The Majestic Star Casino, LLC
Lehman Brothers
2004 High Yield Bond and
Syndicated Loan Conference
Orlando, FL
March 22-24, 2004
Safe 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
company’s Securities and Exchange Commission filings,
including those appearing under the caption Risk Factors in
the company’s 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.
Non-GAAP Financial Disclosure
Within this presentation we reference non-GAAP financial
measure EBITDA. The Company defines EBITDA as
earnings from operations before interest, taxes, depreciation,
amortization and certain non-recurring items. EBITDA is
presented solely as a supplemental disclosure because we
believe that it is 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 Operating Income to EBITDA at our
website, www.majesticstar.com
The Majestic Star Casino, LLC
• $260,000,000 Senior Secured Notes, due 2010
• Issued October 2003
– 9.5% interest rate
– Rated B2 / B (Moodys / S&P)
Organizational Structure
Barden Development, Inc.
(Don H. Barden)
100%
Barden Nevada Gaming, LLC
(Fitzgeralds Las Vegas)
100%
Management
Agreement
The Majestic Star Casino, LLC
(Majestic Star Casino)
(Issuer)
50%
100%
100%
Majestic Star
Capital Corp.
(Co-issuer)
(BHR Joint Venturecommon area Facility)
Majestic Investor, LLC
100%
Majestic Investor Holdings, LLC
100%
Barden Mississippi
Gaming, LLC
(Fitzgeralds Tunica)
Buffington Harbor Riverboats,LLC
100%
Barden Colorado
Gaming, LLC
(Fitzgeralds Black Hawk)
Operating Strategy
• Focus on quality and service at an affordable
price to the middle market customer
– Reasonably priced amenities
– Tailored mix of games
– Core focus on slots
Operating Strategy (cont.)
• Promote national gaming brand
– Well recognized
– Theme conducive to gaming
• Capitalize on player tracking system and
extensive customer database
Marketing Strategy
• Established successful direct marketing effort
– Emphasize Club membership
– Track customer gaming preferences
– Leverage database to build revenues
• Cross-market casino brands
• Enhance overall guest experience
– Expanded slot product / TITO
Chicago Area Gaming Market
• Most favorable demographics of any U.S. drive-in
riverboat gaming market
– $55,000 household income
– 9 million adults
• 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
December 31, 2003
MilesMiles Population
Population
I-43
(In Millions)
(in millions)
MSAMSA
100 100
200 200
99
12
12.3
24
.3
25.6
I-96
I-196 Grand
Rapids
Racine
I-94
Kenosha
I-94
Michigan
City
Waukegan
Rockford
Lansing
Hammond
Elgin
Chicago
Aurora
I-88
Jackson
Kalamazoo
I80/ 90
I-90
South Bend
I-39
Joliet
East
Chicago
I-80
Fort Wayne
I-69
I-55
I-74
Peoria
I-57
I-65
Muncie
Lafayette
Bloomington
Indianapolis
Champaign
I-70
Springfield
I-72
Decatur
Grand
(Elgin)
I-90Victoria
I-94
I-94
Horseshoe
(Hammond)
Blue Chip
Chicago-O’Hare
Airport
(Rosemont)
(Michigan City)
I-90
(Skyway)
I-88
Hollywoo
d (Aurora)
I-80/90
(Gary)
Midway
Airport
Empress
Buffington
Harbor
Trump (Gary)
912
(Gary)
I-80/94
(Joliet)
I-80
Majestic
Star
Harrah’
I-57
I-65
Harrah’
(East
s Chicago)
Favorable Regulatory
Environment
• Limited number of licenses
• No loss limits
• No limit on number of gaming positions
• Majestic Corporate Compliance Committee
– Chaired by William Curran (former Chairman
Nevada Gaming Board)
Dockside Gaming
• Implemented August 5, 2002
• Continuous ingress and egress of patrons
• New graduated wagering tax
– < $25 million
15%
– $25 to $50 million
20%
– $50 to $75 million
25%
– $75 to $150 million
30%
– >$150 million
35%
• Restructured Admissions Fee to a flat $3
Buffington Harbor Facility
• Joint venture with Trump Indiana
• Largest casino complex in the Chicago metro
area
– Approximately 3,900 total gaming positions
• 100 acre site with room for expansion
Buffington Harbor Facility
• Direct access from State Highway 912
• 23 highway miles from downtown Chicago
• High quality entertainment pavilion
– 100,000 square feet
– Koko Taylor’s Blues Café, Passports Buffet
– Fast food court
– New banquet / entertainment facilities
• Low cost of Capital Contribution
*
Buffington Harbor Improvements
(in millions)
Harbor & Barge Improvements
$17.8
Land & Land Improvements
34.5
FF&E
10.5
Building & Building Improvements
41.2
Total Improvements
* As of December 31, 2003
$104.1
Majestic Star Casino
Majestic 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 1,520 slots and 52 table games
– VIP Lounge
– Remodeled casino floor, late 2003
– Climate controlled banquet facilities located on vessel
Buffington Harbor Parking Assoc.
