MI Developments Inc. today announced that, on a consolidated basis, it will record a non-cash asset impairment charge, net of income taxes, of approximately US$59.7 million in the fourth quarter of 2006 from the racing operations of Magna Entertainment Corp., a publicly-traded subsidiary of MID.
This write-down will negatively impact MID's consolidated diluted earnings per share for the fourth quarter of 2006 but will have no impact on the financial results of MID's Real Estate Business.
As disclosed in the MEC press release issued today, the non-cash write-down relates to the operating losses at Magna Racino(TM), MEC's racetrack located in Ebreichsdorf, Austria, and is a result of applying the asset impairment tests required by Financial Accounting Standards Board Statement No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets", to the carrying value of Magna Racino's long-lived assets.
About MID
MID is a real estate operating company engaged in the ownership, development, management, leasing and acquisition of industrial and commercial real estate properties located in North America and Europe. Virtually all of our income-producing properties are currently under lease to Magna International Inc. and its subsidiaries.
MID also holds a controlling investment in MEC, North America's number one owner and operator of horse racetracks, based on revenues, and one of the world's leading suppliers, via simulcasting, of live racing content to the growing inter-track, off-track and account wagering markets. -- www.cnxmarketlink.com
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