Boyd Gaming Reports Second Quarter Results

LAS VEGAS, Aug. 3 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2010.

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For the quarter, we reported net income of $3.4 million, or $0.04 per share, compared to net income of $12.8 million, or $0.15 per share, in the same period last year. Certain pre-tax items resulted in a net increase in income of $1.3 million ($0.8 million, net of tax, or $0.01 per share) during the second quarter 2010. By comparison, the second quarter 2009 included certain pre-tax items that had a net effect of decreasing net income by $3.6 million ($2.3 million, net of tax, or $0.03 per share). Pre-tax items in the second quarter 2010 and 2009 are listed in a table at the end of this press release.

Adjusted Earnings(1) for the second quarter 2010 were $4.2 million, or $0.05 per share, compared to $10.4 million, or $0.12 per share, for the same period in 2009.

Net revenues were $578.4 million for the second quarter 2010, compared to $614.5 million(2) during the same quarter in 2009, a decrease of 5.9%. Total Adjusted EBITDA was $113.5 million for the quarter, a decrease of 19.0% from $140.2 million(2) in the prior year.

Commenting on the quarter, Keith Smith, President and Chief Executive Officer of Boyd Gaming, said "Despite a difficult May and June, our overall performance was consistent with the previous two quarters, and generally in line with our expectations. The lingering effects of the recession have left consumers unusually sensitive to shifts in the economy, and they now react more quickly to economic data and other developments, such as fluctuations in the stock market. Although conditions remain uncertain, we believe long-term stabilizing trends are still in place, and that year-over-year growth is achievable by the end of 2010."

  (1) See footnotes at the end of the release for additional information
   relative to non-GAAP financial measures.
  (2) See financial schedules at the end of this release for
   reconciliations relative to the pro forma effect of the consolidation
   of Borgata as if such consolidation had occurred as of the beginning
   of the period presented.


  Year-To-Date Results

We reported net income for the six months ended June 30, 2010 of $11.8 million, or $0.14 per share. By comparison, we reported a loss of $1.1 million, or $0.01 per share for the six months ended June 30, 2009.

Adjusted Earnings for the six months ended June 30, 2010 were $13.1 million, or $0.15 per share, as compared to $23.4 million, or $0.27 per share for the six-month period in 2009.

Net revenues as reported were $993.6 million and $857.8 million for the six months ended June 30, 2010 and June 30, 2009, respectively. Total Adjusted EBITDA was $204.9 million for the current six-month period. By comparison, total Adjusted EBITDA for the first six months of 2009 was $216.6 million. The 2010 results reflect the consolidation of Borgata, effective March 24, 2010. On a pro forma consolidated basis, as of the beginning of the six month periods ended June 30, 2010 and 2009, net revenues were $1.15 billion and $1.24 billion, respectively. Given the pro forma effect of the consolidation of Borgata, as of the beginning of each period, Adjusted EBITDA on a comparable basis was $229.8 million and $283.4 million for the six-month periods ended June 30, 2010, and 2009, respectively.

  Key Operations Review

  Las Vegas Locals

In our Las Vegas Locals segment, second quarter 2010 net revenues were $153.1 million versus $166.1 million for the second quarter of 2009. Second quarter 2010 Adjusted EBITDA was $36.8 million, a 16.2% decrease from the $43.9 million in the same quarter of 2009. While the decline in the second quarter of 2010 was higher than the previous quarter, it is a marked improvement over the declines we experienced throughout 2009.

Downtown

Our Downtown Las Vegas properties generated net revenues of $55.2 million for the second quarter 2010, compared to $57.6 million in the second quarter 2009. Adjusted EBITDA was $9.3 million, a decrease of 21.2% from $11.8 million in the second quarter 2009. Results in the Downtown region showed sequential quarterly improvement, despite continued lower spend per visit and reduced visitor volumes.

Midwest and South

In our Midwest and South region, we recorded $181.7 million in net revenues for the second quarter 2010, compared to $197.3 million for the same period in 2009. Adjusted EBITDA for the current period was $35.6 million, a decrease of 20.9% from the $45.0 million reported in the second quarter of 2009. Our Louisiana properties continue to account for the majority of the region's year-over-year decline, as they face tough comparable results from the strong levels experienced throughout most of 2009. Overall, the Midwest and South region continued to show trends similar to the previous two quarters.

Borgata

Borgata's net revenues for the second quarter 2010 were $186.9 million, versus $191.5 million in the second quarter 2009. Adjusted EBITDA was $43.0 million, down 9.9% from $47.7 million in the comparable period in 2009. Borgata's quarterly performance was negatively impacted by higher promotional activity from competitors in Pennsylvania, higher utility costs due to unseasonably hot weather, and reduced day trip visitation to the Atlantic City market in June.

Paul Chakmak, Chief Operating Officer of Boyd Gaming, said: "As we expected, our largest decrease came from the Midwest and South Region, where the Louisiana properties will continue to face difficult comparisons to the strong results they posted through the third quarter of 2009. In Las Vegas, the Locals business declined at a slightly higher rate than the first quarter, but still showed marked improvement over the large quarterly declines we saw throughout 2009. In the aggregate, our business performed as anticipated, and we remain on track to continue reducing year-over-year EBITDA declines."

Key Financial Statistics

The following is additional information as of and for the three months ended June 30, 2010:

  --  Cash, excluding Borgata: $78.2 million
  --  Cash at Borgata: $21.9 million
  --  Debt, excluding Borgata: $2.52 billion
  --  Debt at Borgata: $626.9 million


  Conference Call Information

We will host our second quarter 2010 conference call today, August 3, at 12:00 p.m. Eastern. The conference call number is 888.679.8033 and the passcode is 28265494. 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 www.boydgaming.com, www.streetevents.com, or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=95703&eventID= 3223877

Pre-registrants will be issued a pin number to use when dialing into the live call, which will provide quick access to the conference by skipping the operator sequence upon connection.

Following the call's completion, a replay will be available by dialing 888.286.8010 today, August 3, beginning two hours after the completion of the call and continuing through Tuesday, August 10. The passcode for the replay will be 78991526. The replay will also be available on the Internet at www.boydgaming.com .

  The results of Borgata for the period from April 1, 2010 through June
  30, 2010 are included in our condensed consolidated statement of
  operations for the three months ended June 30, 2010, and its results
  for the period from March 24, 2010 through June 30, 2010 are
  included in our condensed consolidated statement of operations for
  the six months ended June 30, 2010.




                                        Three Months Ended
                                             June 30,
                                             --------
                                         2010               2009
                                         ----               ----
                                   (In thousands, except per share data)
  Revenues
      Gaming                         $490,132           $353,597
      Food and beverage                94,020             58,688
      Room                             58,671             32,548
      Other                            33,813             24,486
                                       ------             ------
  Gross revenues                      676,636            469,319
  Less promotional allowances          98,190             46,369
                                       ------             ------
          Net revenues                578,446            422,950
                                      -------            -------

  Costs and expenses
      Gaming                          229,755            167,427
      Food and beverage                49,149             32,114
      Room                             13,056             10,069
      Other                            27,006             19,553
      Selling, general and
       administrative                  99,666             72,618
      Maintenance and utilities        37,970             22,973
      Depreciation and
       amortization                    55,408             42,093
      Corporate expense                13,526             11,036
      Preopening expenses               1,243              4,054
      Write-downs and other
       charges, net                     1,991             (1,835)
          Total costs and expenses    528,770            380,102
                                      -------            -------

  Operating income from
   Borgata                                  -             13,310
  Operating income                     49,676             56,158
                                       ------             ------

  Other expense (income)
      Interest income                       -                  -
      Interest expense, net of
       amounts capitalized             34,650             36,235
      Gain on early retirements of
       debt                            (1,912)            (6,057)
      Other non-operating
       expenses from Borgata, net           -              4,504
          Total other expense, net     32,738             34,682
                                       ------             ------

  Income before income taxes           16,938             21,476
  Income taxes                         (4,912)            (8,698)
                                       ------             ------
  Net income (loss)                    12,026             12,778
  Noncontrolling interest              (8,644)                 -
  Net income (loss)
   attributable to Boyd Gaming
   Corporation                         $3,382            $12,778
                                       ======            =======

  Basic net income (loss) per
   common share                         $0.04              $0.15
                                        =====              =====

  Weighted average basic
   shares outstanding                  86,511             86,254
                                       ======             ======

  Diluted net income (loss)
   per common share                     $0.04              $0.15
                                        =====              =====

  Weighted average diluted
   shares outstanding                  86,942             86,291
                                       ======             ======



                                            Six Months Ended
                                                June 30,
                                                --------
                                            2010               2009
                                            ----               ----
                                   (In thousands, except per share data)
  Revenues
      Gaming                            $840,537           $719,660
      Food and beverage                  154,002            117,729
      Room                                90,105             63,189
      Other                               57,635             51,421
                                          ------             ------
  Gross revenues                       1,142,279            951,999
  Less promotional allowances            148,698             94,204
                                         -------             ------
          Net revenues                   993,581            857,795
                                         -------            -------

  Costs and expenses
      Gaming                             397,860            340,339
      Food and beverage                   81,791             63,498
      Room                                23,106             20,026
      Other                               46,244             38,867
      Selling, general and
       administrative                    169,944            146,591
      Maintenance and utilities           62,109             45,359
      Depreciation and
       amortization                       95,454             84,745
      Corporate expense                   25,615             23,721
      Preopening expenses                  2,306              9,893
      Write-downs and other
       charges, net                        3,592             27,128
          Total costs and expenses       908,021            800,167
                                         -------            -------

