MTR Gaming Reports $7.1 Million Net Loss for 4th Quarter
CHESTER, W.Va. -- MTR Gaming Group Inc. reports a fourth-quarter net loss of $7.1 million, or 25 cents per share, on net revenues of $114.8 million. This compares with a net loss of $5.5 million, or 20 cents per diluted share, for the fourth quarter of 2012.
For the full year, net revenues increased 2.2% to $497.8 million from $487.0 million in 2012 when the net loss was $9.1 million, or 32 cents per diluted share, which included $4.4 million in strategic transaction costs and approximately $3.5 million of income tax expense primarily attributable to additional valuation allowances on deferred tax assets.
In a prepared statement, the president and chief operating officer, Joseph L. Bilhimer, said, “We are pleased with our fourth-quarter performance, despite increased competition, soft economic conditions and inclement weather, especially the performance at our Scioto Downs gaming facility." Presque Isle Downs in Erie, Pa., and Mountaineer Casino, Racetrack & Resort in Chester, W.Va., continued to be affectcted by competition and unfavorable weather, he noted.
In connection with the company’s previously announced strategic business combination with Eldorado HoldCo LLC after which the MTR Gaming and Eldorado will become wholly-owned subsidiaries of Eclair Holdings Co. (which will be renamed Eldorado Resorts Inc.), Bilhimer said the transaction remains subject to various conditions and approvals such as regulatory approvals from gaming regulators in Louisiana, Nevada, Ohio, Pennsylvania and West Virginia, approval by stockholders of MTR Gaming, registration and listing of the new company's shares and customary closing conditions. The transaction is expected to close in the second half of this year.
Net revenues at Mountaineer fell 2.5% to $45.4 million in the fourth quarter of compared to $46.5 million in the same quarter of 2012. Revenues from slots fell $1 million and revenue from table games was flat compared to the same quarter of 2012. The decrease in gambling revenues was attributed to the combination of unfavorable weather and increased competition from Ohio gambing sites.
Net revenues at Presque Isle Downs & Casino fell 9% to $33.5 million from $36.8 million in the fourth quarter of 2012. Revenues from slots and table games decreased by $2.7 million and $500,000, respectively. As at Mountaineer, the decrease was attributed primarily to increased competition from gambling sites in Ohio and unfavorable weather.
Published by The Business Journal, Youngstown, Ohio.
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