Boyd Gaming Reports Fourth Quarter, Full Year 2014 Results
Fourth Quarter 2014 Highlights
- All Segments Generate Year-over-Year EBITDA Growth and Margin Improvement
- Las Vegas Locals Posts Seventh Quarter of EBITDA Growth in Last Two Years

LAS VEGAS, Feb. 12, 2015 /PRNewswire/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the fourth quarter and full year ended December 31, 2014.  

Boyd Gaming logo.

Boyd Gaming reported fourth quarter 2014 net revenues of $531.6 million, an increase of 1.4% compared to pro forma net revenues of $524.4 million for the same quarter in 2013.  Total Adjusted EBITDA(1) was $136.4 million, up 10.6% from the comparable pro forma amount of $123.3 million for the year-ago period.  Effective September 30, 2014, the Company deconsolidated Borgata and is accounting for its 50% investment in Borgata by applying the equity method for periods subsequent to that date.  The prior-year pro forma amounts reflect the results for Borgata on a comparable equity method basis to the current period presentation.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "In the fourth quarter we were pleased to achieve EBITDA growth and margin improvement in every segment of our business. We saw modest revenue gains throughout our portfolio, continued growth in our Las Vegas business and ongoing stabilization in our regional markets. We also made steady progress executing our strategy to enhance our non-gaming amenities, which contributed to improved growth and profitability in the quarter.  Additionally, we continued to strengthen our balance sheet during the quarter, bringing total debt reduction to nearly $200 million in 2014.  The second half of 2014 provided encouraging signs of growth and a solid base for continuing to build long-term shareholder value."  

Adjusted Earnings(1) for the fourth quarter 2014 reflect a loss of $0.1 million, break even on a per share basis, compared to a loss of $26.4 million, or $0.24 per share, for the same period in 2013.   The calculations of Adjusted Earnings, Adjusted Earnings per share, and pro forma results reflecting Borgata on a comparable basis for all periods are presented in tables at the end of this press release.

On a GAAP basis, the Company reported a net loss of $32.4 million, or $0.29 per share, for the fourth quarter 2014, compared to a net loss of $47.3 million, or $0.43 per share, for the year-ago period.  During the fourth quarter of 2014, Boyd Gaming reported impairment charges of $40.6 million, primarily due to impairments of intangible assets.  Results for the prior-year period included a pretax loss on early extinguishments of debt of $24.7 million, primarily due to the redemption of certain debt at Borgata.  These charges are not included in Adjusted Earnings or Adjusted Earnings per share.

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

Key Operations Review

Las Vegas Locals
In the Las Vegas Locals segment, fourth-quarter 2014 net revenues rose 2.1% to $151.7 million, compared to $148.6 million in the year-ago period.  Fourth-quarter 2014 Adjusted EBITDA was $39.8 million, an increase of 19.7% from $33.2 million in the fourth quarter of 2013, marking the seventh quarter of EBITDA growth in the last two years.  Gaming revenues were up slightly, while targeted capital investments in new amenities helped drive growth in non-gaming revenues.  Results also reflect the Company's ability to drive operating efficiencies, as EBITDA margins improved year-over-year.

Downtown Las Vegas
In the Downtown Las Vegas segment, net revenues were $59.6 million in the fourth quarter of 2014, down slightly from $59.8 million in the year-ago period.  Adjusted EBITDA was $13.1 million, increasing approximately $2 million year-over-year after excluding one-time adjustments in the fourth quarter of 2013.  Results benefitted from strength in Hawaiian visitation and increased pedestrian traffic on Fremont Street.

Midwest and South; Peninsula
In the Midwest and South segment, net revenues were $200.0 million, an increase of 2.0% from $196.0 million in the fourth quarter of 2013.  Adjusted EBITDA was $40.1 million, a year-over-year increase of $9.7 million, or 31.8%, after excluding a one-time tax adjustment in the fourth quarter of 2013.

During the fourth quarter of 2014, the Peninsula segment reported net revenues of $120.2 million, a slight increase from $119.9 million in the year-ago period. Adjusted EBITDA was $42.2 million, up 2.9% from $41.0 million in the fourth quarter of 2013. 

EBITDA growth in these segments was broad-based, as 10 out of 12 of the Company's regional properties posted year-over-year EBITDA gains, including strong performances at Delta Downs and Kansas Star.  While favorable weather contributed to revenue gains, increased operating efficiencies created positive flow-through to EBITDA, as operating margins improved by more than 300 basis points.

Borgata
Borgata reported fourth quarter 2014 net revenues of $179.1 million ‒ including $7.0 million from its online gaming operations – a 14.0% increase from the $157.1 million in revenues reported in the year-ago period. Adjusted EBITDA at Borgata more than doubled to $36.0 million, compared to $16.4 million in the fourth quarter of 2013. 

Due to its deconsolidation, the Company now applies the equity method of accounting to its investment in Borgata.  The Company's share of Borgata's Adjusted EBITDA was $18.0 million for the fourth quarter of 2014 as compared to pro forma Adjusted EBITDA of $8.2 million for the prior-year period.

Borgata saw significant growth in both gaming and non-gaming business during the quarter.  The property set all-time market share records for gross gaming revenue, table win, slot win and poker during the fourth quarter, and achieved solid growth in its hotel and meetings business.

Borgata also continued to enhance the profitability of its online gaming operations, generating $1.8 million in EBITDA from this business in the fourth quarter.

Full Year 2014 Results
For the full year ended December 31, 2014, Boyd Gaming reported pro forma net revenues of $2.14 billion, compared to $2.20 billion in pro forma net revenues reported for the year-ago period.  Total pro forma Adjusted EBITDA was $545.3 million, compared to $550.8 million in the prior year.

Adjusted Earnings for the year ended December 31, 2014, were $1.3 million, or $0.01 per share, compared to a loss of $33.4 million, or $0.34 per share, for the year ended December 31, 2013.

On a GAAP basis, Boyd Gaming reported a net loss of $53.0 million, or $0.48 per share, for the full year ended December 31, 2014.  By comparison, the Company reported a net loss of $80.3 million, or $0.83 per share, for the prior-year period.  The Company reported impairment charges of $60.8 million in 2014, compared to $10.4 million reported in the prior year.  Results for the prior year also included an aggregate pretax loss on early extinguishments of debt of $54.2 million, and income of $10.8 million, after tax, related to discontinued operations.  These amounts are excluded from Adjusted Earnings and Adjusted Earnings per share.

Balance Sheet Statistics
As of December 31, 2014, Boyd Gaming had cash on hand of $145.3 million, including $29.9 million related to Peninsula.  Total debt was $3.48 billion, of which $1.09 billion was related to Peninsula. As a result of the deconsolidation, Borgata is no longer included in the Company's balance sheet. Borgata had cash on hand of $36.1 million and total debt of $754.9 million at December 31, 2014. 

Full Year 2015 Guidance
For the full year 2015, Boyd Gaming projects total Adjusted EBITDA, including Peninsula and 50% of Borgata's Adjusted EBITDA, of $535 million to $560 million.

Conference Call Information
Boyd Gaming will host its conference call to discuss fourth quarter and full year 2014 results today, February 12, at 5:00 p.m. Eastern.  The conference call number is (888) 317-6003, passcode 5378350.  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=101540

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, February 12, beginning at 7:00 p.m. Eastern and continuing through Thursday, February 19, at 9 a.m. Eastern.  The conference number for the replay will be 10060318.  The replay will also be available on the Internet at www.boydgaming.com.

BOYD GAMING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands, except per share data)

2014



2013



2014



2013


REVENUES












Operating revenues












Gaming

$

448,226



$

585,261



$

2,307,565



$

2,478,983


Food and beverage

76,168



107,392



408,236



446,367


Room

38,150



62,063



248,222



265,371


Other

29,596



40,173



154,170



165,190


Gross revenues

592,140



794,889



3,118,193



3,355,911


Less promotional allowances

60,547



113,352



416,874



461,473


  Net revenues

531,593



681,537



2,701,319



2,894,438


COST AND EXPENSES












Operating costs and expenses












Gaming

220,395



283,407



1,087,901



1,170,843


Food and beverage

42,417



58,131



222,393



240,081


Room

9,576



12,727



51,906



54,338


Other

20,540



29,171



112,248



121,600


Selling, general and administrative

80,035



116,361



429,529



490,226


Maintenance and utilities

25,399



40,412



156,736



166,398


Depreciation and amortization

52,799



69,055



251,044



278,413


Corporate expense

23,021



20,661



75,626



63,249


Preopening expense

913



4,203



4,749



9,032


Impairments of assets

40,575



4,101



60,780



10,383


Asset transactions costs

4,563



3,311



9,641



5,576


Other operating charges and credits, net

(261)



817



(2,124)



5,998


  Total operating costs and expenses

519,972



642,357



2,460,429



2,616,137


Boyd's share of Borgata's operating income (a)

10,626





10,626




Operating income

22,247



39,180



251,516



278,301


Other expense (income)












Interest income

(467)



(368)



(1,879)



(2,147)


Interest expense, net

57,168



77,377



283,387



344,330


Loss on early extinguishments of debt

407



24,689



1,536



54,202


Other, net

(450)



(1,755)



48



(2,090)


Boyd's share of Borgata's non-operating items, net (a)

9,309





9,309




  Total other expense, net

65,967



99,943



292,401



394,295


Loss from continuing operations before income taxes

(43,720)



(60,763)



(40,885)



(115,994)


Income taxes benefit (provision)

11,297



(6,828)



(753)



(3,350)


Loss from continuing operations, net of tax

(32,423)



(67,591)



(41,638)



(119,344)


Income from discontinued operations, net of tax







10,790


Net loss

(32,423)



(67,591)



(41,638)



(108,554)


Net (income) loss attributable to noncontrolling interest (a)



20,251



(11,403)



28,290


Net loss attributable to Boyd Gaming Corporation

$

(32,423)



$

(47,340)



$

(53,041)



$

(80,264)














Basic net income (loss) per common share












Continuing operations

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.94)


Discontinued operations







0.11


  Basic net loss per common share

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.83)


Weighted average basic shares outstanding

110,352



109,471



109,979



97,243














Diluted net income (loss) per common share












Continuing operations

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.94)


Discontinued operations







0.11


  Diluted net loss per common share

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.83)


Weighted average diluted shares outstanding

110,352



109,471



109,979



97,243



_______________________________________________

(a)

Due to the deconsolidation of Borgata on September 30, 2014, the Company has accounted for its 50% investment in Borgata by applying the equity method for the three months ended December 31, 2014. For the year ended December 31, 2014, Boyd Gaming consolidated the financial results of Borgata for the first nine months of the period, and recorded the results by applying the equity method for the last three months of the year. For the three months and year ended December 31, 2013, Boyd Gaming consolidated the financial results of Borgata. Please see the unaudited pro forma financial results also presented in this release for a comparison of Boyd Gaming's financial results reflecting Borgata on the equity method for all periods presented.

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA to Operating Income (Loss)(a)

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands)

2014



2013



2014



2013


Net Revenues by Reportable Segment












Las Vegas Locals

$

151,732



$

148,639



$

592,652



$

591,447


Downtown Las Vegas

59,611



59,831



224,275



222,715


Midwest and South

200,005



196,025



831,477



864,247


Peninsula

120,245



119,914



493,851



520,329


Borgata (b)



157,128



559,064



695,700


  Net revenues

$

531,593



$

681,537



$

2,701,319



$

2,894,438














Adjusted EBITDA by Reportable Segment












Las Vegas Locals

$

39,757



$

33,223



$

144,397



$

137,501


Downtown Las Vegas

13,116



13,094



37,309



35,036


Midwest and South

40,087



39,733



169,977



179,976


Peninsula

42,163



40,960



175,081



185,269


  Wholly owned property Adjusted EBITDA

135,123



127,010



526,764



537,782


Corporate expense (c)

(16,777)



(11,919)



(59,420)



(46,594)


  Wholly owned Adjusted EBITDA

118,346



115,091



467,344



491,188


Borgata (b)

18,019



16,393



137,936



119,237


  Adjusted EBITDA

136,365



131,484



605,280



610,425














Other operating costs and expenses












Deferred rent

904



959



3,618



3,831


Depreciation and amortization

52,799



69,055



251,044



278,413


Preopening expenses

913



4,203



4,749



9,032


Share-based compensation expense

7,235



9,858



18,666



18,891


Impairments of assets

40,575



4,101



60,780



10,383


Asset transactions costs

4,563



3,311



9,641



5,576


Other operating charges and credits, net

(261)



817



(2,124)



5,998


Boyd's share of Borgata's other operating costs and expenses

7,390





7,390




Total other operating costs and expenses

114,118



92,304



353,764



332,124


Operating income

22,247



39,180



251,516



278,301


Other expense (income)












Interest expense, net

56,701



77,009



281,508



342,183


Loss on early extinguishments of debt

407



24,689



1,536



54,202


Other, net

(450)



(1,755)



48



(2,090)


Boyd's share of Borgata's non-operating items, net

9,309





9,309




Total other expense, net

65,967



99,943



292,401



394,295


Loss from continuing operations before income taxes

(43,720)



(60,763)



(40,885)



(115,994)


Income taxes benefit (provision)

11,297



(6,828)



(753)



(3,350)


Loss from continuing operations, net of tax

(32,423)



(67,591)



(41,638)



(119,344)


Income from discontinued operations, net of tax







10,790


Net loss

(32,423)



(67,591)



(41,638)



(108,554)


Net (income) loss attributable to noncontrolling interest



20,251



(11,403)



28,290


Net loss attributable to Boyd Gaming Corporation

$

(32,423)



$

(47,340)



$

(53,041)



$

(80,264)


_______________________________________________

 

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA to Operating Income (Loss)(a)

(Unaudited)

(Continued)


(a)

See note (a) on Condensed Consolidated Statements of Operations.



(b)

The following table reflects the financial results of Borgata as reported by Boyd Gaming in its financial statements under the respective method of accounting for the indicated period. For the three months ended December 31, 2014, Boyd Gaming accounted for its 50% investment in Borgata by applying the equity method. For the year ended December 31, 2014, Boyd Gaming consolidated the financial results of Borgata for the first nine months of the period, and recorded the results by applying the equity method for the last three months of the year. For the three months and year ended December 31, 2013, Boyd Gaming consolidated the financial results of the Borgata.




Three Months Ended


Year Ended


December 31,


December 31,

(In thousands)

2014



2013



2014



2013


Revenues reported for Borgata












Consolidated

$



$

157,128



$

559,064



$

695,700


Equity Method








Total

$



$

157,128



$

559,064



$

695,700














Adjusted EBITDA reported for Borgata












Consolidated

$



$

16,393



$

119,917



$

119,237


Equity Method

18,019





18,019




Total

$

18,019



$

16,393



$

137,936



$

119,237



(c) Reconciliation of corporate expense:



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands)

2014



2013



2014



2013


Corporate expense as reported on Consolidated Statements of
    Operations

$

23,021



$

20,661



$

75,626



$

63,249


Corporate share-based compensation expense

(6,244)



(8,742)



(16,206)



(16,655)


Corporate expense as reported on the above table

$

16,777



$

11,919



$

59,420



$

46,594


 

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Reconciliation of Net Loss to Adjusted Earnings (Loss) and Net Loss Per Share to Adjusted Earnings (Loss) Per Share (a)

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands, except per share data)

2014



2013



2014



2013


Net loss attributable to Boyd Gaming Corporation

$

(32,423)



$

(47,340)



$

(53,041)



$

(80,264)


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







(10,790)


Adjusted net loss attributable to Boyd Gaming Corporation

(32,423)



(47,340)



(53,041)



(91,054)














Pretax adjustments related to Boyd Gaming:












  Preopening expenses, excluding impact of LVE

913



616



4,480



6,909


  Loss on early extinguishments of debt

407



1,368



1,536



28,346


  Impairments of assets

40,575



4,101



60,780



5,351


  Asset transactions costs

4,563



3,336



9,267



5,396


  Adjustments to property tax accruals, net



(9,325)





(9,325)


  Other operating charges and credits, net

(262)



825



(14)



2,861


  Other (income) loss

(450)



(1,509)



(39)



(2,325)














Pretax adjustments related to Borgata (c):












  Preopening expenses



3,587



269



4,056


  Loss on early extinguishments of debt

370



23,321



370



25,856


  Valuation adjustments related to consolidation, net



(290)



(1,901)



(973)


  Impairments of assets







5,032


  Asset transactions costs

5



(25)



379



180


  Other operating charges and credits, net



(8)



(2,111)



3,137


Total adjustments

46,121



25,997



73,016



74,501














Income tax effect for above adjustments

(13,834)



8,245



(20,379)



1,844


Impact on noncontrolling interest, net



(13,294)



1,686



(18,649)


Adjusted earnings (loss)

$

(136)



$

(26,392)



$

1,282



$

(33,358)














