MTR Gaming Reports 1Q Loss of $6.2 Million

CHESTER, W.Va. -- First-quarter net revenues dropped 6.4% to $114.8 million at MTR Gaming Group Inc. compared with $122.7 million the first quarter of 2013, the ompany announced Tuesday. MTR attributed the decrease primarily to the extremely harsh winter and ongoing competition from Ohio gambling centers.

First-quarter results, adjusted for EBITDA, was $20.5 million, a decrease of 17.9% from the same quarter a year ago, and the adjusted EBITDA margin was 17.9%, a decrease of 240 basis points.

The company reported a net loss of $6.2 million for the first quarter, or 22 cents per diluted share, compared to a net loss of $800,000, or three cents per diluted share, in the same period of 2013.  Excluding $500,000 in costs associated with MTR Gaming’s impending merger with Eldorado HoldCo LLC, the net loss in the first quarter would have been $5.7 million, or 20 cents per diluted share.

The company’s previously announced strategic business combination with Eldorado pursuant to which MTR and Eldorado will become wholly-owned subsidiaries of Eclair Holdings Co. (which will be renamed “Eldorado Resorts Inc.”) remains subject to various conditions and approvals, including regulatory approvals from gaming regulators in Louisiana, Nevada, Ohio, Pennsylvania and West Virginia, approval by stockholders of MTR Gaming, registration and listing of NewCo shares and customary closing conditions. The transaction is expected to close in the second half.

Net revenues at Mountaineer Casino, Racetrack & Resort here decreased 6.6% to $45.9 million, and revenues from slots and table games fell $3.1 million and $300,000, respectively. Net revenues at Presque Isle Downs & Casino, Erie, Pa., fell 11.9% to $33.1 million. Revenues from slots and table games decreased by $3.7 million and $600,000, respectively, compared to the same quarter of 2013.

Net revenues at Scioto Downs in Columbus, Ohio, decreased 0.5% to $35.8 million year-over-year.

As of March 31, the company had $84.7 million in cash and cash equivalents, $8.8 million in restricted cash and $559.4 million in total debt, net of discount. In addition, the company has $20 million available for borrowing under its revolving line of credit, MTR said.


Published by The Business Journal, Youngstown, Ohio.
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