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Published:
MTR Gaming Group Announces Third Quarter Results
CHESTER, W. Va. - (BUSINESS WIRE) - MTR Gaming Group, Inc. (NasdaqGS: MNTG) today announced financial
results for the third quarter and nine months ended September 30, 2009.
Current and prior-year results reflect the presentation of Running Aces
Harness Park, Jackson Harness Raceway, the Ramada Inn and Speedway
Casino and Binion's Gambling Hall & Hotel as discontinued operations.
See attached tables (including Reconciliation of GAAP net income (loss)
to Non-GAAP EBITDA).
For the third quarter of 2009, the Company's net revenues from
continuing operations were $119.5 million, a decline of 9% from $130.8
million in the same period of 2008. EBITDA from continuing operations
was $17.2 million, down 24% (after a severance charge of $0.1 million
and strategic costs associated with lobbying and gaming efforts in Ohio
of $3.7 million) compared to $22.7 million in the third quarter of 2008.
The decrease in EBITDA from continuing operations is directly
attributable to the strategic costs associated with Ohio, as well as
increased marketing costs at MTR's West Virginia property in response to
increased competition, primarily from the opening of the Rivers Casino
in downtown Pittsburgh, Pennsylvania.
During the third quarter of 2009, corporate operating expenses
(exclusive of the $3.7 million of strategic costs associated with Ohio)
decreased 35% to $2.2 million compared to $3.5 million in the third
quarter of 2008 as a result of cost containment efforts.
The Company reported net income of $577,000 or $0.02 per diluted share,
which included a $2.8 million pre-tax loss associated with MTR's debt
refinancing and the aforementioned $3.7 million of strategic costs
associated with lobbying and gaming efforts in Ohio, or $0.20 per
diluted share in the aggregate. Additionally, net income included income
from discontinued operations in the amount of $2.7 million or $0.10 per
diluted share, resulting from the reversal of a $2.9 million deferred
tax asset valuation allowance associated with certain impairment losses
that were recorded in the third quarter of 2008. In the same period last
year, the Company reported a net loss of $8.2 million or $0.30 per
share, of which a loss of $11.7 million or $0.43 per share was from
discontinued operations.
Net revenues at Mountaineer Casino, Racetrack & Resort decreased 11% to
$68.9 million in the third quarter of 2009 compared to $77.3 million in
the third quarter of 2008. Table gaming at Mountaineer generated $11.4
million of revenues compared to $13.2 million in the prior-year period,
while revenues from slots decreased by $3.7 million compared to the same
quarter in 2008. The decrease in revenue is primarily attributable to
competitive pressures and weak economic conditions. The property
generated EBITDA of $13.0 million versus $15.5 million in the comparable
quarter of 2008.
Net revenues at Presque Isle Downs & Casino decreased 5% to $49.2
million during the third quarter of 2009 compared to $51.5 million
during the same period of 2008. The property generated EBITDA of $10.3
million versus $10.8 million in the comparable quarter of 2008. The
decrease in EBITDA is attributable to the decline in revenue and $0.4
million of incremental real estate tax expense resulting from an
increase in the property's assessed value, partially offset by
operational efficiencies.
"The voters of Ohio approved Issue 3 yesterday, which will increase the
competition in our regional markets starting around 2013," said Robert
Griffin, President and Chief Executive Officer of MTR Gaming Group. "We
are considering several different alternatives in order to proactively
prepare for the new competition. Although this may appear to be a
negative, we believe that it may result in slots at tracks, as the
Governor has proposed, with better economic terms than were originally
discussed. To that end we are working diligently to have this initiative
reintroduced in the state. In terms of our current operations, we are
delighted with the results we have seen thus far at Mountaineer since
adding free play on September 1, which has enhanced its competitive
position in the Ohio Valley."
For the first nine months of 2009, MTR's total net revenues decreased 5%
to $350.3 million from $369.5 million in the first nine months of 2008.
