Boyd Gaming Reports First Quarter Results - Exceeds Wall Street Expectations -

- Updates Progress of Atlantic City Development -



Apr 18, 2001, 01:00 ET from Boyd Gaming Corporation

    LAS VEGAS, April 18 /PRNewswire/ -- Boyd Gaming Corporation (NYSE:   BYD)
 today reported earnings of $.10 per share in the first quarter ended March 31,
 2001, compared with earnings of $.22 per share, before the one-time Silver
 Star termination payment, reported in the comparable quarter last year.  The
 $.22 per share reported last year included the final month of the Silver Star
 management fee, which accounted for $.04 per share of that total.  Per share
 amounts are reported on a diluted basis.
     The Company reported year-over-year increases in earnings before interest,
 taxes, depreciation, amortization and pre-opening expenses (EBITDA) at five of
 its eight operating units: Stardust, Downtown Las Vegas, Eldorado/Jokers Wild,
 Par-A-Dice and Treasure Chest.  Blue Chip reported solid results for the
 quarter, although EBITDA was somewhat below last year's stellar first quarter
 performance.  Sam's Town Las Vegas and Sam's Town Tunica, while reporting
 unfavorable year-over-year comparisons, both made strong recoveries from the
 immediately preceding quarter.  In the first quarter, both properties were in
 the process of ramping up their operations following the disruptive effects of
 their recently completed expansion and renovation projects and were both
 promoting aggressively to reintroduce their finished products to their
 respective marketplaces.
     On a consolidated basis, revenues for the quarter were $280 million versus
 $276 million last year before the one-time Silver Star termination payment.
 EBITDA from the Company's property operations in the quarter was
 $61.8 million, and EBITDA for the Company after corporate expense was
 $55.2 million.  Last year's property EBITDA was $71.1 million, and EBITDA
 after corporate expense was $63.7 million.  Excluding the Silver Star
 management fee income to achieve same-store comparisons, last year's revenue
 was $273 million, property EBITDA was $67.2 million, and EBITDA after
 corporate expense was $59.9 million.
     Capital spending for the first quarter consisted of the final payments on
 the two Sam's Town projects and normal maintenance capital spending.  The
 Company applied free cash flow to the reduction of its debt, lowering debt by
 $13 million in the first quarter to end the quarter at $1.006 billion.
     The eight operating units reported first quarter results as follows:
 
      -- The Stardust reported revenue of $38.9 million in the quarter versus
         $38.5 million last year, and EBITDA of $5.0 million in the quarter
         compared to $4.8 million last year.  It was the property's highest
         quarterly EBITDA in two years.
 
      -- Sam's Town Las Vegas recorded revenue of $38.0 million in the quarter
         versus $37.7 million in the prior year.  First quarter EBITDA was
         $5.2 million versus $8.7 million last year.  The first quarter last
         year was a strong quarter for the property.  By contrast, EBITDA in
         the fourth quarter 2000 was $1.7 million.
 
      -- The Eldorado and Jokers Wild reported combined revenues of
         $9.1 million and combined EBITDA of $1.9 million in the first quarter,
         both the same as last year.
 
      -- The Downtown Las Vegas Properties, including the results of the
         Company's Hawaiian travel agency, recorded revenues of $56.3 million
         in the quarter versus $54.6 million reported in the prior year.
         EBITDA was $10.2 million in the quarter versus $10.1 million last
         year.  This unit has achieved EBITDA in excess of $10 million in five
         of the last six quarters.
 
      -- Sam's Town Tunica posted first quarter revenue of $27.7 million, 9.7%
         above the $25.2 million reported last year.  EBITDA was $1.0 million
         in the quarter compared to $3.0 million last year.  Marketing and
         promotion expenses accounted for substantially all of the decline in
         the operating margins.
 
      -- Par-A-Dice reported revenue of $35.0 million in the quarter versus
         $33.2 million last year, an increase of 5.2%.  EBITDA in the quarter
         was $13.1 million, the highest quarterly EBITDA ever reported for the
         property.  Last year the property's EBITDA was $12.2 million.
 
      -- Treasure Chest recorded revenue in the quarter of $29.4 million, up
         7.0% from the $27.5 million reported last year.  EBITDA in the quarter
         was $6.1 million versus $5.7 million last year.  First quarter EBITDA
         was the highest reported since the opening of the large land-based
         casino in downtown New Orleans in the fourth quarter 1999.
 
