Associated Press
CHESTER, W. Va. - MTR Gaming Group Inc. said Monday it swung to a first-quarter loss, weighed down by increased operating expenses.
The gaming company reported a loss of $2.6 million, or 10 cents per share, compared with a profit of $559,000, or 2 cents per share, in the previous year.
Loss from continuing operations was $1.3 million, or 5 cents per share, compared with income from continuing operations of $556,000, or 2 cents per share.
Analysts polled by Thomson Financial expected a loss of 4 cents per share, on average.
MTR said a $2.8 million gain from its Speedway Casino sale was offset by a $3.4 million loss on modified debt related to an amended revolving credit agreement and $400,000 in strategic development costs.
Total operating expenses grew to $105.2 million from $84.8 million, as gaming expenses rose to $65.5 million from $49.3 million. Food, beverage and lodging expenses climbed to $7.7 million from $5.5 million, while general and administrative costs increased to $18.2 million from $14 million.
For the period ended March 31, sales after promotional allowances gained 26 percent to $116.3 million from $92 million to beat Wall Street's estimate of $115.7 million. The company credited a full quarter's results from its Presque Isle Downs casino near Erie, Pa., as compared with 32 days of results in the year-ago period, and table games and poker at its Mountaineer Casino, Racetrack & Resort in Chester, W.Va.
Gaming revenue rose to $105 million from $82.2 million, while food, beverage and lodging sales climbed to $8.9 million from $6.8 million.