Exhibit 99.2 | Pro Forma Unaudited Financial Statements and Supporting Schedules as of and for the three and six months ended June 30, 2009 |
BOYD GAMING CORPORATION AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated Balance Sheet
June 30, 2009 | |||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | ||||||||||||
(In thousands, except share and per share data) | |||||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 93,646 | $ | 24,146 | $ | — | $ | 117,792 | |||||||
Other current assets | 117,406 | 46,763 | — | 164,169 | |||||||||||
Property and equipment, net | 3,209,368 | 1,394,231 | 30,411 | 4,634,010 | |||||||||||
Investments in and advances to unconsolidated subsidiaries | 423,906 | 5,709 | (405,993 | ) | 23,622 | ||||||||||
Other assets, net | 83,224 | 37,219 | — | 120,443 | |||||||||||
Intangible assets, net | 422,124 | — | — | 422,124 | |||||||||||
Goodwill, net | 213,576 | — | — | 213,576 | |||||||||||
Total assets | $ | 4,563,250 | $ | 1,508,068 | $ | (375,582 | ) | $ | 5,695,736 | ||||||
Liabilities and Stockholders’ Equity | |||||||||||||||
Current liabilities | $ | 315,547 | $ | 98,009 | $ | — | $ | 413,556 | |||||||
Long-term debt, net of current maturities | 2,688,736 | 666,778 | — | 3,355,514 | |||||||||||
Other long-term liabilities | 416,067 | 22,923 | — | 438,990 | |||||||||||
Stockholders’ equity | |||||||||||||||
Preferred stock, $.01 par value, 5,000,000 shares authorized | — | — | — | — | |||||||||||
Common stock, $.01 par value, 200,000,000 shares authorized; 86,122,787 and 87,814,061 shares outstanding | 861 | — | — | 861 | |||||||||||
Additional paid-in capital | 615,445 | 477,507 | (477,507 | ) | 615,445 | ||||||||||
Retained earnings | 545,308 | 242,851 | (242,851 | ) | 545,308 | ||||||||||
Accumulated other comprehensive loss, net | (18,714 | ) | — | — | (18,714 | ) | |||||||||
Total Boyd Gaming Corporation stockholders’ equity | 1,142,900 | 720,358 | (720,358 | ) | 1,142,900 | ||||||||||
Noncontrolling interest | — | — | 344,776 | 344,776 | |||||||||||
Total stockholders’ equity | 1,142,900 | 720,358 | (375,582 | ) | 1,487,676 | ||||||||||
Total liabilities and stockholders’ equity | $ | 4,563,250 | $ | 1,508,068 | $ | (375,582 | ) | $ | 5,695,736 | ||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Three Months Ended June 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Gaming revenue | $ | 353,597 | $ | 173,837 | $ | — | $ | 527,434 | ||||||||
Non-gaming revenue | 115,722 | 71,915 | — | 187,637 | ||||||||||||
Gross revenues | 469,319 | 245,752 | — | 715,071 | ||||||||||||
Less promotional allowances | 46,369 | 54,239 | — | 100,608 | ||||||||||||
Net revenues | 422,950 | 191,513 | — | 614,463 | ||||||||||||
Operating expenses | 324,754 | 143,787 | — | 468,541 | ||||||||||||
Depreciation and amortization | 42,093 | 20,040 | 325 | 62,458 | ||||||||||||
Corporate expense | 11,036 | — | — | 11,036 | ||||||||||||
Preopening expenses | 4,054 | 346 | — | 4,400 | ||||||||||||
Write-downs and other charges | (1,835 | ) | 71 | — | (1,764 | ) | ||||||||||
Total costs and expenses | 380,102 | 164,244 | 325 | 544,671 | ||||||||||||
Operating income from Borgata | 13,310 | — | (13,310 | ) | — | |||||||||||
Operating income | 56,158 | 27,269 | (13,635 | ) | 69,792 | |||||||||||
Interest expense, net | 36,235 | 7,447 | — | 43,682 | ||||||||||||
Gain on early retirements of debt | (6,057 | ) | — | — | (6,057 | ) | ||||||||||
