Boyd Gaming Reports Fourth Quarter, Year-End Results

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Boyd Gaming Reports Fourth Quarter, Year-End Results

LAS VEGAS, March 2 -- Boyd Gaming Corporation (NYSE:BYD) today reported financial results for the fourth quarter and full year ended December 31, 2009.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20030219/BOYDLOGO)

For the quarter, we reported a net loss of $1.0 million, or $0.01 per share, compared to a net loss of $220.8 million, or $2.51 per share, in the same period last year.  Adjusted Earnings(1) for the fourth quarter 2009 were $0.2 million, or less than $0.01 per share, compared to $11.4 million, or $0.13 per share, for the same period in 2008.

Certain pre-tax items resulted in a net increase in Adjusted Earnings of $2.0 million ($1.2 million, net of tax, or $0.01 per share) during the fourth 2009, including preopening expenses related to Echelon and the write-off of deferred loan fees, offset by gains on retirement of debt.  By comparison, the fourth quarter 2008 included certain pre-tax adjustments that had a net effect of increasing Adjusted Earnings by $271.8 million ($232.2 million, net of tax, or $2.64 per share), primarily related to non-cash impairment charges related to the writedown of goodwill and intangible assets of certain business units acquired in previous years.

Net revenues were $384.9 million for the fourth quarter 2009, compared to $422.6 million for the same quarter in 2008, a decrease of 8.9%.  Total Adjusted EBITDA was $74.0 million for the quarter, a decrease of 21.4% from $94.1 million in the prior year.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented on the quarter, "The stabilizing trends we've noted previously continued during the fourth quarter, and we were especially encouraged by our Las Vegas Locals business, which showed sequential improvement from the third quarter.  Visitation to the city continues to grow, reflecting the popularity of Las Vegas as a destination. As the economic recovery accelerates, consumer spending will increase, providing us the opportunity to capitalize on our more efficient business model."

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

Full-Year 2009 Results

We reported net income for the year ended December 31, 2009 of $4.2 million, or $0.05 per share. By comparison, we reported a net loss of $223.0 million, or $2.54 per share, for the year ended December 31, 2008.  Adjusted Earnings for the year ended December 31, 2009 were $31.6 million, or $0.37 per share, compared to $81.4 million, or $0.93 per share, for the full year 2008.

Net revenues were $1.64 billion and $1.78 billion for the years ended December 31, 2009 and 2008, respectively.  Total Adjusted EBITDA was $385.9 million for the year 2009, compared to $442.6 million in the prior year.

  Key Operations Review
  Las Vegas Locals

In our Las Vegas Locals segment, fourth-quarter 2009 net revenues were $155.0 million versus $176.8 million for the fourth quarter 2008.  Fourth-quarter 2009 Adjusted EBITDA was $34.7 million, a 20.7% decrease from the $43.8 million in the same quarter 2008.  We saw stable visitation at our properties in the Las Vegas Valley, but continued to be impacted by depressed consumer discretionary spending.

Downtown

Our Downtown Las Vegas region reported net revenues of $58.0 million, compared to $60.8 million in the prior year quarter.  Adjusted EBITDA for the fourth quarter was $12.2 million, a 7.7% decrease from the $13.3 million reported in the fourth quarter 2008.  Stronger operating results at our three downtown properties were offset by lower pricing and higher fuel costs associated with our Hawaiian charter service.

Midwest and South

In our Midwest and South region, we recorded $171.9 million in net revenues for the fourth quarter 2009, compared to $185.1 million for the same quarter in 2008.  Adjusted EBITDA for the current period was $28.1 million, a decrease of 22.7% from the $36.3 million reported in the same period of 2008.  In Indiana, Blue Chip reported solid year-over-year growth, which was offset by previously anticipated weakness at our southern Louisiana properties.

Borgata

Net revenues for Borgata were $175.4 million for the fourth quarter 2009, compared to $183.5 million recorded in the same quarter in 2008.  Operating income for the fourth quarter 2009 was $17.1 million, up from $16.5 million in the prior year quarter.  Adjusted EBITDA was $36.4 million, essentially flat with the $36.7 million recorded in the fourth quarter 2008.  Borgata was able to maintain Adjusted EBITDA at prior-year levels despite the impact of severe winter weather in December.

