Treasure Chest Casino to Reopen on Monday
LAS VEGAS – (PRESS RELEASE) -- 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.