      -- Blue Chip reported revenue of $46.2 million versus $46.9 million last
         year and EBITDA of $19.4 million versus $20.9 million last year.  Last
         year's first quarter was unusually strong with revenue and EBITDA up
         26% and 27% respectively over the first quarter in 1999.
 
     William S. Boyd, Chairman and Chief Executive Officer of Boyd Gaming,
 commenting on operating trends, said, "Excluding the two Sam's Towns, our
 other six units generated first quarter EBITDA of $55.6 million, essentially
 the same as last year's first quarter.  While successive quarterly performance
 in 2000 declined from that level throughout the year, our goal for 2001 is a
 much steadier result from those six units on a combined basis.  Our two Sam's
 Towns reported $6.2 million combined EBITDA in the first quarter, and we are
 working very hard to improve that number in future quarters.  If we are
 successful in these areas, we should be able to achieve quarterly earnings per
 share above those reported in the first quarter."
     The Company provided a progress report on the construction of The Borgata,
 its Atlantic City resort co-owned with MGM MIRAGE.  Most of the nearly 3,700
 support pilings have been driven and foundation work is nearing completion on
 the high-rise portion of the project.  Construction of the lower floors of the
 high-rise and the low-rise steel structure should be underway by the end of
 the second quarter.  The project remains on schedule for an expected summer
 2003 opening.  The Company and its construction manager continue to confirm
 and lock-in construction and other costs through a rigorous and tightly
 managed procurement process.  With a substantial project contingency on hand,
 the Company remains confident that The Borgata will be developed within its
 announced budget.
     The following table reports March quarterly net revenues and EBITDA for
 the Company's properties.  Downtown properties include the California Hotel
 and Casino, the Fremont Hotel and Casino, and Main Street Station.  The Silver
 Star management agreement was terminated at the end of January 2000.
 
 
      ($ in thousands)                          Three Months Ended
                                                    March 31,
                                              2001              2000
 
      Net Revenues
        Stardust                             $38,868          $38,496
        Sam's Town Las Vegas                  37,965           37,656
        Eldorado & Jokers Wild                 9,102            9,140
        Downtown Properties (a)               56,312           54,565
        Sam's Town Tunica                     27,667           25,217
        Par-A-Dice                            34,954           33,212
        Treasure Chest                        29,397           27,482
        Blue Chip                             46,156           46,869
          Total Owned Properties             280,421          272,637
          Management Fee                          --            3,815
          Total Properties                  $280,421         $276,452 (b)
 
      EBITDA
        Stardust                              $4,955           $4,757
        Sam's Town Las Vegas                   5,194            8,727 (c)
        Eldorado & Jokers Wild                 1,923            1,920
        Downtown Properties                   10,153           10,087
        Sam's Town Tunica                      1,001            3,003
        Par-A-Dice                            13,064           12,182
        Treasure Chest                         6,120            5,705
        Blue Chip                             19,394           20,867 (c)
          Total Owned Properties              61,804           67,248
          Management Fee                          --            3,815
          Total Properties                   $61,804          $71,063 (b)
 
 
     (a) Includes revenues related to Vacations Hawaii, a Honolulu travel
         agency, of $10,452 and $9,651, respectively, for the three months
         ended March 31, 2001 and 2000.
 
     (b) Before termination fee.
 
     (c) Before preopening expenses.
 
 
     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, goals or intentions regarding
 the future, including but not limited to statements regarding the Company's
 strategy, competition, expenses, development plans (including anticipated
 cost, timing and eventual acceptance of new facilities, such as The Borgata,
 by the market), revenue, operations, recoveries and ramping up of operations
 at Sam's Town Las Vegas and Sam's Town Tunica, expectations of results for
 2001 and quarterly earnings per share.  Forward-looking statements involve
 certain risks and uncertainties, and actual results may differ materially from
 those discussed in any such statement.  Among the factors that could cause
 actual results to differ materially are the following:  competition,
 uncertainties relating to new developments and expansion, the need for
 additional financing, the availability and price of energy, regulation, and
 economic conditions.  In particular, there can be no assurance that The
 Borgata will be opened on time or within budget or that the Company will
 achieve quarterly earnings per share above those reported in the first
 quarter.  The Borgata is subject to the many risks inherent in the development
 and operation of a new business enterprise, including potential unanticipated
 design, construction, regulatory, environmental and operating problems,
 increased project costs, timing delays, lack of adequate financing and the
 significant risks commonly associated with implementing a marketing strategy
 in a new market.  Additional factors that could cause actual results to differ
 are discussed under the heading "Investment Considerations" 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.  All forward-
 looking statements in this document are made as 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.
 
