LAS VEGAS, Feb. 14, 2017 /PRNewswire/ -- Boyd Gaming
Corporation (NYSE: BYD) today reported financial results for the
fourth quarter and full year ended December
31, 2016.
Keith Smith, President and Chief
Executive Officer of Boyd Gaming, said: "The fourth quarter was the
culmination of an eventful and successful year, as we further
positioned our Company for long-term growth. Our Las Vegas
Locals segment grew at a healthy pace in the fourth quarter, with
same-store Adjusted EBITDA reaching its highest levels in nearly a
decade. We were also encouraged to see meaningful sequential
improvement in our regional operations, which performed in-line
with prior-year results after considering the impact of severe
winter weather. And in December, we completed the acquisition of
the Cannery and Eastside Cannery, further expanding our footprint
in the attractive Las Vegas
market."
Boyd Gaming reported fourth-quarter 2016 net revenues of
$554.8 million, an increase of 2.2%
from $542.7 million in the year-ago
quarter. Income from continuing operations, net of tax, for
the fourth quarter was $10.7 million,
or $0.10 per share, versus a loss of
$14.4 million, or $0.13 per share, in the prior-year fourth
quarter. The Company reported net income, including
discontinued operations, of $12.2
million, or $0.11 per share,
for the fourth quarter of 2016, compared to a net loss of
$6.9 million, or $0.06 per share, for the year-ago period.
During the fourth quarter of 2016, the Company reported noncash
intangible asset impairment charges of $36.9
million. The Company's fourth quarter results were favorably
impacted by $11.1 million of noncash
income tax benefits resulting from the release of a previously
recorded deferred tax asset valuation allowance. Discontinued
operations for fourth quarter 2016 included $1.5 million in after-tax income for the
Company's share of a property tax recovery realized by Borgata
Hotel Casino & Spa, which was sold on August 1, 2016. Results for the prior-year period
included noncash impairment charges of $17.5
million, primarily due to the impairments of intangible
assets. The Company's fourth quarter 2015 results were also
impacted by pretax losses of $8.4
million related to the early extinguishments and
modification of debt during the quarter.
Total Adjusted EBITDA(1) was $138.8 million, up 5.7% from $131.3 million in the fourth quarter of 2015.
Adjusted Earnings(1) for the fourth quarter 2016 were
$44.3 million, or $0.38 per share, compared to Adjusted Earnings of
$10.3 million, or $0.09 per share, for the same period in
2015. Adjusted EBITDA and Adjusted Earnings exclude
discontinued operations.
(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, fourth-quarter 2016 net revenues
were $185.7 million, up from
$158.8 million in the year-ago
quarter. Fourth-quarter 2016 Adjusted EBITDA rose to
$52.8 million, compared to
$44.0 million in the fourth quarter
of 2015. Segment results include a full quarter of contributions
from Aliante, acquired by the Company on September 27, 2016, as well as 12 days of
contributions from Cannery and Eastside Cannery, acquired on
December 20, 2016.
On a same-store basis, both Adjusted EBITDA and operating
margins reached their highest fourth-quarter levels since 2007, as
the Company's properties benefited from a strong regional
economy. Ongoing refinements to the Company's marketing
programs also continued to drive significant growth in
profitability during the quarter.
Downtown Las
Vegas
In the Downtown Las Vegas segment,
net revenues were $62.0 million in
the fourth quarter of 2016, compared to $62.5 million in the year-ago period.
Adjusted EBITDA was $15.5 million,
versus $16.2 million in the fourth
quarter of 2015.
Despite disruption during the quarter from hotel room
renovations at the California,
underlying business trends remain strong in the Downtown market,
with continued growth in visitation throughout the area. The
Fremont delivered the second-best
fourth-quarter Adjusted EBITDA performance in its history, and also
set an all-time record for full-year Adjusted EBITDA.
Midwest and South
In the Midwest and South segment, net revenues were $307.2 million, compared to $321.5 million in the fourth quarter of
2015. Adjusted EBITDA was $86.1
million, versus $86.3 million
in the year-ago period.
Adjusted EBITDA in the segment was essentially even with the
prior year, after three quarters of declines, as operating trends
improved in many regional markets during the quarter.
