Mohegan Tribal Gaming Authority Announces Intention To Refinance Bank Credit Facilities

UNCASVILLE, Conn., Sept. 19, 2016/PRNewswire/The Mohegan Tribal Gaming Authority, or the Authority, the owner of Mohegan Sun in Uncasville, Connecticut, and Mohegan Sun Pocono in Wilkes-Barre, Pennsylvania, announced today that it has engaged Citizens Bank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey, Inc., Goldman Sachs Bank (USA), KeyBank National Association and CIT Bank, N.A. to arrange $1,400 millionin new senior secured credit facilities, comprised of a senior secured revolving credit facility, a senior secured term loan A facility, and a senior secured term loan B facility (collectively, the "new senior secured credit facilities").  The closing of the new senior secured credit facilities is subject to obtaining lender commitments, as well as market and other conditions.  The Authority intends to use the net proceeds of the new senior secured credit facilities to repay and terminate or otherwise retire certain of its existing indebtedness, including its existing senior secured credit facilities for which Citizens Bank, N.A. serves as administrative agent.

About the Authority

The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 595-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania.

The Tribe's gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the 1,200-room luxury Sky Hotel Tower. Mohegan Sun Pocono operates in an approximately 400,000 square-foot facility, offering traditional slot machines and table games, live harness racing and simulcast and off-track wagering, a 238-room hotel, 20,000 square feet of meeting and convention space, several dining and retail options and a bus passenger lounge. More information about the Authority and its properties can be obtained by visiting www.mohegansun.com,www.mohegansunpocono.com or www.mtga.com.

Some information included in this press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  These statements can sometimes be identified by the use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect" or "intend" and similar expressions.  Such forward-looking information may involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority.  Information concerning potential factors that could affect the Authority's financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2015, as well as in the Authority's other reports and filings with the Securities and Exchange Commission.  Any forward-looking statements included in this press release are made only as of the date of this release.  The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

Contacts:
Robert J. Soper
Chief Executive Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

Mario C. Kontomerkos
Chief Financial Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

SOURCE Mohegan Tribal Gaming Authority

Related Links

http://www.mtga.com

http://www.prnewswire.com/news-releases/mohegan-tribal-gaming-authority-announces-intention-to-refinance-bank-credit-facilities-300330045.html

Pennsylvania: 24 Hours Alcohol? Huh? Budget shortfall opens door for more gambling and more failed fiscal policy

Budget shortfall opens door for more gambling

A gambler plays a slot machine at the Sands Casino Resort Bethlehem. A raft of new options could put casino-like gambling in towns across the state were introduced this week, including slot machines at satellite locations. (Emily Robson, MORNING CALL FILE PHOTO)

With Pennsylvania facing a $2.3 billion budget shortfall, some legislators think they have a proven method to help close it: more gambling.

That is, except one. Sands Casino Resort Bethlehem President Mark Juliano was the lone casino executive to denounce most of the proposed expansion, arguing it would only cannibalize the $3 billion-a-year industry the state has built with its 12 casinos.

The new proposals, if adopted, would represent a massive expansion of the state's gambling laws. One bill introduced Wednesday in the Senate would allow existing casinos, for onetime licensing fees of up to $10 million, to offer Internet gambling, open satellite locations with 250 slot machines and place slot machines at off-track betting facilities.

A separate bill in the House would make almost any tavern or restaurant with a liquor license eligible for up to five video gaming terminals, potentially putting slot-machine-like gambling in hundreds of locations statewide.

Another proposal would allow slot machines at international airports, including Lehigh Valley International.

All of it would be a mistake, Juliano testified this week before the Senate Committee on Community, Economic and Recreational Development.

"Today, proposals are being considered which will erode the successful progress we have made in Pennsylvania," Juliano said. "Approving Internet gambling, slots at OTB's and VGT's will only hurt the business that many in Harrisburg say they want to help."

But Juliano was largely alone in condemning most of the new gambling options. Though none of the casino executives wants video gambling in taverns, most supported Internet gambling statewide so long as the tax rate is low and it's controlled by existing casino operators. Some of the horse racing casinos also supported placing slot machines at off-track betting facilities.

"Penn National firmly believes that I-gaming is a vital tool to enable Pennsylvania's gaming industry to continue to evolve and protect what has been built here," said Eric Shippers Sr., an executive with Penn National Gaming Inc., which runs the Hollywood Casino in Grantville, Dauphin County. "The advent of intense competition in every direction, however, necessitates that the commonwealth and the industry do things differently."

