Boyd Gaming 4Q loss widens on hefty charge
LAS VEGAS (AP) -- Boyd Gaming's fourth-quarter loss widened, dragged down by a large impairment charge related to the casino operator's decision against proceeding with the development of the Echelon site on the Las Vegas Strip.
Boyd has agreed the sell the site to the Genting Group for $350 million in cash. The transaction is expected to close Monday. Boyd said it anticipates about $157 million in net proceeds from the deal.
"The sale of the Echelon site is another important step in the ongoing effort to improve our long-term financial position," President and CEO Keith Smith said in a statement on Monday. He said that while the company is still committed to the Las Vegas market, it decided that developing such a large-scale project there was "not consistent with our current strategy."
Boyd lost $899.9 million, or $10.24 per share, for the three months ended Dec. 31. That compares with a loss of $491,000, or 1 cent per share, a year ago.
Stripping out the one-time charge related to Echelon and other items, the company lost 31 cents per share.
Analysts expected a loss of 13 cents per share, according to a FactSet survey.
Revenue climbed 3 percent to $625.8 million from $606.7 million as it made more money from people gambling and was slightly less promotional. Wall Street forecast higher revenue of $635.8 million.
For the year, Boyd Gaming Corp. lost $908.9 million, or $10.37 per share. In the previous year the Las Vegas company lost $3.9 million, or 4 cents per share. Annual revenue increased 6 percent to $2.49 billion from $2.34 billion.
Boyd has 22 properties in Nevada, New Jersey, Illinois, Indiana, Iowa, Kansas, Louisiana and Mississippi.
Its shares fell 11 cents, or 1.7 percent, to $6.35 in premarket trading.
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