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Best of Howard Stutz

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Howard Stutz
 

MGM Mirage offers preview of earnings

8 February 2008

LAS VEGAS, Nevada -- MGM Mirage told investors Thursday the company expects to report earnings per share of $2.70 to $2.90 when it formally releases its fourth-quarter earnings this month.

The announcement, made after the close of trading on the New York Stock Exchange, was done because MGM Mirage and its joint-venture partner Dubai World are seeking to purchase up to 15 million shares of the company's stock at $80 a share. MGM Mirage will purchase 8.5 million shares and Dubai World will buy 6.5 million shares. The tender offer is scheduled to close at midnight Thursday Feb. 14.

The company said the fourth-quarter results excluded a gain of approximately $1 billion before income taxes from Dubai World's Nov. 15 contribution for its share of the CityCenter project.

MGM Mirage also said Thursday that it was unable to determine the financial impact of Jan. 25 rooftop fire that has closed the Monte Carlo. The company said it had substantial property damage and business interruption insurance coverage on the hotel-casino.

In addition, growing construction costs will kick the price of CityCenter above $8 billion. MGM Mirage CFO Dan D'Arrigo said the budget will increase between $300 million to $600 million from the previous estimate of $7.8 billion.

Shares of MGM Mirage closed at $71.81 Thursday, up $2.12 or 3.04 percent.

MGM Mirage offers preview of earnings is republished from Online.CasinoCity.com.