Exhibit 99.1
FOR IMMEDIATE RELEASE
MTR GAMING GROUP ANNOUNCES THIRD QUARTER RESULTS
CHESTER, WV — November 8, 2007 — MTR Gaming Group, Inc. (NasdaqGS:MNTG) today announced financial results for the third quarter and nine months ended September 30, 2007. See attached tables (including Reconciliation of Non-GAAP Measures to GAAP).
For the third quarter, MTR’s net revenues increased 41% to $118.6 million compared to the same period of 2006. EBITDA from continuing operations grew 21% to $17.3 million. MTR reported income from continuing operations of $802,000 or $0.03 per diluted share, versus $1.6 million or $0.06 per diluted share in last year’s third quarter. The Company incurred additional net interest expense of $5.1 million during the current third quarter compared to a year ago associated with increased borrowings for the construction and development of Presque Isle Downs. In the current quarter, Binion’s was reflected as discontinued operations, following the expiration of the purchaser’s early termination right. As a result, the Company incurred a loss from discontinued operations of $3.6 million (including a pretax loss on disposal of $1.5 million) or $0.13 per diluted share, versus $1.5 million or $0.06 per diluted share in the third quarter of 2006. MTR reported a net loss of $2.8 million or $0.10 per diluted share, versus net income of $103,000 or $0.00 per diluted share in the third quarter of last year.
Net revenues at The Mountaineer Race Track & Gaming Resort were $67.0 million, compared to $78.5 million in the third quarter of 2006. The Company attributes the revenue decrease to the impact on Mountaineer’s market from the opening of gaming operations in Pennsylvania. Mountaineer generated EBITDA of $12.7 million, versus $19.6 million in the comparable quarter of 2006. The property’s profitability was impacted by the decrease in revenues as well as increased marketing costs associated with an aggressive marketing campaign to build player loyalty ($900,000) and expenses incurred in connection with the opening of table gaming ($600,000), which included costs to support the local referendum to allow table gaming at Mountaineer and employee hiring costs.
Presque Isle Downs, which opened on February 28, 2007, contributed net revenues of $46.7 million and EBITDA of $7.9 million during the 2007 third quarter. The property margins were impacted by an aggressive marketing campaign designed to build player loyalty and brand awareness as well as the commencement of live racing.
For the first nine months of 2007, MTR’s net revenues rose 36% to $327.9 million compared to the 2006 nine-month period. EBITDA from continuing operations increased 19% to $47.4 million. Presque Isle Downs contributed net revenues of $111.7 million and EBITDA of $18.8 million year-to-date since its opening on February 28, 2007. During the first nine months of 2007, the Company incurred $4.1 million in project opening costs, $3.0 million of which were associated with Presque Isle Downs and $1.1 million of which were related to table games at
1
Mountaineer, versus $968,000 associated with Presque Isle Downs during the first nine months of last year. MTR incurred additional net interest expense of $12.6 million in the 2007 period due to increased borrowings for the construction and development of Presque Isle Downs. MTR reported income from continuing operations of $1.7 million or $0.06 per diluted share, versus $6.0 million or $0.22 per diluted share in last year’s nine-month period. The Company incurred a loss from discontinued operations of $4.5 million or $0.16 per diluted share in the 2007 period, versus $2.1 million or $0.08 per diluted share in the 2006 period. MTR reported a net loss of $2.8 million or $0.10 per diluted share for the first nine months of 2007, compared to net income of $3.9 million or $0.14 per diluted share in the first nine months of 2006.
Edson R. (Ted) Arneault, President and CEO of MTR Gaming Group, stated, “2007 will be a key transitional year for the Company as we exit non-strategic properties in Nevada and leverage growth opportunities in West Virgina with the introduction of table games, in Pennsylvania with the opening and ramp-up of Presque Isle Downs and in Minnesota with the ground breaking of our joint venture track and card club.”