However, EBITDA from continuing operations decreased less than 1% to
$56.6 million (after severance costs of $0.4 million and strategic costs
associated with lobbying and gaming efforts in Ohio of $4.1 million)
from $57.0 million in the same period last year. Absent these one-time
charges, EBITDA from continuing operations was up 7% from the prior-year
period.
The 2009 year-to-date net income was $1.7 million or $0.06 per diluted
share, of which income of $1.4 million or $0.05 per diluted share was
from discontinued operations. In the same period last year, the Company
reported a net loss of $13.2 million or $0.48 per share, which included
a loss of $13.5 million or $0.49 per share from discontinued operations.
Mr. Griffin further added, "We remain focused on increasing revenue and
maximizing profits at our current operations, and we believe the advent
of free play at Mountaineer is having a positive effect. Looking into
next year, we hope that Ohio voters will approve the referendum allowing
for video lottery terminals at racetracks."
Balance Sheet and Liquidity
During the third quarter, MTR successfully completed its offering of
$250 million of 12.625% senior secured notes due 2014 at an issue price
of 95.248%, with the proceeds used to pay down outstanding debt. On
October 13, 2009, MTR completed an additional $10 million offering of
the same senior secured notes at an issue price of 96%, and amended its
senior secured credit facility to reduce the borrowing capacity from $20
million to $10 million.
Conference Call
Management will conduct a conference call focusing on the financial
results and corporate developments at 4:30 PM EST on Thursday, November
5, 2009. Interested parties may participate in the call by dialing (877)
407-4018. Please call in 10 minutes before the call is scheduled to
begin and ask for the MTR Gaming call (conference ID #334841).
The conference call will be webcast live via the Investor Relations
section of the Company's website at www.mtrgaming.com.
To listen to the live webcast please go to the website at least 15
minutes early to register, download and install any necessary audio
software. If you are unable to listen to the live call, the conference
call will be archived on the Investor Relations section of the Company's
website.
Reconciliation of Non-GAAP Measures to GAAP
EBITDA represents earnings (losses) before interest, income taxes,
depreciation and amortization, gain (loss) on disposal of property, loss
on debt modification and equity in loss of unconsolidated joint venture.
EBITDA is not a measure of performance or liquidity calculated in
accordance with generally accepted accounting principles ("GAAP" ), is
unaudited and should not be considered as an alternative to, or more
meaningful than, net income or income from operations as an indicator of
our operating performance, or cash flows from operating activities, as a
measure of liquidity. EBITDA has been presented as a supplemental
disclosure because it is a widely used measure of performance and basis
for valuation of companies in our industry. Uses of cash flows that are
not reflected in EBITDA include capital expenditures, interest payments,
income taxes, and debt principal repayments. Moreover, other companies
that provide EBITDA information may calculate EBITDA differently than we
do. A reconciliation of GAAP income (loss) from continuing operations
and income (loss) from discontinued operations to EBITDA is included in
the financial tables accompanying this release.
About MTR Gaming Group
MTR Gaming Group, Inc., through subsidiaries, owns and operates
Mountaineer Casino, Racetrack & Resort in Chester, West Virginia;
Presque Isle Downs & Casino in Erie, Pennsylvania; and Scioto Downs in
Columbus, Ohio. For more information, please visit www.mtrgaming.com.
Except for historical information, this press release contains
forward-looking statements concerning, among other things the prospects
for improving the results of our operations at Mountaineer and Presque
Isle Downs and the prospects for video lottery gaming at Scioto Downs.