• Joint venture between Trump Indiana and AMB Parking
(a Barden owned company)
• 2,000 spaces
• Opened May, 2002
• $37.9 million budget
– $17.0 million in advance lease payments
– $20.9 million loan
Majestic Star: Win/Slot/Day
2003 Northwest Indiana Market Average = $368 (w/o MSC)
$240
$230
$220
$210
$200
$190
$180
$170
$160
$150
$229
$205
$206
2002
2003
$199
1999
$172
$171
$177
$155
1998
1999
As of February 29, 2004
2000
2001
2004
Fitzgeralds Tunica
Fitzgeralds Tunica
• Demographics
– Located in north Tunica County, Mississippi,
approximately 30 miles from downtown Memphis
Arkansas
Tennessee
40
West
Memphis
100 MILES
50 MILES
Memphis
40
Little Rock
61
Brinkley
Tunica
49
55
Helena
Oxford
Tupelo
Arkadelphia
Alabama
61
49
Greenville
55
Shreveport/
Bossier
Louisiana
Vicksburg
Mississippi
Gaming Sites
Fitzgeralds 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
Fitzgeralds Tunica
• Description
– Opened in June, 1994
– Casino includes 1,347 slot machines and 34 table games in
36,000 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
Fitzgeralds Black Hawk
Fitzgeralds Black Hawk
• Demographics
– Located in Black Hawk, 35 miles west of Denver
Laramie
Wyoming
Nebraska
80
Cheyenne
25
76
Ft. Collins
Greeley
Colorado
Steamboat
Springs
Black
Hawk
Central
City
Vail
Glenwood
Springs
70
58
100 MILES
Denver
25
Leadville
Grand
Junction
Ft. Morgan
50 MILES
6
70
Utah
76
Boulder
119
Cripple
Creek
70
Limon
Burlington
Colorado
Springs
Kansas
Pueblo
Legalized Gaming Cities
Fitzgeralds Black Hawk
• Demographics
– Attracts “drive-in” or “day trip” customers
– Nearly 3.8 million live within a 100-mile radius
– Rapid Denver MSA growth of 30% since 1990 to 2.1 million
(growing twice as fast as the national average)
Fitzgeralds Black Hawk
• Description
– Opened in May, 1995
– 594 slot machines and 6 table games in 16,000 square feet
of gaming space
– Amenities include 396 covered, valet parking spaces,
restaurant and bar
– Room and preliminary plans for expansion
Historical Financial Information (000s)
Years Ended December 31
2003
2002
2001
2000
Majestic
Net Revenues
EBITDA
$138,890
$25,331
$135,129
$26,665
$124,917
$25,385
$117,993
$20,701
Tunica
Net Revenues
EBITDA
$89,249
$20,161
$92,835
$21,661
$88,656
$19,092
$79,768
$15,253
Black Hawk
Net Revenues
EBITDA
$33,644
$8,191
$35,138
$8,231
$37,392
$7,997
$36,006
$8,139
($282)
($359)
($1,045)
($250)
$261,783
$53,401
$263,102
$56,198
$250,965
$51,429
$233,767
$43,843
MIH
EBITDA
Total
Net Revenues
EBITDA
Capitalization
( in Millions)
As of December 31,2003
Actual
Cash
$
23.5
Debt:
Senior Secured Notes, due 2010
$ 260.0
11.653% Notes, due 2007
15.7
Credit Facility(1)
26.0
Total Debt
$
301.7
(1) As of February 29, 2004 $41.5 million draw on $80 million facility
Final 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)
ADJUSTED EBITDA
RECONCILIATION
Majestic Star
Net (loss) income
Interest expense, net
Depreciation and amortization (1)
Other non-operating expenses (2)
EBITDA
Loss on investment in BHR (3)
Loss on bond redemption (4)
Retroactive Gaming Tax Charge (7)
