Revenues by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 440.9 | $ | — | $ | — | $ | 440.9 | |||||||
Downtown Las Vegas | 164.7 | — | — | 164.7 | |||||||||||
Midwest and South | 631.4 | — | — | 631.4 | |||||||||||
Peninsula | 373.6 | — | — | 373.6 | |||||||||||
Borgata | 559.1 | (559.1 | ) | — | — | ||||||||||
Net revenues | $ | 2,169.7 | $ | (559.1 | ) | $ | — | $ | 1,610.6 | ||||||
Adjusted EBITDA by Reportable Segment | |||||||||||||||
Las Vegas Locals | $ | 104.6 | $ | — | $ | — | $ | 104.6 | |||||||
Downtown Las Vegas | 24.2 | — | — | 24.2 | |||||||||||
Midwest and South | 129.9 | — | — | 129.9 | |||||||||||
Peninsula | 132.9 | — | — | 132.9 | |||||||||||
Wholly owned property Adjusted EBITDA | 391.6 | — | — | 391.6 | |||||||||||
Corporate expense | (42.6 | ) | — | — | (42.6 | ) | |||||||||
Wholly owned Adjusted EBITDA | 349.0 | — | — | 349.0 | |||||||||||
Borgata | 119.9 | (119.9 | ) | 60.0 | 60.0 | ||||||||||
Adjusted EBITDA | 468.9 | (119.9 | ) | 60.0 | 409.0 | ||||||||||
Other operating costs and expenses | |||||||||||||||
Deferred rent | 2.8 | — | — | 2.8 | |||||||||||
Depreciation and amortization | 198.2 | (42.1 | ) | — | 156.1 | ||||||||||
Preopening expenses | 3.8 | (0.3 | ) | — | 3.5 | ||||||||||
Share-based compensation expense | 11.4 | — | — | 11.4 | |||||||||||
Impairments of assets | 20.2 | — | — | 20.2 | |||||||||||
Asset transactions costs | 5.1 | (0.4 | ) | — | 4.7 | ||||||||||
Other operating charges and credits, net | (1.9 | ) | 2.1 | — | 0.2 | ||||||||||
Our share of Borgata's other operating costs and expenses | — | — | 20.4 | 20.4 | |||||||||||
Total other operating costs and expenses | 239.6 | (40.7 | ) | 20.4 | 219.3 | ||||||||||
Operating income | 229.3 | (79.2 | ) | 39.6 | 189.7 | ||||||||||
Other non-operating items | |||||||||||||||
Interest expense, net | 224.8 | (53.3 | ) | — | 171.5 | ||||||||||
Loss on early extinguishments of debt | 1.1 | — | — | 1.1 | |||||||||||
Other, net | 0.5 | — | — | 0.5 | |||||||||||
Our share of Borgata's other non-operating expenses | — | — | 28.2 | 28.2 | |||||||||||
Total other non-operating items, net | 226.4 | (53.3 | ) | 28.2 | 201.3 | ||||||||||
Income (loss) from continuing operations before income taxes | 2.9 | (25.9 | ) | 11.4 | (11.6 | ) | |||||||||
Income taxes | (12.1 | ) | 3.1 | — | (9.0 | ) | |||||||||
Income (loss) from continuing operations, net of tax | (9.2 | ) | (22.8 | ) | 11.4 | (20.6 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income (loss) | (9.2 | ) | (22.8 | ) | 11.4 | (20.6 | ) | ||||||||
Net (income) loss attributable to noncontrolling interest | (11.4 | ) | — | 11.4 | — | ||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (20.6 | ) | $ | (22.8 | ) | $ | 22.8 | $ | (20.6 | ) |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
37
Boyd Gaming Corporation and Subsidiaries | |||||||||||||||
Pro Forma Condensed Consolidated Supplemental Information | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Earnings (Loss) and Net Income (Loss) | |||||||||||||||
Per Share to Adjusted Earnings (Loss) Per Share | |||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||
(Unaudited) | |||||||||||||||
Boyd | Pro Forma | Pro Forma | Boyd | ||||||||||||
Gaming | Deconsolidation | Equity Investment | Gaming | ||||||||||||
(In millions, except per share data) | Historical | of Borgata | in Borgata | As Adjusted | |||||||||||
Net income (loss) attributable to Boyd Gaming Corporation | $ | (20.6 | ) | $ | (22.8 | ) | $ | 22.8 | $ | (20.6 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) attributable to Boyd Gaming Corporation | (20.6 | ) | (22.8 | ) | 22.8 | (20.6 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 3.6 | — | — | 3.6 | |||||||||||
Loss on early extinguishments of debt | 1.1 | — | — | 1.1 | |||||||||||
Impairments of assets | 20.2 | — | — | 20.2 | |||||||||||
Asset transactions costs | 4.7 | — | — | 4.7 | |||||||||||
Other operating charges and credits, net | 0.2 | — | — | 0.2 | |||||||||||
Other (income) loss | 0.4 | — | — | 0.4 | |||||||||||
Our share of Borgata's pretax adjustments | — | — | (1.7 | ) | (1.7 | ) | |||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | 0.3 | (0.3 | ) | — | — | ||||||||||
Valuation adjustments related to consolidation, net | (2.0 | ) | 2.0 | — | — | ||||||||||
Asset transactions costs | 0.4 | (0.4 | ) | — | — | ||||||||||
Other operating charges and credits, net | (2.1 | ) | 2.1 | — | — | ||||||||||
Total adjustments | 26.8 | 3.4 | (1.7 | ) | 28.5 | ||||||||||
Income tax effect for above adjustments | (6.5 | ) | (0.2 | ) | 0.2 | (6.5 | ) | ||||||||
Impact on noncontrolling interest, net | 1.7 | (1.7 | ) | — | — | ||||||||||
