LAS VEGAS, May 21, 1998 - Circus Circus Enterprises, Inc. today announced its results for the first quarter ended April 30, 1998.
For the quarter, the company reported net income of $21,607,000, or $.23 per share, compared with $37,489,000, or $.40 per share in the same quarter last year.
In Las Vegas, Luxor produced $22.7 million in operating cash flow in the quarter compared to $27.5 million in the same quarter last year. While occupancy rose slightly in the quarter (92% vs 91%) and room rates held steady, a national advertising campaign to reintroduce the resort after its extensive remodeling affected profits. Also, Luxor's win percentage in the casino was lower than the prior year's. Excalibur generated $21.0 million in operating cash flow against $25.4 million. Soft market conditions in Las Vegas during the mid-week periods continued in the quarter, similar to the second half of last year. At Circus Circus-Las Vegas, meanwhile, operating cash flow was $11.9 million against $15.4 million, and Monte Carlo (50% of which is owned by Circus Circus) posted operating cash flow of $23.9 million, essentially equal to results for the quarter a year ago.
In Reno, the company produced a total of $10.0 million in operating cash flow (including Circus' 50% ownership of Silver Legacy) against $11.6 million in last year's first quarter. Adverse weather conditions in February suppressed results in Reno for the quarter. In Laughlin, the company's two properties together posted operating cash flow of $9.5 million against $10.9 million.
In Elgin, Illinois, Grand Victoria (50% owned by Circus) generated $19.3 million in operating cash flow, against $25.7 million last year. This year the state's maximum tax rate on casino revenue has risen to 35% against 20% a year ago, causing the downturn in the vessel's profits. Casino revenue at the Grand Victoria rose 2% in the quarter. And in Tunica, the company posted $5.0 million in operating cash flow against $2.4 million last year. In March, construction was completed on 1,100 rooms at Gold Strike, which was also remodeled to enlarge the public areas, including the casino and restaurants.
Separately, the company has filed an application for a temporary casino in Detroit as part of its plan to own and operate (in partnership with Atwater Casino Group) a permanent gaming resort in the city.
Circus Circus Enterprises, Inc. owns and operates 10 properties in Nevada: Circus Circus, Luxor, Excalibur and Slots-A-Fun in Las Vegas; Circus Circus-Reno; Colorado Belle and Edgewater in Laughlin; Gold Strike and Nevada Landing in Jean and Railroad Pass in Henderson. The company also operates Silver City in Las Vegas; owns a 50% interest in Silver Legacy in Reno and owns a 50% interest in and operates Monte Carlo in Las Vegas. The company also owns and operates Gold Strike in Tunica County, Mississippi, and owns a 50% interest in and operates Grand Victoria riverboat casino in Elgin, Illinois.