  Operating income from
   Borgata                                 8,146             25,732
  Operating income                        93,706             83,360
                                          ------             ------

  Other expense (income)
      Interest income                         (4)                (4)
      Interest expense, net of
       amounts capitalized                63,657             81,506
      Gain on early retirements of
       debt                               (3,949)            (8,457)
      Other non-operating
       expenses from Borgata, net          3,133              9,026
          Total other expense, net        62,837             82,071
                                          ------             ------

  Income before income taxes              30,869              1,289
  Income taxes                            (9,161)            (2,339)
                                          ------             ------
  Net income (loss)                       21,708             (1,050)
  Noncontrolling interest                 (9,891)                 -
  Net income (loss)
   attributable to Boyd Gaming
   Corporation                           $11,817            $(1,050)
                                         =======            =======

  Basic net income (loss) per
   common share                            $0.14             $(0.01)
                                           =====             ======

  Weighted average basic
   shares outstanding                     86,471             86,591
                                          ======             ======

  Diluted net income (loss)
   per common share                        $0.14             $(0.01)
                                           =====             ======

  Weighted average diluted
   shares outstanding                     86,743             86,591
                                          ======             ======




  The following table sets forth the consolidation of Borgata from a
  basis comparable to the historical reporting by Boyd Gaming
  Corporation. For purposes of this presentation, and consistent with
  GAAP, Borgata has been consolidated for the entire period presented,
  or for the period from April 1, 2010 through June 30, 2010. The
  historical column reflects the equity method accounting for Borgata.
  The consolidating columns are presented for purposes of additional
  disclosure and as a reconciliation to the current GAAP presentation
  of Boyd Gaming Corporation.


                                    Three Months Ended June 30, 2010
                                    --------------------------------
                               Boyd Gaming Corp
                                  Historical               MDDC LLC
                                  ----------               --------
                                  (In thousands, except per share data)
  Revenues
      Gaming                            $325,602                $164,530
      Food and beverage                   58,026                  35,994
      Room                                30,967                  27,704
      Other                               23,117                  10,696
  Gross revenues                         437,712                 238,924
  Less promotional
   allowances                             46,158                  52,032
                                          ------                  ------
          Net revenues                   391,554                 186,892
                                         -------                 -------

  Costs and expenses
      Gaming                             162,807                  66,948
      Food and beverage                   31,726                  17,423
      Room                                 9,597                   3,459
      Other                               18,391                   8,615
      Selling, general and
       administrative                     67,825                  31,841
      Maintenance and
       utilities                          22,324                  15,646
      Depreciation and
       amortization                       37,172                  18,236
      Corporate expense                   13,526                       -
      Preopening expenses                  1,243                       -
      Write-downs and other
       charges, net                        1,979                      12
                                           -----                     ---
          Total costs and
           expenses                      366,590                 162,180
                                         -------                 -------

  Operating income from
   Borgata                                12,356                       -
                                          ------                     ---
  Operating income                        37,320                  24,712
                                          ------                  ------

  Other expense (income)
      Interest expense, net
       of amounts capitalized             29,062                   5,588
      Gain on early
       retirements of debt                (1,912)                      -
      Other non-operating
       expenses from Borgata,
       net                                 3,713                       -
                                           -----
          Total other expense,
           net                            30,863                   5,588
                                          ------                   -----

  Income before income
   taxes                                   6,457                  19,124
  Income taxes                            (3,075)                 (1,837)
                                          ------                  ------
  Net income                               3,382                  17,287
  Noncontrolling interest                      -                       -
                                                                     ---
  Net income attributable
   to Boyd Gaming
   Corporation                            $3,382                 $17,287
                                          ======                 =======

  Basic net income per
   common share                            $0.04
                                           =====

  Weighted average basic
   shares outstanding                     86,511
                                          ======

  Diluted net income per
   common share                            $0.04
                                           =====

  Weighted average
   diluted shares
   outstanding                            86,942
                                          ======


                               Three Months Ended June 30, 2010
                               --------------------------------
                                                         Boyd Gaming Corp
                                   Adjustments                 GAAP
                                   -----------                 ----
                               (In thousands, except per share data)
  Revenues
      Gaming                                    $-                $490,132
      Food and beverage                          -                  94,020
      Room                                       -                  58,671
      Other                                      -                  33,813
                                                                    ------
  Gross revenues                                 -                 676,636
  Less promotional
   allowances                                    -                  98,190
                                               ---                  ------
          Net revenues                           -                 578,446
                                               ---                 -------

  Costs and expenses
      Gaming                                     -                 229,755
      Food and beverage                          -                  49,149
      Room                                       -                  13,056
      Other                                      -                  27,006
      Selling, general and
       administrative                            -                  99,666
      Maintenance and
       utilities                                 -                  37,970
      Depreciation and
       amortization                              -                  55,408
      Corporate expense                          -                  13,526
      Preopening expenses                        -                   1,243
      Write-downs and
       other charges, net                        -                   1,991
                                               ---                   -----
          Total costs and
           expenses                              -                 528,770
                                               ---                 -------

  Operating income from
   Borgata                                 (12,356)                      -
                                           -------                     ---
  Operating income                         (12,356)                 49,676
                                           -------                  ------

  Other expense
   (income)
      Interest expense, net
       of amounts
       capitalized                               -                  34,650
      Gain on early
       retirements of debt                       -                  (1,912)
      Other non-operating
       expenses from
       Borgata, net                         (3,713)                      -
          Total other expense,
           net                              (3,713)                 32,738
                                            ------                  ------

  Income before income
   taxes                                    (8,643)                 16,938
  Income taxes                                   -                  (4,912)
                                               ---                  ------
  Net income                                (8,643)                 12,026
  Noncontrolling
   interest                                 (8,644)                 (8,644)
  Net income
   attributable to Boyd
   Gaming Corporation                     $(17,287)                 $3,382
                                          ========                  ======

  Basic net income per
   common share                                                      $0.04
                                                                     =====

  Weighted average
   basic shares
   outstanding                                                      86,511
                                                                    ======

  Diluted net income
   per common share                                                  $0.04
                                                                     =====

  Weighted average
   diluted shares
   outstanding                                                      86,942
                                                                    ======





  The following table sets forth the consolidation
   of Borgata from a basis comparable to the
   historical reporting by Boyd Gaming Corporation.
   For purposes of this presentation, and consistent
   with GAAP, Borgata has been consolidated for the
   period from March 24, 2010 through June 30, 2010.
   The historical  column reflects the equity method
   accounting for Borgata. The consolidating columns
   are presented for purposes of additional
   disclosure and as a reconciliation to the current
   GAAP presentation of Boyd Gaming Corporation.



                                      Six Months Ended June 30, 2010
                                      ------------------------------
                               Boyd Gaming Corp             MDDC LLC
                                                             3/24/2010 to
                                  As Reported                   6/30/2010
                                  -----------               -------------
                                  (In thousands, except per share data)
  Revenues
      Gaming                            $660,062                 $180,475
      Food and beverage                  114,862                   39,140
      Room                                60,153                   29,952
      Other                               46,275                   11,360
  Gross revenues                         881,352                  260,927
  Less promotional
   allowances                             91,439                   57,259
                                          ------                   ------
          Net revenues                   789,913                  203,668
                                         -------                  -------

  Costs and expenses
      Gaming                             326,787                   71,073
      Food and beverage                   61,898                   19,893
      Room                                18,882                    4,224
      Other                               37,051                    9,193
      Selling, general and
       administrative                    136,644                   33,300
      Maintenance and
       utilities                          43,987                   18,122
      Depreciation and
       amortization                       75,593                   19,861
      Corporate expense                   25,615                        -
      Preopening expenses                  2,306                        -
      Write-downs and other
       charges, net                        3,580                       12
                                           -----                      ---
          Total costs and
           expenses                      732,343                  175,678
                                         -------                  -------

  Operating income from
   Borgata                                22,141                        -
                                          ------                      ---
  Operating income                        79,711                   27,990
                                          ------                   ------

  Other expense (income)
      Interest income                         (4)                       -
      Interest expense, net
       of amounts
       capitalized                        57,585                    6,072
      Gain on early
       retirements of debt                (3,949)                       -
      Other non-operating
       expenses from
       Borgata, net                        7,238                        -
                                           -----
          Total other expense,
           net                            60,870                    6,072
                                          ------                    -----

  Income before income
   taxes                                  18,841                   21,918
  Income taxes                            (7,024)                  (2,137)
                                          ------                   ------
  Net income                              11,817                   19,781
  Noncontrolling
   interest                                    -                        -
                                                                      ---
  Net income
   attributable to Boyd
   Gaming Corporation                    $11,817                  $19,781
                                         =======                  =======

  Basic net income per
   common share                            $0.14
                                           =====

  Weighted average basic
   shares outstanding                     86,471
                                          ======

  Diluted net income per
   common share                            $0.14
                                           =====

  Weighted average
   diluted shares
   outstanding                            86,743
                                          ======



                               Six Months Ended June 30, 2010
                               ------------------------------
                                                          Boyd Gaming Corp
                                   Adjustments                  GAAP
                                   -----------                  ----
                               (In thousands, except per share data)
  Revenues
      Gaming                                    $-                 $840,537
      Food and beverage                          -                  154,002
      Room                                       -                   90,105
      Other                                      -                   57,635
                                                                     ------
  Gross revenues                                 -                1,142,279
  Less promotional
   allowances                                    -                  148,698
                                               ---                  -------
          Net revenues                           -                  993,581
                                               ---                  -------