Adjusted EBITDA included a one-time, favorable property tax
adjustment of $2.9 million, a benefit
that was offset by the impact of severe winter weather.
Full-Year 2016 Results
For the full year ended December 31,
2016, Boyd Gaming reported net revenues of $2.18 billion, compared to $2.20 billion for the full year 2015.
Income from continuing operations, net of tax, were $205.5 million, or $1.78 per share, up from $10.7 million, or $0.10 per share, in the prior year. The
Company reported net income, including discontinued operations, of
$418.0 million, or $3.63 per share, for the full year 2016, compared
to net income of $47.2 million, or
$0.42 per share, for the year-ago
period.
The Company's results for the year ended December 31, 2016, included noncash impairment
charges of $38.3 million and pretax
losses on the early extinguishments of debt of $42.4 million. In addition, the Company's full
year 2016 results were favorably impacted by $201.5 million of noncash income tax benefits
resulting from the release of a previously recorded deferred tax
asset valuation allowance. Discontinued operations for both
periods include results from the Company's 50% equity interest in
Borgata, while full-year 2016 results also include a $181.7 million after-tax gain from the third
quarter sale of the equity interest. Results for the prior
year included noncash impairment charges of $18.6 million and pretax losses on the early
extinguishments of debt of $40.7
million. In addition, settlements of previous years'
income tax appeals reduced the 2015 income tax provision by
$25.1 million.
For the full year 2016, total Adjusted EBITDA(1) was
$536.3 million, up 1.7% from
$527.4 million in the prior year.
Adjusted Earnings(1) for the full year 2016 were
$104.6 million, or $0.91 per share, up from Adjusted Earnings of
$49.4 million, or $0.43 per share, for the same period in
2015. Adjusted EBITDA and Adjusted Earnings exclude
discontinued operations.
Balance Sheet Statistics
As of December 31, 2016, Boyd Gaming
had cash on hand of $193.9 million,
and total debt of $3.28 billion.
Full Year 2017 Guidance
For the full year 2017, Boyd Gaming projects total Adjusted EBITDA
of $585 million to $605 million.
Conference Call Information
Boyd Gaming will host a conference call to discuss fourth-quarter
and full-year 2016 results today, February
14, at 5:30 p.m.
Eastern. The conference call number is (888) 317-6003,
passcode 8569313. 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:
https://www.webcaster4.com/Webcast/Page/964/19582
Following the call's completion, a replay will be available by
dialing (877) 344-7529 today, February
14, beginning at 7:30 p.m.
Eastern and continuing through Tuesday,
February 21, at 11:59 p.m.
Eastern. The conference number for the replay will be
10100867. The replay will also be available on the Internet
at www.boydgaming.com.
BOYD GAMING
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
(In thousands,
except per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
|
|
Gaming
|
$
|
461,129
|
|
|
$
|
456,433
|
|
|
$
|
1,820,176
|
|
|
$
|
1,847,167
|
|
Food and
beverage
|
79,190
|
|
|
76,524
|
|
|
306,145
|
|
|
307,442
|
|
Room
|
