North Las Vegas casino posts a loss; parent company doing well in W. Virginia

Friday, Nov. 10, 2000 | 11:46 a.m.

MTR Gaming Group Inc. of Chester, W.Va., owner of North Las Vegas' Ramada Inn and Speedway Casino, reported a 92 percent increase in net income for the quarter ending Sept. 30, despite taking losses at its two Nevada properties.

Net income for the quarter was $5 million, up from $2.6 million in the year-ago period. The company earned 18 cents per diluted share, an 80 percent increase over the year-ago quarter.

Revenues rose 57 percent to $50.2 million, while cash flow increased 51 percent to $9.8 million.

Some of the company's revenue growth was the result of the Speedway Casino in North Las Vegas and the Ramada Inn and Speakeasy Casino in Reno, both which were not owned by MTR in the third quarter of 1999. The two properties reported total revenues of $3.4 million, but also incurred a net loss of $1.9 million. That reduced MTR's earnings by 4 cents per share.

MTR said the losses were primarily caused by additional marketing costs, as well as higher food and beverage promotional costs. However, noting that "progress at (MTR's) Nevada properties was taking longer than originally anticipated," the company announced that Roger Szepelak had been named vice president and chief operating officer of MTR's Nevada operations. Szepelak previously served as vice president and assistant general manager of Texas Station, and chief financial officer of the Rio.

Results at MTR's main property, the Mountaineer Racetrack and Gaming Resort in West Virginia, were far more positive. Net win from slot operations rose 52 percent to $40.6 million for the quarter. That was partly due to an increase in slots at the resort, from 1,355 machines to 1,905 machines, though win per day per machine rose 19 percent to $266.

MTR posted revenues from parimutuel operations of $1.6 million, up 22 percent. Food, beverage and lodging revenues were $4.6 million, an increase of 42 percent.