Loss exceeding 10 cents per share expected

Friday, Dec. 14, 2001 | 10:51 a.m.

Mandalay Resort Group of Las Vegas, repeating warnings of a loss in its fourth quarter, told investors Thursday it expects to post a loss of at least 10 cents per share in the quarter ending Jan. 31.

"As of (Thursday), we continue to see the events of Sept. 11 suppressing our operating results," Mandalay said in its report for the quarter ending Oct. 31, filed Thursday with the Securities and Exchange Commission. "Not only are the events of Sept. 11 disrupting advance bookings for the critical New Year's period, but two other normally key fourth quarter events, Super Bowl and Chinese New Year's, will now take place in February 2002.

"As a result, we anticipate a net loss in the double-digit range for our fourth quarter ending Jan. 31, 2002."

Analysts had been expecting a loss of 7 cents per share. But Glenn Schaeffer, president and chief executive of Mandalay, said it shouldn't be considered a warning, since the expected loss was communicated to investors during the third-quarter conference call in mid-November, and there have been no material changes in business fundamentals since that call.

Mandalay stock retreated 87 cents Thursday to $21.38.

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