Boyd Gaming Reports First Quarter Results
- Company Meets Analyst Consensus Estimates -
- Board Declares Quarterly Dividend -
PRNewswire-FirstCall
LAS VEGAS
(NYSE:BYD)

LAS VEGAS, April 29 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the first quarter ended March 31, 2008.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/20030219/BOYDLOGO)

  Recent Highlights
  -- First quarter 2008 net revenues for the Las Vegas Locals region decline
     5.6% and Adjusted EBITDA(1) decreases 10.6% compared to the first
     quarter 2007, as an increasingly difficult economic climate impacts
     consumer spending.
  -- Midwest and South records 13.1% decline in net revenues and 20.4%
     decline in Adjusted EBITDA for the first quarter 2008, chiefly due to
     Blue Chip, which continues to be materially impacted by an increased
     competitive environment and significant construction disruption.
  -- Downtown Las Vegas net revenues decline 4.6% and Adjusted EBITDA
     declines 26.7%, due to sharply higher fuel costs, as well as a
     reduction in consumer spending due to tougher economic conditions.
  -- Borgata's first quarter 2008 net revenues were essentially flat with
     prior year results and Adjusted EBITDA declined 8.4% primarily due to
     lower gaming revenues, partially offset by lower promotional expenses,
     and slightly higher operating expenses.
  -- Initial launch of nationwide players club program leads to 21% increase
     in new Las Vegas Local member sign-ups for the first quarter 2008
     versus the same period last year; the Midwest and South phase begins
     with successful players club launch at Blue Chip in April, with the
     remaining properties to follow over the course of the next two months.

  (1) See footnotes at the end of the release for additional information
      relative to non-GAAP financial measures.


  First Quarter Results

We reported a first quarter 2008 loss from continuing operations of $32.6 million, or $0.37 per share, compared to income from continuing operations of $35.1 million, or $0.40 per share, in the same period 2007. The loss from continuing operations for the 2008 period included an $84.0 million pre-tax impairment charge, principally related to the write-off of the entire Dania Jai-Alai intangible license right.

During the first quarter 2008, we completed our valuation of the acquisition of Dania Jai-Alai, which was purchased in March 2007 for approximately $80 million, plus an additional amount of contingent consideration. As a result, we assigned a fair value to the total assets acquired of approximately $130 million, the majority of which was assigned to the value of our intangible license right to operate slot machines at the property. However, following our recent decision to indefinitely postpone redevelopment plans for Dania Jai-Alai, we recorded an $84.0 million pre-tax impairment charge for the first quarter 2008. Our decision to postpone the development is based on numerous factors, including the introduction of expanded gaming at a nearby Native American casino, the potential for additional casino gaming venues in Florida, and the existing Broward County pari-mutuel casinos performing below our expectations for the market.

Including discontinued operations, we reported net income for the first quarter 2007 of $218 million, or $2.46 per share. The first quarter 2007 results include a $285 million pre-tax gain, classified as part of discontinued operations, recorded upon the disposition of Barbary Coast. There were no such discontinued operations reported in the first quarter 2008. Per share earnings discussed throughout this release are reported on a diluted basis.

Adjusted Earnings(1) from continuing operations for the first quarter 2008 were $29.6 million, or $0.34 per share, compared to $44.0 million, or $0.50 per share, for the same period in 2007. During the first quarter 2008, certain pre-tax adjustments that reduced income from continuing operations by $95.0 million ($62.2 million, net of tax, or $0.71 per share), were as follows:

  -- $90.3 million for write-downs and other charges, primarily consisting
     of an $84.0 million non-cash impairment charge related to Dania
     Jai-Alai; and
  -- $4.7 million for other items, primarily consisting of preopening
     expenses associated with our Echelon development.