Net loss per share attributable to Boyd Gaming Corporation

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.83)


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







(0.11)


Adjusted net loss per share attributable to Boyd Gaming 
  Corporation

(0.29)



(0.43)



(0.48)



(0.94)


Pretax adjustments related to Boyd Gaming:












  Preopening expenses, excluding impact of LVE

0.01



0.01



0.05



0.07


  Loss on early extinguishments of debt

0.01



0.01



0.01



0.29


  Impairments of assets

0.37



0.04



0.55



0.06


  Asset transactions costs

0.04



0.03



0.08



0.06


  Adjustments to property tax accruals, net



(0.09)





(0.10)


  Other operating charges and credits, net



0.01





0.03


  Other (income) loss

(0.01)



(0.02)





(0.02)














Pretax adjustments related to Borgata (c):












  Preopening expenses



0.03





0.04


  Loss on early extinguishments of debt



0.21





0.27


  Valuation adjustments related to consolidation, net





(0.02)



(0.01)


  Impairments of assets







0.05


  Asset transactions costs








  Other operating charges and credits, net





(0.02)



0.03


Total adjustments

0.42



0.23



0.65



0.77














Income tax effect for above adjustments

(0.13)



0.08



(0.18)



0.02


Impact on noncontrolling interest, net



(0.12)



0.02



(0.19)


Adjusted earnings (loss) per share

$



$

(0.24)



$

0.01



$

(0.34)














Weighted average shares outstanding

110,352



109,471



110,893



97,243


_______________________________________________

(a)

See note (a) on Condensed Consolidated Statements of Operations.



(b)

Results for the prior year period are adjusted to exclude the financial results of Dania Jai-Alai, which was sold during the second quarter of 2013.



(c)

For periods after the September 30, 2014, date of Borgata's deconsolidation, the calculation includes Boyd's share of the adjusting items. Prior to this date, the calculation includes 100% of the adjusting items for Borgata.

 

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Three Months Ended December 31, 2014 (a)

(Unaudited)



























(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment


Eliminations


Boyd Gaming

Consolidated

Revenues













Gaming


$

336,717



$

111,509



$



$

448,226


Food and beverage


66,794



9,374





76,168


Room


38,150







38,150


Other


29,834



4,258



(4,496)



29,596


Gross revenues


471,495



125,141



(4,496)



592,140


Less promotional allowances


55,653



4,894





60,547


  Net revenues


415,842



120,247



(4,496)



531,593















Operating costs and expenses













Gaming


167,742



52,653





220,395


Food and beverage


35,750



6,667





42,417


Room


9,576







9,576


Other


17,764



7,272



(4,496)



20,540


Selling, general and administrative


67,286



12,749





80,035


Maintenance and utilities


22,160



3,239





25,399


Depreciation and amortization


34,320



18,479





52,799


Corporate expense


22,740



281





23,021


Preopening expenses


764



149





913


Impairments of assets


38,875



1,700





40,575


Asset transactions costs


3,942



621





4,563


Other, net




(261)





(261)


  Total costs and expenses


420,919



103,549



(4,496)



519,972















Boyd's share of Borgata's operating income


10,626







10,626















Operating income


5,549



16,698





22,247















Other expense (income)













Interest income


(1)



(466)





(467)


Interest expense, net of amounts capitalized


38,215



18,953





57,168


Loss on early extinguishments of debt




407





407


Other, net


(721)



271





(450)


Boyd's share of Borgata's non-operating items, net


9,309







9,309


     Total other expense, net


46,802



19,165





65,967















Income (loss) from continuing operations before taxes


(41,253)



(2,467)





(43,720)


Income taxes


14,338



(3,041)





11,297


Income (loss) from continuing operations, net of tax


(26,915)



(5,508)





(32,423)


Income (loss) from discontinued operations, net of tax









Net income (loss)


(26,915)



(5,508)





(32,423)


Net income (loss) attributable to noncontrolling interest









Net income (loss) attributable to Boyd Gaming Corporation


$

(26,915)



$

(5,508)



$



$

(32,423)
















BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Three Months Ended December 31, 2014 (a)

(Unaudited)



























(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment


Eliminations


Boyd Gaming

Consolidated

Basic net loss per common share













Continuing operations











$

(0.29)


Discontinued operations












  Basic net loss per common share











$

(0.29)


Weighted average basic shares outstanding











110,352















Diluted net loss per common share













Continuing operations











$

(0.29)


Discontinued operations












  Diluted net loss per common share











$

(0.29)


Weighted average diluted shares outstanding











110,352



_______________________________________________

(a)

See note (a) on Condensed Consolidated Statements of Operations.

 

 

BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Three Months Ended December 31, 2013 (a)

(Unaudited)

























Boyd Gaming Wholly Owned










(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula Segment


Eliminations


Total


Borgata (b)


Eliminations


Boyd Gaming

Consolidated

Revenues






















Gaming


$

330,687



$

110,882



$



$

441,569



$

143,692



$



$

585,261


Food and beverage


65,629



9,682





75,311



32,081





107,392


Room


36,080







36,080



25,983





62,063


Other


31,035



4,521



(4,423)



31,133



9,040





40,173


Gross revenues


463,431



125,085



(4,423)



584,093



210,796





794,889


Less promotional allowances


54,513



5,171





59,684



53,668





113,352


  Net revenues


408,918



119,914



(4,423)



524,409



157,128





681,537
























Operating costs and expenses






















Gaming


169,328



52,866





222,194



61,213





283,407


Food and beverage


35,245



6,313





41,558



16,573





58,131


Room


9,960







9,960



2,767





12,727


Other


18,322



7,520



(4,423)



