MTR Gaming's results negatively impacted by weather, ends first quarter with $84.7 million cash

By Lisa Kerner

Charlotte, N.C., May 6 - MTR Gaming Group, Inc. ended the first quarter on March 31 with $84.7 million in cash and cash equivalents, $8.8 million in restricted cash and $559.4 million of total debt, net of discount.

The Chester, W.Va.,-based casino and racetrack owner/operator also had $20 million available for borrowing under its revolving credit facility at quarter-end, according to its earnings news release.

"Our first-quarter results were impacted primarily by the extremely harsh winter across the region, as well as the ongoing competitive environment," president and chief operating officer Joseph L. Billhimer said.

The company's Mountaineer and Presque Isle Downs operations also suffered from increased competition from Ohio's expanding gaming market.

Financial highlights

MTR's first-quarter total net revenues were down 6.4% year over year at $114.8 million.

Net revenues at Scioto Downs decreased 0.5% to $35.8 million. Mountaineer Casino, Racetrack & Resort's revenues decreased 6.6% from the prior-year quarter to $45.9 million, while net revenues at Presque Isle Downs & Casino decreased 11.9% to $33.1 million in the first quarter of 2014.

MTR's EBITDA was down 17.9% at $20.5 million, while adjusted EBITDA margin was 17.9%, a decrease of 240 basis points from the prior-year period.

The company reported a net loss of $6.2 million for the first quarter of 2014, or $0.22 per diluted share, compared to a net loss of $0.8 million, or $0.03 per diluted share, in the same period of 2013, the release stated.

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