Every casino, including the Sands, agreed on a few proposed concepts. They all want the ability to serve alcohol 24 hours a day, eliminating the current restriction that stops the flow between 2 and 7 a.m. And they agreed that tax credits should be offered to casinos willing to invest in development, such as a hotel, that would help draw patrons from out of state.

The flurry of new gambling proposals comes as legislators spar with Gov. Tom Wolf over his $33.8 billion budget that relies heavily on new or higher taxes on everything from cigarettes to personal income. Many of the gambling proposals have been rejected before but are back again because legislators see them as preferable to raising taxes.

The Senate bill would offer casinos a menu of new options they'd have to pay hefty licensing fees to get. For $5 million, they could serve alcohol non-stop. Another $5 million would enable some to place 250 slot machines in off-track betting facilities, and they'd even get a chance to open satellite slot facilities within 20 miles of their casinos. As many as two additional satellites could include 250 slot machines each, provided the casino pays a $5 million fee for each new facility.

For $10 million, casinos would be licensed to operate online gambling, in which state residents would play online through a casino website, so long as they initially registered their new account at the casino. The state would not only get all the licensing fees, but it would then be able to tax all the gambling created by the new offerings.

While options such as unending alcohol service are attractive to casinos, there's a real question about whether casinos are willing to pay those fees.

"Definitely, 24-hour alcohol service would be an enhancement for us," said Mike Bean, CEO at Mohegan Sun at Pocono Downs, near Wilkes-Barre. "But I'm not sure we'd be willing to pay a $5 million fee for it."

A separate House bill would allow taverns and restaurants with liquor licenses to buy an additional license to operate up to five video gaming terminals, which are not slot machines but offer similar gambling games.

Muhlenberg College political science professor Chris Borick said there's probably never been a better time to trot out a concept that failed before.

"The need for revenue is a powerful force," Borick said. "When the money is short, the move toward more gambling becomes much more likely."

Borick added that, in Harrisburg, it usually takes more than one viewing for a proposal to gain support. Internet gambling, for example, got little traction last year but appears to be picking up momentum now. However, video gaming terminals in taverns would appear to be where Internet gambling was years ago.

It might all come down to one thing: How desperate are legislators to avoid Wolf's proposed tax increases?


http://www.mcall.com/news/mc-pa-gambling-expansion-20150611-story.html

Bursting Bubbles? GO-GO DAYS of CASINO CAPITALISM Gone?

It was heady while it lastest.....if you IGNORED the COSTS!

PLEASE SUPPORT:

REPEAL THE CASINO DEAL

Casinos' slots revenues down in July
By Brian HallenbeckPublication: theday.com

Published August 15. 2014

Amount wagered at Foxwoods down 7 percent, at Mohegan Sun down 4.1 percent
Editor's note: This version reflects corrected slot "win" totals.

Declines in slot-machine revenues at Foxwoods Resort Casino and Mohegan Sun returned to single digits in July, figures the casinos released Friday show.

Foxwoods, which announced Thursday that it was in talks with senior lenders after failing to comply with “certain financial covenants,” reported keeping $44.3 million in slots “win” last month, an 8.9 percent decline over July 2013.


Mohegan Sun kept $52.6 million in July, 3.6 percent less than in the same month the previous year.
A month ago, Foxwoods and Mohegan Sun reported June slots-win declines of 13.1 and 10.3 percent, respectively.

Win is the amount of slots wagers the casino keeps after paying out prizes.

Foxwoods’ “handle” — the total amount wagered at its slots — fell 7.0 percent in July, while Mohegan Sun’s handle was down 4.1 percent.

“We’re focused on profitability,” Bobby Soper, Mohegan Sun’s president and chief executive officer, said. “We feel we’re using our marketing dollars wisely. Hopefully, some months of small declines and overall stabilization are ahead in the not-too-distant future.”

Soper said Mohegan Sun continues to monitor the mix of its slot machines and has made “no material changes on the gaming floor.”

The Connecticut casinos’ slot revenues have been eroding for the past seven years, wreaking havoc with their ability to meet their financial obligations.

In 2009, the Mashantucket Pequot Tribe, which owns Foxwoods, defaulted on debt of $2.3 billion, eventually reducing it to $1.7 billion in a restructuring process concluded in July 2013.

On Thursday, the casino announced that as of June 30, 2014, it was not in compliance with certain terms of the restructuring.

“That being the case, the Tribe and its financial and legal advisors have begun discussions with our lenders to address the situation,” the Mashantucket Pequot Tribal Council said in a notice distributed to tribal members.

The tribe has offered no details of its current financial predicament.

Late last month, the Mohegan Tribal Gaming Authority, which operates Mohegan Sun and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa., reported that as of June 30, 2014, it was in compliance with all of its financial covenants.

b.hallenbeck@theday.com
Twitter: @bjhallenbeck

Mohegan Sun

$52.60 million

Mohegan Sun ignores Gambling Market Saturation!

