Mandalay Resort Group
posted a jump in third-quarter earnings and increased its dividend, thanks to a surging Las Vegas travel market.
After the close of trading Wednesday, the company said net earnings came in at $40.6 million, or 63 cents a share, up from $33.2 million, or 47 cents a share, in the year-ago quarter. Excluding expenses related to the opening of a new hotel tower and gains associated with an executive retirement plan, the company earned 66 cents a share, topping the Wall Street consensus estimate of 62 cents a share.
Revenue came in at $625.6 million, up from $595.6 million in the year-ago quarter, driven by the strength of properties on the Las Vegas Strip, which saw revenue per available room, a metric known as revpar, increase by 19%. The strong performance helped Mandalay generate a tremendous amount of cash flow from operations in the third quarter, which came in at $167 million, up from the year-ago $152 million.
And Mandalay said it plans to share more of that cash with investors, upping its quarterly dividend to 27 cents from 25 cents. Ahead of the earnings release, shares of Mandalay traded down 12 cents, or 0.3%, at $42.72. That trend continued in the after-hours session, with shares falling another $2.22, or 5.2%, to $42.73 on extremely thin trading, which can exaggerate moves.