LAS VEGAS, Aug. 5 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2009.
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For the quarter, we reported net income of $12.8 million, or $0.15 per share, compared to net income of $21.7 million, or $0.25 per share, in the same period last year. Certain pre-tax items resulted in a net increase in income of $3.6 million ($2.3 million, net of tax, or $0.03 per share) during the second quarter 2009. By comparison, the second quarter 2008 included certain pre-tax items that had a net effect of reducing income by $7.6 million ($4.8 million, net of tax, or $0.05 per share). Pre-tax items in the second quarter 2009 and 2008 are listed in a table at the end of this press release.
Adjusted Earnings(1) for the second quarter 2009 were $10.4 million, or $0.12 per share, compared to $26.4 million, or $0.30 per share, for the same period in 2008.
Net revenues were $423.0 million for the second quarter 2009, compared to $460.8 million for the same quarter in 2008, a decrease of 8.2%. Total Adjusted EBITDA was $105.6 million for the quarter, a decrease of 11.7% from $119.6 million in the prior year.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented on the quarter, "While business conditions remained difficult in each of our regions, our results were in line with our expectations. The uncertainty which exists in the economy today continues to negatively impact consumer spending. Despite this, we believe the precipitous declines that began in the second half of 2008 are over, as we continue to see stabilization in our business. We remain confident in the resilience of our business model and our ability to manage the Company through these challenging times."
Smith added, "The recent bankruptcy filing by Station Casinos highlights the difficulties this recession has created for some businesses. Having said that, we remain confident in the long-term viability of the Las Vegas market, and we continue to be interested in acquiring some or all of Station's assets."
(1) See footnotes at the end of the release for additional information relative to non-GAAP financial measures.
Year-To-Date Results
We reported a net loss for the six months ended June 30, 2009 of $1.1 million, or $0.01 per share. By comparison, we reported a loss of $10.9 million, or $0.12 per share for the six months ended June 30, 2008. The net losses were due in part to non-cash, pre-tax impairment charges related to Dania Jai-Alai of $28.4 million and $84.0 million during the six months ended June 30, 2009 and June 30, 2008, respectively.
Adjusted Earnings for the six months ended June 30, 2009 were $23.4 million, or $0.27 per share, as compared to $63.4 million, or $0.72 per share for the six-month period in 2008.
Net revenues were $857.8 million and $931.9 million for the six months ended June 30, 2009 and 2008, respectively. Total Adjusted EBITDA was $215.2 million for the current six-month period. By comparison, total Adjusted EBITDA for the 2008 period was $247.3 million.
Key Operations Review
Las Vegas Locals
In our Las Vegas Locals segment, second quarter 2009 net revenues were $166.1 million versus $197.9 million for the second quarter 2008. Second quarter 2009 Adjusted EBITDA was $43.9 million, a 29.7% decrease from the $62.4 million in the same quarter 2008. Reduced consumer spending and continued pressure on room rates impacted results.
Downtown
Our Downtown Las Vegas properties generated net revenues of $57.6 million and Adjusted EBITDA of $11.8 million for the second quarter 2009, versus $63.0 million and $10.3 million, respectively, for the second quarter 2008. Improved property operating margins, as well as lower fuel costs at our Hawaiian charter operations, contributed to increased Adjusted EBITDA in the region.
Midwest and South
In our Midwest and South region, we recorded $199.2 million in net revenues for the second quarter 2009, compared to $199.9 million for the same period in 2008. Adjusted EBITDA for the current period was $44.3 million, a decrease of 2.4% from the $45.3 million reported in the second quarter of 2008. The consistent results were principally due to higher than normal operating costs associated with integrating our new hotel at Blue Chip, offset by strength at our Delta Downs and Par-A-Dice properties.
