Monday, May 3, 1999 | 9:55 a.m.
Circus Circus Enterprises Inc. of Las Vegas said today it's proposing to change the company's name to "Mandalay Resort Group," which identifies the company with its newest and most extravagant resort.
Shareholders will vote on the proposal at the annual meeting on June 17.
The company's newest resort on the Las Vegas Strip, Mandalay Bay, opened March 2.
Separately, Circus Circus said its earnings per share for the first quarter ended April 30 -- before charges for preopening expenses, mostly at Mandalay Bay -- will significantly exceed the highest published estimates on Wall Street.
Circus expects operating earnings for the quarter of 40 to 42 cents per share. Zacks Investment Research Inc. said the consensus estimate of analysts had been 23 cents per share while Circus said estimates for operating earnings have clustered around 25 cents per share.
Circus expects to report operating cash flow (EBITDA) of more than $140 million, compared with 23 cents per share and $97 million on the same basis in the first quarter a year ago. The company will report its results in the third week of May.
"Strong occupancy rates and room-rate increases, in particular, at the company's Las Vegas resorts, have bolstered results, along with a good start at Mandalay Bay," circus said.
Also today, Circus Circus authorized a share repurchase program for up to 15 percent of its outstanding shares, as market conditions and other factors warrant. This authorization replaces a former 15 percent authorization that was used over a four-year span.
Circus stock jumped $1.88 on the news in early trading today to $22.94.
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