Exhibit 99.3 | Pro Forma Unaudited Financial Statements and Supporting Schedules as of and for the three and nine months ended September 30, 2009 |
BOYD GAMING CORPORATION AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated Balance Sheet
September 30, 2009 | |||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 89,061 | $ | 22,335 | $ | — | $ | 111,396 | |||||||
Other current assets | 115,227 | 48,891 | — | 164,118 | |||||||||||
Property and equipment, net | 3,183,270 | 1,376,792 | 29,972 | 4,590,034 | |||||||||||
Investments in and advances to unconsolidated subsidiaries | 438,118 | 5,889 | (433,668 | ) | 10,339 | ||||||||||
Other assets, net | 79,070 | 32,965 | — | 112,035 | |||||||||||
Intangible assets, net | 422,126 | — | — | 422,126 | |||||||||||
Goodwill, net | 213,576 | — | — | 213,576 | |||||||||||
Total assets | $ | 4,540,448 | $ | 1,486,872 | $ | (403,696 | ) | $ | 5,623,624 | ||||||
Liabilities and Stockholders’ Equity | |||||||||||||||
Current liabilities | $ | 318,972 | $ | 89,364 | $ | — | $ | 408,336 | |||||||
Long-term debt, net of current maturities | 2,644,628 | 595,078 | — | 3,239,706 | |||||||||||
Other long-term liabilities | 425,959 | 25,844 | — | 451,803 | |||||||||||
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 | 618,597 | 477,507 | (477,507 | ) | 618,597 | ||||||||||
Retained earnings | 551,623 | 299,079 | (299,079 | ) | 551,623 | ||||||||||
Accumulated other comprehensive loss, net | (20,192 | ) | — | — | (20,192 | ) | |||||||||
Total Boyd Gaming Corporation stockholders’ equity | 1,150,889 | 776,586 | (776,586 | ) | 1,150,889 | ||||||||||
Noncontrolling interest | — | — | 372,890 | 372,890 | |||||||||||
Total stockholders’ equity | 1,150,889 | 776,586 | (403,696 | ) | 1,523,779 | ||||||||||
Total liabilities and stockholders’ equity | $ | 4,540,448 | $ | 1,486,872 | $ | (403,696 | ) | $ | 5,623,624 | ||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Three Months Ended September 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Gaming revenue | $ | 332,054 | $ | 195,355 | $ | — | $ | 527,409 | ||||||||
Non-gaming revenue | 110,479 | 89,411 | — | 199,890 | ||||||||||||
Gross revenues | 442,533 | 284,766 | — | 727,299 | ||||||||||||
Less promotional allowances | 44,290 | 62,169 | — | 106,459 | ||||||||||||
Net revenues | 398,243 | 222,597 | — | 620,840 | ||||||||||||
Operating expenses | 318,418 | 155,038 | — | 473,456 | ||||||||||||
Depreciation and amortization | 40,579 | 19,208 | 325 | 60,112 | ||||||||||||
Corporate expense | 11,356 | — | — | 11,356 | ||||||||||||
Preopening expenses | 4,880 | — | — | 4,880 | ||||||||||||
Write-downs and other charges | 14,287 | (28,677 | ) | — | (14,390 | ) | ||||||||||
Total costs and expenses | 389,520 | 145,569 | 325 | 535,414 | ||||||||||||
Operating income from Borgata | 38,189 | — | (38,189 | ) | — | |||||||||||
Operating income | 46,912 | 77,028 | (38,514 | ) | 85,426 | |||||||||||
Interest expense, net | 32,299 | 6,423 | — | 38,722 | ||||||||||||
Gain on early retirements of debt | (3,604 | ) | — | — | (3,604 | ) | ||||||||||
Other non-operating expenses | 30 | — | — | 30 | ||||||||||||
Other non-operating expenses from Borgata, net | 7,204 | — | (7,204 | ) | — | |||||||||||
Total other expense, net | 35,929 | 6,423 | (7,204 | ) | 35,148 | |||||||||||
Income before income taxes | 10,983 | 70,605 | (31,310 | ) | 50,278 | |||||||||||
Income taxes | (4,668 | ) | (7,986 | ) | — | (12,654 | ) | |||||||||
Net income | 6,315 | 62,619 | (31,310 | ) | 37,624 | |||||||||||