Mr. Arneault continued, “In mid-October, we launched 37 poker tables at Mountaineer, which are exceeding our expectations. Based on current demand, we are anticipating adding 4 additional poker tables. We are looking forward to opening 50 table games at Mountaineer on or about January 1st. We believe that table games will enhance the property’s competitive position by drawing new customers and driving increased play from our existing customers. Presque Isle construction is nearly complete in line with our budget. We opened the OTB operation in July and commenced live racing on September 1.”
MTR also announced the appointment of Ray A. Morrow as Director of Corporate Security. Mr. Morrow spent 20 years with the Federal Bureau of Investigation, most recently serving as the Special Agent in Charge of the FBI’s Pittsburgh office. Prior to joining the FBI, he handled corporate security and law enforcement for Alleghany International, Inc. for seven years. Mr. Morrow also spent two years with the United States Secret Service, assigned to the White House. Mr. Morrow will work with the Company’s Compliance Committee, human resources department and security and surveillance staffs. He will assume his new duties effective December 1. Commenting on the appointment, Mr. Arneault stated, “Ray Morrow is talented, experienced and energetic. We are pleased to have an executive with Ray’s background join MTR and believe he will be an effective leader in assuring our continued compliance with gaming regulations in the states in which we operate as we expand the number and scope of our operations.”
Reconciliation of Non-GAAP Measures to GAAP
EBITDA represents earnings (losses) before interest, income tax expense (benefit), depreciation and amortization, equity in loss of unconsolidated joint venture and gain (loss) on disposal of property. EBITDA is not a measure of performance or liquidity calculated in accordance with generally accepted accounting principles (“GAAP”), is unaudited and should not be considered as an alternative to, or more meaningful than, net income or income from operations as an indicator of our operating performance, or cash flows from operating activities, as measures of liquidity. EBITDA has been presented as a supplemental disclosure because it is a widely used measure of performance and basis’ for valuation of companies in our industry. Uses of cash flows that are not reflected in EBITDA include capital expenditures (which are significant given our expansion), interest payments, income taxes, and debt principal repayments. Moreover, other companies that provide EBITDA
2
information may calculate EBITDA differently than we do. A reconciliation of GAAP net income (loss) to EBITDA is included in the financial tables accompanying this release.
Conference Call
Management will conduct a conference call focusing on the financial results and recent corporate developments on Thursday, November 8, 2007 at 10:00 a.m. ET. Interested parties may participate in the call by dialing (706) 679-0882 — please call in 10 minutes before the call is scheduled to begin and ask for the MTR Gaming call (conference ID # 22244922). The conference call will be webcast live via the Investor Relations section of the Company’s website at www.mtrgaming.com. To listen to the live webcast please go to the website at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call, as well as this press release, will be archived on the Investor Relations section of the Company’s web site.
About MTR Gaming Group
MTR Gaming Group, Inc., through subsidiaries, owns and operates The Mountaineer Race Track & Gaming Resort in Chester, WV; Presque Isle Downs & Casino in Erie, PA; Scioto Downs in Columbus, OH; Binion’s Gambling Hall & Hotel in Las Vegas, NV (under contract for sale); and the Ramada Inn and Speedway Casino in North Las Vegas, NV (under contract for sale). The Company also owns a 90% interest in Jackson Trotting Association, LLC, which operates Jackson Harness Raceway in Jackson, MI, and a 50% interest in the North Metro Harness Initiative, LLC, which is developing a harness racetrack and card room 30 miles north of downtown Minneapolis. MTR is included on the Russell 2000® and Russell® 3000 Indexes. For more information, please visit www.mtrgaming.com.
