This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Profit Rises at Mandalay Bay

Updated from September 2

Mandalay Resort Group (MBG) were flat Friday after the company late Thursday said strong results at its core Las Vegas operations drove second-quarter earnings sharply higher from a year ago.

The hotel and casino operator said after the bell Thursday that it posted second-quarter net income of $58.2 million, or 85 cents a share, up from the $42.3 million, or 67 cents a share, it had in the year-ago quarter.

Second-quarter results were hurt by a 20% increase in health care costs, lower table win at its Mandalay Bay flagship in Las Vegas, as well as a drop in business travel, the company said.

"Despite the absence of a strong convention component for this quarter, Mandalay still performed impressively, delivering all-time record results for its second quarter by a distance," noted Glenn Schaeffer, the company's president and CFO.

The company's quarter includes a number of items, so Wall Street's estimate of a second-quarter profit of $1.03 a share is not immediately comparable with the 85 cents Mandalay earned. The casino operator generated $713.8 million in revenue during the quarter, topping the $702.5 million expected by Wall Street, and up 11% from last year.

Shares were down 2 cents at $67.83 early Friday.

Mandalay's Las Vegas results were strong, with operating cash flow rising $17.6 million, or 14% from last year. Revenue from properties on the Strip rose 8%, while revenue per available room, also known as revpar, rose 12%. Mandalay Bay, Luxor and Excalibur all reported record results.

In mid-June, the merger of MGM, the third-largest U.S. gaming company, and Mandalay, the fourth-largest, was unanimously approved by the boards of both companies. Under the terms of the deal, MGM bought Mandalay for $4.8 billion in cash, or $71 a share, with the assumption of $2.5 million in debt and $600 million in convertible debentures. While the deal must clear a number of regulatory hurdles, MGM said it expects the transaction to be completed by the end of the first quarter of 2005.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MBG $27.15 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs