Hawaii's economy boosts Boyd's revenue
Casino operator Boyd Gaming Corp., which operates daily charter flights to Las Vegas from Honolulu, said fourth-quarter profit slumped 51 percent because of its planned demolition of the Stardust casino in Las Vegas and preopening expenses for the South Coast Hotel and Casino south of the Strip.
Net income dropped to $22.9 million, or 25 cents a share, from $46.9 million, or 53 cents a share, a year earlier.
But Boyd said Hawaii's strong economy helped boost revenue 8.8 percent to a record $69.3 million at its downtown Las Vegas properties -- the California Hotel and Casino, the Fremont Hotel and Casino and the Main Street Station Casino, Brewery and Hotel.
Vacations Hawaii, the company's Honolulu travel agency and charter flight operator, had revenue of $13.9 million, up 18.8 percent from $11.7 million a year earlier. Overall, revenue grew 4.8 percent to $565.4 million from $539.6 million.
Excluding one-time items, Boyd had earnings per share of 76 cents, a 49 percent increase from 51 cents in the same period a year ago. Boyd said the increase resulted from "widespread" gains in revenue and earnings before interest, taxes, depreciation and amortization. The company cited "brisk business" in Louisiana at the Treasure Chest Casino, which reopened Oct. 10 after being closed by Hurricane Katrina. Boyd also reported a strong performance at Atlantic City's Borgata, which Boyd jointly owns with MGM Mirage.
Boyd said last month it would raze the Stardust and replace it with a $4 billion resort and convention complex that will include the Echelon Resort. Boyd said the Echelon would open in 2010 and that the Stardust will operate through this year.
The Las Vegas-based company last quarter took a $56 million pretax impairment loss for the planned closure of the Stardust and $11 million in preopening expenses related to the opening of the South Coast in late December.
Boyd also received a one-time, net federal income tax credit of $1.5 million relating to wage continuation payments to workers displaced by the Gulf Coast hurricanes.