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MTR Gaming Group Inc. (MNTG) filed Quarterly Report for the period ended 2011-06-30.
Mtr Gaming Group Inc. has a market cap of $68.5 million; its shares were traded at around $2.56 with and P/S ratio of 0.2. Mtr Gaming Group Inc. had an annual average earning growth of 4.5% over the past 10 years. GuruFocus rated Mtr Gaming Group Inc. the business predictability rank of 4-star.
This is the annual revenues and earnings per share of MNTG over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of MNTG.
Highlight of Business Operations:
During the three months ended June 30, 2011, Mountaineer's operating results were affected by competition, primarily from gaming operations in Pennsylvania, including the introduction of table gaming in July 2010 and weak economic conditions. Net revenues decreased by $4.4 million, or 7.1%, compared to the three months ended June 30, 2010, primarily due to a $5.7 million decrease in gaming revenues. Net revenues earned from food, beverage and lodging operations decreased by $0.2 million, and net revenues earned from other sources, including pari-mutuel commissions, increased by $1.6 million. Promotional allowances increased by $0.1 million.
During the six months ended June 30, 2011, net revenue decreased by $11.6 million, or 9.6%, compared to the six-month period of 2010, primarily due to a $12.5 million decrease in gaming revenues. Net revenues earned from food, beverage and lodging operations decreased by $0.3 million, and net revenues earned from other sources, including pari-mutuel commissions, increased by $1.2 million. Promotional allowances remained consistent with the prior six-month period.
•the decrease in gaming revenues (as discussed below); and •an increase in estimated insurance claims settlements expense of $0.3 million, compared to the prior year resulting from the increase in the number of outstanding legal matters; offset by; •the receipt of the $1.8 million mineral rights lease bonus payment in the second quarter of 2011 associated with the lease of mineral rights underlying certain of Mountaineer's land holdings (as discussed above); •overall decreases in compensation and benefits of $0.8 million and $2.2 million during the three- and six-month periods of 2011, respectively, compared to prior year; and •overall decreases in supplies and various other operating costs. A discussion of Mountaineer's key operations follows.
Gaming Operations. Revenues from gaming operations during the second quarter of 2011 decreased by $5.7 million, or 10.4%, to $49.0 million compared to the three months ended June 30, 2010; and the gross profit margin decreased slightly to 38.6% in 2011 from 38.9% in 2010. Revenues from slot operations decreased by $2.2 million to $40.5 million in 2011 compared to $42.7 million in 2010, and poker and table gaming revenue decreased by $3.5 million in the aggregate, generating revenues of $0.6 million and $7.9 million, respectively, in 2011 compared to $1.2 million and $10.8 million, respectively, in 2010.
primarily from the 11.6% decrease in total gaming revenue with only a 10.6% decrease in operating costs. Revenues from slot operations decreased by $5.1 million to $79.8 million in 2011 compared to $84.9 million in 2010, and poker and table gaming revenue decreased by $7.4 million in the aggregate, generating revenues of $1.3 million and $14.6 million, respectively, in 2011 compared to $2.5 million and $20.8 million, respectively, in 2010.
Gaming taxes and assessments as a percentage of slot revenues for the three-month periods of 2011 and 2010 were 55.4% and 56.0%, respectively. For poker and table gaming operations, the tax rate is 35% plus amortization of an annual licensing fee of $2.5 million, which resulted in effective tax rates of 42.4% and 40.2% for 2011 and 2010, respectively, as a result of decreased revenue. Overall, gaming taxes and assessments decreased by $2.7 million to $26.0 million during 2011 compared to 2010.
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