Exhibit 99.1
MANDALAY RESORT GROUP REPORTS
RECORD RESULTS AND RAISES QUARTERLY DIVIDEND
LAS VEGAS, NV – September 2, 2003 – Mandalay Resort Group (NYSE: MBG) today announced results for its second quarter ended July 31, 2003. For the quarter, the company reported net income of $42.3 million, or $.67 per diluted share, compared with $29.3 million, or $.41 per diluted share, a year ago.
Results for the current year quarter include a loss on early retirement of debt of $6.3 million ($.07 per diluted share) arising from the company’s July 15 call of its $275 million 9-1/4% Senior Subordinated Notes due 2005. The company paid a premium of $12.7 million to call these notes and wrote off related unamortized loan fees of $2.6 million, resulting in a total loss of $15.3 million. However, this loss was partially offset by $9.0 million in gains from the sale of related interest rate swaps. Results for the quarter also include a gain of $4.0 million ($.04 per diluted share) representing the quarterly adjustment of the carrying value of investments associated with the company’s executive retirement plan. Also included in current results is the effect of reversing previously accrued management fees from the company’s 53.5%-owned MotorCity Casino in Detroit, Michigan. The executive committee of that property had previously given tentative approval to the payment of a management fee to Mandalay. However,
the committee recently determined that the management fee should not be paid until certain issues surrounding the completion of the permanent facility are closer to resolution. As a result, the company reversed previously accrued management fee income which resulted in a charge of $1.8 million ($.02 per diluted share) in the quarter. Excluding the above items, the company’s earnings per share for the quarter represents an all-time record.
Results in the prior-year quarter include the write-off of $13.0 million ($.06 per diluted share) of intangible costs associated with MotorCity Casino, a loss of $1.9 million ($.02 per diluted share) related to adjusting the carrying value of the retirement plan investments and preopening expenses of $1.5 million ($.02 per diluted share) related primarily to the new convention center.
Average diluted shares outstanding in the quarter were 63.0 million versus 71.2 million in the prior year quarter, reflecting the effect of sizeable share repurchases over the latter half of the prior fiscal year (when the company purchased 7.4 million shares), as well as the settlement earlier this year of the company’s equity forward agreement (pursuant to which the company acquired another 3.3 million shares). Basic shares outstanding at July 31, 2003 were 61.5 million versus 68.8 million at July 31, 2002.
Mandalay’s operating cash flow (which is not a defined term under Generally Accepted Accounting Principles—see Note 1 below) was $172.1 million for the second quarter compared with $165.5 million last year. The financial schedules accompanying this release provide a reconciliation of
operating cash flow to net income as required by the Securities and Exchange Commission’s Regulation G.
LAS VEGAS STRIP
Operating cash flow at the company’s Las Vegas Strip properties (including the 50%-owned Monte Carlo) increased 18% over the prior year quarter, driven by a 10% increase in revenues. Revenue per available room ("REVPAR") at these properties increased 13%, while casino revenues rose 4%. Although Mandalay Bay and Luxor were the principal drivers, all of the company’s Las Vegas Strip properties generated increases in revenues, casino revenues, REVPAR and operating cash flow during the quarter.
Mandalay Bay produced record operating cash flow of $47.9 million in the second quarter, versus $38.8 million last year. REVPAR rose 18%, on an average room rate of $181 and 94% occupancy. "While our new convention center continued to perform well during the slower summer convention season, our REVPAR performance in the second quarter was really a function of renewed demand in the independent traveler category," noted Glenn Schaeffer, the company’s president and chief financial officer.
Luxor generated operating cash flow of $29.7 million in the quarter against $23.3 million last year, exceeding the increase at Mandalay Bay on a percentage basis. A 14% increase in REVPAR was the main factor in this growth. "This quarter’s results amply demonstrate the significant profit
leverage that Luxor possesses with its base of 4,400 rooms. Even modest increases in REVPAR should produce sizeable gains in operating cash flow," noted Mr. Schaeffer.
