Boyd Gaming Reports Record Results

LAS VEGAS – (PRESS RELEASE) -- Boyd Gaming Corporation (NYSE: BYD) today reported its financial results for the fourth quarter and full year 2005. The Company reported record adjusted earnings(1) of $.76 per diluted share in the fourth quarter, an increase of 49% over the $.51 per diluted share reported in the fourth quarter last year. The large increase in earnings resulted from widespread revenue and EBITDA(1) gains at all of the Company's operating units led by a significant earnings increase at Treasure Chest, which reopened to brisk business on October 10 after being closed due to Hurricane Katrina. In addition to Treasure Chest operating for only 83 days in the fourth quarter, Delta Downs operated for only 59 days in the quarter due to its closure from Hurricane Rita. In addition, South Coast opened on December 22 and reported results for nine full days in the quarter.

Adjustments to net income and earnings per share for the quarter appear in a table later in this release. There were three adjustments of particular note in the fourth quarter; first, a $56 million pre-tax impairment loss at the Stardust related to the decision to cease operations around the end of 2006 and demolish the facility to make way for the Company's announced development of Echelon Place on the site; second, $11.0 million in preopening expenses principally related to the opening of South Coast in late December; and third, a one-time net federal income tax credit in the amount of $1.5 million relating to wage continuation payments to workers displaced by the Gulf Coast hurricanes.

Fourth Quarter Results

The Company reported record EBITDA of $182 million in the fourth quarter, an increase of 22% over the $149 million reported in the fourth quarter 2004. All six of the Company's operating units reported year-over-year increases in quarterly revenue and EBITDA. Revenues for the fourth quarter were $565 million, an increase of 4.8% over the $540 million reported in the fourth quarter 2004. Net income for the fourth quarter was $22.9 million, or $0.25 per share, versus $46.9 million, or $.53 per share, reported in the fourth quarter 2004.

Bill Boyd, Chairman and Chief Executive Officer of Boyd Gaming, commented, "I am very pleased that we were once again able to demonstrate strong financial performance in the fourth quarter, with strong performances evident throughout the Company. Our Downtown Las Vegas unit set a new EBITDA record by a wide margin; our Las Vegas locals units each had its second best EBITDA quarter ever, exceeded only by the seasonally stronger first quarter 2005; and Borgata reported its highest non-summer quarterly EBITDA ever. It is interesting to note that Borgata's reported gaming win for the full year 2005 was $706 million, ranking it among the highest grossing casinos anywhere in the country. With strong, diverse operations and an excellent growth pipeline highlighted by our recently announced development of Echelon Place on the Las Vegas Strip, I remain very optimistic about our future."

In footnote (1), you will find a discussion of how and why the Company uses adjusted earnings, adjusted earnings per share, EBITDA (non-GAAP measures of earnings as defined in footnote (1)) and EBITDA margin, performance measurements widely used in the gaming industry. As used in this release, EBITDA for a particular operating segment (adjusted EBITDA) is before corporate expense. Further in this release you will also find tables that reconcile non-GAAP measurements to GAAP financial information.

Full Year Results

Revenues for the full year 2005 were $2.22 billion, an increase of 28% over the $1.73 billion reported in 2004. The increase was primarily attributable to the addition of Coast Casinos (acquired July 2004) and Sam's Town Shreveport (acquired May 2004). EBITDA for 2005 was $668 million versus $449 million reported in 2004, an increase of 49%. While the additions of Coast and Shreveport played an important role in that increase, EBITDA excluding these properties still increased 18.6% for the full year 2005 versus 2004, with substantial increases at many of the Company's properties.

Adjusted earnings for 2005 were $2.49 per share versus $1.48 per share for 2004, an increase of 68%. Net income for 2005 was $145 million, or $1.60 per share, versus $111 million, or $1.42 per share, in 2004. Adjustments to net income and earnings per share for the full year appear in a table later in this release.

Borgata

The Company also reported fourth quarter and full year results for Borgata Hotel Casino and Spa, the Company's joint venture property in Atlantic City. As an unconsolidated joint venture, Borgata's results appear in only two lines on the Company's consolidated statements of operations; therefore, more detailed financial information is presented in tables later in this release.

For the fourth quarter, Borgata reported gaming revenues of $175 million, an increase of 6.5% over the fourth quarter 2004, and non-gaming revenues of $61.3 million, an increase of 8.0% over the fourth quarter last year. Net revenues for the quarter were $194 million, a gain of 8.1% over the fourth quarter of 2004. Notably, Borgata grew its gross revenues by $15.2 million in the fourth quarter versus the fourth quarter 2004, while promotional allowances increased by only $0.7 million. Borgata reported EBITDA for the fourth quarter of $62.6 million, a 4.2% increase over the $60.1 million reported in the fourth quarter of 2004. Borgata's EBITDA margin for the fourth quarter was 32.3% versus 33.5% reported in the fourth quarter of 2004. Fourth quarter EBITDA was Borgata's third highest in its history, just shy of the EBITDA reported in the seasonally strong third quarter 2004 and below the record EBITDA reported in the seasonally strong third quarter 2005. Hotel occupancy for the quarter was 91%, and the average daily room rate increased 5.5% over the fourth quarter of 2004 to $136.

Borgata's casino win for the fourth quarter was the highest in the Atlantic City market and $19.2 million more than the much larger Bally's, which had the second highest casino win. Borgata's market-leading table game win for the quarter was up 13.5% over the same quarter last year, and the property's slot win for the quarter gained slightly. In win per unit, Borgata once again led the market in both table games and slots. Borgata's tables won $5,570 per day (more than double the market average) for the quarter, and its slots won $319 per day (38% above market average) for the quarter.

