Nov 20, 2002 09:30 ET

Mandalay Resort Group Previews Earnings

LAS VEGAS, Nov. 20 /PRNewswire-FirstCall/ -- Mandalay Resort Group (NYSE: MBG) today announced that for the third quarter ended October 31, 2002, it expects to report $.50 per share on an operating basis against $.32 in the year-prior third quarter. These results are a record for a third quarter, while last year's quarter was impaired by a travel decline following the events of 9-11.

The win percentage on table games was higher than normal at Mandalay Bay in last year's quarter, while it was sub-par in this October, essentially during the last week -- negatively affecting results by $.02 in the quarter. The company noted that its REVPAR comparisons (revenue per available room) at its five resorts on the Las Vegas Strip were even with the quarter last year, although trailing the third quarter of the 2000 calendar year (when the company's earnings were $.38 per share).

Also, in this year's quarter the company bore the full impact of a substantially higher tax rate on casino revenues at its 50% owned gaming vessel, the Grand Victoria in Elgin, Illinois.

During the third quarter, Mandalay repurchased 3.0 million shares of its common stock in the open market and intends to actively continue its program to reduce its outstanding float by an additional 4.7 million shares, as permitted under its current share repurchase authorization and as previously announced.

Mandalay will release its results for the third quarter, and conduct a conference call via telephone and Webcast, on December 5, at 1:30 p.m. Pacific Time. The call will be broadcast live via the internet at www.CCBN.com . A recording of conference call will be available on the company's website at www.mandalayresortgroup.com from 3:30 p.m. Pacific Time on December 5, 2002 through 3:30 p.m. Pacific Time on December 10, 2002. Those parties interested in listening to the investor conference call via telephone should dial 212-346-0204. A telephone replay of the conference call will be available beginning at 3:30 p.m. Pacific Time on December 5, 2002, and ending at 3:30 p.m. on December 10, 2002. To access the rebroadcast, please dial (800) 633-8284 for domestic calls, or (402) 977-9140 for international calls and enter code 21033935.

This press release contains "forward-looking statements" within the meaning of the federal securities law, including statements concerning the company's expected operating results and anticipated share repurchase. The forward-looking statements in this press release involve risks and uncertainties which 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 in the company's annual report on Form 10-K for the year ended January 31, 2002.

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.