Such statements are subject to a number of risks and uncertainties that
could cause the statements made to be incorrect and/or for actual
results to differ materially. Those risks and uncertainties include, but
are not limited to, the impact of new competition for Mountaineer and
Presque Isle Downs, the effectiveness of our marketing programs, the
enactment of future gaming legislation in the jurisdictions in which we
operate (including the recent referendum to permit casino gaming in
Ohio), changes in, or failure to comply with, laws, regulations or the
conditions of our gaming licenses, accounting standards or environmental
laws, including adverse changes in the gaming tax rates that the Company
currently pays in its various jurisdictions, general economic
conditions, disruption (occasioned by weather conditions or work
stoppages) of our operations, the success and growth of table gaming at
Mountaineer, the realization of the expected benefits of non-taxable
promotional credits at Mountaineer, our ability to improve our operating
margins, our continued suitability to hold and obtain renewals of our
gaming and racing licenses, our ability to comply with the covenants of
our various debt instruments and/or our ability to obtain additional
financing, if and when needed, and other factors described in the
Company's periodic reports filed with the Securities and Exchange
Commission. The Company does not intend to update publicly any
forward-looking statements, except as may be required by law. The
cautionary advice in this paragraph is permitted by the Private
Securities Litigation Reform Act of 1995.
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MTR GAMING GROUP, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(dollars in thousands, except per share amounts)
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(unaudited)
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Three Months Ended
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Nine Months Ended
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September 30
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September 30
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2009
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2008
|
|
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2009
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2008
|
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Revenues:
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|
|
|
|
|
|
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Gaming
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$
|
106,408
|
|
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$
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114,135
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$
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315,904
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|
$
|
327,737
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Pari-mutuel commissions
|
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4,574
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|
|
|
5,151
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|
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|
10,665
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|
|
|
11,900
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|
Food, beverage and lodging
|
|
|
9,181
|
|
|
|
10,648
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|
|
|
25,284
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|
|
|
28,610
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|
Other
|
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|
2,285
|
|
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|
2,995
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|
|
|
6,550
|
|
|
|
7,343
|
|
|
Total revenues
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|
122,448
|
|
|
|
132,929
|
|
|
|
358,403
|
|
|
|
375,590
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|
Less promotional allowances
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|
(2,970
|
)
|
|
|
(2,145
|
)
|
|
|
(8,093
|
)
|
|
|
(6,076
|
)
|
|
Net revenues
|
|
|
119,478
|
|
|
|
130,784
|
|
|
|
350,310
|
|
|
|
