Mirage beats profit estimates

Mirage Resorts Inc. reported net income of $1.5 million, or 1 cent per share, in the first quarter, down significantly from the $38 million, or 20 cents per share, earned in the same quarter one year ago.

But analysts were not alarmed at the decline, which was due to pre-opening charges at the company's Beau Rivage hotel-casino in Mississippi and a change in accounting methods.

"The results were moderately above our expectations," said Brian Egger, analyst at Donaldson, Lufkin and Jenrette, in New York.

Before the special one-time costs, Mirage earned $32.1 million in the quarter, or 28 cents per share. Consensus analyst estimates for the quarter were 27 cents per share, according to Zack's Investment Research.

Revenues in the quarter were $580.7 million, up from $335.2 million one year ago.

Mirage said its Bellagio hotel-casino generated revenues of $282 million in the quarter. The company estimated this as the highest quarterly revenues generated by any resort in Nevada history.

Company-wide, guestroom occupancy was at 98.1 percent in the quarter, and average daily rates rose from $89 to $110. Table game win percentage was 20.2 percent in the quarter, compared to 19.8 percent a year ago.

Mirage did not break its results out by property, as it has in the past. Egger said the change is for competitive reasons: like other companies, Mirage does not want its competitors knowing how each of its properties is doing.

Egger pointed to an increase in operating income at Mirage properties excluding Bellagio and Beau Rivage as a positive sign.

"The same-store growth in the quarter appeared to be strong," said Egger.

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