At Excalibur, operating cash flow was $24.7 million, up 10% from $22.4 million a year ago, while Circus Circus generated $18.2 million, a slight increase from $18.1 million in the prior year. Meanwhile, Monte Carlo (50%-owned by Mandalay) reported a 24% increase in operating cash flow, to $22.3 million from $18.0 million last year.
On a combined basis, operating cash flow declined in the second quarter at the company’s other Nevada properties (in Reno, Laughlin, Jean and Henderson), as they continued to reflect the effects of expanded Native American gaming in California and challenging economic conditions. Operating cash flow from these properties represented approximately 8% of the company’s total operating cash flow for the quarter. Please refer to the financial schedules accompanying this release.
At the 50%-owned Grand Victoria in Elgin, Illinois, operating cash flow was $20.6 million in the quarter, down from $28.6 million in the prior year. Results at this property reflect the impact from a pair of recent gaming tax increases approved by the Illinois legislature, the first of which took effect July 1, 2002 and included a top-end rate of 50% on gaming revenues exceeding $200 million, and a second increase that took effect July 1, 2003 and raised the top-end rate to 70% on gaming revenues exceeding $250 million. These rate increases impacted Mandalay’s earnings by approximately $.05 per diluted share in the second quarter.
In Detroit, Michigan, MotorCity Casino generated operating cash flow of $36.0 million in the quarter, a 7% increase from $33.7 million in the same quarter last year. This increase was due to the previously discussed reversal of management fees payable to Mandalay, which amounted to $3.8 million at the property level. In Tunica County, Mississippi, the company’s Gold Strike Resort reported $7.6 million in operating cash flow against $7.2 million last year.
RECENT TRANSACTIONS
On August 1, 2003, the company paid its first ever quarterly dividend of $.23 per share to shareholders of record June 26. At its meeting on August 27, the company’s Board of Directors declared a dividend of $.25 per share payable November 1, 2003 to shareholders of record October 15, 2003.
On June 30, 2003, the company exercised purchase options under its two operating lease agreements pursuant to which it paid $198.3 million to reacquire all of the equipment under both leases. This transaction was financed through a combination of $145 million in borrowings under a new $250 million capital lease facility and borrowings under the company’s revolving credit facility. The new capital lease facility is collateralized by equipment at Mandalay Bay and is reflected as a liability on the balance sheet.
On July 31, 2003, the company issued $250 million 6-1/2% Senior Notes due 2009. While the net proceeds were used to repay borrowings under the company’s revolving credit facility, this issuance substantially funded the previously discussed July 15, 2003 call of the company’s $275 million 9-1/4% Senior Subordinated Notes due 2005. The company also entered into a new fixed-to-floating interest rate swap agreement tied to this issuance, which reduced the effective interest rate on the new notes to LIBOR plus 2.40%, or approximately 3.50% currently. Also during the quarter, the company repaid its $150 million 6-3/4% Senior Subordinated Notes due 2003 using proceeds from its revolving credit facility.
Construction remains on schedule for the new 1,122-suite tower at Mandalay Bay. Meanwhile, a new retail concourse located between Mandalay Bay and Luxor is scheduled to open in early October.
The company today also filed an amendment to its Form 10-Q for the quarterly period ended April 30, 2003. This amendment was filed for the purpose of correcting certain statistical information relating to average room rates and REVPAR presented in management’s discussion and analysis in that report as originally filed. In calculating the average room rate and REVPAR at Mandalay Bay for the quarter ended April 30, 2003, revenues attributable to the rental of space in Mandalay’s new convention center were inadvertently included with room revenues. While revenues from the rental of convention center space are reported as part of room revenue in the consolidated income statements, such revenues are not properly included in the determination of average room rate and REVPAR. As a result, the company’s previously reported 14% increase in REVPAR at Mandalay Bay for the quarter ended April 30, 2003 was actually 6% and that property’s actual average room rate for the same period was $187 rather than topping $200, as previously reported. These changes did not result in any changes to the financial statements presented in that report.
This press release contains "forward-looking statements" within the meaning of the federal securities law, including statements concerning the company’s new all-suite hotel tower and retail concourse currently under construction, as well as recent financing transactions and their expected impact. The forward-looking statements in this press release involve risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements herein.