42,591
|
|
|
40,175
|
|
|
170,816
|
|
|
163,509
|
|
Other
|
31,678
|
|
|
31,253
|
|
|
122,416
|
|
|
123,959
|
|
Gross
revenues
|
614,588
|
|
|
604,385
|
|
|
2,419,553
|
|
|
2,442,077
|
|
Less
promotional allowances
|
59,765
|
|
|
61,711
|
|
|
235,577
|
|
|
242,645
|
|
Net
revenues
|
554,823
|
|
|
542,674
|
|
|
2,183,976
|
|
|
2,199,432
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Gaming
|
222,320
|
|
|
223,886
|
|
|
880,716
|
|
|
900,922
|
|
Food and
beverage
|
45,389
|
|
|
41,716
|
|
|
170,053
|
|
|
168,096
|
|
Room
|
11,206
|
|
|
9,804
|
|
|
44,245
|
|
|
41,298
|
|
Other
|
19,900
|
|
|
19,570
|
|
|
76,719
|
|
|
80,508
|
|
Selling,
general and administrative
|
80,323
|
|
|
79,764
|
|
|
322,009
|
|
|
322,420
|
|
Maintenance
and utilities
|
23,309
|
|
|
23,583
|
|
|
100,020
|
|
|
104,548
|
|
Depreciation
and amortization
|
52,395
|
|
|
51,867
|
|
|
196,226
|
|
|
207,118
|
|
Corporate
expense
|
22,785
|
|
|
24,928
|
|
|
72,668
|
|
|
76,941
|
|
Project
development, preopening and writedowns
|
10,634
|
|
|
2,689
|
|
|
22,107
|
|
|
6,907
|
|
Impairments of
assets
|
36,862
|
|
|
17,500
|
|
|
38,302
|
|
|
18,565
|
|
Other
operating items, net
|
(271)
|
|
|
565
|
|
|
284
|
|
|
907
|
|
Total
operating costs and expenses
|
524,852
|
|
|
495,872
|
|
|
1,923,349
|
|
|
1,928,230
|
|
Operating
income
|
29,971
|
|
|
46,802
|
|
|
260,627
|
|
|
271,202
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
Interest
income
|
(455)
|
|
|
(462)
|
|
|
(2,961)
|
|
|
(1,858)
|
|
Interest
expense, net of amounts capitalized
|
42,537
|
|
|
53,966
|
|
|
212,692
|
|
|
224,590
|
|
Loss on early
extinguishments and modifications of debt
|
—
|
|
|
8,400
|
|
|
42,364
|
|
|
40,733
|
|
Other,
net
|
402
|
|
|
35
|
|
|
545
|
|
|
3,676
|
|
Total other
expense, net
|
42,484
|
|
|
61,939
|
|
|
252,640
|
|
|
267,141
|
|
Income (loss) from
continuing operations before income taxes
|
(12,513)
|
|
|
(15,137)
|
|
|
7,987
|
|
|
4,061
|
|
Income taxes
benefit
|
23,255
|
|
|
703
|
|
|
197,486
|
|
|
6,634
|
|
Income (loss) from
continuing operations, net of tax
|
10,742
|
|
|
(14,434)
|
|
|
205,473
|
|
|
10,695
|
|
Income from
discontinued operations, net of tax
|
1,478
|
|
|
7,565
|
|
|
212,530
|
|
|
36,539
|
|
Net income
(loss)
|
$
|
12,220
|
|
|
$
|
(6,869)
|
|
|
$
|
418,003
|
|
|
$
|
47,234
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.10
|
|
|
$
|
(0.13)
|
|
|
$
|
1.79
|
|
|
$
|
0.10
|
|
Discontinued
operations
|
0.01
|
|
|
0.07
|
|
|
1.86
|
|
|
0.32
|
|
Basic net
income (loss) per common share
|
$
|
0.11
|
|
|
$
|
(0.06)
|
|
|
$
|
3.65
|
|
|
$
|
0.42
|
|
Weighted
average basic shares outstanding
|
115,017
|
|
|
113,672
|
|
|
114,507
|
|
|
112,789
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.10
|
|
|
$
|
(0.13)
|
|
|
$
|
1.78
|
|
|
$
|
0.10
|
|
Discontinued
operations
|
0.01
|
|
|
0.07
|
|
|
1.85
|
|
|
0.32
|
|
Diluted net
income (loss) per common share
|
$
|
0.11
|
|
|
$
|
(0.06)
|
|
|
$
|
3.63
|
|
|
$
|
0.42
|
|
Weighted
average diluted shares outstanding
|
115,604
|
|
|
113,672
|
|
|
115,189
|
|
|
113,676
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Reconciliation of
Adjusted EBITDA to Net Income (Loss)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
