LV company issues earnings warning

Thursday, Feb. 8, 2001 | 10:36 a.m.

Las Vegas-based Mandalay Resort Group became the latest gaming company to issue an earnings warning, when the gaming giant Wednesday announced fourth-quarter earnings would fall well below analyst expectations.

Mandalay said it expected to report net earnings of 1 cent per share before non-recurring items for the quarter ending Jan. 31. Analysts had expected 14 cents per share.

Mandalay said its Las Vegas resorts recorded a "dramatically stronger" performance in the quarter over the year-ago period, but said poor weather impacted earnings at company properties in Mississippi, Illinois and Michigan. The company also said its properties in Laughlin turned in "significantly lower results" than last year.

Earnings were also reduced by higher interest expenses and depreciation charges.

Despite the announcement, Mandalay Stock traded up 28 cents this morning at $22.18.

Mandalay is the latest in a string of gaming companies to warn investors of disappointing earnings in the fourth quarter of 2000. Park Place Entertainment Corp., Harrah's Entertainment Inc., Station Casinos Inc., Ameristar Casinos Inc., Boyd Gaming Corp., Aztar Corp. and Isle of Capri Casinos Inc. all issued earnings warnings for the quarter, and all blamed weather for the shortfall to some extent. Of the major operators, only MGM MIRAGE and Argosy Gaming Co. actually beat analyst expectations for the quarter.