Additional information concerning potential factors that could affect the company’s future financial results is included under the caption "Factors that May Affect Our Future Results" in Item 1 of the company’s annual report on Form 10-K for the year ended January 31, 2003.
Mandalay Resort Group owns and operates 11 properties in Nevada: Mandalay Bay, Luxor, Excalibur, Circus Circus, and Slots-A-Fun in Las Vegas; Circus Circus-Reno; Colorado Belle and Edgewater in Laughlin; Gold Strike and Nevada Landing in Jean and Railroad Pass in Henderson. The company also owns and operates Gold Strike, a hotel/casino in Tunica County, Mississippi. The company owns a 50% interest in Silver Legacy in Reno, and owns a 50% interest in and operates Monte Carlo in Las Vegas. In addition, the company owns a 50% interest in and operates Grand Victoria, a riverboat in Elgin, Illinois, and owns a 53.5% interest in and operates MotorCity in Detroit, Michigan.
NOTE 1: As used in this release, operating cash flow represents net income adjusted to exclude income taxes, net interest expense, minority interest, noncash expenses (principally depreciation and amortization) and certain other expenses that are not considered directly related to ongoing operations, such as operating lease rent and preopening expenses. Operating cash flow is presented as a supplemental disclosure because it is widely viewed by investors as a key measure of operating performance in the gaming industry and it is also used as a principal basis for valuing gaming companies. Management utilizes operating cash flow in a similar manner to monitor and evaluate the relative performance of its various operating resorts, including the evaluation of management personnel at both the property and corporate level. Operating cash flow is not an accepted measure under Generally Accepted Accounting Principles ("GAAP") and should not be considered an alternative to GAAP measures of performance, such as net income or income from operations, or as an alternative to GAAP measures of liquidity, such as net
cash provided by operating activities. A reconciliation of net income to operating cash flow is provided in the financial schedules accompanying this release. Operating cash flow is sometimes referred to as earnings before interest, taxes, depreciation and amortization ("EBITDA"). Other gaming companies that report operating cash flow or EBITDA may calculate their results in a different manner than the company.
MANDALAY RESORT GROUP
Condensed Consolidated Statements of Income
(Dollars in thousands, except share data)
(UNAUDITED)
|
| Three Months Ended July 31, |
| Six Months Ended July 31, |
| ||||||||
|
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
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Revenues |
| $ | 644,835 |
| $ | 603,659 |
| $ | 1,261,345 |
| $ | 1,214,256 |
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Costs and expenses |
| (531,769 | ) | (505,872 | ) | (1,033,884 | ) | (999,975 | ) | ||||
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| ||||
|
| 113,066 |
| 97,787 |
| 227,461 |
| 214,281 |
| ||||
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Preopening expense |
| (269 | ) | (1,548 | ) | (357 | ) | (2,017 | ) | ||||
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Write-off of intangible asset |
| — |
| (13,000 | ) | — |
| (13,000 | ) | ||||
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| ||||
