The Majestic Star Casino, LLC
Deutsche Bank
Twelfth Annual
Global High Yield Conference
Phoenix, Arizona
October 5-7, 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
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
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)
The Majestic Star Casino, LLC
• $260.0 Million Senior Secured Notes, due 2010
• Issued October 2003
– 9-1/2% interest rate
– Rated B2 / B (Moodys / S&P)
• $80.0 Million Credit Facility
Operating 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
approximately 715,000 active players
Marketing 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
Chicago 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
• Nation’s 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
MilesMiles Population
Population
I-43
(In Millions)
(in millions)
MSAMSA
100 100
200 200
8.4
9
12
11.9
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
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)
Buffington 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
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 World Class
Buffet
– Fast food court
– New banquet / entertainment facilities
• New Marina access road expected to be
completed late spring, early summer 2005
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 1,630 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
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
– Tunica gaming revenues of approximately $1.1 billion in
2003
– Over 7.4 million reside within 200-mile radius of Tunica
Fitzgeralds 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
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
– Black Hawk / Central City market generated $0.6 billion of
gaming revenue in 2003
Fitzgeralds 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
Historical Financial Information (000s)
Periods Ended June 30,
Years Ended December 31
2004
2003
2003
2002
2001
Majestic Star
Net Revenues
Adjusted EBITDA
$79,229
$15,326
$70,227
$15,076
$138,890
$26,286
$135,129
$27,206
$124,917
$25,385
Tunica
Net Revenues
Adjusted EBITDA
$45,840
$11,301
$45,654
$11,613
$89,249
$20,842
$92,835
$22,227
$88,656
$19,092
Black Hawk
Net Revenues
Adjusted EBITDA
$18,944
$5,772
$16,450
$3,937
$33,644
$8,861
$35,138
$8,798
$37,392
$7,997
MIH
Adjusted EBITDA
($389)
($23)
($282)
($359)
($650)
Total
Net Revenues
Adjusted EBITDA
$144,013
$30,330
$132,331
$28,942
$261,783
$52,251
$263,102
$55,113
$250,965
$51,824
Note: Property adjusted EBITDA shown before corporate expenses
Capitalization
( in millions)
As of
June 30, 2004
Cash
Debt:
Senior Secured Notes due 2010
11.653% Notes due 2007
Credit Facility (1)
Total Debt
$
20.7
$
260.0
15.8
45.7
321.5
$
(1) As of September 28, 2004, $35.6 million drawn 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
THE MAJESTIC STAR CASINO, LLC
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)
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)
Retroactive property tax charge (10)
Adjusted EBITDA
For the Periods Ended June 30,
2003
2004
(in thousands)
2,457
$
(5,364)
$
7,039
13,301
2,809
3,792
75
124
12,380
$
$ 11,853
1,199
1,238
2,072
(575)
2,235
15,076
$
$ 15,326
For the Year Ended December 31,
2001 (8)
2002
2003
(in thousands)
(280)
$
4,847
$
$ (10,248)
14,636
14,261
17,219
8,082
6,617
5,834
149
142
156
$ 22,587
$ 25,867
$ 12,961
2,798
2,424
2,395
10,008
2,072
(1,085)
(1,150)
$ 25,385
$ 27,206
$ 26,286
ADJUSTED EBITDA
RECONCILIATION
For the Periods Ended June 30,
2004
2003
Fitzgeralds Tunica
(in thousands)
Net income
$ 7,072
$
7,787
Interest income, net
(5)
(7)
Depreciation and amortization (1)
4,234
3,833
EBITDA
$ 11,301
$
11,613
For the Year Ended December 31,
2003
2002
2001 (8)
(in thousands)
$ 13,033
$ 14,882
$ 18,606
(11)
(28)
4
7,820
7,373
482
$ 20,842
$ 22,227
$ 19,092
For the Periods Ended June 30,
2004
2003
Fitzgeralds Black Hawk
(in thousands)
Net income
$ 4,843
$
3,113
Interest income, net
Progressive expense (9)
Depreciation and amortization (1)
929
824
EBITDA
$ 5,772
$
3,937
For the Year Ended December 31,
2003
2002
2001 (8)
(in thousands)
$
7,131
$ 7,269
$ 8,342
(8)
(52)
(421)
1,730
1,537
128
$
8,861
$ 8,798
$ 7,997
ADJUSTED EBITDA
RECONCILIATION
Majestic Investor Holdings
Net loss
Interest expense, net
Depreciation and amortization
Other non-operating expenses (2)
EBITDA
Loss (gain) on bond redemption (4)(5)
Discontinued operations (6)
Adjusted EBITDA
For the Periods Ended June 30,
2004
2003
(in thousands)
$ (1,476)
$ (10,290)
948
8,817
139
1,332
19
$
(389)
$
(122)
99
$
(389)
$
(23)
For the Year Ended December 31,
2003
2002
2001 (8)
(in thousands)
$ (50,313)
$ (22,924)
$ (2,207)
13,971
18,000
993
2,105
2,597
169
30
42
$ (34,207)
$
(2,285)
$ (1,045)
21,952
(69)
11,973
1,995
395
$
(282)
$
(359)
$
(650)
ADJUSTED EBITDA
RECONCILIATION
Total Consolidated
Net (loss) income (property operations)
Corporate expense
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)
Discontinued operations (6)
Retroactive gaming tax charge (7)
Retroactive property tax charge (10)
Adjusted EBITDA
For the Periods Ended June 30,
2004
2003
(in thousands)
$
5,075
$
3,067
(1,680)
(1,661)
14,244
15,849
9,094
8,798
124
94
$ 26,857
$ 26,147
1,238
1,199
99
2,072
2,235
(575)
$ 30,330
$ 28,942
For the Year Ended December 31,
2003
2002
2001 (8)
(in thousands)
$ (40,397)
$
4,074
$ 24,461
(3,456)
(2,759)
31,179
32,225
15,581
(421)
17,489
18,124
8,861
186
184
149
$ 5,001
$ 51,848
$ 48,631
2,395
2,424
2,798
31,960
(69)
11,973
1,995
395
2,072
(1,150)
(1,085)
$ 52,251
$ 55,113
$ 51,824
ADJUSTED EBITDA
RECONCILIATION
Notes:
(1) Amortization reflects write-down of deferred financing costs related to the Company's note offerings and
write-down of intangible 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.
(5) Gain on redemption of 11.653% notes.
(6) Results of our discontinued operation, Barden Nevada Gaming, LLC, plus a $10.0 million write-down
of the assets to fair market value in 2003.
(7) Non-recurring retroactive gaming tax assessment in June 2003.
(8) 2001 reflects combined pre and post acquisition 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 acquisition.
(9) The Company added to its progressive liabilities those liabilities for the reset amounts of progressive
slot machines that the predecessor company had previously written off its books.
(10) Charges related to 2002 and 2003 from retroactive property tax assessment recognized in
the first quarter of 2004.