By comparison, the first quarter 2007 included certain pre-tax adjustments that reduced income from continuing operations by $14.0 million ($8.9 million, net of tax, or $0.10 per share) due to:

  -- $9.0 million for write-downs and other charges, mainly consisting of
     closure costs at Stardust; and
  -- $5.0 million for other items, primarily consisting of preopening
     expenses associated with our Echelon development.

Net revenues were $471.1 million for the first quarter 2008, compared to $517.0 million for the same quarter in 2007, a decrease of 8.9%. Total Adjusted EBITDA was $127.7 million in the first quarter 2008, compared to $155.4 million for the same period 2007. These declines were chiefly due to an increasingly difficult economic climate impacting consumer spending, as well as the addition of a new competitor near our Blue Chip operation.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented, "During the quarter, consumers across the country faced an increasing number of hardships, including higher food prices, higher mortgage payments, unprecedented gas prices and the prospects of higher unemployment. As a result, like virtually every other consumer-oriented company, we experienced a challenging quarter, as consumers pulled back on discretionary spending. And, our management team responded aggressively to a difficult consumer climate by realigning expense levels to the changing business volumes. We remain confident in our ability to weather these current conditions, and to emerge in excellent position to capitalize on long-term growth opportunities across the country."

  (1) See footnotes at the end of the release for additional information
      relative to non-GAAP financial measures.


  Key Operations Review

In our Las Vegas Locals segment, first quarter 2008 net revenues were $206.5 million versus $218.7 million for the first quarter 2007. First quarter 2008 Adjusted EBITDA was $66.7 million, a 10.6% decrease from the $74.6 million in the same quarter 2007.

Our Downtown Las Vegas properties generated net revenues of $60.9 million and Adjusted EBITDA of $10.2 million for the first quarter 2008, versus $63.8 million and $13.9 million, respectively, for the first quarter 2007.

In our Midwest and South region, we recorded $203.7 million in net revenues for the first quarter 2008, compared to $234.5 million for the same period in 2007. Adjusted EBITDA for the current period was $45.6 million, versus $57.3 million in the first quarter 2007; the decline in net revenues and Adjusted EBITDA were principally due to Blue Chip.

In Atlantic City, Borgata's operating income for the first quarter 2008 was $37.1 million, versus $42.9 million for the first quarter 2007. Net income for Borgata was $27.8 million for the first quarter 2008, compared to $35.3 million in the same period last year, and Adjusted EBITDA was $55.5 million, compared to $60.6 million for the first quarter 2007. Net revenue for Borgata was $202.0 million for the first quarter 2008, essentially flat compared to the $203.7 million recorded in the same quarter in 2007.

  Development Update
  Development continues to progress on our key growth initiatives:
  -- In Atlantic City, The Water Club is in the final stages of construction
     and recently began taking reservations.  Readying for a June 2008
     opening, The Water Club is an 800-room boutique hotel directly
     connected to Borgata and will be the first of its kind in Atlantic
     City.  The $400 million expansion will include five swimming pools, a
     spa in the sky, additional meeting and retail space and a separate
     porte cochere and front desk.
  -- Our $130 million expansion of Blue Chip in Michigan City, Indiana
     remains on schedule for a December 2008 opening.  This development
     project will add a dramatic 22-story hotel tower, which we topped-off
     earlier this month.  The hotel will include 300 new upscale guest
     rooms, a spa and fitness center, additional meeting and event space,
     new dining and nightlife experiences, and a new porte cochere.
  -- Construction on our Echelon development continues to advance as
     foundation work is complete for our wholly-owned hotels, which include
     Hotel Echelon, The Enclave, and Shangri-La Las Vegas; we began erecting
     steel for the lowrise this week, which encompasses much of the common
     area for three of the five hotels.  Excavation for High Street (retail
     promenade) and The Meeting Center is complete and foundation work is
     well underway.  Echelon remains on-schedule and on-budget.

