said second-quarter profits more than tripled as it continued to benefit from its acquisition of Coast Casinos and its investment in the Borgata in Atlantic City, N.J.
The Las Vegas-based casino operator Tuesday reported net income of $48.6 million, or 54 cents a share, up from $15.5 million, or 23 cents a share, a year earlier.
Excluding special items, the company earned 56 cents a share, vs. 27 cents a share a year earlier and a penny ahead of the analyst consensus from Thomson First Call. Revenue was $554 million, up 62% from $342 million a year before, but less than the $559.8 million analyst consensus.
Although Boyd beat the average Wall Street earnings estimate, shares fell 7% in extended trading after the company reported results. Investors may have been disappointed the company didn't beat expectations by a wider margin. Boyd has generated bullish expectations after a string of blowout quarters. Before the company's earnings announcement, shares finished Tuesday's regular session up $1.07, or 2.0%, at $54.82.
"Once again I can report how very pleased I am with our company's performance," said Bill Boyd, the company's chairman and CEO, in a news release. "Doubling earnings per share four quarters in a row is quite an accomplishment."
Revenue growth was driven by the company's July 2004 acquisition of Coast Casinos, a chain that caters to local Las Vegas residents.
On a same-store basis, revenue grew 4.7% in the quarter.
In the latest quarter, the Borgata Hotel Casino and Spa in Atlantic City, a joint venture between Boyd and
, reported gaming revenue of $170 million, up 13.1% year over year, and nongaming revenue of $61.0 million, up 7.8%. Boyd's share of the casino's operating income increased 13.5%.
Although the Borgata and Coast Casinos are important drivers of Boyd's results, other casinos contributed to the growth. Earnings before interest, taxes, depreciation and amortization, or EBITDA, jumped 32% at Boyd's Boulder Strip properties, 23% at its Stardust casino and 63% at its downtown Las Vegas properties.
Looking forward, Boyd expects third-quarter EPS of between 53 cents and 56 cents, ahead of the 52-cent consensus forecast.