Boyd profit more than doubles in last quarter
Star-Bulletin staff and news services
LAS VEGAS » Casino operator Boyd Gaming Corp. said yesterday its fourth-quarter profit more than doubled, but also noted that revenues declined at its travel agency related operations, which include its Vacations Hawaii unit.
Overall, net income grew to $56.3 million, or 64 cents per share, from $22.9 million, or 25 cents per share, in the previous year.
Revenue for the quarter dipped 4 percent to $520.8 million from a year ago.
Adjusted earnings from continuing operations came in at 45 cents per share.
On that basis, the results beat the expectations of analysts polled by Thomson Financial, who forecast, on average, profit of 39 cents per share on revenue of $509.2 million.
Morgan Stanley analyst Celeste Brown said the earnings provided "a pleasant surprise," and came after the company's operations for Las Vegas residents improved.
But at Boyd's travel agency operations, the company reported revenues of $13.1 million for the fourth quarter versus $14.0 million for the three months ended Dec. 31, 2005. The operations had revenues of $50.1 million for the full year, versus $54.5 million for 2005.
The company did not break out its Vacations Hawaii figures from its other travel agency related entities.
Boyd also announced that capital spending on wholly owned parts of the Echelon Place casino complex will increase to $3.3 billion from $2.9 billion.
The entire project, set to open late in 2010 on the Las Vegas Strip, has been estimated to cost $4 billion. The spending increase was below expectations, Brown said.
The current quarter's results include a $3.6 million, or 3 cents per share, stock-based compensation charge and a $3.6 million loss related to the sale of the South Coast casino.
Boyd said it also gained a net $23.5 million after receiving insurance payments for hurricane damage at its Delta Downs racetrack and casino-hotel in Vinton, La., but incurring costs for closing the Stardust casino-hotel on the Las Vegas Strip.
Total costs and expenses declined to $415.1 million from $496.6 million.
For the year, earnings fell 19 percent from a year ago to $116.8 million, or $1.30 per share.
Full-year revenue gained 1 percent to $2.19 billion.