     Boyd Gaming will host a Webcast at 4:30 p.m. EDT on Wednesday,
 April 18, 2001 to review the first quarter results.  The Webcast can be
 accessed through the Company's website at www.boydgaming.com and at
 www.themeetingson.com.  The reservation number is 18517170.
 
     Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE:   BYD) is a
 leading diversified owner and operator of 11 casino entertainment 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 by facsimile through Company News
 On-Call (800) 758-5804, extension 104550, or at www.prnewswire.com.
 Additional news and information on Boyd Gaming can be found at
 www.boydgaming.com.
 
 
     BOYD GAMING CORPORATION AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF OPERATIONS            Three Months Ended
                                                          March 31,
     (In thousands, except per share data)           2001           2000
 
     Revenues
       Casino                                     $231,198        $225,628
       Food and beverage                            41,211          40,910
       Room                                         19,454          18,395
       Other                                        20,045          17,208
       Management fee                                   --           3,815
       Termination fee, net                             --          70,988
     Gross revenues                                311,908         376,944
     Less promotional allowances                    31,487          29,504
         Net revenues                              280,421         347,440
 
     Costs and expenses
       Casino                                      108,039         104,548
       Food and beverage                            27,682          25,275
       Room                                          5,479           5,706
       Other                                        20,052          16,515
       Selling, general and administrative          44,083          41,639
       Maintenance and utilities                    13,282          11,706
       Depreciation                                 21,717          19,102
       Amortization of intangible license
        rights and acquisition costs                 2,450           2,450
       Corporate expense                             6,621           7,338
       Preopening expense                              361             382
         Total                                     249,766         234,661
 
     Operating income                               30,655         112,779
 
     Other income (expense)
       Interest income                                  --             134
       Interest expense, net of amounts
        capitalized                                (20,475)        (20,118)
         Total                                     (20,475)        (19,984)
 
     Income before provision for income taxes       10,180          92,795
 
     Provision for income taxes                      4,123          35,726
 
     Net income                                     $6,057         $57,069
 
 
     Basic and Diluted Net income
      per common share                               $0.10           $0.92
 
     Average Basic Shares Outstanding               62,235          62,228
     Average Diluted Shares Outstanding             62,235          62,305
 
 

SOURCE Boyd Gaming Corporation
    LAS VEGAS, April 18 /PRNewswire/ -- Boyd Gaming Corporation (NYSE:   BYD)
 today reported earnings of $.10 per share in the first quarter ended March 31,
 2001, compared with earnings of $.22 per share, before the one-time Silver
 Star termination payment, reported in the comparable quarter last year.  The
 $.22 per share reported last year included the final month of the Silver Star
 management fee, which accounted for $.04 per share of that total.  Per share
 amounts are reported on a diluted basis.
     The Company reported year-over-year increases in earnings before interest,
 taxes, depreciation, amortization and pre-opening expenses (EBITDA) at five of
 its eight operating units: Stardust, Downtown Las Vegas, Eldorado/Jokers Wild,
 Par-A-Dice and Treasure Chest.  Blue Chip reported solid results for the
 quarter, although EBITDA was somewhat below last year's stellar first quarter
 performance.  Sam's Town Las Vegas and Sam's Town Tunica, while reporting
 unfavorable year-over-year comparisons, both made strong recoveries from the
 immediately preceding quarter.  In the first quarter, both properties were in
 the process of ramping up their operations following the disruptive effects of
 their recently completed expansion and renovation projects and were both
 promoting aggressively to reintroduce their finished products to their
 respective marketplaces.
     On a consolidated basis, revenues for the quarter were $280 million versus
 $276 million last year before the one-time Silver Star termination payment.
 EBITDA from the Company's property operations in the quarter was
 $61.8 million, and EBITDA for the Company after corporate expense was
 $55.2 million.  Last year's property EBITDA was $71.1 million, and EBITDA
 after corporate expense was $63.7 million.  Excluding the Silver Star
 management fee income to achieve same-store comparisons, last year's revenue
 was $273 million, property EBITDA was $67.2 million, and EBITDA after
 corporate expense was $59.9 million.
     Capital spending for the first quarter consisted of the final payments on
 the two Sam's Town projects and normal maintenance capital spending.  The
 Company applied free cash flow to the reduction of its debt, lowering debt by
 $13 million in the first quarter to end the quarter at $1.006 billion.
     The eight operating units reported first quarter results as follows:
 
      -- The Stardust reported revenue of $38.9 million in the quarter versus
         $38.5 million last year, and EBITDA of $5.0 million in the quarter
         compared to $4.8 million last year.  It was the property's highest
         quarterly EBITDA in two years.
 