Adjusted EBITDA
Fitzgeralds Tunica
Net income
Interest (income) expense, net
Depreciation and amortization (1)
EBITDA
$
$
$
$
$
For the Tw elve Months Ended December 31,
2003
2002
2001 (8)
(in thousands)
(12,353)
$
3,221
$
(280)
$
17,219
14,261
14,636
5,834
6,617
8,082
156
142
149
10,856
$
24,241
$
22,587
$
2,395
2,424
2,798
10,008
2,072
25,331
$
26,665
$
25,385
$
12,352
(11)
7,820
20,161
$
$
14,316
(28)
7,373
21,661
$
$
18,606
4
482
19,092
$
$
2000
(5,553)
14,158
9,531
124
18,260
2,059
382
20,701
(2,803)
11,821
6,235
15,253
ADJUSTED EBITDA
RECONCILIATION
Fitzgeralds Black Haw k
Net income
Interest (income) expense, net
Progressive expense (9)
Depreciation and amortization (1)
EBITDA
Majestic Investor Holdings
Net loss
Interest expense, net
Depreciation and amortization
Other non-operating expenses (2)
EBITDA
Loss (gain) on bond redemption (4)(5)
Loss from discontinued operations (6)
Adjusted EBITDA
$
$
$
$
$
For the Tw elve Months Ended December 31,
2003
2002
2001 (8)
(in thousands)
6,461
$
6,702
$
8,342
$
(8)
(52)
(421)
1,730
1,537
128
8,191
$
8,231
$
7,997
$
(50,422)
13,971
2,105
30
(34,316)
21,952
12,082
(282)
$
$
$
(22,924)
18,000
2,597
42
(2,285)
(69)
1,995
(359)
$
$
$
(2,207)
993
169
(1,045)
(1,045)
$
$
$
2000
(384)
6,768
1,755
8,139
(197)
(53)
(250)
(250)
ADJUSTED EBITDA
RECONCILIATION
Total Consolidated
Net (loss) income
$
Interest expense, net
Progressive expense (9)
Depreciation and amortization (1)
Other non-operating expenses (2)
EBITDA
$
Loss on investment in BHR (3)
Loss (gain) on bond redemption (4)(5)
Loss from discontinued operations (6)
Retroactive Gaming Tax Charge (7)
Adjusted EBITDA
$
For the Tw elve Months Ended December 31,
2003
2002
2001 (8)
(in thousands)
(43,962)
$
1,315
$
24,461
$
31,179
32,225
15,581
(421)
17,489
18,124
8,861
186
184
149
4,892
$
51,848
$
48,631
$
2,395
2,424
2,798
31,960
(69)
12,082
1,995
2,072
53,401
$
56,198
$
51,429
$
2000
(8,937)
32,694
17,521
124
41,402
2,059
382
43,843
ADJUESTED EBITDA
RECONCILIATION
Notes:
(1) Maybe inclusive of small losses and gains on disposal of assets.
(2) Non-usage fees on the Company's credit facilities.
(3) Represents depreciation expense from Buffington Harbor Riverboats, LLC.
(4) Non-recurring charges related from refinancing substantially all of the Company's debt in 2003 and
charges in 2000 related to a refinancing of the Company's debt that began in 1999.
(5) Gain on redemption of debt
(6) Write dow n of Barden Nevada Gaming, LLC to fair market value plus the loss related to it's operations.
(7) Non-recurring gaming tax assessment in June 2003.
(8) 2001 reflects combined pre and post acquistion EBITDA results for the Fitzgeralds properties. The Company
acquired the Fitzgeralds properties on December 6, 2001. In order to get 2001 EBITDA results
the Company used historical information obtained by the Company after the acquistion.
(9) The Company deducted from net income the reduced expense recognized by the predecessor
company w hen they eliminated the liabilities for slot progressive reset amounts.