Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
MTR Gaming Group Nets $5.9 Million for Third Quarter
"CHESTER, W. Va. -- Third-quarter revenues at MTR Gaming Group Inc. were $85.2 million compared with $84.1 million for the third quarter of 2003, officials announced late yesterday. Net income was $5.9 million, or 20 cents per diluted share, compared to $6 million or 21 cents per diluted share in the year-ago period. Net win from slot operations at Mountaineer Race Track & Gaming Resort remained constant at $68.6 million, producing net win-per-day-per-machine of $232 based on an average of 3,220 machines for both the current quarter and the third quarter of 2003. Revenues at MTR's Speedway Property in North Las Vegas increased 14% to $2.6 million, and the property generated $180,000 in earnings before interest, taxes, depreciation and amortization, representing an improvement over a $78,000 loss in the same period of 2003. "While traffic was strong at Mountaineer during the quarter, we believe economic conditions, high fuel prices, flooding from the hurricanes in September and, to a lesser degree, the recent proliferation of slot machines in bars, restaurants and fraternal organizations near Mountaineer affected gaming revenues at Mountaineer," said Edson R. (Ted) Arneault, President and chief executive of MTR Gaming Group. "Nonetheless, we continued to focus on controlling costs, which produced strong Ebitda margins at the property for the quarter." For the first nine months of 2004, total revenues rose 9% to $244 million. Net income was $11.9 million, or 41 cents per diluted share, compared to $12.9 million and 45 cents per diluted share for the same period in 2003. The results for the first nine months of 2003 included a net $432,000 gain on the sale of property, whereas the 2004 period included a $45,000 loss. Net win at Mountaineer rose 8% to $200.9 million during the first nine months of 2004, producing net win-per-day-per-machine of $228 based on an average of 3,220 machines for the current period, compared to $220 with an average of 3,112 machines in the 2003 period.Arneault said the company has received notification that Harrah's does not intend to extend the joint operating agreement for Binion's Horseshoe Hotel & Casino for another year. The agreement will expire on March 11, 2005, at which time MTR will begin operating Binion's. The final two tables of the 2005 World Series of Poker will take place at Binion's in accordance with the operating agreement.MTR Gaming is pursuing its project development efforts in West Virginia, Pennsylvania, Minnesota, Michigan and Ohio, including supporting gaming legislative initiatives and pursuing judicial remedies where necessary. "We continue to pursue prudent development opportunities that leverage our knowledge and expertise in the gaming and racino markets," Arneault said. "While the cost of exploring these opportunities may burden near-term results from time to time, we believe our attractive entry costs will provide significant long-term value for our shareholders."For the fourth quarter of 2004, Arneault expects total revenues of $71 million to $73 million.MTR Gaming Group Inc., through subsidiaries, owns and operates the Mountaineer Race Track & Gaming Resort in Chester, W.Va.; Scioto Downs in Columbus, Ohio; the Ramada Inn and Speedway Casino in North Las Vegas, Nev.; Binion's Horseshoe Hotel & Casino in Las Vegas; and holds a license (request for judicial review pending) to build Presque Isle Downs, a thoroughbred racetrack with pari-mutuel racing in Erie, Pa. The Company also owns a 50% interest in the North Metro Harness Initiative LLC which is pursuing a license to construct and operate a harness racetrack and card room 30 miles north of downtown Minneapolis. Additionally, MTR has entered into a definitive agreement to acquire a 90% interest in Jackson Trotting Association LLC, which operates Jackson Harness Raceway in Jackson, Mich.Visit MTR Gaming Group Inc.: www.mtrgaming.com"