FOR IMMEDIATE RELEASE
MTR GAMING GROUP ANNOUNCES RECORD FIRST QUARTER RESULTS
Reports EPS of $.17 vs. $.13
CHESTER, WV - May 2, 2001 - MTR Gaming Group, Inc. (Nasdaq
National Market:MNTG) today announced record financial results
for the first quarter ended March 31, 2001. See attached
tables.
First Quarter Financial Highlights - versus fiscal 2000 first
quarter
- Total revenues rose 35% to $48.6 million.
- EBITDA increased 28% to $9.7 million.
- Operating income was up 27% to $7.7 million.
Net income grew 28% to $4.3 million or $.17 per diluted share.
Net win from slot operations at the Company's Mountaineer Casino Racetrack and Resort increased 33% to $41 million in the first
quarter compared to the same period last year, while net
win-per-day-per-machine was $240 (with 1905 machines) compared
to $253 (with 1355 machines) in the first quarter of 2000.
Edson R. (Ted) Arneault, President and CEO of MTR Gaming Group,
stated, "We are pleased to have started the year with
a strong quarter. These results were achieved due to our expanded
operations and marketing efforts for Mountaineer, despite the
harsh weather we experienced during January and February.
"We continued to expand our export simulcasting, which
contributed $567,000 to the Company's first quarter revenues,
an increase of 17% from $485,000 (revised) in the fourth quarter.
Our average daily live handle, including export, was $734,500
in the first quarter, an increase of 39% from $528,000 (revised)
in the fourth quarter."
Mr. Arneault continued, "Most recently, we were extremely
pleased to announce the increase in the maximum wager for our
slots at Mountaineer from $2.00 to $5.00, assuming the bill
the West Virginia Legislature passed on April 21, 2001 becomes
law. We fully expect the higher wager to positively impact
our financial results by increasing our net win and attracting
new patrons."
Commenting on the Company's Nevada properties, Mr. Arneault
stated, "We are proud to report that our Speedway Property
in North Las Vegas operated profitably for the first time for
the month of March, and we intend to build upon these results.
For the first quarter overall, total revenues at our two Nevada
properties increased 80% to $2.9 million from $1.6 million
in the first quarter of 2000, but reduced the Company's earnings
by $1.3 million or $.05 per share. We remain focused on exploring
opportunities to achieve profitability in Reno, as well as
on growing profits in Las Vegas."
Mr. Arneault concluded, "We continue to concentrate on
the current phase of our expansion at Mountaineer, which includes
the planned opening of a new gaming room this coming July to
encompass 595 additional slots (subject to regulatory approval),
a convention center in August, and a new 260-room hotel during
the first quarter of 2002. In light of these pending additions
to Mountaineer, as well as the current visitation levels and
the pending increase in the maximum slot wager, we are very
optimistic about the Company's outlook."
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 Wednesday, May 2, 2001. Interested parties may
participate in the call by dialing 212-748-2819 approximately
10 minutes before the call is scheduled to begin. The conference
call will be broadcast live over the Internet via the Investor
Relations section of the Company's web site at www.mtrgaming.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 ET on Wednesday, May 2, 2001 to
12:00 noon ET on Thursday, May 3, 2001. Listeners may dial
800-633-8284 (858-812-6440 for international callers) and
use the code 18721831 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
MARCH 31 |
|
|
|
|
2001 |
2000 |
|
|
|
Revenues |
|
|
Gaming |
$42,926,000 |
$31,747,000 |
Parimutuel
commissions |
1,683,000 |
1,100,000 |
Food,
beverage and lodging |
3,344,000 |
2,766,000 |
Other |
605,000 |
443,000 |
|
|
|
Total
revenues |
