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"MTR Reports Higher Revenues, Lower Earnings"
"CHESTER, W.Va. -- MTR Gaming Group Inc. yesterday reported second-quarter revenues rose 10%, to $83.2 million, but net income fell to $3 million, or 10 cents per share, compared to $3.5 million, or 12 cents per share, in the second quarter of 2003.MTR Gaming Group operates the Mountaineer Race Track & Gaming Resort here; Scioto Downs in Columbus, Ohio; the Ramada Inn and Speedway Casino in North Las Vegas; and Binion's Horseshoe Hotel & Casino in Las Vegas. "We are pleased with the revenue levels for the quarter, which are essentially in line with our expectations," said Edson R. Arneault, president and chief executive officer.For the first half of 2004, total revenues rose 14% to $158.8 million, while net income was $6.0 million, or 21 cents per, compared to $6.9 million or 24 cents per share in 2003. Last year's period included a $461,000 gain on the sale of property related to condemnation for the widening of West Virginia's State Route 2, the company noted, whereas the current quarter included a $31,000 gain. In addition, marketing expenses for the period reflect a temporary freeze in reimbursements from the West Virginia Tourism Board. The company did not receive an expected $400,000 reimbursement from the state, compared to a $470,000 reimbursement in the second quarter of last year. New grants in the amount of $1.1 million, payable to Mountaineer for qualifying expenses, have been approved for the balance of the year. Net win from slot operations at Mountaineer rose 7% to $67.8 million, producing net win-per-day-per-machine of $231 based on an average of 3,220 machines for the current quarter, compared to $224 with an average of 3,114 machines in the second quarter of 2003, the company said.During the first six months, et win at Mountaineer rose 12% to $132.3 million, producing net win-per-day-per-machine of $226. The company said it expects total revenues this year of $323 million to 335 million, and net income of $15 million to17 million. MTR's earnings report noted that Pennsylvania has approved slot machines at five free-standing slot parlors and two at resorts. The bill applies to the company's Presque Isle Downs project in Erie.The Pennsylvania Supreme Court has quashed an appeal filed by Pittsburgh Palisades Park, an applicant for a racing license, challenging the Racing Commission's reinstatement of the company's license to build Presque Isle Downs. MTR has filed a motion with the commission to permit it to relocate Presque Isle Downs from Summit Township to a site downtown on the Lake Erie waterfront and to extend the time by which the project must be built.In addition, MTR is in discussions with the Pittsburgh Penguins to be their partner and operate a slot parlor in downtown Pittsburgh in the event the Penguins receive the license. MTR and a partner also have filed an application to build Keystone Downs, a thoroughbred track, in Allegheny County, Pa.In the second quarter, MTR acquired a 50% interest in a subsidiary of Southwest Casino and Hotel Corp., which has filed an application to construct and operate a harness racetrack and card room in Minnesota."We are optimistic about MTR's near and long-term outlook as we execute our strategy to further develop and expand existing operations, and diversify and leverage our expertise by building or acquiring other middle-market gaming and/or parimutuel businesses," Arneault said.Following yesterday's release of second-quarter financial results, Arneault addressed shareholders at MTR's 2003 annual meeting in New York.Visit MTR Gaming Group at www.mtrgaming.com"