Key Financial Statistics

The following is additional information as of and for the three months ended December 31, 2009:

  --  Debt balance: $2.58 billion
  --  Cash: $93.2 million
  --  Capital expenditures: $15.5 million
  --  Debt balance at Borgata: $679.6 million
  --  Distribution from Borgata to partners: $89 million

  Conference Call Information

We will host our fourth quarter 2009 conference call today, March 2, at 12:00 p.m. Eastern.  The conference call number is 888.713.4218 and the passcode is 87895430.  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 http://www.boydgaming.com or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=95703&eventID= 2745655

Following the call's completion, a replay will be available by dialing 888.286.8010 today, March 2, beginning two hours after the completion of the call and continuing through Tuesday, March 9.  The passcode for the replay will be 87359864.  The replay will also be available on the Internet at http://www.boydgaming.com .

   
  BOYD GAMING CORPORATION AND SUBSIDIARIES
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                         
                                                                           
                                                                       
                                  Three Months Ended         Year Ended
                                     December 31,           December 31,
                                   ---------------        ----------------
                                   2009       2008        2009        2008
                                   ----       ----        ----        ----
  Revenues                                     (In thousands)               
    Gaming                       $320,377   $351,664  $1,372,091 $1,477,476
    Food and beverage              55,950     60,277     229,374    251,854
    Room                           29,054     32,715     122,305    140,651
    Other                          24,253     28,497     100,396    117,574
                                   ------     ------     -------    -------
  Gross revenues                  429,634    473,153   1,824,166  1,987,555
  Less promotional                                                         
   allowances                      44,686     50,523     183,180    206,588
                                   ------     ------     -------    -------
          Net revenues            384,948    422,630   1,640,986  1,780,967
                                  -------    -------   ---------  ---------
                                                                           
  Costs and expenses                                                       
    Gaming                        162,710    172,420     664,739    690,847
    Food and beverage              31,306     33,084     125,830    144,092
    Room                            9,443     10,257      39,655     43,851
    Other                          19,110     20,221      77,840     89,222
    Selling, general                                                       
     and administrative            67,445     72,311     284,937    299,662
    Maintenance and                                                         
     utilities                     22,185     23,232      92,296     95,963
    Depreciation and                                                       
     amortization                  39,103     41,679     164,427    168,997
    Corporate expense              12,540     10,009      47,617     52,332
    Preopening expenses             3,025      3,501      17,798     20,265
    Write-downs and                                                         
     other charges, net               365    290,819      41,780    385,521
                                      ---    -------      ------    -------
        Total costs and                                                     
         expenses                 367,232    677,533   1,556,919  1,990,752
                                  -------    -------   ---------  ---------
                                                                           
  Operating income                                                         
   from Borgata                     8,205      7,915      72,126     56,356
                                    -----      -----      ------     ------
  Operating                                                                 
   income (loss)                   25,921   (246,988)    156,193   (153,429)
                                   ------   --------     -------   --------
                                                                           
  Other expense                                                             
   (income)                                                                 
    Interest income                    (1)        (1)         (6)    (1,070)
    Interest                                                               
     expense, net of                                                       
     amounts                                                               
     capitalized                   33,024     25,323     146,830    110,146
    Increase in                                                             
     value of                                                               
     derivative                                                             
     instruments                        -          -           -       (425)
    Gain on early                                                           
     retirements of debt           (3,223)   (26,124)    (15,284)   (28,553)
    Other non-                                                             
     operating expenses                 3          -          33          -
    Other non-                                                             
     operating                                                             
     expenses from                                                         
     Borgata, net                   3,073      3,120      19,303     16,009
                                    -----      -----      ------     ------
          Total other                                                       
           expense, net            32,876      2,318     150,876     96,107
                                   ------      -----     -------     ------
                                                                           