  Costs and expenses
      Gaming                                     -                  397,860
      Food and beverage                          -                   81,791
      Room                                       -                   23,106
      Other                                      -                   46,244
      Selling, general and
       administrative                            -                  169,944
      Maintenance and
       utilities                                 -                   62,109
      Depreciation and
       amortization                              -                   95,454
      Corporate expense                          -                   25,615
      Preopening expenses                        -                    2,306
      Write-downs and
       other charges, net                        -                    3,592
                                               ---                    -----
          Total costs and
           expenses                              -                  908,021
                                               ---                  -------

  Operating income
   from Borgata                            (13,995)                   8,146
                                           -------                    -----
  Operating income                         (13,995)                  93,706
                                           -------                   ------

  Other expense
   (income)
      Interest income                            -                       (4)
      Interest expense,
       net of amounts
       capitalized                               -                   63,657
      Gain on early
       retirements of debt                       -                   (3,949)
      Other non-operating
       expenses from
       Borgata, net                         (4,105)                   3,133
          Total other expense,
           net                              (4,105)                  62,837
                                            ------                   ------

  Income before income
   taxes                                    (9,890)                  30,869
  Income taxes                                   -                   (9,161)
                                               ---                   ------
  Net income                                (9,890)                  21,708
  Noncontrolling
   interest                                 (9,891)                  (9,891)
                                            ------
  Net income
   attributable to
   Boyd Gaming
   Corporation                            $(19,781)                 $11,817
                                          ========                  =======

  Basic net income per
   common share                                                       $0.14
                                                                      =====

  Weighted average
   basic shares
   outstanding                                                       86,471
                                                                     ======

  Diluted net income
   per common share                                                   $0.14
                                                                      =====

  Weighted average
   diluted shares
   outstanding                                                       86,743
                                                                     ======





  The following supplemental pro forma information presents the
  financial results as if the effective control of Borgata had
  occurred on
  January 1, 2009 for the three months ended June 30, 2009. This
  supplemental pro forma information has been prepared for comparative
  purposes and does not purport to be indicative of what the actual
  results would have been had the consolidation of Borgata been
  completed
  as of the earlier dates, nor are they indicative of any future results.



                                     Three Months Ended June 30, 2009
                                     --------------------------------
                               Boyd Gaming Corp
                                 Consolidated               MDDC LLC
                                 ------------               --------
                                   (In thousands, except per share data)
  Revenues
      Gaming                            $353,597                  $173,837
      Food and beverage                   58,688                    34,490
      Room                                32,548                    27,123
      Other                               24,486                    10,302
  Gross revenues                         469,319                   245,752
  Less promotional
   allowances                             46,369                    54,239
                                          ------                    ------
          Net revenues                   422,950                   191,513
                                         -------                   -------

  Costs and expenses
      Gaming                             167,427                    69,814
      Food and beverage                   32,114                    15,290
      Room                                10,069                     2,798
      Other                               19,553                     9,192
      Selling, general and
       administrative                     72,618                    32,864
      Maintenance and
       utilities                          22,973                    13,829
      Depreciation and
       amortization                       42,093                    20,040
      Corporate expense                   11,036                         -
      Preopening expenses                  4,054                       346
      Write-downs and
       other charges, net                 (1,835)                       71
                                          ------                       ---
          Total costs and
           expenses                      380,102                   164,244
                                         -------                   -------

  Operating income from
   Borgata                                13,310                         -
                                          ------                       ---
  Operating income                        56,158                    27,269
                                          ------                    ------

  Other expense
   (income)
      Interest expense, net
       of amounts
       capitalized                        36,235                     7,447
      Gain on early
       retirements of debt                (6,057)                        -
      Other non-operating
       expenses from
       Borgata, net                        4,504                         -
                                           -----                       ---
          Total other expense,
           net                            34,682                     7,447
                                          ------                     -----

  Income before income
   taxes                                  21,476                    19,822
  Income taxes                            (8,698)                   (1,561)
                                          ------                    ------
  Net income                              12,778                    18,261
  Noncontrolling
   interest                                    -                         -
                                                                       ---
  Net income
   attributable to Boyd
   Gaming Corporation                    $12,778                   $18,261
                                         =======                   =======

  Basic net income per
   common share                            $0.15
                                           =====

  Weighted average
   basic shares
   outstanding                            86,254
                                          ======

  Diluted net income
   per common share                        $0.15
                                           =====

  Weighted average
   diluted shares
   outstanding                            86,291
                                          ======



                                     Three Months Ended June 30, 2009
                                     --------------------------------
                                                           Boyd Gaming Corp
                                        Adjustments            Pro Forma
                                        -----------            ---------
                                     (In thousands, except per share data)
  Revenues
      Gaming                                       $-              $527,434
      Food and beverage                             -                93,178
      Room                                          -                59,671
      Other                                         -                34,788
                                                                     ------
  Gross revenues                                    -               715,071
  Less promotional allowances                       -               100,608
                                                  ---               -------
          Net revenues                              -               614,463
                                                  ---               -------

  Costs and expenses
      Gaming                                        -               237,241
      Food and beverage                             -                47,404
      Room                                          -                12,867
      Other                                         -                28,745
      Selling, general and
       administrative                               -               105,482
      Maintenance and utilities                     -                36,802
      Depreciation and amortization               325                62,458
      Corporate expense                             -                11,036
      Preopening expenses                           -                 4,400
      Write-downs and other charges,
       net                                          -                (1,764)
                                                  ---                ------
          Total costs and expenses                325               544,671
                                                  ---               -------

  Operating income from Borgata               (13,310)                    -
                                              -------                   ---
  Operating income                            (13,635)               69,792
                                              -------                ------

  Other expense (income)
      Interest expense, net of
       amounts capitalized                          -                43,682
      Gain on early retirements of
       debt                                         -                (6,057)
      Other non-operating expenses
       from Borgata, net                       (4,504)                    -
                                               ------                   ---
          Total other expense, net             (4,504)               37,625
                                               ------                ------

  Income before income taxes                   (9,131)               32,167
  Income taxes                                      -               (10,259)
                                                  ---               -------
  Net income                                   (9,131)               21,908
  Noncontrolling interest                      (9,130)               (9,130)
                                               ------
  Net income attributable to Boyd
   Gaming Corporation                        $(18,261)              $12,778
                                             ========               =======

  Basic net income per common
   share                                                              $0.15
                                                                      =====

  Weighted average basic shares
   outstanding                                                       86,254
                                                                     ======

  Diluted net income per common
   share                                                              $0.15
                                                                      =====

  Weighted average diluted shares
   outstanding                                                       86,291
                                                                     ======





  The following supplemental pro forma information presents the
  financial results as if the effective control of Borgata had
  occurred on January 1, 2009
   for the six months ended June 30, 2009. This supplemental pro forma
   information has been prepared for comparative purposes and does not
   purport
  to be indicative of what the actual results would have been had the
  consolidation of Borgata been completed as of the earlier dates, nor
  are they indicative
  of any future results.



                                  Six Months Ended June 30, 2009
                                  ------------------------------
                           Boyd Gaming Corp
                             Consolidated               MDDC LLC
                             ------------               --------
                          (In thousands, except share and per share data)
  Revenues
      Gaming                        $719,660                  $342,686
      Food and beverage              117,729                    68,483
      Room                            63,189                    53,164
      Other                           51,421                    19,607
  Gross revenues                     951,999                   483,940
  Less promotional
   allowances                         94,204                   104,537
                                      ------                   -------
          Net revenues               857,795                   379,403
                                     -------                   -------

  Costs and expenses
      Gaming                         340,339                   140,542
      Food and beverage               63,498                    30,077
      Room                            20,026                     5,262
      Other                           38,867                    16,080
      Selling, general
       and
       administrative                146,591                    64,630
      Maintenance and
       utilities                      45,359                    29,160
      Depreciation and
       amortization                   84,745                    40,131
      Corporate expense               23,721                         -
      Preopening
       expenses                        9,893                       699
      Write-downs and
       other charges,
       net                            27,128                        61
                                      ------                       ---
          Total costs and
           expenses                  800,167                   326,642
                                     -------                   -------

  Operating income
   from Borgata                       25,732                         -
                                      ------                       ---
  Operating income                    83,360                    52,761
                                      ------                    ------

  Other expense
   (income)
      Interest income                     (4)                        -
      Interest expense,
       net of amounts
       capitalized                    81,506                    15,458
      Gain on early
       retirements of
       debt                           (8,457)                        -
      Other non-
       operating
       expenses from
       Borgata, net                    9,026                         -
                                       -----                       ---
          Total other
           expense, net               82,071                    15,458
                                      ------                    ------

  Income before
   income taxes                        1,289                    37,303
  Income taxes                        (2,339)                   (2,593)
                                      ------                    ------
  Net income (loss)                   (1,050)                   34,710
  Noncontrolling
   interest                                -                         -
                                                                   ---
  Net income (loss)
   attributable to
   Boyd Gaming
   Corporation                       $(1,050)                  $34,710
                                     =======                   =======

  Basic and diluted
   net loss per
   common share                       $(0.01)
                                      ======

  Weighted average
   basic and diluted
   shares
   outstanding                        86,591
                                      ======




