Boyds Gaming Corporation Reveals a 2% YoY increase in Q4 Revenues

Boyd Gaming Corporation, one of the most successful casino entertainment companies in America, with a portfolio of 22 properties in eight states, have released their financial report for their fourth quarter and the full year of 2015.

A consistent growth process

For the fourth quarter, Boyd Gaming has reported revenues of $542.7 million, 2.1% year-on-year growth. The company only suffered a loss of $6.87 million in the quarter compared to the $32.4 million loss reported a year ago; the 2014 results included noncash intangible asset impairment charges of $40.6 million, while the same period in 2015 only included $17.5 million in similar costs; this was achieved by the early settlement of a $8.4 million debt. Share prices only saw a drop of $0.06 in this quarter compared to the $0.29 loss they suffered in the same period of the previous year.

The company also released their pro forma net revenues; $2.2 billion for the full year, an increase of 2.7% compared to 2014. Net income was $47.2 million, for 2015; a big jump from the $53 million loss the company suffered in 2014. Boyd Gaming faced impairment charges of $60.8 million in 2014 but in 2015, only paid $18.6 million in noncash impairment charges and $40.7 million in pre-tax losses; they also reduced their provisions by $30.4 million through an income tax appeal settlement. Share prices also rose by $0.42 compared to a loss of $0.48 in 2014.

Vegas: local and strip casino work well

Boyd’s Las Vegas casinos, aimed at entertainment for the locals, grossed net revenues of $158.8 million, 4.6% year-over-year growth; their adjusted EBIDA was $44 million. The fourth quarter has been the best for the company’s local casinos in eight years; they attributed this success to “broad-based growth” and other nongaming development.

Meanwhile, their downtown casinos generated revenues of $62.5 million, 4.8% year-over-year growth, with an adjusted EBIDA of $16.2 million, 23.4% increase. EBIDA values have shown growth for six consecutive quarters for these casinos; they believe the reduced cost of fuel and the increase in Vegas visitor traffic are both responsible. Keith Smith, CEO of Boyd Gaming, mentioned that the recovering economy in Nevada has been good for the company; increasing employment, weekly wages and tourist movement.

Other locations and investments

Borgata Casino, Hotel and Spa in Atlantic City, which is partly owned by Boyd Gaming, has reported net revenues of $193 million in the fourth quarter, an increase of 7.7% compared to 2014; adjusted EBIDA also rose 27.3% in the fourth quarter; this was attributed to better marketing initiatives, as well as higher table hold, gross slot win, gross gaming market share and hotel room occupancy.

Boyds has also invested a total of $100 million towards nongaming restructure of the company. They have renovated more than 3,000 of their hotel rooms and opened several new food and beverage outlets in Las Vegas. Smith said that he is confident that demand and revenues will continue to grow for Boyd Gaming in the future.

We will be happy to hear your thoughts

Leave a reply