Mandalay profit beats expectations

Monday, May 21, 2001 | 11 a.m.

Mandalay Resort Group, a big Las Vegas casino resort operator, Friday announced lower earnings for the first quarter ending April 30 -- though its profit exceeded even its own optimistic projections.

The company said it earned $47.4 million or 61 cents per share vs. $48.9 million or 58 cents in the prior-year quarter. Revenue of $669 million was up from $633.7 million.

On May 4 Mandalay announced it expected to earn 60 cents per share vs. analyst expectations of 51 cents per share. The per-share earnings increased because there were fewer shares outstanding in the quarter. The earnings were reported after the stock market closed Friday. Mandalay shares were down 56 cents this morning. Its stock rating was reitterated at "hold" by brokerage Dresdner Kleinwort Wasserstein.

The Las Vegas company said its Mandalay Bay resort on the Las Vegas Strip generated operating cash flow of $37 million compared with $30.5 million in the year-ago quarter, while the adjacent Luxor posted cash flow of $38.3 million vs. $35.7 million.

Excalibur, which is adjacent to Luxor, was flat at $28.2 million while Circus Circus improved by $1.1 million to $21.1 million.

Monte Carlo, a joint venture with MGM MIRAGE, reported flat cash flow of $27.8 million.

The company's average room rate on the Las Vegas Strip rose $9, or 9 percent vs. last year's notably strong first quarter, driven by robust convention business and strong visitor demand, Mandalay said.

The company reported declines in its smaller markets of Reno, Laughlin and Tunica, Miss.; but reported strong results at its casinos in Elgin, Ill., and Detroit.

Cash flow overall of $195.2 million was up from $192.2 million, its prior record.