Mohegan Sun Results Up

8 Feb 2005

UNCASVILLE, Connecticut – (PRESS RELEASE) -- The Mohegan Tribal Gaming Authority, or the Authority, the operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, announced today its operating results for the quarter ended December 31, 2004.

Results and significant events for the quarter ended December 31, 2004 were as follows:

-- Record first quarter gaming revenues of $288.2 million, a 5.2% increase over the corresponding period in the prior year

-- Gross slot revenues of $208.3 million, a 3.6% increase over the corresponding period in the prior year

-- Table games revenues of $84.1 million, a 10.4% increase over the corresponding period in the prior year

-- Non-gaming revenues of $61.1 million, a 1.0% increase over the corresponding period in the prior year

-- Income from operations of $60.4 million, a 15.0% increase over the corresponding period in the prior year

-- Net income of $34.2 million, a 31.1% increase over the corresponding period in the prior year

-- Adjusted EBITDA, a non-GAAP measure more fully described below, of $81.8 million, a 7.7% increase over the corresponding period in the prior year

-- Amended the Authority's bank credit facility to increase total loan commitment from $382.7 million to $600.0 million, comprised of a $450.0 million revolving loan and a $150.0 million term loan

-- Entered into an agreement to purchase the Pocono Downs standardbred harness racing facility and five off-track wagering facilities in Pennsylvania for $280.0 million, which closed on January 25, 2005

-- Entered into a management agreement with the Menominee Indian Tribe of Wisconsin to manage, operate and maintain their planned casino and destination resort in Kenosha, Wisconsin

First Quarter Operating Results

Commenting on the quarter, Mark F. Brown, Chairman of the Mohegan Tribal Gaming Authorities Management Board said, "We are delighted with the results which clearly demonstrate our strength in the gaming market."

Net revenues for the quarter ended December 31, 2004 increased by $12.3 million, or 4.0%, to $319.3 million from $307.0 million for the same period in the prior year. This increase is primarily the result of the continued growth in gaming revenues, particularly table games and slot revenues.

Gaming revenues for the quarter ended December 31, 2004 increased by $14.1 million, or 5.2%, to $288.2 million from $274.1 million for the same period in the prior year. This increase is due primarily to growth in table games and slot revenues.

William J. Velardo, Chief Executive Officer of the Authority, stated, "I am pleased with our first quarter results. This is the direct result of the contributions made by our 9,500 employees."

Gross slot revenues, which the Authority also refers to as gross slot win, for the quarter ended December 31, 2004 increased by $7.2 million, or 3.6%, to $208.3 million from $201.1 million for the same period in the prior year. The State of Connecticut reported slot revenues of $401.2 million and $387.1 million for the quarters ended December 31, 2004 and 2003, respectively, representing an increase of 3.6%. Gross slot hold percentage, or gross slot revenues divided by slot handle, for the quarter ended December 31, 2004 was 8.1% compared to 8.2% for the same period in the prior year. Slot handle for the quarter ended December 31, 2004 increased by $101.8 million, or 4.1%, to $2.56 billion from $2.46 billion for the same period in the prior year. Gross slot win per unit per day was $363 and $356 for the quarters ending December 31, 2004 and 2003, respectively.

Table games revenues for the quarter ended December 31, 2004 increased by $7.9 million, or 10.4%, to $84.1 million from $76.2 million for the same period in the prior year. Table games hold percentage, or table games revenues divided by table games drop, was 16.4% for the quarter ended December 31, 2004 compared to 15.7% for the same period in the prior year. Table games hold percentage is relatively predictable over long periods of time, but can fluctuate significantly over shorter periods. Table games revenue per unit per day was $3,153 and $3,038 for the quarters ending December 31, 2004 and 2003, respectively.

Non-gaming revenues for the quarter ended December 31, 2004 increased by $600,000, or 1.0%, to $61.1 million from $60.5 million for the same period in the prior year. Retail, entertainment and other revenues increased by $1.7 million, or 6.9%, to $26.7 million for the quarter ended December 31, 2004 from $25.0 million for the same period in the prior year. Hotel revenues decreased $1.0 million, or 7.5%, to $11.9 million in the quarter ended December 31, 2004 from $12.9 million in the same period of the prior year. The average daily room rate, or ADR, was $120 with an occupancy rate of 87.1% for the quarter ended December 31, 2004 compared to an ADR of $133 and an occupancy rate of 86.3% for the same period in the prior year. The lower ADR in the quarter ended December 31, 2004 was primarily the result of a 12% decrease in ADR for rooms utilized by our Players Club members. Revenue per Available Room, or REVPAR, was $105 for the quarter ended December 31, 2004 compared to $114 for the same period in the prior year.

