MTR Gaming Group, Inc. (NasdaqGS: MNTG) today announced financial results for the second quarter and six months ended June 30, 2011. See attached tables, including reconciliation of income (loss) from continuing operations and income (loss) from discontinued operations, GAAP financial measures, to Adjusted EBITDA, as well as the calculation of Adjusted EBITDA margin, non-GAAP financial measures.
For the second quarter of 2011, the Company’s total net revenues were $110.5 million, a decline of 1% compared to $111.6 million in the same period of 2010. Adjusted EBITDA from continuing operations was $23.1 million, an increase of 16% compared to $20.0 million in the second quarter of 2010. The Adjusted EBITDA margin was 20.9% compared to 17.9% in the prior-year quarter. Included in Adjusted EBITDA was $1.8 million received by Mountaineer Casino, Racetrack and Resort from a mineral rights lease bonus payment in the second quarter of 2011 and $1.0 million of project-opening costs related to the implementation of table games at Presque Isle Downs & Casino in the second quarter of 2010.
The Company reported net income of $2.3 million for the quarter, or $0.08 per diluted share, compared to a net loss of $0.5 million, or $0.02 per diluted share, in the same quarter last year.
Net revenues at Presque Isle Downs & Casino increased 7% to $52.1 million during the second quarter of 2011 compared to $48.6 million during the second quarter of 2010. Net revenues for the second quarter of 2011 included $5.2 million in revenue from table games, which were implemented in July 2010; however, slot revenue declined by $1.6 million compared to the same quarter of 2010. The property generated Adjusted EBITDA of $12.2 million compared to $9.0 million in the same quarter of 2010, with the Adjusted EBITDA margin increasing to 23.3% compared to 18.5% in the prior-year period. Excluding $1.0 million in project-opening costs related to the implementation of table games, the Adjusted EBITDA margin for the second quarter of 2010 would have been 20.6%.