Boyd Gaming Reports Third-Quarter Results
Las Vegas Locals Posts EBITDA Gain for Third Consecutive Quarter
? Borgata Generates Strong Growth, Prepares for Launch of Online Gaming ?

 

 

LAS VEGAS, Oct. 31, 2013 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the third quarter ended September 30, 2013. 

(Logo:  http://photos.prnewswire.com/prnh/20030219/BOYDLOGO)

Boyd Gaming reported net revenues of $738.6 million, an increase of 20.6% from $612.4 million during the same quarter in 2012.  Total Adjusted EBITDA(1)  grew 49.9% to $155.3 million, compared to $103.6 million in the year-ago quarter.  Results reflect the addition of the operations of Peninsula Gaming, LLC, which was acquired by the Company on November 20, 2012.

Boyd Gaming's wholly-owned operations reported third-quarter 2013 net revenues of $538.5 million, up 26.6% from $425.3 million in the third quarter of 2012.  Wholly-owned Adjusted EBITDA was $108.7 million, an increase of 54.7% from $70.3 million in the third quarter of 2012.  Borgata, the Company's 50% joint venture, reported third-quarter 2013 net revenues of $200.1 million, up 6.9% from $187.1 million in the year-ago period, while Adjusted EBITDA rose 39.7% to $46.6 million, compared to $33.4 million in the third quarter of 2012.

Adjusted Earnings(1) for the third quarter 2013 reflect a loss of $8.3 million, or $0.08 per share, compared to a loss of $8.8 million, or $0.10 per share, for the same period in 2012.   The calculations of Adjusted Earnings and Adjusted Earnings per share are presented in a table at the end of this press release.

During the third quarter of 2013, Boyd Gaming replaced its credit facility with a new credit facility, redeemed its 7.125% Senior Subordinated Notes due 2016, and amended the Borgata credit facility.  These actions resulted in an aggregate pretax loss on early extinguishments of debt of $27.1 million. The loss is not included in Adjusted Earnings or Adjusted Earnings per share.

On a GAAP basis, the Company reported a net loss of $37.3 million, or $0.37 per share, for the third quarter 2013, compared to a net loss of $15.8 million, or $0.18 per share, for the year-ago period. Results for the prior-year period reflect the Dania Jai-Alai business as discontinued operations.  Dania Jai-Alai was sold during the second quarter of 2013.

"Our third-quarter performance fell below our expectations, as solid results in July and August were offset by significant weakness in September in many of our markets.  However, October year-over-year results have shown improvement in most of our operations," said Keith Smith, President and Chief Executive Officer of Boyd Gaming.  "Despite a challenging operating environment, we continued to make encouraging progress in many areas of our business.  Our Las Vegas Locals business grew EBITDA for the third consecutive quarter.  In New Jersey, Borgata generated strong results, and we are now finalizing preparations for real-money online gaming in that state.  And we further strengthened our balance sheet, bringing our Company's total debt reduction to more than $500 million so far this year."

(1) See footnotes at the end of the release for additional information relative to non-GAAP financial measures.

Year-To-Date Results

For the nine months ended September 30, 2013, Boyd Gaming reported net revenues of $2.21 billion, an increase of 19.1% from the $1.86 billion in net revenues reported in the year-ago period.  Total Adjusted EBITDA was $478.9 million, up 36.4% from $351.2 million in the prior year.

During the nine months ended September 30, 2013, the Company's wholly-owned operations generated net revenues of $1.67 billion, up 26.9% from $1.32 billion in the year-ago period, while wholly-owned Adjusted EBITDA increased 51.5% to $376.1 million, compared to $248.3 million in the comparable period 2012.  Borgata reported net revenues of $538.6 million and Adjusted EBITDA of $102.8 million during the nine-month period ended September 30, 2013.  Both revenues and Adjusted EBITDA at Borgata were essentially flat compared to the nine months ended September 30, 2012.

Adjusted Earnings for the nine months ended September 30, 2013, reflect a loss of $7.0 million, or $0.07 per share, compared to income of $4.6 million, or $0.05 per share, during the nine months ended September 30, 2012.

The Company reported a pretax loss from early extinguishments of debt of $29.5 million for the nine months ended September 30, 2013, as a result of its refinancing activities.  Discontinued operations for the first nine months of 2013 reflects income, net of tax, of $10.8 million, as compared to a loss of $2.1 million for the prior-year period.  The current year amount includes the gain from the second-quarter 2013 sale of the Dania business. These amounts are excluded from Adjusted Earnings and Adjusted Earnings per share.

On a GAAP basis, and including the discontinued operations, Boyd Gaming reported a net loss of $32.9 million, or $0.35 per share.  By comparison, the Company reported a net loss of $9.0 million, or $0.10 per share, for the nine months ended September 30, 2012.

Key Operations Review

Las Vegas Locals

In the Las Vegas Locals segment, third-quarter 2013 net revenues were $140.3 million, up 1.1% from $138.8 million in the third quarter of 2012.  Third-quarter 2013 Adjusted EBITDA rose 8.6% to $26.4 million, compared to $24.3 million in the year-ago period, as EBITDA grew for the third consecutive quarter.  Ongoing refinements to our business continued to drive revenue growth at our four Locals properties during the quarter.  We also benefited from efficiencies throughout our operations, as EBITDA margins improved 130 basis points year-over-year.

Downtown

The Downtown Las Vegas region reported net revenues of $52.7 million for the third quarter of 2013, down from $53.5 million in the year-ago period. Adjusted EBITDA was $5.5 million, compared to $6.4 million in the third quarter of 2012.  Weakness at the Fremont during September was primarily responsible for the EBITDA shortfall.  Business at the property was impacted by construction disruption in the Downtown area, which resulted in reduced visitation.

Midwest and South; Peninsula

In the Midwest and South segment, net revenues were $214.8 million, compared to $233.0 million in the third quarter of 2012.  Adjusted EBITDA was $41.9 million versus $48.7 million in the year-ago period.

