Boyd Gaming Corporation yesterday reported financial results for the second quarter ended June 30, 2011. Net revenues were $574.4 million for the second quarter 2011, a decrease of less than 1% from the same quarter in 2010. Net revenues were impacted by the closure of Sam's Town Tunica for 25 days in May due to flooding along the Mississippi River. Borgata, Boyd’s 50% joint venture in Atlantic City, reported second-quarter 2011 net revenues of $182.8 million, down 2.2% from the second quarter of 2010. For the second quarter 2011, the Company reported a net loss of $3.0 million, or $0.03 per share, compared to net income of $3.4 million, or $0.04 per share, in the same period last year.
Commenting on the quarter, Keith Smith, President and Chief Executive Officer of Boyd Gaming, said, "Our results for the second quarter reflect continued positive momentum in our business. The improvements during the quarter were broad-based, as all three operating regions posted year-over-year EBITDA gains, and operating margins in our wholly-owned business rose by 240 basis points. We were especially pleased with the continued strong performance of our Midwest and South properties, which reported a 19% EBITDA gain for the region's third consecutive quarter of growth."
For the six months ended June 30, 2011, Boyd reported net revenues of $1.14 billion, essentially flat with the six months ended June 30, 2010. Total Adjusted EBITDA was $230.2 million during the period, up slightly from the prior year. The company reported a net loss for the six months ended June 30, 2011 of $6.5 million, or $0.07 per share.
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By comparison, Boyd reported net income of $11.8 million, or $0.14 per share, for the six months ended June 30, 2010.
Borgata's net revenues for the second quarter 2011 were $182.8 million, down 2.2% from $186.9 million in the second quarter 2010, while property Adjusted EBITDA declined 10.0% to $38.7 million, compared to $43.0 million in the comparable period in 2010. Borgata continued to outperform the market despite heightened regional competition, boosting its market share by 80 basis points. The property also posted increases in non-gaming revenue, primarily from improved hotel ADRs and occupancy. These gains, however, were offset by increased promotional expense.
Boyd is in the final stages of due diligence related to its acquisition of the IP Casino Resort Spa in Biloxi, Mississippi, and expects to complete the process by August 4. Assuming this process is completed satisfactorily, the company will pay a $10 million non-refundable deposit to the sellers on this date and expects to close the transaction early in the fourth quarter. (E-07.28.11)
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