The company has now reported year-over-year increases in earnings per share in 14 of the past 15 quarters. This was the best third quarter in the company's history.
The earnings growth was led by the company's flagship property, The Mirage, which had the best quarter in its history. Its revenues and operating cash flow increased by 19 percent and 35 percent, respectively, over the third quarter of 1996. These results reflect increases in table games activity (9 percent), slot win (13 percent) and table games win percentage.
Standard room occupancy at The Mirage remained very high, at 99.4 percent, with a slight increase in the average standard room rate. The excellent Mirage results were achieved despite $2.7 million of abandonment charges related to construction of a new gourmet restaurant (Melange, which opened Aug. 30) and a new employee parking garage.
Treasure Island opened its new luxurious hotel lobby in early August. A new retail outlet opened in September, and a new Italian restaurant and additional casino space are currently under construction and scheduled for completion later in the fourth quarter. This construction has temporarily resulted in Treasure Island having approximately 12 percent fewer available slot machines than in the third quarter of last year. This, plus competitive market conditions, resulted in a small decrease in the facility's revenues.
The companywide table games win percentage was a higher-than-historical 25.5 percent, vs. 19.2 percent in the prior-year period. The company's win percentage has averaged 20.1 percent over the past 12 quarters.
Companywide standard room occupancy remained very high, at 98.7 percent vs. 99.2 percent.
The company's 50 percent-owned Monte Carlo facility produced operating
cash flow of $21.4 million. This unconsolidated subsidiary has repaid nearly
half its construction debt after only five quarters of operation.
Corporate expense rose 14 percent, principally due to various costs
of litigation. Interest cost more than doubled, but most of the increase
was capitalized, reflecting the increased sums invested to date in the
company's Bellagio and Beau Rivage projects.
The company's average shares outstanding declined by 2 percent principally due to share repurchases in the second half of 1996.
MIRAGE RESORTS INC.
Financial Highlights
(In thousands, except per-share data)
For the periods Three Months Nine Months ended Sept. 30, 1997 1996 1997 1996
Gross revenues $ 400,631 $ 370,825 $1,168,787 $1,122,676 Less -- promotional allowances (31,478) (32,273) (93,234) (97,264)
369,153 338,552 1,075,553 1,025,412
Casino-hotel operating costs and expenses 272,658 254,631 796,169 770,271 Operating profit before corporate expense 96,495 83,921 279,384 255,141 Corporate expense 9,042 7,946 24,357 21,724 Operating income 87,453 75,975 255,027 233,417
Other income and (expense): Interest cost (18,709) (7,408) (45,912) (20,629) Interest capitalized 15,114 6,312 36,613 16,241 Other, including interest income 1,215 106 2,723 11,524
(2,380) (990) (6,576) 7,136
Income before income taxes and extraordinary item 85,073 74,985 248,451 240,553 Provision for income taxes 30,174 26,249 87,962 86,631 Income before extraordinary item 54,899 48,736 160,489 153,922 Extraordinary item -- loss on early retirement of debt, net of applicable income tax benefit -- -- (2,225) -- Net income $ 54,899 $ 48,736 $ 158,264 $ 153,922
Income per share of common stock: Income before extraordinary item $ 0.29 $ 0.25 $ 0.84 $ 0.79 Extraordinary item -- loss on early retirement of debt, net of applicable income tax benefit -- -- (0.01) -- Net income per share of common stock $ 0.29 $ 0.25 $ 0.83 $ 0.79
Common and dilutive common equivalent shares 191,532 195,017 190,818 196,048
MIRAGE RESORTS INC. Interpretive Data (Dollars in thousands, except room-rate amounts)
For the periods Three Months Nine Months ended Sept. 30, 1997 1996 1997 1996
Gross revenues: The Mirage $ 230,444 $ 193,573 $ 649,605 $ 599,192 Treasure Island 99,475 104,275 298,679 309,663 Golden Nugget 50,176 52,078 152,754 166,387 Golden Nugget-Laughlin 13,904 13,674 44,957 45,377 Equity in earnings of Monte Carlo (a) 6,632 7,225 22,792 2,057
400,631 370,825 1,168,787 1,122,676
Less -- promotional allowances (31,478) (32,273) (93,234) (97,264) Net Revenues $ 369,153 $ 338,552 $1,075,553 $1,025,412
Operating cash flow (EBDIT) (b) The Mirage $ 74,879 $ 55,329 $ 200,125 $ 173,923 Treasure Island 26,493 30,559 83,397 94,013 Golden Nugget 9,286 11,473 31,387 43,363 Golden Nugget-Laughlin 1,421 1,476 7,273 8,292
$ 112,079 $ 98,837 $ 322,182 $ 319,591
Operating income: The Mirage $ 64,802 $ 45,164 $ 171,054 $ 143,418 Treasure Island 18,947 22,985 61,146 71,379 Golden Nugget 5,828 8,371 20,642 33,932 Golden Nugget-Laughlin 286 176 3,750 4,355
89,863 76,696 256,592 253,084
Equity in earnings of Monte Carlo (a) 6,632 7,225 22,792 2,057 Corporate expense (9,042) (7,946) (24,357) (21,724)
$ 87,453 $ 75,975 $ 255,027 $ 233,417
Other information (excluding Monte Carlo): Companywide table games win percentage 25.5% 19.2% 21.8% 19.1% Companywide occupancy of standard guest rooms 98.7% 99.2% 99.0% 99.4% Average standard guest room rate (c) $ 86 $ 88 $ 91 $ 91 (a) During the 1997 three-month period, Monte Carlo's gross revenues, EBDIT and operating income were $64.1 million, $21.4 million and $15.8 million, respectively. Such amounts during the 1996 three-month period were $70.1 million, $23.4 million and $18.6 million, respectively. During the 1997 nine-month period, Monte Carlo's gross revenues, EBDIT and operating income were $197.3 million, $69.4 million and $53.6 million, respectively. Monte Carlo opened on June 21, 1996. From opening to Sept. 30, 1996, Monte Carlo's gross revenues were $79.1 million and before deducting preopening costs of $11.2 million, EBDIT and operating income were $25.1 million and $19.8 million, respectively. The Monte Carlo amount shown in the above table for the 1996 nine-month period is after deducting the company's $5.6 million share of preopening costs. (b) Earnings before depreciation, interest and taxes. (c) Cash rate (i.e., excluding complimentary accommodations) at the company's Las Vegas hotels. Contact: Mirage Resorts, Las Vegas Alan Feldman, 702/650-7400
Mirage 2nd Quarter 1997 Results Mirage 1st Quarter 1997 Results