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Gambling industry

Circus Circus Enterprises Reports Record Operating Results

Strategic Insights

— 1 min read

Circus Circus Enterprises, a leading casino and entertainment company, has posted record operating results, fueled by the success of its luxury resorts and riverboat casinos. The company's financial performance was driven by the opening of Circus Circus-Tunica on August 29, 1994, and the continued success of Luxor, its Egyptian-themed resort. The third quarter results demonstrate the company's ability to deliver strong operating income, cash flow, and returns on investment.

Key Takeaways:

  • Circus Circus reported net income of $36,596,000, or 43 cents per share, in the third quarter, a 76% increase from the prior year.
  • Operating cash flow before preopening expenses increased 30% to $42.7 million, while operating income before preopening expenses rose 27% to $35.4 million.
  • Excluding non-recurring items, earnings per share were 45 cents for the third quarter, up from 40 cents in the comparable period last year.
  • Circus Circus-Tunica generated $7.5 million in operating cash flow before preopening expenses during its first two months of operation.
  • Luxor, in its first full year of operations, posted operating cash flow of $92 million on revenues of $288 million, a cash flow margin of 32%.
  • Interest expense increased $6.7 million for the quarter due to lower capitalized interest and higher borrowings.

Statistics:

  • Revenue increase: 24% in the third quarter compared to the prior year.
  • Operating cash flow before preopening expenses: $42.7 million, up 30% from the prior year.
  • Operating income before preopening expenses: $35.4 million, up 27% from the prior year.
  • Net income: $36,596,000, up 76% from the prior year.
  • Earnings per share: 43 cents, up 79% from the prior year (excluding non-recurring items: 45 cents).
  • Cash flow margin at Luxor: 32% in its first full year of operations.
  • Capitalized interest decrease: $5.8 million for the three months ended October 31, 1994, compared to the same period last year.

Sources:

  • Business Wire, "Circus Circus Enterprises Reports Record Operating Results", November 21, 1994.
  • -0- CONTACT: Circus Circus Enterprises Inc., Las Vegas Dan Copp, 702/734-0410, ext. 3975.

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