Mandalay Resort Group posts a quarterly loss

Thursday, Feb. 24, 2000 | 10:47 a.m.

SUN STAFF AND WIRE REPORTS

Mandalay Resort Group, as expected, posted a decline in fourth-quarter earnings Wednesday because of soft business for the New Year's millennium celebration.

The Las Vegas-based casino operator said it earned, on an operating basis, 1 cent per share vs. 16 cents in the year-ago quarter. The 1 cent fell far short of analyst expectations of 11 cents -- the average estimate of analysts polled by First Call/Thomson Financial.

After its portion of preopening expenses for the MotorCity Casino in Detroit, Mandalay lost $5.4 million or 6 cents per share for the quarter vs. a profit of $14.6 million or 16 cents a year earlier.

"Most people knew that the quarter was going to be disastrous," said McDonald Investments Inc. analyst Dennis Forst, who rates Mandalay shares "neutral."

"They didn't get the hotel guests or the walk-in traffic they needed in the seasonally slow fourth quarter," he said.

Revenue rose 46 percent to $518.3 million from $355.7 million.

Mandalay Resort Group said its new Mandalay Bay resort in Las Vegas posted nearly $18 million in operating cash flow during the quarter.

Luxor generated $20.3 million vs. $23.9 million a year ago, Circus Circus-Las Vegas posted $11 million vs. $11.5 million and Excalibur's cash flow was $17.2 million, up from $15 million in the year-ago quarter.

The company's Reno properties reported $7.2 million in operating cash flow, down from $7.8 million. Its Laughlin properties posted $3.4 million in cash flow, down from $4.8 million.

Cash flow at the Gold Strike in Tunica, Miss., improved from $5.6 million to $6.5 million; the 50-percent owned Grand Victoria riverboat in Elgin, Ill., increased from $18.2 million to $30.4 million as Illinois eliminated cruising requirements and allowed dockside gambling.

In its first six weeks of operation, the 53.5 percent-owned MotorCity casino posted $7.7 million in operating cash flow during what the company described as the slow winter period.

Mandalay stock closed Wednesday at $14.65, up 56 cents, before the Las Vegas company released its earnings report. Investors focused on the gaming industry because of MGM Grand Inc.'s offer to buy Mirage Resorts Inc. and this may have helped Mandalay stock.