Except for historical information, this press release contains forward-looking statements concerning, among other things, the construction of a racetrack in Minnesota, the commencement of table gaming at Mountaineer, and the prospects for improving the results of our operations at Mountaineer and for our various growth initiatives. Such statements are subject to a number of risks and uncertainties that could cause the statements made to be incorrect and/or for actual results to differ materially. Those risks and uncertainties include but are not limited to disruption (occasioned by weather conditions, work stoppages, availability of materials and other factors) in developing our planned Pennsylvania and Minnesota operations and other facilities we may expand and/or acquire, the success of the table gaming at Mountaineer (including the anticipated positive impact of table gaming on slot operations and resort operations), successful disposition of our Nevada properties, our continued suitability to hold and obtain renewals of our gaming and racing licenses, the impact of new competition, our compliance with environmental laws and potential exposure to environmental liabilities, and other factors described in the Company’s periodic reports filed with the Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements, except as may be required by law. The cautionary advice in this paragraph is permitted by the Private Securities Litigation Reform Act of 1995.
For Additional Information, Please Contact:
MTR Gaming Group, Inc. | | Investor Relations Counsel: |
www.mtrgaming.com | | The Equity Group Inc. |
Steven D. Overly, VP, Business and Legal Affairs | | www.theequitygroup.com |
(304) 387-8558 | | Loren G. Mortman |
soverly@mtrgaming.com | | LMortman@equityny.com |
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MTR GAMING GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share amounts)
(unaudited)
| | Three Months Ended | | Nine Months Ended | |
| | September 30 | | September 30 | |
| | 2007 | | 2006 | | 2007 | | 2006 | |
Revenues: | | | | | | | | | |
Gaming | | $ | 103,468 | | $ | 71,114 | | $ | 289,080 | | $ | 205,590 | |
Parimutuel commissions | | 4,864 | | 4,506 | | 12,318 | | 12,474 | |
Food, beverage and lodging | | 9,783 | | 7,577 | | 25,320 | | 20,265 | |
Other | | 2,372 | | 2,267 | | 6,012 | | 5,881 | |
| | | | | | | | | |
Total revenues | | 120,487 | | 85,464 | | 332,730 | | 244,210 | |
Less promotional allowances | | (1,896 | ) | (1,423 | ) | (4,818 | ) | (3,857 | ) |
Net revenues | | 118,591 | | 84,041 | | 327,912 | | 240,353 | |
| | | | | | | | | |
Operating expenses: | | | | | | | | | |
Expenses of operating departments: | | | | | | | | | |
Gaming | | 63,366 | | 41,314 | | 178,543 | | 123,231 | |
Parimutuel commissions | | 4,570 | | 3,384 | | 10,608 | | 9,676 | |
Food, beverage and lodging | | 8,057 | | 5,245 | | 21,175 | | 14,156 | |
Other revenue | | 2,057 | | 2,051 | | 5,404 | | 5,625 | |
Marketing and promotions | | 6,082 | | 2,870 | | 13,773 | | 7,593 | |
General and administrative | | 16,567 | | 14,571 | | 47,090 | | 39,317 | |
Depreciation | | 7,426 | | 5,279 | | 20,529 | | 15,893 | |
Loss on disposal of property | | 41 | | 42 | | 106 | | 274 | |
Project opening costs | | 634 | | 409 | | 4,118 | | 968 | |
Total operating expenses | | 108,800 | | 75,165 | | 301,346 | | 216,733 | |
| | | | | | | | | |
Operating income | | 9,791 | | 8,876 | | 26,566 | | 23,620 | |
| | | | | | | | | |
Other (expense) income: | | | | | | | | | |
Equity in loss of unconsolidated joint enture | | (96 | ) | — | | (110 | ) | — | |
Interest income | | 65 | | 993 | | 335 | | 1,490 | |
Interest expense | | (9,428 | ) | (5,294 | ) | (24,623 | ) | (13,205 | ) |