Noncontrolling interest | — | — | (31,309 | ) | (31,309 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | $ | 6,315 | $ | 62,619 | $ | (62,619 | ) | $ | 6,315 | |||||||
Basic net income per common share | $ | 0.07 | $ | 0.07 | ||||||||||||
Weighted average basic shares outstanding | 86,264 | 86,264 | ||||||||||||||
Diluted net income per common share | $ | 0.07 | $ | 0.07 | ||||||||||||
Weighted average diluted shares outstanding | 86,436 | 86,436 | ||||||||||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Adjusted Earnings
Three Months Ended September 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net income | $ | 6,315 | $ | 62,619 | $ | (31,310 | ) | $ | 37,624 | |||||||
Noncontrolling interest | — | — | (31,309 | ) | (31,309 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | 6,315 | 62,619 | (62,619 | ) | 6,315 | |||||||||||
Adjustments: | ||||||||||||||||
Preopening expenses | 4,880 | — | — | 4,880 | ||||||||||||
Our share of Borgata’s preopening expenses | — | — | — | — | ||||||||||||
Other non-operating expenses | 30 | 30 | ||||||||||||||
Our share of Borgata’s write-downs and other charges, net | (14,339 | ) | — | 14,339 | — | |||||||||||
Gain on early retirements of debt | (3,604 | ) | — | — | (3,604 | ) | ||||||||||
Write-downs and other charges | 14,287 | (28,677 | ) | — | (14,390 | ) | ||||||||||
Income tax effect for above adjustments | 424 | 7,218 | — | 7,642 | ||||||||||||
Adjusted earnings | $ | 7,993 | $ | 41,160 | $ | (48,280 | ) | $ | 873 | |||||||
Adjusted earnings per diluted share | $ | 0.09 | $ | 0.01 | ||||||||||||
Weighted average diluted shares outstanding | 86,436 | 86,436 | ||||||||||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES | ||||||||||||||||
Pro Forma Net Revenues and Adjusted EBITDA by Segment | ||||||||||||||||
Three Months Ended September 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands) | ||||||||||||||||
Net Revenues | ||||||||||||||||
Las Vegas Locals | $ | 150,749 | $ | — | $ | — | $ | 150,749 | ||||||||
Downtown Las Vegas | 54,857 | — | — | 54,857 | ||||||||||||
Midwest and South | 192,637 | — | — | 192,637 | ||||||||||||
Atlantic City | — | 222,597 | — | 222,597 | ||||||||||||
Net revenues | $ | 398,243 | $ | 222,597 | $ | — | $ | 620,840 | ||||||||
Adjusted EBITDA | ||||||||||||||||
Las Vegas Locals | $ | 31,363 | $ | — | $ | — | $ | 31,363 | ||||||||
Downtown Las Vegas | 8,701 | — | — | 8,701 | ||||||||||||
Midwest and South | 41,537 | — | — | 41,537 | ||||||||||||
Atlantic City | — | 67,559 | — | 67,559 | ||||||||||||
Property Adjusted EBITDA | 81,601 | 67,559 | — | 149,160 | ||||||||||||
Corporate expense | (9,157 | ) | — | — | (9,157 | ) | ||||||||||
72,444 | 67,559 | — | 140,003 | |||||||||||||
Our share of Borgata’s operating income before net amortization, preopening and other items | 24,174 | — | (24,174 | ) | — | |||||||||||
Adjusted EBITDA | 96,618 | 67,559 | (24,174 | ) | 140,003 | |||||||||||
Other operating costs and expenses | ||||||||||||||||
Deferred rent | 1,089 | — | — | 1,089 | ||||||||||||
Depreciation and amortization | 40,903 | 19,208 | — | 60,111 | ||||||||||||
Preopening expenses | 4,880 | — | — | 4,880 | ||||||||||||
Our share of Borgata’s preopening expenses | — | — | — | — | ||||||||||||
Our share of Borgata’s write-downs and other charges, net | (14,339 | ) | — | 14,339 | — | |||||||||||
Share-based compensation expense | 2,886 | — | — | 2,886 | ||||||||||||
Write-downs and other charges | 14,287 | (28,677 | ) | — | (14,390 | ) | ||||||||||
