MI DEVELOPMENTS ANNOUNCES 2010 RESTATED THIRD QUARTER RESULTS
December 14 2010 - 5:22PM
PR Newswire (Canada)
AURORA, ON, Dec. 14 /CNW/ -- AURORA, ON, Dec. 14 /CNW/ - MI
Developments Inc. (TSX: MIM.A, MIM.B; NYSE: MIM) ("MID" or the
"Company") today announced its restated results for the three and
nine-month periods ended September 30, 2010.
Subsequent to the issuance of the unaudited interim consolidated
financial statements for the three and nine-month periods ended
September 30, 2010 on November 11, 2010, an error was identified
that affected the Company's reported results for the three-month
period ended September 30, 2010. The restatement did not have
any effect on the net income reported for the year to date
September 30, 2010 and the financial position and liquidity of the
Company were not impacted. In the three-month period ended
September 30, 2010, the Company recorded an impairment recovery
relating to loans receivable from Magna Entertainment Corp. ("MEC")
of $18.7 million. The $18.7 million should have been
retrospectively applied to the three-month period ended June 30,
2010 when the Transferred Assets(1) were first recorded as an
adjustment to the purchase price consideration and related
allocation to the assets transferred. As a consequence of the
error being identified, the unaudited interim consolidated
financial statements for the three and nine-month periods ended
September 30, 2010 have been restated from amounts previously
reported. Net income of $35.0 million for the nine-month
period ended September 30, 2010 was not revised as a result of the
restatement. However, the net loss for the three-month period
ended September 30, 2010 was $10.5 million in comparison to net
income of $8.2 million previously reported. The detailed
description of the restatement and the impact on the unaudited
interim consolidated financial statements for the three and
nine-month periods ended September 30, 2010 are described in note 2
to the restated unaudited interim consolidated financial
statements. The restated third quarter results can be
accessed via the instructions contained below under "Other
Information". ABOUT MID MID is a real estate operating
company engaged primarily in the acquisition, development,
construction, leasing, management and ownership of a predominantly
industrial rental portfolio leased primarily to Magna International
Inc. and its automotive operating units in North America and
Europe. MID also acquires land that it intends to develop for
mixed-use and residential projects. Additionally, MID owns Santa
Anita Park, Golden Gate Fields, Gulfstream Park (including an
interest in The Village at Gulfstream Park™, a joint venture with
Forest City Enterprises, Inc.), an interest in joint ventures in
The Maryland Jockey Club with Penn National Gaming, Inc., Portland
Meadows, AmTote and XpressBet®, and through some of these assets,
is a supplier, via simulcasting, of live horseracing content to the
inter-track, off-track and account wagering markets. For further
information about MID, please visit www.midevelopments.com or call
905-713-6322. OTHER INFORMATION For further information about MID,
please see our website at www.midevelopments.com. Copies of
financial data and other publicly filed documents are available
through the internet on Canadian Securities Administrators' Systems
for Electronic Document Analysis and Retrieval (SEDAR) which can be
accessed at www.sedar.com and on the United States Securities and
Exchange Commission's Electronic Data Gathering, Analysis and
Retrieval System (EDGAR) which can be accessed at www.sec.gov.
FORWARD-LOOKING STATEMENTS This press release may contain
statements that, to the extent they are not recitations of
historical fact, constitute "forward-looking statements" within the
meaning of applicable securities legislation, including the United
States Securities Act of 1933 and the United States Securities
Exchange Act of 1934. Forward-looking statements may include,
among others, statements relating to the MEC Chapter 11 proceeding
and the Company's participation therein and statements regarding
the Company's future plans, goals, strategies, intentions, beliefs,
estimates, costs, objectives, economic performance or expectations,
or the assumptions underlying any of the foregoing. Words
such as "may", "would", "could", "will", "likely", "expect",
"anticipate", "believe", "intend", "plan", "forecast", "project",
"estimate" and similar expressions are used to identify
forward-looking statements. Forward-looking statements should
not be read as guarantees of future events, performance or results
and will not necessarily be accurate indications of whether or the
times at or by which such future performance will be
achieved. Undue reliance should not be placed on such
statements. Forward-looking statements are based on
information available at the time and/or management's good faith
assumptions and analyses made in light of our perception of
historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
in the circumstances, and are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are
beyond the Company's control, that could cause actual events or
results to differ materially from such forward-looking
statements. Important factors that could cause such
differences include, but are not limited to, the risks set forth in
the "Risk Factors" section in the Company's Annual Information Form
for 2009, filed on SEDAR at www.sedar.com and attached as Exhibit 1
to the Company's Annual Report on Form 40-F for the year ended
December 31, 2009, which investors are strongly advised to review.
The "Risk Factors" section also contains information about the
material factors or assumptions underlying such forward-looking
statements. Forward-looking statements speak only as of the
date the statements were made and unless otherwise required by
applicable securities laws, the Company expressly disclaims any
intention and undertakes no obligation to update or revise any
forward-looking statements contained in this press release to
reflect subsequent information, events or circumstances or
otherwise. _____________________________ (1) On April 30, 2010,
certain assets of MEC were transferred to MID, including, among
other assets, Santa Anita Park, Golden Gate Fields, Gulfstream Park
(including MEC's interest in The Village at Gulfstream Park™, a
joint venture between MEC and Forest City Enterprises, Inc.),
Portland Meadows, The Maryland Jockey Club ("MJC") which includes
Pimlico Race Course and Laurel Park, AmTote and XpressBet® (the
"Transferred Assets"), pursuant to the Joint Plan of Affiliated
Debtors, the Official Committee of Unsecured Creditors, MID and MI
Developments US Financing Inc. pursuant to the Bankruptcy Code (as
amended, the "Plan"). Effective July 1, 2010, the Company has
joint venture interests with Penn National Gaming, Inc. in MJC's
real estate and racing operations and future gaming opportunities
at the MJC properties. To view this news release in HTML
formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/December2010/14/c4655.html
pRocco Liscio, Executive Vice-President and Chief Financial Officer
of MID, at 905-726-7507/p
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