| | | | | | | | | |
Income from continuing operations before income taxes and minority interest | | 332 | | 4,575 | | 2,168 | | 11,905 | |
| | | | | | | | | |
Benefit (provision) for income taxes | | 446 | | (3,011 | ) | (615 | ) | (6,013 | ) |
| | | | | | | | | |
Income from continuing operations before minority interest | | 778 | | 1,564 | | 1,553 | | 5,892 | |
| | | | | | | | | |
Minority interest | | 24 | | 37 | | 137 | | 121 | |
| | | | | | | | | |
Income from continuing operations | | 802 | | 1,601 | | 1,690 | | 6,013 | |
| | | | | | | | | |
Discontinued operations: | | | | | | | | | |
Loss from discontinued operations before income taxes | | (4,259 | ) | (2,456 | ) | (5,889 | ) | (3,418 | ) |
Benefit for income taxes | | 614 | | 958 | | 1,413 | | 1,333 | |
Loss from discontinued operations | | (3,645 | ) | (1,498 | ) | (4,476 | ) | (2,085 | ) |
| | | | | | | | | |
Net (loss) income | | $ | (2,843 | ) | $ | 103 | | $ | (2,786 | ) | $ | 3,928 | |
| | | | | | | | | |
Net (loss) income per share - basic: | | | | | | | | | |
Income from continuing operations | | $ | 0.03 | | $ | 0.06 | | $ | 0.06 | | $ | 0.22 | |
Loss from discontinued operations | | (0.13 | ) | (0.06 | ) | (0.16 | ) | (0.08 | ) |
Net (loss) income | | $ | (0.10 | ) | $ | 0.00 | | $ | (0.10 | ) | $ | 0.14 | |
| | | | | | | | | |
Net (loss) income per share - diluted: | | | | | | | | | |
Income from continuing operations | | $ | 0.03 | | $ | 0.06 | | $ | 0.06 | | $ | 0.22 | |
Loss from discontinued operations | | (0.13 | ) | (0.06 | ) | (0.16 | ) | (0.08 | ) |
Net (loss) income | | $ | (0.10 | ) | $ | 0.00 | | $ | (0.10 | ) | $ | 0.14 | |
| | | | | | | | | |
Weighted average number of shares outstanding: | | | | | | | | | |
Basic | | 27,559,076 | | 27,498,026 | | 27,542,645 | | 27,480,045 | |
Diluted | | 27,867,281 | | 27,731,067 | | 27,897,143 | | 27,755,163 | |
| | | | | | | | | | | | | | | |
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MTR GAMING GROUP, INC.
SELECTED FINANCIAL INFORMATION
(dollars in thousands)
(unaudited)
| | Three Months Ended | | Nine Months Ended | |
| | September 30 | | September 30 | |
| | 2007 | | 2006 | | 2007 | | 2006 | |
Net revenues from continuing operations: | | | | | | | | | |
Mountaineer | | $ | 66,963 | | $ | 78,451 | | $ | 201,482 | | $ | 224,295 | |
Presque Isle Downs | | 46,746 | | — | | 111,709 | | — | |
Las Vegas Speedway | | 2,604 | | 2,990 | | 8,437 | | 9,055 | |
Scioto Downs | | 1,662 | | 2,020 | | 3,742 | | 4,422 | |
Jackson Racing | | 613 | | 577 | | 2,505 | | 2,572 | |
North Metro | | — | | — | | 28 | | — | |
Corporate | | 3 | | 3 | | 9 | | 9 | |
Consolidated net revenues from continuing operations | | $ | 118,591 | | $ | 84,041 | | $ | 327,912 | | $ | 240,353 | |
| | | | | | | | | |
EBITDA from continuing operations: | | | | | | | | | |
Mountaineer | | $ | 12,678 | | $ | 19,603 | | $ | 38,509 | | $ | 52,271 | |
Presque Isle Downs | | 7,924 | | (408 | ) | 18,756 | | (967 | ) |
Las Vegas Speedway | | 223 | | 517 | | 1,155 | | 1,905 | |
Scioto Downs | | (409 | ) | (2,580 | ) | (1,427 | ) | (3,375 | ) |
Jackson Racing | | (227 | ) | (56 | ) | (397 | ) | (101 | ) |
North Metro | | (2 | ) | (62 | ) | (180 | ) | (193 | ) |
Corporate | | (2,904 | ) | (2,749 | ) | (9,013 | ) | (9,549 | ) |
Consolidated EBITDA from continuing operations | | $ | 17,283 | | $ | 14,265 | | $ | 47,403 | | $ | 39,991 | |
| | | | | | | | | |
EBITDA from discontinued operations | | (2,014 | ) | (1,731 | ) | (3,645 | ) | (1,645 | ) |
Consolidated EBITDA | | $ | 15,269 | | $ | 12,534 | | $ | 43,758 | | $ | 38,346 | |
| | | | | | | | | | | | | | |
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MTR GAMING GROUP, INC.
