Circus Circus earnings slip

Friday, May 30, 1997 | 11:44 a.m.

Circus Circus Enterprises Inc. said it posted net income of $37.5 million, or 40 cents a share, for the fiscal 1998 first quarter which ended April 30.

That income is down from $43.5 million, or 42 cents a share, from the same period a year ago.

Revenue fell to $344.1 million from $352.9 million in the prior year's first quarter. Shares outstanding declined 8.2 percent, to 94.6 million at the end of the latest quarter from 103.1 million, due to a stock repurchase program.

Circus said operating cash flow at Luxor rose nearly 25 percent for the quarter, to $27.5 million, due to the addition of 1,950 new rooms, even though construction will continue through year-end renovations to retail, restaurant, showroom and other spaces.

Excalibur's cash flow slipped to $25.4 million from the fiscal 1997 first quarter's record $29.3 million, while Circus Circus-Las Vegas posted a slight cash flow increase, to $15.4 million.

Results improved at Circus' two Reno operations, while its Laughlin operations suffered from increased competition. Riverboat and Gulf Coast cash flow was lower, the company said.

In last year's first quarter, the company recorded $8.2 million in write-offs for asset removals. Also, the company operated the Hacienda hotel-casino, which posted $4.5 million in operating cash flow but was demolished in December to make way for Project Paradise, an $800 million, 3,800-room megaresort next to Luxor.

In January, Circus sold its interest in Windsor Casino Ltd., which contributed $2.4 million in operating cash flow in the year-ago first quarter.

Circus recently signed a $2 billion credit facility with a Bank of America-led consortium. The unsecured, five-year agreement is the largest credit facility ever negotiated by a gaming company and replaces Circus' previous $1.5 billion facility.