                          Six Months Ended June 30, 2009
                          ------------------------------
                                                Boyd Gaming Corp
                             Adjustments            Pro Forma
                             -----------            ---------
                          (In thousands, except share and per share data)
  Revenues
      Gaming                            $-            $1,062,346
      Food and beverage                  -               186,212
      Room                               -               116,353
      Other                              -                71,028
                                                          ------
  Gross revenues                         -             1,435,939
  Less promotional
   allowances                            -               198,741
                                       ---               -------
          Net revenues                   -             1,237,198
                                       ---             ---------

  Costs and expenses
      Gaming                             -               480,881
      Food and beverage                  -                93,575
      Room                               -                25,288
      Other                              -                54,947
      Selling, general
       and
       administrative                    -               211,221
      Maintenance and
       utilities                         -                74,519
      Depreciation and
       amortization                    649               125,525
      Corporate expense                  -                23,721
      Preopening
       expenses                          -                10,592
      Write-downs and
       other charges,
       net                               -                27,189
                                       ---                ------
          Total costs and
           expenses                    649             1,127,458
                                       ---             ---------

  Operating income
   from Borgata                    (25,732)                    -
                                   -------                   ---
  Operating income                 (26,381)              109,740
                                   -------               -------

  Other expense
   (income)
      Interest income                    -                    (4)
      Interest expense,
       net of amounts
       capitalized                       -                96,964
      Gain on early
       retirements of
       debt                              -                (8,457)
      Other non-
       operating
       expenses from
       Borgata, net                 (9,026)                    -
                                    ------                   ---
          Total other
           expense, net             (9,026)               88,503
                                    ------                ------

  Income before
   income taxes                    (17,355)               21,237
  Income taxes                           -                (4,932)
                                       ---                ------
  Net income (loss)                (17,355)               16,305
  Noncontrolling
   interest                        (17,355)              (17,355)
                                   -------
  Net income (loss)
   attributable to
   Boyd Gaming
   Corporation                    $(34,710)              $(1,050)
                                  ========               =======

  Basic and diluted
   net loss per
   common share                                           $(0.01)
                                                          ======

  Weighted average
   basic and diluted
   shares
   outstanding                                            86,591
                                                          ======





  The following table reconciles the net income (loss) in accordance
  with GAAP to adjusted earnings and adjusted earnings per share.



                                           Three Months Ended
                                                June 30,
                                                --------
                                            2010            2009
                                            ----            ----
                                      (In thousands, except per share data)
  Net income (loss)
   attributable to Boyd Gaming
   Corporation                            $3,382         $12,778
     Adjustments:
        Preopening expenses                1,243           4,054
        Our share of Borgata's
         preopening expenses                   -             173
        Our share of Borgata's write-
         downs and other items, net            6              36
        Gain on early retirements of
         debt                             (1,912)         (6,057)
        Write-downs and other
         charges, net                      1,979          (1,835)
        Prior period interest expense
         related to the finalization
            of our purchase price for
             Dania Jai-Alai                    -               -
        Income tax effect for above
         adjustments                        (468)          1,280
           Adjusted earnings              $4,230         $10,429

        Adjusted earnings per diluted
         share (Adjusted EPS)              $0.05           $0.12

        Weighted average diluted
         shares outstanding               86,942          86,291



                                            Six Months Ended
                                                June 30,
                                                --------
                                            2010            2009
                                            ----            ----
                                      (In thousands, except per share data)
  Net income (loss)
   attributable to Boyd Gaming
   Corporation                           $11,817         $(1,050)
     Adjustments:
        Preopening expenses                2,306           9,893
        Our share of Borgata's
         preopening expenses                   -             349
        Our share of Borgata's write-
         downs and other items, net           40              31
        Gain on early retirements of
         debt                             (3,949)         (8,457)
        Write-downs and other
         charges, net                      3,580          27,128
        Prior period interest expense
         related to the finalization
            of our purchase price for
             Dania Jai-Alai                    -           8,883
        Income tax effect for above
         adjustments                        (702)        (13,346)
           Adjusted earnings             $13,092         $23,431

        Adjusted earnings per diluted
         share (Adjusted EPS)              $0.15           $0.27

        Weighted average diluted
         shares outstanding               86,743          86,591





  The following table illustrates the impact of the above adjustments
  on earnings per share.


                                                     Three Months Ended
                                                          June 30,
                                                          --------
                                                      2010            2009
                                                      ----            ----

  Diluted net income (loss) per common
   share                                             $0.04           $0.15
     Adjustments:
        Preopening expenses                           0.02            0.05
        Our share of Borgata's preopening
         expenses                                        -               -
        Our share of Borgata's write-downs and
         other items, net                                -               -
        Gain on early retirements of debt            (0.03)          (0.07)
        Write-downs and other charges, net            0.02           (0.02)
        Prior period interest expense related to
         the finalization
            of our purchase price for Dania Jai-Alai     -               -
        Income tax effect for above adjustments          -            0.01
           Adjusted earnings per diluted share
            (Adjusted EPS)                           $0.05           $0.12



                                                       Six Months Ended
                                                           June 30,
                                                           --------
                                                       2010            2009
                                                       ----            ----

  Diluted net income (loss) per common share          $0.14          $(0.01)
     Adjustments:
        Preopening expenses                            0.03            0.12
        Our share of Borgata's preopening expenses        -               -
        Our share of Borgata's write-downs and
         other items, net                                 -               -
        Gain on early retirements of debt             (0.05)          (0.10)
        Write-downs and other charges, net             0.04            0.32
        Prior period interest expense related to
         the finalization
            of our purchase price for Dania Jai-Alai      -            0.10
        Income tax effect for above adjustments       (0.01)          (0.16)
           Adjusted earnings per diluted share
            (Adjusted EPS)                            $0.15           $0.27
                                                      =====






  The following table presents Net Revenues and Adjusted EBITDA by
  operating segment and reconciles Adjusted EBITDA to net
   income (loss) attributable to Boyd Gaming Corporation for the three
   and six months ended June 30, 2010 and 2009. Note that
  the results from Dania Jai-Alai are classified as part of total
  other operating costs and expenses and are not included in Adjusted
  EBITDA. Additionally, the results for the three months ended June 30,
  2010, as reported in the table below, reflect the consolidation
  of Borgata for the entire period and the results for the six months
  ended June 30, 2010 reflect the consolidation of Borgata for the
  period from March 24, 2010 through June 30, 2010. The three and six
  month periods ended June 30, 2009 are reported on a
  historical basis.



                                                 Three Months Ended
                                                      June 30,
                                                      --------
                                                  2010              2009
                                                  ----              ----
  Net Revenues                                     (In thousands)
      Las Vegas Locals                        $153,078          $166,127
      Downtown Las Vegas (a)                    55,183            57,577
      Midwest and South                        181,719           197,297
      Atlantic City                            186,892                 -
                                               -------               ---
              Reportable Segment Net revenues  576,872           421,001
      Other                                      1,574             1,949
              Net revenues                    $578,446          $422,950
                                              --------          --------
  Adjusted EBITDA
      Las Vegas Locals                         $36,810           $43,917
      Downtown Las Vegas                         9,310            11,800
      Midwest and South                         35,590            45,010
                                                ------            ------
          Wholly-owned property Adjusted
           EBITDA                               81,710           100,727
          Corporate expense (c)                (11,171)           (8,216)
           Wholly-owned Adjusted EBITDA         70,539            92,511
      Atlantic City                             42,960                 -
          Our share of Borgata's operating
           income before net
            amortization, preopening and
             other items (d)                         -            13,844
              Adjusted EBITDA (e)              113,499           106,355
  Other operating costs and
   expenses
      Deferred rent                              1,067             1,088
      Depreciation and amortization
       (f)                                      55,408            42,418
      Preopening expenses                        1,243             4,054
      Our share of Borgata's
       preopening expenses                           -               173
      Our share of Borgata's write-
       downs and other items, net                    -                36
      Share-based compensation
       expense                                   2,872             3,506
      Write-downs and other charges,
       net                                       1,991            (1,835)
      Other (g)                                  1,242               757
                                                 -----               ---
              Total other operating costs and
               expenses                         63,823            50,197
  Operating income                              49,676            56,158
                                                ------            ------
  Other non-operating items
      Interest expense, net (b)                 34,650            36,235
      Gain on early retirements of
       debt                                     (1,912)           (6,057)
      Our share of Borgata's non-
       operating expenses, net                       -             4,504
              Total other non-operating costs
               and expenses, net                32,738            34,682
  Income (loss) before income
   taxes                                        16,938            21,476
  Income taxes                                  (4,912)           (8,698)
                                                ------            ------
  Net income (loss)                             12,026            12,778
  Noncontrolling interest                       (8,644)                -
                                                ------               ---
  Net income (loss) attributable
   to Boyd Gaming Corporation                   $3,382           $12,778
                                                ======           =======