  Income (loss) before                                                     
   income taxes                    (6,955)  (249,306)      5,317   (249,536)
  Benefit from (provision                                     
   for) income taxes                5,931     28,532      (1,076)    26,531
                                    -----     ------      ------     ------
  Net income (loss)               $(1,024) $(220,774)     $4,241   (223,005)
                                  =======  =========      ======  =========
                                                                           
  Basic net income                                                         
   (loss) per common share         $(0.01)    $(2.51)      $0.05     $(2.54)
                                   ======     ======       =====     ======
                                                                           
  Weighted average basic                                       
   shares outstanding              86,276     87,882      86,429     87,854
                                   ======     ======      ======     ======
                                                                           
  Diluted net income (loss)                                   
   per common share                $(0.01)    $(2.51)      $0.05    $(2.54)
                                   ======     ======       =====     ======
                                                                           
  Weighted average                                                         
   diluted shares                                                           
   outstanding                     86,276     87,882      86,517     87,854
                                   ======     ======      ======     ======
                                                                           
  Dividends declared                                                       
   per common share                    $-         $-          $-      $0.30
                                      ===        ===         ===      =====

  The following table reconciles the net income (loss) based upon United
  States generally accepted accounting principles to adjusted earnings and
  adjusted earnings per share.                             
                                                           
                                                           
                                                           
                                 Three Months Ended          Year Ended   
                                     December 31,           December 31,   
                                   ---------------        ----------------
                                   2009       2008        2009        2008
                                   ----       ----        ----        ----
                                                 (In thousands)           
  Net income (loss)              $(1,024) $(220,774)     $4,241   $(223,005)
    Adjustments:                                                           
      Preopening expenses          3,025      3,501      17,798      20,265
      Our share of                                                         
       Borgata's                                                           
       preopening                                                         
       expenses                        -       (141)        349       2,785
      Our share of                                                         
       Borgata's other                                                     
       items and write-                                                   
       downs, net                      5          5     (14,303)         81
      Write-downs and                                                     
       other charges, net            365    290,819      41,780     385,521
      Increase in                                                       
       value of                                                         
       derivative                                                       
       instruments                     -          -           -        (425)
      Gain on early                                                     
       retirements of debt        (3,223)   (26,124)    (15,284)    (28,553)
      Other non-                                                       
       operating expenses              3          -          33           -
      Prior period                                                     
       interest expense                                                 
       related to the                                                   
       finalization of                                                 
       our purchase price                                               
       for Dania Jai-Alai              -          -       8,883           -
      Accelerated                                                   
       interest                                                     
       expense                                                       
       related to our                                               
       bank credit                                                   
       facility amendment          1,813          -       1,813           -
      Income tax                                                       
       effect for                                                       
       above adjustments            (758)   (39,616)    (13,680)    (78,981)
      Certain one-time                                                 
       permanent tax                                                   
       adjustments                     -      3,745           -       3,745
                                     ---      -----         ---       -----
  Adjusted earnings                 $206    $11,415     $31,630     $81,433
                                    ====    =======     =======     =======
                                                                       
  Adjusted earnings                                                     
   per diluted share                                                   
   (Adjusted EPS)                  $0.00      $0.13       $0.37       $0.93
                                   =====      =====       =====       =====
                                                                       
  Weighted average                                                     
   diluted shares                                                       
   outstanding                    86,276     87,882      86,517      87,854
                                  ======     ======      ======      ======
                                                                       

  The following table illustrates the impact of the above adjustments on
  earnings per share.

