Earnings by Ray Poirier | Several factors caused a poor third-quarter, officials said in announcing fiscal results for Boyd Gaming Corp. (BYD). These included a slowdown in the economy, weather that caused the closing of Gulf Coast casinos and increased competition for its riverboat in Indiana.
During the period, the company said revenues fell 13% to $400.1 million from last year’s $426.5 million. Net income was $8.7 million or $0.10 per share compared to last year’s $31.9 million or $0.36 per share.
Analysts had expected per share earnings of $0.19.
Despite the setback, the company said it had no intention of selling its Echelon project on the site of the former Stardust Hotel/Casino. The project has been halted and won’t be revived until 2010, the company said.
"Our long-term strategic direction for the company is to have a significant presence on the Strip," announced Keith Smith, company CEO. However, he said, the current situation provides the company with time to review its options. These include reducing the size of the project and the possibility of bringing in new partners.
The company’s partners, General Growth Properties Inc. and Morgans Hotel Group Co., are unlikely to continue their participation.