Treasure
Chest Casino to Reopen on Monday
Boyd Gaming Corporation
(NYSE: BYD) today announced that its Treasure
Chest Casino in Kenner, Louisiana will reopen
at noon on Monday, October 10, 2005. As previously
reported, the facility suffered only minor damage
from Hurricane Katrina, but has been closed
since the storm as a result of conditions in
the area.
Bill Boyd, Chairman and Chief Executive
Officer of Boyd Gaming Corporation, said, "As
the New Orleans area begins its recovery, we
are pleased to play a part. Returning our employees
to work and to their livelihoods will also help
in the recovery process."
As previously reported, Delta Downs was damaged
by Hurricane Rita. The Company is working on
repairs and restoration and hopes to reopen
at least part of the property's operations prior
to the end of November.
Operating results in the Company's Louisiana
operations for the last five weeks of the third
quarter (ended September 30) were significantly
affected by both Hurricanes Katrina and Rita.
Treasure Chest closed on August 27 and Delta
Downs, in the southwest part of Louisiana, closed
on September 22. In addition, Sam's Town Shreveport,
while open for the full quarter, was impacted
by the effects of both storms through the end
of the quarter. Consequently, the Company estimates
that third quarter adjusted earnings for those
properties, which accounted for approximately
13% of adjusted EBITDA for the first half of
2005, will be substantially below what the Company
was expecting for those properties just prior
to Hurricane Katrina.
The Company is in the process of working with
and making claims with its insurance companies
with respect to Treasure Chest and Delta Downs.
The Company believes that, subject to a $1 million
property damage deductible at Delta Downs, lost
profits, ongoing property costs and repair and
rebuilding costs will be substantially recoverable
under its insurance coverages, although the
timing of the receipt of such proceeds is unknown.
Upon recovery, the reduction in Treasure Chest
and Delta Downs earnings related to the storms
is expected to be substantially offset, such
that, over time, the financial statement impact
from the storms should be nearly eliminated.
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