AURORA, ON, Dec. 14 /PRNewswire-FirstCall/ - 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 Assets1 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".
www.midevelopments.com www.sedar.com www.sec.gov
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.
SOURCE MI Developments Inc.