369,514
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|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
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|
|
|
|
|
|
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Expenses of operating departments:
|
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|
|
|
|
|
|
|
|
Gaming
|
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|
66,078
|
|
|
|
71,427
|
|
|
|
197,459
|
|
|
|
207,717
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|
|
Pari-mutuel commissions
|
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|
4,160
|
|
|
|
4,672
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|
|
|
10,280
|
|
|
|
11,498
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|
|
Food, beverage and lodging
|
|
|
6,323
|
|
|
|
7,942
|
|
|
|
18,210
|
|
|
|
22,666
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Other revenue
|
|
|
1,698
|
|
|
|
2,612
|
|
|
|
4,894
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|
|
|
6,888
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|
|
Marketing and promotions
|
|
|
5,689
|
|
|
|
4,322
|
|
|
|
16,637
|
|
|
|
12,423
|
|
|
General and administrative
|
|
|
18,291
|
|
|
|
17,156
|
|
|
|
46,223
|
|
|
|
51,301
|
|
|
Depreciation
|
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|
7,443
|
|
|
|
7,396
|
|
|
|
22,031
|
|
|
|
22,394
|
|
|
Loss on disposal of property
|
|
|
31
|
|
|
|
1
|
|
|
|
169
|
|
|
|
1
|
|
|
Total operating expenses
|
|
|
109,713
|
|
|
|
115,528
|
|
|
|
315,903
|
|
|
|
334,888
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
9,765
|
|
|
|
15,256
|
|
|
|
34,407
|
|
|
|
34,626
|
|
|
|
|
|
|
|
|
|
|
|
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Other income (expense):
|
|
|
|
|
|
|
|
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Other
|
|
|
(39
|
)
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|
|
-
|
|
|
|
(39
|
)
|
|
|
-
|
|
|
Interest income
|
|
|
9
|
|
|
|
53
|
|
|
|
448
|
|
|
|
196
|
|
|
Interest expense
|
|
|
(11,849
|
)
|
|
|
(10,216
|
)
|
|
|
(31,729
|
)
|
|
|
(30,891
|
)
|
|
Loss on debt modification and extinguishment
|
|
|
(2,773
|
)
|
|
|
-
|
|
|
|
(2,773
|
)
|
|
|
(3,356
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations before income taxes
|
|
|
(4,887
|
)
|
|
|
5,093
|
|
|
|
314
|
|
|
|
575
|
|
|
Benefit (provision) for income taxes
|
|
|
2,779
|
|
|
|
(1,622
|
)
|
|
|
(3
|
)
|
|
|
(261
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
|
(2,108
|
)
|
|
|
3,471
|
|
|
|
311
|
|
|
|
314
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations before income taxes and
non-controlling interest
|
|
|
(292
|
)
|
|
|
(12,567
|
)
|
|
|
(2,294
|
)
|
|
|
(15,143
|
)
|
|
Benefit for income taxes
|
|
|
2,983
|
|
|
|
841
|
|
|
|
3,664
|
|
|
|
1,625
|
|
|
Income (loss) from discontinued operations before non-controlling
interest
|
|
|
2,691
|
|
|
|
(11,726
|
)
|
|
|
1,370
|
|
|
|
(13,518
|
)
|
|
Non-controlling interest
|
|
|
(6
|
)
|
|
|
15
|
|
|
|
-
|
|
|
|
30
|
|
|
Income (loss) from discontinued operations
|
|
|
2,685
|
|
|
|
(11,711
|
)
|
|
|
1,370
|
|
|
|
(13,488
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
577
|
|
|
$
|
(8,240
|
)
|
|
$
|
1,681
|
|
|
$
|
(13,174
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share - basic:
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
$
|
(0.08
|
)
|
|
$
|
0.13
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
Income (loss) from discontinued operations
|
|
|
0.10
|
|
|
|
(0.43
|
)
|
|
|
0.05
|
|
|
|
(0.49
|
)
|
|
Net income (loss)
|
|
$
|
0.02
|
|
|
$
|
(0.30
|
)
|
|
$
|
0.06
|
|
|
$
|
(0.48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share - diluted:
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
$
|
(0.08
|
)
|
|
$
|
0.13
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
Income (loss) from discontinued operations
|
|
|
0.10
|
|
|
|
(0.43
|
)
|
|
|
0.05
|
|
|
|
(0.49
|
)
|
|
Net income (loss)
|
|
$
|
0.02
|
|
|
$
|
(0.30
|
)
|
|
$
|
0.06
|
|
|
$
|
(0.48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
27,475,260
|
|
|
|
27,475,260
|
|
|
|
27,475,260
|
|
|
|
27,475,260
|
|
|
Diluted
|
|
|
27,475,260
|
|
|
|
27,475,260
|
|
|
|
27,475,260
|
|
|
|
27,475,260
|
|
|
|
|
|
|
MTR GAMING GROUP, INC.