      -- Sam's Town Las Vegas recorded revenue of $38.0 million in the quarter
         versus $37.7 million in the prior year.  First quarter EBITDA was
         $5.2 million versus $8.7 million last year.  The first quarter last
         year was a strong quarter for the property.  By contrast, EBITDA in
         the fourth quarter 2000 was $1.7 million.
 
      -- The Eldorado and Jokers Wild reported combined revenues of
         $9.1 million and combined EBITDA of $1.9 million in the first quarter,
         both the same as last year.
 
      -- The Downtown Las Vegas Properties, including the results of the
         Company's Hawaiian travel agency, recorded revenues of $56.3 million
         in the quarter versus $54.6 million reported in the prior year.
         EBITDA was $10.2 million in the quarter versus $10.1 million last
         year.  This unit has achieved EBITDA in excess of $10 million in five
         of the last six quarters.
 
      -- Sam's Town Tunica posted first quarter revenue of $27.7 million, 9.7%
         above the $25.2 million reported last year.  EBITDA was $1.0 million
         in the quarter compared to $3.0 million last year.  Marketing and
         promotion expenses accounted for substantially all of the decline in
         the operating margins.
 
      -- Par-A-Dice reported revenue of $35.0 million in the quarter versus
         $33.2 million last year, an increase of 5.2%.  EBITDA in the quarter
         was $13.1 million, the highest quarterly EBITDA ever reported for the
         property.  Last year the property's EBITDA was $12.2 million.
 
      -- Treasure Chest recorded revenue in the quarter of $29.4 million, up
         7.0% from the $27.5 million reported last year.  EBITDA in the quarter
         was $6.1 million versus $5.7 million last year.  First quarter EBITDA
         was the highest reported since the opening of the large land-based
         casino in downtown New Orleans in the fourth quarter 1999.
 
      -- Blue Chip reported revenue of $46.2 million versus $46.9 million last
         year and EBITDA of $19.4 million versus $20.9 million last year.  Last
         year's first quarter was unusually strong with revenue and EBITDA up
         26% and 27% respectively over the first quarter in 1999.
 
     William S. Boyd, Chairman and Chief Executive Officer of Boyd Gaming,
 commenting on operating trends, said, "Excluding the two Sam's Towns, our
 other six units generated first quarter EBITDA of $55.6 million, essentially
 the same as last year's first quarter.  While successive quarterly performance
 in 2000 declined from that level throughout the year, our goal for 2001 is a
 much steadier result from those six units on a combined basis.  Our two Sam's
 Towns reported $6.2 million combined EBITDA in the first quarter, and we are
 working very hard to improve that number in future quarters.  If we are
 successful in these areas, we should be able to achieve quarterly earnings per
 share above those reported in the first quarter."
     The Company provided a progress report on the construction of The Borgata,
 its Atlantic City resort co-owned with MGM MIRAGE.  Most of the nearly 3,700
 support pilings have been driven and foundation work is nearing completion on
 the high-rise portion of the project.  Construction of the lower floors of the
 high-rise and the low-rise steel structure should be underway by the end of
 the second quarter.  The project remains on schedule for an expected summer
 2003 opening.  The Company and its construction manager continue to confirm
 and lock-in construction and other costs through a rigorous and tightly
 managed procurement process.  With a substantial project contingency on hand,
 the Company remains confident that The Borgata will be developed within its
 announced budget.
     The following table reports March quarterly net revenues and EBITDA for
 the Company's properties.  Downtown properties include the California Hotel
 and Casino, the Fremont Hotel and Casino, and Main Street Station.  The Silver
 Star management agreement was terminated at the end of January 2000.
 
