Mohegan Tribal Gaming Authority reports Q1 results

31 Jan 2007

UNCASVILLE, Connecticut -– (PRESS RELEASE) -- The Mohegan Tribal Gaming Authority, or MTGA or the Authority, the operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, or Pocono Downs, announced today its operating results for the quarter ended December 31, 2006.

Highlights and results for the quarter ended December 31, 2006 were as follows:

* Record first quarter gaming revenues of $346.9 million, a 10.0% increase over the corresponding period in the prior year

* Gross slot revenues of $250.6 million, a 15.9% increase over the corresponding period in the prior year

* Table games revenues of $94.6 million, a 0.8% decrease from the corresponding period in the prior year

* Non-gaming revenues of $70.1 million, a 1.8% decrease from the corresponding period in the prior year

* Income from operations of $68.2 million, a 0.3% decrease from the corresponding period in the prior year

* Net income of $37.9 million, a 1.1% decrease from the corresponding period in the prior year

* Record first quarter Adjusted EBITDA, a non-GAAP measure more fully described below, of $94.8 million, a 4.2% increase over the corresponding period in the prior year

* Opened the Phase I slot machine facility at Mohegan Sun at Pocono Downs on November 14, 2006

* Received approval for a permanent Category One Slot Machine License from the Pennsylvania Gaming Control Board on December 20, 2006 for the operation of slot machines at Mohegan Sun at Pocono Downs in Wilkes-Barre, Pennsylvania

First Quarter Operating Results

Adjusted EBITDA for the quarter ended December 31, 2006 increased by $3.8 million, or 4.2%, to $94.8 million compared to $91.0 million for the same period in the prior year. The increase in Adjusted EBITDA is principally attributable to the increase in Adjusted EBITDA from Mohegan Sun at Pocono Downs as a result of the opening of the Phase I slot machine facility during the quarter.

Net income for the quarter ended December 31, 2006 decreased by $404,000, or 1.1%, to $37.9 million from $38.3 million for the same period in the prior year. The decrease in net income is primarily due to the increase in pre- opening costs and expenses related to the opening of the Phase I slot machine facility at Mohegan Sun at Pocono Downs and higher interest expense costs, as described below.

"The MTGA Management Board is extremely pleased with the results of the quarter and want to thank and congratulate our employees who continue to make Mohegan Sun a first class facility," said Bruce S. Bozsum, Chairman of the Authority's Management Board. "We are also extremely proud of the successful opening of our facility at Pocono Downs in November and look forward to the further development of that property."

Mohegan Sun

Adjusted EBITDA at Mohegan Sun for the quarter ended December 31, 2006 increased by $557,000, or 0.6%, to $93.9 million compared to $93.4 million for the same period in the prior year. The Adjusted EBITDA margin at Mohegan Sun for the quarter ended December 31, 2006 was 26.4% compared to 27.0% for the same period in the prior year. The Adjusted EBITDA margin decrease is primarily attributable to increased advertising expenditures from the production of new television commercials and additional costs related to the Mohegan Sun ten-year anniversary festivities for employees and casino patrons.

Net revenues for the quarter ended December 31, 2006 increased by $9.8 million, or 2.8%, to $355.5 million from $345.7 million for the same period in the prior year. This increase is attributable primarily to a 3.2% growth in gaming revenues at Mohegan Sun and a 5.9% decrease in promotional allowances.

Gross slot revenues, which the Authority also refers to as gross slot win, for the quarter ended December 31, 2006 increased by $12.6 million, or 5.8%, to $228.8 million from $216.2 million for the same period in the prior year. The State of Connecticut reported total slot revenues of $425.2 million and $407.1 million for the quarters ended December 31, 2006 and 2005, respectively, representing an increase of 4.4%. Mohegan Sun increased its slot market share to 53.8% of the Connecticut market for the quarter ended December 31, 2006 versus 53.1% in the quarter ended December 31, 2005. Gross slot hold percentage, or gross slot revenues divided by slot handle, for the quarter ended December 31, 2006 was 8.6% compared to 8.4% for the same period in the prior year. Gross slot win per unit per day was $402 and $379 for the quarters ended December 31, 2006 and 2005, respectively.

