Boyd sees minimal impact from slowdown

Thursday, Oct. 4, 2001 | 9:05 a.m.

Boyd Gaming Corp. of Las Vegas said Tuesday it took an estimated $2.4 million hit in the third quarter from the slowdown in tourism caused by the terrorist attacks of Sept. 11.

The estimated reduction in cash flow is less than 5 percent of the cash flow reported by Boyd in the quarter ending Sept. 30, 2000. Boyd will report its earnings for the third quarter of 2001 on Oct. 15.

Boyd said its Nevada properties were hit hardest by the slowdown. At the Stardust on the Strip, gaming revenues plunged 24 percent over the last 20 days of September and occupancy averaged 82 percent, though business volumes have been "rebounding steadily." Sam's Town on the Boulder Strip saw gaming revenues fall 9 percent during the 20-day period.

But gaming revenues at Boyd's three downtown Las Vegas casinos was actually up 2 percent over the last 20 days of September, and occupancy averaged 92 percent. The hotels rely heavily on charter flights from Hawaii, and these flights have remained nearly full through September, Boyd said. Boyd's two Henderson casinos saw essentially no change in gaming revenues from last year's levels.

In all, cash flow from Las Vegas was reduced by about $2 million over the last 20 days of September, Boyd said.

Boyd casinos in Indiana and Illinois were impacted somewhat by state orders to close down the casinos Sept. 11, but the impact was not nearly as significant as the Las Vegas slowdown. In the Midwest -- the source of two-thirds of Boyd's cash flow -- gaming revenues were unchanged at Boyd's casinos in Indiana and Mississippi, down 4 percent in Illinois, and up 4 percent in Louisiana.

The closure of the Indiana and Illinois casinos likely reduced cash flow by about $400,000 for the quarter, Boyd said.