Earnings of unconsolidated affiliates |
| 23,007 |
| 25,299 |
| 45,747 |
| 55,868 |
| ||||
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Income from operations |
| 135,804 |
| 108,538 |
| 272,851 |
| 255,132 |
| ||||
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Interest expense |
| (52,542 | ) | (54,787 | ) | (105,704 | ) | (112,820 | ) | ||||
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Loss on early extinguishment of debt, net of related gain on swap termination |
| (6,327 | ) | — |
| (6,327 | ) | — |
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Other income (expense) |
| 3,910 |
| (2,239 | ) | 2,704 |
| 220 |
| ||||
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Minority interest |
| (15,358 | ) | (4,295 | ) | (29,214 | ) | (15,873 | ) | ||||
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Income before income tax |
| 65,487 |
| 47,217 |
| 134,310 |
| 126,659 |
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Income tax expense |
| (23,151 | ) | (17,883 | ) | (47,928 | ) | (46,605 | ) | ||||
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Income before cumulative effect of a change in accounting principle |
| 42,336 |
| 29,334 |
| 86,382 |
| 80,054 |
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Cumulative effect of a change in accounting principle for goodwill |
| — |
| — |
| — |
| (1,862 | ) | ||||
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Net income |
| $ | 42,336 |
| $ | 29,334 |
| $ | 86,382 |
| $ | 78,192 |
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Basic earnings per share |
| $ | 0.71 |
| $ | 0.43 |
| $ | 1.42 |
| $ | 1.14 |
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Diluted earnings per share |
| $ | 0.67 |
| $ | 0.41 |
| $ | 1.36 |
| $ | 1.10 |
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Average shares outstanding (basic) |
| 59,964,927 |
| 68,514,408 |
| 60,768,050 |
| 68,501,395 |
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Average shares outstanding (diluted) |
| 63,028,375 |
| 71,213,415 |
| 63,662,019 |
| 71,278,552 |
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Mandalay Resort Group
Reconciliation of Net Income to Operating Cash Flow and Other Information
(in thousands)
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
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MANDALAY BAY |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
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Net Income |
| $ | 17,907 |
| $ | 14,186 |
| $ | 35,268 |
| $ | 29,350 |
|
Income Tax Expense |
| 10,351 |
| 7,980 |
| 20,223 |
| 16,145 |
| ||||
Interest Expense |
| 5 |
| 6 |
| 11 |
| 11 |
| ||||
Other Expense (Income) |
| 71 |
| (14 | ) | 58 |
| (34 | ) | ||||
Income From Operations |
| 28,334 |
| 22,158 |
| 55,560 |
| 45,472 |
| ||||
Preopening |
| — |
| 741 |
| — |
| 1,146 |
| ||||
Operating Lease Rent |
| 4,604 |
| 7,235 |
| 11,517 |
| 14,594 |
| ||||
Depreciation/Amortization |
| 14,924 |
| 8,650 |
| 27,170 |
| 17,623 |
| ||||
Operating Cash Flow |
| $ | 47,862 |
| $ | 38,784 |
| $ | 94,247 |
| $ | 78,835 |
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Net Revenues |
| $ | 169,059 |
| $ | 142,576 |
| $ | 328,185 |
| $ | 282,112 |
|
Casino Revenues |
| $ | 46,694 |
| $ | 46,039 |
| $ | 94,101 |
| $ | 91,428 |
|
ADR |
| $ | 181 |
| $ | 161 |
| $ | 184 |
| $ | 167 |
|
Occupancy |
| 93.8 | % | 89.3 | % | 90.1 | % | 88.7 | % | ||||
REVPAR |
| $ | 170 |
| $ | 144 |