Table games revenues decreased by $763,000, or 0.8%, to $94.6 million for the quarter ended December 31, 2006 from $95.3 million for the same period in the prior year. Table games hold percentage, or table games revenues divided by table games drop, was 16.1% and 17.0% for the quarters ended December 31, 2006 and 2005, respectively. 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 $3,371 and $3,450 for the quarters ended December 31, 2006 and 2005, respectively.

Food and beverage revenues of $24.1 million for the quarter ended December 31, 2006 were comparable to food and beverage revenues of $24.0 million for the same period in the prior year.

Hotel revenues for the quarter ended December 31, 2006 increased by $334,000, or 2.6%, to $12.9 million from $12.6 million for the same period in the prior year. The increase in hotel revenues is attributable to an increase in the average daily room rate, or ADR, to $127 for the quarter ended December 31, 2006 compared to $122 for the quarter ended December 31, 2005, offset by a decrease in hotel occupancy to 89.2% for the quarter ended December 31, 2006 compared to 91.2% for the quarter ended December 31, 2005. The decrease in hotel occupancy is the result of rooms being out of service due to the hotel room renovation program that commenced in late September 2006 and will continue through June 2007. Revenue per Available Room, or REVPAR, increased to $113 for the quarter ended December 31, 2006 compared to $111 for the same period in the prior year.

Retail, entertainment and other revenues decreased by $2.6 million, or 7.5%, to $31.4 million for the quarter ended December 31, 2006 from $34.0 million for the same period in the prior year. The decrease is primarily attributable to a $2.8 million, or 18.6%, decrease in entertainment revenues due to a 10.8% decrease in Mohegan Sun Arena events, and a 14.4% decrease in Arena ticket sales and a 7.7% decrease in average Arena ticket price.

Income from operations for the quarter ended December 31, 2006 increased by $238,000, or 0.3%, to $72.8 million from $72.5 million for the quarter ended December 31, 2005.

"We are pleased with the strong growth in slot revenues during the first quarter as we continue to increase our Connecticut market share," said Jeffrey E. Hartmann, MTGA Chief Operating Officer. "We will continue to focus on delivering exemplary levels of service to our Mohegan Sun guests."

Mohegan Sun at Pocono Downs

Adjusted EBITDA for the quarter ended December 31, 2006 increased by $3.5 million to $3.3 million compared to $(231,000) for the same period in the prior year. The increase is attributable to the opening of the Phase I slot machine facility at Mohegan Sun at Pocono Downs during the quarter. The Adjusted EBITDA margin for the quarter ended December 31, 2006 was 11.2% compared to (3.0)% for the same period in the prior year.

Net revenues for the quarter ended December 31, 2006 increased by $22.2 million to $29.8 million compared to $7.6 million for the same period in the prior year. The increase is attributable primarily to a $21.5 million increase in gaming revenues and an $845,000 increase in non-gaming revenues as a result of the opening of the Phase I slot machine facility on November 14, 2006.

Gaming revenues for the quarter ended December 31, 2006 were $28.3 million compared to $6.8 million for the same period in the prior year. The increase is attributable primarily to the addition of $21.8 million in gross slot revenues as a result of the opening of the Phase I slot machine facility. Gross slot win per unit per day was $412 for the quarter ended December 31, 2006.

Non-gaming revenues for the quarter ended December 31, 2006 were $1.6 million compared to $801,000 for the same period in the prior year. The increase is attributable to the opening of the Phase I slot machine operation at Pocono Downs, which resulted in increased patron visitation to food and beverage and retail outlets.

Loss from operations of $1.9 million for the quarter ended December 31, 2006 was comparable to the loss from operations of $2.0 million for the same period in the prior year. The loss from operations for the quarter ended December 31, 2006 includes $3.2 million in pre-opening costs and expenses related to the opening of the Phase I slot machine facility.

Commenting on the operations at Mohegan Sun at Pocono Downs, its President and Chief Executive Officer, Robert J. Soper, said, "The opening was extremely smooth and we are very pleased with our gaming volumes achieved to date, as well as the strong appeal of our facility to our patrons."