                                  Three Months Ended        Year Ended     
                                     December 31,           December 31,   
                                   ---------------        ----------------
                                   2009       2008        2009        2008
                                   ----       ----        ----        ----
  Diluted net                                                             
   income (loss)                                                           
   per common share               $(0.01)    $(2.51)      $0.05      $(2.54)
    Adjustments:                                                           
      Preopening expenses           0.04       0.04        0.21        0.23
      Our share of                                                         
       Borgata's                                                           
       preopening                                                         
       expenses                        -          -           -        0.03
      Our share of                                                         
       Borgata's other                                                     
       items and write-                                                   
       downs, net                      -          -       (0.16)          -
      Write-downs and                                                     
       other charges, net              -       3.31        0.48        4.39
      Increase in                                                         
       value of                                                           
       derivative                                                         
       instruments                     -          -           -           -
      Gain on early                                                       
       retirements of debt         (0.04)     (0.30)      (0.17)      (0.32)
      Other non-                                                         
       operating expenses              -          -           -           -
      Prior period                                                         
       interest expense                                                   
       related to the                                                     
       finalization of                                                     
       our purchase price                                                 
       for Dania Jai-Alai              -          -        0.10           -
      Accelerated                                                       
       interest                                                         
       expense                                                         
       related to our                                                   
       bank credit                                                       
       facility amendment           0.02          -        0.02           -
      Income tax                                                       
       effect for                                                         
       above                                                               
       adjustments                 (0.01)     (0.45)      (0.16)      (0.90)
      Certain one-time                                                     
       permanent tax                                                       
       adjustments                     -       0.04           -        0.04
                                     ---       ----         ---        ----
  Adjusted earnings                                                       
   per diluted share                                                       
   (Adjusted EPS)                  $0.00      $0.13       $0.37       $0.93
                                   =====      =====       =====       =====
                                                                           

                             
  The following table presents Net Revenues and Adjusted EBITDA by operating
  segment and reconciles Adjusted EBITDA to net income (loss) for the three
  months and year ended December 31, 2009 and 2008.  Note that in the
  Company's periodic reports filed with the Securities and Exchange
  Commission, the results from Dania Jai-Alai and corporate expense are
  classified as part of total other operating costs and expenses and are not
  included in Reportable Segment Adjusted EBITDA.
                                                                           
                                                                           
                                  Three Months Ended         Year Ended     
                                     December 31,           December 31,   
                                   ---------------        ---------------   
                                   2009       2008        2009       2008
                                   ----       ----        ----       ----
                                               (In thousands)               
  Net Revenues                                                           
    Las Vegas Locals            $154,966   $176,819    $641,941    $763,002
    Downtown Las Vegas (a)        58,049     60,755     229,149     240,232
    Midwest and South            171,933    185,056     769,896     777,733
                                 -------    -------     -------     -------
            Net Revenues        $384,948   $422,630  $1,640,986  $1,780,967
                                ========   ========  ==========  ==========
                                                                           
  Adjusted EBITDA                                                         
    Las Vegas Locals             $34,736    $43,828    $155,336    $218,591
    Downtown Las Vegas            12,247     13,264      46,102      40,657
    Midwest and South             28,081     36,327     161,892     166,366
                                  ------     ------     -------     -------
        Wholly-owned                                                       
         property Adjusted                                                 
         EBITDA                   75,064     93,419     363,330     425,614
        Corporate expense (c)     (9,581)    (7,391)    (36,934)    (43,494)
                                  ------     ------     -------     -------
            Wholly-owned                                                   
             Adjusted EBITDA      65,483     86,028     326,396     382,120
    Our share of                                                           
     Borgata's                                                             
     operating income                                                     
     before net                                                           
     amortization,                                                         
     preopening and                                                       
     other items (d)               8,535      8,104      59,470      60,520
                                   -----      -----      ------      ------
          Adjusted EBITDA (e)     74,018     94,132     385,866     442,640
                                  ------     ------     -------     -------
                                                                           
  Other operating                                                         
   costs and expenses                                                     
    Deferred rent                  1,088      1,115       4,354       4,460
    Depreciation and                                                       
     amortization (f)             39,428     42,004     165,725     170,295
    Preopening expenses            3,025      3,501      17,798      20,265
    Our share of                                                           
     Borgata's                                                           
     preopening                                                         
     expenses                          -       (141)        349       2,785
    Our share of                                                         
     Borgata's other                                                   
     items and write-                                                 
     downs, net                        5          5     (14,303)         81
    Share-based                                                         
     compensation expense          4,186      3,817      13,970      12,662
    Write-downs and                                                     
     other charges, net              365    290,819      41,780     385,521
                                     ---    -------      ------     -------
        Total other operating                                           
         costs and expenses       48,097    341,120     229,673     596,069
                                  ------    -------     -------     -------
  Operating income (loss)         25,921   (246,988)    156,193    (153,429)
                                  ------   --------     -------    --------
                                                                       