| $ | 166 |
| $ | 148 |
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|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
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LUXOR |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
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Net Income |
| $ | 13,978 |
| $ | 10,565 |
| $ | 30,687 |
| $ | 28,602 |
|
Income Tax Expense |
| 7,970 |
| 5,943 |
| 16,550 |
| 15,655 |
| ||||
Interest Expense |
| 4 |
| 33 |
| 8 |
| 39 |
| ||||
Other Expense (Income) |
| (6 | ) | 73 |
| 129 |
| 73 |
| ||||
Income From Operations |
| 21,946 |
| 16,614 |
| 47,374 |
| 44,369 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| 1,887 |
| 1,848 |
| 3,754 |
| 3,862 |
| ||||
Depreciation/Amortization |
| 5,855 |
| 4,814 |
| 11,027 |
| 9,402 |
| ||||
Operating Cash Flow |
| $ | 29,688 |
| $ | 23,276 |
| $ | 62,155 |
| $ | 57,633 |
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Net Revenues |
| $ | 100,828 |
| $ | 96,262 |
| $ | 198,469 |
| $ | 198,604 |
|
Casino Revenues |
| $ | 25,242 |
| $ | 25,083 |
| $ | 49,875 |
| $ | 53,385 |
|
ADR |
| $ | 98 |
| $ | 90 |
| $ | 101 |
| $ | 92 |
|
Occupancy |
| 89.6 | % | 85.0 | % | 88.3 | % | 89.2 | % | ||||
REVPAR |
| $ | 88 |
| $ | 77 |
| $ | 89 |
| $ | 82 |
|
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
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EXCALIBUR |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
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Net Income |
| $ | 12,684 |
| $ | 11,471 |
| $ | 26,061 |
| $ | 25,325 |
|
Income Tax Expense |
| 7,256 |
| 6,452 |
| 14,863 |
| 13,912 |
| ||||
Interest Expense |
| (1 | ) | 14 |
| 3 |
| 14 |
| ||||
Other Expense (Income) |
| (12 | ) | (18 | ) | (13 | ) | (18 | ) | ||||
Income From Operations |
| 19,927 |
| 17,919 |
| 40,914 |
| 39,233 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| 1,648 |
| 1,608 |
| 3,279 |
| 3,400 |
| ||||
Depreciation/Amortization |
| 3,133 |
| 2,921 |
| 5,657 |
| 5,814 |
| ||||
Operating Cash Flow |
| $ | 24,708 |
| $ | 22,448 |
| $ | 49,850 |
| $ | 48,447 |
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Net Revenues |
| $ | 79,623 |
| $ | 72,968 |
| $ | 156,230 |
| $ | 148,085 |
|
Casino Revenues |
| $ | 29,096 |
| $ | 25,871 |
| $ | 57,104 |
| $ | 52,891 |
|
ADR |
| $ | 71 |
| $ | 65 |
| $ | 73 |
| $ | 69 |
|
Occupancy |
| 93.7 | % | 92.8 | % | 93.6 | % | 94.0 | % | ||||
REVPAR |
| $ | 67 |
| $ | 60 |
| $ | 68 |
| $ | 65 |
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|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
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CIRCUS CIRCUS - LAS VEGAS |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
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Net Income |
| $ | 8,123 |
| $ | 8,277 |
| $ | 14,900 |
| $ | 17,107 |
|
Income Tax Expense |
| 4,629 |
| 4,655 |
| 8,483 |
| 9,410 |
| ||||
Interest Expense |
| 2 |
| 5 |
| 2 |
| 5 |
| ||||
Other Expense (Income) |
| (8 | ) | — |
| (10 | ) | (5 | ) | ||||
Income From Operations |
| 12,746 |
| 12,937 |
| 23,375 |
| 26,517 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| 816 |
| 798 |
| 1,622 |
| 1,684 |
| ||||
Depreciation/Amortization |
| 4,627 |
| 4,363 |
| 8,979 |
| 8,814 |
| ||||
Operating Cash Flow |
| $ | 18,189 |
| $ | 18,098 |
| $ | 33,976 |
| $ | 37,015 |
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Net Revenues |
| $ | 70,455 |
| $ | 68,648 |