"We are extremely pleased with the results for the first quarter, particularly with the way our team was able to manage the business and deliver to the bottom line," said Mitchell Grossinger Etess, President and Chief Executive Officer of Mohegan Sun.

Income from operations for the quarter ended December 31, 2004 increased by $7.9 million, or 15.0%, to $60.4 million from $52.5 million for the quarter ended December 31, 2003. The increase is principally attributable to the increase in net revenues, offset by increases in operating costs and expenses of 1.7%.

Net income for the quarter ended December 31, 2004 increased by $8.1 million, or 31.1%, to $34.2 million from $26.1 million for the same period in the prior year. The increase in net income is primarily due to the increase in income from operations. Interest expense totaled $19.2 million for the quarter ended December 31, 2004 compared to $19.0 millon for the same period in the prior year. The weighted average outstanding debt was $1.05 billion for the quarter ended December 31, 2004 and $1.12 billion for the quarter ended December 31, 2003. The weighted average interest rate was 7.3% for the quarter ended December 31, 2004 compared to 6.8% for the same period in the prior year.

Adjusted EBITDA

Adjusted EBITDA for the quarter ended December 31, 2004 increased by $5.8 million, or 7.7%, to $81.8 million compared to $76.0 million for the same period in the prior year. The Authority achieved a 25.6% Adjusted EBITDA margin (Adjusted EBITDA as a percentage of net revenues) for the quarter ended December 31, 2004 compared to a 24.7% Adjusted EBITDA margin for the same period in the prior year.

The increase in the Adjusted EBITDA margin was principally attributable to an improved table games hold percentage and improved entertainment results due to a favorable change in the mix of events held at the Mohegan Sun Arena compared to the prior period, as well as lower medical group insurance costs. The increase in margin was partially offset by an increase in patron marketing expenses, the increase in redemption of promotional gift cards at tenant retail outlets and increased administrative costs related to compliance with the Sarbanes-Oxley Act.

"We were pleased with the improvements in our Adjusted EBITDA margin," said Jeffrey E. Hartmann, Executive Vice President and Chief Operating Officer of Mohegan Sun. "We have made substantial progress in our margins over the past year."

