|25 Feb 2004 18:44:22|
|For you Magna Haters....|
Magna Entertainment posts $103.16-million fourth-quarter loss
Magna Entertainment Corp.’s financial woes continued as it lost $105,097,000
during the year ended on December 31, 2003, including a loss of $103,161,000
during the fourth quarter.
The company’s net loss was $14,395,000 for 2002 and $24,350,000 during the
fourth quarter of 2002.
"Despite encountering numerous challenges during 2003, Magna made significant
strides toward our goal of creating a global entertainment company built around
horse racing," Magna Entertainment President Jim McAlpine said.
"As announced on October 30, we have developed a multipart action plan aimed at
improving our future financial results," McAlpine said. "We initiated this
action plan during the fourth quarter and took specific steps to reduce
expenses by $5-million on an annualized basis. While we will realize those
savings in 2004, the severance and other costs necessary to achieve them
burdened the results of our fourth quarter."
A number of Magna executives and managers departed the company in the last half
of 2003 including Chief Operating Officer Roman Doroniuk and Vice Presidents
John Perotta, Andrew Gaughn, and Ted Mudge. The company also wrote down
$82-million in assets during the fourth quarter.
Revenues for the fourth quarter increased 36.8% to $146.08-million while
year-end revenues were up 29.1% to $708.94-million.
Magna also reported an increase in gross wagering, from $81.64-million in the
fourth quarter of 2002 to $101.86-million during the same period in ‘03, an
increase of 24.8%. Year-end handle had a similar increase of 24.7%, from
$450.73-million in 2002 to $561.93-million in ‘03.
McAlpine specifically singled out Bay Meadows Race Course, the Meadows
Standardbred facility near Pittsburgh, its Oregon operations, and HorseRacingTV
as assets that performed poorly compared to the previous year’s figures. On
the positive side, XpressBet, Santa Anita Park, Palm Meadows training center,
Thistledown, and Flamboro performed better than the previous year.
"XpressBet is now solidly profitable," McAlpine said. "We are reinvesting those
profits in HRTV to help that operation perform better."
Magna stock closed at $4.85 per share on Tuesday afternoon, down 1.4% from the
previous day’s closing price of $4.92.—Ed DeRosa
|26 Feb 2004 03:16:15|
|Re: For you Magna Haters....|
No wonder you can't find food that's not popcorn, or programs for half the
offered tracks, at the Meadows OTBs.
> Magna Entertainment posts $103.16-million fourth-quarter loss