Quarterly Financial Highlights

Transcription

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2 Quarterly Financial Highlights

3 Operating EBITDA Components (in millions) Q2 '05 Q2 '04 % Op. Inc. and Earnings from JV $ 85.8 $ 66.5 Depreciation and Amortization Development Expense Lease Buyouts Preopening Expenses EBITDA Adjusted $ $ %

4 Operating Highlights ( in millions) All Las Vegas Operations Q2 '05 Q2 '04 % Net Revenues $ $ % Adjusted EBITDA % EBITDA Margins 41.5% 37.3% 11% Major Properties - Net GVR Q2 '05 Q2'04 % Net Revenues $ $ % Adjusted EBITDA % EBITDA Margins 41.1% 35.6% 15%

5 Guidance

6 EBITDA Guidance Q Up 15% to 21% Y/Y (in millions) Actual Range Q Q EBITDA, Before Development and Non-Recurring Items* $ 104 $ 110 $ 90.7 *Excludes Non-Recurring Items and Projected Development Expense Includes Management Fees ** Guidance Assumes $2 Million in Construction Disruption at Fiesta Henderson and Santa Fe Station

7 Changes to Previous Q3 and Q Guidance (in millions) Range Range Q3 Q3 Q4 Q4 Previous EBITDA w/ Disruption Reduced Disruption (1) 3 3 Increased Guidance (2) Increased Disruption (3) (2) (2) New Guidance $ 104 $ 110 $ 115 $ 120 (1). Because the Fiesta Henderson and Santa Fe Projects are Delayed, the Construction Disruption will be Less. (2). Due to the Flow Through From Projected Increased Same Store Revenues. (3). Due to the Cons truction Dis ruption From the Expans ion of Green Valley Ranch.

8 Execute Three Year EBITDA Growth Goals (in millions) Actual Range Range Current Operations* $ 385 $ 467 $ 478 $ 501 $ 514 MP Expans io ns 9 11 Red Rock Steady State EBITDA Co ns tructio n Dis ruptio n (9) (9) (14) (14) Disrupted EBITDA $ 385 $ 458 $ 469 $ 545 $ Year CAGR 23-24% *Excludes Non Recurring Items and Development Cos ts. Bas e Year 2003 EBITDA was $ 295 Million ** A s s ume s % R e v e nue Gr o w th i n the LV Lo c a l s ' Ma r ke t (e x c l udi ng Gr e e n V a l l e y R a nc h). And No Other Management Fees from Other Native American Operations Other Than Thunder Valley. *** A s s u me s 3-5 % R e v e n u e Gr o w t h i n t h e LV Lo c a l s ' M a r k e t,

9 EBITDA/EPS Reflecting Construction Disruption (in millions, except EPS) Actual Range Range EBITDA w/ Disruption $ 385 $ 458 $ 469 $ 545 $ 565 In t e re s t E xpe n s e Depreciation % in Net Inc w/disruption $ 13 9 $ 17 2 $ 179 $ 18 9 $ 202 EP S**w/ Dis ruptio n $ 2.10 $ 2.47 $ 2.58 $ 2.70 $ Year CAGR 29% -31% Management Expects Construction Disruption at the Santa Fe, Fiesta Henderson, and Green Valley Ranch Expansion Sites. This Slide Details the Expected Impact of the Disruption. Base Year EPS as Def ined in 2003 was $ 1.27 **See Previous Assumptions Regarding EBITDA and EPS on Previous Slides. ***2005 Assumes 69.5 Million Shares Outstanding and 2006 Assumes 70 Million Shares Outstanding.

