Boyd Gaming earnings decrease
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Boyd Gaming Corp.'s earnings fell 45 percent in the fourth quarter amid slowing revenue from both its gaming operations and its Vacations Hawaii subsidiary.
Vacations Hawaii, which runs charter flights six days a week to Las Vegas from Honolulu, saw its revenue decrease 7.6 percent to $13.1 million from $12.1 million while revenue for the full year fell 11.4 percent to $44.4 million from $50.1 million.
For the overall company, net income dropped to $31.2 million, or 35 cents per share, compared with $56.3 million, or 64 cents per share, a year ago.
Revenue declined 8 percent to $478.6 million from $520.8 million.
Full-year earnings more than doubled to $303 million, or $3.42 a share, from $116.8 million, or $1.30 a share. Annual revenue fell to $2 billion, down 9 percent from $2.19 billion in the prior year.
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Staff and wire reports
Casino operator Boyd Gaming Corp. said yesterday its fourth-quarter profit tumbled 45 percent on slowing gaming revenue and increased losses at its Vacations Hawaii subsidiary.
Still, the adjusted results surpassed Wall Street's expectations.
Vacations Hawaii, which runs charter flights six days a week to Las Vegas from Honolulu, saw its revenue fall 7.6 percent to $12.1 million from $13.1 million in the year-earlier quarter, while revenue for the full year declined 11.4 percent to $44.4 million from $50.1 million.
Overall, net income for the parent company dropped to $31.2 million, or 35 cents per share, compared with $56.3 million, or 64 cents per share, a year ago.
Excluding preopening costs and other items, earnings fell to $34.9 million, or 39 cents per share, from $39.9 million, or 45 cents per share. Analysts polled by Thomson Financial expected 37 cents per share, excluding one-time items.
The casino operator reported quarterly revenue declined 8 percent to $478.6 million from $520.8 million. Consensus estimates put revenue at $497.8 million.
Gaming revenue fell to $395.3 million from $429.5 million, while food and beverage sales dipped to $67.5 million from $72.6 million.
Keith Smith, president and chief executive of Boyd, blamed Vacations Hawaii's losses on higher fuel prices and increased competition, but said that load factors, or the percentage of seats filled, are up.
"But generally speaking, the Hawaiian market remains a strong market for us," he said.
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.
Smith said he's encouraged about Vacations Hawaii's outlook because he said the Hawaii economy is benefiting from foreign travel into the state due to the lower dollar.
"That's something we've certainly seen before," he said. "So whatever weakness occurs in the U.S. going west is picked up by traffic coming east out of Asia in particular. And from the consumer standpoint, we feel good about what's going on with kind of the rank and file, if you will, customers that we have in Hawaii."
Full-year net income more than doubled to $303 million, or $3.42 per share, from $116.8 million, or $1.30 per share. Annual revenue fell to $2 billion, down 9 percent from $2.19 billion in the prior year.
Associated Press and Star-Bulletin reporter Dave Segal contributed to this report.