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
	Mohegan Tribal Gaming Authority reports Q1 results 31 Jan 2007 <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 MTGA or the Authority, the operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, or Pocono Downs, announced today its operating results for the quarter ended December 31, 2006. Highlights and results for the quarter ended December 31, 2006 were as follows: * Record first quarter gaming revenues of $346.9 million, a 10.0% increase over the corresponding period in the prior year * Gross slot revenues of $250.6 million, a 15.9% increase over the corresponding period in the prior year * Table games revenues of $94.6 million, a 0.8% decrease from the corresponding period in the prior year * Non-gaming revenues of $70.1 million, a 1.8% decrease from the corresponding period in the prior year * Income from operations of $68.2 million, a 0.3% decrease from the corresponding period in the prior year * Net income of $37.9 million, a 1.1% decrease from the corresponding period in the prior year * Record first quarter Adjusted EBITDA, a non-GAAP measure more fully described below, of $94.8 million, a 4.2% increase over the corresponding period in the prior year * Opened the Phase I slot machine facility at Mohegan Sun at Pocono Downs on November 14, 2006 * Received approval for a permanent Category One Slot Machine License from the Pennsylvania Gaming Control Board on December 20, 2006 for the operation of slot machines at Mohegan Sun at Pocono Downs in Wilkes-Barre, Pennsylvania First Quarter Operating Results Adjusted EBITDA for the quarter ended December 31, 2006 increased by $3.8 million, or 4.2%, to $94.8 million compared to $91.0 million for the same period in the prior year. The increase in Adjusted EBITDA is principally attributable to the increase in Adjusted EBITDA from Mohegan Sun at Pocono Downs as a result of the opening of the Phase I slot machine facility during the quarter. Net income for the quarter ended December 31, 2006 decreased by $404,000, or 1.1%, to $37.9 million from $38.3 million for the same period in the prior year. The decrease in net income is primarily due to the increase in pre- opening costs and expenses related to the opening of the Phase I slot machine facility at Mohegan Sun at Pocono Downs and higher interest expense costs, as described below. "The MTGA Management Board is extremely pleased with the results of the quarter and want to thank and congratulate our employees who continue to make Mohegan Sun a first class facility," said Bruce S. Bozsum, Chairman of the Authority's Management Board. "We are also extremely proud of the successful opening of our facility at Pocono Downs in November and look forward to the further development of that property." Mohegan Sun Adjusted EBITDA at Mohegan Sun for the quarter ended December 31, 2006 increased by $557,000, or 0.6%, to $93.9 million compared to $93.4 million for the same period in the prior year. The Adjusted EBITDA margin at Mohegan Sun for the quarter ended December 31, 2006 was 26.4% compared to 27.0% for the same period in the prior year. The Adjusted EBITDA margin decrease is primarily attributable to increased advertising expenditures from the production of new television commercials and additional costs related to the Mohegan Sun ten-year anniversary festivities for employees and casino patrons. Net revenues for the quarter ended December 31, 2006 increased by $9.8 million, or 2.8%, to $355.5 million from $345.7 million for the same period in the prior year. This increase is attributable primarily to a 3.2% growth in gaming revenues at Mohegan Sun and a 5.9% decrease in promotional allowances. Gross slot revenues, which the Authority also refers to as gross slot win, for the quarter ended December 31, 2006 increased by $12.6 million, or 5.8%, to $228.8 million from $216.2 million for the same period in the prior year. The State of Connecticut reported total slot revenues of $425.2 million and $407.1 million for the quarters ended December 31, 2006 and 2005, respectively, representing an increase of 4.4%. Mohegan Sun increased its slot market share to 53.8% of the Connecticut market for the quarter ended December 31, 2006 versus 53.1% in the quarter ended December 31, 2005. Gross slot hold percentage, or gross slot revenues divided by slot handle, for the quarter ended December 31, 2006 was 8.6% compared to 8.4% for the same period in the prior year. Gross slot win per unit per day was $402 and $379 for the quarters ended December 31, 2006 and 2005, respectively. Table games revenues decreased by $763,000, or 0.8%, to $94.6 million for the quarter ended December 31, 2006 from $95.3 million for the same period in the prior year. Table games hold percentage, or table games revenues divided by table games drop, was 16.1% and 17.0% for the quarters ended December 31, 2006 and 2005, respectively. 