UNCASVILLE, Connecticut -- (PRESS RELEASE) -- The Mohegan Tribal Gaming Authority, or the Authority, the owner and operator of Mohegan Sun in Uncasville, Connecticut, and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pennsylvania, announced today the operating results for its fourth quarter ended September 30, 2012.
“Our operating results for the quarter reflect a continuation of recent trends in revenues,” said Mitchell Grossinger Etess, Chief Executive Officer of the Authority. “In response, we continue to be prudent in our marketing approach in order to optimize revenues and profitability and, in late September 2012, we began implementation of further cost saving initiatives at Mohegan Sun in order to align our operations with market conditions. We remain pleased with the performance of Mohegan Sun at Pocono Downs and the progress of Mohegan Gaming Advisors, including its recent management deal with Resorts Casino Hotel in Atlantic City.”
Consolidated operating results and significant events for the fourth quarter ended September 30, 2012 (unaudited):
Net revenues of $351.8 million, a 5.8% decrease from the fourth quarter of fiscal 2011
Gaming revenues of $313.8 million, a 6.9% decrease from the fourth quarter of fiscal 2011
Gross slot revenues of $230.2 million, a 6.7% decrease from the fourth quarter of fiscal 2011
Table game revenues of $81.2 million, a 7.3% decrease from the fourth quarter of fiscal 2011
Non-gaming revenues of $63.3 million, a 5.6% decrease from the fourth quarter of fiscal 2011
Adjusted EBITDA, a non-GAAP measure described below, of $81.0 million, a 10.5% decrease from the fourth quarter of fiscal 2011
Income from operations of $58.1 million, a 24.6% decrease from the fourth quarter of fiscal 2011
Net income attributable to the Authority of $14.8 million, a 68.3% decrease from the fourth quarter of fiscal 2011
Successfully secured financing and broke ground on Project Sunlight, a hotel and convention center expansion at Mohegan Sun at Pocono Downs
Implemented a series of cost saving initiatives at Mohegan Sun in Uncasville, Connecticut, which are forecasted to yield at least $20 million in labor and operating cost savings in fiscal 2013
The decline in Adjusted EBITDA was primarily attributable to lower gaming revenues at Mohegan Sun reflecting additional gaming capacity in the Northeast gaming market and a sluggish regional economic environment. These results offset overall changes in our operations designed to improve profitability. The decrease in income from operations primarily reflects $12.5 million in severance charges resulting from a workforce reduction initiative implemented in September 2012, combined with the decline in gaming revenues. The decline in net income attributable to the Authority primarily resulted from the reduction in income from operations, as well as higher interest expense, driven by our March 6, 2012 refinancing transactions.
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