10 2005 Quarterly Guidance (in millions) Range Q1 Actual $ 121 $ 121 Q2 Actual Q3 Estimate Q4 Estimate Guidance $ 458 $ 469 Guidance Considers Construction Disruption in the Last Half of 2005 at Santa Fe, Fiesta Henderson and Green Valley Ranch

11 Major LV Operations Revenue Growth Rates With and Without Construction Disruption Q1 Q2 Q3 Q Growth Rate Without Disruption 14% 13% 9-12% 8-11% 2005 Growth Rate With Disruption* 14% 13% 8-11% 5-8% 2004 Growth Rate 9% 9% 12% 14% * This is the Implied Gro wth Rate Given the Es timated Co ns tructio n Dis ruptio n and a 60% Es timated Flo w Thro ugh. No te: Amo unts Indicated are the Actual Year Over Year Gro wth Rates fo r the Majo r La s Ve g as P ro perties (excluding Green Valley Ranch) Except fo r Q3 and Q Which are P ro jected

12 Same Store Revenue Growth Rates With and Without Construction Disruption Q1 Q2 Q3 Q Growth Rate Without Disruption 18% 16% 12-14% 11-13% 2005 Growth Rate With Disruption* 18% 16% 11-13% 8-10% 2004 Growth Rate 11% 12% 14% 17% * This is the Implied Gro wth Rate Given the Es timated Co ns tructio n Dis ruptio n and a 60% Es timated Flo w Thro ugh. No te: Amo unts Indicated are the Actual Year Over Year Gro wth Rates fo r All La s Ve g as P ro perties (including Green Valley Ranch) Except fo r Q3 and Q Which are P ro jected

13 Projected Development Cap EX ( in millions) Red Rock Resort $ 370 $ 385 $ 20 Santa Fe Expansion - Phase II 16 Santa Fe Expansion - Phase III Sunset Station Expansion 17 Fiesta Henderson Exp. Phase- II Land 101 Total $ 549 $ 530 $ 20

14 05 Free Cash Flow Sensitivity Analysis ( in millions) EBITDA $ 458 $ 469 Less: Interest (including cap interest) Cash Taxes Paid - - Maintenance Capital Expenditures Cash for Reducing Debt or for Capital Needs $ 313 $ 324 **No Cash Taxes Will Be Paid in Cash Taxes Expected to be 60-70% of the Accounting Provision in Based on These Percentages, 2006 Cash Taxes Would be $65-$81 million.

15 Projected Y/E Debt Balance ( in millions) 12/31/05 Balance at 6/30/05 $ 1,476 Midpoint Cash Flow Guidance (225) Development Expenses/Preopening Exp. 8 Development Cap Ex and Advances 282 Maintenance Cap Ex 20 Interest 52 Dividends 34 Other 33 EST. LT Debt Balance 12/31/05 $1,680

16 Other Financial Information

17 Flexibility In Capital Structure Long-Term Debt: Reducing Revolver $ - Other MPM 6 Senior Notes 448 Subordinated Notes 1,022 Total LT Debt at 6/30/05 $ 1,476 Next Maturity 2009 Weighted Average Cost- Pretax 6.46% Fixed Rate Debt 97% Incremental Borrowing Rate bps over Libor

18 Land Held for Development ( in millions, Except per Share Data) Cost Acres Location Cost Per Share 489 Total Held for Development Wild Wild West (in PPE) Total $ $ 4.38 As s umes 70 Million Shares Outs tanding Excludes Two Parcels in Escrow Located in Reno, Nevada. Wild Wild West Land Includes 19 Acr es Fr om Pending Lease Buyout

19 Las Vegas Franchise

20 Growth Opportunities LV Operations Organic Growth Population Growth Generally LV Fastest Growing Community in the Country Growth in Retirees Baby Boomers Investment on the Strip Est. $25 B Thru 2010 No New Supply Until Q1 of 2006

21 Growth From Unit Expansion Phase I Opens Q Phase II - Q Cost $925 Million 850 Rooms 2,800 Slots / 60 Table Games Several Big Box Restaurants 16 Screen Movie Theater Exceptional Location Up to 600 Residential Units

22 Positioned for the Future Growth Wild Wild West Santa Fe Phase III Fiesta Henderson Phase II Green Valley Ranch Phase III Other Master Planned Expansions Land Portfolio: Durango and I-215 Flamingo and I-215 Cactus and I-15 Boulder Highway Two Reno Sites