SELECTED FINANCIAL INFORMATION (continued)
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(dollars in thousands)
(unaudited)
The following tables set forth a reconciliation of net income (loss), a GAAP financial measure, to EBITDA, non-GAAP financial measures.
| | Three Months Ended | | Nine Months Ended | |
| | September 30 | | September 30 | |
| | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | | | | | | |
EBITDA FROM CONTINUING OPERATIONS: | | | | | | | | | |
| | | | | | | | | |
Mountaineer: | | | | | | | | | |
Income from continuing operations | | $ | 8,505 | | $ | 7,719 | | $ | 15,342 | | $ | 19,174 | |
Interest expense, net of interest income | | 2,205 | | 2,134 | | 6,341 | | 6,449 | |
(Benefit) provision for income taxes | | (1,724 | ) | 4,935 | | 4,845 | | 12,258 | |
Depreciation | | 3,649 | | 4,773 | | 11,861 | | 14,384 | |
Loss on disposal of property | | 43 | | 42 | | 120 | | 6 | |
EBITDA from continuing operations | | $ | 12,678 | | $ | 19,603 | | $ | 38,509 | | $ | 52,271 | |
| | | | | | | | | |
Presque Isle Downs: | | | | | | | | | |
Income (loss) from continuing operations | | $ | 5,063 | | $ | (249 | ) | $ | 8,254 | | $ | (590 | ) |
Interest expense, net of interest income | | 100 | | — | | 756 | | — | |
(Benefit) provision for income taxes | | (507 | ) | (159 | ) | 2,606 | | (377 | ) |
Depreciation | | 3,268 | | — | | 7,140 | | — | |
EBITDA from continuing operations | | $ | 7,924 | | $ | (408 | ) | $ | 18,756 | | $ | (967 | ) |
| | | | | | | | | |
Las Vegas Speedway: | | | | | | | | | |
Income from continuing operations | | $ | 19 | | $ | 122 | | $ | 182 | | $ | 578 | |
Interest expense | | 98 | | 102 | | 292 | | 306 | |
(Benefit) provision for income taxes | | (100 | ) | 78 | | 57 | | 370 | |
Depreciation | | 206 | | 215 | | 624 | | 651 | |
EBITDA from continuing operations | | $ | 223 | | $ | 517 | | $ | 1,155 | | $ | 1,905 | |
| | | | | | | | | |
Scioto Downs: | | | | | | | | | |
Loss from continuing operations | | $ | (876 | ) | $ | (1,730 | ) | $ | (1,647 | ) | $ | (2,511 | ) |
Interest expense, net of interest income | | 30 | | 41 | | 94 | | 105 | |
Provision (benefit) for income taxes | | 221 | | (1,105 | ) | (520 | ) | (1,605 | ) |
Depreciation | | 216 | | 214 | | 646 | | 636 | |
EBITDA from continuing operations | | $ | (409 | ) | $ | (2,580 | ) | $ | (1,427 | ) | $ | (3,375 | ) |
| | | | | | | | | |
Jackson Racing: | | | | | | | | | |
Loss from continuing operations | | $ | (222 | ) | $ | (33 | ) | $ | (314 | ) | $ | (64 | ) |
Interest expense (income), net of interest (income) expense | | | | | | | | | |
and minority interest | | 2 | | (4 | ) | 5 | | (2 | ) |
Benefit for income taxes, net of minority interest | | (10 | ) | (21 | ) | (99 | ) | (41 | ) |
Depreciation, net of minority interest | | 5 | | 2 | | 15 | | 6 | |
Gain on disposal of property, net of minority interest | | (2 | ) | — | | (4 | ) | — | |
EBITDA from continuing operations | | $ | (227 | ) | $ | (56 | ) | $ | (397 | ) | $ | (101 | ) |
| | | | | | | | | |
North Metro: | | | | | | | | | |
Loss from continuing operations | | $ | (83 | ) | $ | (32 | ) | $ | (204 | ) | $ | (113 | ) |