During the third quarter 2013, the Peninsula segment contributed net revenues of $130.7 million, and Adjusted EBITDA of $45.3 million.

Solid performances at Diamond Jo Dubuque and Delta Downs were offset by declines at other properties in the region, particularly in September.  Our operations were impacted by soft economic conditions late in the quarter, as well as increased supply in certain markets.

Borgata

Borgata, the Company's 50% joint venture, reported third-quarter 2013 net revenues of $200.1 million, up 6.9% from $187.1 million in the year-ago period, while Adjusted EBITDA increased 39.7% to $46.6 million, compared to $33.4 million in the third quarter of 2012.   Borgata's market share rose 3 percentage points and EBITDA margins improved by 550 basis points, due largely to more normalized table hold as compared to the year-ago quarter.  Despite increased regional supply, Borgata's first-in-class amenities, service and effective marketing programs are providing a significant competitive advantage.

On October 9, Borgata received the first Internet Gaming Permit granted by the New Jersey Division of Gaming Enforcement.  Preparations are ongoing for the launch of our Borgata-branded online gaming site, and we remain on track to be among the first operators to offer real-money online gaming in New Jersey.

Conference Call Information

Boyd Gaming will host its third-quarter 2013 conference call today, October 31, at 12:00 p.m. Eastern, on which the Company will provide guidance for the fourth quarter 2013.  The conference call number is (888) 317-6003, passcode 1655358.  Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.

The conference call will also be available live on the Internet at www.boydgaming.com, or: http://www.videonewswire.com/event.asp?id=96604

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, October 31, beginning at 2:00 p.m. Eastern and continuing through Thursday, November 7, at 9 a.m. Eastern.  The conference number for the replay will be 10036018.  The replay will also be available on the Internet at www.boydgaming.com. 
 

                       

BOYD GAMING CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)

                       
                       
 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(In thousands, except per share data)

2013

 

2012

 

2013

 

2012

Revenues

             

    Gaming

$

633,237

 

$

516,206

 

$

1,893,722

 

$

1,564,760

    Food and beverage

114,397

 

106,658

 

338,975

 

317,876

    Room

72,299

 

69,964

 

203,308

 

205,589

    Other

43,808

 

38,911

 

125,017

 

110,416

Gross revenues

863,741

 

731,739

 

2,561,022

 

2,198,641

    Less promotional allowances

125,172

 

119,349

 

348,121

 

340,512

        Net revenues

738,569

 

612,390

 

2,212,901

 

1,858,129

               

Costs and expenses

             

    Gaming

302,373

 

252,300

 

887,436

 

739,242

    Food and beverage

57,655

 

54,920

 

181,950

 

169,129

    Room

12,556

 

13,605

 

41,611

 

43,671

    Other

33,056

 

29,947

 

92,429

 

82,643

    Selling, general and administrative

122,837

 

112,393

 

373,865

 

330,711

    Maintenance and utilities

45,735

 

37,929

 

125,986

 

115,924

    Depreciation and amortization

69,002

 

50,424

 

209,358

 

151,059

    Corporate expense

12,084

 

10,317

 

42,588

 

36,197

    Preopening expenses

1,675

 

1,618

 

4,829

 

5,488

    Impairments of assets

1,250

 

 

6,282

 

    Asset transactions costs

(1,362)

 

645

 

2,265

 

6,917

    Other operating charges and credits, net

3,386

 

(1,095)

 

5,181

 

(9,316)

        Total costs and expenses

660,247

 

563,003

 

1,973,780

 

1,671,665

Operating income

78,322

 

49,387

 

239,121

 

186,464

               

Other expense (income)

             

    Interest income

(553)

 

(272)

 

(1,779)

 

(684)

    Interest expense, net of amounts capitalized

83,145

 

74,115

 

266,953

 

202,731

    Loss on early extinguishments of debt

27,141

 

 

29,513

 

    Other, net

136

 

 

(335)

 

        Total other expense, net

109,869

 

73,843

 

294,352

 

202,047

               

Loss from continuing operations before income taxes

(31,547)

 

(24,456)

 

(55,231)

 

(15,583)

    Income taxes

(3,048)

 

8,050

 

3,478

 

6,427

Loss from continuing operations, net of tax

(34,595)

 

(16,406)

 

(51,753)

 

(9,156)

Income (loss) from discontinued operations, net of tax

 

(676)

 

10,790

 

(2,142)

Net income (loss)

(34,595)

 

(17,082)

 

(40,963)

 

(11,298)

    Net (income) loss attributable to noncontrolling interest

(2,672)

 

1,286

 

8,039

 

2,331

Net loss attributable to Boyd Gaming Corporation

$

(37,267)

 

$

(15,796)

 

$

(32,924)

 

$

(8,967)

               

Basic net loss per common share:

             

    Continuing operations

$

(0.37)

 

$

(0.17)

 

$

(0.47)

 

$

(0.08)

    Discontinued operations

 

(0.01)

 

0.12

 

(0.02)

        Basic net loss per common share

$

(0.37)

 

$

(0.18)

 

$

(0.35)

 

$

(0.10)

    Weighted average basic shares outstanding

101,555

 

87,643

 

93,122

 

87,587

               

Diluted net loss per common share:

             

    Continuing operations

$

(0.37)

 

$

(0.17)

 

$

(0.47)

 

$

(0.08)

    Discontinued operations

 

(0.01)

 

0.12

 

(0.02)

        Diluted net loss per common share

$

(0.37)

 

$

(0.18)

 

$

(0.35)

 

$

(0.10)

    Weighted average diluted shares outstanding

101,555

 

87,643

 

93,122

 

87,587

 

 

 

                                 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA to Operating Income (Loss)

(Unaudited)

                                 
                                 
   

Three Months Ended

 

Nine Months Ended

   

September 30,

 

September 30,

(In thousands)

 

2013

 

2012

 

2013

 

2012

Net revenues by Reportable Segment

               

    Las Vegas Locals

 

$

140,291

 

$

138,787

 

