Magna Reports Two Tracks Operating at Loss
Updated: Tuesday, February 4, 2003 2:08 PM
Posted: Tuesday, February 4, 2003 9:47 AM
In a Jan. 31 report filed with the U.S. Securities and Exchange Commission, Magna Entertainment said two of its racetracks have experienced operating losses over the past two years, and the impact will be assessed when the company releases its 2002 financial statement.
The prospectus for the sale of $75 million in notes says Great Lakes Downs in Michigan and Remington Park in Oklahoma are experiencing operating losses. The two tracks have an aggregate book value of $25.9 million, according to the document.
"The operating performance of these racetracks may not improve in the future," the document says.
Magna also owns Bay Meadows, Golden Gate Fields, and Santa Anita Park in California; Gulfstream Park in Florida; Lone Star Park in Texas; The Meadows in Pennsylvania; Thistledown in Ohio; Laurel Park and Pimlico Race Course in Maryland; and Multnomah Greyhound Park in Oregon.
The company manages Portland Meadows in Oregon and Colonial Downs in Virginia, and its acquisition of Flamboro Downs in Ontario, Canada, was pending as of Jan. 31.
The report says Santa Anita, Gulfstream, Golden Gate, and Bay Meadows accounted for 64% of revenue and 88% of earnings before interest, taxes, depreciation, and amortization for the year that ended Dec. 31, 2001.
"Completing the integration of these businesses into our operations will require a significant dedication of management resources and further expansion of our information and operating systems," the company says in the prospectus. "If we do not successfully integrate our recent acquisitions and any future acquisitions, or if this integration consumes a disproportionate amount of our management's time, then these acquisitions may materially adversely affect our efficiency and, therefore, significantly harm our business."
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