Magna Entertainment Corporation, the Canadian owner and operator of racetracks and a leading supplier via simulcasting of live content, has reported its financial results for the third quarter of 2008.
It revealed revenues rose marginally to $81.577 million from the same period last year but reported a loss in earnings before tax of $20.357 million. In addition, it stated that its net incomes from continuing operations were $50.582 million in the red while it lost $2.223 million from discontinued operations such as Remington Park in Oklahoma and Thistledown in Ohio. In total, the Ontario firm reported a net loss of $48.359, which was slightly improved over last year’s $49.811 million.
Magna stated that it had engaged Miller Buckfire and Company as its financial advisor and investment banker in order to review and evaluate various strategic alternatives including additional asset sales along with financing and balance sheet restructuring opportunities. Miller Buckfire will also assist the Aurora-based firm in identifying, managing and executing its asset sales programme and possible joint venture transactions.
“Although Magna has a strong asset base, we remain burdened with far too much debt and interest expense,” said Frank Stronach, Chairman and Chief Executive Officer for Magna.
“Our previously announced debt elimination plan has been negatively affected by the weak real estate and credit markets, which have impacted our ability to sell non-core assets. As a result, we are evaluating Magna's core operations with a view to possibly selling or joint venturing one or more of Magna's core racetracks in order to strengthen Magna's balance sheet and liquidity position. “Although the weak economy will continue to present challenges in the near-term, we are very conscious of the fact that we must significantly improve our operating results.'