 
      ($ in thousands)                          Three Months Ended
                                                    March 31,
                                              2001              2000
 
      Net Revenues
        Stardust                             $38,868          $38,496
        Sam's Town Las Vegas                  37,965           37,656
        Eldorado & Jokers Wild                 9,102            9,140
        Downtown Properties (a)               56,312           54,565
        Sam's Town Tunica                     27,667           25,217
        Par-A-Dice                            34,954           33,212
        Treasure Chest                        29,397           27,482
        Blue Chip                             46,156           46,869
          Total Owned Properties             280,421          272,637
          Management Fee                          --            3,815
          Total Properties                  $280,421         $276,452 (b)
 
      EBITDA
        Stardust                              $4,955           $4,757
        Sam's Town Las Vegas                   5,194            8,727 (c)
        Eldorado & Jokers Wild                 1,923            1,920
        Downtown Properties                   10,153           10,087
        Sam's Town Tunica                      1,001            3,003
        Par-A-Dice                            13,064           12,182
        Treasure Chest                         6,120            5,705
        Blue Chip                             19,394           20,867 (c)
          Total Owned Properties              61,804           67,248
          Management Fee                          --            3,815
          Total Properties                   $61,804          $71,063 (b)
 
 
     (a) Includes revenues related to Vacations Hawaii, a Honolulu travel
         agency, of $10,452 and $9,651, respectively, for the three months
         ended March 31, 2001 and 2000.
 
     (b) Before termination fee.
 
     (c) Before preopening expenses.
 
 
     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, goals or intentions regarding
 the future, including but not limited to statements regarding the Company's
 strategy, competition, expenses, development plans (including anticipated
 cost, timing and eventual acceptance of new facilities, such as The Borgata,
 by the market), revenue, operations, recoveries and ramping up of operations
 at Sam's Town Las Vegas and Sam's Town Tunica, expectations of results for
 2001 and quarterly earnings per share.  Forward-looking statements involve
 certain risks and uncertainties, and actual results may differ materially from
 those discussed in any such statement.  Among the factors that could cause
 actual results to differ materially are the following:  competition,
 uncertainties relating to new developments and expansion, the need for
 additional financing, the availability and price of energy, regulation, and
 economic conditions.  In particular, there can be no assurance that The
 Borgata will be opened on time or within budget or that the Company will
 achieve quarterly earnings per share above those reported in the first
 quarter.  The Borgata is subject to the many risks inherent in the development
 and operation of a new business enterprise, including potential unanticipated
 design, construction, regulatory, environmental and operating problems,
 increased project costs, timing delays, lack of adequate financing and the
 significant risks commonly associated with implementing a marketing strategy
 in a new market.  Additional factors that could cause actual results to differ
 are discussed under the heading "Investment Considerations" 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.  All forward-
 looking statements in this document are made as 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.
 
     Boyd Gaming will host a Webcast at 4:30 p.m. EDT on Wednesday,
 April 18, 2001 to review the first quarter results.  The Webcast can be
 accessed through the Company's website at www.boydgaming.com and at
 www.themeetingson.com.  The reservation number is 18517170.
 
     Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE:   BYD) is a
 leading diversified owner and operator of 11 casino entertainment 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 by facsimile through Company News
 On-Call (800) 758-5804, extension 104550, or at www.prnewswire.com.
 Additional news and information on Boyd Gaming can be found at
 www.boydgaming.com.
 
 
     BOYD GAMING CORPORATION AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF OPERATIONS            Three Months Ended
                                                          March 31,
     (In thousands, except per share data)           2001           2000
 
     Revenues
       Casino                                     $231,198        $225,628
       Food and beverage                            41,211          40,910
       Room                                         19,454          18,395
       Other                                        20,045          17,208
       Management fee                                   --           3,815
       Termination fee, net                             --          70,988
     Gross revenues                                311,908         376,944
     Less promotional allowances                    31,487          29,504
         Net revenues                              280,421         347,440
 
     Costs and expenses
       Casino                                      108,039         104,548
       Food and beverage                            27,682          25,275
       Room                                          5,479           5,706
       Other                                        20,052          16,515
       Selling, general and administrative          44,083          41,639
       Maintenance and utilities                    13,282          11,706
       Depreciation                                 21,717          19,102
       Amortization of intangible license
        rights and acquisition costs                 2,450           2,450
       Corporate expense                             6,621           7,338
       Preopening expense                              361             382
         Total                                     249,766         234,661
 
     Operating income                               30,655         112,779
 
     Other income (expense)
       Interest income                                  --             134
       Interest expense, net of amounts
        capitalized                                (20,475)        (20,118)
         Total                                     (20,475)        (19,984)
 
     Income before provision for income taxes       10,180          92,795
 
     Provision for income taxes                      4,123          35,726
 
     Net income                                     $6,057         $57,069
 
 
     Basic and Diluted Net income
      per common share                               $0.10           $0.92
 
     Average Basic Shares Outstanding               62,235          62,228
     Average Diluted Shares Outstanding             62,235          62,305
 
 SOURCE  Boyd Gaming Corporation