Boyd Gaming Corporation · NYSE:BYD
Boyd Gaming — Merger or Acquisition (April 2016)
34 slides from Boyd Gaming's merger presentation, Apr 21, 2016
Slide 1: Boyd Gaming's Acquisition of Aliante Casino + Hotel + Spa
BOYD GAMING’S ACQUISITION OF ALIANTE CASINO + HOTEL + SPA APRIL 2016
Slide 2: Transaction Overview
TRANSACTION OVERVIEW Aliante Casino + Hotel + Spa • Built in 2008 at an original cost of over $660 million • Initial entry into the North Las Vegas market • Positioned to benefit from significant future development in northern part of Las Vegas valley Total net purchase price: $380 million • Approxi
Slide 3: Strategic Rationale
STRATEGIC RATIONALE • High quality asset • Originally built at a cost of over $660 million • Full suite of premium amenities that align with our non-gaming investment strategy • Las Vegas economy strengthening and positioned for continued growth • North Las Vegas projected to have significant growth
Slide 4: Aliante Casino + Hotel + Spa
ALIANTE CASINO + HOTEL + SPA Built in 2008 at an original cost of over $660 million 4
Slide 5: AAA Four Diamond Hotel
ALIANTE CASINO + HOTEL + SPA AAA Four Diamond Hotel 5
Slide 6: Resort-Style Pool and Outdoor Lounge
ALIANTE CASINO + HOTEL + SPA Resort-Style Pool and Outdoor Lounge 6
Slide 7: Modern Food & Beverage Offerings
ALIANTE CASINO + HOTEL + SPA Modern and Attractive Food & Beverage Offerings Consistent with Our Non-Gaming Strategy 7
Slide 8: High Quality Entertainment and Meeting Venues
ALIANTE CASINO + HOTEL + SPA High Quality Entertainment and Meeting Venues 8
Slide 9: Well Designed and Equipped Casino
ALIANTE CASINO + HOTEL + SPA Well Designed and Equipped Casino Including Slots, Tables, Race & Sports and Bingo 9
Slide 10: Aliante Casino + Hotel + Spa
ALIANTE CASINO + HOTEL + SPA • 82,000-sq. ft. gaming floor that offers 1,837 slots, 30 table games and a 200-seat bingo room • 202-room hotel (including suites) • Covered and surface parking lot offering 4,800 parking spaces • Diversified restaurant offerings, including five signature restaurants •
Slide 11: The Las Vegas Locals Market: Population Growth
1.8 1.9 2.0 2.1 2.2 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Mi lli on s THE LAS VEGAS LOCALS MARKET 11 Population growth ranks among the top in the country 3rd of the Top 30 US Metros Source: Clark County Comprehensive Planning; U.S. Census M ill io n s
Slide 12: The Las Vegas Locals Market: Employment
750,000 770,000 790,000 810,000 830,000 850,000 870,000 890,000 910,000 930,000 950,000 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 THE LAS VEGAS LOCALS MARKET 12 Total employment has recovered to pre-recession highs in 2016 Source: U.S. Bureau of Labor Statistics, Data to March 2016
Slide 13: The Las Vegas Locals Market: Unemployment
0% 2% 4% 6% 8% 10% 12% 14% 16% '10 '11 '12 '13 '14 '15 '16 THE LAS VEGAS LOCALS MARKET 13 Unemployment fell below 6 percent in 2016 Source: U.S. Bureau of Labor Statistics, Data to February 2016
Slide 14: The Las Vegas Locals Market: Tourism Expands
THE LAS VEGAS LOCALS MARKET 14 Tourism continues to expand 33 34 35 36 37 38 39 40 41 42 43 '06'07'08'09'10'11'12'13'14'15 Mi lli on s Visitor volume reaches new heights Convention travel is growing Hotel occupancy rates are rising 74% 76% 78% 80% 82% 84% 86% 88% 90% 92% '06'07'08'09'10'11'12'13'14'
Slide 15: Nevada Economic Development Wins
THE LAS VEGAS LOCALS MARKET The Site Selectors Guild awarded the Governor’s Office of Economic Development with The Excellence in Economic Development Award for three key wins. Beyond tourism: Nevada is recognized for its economic development wins 15
Slide 16: Broadening Our Las Vegas Footprint to the High Growth Market
BROADENING OUR LAS VEGAS FOOTPRINT TO THE HIGH GROWTH MARKET OF NORTH LAS VEGAS 16
Slide 17: North Las Vegas Population Growth
190,000 195,000 200,000 205,000 210,000 215,000 220,000 225,000 230,000 235,000 240,000 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Population NORTH LAS VEGAS MARKET 17 The North Las Vegas market is positioned to yield significant population growth Source: Clark County Comprehensive Planning Population
Slide 18: North Las Vegas Employment Growth
80,000 85,000 90,000 95,000 100,000 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Employment NORTH LAS VEGAS MARKET 18 The North Las Vegas market is positioned to yield the highest level of growth in the Las Vegas Valley Source: United States Bureau of Labor Statistics Employment
