Earnings Triple at Boyd Gaming

The company matches on an adjusted basis.
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Boyd Gaming

(BYD) - Get Report

saw fourth-quarter earnings more than triple from last year's quarter thanks to the take from a new Atlantic City casino.

After the close of trading on Wednesday, the company said that fourth-quarter net income was $12.3 million, or 19 cents a share, compared with $3.9 million, or 6 cents a share, last year.

On an adjusted basis, which is how Wall Street views the company, Boyd earned 19 cents a share, matching expectations, but lower than the adjusted earnings of 24 cents a share it had a year ago. Adjusted earnings exclude certain preopening expenses and the usual litany of pro-forma unpleasantries like goodwill and asset writedowns.

The company said that tax hikes in Illinois, Indiana and Nevada were the major reason adjusted results were off from last year, noting that its new Atlantic City casino, the Borgata, added three cents to earnings.

That said, the company's top line was light. Boyd announced fourth-quarter revenue of $308 million, missing the $310.1 million expected by Wall Street, but coming in above the $306 million in the year-ago quarter.

The Borgata, which opened in July 2003, was a notable bright spot for the company. The new casino generated $122 million in gaming revenue, the second-highest amount in Atlantic City, trailing only Bally's Park Place. In the quarter, Borgata generated more revenue from table gaming than any other Atlantic City casino and filled 90% of its hotel rooms, up from 80% in the third quarter.

"We are attracting players who did not visit Atlantic City before the opening of Borgata, achieving one of our goals to expand the Atlantic City gaming market," said William Boyd, CEO and chairman.

While gamblers are flocking to the Borgata, the other nine properties the company owns didn't perform quite as well. In keeping with the industry trend, Las Vegas properties like the Stardust and Sam's Town did well, increasing net revenues over last year's quarter. But in Illinois and Indiana, where Boyd owns the Par-A-Dice and Blue Chip casinos, revenue was off from year-ago levels.

Ahead of the earnings release, Boyd fell 64 cents, or 3.9%, to $15.75.