Language: English Location: Currency: > edit my preferences Home Online Slots Live Dealer Games Online Casinos Online Poker Online Bingo Games Lotteries Sports & Racebooks Fantasy Sports Forex Betting Exchanges Spread Betting Binary Options Exclusive Bonuses Weekly Newsletter Online Gaming News Payment Methods Gaming Software Gaming Site Owners Gaming Jurisdictions		Bonuses! New games! Gossip! And all the player news you can handle. Sign up NOW! View the current issue Related Links Mohegan Sun Details
	Mohegan Sun Results Up 8 Feb 2005 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> UNCASVILLE, Connecticut – (PRESS RELEASE) -- The Mohegan Tribal Gaming Authority, or the Authority, the operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, announced today its operating results for the quarter ended December 31, 2004. Results and significant events for the quarter ended December 31, 2004 were as follows: -- Record first quarter gaming revenues of $288.2 million, a 5.2% increase over the corresponding period in the prior year -- Gross slot revenues of $208.3 million, a 3.6% increase over the corresponding period in the prior year -- Table games revenues of $84.1 million, a 10.4% increase over the corresponding period in the prior year -- Non-gaming revenues of $61.1 million, a 1.0% increase over the corresponding period in the prior year -- Income from operations of $60.4 million, a 15.0% increase over the corresponding period in the prior year -- Net income of $34.2 million, a 31.1% increase over the corresponding period in the prior year -- Adjusted EBITDA, a non-GAAP measure more fully described below, of $81.8 million, a 7.7% increase over the corresponding period in the prior year -- Amended the Authority's bank credit facility to increase total loan commitment from $382.7 million to $600.0 million, comprised of a $450.0 million revolving loan and a $150.0 million term loan -- Entered into an agreement to purchase the Pocono Downs standardbred harness racing facility and five off-track wagering facilities in Pennsylvania for $280.0 million, which closed on January 25, 2005 -- Entered into a management agreement with the Menominee Indian Tribe of Wisconsin to manage, operate and maintain their planned casino and destination resort in Kenosha, Wisconsin First Quarter Operating Results Commenting on the quarter, Mark F. Brown, Chairman of the Mohegan Tribal Gaming Authorities Management Board said, "We are delighted with the results which clearly demonstrate our strength in the gaming market." Net revenues for the quarter ended December 31, 2004 increased by $12.3 million, or 4.0%, to $319.3 million from $307.0 million for the same period in the prior year. This increase is primarily the result of the continued growth in gaming revenues, particularly table games and slot revenues. Gaming revenues for the quarter ended December 31, 2004 increased by $14.1 million, or 5.2%, to $288.2 million from $274.1 million for the same period in the prior year. This increase is due primarily to growth in table games and slot revenues. William J. Velardo, Chief Executive Officer of the Authority, stated, "I am pleased with our first quarter results. This is the direct result of the contributions made by our 9,500 employees." Gross slot revenues, which the Authority also refers to as gross slot win, for the quarter ended December 31, 2004 increased by $7.2 million, or 3.6%, to $208.3 million from $201.1 million for the same period in the prior year. The State of Connecticut reported slot revenues of $401.2 million and $387.1 million for the quarters ended December 31, 2004 and 2003, respectively, representing an increase of 3.6%. Gross slot hold percentage, or gross slot revenues divided by slot handle, for the quarter ended December 31, 2004 was 8.1% compared to 8.2% for the same period in the prior year. Slot handle for the quarter ended December 31, 2004 increased by $101.8 million, or 4.1%, to $2.56 billion from $2.46 billion for the same period in the prior year. Gross slot win per unit per day was $363 and $356 for the quarters ending December 31, 2004 and 2003, respectively. Table games revenues for the quarter ended December 31, 2004 increased by $7.9 million, or 10.4%, to $84.1 million from $76.2 million for the same period in the prior year. Table games hold percentage, or table games revenues divided by table games drop, was 16.4% for the quarter ended December 31, 2004 compared to 15.7% for the same period in the prior year. Table games hold percentage is relatively predictable over long periods of time, but can fluctuate significantly over shorter periods. Table games revenue per unit per day was $3,153 and $3,038 for the quarters ending December 31, 2004 and 2003, respectively. Non-gaming revenues for the quarter ended December 31, 2004 increased by $600,000, or 1.0%, to $61.1 million from $60.5 million for the same period in the prior year. Retail, entertainment and other revenues increased by $1.7 million, or 6.9%, to $26.7 million for the quarter ended December 31, 2004 from $25.0 million for the same period in the prior year. Hotel revenues decreased $1.0 million, or 7.5%, to $11.9 million in the quarter ended December 31, 2004 from $12.9 million in the same period of the prior year. The average daily room rate, or ADR, was $120 with an occupancy rate of 87.1% for the quarter ended December 31, 2004 compared to an ADR of $133 and an occupancy rate of 86.3% for the same period in the prior year. The lower ADR in the quarter ended December 31, 2004 was primarily the result of a 12% decrease in ADR for rooms utilized by our Players Club members. Revenue per Available Room, or REVPAR, was $105 for the quarter ended December 31, 2004 compared to $114 for the same period in the prior year. "We are extremely pleased with the results for the first quarter, particularly with the way our team was able to manage the business and deliver to the bottom line," said Mitchell Grossinger Etess, President and Chief Executive Officer of Mohegan Sun. Income from operations for the quarter ended December 31, 2004 increased by $7.9 million, or 15.0%, to $60.4 million from $52.5 million for the quarter ended December 31, 2003. The increase is principally attributable to the increase in net revenues, offset by increases in operating costs and expenses of 1.7%. Net income for the quarter ended December 31, 2004 increased by $8.1 million, or 31.1%, to $34.2 million from $26.1 million for the same period in the prior year. The increase in net income is primarily due to the increase in income from operations. Interest expense totaled $19.2 million for the quarter ended December 31, 2004 compared to $19.0 millon for the same period in the prior year. The weighted average outstanding debt was $1.05 billion for the quarter ended December 31, 2004 and $1.12 billion for the quarter ended December 31, 2003. The weighted average interest rate was 7.3% for the quarter ended December 31, 2004 compared to 6.8% for the same period in the prior year. Adjusted EBITDA Adjusted EBITDA for the quarter ended December 31, 2004 increased by $5.8 million, or 7.7%, to $81.8 million compared to $76.0 million for the same period in the prior year. The Authority achieved a 25.6% Adjusted EBITDA margin (Adjusted EBITDA as a percentage of net revenues) for the quarter ended December 31, 2004 compared to a 24.7% Adjusted EBITDA margin for the same period in the prior year. The increase in the Adjusted EBITDA margin was principally attributable to an improved table games hold percentage and improved entertainment results due to a favorable change in the mix of events held at the Mohegan Sun Arena compared to the prior period, as well as lower medical group insurance costs. The increase in margin was partially offset by an increase in patron marketing expenses, the increase in redemption of promotional gift cards at tenant retail outlets and increased administrative costs related to compliance with the Sarbanes-Oxley Act. "We were pleased with the improvements in our Adjusted EBITDA margin," said Jeffrey E. Hartmann, Executive Vice President and Chief Operating Officer of Mohegan Sun. "We have made substantial progress in our margins over the past year."

Related Links

Mohegan Sun Results Up