                                                 Six Months Ended
                                                     June 30,
                                                     --------
                                                2010               2009
                                                ----               ----
  Net Revenues                            (In thousands)
      Las Vegas Locals                      $309,650           $336,226
      Downtown Las Vegas (a)                 109,190            116,243
      Midwest and South                      367,526            401,221
      Atlantic City                          203,668                  -
                                             -------                ---
              Reportable Segment Net
               revenues                      990,034            853,690
      Other                                    3,547              4,105
              Net revenues                  $993,581           $857,795
                                            --------           --------
  Adjusted EBITDA
      Las Vegas Locals                       $77,223            $89,237
      Downtown Las Vegas                      17,682             25,154
      Midwest and South                       74,869             93,598
                                              ------             ------
          Wholly-owned property
           Adjusted EBITDA                   169,774            207,989
          Corporate expense (c)              (20,921)           (18,196)
           Wholly-owned Adjusted EBITDA      148,853            189,793
      Atlantic City                           47,863                  -
          Our share of Borgata's
           operating income before net
            amortization, preopening and
             other items (d)                   8,180             26,761
              Adjusted EBITDA (e)            204,896            216,554
  Other operating costs and
   expenses
      Deferred rent                            2,135              2,177
      Depreciation and amortization
       (f)                                    95,454             85,394
      Preopening expenses                      2,306              9,893
      Our share of Borgata's
       preopening expenses                         -                349
      Our share of Borgata's write-
       downs and other items, net                 34                 31
      Share-based compensation
       expense                                 5,728              6,898
      Write-downs and other
       charges, net                            3,592             27,128
      Other (g)                                1,941              1,324
                                               -----              -----
              Total other operating costs
               and expenses                  111,190            133,194
  Operating income                            93,706             83,360
                                              ------             ------
  Other non-operating items
      Interest expense, net (b)               63,653             81,502
      Gain on early retirements of
       debt                                   (3,949)            (8,457)
      Our share of Borgata's non-
       operating expenses, net                 3,133              9,026
              Total other non-operating
               costs and expenses, net        62,837             82,071
  Income (loss) before income
   taxes                                      30,869              1,289
  Income taxes                                (9,161)            (2,339)
                                              ------             ------
  Net income (loss)                           21,708             (1,050)
  Noncontrolling interest                     (9,891)                 -
                                              ------                ---
  Net income (loss)
   attributable to Boyd Gaming
   Corporation                               $11,817            $(1,050)
                                             =======            =======





  The following table sets forth the consolidation of Borgata from a
  basis comparable to the historical reporting by Boyd Gaming
  Corporation. For purposes
   of this presentation, and consistent with GAAP, Borgata has been
   consolidated for the entire period presented, or for the period from
   April 1, 2010 through
  June 30, 2010. The historical column reflects the equity method
  accounting for Borgata. The consolidating columns are presented for
  purposes of additional
  disclosure and as a reconciliation to the current GAAP presentation
  of Boyd Gaming Corporation.



                                      Three Months Ended June 30, 2010
                                      --------------------------------
                                 Boyd Gaming Corp           MDDC LLC
                                                              4/1/2010 to
                                    Historical                  6/30/2010
                                    ----------               ------------
                                               (In thousands)
  Net Revenues
      Las Vegas Locals                   $153,078                      $-
      Downtown Las Vegas
       (a)                                 55,183                       -
      Midwest and South                   181,719                       -
      Atlantic City                             -                 186,892
                                              ---                 -------
              Reportable Segment
               Net revenues               389,980                 186,892
      Other                                 1,574                       -
              Net revenues               $391,554                $186,892
                                         --------                --------
  Adjusted EBITDA
      Las Vegas Locals                    $36,810                      $-
      Downtown Las Vegas                    9,310                       -
      Midwest and South                    35,590                       -
                                           ------                     ---
          Wholly-owned
           property Adjusted
           EBITDA                          81,710                       -
          Corporate expense
           (c)                            (11,171)                      -
           Wholly-owned
            Adjusted EBITDA                70,539                       -
      Atlantic City                             -                  42,960
          Our share of
           Borgata's
           operating income
           before net
            amortization,
             preopening and
             other items (d)               12,362                       -
              Adjusted EBITDA
               (e)                         82,901                  42,960
  Other operating
   costs and
   expenses                                                             -
      Deferred rent                         1,067                       -
      Depreciation and
       amortization (f)                    37,172                  18,236
      Preopening
       expenses                             1,243                       -
      Our share of
       Borgata's
       preopening
       expenses                                 -                       -
      Our share of
       Borgata's write-
       downs and other
       items, net                               6                       -
      Share-based
       compensation
       expense                              2,872                       -
      Write-downs and
       other charges,
       net                                  1,979                      12
      Other                                 1,242                       -
                                            -----                     ---
              Total other
               operating costs
               and expenses                45,581                  18,248
  Operating income                         37,320                  24,712
                                           ------                  ------
  Other non-
   operating items
      Interest expense,
       net (b)                             29,062                   5,588
      Gain on early
       retirements of
       debt                                (1,912)                      -
      Our share of
       Borgata's non-
       operating
       expenses, net                        3,713                       -
              Total other non-
               operating costs
               and expenses, net           30,863                   5,588
  Income before
   income taxes                             6,457                  19,124
  Income taxes                             (3,075)                 (1,837)
                                           ------                  ------
  Net income                                3,382                  17,287
  Noncontrolling
   interest                                     -                       -
                                              ---                     ---
  Net income
   attributable to
   Boyd Gaming
   Corporation                             $3,382                 $17,287
                                           ======                 =======



                                 Three Months Ended June 30, 2010
                                 --------------------------------
                                                      Boyd Gaming Corp
                                 Adjustments                GAAP
                                 -----------                ----
                                   (In thousands)
  Net Revenues
      Las Vegas Locals                    $-                     $153,078
      Downtown Las Vegas
       (a)                                 -                       55,183
      Midwest and South                    -                      181,719
      Atlantic City                        -                      186,892
                                         ---                      -------
              Reportable Segment
               Net revenues                -                      576,872
      Other                                -                        1,574
              Net revenues                $-                     $578,446
                                         ---                     --------
  Adjusted EBITDA
      Las Vegas Locals                    $-                      $36,810
      Downtown Las Vegas                   -                        9,310
      Midwest and South                    -                       35,590
                                         ---                       ------
          Wholly-owned
           property Adjusted
           EBITDA                          -                       81,710
          Corporate expense
           (c)                             -                      (11,171)
           Wholly-owned
            Adjusted EBITDA                -                       70,539
      Atlantic City                        -                       42,960
          Our share of
           Borgata's
           operating income
           before net
            amortization,
             preopening and
             other items (d)         (12,362)                           -
              Adjusted EBITDA
               (e)                   (12,362)                     113,499
  Other operating
   costs and
   expenses                                -
      Deferred rent                        -                        1,067
      Depreciation and
       amortization (f)                    -                       55,408
      Preopening
       expenses                            -                        1,243
      Our share of
       Borgata's
       preopening
       expenses                            -                            -
      Our share of
       Borgata's write-
       downs and other
       items, net                         (6)                           -
      Share-based
       compensation
       expense                             -                        2,872
      Write-downs and
       other charges,
       net                                 -                        1,991
      Other                                -                        1,242
                                         ---
              Total other
               operating costs
               and expenses               (6)                      63,823
                                                                   ------
  Operating income                   (12,356)                      49,676
                                     -------                       ------
  Other non-
   operating items
      Interest expense,
       net (b)                             -                       34,650
      Gain on early
       retirements of
       debt                                                        (1,912)
      Our share of
       Borgata's non-
       operating
       expenses, net                  (3,713)                           -
              Total other non-
               operating costs
               and expenses, net      (3,713)                      32,738
  Income before
   income taxes                       (8,643)                      16,938
  Income taxes                             -                       (4,912)
                                         ---                       ------
  Net income                          (8,643)                      12,026
  Noncontrolling
   interest                           (8,644)                      (8,644)
                                      ------
  Net income
   attributable to
   Boyd Gaming
   Corporation                      $(17,287)                      $3,382
                                    ========                       ======





  The following supplemental pro forma information presents the
  financial results as if the effective control of Borgata had
  occurred on January 1, 2010,
   for the six months ended June 30, 2010. This supplemental pro forma
   information has been prepared for comparative purposes and does not
   purport to
  be indicative of what the actual results would have been had the
  consolidation of Borgata been completed as of the earlier dates, nor
  are they indicative
  of any future results.



                                       Six Months Ended June 30, 2010
                                       ------------------------------
                                 Boyd Gaming Corp           MDDC LLC
                                                              1/1/2010 to
                                    As Reported                 3/23/2010
                                    -----------              ------------
                                               (In thousands)
  Net Revenues
      Las Vegas Locals                   $309,650                      $-
      Downtown Las Vegas
       (a)                                109,190                       -
      Midwest and South                   367,526                       -
      Atlantic City                       203,668                 158,289
                                          -------                 -------
              Reportable Segment
               Net revenues               990,034                 158,289
      Other                                 3,547                       -
              Net revenues               $993,581                $158,289
                                         --------                --------
  Adjusted EBITDA
      Las Vegas Locals                    $77,223                      $-
      Downtown Las Vegas                   17,682                       -
      Midwest and South                    74,869                       -
                                           ------                     ---
          Wholly-owned
           property Adjusted
           EBITDA                         169,774                       -
          Corporate expense
           (c)                            (20,921)                      -
           Wholly-owned
            Adjusted EBITDA               148,853                       -
      Atlantic City                        47,863                  33,113
          Our share of
           Borgata's
           operating income
           before net
            amortization,
             preopening and
             other items (d)                8,180                       -
              Adjusted EBITDA
               (e)                        204,896                  33,113
  Other operating
   costs and
   expenses                                                             -
      Deferred rent                         2,135                       -
      Depreciation and
       amortization (f)                    95,454                  16,754
      Preopening
       expenses                             2,306                       -
      Our share of
       Borgata's
       preopening
       expenses                                 -                       -
      Our share of
       Borgata's write-
       downs and other
       items, net                              34                       -
      Share-based
       compensation
       expense                              5,728                       -
      Write-downs and
       other charges,
       net                                  3,592                      68
      Other                                 1,941                       -
                                            -----                     ---
              Total other
               operating costs
               and expenses               111,190                  16,822
  Operating income                         93,706                  16,291
                                           ------                  ------
  Other non-
   operating items
      Interest expense,
       net (b)                             63,653                   5,060
      Gain on early
       retirements of
       debt                                (3,949)                      -
      Our share of
       Borgata's non-
       operating
       expenses, net                        3,133                       -
              Total other non-
               operating costs
               and expenses, net           62,837                   5,060
  Income before
   income taxes                            30,869                  11,231
  Income taxes                             (9,161)                 (1,206)
                                           ------                  ------
  Net income                               21,708                  10,025
  Noncontrolling
   interest                                (9,891)                      -
                                           ------                     ---
  Net income
   attributable to
   Boyd Gaming
   Corporation                            $11,817                 $10,025
                                          =======                 =======