| $ | 133,954 |
| $ | 133,838 |
|
Casino Revenues |
| $ | 28,068 |
| $ | 27,170 |
| $ | 53,442 |
| $ | 53,586 |
|
ADR |
| $ | 53 |
| $ | 51 |
| $ | 55 |
| $ | 54 |
|
Occupancy |
| 91.1 | % | 92.6 | % | 91.3 | % | 93.6 | % | ||||
REVPAR |
| $ | 48 |
| $ | 47 |
| $ | 50 |
| $ | 51 |
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|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
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GOLD STRIKE-TUNICA |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
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Net Income |
| $ | 3,458 |
| $ | 2,473 |
| $ | 6,690 |
| $ | 4,936 |
|
Income Tax Expense |
| 2,061 |
| 1,454 |
| 3,992 |
| 2,880 |
| ||||
Interest Expense |
| — |
| — |
| — |
| — |
| ||||
Other Expense (Income) |
| (4 | ) | (7 | ) | (8 | ) | (26 | ) | ||||
Income From Operations |
| 5,515 |
| 3,920 |
| 10,674 |
| 7,790 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| — |
| — |
| — |
| — |
| ||||
Depreciation/Amortization |
| 2,126 |
| 3,277 |
| 4,299 |
| 6,532 |
| ||||
Operating Cash Flow |
| $ | 7,641 |
| $ | 7,197 |
| $ | 14,973 |
| $ | 14,322 |
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Net Revenues |
| $ | 34,042 |
| $ | 31,873 |
| $ | 66,892 |
| $ | 62,393 |
|
Casino Revenues |
| $ | 29,293 |
| $ | 26,953 |
| $ | 57,656 |
| $ | 52,935 |
|
ADR |
| $ | 48 |
| $ | 56 |
| $ | 49 |
| $ | 56 |
|
Occupancy |
| 87.8 | % | 74.8 | % | 83.1 | % | 73.1 | % | ||||
REVPAR |
| $ | 42 |
| $ | 42 |
| $ | 41 |
| $ | 41 |
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|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
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LAUGHLIN PROPERTIES |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
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Net Income |
| $ | 516 |
| $ | 1,991 |
| $ | 3,054 |
| $ | 6,771 |
|
Income Tax Expense |
| 293 |
| 1,126 |
| 1,737 |
| 3,700 |
| ||||
Interest Expense |
| — |
| — |
| — |
| — |
| ||||
Other Expense (Income) |
| (27 | ) | — |
| (27 | ) | (29 | ) | ||||
Income From Operations |
| 782 |
| 3,117 |
| 4,764 |
| 10,442 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| — |
| — |
| — |
| — |
| ||||
Depreciation/Amortization |
| 2,412 |
| 2,630 |
| 4,797 |
| 5,352 |
| ||||
Operating Cash Flow |
| $ | 3,194 |
| $ | 5,747 |
| $ | 9,561 |
| $ | 15,794 |
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|
|
|
|
| ||||
Net Revenues |
| $ | 36,738 |
| $ | 36,622 |
| $ | 75,912 |
| $ | 79,574 |
|
Casino Revenues |
| $ | 23,744 |
| $ | 23,539 |
| $ | 49,944 |
| $ | 52,411 |
|
ADR |
| $ | 29 |
| $ | 35 |
| $ | 30 |
| $ | 35 |
|
Occupancy |
| 81.1 | % | 72.5 | % | 81.3 | % | 78.2 | % | ||||
REVPAR |
| $ | 24 |
| $ | 25 |
| $ | 24 |
| $ | 27 |
|
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
| ||||||||
CIRCUS CIRCUS - RENO |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income |
| $ | 2,396 |
| $ | 3,411 |
| $ | 2,620 |
| $ | 4,488 |
|
Income Tax Expense |
| 1,363 |
| 1,919 |
| 1,490 |
| 2,499 |
| ||||
Interest Expense |
| — |
| — |
| — |
| — |
| ||||
Other Expense (Income) |
| (7 | ) | (7 | ) | 4 |
| 9 |
| ||||
Income From Operations |
| 3,752 |
| 5,323 |
| 4,114 |
| 6,996 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| — |
| — |
| — |
| — |
| ||||
Depreciation/Amortization |
| 1,459 |
| 1,791 |
| 2,930 |
| 3,599 |
| ||||
Operating Cash Flow |
| $ | 5,211 |
| $ | 7,114 |
| $ | 7,044 |