Mohegan Sun casino posts two-thirds 1Q profit drop

AP / January 30, 2014

 

UNCASVILLE, Conn. (AP) — The parent company of the Mohegan Sun casinos in Connecticut and Pennsylvania reported a 36 percent fall in first-quarter profit Thursday, blaming a drop in table game holds, the money brought to the table by players and held by the casino.

 

The Mohegan Tribal Gaming Authority also said its expenses climbed in the quarter that ended Dec. 31 as it unsuccessfully sought a casino license in Massachusetts and saw a drop in slot revenue due to the continuing weakness in the economy.

 

However, the tribal authority was cheered by a slight rise in slot wagering at its Connecticut casino, to $1.79 billion from $1.785 billion.

 

‘‘Our results for the quarter were mixed,’’ Chief Executive Mitchell Etess told investor analysts on a conference call.

 

In an interview, he discounted the reduced hold and said revenue is ‘‘flattening out’’ after sinking month after month due to the recession, the weak economic recovery and growing casino competition in the Northeast.

 

‘‘We’re feeling like this is a pretty good quarter,’’ Etess said.

 

Net income for the quarter was $33.3 million, down from $52.2 million in the same quarter last year. Revenue of $312.8 million was down about 4 percent from the first quarter of 2013.

 

Table game hold at Mohegan Sun decreased 3 percentage points, to 13.3 percent. The decline primarily reflected an ‘‘abnormally low hold within the high-end table game segment,’’ the tribal authority said. It was among the lowest holds since the Connecticut casino opened in 1996, executives said.

 

Non-gambling revenue increased, with food and beverage sales posting a 7 percent gain, hotel revenue up 3. 1 percent and retail and entertainment rising by nearly 11 percent.

 

At the Mohegan Sun at Pocono Downs in Pennsylvania, total slot gambling fell by nearly 8 percent.

In addition, the tribal authority reported $1.2 million in pre-opening costs and expenses related to the opening of its 238-room hotel at Pocono Downs in November and a decline in adjusted earnings before taxes and depreciation.

 

Mohegan Sun also blamed a ‘‘sluggish regional economic environment’’ in Pennsylvania for disappointing business.

 

The casino, which narrowly lost a vote in Palmer, Mass., to build a resort casino, announced Tuesday that it struck deals with seven surrounding communities as it pursues a $1.3 billion resort casino on land owned by Suffolk Downs in Revere, Mass.

 

http://www.boston.com/news/local/massachusetts/2014/01/30/mohegan-sun-casino-posts-two-thirds-profit-drop/utxdnavkxjX6QIuRXZicrL/story.html

 

 

Casinos see more market saturation on horizon

Casinos see more competition on horizon

By Denise Allabaugh (Staff Writer)

Published: December 15, 2013

 

Competition is heating up for area casinos. Just in 2013:

- New York voters approved opening as many as seven new casinos, including some potentially in the Catskill Mountains.

- New Jersey's legislators approved online gambling.
- Pennsylvania legislators approved allowing small games of chance at restaurants and bars.

The head of Mohegan Sun at Pocono Downs acknowledged the impact of the competition from potential New York casinos on their business is "concerning."

"The one thing we're paying attention to is where the casinos would be placed and how that would impact our market," said Mike Bean, president of the Plains Twp. casino. "There could be some impact. It depends on where they are placed."

As 12 casinos opened in Pennsylvania over the last seven years, that took away from New Jersey casinos' business.

Now, that could happen to Pennsylvania casinos, said Chris Jones, senior research analyst for the Telsey Advisory Group in New York City.

"Any regional competition is bad," Mr. Jones said. "Adjacent state casino development is, without a doubt, one of the biggest risks to regional gaming."

Online gaming, too, presents a challenge. New Jersey legalized online gaming, but it isn't legal anywhere yet in Pennsylvania.

Pennsylvania lawmakers are looking at online gaming, however, as a way to boost revenue as gambling dollars have been flat or declining.

Mr. Bean said he sees online gaming as something "that could be an opportunity for us, to the extent that it is limited to existing brick and mortar casinos."

"To the extent that it is offered outside of that, it would be a substantial concern to us," he said.

"From what I understand, it would be through brick and mortar casinos and we see there would be opportunity for us."

Mr. Jones said it may be a while before the impact from online gaming in New Jersey on Pennsylvania casinos is known. He said it will depend on how many people want to gamble online and whether or not that will reduce travel to Pennsylvania casinos.

