Press release from PR Newswire
MGM Resorts International Reports Third Quarter Results
Thursday, November 03, 2011
LAS VEGAS, Nov. 3, 2011 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today reported improved financial results for the third quarter ended September 30, 2011. Diluted earnings per share attributable to MGM Resorts International was a loss of $0.25 per share compared to a loss of $0.72 per share in the prior year third quarter. The current quarter included an impairment charge of $0.11 per share compared to impairment charges of $0.51 in the prior year period. The current quarter results also include a full quarter of results related to MGM China Holdings Limited (?MGM China?), which the Company began consolidating as of June 3, 2011.
Key results for the third quarter of 2011 included the following:
- Consolidated net revenue was $2.2 billion compared to $1.6 billion in the prior year quarter; excluding MGM China, consolidated net revenues increased 3% compared to the prior year quarter;
- Rooms revenue from wholly owned domestic resorts increased 11% with a 13% increase in REVPAR(1) at the Company?s Las Vegas Strip resorts;
- Consolidated operating income was $113 million compared to an operating loss of $206 million in the third quarter of 2010;
- Consolidated Adjusted EBITDA(2) was $444 million in the 2011 quarter compared to $280 million in the 2010 quarter;
- The Company?s wholly owned domestic resorts earned Adjusted Property EBITDA of $348 million, up 10% compared to the prior year quarter;
- MGM China?s Adjusted Property EBITDA was $139 million ($150 million before branding fees) compared to $84 million in the prior year quarter; and
- CityCenter?s Adjusted Property EBITDA related to resort operations increased 26% to $50 million.
?Our results show the inherent operating leverage in our business as this quarter represents the third consecutive quarter of year-over-year revenue, Adjusted Property EBITDA and Adjusted Property EBITDA margin growth for our wholly owned domestic resorts. Our forward booking trends remain strong both for our consumer retail segments and corporate events,? said Jim Murren, MGM Resorts International Chairman and CEO. ?MGM China?s operating trends continue to improve with cash flow before branding fees increasing approximately 80% year-over-year. We are extremely pleased with our Cotai development plans while at the same time have some exciting expansion opportunities within our existing MGM Macau property.?
Certain Items Affecting Third Quarter Results
In the current quarter, the Company recorded an impairment charge of $80 million (or $0.11 per share, net of tax) related to Circus Circus Reno. The prior year quarter results include impairment charges totaling $357 million (or $0.51 per diluted share, net of tax) consisting of impairment charges of $191 million related to the Company?s investment in CityCenter, $38 million related to CityCenter?s residential real estate inventory, and $128 million related to the Company?s Borgata investment.
The following table lists items that affect the comparability of the current and prior year quarterly results in addition to the consolidation of MGM China (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):
Three months ended September 30, | 2011 | 2010 | |
Property transactions, net: | |||
Investment in CityCenter impairment charge | $? | $(0.28) | |
Investment in Borgata impairment charge | ? | (0.17) | |
Circus Circus Reno impairment charge | (0.11) | ? | |
Income (loss) from unconsolidated affiliates: | |||
CityCenter residential impairment charge | ? | (0.06) | |
CityCenter forfeited residential deposits income | ? | 0.02 | |
Wholly Owned Domestic Resorts
Casino revenue related to wholly owned domestic resorts decreased 2% compared to the prior year quarter. The overall table games hold percentage in the third quarter of 2011 was near the low end of the Company?s normal range of 19% to 23%. The overall table games hold percentage in the prior year was near the mid-point of the Company?s normal range. Slots revenue increased 4% compared to the prior year quarter, with an increase of 6% at the Company?s Las Vegas Strip resorts.
Rooms revenue increased 11% with Las Vegas Strip REVPAR up 13%. The following table shows key hotel statistics for the Company?s Las Vegas Strip resorts:
Three months ended September 30, | 2011 | 2010 | |
Occupancy % | 95% | 93% | |
Average Daily Rate (ADR) | $124 | $111 | |
Revenue per Available Room (REVPAR) | $117 | $104 | |
Operating income for the Company?s wholly owned domestic resorts for the third quarter of 2011 was $130 million. Operating income was negatively affected by an $80 million impairment charge at Circus Circus Reno related to the carrying value of its long-lived assets. Excluding the impairment charge, operating income increased 28% compared to the third quarter of 2010. Adjusted Property EBITDA was $348 million in the 2011 quarter, a 10% increase compared to $315 million in the 2010 quarter.