23 Growth From Master Planned Expansions $70 Million 1,500 Space Parking Garage 12 Screen Movie Theater Remodel Race and Sports 350 Slot Machines Q3 of 2006 $120 Million 2,900 Space Parking Garage New 500 Seat Buffet New Center Bar Remodeled Race and Sports 400 Slots Opens in Phases Q3 2006

24 Growth From Master Planned Expansions $110 Million 1,500 Space Parking Garage Poker Room New Race and Sports Book New Entertainment Lounge 14K Sq. Feet of Convention Space Opens in Phases Starting Q4 2006

25 Project Timeline Start Completion Project Date Date Red Rock Phase I In Process Late Q Red Rock Phase II Late 2005 Late Q Fiesta Henderson Exp August 2005 Q Santa Fe Exp Sept 2005 Q3 2006* Green Valley Ranch Exp Oct 2005 Q4 2006* *The Expansion Comes On Line in Phases Starting During These Quarter

26 Management Contracts

27 Native American Gaming Contracts Current Contract Mgt Location Length Fee % In Operation: Thunder Valley California 5 Years 24% In Various Stages of Development: Gun Lake Michigan 7 Years Variable Chico California 7 Years 24% Graton California 7 Years 22% North Fork California 7 Years 24%

28 Reno Opportunities

29 Washoe County Population Growth 400, , , , , , , , , , , , , , , , , Source: Nevada State Demographer

30 Population Growth Rates 9.0% 8.5% Reno 8.0% Las Vegas 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% Source: Nevada Department of Employment, Training and Rehabilitation.

31 Reno/Sparks Hotel Casino Facilities Property Operator Opened Rooms Casino Slots Tables Positions Atlantis Monarch ,000 sf 1, ,678 Boomtown PNK ,000 sf 1, ,422 Circus Circus Reno MGM ,572 60,000 sf 1, ,792 Club Cal-Neva Private ,000 sf 1, ,851 Eldorado Private ,000 sf 1, ,392 Fitzgeralds Reno Private ,260 sf ,053 Golden Phoenix Private ,500 sf Harrah's Reno HET ,000 sf 1, ,410 John Ascuaga's Nugget Private ,600 84,000 sf 1, ,712 Peppermill Reno Private ,070 80,400 sf 2, ,425 Rail City Sands Regent NA 0 16,600 sf Reno Hilton Resort HET* , ,000 sf 1, ,426 Sands Regency Sands Regent ,000 sf Siena Hotel Spa Casino Private ,000 sf Silver Club Private ,426 sf Silver Legacy MGM ,711 85,000 sf 1, ,240 Western Village Private ,000 sf Reno/Sparks Market Total 13, ,186 sf 20, ,081 Source: Nevada Department of Employment, Training and Rehabilitation.

32 Station Casinos Reno Parcels South South Virginia Virginia St. St. SE Truckee Meadows Master-Planned Development 8,215 homes Summit Sierra North 104 acres of future upscale retail development Interstate Interstate 580 Bypass Curti Ranch Master-Planned Development 507 homes Mt. Mt. Rose Rose Highway Highway Station Casinos 50-acre parcel U.S. 395 U.S. 395 Summit Sierra South 30 acres of future upscale retail development Station Casinos 96-acre parcel 0 ft 1,000 ft 2,000 ft 3,000 ft 0 mi ¼mi ½mi ¾mi 1 mi

33 Station Moana Casinos Moana Reno Parcel Peckham Coliseum Coliseum Peckham U.S. 395 Reno-Sparks Convention Center Station Casinos 8-acre parcel Redfield Pkwy. Gart Sports Circuit City Sam s Club South South Virginia Virginia St. St. Wal Mart Babies R Us TJ Max Office Depot Safeway Ross Michael s Aaron Bros. Applebee s Boston Market Old Navy Kletzke Ln. Countrywide World Savings McCarran 0 ft 500 ft 1,000 ft 1,500 ft

34 Safe Harbor Provision Statements within this presentation which are not historical facts are forward looking statements and safe harbor statements under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including but not limited to financial projections, state and federal regulations, construction activities and other risks described in the Company s public filings with the Securities Exchange Commission.

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