Interest (income) expense, net of interest expense income) | | | | | | | | | |
ad minority interest | | — | | (8 | ) | 42 | | (7 | ) |
Benefit for income taxes, net of minority interest | | (15 | ) | (22 | ) | (131 | ) | (73 | ) |
Depreciation, net of minority interest | | — | | — | | 3 | | — | |
Equity in loss of unconsolidated joint venture | | 96 | | — | | 110 | | — | |
EBITDA from continuing operations | | $ | (2 | ) | $ | (62 | ) | $ | (180 | ) | $ | (193 | ) |
| | | | | | | | | |
Corporate: | | | | | | | | | |
Loss from continuing operations | | $ | (11,604 | ) | $ | (4,196 | ) | $ | (19,923 | ) | $ | (10,461 | ) |
Interest expense, net of interest income | | 6,927 | | 2,044 | | 16,715 | | 4,871 | |
Provision (benefit) for income taxes | | 1,691 | | (672 | ) | (6,033 | ) | (4,442 | ) |
Depreciation | | 82 | | 75 | | 238 | | 215 | |
Loss (gain) on disposal of property | | — | | — | | (10 | ) | 268 | |
EBITDA from continuing operations | | $ | (2,904 | ) | $ | (2,749 | ) | $ | (9,013 | ) | $ | (9,549 | ) |
| | | | | | | | | | | | | | | | | |
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MTR GAMING GROUP, INC.
SELECTED FINANCIAL INFORMATION (continued)
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA (continued)
(dollars in thousands)
(unaudited)
| | Three Months Ended | | Nine Months Ended | |
| | September 30 | | September 30 | |
| | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | | | | | | |
EBITDA FROM CONTINUING OPERATIONS (continued): | | | | | | | | | |
| | | | | | | | | |
Consolidated: | | | | | | | | | |
Income from continuing operations | | $ | 802 | | $ | 1,601 | | $ | 1,690 | | $ | 6,013 | |
Interest expense, net of interest income and minority interest | | 9,362 | | 4,309 | | 24,245 | | 11,722 | |
(Benefit) provision for income taxes, net of minority interest | | (444 | ) | 3,034 | | 725 | | 6,090 | |
Depreciation, net of minority interest | | 7,426 | | 5,279 | | 20,527 | | 15,892 | |
Loss on disposal of property | | 41 | | 42 | | 106 | | 274 | |
Equity in loss of unconsolidated joint venture | | 96 | | — | | 110 | | — | |
EBITDA from continuing operations | | $ | 17,283 | | $ | 14,265 | | $ | 47,403 | | $ | 39,991 | |
| | | | | | | | | |
EBITDA (including discontinued operations): | | | | | | | | | |
| | | | | | | | | |
Binion's Gambling Hall & Hotel: | | | | | | | | | |
Loss from discontinued operations | | $ | (3,645 | ) | $ | (1,498 | ) | $ | (4,476 | ) | $ | (2,085 | ) |
Interest income, net of interest expense | | — | | — | | (28 | ) | (30 | ) |
Benefit for income taxes | | (614 | ) | (958 | ) | (1,413 | ) | (1,333 | ) |
Depreciation | | 745 | | 725 | | 2,045 | | 1,870 | |
Other loss | | 1,500 | | — | | 232 | | — | |
Gain on disposal of property | | — | | — | | (5 | ) | (67 | ) |
EBITDA from discontinued operations | | $ | (2,014 | ) | $ | (1,731 | ) | $ | (3,645 | ) | $ | (1,645 | ) |
| | | | | | | | | |
Consolidated: | | | | | | | | | |
Net (loss) income | | $ | (2,843 | ) | $ | 103 | | $ | (2,786 | ) | $ | 3,928 | |
Interest expense, net of interest income and minority interest | | 9,362 | | 4,309 | | 24,217 | | 11,692 | |
