Boyd Gaming reported second-quarter 2016 net revenues of $544.9m (€490m), down 2.7 percent compared to the year-ago quarter.
[dropcap]O[/dropcap]n a GAAP basis, and including discontinued operations, the company reported net income of $30.0m (€27m) for the second quarter of 2016, compared to a net loss of $6.4 (€5.8) million for the year-ago period. Income from continuing operations, net of tax, for the second quarter was $11.3m (€10.1m), compared to a net loss of $12.4m (€11.2m) in the prior-year second quarter. Prior-year results were impacted by pretax losses on the early extinguishments of debt of $31.0m (€27.8m).
During the second quarter of 2016, the Company announced an agreement to sell its 50 percent equity interest in the parent company of Borgata Hotel Casino & Spa. As a result of this agreement, the Company’s share of Borgata’s net income is reflected as discontinued operations in the accompanying consolidated financial statements.
The second quarter of 2016 was a significant time for our company, as we executed several transactions that will strengthen our financial foundation and position us for continued growth. With the acquisitions of Aliante and the Cannery properties, we will be expanding our presence in the high-growth Las Vegas locals market. And we unlocked the significant value in our Borgata joint venture, allowing us to further accelerate our deleveraging efforts.
Total Adjusted EBITDA(1) was $137.9m (€124m), down 1.9 percent compared the second quarter of 2015. Adjusted Earnings(1) for the second quarter 2016 were $18.1m (€16.3m), down 13.4 percent compared to Adjusted Earnings for the same period in 2015. Adjusted EBITDA and Adjusted Earnings exclude discontinued operations.
Keith Smith, president and chief executive officer of Boyd Gaming, said: “The second quarter of 2016 was a significant time for our company, as we executed several transactions that will strengthen our financial foundation and position us for continued growth. With the acquisitions of Aliante and the Cannery properties, we will be expanding our presence in the high-growth Las Vegas locals market. And we unlocked the significant value in our Borgata joint venture, allowing us to further accelerate our deleveraging efforts.”
Smith added: “In terms of our operational performance, results across our business segments were varied. In Las Vegas, strong performances in our Locals operations in April and June were tempered by a tough year-over-year comparison in May, while our Downtown Las Vegas operations continued to deliver a high level of performance. In the Midwest and South segment, our performance improved modestly from trends earlier in the year, while the
Peninsula segment performed below our expectations, largely due to a weaker than expected gaming market in Kansas.”