| $ | 10,595 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenues |
| $ | 31,020 |
| $ | 30,500 |
| $ | 55,713 |
| $ | 57,552 |
|
Casino Revenues |
| $ | 15,286 |
| $ | 15,545 |
| $ | 27,312 |
| $ | 29,419 |
|
ADR |
| $ | 54 |
| $ | 50 |
| $ | 52 |
| $ | 50 |
|
Occupancy |
| 87.9 | % | 85.0 | % | 80.8 | % | 81.8 | % | ||||
REVPAR |
| $ | 47 |
| $ | 43 |
| $ | 42 |
| $ | 41 |
|
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
| ||||||||
GOLD STRIKE PROPERTIES |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income |
| $ | 168 |
| $ | 167 |
| $ | 744 |
| $ | 1,266 |
|
Income Tax Expense |
| 96 |
| 98 |
| 424 |
| 690 |
| ||||
Interest Expense |
| — |
| — |
| — |
| — |
| ||||
Other Expense (Income) |
| (7 | ) | (30 | ) | 12 |
| (43 | ) | ||||
Income From Operations |
| 257 |
| 235 |
| 1,180 |
| 1,913 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| — |
| — |
| — |
| — |
| ||||
Depreciation/Amortization |
| 876 |
| 1,386 |
| 1,743 |
| 2,790 |
| ||||
Operating Cash Flow |
| $ | 1,133 |
| $ | 1,621 |
| $ | 2,923 |
| $ | 4,703 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenues |
| $ | 18,856 |
| $ | 20,111 |
| $ | 38,230 |
| $ | 42,343 |
|
Casino Revenues |
| $ | 14,676 |
| $ | 15,964 |
| $ | 29,849 |
| $ | 33,498 |
|
ADR |
| $ | 31 |
| $ | 31 |
| $ | 31 |
| $ | 32 |
|
Occupancy |
| 60.4 | % | 58.9 | % | 62.6 | % | 64.0 | % | ||||
REVPAR |
| $ | 19 |
| $ | 18 |
| $ | 19 |
| $ | 20 |
|
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
| ||||||||
MOTORCITY CASINO ** |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income |
| $ | 33,050 |
| $ | 9,243 |
| $ | 62,866 |
| $ | 34,153 |
|
Income Tax Expense |
| — |
| — |
| — |
| — |
| ||||
Interest Expense |
| 561 |
| 1,278 |
| 1,285 |
| 2,709 |
| ||||
Other Expense (Income) |
| (26 | ) | (147 | ) | (55 | ) | (352 | ) | ||||
Income From Operations |
| 33,585 |
| 10,374 |
| 64,096 |
| 36,510 |
| ||||
Write-off of Intangible Asset |
| — |
| 13,000 |
| — |
| 13,000 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| — |
| — |
| — |
| — |
| ||||
Depreciation/Amortization |
| 2,423 |
| 10,366 |
| 4,750 |
| 20,505 |
| ||||
Operating Cash Flow |
| $ | 36,008 |
| $ | 33,740 |
| $ | 68,846 |
| $ | 70,015 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenues |
| $ | 101,309 |
| $ | 101,028 |
| $ | 202,347 |
| $ | 203,978 |
|
Casino Revenues |
| $ | 96,649 |
| $ | 96,343 |
| $ | 192,879 |
| $ | 194,298 |
|
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
| ||||||||
CONSOLIDATED |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
Net Income |
| $ | 42,336 |
| $ | 29,334 |
| $ | 86,382 |
| $ | 78,192 |
|
Cumulative Effect of a Change in Accounting Principle |
| — |
| — |
| — |
| 1,862 |
| ||||
Income Tax Expense |
| 23,151 |
| 17,883 |
| 47,928 |
| 46,605 |
| ||||
Minority Interest |
| 15,358 |
| 4,295 |
| 29,214 |
| 15,873 |
| ||||
Interest Expense |
| 52,542 |
| 54,787 |
| 105,704 |
| 112,820 |
| ||||
Loss on Early Extinguishment of Debt, |
| 6,327 |
| — |
| 6,327 |
| — |
| ||||
Other Expense (Income) |
| (3,910 | ) | 2,239 |
| (2,704 | ) | (220 | ) | ||||
Income from Operations |
| 135,804 |
| 108,538 |
| 272,851 |
| 255,132 |
| ||||
Write-off of Intangible Asset |
| — |
| 13,000 |
| — |
| 13,000 |
| ||||
Preopening |
| 269 |
| 1,548 |
| 357 |
| 2,017 |
| ||||
Operating Lease Rent |
| 8,955 |
| 12,261 |
| 20,172 |
| 25,186 |
| ||||
Depreciation/Amortization |
| 39,635 |
| 41,632 |
| 74,772 |
| 82,647 |
| ||||
Minority Interest in MotorCity Operating Cash Flow |
