Boyd Gaming Profits Hit by Hurricanes

Before items, it beats.
Author:
Publish date:

Boyd Gaming

(BYD) - Get Report

, the casino operator, said fourth-quarter earnings fell 51.2% from a year ago, hurt by costs incurred to rebuild its Gulf Coast casinos damaged by hurricanes Katrina and Rita.

The company earned $22.9 million, or 25 cents a share, in the quarter, compared with $46.9 million, or 53 cents a share, a year ago. Adjusted for items, earnings were $68.8 million, or 76 cents a share, in the most recent quarter. Analysts surveyed by Thomson First Call were expecting earnings of 61 cents a share in the most recent quarter.

Fourth-quarter revenue rose 4.8% from a year ago to $565.4 million.

The company's net revenue from Borgata Hotel Casino and Spa, a joint venture property in Atlantic City, rose 8.1% from a year ago to $194 million.

The company said that rise in earnings came from revenue increases at all of the company's operating units ,led by a significant earnings increase at Treasure Chest casino. The fourth-quarter results included revenue from the company's Treasure Chest, which was open for 83 days; Delta Downs, which was open for 59 operating days; and South Coast, which was open for nine days. The first two properties were affected by the hurricanes.

"We are very pleased that we were once again able to demonstrate strong financial performance in the fourth quarter, with strong performances evident throughout the Company,'' the company said. ''With strong, diverse operations and an excellent growth pipeline highlighted by our recently announced development of Echelon Place on the Las Vegas Strip, we remain very optimistic about our future."

The company's operating profit margin for the fourth quarter fell by 630 basis points to 11.8%. By segment, fourth-quarter revenue from company's Boulder Strip segment rose 5.5% from last year to $51.7 million. Revenue from Coast Casinos segment rose 6.7% to $191.3 million. Revenue from Stardust segment rose 5.6% to $40.9 million. Revenue from downtown properties segment rose 8.8% to $69.3 million and revenue from central region segment rose 1.5% to $212.2 million.

This story was created through a joint venture between TheStreet.com and IRIS.