Adjusted earnings (loss) | $ | 1.4 | $ | (21.3 | ) | $ | 21.3 | $ | 1.4 | ||||||
Net income (loss) per share attributable to Boyd Gaming Corporation | $ | (0.19 | ) | $ | (0.21 | ) | $ | 0.21 | $ | (0.19 | ) | ||||
Less: income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Adjusted net income (loss) per share attributable to Boyd Gaming Corporation | (0.19 | ) | (0.21 | ) | 0.21 | (0.19 | ) | ||||||||
Pretax adjustments related to Boyd Gaming: | |||||||||||||||
Preopening expenses, excluding impact of LVE | 0.03 | — | — | 0.03 | |||||||||||
Loss on early extinguishments of debt | 0.01 | — | — | 0.01 | |||||||||||
Impairments of assets | 0.19 | — | — | 0.19 | |||||||||||
Asset transactions costs | 0.05 | — | — | 0.05 | |||||||||||
Other operating charges and credits, net | — | — | — | — | |||||||||||
Other (income) loss | — | — | — | — | |||||||||||
Our share of Borgata's pretax adjustments | — | — | (0.02 | ) | (0.02 | ) | |||||||||
Pretax adjustments related to Borgata: | |||||||||||||||
Preopening expenses | — | — | — | — | |||||||||||
Valuation adjustments related to consolidation, net | (0.02 | ) | 0.02 | — | — | ||||||||||
Asset transactions costs | — | — | — | — | |||||||||||
Other operating charges and credits, net | (0.02 | ) | 0.02 | — | — | ||||||||||
Total adjustments | 0.24 | 0.04 | (0.02 | ) | 0.26 | ||||||||||
Income tax effect for above adjustments | (0.06 | ) | — | — | (0.06 | ) | |||||||||
Impact on noncontrolling interest, net | 0.02 | (0.02 | ) | — | — | ||||||||||
Adjusted earnings (loss) per share | $ | 0.01 | $ | (0.19 | ) | $ | 0.19 | $ | 0.01 | ||||||
Weighted average shares outstanding | 110.8 | 110.8 |
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Information.
38
Boyd Gaming Corporation and Subsidiaries
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
NOTE 1. BASIS OF PRESENTATION
Historical financial information for each period presented has been derived from Boyd’s historical financial statements.
NOTE 2. DECONSOLIDATION OF HOLDING COMPANY
On September 30, 2014, MGM reacquired its Borgata interest and its substantive participation rights in the management of Borgata. As a result, Boyd is deconsolidating Borgata and will account for its 50% equity investment in Borgata on the equity method.
NOTE 3. PRO FORMA ADJUSTMENTS
The pro forma adjustments reflect the equity pick-up by Boyd of its share of the operations of Borgata. The components of certain of those adjustments are as follows:
Boyd’s Share of Borgata’s Other Operating Costs and Expenses | |||||||||||||||
Nine Months | |||||||||||||||
Quarter ended | Ended | ||||||||||||||
March 31, | June 30, | September 30, | September 30, | ||||||||||||
(In millions) | 2014 | 2014 | 2014 | 2014 | |||||||||||
Depreciation and amortization | $ | 6.9 | $ | 7.1 | $ | 7.1 | $ | 21.1 | |||||||
Preopening expenses | — | 0.1 | — | 0.1 | |||||||||||
Asset transactions costs | — | — | 0.2 | 0.2 | |||||||||||
Other | (0.1 | ) | — | (0.9 | ) | (1.0 | ) | ||||||||
Total | $ | 6.8 | $ | 7.2 | $ | 6.4 | $ | 20.4 |
Quarter ended | Year Ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||
(In millions) | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||
Depreciation and amortization | $ | 7.8 | $ | 7.8 | $ | 7.2 | $ | 7.1 | $ | 29.9 | |||||||||
Preopening expenses | — | — | 0.2 | 1.8 | 2.0 | ||||||||||||||
Impairments of assets | — | 2.5 | — | — | 2.5 | ||||||||||||||
Asset transactions costs | 0.2 | — | (0.1 | ) | — | 0.1 | |||||||||||||
Other | — | — | 1.6 | — | 1.6 | ||||||||||||||
Total | $ | 8.0 | $ | 10.3 | $ | 8.9 | $ | 8.9 | $ | 36.1 |
39
Boyd Gaming Corporation and Subsidiaries
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
Boyd’s Share of Holding Company's Other Non-operating Expenses | |||||||||||||||
Nine Months | |||||||||||||||
Quarter ended | Ended | ||||||||||||||
March 31, | June 30, | September 30, | September 30, | ||||||||||||
(In millions) | 2014 | 2014 | 2014 | 2014 | |||||||||||
Interest expense, net | $ | 8.8 | $ | 8.9 | $ | 8.9 | $ | 26.6 | |||||||
Income taxes | (0.3 | ) | 0.6 | 1.4 | 1.6 | ||||||||||
Total | $ | 8.5 | $ | 9.5 | $ | 10.3 | $ | 28.2 |
Quarter ended | Year Ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||
(In millions) | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||
Interest expense, net | $ | 10.4 | $ | 10.4 | $ | 10.1 | $ | 9.7 | $ | 40.7 | |||||||||
Loss on early extinguishments of debt | — | — | 1.3 | 11.7 | 12.9 | ||||||||||||||
Income taxes | (0.3 | ) | (0.4 | ) | 0.4 | (1.9 | ) | (2.2 | ) | ||||||||||
Total | $ | 10.1 | $ | 10.0 | $ | 11.8 | $ | 19.5 | $ | 51.4 |
40