Boyd Reiterates Station Bid, Sees Recovery Signs

The potential acquisition of Station Casinos was one of a number of topics that Smith covered in the fourth-quarter earnings conference call, in which he noted that the company has been pursuing the Station property for more than a year and he said that Boyd is seeing signs of economic recovery in Las Vegas. "The question remains not if, but when," the Boyd chief said of the recovery. "The good news for Las Vegas is that signs of this recovery are beginning to show here. Last Vegas monthly visitation has grown for four consecutive months showing that this city remains an extremely popular tourist destination."

To some extent, the incipient recovery in Las Vegas parallels the early signs of a recovery nationally, Smith pointed out. He noted that, during the fourth quarter, the US economy remained weak and unemployment remained high and consumers continued to spend carefully. "Looking forward, however, we are seeing early signs that a recovery is under way despite the fact that the national economic forecast remains uncertain," he said.

Smith also pointed out that many of Boyd's fellow gaming industry firms "have described cautious optimism about the prospects for recovery on the Las Vegas Strip in 2010." Recovery along the strip, aka Las Vegas Boulevard, "is the heart of our economy and a recovery in business along the Las Vegas Strip is crucial to us as a significant portion of our customer base is tied either directly or indirectly to its economic vitality," Smith said.

Returning to the topic of Station Casinos, Smith pointed out that Station has said that it has an agreement of principle with key lenders on four of Station's 18 properties. If those agreements go through, "It would still leave a considerable amount of assets in play" for Boyd to pursue, Smith said.

During the conference call, Boyd reported a net loss of $1 million, or a penny per share, compared to a net loss of $220.8 million and $2.51 per share in the same period last year. Revenue totaled $384.9 million for the quarter, compared to $422.6 million for the same quarter in 2008.

For the full year, Boyd reported net income of $4.2 million and five cents per share, compared with a net loss of $223 million and $2.54 per share for the year ended Dec. 31, 2008. Revenue for 2009 totaled $1.64 billion, versus $1.78 billion in 2008.