  Other non-operating items                                                 
    Interest                                                           
     expense, net (b)             33,023     25,322     146,824     109,076
    Increase in value of                                                   
     derivative instruments            -          -           -        (425)
    Gain on early                                                     
     retirements of debt          (3,223)   (26,124)    (15,284)    (28,553)
    Other non-operating expenses       3          -          33           -
    Our share of Borgata's other                                           
     non-operating expenses, net   3,073      3,120      19,303      16,009
                                   -----      -----      ------      ------
        Total other non-                                           
         operating costs and                                       
         expenses                 32,876      2,318     150,876      96,107
                                  ------      -----     -------      ------
                                                                   
  Income (loss) before                                             
   income taxes                   (6,955)  (249,306)      5,317    (249,536)
  Benefit from (provision                                           
   for) income taxes               5,931     28,532      (1,076)     26,531
                                   -----     ------      ------      ------
  Net income (loss)              $(1,024) $(220,774)     $4,241   $(223,005)
                                 =======  =========      ======   =========
                                                                   
                                                                   
  (a) Includes revenues related to Vacations Hawaii and other travel agency
      related entities of $8.2 million and $32.3 million for the three
      months and year ended December 31, 2009, respectively, and $10.5
      million and $42.7 million for the three months and year ended December
      31, 2008, respectively.

  (b) Net of interest income and amounts capitalized.  Interest expense for
      the year ended December 31, 2009, includes $8.9 million of prior
      period interest expense (from the March 1, 2007 date of acquisition to
      December 31, 2008) related to the January 2009 amendment to the
      purchase agreement resulting in the finalization of our purchase price
      for Dania Jai-Alai, as well as $1.8 million in accelerated interest
      expense related to our bank credit facility amendment.

  (c) The following table reconciles the presentation of corporate expense
      on our condensed consolidated statements of operations to the
      presentation on the accompanying table.

                                                                           
                                                                           
                                  Three Months Ended         Year Ended   
                                      December 31,           December 31, 
                                    ---------------        ---------------
                                    2009       2008        2009       2008
                                    ----       ----        ----       ----
                                                (In thousands)     
  Corporate expense as                                                 
   reported on our consolidated
   statements of operations       $12,540    $10,009     $47,617    $52,332
  Corporate share-based       
   compensation expense            (2,959)    (2,618)    (10,683)    (8,838)
                                   ------     ------     -------     ------
  Corporate expense                                                   
   as reported on the                                                 
   accompanying table              $9,581     $7,391     $36,934    $43,494
                                   ======     ======     =======    =======
                                                                       
  (d) The following table reconciles the presentation of our share of
      Borgata's operating income on our condensed consolidated statements of
      operations to the presentation of our share of Borgata's results on
      the accompanying table.

                                                                     
                                                                     
                                  Three Months Ended         Year Ended 
                                      December 31,           December 31,
                                    ---------------        ----------------
                                    2009       2008        2009        2008
                                    ----       ----        ----        ----
                                                 (In thousands)       
  Operating income from Borgata as
   reported on our consolidated   
   statements of operations        $8,205     $7,915     $72,126     $56,356
  Add back:                                                                 
    Net amortization                                                       
     expense related to                                                     
     our investment in                                                     
     Borgata                          325        325       1,298       1,298
    Our share of                                                           
     Borgata's                                                             
     preopening                                                             
     expenses                           -       (141)        349       2,785
    Our share of                                                           
     Borgata's other                                                       
     items and write-                                                       
     downs, net                         5          5     (14,303)         81
                                      ---        ---     -------         ---
  Our share of                                                             
   Borgata's operating income                   
   before net amortization,                     
   preopening and other items                           
   as reported on the                                                       
   accompanying table              $8,535     $8,104     $59,470     $60,520
                                   ======     ======     =======     =======

   (e) The following table reconciles Adjusted EBITDA to EBITDA and net
       income (loss).
       
