Speedway Casino owner sees profit decline

Tuesday, Nov. 16, 1999 | 11:09 a.m.

MTR Gaming Group Inc., owner and operator of the Ramada Inn and Speedway Casino in North Las Vegas, reported a 32 percent decline in net income for the quarter ending Sept. 30 -- something it called the result of its expansion campaign in Nevada.

The company, based in Chester, W.Va., reported net income of $2.61 million for the quarter, down from $3.85 million in the year-ago quarter. Earnings per share fell 38 percent to 10 cents per share.

Decreased earnings were primarily the result of a $1.01 million net loss recorded by the Speedway Casino in North Las Vegas and the Speakeasy Casino in Reno. The company received a gaming license for both properties in September, and expects to begin generating gaming revenues in the fourth quarter from both.

The company's cash flow -- earnings before interest, taxes, depreciation and amortization -- rose 13.3 percent on the quarter, to $6.46 million. Revenues rose 26.6 percent, to $32.01 million.

MTR's primary business is the Mountaineer Racetrack and Gaming Resort in West Virginia, which includes a racetrack, a 100-room hotel and 1,300 gaming machines.

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