Boyd, Gaylord, Sands Earnings Down in Q1

April showers did not bring May flowers for at least three companies — Boyd Gaming, Las Vegas Sands and Gaylord Entertainment — that had bad news for investors with their first-quarter earnings reports.

Las Vegas Sands' earnings declined for the second quarter. After dropping 65 percent to $39.9 million in the fourth quarter of 2007, compared with $113.6 million in the same period in 2006, this year's first-quarter earnings were down even more to $23.6 million, 79 percent below the year-ago quarter, compared with $114.6 million last year.

Revenue, on the other hand, increased nearly 72 percent in the first quarter to $1.08 billion, compared with $628.2 million in the same period in 2007.

Las Vegas Sands blamed the earnings hit on fierce competition in Asia where it has the Sands Macao and Venetian Macao.

William P. Weidner, the company's president and COO, said, "While we remain pleased with our progress in the steady execution of our global growth strategy, our first-quarter operating results reflect both an intensely competitive operating environment in Macao, as well as a weaker economic environment here in the United States."

Las Vegas Sands had better news with its Las Vegas properties, including the Sands Expo & Convention Center/Venetian Resort Hotel Casino and The Palazzo Resort Hotel Casino, which recently opened. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in Las Vegas increased 9.3 percent to $122.6 million, compared with $112.1 million in the same period last year.

Another Las Vegas-based company, Boyd Gaming — also had a tough first quarter after finishing last year with declines in revenue and net income.

Boyd splits its properties into three categories — Las Vegas locals (located on the Strip), Las Vegas downtown and Midwest and South — and all of them were down.

The Midwest and South, where Boyd has casinos in Mississippi, Louisiana and Indiana, took the biggest hit with more than a 13-percent drop in revenue to $203.7 million. Revenue from the company's downtown Las Vegas properties dipped 4.6 percent to $60.9 million and the Las Vegas locals' revenue, which includes the Suncoast Hotel and Casino and Sam's Town Casino, also decreased 5.6 percent to $206.5 million.

Gaylord Entertainment didn't start the new year off on a good foot either, reporting an income loss of $7.3 million, compared with a profit of nearly $3.5 million in the same period in 2007.

Revenues saw an uptick of 7 percent to $195.2 million, compared with $182.4 million a year earlier.

Gaylord attributed some of the income losses to a $12 million impairment charge it had to pay after backing out of a deal to buy the Westin La Cantera Resort in San Antonio. Colin V. Reed, the company's CEO, said of the canceled acquisition: "In the current capital markets and economic environment, it is not in the best interest of our shareholders to focus our resources and capital (on this) project at this time."