As Losses Increase, Magna Considers Selling Core Operations
After another quarter of "significant income losses," Magna Entertainment Corp. (MEC) "continues to consider selling or moving into a joint venture on one or more of its core operations," according to Frank Angst of the THOROUGHBRED TIMES. MEC Thursday reported a Q3 net income loss of $48.4M, while its "yearly losses moved into nine figures at" $116.1M. The company's Q3 loss is "about even with last year when it lost" $49.8M for the three months ending September 30. But its yearly loss is "way up versus last year when it lost" $70.8M for the first nine months of '07. MEC "has hired Miller Buckfire and Company as its financial adviser and investment banker to evaluate various strategic alternatives." MEC has "not carried out its previously announced debt reduction plan to sell Remington Park, Thistledown, and/or Portland Meadows." MEC Chair Frank Stronach "blamed the poor economy on slowing that plan and said the company would consider sales or partial sales of core operations such as the Maryland Jockey Club, Santa Anita Park, and/or Gulfstream Park." In Q3, MEC "did manage to increase revenue by less than 1% to" $81.6M, but revenue for the year is down 4.8% to $478.8M (THOROUGHBREDTIMES.com, 11/6). BLOODHORSE.com reported MEC "additionally has lost $306.5[M] the last three years, and is struggling with a capital deficiency of $195.4[M] and a debt-load of $255.4[M] that was due to mature at the end of the quarter" (BLOODHORSE.com, 11/6).
|