       
       
                                   Three Months Ended         Year Ended   
                                      December 31,           December 31,   
                                    ---------------        ----------------
                                    2009       2008        2009        2008
                                    ----       ----        ----        ----
                                                (In thousands)               
  Adjusted EBITDA                 $74,018    $94,132    $385,866   $442,640
    Deferred rent                   1,088      1,115       4,354      4,460
    Preopening expenses             3,025      3,501      17,798     20,265
    Our share of Borgata's
     preopening expenses                -       (141)        349      2,785
    Our share of                                                           
     Borgata's other                                                       
     items and write-                                                     
     downs, net                         5          5     (14,303)        81
    Share-based compensation                                               
     expense                        4,186      3,817      13,970     12,662
    Write-downs and                                                       
     other charges, net               365    290,819      41,780    385,521
    Increase in value of                                                   
     derivative instruments             -          -           -       (425)
    Gain on early                                                         
     retirements of debt           (3,223)   (26,124)    (15,284)   (28,553)
    Other non-operating expenses        3          -          33          -
    Our share of Borgata's                                                 
     other non-operating                                                   
     expenses, net                  3,073      3,120      19,303     16,009
                                    -----      -----      ------     ------
  EBITDA                           65,496   (181,980)    317,866     29,835
                                   ------   --------     -------     ------
    Depreciation and                                                     
     amortization                  39,428     42,004     165,725    170,295
    Interest expense, net          33,023     25,322     146,824    109,076
    Benefit from (provision                                               
     for) income taxes             (5,931)   (28,532)      1,076    (26,531)
                                   ------    -------       -----     ------
  Income (loss) from                                                     
   continuing operations          $(1,024) $(220,774)     $4,241  $(223,005)
                                  =======  =========      ======   ========

  (f) The following table reconciles the presentation of depreciation and
      amortization on our condensed consolidated statements of operations to
      the presentation on the accompanying table.
   
   
   
                                  Three Months Ended        Year Ended     
                                     December 31,           December 31,   
                                   ---------------        ----------------
                                   2009       2008        2009        2008
                                   ----       ----        ----        ----
                                                (In thousands)             
  Depreciation and                                                       
   amortization as reported on                                           
   our consolidated statements
   of operations                  $39,103    $41,679    $164,427    $168,997
  Net amortization expense
   related to our investment in                                           
   Borgata                            325        325       1,298       1,298
                                      ---        ---       -----       -----
  Depreciation and amortization                                           
   as reported on the                                                     
   accompanying table             $39,428    $42,004    $165,725    $170,295
                                  =======    =======    ========    ========
                                                                         
                                                                         

  The following table reports Borgata's financial results.

                                                                           
                                 Three Months Ended         Year Ended     
                                     December 31,           December 31,   
                                   ---------------        ----------------
                                   2009       2008        2009        2008
                                   ----       ----        ----        ----
                                                 (In thousands)           

  Gaming revenue                 $153,387   $169,796    $691,428   $734,306
  Non-gaming revenue               68,508     72,722     299,173    310,157
                                   ------     ------     -------    -------
  Gross revenues                  221,895    242,518     990,601  1,044,463
  Less promotional allowances      46,487     59,035     213,193    213,974
                                   ------     ------     -------    -------
      Net revenues                175,408    183,483     777,408    830,489
                                  -------    -------     -------    -------
  Expenses                        138,960    146,765     579,749    633,353
  Depreciation and                                                     
   amortization                    19,380     20,511      78,719     76,096
  Preopening expenses                   -       (282)        699      5,570
  Write-downs and other                                                 
   items, net                          10          9     (28,606)       162
                                      ---        ---     -------        ---
  Operating income                 17,058     16,480     146,847    115,308
                                   ------     ------     -------    -------
  Interest expense, net            (5,787)    (8,171)    (27,668)   (29,049)
  State income tax                                                     
   (provision) benefit               (359)     1,930     (10,938)    (2,970)
                                     ----      -----     -------     ------
      Total non-operating                                           
       expenses                    (6,146)    (6,241)    (38,606)   (32,019)
                                   ------     ------     -------    -------
  Net income                      $10,912    $10,239    $108,241    $83,289
                                  =======    =======    ========    =======

  The following table reconciles our share of Borgata's financial results to
  the amounts reported on our condensed consolidated statements of
  operations.

