For the Las Vegas-based casino operator, Wall Street speculated on the next potential acquisition target. Boyd Gaming Corp. executives weren’t interested in taking the bait. The Las Vegas-based casino operator dropping out planned bankruptcy court auction of several Station Casinos’ properties.
When the questions started, Boyd Gaming explained how the company’s second quarter profits to fall 73 percent because the recession left consumers skittish.
Point blank questions were asked by the Union Gaming Group Principal Bill Lerner, if Boyd Gaming had participated in a rumored privately held bank-back auction of M Resort. Josh Hirsberg, Company Chief Financial Officer was noncommittal.
Hirsberg said, «We don’t comment on speculation. We do believe the best opportunities for us are in the locals market. Buying an existing property is a much better opportunity than building something from the ground up.»
During the three-month period that ended June 30, or 4 cents a share, Boyd earned $3.4 million. A net income of $12.8 million, or 15 cents a share was reported by Boyd Gaming, a year ago. Compared with $614.5 million collected a year ago, net revenues during the quarter declined 5.9 percent to $578.4 million.
At Borgata, Net revenues fell from $191.5 million to $186.9 million. Adjusted cash flow was off 9.9 percent. The Borgata’s performance was affected by higher utility costs, higher promotional activity from competitors and reduced day-trip visitation to Atlantic City during June. In every operating segment, Boyd Gaming’s revenues and cash flows were down, during the quarter.
In the Las Vegas locals market, adjusted cash flows declined 16.2 percent while net revenues were $153.1 million, down from $166.1 million. Compared to $57.6 million a year ago, the company’s downtown casinos generated net revenues of $55.2 million, while adjusted cash flow was off 21.2 percent.
In the Midwest and South, the results weren’t better. Compared with $197.3 million in the same quarter of 2009, Boyd Gaming recorded $181.7 million in net revenues. Adjusted cash flows were off 20.9 percent.