Meanwhile, Gov. Tom Corbett signed a law last month allowing small games of chance, such as pull tab games, daily drawings and raffles, at restaurants and bars. It's the first major gambling expansion since table games were legalized at Pennsylvania casinos in 2009.

Mr. Jones said while small games of chance will cause some competition for casinos, he suspects they will have little impact on the table games business and the high dollar value customers at casinos.

"I think it's going to be the more casual low-spend kind of customer," Mr. Jones said.

Mr. Bean does not suspect small games of chance will have a significant impact on business at Mohegan Sun at Pocono Downs.

"It seems as though the impact would be more on lottery types of games, not the types of games casino players typically pay," he said.

Mr. Bean said Mohegan Sun's customers typically come for more reasons than its 82,000 square feet of gaming space - such as the $50 million hotel and convention center that recently opened, as well as entertainment, restaurants, bars, retail and horse racing. Wise Crackers Comedy Club also opened in the casino last month.

"Our opportunities lie in developing our property to be more of a destination," Mr. Bean said. "Particularly with slots revenue flattening, that indicates a certain level of market saturation. Any additional gambling of any type, added to what is already a saturated market, there is a risk of cannibalization of that market. Therefore, further positioning yourself as a destination is something that we would want to continue. We're going to continue to work on that."

John Culetsu, executive vice president and general manager of Mount Airy Casino Resort in Monroe County, declined to comment about how the casino would be impacted by new competition.

However, like Mohegan Sun at Pocono Downs, Mount Airy also has been investing in improvements to make it a destination, including a $5 million luxury indoor/outdoor project under way.


http://thetimes-tribune.com/news/business/casinos-see-more-competition-on-horizon-1.1601263

 

Mohegan Sun: 67.1% Plunge in Profits; Paul Burns: Jilted Lover

Palmer town leader has doubts about Mohegan Sun

Posted: Nov 19, 2013

By Bill Rapp

CBS 3 Springfield - WSHM

PALMER, MA (WSHM) -
Palmer Town Councilor Paul burns wants to know if Mohegan Sun was fully committed to his town.

On Tuesday, Burns said he had heard rumors that Mohegan Sun was talking to Suffolk Downs in the Boston area prior to the referendum vote in Palmer two weeks ago.

Voters in Palmer shot down Mohegan Sun's $1 billion proposal by just 93 votes on Nov. 5. There was a recount scheduled for Nov. 26. Mohegan Sun pushed for the recount because of reported concerns over a voting machine.

Burns said he had heard Mohegan Sun was talking with Suffolk Downs to possibly replace Caesars Entertainment.

Suffolk Downs dropped Caesars Entertainment three weeks before a scheduled vote over doubts the company would pass a state background check. The property straddles east Boston and Revere.

Voters in east Boston rejected a casino while residents in Revere passed the measure by an overwhelming margin.
In Massachusetts, casinos are only allowed to operate one venue in the state. Even if the recount in Palmer reverses the outcome, Mohegan Sun would have to choose one community.

Burns said he reached out to Mohegan Sun for a response but had not heard anything back. CBS 3 Springfield asked Mohegan Sun and Suffolk Downs for a comment, but neither would confirm the two were talking.

http://www.cbs3springfield.com/story/24014343/palmer-town-leader-has-doubts-about-mohegan-sun

Revenues, profits decline for Mohegans
By Brian Hallenbeck
Publication: theday.com

Published 11/20/2013
 

 Mohegan — Despite reporting overall declines in revenue and profit in the quarter that ended Sept. 30, Mohegan Tribal Gaming Authority executives said Wednesday that they were pleased with the results given the economic climate.

In a conference call with investors and gaming industry analysts, they also touted recent refinancing initiatives and last week’s opening of a new hotel at Mohegan Sun at Pocono Downs near Wilkes-Barre, Pa.

The authority operates Mohegan Sun in Uncasville as well as the Pennsylvania property.

Consolidated results for July, August and September — the fourth quarter of the authority’s fiscal year — show adjusted EBITDA, or earnings before interest, income taxes, depreciation and amortization, totaled $77.2 million, down 4.7 percent over the same quarter the previous year.
Net income, or profit, was $4.9 million, a 67.1 percent decrease from the fourth quarter of fiscal 2012.

http://www.theday.com/article/20131120/BIZ02/131129968/1047

Mohegan Sun casino posts plunge in 4Q profit

AP / November 20, 2013

 

UNCASVILLE, Conn. (AP) — The parent company of the Mohegan Sun casinos in Connecticut and Pennsylvania reported a two-thirds plunge in fourth-quarter profit Wednesday, citing a loss on debt exchange and higher expenses for its unsuccessful attempt to win voter approval for a proposed Massachusetts casino.

