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. In addition to its resorts and casinos, Boyd also owns a travel agency and a travel-related insurance agency, both of which are in Hawaii.
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 fiscal 2012.
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.
Mergers and Acquisitions
Boyd completed a reported $1.45 billion acquisition of Iowa-based Peninsula Gaming in 2012, a significant deal that expands Boyd's footprint into Iowa and Kansas and gives it additional presence in Louisiana.
The previous year Boyd acquired the IP Casino Resort Spa in Biloxi, Mississippi for about $278 million. The property includes 1,100 hotel rooms and suites and a 70,000-square-foot casino, as well as restaurants and bars, convention space, a salon and spa, and a theater. It made the purchase to expand in the regional destination market of Biloxi. Boyd is investing $44 million to renovate the property. These acquisitions are part of a broader effort by Boyd to expand its footprint in both the Midwest and the South.
In 2012 Chairman William S. Boyd and his family owned more than 35% of Boyd Gaming.