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 LAS VEGAS, Nov. 3 /PRNewswire/ -- Boyd Gaming Corp. (NYSE: BYD) (BYD) today announced results for its first fiscal quarter ended Sept. 30, 1993. The company reported net income of $5.2 million on revenues of $108.5 million vs. net income of $4.6 million on revenues of $106.7 million in the comparable quarter last year. Net income was $2.0 million higher in the current quarter due to the implementation of FASB 109, accounting for income taxes. Net income applicable to common stock was $.5 million lower in both years due to preferred dividends. The preferred stock was converted into common stock in connection with the company's recent initial public offering. Without the effects of the one-time accounting benefit and after preferred dividends, the company reported earnings of $.06 per common share in the quarter vs. $.09 in last year's comparable quarter.
 Operating income for the quarter was $13.5 million, down from $15.8 million in last year's comparable quarter. Most of the decline resulted from reduced earnings at Sam's Town, the company's Boulder Strip property currently undergoing a $90 million expansion. As expected, considerable disruption resulted from the demolition of the property's 200 hotel rooms to make way for a new 650-room atrium hotel and from the elimination of convenient surface parking during construction of a new 1,200-space garage which opened near the end of the quarter. The balance of the decline resulted from several other factors spread across the company's properties including higher employee costs, increased promotional and advertising expenditures, and costs associated with the Stardust show renovation and with reconfiguring and adding restaurant facilities at the Fremont.
 "The level of disruption caused by the construction at Sam's Town was fully expected and should continue until we open the expanded Sam's Town in the middle of 1994," said William S. Boyd, chief executive officer of Boyd Gaming Corp. "Some of the other causes for reduced margins in the quarter were one-time factors. We are pleased that, other than Sam's Town, we experienced strong revenue growth and that more recent trends show our operating margins narrowing the gap with the prior year."
 The following chart reports first quarter net revenues and earnings before interest, depreciation, amortization, and income taxes (EBITDA) for the company's Las Vegas properties and corporate expense:
 Financial Highlights
 Net Revenues EBITDA
 Three Months Ended Three Months Ended
 Sept. 30, Sept. 30,
 , 1993 1992 1993 1992
 Stardust $50,598 $49,497 $13,189 $13,720
 Sam's Town 24,495 25,693 5,244 6,842
 Properties 33,434 31,472 7,033 7,430
 Corporate 0 0 (2,173) (2,302)
 Totals 108,527 106,662 23,293 25,690
 In addition, Boyd Gaming Corp. reported the following:
 The company's initial public offering of common stock closed on Oct. 22, 1993. The company issued 4,600,000 shares at $17 per share and received proceeds of $73.1 million. Concurrently, the company acquired Eldorado Inc., comprising two casinos in Henderson, Nev., which will be reported, together with Sam's Town, as the Boulder Strip Properties.
 The company refinanced its bank credit agreement in September 1993. The combination term loan and revolving credit allows for $235 million of borrowings of which approximately $90 million is currently unused. The availability will be used primarily for the development costs of the Sam's Town expansion.
 The company issued $150 million of 10 3/4 percent, 10-year senior subordinated notes in September 1993. The proceeds will be used primarily to finance the company's new gaming ventures outside the State of Nevada.
 The development of the company's four new casino entertainment facilities in Mississippi, Missouri, and Louisiana remain on schedule for openings between the spring and fall of 1994. The company is continuing to evaluate expansion opportunities beyond those currently under development.
 Boyd Gaming Corp. is the parent company of California Hotel and Casino which owns and operates six casino hotels in Las Vegas: The Stardust Hotel and Casino on the Strip; Sam's Town Hotel and Gambling Hall; Eldorado Casino and Jokers Wild Casino on the Boulder Strip; and the California Hotel and Casino and the Fremont Hotel and Casino, both in downtown Las Vegas. Boyd Gaming Corp. is currently developing projects in Tunica County, Miss. and Kansas City, Mo., and has entered into management contracts with the Mississippi Band of Choctaw Indians to manage a casino near Philadelphia, Miss., and with Treasure Chest Casino to manage its riverboat gaming operation in Kenner, La.
 -0- 11/3/93
 /CONTACT: Ellis Landau of Boyd Gaming, 702-792-7210/

CO: Boyd Gaming Corp. ST: Nevada IN: CNO SU: ERN

EH -- SD002 -- 0147 11/03/93 12:15 EST
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Publication:PR Newswire
Date:Nov 3, 1993

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