Other non-operating expenses from Borgata, net | 4,504 | — | (4,504 | ) | — | |||||||||||
Total other expense, net | 34,682 | 7,447 | (4,504 | ) | 37,625 | |||||||||||
Income before income taxes | 21,476 | 19,822 | (9,131 | ) | 32,167 | |||||||||||
Income taxes | (8,698 | ) | (1,561 | ) | — | (10,259 | ) | |||||||||
Net income | 12,778 | 18,261 | (9,131 | ) | 21,908 | |||||||||||
Noncontrolling interest | — | — | (9,130 | ) | (9,130 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | $ | 12,778 | $ | 18,261 | $ | (18,261 | ) | $ | 12,778 | |||||||
Basic net income per common share | $ | 0.15 | $ | 0.15 | ||||||||||||
Weighted average basic shares outstanding | 86,254 | 86,254 | ||||||||||||||
Diluted net income per common share | $ | 0.15 | $ | 0.15 | ||||||||||||
Weighted average diluted shares outstanding | 86,291 | 86,291 | ||||||||||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Adjusted Earnings
Three Months Ended June 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net income | $ | 12,778 | $ | 18,261 | $ | (9,131 | ) | $ | 21,908 | |||||||
Noncontrolling interest | — | — | (9,130 | ) | (9,130 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | 12,778 | 18,261 | (18,261 | ) | 12,778 | |||||||||||
Adjustments: | ||||||||||||||||
Preopening expenses | 4,054 | 346 | — | 4,400 | ||||||||||||
Our share of Borgata’s preopening expenses | 173 | — | (173 | ) | — | |||||||||||
Our share of Borgata’s write-downs and other charges, net | 36 | — | (36 | ) | — | |||||||||||
Gain on early retirements of debt | (6,057 | ) | — | — | (6,057 | ) | ||||||||||
Write-downs and other charges | (1,835 | ) | 71 | — | (1,764 | ) | ||||||||||
Income tax effect for above adjustments | 1,280 | (133 | ) | — | 1,147 | |||||||||||
Adjusted earnings | $ | 10,429 | $ | 18,545 | $ | (18,470 | ) | $ | 10,504 | |||||||
Adjusted earnings per diluted share | $ | 0.12 | $ | 0.12 | ||||||||||||
Weighted average diluted shares outstanding | 86,291 | 86,291 | ||||||||||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Net Revenues and Adjusted EBITDA by Segment
Three Months Ended June 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands) | ||||||||||||||||
Net Revenues | ||||||||||||||||
Las Vegas Locals | $ | 166,127 | $ | — | $ | — | $ | 166,127 | ||||||||
Downtown Las Vegas | 57,577 | — | — | 57,577 | ||||||||||||
Midwest and South | 199,246 | — | — | 199,246 | ||||||||||||
Atlantic City | — | 191,513 | — | 191,513 | ||||||||||||
Net revenues | $ | 422,950 | $ | 191,513 | $ | — | $ | 614,463 | ||||||||
Adjusted EBITDA | ||||||||||||||||
Las Vegas Locals | $ | 43,917 | $ | — | $ | — | $ | 43,917 | ||||||||
Downtown Las Vegas | 11,800 | — | — | 11,800 | ||||||||||||
Midwest and South | 44,253 | — | — | 44,253 | ||||||||||||
Atlantic City | — | 47,726 | — | 47,726 | ||||||||||||
Property Adjusted EBITDA | 99,970 | 47,726 | — | 147,696 | ||||||||||||
Corporate expense | (8,216 | ) | — | — | (8,216 | ) | ||||||||||
91,754 | 47,726 | — | 139,480 | |||||||||||||
Our share of Borgata’s operating income before net amortization, preopening and other items | 13,844 | — | (13,844 | ) | — | |||||||||||
Adjusted EBITDA | 105,598 | 47,726 | (13,844 | ) | 139,480 | |||||||||||
Other operating costs and expenses | ||||||||||||||||
Deferred rent | 1,088 | — | — | 1,088 | ||||||||||||
Depreciation and amortization | 42,418 | 20,040 | — | 62,458 | ||||||||||||
Preopening expenses | 4,054 | 346 | — | 4,400 | ||||||||||||