Keith Smith added, "Despite near-term consumer challenges in all businesses, we believe our long-term prospects remain as bright as ever. As our growth pipeline begins to come on line with the opening of The Water Club in June and Blue Chip's new hotel in December, we will be able to offer more upscale and encompassing entertainment experiences than ever before, boosting our competitive position in crucial markets. As the economy recovers, we will be well-positioned to capitalize on growth opportunities."

Boyd Gaming Branding Initiative

The second phase of our branding initiative is underway, as Blue Chip recently introduced its new players club program to widespread customer acceptance. We successfully launched the first phase of our nationwide, consolidated players club program last quarter, when our Las Vegas Locals properties were united under a new Club Coast card. The current phase involves the rollout of the program across the Midwest and South Region under the "B Connected" brand. When the program launch is completed later this quarter, players will be able to use their cards at Boyd Gaming properties in Nevada, Illinois, Indiana, Louisiana and Mississippi.

Commenting on the launch, Paul Chakmak, Executive Vice President and Chief Operating Officer, said, "The creation of a nationwide, multi-property players card will allow us to better leverage our national portfolio, driving cross-property and cross-market visitation within and between the Midwest and South Region and our Las Vegas properties. We believe the 21% increase in new player sign-ups for our Club Coast program bodes well for customer acceptance,

and we're confident that the defining aspects of our One Card program will provide us a key competitive advantage in the coming months and years."

Dividend

Our Board of Directors declared a quarterly dividend of $0.15 per share, payable June 2, 2008 to shareholders of record as of the close of business on May 14, 2008.

Key Financial Statistics

The following is additional information as of and for the three months ended March 31, 2008:

  -- March 31 debt balance: $2.4 billion
  -- March 31 cash: $152.5 million
  -- Dividends paid in the quarter: $13.2 million
  -- Maintenance capital expenditures during the quarter: $14.0 million
  -- Expansion capital expenditures during the quarter: $169.0 million
  -- Capitalized interest during the quarter: $6.7 million
  -- Cash distribution to the Company from Borgata in the quarter:
     $14.7 million
  -- March 31 debt balance at Borgata: $751.8 million


  Conference Call Information

We will host our first quarter 2008 conference call today (Tuesday, April 29) at 12:00 p.m. Eastern. The conference call number is 888.680.0869 and the passcode is 31668133. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.

The conference call will also be available live on the Internet at http://www.boydgaming.com/ or http://phx.corporate-ir.net/phoenix.zhtml?p=irol- eventDetails&c=95703&eventID=1816614

Following the call's completion, a replay will be available by dialing 888.286.8010 beginning two hours after the completion of the call and continuing through Tuesday, May 6. The passcode for the replay will be 33374119. The replay will also be available on the Internet at http://www.boydgaming.com/ .

The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Adjusted EBITDA to income (loss) from continuing operations for the three months ended March 31, 2008 and 2007:

                                             Three Months Ended
                                                  March 31,
                                             2008           2007
  Net Revenues                                 (In thousands)
      Las Vegas Locals                    $206,494        $218,688
      Downtown Las Vegas (a)                60,929          63,833
      Midwest and South                    203,695         234,509
              Net revenues                $471,118        $517,030
  Adjusted EBITDA
      Las Vegas Locals                     $66,655         $74,579
      Downtown Las Vegas                    10,169          13,881
      Midwest and South                     45,599          57,281
          Wholly-owned property Adjusted
           EBITDA                          122,423         145,741
          Corporate expense (c)            (13,746)        (12,193)
              Wholly-owned Adjusted
               EBITDA                      108,677         133,548
          Our share of Borgata's
           operating income before net
           amortization, preopening
           and other items (d)              19,005          21,872
              Adjusted EBITDA (e)          127,682         155,420
  Other operating costs and expenses
      Deferred rent                          1,134           1,130
      Depreciation and amortization (f)     43,494          40,936
      Preopening expenses                    5,579           4,450
      Our share of Borgata's preopening
       expenses                                408             470
      Our share of Borgata's write-downs
       and other charges, net                   70             (34)
      Share-based compensation expense       2,969           4,184
      Write-downs and other charges         90,313           9,008
              Total other operating
               costs and expenses          143,967          60,144
  Operating income (loss)                  (16,285)         95,276
  Other non-operating items
      Interest expense, net (b)             30,253          36,548
      (Increase) decrease in value of
       derivative instruments                 (442)             76
      Gain on early retirement of debt        (950)              -
      Our share of Borgata's non-operating
       expenses, net                         4,605           3,801
              Total other non-operating
               costs and expenses, net      33,466          40,425
  Income (loss) from continuing
   operations before income taxes          (49,751)         54,851
  Benefit from (provision for) income
   taxes                                    17,164         (19,746)

