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Article Excerpt
UNCASVILLE, Conn., Jan. 31 /PRNewswire-FirstCall/ -- 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...
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