Total other operating costs and expenses | 49,706 | (9,469 | ) | 14,339 | 54,576 | |||||||||||
Operating income | 46,912 | 77,028 | (38,513 | ) | 85,427 | |||||||||||
Other non-operating items | ||||||||||||||||
Interest expense, net | 32,299 | 6,423 | — | 38,722 | ||||||||||||
Gain on early retirements of debt | (3,604 | ) | — | — | (3,604 | ) | ||||||||||
Other non-operating expenses | 30 | — | — | 30 | ||||||||||||
Our share of Borgata’s non-operating expenses, net | 7,204 | — | (7,204 | ) | — | |||||||||||
Total other non-operating costs and expenses, net | 35,929 | 6,423 | (7,204 | ) | 35,148 | |||||||||||
Income before income taxes | 10,983 | 70,605 | (31,309 | ) | 50,279 | |||||||||||
Income taxes | (4,668 | ) | (7,986 | ) | — | (12,654 | ) | |||||||||
Net income | 6,315 | 62,619 | (31,309 | ) | 37,625 | |||||||||||
Noncontrolling interest | — | — | (31,311 | ) | (31,311 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | $ | 6,315 | $ | 62,619 | $ | (62,620 | ) | $ | 6,315 | |||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Reconciliation of Adjusted EBITDA to EBITDA and Net Income
Three Months Ended September 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands) | ||||||||||||||||
Adjusted EBITDA | $ | 96,618 | $ | 67,559 | $ | (24,174 | ) | $ | 140,003 | |||||||
Deferred rent | 1,089 | — | — | 1,089 | ||||||||||||
Preopening expenses | 4,880 | — | — | 4,880 | ||||||||||||
Our share of Borgata’s preopening expenses | — | — | — | — | ||||||||||||
Our share of Borgata’s write-downs and other charges, net | (14,339 | ) | — | 14,339 | — | |||||||||||
Share-based compensation expense | 2,886 | — | — | 2,886 | ||||||||||||
Write-downs and other charges | 14,287 | (28,677 | ) | — | (14,390 | ) | ||||||||||
Gain on early retirements of debt | (3,604 | ) | — | — | (3,604 | ) | ||||||||||
Other non-operating expenses | 30 | — | — | 30 | ||||||||||||
Our share of Borgata’s non-operating expenses, net | 7,204 | — | (7,204 | ) | — | |||||||||||
EBITDA | 84,185 | 96,236 | (31,309 | ) | 149,112 | |||||||||||
Depreciation and amortization | 40,903 | 19,208 | — | 60,111 | ||||||||||||
Interest expense, net | 32,299 | 6,423 | — | 38,722 | ||||||||||||
Income taxes | 4,668 | 7,986 | — | 12,654 | ||||||||||||
Net income | 6,315 | 62,619 | (31,309 | ) | 37,625 | |||||||||||
Noncontrolling interest | — | — | (31,311 | ) | (31,311 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | $ | 6,315 | $ | 62,619 | $ | (62,620 | ) | $ | 6,315 | |||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Gaming revenue | $ | 1,051,714 | $ | 538,041 | $ | — | $ | 1,589,755 | ||||||||
Non-gaming revenue | 342,818 | 230,665 | — | 573,483 | ||||||||||||
Gross revenues | 1,394,532 | 768,706 | — | 2,163,238 | ||||||||||||
Less promotional allowances | 138,494 | 166,706 | — | 305,200 | ||||||||||||
Net revenues | 1,256,038 | 602,000 | — | 1,858,038 | ||||||||||||
Operating expenses | 973,098 | 440,789 | — | 1,413,887 | ||||||||||||
Depreciation and amortization | 125,324 | 59,339 | 974 | 185,637 | ||||||||||||
Corporate expense | 35,077 | — | — | 35,077 | ||||||||||||
Preopening expenses | 14,773 | 699 | — | 15,472 | ||||||||||||
Write-downs and other charges | 41,415 | (28,616 | ) | — | 12,799 | |||||||||||
Total costs and expenses | 1,189,687 | 472,211 | 974 | 1,662,872 | ||||||||||||
Operating income from Borgata | 63,921 | — | (63,921 | ) | — | |||||||||||
Operating income | 130,272 | 129,789 | (64,895 | ) | 195,166 | |||||||||||