$

442,808

 

$

442,563

    Downtown Las Vegas

 

52,674

 

53,547

 

162,884

 

166,494

    Midwest and South

 

214,831

 

232,965

 

668,221

 

710,415

    Peninsula (1)

 

130,722

 

 

400,416

 

    Atlantic City

 

200,051

 

187,091

 

538,572

 

538,657

        Net revenues

 

$

738,569

 

$

612,390

 

$

2,212,901

 

$

1,858,129

                 

Adjusted EBITDA by Reportable Segment

               

    Las Vegas Locals

 

$

26,350

 

$

24,271

 

$

104,278

 

$

97,292

    Downtown Las Vegas

 

5,534

 

6,356

 

21,942

 

22,897

    Midwest and South

 

41,936

 

48,708

 

140,243

 

157,841

    Peninsula (1)

 

45,274

 

 

144,309

 

        Wholly owned property Adjusted EBITDA

 

119,094

 

79,335

 

410,772

 

278,030

    Corporate expense (2)

 

(10,409)

 

(9,082)

 

(34,675)

 

(29,756)

        Wholly owned Adjusted EBITDA

 

108,685

 

70,253

 

376,097

 

248,274

    Atlantic City

 

46,592

 

33,350

 

102,844

 

102,966

        Adjusted EBITDA

 

155,277

 

103,603

 

478,941

 

351,240

                 

Other operating costs and expenses

               

    Deferred rent

 

956

 

996

 

2,872

 

2,988

    Depreciation and amortization

 

69,002

 

50,424

 

209,358

 

151,059

    Preopening expenses

 

1,675

 

1,618

 

4,829

 

5,488

    Share-based compensation expense

 

2,048

 

1,607

 

9,033

 

7,560

    Impairments of assets

 

1,250

 

 

6,282

 

    Asset transactions costs

 

(1,362)

 

645

 

2,265

 

6,917

    Other operating charges and credits, net

 

3,386

 

(1,074)

 

5,181

 

(9,236)

        Total other operating costs and expenses

 

76,955

 

54,216

 

239,820

 

164,776

Operating income

 

78,322

 

49,387

 

239,121

 

186,464

Other non-operating items

               

    Interest expense, net

 

82,592

 

73,843

 

265,174

 

202,047

    Loss on early extinguishments of debt

 

27,141

 

 

29,513

 

    Other, net

 

136

 

 

(335)

 

        Total other non-operating items, net

 

109,869

 

73,843

 

294,352

 

202,047

Income (loss) from continuing operations before income taxes

 

(31,547)

 

(24,456)

 

(55,231)

 

(15,583)

    Income taxes

 

(3,048)

 

8,050

 

3,478

 

6,427

Income (loss) from continuing operations, net of tax

 

(34,595)

 

(16,406)

 

(51,753)

 

(9,156)

Income (loss) from discontinued operations, net of tax

 

 

(676)

 

10,790

 

(2,142)

Net income (loss)

 

(34,595)

 

(17,082)

 

(40,963)

 

(11,298)

    Net (income) loss attributable to noncontrolling interest

 

(2,672)

 

1,286

 

8,039

 

2,331

Net income (loss) attributable to Boyd Gaming Corporation

 

$

(37,267)

 

$

(15,796)

 

$

(32,924)

 

$

(8,967)

 

________________________________________________

(1) Peninsula Gaming was acquired on November 20, 2012.

(2) Reconciliation of corporate expense:

 

 
     
   

Three Months Ended

 

Nine Months Ended

   

September 30,

 

September 30,

(In thousands)

 

2013

 

2012

 

2013

 

2012

Corporate expense as reported on Condensed Consolidated Statements of Operations

 

$

12,084

 

$

10,317

 

$

42,588

 

$

36,197

Corporate share-based compensation expense

 

(1,675)

 

(1,235)

 

(7,913)

 

(6,441)

Corporate expense as reported on the above table

 

$

10,409

 

$

9,082

 

$

34,675

 

$

29,756

                         

 

 

 

                               

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliations of Net Income (Loss) to Adjusted Earnings (Loss) and

Net Income (Loss) Per Share to Adjusted Earnings (Loss) Per Share

(Unaudited)

                               
                               
 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(In thousands, except per share data)

2013

 

2012

 

2013

 

2012

Net income (loss) attributable to Boyd Gaming Corporation

$

(37,267)

 

$

(15,796)

 

$

(32,924)

 

$

(8,967)

Less: (income) loss from discontinued operations, net of tax (1)

 

676

 

(10,790)

 

2,142

Adjusted net income (loss) attributable to Boyd Gaming Corporation

(37,267)

 

(15,120)

 

(43,714)

 

(6,825)

    Pretax adjustments related to Boyd Gaming:

             

        Preopening expenses, excluding impact of LVE

1,259

 

4,342

 

6,295

 

13,420

        Loss on early extinguishments of debt

24,605

 

 

26,977

 

        Impairments of assets

1,250

 

 

1,250

 

        Asset transactions costs

(1,162)

 

645

 

2,058

 

6,917

        Adjustments to property tax accruals, net

 

(658)

 

 

(1,255)

        Other operating charges and credits, net

240

 

528

 

2,035

 

(5,505)

        Interest on acquisition financing

 

3,614

 

 

3,614

        Other non-operating expense (income)

 

 

(817)

 

               

    Pretax adjustments related to Borgata:

             

        Preopening expenses

416

 

 

470

 

240

        Loss on early extinguishments of debt

2,536

 

 

2,536

 

        Valuation adjustments related to consolidation, net

(181)

 

286

 

(683)

 

432

        Impairments of assets

 

 

5,032

 

        Asset transactions costs

(201)

 

 

205

 

        Other expense (income)

3,146

 

(1,623)

 

3,146

 

(3,811)

            Total adjustments

31,908

 

7,134

 

48,504

 

14,052

               

    Income tax effect for above adjustments

(33)

 

(1,454)

 

(6,401)

 

(4,170)

    Impact on noncontrolling interest, net

(2,859)

