Boyd Gaming Q1 Loss Narrows Despite Lower Revenues

(RTTNews) - Boyd Gaming Corp. (BYD) on Wednesday reported a loss for the first quarter that narrowed from last year as a decline in costs and expenses helped offset lower revenues. Excluding items, the company reported adjusted loss for the quarter, while analysts expected the company to report a profit.

The latest quarter's results were negatively impacted by unusually severe winter weather at the company's operations outside of Nevada. Additionally, Borgata's online gaming operations recorded a $3.2 million operating loss related to its launch.

Net loss attributable to the company for the first quarter narrowed to $6.18 million or $0.06 per share from $7.28 million or $0.08 per share in the year-ago period.

Adjusted net loss for the quarter was $4.10 million or $0.04 per share, compared to adjusted net income of $1.41 million or $0.02 per share in the comparable quarter last year.

On average, sixteen analysts polled by Thomson Reuters expected the company to earn $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter declined 4 percent to $708.35 million from $735.58 million in the year-ago period. Analysts had a consensus revenue estimate of $713.12 million.

Total costs and expenses for the quarter were $639.83 million, down 2 percent from $654.16 million in the prior-year quarter.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said, "Boyd Gaming continued to make steady progress in the first quarter, delivering results at the high end of our guidance. We were particularly encouraged by the performance of our Las Vegas Locals business, which generated its fifth straight quarter of EBITDA growth."

Revenue at the company's Las Vegas Locals segment edged down slightly, while it was rose 3 percent at the Downtown Las Vegas segment. The company also recorded lower revenue at Midwest and South. Peninsula segment saw a slight increase in revenue, Borgata, the company's 50 percent joint venture, reported a 4 percent decline in revenue.

Looking ahead to fiscal 2014, Boyd Gaming forecasts total adjusted EBITDA of $600 million to $620 million.

BYD closed Wednesday's regular trading session at $11.82, up $0.04 or 0.34 percent on a volume of 1.65 million shares. However, in after-hours, the stock declined $0.41 or 3.47 percent to $11.41.