Borgata
Net revenues for Borgata were $191.5 million for the second quarter 2009, compared to $205.1 million recorded in the same quarter in 2008. Despite the decline in net revenue, operating income for the second quarter 2009 increased to $27.3 million, versus $22.3 million for the second quarter 2008. Adjusted EBITDA also increased to $47.7 million, up from $45.2 million for the second quarter 2008. While Borgata's net revenues were adversely impacted by both the recession and an increasingly competitive regional environment, cost-control measures implemented over the last year drove increases in operating income and Adjusted EBITDA. In addition, the property continued to outperform the Atlantic City market, boosting its leading market share by more than two percentage points versus the year-ago quarter.
Paul Chakmak, Executive Vice President and Chief Operating Officer of Boyd Gaming, said, "Although conditions in the Las Vegas Locals market remained challenged, the rate of decline was consistent with the first quarter, and margins were stable. In our Midwest and South region, innovative marketing efforts and more efficient operations contributed to consistent results compared to the same period last year. And in Downtown Las Vegas and Atlantic City, cost-containment measures helped us post EBITDA growth in declining markets. These results demonstrate the success of the more efficient business model we've created while maintaining the exceptional service our customers have come to expect from Boyd Gaming."
Key Financial Statistics
The following is additional information as of and for the three months ended June 30, 2009:
-- June 30 debt balance: $2.69 billion
-- June 30 cash: $93.6 million
-- Maintenance capital expenditures during the quarter: $12.1 million
-- Echelon expansion capital expenditures during the quarter: $9.4 million
-- June 30 debt balance at Borgata: $666.8 million
Conference Call Information
We will host our second quarter 2009 conference call today, August 5, at 12:00 p.m. Eastern. The conference call number is 888.679.8040 and the passcode is 80231597. 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://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=95703&eventID=2305917
Pre-registrants will be issued a pin number to use when dialing into the live call, which will provide quick access to the conference by skipping the operator sequence upon connection.
Following the call's completion, a replay will be available by dialing 888.286.8010 today, August 5, beginning two hours after the completion of the call and continuing through Thursday, August 13. The passcode for the replay will be 64540189. The replay will also be available on the Internet at www.boydgaming.com .
The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Adjusted EBITDA to net income (loss) for the three and six months ended June 30, 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 Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Net Revenues
Las Vegas Locals $166,127 $197,896 $336,226 $404,390
Downtown Las Vegas (a) 57,577 62,970 116,243 123,899
Midwest and South 199,246 199,898 405,326 403,593
------- ------- ------- -------
Net Revenues $422,950 $460,764 $857,795 $931,882
======== ======== ======== ========
Adjusted EBITDA
Las Vegas Locals $43,917 $62,427 $89,237 $129,082
Downtown Las Vegas 11,800 10,324 25,154 20,493
Midwest and South 44,253 45,337 92,274 90,936
------ ------ ------ ------
Wholly-owned property
Adjusted EBITDA 99,970 118,088 206,665 240,511
Corporate expense (c) (8,216) (11,685) (18,196) (25,431)
------ ------- ------- -------
Wholly-owned Adjusted
EBITDA 91,754 106,403 188,469 215,080
Our share of Borgata's
operating income before net
amortization, preopening
and other items (d) 13,844 13,244 26,761 32,249
------ ------ ------ ------
Adjusted EBITDA (e) 105,598 119,647 215,230 247,329
------- ------- ------- -------
Other operating costs and
expenses
Deferred rent 1,088 1,096 2,177 2,230
Depreciation and
amortization (f) 42,418 42,900 85,394 86,394
Preopening expenses 4,054 5,207 9,893 10,786
Our share of Borgata's
preopening expenses 173 2,101 349 2,509
Our share of Borgata's
write-downs and other
charges, net 36 9 31 79
Share-based compensation
expense 3,506 3,066 6,898 6,035
Write-downs and other
charges, net (1,835) 1,174 27,128 91,487
------ ----- ------ ------
Total other operating
costs and expenses 49,440 55,553 131,870 199,520
------ ------ ------- -------
Operating income 56,158 64,094 83,360 47,809
------ ------ ------ ------
Other non-operating items
Interest expense, net (b) 36,235 27,157 81,502 57,410
Decrease (increase) in
value of derivative
instruments - 17 - (425)
Gain on early
retirements of debt (6,057) (863) (8,457) (1,813)
Our share of Borgata's
other non-operating
expenses, net 4,504 3,130 9,026 7,735
----- ----- ----- -----
Total other non-operating
costs and expenses 34,682 29,441 82,071 62,907
------ ------ ------ ------
Income (loss) before
income taxes 21,476 34,653 1,289 (15,098)
Benefit from (provision
for) income taxes (8,698) (12,995) (2,339) 4,169
------ ------- ------ -----
Net income (loss) $12,778 $21,658 $(1,050) $(10,929)
======= ======= ======= ========
(a) Includes revenues related to Vacations Hawaii and other travel agency
related entities of $7.5 million and $16.3 million for the three and
six months ended June 30, 2009, respectively, and $12.4 million and
$22.4 million for the three and six months ended June 30, 2008,
respectively.
(b) Net of interest income and amounts capitalized. Interest expense for
the six months ended June 30, 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.
(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 Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Corporate expense as reported on
our condensed consolidated
statements of operations $11,036 $14,010 $23,721 $29,783
Corporate share-based compensation
expense (2,820) (2,325) (5,525) (4,352)
------ ------ ------ ------
Corporate expense as reported on the
accompanying table $8,216 $11,685 $18,196 $25,431
====== ======= ======= =======
(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 Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Operating income from Borgata as
reported on our condensed
consolidated statements of
operations $13,310 $10,809 $25,732 $29,012
Add back:
Net amortization expense related
to our investment in Borgata 325 325 649 649
Our share of Borgata's preopening
expenses 173 2,101 349 2,509
Our share of Borgata's write-
downs and other charges, net 36 9 31 79
-- -- -- --
Our share of Borgata's operating
income before net amortization,
preopening and other items as
reported on the accompanying
table $13,844 $13,244 $26,761 $32,249
======= ======= ======= =======
(e) The following table reconciles Adjusted EBITDA to EBITDA and net
income (loss).
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Adjusted EBITDA $105,598 $119,647 $215,230 $247,329
Deferred rent 1,088 1,096 2,177 2,230
Preopening expenses 4,054 5,207 9,893 10,786
Our share of Borgata's
preopening expenses 173 2,101 349 2,509
Our share of Borgata's
write-downs and other
charges, net 36 9 31 79
Share-based compensation
expense 3,506 3,066 6,898 6,035
Write-downs and other
charges, net (1,835) 1,174 27,128 91,487
Decrease (increase) in value
of derivative instruments - 17 - (425)
Gain on early retirements
of debt (6,057) (863) (8,457) (1,813)
Our share of Borgata's
other non-operating
expenses, net 4,504 3,130 9,026 7,735
----- ----- ----- -----
EBITDA 100,129 104,710 168,185 128,706
------- ------- ------- -------
Depreciation and
amortization 42,418 42,900 85,394 86,394
Interest expense, net 36,235 27,157 81,502 57,410
Benefit from (provision
for) income taxes 8,698 12,995 2,339 (4,169)
----- ------ ----- ------
Net income (loss) $12,778 $21,658 $(1,050) $(10,929)
======= ======= ======= ========
(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 Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Depreciation and amortization as
reported on our condensed
consolidated statements of
operations $42,093 $42,575 $84,745 $85,745
Net amortization expense related to
our investment in Borgata 325 325 649 649
--- --- --- ---
Depreciation and amortization
as reported on the accompanying
table $42,418 $42,900 $85,394 $86,394
======= ======= ======= =======
BOYD GAMING CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands, except share data)
Revenues
Gaming $353,597 $381,058 $719,660 $774,024
Food and beverage 58,688 64,884 117,729 131,810
Room 32,548 36,516 63,189 74,871
Other 24,486 31,392 51,421 61,056
------ ------ ------ ------
Gross revenues 469,319 513,850 951,999 1,041,761
Less promotional allowances 46,369 53,086 94,204 109,879
------ ------ ------ -------
Net revenues 422,950 460,764 857,795 931,882
------- ------- ------- -------
Costs and expenses
Gaming 167,427 172,347 340,339 349,382
Food and beverage 32,114 36,578 63,498 75,856
Room 10,069 11,179 20,026 22,603
Other 19,553 24,485 38,867 46,575
Selling, general and
administrative 72,618 76,049 146,591 153,956
Maintenance and utilities 22,973 23,875 45,359 46,912
Depreciation and
amortization 42,093 42,575 84,745 85,745
Corporate expense 11,036 14,010 23,721 29,783
Preopening expenses 4,054 5,207 9,893 10,786
Write-downs and other
charges, net (1,835) 1,174 27,128 91,487
------ ----- ------ ------
Total costs and
expenses 380,102 407,479 800,167 913,085
------- ------- ------- -------
Operating income from Borgata 13,310 10,809 25,732 29,012
------ ------ ------ ------
Operating income 56,158 64,094 83,360 47,809
------ ------ ------ ------
Other expense (income)
Interest income - (5) (4) (13)
Interest expense, net of
amounts capitalized 36,235 27,162 81,506 57,423
Decrease (increase) in
value of derivative
instruments - 17 - (425)
Gain on early retirements
of debt (6,057) (863) (8,457) (1,813)
Other non-operating
expenses from Borgata, net 4,504 3,130 9,026 7,735
----- ----- ----- -----
Total other expense, net 34,682 29,441 82,071 62,907
------ ------ ------ ------
Income (loss) before income
taxes 21,476 34,653 1,289 (15,098)
Benefit from (provision
for) income taxes (8,698) (12,995) (2,339) 4,169
------ ------- ------ -----
Net income (loss) $12,778 $21,658 $(1,050) $(10,929)
======= ======== ======= ========
Basic net income (loss)
per common share $0.15 $0.25 $(0.01) $(0.12)
===== ====== ====== ======
Weighted average basic
shares outstanding 86,254 87,854 86,591 87,831
====== ====== ====== ======
Diluted net income (loss)
per common share $0.15 $0.25 $(0.01) $(0.12)
===== ====== ====== ======
Weighted average diluted
shares outstanding 86,291 88,119 86,591 87,831
====== ====== ====== ======
Dividends declared per
common share $- $0.15 $- $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 Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Net income (loss) $12,778 $21,658 $(1,050) $(10,929)
Adjustments:
Preopening expenses 4,054 5,207 9,893 10,786
Our share of Borgata's
preopening expenses 173 2,101 349 2,509
Our share of Borgata's
write-downs and other
charges, net 36 9 31 79
Write-downs and other
charges, net (1,835) 1,174 27,128 91,487
Decrease (increase) in
value of derivative
instruments - 17 - (425)
Gain on early
retirements of debt (6,057) (863) (8,457) (1,813)
Prior period interest
expense related to the
finalization of
our purchase price for
Dania Jai-Alai - - 8,883 -
Income tax effect for
above adjustments 1,280 (2,867) (13,346) (28,334)
----- ------ ------- -------
Adjusted earnings $10,429 $26,436 $23,431 $63,360
======= ======= ======= =======
Adjusted earnings per
diluted share (Adjusted EPS) $0.12 $0.30 $0.27 $0.72
===== ===== ===== =====
Weighted average diluted
shares outstanding 86,291 88,119 86,591 87,831
====== ====== ====== ======
The following table reports Borgata's financial results.
