MTR Gaming Reports 2Q Net Loss of $1.2M

CHESTER, W.Va. -- Drops in net revenue at the casinos at Mountaineer Park and Presque Isle Downs s contributed to a net loss of $1.2 million for the second quarter at MTR Gaming Group Inc., the compamy reports.

The decrease was attributed primarily to additional gambling competition in Ohio as well as continued competitive pressure from casinos in that market.

For the second quarter,  total net revenues were $124.9 million, a decrease of 4.9% compared to the same period in 2013.

“Our second-quarter results were once again affected by a challenging regional operating environment,” said Joseph L. Billhimer, president and chief operating officer, in a prepared statement. “We were pleased with the continued strong performance of our Scioto Downs gaming facility, which has been a stellar performer since its opening in mid-2012 despite the increase in competition since that time. Our Mountaineer and Presque Isle Downs operations were affected in the second quarter by another round of increased competition from Ohio’s expanding gaming market.  Looking ahead, our management teams remain focused on our core fundamental day-to-day operations as we evaluate the changing competitive environment in each of our markets and prepare for one more round of competitors opening in our region.”

The company reported a net loss of $1.2 million for the second quarter, or four cents per diluted share, compared to net income of $2.4 million, or eight cents per diluted share, in the same period of 2013. Excluding $400,000 in strategic transaction costs associated with MTR Gaming’s impending merger with Eldorado HoldCo LLC, the net loss would have been $800,000, or three cents per diluted share. 

Net revenues at Scioto Downs in Columbus, Ohio, increased 2.3% to $38.4 million in the second quarter compared to $37.6 million in the second quarter of 2013. Net revenues at Mountaineer Casino, Racetrack & Resort here fell 5.7% to $48.8 million compared to $51.7 million in the second quarter of 2013.  Revenues from slots and table games fell $2.1 million and $600,000 respectively, compared to the same quarter of 2013.

Net revenues at Presque Isle Downs & Casino, Erie, Pa., decreased 10.4% to $37.7 million compared to $42.1 million in the second quarter of 2013. Revenues from slots and table games fell $3.9 million and $400,000 respectively, compared to the same quarter of 2013.

For the first half of 2014, MTR’s total net revenues were 5.7% lower than the sameperiod in 2013, $239.7 million versus $254.1 million. The 2014 first-half net loss was $7.4 million, or 26 cents per diluted share, compared to net income of $1.6 million, or six cents per diluted share, a year ago. 

As of June 30, MTR had $104.7 million in cash and cash equivalents, $7.9 million in restricted cash and $559.9 million in total debt, net of discount.  In addition, the company has $20 million available for borrowing under its revolving credit facility.

Published by The Business Journal, Youngstown, Ohio.
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