MTR Gaming Group, Inc. (NasdaqGS: MNTG) today announced financial results for the third quarter and nine months ended September 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 third quarter of 2011, the Company’s total net revenues were $115.6 million, a decline of 3% compared to $119.1 million in the same period of 2010. Adjusted EBITDA from continuing operations was $23.3 million, down 1% compared to $23.5 million in the third quarter of 2010. The third quarter 2011 Adjusted EBITDA margin was 20.1% compared to 19.7% in the prior-year quarter. During the third quarter of 2011, Presque Isle Downs & Casino recorded a charge of $5.8 million which represents an estimate of its obligations associated with the Company’s estimated proportionate assessment of amounts due under an Administrative Order executed by the Pennsylvania Gaming Control Board on July 11, 2011 and other related assessments. The Administrative Order provides for annual assessments against each of the Pennsylvania casino operators to be used for the repayment of certain borrowings of the Pennsylvania Gaming Control Board and other related agencies responsible for the oversight of the gaming industry. The repayment of such assessment will occur over at least a ten year period. This amount has been excluded from the Company’s Adjusted EBITDA as detailed in the attached Selected Financial Information.
The Company reported a net loss of $41.5 million for the quarter, or $1.49 per diluted share, which included a $34.4 million pre-tax loss on debt extinguishment associated with MTR’s recent debt refinancing and the aforementioned $5.8 million gaming assessment costs. Absent the $34.4 million pre-tax loss on debt extinguishment and the $5.8 million charge of gaming assessment costs, the net loss would have been $1.4 million, or $0.05 per diluted share. In the same period last year, the Company reported net income of $1.5 million, or $0.05 per diluted share.