48,558,000 |
36,056,000 |
|
|
|
| Costs
of revenue |
|
|
Cost
of gaming |
24,920,000 |
18,465,000 |
Cost
of parimutuel commissions |
1,523,000 |
1,315,000 |
Cost
of food, beverage and lodging |
3,637,000 |
2,569,000 |
Cost
of other revenue |
728,000 |
371,000 |
|
|
|
Total
cost of revenues |
30,808,000 |
22,720,000 |
|
|
|
Gross
Profit |
17,750,000 |
13,336,000 |
|
|
|
| Selling,
general and administrative expenses: |
|
|
Marketing
and promotions |
2,354,000 |
1,445,000 |
General
and administrative |
5,679,000 |
4,325,000 |
Depreciation
and amortization |
2,062,000 |
1,540,000 |
|
|
|
Total
selling, general and administrative expenses |
10,095,000 |
7,310,000 |
|
|
|
Operating
income |
7,655,000 |
6,026,000 |
|
|
|
Interest
income |
55,000 |
69,000 |
Interest
expense |
(1,063,000) |
(820,000) |
|
|
|
|
|
|
|
|
|
Income
from operations before cumulative effect of accounting
change and provision for income taxes
|
6,647,000 |
5,275,000 |
Provision
for income taxes |
(2,260,000) |
(1,907,000) |
Net
income prior to cumulative effect of accounting change |
4,387,000 |
3,368,000 |
Cumulative
effect of change in method of accounting
for derivatives, net of tax benefit of $47,000 |
(92,000) |
0 |
|
|
|
Net
income |
$4,295,000 |
$3,368,000 |
|
|
|
NET
INCOME PER SHARE-BASIC |
|
|
Income
from operations
|
$0.20 |
$0.16 |
Cumulative
effect |
(.01) |
- |
NET
INCOME PER SHARE |
$0.19 |
$0.16 |
| NET
INCOME PER SHARE-ASSUMING DILUTION |
|
|
Income
from operations |
$0.17 |
$0.13 |
Cumulative
effect |
- |
- |
NET
INCOME PER SHARE-ASSUMING DILUTION |
$0.17 |
$0.13 |
| WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING: |
|
|
Basic |
22,199,302 |
21,337,885 |
|
|
|
Diluted |
26,018,950 |
25,531,059 |
|
|
|
MTR
GAMING GROUP, INC.
CONDENSED AND CONSOLIDATED BALANCE SHEET
(unaudited)
|
|
|
MARCH
31
2001 |
DECEMBER
31,
2000 |
|
|
|
ASSETS |
|
|
Current
Assets: |
|
|
| Cash
and cash equivalents |
$8,779,000 |
$10,564,000 |
Restricted
cash |
512,000 |
505,000 |
Accounts
receivable, net of allowance for doubtful
accounts of $33,000 and $37,000
|
3,350,000 |
3,044,000 |
Accounts
receivable - Lottery Commission |
1,681,000 |
1,073,000 |
Inventories |
1,257,000 |
1,083,000 |
Deferred
financing costs |
555,000 |
555,000 |
Prepaid
taxes |
2,242,000 |
2,410,000 |
Other
current assets |
2,215,000 |
1,678,000 |
|
|
|
Total
current assets |
20,591,000 |
20,912,000 |
|
|
|
Property
and equipment, net |
97,394,000 |
90,501,000 |
Excess
of cost of investments over net assets acquired, net
of accumulated amortization of $2,093,000
and $2,030,000
|
1,681,000 |
1,744,000 |
Deferred
income taxes |
13,000 |
13,000 |
Deferred
financing costs, net of current portion |
1,717,000 |
1,860,000 |
Deposits
and other |
613,000 |
655,000 |
|
|
|
|
$122,009,000 |
$115,685,000 |
|
|
|
| LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
Current
liabilities: |
|
|
| Accounts
payable |
$702,000 |
$1,370,000 |
West
Virginia Lottery Commission payable |
317,000 |
646,000 |
Accrued
payroll and payroll taxes |
1,295,000 |
1,227,000 |
Other
accrued liabilities |
1,393,000 |
1,755,000 |
Current
portion of capital leases |
3,290,000 |
3,269,000 |
Current
portion of long-term debt |
343,000 |
334,000 |
|
|
|
Total
current liabilities
|
7,340,000 |
8,601,000 |
|
|
|
| Long-term
and other debt, less current portion |
57,903,000 |
56,021,000 |
Capital
lease obligations, net of current portion |
3,047,000 |
3,849,000 |
Deferred
income tax |
3,948,000 |
1,766,000 |
|
|
|
Total
liabilities |
72,238,000 |
70,237,000 |
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
Shareholders' equity:
|
|
|
| Common
stock |
- |
- |
| Paid-in-capital |
39,077,000 |
39,014,000 |
Shareholder
receivable |
(1,278,000) |
(1,243,000) |
Retained
earnings |
11,972,000 |
(7,677,000) |
|
|
|
Total
shareholders' equity |
49,771,000 |
45,448,000 |
|
|
|
|
$122,009,000 |
$115,685,000 |
|
|
|
|