Our share of Borgata’s preopening expenses | 173 | — | (173 | ) | — | |||||||||||
Our share of Borgata’s write-downs and other charges, net | 36 | — | (36 | ) | — | |||||||||||
Share-based compensation expense | 3,506 | — | — | 3,506 | ||||||||||||
Write-downs and other charges | (1,835 | ) | 71 | — | (1,764 | ) | ||||||||||
Total other operating costs and expenses | 49,440 | 20,457 | (209 | ) | 69,688 | |||||||||||
Operating income (loss) | 56,158 | 27,269 | (13,635 | ) | 69,792 | |||||||||||
Other non-operating items | ||||||||||||||||
Interest expense, net | 36,235 | 7,447 | — | 43,682 | ||||||||||||
Gain on early retirements of debt | (6,057 | ) | — | — | (6,057 | ) | ||||||||||
Our share of Borgata’s non-operating expenses, net | 4,504 | — | (4,504 | ) | — | |||||||||||
Total other non-operating costs and expenses, net | 34,682 | 7,447 | (4,504 | ) | 37,625 | |||||||||||
Income before income taxes | 21,476 | 19,822 | (9,131 | ) | 32,167 | |||||||||||
Income taxes | (8,698 | ) | (1,561 | ) | (10,259 | ) | ||||||||||
Net income | 12,778 | 18,261 | (9,131 | ) | 21,908 | |||||||||||
Non-controlling interest | — | — | (9,130 | ) | (9,130 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | $ | 12,778 | $ | 18,261 | $ | (18,261 | ) | $ | 12,778 | |||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Reconciliation of Adjusted EBITDA to EBITDA and Net Income
Three Months Ended June 30, 2009 | |||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | ||||||||||||
(In thousands) | |||||||||||||||
Adjusted EBITDA | $ | 105,598 | $ | 47,726 | $ | (13,844 | ) | $ | 139,480 | ||||||
Deferred rent | 1,088 | — | — | 1,088 | |||||||||||
Preopening expenses | 4,054 | 346 | — | 4,400 | |||||||||||
Our share of Borgata’s preopening expenses | 173 | — | (173 | ) | — | ||||||||||
Our share of Borgata’s write-downs and other charges, net | 36 | — | (36 | ) | — | ||||||||||
Share-based compensation expense | 3,506 | — | — | 3,506 | |||||||||||
Write-downs and other charges | (1,835 | ) | 71 | — | (1,764 | ) | |||||||||
Gain on early retirements of debt | (6,057 | ) | — | — | (6,057 | ) | |||||||||
Our share of Borgata’s non-operating expenses, net | 4,504 | — | (4,504 | ) | — | ||||||||||
EBITDA | 100,129 | 47,309 | (9,131 | ) | 138,307 | ||||||||||
Depreciation and amortization | 42,418 | 20,040 | — | 62,458 | |||||||||||
Interest expense, net | 36,235 | 7,447 | — | 43,682 | |||||||||||
Income taxes | 8,698 | 1,561 | — | 10,259 | |||||||||||
Net income | 12,778 | 18,261 | (9,131 | ) | 21,908 | ||||||||||
Noncontrolling interest | — | — | (9,130 | ) | (9,130 | ) | |||||||||
Net income attributable to Boyd Gaming Corporation | $ | 12,778 | $ | 18,261 | $ | (18,261 | ) | $ | 12,778 | ||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Six Months Ended June 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Gaming revenue | $ | 719,660 | $ | 342,686 | $ | — | $ | 1,062,346 | ||||||||
Non-gaming revenue | 232,339 | 141,254 | — | 373,593 | ||||||||||||
Gross revenues | 951,999 | 483,940 | — | 1,435,939 | ||||||||||||
Less promotional allowances | 94,204 | 104,537 | — | 198,741 | ||||||||||||
Net revenues | 857,795 | 379,403 | — | 1,237,198 | ||||||||||||
Operating expenses | 654,680 | 285,751 | — | 940,431 | ||||||||||||
Depreciation and amortization | 84,745 | 40,131 | 649 | 125,525 | ||||||||||||
Corporate expense | 23,721 | — | — | 23,721 | ||||||||||||
