FILED BY BOYD GAMING CORPORATION
PURSUANT TO RULE 425 UNDER THE
SECURITIES ACT OF 1933 AND DEEMED FILED
PURSUANT TO RULE 14A-12 UNDER THE
SECURITIES EXCHANGE ACT OF
1934
SUBJECT COMPANY: COAST CASINOS, INC.
SUBJECT COMPANY SEC FILE NO. 000-26922
CIBC GAMING LODGING AND LEISURE CONFERENCE
MARCH 2004
FORWARD LOOKING STATEMENTS
This presentation contains forward-looking statements regarding operating trends, future results and the completion of new projects, which are subject to change. The actual results may differ materially from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Companys financial results are included in the Companys Form 10-K for the year ended December 31, 2003. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
USE OF EBITDA
The financial information provided in this presentation uses non-GAAP measures such as earnings before non-recurring items and earnings before interest, taxes, depreciation, amortization and preopening expenses (EBITDA) because that is what we use internally to measure the operating performance of our properties and our company and to evaluate our managers. Our latest public information provides reconciliations of these measures to financial information prepared in conformity with accounting principles generally accepted in the United States of America.
KEY CONSIDERATIONS
Strong Business Platform
Diversified Asset Base
Significant and Diversified Cash Flow
Allows For Return to Shareholders
Balanced Capital Structure
Targeted Growth Initiatives
Positioned For Earnings Growth
STRONG BUSINESS PLATFORM
LAS VEGAS LOCALS
ATLANTIC CITY
DOWNTOWN LAS VEGAS
LAS VEGAS STRIP
RIVERBOATS
STRONG BUSINESS PLATFORM
Boyd Gaming Has Been a Major Diversified Casino Operator For Many Years
Assets and Operations in Five Business Segments
Recent Market And Corporate Developments Position Boyd For Significant Growth
Merger and Acquisition Bringing Top-Notch Assets to Company
Strong Opening of Borgata
Strength in Las Vegas Strip Results as They Apply to Development Opportunities
Strong Results in Las Vegas Locals Operations
Expansion Opportunities in Riverboat Properties With Strong Market Characteristics
These Events Allow For Significant Growth Opportunities in Four of Five Business Segments
STRONG BUSINESS PLATFORM
Number of Properties
NEAR AND
POST MERGER LONG TERM
CURRENT AND ACQUISITION EXPANSIONS DEVELOPMENT
LAS VEGAS STRIP 1 2 - 2
LAS VEGAS LOCALS 3 6 1 1
DOWNTOWN LAS VEGAS 3 3 - -
RIVERBOATS 5 6 2 -
ATLANTIC CITY1 1 1 -
TOTAL 13 18 4 3
DIVERSIFIED ASSET BASE
LAS VEGAS LOCALS
SAMS TOWN LV ELDORADO JOKERS WILD GOLD COAST SUNCOAST THE ORLEANS
DOWNTOWN LAS VEGAS
CALIFORNIA FREMONT MAIN STREET
LAS VEGAS STRIP
STARDUST BARBARY COAST
RIVERBOATS
PAR-A-DICE
BLUE CHIP
SAMS TOWN SHREVEPORT
SAMS TOWN TUNICA
DELTA DOWNS
TREASURE CHEST
ATLANTIC CITY
BORGATA
BORGATA OPENS STRONG
2003 2003
($ IN MILLIONS) THIRD QUARTER FOURTH QUARTER
GAMING REVENUE $ 136 $ 122
NON-GAMING REVENUE $ 48 $ 53
NET REVENUE $ 150 $ 142
EBITDA $ 31 $ 34
EBITDA % 20.4 23.9
ATLANTIC CITY MARKET DATA
2004 2004
JANUARY FEBRUARY
TABLE GAME WIN $19.4M $16.4M
RANK 1 1
TABLE GAME WPUPD $ 4,855 $ 4,383
RANK 1 1
AVERAGE $ 2,768 $ 2,844
TABLE GAME MARKET 75% 54%
SHARE PREMIUM
ATLANTIC CITY MARKET DATA
2004 2004
JANUARY FEBRUARY
SLOT WIN $27.1M$30.5M
RANK 3 3
SLOT WPUPD $ 243 $ 293
RANK 2 1
AVERAGE $ 199 $ 233
SLOT MARKET
SHARE PREMIUM 22% 26%
ATLANTIC CITY MARKET DATA