21,419



7,752





29,171


Selling, general and administrative


65,418



13,389





78,807



37,554





116,361


Maintenance and utilities


22,247



3,288





25,535



14,877





40,412


Depreciation and amortization


33,081



21,676





54,757



14,298





69,055


Corporate expense


20,088



573





20,661







20,661


Preopening expenses


616







616



3,587





4,203


Impairments of assets


901



3,200





4,101







4,101


Asset transactions costs


1,568



1,768





3,336



(25)





3,311


Other, net


711



114





825



(8)





817


  Total costs and expenses


377,485



110,707



(4,423)



483,769



158,588





642,357
























Boyd's share of Borgata's operating income


(729)







(729)





729


























Operating income (loss)


30,704



9,207





39,911



(1,460)



729



39,180
























Other expense (income)






















Interest income


123



(491)





(368)







(368)


Interest expense, net of amounts capitalized


38,254



19,687






57,941



19,436





77,377


Loss on early extinguishments of debt




1,368





1,368



23,321





24,689


Other, net


(1,523)



(232)





(1,755)







(1,755)


Boyd's share of Borgata's non-operating items, net


19,521







19,521





(19,521)




     Total other expense, net


56,375



20,332





76,707



42,757



(19,521)



99,943
























Income (loss) from continuing operations before taxes


(25,671)



(11,125)





(36,796)



(44,217)



20,250



(60,763)


Income taxes


(10,306)



(236)





(10,542)



3,714





(6,828)


Income (loss) from continuing operations, net of tax


(35,977)



(11,361)





(47,338)



(40,503)



20,250



(67,591)


Income (loss) from discontinued operations, net of tax















Net income (loss)


(35,977)



(11,361)





(47,338)



(40,503)



20,250



(67,591)


Net income (loss) attributable to noncontrolling interest












20,251



20,251


Net income (loss) attributable to Boyd Gaming Corporation


$

(35,977)



$

(11,361)



$



$

(47,338)



$

(40,503)



$

40,501



$

(47,340)

























BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Three Months Ended December 31, 2013 (a)

(Unaudited)

























Boyd Gaming Wholly Owned










(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula Segment


Eliminations


Total


Borgata (b)


Eliminations


Boyd Gaming

Consolidated

Basic net loss per common share






















Continuing operations











$

(0.43)









$

(0.43)


Discontinued operations




















  Basic net loss per common share











$

(0.43)









$

(0.43)


Weighted average basic shares outstanding











109,471









109,471
























Diluted net loss per common share






















Continuing operations











$

(0.43)









$

(0.43)


Discontinued operations




















  Diluted net loss per common share











$

(0.43)









$

(0.43)


Weighted average diluted shares outstanding











109,471









109,471



_______________________________________________

(a)

See note (a) on Condensed Consolidated Statements of Operations.



(b)

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 Statements of Operations

Year Ended December 31, 2014 (a)

(Unaudited)

























Boyd Gaming Wholly Owned










(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment


Eliminations


Total


Borgata (b)


Eliminations


Boyd Gaming

Consolidated

Revenues






















Gaming


$

1,341,780



$

457,944



$



$

1,799,724



$

507,841



$



$

2,307,565


Food and beverage


265,642



37,762





303,404



104,832





408,236


Room


157,427







157,427



90,795





248,222


Other


122,969



17,873



(18,605)



122,237



31,933





154,170


Gross revenues


1,887,818



513,579



(18,605)



2,382,792



735,401





3,118,193


Less promotional allowances


220,809



19,728





240,537



176,337





416,874


  Net revenues


1,667,009



493,851



(18,605)



2,142,255



559,064





2,701,319
























Operating costs and expenses






















Gaming


671,081



217,333





888,414



199,487





1,087,901


Food and beverage


143,349



25,381





168,730



53,663





222,393


Room


41,132







41,132



10,774





51,906


Other


73,640



31,131



(18,605)



86,166



26,082





112,248


Selling, general and administrative


277,415



50,184





327,599



101,930





429,529


Maintenance and utilities


96,179



13,347





109,526



47,210





156,736


Depreciation and amortization


135,003



73,912





208,915



42,129





251,044


Corporate expense


73,997



1,629





75,626







75,626


Preopening expenses


3,652



828





4,480



269





4,749


Impairments of assets


59,080



1,700





60,780







60,780


Asset transactions costs


8,331



936





9,267



374





9,641


Other, net


165



(178)





(13)



(2,111)





(2,124)


  Total costs and expenses


1,583,024



416,203



(18,605)



1,980,622



479,807





2,460,429
























Boyd's share of Borgata's operating income


50,255







50,255





(39,629)



10,626
























Operating income


134,240



77,648





211,888



79,257



(39,629)



251,516
























Other expense (income)






















Interest income


(5)



(1,874)





(1,879)







(1,879)


Interest expense, net of amounts capitalized


153,455



76,605





230,060



53,327





283,387


Loss on early extinguishments of debt




1,536





1,536







1,536


Other, net


(318)



366





48







48


Boyd's share of Borgata's non-operating items, net


37,535







37,535





(28,226)



9,309


     Total other expense, net


190,667



76,633





267,300



53,327



(28,226)



292,401
























Income (loss) from continuing operations before taxes


(56,427)



1,015





(55,412)



25,930



(11,403)



(40,885)


Income taxes


16,795



(14,424)





2,371



(3,124)





(753)


Income (loss) from continuing operations, net of tax


(39,632)



(13,409)





(53,041)



22,806



(11,403)



(41,638)


Income (loss) from discontinued operations, net of tax















Net income (loss)


(39,632)



(13,409)





(53,041)



22,806



(11,403)



(41,638)


Net income (loss) attributable to noncontrolling interest












(11,403)



(11,403)


Net income (loss) attributable to Boyd Gaming Corporation


$

(39,632)



$

(13,409)



