MTR Gaming Group reported solid growth in net revenue for the fourth quarter of 2011 but a net loss for the quarter and the year.
The company owns Mountaineer Casino, Racetrack & Resort in West Virginia, Presque Isle Downs & Casino in Pennsylvania, and Scioto Downs Casino & Racetrack in Ohio. It is currently building a gaming facility for video lottery terminals at Scioto Downs in Columbus.
According to financial information released March 8, MTR Gaming Group reported net revenue of $103.6 million for the fourth quarter of 2011, up 9.3% from $94.8 million for the same period in 2010. The company reported a net loss of $6 million for the quarter, compared with a net loss of $2.8 million for the final three months of 2010.
Officials said the increase was due primarily to interest expense associated with the company’s debt refinancing in the third quarter of 2011.
“We are pleased with our fourth-quarter 2011 results, which saw a considerable increase in revenue, record adjusted EBITDA (earnings before interest, taxes, and amortization), and improved adjusted EBITDA margin, which was the result of our focus on targeted marketing programs at our facilities, optimizing our cost structure, improving economic conditions in the region, and favorable weather in the latter part of the fourth quarter,” MTR Gaming Group president and chief executive officer Jeffrey Dahl said in a statement. “Looking forward into 2012, we have already received our conditional license to install and operate video lottery terminals at our Scioto Downs Casino & Racetrack, and are pleased to note that construction is proceeding on schedule for an anticipated second quarter 2012 opening.”
There is an outstanding lawsuit challenging the Ohio VLT law, but MTR Gaming Group officials earlier said they believe they were on solid enough footing to proceed with construction of the gaming parlor. The Scioto Downs property was recently annexed by the city of Columbus.
For all of 2011, the company reported net revenue of $428.1 million, up 1% from $424.9 million in 2010. Net loss on the year was $50.4 million; officials said the figure would have been $6.9 million if not for charges related to refinancing and other items.