On April 26, Boyd Gaming (NYSE:BYD) released first-quarter earnings for the period ended March 31.

  • Revenue declined 12%, as a result of closing Las Vegas's Stardust casino, and tough competition in the key Las Vegas locals and Atlantic City markets.
  • Non-gaming revenue at the Borgata increased by 19%, fueled largely by the casino's expansion project.
  • Boyd completed its acquisition of Dania Jai-Alai in Florida, one of four pari-mutuel facilities with Class III slot machines.
  • Boyd carries a three-star rating in Motley Fool CAPS, while soon-to-be-private competitor Station Casinos (NYSE:STN) earned only one star.

 (Figures in millions, except per-share data.)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$517.0

$589.6

(12.3%)

EBITDA

$155.4

$204.4

(24%)

Net Profit

$33.5

$65.3

(48.7%)

EPS

$0.38

$0.72

(47.2%)

Diluted Shares

88.5

90.9

(2.6%)

*Net profit from continuing operations.

Get back to basics with the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

EBITDA Margin

30.1%

34.7%

(4.6)

Operating Margin

18%

23.5%

(5.5)

Net Margin

6.5%

11.1%

(4.6)

*Expressed in percentage points.

Margins are the earnings engine.

EBITDA by Region

 2006

 2005

Change

Las Vegas Locals

$74.6

$82.0

(9%)

Stardust

$0.0

$6.8

N/A

Downtown Las Vegas

$13.9

$14.1

(1.6%)

Midwest and South

$57.3

$83.9

(31.7%)

Borgata*

$21.9

$25.4

(13.9%)

*Boyd's share of Borgata EBITDA, which it splits with MGM Mirage (NYSE:MGM).

Related Foolishness:

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