(In
thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Revenues by
Reportable Segment
|
|
|
|
|
|
|
|
Las Vegas
Locals (a)
|
$
|
185,654
|
|
|
$
|
158,750
|
|
|
$
|
647,867
|
|
|
$
|
610,107
|
|
Downtown Las
Vegas
|
61,962
|
|
|
62,469
|
|
|
236,385
|
|
|
234,191
|
|
Midwest and
South (b)
|
307,207
|
|
|
321,455
|
|
|
1,299,724
|
|
|
1,355,134
|
|
Net
revenues
|
$
|
554,823
|
|
|
$
|
542,674
|
|
|
$
|
2,183,976
|
|
|
$
|
2,199,432
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Reportable Segment
|
|
|
|
|
|
|
|
Las Vegas
Locals (a)
|
$
|
52,803
|
|
|
$
|
43,999
|
|
|
$
|
176,420
|
|
|
$
|
157,312
|
|
Downtown Las
Vegas
|
15,458
|
|
|
16,186
|
|
|
52,420
|
|
|
49,314
|
|
Midwest and
South (b)
|
86,060
|
|
|
86,307
|
|
|
367,365
|
|
|
380,942
|
|
Property Adjusted
EBITDA
|
154,321
|
|
|
146,492
|
|
|
596,205
|
|
|
587,568
|
|
Corporate
expense (c)
|
(15,520)
|
|
|
(15,177)
|
|
|
(59,875)
|
|
|
(60,177)
|
|
Adjusted
EBITDA
|
138,801
|
|
|
131,315
|
|
|
536,330
|
|
|
527,391
|
|
|
|
|
|
|
|
|
|
Other operating
costs and expenses
|
|
|
|
|
|
|
|
Deferred
rent
|
817
|
|
|
855
|
|
|
3,266
|
|
|
3,428
|
|
Depreciation
and amortization
|
52,395
|
|
|
51,867
|
|
|
196,226
|
|
|
207,118
|
|
Share-based
compensation expense
|
8,393
|
|
|
11,037
|
|
|
15,518
|
|
|
19,264
|
|
Project
development, preopening and writedowns
|
10,634
|
|
|
2,689
|
|
|
22,107
|
|
|
6,907
|
|
Impairments of
assets
|
36,862
|
|
|
17,500
|
|
|
38,302
|
|
|
18,565
|
|
Other
operating items, net
|
(271)
|
|
|
565
|
|
|
284
|
|
|
907
|
|
Total other
operating costs and expenses
|
108,830
|
|
|
84,513
|
|
|
275,703
|
|
|
256,189
|
|
Operating
income
|
29,971
|
|
|
46,802
|
|
|
260,627
|
|
|
271,202
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
Interest
income
|
(455)
|
|
|
(462)
|
|
|
(2,961)
|
|
|
(1,858)
|
|
Interest
expense, net of amounts capitalized
|
42,537
|
|
|
53,966
|
|
|
212,692
|
|
|
224,590
|
|
Loss on early
extinguishments and modifications of debt
|
—
|
|
|
8,400
|
|
|
42,364
|
|
|
40,733
|
|
Other,
net
|
402
|
|
|
35
|
|
|
545
|
|
|
3,676
|
|
Total other
expense, net
|
42,484
|
|
|
61,939
|
|
|
252,640
|
|
|
267,141
|
|
Income (loss) from
continuing operations before income
taxes
|
(12,513)
|
|
|
(15,137)
|
|
|
7,987
|
|
|
4,061
|
|
Income taxes
benefit
|
23,255
|
|
|
703
|
|
|
197,486
|
|
|
6,634
|
|
Income (loss) from
continuing operations, net of tax
|
10,742
|
|
|
(14,434)
|
|
|
205,473
|
|
|
10,695
|
|
Income from
discontinued operations, net of tax
|
1,478
|
|
|
7,565
|
|
|
212,530
|
|
|
36,539
|
|
Net income
(loss)
|
$
|
12,220
|
|
|
$
|
(6,869)
|
|
|
$
|
418,003
|
|
|
$
|
47,234
|
|
|
|
|
|
|
|
(a)
|
The segment includes
the results of Aliante Casino + Hotel + Spa from the September 27,
2016, date of acquisition and the results of Cannery Casino Hotel
and Eastside Cannery Casino and Hotel from the December 20, 2016,
date of their acquisition.
|
(b)
|
The Company has
combined its Midwest and South and Peninsula segments into a single
reportable segment as a result of the refinancing completed during
the third quarter of 2016. Prior year amounts for the two
segments have been combined to conform to the current year
presentation.
