Boyd earns $31.8M despite fall in revenue
The result came despite a 7.7 percent decline in revenue
Boyd Gaming Corp.
returned to a profit in the third quarter with a $31.8 million gain, even as the casino operator's overall revenue slipped 7.7 percent to $490.1 million.
Revenue also slid at the company's Vacations Hawaii subsidiary, which runs charter flights to Las Vegas from Honolulu, but by only 5.5 percent, to $9.8 millioni.
In the year-ago quarter, Boyd lost $12.9 million.
Casino operator Boyd Gaming Corp., whose Vacations Hawaii subsidiary runs charter flights to Las Vegas from Honolulu, today reported a third-quarter profit yesterday of $31.8 million after a year-earlier loss that was primarily attributable to a sizable charge on the sale of its South Coast Hotel & Casino.
Third-quarter net: $31.8 million|
Year-earlier gain: $12.9 million
Boyd's earnings per share were 36 cents versus 15 cents a year ago when the company lost $12.9 million after taking a $65 million impairment loss on the sale of South Coast in Las Vegas to Michael Gaughan, the founder of the Coast Casinos chain that Boyd merged with three years ago.
Total revenue fell 7.7 percent to $490.1 million from $530.7 million, while revenue from Vacations Hawaii decreased 5.8 percent to $9.8 million from $10.4 million.
Hawaii residents primarily frequent Boyd's downtown properties, which include the California Hotel & Casino, the Fremont Hotel & Casino and the Main Street Station Casino, Brewery & Hotel.
Last quarter's overall revenue was hurt by the Stardust's closing in November 2006, a new competitor in the northern Indiana market and the resumption of competition in the Gulf Coast following Hurricane Katrina.
Boyd, which owns and operates casinos in seven states, closed the Stardust to make room for the Echelon, which it is building on the Las Vegas Strip and expects to open in the third quarter of 2010.
Despite the lower total revenue, Boyd's Las Vegas properties were strong performers as the Las Vegas locals segment posted a 9.1 increase in adjusted earnings to $61.3 million, with the downtown Las Vegas recording the highest third-quarter adjusted earnings in its history at $10.3 million, up 8.4 percent.
Excluding $5.3 million in pre-opening charges for the Echelon, and other one-time items, Boyd said adjusted earnings from continuing operations were $38.4 million, or 43 cents a share compared with $38.8 million, or 44 cents a share. Analysts were expecting 42 cents a share.
Boyd also declared a quarterly dividend of 15 cents that will be payable on Dec. 3 to shareholders of record on Nov. 16.