 

The tribal authority announced last month it’s refinancing $715 million in debt, allowing it to stretch out the due date of debt for five years.

 

http://www.boston.com/news/local/connecticut/2013/11/20/mohegan-sun-casino-posts-plunge-profit/paUkPnaZyjzFjve4MIJMLO/story.html

Valley Forge Fleecerino

At Valley Forge casino, a big jump in slot, table game revenue

MICHAEL BRYANT / Staff Photographer

The Valley Forge Casino (right) is attached to a Radisson Hotel and another that is called the Casino Tower, with a combined total of 485 rooms.

Suzette Parmley, Inquirer Staff Writer

Posted: Sunday, June 30, 2013, 1:09 AM

The Valley Forge Casino Resort - Pennsylvania's smallest gaming hall - had a problem: Would-be gamblers weren't making it to the slot machines and table games.

 "In the beginning, there was a lot of confusion over the $10 spend," said casino president and chief executive officer Mike Bowman. "Gamers just want to keep things simple." As one of two licensed Category 3 casino resorts in Pennsylvania, patrons at Valley Forge have to spend at least $10 at the property before being allowed to gamble. The spending can come at its seven restaurants, two bars, two hotels, and nightclub, or by attending a convention or banquet there. Or gamblers can hold a membership to gain entrance to the gaming floor. "About 65 percent of those we surveyed in the beginning said they were confused by the memberships and overall access to the casino," Bowman said.

So management changed marketing agencies, streamlined the packages, and in February introduced a "passport" card - a combined membership/player's card.

 It also stationed employees at the entrance to the casino, changed the signs, and clarified the rules on its website. The moves are paying off for the 15-month-old operation. Valley Forge's revenue from slot machines and table games in May increased nearly 43 percent to $8.7 million, compared with May 2012. It was the largest year-over-year increase among the state's 11 casinos. Valley Forge should be a model for the Lady Luck Casino at Nemacolin Woodlands Resort in Fayette County, which debuts Monday. It is the state's 12th casino and the other Category 3 operation with a $10 spend requirement. Last week, Bowman gave a tour of Valley Forge. It has two hotels: a Radisson and one called the Casino Tower, with a total 485 rooms. The Sands in Bethlehem is the only other Pennsylvania casino that added a hotel. Mohegan Sun at Pocono Downs will open one later this year. Valley Forge's immediate competitors - SugarHouse, Harrah's Philadelphia, and Parx - don't have hotels. Sands president Bob DeSalvio said opening a 302-room hotel two summers ago helped increase total casino revenue and attract table-game customers. The Sands was ranked No. 1 in table-games revenue in May, and second behind Parx in slots revenue. "Having a hotel helps create synergies to capture overnight visitation," said analyst Andrew Zarnett, of Deutsche Bank AG. With Valley Forge, "they really have their own geography . . . and don't have to compete head-to-head with other casinos."  Valley Forge has 600 slots and 50 table games, the maximum allowed. It does not offer poker, just blackjack, craps, roulette, and minibaccarat, and has monthly blackjack tournaments. "For being the smaller guy, we're forced to compete harder," Bowman said. "We're much better off than we were last year, but we're still looking to increase volume and gaming revenues."      [TRANSLATION: We're still looking to suck more discretionary income from the local economy.] Weddings and social events are up 25 percent from a year ago. The casino has beefed up its hotel packages and expanded entertainment events to include Cage Fury MMA fighting, boxing cards at what used to be called the Valley Forge Convention Center, and live comedy. It has 1,000 employees. Zarnett, the casino analyst, said Valley Forge "appeals to a customer that's within a certain driving distance and is able to capture day-trippers, overnight customers, and even convention-goers." "It's close. They treat you the same whether you're a penny slot player or a $25 table-game player," said Marion McKeeman, 75, of East Norriton, as she gambled Thursday at a quarter slot machine. Bowman said the second full year of operation would concentrate on increasing revenue. "We were the guinea pig. We were the first of its type in the country [with the $10 minimum spend]," he said. "But the concept is beginning to catch on, and we're certainly optimistic."

---

Read more at http://www.philly.com/philly/business/20130630_At_Valley_Forge_casino__a_big_jump_in_slot__table_game_revenue.html#CG7tgBIfLoAlEbqm.99

Mohegan Sun Declining Revenues

Mohegan Gaming quarter beats expectations
By Brian HallenbeckPublication: The Day

Published 05/03/2013

 

Bottom line sags a bit in bad weather quarter

Mohegan - Despite posting across-the-board revenue declines for the first three months of the year, the Mohegan Tribal Gaming Authority experienced "a really, really good quarter," according to the authority's chief executive officer.