 

669

 

(5,355)

 

1,570

Adjusted earnings (loss)

$

(8,251)

 

$

(8,771)

 

$

(6,966)

 

$

4,627

               

Net income (loss) per share attributable to Boyd Gaming Corporation

$

(0.37)

 

$

(0.18)

 

$

(0.35)

 

$

(0.10)

Less: (income) loss from discontinued operations, net of tax (1)

 

0.01

 

(0.12)

 

0.02

Adjusted net income (loss) per share attributable to Boyd Gaming Corporation

(0.37)

 

(0.17)

 

(0.47)

 

(0.08)

    Pretax adjustments related to Boyd Gaming:

             

        Preopening expenses, excluding impact of LVE

0.01

 

0.05

 

0.07

 

0.15

        Loss on early extinguishments of debt

0.26

 

 

0.29

 

        Impairments of assets

0.01

 

 

0.01

 

        Asset transactions costs

(0.01)

 

0.01

 

0.02

 

0.08

        Adjustments to property tax accruals, net

 

(0.01)

 

 

(0.01)

        Other operating charges and credits, net

 

0.01

 

0.02

 

(0.06)

        Interest on acquisition financing

 

0.04

 

 

0.04

        Other non-operating expense (income)

 

 

(0.01)

 

               

Pretax adjustments related to Borgata:

             

        Preopening expenses

 

 

0.01

 

        Loss on early extinguishments of debt

0.02

 

 

0.03

 

        Valuation adjustments related to consolidation, net

 

 

(0.01)

 

        Impairments of assets

 

 

0.05

 

        Asset transactions costs

 

 

 

        Other expense (income)

0.03

 

(0.02)

 

0.04

 

(0.04)

            Total adjustments

0.32

 

0.08

 

0.52

 

0.16

               

    Income tax effect for above adjustments

 

(0.02)

 

(0.07)

 

(0.05)

    Impact on noncontrolling interest, net

(0.03)

 

0.01

 

(0.05)

 

0.02

Adjusted earnings (loss) per share

$

(0.08)

 

$

(0.10)

 

$

(0.07)

 

$

0.05

               

Weighted average shares outstanding

101,555

 

87,643

 

93,122

 

87,824

 

____________________________________________________

(1) Results from all periods are adjusted to exclude the financial results of Dania Jai-Alai, which was sold during the second quarter of 2013.

 

 

 

 

 
 
 
 
                                             

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2013

(Unaudited)

                           
     

Boyd Gaming Wholly Owned

           

(In thousands, except per share data)

 

Excluding

Peninsula

Segment

 

Peninsula

Segment

 

Eliminations

 

Total

 

Borgata (1)

 

Eliminations

 

Boyd Gaming

Consolidated

Revenues

                           
 

Gaming

 

$

334,874

 

$

121,383

 

$

 

$

456,257

 

$

176,980

 

$

 

$

633,237

 

Food and beverage

 

65,485

 

9,759

 

 

75,244

 

39,153

 

 

114,397

 

Room

 

38,318

 

 

 

38,318

 

33,981

 

 

72,299

 

Other

 

30,248

 

5,148

 

(4,884)

 

30,512

 

13,296

 

 

43,808

Gross revenues

 

468,925

 

136,290

 

(4,884)

 

600,331

 

263,410

 

 

863,741

 

Less promotional allowances

 

56,245

 

5,568

 

 

61,813

 

63,359

 

 

125,172

 

    Net revenues

 

412,680

 

130,722

 

(4,884)

 

538,518

 

200,051

 

 

738,569

                               

Costs and expenses

                           
 

Gaming

 

173,087

 

57,480

 

 

230,567

 

71,806

 

 

302,373

 

Food and beverage

 

34,940

 

6,627

 

 

41,567

 

16,088

 

 

57,655

 

Room

 

10,592

 

 

 

10,592

 

1,964

 

 

12,556

 

Other

 

18,232

 

8,993

 

(4,884)

 

22,341

 

10,715

 

 

33,056

 

Selling, general and administrative

 

72,380

 

13,627

 

 

86,007

 

36,830

 

 

122,837

 

Maintenance and utilities

 

26,073

 

3,605

 

 

29,678

 

16,057

 

 

45,735

 

Depreciation and amortization

 

32,455

 

22,210

 

 

54,665

 

14,337

 

 

69,002

 

Corporate expense

 

11,850

 

234

 

 

12,084

 

 

 

12,084

 

Preopening expenses

 

1,260

 

 

 

1,260

 

415

 

 

1,675

 

Impairments of assets

 

1,250

 

 

 

1,250

 

 

 

1,250

 

Asset transactions costs

 

(1,296)

 

133

 

 

(1,163)

 

(199)

 

 

(1,362)

 

Other, net

 

178

 

62

 

 

240

 

3,146

 

 

3,386

 

    Total costs and expenses

 

381,001

 

112,971

 

(4,884)

 

489,088

 

171,159

 

 

660,247

                               

Operating income from Borgata

 

14,446

 

 

 

14,446

 

 

(14,446)

 

                             

Operating income (loss)

 

46,125

 

17,751

 

 

63,876

 

28,892

 

(14,446)

 

78,322

                               

Other expense (income)

                           
 

Interest income

 

 

(553)

 

 

(553)

 

 

 

(553)

 

Interest expense, net of amounts capitalized

 

42,956

 

19,908

 

 

62,864

 

20,281

 

 

83,145

 

Loss on early extinguishments of debt

 

24,605

 

 

 

24,605

 

2,536

 

 

27,141

 

Other income

 

87

 

49

 

 

136

 

 

 

136

 

Other non-operating expenses from Borgata, net

 

11,775

 

 

 

11,775

 

 

(11,775)

 

 

    Total other expense, net

 

79,423

 

19,404

 

 

98,827

 

22,817

 

(11,775)

 

109,869

                               

Income (loss) from continuing operations before income taxes

 

(33,298)

 

(1,653)

 

 

(34,951)

 

