CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Separate condensed consolidating financial information for our subsidiary guarantors and non-guarantors of our 9.125% Senior Notes due December 2018 and 9.00% Senior Notes due July 2020 is presented below. The notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of our current and future domestic restricted subsidiaries, all of which are 100% owned by us. The non-guarantors primarily represent special purpose entities, tax holding companies, our less significant operating subsidiaries and our less than wholly owned subsidiaries.

The tables below present the condensed consolidating balance sheets as of March 31, 2013 and December 31, 2012 and the condensed consolidating statements of operations for the three months ended March 31, 2013 and 2012 and the condensed consolidating statements of cash flows for the three months ended March 31, 2013 and 2012. The Company has corrected certain prior year amounts in the current year presentation to reflect certain intercompany activities between the parent and the sub-groups that had previously been excluded from the presentation, and to properly record the impact of certain reclassification entries within the correct sub-group.

Condensed Consolidating Balance Sheets



	March 31, 2013
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Assets
Cash and cash equivalents	$	163,855		$	124,658		$	33,308		$	36,533		$	—		$	358,354
Other current assets	87,965			(8,049		)	43,212			80,866			(986		)	203,008
Property and equipment, net	63,628			1,862,935			495,634			1,190,311			—			3,612,508
Investments in subsidiaries	3,111,455			266,031			14,226			—			(3,391,712		)	—
Intercompany receivable	—			481,285			10			(229		)	(481,066		)	—
Other assets, net	45,491			12,915			76,734			43,762			—			178,902
Intangible assets, net	—			467,712			578,384			61,188			—			1,107,284
Goodwill, net	—			212,795			482,134			—			—			694,929
Total assets	$	3,472,394		$	3,420,282		$	1,723,642		$	1,412,431		$	(3,873,764	)	$	6,154,985

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	192,500		$	—		$	8,259		$	—		$	—		$	200,759
Current liabilities	64,146			241,671			86,710			135,514			(694		)	527,347
Intercompany payable	344,461			—			136,517			—			(480,978		)	—
Long-term debt, net of current maturities	2,544,603			—			1,304,153			788,307			—			4,637,063
Other long-term liabilities	25,796			182,210			38,083			38,442			—			284,531

Common stock	869			31,129			(9,500		)	—			(21,629		)	869
Additional paid-in capital	659,780			2,756,184			250,504			480,833			(3,487,521		)	659,780
Retained earnings (deficit)	(359,094		)	209,088			(90,417		)	(30,665		)	(88,006		)	(359,094		)
Accumulated other comprehensive loss, net	(667		)	—			(667		)	—			667			(667		)
Total Boyd Gaming Corporation stockholders' equity	300,888			2,996,401			149,920			450,168			(3,596,489		)	300,888
Noncontrolling interest	—			—			—			—			204,397			204,397
Total stockholders' equity	300,888			2,996,401			149,920			450,168			(3,392,092		)	505,285
Total liabilities and stockholders' equity	$	3,472,394		$	3,420,282		$	1,723,642		$	1,412,431		$	(3,873,764	)	$	6,154,985

Condensed Consolidating Balance Sheets - continued



	December 31, 2012
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Assets
Cash and cash equivalents	$	2,520		$	118,714		$	36,902		$	34,692		$	—		$	192,828
Other current assets	87,493			(4,371		)	32,862			50,751			(3,970		)	162,765
Property and equipment, net	67,500			1,691,120			500,660			1,365,708			—			3,624,988
Assets held for development	775			330,995			—			—			—			331,770
Investments in subsidiaries	3,089,125			267,777			4,103			—			(3,361,005		)	—
Intercompany receivable	(134,385		)	264,686			10			(224		)	(130,087		)	—
Other assets, net	45,880			12,791			81,856			64,748			—			205,275
Intangible assets, net	—			468,229			589,845			61,564			—			1,119,638
Goodwill, net	—			212,795			482,134			—			—			694,929
Total assets	$	3,158,908		$	3,362,736		$	1,728,372		$	1,577,239		$	(3,495,062	)	$	6,332,193

