NYRA: '07 losses total $34.28 million

The New York Racing Association reported a net loss before reorganization items related to bankruptcy and a one-time income tax settlement of $17.86 million for the year ending 2007 compared to a net loss of $16.02 million for 2006, an increase in net loss of $1.84 million or 11.5 percent.

Two major fiscal year 2007 expenses will not carry over into the new franchise once NYRA emerges from bankruptcy -- interest on its Debtor-in-Possession (DIP) and Capital Improvement Fund loans totaling $4.48 million, an increase of 55.6 percent over $2.88 million in 2006, and real estate taxes totaling $17.07 million, an increase of 13.3 percent over $15.07 million in 2006.

One-time fiscal year 2007 expenses included reorganization items totaling $7.09 million and an income tax settlement of $9.33 million, reduced from an initial $1.6 billion IRS assessment, which brought NYRA’s total net loss for 2007 to $34.28 million compared to $17.83 million in 2006.

“Despite showing a significant deficit again this year, we are optimistic that in 2009 we will turn an operating profit for the first time since 2001,” said NYRA President and CEO Charles Hayward. “NYRA faces significant challenges in maintaining and improving our facilities and operations due to the lack of resources over the last decade, and will continue to be cash constrained until distribution of VLT revenues begins. With anticipated growth in simulcasting and sponsorship revenue, and rigorous expense management throughout the organization, NYRA can return to profitability in 2009, our first full year out of bankruptcy and operating under the new 25-year franchise.”

The financial statement was independently audited by UHY LLP, Certified Public Accountants of Albany and has been filed with the New York State Racing and Wagering Board.