Title: The Majestic Star Casino, LLC
1The Majestic Star Casino, LLC
- Goldman Sachs and
- Deutsche Bank Securities
- Gaming Investment Forum
- Las Vegas, Nevada
- October 5-6, 2004
2Safe Harbor Statement
- All statements contained in this presentation
that are not historical facts are based upon
current expectations. These statements are
forward-looking in nature and involve a number of
risks and uncertainties as identified in the
companys Securities and Exchange Commission
filings, including those appearing under the
caption Risk Factors in the companys Annual
Report on Form 10-K and Quarterly Report on Form
10-Q. Actual results may materially differ. - The Company wishes to caution the public not to
place undue reliance on any such forward-looking
statements.
3Non-GAAP Financial Disclosure
- Within this presentation we reference non-GAAP
financial measures adjusted EBITDA and EBITDA.
The Company defines adjusted EBITDA as EBITDA, or
net income plus interest, taxes, depreciation and
amortization, adjusted for certain non-recurring
items. Adjusted EBITDA and EBITDA are presented
solely as supplemental disclosures because we
believe that they are a widely used measure in
the gaming industry and a principal basis for
valuation of gaming companies. We have provided
this presentation along with a reconciliation of
net income to adjusted EBITDA and EBITDA at our
website, www.majesticstar.com
4The Majestic Star Casino, LLC
- 260.0 Million Senior Secured Notes, due 2010
- Issued October 2003
- 9-1/2 interest rate
- Rated B2 / B (Moodys / SP)
- 80.0 Million Credit Facility
5Operating Strategy
- Focus on quality and service at an affordable
price to the middle market customer - Value priced amenities
- Tailored mix of games
- Core focus on slots
- Capitalize on player tracking system and
extensive customer database containing 715,000
active players
6Marketing Strategy
- Established successful direct marketing effort
- Emphasize Club membership
- Track customer gaming preferences and casino
action - Leverage database to build revenues
- Cross-market casino brands
- Enhance overall guest experience
- Over 870 TITO enabled slot machines at Majestic
Star - Deploy TITO on selected slot machines at Fitz
properties
7Chicago Area Gaming Market
- Most favorable demographics of any U.S. drive-in
riverboat gaming market - 55,000 household income
- 8.4 million adults in metropolitan area 11.9
million residents within 100 miles - Nations third largest gaming market, trailing
only Atlantic City and Las Vegas strip - Gaming revenues have increased from 1.0 billion
in 1996 to approximately 2.3 billion for the LTM
ending August 31, 2004
8Miles Population (In
Millions) MSA 8.4 100
11.9 200 25.6
9Buffington Harbor Facility
- Joint venture with Trump Indiana
- Largest casino complex in the Chicago metro area
- Approximately 4,000 total gaming positions
- 100 acre site with room for expansion
- 106.2 Million of Investment in Improvements
10Buffington Harbor Facility
- Direct access from State Highway 912
- 23 highway miles from downtown Chicago
- High quality entertainment pavilion
- 100,000 square feet
- Koko Taylors Blues Café, Passports World Class
Buffet - Fast food court
- New banquet / entertainment facilities
- New Marina access road expected to be completed
late spring, early summer 2005
11Majestic Star Casino
12Majestic Star Casino - Vessel
- Most modern vessel on Indiana lakefront
- Comfortably accommodates 3,000 passengers
- 43,000 square feet of gaming on three expansive
levels - Approximately 1,630 slots and 47 table games
- VIP Lounge
- Remodeled casino floor, late 2003
- New Don and Mike's Sports Bar (May '04)
- 2,000 space parking garage provides convenient
access to Buffington Harbor and Majestic Star
13Fitzgeralds Tunica
14Fitzgeralds Tunica
- Demographics
- Located in north Tunica County, Mississippi,
approximately 30 miles from downtown Memphis
15Fitzgeralds Tunica
- Demographics
- Tunica market draws drive-in customers from
Memphis, northern Mississippi and Little Rock,
Arkansas, as well as regional weekend travelers - Memphis MSA of 1.1 million, representing growth
of 12.7 since 1990 - Over 7.4 million reside within 200-mile radius of
Tunica - Tunica gaming revenues of approximately 1.1
billion in 2003
16Fitzgeralds Tunica
- Description
- Casino includes 1,376 slot machines and 34 table
games in 38,000 square feet of gaming space - Amenities include 507-room hotel (including 72
suites), three restaurants, bars, and gift shop - Tunica County Riverpark is a 23 million plus
marina/ park/museum adjacent to Fitzgeralds
Grand opening on March 18, 2004 - Second floor expansion and remodel project
- Added 90 slot machines
- New bathrooms, cage and guest services area
17Fitzgeralds Black Hawk
18Fitzgeralds Black Hawk
- Demographics
- Located in Black Hawk, 35 miles west of Denver
19Fitzgeralds Black Hawk
- Demographics
- Attracts drive-in or day trip customers
- Nearly 3.8 million live within a 100-mile radius
- Black Hawk / Central City market generated 0.6
billion of gaming revenue in 2003
20Fitzgeralds Black Hawk
- Description
- 593 slot machines and 6 table games in 16,000
square feet of gaming space - Amenities include 396 covered, valet parking
spaces, restaurant and bar - In July 2004, signed a definitive agreement to
sell property for 66.0 million
21Historical Financial Information (000s)
22Capitalization( in millions)
(1) As of September 28, 2004, 35.6 million
drawn on 80 million facility
23Final Considerations
- Operate in strong markets
- Diversified cash flow base
- Solid historical financial results and strong
liquidity - Growth opportunities
- Proven management team
- 2003 Company of the Year
- 2004 Don H. Barden, Entrepreneur of the Year
(Trumpet Awards)
24ADJUSTED EBITDA RECONCILIATION
25ADJUSTED EBITDA RECONCILIATION
26ADJUSTED EBITDA RECONCILIATION
27ADJUSTED EBITDA RECONCILIATION
28ADJUSTED EBITDA RECONCILIATION