Interest expense, net | 113,801 | 21,881 | — | 135,682 | ||||||||||||
Gain on early retirements of debt | (12,061 | ) | — | (12,061 | ) | |||||||||||
Other non-operating expenses | 30 | — | — | 30 | ||||||||||||
Other non-operating expenses from Borgata, net | 16,230 | — | (16,230 | ) | — | |||||||||||
Total other expense, net | 118,000 | 21,881 | (16,230 | ) | 123,651 | |||||||||||
Income before income taxes | 12,272 | 107,908 | (48,665 | ) | 71,515 | |||||||||||
Income taxes | (7,007 | ) | (10,579 | ) | — | (17,586 | ) | |||||||||
Net income | 5,265 | 97,329 | (48,665 | ) | 53,929 | |||||||||||
Noncontrolling interest | — | — | (48,664 | ) | (48,664 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | $ | 5,265 | $ | 97,329 | $ | (97,329 | ) | $ | 5,265 | |||||||
Basic net income per common share | $ | 0.06 | $ | 0.06 | ||||||||||||
Weighted average diluted shares outstanding | 86,481 | 86,481 | ||||||||||||||
Diluted net income per common share | $ | 0.06 | $ | 0.06 | ||||||||||||
Weighted average diluted shares outstanding | 86,550 | 86,550 | ||||||||||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Adjusted Earnings
Nine Months Ended September 30, 2009 | ||||||||||||||||
Boyd Gaming Corp | Boyd Gaming Corp | |||||||||||||||
Consolidated | MDDC LLC | Adjustments | Pro Forma | |||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Net income | $ | 5,265 | $ | 97,329 | $ | (48,665 | ) | $ | 53,929 | |||||||
Noncontrolling interest | — | — | (48,664 | ) | (48,664 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | 5,265 | 97,329 | (97,329 | ) | 5,265 | |||||||||||
Adjustments: | ||||||||||||||||
Preopening expenses | 14,773 | 699 | — | 15,472 | ||||||||||||
Our share of Borgata’s preopening expenses | 349 | — | (349 | ) | — | |||||||||||
Our share of Borgata’s write-downs and other charges, net | (14,308 | ) | — | 14,308 | — | |||||||||||
Other non-operating expenses | 30 | — | — | 30 | ||||||||||||
Gain on early retirements of debt | (12,061 | ) | — | — | (12,061 | ) | ||||||||||
Write-downs and other charges | 41,415 | (28,616 | ) | — | 12,799 | |||||||||||
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 | (12,922 | ) | 6,865 | — | (6,057 | ) | ||||||||||
Adjusted earnings | $ | 31,424 | $ | 76,277 | $ | (83,371 | ) | $ | 24,330 | |||||||
Adjusted earnings per diluted share | $ | 0.36 | $ | 0.28 | ||||||||||||
Weighted average diluted shares outstanding | 86,550 | 86,550 | ||||||||||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Net Revenues and Adjusted EBITDA by Segment
Nine Months Ended September 30, 2009 | ||||||||||||||||
Boyd Gaming Corp | Boyd Gaming Corp | |||||||||||||||
Consolidated | MDDC LLC | Adjustments | Pro Forma | |||||||||||||
(In thousands) | ||||||||||||||||
Net Revenues | ||||||||||||||||
Las Vegas Locals | $ | 486,975 | $ | — | $ | — | $ | 486,975 | ||||||||
Downtown Las Vegas | 171,100 | — | — | 171,100 | ||||||||||||
Midwest and South | 597,963 | — | — | 597,963 | ||||||||||||
Atlantic City | — | 602,000 | — | 602,000 | ||||||||||||
Net revenues | $ | 1,256,038 | $ | 602,000 | $ | — | $ | 1,858,038 | ||||||||
Adjusted EBITDA | ||||||||||||||||
Las Vegas Locals | $ | 120,600 | $ | — | $ | — | $ | 120,600 | ||||||||
Downtown Las Vegas | 33,855 | — | — | 33,855 | ||||||||||||
Midwest and South | 133,811 | — | — | 133,811 | ||||||||||||
Atlantic City | — | 161,211 | — | 161,211 | ||||||||||||
Property Adjusted EBITDA | 288,266 | 161,211 | — | 449,477 | ||||||||||||