$



$

(53,041)



$

22,806



$

(22,806)



$

(53,041)

























BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Year Ended December 31, 2014 (a)

(Unaudited)

























Boyd Gaming Wholly Owned










(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula

Segment


Eliminations


Total


Borgata (b)


Eliminations


Boyd Gaming

Consolidated

Basic net loss per common share






















Continuing operations











$

(0.48)









$

(0.48)


Discontinued operations




















  Basic net loss per common share











$

(0.48)









$

(0.48)


Weighted average basic shares outstanding











109,979









109,979
























Diluted net loss per common share






















Continuing operations











$

(0.48)









$

(0.48)


Discontinued operations




















  Diluted net loss per common share











$

(0.48)









$

(0.48)


Weighted average diluted shares outstanding











109,979









109,979



_______________________________________________

(a)

See note (a) on Condensed Consolidated Statements of Operations.



(b)

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 Statements of Operations

Year Ended December 31, 2013 (a)

(Unaudited)




























Boyd Gaming Wholly Owned













(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula Segment


Eliminations


Total


Borgata (b)


LVE (Variable Interest Entity) (c)


Eliminations


Boyd Gaming

Consolidated

Revenues

























Gaming


$

1,378,458



$

484,791



$



$

1,863,249



$

615,734



$



$



$

2,478,983


Food and beverage


266,868



39,207





306,075



140,292







446,367


Room


150,258







150,258



115,113







265,371


Other


124,463



17,934



(19,584)



122,813



42,377



1,933



(1,933)



165,190


Gross revenues


1,920,047



541,932



(19,584)



2,442,395



913,516



1,933



(1,933)



3,355,911


Less promotional allowances


222,054



21,603





243,657



217,816







461,473


  Net revenues


1,697,993



520,329



(19,584)



2,198,738



695,700



1,933



(1,933)



2,894,438



























Operating costs and expenses

























Gaming


694,581



226,905





921,486



249,357







1,170,843


Food and beverage


142,579



26,454





169,033



71,048







240,081


Room


41,404







41,404



12,934







54,338


Other


74,218



32,324



(19,584)



86,958



34,642







121,600


Selling, general and administrative


285,700



55,746





341,446



148,780







490,226


Maintenance and utilities


93,483



13,212





106,695



59,703







166,398


Depreciation and amortization


130,816



87,851





218,667



59,746







278,413


Corporate expense


60,576



2,673





63,249









63,249


Preopening expenses


6,818



91





6,909



4,056





(1,933)



9,032


Impairments of assets


2,151



3,200





5,351



5,032







10,383


Asset transactions costs


3,334



2,062





5,396



180







5,576


Other, net


2,548



313





2,861



3,137







5,998


  Total costs and expenses


1,538,208



450,831



(19,584)



1,969,455



648,615





(1,933)



2,616,137



























Boyd's share of Borgata's operating income


23,542







23,542







(23,542)





























Operating income


183,327



69,498





252,825



47,085



1,933



(23,542)



278,301



























Other expense (income)

























Interest income


(21)



(2,126)





(2,147)









(2,147)


Interest expense, net of amounts capitalized


177,823



82,795






260,618



81,335



2,377






344,330


Loss on early extinguishments of debt


25,002



3,344





28,346



25,856







54,202


Other, net


(2,252)



162





(2,090)









(2,090)


Boyd's share of Borgata's non-operating items, net


51,388







51,388







(51,388)




     Total other expense, net


251,940



84,175





336,115



107,191



2,377



(51,388)



394,295



























Income (loss) from continuing operations before taxes


(68,613)



(14,677)





(83,290)



(60,106)



(444)



27,846



(115,994)


Income taxes


2,731



(10,496)





(7,765)



4,415







(3,350)


Income (loss) from continuing operations, net of tax


(65,882)



(25,173)





(91,055)



(55,691)



(444)



27,846



(119,344)


Income from discontinued operations, net of tax


10,790







10,790









10,790


Net income (loss)


(55,092)



(25,173)





(80,265)



(55,691)



(444)



27,846



(108,554)


Net income (loss) attributable to noncontrolling interest












444



27,846



28,290


Net income (loss) attributable to Boyd Gaming Corporation


$

(55,092)



$

(25,173)



$



$

(80,265)



$

(55,691)



$



$

55,692



$

(80,264)




























BOYD GAMING CORPORATION

SUPPLEMENTAL INFORMATION

Condensed Consolidating Statements of Operations

Year Ended December 31, 2013 (a)

(Unaudited)




























Boyd Gaming Wholly Owned













(In thousands, except per share data)


Excluding

Peninsula

Segment


Peninsula Segment


Eliminations


Total


Borgata (b)


LVE (Variable Interest Entity) (c)


Eliminations


Boyd Gaming

Consolidated

Basic net loss per common share

























Continuing operations











$

(0.94)












$

(0.94)


Discontinued operations











0.11












0.11


  Basic net loss per common share











$

(0.83)












$

(0.83)


Weighted average basic shares outstanding











97,243












97,243



























Diluted net loss per common share

























Continuing operations











$

(0.94)












$

(0.94)


Discontinued operations











0.11












0.11


  Diluted net loss per common share











$

(0.83)












$

(0.83)


Weighted average diluted shares outstanding











97,243












97,243




























_______________________________________________

(a)

See note (a) on Condensed Consolidated Statements of Operations.



(b)

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.



(c)

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.