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Gaming revenue $173,837 $178,522 $342,686 $357,158
Non-gaming revenue 71,915 74,286 141,254 142,392
------ ------ ------- -------
Gross revenues 245,752 252,808 483,940 499,550
Less promotional allowances 54,239 47,747 104,537 92,465
------ ------ ------- ------
Net revenues 191,513 205,061 379,403 407,085
------- ------- ------- -------
Expenses 143,787 159,891 285,751 306,449
Depreciation and amortization 20,040 18,685 40,131 36,140
Preopening expenses 346 4,201 699 5,017
Write-downs and other
charges, net 71 17 61 157
-- -- -- ---
Operating income 27,269 22,267 52,761 59,322
------ ------ ------ ------
Interest expense, net (7,447) (5,730) (15,458) (12,187)
Provision for state income
taxes (1,561) (530) (2,593) (3,284)
------ ---- ------ ------
Total non-operating
expenses (9,008) (6,260) (18,051) (15,471)
------ ------ ------- -------
Net income $18,261 $16,007 $34,710 $43,851
======= ======= ======= =======
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 Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Our share of Borgata's
operating income $13,635 $11,134 $26,381 $29,661
Net amortization expense related
to our investment in Borgata (325) (325) (649) (649)
Operating income from Borgata, as
reported on our condensed
consolidated financial
statements $13,310 $10,809 $25,732 $29,012
======= ======= ======= =======
Other non-operating expenses
from Borgata, as reported on
our condensed
consolidated financial
statements $4,504 $3,130 $9,026 $7,735
====== ====== ====== ======
The following table reconciles operating income to Adjusted EBITDA for
Borgata.
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Operating income $27,269 $22,267 $52,761 $59,322
Depreciation and
amortization 20,040 18,685 40,131 36,140
Preopening expenses 346 4,201 699 5,017
Write-downs and other
charges, net 71 17 61 157
-- -- -- ---
Adjusted EBITDA $47,726 $45,170 $93,652 $100,636
======= ======= ======= ========
The following table reconciles Adjusted EBITDA to EBITDA and net income
for Borgata.
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
(In thousands)
Adjusted EBITDA $47,726 $45,170 $93,652 $100,636
Preopening expenses 346 4,201 699 5,017
Write-downs and other
charges, net 71 17 61 157
-- -- -- ---
EBITDA 47,309 40,952 92,892 95,462
------ ------ ------ ------
Depreciation and
amortization 20,040 18,685 40,131 36,140
Interest expense, net 7,447 5,730 15,458 12,187
Provision for state income
taxes 1,561 530 2,593 3,284
----- --- ----- -----
Net income $18,261 $16,007 $34,710 $43,851
======= ======= ======= =======
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, change in value of derivative instruments, gain/loss on early retirements of debt, and our share of Borgata's non-operating expenses, preopening expenses and write-downs and other charges, 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, change in value of derivative instruments, write-downs and other charges, net, gain/loss on early retirements of debt, prior period interest expense related to the finalization of our purchase price for Dania Jai-Alai, and our share of Borgata's preopening expenses and write-downs and other charges, 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 regarding potential stabilization in the markets in which the Company operates, resiliency of the Company's properties in various markets, the status of the current economic cycle, that economic declines are over, the potential for an acquisition of any Station Casinos assets, 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 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, the effect that such delay will have on the Company's business, operations or financial condition, the effect that such delay will have on the Company's joint venture participants, and whether such participants (or other Echelon project participants) will terminate their agreements or arrangements with the Company, or whether any such participants will require any additional fees or terms that may be unfavorable to the Company, and whether the Company will be able to reach agreement on any modified terms with its joint venture participants, that Blue Chip's position, performance or demand will change. 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 filings 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 www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com .
SOURCE Boyd Gaming Corporation
For further information: Investors, Josh Hirsberg, +1-702-792-7234, joshhirsberg@boydgaming.com, or Media, David Strow, +1-702-792-7386, davidstrow@boydgaming.com, both of Boyd Gaming Corporation
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