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MTR Gaming Group Nets $14.5M for 2004
CHESTER, W. Va.-- MTR Gaming Group Inc., owner/operator of Mountaineer Race Track & Gaming Resort, today reported net income of $14.5 million for fiscal year 2004 and $2.6 million for the fourth quarter. "While the fourth quarter and full year financial results are consistent with our guidance, our performance continues to reflect the carrying costs of the numerous development opportunities on which we are focusing," stated Edson R. Arneault, president and chief executive officer.Fourth quarter total revenues were $71.2 million compared to $70.4 million in the 2003 period, and the net income was up 12%, or 9 cents per diluted share, from a year ago. The quarterly results include several pre-tax items including a loss of $332,000 related to the company's decision not to pursue relocating the planned racetrack in Erie, Pa.,to an alternate site and a loss of $108,000 relating to its investment in the Minnesota racetrack/card room joint venture.Net win from slot operations at Mountaineer was $57.8 million, producing net win-per-day-per-machine of $198 based on an average of 3,217 machines for the current quarter, which is comparable to $198 with an average of 3,224 machines in the fourth quarter of 2003.For fiscal 2004, total revenues were $315.2 million, up 7% from 2003. 2004 net income represents a decrease from $15.1 million for fiscal 2003. Net win from slot operations at Mountaineer increased 6% to $258.7 million, producing net win-per-day-per-machine of $220 based on an average of 3,219 machines, compared to $214 with an average of 3,140 machines in 2003.Recent business development highlights include: The Pennsylvania Supreme Court's Dec. 30, 2004, favorable resolution of the last challenge to MTR's racing license permits the company to move forward with the development of Presque Isle Downs at its licensed site in Summit Township. The company expects to break ground in late spring. In January, MTR's 50% joint venture, North Metro Harness Initiative, was granted a license to build a racetrack in Columbus Township, Minnesota. A public interest group has sought judicial review. Minnesota's licensed racetracks are permitted to operate a card room with up to 50 tables offering "non-banked" games (those in which the players play only against each other instead of against the house), subject to completion of the racetrack's first 50-day live race meet and regulatory approval of a card room plan of operation. Yesterday marked the first day that MTR is independently operating its Binion's facility in downtown Las Vegas following the conclusion of its joint operating agreement with Harrah's. The company has renamed the facility Binion's Gambling Hall & Hotel.In addition to Mountaineer, MTR Gaming Group Inc., through subsidiaries, owns and operates Scioto Downs in Columbus, Ohio; the Ramada Inn and Speedway Casino in North Las Vegas; Binion's Gambling Hall & Hotel in Las Vegas; and holds a license to build Presque Isle Downs, a thoroughbred racetrack with pari-mutuel wagering in Erie, Pa. The company also owns a 50% interest in the North Metro Harness Initiative LLC, which has a license to construct and operate a harness racetrack 30 miles north of downtown Minneapolis. MTR also 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: www.mtrgaming.com"