Corporate expense | (27,353 | ) | — | — | (27,353 | ) | ||||||||||
260,913 | 161,211 | — | 422,124 | |||||||||||||
Our share of Borgata’s operating income before net amortization, preopening and other items | 50,935 | — | (50,935 | ) | — | |||||||||||
Adjusted EBITDA | 311,848 | 161,211 | (50,935 | ) | 422,124 | |||||||||||
Other operating costs and expenses | ||||||||||||||||
Deferred rent | 3,266 | — | — | 3,266 | ||||||||||||
Depreciation and amortization | 126,297 | 59,339 | — | 185,636 | ||||||||||||
Preopening expenses | 14,773 | 699 | — | 15,472 | ||||||||||||
Our share of Borgata’s preopening expenses | 349 | — | (349 | ) | — | |||||||||||
Our share of Borgata’s write-downs and other charges, net | (14,308 | ) | — | 14,308 | — | |||||||||||
Share-based compensation expense | 9,784 | — | — | 9,784 | ||||||||||||
Write-downs and other charges | 41,415 | (28,616 | ) | — | 12,799 | |||||||||||
Total other operating costs and expenses | 181,576 | 31,422 | 13,959 | 226,957 | ||||||||||||
Operating income | 130,272 | 129,789 | (64,894 | ) | 195,167 | |||||||||||
Other non-operating items | ||||||||||||||||
Interest expense, net | 113,801 | 21,881 | — | 135,682 | ||||||||||||
Gain on early retirements of debt | (12,061 | ) | — | — | (12,061 | ) | ||||||||||
Other non-operating expenses | 30 | — | — | 30 | ||||||||||||
Our share of Borgata’s non-operating expenses, net | 16,230 | — | (16,230 | ) | — | |||||||||||
Total other non-operating costs and expenses, net | 118,000 | 21,881 | (16,230 | ) | 123,651 | |||||||||||
Income before income taxes | 12,272 | 107,908 | (48,664 | ) | 71,516 | |||||||||||
Income taxes | (7,007 | ) | (10,579 | ) | (17,586 | ) | ||||||||||
Net income | 5,265 | 97,329 | (48,664 | ) | 53,930 | |||||||||||
Noncontrolling interest | — | — | (48,666 | ) | (48,666 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | $ | 5,265 | $ | 97,329 | $ | (97,330 | ) | $ | 5,265 | |||||||
BOYD GAMING CORPORATION AND SUBSIDIARIES
Pro Forma Reconciliation of Adjusted EBITDA to EBITDA and Net Income
Nine Months Ended September 30, 2009 | ||||||||||||||||
Boyd Gaming Corp Consolidated | MDDC LLC | Adjustments | Boyd Gaming Corp Pro Forma | |||||||||||||
(In thousands) | ||||||||||||||||
Adjusted EBITDA | $ | 311,848 | $ | 161,211 | $ | (50,935 | ) | $ | 422,124 | |||||||
Deferred rent | 3,266 | — | — | 3,266 | ||||||||||||
Preopening expenses | 14,773 | 699 | — | 15,472 | ||||||||||||
Our share of Borgata’s preopening expenses | 349 | — | (349 | ) | — | |||||||||||
Our share of Borgata’s write-downs and other charges, net | (14,308 | ) | — | 14,308 | — | |||||||||||
Share-based compensation expense | 9,784 | — | — | 9,784 | ||||||||||||
Write-downs and other charges | 41,415 | (28,616 | ) | — | 12,799 | |||||||||||
Gain on early retirements of debt | (12,061 | ) | — | — | (12,061 | ) | ||||||||||
Other non-operating expenses | 30 | — | — | 30 | ||||||||||||
Our share of Borgata’s non-operating expenses, net | 16,230 | — | (16,230 | ) | — | |||||||||||
EBITDA | 252,370 | 189,128 | (48,664 | ) | 392,834 | |||||||||||
Depreciation and amortization | 126,297 | 59,339 | — | 185,636 | ||||||||||||
Interest expense, net | 113,801 | 21,881 | — | 135,682 | ||||||||||||
Income taxes | 7,007 | 10,579 | — | 17,586 | ||||||||||||
Net income | 5,265 | 97,329 | (48,664 | ) | 53,930 | |||||||||||
Noncontrolling interest | — | — | (48,666 | ) | (48,666 | ) | ||||||||||
Net income attributable to Boyd Gaming Corporation | $ | 5,265 | $ | 97,329 | $ | (97,330 | ) | $ | 5,265 | |||||||