6,075

 

(2,671)

 

(31,547)

 

Income taxes

 

1,052

 

(3,368)

 

 

(2,316)

 

(732)

 

 

(3,048)

Income (loss) from continuing operations, net of tax

 

(32,246)

 

(5,021)

 

 

(37,267)

 

5,343

 

(2,671)

 

(34,595)

Income (loss) from discontinued operations, net of tax

 

 

 

 

 

 

 

Net income (loss)

 

(32,246)

 

(5,021)

 

 

(37,267)

 

5,343

 

(2,671)

 

(34,595)

 

Net (income) loss attributable to noncontrolling interest

 

 

 

 

 

 

(2,672)

 

(2,672)

Net income (loss) attributable to Boyd Gaming Corporation

 

$

(32,246)

 

$

(5,021)

 

$

 

$

(37,267)

 

$

5,343

 

$

(5,343)

 

$

(37,267)

                               

 

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2013

(Unaudited)

                               
     

Boyd Gaming Wholly Owned

           

(In thousands, except per share data)

 

Excluding

Peninsula

Segment

 

Peninsula

Segment

 

Eliminations

 

Total

 

Borgata (1)

 

Eliminations

 

Boyd Gaming

Consolidated

Basic net loss per common share

                           
 

Continuing operations

             

$

(0.37)

         

$

(0.37)

 

Discontinued operations

             

         

 

    Basic net loss per common share

             

$

(0.37)

         

$

(0.37)

 

Weighted average basic shares outstanding

             

101,555

         

101,555

                               

Diluted net loss per common share

                           
 

Continuing operations

             

$

(0.37)

         

$

(0.37)

 

Discontinued operations

             

         

 

    Diluted net loss per common share

             

$

(0.37)

         

$

(0.37)

 

Weighted average diluted shares outstanding

             

101,555

         

101,555

                               

 

__________________________________________________

(1)

 

Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

 

 

 

 

 

 

 
                                 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2012

(Unaudited)

                     

(In thousands, except per share data)

 

Boyd Gaming

Wholly

Owned

 

Borgata (1)

 

LVE

(Variable

Interest

Entity)

 

Eliminations

 

Boyd

Gaming

Consolidated

Revenues

                   
 

Gaming

 

$

353,846

 

$

162,360

 

$

 

$

 

$

516,206

 

Food and beverage

 

66,424

 

40,234

 

 

 

106,658

 

Room

 

35,744

 

34,220

 

 

 

69,964

 

Other

 

26,102

 

12,809

 

2,724

 

(2,724)

 

38,911

Gross revenues

 

482,116

 

249,623

 

2,724

 

(2,724)

 

731,739

 

Less promotional allowances

 

56,817

 

62,532

 

 

 

119,349

 

    Net revenues

 

425,299

 

187,091

 

2,724

 

(2,724)

 

612,390

                       

Costs and expenses

                   
 

Gaming

 

184,708

 

67,592

 

 

 

252,300

 

Food and beverage

 

35,176

 

19,744

 

 

 

54,920

 

Room

 

9,615

 

3,990

 

 

 

13,605

 

Other

 

18,917

 

11,030

 

 

 

29,947

 

Selling, general and administrative

 

76,919

 

35,470

 

4

 

 

112,393

 

Maintenance and utilities

 

22,015

 

15,914

 

 

 

37,929

 

Depreciation and amortization

 

34,116

 

16,308

 

 

 

50,424

 

Corporate expense

 

10,317

 

 

 

 

10,317

 

Preopening expenses

 

4,342

 

 

 

(2,724)

 

1,618

 

Asset transactions costs

 

587

 

58

 

 

 

645

 

Other, net

 

587

 

(1,682)

 

 

 

(1,095)

 

    Total costs and expenses

 

397,299

 

168,424

 

4

 

(2,724)

 

563,003

                       

Operating income from Borgata

 

9,333

 

 

 

(9,333)

 

                       

Operating income (loss)

 

37,333

 

18,667

 

2,720

 

(9,333)

 

49,387

                       

Other expense (income)

                     
 

Interest income

 

(272)

 

 

 

 

(272)

 

Interest expense, net of amounts capitalized

 

50,379

 

20,755

 

2,981

 

 

74,115

 

Other non-operating expenses from Borgata, net

 

10,359

 

 

 

(10,359)

 

 

    Total other expense, net

 

60,466

 

20,755

 

2,981

 

(10,359)

 

73,843

                       

Income (loss) from continuing operations, before income taxes

 

(23,133)

 

(2,088)

 

(261)

 

1,026

 

(24,456)

 

Income taxes

 

8,013

 

37

 

 

 

8,050

Income (loss) from continuing operations, net of tax

 

(15,120)

 

(2,051)

 

(261)

 

1,026

 

(16,406)

Income (loss) from discontinued operations, net of tax

 

(676)

 

 

 

 

(676)

Net income (loss)

 

(15,796)

 

(2,051)

 

(261)

 

1,026

 

(17,082)

 

Net income (loss) attributable to noncontrolling interest

 

 

 

261

 

1,025

 

1,286

Net income (loss) attributable to Boyd Gaming Corporation

 

$

(15,796)

 

$

(2,051)

 

$

 

$

2,051

 

$

(15,796)

                   

 

 

 
                               

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2012

(Unaudited)

                     

(In thousands, except per share data)

 

Boyd

Gaming

Wholly

Owned

 

Borgata (1)

 

LVE

(Variable

Interest

Entity)

 

Eliminations

 

Boyd

Gaming

Consolidated

Basic net loss per common share

                   
 

Continuing operations

 

$

(0.17)

             

$

(0.17)

 

Discontinued operations

 

(0.01)

             

(0.01)

 

    Basic net loss per common share

 

$

(0.18)

             

$

(0.18)

 

Weighted average basic shares outstanding

 

87,643

             

87,643

                       

Diluted net loss per common share

                   
 

Continuing operations

 

$

(0.17)

             

$

(0.17)

 

Discontinued operations

 