  Income (loss) from continuing
   operations                             $(32,587)        $35,105


  (a) Includes revenues related to Vacations Hawaii and other travel agency
      related entities of $10.0 million and $10.7 million for the three
      months ended March 31, 2008 and 2007, respectively.
  (b) Net of interest income and amounts capitalized.
  (c) The following table reconciles the presentation of corporate expense
      on our condensed consolidated statements of operations to the
      presentation on the accompanying table:


                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                               (In thousands)
  Corporate expense as reported on our
   condensed consolidated statements of
   operations                              $15,773         $15,271
  Corporate share-based compensation
   expense                                  (2,027)         (3,078)
  Corporate expense as reported on the
   accompanying table                      $13,746         $12,193



  (d) The following table reconciles the presentation of our share of
      Borgata's operating income on our condensed consolidated statements of
      operations to the presentation of our share of Borgata's results on
      the accompanying table:


                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                               (In thousands)
  Operating income from Borgata, as
   reported on our condensed consolidated
   statements of operations                $18,203         $21,112
  Add back:
      Net amortization expense related
       to our investment in Borgata            324             324
      Our share of preopening expenses         408             470
      Our share of write-downs and
       other charges, net                       70             (34)
  Our share of Borgata's operating
   income before net amortization,
   preopening and other items              $19,005         $21,872



  (e) The following table reconciles Adjusted EBITDA to EBITDA and income
     (loss) from continuing operations:


                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                               (In thousands)
  Adjusted EBITDA                         $127,682        $155,420
      Deferred rent                          1,134           1,130
      Preopening expenses                    5,579           4,450
      Our share of Borgata's preopening
       expenses                                408             470
      Our share of Borgata's write-downs
       and other charges, net                   70             (34)
      Share-based compensation expense       2,969           4,184
      Write-downs and other charges         90,313           9,008
      (Increase) decrease in value of
       derivative instruments                 (442)             76
      Gain on early retirement of debt        (950)              -
      Our share of Borgata's non-
       operating expenses, net               4,605           3,801
  EBITDA                                    23,996         132,335
      Depreciation and amortization         43,494          40,936
      Interest expense, net                 30,253          36,548
      (Benefit from) provision for
       income taxes                        (17,164)         19,746

  Income (loss) from continuing
   operations                             $(32,587)        $35,105



  (f) The following table reconciles the presentation of depreciation and
      amortization on our condensed consolidated statements of operations to
      the presentation on the accompanying table:


                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                               (In thousands)
  Depreciation and amortization as
   reported on our condensed consolidated
   statements of operations                $43,170         $40,612
  Net amortization expense related to
   our investment in Borgata                   324             324
  Depreciation and amortization as
   reported on the accompanying table      $43,494         $40,936



  BOYD GAMING CORPORATION AND SUBSIDIARIES
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  (Unaudited)
                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                   (In thousands, except per share data)
  Revenues
      Gaming                              $392,966        $431,931
      Food and beverage                     66,926          68,306
      Room                                  38,355          39,972
      Other                                 29,664          32,884
  Gross revenues                           527,911         573,093
  Less promotional allowances               56,793          56,063
          Net revenues                     471,118         517,030

