Boyd Gaming Corporation reported second quarter net income of $12.8 million, or $0.15 per share, compared to net income of $21.7 million, or $0.25 per share, in the same period last year, a decline of 41 percent. Certain pre-tax items resulted in a net increase in income of $3.6 million ($2.3 million, net of tax, or $0.03 per share) during the second quarter of 2009. By comparison, the second-quarter 2008 included certain pre-tax items that had a net effect of reducing income by $7.6 million ($4.8 million, net of tax, or $0.05 per share). Adjusted earnings for the second quarter 2009 were $10.4 million, or $0.12 per share, compared to $26.4 million, or $0.30 per share, for the same period in 2008.

Net revenues were $423 million for the second quarter 2009, compared to $460.8 million for the same quarter in 2008, a decrease of 8.2 percent. Total adjusted EBITDA was $105.6 million for the quarter, a decrease of 11.7 percent from $119.6 million in the prior year. “While business conditions remained difficult in each of our regions, our results were in line with our expectations,” said Keith Smith, Boyd Gaming president and CEO. “The uncertainty which exists in the economy today continues to negatively impact consumer spending. Despite this, we believe the precipitous declines that began in the second half of 2008 are over, as we continue to see stabilization in our business. We remain confident in the resilience of our business model and our ability to manage the company through these challenging times. The recent bankruptcy filing by Station Casinos highlights the difficulties this recession has created for some businesses. Having said that, we remain confident in the long-term viability of the Las Vegas market, and we continue to be interested in acquiring some or all of Station’s assets.”

Boyd reported a net loss for the six months ended June 30, 2009, of $1.1 million, or $0.01 per share. By comparison, the company reported a loss of $10.9 million, or $0.12 per share for the six months ended June 30, 2008. The net losses were due in part to non-cash, pre-tax impairment charges related to Dania Jai-Alai of $28.4 million and $84.0 million during the six months ended June 30, 2009, and June 30, 2008, respectively. Adjusted earnings for the six months ended June 30, 2009, were $23.4 million, or $0.27 per share, as compared to $63.4 million, or $0.72 per share, for the six-month period in 2008.

Net revenues were $857.8 million and $931.9 million for the six months ended June 30, 2009, and 2008, respectively. Total adjusted EBITDA was $215.2 million for the current six-month period. By comparison, total adjusted EBITDA for the 2008 period was $247.3 million. In Boyd’s Las Vegas segment, second-quarter 2009 net revenues were $166.1 million versus $197.9 million for the second-quarter 2008. Second-quarter 2009 adjusted EBITDA was $43.9 million, a 29.7 percent decrease from the $62.4 million in the same quarter of 2008. Reduced consumer spending and continued pressure on room rates impacted results.

Boyd’s downtown Las Vegas properties generated net revenues of $57.6 million and adjusted EBITDA of $11.8 million for the second-quarter 2009, versus $63 million and $10.3 million, respectively, for the second-quarter 2008. Improved property operating margins, as well as lower fuel costs at the company’s Hawaiian charter operations, contributed to increased adjusted EBITDA in the region.

In the Midwest and South region, the company recorded $199.2 million in net revenues for the second quarter of 2009, compared to $199.9 million for the same period in 2008. Adjusted EBITDA for the current period was $44.3 million, a decrease of 2.4 percent from the $45.3 million reported in the second quarter of 2008. The consistent results were principally due to higher than normal operating costs associated with integrating a new hotel at Blue Chip, offset by strength at the Delta Downs and Par-A-Dice properties.

Net revenues for Borgata in Atlantic City were $191.5 million for the second quarter of 2009, compared to $205.1 million recorded in the same quarter in 2008. Despite the decline in net revenue, operating income for the second quarter of 2009 increased to $27.3 million, versus $22.3 million for the second quarter of 2008. Adjusted EBITDA also increased to $47.7 million, up from $45.2 million for the second quarter of 2008. While Borgata’s net revenues were adversely impacted by the recession and an increasingly competitive regional environment, cost-control measures implemented over the last year drove increases in operating income and adjusted EBITDA. In addition, the property continued to outperform the Atlantic City market, boosting its leading market share by more than two percentage points versus the year-ago quarter. For more information, visit www.boydgaming.com.
 

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