(0.01)

             

(0.01)

 

    Diluted net loss per common share

 

$

(0.18)

             

$

(0.18)

 

Weighted average diluted shares outstanding

 

87,643

             

87,643

 

 

__________________________________________________________

(1) Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

 

 

 

 
                                                   

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2013

(Unaudited)

     

Boyd Gaming Wholly Owned

               

(In thousands, except per share data)

 

Excluding

Peninsula

Segment

 

 

Peninsula

Segment

 

Eliminations

 

Total

 

Borgata (1)

 

LVE

(Variable

Interest

Entity) (2)

 

Eliminations

 

Boyd Gaming

Consolidated

Revenues

                               
 

Gaming

 

$

1,047,770

 

$

373,910

 

$

 

$

1,421,680

 

$

472,042

 

$

 

$

 

$

1,893,722

 

Food and beverage

 

201,240

 

29,524

 

 

230,764

 

108,211

 

 

 

338,975

 

Room

 

114,178

 

 

 

114,178

 

89,130

 

 

 

203,308

 

Other

 

93,427

 

13,415

 

(15,162)

 

91,680

 

33,337

 

1,933

 

(1,933)

 

125,017

Gross revenues

 

1,456,615

 

416,849

 

(15,162)

 

1,858,302

 

702,720

 

1,933

 

(1,933)

 

2,561,022

 

Less promotional allowances

 

167,541

 

16,432

 

 

183,973

 

164,148

 

 

 

348,121

 

    Net revenues

 

1,289,074

 

400,417

 

(15,162)

 

1,674,329

 

538,572

 

1,933

 

(1,933)

 

2,212,901

                                     

Costs and expenses

                               
 

Gaming

 

525,254

 

174,038

 

 

699,292

 

188,144

 

 

 

887,436

 

Food and beverage

 

107,334

 

20,141

 

 

127,475

 

54,475

 

 

 

181,950

 

Room

 

31,444

 

 

 

31,444

 

10,167

 

 

 

41,611

 

Other

 

55,895

 

24,806

 

(15,162)

 

65,539

 

26,890

 

 

 

92,429

 

Selling, general and administrative

 

220,277

 

42,361

 

 

262,638

 

111,227

 

 

 

373,865

 

Maintenance and utilities

 

71,235

 

9,925

 

 

81,160

 

44,826

 

 

 

125,986

 

Depreciation and amortization

 

97,737

 

66,173

 

 

163,910

 

45,448

 

 

 

209,358

 

Corporate expense

 

40,487

 

2,101

 

 

42,588

 

 

 

 

42,588

 

Preopening expenses

 

6,202

 

91

 

 

6,293

 

469

 

 

(1,933)

 

4,829

 

Impairments of assets

 

1,250

 

 

 

1,250

 

5,032

 

 

 

6,282

 

Asset transactions costs

 

1,768

 

292

 

 

2,060

 

205

 

 

 

2,265

 

Other, net

 

1,836

 

199

 

 

2,035

 

3,146

 

 

 

5,181

 

    Total costs and expenses

 

1,160,719

 

340,127

 

(15,162)

 

1,485,684

 

490,029

 

 

(1,933)

 

1,973,780

                                   

Operating income from Borgata

 

24,271

 

 

 

24,271

 

 

 

(24,271)

 

                               

Operating income (loss)

 

152,626

 

60,290

 

 

212,916

 

48,543

 

1,933

 

(24,271)

 

239,121

                                   

Other expense (income)

                               
 

Interest income

 

(145)

 

(1,634)

 

 

(1,779)

 

 

 

 

(1,779)

 

Interest expense, net of amounts capitalized

 

139,570

 

63,107

 

 

202,677

 

61,899

 

2,377

 

 

266,953

 

Loss on early extinguishments of debt

 

25,001

 

1,976

 

 

26,977

 

2,536

 

 

 

29,513

 

Other income (expense)

 

(729)

 

394

 

 

(335)

 

 

 

 

(335)

 

Other non-operating expenses from Borgata, net

 

31,867

 

 

 

31,867

 

 

 

(31,867)

 

 

    Total other expense, net

 

195,564

 

63,843

 

 

259,407

 

64,435

 

2,377

 

(31,867)

 

294,352

                                   

Income (loss) from continuing operations before income taxes

 

(42,938)

 

(3,553)

 

 

(46,491)

 

(15,892)

 

(444)

 

7,596

 

(55,231)

 

Income taxes

 

13,036

 

(10,259)

 

 

2,777

 

701

 

 

 

3,478

Income (loss) from continuing operations, net of tax

 

(29,902)

 

(13,812)

 

 

(43,714)

 

(15,191)

 

(444)

 

7,596

 

(51,753)

Income (loss) from discontinued operations, net of tax

 

10,790

 

 

 

10,790

 

 

 

 

10,790

Net income (loss)

 

(19,112)

 

(13,812)

 

 

(32,924)

 

(15,191)

 

(444)

 

7,596

 

(40,963)

 

Net (income) loss attributable to noncontrolling interest

 

 

 

 

 

 

444

 

7,595

 

8,039

Net income (loss) attributable to Boyd Gaming Corporation

 

$

(19,112)

 

$

(13,812)

 

$

 

$

(32,924)

 

$

(15,191)

 

$

 

$

15,191

 

$

(32,924)


 


 

                                   

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2013

(Unaudited)

                       
     

Boyd Gaming Wholly Owned

               

(In thousands, except per share data)

 

Excluding

Peninsula

Segment

 

Peninsula

Segment

 

Eliminations

 

Total

 

Borgata (1)

 

LVE

(Variable

Entity) (2)

 

Eliminations

 

Boyd Gaming

Consolidated

Basic net income (loss) per common share

                               
 

Continuing operations

             

$

(0.47)

           

$

(0.47)

 

Discontinued operations

             

0.12

           

0.12

 

    Basic net loss per common share

             

$

(0.35)

           

$

(0.35)

 

Weighted average basic shares outstanding

             

93,122

           

93,122

                                   

Diluted net income (loss) per

  common share

                               
 

Continuing operations

             

$

(0.47)

           

$

(0.47)

 

Discontinued operations

             

0.12

           

0.12

 

    Diluted net loss per common share

             

$

(0.35)

           

$

(0.35)

 

Weighted average diluted shares outstanding

             

93,122

           

93,122

                                   

 

   

__________________________________________________

(1)

Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

   

(2)

Boyd Gaming's contractual agreements with LVE were terminated on March 4, 2013, in connection with the sale of the Echelon development site. As a result, Boyd Gaming ceased consolidation of LVE as of that date. The financial results presented for LVE include only that portion of the period that the variable interest entity was consolidated by Boyd Gaming.