(Benefit) provision for income taxes, net of minority interest | | (1,058 | ) | 2,076 | | (688 | ) | 4,757 | |
Depreciation, net of minority interest | | 8,171 | | 6,004 | | 22,572 | | 17,762 | |
Other loss | | 1,500 | | — | | 232 | | — | |
Loss on disposal of property | | 41 | | 42 | | 101 | | 207 | |
Equity in loss of unconsolidated joint venture | | 96 | | — | | 110 | | — | |
EBITDA | | $ | 15,269 | | $ | 12,534 | | $ | 43,758 | | $ | 38,346 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | |
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MTR GAMING GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
| | September 30 | | December 31 | |
| | 2007 | | 2006 | |
| | (unaudited) | | | |
ASSETS | | | | | |
| | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 31,807 | | $ | 21,431 | |
Short-term investments | | — | | 12,657 | |
Restricted cash | | 311 | | 898 | |
Accounts receivable, net of allowance for doubtful accounts of $124 in 2007 and $89 in 2006 | | 12,685 | | 7,165 | |
Accounts receivable - West Virginia Lottery Commission | | 3,289 | | — | |
Inventories | | 4,301 | | 2,776 | |
Deferred financing costs | | 3,200 | | 2,054 | |
Prepaid income taxes | | 370 | | — | |
Deferred income taxes | | 1,445 | | 899 | |
Other current assets | | 10,401 | | 3,237 | |
Assets held for sale | | 2,869 | | 3,284 | |
Total current assets | | 70,678 | | 54,401 | |
| | | | | |
Property and equipment, net | | 389,961 | | 342,480 | |
Goodwill | | 2,136 | | 1,492 | |
Other intangibles | | 71,688 | | 21,206 | |
Deferred financing costs, net of current portion | | 8,917 | | 7,143 | |
Deposits and other | | 43,733 | | 15,802 | |
Assets held for sale | | 34,779 | | 36,683 | |
Total assets | | $ | 621,892 | | $ | 479,207 | |
| | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 9,450 | | $ | 9,454 | |
Accounts payable - gaming taxes and assessments | | 6,499 | | 1,094 | |
Accrued payroll and payroll taxes | | 3,714 | | 2,475 | |
Accrued income tax liability | | — | | 3,866 | |
Accrued interest | | 11,191 | | 4,182 | |
Other accrued liabilities | | 14,604 | | 11,202 | |
Construction project liabilities | | 6,277 | | 15,418 | |
Current portion of long-term debt and capital lease obligations | | 10,942 | | 6,000 | |
Liabilities held for sale | | 3,992 | | 6,690 | |
Total current liabilities | | 66,669 | | 60,381 | |
| | | | | |
Long-term debt and capital lease obligations, net of current portion | | 415,080 | | 271,908 | |
Long-term deferred compensation | | 10,278 | | 9,684 | |
Deferred income taxes | | 3,716 | | 3,849 | |
Liabilities held for sale | | 4,897 | | 5,021 | |
Total liabilities | | 500,640 | | 350,843 | |
| | | | | |
Minority interest | | 303 | | 5,380 | |
| | | | | |
Shareholders' equity: | | | | | |
Common stock | | — | | — | |
Paid-in capital | | 60,142 | | 58,985 | |
Retained earnings | | 60,854 | | 64,046 | |
Accumulated other comprehensive loss | | (47 | ) | (47 | ) |
Total shareholders' equity | | 120,949 | | 122,984 | |
Total liabilities and shareholders' equity | | $ | 621,892 | | $ | 479,207 | |
| | | | | | | | |
8