|
|
SELECTED FINANCIAL INFORMATION
|
|
(dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues from continuing operations:
|
|
|
|
|
|
|
|
|
|
Mountaineer Casino, Racetrack & Resort
|
|
$
|
68,882
|
|
|
$
|
77,255
|
|
|
$
|
207,716
|
|
|
$
|
226,663
|
|
|
Presque Isle Downs & Casino
|
|
|
49,173
|
|
|
|
51,497
|
|
|
|
139,985
|
|
|
|
139,237
|
|
|
Scioto Downs
|
|
|
1,402
|
|
|
|
2,029
|
|
|
|
2,579
|
|
|
|
3,605
|
|
|
Corporate
|
|
|
21
|
|
|
|
3
|
|
|
|
30
|
|
|
|
9
|
|
|
Consolidated net revenues from continuing operations
|
|
$
|
119,478
|
|
|
$
|
130,784
|
|
|
$
|
350,310
|
|
|
$
|
369,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations:
|
|
|
|
|
|
|
|
|
|
Mountaineer Casino, Racetrack & Resort
|
|
$
|
12,987
|
|
|
$
|
15,452
|
|
|
$
|
37,804
|
|
|
$
|
41,279
|
|
|
Presque Isle Downs & Casino
|
|
|
10,333
|
|
|
|
10,755
|
|
|
|
29,443
|
|
|
|
26,809
|
|
|
Scioto Downs
|
|
|
(154
|
)
|
|
|
(87
|
)
|
|
|
(986
|
)
|
|
|
(1,074
|
)
|
|
Corporate
|
|
|
(5,927
|
)
|
|
|
(3,467
|
)
|
|
|
(9,654
|
)
|
|
|
(9,993
|
)
|
|
Consolidated EBITDA from continuing operations
|
|
$
|
17,239
|
|
|
$
|
22,653
|
|
|
$
|
56,607
|
|
|
$
|
57,021
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from discontinued operations:
|
|
|
|
|
|
|
|
|
|
Binion's Gambling Hall & Hotel
|
|
|
(277
|
)
|
|
|
(32
|
)
|
|
|
(937
|
)
|
|
|
(1,543
|
)
|
|
Ramada Inn and Speedway Casino
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
43
|
|
|
|
(755
|
)
|
|
Jackson Racing / Jackson Harness Raceway
|
|
|
480
|
|
|
|
(213
|
)
|
|
|
315
|
|
|
|
(457
|
)
|
|
MTR-Harness / Running Aces Harness Park
|
|
|
(55
|
)
|
|
|
(11
|
)
|
|
|
(265
|
)
|
|
|
(55
|
)
|
|
Consolidated EBITDA
|
|
$
|
17,387
|
|
|
$
|
22,392
|
|
|
$
|
55,763
|
|
|
$
|
54,211
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________________________________________________________________
|
|
|
|
|
|
|
|
|
|
|
|
The following tables set forth a reconciliation of income (loss)
from continuing operations and income (loss) from discontinued
operations, GAAP financial measures, to EBITDA, a non-GAAP financial
measure.
|
|
_______________________________________________________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA FROM CONTINUING OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mountaineer Casino, Racetrack & Resort:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
14,314
|
|
|
$
|
6,651
|
|
|
$
|
20,410
|
|
|
$
|
16,093
|
|
|
Interest expense, net of interest income
|
|
|
1,056
|
|
|
|
2,253
|
|
|
|
5,522
|
|
|
|
6,771
|
|
|
(Benefit) provision for income taxes
|
|
|
(6,858
|
)
|
|
|
2,902
|
|
|
|
127
|
|
|
|
7,264
|
|
|
Depreciation
|
|
|
3,672
|
|
|
|
3,646
|
|
|
|
10,849
|
|
|
|
11,151
|
|
|
Loss on disposal of property
|
|
|
30
|
|
|
|
-
|
|
|
|
123
|
|
|
|
-
|
|
|
Loss on debt modification and extinguishment
|
|
|
773
|
|
|
|
-
|
|
|
|
773
|
|
|
|
-
|
|
|
EBITDA from continuing operations
|
|
$
|
12,987
|
|
|
$
|
15,452
|
|
|
$
|
37,804
|
|
|
$
|
41,279
|
|
|
|
|
|
|
|
|
|
|
|
|
Presque Isle Downs & Casino:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
12,889
|
|
|
$
|
4,833
|
|
|
$
|
18,476
|
|
|
$
|
10,524
|
|
|
Interest expense, net of interest income
|
|
|
170
|
|
|
|
361
|
|
|
|
292
|
|
|
|
1,221
|
|
|
(Benefit) provision for income taxes
|
|
|
(6,287
|
)
|
|
|
2,122
|
|
|
|
115
|
|
|
|
4,751
|
|
|
Depreciation
|
|
|
3,561
|
|
|
|
3,439
|
|
|
|
10,560
|
|
|
|
10,313
|
|
|
EBITDA from continuing operations
|
|
$
|
10,333
|
|
|
$
|
10,755
|
|
|
$
|
29,443
|
|
|
$
|
26,809
|
|
|
|
|
|
|
|
|
|
|
|
|
Scioto Downs:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(1,093
|
)
|
|
$
|
(368
|
)
|
|
$
|
(1,692
|
)
|
|
$
|
(1,265
|
)
|
|
Interest expense, net of interest income
|
|
|
22
|
|
|
|
27
|
|
|
|
70
|
|
|
|
83
|
|
|
Provision (benefit) for income taxes
|
|
|
675
|
|
|
|
27
|
|
|
|
(11
|
)
|
|
|
(571
|
)
|
|
Depreciation
|
|
|
203
|
|
|
|
227
|
|
|
|
608
|
|
|
|
679
|
|
|
Other
|
|
|
39
|
|
|
|
-
|
|
|
|
39
|
|
|
|
-
|
|
|
EBITDA from continuing operations
|
|
$
|
(154
|
)
|
|
$
|
(87
|
)
|
|
$
|
(986
|
)
|
|
$
|
(1,074
|
)
|
|
|
|
MTR GAMING GROUP, INC.
|
|
SELECTED FINANCIAL INFORMATION (continued)
|
|
(dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
2009
|
|
|
|
2008
|
|
|
EBITDA FROM CONTINUING OPERATIONS (continued):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(28,218
|
)
|
|
$
|
(7,645
|
)
|
|
$
|
(36,883
|
)
|
|
$
|
(25,038
|
)
|
|
Interest expense, net of interest income
|
|
|
10,592
|
|
|
|
7,522
|
|
|
|
25,397
|
|
|
|
22,620
|
|
|
Provision (benefit) for income taxes
|
|
|
9,691
|
|
|
|
(3,429
|
)
|
|
|
(228
|
)
|
|
|
(11,183
|
)
|
|
Depreciation
|
|
|
7
|
|
|
|
84
|
|
|
|
14
|
|
|
|
251
|
|
|
Loss on disposal of property
|
|
|
1
|
|
|
|
1
|
|
|
|
46
|
|
|
|
1
|
|
|
Loss on debt modification and extinguishment
|
|
|
2,000
|
|
|
|
-
|
|
|
|
2,000
|
|
|
|
3,356
|
|
|
EBITDA from continuing operations
|
|
$
|
(5,927
|
)
|
|
$
|
(3,467
|
)
|
|
$
|
(9,654
|
)
|
|
$
|
(9,993
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
$
|
(2,108
|
)
|
|
$
|
3,471
|
|
|
$
|
311
|
|
|
$
|
314
|
|
|
Interest expense, net of interest income
|
|
|
11,840
|
|
|
|
10,163
|
|
|
|
31,281
|
|
|
|
30,695
|
|
|
(Benefit) provision for income taxes
|
|
|
(2,779
|
)
|
|
|
1,622
|
|
|
|
3
|
|
|
|
261
|
|
|
Depreciation
|
|
|
7,443
|
|
|
|
7,396
|
|
|
|
22,031
|
|
|
|
22,394
|
|
|
Loss on disposal of property
|
|
|
31
|
|
|
|
1
|
|
|
|
169
|
|
|
|
1
|
|
|
Other
|
|
|
39
|
|
|
|
-
|
|
|
|
39
|
|
|
|
-
|
|
|
Loss on debt modification and extinguishment
|
|
|
2,773
|
|
|
|
-
|
|
|
|
2,773
|
|
|
|
3,356
|
|
|
EBITDA from continuing operations
|
|
$
|
17,239
|
|
|
$
|
22,653
|
|
|
$
|
56,607
|
|
|
$
|
57,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Binion's Gambling Hall & Hotel:
|
|
|
|
|
|
|
|
|
|
(Loss) from discontinued operations
|
|
$
|
(181
|
)
|
|
$
|
(21
|
)
|
|
$
|
(616
|
)
|
|
$
|
(1,308
|
)
|
|
Interest income, net of interest expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(29
|
)
|
|
Benefit for income taxes
|
|
|
(96
|
)
|
|
|
-
|
|
|
|
(321
|
)
|
|
|
(879
|
)
|
|
(Gain) loss on disposal of property
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
673
|
|
|
EBITDA from discontinued operations
|
|
$
|
(277
|
)
|
|
$
|
(32
|
)
|
|
$
|
(937
|
)
|
|
$
|
(1,543
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Ramada Inn and Speedway Casino:
|
|
|
|
|
|
|
|
|
|
(Loss) Income from discontinued operations
|
|
$
|
(1
|
)
|
|
$
|
(11
|
)
|
|
$
|
29
|
|
|
$
|
1,477
|
|
|
Interest (income) expense
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
163
|
|
|
Provision (benefit) for income taxes
|
|
|
1
|
|
|
|
(7
|
)
|
|
|
15
|
|
|
|
1,009
|
|
|
Depreciation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
199
|
|
|
Loss (gain) on disposal of property
|
|
|
-
|
|
|
|
13
|
|
|
|
-
|
|
|
|
(3,603
|
)
|
|
EBITDA from discontinued operations
|
|
$
|
-
|
|
|
$
|
(5
|
)
|
|
$
|
43
|
|
|
$
|
(755
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Jackson Racing / Jackson Harness Raceway:
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations
|
|
$
|
24
|
|
|
$
|
(1,937
|
)
|
|
$
|
(85
|
)
|
|
$
|
(2,225
|
)
|
|
Interest expense, net of interest income and non-controlling
interest
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
3
|
|
|
Provision (benefit) for income taxes, net of non-controlling
interest
|
|
|
12
|
|
|
|
(872
|
)
|
|
|
(44
|
)
|
|
|
(1,005
|
)
|
|
Depreciation, net of non-controlling interest
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
|
|
25
|
|
|
Loss on disposal of property, net of non-controlling interest
|
|
|
115
|
|
|
|
-
|
|
|
|
115
|
|
|
|
159
|
|
|
Other
|
|
|
153
|
|
|
|
-
|
|
|
|
153
|
|
|
|
-
|
|
|
Impairment loss
|
|
|
176
|
|
|
|
2,586
|
|
|
|
176
|
|
|
|
2,586
|
|
|
EBITDA from discontinued operations
|
|
$
|
480
|
|
|
$
|
(213
|
)
|
|
$
|
315
|
|
|
$
|
(457
|
)
|
|
|
|
|
|
|
|
|
|
|
|
MTR-Harness / Running Aces Harness Park:
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations
|
|
$
|
2,843
|
|
|
$
|
(9,742
|
)
|
|
$
|
2,042
|
|
|
$
|
(11,432
|
)
|
|
Interest expense, net of interest income
|
|
|
2
|
|
|
|
6
|
|
|
|
7
|
|
|
|
8
|
|
|
(Benefit) provision for income taxes
|
|
|
(2,900
|
)
|
|
|
43
|
|
|
|
(3,314
|
)
|
|
|
(738
|
)
|
|
Equity in loss of North Metro Harness Initiative, LLC
|
|
|
-
|
|
|
|
9,682
|
|
|
|
1,000
|
|
|
|
12,107
|
|
|
EBITDA from discontinued operations
|
|
$
|
(55
|
)
|
|
$
|
(11
|
)
|
|
$
|
(265
|
)
|
|
$
|
(55
|
)
|
|
|
|
MTR GAMING GROUP, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
September 30
|
|
December 31
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
35,895
|
|
|
$
|
29,011
|
|
|
Restricted cash
|
|
|
373
|
|
|
|
929
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$302 in 2009 and $125 in 2008
