Las Vegas business news

Wednesday, Feb. 12, 1997 | 11:59 a.m.

Local

* MIRAGE EARNINGS RISE -- Mirage Resorts Inc. said fourth-quarter earnings rose 25 percent on higher room rates at its casinos and strong results from its Mirage and Treasure Island casinos. Mirage, which is based in Las Vegas, said profit from operations rose to $55.6 million, or 29 cents a share, from net income of $44.5 million, or 23 cents a year earlier. Revenue fell less than 1 percent to $373.7 million. In the most recent quarter, a charge of $3.51 million, or 2 cents a share, to build a new lobby in its Treasure Island casino and add casino and retail space, produced net income of $52.1 million, or 27 cents a share. The results beat Wall Street's expectations for earnings of 26 cents a share, based on the average estimate of 20 analysts surveyed by IBES International Inc. "We are consistent at each of our properties, and we are consistent as a company," said Mirage Chief Financial Officer Dan Lee.

* STRATOSPHERE CASH FLOW -- Stratosphere Corp. said consolidated cash flow for the four weeks ended Jan. 26 was $553,622, below the $2.3 million monthly average required by the bankruptcy reorganization plan approved by note holders. Stratosphere also said average cash flow for the last four months was $1,773,815, also below the requirement. Today's announcement didn't provide any information on what impact the results would have on the Chapter 11 reorganization plan. Holders representing more than 57 percent of the company's $203 million in first-mortgage notes had approved a three-point cut in the 14.25 percent interest rate as part of the reorganization plan, which calls for an additional equity infusion of $75 million from existing shareholders, as long as cash-flow minimums and other requirements are met.

* MGM EYES DETROIT -- MGM Grand Inc. said today it has nearly doubled its credit line and formed a partnership with Detroit civic, community and business leaders to build a casino there. The increase in the credit line to $1 billion from $600 billion "ensures that MGM has the immediate ability to finance construction of a major complex in Detroit" the company said. Some of MGM's Detroit partners include William Pickard, former chairman of the Detroit Urban League; Joseph Davis, director of the National United Auto Workers Civil Rights Department and national board member of the Southern Christian Leadership Conference; and Roy Roberts, vice president and general manager, Pontiac-GMC division, General Motors Corp. and board member of the United Negro College Fund.

To contact the SUN business news desk, call 259-4083 or e-mail mike@lasvegassun.com