Binion’s owner reports higher quarterly profit

Friday, March 11, 2005 | 11:38 a.m.

MTR Gaming Group Inc. today reported a 12 percent increase in fourth-quarter profit as performance improved at the company's flagship Mountaineer Race Track and Casino Resort in West Virginia.

The company, which also owns Binion's in downtown Las Vegas and the Ramada Inn and Speedway Casino in North Las Vegas, reported profit of $2.6 million or 9 cents per share compared with profit of $2.3 million or 8 cents per share a year ago.

The results include several one-time charges including a $726,000 reduction in depreciation related to the increased value of the Binion's, a loss of $332,000 related to the company's decision not to pursue the relocation of a proposed racetrack in Pennsylvania and a loss of $108,000 related to a stake in a Minnesota racetrack.

Revenue for the fourth quarter rose 1 percent to $70.1 million from the fourth quarter of 2003. That includes promotional expenses.

Profit for the full year of 2004 fell 4 percent to $14.5 million from 2003. Revenue including promotional expenses rose 8 percent to $310.6 million last year from a year earlier.

MTR on Thursday took over management of Binion's Horseshoe from Harrah's Entertainment Inc. as part of a pre-existing contract, renaming the property Binion's Gambling Hall and Hotel to honor Harrah's purchase of the rights to the Horseshoe brand in Nevada.

The property generated revenue of $642,000 in the fourth quarter and $2.1 million for the year. Earnings before interest, taxes, depreciation and amortization -- a key indicator of casino performance -- was $545,000 for the quarter and $2.1 million for the year. Figures for 2003, when the property was privately held, weren't available.

Harrah's reopened the property a month after MTR bought it in March 2004, taking it from a loss to a profit.