Many expected the authority's quarterly results, released Thursday, to be far worse given the impact of February's horrific weather, Mitchell Etess said following a conference call with gaming-industry analysts.

"Everybody realizes that we're dealing with some extraordinary circumstances," he said, referring in particular to the Feb. 8 blizzard that devastated a weekend's business at Mohegan Sun in Uncasville.

"When you look at EBITDA (earnings before interest, income taxes, depreciation and amortization) not decreasing that much compared to how much net revenue decreased, that's a positive thing to the people who study gaming for a living."

While Mohegan Sun's net revenue of $252.7 million was down 7.5 percent over the same quarter in 2012, the casino's adjusted EBITDA of $70.1 million was only down 5.5 percent.

The authority, which operates the Uncasville casino and Mohegan Sun at Pocono Downs near Wilkes-Barre, Pa., touts adjusted EBITDA as the leading indicator of how efficiently it's operating.

Overall, the authority reported net revenue of $325.7 million for the quarter, a 7.3 percent decline over the same quarter in 2012. Gaming revenue of $291.4 million was down 7.8 percent and nongaming revenue of $55.2 million was down 4.3 percent.

Net income, or profit, of $14.1 million was down 6.8 percent.

Etess said during the conference call that business trends in March and April have been encouraging. He noted that Mohegan Sun's slot-machine revenue was down only 1 percent in March and said he expects a decline in April to be in the low single digits as well. Mohegan Sun's February slot revenue was down 18.6 percent. The authority estimated that unfavorable weather during the quarter cost Mohegan Sun $9.5 million in net revenue.

Bobby Soper, president and chief executive officer of Mohegan Sun, told analysts the casino had partially offset the declining revenues through cost savings associated with a workforce reduction last September and more efficient marketing. He said the casino had made changes in its Asian bus program, eliminating certain runs to New York and Boston.

On the corporate side, the authority spent $7.6 million during the quarter on professional and development-related expenses, some of it in connection with its pursuit of a casino license in Massachusetts, where it hopes to build and operate a destination resort in the town of Palmer.
The authority distributed $10 million to the Mohegan Tribe in the quarter and expects to distribute a total of $50 million to the tribe in the 2013 fiscal year, which ends Sept. 30.


http://www.theday.com/article/20130503/BIZ02/305039929/1044



 

Mohegan Sun profits down 68%

And just think what would happen if Mohegan Sun had to pay taxes!

The Gambling Market is SATURATED!

Mohegan Sun profits down 68% from 4th quarter of last year

Published: Thursday, November 29, 2012

 

By Joe Amarante, Register Staff

 

Mohegan Sun’s corporate parent on Thursday reported lower profit numbers for the fiscal fourth quarter ending Sept. 30, with officials on a conference call citing continuing economic weakness in New England as the chief reason.

Net income attributable to the Mohegan Tribal Gaming Authority was down 68.3 percent from the fourth quarter of fiscal 2011, at $14.8 million.

The Authority owns and operates the Mohegan Sun in Uncasville and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa.

Bruce “Two Dogs” Bozsum, chairman of the Tribal Council of the Mohegan Tribe, said while results are less than he’d like, he’s “certainly not surprised” and attributes them to a continued weakness in discretionary spending.

 

He noted that former Mohegan Sun offical Robert J. “Bobby” Soper, who had been CEO of Mohegan Sun at Pocono Downs, recently returned to Mohegan Sun as CEO (replacing Jeffrey Hartmann). Soper said he’s still getting settled but mentioned opportunities for cost savings and marketing and that some real estate at Mohegan was “underutilized.”

MTGA CEO Mitchell Grossinger Etess said that Mohegan continues to take “significant actions” to control costs, referring to the recent 330 job cuts in Connecticut that are part of moves to save $20 million in labor and operating costs in fiscal 2013.

Officials also noted published reports about median annual household income being down in Connecticut and that while new slots competition at the likes of Aqueduct Raceway continues to cut into Mohegan’s business from New York players, there is also a drop in business from northern Connecticut and Massachusetts players due to the anemic economy.

The MTGA reported income from operations was down 24.6 percent and gaming revenues were down almost 7 percent from a year ago, but hotel business was up 10.8 percent and officials are continuing talks with developers to add another hotel on the Connecticut property despite the Authority’s $1 billion-plus debt, possibly breaking ground within three to six months on that project.

Another measure of the drop in gambling revenue at Mohegan Sun was that adjusted earnings before interest, taxes, depreciation, and amortization — or cash flow — fell 10.5 percent from 2011 to $81 million.