 

 

 

 

 
                                 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2012

(Unaudited)

                     

(In thousands, except per share data)

 

Boyd

Gaming

Wholly

Owned

 

Borgata (1)

 

LVE

(Variable

Interest

Entity)

 

Eliminations

 

Boyd

Gaming

Consolidated

Revenues

                   
 

Gaming

 

$

1,094,475

 

$

470,285

 

$

 

$

 

$

1,564,760

 

Food and beverage

 

205,526

 

112,350

 

 

 

317,876

 

Room

 

114,541

 

91,048

 

 

 

205,589

 

Other

 

78,869

 

31,547

 

8,172

 

(8,172)

 

110,416

Gross revenues

 

1,493,411

 

705,230

 

8,172

 

(8,172)

 

2,198,641

 

Less promotional allowances

 

173,939

 

166,573

 

 

 

340,512

 

    Net revenues

 

1,319,472

 

538,657

 

8,172

 

(8,172)

 

1,858,129

                       

Costs and expenses

                   
 

Gaming

 

544,017

 

195,225

 

 

 

739,242

 

Food and beverage

 

112,596

 

56,533

 

 

 

169,129

 

Room

 

32,727

 

10,944

 

 

 

43,671

 

Other

 

57,298

 

25,345

 

 

 

82,643

 

Selling, general and administrative

 

227,699

 

102,999

 

13

 

 

330,711

 

Maintenance and utilities

 

71,280

 

44,644

 

 

 

115,924

 

Depreciation and amortization

 

103,607

 

47,452

 

 

 

151,059

 

Corporate expense

 

36,197

 

 

 

 

36,197

 

Preopening expenses

 

13,420

 

240

 

 

(8,172)

 

5,488

 

Asset transactions costs

 

6,917

 

 

 

 

6,917

 

Other, net

 

(5,504)

 

(3,812)

 

 

 

(9,316)

 

    Total costs and expenses

 

1,200,254

 

479,570

 

13

 

(8,172)

 

1,671,665

                       

Operating income from Borgata

 

29,543

 

 

 

(29,543)

 

                     

Operating income (loss)

 

148,761

 

59,087

 

8,159

 

(29,543)

 

186,464

                     

Other expense (income)

                   
 

Interest income

 

(684)

 

 

 

 

(684)

 

Interest expense, net of amounts capitalized

 

131,823

 

61,885

 

9,023

 

 

202,731

 

Other non-operating expenses from Borgata, net

 

31,010

 

 

 

(31,010)

 

 

        Total other expense, net

 

162,149

 

61,885

 

9,023

 

(31,010)

 

202,047

                       

Income (loss) from continuing operations before income taxes

 

(13,388)

 

(2,798)

 

(864)

 

1,467

 

(15,583)

 

Income taxes

 

6,563

 

(136)

 

 

 

6,427

Income (loss) from continuing operations, net of tax

 

(6,825)

 

(2,934)

 

(864)

 

1,467

 

(9,156)

Loss from discontinued operations, net of tax

 

(2,142)

 

 

 

 

(2,142)

Net income (loss)

 

(8,967)

 

(2,934)

 

(864)

 

1,467

 

(11,298)

 

Net income (loss) attributable to noncontrolling interest

 

 

 

864

 

1,467

 

2,331

Net income (loss) attributable to Boyd Gaming Corporation

 

$

(8,967)

 

$

(2,934)

 

$

 

$

2,934

 

$

(8,967)

                   

 

 

 
                                           

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2012

(Unaudited)

                     

(In thousands, except per share data)

 

Boyd

 Gaming

Wholly

Owned

 

Borgata (1)

 

LVE

 (Variable

Interest

Entity)

 

Eliminations

 

Boyd

Gaming

Consolidated

Basic net loss per common share

                   
 

Continuing operations

 

$

(0.08)

             

$

(0.08)

 

Discontinued operations

 

(0.02)

             

(0.02)

 

    Basic net loss per common share

 

$

(0.10)

             

$

(0.10)

 

Weighted average basic shares outstanding

 

87,587

             

87,587

                       

Diluted net loss per common share

                   
 

Continuing operations

 

$

(0.08)

             

$

(0.08)

 

Discontinued operations

 

(0.02)

             

(0.02)

 

    Diluted net loss per common share

 

$

(0.10)

             

$

(0.10)

 

Weighted average diluted shares outstanding

 

87,587

             

87,587

 

__________________________________________________________

(1) Borgata's financial results include the impact of certain valuation adjustments made upon consolidation. These valuation adjustments are not pushed down to Borgata and are therefore not reflected in Borgata's standalone financial statements.

