Yesterday Boyd Gaming Corporation reported third quarter results and net income of US$6.3 million, down from US$8.7 million for the same period last year. Net revenues fell 6.6% in the third quarter. The nine-month results in the period ended September 30, 2009 were primarily impacted by noncash, pre-tax impairment charges of US$28.4 million related to Dania Jai-Alai, and US$13.5 million related to a joint venture with Morgans Hotel Group at Echelon, offset by a US$14.4 million gain related to the fire at The Water Club. Net income for the nine months was US$5.3 million.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented on the quarter, "We are encouraged that we were able to produce both increased EBITDA and operating margins in three of our four regions during the quarter. Improved results in our Downtown Las Vegas, Borgata and Midwest and South regions helped offset softness in the Las Vegas Locals market. While visitation levels remained fairly constant, spend per visitor continues to be down significantly year-over-year, as consumers are still being cautious with their spending. I am extremely proud of our management team's ability to produce strengthened operating results and improved margins in the face of declining revenues."

Construction on Echelon, the resort, casino and retail project in Las Vegas, is expected to remain on hold for another three to five years. Smith said, "We continue to believe in the long-term viability of the Las Vegas market. But given the ongoing weak economic conditions, the significant new supply coming online and a difficult capital market environment for projects of this nature, resuming construction in the near term is not an option. We remain committed to having a significant presence on the Las Vegas Strip as part of our long-term growth strategy and we continue to view this site as a major strategic asset.”

In its key operations review the company says that its Las Vegas locals continue to be impacted by lower consumer spending and room rate pressures throughout the entire market, as Las Vegas remains one of the hardest-hit metropolitan areas. Continued strength in its Hawaiian customer segment driven by refinements in targeted marketing efforts, as well as cost-control measures, contributed to gains in the Downtown region.

In the Midwest and South regional results were boosted by a strong performance at the recently expanded Blue Chip property, as well as continued growth at Delta Downs. The Borgata operation continued to expand its leading market share during the third quarter, while improved efficiencies and cost-containment initiatives helped the property grow both operating income and Adjusted EBITDA.

Commenting on Boyd Gaming's previously disclosed proposal to acquire some or all of the assets of Station Casinos, Smith said, "We remain very serious about acquiring Station's assets when permitted by the bankruptcy court. We believe an acquisition would deliver immediate value to our shareholders, and represents a very attractive and timely solution for Station, its creditors, employees and customers." (E-10.28.09)

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