Officials continued to express confidence in Mohegan’s bid to win one of three new casino licenses in Massachusetts, for a site in Palmer, Mass., but the doors would not open before sometime in 2016.  

 

Finally, in response to a question, a top official said the MTGA had entered into a partnership with Bally’s for a “back-end system” of free-play online poker in Connecticut to put the operation in position to be ready for the legalization of online gambling in the state.

 

 

http://nhregister.com/articles/2012/11/29/news/doc50b78cbab442f445986712.txt?viewmode=default

Mohegan Sun Profits Down 2/3 From 2011

Mohegan Sun Profits Fall Sharply In Fourth Quarter
November 29, 2012|By BRIAN DOWLING, bdowling@courant.com,
The Hartford Courant

The parent company of Mohegan Sun reported on Thursday that the Connecticut casino's operating profits dropped 29 percent in the fourth quarter, with more than half of the decline due to $12.5 million in severence paid to a group of 300 employees laid off in September.

That one-time cost aside, the casino also saw broad declines in both gaming and non-gaming revenues.

Mohegan Sun earned $50.9 million from operations in the three months ending Sept. 30, down from $71.7 million in the same period in 2011. For the full fiscal year that ended on the same date, the casino in Connecticut earned $199.4 million from operations, down from $223.8 million.

Including all expenses, the Mohegan Sun Tribal Gaming Authority, which includes the Mohegan Sun casino, Mohegan Sun at Pocono Downs in Pennsylvania, and other corporate activity, earned a net $14.8 million in the recent quarter, down two-thirds from $46.7 million in the same quarter in 2011. In addition to the severance costs, the authority faced lower gaming revenues and sharply higher interest expenses as it refinanced $1 billion in debt

The downward trend in revenues is mainly due to a crowding of the Northeast gaming market and weak discretionary spending, said Mitchell Grossinger Etess, chief executive of Mohegan Sun Tribal Authority, citing a continuing trend.

Revenues from slots and table games at the Mohegan Sun casino were down over 8 percent from last year to $239 million. The drop was in part due to a change in the mix of slot machines on the gaming floor, as part of an effort to improve profitbaility, the casino said. Sales at the casino's restaurants, bars, arena events and retail establishments were also down.

Slot revenues for Mohegan Sun, of which Connecticut's general fund gets 25%, were down 8.3% to $171 million in the last quarter of 2012, compared with the same quarter last year.

Hotel business was the one division to fight the trend, posting a near 11 percent increase, which the casino said was due to an occupancy shift to more high paying, transient guests, which increased average daily room rates. The casino had a 97.2 percent occupancy rate, down very slightly from the year before, but the average daily rate was $92, up from $83.

The September layoffs were described by company officials as the lion's share of a cost-savings effort projected to yield $20 million in the 2013 fiscal year. Other paths to cost savings include having more leased slot games and fewer Mohegan-operated restaurants.

Etess said that he expects customers who have left Mohegan properties for Aqueduct in New York to return, but added that "it's economic factors that are affecting revenues more than anything."

For the full fiscal year ending Sept. 30, the authority earned a net $63.3 million, compared with $114 million in fiscal 2011, as gaming revenues fell 2.7 percent to $1.25 billion, while interest expenses and refinancing costs made most of the difference.


http://articles.courant.com/2012-11-29/business/hc-mohegan-sun-earnings-4q12-20121129_1_slot-revenues-sun-at-pocono-downs-mohegan-sun

Ignoring the Truth

Mohegan Sun casino layoffs in Connecticut get mixed reaction in Palmer

Published: Friday, September 28, 2012

By Lori Stabile, The RepublicanThe Republican

Associated Press file | Jessica Hill

The Mohegan Sun casino is seen earlier this year in Uncasville, Conn. The casino is laying off more than 300 employees and replacing its CEO, the Mohegan Tribal Gaming Authority's chief executive said Thursday.

PALMER News that Mohegan Sun casino laid off more than 300 employees and replaced its chief executive officer doesn't worry some proponents of the Connecticut-based company's plan to build a resort casino here.

But others are questioning whether or not Mohegan, which has long wanted to build a casino off Thorndike Street (Route 32), has the financial means to make the project happen, and if this is a sign that the market already is saturated with too many casinos.

Town Council President Philip J. Hebert said he was called personally by Paul I. Brody, Mohegan's vice president of development, about the layoffs.

Hebert said he's not sure what to think of the news, but wondered if there are already too many casinos for any of them to be prosperous.

"Has the industry become too saturated?" Hebert questioned.

Brody said the Connecticut casino is facing competition from the new Resorts World Casino at the Aqueduct racetrack in New York City, but he said what is happening in Connecticut has no impact, and no relevance, on the company's plans for Palmer.

