Mirage, Station reporting mixed results

Gary Thompson

Monday, Oct. 18, 1999 | 11:01 a.m.

Mirage Resorts Inc. reported improved results at its newest megaresorts today, while Station Casinos Inc. said it posted record cash flow and per-share income during the third quarter.

Shares of the two Las Vegas-based casino companies were lower in late-morning trading, with Mirage stock quoted at $14.375, down 75 cents a share, and Station off 18.75 cents to $25.0625.

Mirage reported third-quarter net income, after pre-opening expenses related to planning of its new Atlantic City resort, of $27 million, or 13 cents per fully diluted share, compared with net of $30.1 million, or 16 cents a share, in the 1998 third quarter.

The per-share figures, which assume exercise of stock options, reflect 206.2 million shares outstanding as of Sept. 30, 1999, up from 190.5 million a year earlier.

Mirage's net revenue after promotional allowances soared to $606.5 million from $332.6 million in the 1998 quarter. Operating cash flow jumped 66 percent to $134.5 million, the company said.

Fueled by the performances of Bellagio in Las Vegas and Beau Rivage in Biloxi, Miss., Mirage's company-wide casino revenue rose to $314.1 million, up 67 percent from the year-ago quarter. Table game revenue soared 67 percent to $160.3 million and slot revenue jumped 68 percent to $143.2 million.

Non-casino revenue rose to $355.9 million from $178.3 million, Mirage said. The company-wide occupancy rate for standard guest rooms was 98 percent and the average daily rate was $84.

After a slower than expected opening, Beau Rivage boosted its occupancy rate to 94 percent from 83 percent in the second quarter, its first full quarter of operations, Mirage said.

Station Casinos reported third-quarter net of $13.1 million, or 30 cents per fully diluted share, compared with net of $1 million, or 3 cents a share, in the 1998 third period.

The per-share earnings assume 43.7 million shares of stock outstanding in the latest quarter, up from 35.3 million in the year-ago period.

Net revenue rose to $237.5 million from $213.4 million, Station said.

The company used some of its record quarterly cash flow of $61.7 million, up 20 percent from the 1998 quarter, to continue to pay off debt. As a result, it reduced its debt to cash flow ratio to 3.9 ahead of schedule.

Last December, Station's debt to cash flow ratio was 4.9 to 1, and executives said they hoped to reduce it to below 4 to 1 by the end of 1999.

Station said revenue from its five Southern Nevada casinos rose 14 percent to $146.3 million, with both revenue and cash flow higher at its four major properties -- the Palace, Boulder, Texas and Sunset Station hotel-casinos.

In Missouri, the company's two casinos posted record revenue and cash flow.

During the latest quarter, Station agreed to buy the Flamingo Hilton riverboat casino in Kansas City for $22.5 million and another pact to develop a $100 million gaming and entertainment facility on tribal land near Sacramento, Calif.