Boyd Gaming’s Net Revenues Rise 7.1 percent to $615.2 Million
By Mimi Kmet
July 24, 2012 10:25 PM
Boyd Gaming Corporation reported net revenues for the second quarter ended June 30, 2012, were $615.2 million, an increase of 7.1 percent from $574.4 million during the same quarter in 2011. But total adjusted EBITDA for the quarter declined 3.9 percent to $113.8 million, compared to $118.4 million in the prior year. These results include the operations of the IP Casino Resort Spa, acquired by the company on Oct. 4, 2011.
Boyd Gaming's wholly owned business, including the IP, reported second-quarter 2012 net revenues of $438.7 million, up 12.4 percent from the year-ago period. Wholly owned adjusted EBITDA for the quarter rose 4.2 percent to $83.1 million, up from $79.8 million in the year-ago period. Revenue growth was driven by results in our Midwest and South region, while a weaker performance in Nevada negatively impacted EBITDA. Borgata, the company's 50-percent joint venture, reported second-quarter 2012 net revenues of $175.4 million, down $7.4 million from the second quarter of 2011, while adjusted EBITDA at the property decreased $8 million to $30.7 million.
For the second quarter 2012, the company reported net income of $1 million, or 1 cent per share, compared to a net loss of $3 million, or 3 cents per share, in the same period last year. Adjusted earnings for the second quarter 2012 were $3.5 million, or 4 cents per share, compared to $800,000, or 1 cent per share, for the same period in 2011.
For the six months ended June 30, 2012, the company reported net revenues of $1.25 billion, an increase of 9.6 percent compared to the six months ended June 30, 2011. Total adjusted EBITDA was $247.6 million during the period, up 7.6 percent from the prior year. During the six-month period 2012, Boyd Gaming’s wholly owned operations posted net revenues of $896.7 million, up 13.9 percent from the year-ago period, while wholly owned adjusted EBITDA increased 11.4 percent to $178 million.
Boyd said it continues to make progress toward closing the acquisition of Peninsula Gaming, LLC, a deal that was announced on May 16. The transaction will add five properties to Boyd Gaming's portfolio, including the Kansas Star Casino, Hotel and Event Center in Mulvane, Kansas; Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Casino in Worth County, Iowa; Evangeline Downs Racetrack and Casino in Opelousas, La.; and Amelia Belle Casino in Amelia, La. In early June, the Federal Trade Commission granted Boyd Gaming an early termination of the waiting period required under Hart Scott Rodino. Subject to the satisfaction of various closing conditions, Boyd Gaming anticipates this transaction will close in the second half of the fourth quarter of this year.
Boyd also has reached separate development agreements for new projects in Broward County, Fla., and Sacramento County, Calif. In Florida, Boyd has entered into an agreement with Sunrise Sports Entertainment, LLP, the operator of the BankAtlantic Center, a major entertainment venue in south Florida and home to the NHL's Florida Panthers. This agreement provides the company the opportunity to take advantage of the potential of expanded gaming in south Florida at the site of the BankAtlantic Center. The BankAtlantic Center is the largest indoor arena of its kind in Florida, hosting more than 200 events annually. It is located across from Sawgrass Mills, the sixth-largest shopping mall in the country.
Separately, the company reached an agreement with Wilton Rancheria, a federally recognized tribe located about 30 miles southeast of Sacramento, to develop and manage a gaming entertainment complex. The deal is subject to the receipt of all required local, state and federal approvals, a process the company believes will take approximately 24 months.