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MTR Gaming Posts 3Q Net Loss of $3.5 Million
CHESTER, W.Va. -- MTR Gaming Group Inc. reports a third-quarter net loss of $3.6 million, or 13 cents per diluted share. This compares with net income of $5.3 million, or 19 cents per diluted share, for the third quarter of 2012.
On Sept. 9, the company and Eldorado HoldCo LLC entered into a definitive agreement under which MTR will combine with Eldorado in a strategic business combination.
MYR net revenues for the third quarter were $128.9 million, 11.5% less than the same period a year ago.
“Scioto Downs continued to maintain a strong market position but the overall market growth in Columbus fell short of our expectations in the quarter,” said Joseph L. Billhimer, president and CEO, in a prepared statement.
“Additionally, our results at Mountaineer Park and Presque Isle Downs were impacted by the aggressive marketing and promotional environment from our competitors, along with the general uncertainty in the economy. We remain extremely confident in the Columbus market and will continue to improve our existing operations through targeted marketing programs, thoughtful capital improvements and cost containment initiatives that do not affect the guest service for which our properties are known.”
Net revenues at Mountaineer Casino, Racetrack & Resort here fell 10.4% to $50.6 million and decreased $1.1 million or 2.2% from the second quarter. Revenues from slot machines decreased by $5.2 million while revenue from table gambling decreased by $600,000 compared to the same quarter of 2012. The decrease in table gambling revenues and adjusted EBITDA for the third quarter was attributed to ongoing competition from other gambling opportunities in Ohio.
Net revenues at Scioto Downs, Columbus, decreased 13.1% to $36.2 million and were $1.4 million less or 3.6% off from the second quarter. The decrease in revenues and adjusted EBITDA was primarily attributed to the addition of a competitor in the Columbus market in October 2012. However, Scioto Downs has maintained an approximate 50% share of the Columbus slots market, Billhimer said.
Net revenues at Presque Isle Downs & Casino, Erie, Pa., fell 11.4% to $42 million during the quarter and were the same as the second quarter. Revenues from slots and table gambling decreased by $4.6 million and $900,000, respectively, compared to the same quarter of 2012. The decrease in net revenues and adjusted EBITDA for the third quarter was attributed to increased gaming competition from Ohio gaming venues.
For the nine months ended Sept. 30, MTR’s net revenues were 3.2% higher -- $383 million – than the nine months ended Sept. 30, 2012. The 2013 year-to-date net loss was $2 million, or 7 cents per diluted share and includes $2.7 million in strategic initiative costs. In the same period last year, the company reported a net loss of $200,000, or one cent per diluted share, which included $2.7 million of project-opening costs and a loss of $300,000 from discontinued operations.
As of Sept. 30, MTR had $86.1 million in cash and cash equivalents, $4.1 million in restricted cash and $558.3 million in total debt, net of discount. In addition, the company has $20 million available for borrowing under its revolving line of credit.
Published by The Business Journal, Youngstown, Ohio.
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