Boyd Gaming Shares Up On Narrower Q3 Loss; Revises FY14 EBITDA View

(RTTNews) - Boyd Gaming Corp.'s (BYD) shares increased around 8 percent in the extended trading on Thursday after the casino operator reported a narrower loss in its third quarter, reflecting lower charges as well as slightly higher revenues. The company also narrowed its fiscal 2014 adjusted EBITDA view to reflect the deconsolidation of Borgata.

The Las Vegas-based company reported a net loss of $15.11 million or $0.14 per share, compared to a net loss of $37.27 million or $0.37 per share a year ago.

The latest quarter results included pretax impairment charge of $12.1 million related to equity ownership interest in Borgata and a pretax impairment charge of $6.2 million to write down certain non-operating assets. The prior year results included pretax loss on early extinguishments of debt of $27.1 million.

Adjusted earnings, which excluded items, for the third quarter were $0.3 million or break even per share, compared to a loss of $8.3 million or $0.08 per share last year.

On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

Total adjusted earnings before interest, tax, depreciation and amortization or EBITDA rose 5.5 percent to $163.9 million. All business segments showed EBITDA margin improvement in the quarter.

Boyd Gaming's third-quarter net revenues improved slightly to $738.84 million from $738.57 million a year ago. Analysts had a consensus revenue estimate of $734.89 million for the quarter.

Las Vegas Locals region revenues increased 1 percent t $141.2 million, and Downtown Las Vegas revenues rose 1.3 percent to $53.4 million. Meanwhile, these were partly offset by lower revenues in the Midwest and South segment.

President and Chief Executive Keith Smith said, "This was a solid quarter for our operations, as we improved operating margins in every segment of our business.... We saw initial signs of stabilization in our regional business as well. ...In all, we continue to make good progress executing on our strategy to drive profitable growth and increase long-term shareholder value."

Looking ahead, Boyd Gaming said it is narrowing its full-year 2014 adjusted EBITDA guidance to the high end of its previously provided guidance. Before consideration of the deconsolidation of Borgata, the company expects to generate between $590 million and $600 million in adjusted EBITDA for the year. As a result of the deconsolidation of Borgata, the company is modifying its guidance to eliminate 50 percent of Borgata's adjusted EBITDA from the fourth quarter. Reflecting this change in accounting, full-year 2014 guidance for Boyd Gaming's adjusted EBITDA is $576 million to $586 million.

Boyd Gaming shares closed Thursday's trading at $11.03, up $0.37 or 3.47 percent. In the after hours, shares gained 8.34 percent to $11.95.