                                 Six Months Ended June 30, 2010
                                 ------------------------------
                                                      Boyd Gaming Corp
                                 Adjustments             Pro Forma
                                 -----------             ---------
                                   (In thousands)
  Net Revenues
      Las Vegas Locals                    $-                     $309,650
      Downtown Las Vegas
       (a)                                 -                      109,190
      Midwest and South                    -                      367,526
      Atlantic City                        -                      361,957
                                         ---                      -------
              Reportable Segment
               Net revenues                -                    1,148,323
      Other                                -                        3,547
              Net revenues                $-                   $1,151,870
                                         ---                   ----------
  Adjusted EBITDA
      Las Vegas Locals                    $-                      $77,223
      Downtown Las Vegas                   -                       17,682
      Midwest and South                    -                       74,869
                                         ---                       ------
          Wholly-owned
           property Adjusted
           EBITDA                          -                      169,774
          Corporate expense
           (c)                             -                      (20,921)
           Wholly-owned
            Adjusted EBITDA                -                      148,853
      Atlantic City                        -                       80,976
          Our share of
           Borgata's
           operating income
           before net                                                   -
            amortization,
             preopening and
             other items (d)          (8,180)                           -
              Adjusted EBITDA
               (e)                    (8,180)                     229,829
  Other operating
   costs and
   expenses                                -
      Deferred rent                        -                        2,135
      Depreciation and
       amortization (f)                    -                      112,208
      Preopening
       expenses                            -                        2,306
      Our share of
       Borgata's
       preopening
       expenses                            -                            -
      Our share of
       Borgata's write-
       downs and other
       items, net                        (34)                           -
      Share-based
       compensation
       expense                             -                        5,728
      Write-downs and
       other charges,
       net                                 -                        3,660
      Other                                -                        1,941
                                         ---
              Total other
               operating costs
               and expenses              (34)                     127,978
                                                                  -------
  Operating income                    (8,146)                     101,851
                                      ------                      -------
  Other non-
   operating items
      Interest expense,
       net (b)                             -                       68,713
      Gain on early
       retirements of
       debt                                -                       (3,949)
      Our share of
       Borgata's non-
       operating
       expenses, net                  (3,133)                           -
              Total other non-
               operating costs
               and expenses, net      (3,133)                      64,764
  Income before
   income taxes                       (5,013)                      37,087
  Income taxes                             -                      (10,367)
                                         ---                      -------
  Net income                          (5,013)                      26,720
  Noncontrolling
   interest                           (5,012)                     (14,903)
                                      ------
  Net income
   attributable to
   Boyd Gaming
   Corporation                      $(10,025)                     $11,817
                                    ========                      =======





  The following supplemental pro forma information presents the
  financial results as if the effective control of Borgata had
  occurred on April 1, 2009.
  This supplemental pro forma information has been prepared for
  comparative purposes and does not purport to be indicative of what
  the actual results
  would have been had the consolidation of Borgata been completed as of
  the earlier dates, nor are they indicative of any future results.



                                      Three Months Ended June 30, 2009
                                      --------------------------------
                                 Boyd Gaming Corp           MDDC LLC
                                                              4/1/2009 to
                                    As Reported                 6/30/2009
                                    -----------              ------------
                                               (In thousands)
  Net Revenues
      Las Vegas Locals                   $166,127                      $-
      Downtown Las Vegas
       (a)                                 57,577                       -
      Midwest and South                   197,297                       -
      Atlantic City                             -                 191,513
                                              ---                 -------
              Reportable Segment
               Net revenues               421,001                 191,513
      Other                                 1,949                       -
              Net revenues               $422,950                $191,513
                                         --------                --------
  Adjusted EBITDA
      Las Vegas Locals                    $43,917                      $-
      Downtown Las Vegas                   11,800                       -
      Midwest and South                    45,010                       -
                                           ------                     ---
          Wholly-owned
           property Adjusted
           EBITDA                         100,727                       -
          Corporate expense
           (c)                             (8,216)                      -
           Wholly-owned
            Adjusted EBITDA                92,511                       -
      Atlantic City                             -                  47,726
          Our share of
           Borgata's
           operating income
           before net
            amortization,
             preopening and
             other items (d)               13,844                       -
              Adjusted EBITDA
               (e)                        106,355                  47,726
  Other operating
   costs and
   expenses                                                             -
      Deferred rent                         1,088                       -
      Depreciation and
       amortization (f)                    42,418                  20,040
      Preopening
       expenses                             4,054                     346
      Our share of
       Borgata's
       preopening
       expenses                               173                       -
      Our share of
       Borgata's write-
       downs and other
       items, net                              36                       -
      Share-based
       compensation
       expense                              3,506                       -
      Write-downs and
       other charges,
       net                                 (1,835)                     71
      Other                                   757                       -
                                              ---                     ---
              Total other
               operating costs
               and expenses                50,197                  20,457
  Operating income                         56,158                  27,269
                                           ------                  ------
  Other non-
   operating items
      Interest expense,
       net (b)                             36,235                   7,447
      Gain on early
       retirements of
       debt                                (6,057)                      -
      Our share of
       Borgata's non-
       operating
       expenses, net                        4,504                       -
              Total other non-
               operating costs
               and expenses, net           34,682                   7,447
  Income before
   income taxes                            21,476                  19,822
  Income taxes                             (8,698)                 (1,561)
                                           ------                  ------
  Net income                               12,778                  18,261
  Noncontrolling
   interest                                     -                       -
                                              ---                     ---
  Net income
   attributable to
   Boyd Gaming
   Corporation                            $12,778                 $18,261
                                          =======                 =======



                                 Three Months Ended June 30, 2009
                                 --------------------------------
                                                      Boyd Gaming Corp
                                 Adjustments             Pro Forma
                                 -----------             ---------
                                   (In thousands)
  Net Revenues
      Las Vegas Locals                    $-                     $166,127
      Downtown Las Vegas
       (a)                                 -                       57,577
      Midwest and South                    -                      197,297
      Atlantic City                        -                      191,513
                                         ---                      -------
              Reportable Segment
               Net revenues                -                      612,514
      Other                                -                        1,949
              Net revenues                $-                     $614,463
                                         ---                     --------
  Adjusted EBITDA
      Las Vegas Locals                    $-                      $43,917
      Downtown Las Vegas                   -                       11,800
      Midwest and South                    -                       45,010
                                         ---                       ------
          Wholly-owned
           property Adjusted
           EBITDA                          -                      100,727
          Corporate expense
           (c)                             -                       (8,216)
           Wholly-owned
            Adjusted EBITDA                -                       92,511
      Atlantic City                        -                       47,726
          Our share of
           Borgata's
           operating income
           before net                                                   -
            amortization,
             preopening and
             other items (d)         (13,844)                           -
              Adjusted EBITDA
               (e)                   (13,844)                     140,237
  Other operating
   costs and
   expenses                                -
      Deferred rent                        -                        1,088
      Depreciation and
       amortization (f)                    -                       62,458
      Preopening
       expenses                            -                        4,400
      Our share of
       Borgata's
       preopening
       expenses                         (173)                           -
      Our share of
       Borgata's write-
       downs and other
       items, net                        (36)                           -
      Share-based
       compensation
       expense                             -                        3,506
      Write-downs and
       other charges,
       net                                 -                       (1,764)
      Other                                -                          757
                                         ---
              Total other
               operating costs
               and expenses             (209)                      70,445
                                                                   ------
  Operating income                   (13,635)                      69,792
                                     -------                       ------
  Other non-
   operating items
      Interest expense,
       net (b)                             -                       43,682
      Gain on early
       retirements of
       debt                                -                       (6,057)
      Our share of
       Borgata's non-
       operating
       expenses, net                  (4,504)                           -
              Total other non-
               operating costs
               and expenses, net      (4,504)                      37,625
  Income before
   income taxes                       (9,131)                      32,167
  Income taxes                             -                      (10,259)
                                         ---                      -------
  Net income                          (9,131)                      21,908
  Noncontrolling
   interest                           (9,130)                      (9,130)
                                      ------
  Net income
   attributable to
   Boyd Gaming
   Corporation                      $(18,261)                     $12,778
                                    ========                      =======





  The following supplemental pro forma information presents the
  financial results as if the effective control of Borgata had
  occurred on January 1, 2009,
  for the six months ended June 30, 2009. This supplemental pro forma
  information has been prepared for comparative purposes and does not
  purport to
  be indicative of what the actual results would have been had the
  consolidation of Borgata been completed as of the earlier dates, nor
  are they indicative
  of any future results.



