SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
COMMISSION FILE NO.: 0-20508
MTR GAMING GROUP, INC.
(exact name of registrant as specified in its charter)
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DELAWARE |
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84-1103135 |
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(State or other jurisdiction of incorporation) |
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(IRS Employer Identification Number) |
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STATE ROUTE 2 SOUTH, P.O. BOX 358, CHESTER, WEST VIRGINIA 26034 |
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(Address of principal executive offices) |
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(304) 387-5712 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the Company: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
COMMON STOCK, $.00001 PAR VALUE
Class
27,948,135
Outstanding at May 13, 2003
MTR GAMING GROUP, INC.
INDEX FOR FORM 10-Q
2
FINANCIAL INFORMATION
MTR GAMING GROUP, INC.
CONDENSED AND CONSOLIDATED BALANCE SHEET
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MARCH 31 |
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DECEMBER |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
49,678,000 |
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$ |
14,398,000 |
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Restricted cash |
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798,000 |
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860,000 |
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Accounts receivable, net of allowance for doubtful accounts of $142,000 in 2003 and $98,000 in 2002 |
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3,670,000 |
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4,522,000 |
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Accounts receivable-Lottery Commission |
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232,000 |
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— |
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Inventories |
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2,544,000 |
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2,414,000 |
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Deferred financing costs |
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1,615,000 |
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902,000 |
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Prepaid taxes |
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3,000,000 |
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4,360,000 |
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Deferred income taxes |
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823,000 |
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823,000 |
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Other current assets |
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2,157,000 |
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1,531,000 |
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Total current assets |
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64,517,000 |
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29,810,000 |
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Property: |
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Land |
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10,065,000 |
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12,087,000 |
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Building |
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132,741,000 |
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137,422,000 |
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Equipment and automobiles |
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60,467,000 |
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59,929,000 |
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Furniture and fixtures |
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14,140,000 |
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17,870,000 |
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Construction in progress |
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1,186,000 |
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248,000 |
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218,599,000 |
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227,556,000 |
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Less accumulated depreciation |
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(42,258,000 |
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(46,981,000 |
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176,341,000 |
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180,575,000 |
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Other assets: |
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Goodwill |
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1,492,000 |
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1,492,000 |
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Note receivable |
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2,163,000 |
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— |
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Deferred income taxes |
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2,213,000 |
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2,213,000 |
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Deferred financing costs, net of current portion |
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5,355,000 |
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1,452,000 |
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Deposits and other |
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7,764,000 |
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6,375,000 |
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18,987,000 |
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11,532,000 |
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Total assets |
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$ |
259,845,000 |
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$ |
221,917,000 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
3,644,000 |
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$ |
5,259,000 |
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West Virginia state lottery commission payable |
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1,813,000 |
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1,576,000 |
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Accrued payroll and payroll taxes |
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4,328,000 |
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2,542,000 |
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Accrued liabilities |
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3,987,000 |
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3,091,000 |
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Current portion of capital leases |
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6,155,000 |
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6,532,000 |
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Current portion of long-term and other debt |
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775,000 |
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162,000 |
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Total current liabilities |
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20,702,000 |
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19,162,000 |
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Long-term and other debt, less current portion |
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130,836,000 |
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96,429,000 |
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Capital lease obligations, net of current portion |
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5,500,000 |
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6,945,000 |
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Long-term deferred compensation |
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1,171,000 |
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915,000 |
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Deferred income tax |
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7,977,000 |
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7,977,000 |
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Total liabilities |
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166,186,000 |
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131,428,000 |
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Shareholders’ equity: |
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Common stock |
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— |
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— |
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Paid in capital |
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56,055,000 |
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53,236,000 |
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Retained earnings |
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37,604,000 |
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37,253,000 |
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Total shareholders’ equity |
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93,659,000 |
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90,489,000 |
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Total liabilities and shareholders’ equity |
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$ |
259,845,000 |
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$ |
221,917,000 |
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3
MTR GAMING GROUP, INC.
CONDENSED AND CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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THREE MONTHS ENDED |
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2003 |
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2002 |
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Revenues: |
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Gaming |
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$ |
56,340,000 |
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$ |
53,148,000 |
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Parimutuel commissions |
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1,746,000 |
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1,912,000 |
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Food, beverage and lodging |
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4,582,000 |
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3,444,000 |
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Other |
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934,000 |
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899,000 |
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Total revenues |
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63,602,000 |
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59,403,000 |
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Less promotional allowances |
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(1,155,000 |
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(1,396,000 |
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Net revenues |
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62,447,000 |
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58,007,000 |
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Costs of Revenues: |
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Cost of gaming |
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33,921,000 |
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31,675,000 |
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Cost of parimutuel commissions |
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1,587,000 |
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1,672,000 |
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Cost of food, beverage and lodging |
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3,718,000 |
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3,265,000 |
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Cost of other revenue |
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