The chips are stacked so high that it's becoming difficult to see the dealer. Boyd Gaming
On an adjusted basis, the casino operator saw third-quarter earnings climb from $0.15 per share last year to $0.38 per share, edging analyst estimates. Meanwhile, revenues climbed 68% to $522 million, and EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 109% to $133 million.
The bulk of the gains can be attributed directly to the recent acquisition of Las Vegas locals casino operator Coast Casinos. The $1.3 billion deal, which closed July 1, (see Boyd Takes the Coast), added $162 million in revenue and $45 million in EBITDA to Boyd's third-quarter result. On their own, the Coast properties managed revenue growth of 9.4% while increasing property EBITDA by 21%. Over the past 12 months, Coast has produced revenues of $642 million and $187 million in EBITDA.
Boyd also reported gains across the broad range of its operations, with same-store revenue climbing 3.6%. The Borgata, a 50-50 joint venture with MGM Mirage
With winnings like this combined with sky-high room rates in Atlantic City, Boyd announced an additional expansion project in the form of a new hotel tower. The tower will feature about 800 guest rooms, suites, and "resort condominiums."
Elsewhere, the company's Central region -- consisting of five riverboats and a "racino" (a racetrack with slots) in Indiana, Illinois, Mississippi, and Louisiana -- reported revenue growth of 22% as well as a 15.5% increase in EBITDA. Boyd attributed those gains to the addition of Sam's Town Shreveport in the Shreveport/Bossier City, La., market, which the company purchased from Harrah's Entertainment
The hot hand was also evident at the Stardust on Las Vegas Strip, which saw revenues increase 10.7% to $35.8 million while turning an EBITDA loss into a gain of $3.1 million.
This winning streak has several causes. A portion of the gains can be attributed to the acquisition of Coast Casinos, which establishes Boyd as a Las Vegas locals power alongside Station Casinos
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Fool contributor Jeff Hwang owns none of the companies mentioned above.