Slide 19: North Las Vegas Housing Projections
60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Occupied Housing Units NORTH LAS VEGAS MARKET 19 As a result of growth in population, jobs and industrial development, housing in this part of Las Vegas is projected to be robust Source: Clark County Comp
Slide 20: Las Vegas Locals Gaming Revenues
NORTH LAS VEGAS MARKET 20 Las Vegas Locals gaming revenues continue to improve led by strong performance in North Las Vegas Source: Nevada Gaming Commission • On an LTM basis as of February 2016, the North Las Vegas Market outpaced the remainder of the Las Vegas Locals Market North Las Vegas Gaming
Slide 21: North Las Vegas Market Housing Developments
BROADENING BOYD GAMING’S LAS VEGAS FOOTPRINT TO THE HIGH GROWTH MARKET OF NORTH LAS VEGAS 21 North Las Vegas Market Housing Developments with a Projected 20,000 Homes are Currently Planned in North Las Vegas This is a start to a more comprehensive development map centered around Aliante SpeedwayAlia
Slide 22: Aliante Master Planned Community Location
NORTH LAS VEGAS MARKET 22 Perfectly Positioned within the Aliante Master Planned Community with ease of access from the I-215
Slide 23: Market Growth Projects: Apex Industrial Park
NORTH LAS VEGAS MARKET GROWTH PROJECTS Apex Industrial Park • 2,000 acres of available industrial lots • Site of choice for Faraday Future, Hyperloop Technologies and parcels are being considered by other existing and start-up companies. • Conveniently positioned on the I-15 with ease of access to t
Slide 24: Market Growth Projects: Faraday Future
NORTH LAS VEGAS MARKET GROWTH PROJECTS Faraday Future • Broke ground on April 13, 2016 • Purchased 3 parcels of land (14 acres) • Proposed full site to be 900 acres with an approximately $1 billion total investment • 3 Million Square Feet of Industrial Space • Up to 3,000 construction jobs • Estimat
Slide 25: Market Growth Projects: Hyperloop Technologies
NORTH LAS VEGAS MARKET GROWTH PROJECTS Hyperloop Technologies • 20,000 square foot facility under construction • Two-Mile test track under construction • Initially investing over $121.6 million in facilities and equipment 25
Slide 26: Other North Las Vegas Industrial Projects
NORTH LAS VEGAS MARKET GROWTH PROJECTS Other North Las Vegas Industrial Projects 26 Northgate Distribution Center Buildings 1&2 806,000 SF Lone Mountain Corporate Center 694,500 SF Prologis North 15 Freeway Distribution Center 410,600 SF Sunpoint Business Center 311,500 SF Prologis Cheyenne Distribu
Slide 27: Market Growth Projects: Villages at Tule Springs
NORTH LAS VEGAS MARKET GROWTH PROJECTS The Villages at Tule Springs • Approximately 2,000 Acres • Over 8,000 homes • An additional 600 developable acres in the adjoining Park Highlands West proposed development 27
Slide 28: Market Growth Projects: Skye Canyon
NORTH LAS VEGAS MARKET GROWTH PROJECTS Skye Canyon • Approximately 1,700 Acres • Over 9,000 homes 28
Slide 29: Cost Synergies
COST SYNERGIES 29 Approximately $8.0 million in first year synergy opportunities (in millions) Purchasing Synergies Shared Services Public Company Costs Insurance and other Year One Synergies $ 3.0 $ 2.5 $ 1.5 $ 1.0 _____ $ 8.0
Slide 30: Improving Performance
(in millions) Net Revenue EBITDA Margin 2015 Actual 84.2$ 17.1$ 20.3% 2016 Pro Forma 92.4$ 30.0$ 32.5% IMPROVING PERFORMANCE 30 Multiyear revenue and EBITDA growth trends continue to accelerate Source: Company Filings, Management Projections Please refer to the Form 10-K SEC filing of ALST Casino Ho
Slide 31: Strategic Rationale
STRATEGIC RATIONALE • High quality asset • Originally built at a cost of over $660 million • Full suite of premium amenities that align with our non-gaming investment strategy • Las Vegas economy strengthening and positioned for continued growth • North Las Vegas projected to have significant growth
Slide 32: Thank You
THANK YOU
Slide 33: Important information regarding forward-looking statements
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 statements may contain words such as
Slide 34: Important disclosures regarding information contained within this document
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 general publica