"It's really a very different set of circumstances," Brody said.

The downsizing will help match the volume of business in Connecticut, he said.


Stephen Norton, a gaming consultant from Illinois and a director of the company leasing land in Palmer to the Mohegan Sun, also said the layoffs are separate from the company's casino plans for Palmer.

"That's good management -- bringing employment in line with supply and demand," Norton said of the layoffs. [Since Mr. Norton has had his share of bankruptcies, he should know.]

Mohegan is one of several casino operators competing for the sole Western Massachusetts casino license. Under the state gaming law approved in November 2011, three casino licenses and one slot parlor license will be awarded. The state gaming Commission, which is overseeing the process, has announced a draft master schedule that calls for granting a license for a casino or a slots parlor by February 2014.

"I think they are still viable, assuming they find the right financial partner," At-large Town Councilor Paul E. Burns said.

Brody said they are still working on identifying a financial partner.

Both Norton and Iris L. Cardin, co-chair of Quaboag Valley Against Casinos, said they are concerned that Mohegan has yet to announce a financial partner for Palmer.

Cardin said "it's looking bad" for Mohegan.

"They need to just cut and run and leave us alone," Cardin said.

Burns, a casino proponent, said it would show Mohegan's commitment and truly show evidence of its viability if the $400,000 gaming application fee was paid. One competitor for the Western Massachusetts license - MGM Resorts International, which has a proposal for Springfield's south end - has paid the fee.

Brody said they still plan to pay the fee when the application is submitted, which may be as soon as December.

Town Manager Charles T. Blanchard said Mohegan has indicated its commitment to the town, and its desire to expand to the Massachusetts market. Blanchard said studies are ongoing to evaluate a casino's impacts on traffic the town. This week, consultants interviewed department heads about fiscal issues.

Wonder if they made available the Citizens' Casino Study Report indicating the cost to host Mohegan Sun would be $18 MILLION to $39 MILLION annually, not including the $50 MILLION to bring water from the Quabbin.

Said District 4 Town Councilor Donald Blais Jr. about Mohegan, "I'm not too worried . . . I think they'll be alright."

Jennifer L. Baruffaldi, a spokeswoman for the pro-casino group, Citizens for Jobs & Growth in Palmer, said she remains positive about the Palmer project. She said Mohegan has the same struggles as other casino operators.  [Ms. Baruffaldi is a very pleasant person lacking education in financial reporting. Because Mohegan Sun's debt is publicly traded, their SEC filings are available online for review.]

Edward S. Harrison, chairman of the Western Massachusetts Casino Task Force, a neutral group, questioned if bringing casinos to Massachusetts makes sense if the casino industry is having difficulty.

"Is it really going to be profitable?" Harrison said.

Harrison asked what will happen if the casinos are built, then the companies resort to layoffs.

Mitchell G. Etess, the chief executive of the Mohegan Tribal Gaming Authority, told The Day of New London that the layoffs affect workers in nearly every department and job level. About 8,000 employees remain. Etess blamed the layoffs on the weak economy and competition from the New York City casino.

“You have to put this in the context of the amazing decline in business we’ve experienced,” Etess told The Day.

James Ferrerra III, Springfield City Council president, said the layoffs do not surprise him.
"Casino companies are not immune to the economic climate out there," Ferrerra said.

Etess told The Day of New London that Jeffrey Hartmann will be replaced by Bobby Soper, chief executive officer of Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa. Hartman, a Mohegan Sun executive since 1996, was the casino’s chief executive officer since 2011.

Staff writer Dan Ring contributed to this report.


http://www.masslive.com/news/index.ssf/2012/09/reaction_to_mohegan_sun_layoff.html

Palmer Casino Backers React to Mohegan Layoffs

New England Public Radio News
Date: 09/28/2012
Contributor: Fred Bever
Dateline: Springfield

That comes after the company's refinancing of some billion dollars in debt - while observers say the company has been close to bankruptcy.

"I think one of the concerns with the layoff is that it may raise the question in some people's minds about just how financially viable they are," said Paul Burns, president of the Palmer Town council, and an advocate for the proposed casino.  

[Does anyone wonder if it's ethical for an elected official to be a prime cheerleader. ignoring the financial insolvency of a proposed developer? and the gambling market saturation?]

http://www.nepr.net/news/palmer-casino-backers-react-mohegan-layoffs

Mohegan Sun Layoffs, Palmer Reacts


 

September 28th, 2012

 

http://www.wggb.com/2012/09/28/mohegan-sun-layoffs-palmer-reacts/

Check MGM's history, connections to organized crime and financial solvency HERE.
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