Boyd Gaming's business model is buoyed by the US public's
insatiable appetite for gaming. One of the country's leading casino
operators, Boyd operates more than 20 gaming entertainment
properties located in Nevada and several other US states. Besides
Nevada, the company has casinos in Illinois, Indiana, Iowa, Kansas,
Louisiana, Mississippi, and New Jersey, including 50% of Atlantic
City's Borgata Hotel Casino & Spa. Most of the company's
properties are sprawling resort hotels that feature pools, full
casinos, restaurants, shops, and on-site entertainment options for
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 five segments: Las Vegas Locals,
Downtown Las Vegas, Midwest and South, Peninsula, and Borgata.
Its Las Vegas Locals segment accounted for 28% of revenue during
fiscal 2015. It 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. This
segment brought in almost 40% of Boyd's revenue during fiscal
Sales and Marketing
The company's advertising and marketing promotion costs were
about $33 million in fiscal 2015. Boyd works to build loyalty with
locals since the casinos that are not on the Las Vegas Strip are
not as popular with tourists and convention attendees.
Boyd's revenue was about $2.2 billion in fiscal 2015. That was a
decrease of 19% compared to the prior fiscal period. The decrease
in revenue was mainly from the deconsolidation of Borgata as
revenue from all other segments increased during the year.
In fiscal 2015 Boyd's net income was $47.23 million after the
company claimed a net loss in fiscal 2014. The improvement was due
to decreased operating expenses.
The company's cash from operating activities was $339.84 million
at the end of fiscal 2015. That was an increase of 5% compared to
fiscal 2014 due to changes in prepaid expenses and other current
assets and accounts receivables.
Many of Boyd's properties are dated and in need of upgrades or
total renovation. It will take large capital investments to bring
the company's facilities up to modern standards. For example, Boyd
is spending $45 million on expansion of its Delta Downs Racetrack
Casino Hotel in Vinton, Louisiana. The company is also spending
more than $100 million on upgrades and renovations to its Las Vegas
and regional properties with plans to add 20 more restaurants.