                                  Three Months Ended        Year Ended   
                                      December 31,          December 31, 
                                    ---------------        --------------
                                    2009       2008        2009      2008
                                    ----       ----        ----      ----
                                                 (In thousands)           
  Our share of Borgata's
   operating income                $8,530     $8,240     $73,424    $57,654
  Net amortization                                                         
   expense related to                                                     
   our investment in                                                       
   Borgata                           (325)      (325)     (1,298)    (1,298)
                                     ----       ----      ------     ------
  Operating income from                                                   
   Borgata, as reported on                                                 
   our consolidated                                                       
   financial statements            $8,205     $7,915     $72,126    $56,356
                                   ======     ======     =======    =======
                                                                           
  Other non-operating                                                     
   expenses from                                                           
   Borgata, as reported on                                                 
   our consolidated                                                       
   financial statements            $3,073     $3,120     $19,303    $16,009
                                   ======     ======     =======    =======
                                                                           
                                                                           
                                                                           
  The following table reconciles operating income to Adjusted EBITDA for
  Borgata.
                                                                           
                                   Three Months Ended       Year Ended     
                                      December 31,          December 31,   
                                    ---------------       ----------------
                                    2009       2008       2009        2008
                                    ----       ----       ----        ----
                                                (In thousands)             
  Operating income                $17,058    $16,480    $146,847    $115,308
    Depreciation and                                                       
     amortization                  19,380     20,511      78,719      76,096
    Preopening expenses                 -       (282)        699       5,570
    Write-downs and other                                                   
     items, net                        10          9     (28,606)        162
                                      ---        ---     -------         ---
  Adjusted EBITDA                 $36,448    $36,718    $197,659    $197,136
                                  =======    =======    ========    ========
                                                                           

  The following table reconciles Adjusted EBITDA to EBITDA and net income
  for Borgata.
                                                                           
                                   Three Months Ended        Year Ended     
                                      December 31,           December 31,   
                                    ---------------        ----------------
                                    2009       2008        2009        2008
                                    ----       ----        ----        ----
                                                (In thousands)             
  Adjusted EBITDA                 $36,448    $36,718    $197,659    $197,136
    Preopening expenses                 -       (282)        699       5,570
    Other items                                                             
     and write-downs, net              10          9     (28,606)        162
                                      ---        ---     -------         ---
  EBITDA                           36,438     36,991     225,566     191,404
                                   ------     ------     -------     -------
    Depreciation and                                                       
     amortization                  19,380     20,511      78,719      76,096
    Interest                                                               
     expense, net                   5,787      8,171      27,668      29,049
    State income tax                                                       
     (provision) benefit              359     (1,930)     10,938       2,970
                                      ---     ------      ------       -----
  Net income                      $10,912    $10,239    $108,241     $83,289
                                  =======    =======    ========     =======

  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.

