Boyd Gaming Corporation · NYSE:BYD
Boyd Gaming — Merger or Acquisition (December 2017)
22 slides from Boyd Gaming's merger presentation, Dec 18, 2017
Slide 1: Boyd Gaming Acquisition of Pinnacle Entertainment Assets
Boyd Gaming Acquisition of Pinnacle Entertainment Assets December 18, 2017 Exhibit 99.1
Slide 2: Unique Opportunity to Enhance Shareholder Value
Unique Opportunity to Enhance Shareholder Value Acquisition will Generate Meaningful Value for Boyd Shareholders Transaction Overview Four high quality, well maintained assets in attractive markets Expands portfolio reach into three of the top 30 MSAs with more than 5 million adults in aggregate Att
Slide 3: Transaction Overview
Transaction Overview Four High Quality Assets Ameristar Casino Resort Spa in St. Charles, Missouri Ameristar Casino Hotel in Kansas City, Missouri Belterra Casino Resort in Florence, Indiana Belterra Park in Cincinnati, Ohio Purchase Price Approximately $575 million Valuation Attractive implied purc
Slide 4: Pinnacle Assets Overview
Pinnacle Assets Overview Four high-quality, well-maintained assets in attractive markets Property Market Regulatory Jurisdiction Slot Machines Table Games Hotel Rooms Casino Sq. Ft. F&B / Entertainment Venues Ameristar St. Charles St. Louis Missouri 2,410 104 397 130,000 15 / 6 Ameristar Kansas City
Slide 5: Strategic Rationale Increases Geographic Diversity & Scale
Strategic Rationale Increases Geographic Diversity & Scale Increases geographic diversity in attractive new jurisdictions across three of the largest metropolitan areas in the Midwest – St. Louis, Kansas City and Cincinnati 1.7 million square feet of casino gaming space, ~38,000 slots, 900 table gam
Slide 6: Pro Forma National Footprint
Pro Forma National Footprint Downtown Las Vegas California Hotel and Casino Fremont Hotel and Casino Main Street Station Casino Las Vegas Locals Segment Aliante Casino Hotel and Spa Cannery Casino Hotel Eastside Cannery Casino & Hotel Gold Coast Hotel and Casino The Orleans Hotel and Casino Sam’s To
Slide 7: Enhanced Scale
Enhanced Scale CASINO FLOOR SPACE (000’s SQ. FT) SLOT MACHINES TABLE GAMES HOTEL ROOMS Note: Standalone Boyd data as of December 31, 2016 +28% +23% +34% +13% 6 Boyd Standalone Boyd Pro Forma
Slide 8: Financial Rationale
Financial Rationale Attractive Valuation Implied 2017E EBITDA multiple of 6.25x before synergies and 5.7x1 including synergies Highly Accretive to Earnings & Free Cash Flow Immediately accretive to earnings and free cash flow Robust free cash flow from assets supports capital return program and de-l
Slide 9: 16% EBITDA Growth
16% EBITDA Growth PRO FORMA ADJ. EBITDA ($MM) Pro Forma Operating Performance Increases Adj. EBITDA by 16% to $678 million 8 (2) Note: Please refer to Boyd Gaming Corporation’s SEC filings Form 10-K for the year ended December 31, 2016 and Form 10-Q for the nine months ended September 30, 2017 for r
Slide 10: Improves Free Cash Flow Profile
PRO FORMA FREE CASH FLOW GENERATION ($MM)1 Improves Free Cash Flow Profile Note: Please refer to Boyd Gaming Corporation’s SEC filings Form 10-K for the year ended December 31, 2016 and Form 10-Q for the nine months ended September 30, 2017 for reconciliations of non-GAAP measures to GAAP. Source: S
Slide 11: Improves Boyd Gaming's Scale and Competitive Position
Improves Boyd Gaming’s Scale and Competitive Position PRO FORMA LTM 9/30/2017 ADJ. EBITDA VERSUS PUBLIC COMPARABLES ($MM) Note:Please refer to Boyd Gaming Corporation’s SEC filings Form 10-K for the year ended December 31, 2016 and Form 10-Q for the nine months ended September 30, 2017 for reconcili
Slide 12: I. Property-Level Details
I. Property-Level Details
Slide 13: Ameristar Casino Resort Spa in St. Charles, Missouri
Opened in 1994; expanded into an all-suite hotel, spa and indoor-outdoor pool which opened in 2008 AAA Four Diamond full-service hotel Offerings include: More than 2,400 slot and video poker machines 104 table games New Baccarat pit Star Club, hotel, spa, fitness, conference center and pool faciliti
Slide 14: Ameristar Casino Hotel in Kansas City, Missouri
Ameristar Casino Hotel in Kansas City, Missouri 140,000 square-foot property features the largest casino and the most games in the Kansas City area AAA Three Diamond full-service hotel with 184 rooms and suites Offerings include: More than 2,100 slot and video poker machines Exclusive high-limit slo
Slide 15: Belterra Casino Resort in Florence, Indiana
Belterra Casino Resort in Florence, Indiana 47,000 square feet of casino space with 662 newly-renovated guest rooms and suites Features approximately 1,200 slot and video poker machines, as well as a series of live games including Blackjack, Craps and Roulette Offerings include: 1,500-seat entertain
Slide 16: Belterra Park in Cincinnati, Ohio
Belterra Park in Cincinnati, Ohio Gaming floor consists of 51,800 square feet of gaming Features live thoroughbred racing, pari-mutuel wagering and more than 1,300 games (video lottery terminals) Over $300 million of capital investment since 2014 Offerings include: Dirt Track – 1 mile & Ohio’s Only
Slide 17: II. Market Overviews
II. Market Overviews
Slide 18: Market Overview – St. Louis
Market Overview – St. Louis 17 The workforce in the St. Louis area is well diversified, providing increased stability. The mix of jobs in the region is wide ranging and reflective of the national economy. On a 100-point scale for diversity, St. Louis has scored in the 98 to 99 range for more than a
Slide 19: Market Overview – Kansas City
Market Overview – Kansas City 18 Population within the Kansas City area reached an all-time high during the past year. The community’s resident base expanded by approximately one percent, which outpaced the national average. Overall population reached 2.1 million as the rate of growth accelerated. E
Slide 20: Market Overview – Cincinnati
Market Overview – Cincinnati 19 Employment growth is accelerating in the Cincinnati, Ohio area. On a trailing 12-month average basis, establishment-based employment (those working in Cincinnati businesses) growth is at the highest level in more than a decade at 2.1 percent. Employment gains during t
Slide 21: Forward Looking Statements
Forward Looking Statements 20 Important information regarding forward-looking statements This presentation 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 stateme
Slide 22: Disclosures
Disclosures 21 Important disclosures regarding information contained within this document We obtained the industry, market and competitive position data throughout this presentation from (i) our own internal estimates and research of third party company websites and other sources, (ii) industry and