 

 

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidated Statements of Operations of Peninsula Segment (1)

Successor and Predecessor Periods Comprising the Three and Nine Month Periods Ended September 30, 2013 and 2012

(Unaudited)

 
 
                                   
 

Successor

   

Predecessor (2)

 

Successor

   

Predecessor (2)

 

Three Months

   

Three Months

 

Nine Months

   

Nine Months

 

Ended

   

Ended

 

Ended

   

Ended

(In thousands)

September 30, 2013

   

September 30, 2012

 

September 30, 2013

   

September 30, 2012

Revenues

                 

Gaming

$

121,383

   

$

122,189

 

$

373,910

   

$

375,079

Food and beverage

9,759

   

8,299

 

29,524

   

25,295

Other

5,148

   

4,592

 

13,415

   

12,356

Gross revenues

136,290

   

135,080

 

416,849

   

412,730

Less promotional allowances

5,568

   

4,926

 

16,432

   

14,961

    Net revenues

130,722

   

130,154

 

400,417

   

397,769

                   

Costs and expenses

                 

Gaming

57,480

   

55,435

 

174,038

   

169,343

Food and beverage

6,627

   

5,272

 

20,141

   

15,871

Other

4,109

   

3,379

 

9,644

   

8,643

Selling, general and administrative

13,627

   

12,341

 

42,361

   

36,952

Maintenance and utilities

3,605

   

3,010

 

9,925

   

8,274

Depreciation and amortization

22,210

   

10,465

 

66,173

   

31,239

Corporate expense

234

   

3,541

 

2,101

   

8,887

Affiliate management fee

4,884

   

2,286

 

15,162

   

7,049

Preopening expenses

   

153

 

91

   

156

Asset transactions costs

133

   

(9)

 

292

   

(46)

Other operating items

62

   

301

 

199

   

2,474

    Total costs and expenses

112,971

   

96,174

 

340,127

   

288,842

Operating income (loss)

17,751

   

33,980

 

60,290

   

108,927

                   

Other expense (income)

                 

Interest income

(553)

   

(557)

 

(1,634)

   

(1,685)

Interest expense, net of amounts capitalized

19,908

   

17,306

 

63,107

   

53,704

Debt modification fees

   

 

1,976

   

Loss from equity affiliates

49

   

18

 

394

   

62

    Total other expense, net

19,404

   

16,767

 

63,843

   

52,081

                   

Income (loss) before income taxes

(1,653)

   

17,213

 

(3,553)

   

56,846

Income taxes (3)

(3,368)

   

 

(10,259)

   

Net income (loss)

$

(5,021)

   

$

17,213

 

$

(13,812)

   

$

56,846

                   

Adjusted EBITDA, after corporate expense

$

45,040

   

$

47,176

 

$

142,207

   

$

149,799

 

___________________________________

   

(1)

Peninsula Gaming, LLC ("PGL") was acquired by Boyd Gaming on November 20, 2012. In accordance with Generally Accepted Accounting Principles ("GAAP"), PGL's post acquisition financial results have been prepared on Boyd Gaming's ("Successor") basis of accounting and reflect adjustments resulting from the application of the acquisition method. Financial information for the prior year period has been prepared on PGL's ("Predecessor") basis of accounting. Consequently, the financial statements for the Successor and Predecessor periods are presented on different bases.

   

(2)

Certain amounts for the prior year have been reclassified to conform with the Successor presentation. These reclassifications had no impact on income from operations or net income as previously reported by the Predecessor.

   

(3)

The Predecessor was structured as a limited liability company and the members were taxed on their proportionate share of its taxable income. Accordingly, no provision for income taxes was included in the financial statements of the Predecessor.

 

 

Footnotes and Safe Harbor Statements

Non-GAAP Financial Measures

Regulation G, "Conditions for Use of Non-GAAP Financial Measures," prescribes the conditions for use of non-GAAP financial information in public disclosures. We believe that our presentations of the following non-GAAP financial measures are important supplemental measures of operating performance to investors: earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings Per Share (Adjusted EPS). The following discussion defines these terms and why we believe they are useful measures of our performance.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), provides our investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of our core operating results and as a means to evaluate period-to-period results. We refer to this measure as Adjusted EBITDA. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. We have historically reported this measure to our investors and believe that the continued inclusion of Adjusted EBITDA provides consistency in our financial reporting. We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by our management in their financial and operational decision-making. Adjusted EBITDA is among the more significant factors in management's internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA as a measure in the evaluation of potential acquisitions and dispositions. Adjusted EBITDA is also used by management in the annual budget process. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company. Adjusted EBITDA reflects EBITDA adjusted for deferred rent, preopening expenses, share-based compensation expense, impairments of assets, asset transactions costs, loss on early extinguishments of debt and other operating charges, net, and our share of Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. In addition, Adjusted EBITDA includes corporate expense. A reconciliation of Adjusted EBITDA to net income (loss), based upon GAAP, is included in the financial schedules accompanying this release.

Adjusted Earnings and Adjusted EPS

Adjusted Earnings is net income (loss) before preopening expenses, asset transactions costs, net gains on insurance settlements, impairments of assets, certain adjustments to property tax accruals, write-downs and other charges, net, accelerated amortization of deferred loan fees, changes in the fair value of derivative instruments, gain or loss on early retirements of debt, other non-recurring adjustments, net, valuation adjustments related to the consolidation of Borgata, and our share of Borgata's preopening expenses and other items and write-downs, net. Adjusted Earnings and Adjusted EPS are presented solely as supplemental disclosures because management believes that they are widely used measures of performance in the gaming industry. A reconciliation of net income (loss) based upon GAAP to Adjusted Earnings and Adjusted EPS are included in the financial schedules accompanying this release.

Limitations on the Use of Non-GAAP Measures

The use of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS or certain other non-GAAP financial measures may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, capital expenditures and other items both in our reconciliations to the GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.

EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

Forward Looking Statements and Company Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding: improvement in October year-over-year results in most of our operations, that Borgata's amenities are providing a significant competitive advantage, and that Borgata is on track to be among the first operators to offer real-money online gaming in New Jersey. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: fluctuations in the Company's operating results; recovery of its properties in various markets; the state of the economy and its effect on consumer spending and the Company's results of operations; the timing for economic recovery, its effect on the Company's business and the local economies where the Company's properties are located; whether online gaming will become legalized in various states, the Company's ability to operate online gaming profitably, or otherwise; consumer reaction to fluctuations in the stock market and economic factors; the fact that the Company's expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company and its subsidiaries; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

About Boyd Gaming

Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 22 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi and New Jersey. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.

SOURCE Boyd Gaming Corporation