Boyd Gaming's business model is buoyed by the US public's
insatiable appetite for gaming. One of the country's leading casino
operators, in 2012 Boyd had 22 gaming entertainment properties in
Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, New
Jersey, and Nevada, including 50% of Atlantic City's Borgata Hotel
Casino & Spa. In 2012 the company owned or operated 1,255,576
square feet of casino space, containing approximately 31,577 slot
machines, 758 table games and 11,416 hotel rooms.
Boyd's operations include properties in Illinois, Indiana, Iowa,
Kansas, Louisiana, Mississippi, New Jersey, and Nevada, and a
travel agency in Hawaii.
The company operates in four segments: Las Vegas Locals,
Downtown Las Vegas, Midwest and South and Atlantic City. Its Las
Vegas Locals segment consists of six casinos which include Gold
Coast Hotel and Casino; The Orleans Hotel and Casino; Sam's Town
Hotel and Gambling Hall, and Suncoast Hotel and Casino. The
company's Midwest and South properties consist of four dockside
riverboat casinos, one racing and two barge-based casinos that
operate in four states in the Midwest and southern US.
Sales and Marketing
The company's advertising and marketing promotion costs are
included in selling, general, and administrative expenses on the
consolidated statements of operations and totaled $38.3 million in
Boyd's revenue increased in fiscal 2013 compared to the prior
fiscal period. It reported $2.89 billion in revenue for fiscal
2013, up from $2.48 billion in revenue for fiscal 2012. The growth
was powered by increases in revenue from the company's Midwest and
South and Peninsula Gaming segments, offset by decreases in revenue
from its Nevada and Atlantic City properties.
The spike in total annual revenue resulted in a net income of
$278 million for fiscal 2013. That was an improvement after the
company claimed a net loss of more than $850 million in fiscal
2012, primarily because of the impairments of assets. Boyd's cash
flow also recovered during fiscal 2013 from dangerously low levels
in during fiscal 2012.
In Las Vegas, the company's $4.8 billion Echelon Place was
planned to be a megacasino, spanning more than 60 acres. The
project also included a hotel joint venture with Morgans Hotel
Group. Boyd suspended construction on the project, citing a Las
Vegas market that has been battered by unemployment, foreclosures,
and a drastic decline in tourism. Boyd previously stated that it
planned to resume construction in three to five years.