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	42,500		$	10,341		$	8,729		$	—		$	—		$	61,570
Non-recourse debt	—			—			—			225,113			—			225,113
Current liabilities	66,121			208,399			80,792			109,442			(873		)	463,881
Intercompany payable	—			—			128,198			—			(128,198		)	—
Long-term debt, net of current maturities	2,723,234			—			1,311,295			793,324			—			4,827,853
Other long-term liabilities	23,262			185,717			41,289			36,350			31			286,649

Common stock	869			31,128			—			—			(31,128		)	869
Additional paid-in capital	655,694			2,756,184			250,504			480,833			(3,487,521		)	655,694
Retained earnings (deficit)	(351,810		)	170,967			(91,473		)	(67,823		)	(11,671		)	(351,810		)
Accumulated other comprehensive loss, net	(962		)	—			(962		)	—			962			(962		)
Total Boyd Gaming Corporation stockholders' equity	303,791			2,958,279			158,069			413,010			(3,529,358		)	303,791
Noncontrolling interest	—			—			—			—			163,336			163,336
Total stockholders' equity	303,791			2,958,279			158,069			413,010			(3,366,022		)	467,127
Total liabilities and stockholders' equity	$	3,158,908		$	3,362,736		$	1,728,372		$	1,577,239		$	(3,495,062	)	$	6,332,193

Condensed Consolidating Statements of Operations



	Three Months Ended March 31, 2013
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Net revenues	$	37,175		$	424,664		$	152,350		$	167,577		$	(44,783	)	$	736,983

Costs and expenses
Operating	462			231,768			79,519			88,148			—			399,897
Selling, general and administrative	11,814			61,087			17,229			34,775			—			124,905
Maintenance and utilities	—			21,457			3,579			14,317			—			39,353
Depreciation and amortization	1,714			30,424			22,325			15,608			—			70,071
Corporate expense	13,886			116			1,354			—			—			15,356
Preopening expenses	1,030			2,789			414			4			(1,872		)	2,365
Other operating charges, net	2,849			1,259			137			334			—			4,579
Intercompany expenses	325			31,752			10,836			—			(42,913		)	—
Total costs and expenses	32,080			380,652			135,393			153,186			(44,785		)	656,526

Equity in earnings of subsidiaries	27,812			(4,425		)	—			—			(23,387		)	—
Operating income (loss)	32,907			39,587			16,957			14,391			(23,385		)	80,457

Other expense (income)
Interest expense, net	43,774			2,842			25,259			23,151			—			95,026
Other income	—			—			(518		)	—			—			(518		)
Total other expense, net	43,774			2,842			24,741			23,151			—			94,508

Income (loss) before income taxes	(10,867		)	36,745			(7,784		)	(8,760		)	(23,385		)	(14,051		)
Income taxes	3,583			(1,669		)	(2		)	512			—			2,424
Net income (loss)	(7,284		)	35,076			(7,786		)	(8,248		)	(23,385		)	(11,627		)
Net loss attributable to noncontrolling interest	—			—			—			—			4,343			4,343
Net income (loss) attributable to controlling interest	$	(7,284	)	$	35,076		$	(7,786	)	$	(8,248	)	$	(19,042	)	$	(7,284	)
Comprehensive income (loss)	$	(6,989	)	$	35,076		$	(7,491	)	$	(8,248	)	$	(23,680	)	$	(11,332	)

Condensed Consolidating Statements of Operations - continued



	Three Months Ended March 31, 2012
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Net revenues	$	33,009		$	442,364		$	15,111		$	178,875		$	(36,276	)	$	633,083

Costs and expenses
Operating	456			236,987			15,364			90,422			—			343,229
Selling, general and administrative	11,339			62,721			3,114			32,543			—			109,717
Maintenance and utilities	—			23,948			508			14,307			—			38,763
Depreciation and amortization	2,130			32,061			693			15,130			—			50,014
Corporate expense	12,556			5			310			—			—			12,871
Preopening expenses	384			3,899			(31		)	132			(2,724		)	1,660
Other operating charges, net	29			247			—			(29		)	—			247
Intercompany expenses	332			32,725			495			—			(33,552		)	—
Total costs and expenses	27,226			392,593			20,453			152,505			(36,276		)	556,501

