Boyd Gaming Reports First-Quarter 2014 Results

LAS VEGAS, April 30, 2014 /PRNewswire/ Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the first quarter ended March 31, 2014.

Boyd Gaming reported first-quarter 2014 net revenues of $708.3 million, compared to $735.6 million during the same quarter in 2013, and total Adjusted EBITDA (1) of $144.5 million, versus $163.5 million in the year-ago quarter. Adjusted EBITDA was negatively impacted by an estimated $10 million to $12 million during the quarter due to unusually severe winter weather at the Company's operations outside of Nevada. Additionally, Borgata's online gaming operations recorded a $3.2 million operating loss related to its launch.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "Boyd Gaming continued to make steady progress in the first quarter, delivering results at the high end of our guidance. We were particularly encouraged by the performance of our Las Vegas Locals business, which generated its fifth straight quarter of EBITDA growth. The refinements we have made to our operations are paying clear dividends in all segments of our business, and we expect additional benefits as the economy recovers. We further strengthened our financial position as well, repaying an additional $55 million in debt in the first quarter. We are diligently focused on building long-term value for our shareholders, and I remain confident about our future prospects."

Adjusted Earnings (1) for the first quarter 2014 reflect a loss of $4.1 million, or $0.04 per share, compared to income of $1.4 million, or $0.02 per share, for the same period in 2013. The calculations of Adjusted Earnings and Adjusted Earnings per share are presented in a table at the end of this press release.

On a GAAP basis, the Company reported a net loss of $6.2 million, or $0.06 per share, for the first quarter 2014, compared to a net loss of $7.3 million, or $0.08 per share, for the year-ago period.

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

Key Operations Review

Las Vegas Locals

In the Las Vegas Locals segment, first-quarter 2014 net revenues were $151.4 million, compared to $152.8 million in the year-ago quarter. First-quarter 2014 Adjusted EBITDA increased 2.0% to $40.0 million, compared to $39.2 million in the first quarter of 2013. Growth in non-gaming operations and continued efficiencies helped drive the fifth consecutive quarter of EBITDA gains and margin improvements in the Locals segment.

Downtown

In the Downtown Las Vegas segment, net revenues were $55.7 million in the first quarter of 2014, up 3.1% from $54.1 million in the year-ago period. Adjusted EBITDA increased 31.2% to $9.3 million, compared to $7.1 million in the first quarter of 2013. Results benefited from increased traffic from Fremont Street, as well as continued yield improvements in the Company's Hawaiian charter service.

Midwest and South; Peninsula

In the Midwest and South segment, net revenues were $211.6 million, compared to $229.1 million in the first quarter of 2013. Adjusted EBITDA was $44.1 million versus $49.7 million in the year-ago period.

During the first quarter of 2014, the Peninsula segment reported net revenues of $122.3 million and Adjusted EBITDA of $44.8 million. This compares to net revenues of $133.9 million and Adjusted EBITDA of $50.7 million in the first quarter of 2013.

Results were predominately impacted by unusually severe winter weather, as well as continued softness in the casual gaming segment.

Borgata

Borgata, the Company's 50% joint venture, reported first-quarter 2014 net revenues of $167.3 million, including $7.7 million from its online gaming operations, compared to $165.6 million in revenues reported in the year-ago period. Adjusted EBITDA was $20.4 million, compared to $28.4 million in the first quarter of 2013.

Results reflect reduced visitation due to unusually severe winter weather throughout the quarter. Adjusted EBITDA was further impacted by a $3.2 million loss in Borgata's online gaming operations related to the launch of this business, primarily as a result of approximately $2 million in non-recurring marketing and advertising expenses.

Key Balance Sheet Statistics

As of March 31, 2014, Boyd Gaming had cash on hand of $162.9 million, including $27.9 million related to Peninsula and $29.0 million related to Borgata.

Total debt was $4.37 billion, of which $1.14 billion was related to Peninsula and $809.3 million was related to Borgata.

Full-Year Guidance

For the full-year 2014, Boyd Gaming currently projects total Adjusted EBITDA of $600 million to $620 million.

Conference Call Information

Boyd Gaming will host its conference call to discuss first-quarter 2014 results today, April 30, at 5:00 p.m. Eastern. The conference call number is (888) 317-6003, passcode 4440004. 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 www.boydgaming.com, or http://www.videonewswire.com/event.asp?id=99039

Following the call's completion, a replay will be available by dialing (877) 344-7529 today, April 30, beginning at 7:00 p.m. Eastern and continuing through Thursday, May 8, at 9 a.m. Eastern. The conference number for the replay will be 10045059. The replay will also be available on the Internet at www.boydgaming.com.