LAS VEGAS – Boyd Gaming, parent company of Blue Chip Casino, Hotel and Spa in Michigan City, recently reported fourth-quarter revenues that were up 33 percent from the previous year.
The Las Vegas-based entertainment corportation reported fourth-quarter revenues of $791.6 million, up 33 percent from the $595.1 million reported in the fourth quarter of 2017.
The company reported net income of $22.9 million, or $0.20 per share, for the fourth quarter of 2018, compared to $82.1 million, or $0.71 per share, for the year-ago period. The fourth-quarter 2017 tax provision included a $60.1 million noncash income tax benefit to recognize the impact of the federal tax legislation on its deferred tax liabilities.
Project development, preopening and writedown expenses increased $12.1 million in the fourth quarter of 2018 over the prior-year period due to acquisition and development-related activities, and the launch of the company's redesigned player loyalty program. Corporate expense increased as compared to the fourth quarter of 2017, primarily due to the recent acquisitions.
Keith Smith, president and CEO, said in a statement: "The strategic initiatives we have executed over the past several years continued to pay off in the fourth quarter of 2018. Our recent acquisitions, efficiency programs and marketing refinements all contributed to strong results.
"We delivered revenue, Adjusted EBITDAR (Earnings before interest, taxes, depreciation, amortization, and restructuring costs), and margin growth in every segment of our business in the fourth quarter as well as the full year," SMith said. "Our consumer remains healthy, and we believe we are in a solid position to continue creating value for shareholders in 2019 and beyond."
While the company does not comment on specifics at individual properties, including, Smith did say, "Blue Chip continued to perform well during the fourth quarter despite new competition in its market."
As for the overall corporation, "During the full year 2018 we diversified our nationwide portfolio and significantly enhanced our free cash flow profile with the acquisition of six new assets across five states. We also entered into a strategic partnership with FanDuel Group, providing us a market-leading partner to pursue sports-betting and mobile wagering opportunities now emerging across the United States.
"And we continued to successfully execute a balanced approach to capital allocation, returning capital to shareholders while actively investing in strategic growth opportunities and prudently controlling leverage."
Total Adjusted EBITDAR was $208.6 million in the fourth quarter of 2018, up 40.7 percent from $148.3 million in the fourth quarter of 2017. Adjusted earnings for the fourth quarter of 2018 were $37.0 million, or $0.32 per share, compared to $25.5 million, or $0.22 per share, for the same period in 2017.
Results for the fourth quarter of 2018 include $186.8 million in revenues and $48.0 million in Adjusted EBITDAR from Ameristar Kansas City, Ameristar St. Charles, Belterra Resort and Belterra Park, acquired on Oct. 15, 2018; Valley Forge Casino Resort, acquired on Sept. 17, 2018; and Lattner Entertainment, acquired on June 1, 2018.
For the full year ended Dec. 31, 2018, Boyd reported revenues of $2.63 billion, compared to $2.40 billion for the full year 2017. Total Adjusted EBITDAR for the full year 2018 was $681.3 million, up from $595.9 million for the full year 2017. Full-year 2018 net income was $115.0 million, or $1 per share, compared to $189.4 million, or $1.64 per share, for the full year 2017.
Full-year 2018 Adjusted Earnings were $152.9 million, or $1.33 per share, up from Adjusted Earnings of $119.0 million, or $1.03 per share, for the full year 2017.
In the Las Vegas Locals segment, fourth-quarter 2018 revenues were $222.6 million, increasing from $219.8 million in the year-ago quarter. Fourth-quarter 2018 Adjusted EBITDAR was $73.0 million, up 13.4 percent from $64.4 million in the fourth quarter of 2017.
In the Downtown Las Vegas segment, revenues were $67.3 million in the fourth quarter of 2018, up from $65.1 million in the year-ago period. Adjusted EBITDAR was $18.4 million in the fourth quarter of 2018, growing 9.6 percent from $16.8 million in the year-ago quarter.
In the Midwest and South segment, which includes Blue Chip, revenues were $501.8 million, up from $310.2 million in the fourth quarter of 2017. Adjusted EBITDAR increased 64.3 percent to $141.8 million, compared to $86.3 million in the year-ago period.