| (16,743 | ) | (15,690 | ) | (32,013 | ) | (32,557 | ) | ||||
Mandalay’s Share of Depreciation From Unconsolidated Affiliates |
| 4,173 |
| 4,187 |
| 8,309 |
| 8,387 |
| ||||
Operating Cash Flow |
| $ | 172,093 |
| $ | 165,476 |
| $ | 344,448 |
| $ | 353,812 |
|
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
| ||||||||
SILVER LEGACY (50% - owned) ** |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income |
| $ | 6,056 |
| $ | 5,734 |
| $ | 6,736 |
| $ | 10,518 |
|
Income Tax Expense |
| — |
| — |
| — |
| — |
| ||||
Interest Expense |
| 3,332 |
| 4,250 |
| 7,626 |
| 7,798 |
| ||||
Other Expense (Income) |
| (75 | ) | (14 | ) | 226 |
| (24 | ) | ||||
Income From Operations |
| 9,313 |
| 9,970 |
| 14,588 |
| 18,292 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| — |
| — |
| — |
| — |
| ||||
Depreciation/Amortization |
| 2,705 |
| 3,026 |
| 5,333 |
| 6,176 |
| ||||
Operating Cash Flow |
| $ | 12,018 |
| $ | 12,996 |
| $ | 19,921 |
| $ | 24,468 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenues |
| $ | 43,149 |
| $ | 44,231 |
| $ | 78,752 |
| $ | 84,390 |
|
Casino Revenues |
| $ | 25,323 |
| $ | 26,295 |
| $ | 45,969 |
| $ | 49,642 |
|
ADR |
| $ | 64 |
| $ | 65 |
| $ | 62 |
| $ | 63 |
|
Occupancy |
| 92.1 | % | 85.5 | % | 85.7 | % | 85.2 | % | ||||
REVPAR |
| $ | 59 |
| $ | 56 |
| $ | 53 |
| $ | 54 |
|
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
| ||||||||
GRAND VICTORIA (50% - owned) ** |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income |
| $ | 18,160 |
| $ | 26,685 |
| $ | 39,772 |
| $ | 57,056 |
|
Income Tax Expense |
| — |
| — |
| — |
| — |
| ||||
Interest Expense |
| — |
| — |
| — |
| — |
| ||||
Other Expense (Income) |
| (29 | ) | (152 | ) | (150 | ) | (362 | ) | ||||
Income From Operations |
| 18,131 |
| 26,533 |
| 39,622 |
| 56,694 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| — |
| — |
| — |
| — |
| ||||
Depreciation/Amortization |
| 2,424 |
| 2,098 |
| 4,759 |
| 4,113 |
| ||||
Operating Cash Flow |
| $ | 20,555 |
| $ | 28,631 |
| $ | 44,381 |
| $ | 60,807 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenues |
| $ | 95,425 |
| $ | 102,475 |
| $ | 187,945 |
| $ | 206,670 |
|
Casino Revenues |
| $ | 93,264 |
| $ | 100,095 |
| $ | 183,541 |
| $ | 201,679 |
|
|
| Three Months Ended July 31 |
| Six Months Ended July 31 |
| ||||||||
MONTE CARLO (50% - owned) ** |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income |
| $ | 19,112 |
| $ | 14,410 |
| $ | 38,297 |
| $ | 37,187 |
|
Income Tax Expense |
| — |
| — |
| — |
| — |
| ||||
Interest Expense |
| — |
| 418 |
| 1 |
| 989 |
| ||||
Other Expense (Income) |
| (15 | ) | (55 | ) | (87 | ) | (111 | ) | ||||
Income From Operations |
| 19,097 |
| 14,773 |
| 38,211 |
| 38,065 |
| ||||
Preopening |
| — |
| — |
| — |
| — |
| ||||
Operating Lease Rent |
| — |
| — |
| — |
| — |
| ||||
Depreciation/Amortization |
| 3,216 |
| 3,250 |
| 6,523 |
| 6,483 |
| ||||
Operating Cash Flow |
| $ | 22,313 |
| $ | 18,023 |
| $ | 44,734 |
| $ | 44,548 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenues |
| $ | 67,348 |
| $ | 62,237 |
| $ | 133,000 |
| $ | 131,464 |
|
Casino Revenues |
| $ | 24,076 |
| $ | 23,062 |
| $ | 47,536 |
| $ | 49,192 |
|
ADR |
| $ | 101 |
| $ | 91 |
| $ | 100 |
| $ | 98 |
|
Occupancy |
| 92.4 | % | 91.8 | % | 94.4 | % | 93.5 | % | ||||
REVPAR |
| $ | 93 |
| $ | 84 |
| $ | 94 |
| $ | 92 |
|
** Amounts represent 100% of totals for the property.
###