|
(c)
|
Reconciliation of
corporate expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
(In
thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Corporate expense
as reported on Consolidated
Statements of Operations
|
$
|
22,785
|
|
|
$
|
24,928
|
|
|
$
|
72,668
|
|
|
$
|
76,941
|
|
Corporate share-based
compensation expense
|
(7,265)
|
|
|
(9,751)
|
|
|
(12,793)
|
|
|
(16,764)
|
|
Corporate expense
as reported on the above table
|
$
|
15,520
|
|
|
$
|
15,177
|
|
|
$
|
59,875
|
|
|
$
|
60,177
|
|
BOYD GAMING
CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
Reconciliation of
Net Income (Loss) to Adjusted Earnings and Net Income (Loss) Per
Share
|
to Adjusted
Earnings Per Share
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
(In thousands,
except per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income
(loss)
|
$
|
12,220
|
|
|
$
|
(6,869)
|
|
|
$
|
418,003
|
|
|
$
|
47,234
|
|
Less: income from
discontinued operations, net of tax
|
(1,478)
|
|
|
(7,565)
|
|
|
(212,530)
|
|
|
(36,539)
|
|
Income (loss) from
continuing operations, net of tax
|
10,742
|
|
|
(14,434)
|
|
|
205,473
|
|
|
10,695
|
|
Pretax
adjustments:
|
|
|
|
|
|
|
|
Project development, preopening and writedowns
|
10,634
|
|
|
2,689
|
|
|
22,107
|
|
|
6,907
|
|
Impairments of assets
|
36,862
|
|
|
17,500
|
|
|
38,302
|
|
|
18,565
|
|
Adjustment of property tax accruals
|
(2,864)
|
|
|
—
|
|
|
(2,864)
|
|
|
—
|
|
Other operating items, net
|
(271)
|
|
|
565
|
|
|
284
|
|
|
907
|
|
Loss on early extinguishments and modifications of
debt
|
—
|
|
|
8,400
|
|
|
42,364
|
|
|
40,733
|
|
Other, net
|
402
|
|
|
35
|
|
|
545
|
|
|
3,676
|
|
Total adjustments
|
44,763
|
|
|
29,189
|
|
|
100,738
|
|
|
70,788
|
|
|
|
|
|
|
|
|
|
Income
tax effect for above adjustments
|
(134)
|
|
|
(4,433)
|
|
|
(104)
|
|
|
(7,014)
|
|
Impact
of release of tax valuation allowance
|
(11,085)
|
|
|
—
|
|
|
(201,525)
|
|
|
—
|
|
Impact
of tax audit settlements on provision
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,099)
|
|
Adjusted
earnings
|
$
|
44,286
|
|
|
$
|
10,322
|
|
|
$
|
104,582
|
|
|
$
|
49,370
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share
|
$
|
0.11
|
|
|
$
|
(0.06)
|
|
|
$
|
3.63
|
|
|
$
|
0.42
|
|
Less: income from
discontinued operations per share
|
(0.01)
|
|
|
(0.07)
|
|
|
(1.85)
|
|
|
(0.32)
|
|
Income (loss) from
continuing operations per share
|
0.10
|
|
|
(0.13)
|
|
|
1.78
|
|
|
0.10
|
|
Pretax
adjustments:
|
|
|
|
|
|
|
|
Project development, preopening and writedowns
|
0.09
|
|
|
0.03
|
|
|
0.19
|
|
|
0.06
|
|
Impairments of assets
|
0.32
|
|
|
0.15
|
|
|
0.33
|
|
|
0.16
|
|
Adjustment of property tax accruals
|
(0.02)
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Other
operating items, net
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Loss on
early extinguishments and modifications of debt
|
—
|
|
|
0.07
|
|
|
0.37
|
|
|
0.36
|
|
Other,
net
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.03
|
|
Total adjustments
|
0.39
|
|
|
0.26
|
|
|
0.88
|
|
|
0.62
|
|
|
|
|
|
|
|
|
|
Income
tax effect for above adjustments
|
—
|
|
|
(0.04)
|
|
|
—
|
|
|
(0.07)
|
|
Impact
of release of tax valuation allowance
|
(0.11)
|
|
|
—
|
|
|
(1.75)
|
|
|
—
|
|
Impact
of tax audit settlements on provision
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.22)
|
|
Adjusted earnings
per share
|
$
|
0.38
|
|
|
$
|
0.09
|
|
|
$
|
0.91
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
115,604
|
|
|
114,493
|
|
|
115,189
|
|
|
113,676
|
|
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. We do not provide a
reconciliation of forward-looking non-GAAP financial measures to
the corresponding forward-looking GAAP measure due to our inability
to project special charges and certain expenses.