Preopening expenses | 9,893 | 699 | — | 10,592 | ||||||||||||
Write-downs and other charges | 27,128 | 61 | — | 27,189 | ||||||||||||
Total costs and expenses | 800,167 | 326,642 | 649 | 1,127,458 | ||||||||||||
Operating income from Borgata | 25,732 | — | (25,732 | ) | — | |||||||||||
Operating income | 83,360 | 52,761 | (26,381 | ) | 109,740 | |||||||||||
Interest expense, net | 81,502 | 15,458 | — | 96,960 | ||||||||||||
Gain on early retirements of debt | (8,457 | ) | — | — | (8,457 | ) | ||||||||||
Other non-operating expenses from Borgata, net | 9,026 | — | (9,026 | ) | — | |||||||||||
Total other expense, net | 82,071 | 15,458 | (9,026 | ) | 88,503 | |||||||||||
Income before income taxes | 1,289 | 37,303 | (17,355 | ) | 21,237 | |||||||||||
Income taxes | (2,339 | ) | (2,593 | ) | — | (4,932 | ) | |||||||||
Net income (loss) | (1,050 | ) | 34,710 | (17,355 | ) | 16,305 | ||||||||||
Noncontrolling interest | — | — | (17,355 | ) | (17,355 | ) | ||||||||||
Net loss attributable to Boyd Gaming Corporation | $ | (1,050 | ) | $ | 34,710 | $ | (34,710 | ) | $ | (1,050 | ) | |||||
Basic and diluted net loss per common share | $ | (0.01 | ) | $ | (0.01 | ) | ||||||||||
Weighted average basic and diluted shares outstanding | 86,591 | 86,591 | ||||||||||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Adjusted Earnings
Six Months Ended June 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net income (loss) | $ | (1,050 | ) | $ | 34,710 | $ | (17,355 | ) | $ | 16,305 | ||||||
Noncontrolling interest | — | — | (17,355 | ) | (17,355 | ) | ||||||||||
Net loss attributable to Boyd Gaming Corporation | (1,050 | ) | 34,710 | (34,710 | ) | (1,050 | ) | |||||||||
Adjustments: | ||||||||||||||||
Preopening expenses | 9,893 | 699 | — | 10,592 | ||||||||||||
Our share of Borgata’s preopening expenses | 349 | — | (349 | ) | — | |||||||||||
Our share of Borgata’s write-downs and other charges, net | 31 | — | (31 | ) | — | |||||||||||
Gain on early retirements of debt | (8,457 | ) | — | — | (8,457 | ) | ||||||||||
Write-downs and other charges | 27,128 | 61 | — | 27,189 | ||||||||||||
Prior period interest expense related to the finalization of | — | |||||||||||||||
our purchase price for Dania Jai-Alai | 8,883 | — | — | 8,883 | ||||||||||||
Income tax effect for above adjustments | (13,346 | ) | (176 | ) | — | (13,522 | ) | |||||||||
Adjusted earnings | $ | 23,431 | $ | 35,294 | $ | (35,090 | ) | $ | 23,635 | |||||||
Adjusted earnings per diluted share | $ | 0.27 | $ | 0.27 | ||||||||||||
Weighted average diluted shares outstanding | 86,291 | 86,291 | ||||||||||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Net Revenues and Adjusted EBITDA by Segment
Six Months Ended June 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands) | ||||||||||||||||
Net Revenues | ||||||||||||||||
Las Vegas Locals | $ | 336,226 | $ | — | $ | — | $ | 336,226 | ||||||||
Downtown Las Vegas | 116,243 | — | — | 116,243 | ||||||||||||
Midwest and South | 405,326 | — | — | 405,326 | ||||||||||||
Atlantic City | — | 379,403 | — | 379,403 | ||||||||||||
Net revenues | $ | 857,795 | $ | 379,403 | $ | — | $ | 1,237,198 | ||||||||
Adjusted EBITDA | ||||||||||||||||
Las Vegas Locals | $ | 89,237 | $ | — | $ | — | $ | 89,237 | ||||||||
Downtown Las Vegas | 25,154 | — | — | 25,154 | ||||||||||||
Midwest and South | 92,274 | — | — | 92,274 | ||||||||||||
Atlantic City | — | 93,652 | — | 93,652 | ||||||||||||
