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The company noted that 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.
In a release dated August 12, the company stated:
- For the second quarter of 2009, the company's net revenues from continuing operations decreased to $121.1 million, down 4 percent from $125.7 million in the same period of 2008. EBITDA from continuing operations was $19.9 million, up 10 percent (after severance costs of $167,000 and strategic costs associated with lobbying and gaming efforts in Ohio of $350,000) compared to $18.0 million in the second quarter of 2008. The increase in EBITDA from continuing operations is directly attributable to cost containment, a shift in marketing strategies and improved operating performance at Mountaineer Casino, Racetrack & Resort and Presque Isle Downs & Casino. The company reported net income of $352,000 or $0.01 per diluted share, of which a loss of $565,000 or $0.02 per diluted share was from discontinued operations. In the same period last year, the company reported a net loss of $2.3 million or $0.08 per share, of which a loss of $1.6 million, or $0.05 per share, was from discontinued operations.
- During the second quarter of 2009, corporate operating expenses decreased 24 percent to $2.3 million compared to $3.0 million in the second quarter of 2008 as a result of cost containment efforts.
- Net revenues at the Mountaineer Casino, Racetrack & Resort decreased 4 percent to $72.2 million in the second quarter of 2009 compared to $75.4 million in the second quarter of 2008. Table gaming at Mountaineer generated $12.1 million of revenues compared to $11.4 million in the prior-year period, while revenues from slots decreased by $1.6 million compared to the same quarter in 2008. The decrease in slot revenue is primarily attributable to competitive pressures and weak economic conditions. The property generated EBITDA of $12.3 million versus $11.7 million in the comparable quarter of 2008.
- Net revenues at Presque Isle Downs & Casino decreased 2 percent to $47.8 million during the second quarter of 2009 compared to $48.9 million during the same period of 2008. The property generated EBITDA of $10.2 million versus $9.6 million in the comparable quarter of 2008. The increase in EBITDA is directly attributable to operational efficiencies.
"We are pleased that our cost containment efforts resulted in another 10 percent increase in EBITDA," said Robert Griffin, President and Chief Executive Officer of MTR Gaming Group. "Further, we are very happy with Ohio Governor Strickland's recent approval of video lottery terminals at Ohio racetracks. In addition, we are preparing to take advantage of the approved non-taxable promotional credits, or free play, in West Virginia starting in September 2009. We believe that free play will position Mountaineer to compete more effectively in the expanding Ohio Valley market."
- For the first half of 2009, MTR's total net revenues decreased 3 percent to $230.8 million from $238.7 million in the first half of 2008. EBITDA from continuing operations increased 15 percent to $39.4 million (after severance costs of $287,000 and strategic costs associated with lobbying and gaming efforts in Ohio of $350,000) from $34.4 million in the same period last year. The 2009 year-to-date net income was $1.1 million or $0.04 per diluted share, of which a loss of $1.3 million or $0.05 per diluted share was from discontinued operations. In the same period last year, the company reported a net loss of $4.9 million or $0.18 per diluted share, which included a loss of $1.8 million from discontinued operations and a $3.4 million ($1.6 million net of tax) non-cash charge resulting from a loss on debt modification, or $0.12 per diluted share in the aggregate.
Griffin said, "We will now turn much of our attention toward Ohio where the company is well positioned to leverage the new gaming initiative put forth by Governor Strickland. We are very excited about this new growth opportunity for MTR Gaming."
MTR Gaming Group, 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.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
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