For the full year 2005, Borgata reported net revenues of $764 million, a gain of 12.9% over the $676 million reported in 2004. While gross revenues increased by $92 million in the year, promotional allowances increased by less than $5 million. EBITDA for the year was $252 million versus $216 million in 2004, an increase of 16.8%, and EBITDA margin for the year was 33.0% versus 31.9% in 2004. Borgata's win per unit in both tables and slots led the market by a wide margin in 2005, with its tables winning $5,067 per day and its slots winning $336 per day.

Borgata's $200 million public space expansion remains on schedule for a second quarter 2006 opening. Construction has begun on Borgata's new 800-room hotel tower, to be named The Water Club at Borgata. The new tower, which will also feature a state-of-the-art spa in the sky and four swimming pools, is expected to open in the fourth quarter 2007.

Wholly-owned Properties

The Company reports results from its wholly-owned properties in five segments. For a listing of the specific properties in each unit, see the introduction to the tables appearing after the text of this release.

-Boulder Strip

The Las Vegas locals-oriented Boulder Strip properties, principally Sam's Town, reported strong operating results in the fourth quarter, benefiting from a Las Vegas economy that continues to be a leader in the nation in both population and job growth. For the quarter, revenues were a near record $51.7 million, up 5.6% due principally to strong revenue gains in slots; EBITDA was $15.6 million, up 10.3%; and EBITDA margin was up 1.3 percentage points, all as compared to the fourth quarter 2004.

For the full year, Boulder Strip posted record revenues of $196 million, 6.8% above 2004 revenues. EBITDA for the year was a record $59.1 million, up 19.6% from the $49.4 million reported in 2004. EBITDA margin of 30.2% in 2005 was 3.2 percentage points above that measure in 2004.

-Coast Casinos

The Company's Coast Casinos unit reported record revenues of $191 million in the quarter, an increase of 6.8% over the $179 million reported in the same quarter in 2004. The unit benefited in the quarter from both a continuing strong Las Vegas economy and from the addition of South Coast for nine days in late December, offset by an unusually low hold percentage on record sports book write. EBITDA for the fourth quarter was $64.2 million, an increase of 6.1% over the $60.5 million reported in the fourth quarter 2004. For the full year, Coast reported record revenues of $741 million, an increase of 10.8% over 2004 results (which reflect both pre- and post- July 1, 2004 merger results). EBITDA for Coast in 2005 was a record $254 million, an increase of 24% over the $205 million reported in 2004.

-Stardust

For the fourth quarter, Stardust reported revenues of $40.9 million, versus $38.8 million reported in the fourth quarter 2004, for an increase of 5.5%. EBITDA for the quarter was $6.9 million, a 43% increase over the $4.8 million reported in the fourth quarter 2004, as essentially all of the revenue gain fell to the bottom line. For the full year, Stardust revenue rose 4.6% from 2004 to $159 million, and EBITDA gained 37% to $24.7 million from $18.0 million in 2004. Stardust's 2005 EBITDA was the property's highest EBITDA in eight years.

-Downtown Properties

The Downtown Properties reported record results in the fourth quarter and for the full year. In the fourth quarter, revenues were $69.3 million, an increase of 8.8% over the fourth quarter 2004. Fourth quarter EBITDA of $17.2 million, a 40% increase over the $12.3 million reported in the fourth quarter 2004, broke the old record by $2.9 million, or 20%. All three casino hotels, benefiting from a strong economy in their Hawaiian feeder market, increased revenues, EBITDA and EBITDA margin in the fourth quarter as compared to the fourth quarter 2004.

For the full year, the Downtown Properties reported record revenues of $261 million, an increase of 9.2% over the $239 million reported in 2004. EBITDA for 2005 was a record $52.3 million, an increase of 35% over the $38.7 million reported in 2004. All three properties reported large EBITDA and EBITDA margin gains for the year.

-Central Region

The Central Region reported fourth quarter revenues of $212 million, a 1.5% increase from the $209 million reported in the fourth quarter 2004. Treasure Chest, in its 83 days of operations in the quarter, reported a large increase in revenues due to the dearth of competing entertainment options available in the New Orleans area and a large increase in win per admission. This increase was largely offset by Delta Downs, which reported reduced revenues due to being closed for 33 days during the quarter and conducting limited operations when open for the remaining 59 days of the quarter. The other four Central Region properties reported revenues in the quarter generally unchanged from the fourth quarter 2004. Central Region EBITDA in the fourth quarter was $66.9 million, an increase of 50% over the $44.7 million reported in the fourth quarter 2004. Essentially all of the increase came from the unit's three Louisiana properties. Treasure Chest, combining its revenue surge with lower expenses due to somewhat limited operations, accounted for most of the increase. Delta Downs, despite lower revenues, reported a 31% increase in EBITDA in the quarter versus the prior year due to lower expenses. And Sam's Town Shreveport, despite slightly lower year-over-year revenues in the quarter, reported a 31% EBITDA increase principally due to reduced payroll expenses.

For the full year, the Central Region reported revenues of $866 million, a 5.9% increase over 2004. The increase was principally due to the inclusion of Sam's Town Shreveport for a full year in 2005. Central Region full year EBITDA was $225 million, an increase of 17.6% over 2004. Excluding Sam's Town Shreveport, same-store EBITDA was up 13.7% for 2005 over 2004. Most of the increase was due to a large EBITDA increase at Treasure Chest, and the balance mainly resulted from an EBITDA increase at Delta Downs, due principally to the completion of its expansion project in early 2005.