EBITDA and Adjusted EBITDA
EBITDA is a commonly used measure of performance in our industry
that we believe, when considered with measures calculated in
accordance with accounting principles generally accepted in
the United States ("GAAP"),
provides our investors a more complete understanding of our
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 a full understanding of our core operating
results and as a means to evaluate period-to-period results. We
refer to this measure as Adjusted EBITDA. We have chosen to provide
this information to investors to enable them to perform comparisons
of past, present and future operating results and as a means to
evaluate the results of core on-going operations. 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 our management in their 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 the evaluation of potential
acquisitions and dispositions. Adjusted EBITDA is also 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,
share-based compensation expense, project development, preopening
and write-down expenses, impairments of assets, loss on early
extinguishments and modifications of debt and other operating
items, net.
Adjusted Earnings and Adjusted EPS
Adjusted Earnings is net income (loss) before project
development, preopening and write-down expenses, impairments of
assets, certain adjustments to property tax accruals, other items,
net, gain or loss on early extinguishments and modifications of
debt, other non-recurring adjustments, net, the impact on Boyd's
income tax provision of tax audit settlements and the release of
valuation allowances on deferred tax assets, and income from
discontinued operations, net of tax. 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.
Limitations on the Use of Non-GAAP Measures
The use of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted
EPS and certain other non-GAAP financial measures has certain
limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted
Earnings, Adjusted EPS or certain other non-GAAP financial measures
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
historical GAAP financial measures and in our consolidated
financial statements, all of which should be considered when
evaluating our performance.
EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and
certain other non-GAAP financial measures are used in addition to
and in conjunction with results presented in accordance with GAAP.
EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and
certain other non-GAAP financial measures 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, Adjusted EPS
and certain other non-GAAP financial measures reflect additional
ways of viewing our operations that we believe, when viewed with
our GAAP results and the reconciliations to the corresponding
historical 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
future performance. In addition, forward-looking statements in this
press release include statements regarding: positioning the Company
for long-term growth, ongoing refinements to the Company's
marketing programs, strong underlying business trends, and all of
the statements under the heading "Full-Year 2016 Guidance."
Forward-looking statements involve certain risks and uncertainties,
and actual results may differ materially from those discussed in
any such statement. These risks and uncertainties include, but are
not limited to: fluctuations in the Company's operating results;
recovery of its properties in various markets; the political
climate and its effects on consumer spending and its impact on the
travel industry; the state of the economy and its effect on
consumer spending and the Company's results of operations; the
timing for economic recovery, its effect on the Company's business
and the local economies where the Company's properties are located;
the receipt of legislative, and other state, federal and local
approvals for the Company's development projects; whether online
gaming will become legalized in various states, the Company's
ability to operate online gaming profitably, or otherwise; consumer
reaction to fluctuations in the stock market and economic factors;
the fact that the Company's expansion, development and renovation
projects (including enhancements to improve property performance)
are subject to many risks inherent in expansion, development or
construction of a new or existing project; the effects of events
adversely impacting the economy or the regions from which the
Company draws a significant percentage of its customers;
competition; litigation; financial community and rating agency
perceptions of the Company and its subsidiaries; changes in laws
and regulations, including increased taxes; the availability and
price of energy, weather, regulation, economic, credit and capital
market conditions; and the effects of war, terrorist or similar
activity. Additional factors that could cause actual results to
differ are discussed under the heading "Risk Factors" and in other
sections of the Company's Annual Report on Form 10-K, its Quarterly
Reports on Form 10-Q, 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 24 gaming entertainment properties located in
Nevada, Illinois, Indiana, Iowa, Kansas,
Louisiana and Mississippi.
Boyd Gaming press releases are available at www.prnewswire.com.
Additional news and information on Boyd Gaming can be found
at www.boydgaming.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/boyd-gaming-reports-fourth-quarter-full-year-2016-results-300407274.html
SOURCE Boyd Gaming Corporation