AURORA, Ont. — Financially troubled Magna Entertainment Corp., North America's largest owner and operator of horse racetracks, says its fourth-quarter loss widened to $43-million (U.S.) from a year-earlier $12.5-million.
The firm reiterated that crushing debt puts its future in doubt.
The diluted loss per share for the quarter ended Dec. 31 was 38 cents, compared with 12 cents per share a year ago, the Aurora-based company reported Friday.
Revenues increased to $117.3-million from $102.6-million. The firm reports in U.S. dollars.
“The company's ability to continue as a going concern is in substantial doubt and is dependent on the company generating cash flows that are adequate to sustain the operations of the business, renewing or extending current financing arrangements and meeting its obligations with respect to secured and unsecured creditors, none of which is assured,” the company said in a release, repeating earlier warnings.
“We remain firmly committed to implementing our debt elimination plan, although the weak U.S. real estate and credit markets have adversely impacted our progress to date on asset sales,” Frank Stronach, MEC's chairman and interim CEO, said in a release.
The full-year loss grew to $113.8-million or $1.04 per share from $87.4-million or 81 cents per share in 2006.
Discontinued operations for 2007 and 2006 include the racetrack operations of Remington Park in Oklahoma, Thistledown in Ohio, Portland Meadows in Oregon and Great Lakes Downs in Michigan.
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