                                       Six Months Ended June 30, 2009
                                       ------------------------------
                                 Boyd Gaming Corp           MDDC LLC
                                                              1/1/2009 to
                                    As Reported                 6/30/2009
                                    -----------              ------------
                                               (In thousands)
  Net Revenues
      Las Vegas Locals                   $336,226                      $-
      Downtown Las Vegas
       (a)                                116,243                       -
      Midwest and South                   401,221                       -
      Atlantic City                             -                 379,403
                                              ---                 -------
              Reportable Segment
               Net revenues               853,690                 379,403
      Other                                 4,105                       -
              Net revenues               $857,795                $379,403
                                         --------                --------
  Adjusted EBITDA
      Las Vegas Locals                    $89,237                      $-
      Downtown Las Vegas                   25,154                       -
      Midwest and South                    93,598                       -
                                           ------                     ---
          Wholly-owned
           property Adjusted
           EBITDA                         207,989                       -
          Corporate expense
           (c)                            (18,196)                      -
           Wholly-owned
            Adjusted EBITDA               189,793                       -
      Atlantic City                             -                  93,652
          Our share of
           Borgata's
           operating income
           before net
            amortization,
             preopening and
             other items (d)               26,761                       -
              Adjusted EBITDA
               (e)                        216,554                  93,652
  Other operating
   costs and
   expenses                                                             -
      Deferred rent                         2,177                       -
      Depreciation and
       amortization (f)                    85,394                  40,131
      Preopening
       expenses                             9,893                     699
      Our share of
       Borgata's
       preopening
       expenses                               349                       -
      Our share of
       Borgata's write-
       downs and other
       items, net                              31                       -
      Share-based
       compensation
       expense                              6,898                       -
      Write-downs and
       other charges,
       net                                 27,128                      61
      Other                                 1,324                       -
                                            -----                     ---
              Total other
               operating costs
               and expenses               133,194                  40,891
  Operating income                         83,360                  52,761
                                           ------                  ------
  Other non-
   operating items
      Interest expense,
       net (b)                             81,502                  15,458
      Gain on early
       retirements of
       debt                                (8,457)                      -
      Our share of
       Borgata's non-
       operating
       expenses, net                        9,026                       -
              Total other non-
               operating costs
               and expenses, net           82,071                  15,458
  Income before
   income taxes                             1,289                  37,303
  Income taxes                             (2,339)                 (2,593)
                                           ------                  ------
  Net income (loss)                        (1,050)                 34,710
  Noncontrolling
   interest                                     -                       -
                                              ---                     ---
  Net income (loss)
   attributable to
   Boyd Gaming
   Corporation                            $(1,050)                $34,710
                                          =======                 =======



                                     Six Months Ended June 30, 2009
                                     ------------------------------
                                                       Boyd Gaming Corp
                                     Adjustments           Pro Forma
                                     -----------           ---------
                                       (In thousands)
  Net Revenues
      Las Vegas Locals                        $-                $336,226
      Downtown Las Vegas (a)                   -                 116,243
      Midwest and South                        -                 401,221
      Atlantic City                            -                 379,403
                                             ---                 -------
              Reportable Segment Net
               revenues                        -               1,233,093
      Other                                    -                   4,105
              Net revenues                    $-              $1,237,198
                                             ---              ----------
  Adjusted EBITDA
      Las Vegas Locals                        $-                 $89,237
      Downtown Las Vegas                       -                  25,154
      Midwest and South                        -                  93,598
                                             ---                  ------
          Wholly-owned property
           Adjusted EBITDA                     -                 207,989
          Corporate expense (c)                -                 (18,196)
           Wholly-owned Adjusted
            EBITDA                             -                 189,793
      Atlantic City                            -                  93,652
          Our share of Borgata's
           operating income
           before net                                                  -
            amortization,
             preopening and other
             items (d)                   (26,761)                      -
              Adjusted EBITDA (e)        (26,761)                283,445
  Other operating costs
   and expenses                                -
      Deferred rent                            -                   2,177
      Depreciation and
       amortization (f)                        -                 125,525
      Preopening expenses                      -                  10,592
      Our share of Borgata's
       preopening expenses                  (349)                      -
      Our share of Borgata's
       write-downs and other
       items, net                            (31)                      -
      Share-based
       compensation expense                    -                   6,898
      Write-downs and other
       charges, net                            -                  27,189
      Other                                    -                   1,324
                                             ---
              Total other operating
               costs and expenses           (380)                173,705
                                                                 -------
  Operating income                       (26,381)                109,740
                                         -------                 -------
  Other non-operating
   items
      Interest expense, net
       (b)                                     -                  96,960
      Gain on early
       retirements of debt                     -                  (8,457)
      Our share of Borgata's
       non-operating
       expenses, net                      (9,026)                      -
              Total other non-
               operating costs and
               expenses, net              (9,026)                 88,503
  Income before income
   taxes                                 (17,355)                 21,237
  Income taxes                                 -                  (4,932)
                                             ---                  ------
  Net income (loss)                      (17,355)                 16,305
  Noncontrolling interest                (17,355)                (17,355)
                                         -------
  Net income (loss)
   attributable to Boyd
   Gaming Corporation                   $(34,710)                $(1,050)
                                        ========                 =======



  (c) The following table reconciles the presentation of corporate expense
   on our condensed consolidated statements of
       operations to the presentation on the accompanying table.




  (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
                                                  June 30,
                                                  --------
                                              2010             2009
                                              ----             ----
                                               (In thousands)
  Corporate expense as reported on our
   condensed
     consolidated statements of operations $13,526          $11,036
  Corporate share-based compensation
   expense                                  (2,355)          (2,820)
  Corporate expense as reported on the
   accompanying table                      $11,171           $8,216


                                                       Six Months Ended
                                                           June 30,
                                                           --------
                                                       2010            2009
                                                       ----            ----
                                                  (In thousands)
  Corporate expense as reported on our
   condensed
     consolidated statements of operations          $25,615         $23,721
  Corporate share-based compensation
   expense                                           (4,694)         (5,525)
  Corporate expense as reported on the
   accompanying table                               $20,921         $18,196



  (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.





  (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
                                                    June 30,
                                                    --------
                                                2010             2009
                                                ----             ----

                                                 (In thousands)
  Operating income from Borgata, as
   reported on our
       condensed consolidated statements of
        operations                                $-          $13,310
  Add back:
      Net amortization expense related to our
          investment in Borgata                    -              325
      Our share of preopening expenses             -              173
      Our share of write-downs and other
       items, net                                  -               36
  Our share of Borgata's operating income
   before net
      amortization, preopening and other items
      as reported on the accompanying table       $-          $13,844



                                                    Six Months Ended
                                                        June 30,
                                                        --------
                                                    2010             2009
                                                    ----             ----
                                               (In thousands)
  Operating income from Borgata, as
   reported on our
       condensed consolidated statements of
        operations                                $8,146          $25,732
  Add back:
      Net amortization expense related to our
          investment in Borgata                        -              649
      Our share of preopening expenses                 -              349
      Our share of write-downs and other
       items, net                                     34               31
  Our share of Borgata's operating income
   before net
      amortization, preopening and other items
      as reported on the accompanying table       $8,180          $26,761



  (e) The following table reconciles Adjusted EBITDA to EBITDA and net
   income (loss) attributable to Boyd Gaming.




  (e) The following table reconciles Adjusted EBITDA to EBITDA and net 
      income (loss) attributable to Boyd Gaming.



                                                Three Months Ended
                                                     June 30,
                                                     --------
                                                 2010              2009
                                                 ----              ----
                                                  (In thousands)
  Adjusted EBITDA                            $113,499          $106,355
      Deferred rent                             1,067             1,088
      Preopening expenses                       1,243             4,054
      Our share of Borgata's preopening
       expenses                                     -               173
      Our share of Borgata's write-downs and
       other items, net                             -                36
      Share-based compensation expense          2,872             3,506
      Write-downs and other charges, net        1,991            (1,835)
      Gain on early retirements of debt        (1,912)           (6,057)
      Other non-operating expenses from
       Borgata, net                                 -             4,504
      Other                                     1,242               757
  EBITDA                                      106,996           100,129
      Depreciation and amortization            55,408            42,418
      Interest expense, net                    34,650            36,235
      Income taxes                              4,912             8,698

  Net income (loss)                           $12,026           $12,778
  Noncontrolling interest                      (8,644)                -
  Net income (loss) attributable to Boyd
   Gaming Corporation                          $3,382           $12,778
                                               ======           =======



                                               Six Months Ended
                                                   June 30,
                                                   --------
                                               2010              2009
                                               ----              ----
                                         (In thousands)
  Adjusted EBITDA                          $204,896          $216,554
      Deferred rent                           2,135             2,177
      Preopening expenses                     2,306             9,893
      Our share of Borgata's preopening
       expenses                                   -               349
      Our share of Borgata's write-downs
       and other items, net                      34                31
      Share-based compensation expense        5,728             6,898
      Write-downs and other charges, net      3,592            27,128
      Gain on early retirements of debt      (3,949)           (8,457)
      Other non-operating expenses from
       Borgata, net                           3,133             9,026
      Other                                   1,941             1,324
  EBITDA                                    189,976           168,185
      Depreciation and amortization          95,454            85,394
      Interest expense, net                  63,653            81,502
      Income taxes                            9,161             2,339

  Net income (loss)                         $21,708           $(1,050)
  Noncontrolling interest                    (9,891)                -
  Net income (loss) attributable to
   Boyd Gaming Corporation                  $11,817           $(1,050)
                                            =======           =======



  (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.




