MTR Gaming earnings fall

Monday, May 9, 2005 | 10:48 a.m.

First-quarter profit at MTR Gaming Group Inc. fell 5 percent as the company -- which owns Binion's Gambling Hall & Hotel and the Speedway Casino -- reported higher corporate expenses and lower results at its flagship Mountaineer Race Track and Gaming Resort in West Virginia.

The West Virginia company earned $2.9 million or 10 cents per share in the first quarter of this year compared with $3 million or 11 cents in the same quarter of 2004. Analysts expected the company to earn 11 cents in this year's quarter.

The company said it expects to earn from $2.9 million to $3.4 million and expects to generate revenue of $98 million to $102 million in the second quarter.

Revenue rose 3 percent to $77.9 million. Revenue minus promotional expenses rose 3 percent to $76.6 million

Earnings before interest, taxes, depreciation and amortization -- a key performance indicator -- rose 3 percent to $13.5 million.

Binion's Gambling Hall & Hotel in downtown Las Vegas generated revenue minus promotional expenses of $4.9 million in the first quarter. Earnings before interest, taxes, depreciation and amortization were $872,000 in the quarter.

Full quarter results for 2004 aren't available because the company took ownership of Binion's on March 11 of that year.

Revenue minus promotional expenses at the Speedway Casino in North Las Vegas fell 1 percent to $2.5 million. Earnings before interest, taxes, depreciation and amortization rose 18 percent to $342,000.

Mountaineer shares fell 38 cents to $10.58 per share in midmorning trading today.