Sounds exceptional!!!!!!!
MTR Gaming Group Announces Record Third Quarter
EPS $.18 (basic) $.16 (diluted)
Revenues Increase by 43% to $25.3 Million
EBITDA Increases by 74% to $5.7 Million
Nine Month Revenues Increase by 33.8% to $60.9 Million
Nine Month EPS $.34 (basic) $.29 (diluted)
CHESTER, W.Va., Nov. 4 /PRNewswire/ -- MTR Gaming Group, Inc.
(Nasdaq: MNTG) today announced its results of operations for the three and
nine months ended September 30, 1998. The Company also announced that during
the quarter its Mountaineer unit's employee pension fund purchased 140,900
shares of the Company's common stock in the open market for an average price
of $1.99 per share.
Total revenues for the quarter rose 43.1% to $25,281,000, compared to
$17,663,000 for the third quarter of 1997. Video slots accounted for $20.8
million of such revenue, representing an increase of $6,440,000, or 44.7%,
over video slot revenue for the third quarter of 1997. EBITDA (earnings
before interest, taxes, depreciation and amortization) was $5,696,000,
compared to $3,274,000 for the third quarter of 1997, representing an increase
of 74%.
The Company's net income for the quarter rose 76.5% to $3,850,000, or $.18
per basic share and $.16 per diluted share, compared to $2,181,000, or $.11
per basic share and $.10 per diluted share for the third quarter of 1997. Per
share results are based on a weighted average of basic shares outstanding of
20,861,322 and 19,814,291 during the third quarters of 1998 and 1997,
respectively; and a weighted average number of diluted shares outstanding of
23,662,597 and 21,378,434 during the third quarters of 1998 and 1997,
respectively.
Total revenues for the nine months ended September 30, 1998 increased
33.8% to $60,897,000 from $45,502,000 reported for the same period last year.
Net income for the first nine months of 1998 was $6,954,000, or $.34 per basic
share and $.29 per diluted share, compared to $3,629,000, or $.18 per basic
share and $.17 per diluted share for the first nine months of 1997. Per share
results are based on a weighted average number of basic shares outstanding of
20,301,137 and 19,780,958 during the first nine months of 1998 and 1997,
respectively; and a weighted average number of diluted shares outstanding of
24,088,681 and 20,881,375 during the first nine months of 1998 and 1997,
respectively.
During the third quarter, the Company's Nevada subsidiaries contributed
$478,000 in hotel, food and beverage revenue but generated an aggregate net
loss of $489,000, or $.02 per diluted share, principally because of the
closing of the North Las Vegas property due to construction, interest expense
of $389,000, and the fact that neither the Company nor a third-party casino
operator has commenced gaming operations in those locations. During the third
quarter, however, the Company entered leases with Dynasty Games, an
unaffiliated, licensed casino operator, to operate gaming at both Nevada
properties while the Company pursues licensing. Dynasty's application for
permission to conduct gaming at the properties may be heard by the Nevada
gaming authorities in December, and, if that permission is granted, the
Company anticipates that gaming operations will commence in early 1999.
The Company also recently signed franchise agreements with Ramada
Franchise Systems, Inc. for the Nevada properties. The North Las Vegas
property will be known as the Ramada Inn & Speedway Casino, and the Reno
property will be known as the Ramada Inn & Speakeasy Casino.
Commenting on the results, Edson R. "Ted" Arneault, President and Chief
Executive Officer of MTR Gaming, said, "We continue to be pleased with the
growth of our video slot business and the successful marketing of Mountaineer
Racetrack & Gaming Resort as a gaming and entertainment complex. The third
quarter opening of the 12,000 square foot expansion of the Speakeasy Gaming
Saloon, the reconfiguration of the number and types of video slots, and the
combination of horseracing, concerts, and nationally televised boxing events
all contributed to our record results. Significantly, the July 1998 increase
from 1,000 to 1,200 video slots coincided with an increase in the average net
win-per-day-per-machine to $189 during the third quarter of 1998, compared to
$157 during the third quarter of 1997. Average net win-per-day-per-machine
for the first nine months of 1998 was $173, compared to $144 for the same
period in 1997. Based on this success, as we announced on Monday, we plan to
increase the number of video slots from 1,200 to 1,355 during the first
quarter of 1999 and to use 100 of the new machines in our first progressive
jackpot networks."
MTR Gaming Group, Inc., a West Virginia based corporation, through
subsidiaries, owns and operates the Mountaineer Racetrack & Gaming Resort in
Chester, West Virginia and has recently acquired hotel/casino properties in
North Las Vegas and Reno, Nevada. The Mountaineer complex currently
encompasses a thoroughbred racetrack, including off track betting, 1,200 video
lottery terminals, a 101 room hotel, nine hole executive golf course, fine
dining and entertainment, the Speakeasy Gaming Saloon, Big Al's Deli, the
Gatsby Lounge, and the Hollywood Knights Saloon.
Except for historical information, this press release contains forward-
looking statements concerning, among other things, future plans and operating
results. Such statements are based on the Company's current plans and
expectations. Actual results could differ materially based upon a number of
factors, including but not limited to weather conditions, gaming regulation
and licensing, competition, general economic conditions affecting the resort
business, dependence upon key personnel, and other factors described in the
Company's periodic reports filed with the Securities and Exchange Commission.
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