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Mirage Resorts Company-wide Occupancy 
for 3rd Qtr 1999 Was 98% 
Reports Third Quarter Earnings of $0.14 Per Share
 
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.
 

MIRAGE RESORTS, INCORPORATED
Condensed Consolidated Statements of Income
For the Periods                 Three Months            Nine Months
    Ended September 30             1999        1998        1999       1998
(In thousands)
Revenues
      Casino                     $314,126    $188,351    $905,914   $542,541
      Rooms                       127,409      69,362     385,683    215,910
      Food and beverage           117,607      54,529     339,481    164,665
      Entertainment                52,566      26,488     142,723     73,068
      Retail                       37,221      16,040     104,836     47,369
      Other                        21,055      11,855      64,583     40,375
                                  669,984     366,625   1,943,220  1,083,928
Less -
       promotional allowances     (63,502)    (34,031)   (180,856)  (100,581)
                                  606,482     332,594   1,762,364    983,347

Operating costs and expenses
Casino-hotel operations     471,950     251,550   1,356,572    735,469
Depreciation
       and amortization            54,157      21,650     150,346     66,706
                                  526,107     273,200   1,506,918    802,175

    Operating profit               80,375      59,394     255,446    181,172

    Corporate expense             (14,872)    (16,718)    (37,982)   (34,810)
Preopening and related
promotional expense           (3,415)        ---     (38,990)       ---
Equity in earnings
     of Monte Carlo                 6,926       5,549      23,506     20,335

    Income from operations         69,014      48,225     201,980    166,697

    Interest cost                 (34,637)    (34,376)   (109,791)   (92,619)
    Interest capitalized            5,940      32,340      23,421     81,968
Other, including
interest income                1,486       2,677       4,399     11,237

Income before income taxes,
extra-ordinary item and
cumulative effect of
     accounting change             41,803      48,866     120,009    167,283
    Provision for income taxes    (14,774)    (18,762)    (42,448)   (61,960)

Income before extraordinary
item and cumulative effect
of accounting change          27,029      30,104      77,561    105,323

Extraordinary loss on early
retirement of debt, net of
applicable income tax benefit    ---         ---         ---     (3,521)

Cumulative effect
(to January 1, 1999) of change
in method of accounting for
preopening costs, net of
     applicable income tax benefit    ---         ---     (30,577)       ---

    Net income                    $27,029     $30,104     $46,984   $101,802

Forward-Looking Statements
This press release contains forward-looking statements that are subject to change.  Actual results may differ materially from those described in any forward-looking statement.  Additional information concerning potential factors that could affect the Company’s future results is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 1998.  This statement is provided as permitted by the Private Securities Litigation Reform Act of 1995.
 

###
 
Contact:
Alan Feldman of Mirage Resorts, Incorporated, 702-693-7147
 
Also See: Mirage Resorts Moving Forward with Infrastructure Improvements at Atlantic City Development Site / Oct 1999
Bellagio Has a Strong Start; Mirage Resorts Reports Third Quarter Earnings Drop to $0.16 per share, versus $0.28 per share / Nov 1998 

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