Property Adjusted EBITDA | 206,665 | 93,652 | — | 300,317 | ||||||||||||
Corporate expense | (18,196 | ) | — | — | (18,196 | ) | ||||||||||
188,469 | 93,652 | — | 282,121 | |||||||||||||
Our share of Borgata’s operating income before net amortization, preopening and other items | 26,761 | — | (26,761 | ) | — | |||||||||||
Adjusted EBITDA | 215,230 | 93,652 | (26,761 | ) | 282,121 | |||||||||||
Other operating costs and expenses | ||||||||||||||||
Deferred rent | 2,177 | — | — | 2,177 | ||||||||||||
Depreciation and amortization | 85,394 | 40,131 | — | 125,525 | ||||||||||||
Preopening expenses | 9,893 | 699 | — | 10,592 | ||||||||||||
Our share of Borgata’s preopening expenses | 349 | — | (349 | ) | — | |||||||||||
Our share of Borgata’s write-downs and other charges, net | 31 | — | (31 | ) | — | |||||||||||
Share-based compensation expense | 6,898 | — | — | 6,898 | ||||||||||||
Write-downs and other charges | 27,128 | 61 | — | 27,189 | ||||||||||||
Total other operating costs and expenses | 131,870 | 40,891 | (380 | ) | 172,381 | |||||||||||
Operating income | 83,360 | 52,761 | (26,381 | ) | 109,740 | |||||||||||
Other non-operating items | ||||||||||||||||
Interest expense, net | 81,502 | 15,458 | — | 96,960 | ||||||||||||
Gain on early retirements of debt | (8,457 | ) | — | — | (8,457 | ) | ||||||||||
Our share of Borgata’s non-operating expenses, net | 9,026 | — | (9,026 | ) | — | |||||||||||
Total other non-operating costs and expenses, net | 82,071 | 15,458 | (9,026 | ) | 88,503 | |||||||||||
Income before income taxes | 1,289 | 37,303 | (17,355 | ) | 21,237 | |||||||||||
Income taxes | (2,339 | ) | (2,593 | ) | (4,932 | ) | ||||||||||
Net income (loss) | (1,050 | ) | 34,710 | (17,355 | ) | 16,305 | ||||||||||
Noncontrolling interest | — | — | (17,355 | ) | (17,355 | ) | ||||||||||
Net loss attributable to Boyd Gaming Corporation | $ | (1,050 | ) | $ | 34,710 | $ | (34,710 | ) | $ | (1,050 | ) | |||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Reconciliation of Adjusted EBITDA to EBITDA and Net Income (Loss)
Six Months Ended June 30, 2009 | |||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | ||||||||||||
(In thousands) | |||||||||||||||
Adjusted EBITDA | $ | 215,230 | $ | 93,652 | $ | (26,761 | ) | $ | 282,121 | ||||||
Deferred rent | 2,177 | — | — | 2,177 | |||||||||||
Preopening expenses | 9,893 | 699 | — | 10,592 | |||||||||||
Our share of Borgata’s preopening expenses | 349 | — | (349 | ) | — | ||||||||||
Our share of Borgata’s write-downs and other charges, net | 31 | — | (31 | ) | — | ||||||||||
Share-based compensation expense | 6,898 | — | — | 6,898 | |||||||||||
Write-downs and other charges | 27,128 | 61 | — | 27,189 | |||||||||||
Gain on early retirements of debt | (8,457 | ) | — | — | (8,457 | ) | |||||||||
Our share of Borgata’s non-operating expenses, net | 9,026 | — | (9,026 | ) | — | ||||||||||
EBITDA | 168,185 | 92,892 | (17,355 | ) | 243,722 | ||||||||||
Depreciation and amortization | 85,394 | 40,131 | — | 125,525 | |||||||||||
Interest expense, net | 81,502 | 15,458 | — | 96,960 | |||||||||||
Income taxes | 2,339 | 2,593 | — | 4,932 | |||||||||||
Net income (loss) | (1,050 | ) | 34,710 | (17,355 | ) | 16,305 | |||||||||
Noncontrolling interest | — | — | (17,355 | ) | (17,355 | ) | |||||||||
Net loss attributable to Boyd Gaming Corporation | $ | (1,050 | ) | $ | 34,710 | $ | (34,710 | ) | $ | (1,050 | ) | ||||