Press Release: Boyd Gaming Corporation
October 3, 2001
LAS VEGAS, NV -- Commenting on the effects on its business of the terrorist attacks on September 11, Boyd Gaming
Corporation (NYSE: BYD) yesterday reported certain operating results for the last 20 days of September 2001.
The Company's Central Region, comprised of Blue Chip, Par-A-Dice, Treasure Chest and Sam's Town Tunica, and which
accounted for 63% of EBITDA for all of the Company's properties for the 12 months ended June 30, 2001, operated
in line with prior-year levels for the period from September 11 to September 30, 2001.
For the 20-day period compared to the prior year:
-- Blue Chip's gaming revenue and admissions were essentially unchanged.
Blue Chip was closed by Indiana gaming authorities for much of
September 11.
-- Par-A-Dice's gaming revenue was down 4% and admissions were up 2%.
Par-A-Dice was closed by Illinois Gaming authorities for much of
September 11.
-- Treasure Chest's gaming revenue was up 4% and admissions were down 4%.
-- Sam's Town Tunica's gaming revenue was unchanged and its hotel
occupancy was 94%.
In the last 20 days of September, the Company's business was more affected in Las Vegas than the Central Region,
but the Company believes not to the extent reported for Las Vegas in general.
-- The Company's Downtown properties, which accounted for over half of
the Company's Nevada EBITDA for the 12 months ended June 30, 2001,
reported that for the last 20 days of September, gaming revenue was up
2% versus the prior year, and hotel occupancy was 92%. The Downtown
properties derive a substantial portion of their room occupancy and
gaming revenue from visitors from Hawaii, and a substantial portion of
those visitors arrive on charter flights operated by the Company.
Occupancy on the charter flights from Honolulu to Las Vegas, which is
generally at or near 100%, was in the mid-90% range for the last
20 days of September, and bookings for October are at similar levels.
-- The Eldorado and Jokers Wild, the Company's two neighborhood casinos
in Henderson, reported essentially unchanged gaming revenue for the
20-day period versus the prior year.
-- The Stardust, the Company's only property on the Las Vegas Strip,
reported hotel occupancy of 82% for the last 20 days of September.
Gaming revenue in that period was down 24% from prior-year levels,
with business volumes rebounding steadily in the successive weeks in
the 20-day period. The property has reduced staffing levels and
curtailed or closed certain operations in connection with reduced
business levels.
-- Sam's Town Las Vegas, whose business is split between Las Vegas locals
and visitors, reported gaming revenue declined 9% in the 20-day period
versus last year, and hotel occupancy was 78% for the 20 days.
Similar to the Stardust, the property has reduced its operating
expenses in response to the decline in business levels.
The Company estimates that its Central Region properties produced EBITDA at approximately the same level that would
have been achieved had they operated under normal circumstances from September 11 to September 30, but for the
closure of Blue Chip and Par-A-Dice on September 11, which may have impacted EBITDA by approximately $400,000.
The Company further estimates that reduced business levels in Nevada for the last 20 days in September negatively
impacted EBITDA from normal levels by approximately $2,000,000.
The Company expects to report third quarter results on October 15 and will not provide guidance for any future
periods due to the uncertainty of consumer behavior and world events.
The Company further reported that as of September 30, it had total debt of $1.114 billion and $236 million available
under its bank credit facility. The Company's near-term significant commitments are for Delta Downs and The Borgata
in Atlantic City:
-- Upon receipt of a license to operate slot machines at the racetrack,
Delta Downs requires the repayment of a seller note of $65 million.
In addition, the Company has approximately $25 million left to spend
for the completion and furnishing of the facility. These expenditures
are expected to be made in the fourth quarter of 2001.
-- The Company, together with its partner MGM MIRAGE, is periodically
funding the development of The Borgata in Atlantic City. The Company
has $61 million remaining to invest before bank financing funds
further development of the project. The Company expects to invest
these funds through the first quarter of 2002.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include
statements regarding the Company's expectations, hopes or intentions regarding the future, including but not limited
to statements regarding the Company's anticipated EBITDA, operations and business levels following the events of
September 11, 2001, anticipated occupancy levels and reduced operations, as well as the anticipated opening of
Delta Downs and development of The Borgata. Forward-looking statements involve certain risks and uncertainties,
and actual results may differ materially from those discussed in any such statement. Factors that could cause actual
results to differ materially from such forward-looking statements include the uncertainties relating to tourism
and airline travel in the wake of recent events, the impact of any additional terrorist or similar activity, increased
security restrictions or the public's general reluctance to travel. In addition, the Company could face increases
in costs for operations and delays in deliveries. All forward-looking statements in this document are made of the
date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation
to update any forward-looking statement. Additional factors that could cause actual results to differ are discussed
under the heading ``Risk Factors'' and in other sections of the Company's Form 10-K for the fiscal year ended December
31, 2000 on file with the Securities and Exchange Commission, and in its other periodic reports filed from time
to time with the Commission.
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of
12 gaming properties located in Nevada, Mississippi, Illinois, Indiana and Louisiana. Boyd Gaming is also developing
``The Borgata'' (AOL keyword: borgata or www.theborgata.com ), a $1 billion entertainment destination resort in
Atlantic City, through a joint venture with MGM MIRAGE.
Boyd Gaming press releases are available at www.prnewswire.com . Additional
news and information on Boyd Gaming can be found at www.boydgaming.com
.
SOURCE: Boyd Gaming Corporation