Record Quarter for Mandalay Resorts
Updated from Dec. 2
Mandalay Resort Group (MBG) shares edged higher early Friday after the casino company late Thursday reported strong profit growth for its third quarter, citing booming business at its Las Vegas casinos.
The Las Vegas-based company reported net income of $67.1 million, or 99 cents a share, in the quarter ended Oct. 31, up 65% from $40.6 million, or 63 cents a share, a year earlier.
Shares rose 31 cents, or 0.4%, to $70 in premarket trading.The company said recurring earnings, not including one-time items, were $1.04 a share, crushing the average Wall Street analyst estimate of 88 cents. Items included a gain of $8.2 million, or 8 cents a share, from an accounting change related to the company's jackpot reserves; merger-related costs of $6.6 million, or 10 cents a share; and a charge of $3.4 million, or 3 cents a share, related to the amortization of deferred income. Results were also affected by higher health care costs. Revenue was $720.3 million, up from $625.6 million a year earlier, better than the $691.4 million average analyst expectation from Thomson First Call. Hotel and game revenue grew strongly at the company's Las Vegas Strip resorts. Revenue per available room, a key metric known as revpar, grew 18% at those properties, while casino revenue rose 14%. "All of the company's Strip properties, including the Monte Carlo, reported record third-quarter results, with the third quarter marking the sixth consecutive quarter of double-digit percentage increases," said Glenn Schaeffer, the company's CFO. The company has agreed to be acquired by MGM Mirage (MGG) for $4.8 billion in cash. MGM expects to complete the acquisition by the end of next year's first quarter. In a conference call, Mandalay executives declined to comment on the merger.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV