FOR IMMEDIATE RELEASE
MTR GAMING GROUP ANNOUNCES FOURTH QUARTER AND YEAR-END
RESULTS AND PROVIDES FIRST QUARTER GUIDANCE
Reports Fourth Quarter EPS of $.09 vs. $.02; Fiscal 2000 EPS
of $.59 vs. $.25
Expects First Quarter 2001 Revenues of Approximately $48.7
Million
Producing Net Income of Approximately $4 Million
CHESTER, WV - March 20, 2001 - MTR Gaming Group, Inc. (Nasdaq
National Market:MNTG) today announced record financial results
for the fourth quarter and year ended December 31, 2000. See
attached tables.
Fourth Quarter Financial Highlights - versus fiscal 1999 fourth
quarter
- Total revenues increased 38% to $42.8 million.
- EBITDA was up 36% to $6.1 million.
- Operating income grew 72% to $4.4 million.
- Net income rose 502% from $391,000 to $2.4 million or $.09
per diluted share.
2000 Financial Highlights - versus 1999
- Total revenues were up 50% to $170.6 million.
- EBITDA rose 57% to $32.1 million.
- Operating income increased 74% to $25.8 million.
- Interest expense decreased 28%.
Net income grew 141% to $15.1 million or $.59 per diluted
share.
Net win from slot operations at the Mountaineer Casino Racetrack and Resort increased 34% to $35.2 million in the fourth
quarter compared to the same period last year. For the full
year, net win from slot operations at Mountaineer increased
49% to $141.6 million and net win-per-day-per-machine rose
24% to $247 compared to $200 in 1999.
Edson R. (Ted) Arneault, President and CEO of MTR Gaming Group,
stated, "The significantly expanded operations and aggressive
marketing campaign we launched during the third quarter continued
to produce heightened consumer interest at Mountaineer during
the fourth quarter. However, inclement weather and poor road
conditions limited visitation in December, producing lower
than planned revenues and profits for the quarter. Additionally,
performance at our Nevada operations, particularly in Reno,
continued to disappoint us and also impacted the Company's
results.
"Likewise owing in large part to weather, we now expect
to open our next gaming room in July, the convention center
in August, and the new 220-room hotel by year end. The new
addition to the Speakeasy Gaming Saloon will include, subject
to regulatory approval, 595 additional slots, bringing the
property's total to 2,500. We expect these improvements, new
features and developments to further increase momentum at Mountaineer
as well as drive mid-week patronage.
"Importantly, traffic at Mountaineer has certainly rebounded
this year despite continued harsh weather in January and February
compared to last year. Through March 15, average win per day
per machine was $233. During February we opened our new Spa & Fitness
Centre, which marked the completion of Phase One of the expansion
at Mountaineer. The Spa, the only one of its kind in our area,
is still another attraction drawing visitors as well as a regular
clientele, with 148 members joining in the first month since
opening.
"Also during the first quarter, we contracted to implement
state-of-the-art automated player tracking at Mountaineer.
Scheduled for installation by May 1, the player tracking system
is expected to increase gaming and other revenues by providing
points based on amounts wagered on slots and racing as well
as all amounts spent at the resort. Points will be redeemable
for merchandise, show tickets, hotel stays, spa services and
the like. We will also look to player tracking to improve margins
through cost savings realized by targeting our marketing efforts
in accordance with this new source of data."
Mr. Arneault continued, "We are also enthusiastic about
the continued development of our export simulcasting, which
began in August. Over the past few months we signed on several
new outlets for the simulcasts of Mountaineer thoroughbred
races, including important markets such as Las Vegas and Foxwoods® Resort
Casino. During the fourth quarter, export simulcasting contributed
$869,000 to the Company's revenues. Our average daily live
handle including export was $481,000 in the fourth quarter,
and on February 17, 2001 topped $1 million, an all-time record
for any track in West Virginia."
For the fourth quarter of 2000, total revenues at the Company's
two Nevada properties increased 123% to $2.9 million from $1.3
million in the fourth quarter of 1999. Despite the higher revenue
levels, these properties reduced the Company's earnings by
$1.6 million or $.06 per diluted share. Mr. Arneault commented, "Under
the leadership of our new COO for the Nevada subsidiaries,
who was appointed on November 1, 2000, we are focused on improving
operations at these facilities. We expect the Speedway property
in North Las Vegas to record its first operating profit for
March, and are looking at a variety of strategies to achieve
profitability in Reno."
Mr. Arneault concluded, "Looking forward, we believe
the strong monthly revenues we have been realizing thus far
in 2001 are an indication of the results to come for the year.
In January and February, we achieved total revenues of $29.3
million at Mountaineer, and on March 10th set a new record
for daily slot revenue of $909,000. Based on these unaudited
interim results, we anticipate first quarter 2001 revenues
of approximately $48.7 million and net income of approximately
$4 million. Due to this outlook and our continued belief that
the Company's stock trades below its true value, during the
fourth quarter we repurchased 62,500 shares, bringing the total
repurchased pursuant to our previously announced buyback program
to 224,500 shares."
Conference Call
Edson R. (Ted) Arneault, President and CEO, will conduct a
conference call focusing on the financial results and the progress
of the Company's expansion in West Virginia at 10:00 a.m. ET
on Tuesday, March 20, 2001. Interested parties may participate
in the call by dialing 212-231-6030 approximately 10 minutes
before the call is scheduled to begin. The conference call
will be broadcast live over the Internet via www.companyboardroom.com.
To listen to the live call 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 live, the conference
call will be archived and can be accessed for approximately
90 days. A recorded phone replay of the call will also be available
from 12:00 noon on Tuesday, March 20, 2001 to 12:00 noon on
Wednesday, March 21, 2001. Listeners may dial 800-633-8284
(858-812-6440 for international callers) and use the code 18310005
for the phone replay.
About MTR Gaming Group
MTR Gaming Group owns and operates the Mountaineer Casino Racetrack and Resort in Chester, West Virginia, which currently encompasses
a thoroughbred racetrack with off-track betting and export
simulcasting, 3,200 slot machines, 359 hotel rooms, golf course,
spa & fitness center, theater and events center, convention
center and fine dining and entertainment. The Company also
owns and operates the Ramada Inn and Speedway Casino in North
Las Vegas, and holds a license to build a new thoroughbred
racetrack with parimutuel wagering in Erie, Pennsylvania. MTR
is included on the Russell 2000® and Russell® 3000
Indexes. For more information, please visit www.mtrgaming.com.
Except for historical information, this
press release contains forward-looking statements concerning,
among other things, the acquisition of Scioto Downs, Inc.
Such statements are based on MTR’s current plans and
expectations. 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 are described in the Company’s
periodic reports filed with the Securities and Exchange Commission,
and with respect to the Scioto Downs acquisition are described
in the Merger Agreement, as amended, which is attached as
exhibits to the Company’s reports on Forms 8-K filed
December 24, 2002.
MTR
GAMING GROUP, INC.
CONDENSED AND CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three
Months Ended
December 31 |
Years
Ended
December 31, |
|
|
|
|
|
|
2000 |
1999 |
2000 |
1999 |
|
|
|
|
|
REVENUES |
|
|
|
|
Gaming |
36,828,000 |
26,911,000 |
$147,890,000 |
$95,952,000 |
Pari-mutuel
commissions |
1,888,000 |
1,025,000 |
5,837,000 |
4,504,000 |
Lodging,
food and beverage |
3,328,000 |
2,727,000 |
13,460,000 |
10,432,000 |
Other |
774,000 |
470,000
|
3,387,000 |
2,533,000 |
|
|
|
|
|
Total
revenues |
42,818,000
|
31,133,000
|
170,574,000
|
113,421,000
|
|
|
|
|
|
| COSTS
OF REVENUES |
|
|
|
|
Cost
of gaming |
22,004,000
|
15,982,000 |
86,275,000
|
56,431,000
|
Cost
of pari-mutuel commissions |
2,033,000
|
1,273,000
|
6,410,000
|
5,300,000
|
Cost
of lodging, food and beverage |
3,691,000
|
2,613,000
|
13,612,000
|
9,441,000
|
Cost
of other |
1,211,000
|
527,000
|
3,562,000
|
2,425,000
|
|
|
|
|
|
Total
costs of revenues |
28,939,000
|
20,395,000
|
109,859,000
|
73,597,000
|
|
|
|
|
|
Gross
Profit |
13,879,000
|
10,738,000
|
60,715,000
|
39,824,000
|
|
|
|
|
|
| SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES: |
|
|
|
|
Marketing
and promotions |
2,920,000
|
1,426,000
|
9,686,000
|
4,968,000
|
General
and administrative |
4,849,000
|
4,813,000
|
18,921,000
|
14,440,000
|
Depreciation
and amortization |
1,732,000
|
1,958,000
|
6,290,000
|
5,539,000
|
|
|
|
|
|
Total
selling, general and administrative expenses |
9,501,000
|
8,197,000
|
34,897,000
|
24,947,000
|
|
|
|
|
|
Operating
income |
4,378,000 |
2,541,000
|
25,818,000
|
14,877,000
|
|
|
|
|
|
Interest
income |
62,000 |
122,000
|
262,000
|
335,000
|
Interest
expense |
969,000 |
714,000
|
(3,057,000)
|
(4,270,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from operations before income taxes |
3,471,000
|
1,949,000
|
23,023,000
|
10,942,000
|
(Provision)
benefit for income taxes |
1,119,000
|
(802,000)
|
(7,962,000)
|
(3,947,000)
|
Income
before extraordinary item |
2,352,000
|
1,147,000
|
15,061,000
|
6,995,000
|
Extraordinary
item: |
|
|
|
|
Loss
on debt extinguishment, net of tax benefit
of $427,000 |
-
|
(756,000)
|
-
|
(756,000)
|
|
|
|
|
|
NET
INCOME |
$2,352,000
|
$391,000
|
$15,061,000
|
$6,239,000
|
|
|
|
|
|
NET
INCOME PER SHARE - BASIC |
|
|
|
|
Operations |
.11
|
.05
|
$0.69
|
$0.33
|
Extraordinary
item |
-
|
(.03)
|
-
|
(0.03)
|
NET
INCOME PER SHARE |
.11
|
.02
|
$0.69
|
$0.30
|
| NET
INCOME PER SHARE - ASSUMING DILLUTION |
|
|
|
|
Operations |
.09
|
.05
|
$0.59
|
$0.28
|
Extraordinary
item |
-
|
(.03)
|
-
|
(0.03)
|
NET
INCOME PER SHARE |
.09
|
.02
|
$0.59
|
$0.25
|
| Weighted
average number of shares outstanding: |
|
|
|
|
Basic |
22,110,914
|
21,191,288
|
21,839,426
|
21,029,073
|
|
|
|
|
|
Diluted |
25,927,696
|
25,101,295 |
25,350,869
|
24,741,548
|
|
|
|
|
|
MTR
GAMING GROUP, INC.
CONDENSED AND CONSOLIDATED BALANCE SHEETS
|
DECEMBER
31, |
|
2000 |
1999 |
|
|
|
ASSETS |
|
|
CURRENT
ASSETS: |
|
|
| Cash
and cash equivalents |
$10,564,000 |
$7,380,000 |
Restricted
cash |
505,000 |
891,000 |
Accounts
receivable, net of allowance for doubtful accounts
of $37,000 and $41,000 in
2000 and 1999, respectively |
3,044,000 |
334,000 |
Accounts
receivable - Lottery Commission |
1,073,000 |
692,000 |
Inventories |
1,083,000 |
352,000 |
Deferred
financing costs |
555,000 |
244,000 |
Prepaid
taxes |
2,410,000 |
519,000 |
Deferred
income taxes |
- |
1,526,000 |
Other
current assets |
1,678,000 |
1,223,000 |
|
|
|
Total
current assets |
20,912,000
|
13,161,000
|
|
|
|
Property
and equipment, net |
90,501,000
|
52,756,000
|
Excess
of cost of investments over net assets acquired,
net of accumulated amortization of $2,030,000
and $1,778,000 in 2000 and 1999, respectively |
1,744,000
|
1,996,000
|
Deferred
income taxes |
13,000
|
-
|
Deferred
financing costs, net of current portion |
1,860,000
|
977,000
|
Deposits
and other |
655,000
|
669,000
|
|
|
|
|
$115,685,000 |
$69,559,000
|
|
|
|
| LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
CURRENT
LIABILITIES: |
|
|
| Accounts
payable |
$1,370,000
|
$1,453,000
|
West
Virginia Lottery Commission payable |
646,000
|
184,000
|
Accrued
payroll and payroll taxes |
1,227,000
|
537,000
|
Other
accrued liabilities |
1,755,000
|
1,025,000
|
Current
portion of capital leases |
3,269,000
|
561,000
|
Current
portion of long-term and other debt |
334,000
|
7,982,000
|
|
|
|
Total
current liabilities |
8,601,000 |
11,742,000
|
| Long-term
and other debt, less current portion |
56,021,000
|
26,409,000
|
Capital
lease obligations, net of current portion |
3,849,000
|
982,000
|
Deferred
income taxes |
1,766,000
|
717,000
|
|
|
|
Total
liabilities |
70,237,000 |
39,850,000
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
| Common
stock, $.00001 par value; 50,000,000 shares
authorized; 22,176,001 and 21,297,242 shares issued and outstanding
at December 31, 2000 and 1999, respectively |
- |
-
|
Common
stock subscribed; 30,312 shares at December 31, 2000 and
1999 |
-
|
-
|
| Paid-in-capital |
39,014,000
|
36,454,000
|
Shareholder
receivable |
(1,243,000)
|
(457,000)
|
Retained
earnings/(deficit) |
7,677,000
|
(6,288,000)
|
|
|
|
Total
shareholders' equity |
45,448,000
|
29,709,000
|
|
|
|
Total
liabilities and shareholders' equity |
$115,685,000
|
$69,559,000
|
|
|
|
|
