Boyd Gaming cash flow up

Boyd Gaming Corp. said today a strong performance by its downtown Las Vegas properties helped boost first-quarter cash flow.

Boyd reported first-quarter net income of $8.9 million, or 14 cents a share, compared with $9.3 million, or 15 cents a share, in 1998's first period. Revenue was $243.3 million compared with $250 million in the 1998 quarter.

For the latest quarter, a one-time accounting charge related to start-up activities cut $1.7 million, or 3 cents a share, from net income. Last year's results included revenue and earnings from Boyd's Sam's Town Kansas City property that was sold last July.

The per-share net equaled the 14-cent estimate of nine analysts surveyed by First Call Corp. The gains were fueled by the performance of Boyd's California, Fremont and Main Street Station hotel-casinos downtown.

The company said those three properties posted record cash flow of $9.3 million, up sharply from the $5.8 million recorded in the 1998 first quarter. The gains were attributable to strong business from the Hawaiian feeder market and cost-saving measures the company has initiated, Boyd said.

Overall, cash flow from property operations rose 3.5 percent to $60.8 million from $58.7 million in the 1998 quarter, Boyd said.

During the recent first quarter, Boyd repaid $37 million in debt, bringing the total debt reduction to $105 million over the past five quarters. Interest expense was trimmed $2.1 million, or more than 10 percent, in the latest quarter from the 1998 first period.

The Stardust posted steady revenue and cash flow compared with last year, while Sam's Town on the Boulder Strip was impacted by a weak table-game hold percentage. Boyd is spending $25 million to renovate the Stardust and gearing up for development of Borgata, a $750 million joint venture with Mirage Resorts Inc., in Atlantic City.

Chairman William Boyd said the overall performance demonstrates the benefits of the company's diversification strategy.

"While most of our properties reported first-quarter numbers not much different from those reported in the first quarter of last year, our downtown properties surged," he said.

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