Magna Entertainment Corp.

Financial Main Page | IGHRM Main Page
Disclaimer:

International Guild of Hospitality & Restaurant Managers

Magna Entertainment Corp. (NasdaqNM:MIEC)

337 Magna Drive
Aurora, ON L4G 7, Canada

Phone: (905) 726-2462
Fax: (905) 726-4461
Email: mecinvestors@magna.on.ca
Employees (last reported count): 4,300

Magna Entertainment Corp., incorporated on March 4, 1999 , is an owner and operator of thoroughbred racetracks, and a supplier, via simulcasting, of live racing content to the inter-track, off-track and account wagering markets. The Company operates eight thoroughbred racetracks, one standardbred racetrack and one greyhound racetrack, as well as the simulcast wagering venues at these tracks. In addition, the Company operates off-track betting (OTB) facilities and a national account wagering business, known as XpressBet, which permits customers to place wagers by telephone and over the Internet on horse races at up to 65 racetracks in North America . The Company also has a one-third ownership interest in Racetrack Television Network, LLC, a venture formed to telecast races from its racetracks and other racetracks, via satellite, to paying subscribers.

In conjunction with its racetrack operations, the Company owns and operates a horse boarding and training center located approximately 45 miles north of San Diego and approximately 90 miles southeast of Santa Anita Park. The Company is developing another such facility in Palm Beach County , Florida , approximately 40 miles north of Gulfstream Park .

The Company's racetracks are geographically diversified. Santa Anita Park is near Los Angeles , Gulfstream Park is near Miami , Golden Gate Fields and Bay Meadows are near San Francisco , The Meadows is near Pittsburgh , Thistledown is near Cleveland , Remington Park is in Oklahoma City , Great Lakes Downs is in Muskegon , Michigan , and Portland Meadows and Multnomah Greyhound Park are in or near Portland , Oregon .

Santa Anita Park's facilities include a large art deco-style grandstand structure with seating for approximately 19,000 customers. The facilities also include standing room for additional customers, a one-mile oval dirt track and 7/8-mile turf course, stalls for approximately 2,000 horses and parking facilities sufficient to accommodate approximately 20,000 cars.

Gulfstream Park 's facilities include a grandstand with permanent seating for approximately 8,700 customers. The facilities also include a clubhouse with seating for an additional 5,800 customers, a one-mile main track and 7/8-mile turf track, stalls for approximately 1,390 horses and parking for approximately 14,000 cars.

Golden Gate Fields' facilities include a one-mile main track and 9/10-mile turf course, stalls for over 1,400 horses and a main grandstand with seating for approximately 8,000 customers. The facilities also include a clubhouse with seating for approximately 5,250 customers, a turf club with seating for approximately 1,150 customers and parking for over 8,500 cars.

The facilities at Bay Meadows include a grandstand with seating for approximately 8,000 customers (including the clubhouse and turf club), a one-mile oval track with one-mile and 3/4-mile chutes, a 7/8-mile turf course and stalls for approximately 900 horses with auxiliary stabling available at Golden Gate Fields for 900 additional horses. The Bay Meadows property is operated under a lease that expires on December 31, 2002 , and the final date of any horse-racing meet in progress on December 31, 2002 , but in no event later than March 31, 2003 .

Thistledown's facilities include a grandstand with seating for approximately 8,000 customers and a luxury suite for corporate and group events. The facilities also include a one-mile oval track, stalls for approximately 1,500 horses and parking for approximately 6,000 cars.

Remington Park 's facilities include a grandstand with seating for approximately 20,000 customers, 21 luxury suites for corporate and group events, a one-mile dirt track and 7/8-mile turf course and stalls for approximately 1,300 horses. The facilities also include recently installed lighting to permit night racing and parking facilities sufficient to accommodate approximately 8,000 cars.

Great Lakes Downs' facilities include a grandstand with seating for approximately 10,000 customers and a 5/8-mile dirt track. The facilities also include stalls for approximately 800 horses and parking facilities sufficient to accommodate approximately 3,200 cars.

The Company acquired The Meadows racetrack, a standardbred (harness racing) track, through the acquisition of Ladbroke Racing Pennsylvania, Inc. (renamed MEC Pennsylvania Racing, Inc.) in April 2001. The Meadows' facilities include a grandstand with seating for approximately 5,000 customers, a 5/8-mile harness track, stalls for approximately 990 horses and parking facilities to accommodate approximately 3,000 cars. The four OTB facilities acquired with The Meadows each contain a restaurant and bar, and offer wagering on simulcast races from racetracks across the United States .

In the second quarter of 2001, the Company entered into a definitive agreement to lease and operate, for up to four years, Portland Meadows thoroughbred racetrack. Portland Meadows' facilities include a grandstand with seating for approximately 10,000 customers, a one-mile thoroughbred track, stalls for approximately 850 horses and parking facilities to accommodate approximately 2,500 cars.

The Company acquired Multnomah Greyhound Park in October 2001, and entered into a lease for the underlying real estate for a period of up to five years. Multnomah Greyhound Park 's facilities include a grandstand with seating for approximately 6,000 customers, a 1/4-mile greyhound track and parking facilities to accommodate approximately 1,200 cars.

San Luis Rey Downs is located on approximately 200 acres of land and includes over 500 horse stalls, a one-mile oval dirt main track and 3/8-mile dirt training track, an equine exercise pool and related facilities and equipment. Due to its proximity to Santa Anita Park, San Luis Rey Downs supplements Santa Anita Park's stabling facilities.

On October 18, 2000 , the Company acquired 481 acres of land in Palm Beach County , Florida . The property is located approximately 40 miles north of Gulfstream Park . The Company is developing a horse boarding and training center on this land to be operated in conjunction with Gulfstream Park .

In 2001, the Company acquired the Call-A-Bet (renamed XpressBet) telephone account wagering operation as part of its acquisition of Ladbroke Racing Pennsylvania, Inc. Customers of XpressBet may give wagering instructions on horse races offered at the Company's racetracks and at various racetracks that have entered into agreements with the Company.

On January 18, 2002 , the Company introduced a new online wagering platform, www.xpressbet.com. On January 25, 2002 , the Company announced that its wholly owned subsidiary operating XpressBet's California wagering hub had been granted a license to conduct account wagering in the State of California by the California Horse Racing Board.

The Company has commenced the first step in its television distribution plans through its participation in the Racing Television Network, LLC (RTN). RTN is jointly owned by Roberts Communications Network, Inc., Greenwood Racing, Inc. and the Company. It is a direct-to-home satellite service that offers eight channels dedicated to horse racing on a monthly subscription basis.

The Company main competitor is Churchill Downs Inc.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

IGHRM Main Page