Las Vegas Sun

March 28, 2024

Mirage posts record earnings

Mirage Resorts Inc. said today it had the highest quarterly earnings in gaming industry history for the three-month period ending March 31.

Wall Street reacted favorably; Mirage stock was up $2 to $46.875 at 2 p.m. today in trading on the New York Stock Exchange.

The company said net income rose to a record $64.6 million, or 66 cents a share, on revenue of $408.7 million for the period, up from $44.9 million, or 47 cents a share, on revenue of $383.4 million in the year-earlier quarter.

The latest results included a gain of $5.2 million, or 5 cents a share, from the sale of the company's 50 percent interest in a small casino near Iguazu Falls, Argentina. The year-earlier results included a $6.8 million charge related to early retirement of first mortgage notes.

The results were substantially higher than analysts' expectations. David Glaser of Dean Witter Reynolds in New York said the mean prediction was 51 cents a share.

Mirage Chairman Steve Wynn said the results, the best in the company's six-year history, reflected strong performances from all four properties -- The Mirage, Treasure Island and Golden Nugget in Las Vegas and the Golden Nugget in Laughlin.

"The success of our existing properties bodes well for the new resorts we now have under construction," Wynn said.

The company said it had trimmed debt to $210 million from $331 million a year earlier despite construction expenses at the $1.3 billion Bellagio project in Las Vegas. Interest expense declined 63 percent.

Mirage said its companywide standard room occupancy rate was 99.3 percent for the quarter, up from 98.5 a year earlier. Table-game win percentage was 21.5 percent, down from 22.2 percent in the 1995 first quarter.

Corporate expenses declined 9 percent as management concentrated on developing resorts in existing gaming jurisdictions instead of potential new ones, the company said.

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