  Costs and expenses
      Gaming                               177,035         197,623
      Food and beverage                     39,278          41,237
      Room                                  11,424          11,372
      Other                                 22,090          23,369
      Selling, general and administrative   77,907          77,246
      Maintenance and utilities             23,037          22,678
      Depreciation and amortization         43,170          40,612
      Corporate expense                     15,773          15,271
      Preopening expenses                    5,579           4,450
      Write-downs and other charges         90,313           9,008
         Total costs and expenses          505,606         442,866

  Operating income from Borgata             18,203          21,112
  Operating income (loss)                  (16,285)         95,276

  Other (income) expense
      Interest income                           (8)              -
      Interest expense, net of amounts
       capitalized                          30,261          36,548
      (Increase) decrease in value of
       derivative instruments                 (442)             76
      Gain on early retirement of debt        (950)              -
      Other non-operating expenses from
       Borgata, net                          4,605           3,801
         Total                              33,466          40,425

  Income (loss) from continuing operations
   before income taxes                     (49,751)         54,851
  Benefit from (provision for) income
   taxes                                    17,164         (19,746)
  Income (loss) from continuing operations (32,587)         35,105

  Discontinued operations:
      Income from discontinued operations
       (including a gain on disposition of
       $285,189 during 2007)                     -         282,956
     Provision for income taxes                  -        (100,195)
         Net income from discontinued
          operations                             -         182,761
  Net income (loss)                       $(32,587)       $217,866

  Basic Net Income (Loss) Per Common Share
  Income (loss) from continuing operations  $(0.37)          $0.40
  Net income from discontinued operations        -            2.10
  Net income (loss)                         $(0.37)          $2.50

  Average Basic Shares Outstanding          87,809          87,240

  Diluted Net Income (Loss) Per Common Share
  Income (loss) from continuing operations  $(0.37)          $0.40
  Net income from discontinued operations        -            2.06
  Net income (loss)                         $(0.37)          $2.46

  Average Diluted Shares Outstanding        87,809          88,460

The following table reconciles income (loss) from continuing operations based upon United States generally accepted accounting principles to adjusted earnings and adjusted earnings per share:

                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                   (In thousands, except per share data)
  Income (loss) from continuing
   operations                             $(32,587)        $35,105
     Adjustments:
        Preopening expenses                  5,579           4,450
        Our share of Borgata's preopening
         expenses                              408             470
        Our share of Borgata's write-downs
         and other charges, net                 70             (34)
        (Increase) decrease in value of
         derivative instruments               (442)             76
        Gain on early retirement of debt      (950)              -
        Write-downs and other charges       90,313           9,008
        Income tax effect for above
         adjustments                       (32,767)         (5,029)
           Adjusted earnings               $29,624         $44,046

        Adjusted earnings per diluted
         share (Adjusted EPS)                $0.34           $0.50

        Weighted average diluted shares
         outstanding                        87,809          88,460



  The following table reports Borgata's financial results:


                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                               (In thousands)
  Gaming revenue                          $178,636        $187,269
  Non-gaming revenue                        68,106          66,737
     Gross revenues                        246,742         254,006
     Less promotional allowances            44,718          50,276
  Net revenues                             202,024         203,730
  Expenses                                 146,558         143,161
  Depreciation and amortization             17,455          16,826
  Preopening expenses                          816             941
  Write-downs and other charges, net           140             (69)
  Operating income                          37,055          42,871

  Interest expense, net                     (6,457)         (7,693)
  (Provision for) benefit from income taxes (2,754)             90
     Total non-operating expenses           (9,211)         (7,603)
  Net income                               $27,844         $35,268

The following table reconciles our share of Borgata's financial results to the amounts reported on our condensed consolidated statements of operations:

