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Mohegans to restate financial results for several quarters

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UNCASVILLE, Conn. ? The Mohegan Tribal Gaming Authority, operator of the Mohegan Sun gaming and entertainment complex, announced on Aug. 19 that it will restate its finances for several recent fiscal quarters.

In a press release, MTGA said that while preparing its quarterly report for the three months ended June 30, it "reviewed its capitalized interest calculation for the major expansion of Mohegan Sun ... and determined that capitalized interest for this project was understated and interest expense was overstated, for the fiscal year ended Sept. 30, 2001, and capitalized interest was overstated, and interest expense was understated, for the nine months ended June 30, 2002."

The authority filed its report (Form 10-Q) for the quarter ended June 30 with the Securities and Exchange Commission on Aug. 19; the report contains revised financial information not included in MTGA's July 26 press release.

MTGA intends to "restate its financial statements for the quarterly periods ended Dec. 31, 2000, March 31, 2001, June 30, 2001, Dec. 31, 2001 and March 31, 2002, and for the fiscal year ended Sept. 30, 2001, to reflect the anticipated corrections to capitalized interest and interest expense during these periods," according to the Aug. 19 press release. Numbers will be released when an independent auditor finishes its review.

The restatements increase MTGA's net income by $13.2 million for the fiscal year ended Sept. 30, 2001 and to reduce its net income by $8.4 million for the nine months ended June 30, 2002.

MTGA said that the restatements "are non-cash adjustments that do not affect EBITDA [earnings before interest taxes depreciation and amortization] or adjusted EBITDA and thus have no impact on leverage or fixed-charge calculations" pertaining to its $400-million credit facility, nor on several series of Senior Notes and Senior Subordinated Notes the authority currently has outstanding.

"In addition, the Authority also has reclassified certain other costs, expenses, and balances in the financial statements," MTGA said it the Aug. 19 press release. "However, these reclassifications have no effect on the authority's net income."