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| LAS VEGAS, Oct. 18, 1999 - Mirage Resorts, Incorporated (NYSE: MIR)
announced today 1999 third quarter earnings before preopening costs of
$29.2 million ($0.14 per share), compared with $30.1 million ($0.16 per
share) in the 1998 quarter.
The Company’s total revenues for the quarter grew to $670.0 million, representing a $303.4 million, or 83%, increase over the prior-year period. Operating cash flow (EBDIT) at the Company’s wholly owned properties increased by $53.5 million, or 66%, to $134.5 million. These increases principally reflect the openings of the Company’s two new resorts. Bellagio in Las Vegas, Nevada opened on October 15, 1998 and Beau Rivage in Biloxi, Mississippi opened on March 16, 1999. Company-wide casino revenues during the quarter climbed to $314.1 million, representing an increase of $125.8 million, or 67%, over the same 1998 period. Table games revenue increased to $160.3 million, or 67%, and slot revenue increased to $143.2 million, or 68%, over the 1998 period. The Company-wide table games win percentage was relatively normal during the third quarter of both years -- 19.6% in 1999 and 20.8% in 1998. By comparison, the Company’s overall table games win percentage over the past three calendar years averaged approximately 20%. The Company’s total non-casino revenues during the quarter grew to $355.9 million, nearly doubling the $178.3 million achieved in the 1998 period. Company-wide occupancy of available standard guestrooms was 98% and the average daily rate was approximately $97. For the 1998 third quarter, Company-wide standard guestroom occupancy was 99% and the average daily rate was approximately $84. Total revenues, operating cash flow and net income at the Company’s 50%-owned Monte Carlo Resort Casino all increased over the 1998 quarter. Room revenues at the resort were up strongly during the quarter, reflecting an increase in both occupancy and the average daily room rate. Factors Impacting Operating Results In Las Vegas, at Treasure Island, there were approximately 8% fewer room nights available versus the 1998 third quarter due to the guestroom refurbishment project which was completed in late September. As a result of the significant upgrading of the furnishings of its guestrooms, and in recognition of superior customer service, Treasure Island was recently awarded the Four Diamond rating by AAA. Beau Rivage’s operating results continued to improve. Standard guestroom occupancy averaged approximately 83% during the 1999 second quarter (its first full quarter of operations) and increased to approximately 94% during the third quarter. Other Factors Affecting Earnings With Bellagio and Beau Rivage now open, the Company’s charge for depreciation and amortization has increased significantly. Depreciation and amortization expense totaled $54.2 million in the 1999 third quarter, versus $21.7 million in the prior-year period. The Company’s debt levels and related interest cost were substantially equal when comparing the third quarters of 1999 and 1998. However, completion of Bellagio and Beau Rivage has resulted in the capitalization of a significantly smaller portion of the Company’s interest cost. As a result, net interest expense for the 1999 third quarter was $28.7 million, compared with $2.0 million in the prior-year period. The 1999 third quarter was also impacted by a newly issued accounting statement that requires preopening costs to be expensed as incurred, rather than deferred and expensed after opening the related new facility. As a result, the Company expensed approximately $3.4 million ($0.01 per share after tax) of preopening costs relating principally to the planning and design of its proposed major new resort complex in Atlantic City, New Jersey. Share Repurchase On October 7, 1999, our Company announced that it had repurchased approximately
5.75 million shares of its common stock in a privately negotiated transaction
at $15.25 per share. Separately, approximately 3.3 million shares
remain from the Company’s previously announced 10 million share repurchase
program.
Forward-Looking Statements
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