                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                               (In thousands)
  Our share of Borgata's operating income  $18,527         $21,436
  Net amortization expense related to our
   investment in Borgata                      (324)           (324)
  Operating income from Borgata, as
   reported on our condensed consolidated
   statements of operations                $18,203         $21,112

  Other non-operating net expenses from
   Borgata, as reported on our condensed
   consolidated statements of operations    $4,605          $3,801

The following table reconciles operating income to Adjusted EBITDA for Borgata:

                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                               (In thousands)
  Operating income                         $37,055         $42,871
      Depreciation and amortization         17,455          16,826
      Preopening expenses                      816             941
      Write-downs and other charges, net       140             (69)
  Adjusted EBITDA                          $55,466         $60,569

The following table reconciles Adjusted EBITDA to EBITDA and Net income for Borgata:

                                             Three Months Ended
                                                  March 31,
                                             2008           2007
                                               (In thousands)
  Adjusted EBITDA                          $55,466         $60,569
      Preopening expenses                      816             941
      Write-downs and other charges, net       140             (69)
  EBITDA                                    54,510          59,697
      Depreciation and amortization         17,455          16,826
      Interest expense, net                  6,457           7,693
      Provision for (benefit from) income
       taxes                                 2,754             (90)
  Net income                               $27,844         $35,268



  Footnotes and Safe Harbor Statements

  Non-GAAP Financial Measures

Regulation G, "Conditions for Use of Non-GAAP Financial Measures," prescribes the conditions for use of non-GAAP financial information in public disclosures. We believe that our presentations of the following non-GAAP financial measures are important supplemental measures of operating performance to investors: earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings Per Share (Adjusted EPS). The following discussion defines these terms and why we believe they are useful measures of our performance.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in our industry which we believe, when considered with measures calculated in accordance with United States Generally Accepted Accounting Principles (GAAP), gives investors a more complete understanding of operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of our core operating results and as a means to evaluate period-to-period results. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. We do not reflect such items when calculating EBITDA; however, we adjust for these items and refer to this measure as Adjusted EBITDA. We have historically reported this measure to our investors and believe that the continued inclusion of Adjusted EBITDA provides consistency in our financial reporting. We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by management in its financial and operational decision-making. Adjusted EBITDA is among the more significant factors in management's internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions. Adjusted EBITDA is also widely used by management in the annual budget process. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company. Adjusted EBITDA reflects EBITDA adjusted for deferred rent, preopening expenses, share-based compensation expense, write-downs and other charges, change in value of derivative instruments, gain/loss on early retirements of debt, and our share of Borgata's non-operating expenses, preopening expenses and write-downs and other charges, net. A reconciliation of Adjusted EBITDA to EBITDA and income (loss) from continuing operations, based upon GAAP, is included in the financial schedules accompanying this release.

Adjusted Earnings and Adjusted EPS

Adjusted Earnings is income (loss) from continuing operations before preopening expenses, change in value of derivative instruments, write-downs and other charges, gain/loss on early retirements of debt, and our share of Borgata's preopening expenses and write-downs and other charges, net. Adjusted Earnings and Adjusted EPS are presented solely as supplemental disclosures because management believes that they are widely used measures of performance in the gaming industry. A reconciliation of Adjusted EBITDA to EBITDA and income (loss) from continuing operations, based upon GAAP, and the presentation of Adjusted EPS are each included in the financial schedules accompanying this release.

Limitations on the Use of Non-GAAP Measures

The use of EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest and income taxes, capital expenditures and other items both in our reconciliations to the GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.

EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA, Adjusted EBITDA, Adjusted Earnings and Adjusted EPS reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

Forward Looking Statements and Company Information

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 contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding the future, including, but not limited to, statements regarding the Company's strategy, expenses, revenue, earnings, cash flow, Adjusted EBITDA, Adjusted Earnings or Earnings Per Share. In addition, forward-looking statements include statements regarding the effects of competition and construction disruption on Blue Chip's operating results, the slowing economy and reduced consumer spending, the aggregate amount of construction hard costs covered by contracts on Echelon, the factors that led to the impairment charge at Dania and the actual amount of the charge, the reasons for the financial declines at Borgata, statements regarding Borgata, including that it continues to hold a top spot in the Atlantic City market, statements under the heading "Development Update" including statements regarding the timing and expected development of the Company's Echelon project, statements regarding the status and timing expectations of construction on Echelon's various components and that it remains on-schedule and on-budget, statements regarding The Water Club, including its anticipated amenities and anticipated cost, and that the project is readying for a June 2008 opening, statements regarding the proposed expansion project at Blue Chip, the anticipated cost, opening date, and the expected amenities of the new expansion project, statements regarding the Company's beliefs regarding its long-term prospects, and that its new developments will enable it to offer more luxurious and upscale entertainment experiences, the Company's belief that the Company will be in well-positioned to capitalize on growth opportunities, statements under the heading "Boyd Gaming Branding Initiative", including statements regarding the goals of the branding initiative, its anticipated effects on the Company's players clubs, the Company's belief that it will be better able to leverage its national portfolio, and that the One Card program will provide the Company with a key competitive advantage in the future, its presence in various markets and the anticipated timing of the branding initiative and its various phases and the number of new member sign-ups to the players club program. Forward- looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. In particular, the Company can provide no assurances regarding the timing or effects of the Company's branding initiative, that Borgata's or Blue Chip's position, performance or demand will change, and the timing, cost, progress or anticipated amenities and features for each of the Company's development and expansion projects, including Blue Chip, Borgata and Echelon. Among the factors that could cause actual results to differ materially are the following: competition, litigation, financial community and rating agency perceptions of the Company, changes in laws and regulations, including increased taxes, the availability and price of energy, weather, regulation, economic, credit and capital market conditions and the effects of war, terrorist or similar activity. In addition, the Company's development and expansion projects are subject to the many risks inherent in the expansion or renovation of an existing enterprise or construction of a new enterprise, including poor performance or non-performance by any of the joint venture partners or other third parties on whom the Company is relying, unanticipated design, construction, regulatory, environmental and operating problems and lack of demand for the Company's projects, as well as unanticipated delays and cost increases, shortages of materials, shortages of skilled labor or work stoppages, unforeseen construction scheduling, engineering, environmental, permitting, construction or geological problems, weather interference, floods, fires or other casualty losses. In addition, the Company's anticipated costs and construction periods for projects are based upon budgets, conceptual design documents and construction schedule estimates prepared by the Company in consultation with its architects and contractors. Many of these costs are estimated at inception of the project and can change over time as the project is built to completion. The cost of any project may vary significantly from initial budget expectations, and the Company may have a limited amount of capital resources to fund cost overruns. If the Company cannot finance cost overruns on a timely basis, the completion of one or more projects may be delayed until adequate funding is available. The Company cannot assure that any project will be completed, if at all, on time or within established budgets, or that any project will result in increased earnings to the Company. Significant delays, cost overruns, or failures of the Company's projects to achieve market acceptance could have a material adverse effect on the Company's business, financial condition and results of operations. Furthermore, the Company's projects may not help it compete with new or increased competition in its markets. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's filings with the SEC, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release 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.

About Boyd Gaming

Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 16 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana. The Company is also developing Echelon, a world-class destination resort on the Las Vegas Strip, expected to open in the third quarter 2010. Boyd Gaming press releases are available at http://www.prnewswire.com/. Additional news and information on Boyd Gaming can be found at http://www.boydgaming.com/ .

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PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Boyd Gaming Corporation

CONTACT: Financial, Josh Hirshberg, +1-702-792-7234,
joshhirshberg@boydgaming.com, or Media, Rob Stillwell, +1-702-792-7353,
robstillwell@boydgaming.com, both of Boyd Gaming Corporation

Web site: http://www.boydgaming.com/