FIRST TWO MONTHS OF 2004
($ IN MILLIONS)
TABLE GAME WIN: BORGATA $ 37.7
BALLYS 29.5
CAESARS 27.3
SLOT WIN: BALLYS $ 75.0
HARRAHS 64.2
BORGATA 57.6
TOTAL WIN: BALLYS $ 104.5
BORGATA 95.3
CAESARS 82.3
PEER GROUP By Number of Properties
30 25 20 15 10 5 0
CZR HET BYD MBG MGG ISLE STN PENN AGY ASCA
BYD: Pro Forma for merger with Coast Casinos, Inc. and acquisition of Harrahs Shreveport and as of December 31, 2003
SIGNIFICANT AND DIVERSIFIED CASH FLOW
EBITDA By Region
Downtown Las Vegas 8.4%
Atlantic City 1.9%
Las Vegas Locals 40.7%
Las Vegas Strip 3.3%
Riverboat 45.7%
Note: Based Upon 2003 Pro Forma EBITDA Before Corporate Overhead
PEER GROUP By EBITDA
1,200 1,000 800 600 400 200 0
MGG HET CZR MBG BYD STN ISLE PENN AGY ASCA
BYD: Pro Forma for merger with Coast Casinos, Inc. and acquisition of Harrahs Shreveport and as of December 31, 2003
RETURN TO SHAREHOLDERS
Company Initiated Dividend in July 2003
Payment at Annual Rate of $0.30 Per Share
BALANCED CAPITAL STRUCTURE
PRO FORMA DEBT CAPITALIZATION
($ IN MILLIONS)
12/31/03
Pro Forma*
NEW REVOLVER DUE 2009 $ 403
NEW TERM LOAN DUE 2011 500
9.25% SENIOR NOTES DUE 2009 200
8.75% SENIOR SUB NOTES DUE 2012 250
7.75% SENIOR SUB NOTES DUE 2012 300
NEW SENIOR SUB NOTES DUE 2014 650
OTHER 16
TOTAL DEBT $ 2,319
* Pro Forma for merger with Coast Casinos, Inc. and acquisition of Harrahs Shreveport
DEBT MATURITIES
($ IN MILLIONS)
700 600 500 400 300 200 100 0
04 05 06 07 08 09 10 11 12 13 14
* Pro Forma for merger with Coast Casinos, Inc. and acquisition of Harrahs Shreveport
TARGETED GROWTH INITIATIVES
GROWING THE FRANCHISE
Sams Town Shreveport
Delta Downs Racetrack and Casino
Blue Chip Casino and Hotel
The Orleans
South Coast
Borgata Hotel Casino and Spa
SAMS TOWN SHREVEPORT
DELTA DOWNS
BLUE CHIP
BLUE CHIP
THE ORLEANS
SOUTH COAST
BORGATA
POSITIONED FOR EARNINGS
GROWTH
LAS VEGAS LOCALS
ATLANTIC CITY
DOWNTOWN LAS VEGAS
LAS VEGAS STRIP
RIVERBOATS
SEC LEGEND
This presentation is not an offer to sell the securities of Boyd Gaming Corporation and it is not soliciting an offer to buy these securities.
Investors and security holders are urged to read the joint proxy statement/prospectus regarding the proposed transaction because it will contain important information. The joint proxy statement/prospectus was filed with the U.S. Securities and Exchange Commission by Boyd Gaming Corporation and Coast Casinos, Inc. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus and other documents filed or furnished by Boyd Gaming Corporation or Coast Casinos, Inc. with the SEC at the SECs website at www.sec.gov. The joint proxy statement/prospectus and other documents filed or furnished by Boyd Gaming Corporation or Coast Casinos, Inc. may also be obtained for free by directing a request to Boyd Gaming Corporation, Attn: Rob Stillwell, Investor Relations, 2950 Industrial Road, Las Vegas, NV 89109, or to Coast Casinos, Inc., Attn: Gage Parrish, 4500 West Tropicana Road, Las Vegas, NV 89103. The anticipated date of dissemination of the joint proxy statement/prospectus is March 31, 2004.
Boyd Gaming, Coast Casinos and their respective officers and directors may be deemed to be participants in the solicitation of proxies with respect to the transactions contemplated by the merger agreement. Information about the participants in the solicitation will be set forth in the joint proxy statement/prospectus to be filed with the SEC.
EXPECT MORE