Boyd Gaming, the casino company that operates several Las Vegas properties including the California, the Orleans and Suncoast, announced its fourth quarter and full-year earnings today.
Company: Boyd Gaming Corp. (NYSE: BYD)
Revenue: $531.6 million for the fourth quarter of 2014, up 1.4 percent from the same time period in 2013. For the year, Boyd said in its earnings press release that pro forma net revenue was $2.14 billion, down from $2.2 billion the year before.
Loss: $32.4 million for the fourth quarter, compared to $47.3 million in 2013. For the year, the company’s net loss was $53 million, compared to a net loss of $80.3 million in 2013.
Loss per share: 29 cents for the fourth quarter, compared with 43 cents in 2013’s fourth quarter. Boyd’s loss per share for the full year was 48 cents, compared with 83 cents the year before.
What it means: Among its casinos primarily geared toward Las Vegas locals, Boyd said revenues for the fourth quarter of 2014 were $151.7 million, a 2.1 percent increase from the same period in 2013. Meanwhile, adjusted cash flow rose 19.7 percent to $39.8 million. Boyd noted that gaming revenue rose a little bit but stressed that “targeted capital investments in new amenities” helped boost nongaming revenue.
In downtown Las Vegas, Boyd’s net revenues were $59.6 million for the quarter, a slight drop from $59.8 million during the same quarter one year earlier. Adjusted cash flow downtown was $13.1 million for the quarter, up about $2 million “after excluding one-time adjustments” in 2013, the company said. Boyd said it was helped by strong Hawaiian visitation — a market the company caters heavily to — and more foot traffic on Fremont Street.
The Borgata, an Atlantic City casino partly owned by Boyd, revenue rose 14 percent in the fourth quarter to $179.1 million. That figure includes $7 million from online gaming. The company said Borgata experienced “significant growth” in the gaming as well as nongaming areas.
The company had $3.48 billion in total debt at the end of the year.
Previously, Boyd had said the company is exploring forming a real estate investment trust. CEO Keith Smith said on a conference call with analysts that the company’s evaluation of that idea is “ongoing” and “we do not have any specifics to update you on at this time.”
Quote: "In the fourth quarter we were pleased to achieve (cash flow) growth and margin improvement in every segment of our business. We saw modest revenue gains throughout our portfolio, continued growth in our Las Vegas business and ongoing stabilization in our regional markets. We also made steady progress executing our strategy to enhance our nongaming amenities, which contributed to improved growth and profitability in the quarter.” — CEO Keith Smith