Boyd Gaming Corporation reported a first quarter net loss of $13.8 million, or 16 cents per share, compared to a loss of $32.6 million, or 37 cents per share, in the same period last year. The company said the loss was due in part to a non-cash, pre-tax impairment charge of $28.4 million related to the write-off of goodwill incurred as a result of the finalization of Boyd's purchase price for Dania Jai-Alai in January 2009. Adjusted earnings for the first quarter 2009 were $13 million, or 15 cents per share, compared to $29.6 million, or 34 cents per share, for the same period in 2008.
During the first quarter, certain pre-tax adjustments resulted in a net reduction of income by $41.5 million ($26.8 million, net of tax, or 31 cents per share). By comparison, the first quarter 2008 included certain pre-tax adjustments that had a net effect of reducing income by $95 million ($62.2 million, net of tax, or 71 cents per share). Net revenues were $434.8 million for the first quarter 2009, compared to $471.1 million for the same quarter in 2008, a decrease of 7.7 percent. Total adjusted EBITDA was $109.6 million for the quarter, compared to $127.7 million in the prior year.
"The recession continues to impact our business, but we're encouraged by some positive trends that developed during the quarter," said Keith Smith, president and CEO of Boyd Gaming. "In our Las Vegas locals region, we began to see signs of stabilization, while Borgata continued to outperform a severely challenged Atlantic City market. Results were especially encouraging in our Midwest and South and Downtown Las Vegas regions, both of which posted gains for the quarter. These regional performances helped to offset difficult economic climates in Las Vegas and Atlantic City, and demonstrate the value of geographic diversification to our company."
In the Las Vegas locals segment, first quarter 2009 net revenues were $170.1 million versus $206.5 million for the first quarter 2008. First quarter 2009 adjusted EBITDA was $45.3 million, a 32 percent decrease from the $66.7 million in the same quarter 2008. Boyd said it continues to be impacted by overall weakness in consumer spending, as well as significant declines in room rates. Boyd's Downtown Las Vegas properties generated net revenues of $58.7 million and adjusted EBITDA of $13.4 million for the first quarter 2009, versus $60.9 million and $10.2 million, respectively, for the first quarter 2008.
In the Midwest and South region, Boyd recorded $206.1 million in net revenues for the first quarter 2009, compared to $203.7 million for the same period in 2008. Adjusted EBITDA for the current period was $48 million, an increase of 5.3 percent from the $45.6 million reported in the first quarter of 2008. Continued strength at the company's Louisiana properties helped boost results from this region, highlighted by all-time record revenue and adjusted EBITDA at Delta Downs.
In Atlantic City, Borgata's operating income for the first quarter 2009 was $25.5 million versus $37.1 million for the first quarter 2008. Net revenues for Borgata were $187.9 million for the first quarter 2009, down compared to the $202 million recorded in the same quarter in 2008. Adjusted EBITDA was $45.9 million, compared to $55.5 million for the first quarter 2008. Borgata's results were adversely impacted by the recession and an increasingly competitive regional environment. "We responded aggressively to this downturn by streamlining our operations and removing costs from across our business," said Paul Chakmak, executive vice president and COO. "These efforts helped lessen the recession's impact on our results, particularly in our Las Vegas regions. Elsewhere, results were brighter. Our Louisiana properties have proven resilient, and our Blue Chip expansion is being favorably received as we transition from our opening phase." For more information, visit www.boydgaming.com.
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