 

 

MARINA DISTRICT DEVELOPMENT COMPANY, LLC

dba BORGATA HOTEL CASINO AND SPA

CONSOLIDATED STATEMENTS OF OPERATIONS (a)

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands)

2014



2013



2014



2013


REVENUES












Operating revenues












Gaming

$

164,729



$

143,692



$

672,570



$

615,734


Food and beverage

33,564



32,081



138,396



140,292


Room

27,513



25,983



118,308



115,113


Other

9,241



9,040



41,174



42,377


Gross revenues

235,047



210,796



970,448



913,516


Less promotional allowances

55,900



53,668



232,237



217,816


  Net revenues

179,147



157,128



738,211



695,700


COST AND EXPENSES












Operating costs and expenses












Gaming

68,700



61,213



268,187



249,357


Food and beverage

17,596



16,573



71,259



71,048


Room

3,302



2,767



14,076



12,934


Other

7,871



7,752



33,953



34,642


Selling, general and administrative

30,968



37,554



132,898



148,780


Maintenance and utilities

14,672



14,831



61,740



59,514


Depreciation and amortization

14,796



14,635



58,969



60,908


Preopening expense



4,056



269



4,056


Impairments of assets







5,032


Other operating items, net

(9)



(504)



(1,746)



3,318


  Total operating costs and expenses

157,896



158,877



639,605



649,589


Operating income (loss)

21,251



(1,749)



98,606



46,111


Other expense












Interest expense, net

17,431



19,436



70,758



81,335


Loss (gain) on early extinguishments of debt

740



23,320



740



25,856


  Total other expense

18,171



42,756



71,498



107,191


Income (loss) before state income taxes

3,080



(44,505)



27,108



(61,080)


State income tax benefit (provision)

(446)



3,740



(3,399)



4,503


Net income (loss)

$

2,634



$

(40,765)



$

23,709



$

(56,577)


 

 













Reconciliation of Adjusted EBITDA to Operating Income (Loss)






Three Months Ended


Year Ended


December 31,


December 31,

(In thousands)

2014



2013



2014



2013


Adjusted EBITDA

$

36,038



$

16,438



$

156,098



$

119,425


Less:












Depreciation and amortization

14,796



14,635



58,969



60,908


Preopening expense



4,056



269



4,056


Impairments of assets







5,032


Other operating items, net

(9)



(504)



(1,746)



3,318


Operating income (loss)

$

21,251



$

(1,749)



$

98,606



$

46,111



_______________________________________________

(a)

These financial statements present the financial results reported by Borgata on a standalone basis and do not include consolidation adjustments recorded by Boyd Gaming during the period that Boyd Gaming consolidated Borgata.

Boyd Gaming Corporation
Unaudited Supplemental Pro Forma Information

Boyd Gaming Corporation ("Boyd Gaming") 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 Gaming is the managing member of Holding Company and is responsible for the day-to-day operations of Borgata.

In February 2010, Boyd Gaming 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"). MGM transferred the MGM Interest into the Divestiture Trust on March 24, 2010, and Boyd Gaming 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 Gaming 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 Gaming deconsolidated Borgata as of the close of business on September 30, 2014, and is accounting for its investment in Borgata applying the equity method for periods subsequent to the deconsolidation.

The following unaudited supplemental pro forma information for three months and year ended December 31, 2014 and 2013, give effect to:

  • the deconsolidation by Boyd Gaming of Holding Company, and
  • the recording by Boyd Gaming using the equity method of accounting for its 50% share of the operating results of Holding Company for the periods presented.

The unaudited supplemental pro forma information assumes that these transactions occurred as of January 1, 2013.

The unaudited supplemental pro forma information has been prepared based upon currently available information and assumptions that are deemed appropriate by Boyd Gaming's management. The pro forma information is for informational purposes only and is not intended to be indicative of Boyd Gaming's actual results that would have been reported had the transactions occurred on the date indicated, nor does the information represent a forecast of Boyd Gaming's financial results for any future period.

BOYD GAMING CORPORATION

SUPPLEMENTAL PRO FORMA INFORMATION

Pro Forma Condensed Consolidated Statements of Operations

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands, except per share data)

2014



2013



2014



2013


REVENUES












Operating revenues












Gaming

$

448,226



$

441,569



$

1,799,724



$

1,863,249


Food and beverage

76,168



75,311



303,404



306,075


Room

38,150



36,080



157,427



150,258


Other

29,596



31,133



122,237



122,813


Gross revenues

592,140



584,093



2,382,792



2,442,395


Less promotional allowances

60,547



59,684



240,537



243,657


  Net revenues

531,593



524,409



2,142,255



2,198,738


COST AND EXPENSES












Operating costs and expenses












Gaming

220,395



222,194



888,414



921,486


Food and beverage

42,417



41,558



168,730



169,033


Room

9,576



9,960



41,132



41,404


Other

20,540



21,419



86,166



86,958


Selling, general and administrative

80,035



78,807



327,599



341,446


Maintenance and utilities

25,399



25,535



109,526



106,695


Depreciation and amortization

52,799



54,757



208,915



218,667


Corporate expense

23,021



20,661



75,626



63,249


Preopening expense

913



616



4,480



4,976


Impairments of assets

40,575



4,101



60,780



5,351


Asset transactions costs

4,563



3,336



9,267



5,396


Other operating charges and credits, net

(261)



825



(13)



2,860


  Total operating costs and expenses

519,972



483,769



1,980,622



1,967,521


Boyd's share of Borgata's operating income

10,626



(729)



50,255



23,542


Operating income (loss)

22,247



39,911



211,888



254,759


Other expense (income)












Interest income

(467)



(368)



(1,879)



(2,147)


Interest expense, net

57,168



57,941



230,060



262,995


Loss on early extinguishments of debt

407



1,368



1,536



28,346


Other, net

(450)



(1,755)



48



(2,090)


Boyd's share of Borgata's non-operating items, net

9,309



19,523



37,535



51,388


  Total other expense, net

65,967



76,709



267,300



338,492


Loss from continuing operations before income taxes

(43,720)



(36,798)



(55,412)



