MTR Gaming Group, Inc. - Conference Presentation Calls

MTR Gaming Group, Inc. reported earnings results for the third quarter and nine months ended September 30, 2009. 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. 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. For the first nine months of 2009, the company'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 loss per diluted share, which included a loss of $13.5 million or $0.49 per share from discontinued operations.

MTR Gaming Group, Inc. - Conference Presentation Calls