|
|
|
3,713
|
|
|
|
7,717
|
|
|
Accounts receivable - West Virginia Lottery Commission
|
|
|
1,210
|
|
|
|
-
|
|
|
Inventories
|
|
|
3,929
|
|
|
|
4,445
|
|
|
Deferred financing costs
|
|
|
4,027
|
|
|
|
4,444
|
|
|
Prepaid income taxes
|
|
|
1,702
|
|
|
|
7,059
|
|
|
Deferred income taxes
|
|
|
346
|
|
|
|
1,397
|
|
|
Prepaid expenses and other current assets
|
|
|
5,578
|
|
|
|
4,528
|
|
|
Assets held for deferred compensation
|
|
|
-
|
|
|
|
11,529
|
|
|
Assets of discontinued operations
|
|
|
-
|
|
|
|
36
|
|
|
Total current assets
|
|
|
56,773
|
|
|
|
71,095
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
356,054
|
|
|
|
367,769
|
|
|
Goodwill
|
|
|
1,985
|
|
|
|
1,985
|
|
|
Other intangibles
|
|
|
68,923
|
|
|
|
68,819
|
|
|
Deferred financing costs, net of current portion
|
|
|
11,036
|
|
|
|
2,499
|
|
|
Deposits and other
|
|
|
14,638
|
|
|
|
14,815
|
|
|
Assets of discontinued operations
|
|
|
234
|
|
|
|
728
|
|
|
Total assets
|
|
$
|
509,643
|
|
|
$
|
527,710
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
4,953
|
|
|
$
|
6,869
|
|
|
Accounts payable - gaming taxes and assessments
|
|
|
4,549
|
|
|
|
6,848
|
|
|
Accrued payroll and payroll taxes
|
|
|
3,433
|
|
|
|
3,220
|
|
|
Accrued interest
|
|
|
8,693
|
|
|
|
4,932
|
|
|
Other accrued liabilities
|
|
|
11,404
|
|
|
|
14,486
|
|
|
Construction project and equipment liabilities
|
|
|
2,852
|
|
|
|
1,048
|
|
|
Deferred compensation
|
|
|
-
|
|
|
|
11,547
|
|
|
Current portion of long-term debt and capital lease obligations
|
|
|
8,685
|
|
|
|
20,498
|
|
|
Liabilities of discontinued operations
|
|
|
414
|
|
|
|
1,240
|
|
|
Total current liabilities
|
|
|
44,983
|
|
|
|
70,688
|
|
|
|
|
|
|
|
|
Long-term debt and capital lease obligations, net of current portion
|
|
|
365,628
|
|
|
|
357,112
|
|
|
Long-term deferred compensation
|
|
|
339
|
|
|
|
663
|
|
|
Deferred income taxes
|
|
|
1,324
|
|
|
|
3,644
|
|
|
Total liabilities
|
|
|
412,274
|
|
|
|
432,107
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Common stock
|
|
|
-
|
|
|
|
-
|
|
|
Additional paid-in capital
|
|
|
61,859
|
|
|
|
61,774
|
|
|
Retained earnings
|
|
|
35,694
|
|
|
|
34,013
|
|
|
Accumulated other comprehensive loss
|
|
|
(386
|
)
|
|
|
(386
|
)
|
|
Total shareholders' equity of MTR Gaming Group, Inc.
|
|
|
97,167
|
|
|
|
95,401
|
|
|
Non-controlling interest of discontinued operations
|
|
|
202
|
|
|
|
202
|
|
|
Total shareholders' equity
|
|
|
97,369
|
|
|
|
95,603
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
509,643
|
|
|
$
|
527,710
|
|
MTR Gaming Group, Inc.
David R. Hughes, 724-933-8122
Corporate
Executive VP and Chief Financial Officer
dhughes@mtrgaming.com
www.mtrgaming.com
Copyright © 2009, Business Wire, Inc., All rights reserved. Copyright © 2009, NewsBlaze, Daily NewsTags: Business wire, westvirginia
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