(83,733)


Income taxes benefit (provision)

11,297



(10,542)



2,371



(7,765)


Loss from continuing operations, net of tax

(32,423)



(47,340)



(53,041)



(91,498)


Income from discontinued operations, net of tax







10,790


Net loss

(32,423)



(47,340)



(53,041)



(80,708)


Net (income) loss attributable to noncontrolling interest







444


Net loss attributable to Boyd Gaming Corporation

$

(32,423)



$

(47,340)



$

(53,041)



$

(80,264)














Basic net income (loss) per common share












Continuing operations

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.94)


Discontinued operations







0.11


  Basic net loss per common share

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.83)


Weighted average basic shares outstanding

110,352



109,471



109,979



97,243














Diluted net income (loss) per common share












Continuing operations

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.94)


Discontinued operations







0.11


  Diluted net loss per common share

$

(0.29)



$

(0.43)



$

(0.48)



$

(0.83)


Weighted average diluted shares outstanding

110,352



109,471



109,979



97,243


 

 

BOYD GAMING CORPORATION

SUPPLEMENTAL PRO FORMA INFORMATION

Reconciliation of Pro Forma Adjusted EBITDA to Pro Forma Operating Income (Loss)

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,

(In thousands)

2014



2013



2014



2013


Net Revenues by Reportable Segment












Las Vegas Locals

$

151,732



$

148,639



$

592,652



$

591,447


Downtown Las Vegas

59,611



59,831



224,275



222,715


Midwest and South

200,005



196,025



831,477



864,247


Peninsula

120,245



119,914



493,851



520,329


  Net revenues

$

531,593



$

524,409



$

2,142,255



$

2,198,738














Adjusted EBITDA by Reportable Segment












Las Vegas Locals

$

39,757



$

33,223



$

144,397



$

137,501


Downtown Las Vegas

13,116



13,094



37,309



35,036


Midwest and South

40,087



39,733



169,977



179,976


Peninsula

42,163



40,960



175,081



185,269


  Wholly owned property Adjusted EBITDA

135,123



127,010



526,764



537,782


Corporate expense

(16,777)



(11,919)



(59,420)



(46,594)


  Wholly owned Adjusted EBITDA

118,346



115,091



467,344



491,188


Boyd's share of Borgata's Adjusted EBITDA

18,019



8,197



77,978



59,619


  Adjusted EBITDA

136,365



123,288



545,322



550,807














Other operating costs and expenses












Deferred rent

904



959



3,618



3,831


Depreciation and amortization

52,799



54,757



208,915



218,667


Preopening expenses

913



616



4,480



4,976


Share-based compensation expense

7,235



9,858



18,666



18,891


Impairments of assets

40,575



4,101



60,780



5,351


Asset transactions costs

4,563



3,336



9,267



5,396


Other operating charges and credits, net

(261)



825



(13)



2,860


Boyd's share of Borgata's operating costs and expenses

7,390



8,925



27,721



36,076


Total other operating costs and expenses

114,118



83,377



333,434



296,048


Operating income

22,247



39,911



211,888



254,759


Other expense (income)












Interest expense, net

56,701



57,573



228,181



260,848


Loss on early extinguishments of debt

407



1,368



1,536



28,346


Other, net

(450)



(1,755)



48



(2,090)


Boyd's share of Borgata's non-operating items, net

9,309



19,523



37,535



51,388


Total other expense, net

65,967



76,709



267,300



338,492


Loss from continuing operations before income taxes

(43,720)



(36,798)



(55,412)



(83,733)


Income taxes

11,297



(10,542)



2,371



(7,765)


Loss from continuing operations, net of tax

(32,423)



(47,340)



(53,041)



(91,498)


Income from discontinued operations, net of tax







10,790


Net loss

(32,423)



(47,340)



(53,041)



(80,708)


Net loss attributable to noncontrolling interest







444


Net loss attributable to Boyd Gaming Corporation

$

(32,423)



$

(47,340)



$

(53,041)



$

(80,264)


 

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.  We do not provide a reconciliation of forward-looking non-GAAP financial measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.

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 Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. For periods prior to the September 30, 2014, deconsolidation of Borgata, the calculation of Adjusted EBITDA includes 100% of the adjusting items for Borgata.  For periods after the date of deconsolidation, the calculation includes Boyd's share of the adjusting items.  Pro forma EBITDA and pro forma Adjusted EBITDA reflect Borgata on the equity method for all periods presented.  Both EBITDA and Adjusted EBITDA include corporate expense.

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, gain or loss on early retirements of debt, other non-recurring adjustments, net, valuation adjustments related to the consolidation of Borgata, and Borgata's preopening expenses and other items and write-downs, net. For periods prior to the September 30, 2014, deconsolidation of Borgata, the calculation of Adjusted Earnings includes 100% of the adjusting items for Borgata.  For periods after the date of deconsolidation, the calculation includes Boyd's share of the adjusting items.  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.

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 historical 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 historical GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

Forward-looking Statements and Company Information
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding: the Company's continued success to increase shareholder value and prospects for 2015, including all of the statements under the heading "Full-Year 2015 Guidance." Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: fluctuations in the Company's operating results; recovery of its properties in various markets; the state of the economy and its effect on consumer spending and the Company's results of operations; the timing for economic recovery, its effect on the Company's business and the local economies where the Company's properties are located; the receipt of legislative, and other state, federal and local approvals for the Company's development projects; 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.

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/boyd-gaming-reports-fourth-quarter-full-year-2014-results-300035513.html

SOURCE Boyd Gaming Corporation

For further information: Financial Contact: Josh Hirsberg, (702) 792-7234, joshhirsberg@boydgaming.com; or Media Contact: David Strow, (702) 792-7386, davidstrow@boydgaming.com