  (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
                                                  June 30,
                                                  --------
                                             2010              2009
                                             ----              ----
                                               (In thousands)
  Depreciation and amortization as
   reported on our
     condensed consolidated statements of
      operations                          $55,408           $42,093
  Net amortization expense related to our
   investment in Borgata                        -               325
  Depreciation and amortization as
   reported on
     the accompanying table               $55,408           $42,418


                                                -                 -



                                               Six Months Ended
                                                   June 30,
                                                   --------
                                               2010             2009
                                               ----             ----
                                          (In thousands)
  Depreciation and amortization as
   reported on our
     condensed consolidated statements of
      operations                            $95,454          $84,745
  Net amortization expense related to our
   investment in Borgata                          -              649
  Depreciation and amortization as
   reported on
     the accompanying table                 $95,454          $85,394





  The following table reports Borgata's financial results.



                                              Three Months Ended
                                                   June 30,
                                                   --------
                                               2010              2009
                                               ----              ----
                                                (In thousands)
  Gaming revenue                           $164,530          $173,837
  Non-gaming revenue                         74,394            71,915
      Gross revenues                        238,924           245,752
      Less promotional allowances            52,032            54,239
  Net revenues                              186,892           191,513
  Operating expenses                        143,932           143,787
  Depreciation and
   amortization                              18,236            20,040
  Preopening expenses                             -               346
  Write-downs and other
   items, net                                    12                71
      Operating income                       24,712            27,269
  Interest expense, net                      (5,588)           (7,447)
  Provision for state income
   taxes                                     (1,837)           (1,561)
      Total non-operating
       expenses                              (7,425)           (9,008)
  Net income                                $17,287           $18,261



                                               Six Months Ended
                                                   June 30,
                                                   --------
                                              2010               2009
                                              ----               ----
                                        (In thousands)
  Gaming revenue                          $318,306           $342,686
  Non-gaming revenue                       145,002            141,254
      Gross revenues                       463,308            483,940
      Less promotional allowances          101,350            104,537
  Net revenues                             361,958            379,403
  Operating expenses                       280,981            285,751
  Depreciation and
   amortization                             36,615             40,131
  Preopening expenses                            -                699
  Write-downs and other
   items, net                                   80                 61
      Operating income                      44,282             52,761
  Interest expense, net                    (11,132)           (15,458)
  Provision for state income
   taxes                                    (3,343)            (2,593)
      Total non-operating
       expenses                            (14,475)           (18,051)
  Net income                               $29,807            $34,710





  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
                                                  June 30,
                                                  --------
                                              2010             2009
                                              ----             ----
                                               (In thousands)
  Our share of Borgata's operating income       $-          $13,635
  Net amortization expense related to our
      investment in Borgata                      -             (325)
                                               ---             ----
  Operating income from Borgata, as reported
   on our
      condensed consolidated statements of
       operations                               $-          $13,310
                                               ===          =======

  Other non-operating expenses from Borgata,
   as reported on our
      condensed consolidated statements of
       operations                               $-           $4,504



                                                Six Months Ended
                                                    June 30,
                                                    --------
                                                2010            2009
                                                ----            ----
                                           (In thousands)
  Our share of Borgata's operating income     $8,146         $26,381
  Net amortization expense related to our
      investment in Borgata                        -            (649)
                                                 ---            ----
  Operating income from Borgata, as
   reported on our
      condensed consolidated statements of
       operations                             $8,146         $25,732
                                              ======         =======

  Other non-operating expenses from
   Borgata, as reported on our
      condensed consolidated statements of
       operations                             $3,133          $9,026





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



                                               Three Months Ended
                                                    June 30,
                                                    --------
                                                2010              2009
                                                ----              ----
                                                 (In thousands)
  Operating income                           $24,712           $27,269
      Depreciation and amortization           18,236            20,040
      Preopening expenses                          -               346
      Write-downs and other items,
       net                                        12                71
                                                 ---               ---
  Adjusted EBITDA                            $42,960           $47,726



                                                Six Months Ended
                                                    June 30,
                                                    --------
                                                2010              2009
                                                ----              ----
                                          (In thousands)
  Operating income                           $44,282           $52,761
      Depreciation and amortization           36,615            40,131
      Preopening expenses                          -               699
      Write-downs and other items,
       net                                        80                61
  Adjusted EBITDA                            $80,977           $93,652





  The following table reconciles Adjusted EBITDA to EBITDA and net
  income for Borgata.



                                                Three Months Ended
                                                     June 30,
                                                     --------
                                                 2010              2009
                                                 ----              ----
                                                  (In thousands)
  Adjusted EBITDA                             $42,960           $47,726
      Preopening expenses                           -               346
      Write-downs and other items,
       net                                         12                71
  EBITDA                                       42,948            47,309
      Depreciation and amortization            18,236            20,040
      Interest expense, net                     5,588             7,447
      Provision for income taxes                1,837             1,561
  Net income                                  $17,287           $18,261

                                                    -                 -



                                               Six Months Ended
                                                   June 30,
                                                   --------
                                               2010             2009
                                               ----             ----
                                          (In thousands)
  Adjusted EBITDA                           $80,977          $93,652
      Preopening expenses                         -              699
      Write-downs and other items,
       net                                       80               61
  EBITDA                                     80,897           92,892
      Depreciation and amortization          36,615           40,131
      Interest expense, net                  11,132           15,458
      Provision for income taxes              3,343            2,593
  Net income                                $29,807          $34,710

                                                  -                -

  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, Adjusted Earnings Per Share (Adjusted EPS) and net revenues (excluding the 8 days of consolidation for Borgata). The following discussion defines these terms and why we believe they are useful measures of our performance.

In the accompanying release, and the Company's periodic reports filed with the Securities and Exchange Commission, Dania Jai-Alai's results are included as part of total other operating costs and expenses. In addition, as of the same date, we reclassified the reporting of corporate expense to exclude it from our subtotal for Reportable Segment Adjusted EBITDA and include it as part of total other operating costs and expenses. Furthermore, in the Company's periodic reports, corporate expense is presented to include its portion of share-based compensation expense.

Net Revenues

Net revenues are commonly displayed on the face of our condensed consolidated statement of operations in accordance with Generally Accepted Accounting Principles in the United States ("GAAP") to represent our gross revenues less promotional allowances. While the term is used throughout this release to refer to such presentation, in certain instances it also includes an additional net amount representing the exclusion of the eight days of the consolidation of Borgata. A reconciliation of net revenues is included in the financial schedules accompanying this release. We reflect net revenues in this earnings release net of the consolidated results of Borgata since March 24, 2010 in order to provide comparability among periods. We think that the presentation of net revenues in this manner, for this earnings release, provides investors with a better ability to assess our business from period to period.

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 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, net, increase in value of derivative instruments, gain on early retirements of debt, other non-operating expenses, and our share of Borgata's non-operating expenses, preopening expenses and other items and write-downs, net. In addition, Adjusted EBITDA includes corporate expense. A reconciliation of Adjusted EBITDA to EBITDA and net income (loss), based upon GAAP, is included in the financial schedules accompanying this release.

Adjusted Earnings and Adjusted EPS

Adjusted Earnings is net income (loss) before preopening expenses, increase in value of derivative instruments, write-downs and other charges, net, gain on early retirements of debt, prior period interest expense related to the finalization of our purchase price for Dania Jai-Alai, accelerated interest expense related to our bank credit facility amendment, certain one-time permanent tax readjustments, other non-operating expenses, and our share of Borgata's preopening expenses and other items and write-downs, 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 net loss based upon GAAP to Adjusted Earnings and Adjusted EPS are included in the financial schedules accompanying this release.

Pro Forma Effect of Consolidation of Borgata

The effective change in control of Borgata was triggered at the end of the first quarter 2010. For purposes of comparability throughout this release, when such results are reported on a consolidated basis, the results of the prior year are retroactively recast to present such results on a consolidated basis, comparable to the current period. Additionally, for further purposes of comparability, certain year to date amounts have been presented on a pro forma basis, as if the consolidation of Borgata had occurred as of the beginning of the period presented (i.e. January 1, for the six months ended June 30, 2010, or June 30, 2009, as applicable).

Limitations on the Use of Non-GAAP Measures

The use of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS or certain other non-GAAP financial measures 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, Adjusted EPS and certain other non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures 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, Adjusted EPS and certain other non-GAAP financial measures 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 consumer sentiment and consumer sensitivities, that long-term stabilizing trends are still in place, trends in the Company's various regions of operation, including the continued trends in the Company's Midwest and South region, that the Company remains on track to continue reducing year-over-year EBITDA declines, and statements regarding the Company's resources and strategy, and future outlook. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: fluctuations in our operating results; recovery of our properties in various markets; the economic downturn and its effect on consumer spending and our results of operations; consumer reaction to fluctuations in the stock market and economic factors; the fact that our expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which we draw a significant percentage of our customers; 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. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, filed 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. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.

Photo:

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

AP Archive:

http://photoarchive.ap.org/
http://photos.prnewswire.com/prnh/20030219/BOYDLOGO

PRN Photo Desk,

photodesk@prnewswire.com

Source: Boyd Gaming Corporation

CONTACT: Financial, Josh Hirsberg, +1-702-792-7234,
joshhirsberg@boydgaming.com, or Media, Rob Meyne, +1-702-792-7353,
robmeyne@boydgaming.com, both of Boyd Gaming Corporation

Web Site:

http://www.boydgaming.com/