Equity in earnings of subsidiaries	25,979			1,044			—			—			(27,023		)	—
Operating income (loss)	31,762			50,815			(5,342		)	26,370			(27,023		)	76,582

Other expense (income)
Interest expense, net	36,169			3,780			—			23,875			—			63,824
Total other expense, net	36,169			3,780			—			23,875			—			63,824

Income (loss) before income taxes	(4,407		)	47,035			(5,342		)	2,495			(27,023		)	12,758
Income taxes	10,259			(17,402		)	1,437			(577		)	—			(6,283		)
Net income (loss)	5,852			29,633			(3,905		)	1,918			(27,023		)	6,475
Net loss attributable to noncontrolling interest	—			—			—			—			(623		)	(623		)
Net income (loss) attributable to controlling interest	$	5,852		$	29,633		$	(3,905	)	$	1,918		$	(27,646	)	$	5,852
Comprehensive income (loss)	$	5,852		$	29,633		$	(3,905	)	$	4,358		$	(27,023	)	$	8,915

Condensed Consolidating Statements of Cash Flows



	Three Months Ended March 31, 2013
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Cash flows from operating activities
Net cash from operating activities	$	39,351		$	18,438		$	23,025		$	11,020		$	(3,716	)	$	88,118

Cash flows from investing activities
Capital expenditures	(1,028		)	(12,494		)	(5,904		)	(3,155		)	—			(22,581		)
Proceeds from Echelon sale	343,750			—			—			—			—			343,750
Cash paid for LVE option	(187,000		)	—			—			—			—			(187,000		)
Investment in subsidiaries	(3,716		)	—			—			—			3,716			—
Other investing activities	—			—			(79		)	(24		)	—			(103		)
Net cash from investing activities	152,006			(12,494		)	(5,983		)	(3,179		)	3,716			134,066

Cash flows from financing activities
Borrowings under bank credit facility	202,200			—			68,200			103,600			—			374,000
Payments under bank credit facility	(232,025		)	—			(78,863		)	(109,600		)	—			(420,488		)
Debt issuance costs, net	694			—			—			—			—			694
Payments under note payable	(10,341		)	—			(473		)	—			—			(10,814		)
Distributions to parent	9,500			—			(9,500		)	—			—			—
Other financing activities	(50		)	—			—			—			—			(50		)
Net cash from financing activities	(30,022		)	—			(20,636		)	(6,000		)	—			(56,658		)

Net change in cash and cash equivalents	161,335			5,944			(3,594		)	1,841			—			165,526
Cash and cash equivalents, beginning of period	2,520			118,714			36,902			34,692			—			192,828
Cash and cash equivalents, end of period	$	163,855		$	124,658		$	33,308		$	36,533		$	—		$	358,354

Condensed Consolidating Statements of Cash Flows - continued



	Three Months Ended March 31, 2012
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations		Consolidated
							(In thousands)
Cash flows from operating activities
Net cash from operating activities	$	58,559		$	(2,182	)	$	(209	)	$	21,320		$	—	$	77,488

Cash flows from investing activities
Capital expenditures	(7,566		)	(7,736		)	(28		)	(17,466		)	—		(32,796		)
Investment in subsidiaries	(1,390		)	—			—			1,390			—		—
Other investing activities	—			—			—			28			—		28
Net cash from investing activities	(8,956		)	(7,736		)	(28		)	(16,048		)	—		(32,768		)

Cash flows from financing activities
Borrowings under bank credit facility	134,800			—			—			182,900			—		317,700
Payments under bank credit facility	(184,425		)	—			—			(200,600		)	—		(385,025		)
Payments on long-term debt	(44		)	—			—			—			—		(44		)
Payments on obligations of variable interest entity	—			—			—			919			—		919
Other financing activities	117			(179		)	—			(250		)	—		(312		)
Net cash from financing activities	(49,552		)	(179		)	—			(17,031		)	—		(66,762		)

Net change in cash and cash equivalents	51			(10,097		)	(237		)	(11,759		)	—		(22,042		)
Cash and cash equivalents, beginning of period	364			128,185			3,944			46,263			—		178,756
Cash and cash equivalents, end of period	$	415		$	118,088		$	3,707		$	34,504		$	—	$	156,714