"We are encouraged by continued strength in our Midwest and South region, which recorded its eighth consecutive quarter of EBITDA growth. With the acquisition of Peninsula Gaming, more than two-thirds of our wholly-owned EBITDA will be generated by our Midwest and South properties, further expanding our operations in the strongest segment of the domestic gaming industry. Moving forward, our focus will be on generating sustainable long-term growth, continuing to manage our operations efficiently and strengthening our balance sheet." 


- Keith Smith, President and Chief Executive Officer of Boyd Gaming




  • Borgata: they are prepared to open the property as soon as they get the green light from NJ regulators
  • LV locals market remains extremely competitive. Softness from casual players is the main area of weakness. 
  • Kansas regulators are scheduled to give them approval for the Peninsula acquisition on November 12th
  • Expect the Peninsula gaming acquisition to be accretive to earnings in year 1
  • Business disruption from Isaac reduced EBITDA by about $3MM.  Property tax adjustment had a positive impact of $3.3MM in 3Q11
  • LV Locals:  trends bottomed out in July and stabilized in August and September. 
  • Downtown: growth resumed and anticipate the positive trend will continue in 4Q. Also encouraged by the continued renaissance in Downtown Las Vegas
  • IP recorded a 490bps improvement in margins YoY. 
  • Most of the decline at Borgata was due to weak table hold.  Hotel revenues were up 3% on slightly higher occupancy
  • $1.4BN was outstanding under their RC.  Cash balance (including the $200MM Peninsula contrinbution):  $320MM
  • Secured leverage: 3.84x; Total leverage: 7.35x.  
  • Borgata debt was: $805MM, cash $32MM
  • $4.7MM of their D&A was associated with IP
  • Higher interest was due to new financings completed at higher rates and higher debt balances
  • Capex:  $15MM and $4MM at Borgata
  • 4Q Wholly owned EBITDA guidance: $70-75MM



  • AC:  The table play that moved away from them was mostly lower end and some of that was due to Revel trialers. They increased their promotional dollars slightly. They continued to focus on their core customers. Q3 hold was clearly an anomaly.
  • Borgata has relatively minor damage. They kept power the entire time. Physically they can open but there is a travel ban to AC right now given that traffic lights aren't working.  They don't know what the claim will be under business interruption - depends on when they reopen.
  • Midwest/South:  property tax credit from last year was obviously known about when they provided guidance but they didn't know about Hurricane Isaac. Unfortunately, hurricane hit markets where they are doing the best. Still feels good about where they performed vs. their competitors in the weaker markets.
  • Growth in the locals market has been in the penny denomination area
  • Competition in the LV locals market has been heightened
  • There is seasonality in the IP market.  Biloxi market is a very competitive market. 
  • They are currently spending at a fairly normal level on capex.  They will need to spend a few million on wrapping Echelon early next year but don't see any significant increases in the near future.
  • Have been in talks with their largest lenders regarding the step down in leverage in 4Q and 2013.  Their lenders have been very supportive of them.  Should roll-out an amendment sometime in the 4Q.
  • The low hold at Borgata was related to losses from a few players
  • Table hold impacted them by about $11MM
  • Business interruption deductible is $1MM
  • With respect to promotional activity in AC, Revel was very promotional. PA continues to get more aggressive. Golden Nugget's remodel is also new to the market and had some impact.
  • Expects promotional activity going forward in AC to remain aggressive
  • Revenues were what bottomed in July in LV Locals market. Saw spend per visitor flatten out. Promotional activity is still the same. 
  • No weather impact on IP results
  • Peninsula happens to operate in markets with limited competition which helped margins
  • No indication that they will have staffing issues once they are ready to open at Borgata, but it's too early to tell
  • Sports wagering in AC?  Don't have any comments in respect to the litigation that's ongoing. If it were offered in NJ, they would want to offer it at Borgata. 
  • What happens once their doors open at Borgata and volumes are below normal levels? It's really a negotiation. Business interruption doesn't just cover the time of closure at the property, but it also covers the time leading up to the storm and perhaps right afterwards.



  • Wholly-owned Adjusted EBITDA was adversely impacted by business disruptions from Hurricane Isaac the a comparison from 3Q11 that included a favorable property tax adjustment 
  • Borgata "Revenue and Adjusted EBITDA were impacted by lower table game hold percentage and volume. We remain encouraged by strength in other segments of the business, as slot and hotel revenue increased year-over-year."  
  • Las Vegas Locals: "To improve our performance in the Locals market, we are implementing measures to grow business volumes from casual players, including a significant expansion of our low-denomination slot product."
  • Downtown: "Growth was driven primarily by effective marketing campaigns aimed at our Hawaiian customer base.  Additionally, we saw improved revenue and profitability at our Hawaiian charter service, as changes in our weekly flight schedule allowed us to grow revenue-per-seat by about 12%."
  • Midwest & South: "Regional results were impacted by Hurricane Isaac, which forced the closure of the IP and Treasure Chest in late August, and disrupted business throughout the Gulf Coast region through mid-September.  In addition, results reflect a favorable property tax adjustment in the year-ago quarter."
  • "The IP contributed $49.1 million in net revenues and $9.6 million in EBITDA to regional results during the quarter.  Net revenues at the property were even with the third quarter 2011 as compared to the property's historical results, while EBITDA rose 35.4%.  Improved operating efficiencies and the introduction of our B Connected player loyalty program drove significant EBITDA growth at the IP."
  • Peninsula Gaming acquisition: "We have already secured regulatory approvals from Iowa and Louisiana, and Kansas regulators are scheduled to consider the transaction the week of November 12.  Subject to regulatory approvals, we expect to complete the acquisition of Peninsula Gaming in the fourth quarter."

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