MGM China
The following are the key results for MGM China on a pro forma basis:
- MGM China earned net revenues of $623 million for the third quarter of 2011 compared to $362 million in the third quarter of 2010. The increase was driven by year-over-year increases in volume for VIP table games, main floor table games, and slots of 83%, 13%, and 52%, respectively. VIP table games hold percentage was within our expected range of 2.7% to 3.0% in the current and prior year periods; and
- Adjusted Property EBITDA increased to $139 million and included approximately $11 million of expense related to the branding agreement between MGM China and an entity jointly owned by the Company and Ms. Pansy Ho.
MGM China completed its initial public offering of shares on The Stock Exchange of Hong Kong Limited on June 3, 2011 and the Company acquired an additional 1% interest in MGM China, which owns the MGM Macau resort and casino. This acquisition increased the Company?s ownership interest to 51% and, as a result, the Company began consolidating MGM China as of June 3, 2011. Prior to June 3, 2011, the results of MGM Macau were accounted for under the equity method of accounting.
The schedules accompanying this release provide pro forma information for MGM China, presented for the three and nine month periods ended September 30, 2011 and 2010, as if the acquisition of the Company?s controlling interest occurred as of January 1, 2010.
Income (Loss) from Unconsolidated Affiliates
The following table summarizes information related to the Company?s income (loss) from unconsolidated affiliates:
Three months ended September 30, | 2011 | 2010 | |
(In thousands) | |||
CityCenter | $(7,723) | $ (37,893) | |
MGM Macau | ? | 29,372 | |
Other | 8,262 | 9,924 | |
$ 539 | $ 1,403 | ||
The Company?s share of CityCenter?s operating losses in the prior year includes the effect of a residential inventory impairment charge of $38 million.
Results for CityCenter Holdings, LLC for the third quarter of 2011 include the following (see schedules accompanying this release for further detail on CityCenter?s third quarter results):
- Net revenue from resort operations increased to $255 million compared to $248 million in the prior year quarter;
- Adjusted Property EBITDA from resort operations was $50 million, an increase of 26% compared to the prior year quarter;
- Aria?s Adjusted Property EBITDA was $40 million. Aria?s hold percentage was above the high end of its normal range in the current quarter, but lower than the prior year hold percentage by approximately 400 basis points;
- Aria?s occupancy percentage was 87% and its ADR was $200, resulting in REVPAR of $173, a 22% increase compared to the prior year third quarter;
- Vdara earned $5 million in Adjusted Property EBITDA; and
- Crystals earned $6 million in Adjusted Property EBITDA.
Financial Position
In September 2011, the Company borrowed an additional $879 million under its senior credit facility to increase its capacity for issuing additional secured indebtedness; these borrowings were repaid immediately after quarter end. As a result, the Company had a higher than normal cash balance at September 30, 2011 of $1.8 billion, which also included approximately $494 million of cash and cash equivalents related to MGM China. At September 30, 2011, the Company had approximately $13.6 billion of indebtedness (with a carrying value of $13.5 billion) including approximately $551 million of borrowings outstanding on the MGM Macau credit facility. Giving effect to the repayment it made on October 3, 2011, the Company had approximately $1.2 billion of available borrowing capacity under its senior credit facility.
?We continue to make strategic investments to maximize earnings and are focused on domestic and international expansion opportunities,? said Dan D?Arrigo, MGM Resorts International Executive Vice President, CFO and Treasurer. ?We believe cash flow at our wholly owned resorts, CityCenter and MGM China will continue to improve, allowing us to further strengthen our balance sheet.?
