LAS VEGAS— MGM Mirage said it would temporarily suspend development of its resort in Atlantic City to pursue growth opportunities, according to a Reuters report. The move to put a hold on the yet-to-be-named resort on land MGM Mirage owns at Renaissance Pointe in Atlantic City, will result in a material increase in free cash flow to cut debt and buyback shares, said the company. According to the report, MGM Mirage will also suspend the capitalization of interest associated with this development and will expense the interest until the project resumes. This will have no impact on operating cash flow but will reduce net earnings. The capitalization of such interest has boosted earnings per share by 5 cents a quarter during the first nine months of 2002. The company said its board has decided to direct its excess free cash flow to improve its market leading position at its resorts in Las Vegas, Detroit and Biloxi and strengthen its balance sheet and buyback shares. The company still remains involved in its 50% ownership position of the Borgata resort, whose development remains ongoing. Reuters
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