In preparation for BYD's FQ1 2012 earnings release Tuesday, we’ve put together the recent pertinent forward looking company commentary.
YOUTUBE FROM Q4 CONFERENCE CALL
- "We are confident that 2012 will see Las Vegas set a record and surpass the 40 million visitor mark."
- "We are confident that even with new competition entering the market, Borgata will remain the leading resort in the region."
- "While we made progress toward that goal in 2011, reducing our overall leverage by almost full turn, we know we must continue this effort during 2012."
- "We made great strides in 2011 creating efficiencies and improving our margins. We will stay focused on this in 2012."
- "We saw encouraging strength in our Hawaiian customer segment, as both visitation and play from Hawaiians
increased significantly from last year. There are a number of reasons to be optimistic about the future of Downtown. A number of new non-gaming businesses have been moving into the area. Development along the Fremont Street East district continues and The Smith Center, a 2,000 seat, world-class performing arts center will open its doors Downtown next month. These developments will bring new jobs, new visitors and new residents to Downtown Las Vegas. And we are already benefiting from the energy and excitement coming into the area, as visitor traffic has grown substantially on the Fremont Street Experience, helping to drive our strong results. The outlook for Downtown is bright and with one-third of the total market, Boyd Gaming will benefit from the area's renaissance." - "We're on target to roll out B Connected at the IP during the second quarter, which will allow us to capitalize on the busy summer season and accelerate growth in the year ahead."
- "We are working hard to ensure that Borgata's team members continue to deliver the best possible service to our customers. And the hotel room redesign already underway, will be completed by midyear, helping to keep our product at the top of the market. Based on the feedback we've received so far, the refreshed rooms have been well received by our guests."
- "When it launches in the second quarter, we are confident that B Connected Online 2.0 will further enhance the exceptional, personal experience our customers have come to expect from Boyd Gaming."
- "For 2012, we expect corporate expense to be approximately $44 million."
- "For 2012, we expect consolidated depreciation expense to be approximately $200 million to $205 million, about $135 million to $140 million of which is attributable to Boyd and the remaining to Borgata."
- "We expect share-based comp to be approximately $10 million in 2012. Pre-opening expense, before the consolidation of Las Vegas Energy was $4 million in the fourth quarter and that is a good quarterly run rate estimate for 2012"
- "Using the current forward curve for LIBOR, we expect interest expense to be approximately $160 million for Boyd in 2012 and approximately $85 million for Borgata."
- "For guidance purposes, we are assuming a 35% tax rate for 2012."
- "For 2012, at Boyd, we expect to spend approximately $100 million and at Borgata, approximately $60 million, which includes $35 million related to the room project that was started last year and is expected to be completed in the middle of this year."
- "We expect wholly owned EBITDA, including IP and after the deduction for corporate expense, to be in the range of $88 million to $93 million. We expect Borgata to generate EBITDA of $32 million to $34 million. With this range of EBITDA guidance, including a full quarter of IP, adjusted EPS for the first quarter is expected to range from $0.05 to $0.09 per share."
- [LV Locals growth] "I guess it's coming in both sides [gaming/non-gaming]. So we've turned the corner, we think it's low single-digits for 2012, but it's certainly higher than what you've seen in the last couple of quarters."
- "We can see $0.60 on the dollar plus or minus flow through off of any revenue increases."
- [IP synergies] "We definitely feel very comfortable with the $5 million and we think there's pretty good upside to that number. As it relates to things like property insurance, utilities, savings on the procurement side by just being part of a much larger organization and buying at, frankly, just better rates because of volumes, are all starting to fold in now. We'll be completed with our insurance renewal in the second quarter and I think you'll see a full year of 2012 that reflects some healthy synergies, certainly well in excess of the $5 million that we have targeted."
- [Margaritaville competition] "Relatively small project, no hotel rooms. Really I guess the best way to describe it, is a locals-oriented property with relatively tough location from an access perspective. Really don't see that impacting our business at all."