Note that while the Company will continue to include the results of Dania Jai-Alai and corporate expense in Adjusted EBITDA for purposes of its earnings releases, in filings of the Company's periodic reports with the Securities and Exchange Commission, the results of Dania Jai-Alai and corporate expense are not included in the Company's Reportable Segment Adjusted EBITDA.  Effective April 1, 2008, the Company reclassified the reporting of its Midwest and South segment to exclude the results of Dania Jai-Alai, since it does not share similar economic characteristics with our other Midwest and South operations. In the Company's periodic reports, Dania Jai-Alai's results are included as part of total other operating costs and expenses. In addition, as of the same date, we reclassified the reporting of corporate expense to exclude it from our subtotal for Reportable Segment Adjusted EBITDA and include it as part of total other operating costs and expenses. Furthermore, in the Company's periodic reports, corporate expense is presented to include its portion of share-based compensation expense.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in our industry which we believe, when considered with measures calculated in accordance with United States Generally Accepted Accounting Principles (GAAP), gives investors a more complete understanding of 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 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 do not reflect such items when calculating EBITDA; however, we adjust for these items and refer to this measure as Adjusted EBITDA. 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 management in its 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 determining the value of acquisitions and dispositions. Adjusted EBITDA is also widely 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, write-downs and other charges, net, increase in value of derivative instruments, gain on early retirements of debt, other non-operating expenses, and our share of Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. In addition, Adjusted EBITDA includes the results of Dania Jai-Alai and corporate expense.  A reconciliation of Adjusted EBITDA to EBITDA and 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, increase in value of derivative instruments, write-downs and other charges, net, gain on early retirements of debt, prior period interest expense related to the finalization of our purchase price for Dania Jai-Alai, accelerated interest expense related to our bank credit facility amendment, certain one-time permanent tax readjustments, other non-operating expenses, 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 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 and Adjusted EPS has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS 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 and Adjusted EPS are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS 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 and Adjusted EPS 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 the future, including, but not limited to, statements that Las Vegas continues to be an extremely popular destination, the viability of the Las Vegas market, and statements regarding current economic conditions, that customer spending will increase, industry growth and related opportunities, the Company's resources and strategy, and future outlook. Forward- looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. In particular, the Company can provide no assurances when or if the economy will improve, the timing for resuming construction on Echelon, if at all, the future plans for Echelon and the site for Echelon and whether the Company will be able to remain well positioned to manage through the current economic cycle. Further risks include the timing or effects of the Company's delay of construction at Echelon and when, or if, construction will be recommenced, or the effect that such delay will have on the Company's business, operations or financial condition. Additional factors that could cause actual results to differ materially are the following: competition, litigation, financial community and rating agency perceptions of the Company, changes in laws and regulations, including increased taxes, the availability and price of energy, weather, regulation, economic, credit and capital market conditions (and the ability of the Company's joint venture participants to secure favorable financing, if at all) and the effects of war, terrorist or similar activity. In addition, the Company's development projects are subject to the many risks inherent in the construction of a new enterprise, including poor performance or non-performance by any of the joint venture partners or other third parties on whom the Company is relying, unanticipated design, construction, regulatory, environmental and operating problems and lack of demand for the Company's projects, as well as unanticipated delays and cost increases, shortages of materials, shortages of skilled labor or work stoppages, unforeseen construction scheduling, engineering, environmental, permitting, construction or geological problems, weather interference, floods, fires or other casualty losses. In addition, the Company's anticipated costs and construction periods for projects are based upon budgets, conceptual design documents and construction schedule estimates prepared by the Company in consultation with its architects and contractors. Many of these costs are estimated at inception of the project and can change over time as the project is built to completion. The cost of any project may vary significantly from initial budget expectations, and the Company may have a limited amount of capital resources to fund cost overruns. If the Company cannot finance cost overruns on a timely basis, the completion of one or more projects may be delayed until adequate funding is available. The Company cannot assure that any project will be completed, if at all, on time or within established budgets, or that any project will result in increased earnings to the Company. Significant delays, cost overruns, or failures of the Company's projects to achieve market acceptance could have a material adverse effect on the Company's business, financial condition and results of operations. Furthermore, the Company's projects may not help it compete with new or increased competition in its markets. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, filed with the SEC, 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 16 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana.  Boyd Gaming press releases are available at http://www.prnewswire.com.  Additional news and information on Boyd Gaming can be found at http://www.boydgaming.com .

Photo:  http://www.newscom.com/cgi-bin/prnh/20030219/BOYDLOGO
AP Archive:  http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
Source: Boyd Gaming Corporation
   

CONTACT:  Financial, Josh Hirsberg, +1-702-792-7234,
joshhirsberg@boydgaming.com, or Media, Rob Meyne, +1-702-792-7353,
robmeyne@boydgaming.com,  both of Boyd Gaming Corporation

Web Site:  http://www.boydgaming.com/

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