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MTR Gaming Reports Increase in First Quarter Revenue
CHESTER, W. Va. -- MTR Gaming Group Inc. today announced revenues were up 19% in the first quarter ended March 31 compared to the 2003 period. Total revenues increased to $75.7 million compared to $63.6 million for the first quarter of 2003. EBITDA, or earnings before interest, taxes, depreciation and amortization, grew at a faster rate, by 21%, to $13.1 million compared to $10.9 million in the first quarter of 2003, the company reported. For the 2004 quarter, the increase in cost of gaming, which impacts EBITDA, includes approximately $1 million more than the first quarter of 2003 for gaming taxes that resulted directly from Mountaineer surpassing the slot revenue threshold that triggers an increased tax rate one month earlier this year. Net income was $3.0 million or $.11 per share compared to $3.3 million or $.12 per share in the first quarter of last year. First quarter 2004 results also included higher interest expense related to the company's $130 million senior notes offering that closed in late March of 2003 as well as increased depreciation from additional facilities, equipment and the acquisition of Scioto Downs. Net win from slot operations at the Mountaineer Race Track & Gaming Resort here rose 18% to $64.5 million, producing net win-per-day-per machine of $220 based on an average of 3,220 machines for the current quarter, compared to $202 with an average of 3,000 machines in the first quarter of 2003."We are pleased to start the year with a strong quarter, highlighted by higher revenues from gaming, parimutuel, food, beverage and lodging, and other revenues, as well as a 21% increase in EBITDA and a solid EBITDA margin of 17.3%," said Edson R. (Ted) Arneault, president and chief executive officer of MTR Gaming Group."We remain optimistic about MTR's near and long-term business prospects at the company's existing properties. In addition, we feel strongly that the Binion's transaction complements and enhances our existing businesses and will be accretive to fiscal 2004 revenues, EBITDA and earnings per share. We remain focused on expansion efforts in Pennsylvania and Minnesota, in line with our strategy to diversify and leverage our expertise by building or acquiring other middle-market gaming and/or parimutuel businesses." Other operational and development highlights during the first quarter reported by the company include:The company acquired Binion's Horseshoe Hotel & Casino, a landmark property in downtown Las Vegas, and entered into a joint operating license agreement with an affiliate of Harrah's. The facility reopened April 1 as scheduled and is currently hosting the 35th Annual World Series of Poker, which began April 22 and runs through May 28.The Pennsylvania Commonwealth Court affirmed the July 17, 2003 unanimous decision of the Racing Commission to reinstate the company's license to build Presque Isle Downs. An applicant for a racing license has sought review in the Pennsylvania Supreme Court. The company will move forward with its development plans once the matter is resolved.Mountaineer entered new long-term agreements with the Horsemen's Benevolent and Protective Association (through Dec. 31, 2006) and the union representing its parimutuel clerks (through Nov. 30, 2008). These agreements are statutory prerequisites to renewal of racing and video lottery licenses. The company also reiterated its previously announced financial guidance for fiscal 2004, including total revenues of $323-335 million, EBITDA of $59-62 million and net income of $15-17 million. The company's guidance assumes that (i) there will be no material new competition; (ii) the Commonwealth Court's decision upholding Presque Isle Downs' license will not be overturned; and (iii) no material changes in economic conditions, West Virginia gaming or tax laws or world events. MTR Gaming Group Inc., through subsidiaries, owns and operates the Mountaineer Race Track & Gaming Resort; Scioto Downs in Columbus, Ohio; the Ramada Inn and Speedway Casino in North Las Vegas; Binion's Horseshoe Hotel & Casino in Las Vegas, which the company operates jointly with an affiliate of Harrah's; and holds a license (judicial challenge pending) to build Presque Isle Downs, a thoroughbred racetrack with pari mutuel racing in Erie, Pa. The Mountaineer facility, the company's primary source of revenues, encompasses a thoroughbred racetrack with off-track betting and export simulcasting, 3,220 slot machines, 359 hotel rooms, golf course, spa & fitness center, theater and events center, convention center and dining and entertainment venues. Visit MTR Gaming Group at www.mtrgaming.com. "