Company revenues still down, but not duplicating last year's precipitous declines

Boyd Gaming (NYSE: BYD) posted $10.4 million in adjusted net income in the second quarter on $423 million in revenues, both down from a year ago.

Revenue was down 8.2 percent compared with the same period in 2008, reflecting the impact of the recession on operating conditions. Total adjusted EBITDA was down 11.7 percent to $105.6 million. Profit for the quarter, equivalent to 12 cents per share (versus 30 cents in 2Q08), was down more than 60 percent.

“The uncertainty which exists in the economy today continues to negatively impact consumer spending,” said CEO Keith Smith. “Despite this, we believe the precipitous declines that began in the second half of 2008 are over, as we continue to see stabilization in our business.”

Second-quarter EBITDA took a 29.7 percent hit across the company’s Las Vegas locals casinos, where revenues were down 16 percent.

The Downtown Las Vegas casinos fared a little better, which the company attributed to improved operating margins and lower fuel costs for its Hawaiian charter flights. EBITDA was up 14.5 percent despite an 8.5 percent decrease in net revenues.

Adjusted EBITDA at the Borgata in Atlantic City was $47.7 million, up from $45.2 million in the second quarter of 2008, as cost-cutting and other control measures were able to offset a 6 percent decline in revenues.

Revenues were roughly flat year over year across the company’s Midwest and Southern casinos at $199.2 million. EBITDA was down 2.4 percent to $44.3 million.

Company-wide EBITDA for the first six months of the year was down 13 percent to $215.2 million on an 8 percent decline in net revenues to $857.8 million.