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 $3,371 and $3,450 for the quarters ended December 31, 2006 and 2005, respectively. Food and beverage revenues of $24.1 million for the quarter ended December 31, 2006 were comparable to food and beverage revenues of $24.0 million for the same period in the prior year. Hotel revenues for the quarter ended December 31, 2006 increased by $334,000, or 2.6%, to $12.9 million from $12.6 million for the same period in the prior year. The increase in hotel revenues is attributable to an increase in the average daily room rate, or ADR, to $127 for the quarter ended December 31, 2006 compared to $122 for the quarter ended December 31, 2005, offset by a decrease in hotel occupancy to 89.2% for the quarter ended December 31, 2006 compared to 91.2% for the quarter ended December 31, 2005. The decrease in hotel occupancy is the result of rooms being out of service due to the hotel room renovation program that commenced in late September 2006 and will continue through June 2007. Revenue per Available Room, or REVPAR, increased to $113 for the quarter ended December 31, 2006 compared to $111 for the same period in the prior year. Retail, entertainment and other revenues decreased by $2.6 million, or 7.5%, to $31.4 million for the quarter ended December 31, 2006 from $34.0 million for the same period in the prior year. The decrease is primarily attributable to a $2.8 million, or 18.6%, decrease in entertainment revenues due to a 10.8% decrease in Mohegan Sun Arena events, and a 14.4% decrease in Arena ticket sales and a 7.7% decrease in average Arena ticket price. Income from operations for the quarter ended December 31, 2006 increased by $238,000, or 0.3%, to $72.8 million from $72.5 million for the quarter ended December 31, 2005. "We are pleased with the strong growth in slot revenues during the first quarter as we continue to increase our Connecticut market share," said Jeffrey E. Hartmann, MTGA Chief Operating Officer. "We will continue to focus on delivering exemplary levels of service to our Mohegan Sun guests." Mohegan Sun at Pocono Downs Adjusted EBITDA for the quarter ended December 31, 2006 increased by $3.5 million to $3.3 million compared to $(231,000) for the same period in the prior year. The increase is attributable to the opening of the Phase I slot machine facility at Mohegan Sun at Pocono Downs during the quarter. The Adjusted EBITDA margin for the quarter ended December 31, 2006 was 11.2% compared to (3.0)% for the same period in the prior year. Net revenues for the quarter ended December 31, 2006 increased by $22.2 million to $29.8 million compared to $7.6 million for the same period in the prior year. The increase is attributable primarily to a $21.5 million increase in gaming revenues and an $845,000 increase in non-gaming revenues as a result of the opening of the Phase I slot machine facility on November 14, 2006. Gaming revenues for the quarter ended December 31, 2006 were $28.3 million compared to $6.8 million for the same period in the prior year. The increase is attributable primarily to the addition of $21.8 million in gross slot revenues as a result of the opening of the Phase I slot machine facility. Gross slot win per unit per day was $412 for the quarter ended December 31, 2006. Non-gaming revenues for the quarter ended December 31, 2006 were $1.6 million compared to $801,000 for the same period in the prior year. The increase is attributable to the opening of the Phase I slot machine operation at Pocono Downs, which resulted in increased patron visitation to food and beverage and retail outlets. Loss from operations of $1.9 million for the quarter ended December 31, 2006 was comparable to the loss from operations of $2.0 million for the same period in the prior year. The loss from operations for the quarter ended December 31, 2006 includes $3.2 million in pre-opening costs and expenses related to the opening of the Phase I slot machine facility. Commenting on the operations at Mohegan Sun at Pocono Downs, its President and Chief Executive Officer, Robert J. Soper, said, "The opening was extremely smooth and we are very pleased with our gaming volumes achieved to date, as well as the strong appeal of our facility to our patrons."