Chips Are Down, Par-A-Dice Casino Announces Layoffs

Croupier collects chips using stick in casino.
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Par-A-Dice Casino in East Peoria, Illinois has announced it is eliminating anywhere from 15 to 20 jobs as revenue continues to decline. Others have been offered jobs within the company. The axed positions making up less than three percent of the casino’s workforce.

The layoffs come from throughout the organization and include both hourly and salary positions. The number of layoffs could increase depending on whether or not those offered other positions in the company decline.

According to the Greater Peoria Economic Development Council, Par-A-Dice employs 800 people. A spokesperson from the company disputes that number but did not have an up-to-date figure.

The company declined to say what caused the decline in revenue, but did say that the company had to bring expenses more in line with revenue.

Par-A-Dice casino is owned and operated by Boyd Gaming Corporation (NYSE:BYD). Boyd owns and operates 24 gaming properties in seven states: Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, and Mississippi.

Par-A-Dice Casino, which is located 165 miles southwest of Chicago, has more than 930 slots and 30 table games. The casino is also home to a 202-room hotel. But despite being voted one of the Midwest’s best casinos and hotels, Pad-A-Dice continues to struggle with revenue.

Boyd Gaming as a whole, on the other hand, is doing fine. In the first quarter, which ended March 31, 2017, revenue increased 9.6% year-over-year to $605.3 million. In the Midwest and South region, of which Par-A-Dice is part of, net revenue was down 3.1% at $324.8 million.

Net income for the period was up 6.9% at $35.5 million, or $0.31 per share. Adjusted earnings before interest, taxes, depreciation, and amortization slipped 1.8% to $94.1 million. Boyd ended the quarter with $167.0 million in cash and a total debt of $3.26 billion.

The company also announced that its board has authorized the reinstatement of the company’s cash dividend, with an initial quarterly payment of $0.05 per share. The board also reaffirmed the company’s existing share repurchase program, which has $92.0 million remaining.

Trading near $25.90, Boyd’s share price has advanced 37% over the last 12 months and is up 27% year-to-date.

Sources:

Layoffs announced at Par-A-Dice Hotel Casino,” centralillinoisproud.com, July 18, 2017.

About Boyd Gaming,” Boyd Gaming Corporation, last accessed July 19, 2017.

Play,” Par-A-Dice Hotel Casino, last accessed July 19, 2017.

Boyd Gaming Reports First-Quarter 2017 Results; Company Reinstates Dividend, Reaffirms Share Repurchase Program,” Boyd Gaming Corporation, May 2, 2017.

Categories: Job Cuts, News

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