Conference Call Details
MGM Resorts International will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the investors section or by calling 1-877-274-9221 for Domestic callers and 1-706-634-6528 for International callers. The conference call access code is 17370604. A replay of the call will be available through Thursday, November 10, 2011. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 17370604. The call will also be archived at www.mgmresorts.com.
(1) REVPAR is hotel Revenue per Available Room.
(2)?Adjusted EBITDA? is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, and property transactions, net, and the gain on the MGM China transaction. ?Adjusted Property EBITDA? is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts stock option plan, which is not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted Property EBITDA for MGM China. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.
Management believes that while items excluded from Adjusted EBITDA and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company?s earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, pre-opening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company?s resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period.
In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company?s operating resorts? performance.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world?s leading global hospitality companies, operating a peerless portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. In addition to its 51% interest in MGM China Holdings Limited, which owns the MGM Macau resort and casino, the Company has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three other properties in Nevada and Illinois. One of those investments is CityCenter, an unprecedented urban resort destination on the Las Vegas Strip featuring its centerpiece ARIA Resort & Casino. Leveraging MGM Resorts? unmatched amenities, the M life loyalty program delivers one-of-a-kind experiences, insider privileges and personalized rewards for guests at the Company?s renowned properties nationwide. Through its hospitality management subsidiary, the Company holds a growing number of development and management agreements for casino and non-casino resort projects around the world. MGM Resorts International supports responsible gaming and has implemented the American Gaming Association?s Code of Conduct for Responsible Gaming at its gaming properties. The Company has been honored with numerous awards and recognitions for its industry-leading Diversity Initiative, its community philanthropy programs and the Company?s commitment to sustainable development and operations. For more information about MGM Resorts International, visit the Company?s website at www.mgmresorts.com.
Statements in this release that are not historical facts are forward-looking statements involving risks and/or uncertainties, including those described in the company's public filings with the Securities and Exchange Commission. We have based forward-looking statements on management?s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding future operating results, liquidity to pay future indebtedness and potential economic recoveries. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which we operate and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in our Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(In thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | September 30, | September 30, | |||||||
2011 | 2010 | 2011 | 2010 | |||||||
Revenues: | ||||||||||
Casino | $ 1,241,959 | $ 643,395 | $ 2,629,674 | $ 1,862,039 | ||||||
Rooms | 405,173 | 352,766 | 1,170,301 | 1,039,472 | ||||||
Food and beverage | 369,484 | 343,180 | 1,078,268 | 1,019,553 | ||||||
Entertainment | 132,350 | 123,907 | 382,037 | 364,524 | ||||||
Retail | 55,509 | 52,618 | 155,951 | 147,569 | ||||||
Other | 128,204 | 124,033 | 371,253 | 354,288 | ||||||
Reimbursed costs | 87,144 | 88,551 | 262,914 | 272,235 | ||||||
2,419,823 | 1,728,450 | 6,050,398 | 5,059,680 | |||||||
Less: Promotional allowances | (186,236) | (161,333) | (497,975) | (478,981) | ||||||
2,233,587 | 1,567,117 | 5,552,423 | 4,580,699 | |||||||
Expenses: | ||||||||||
Casino | 795,652 | 356,218 | 1,632,382 | 1,067,025 | ||||||
Rooms | 125,864 | 111,711 | 366,736 | 320,466 | ||||||
Food and beverage | 214,412 | 197,836 | 628,559 | 585,123 | ||||||
Entertainment | 96,889 | 91,129 | 279,605 | 272,386 | ||||||
Retail | 32,641 | 32,093 | 94,279 | 90,671 | ||||||
Other | 90,021 | 88,144 | 256,710 | 250,298 | ||||||
Reimbursed costs | 87,144 | 88,551 | 262,914 | 272,235 | ||||||
General and administrative | 304,049 | 292,456 | 875,193 | 850,914 | ||||||
Corporate expense | 43,523 | 30,715 | 120,024 | 87,543 | ||||||
Preopening and start-up expenses | - | 30 | (316) | 4,061 | ||||||
Property transactions, net | 81,837 | 326,681 | 82,828 | 1,453,652 | ||||||
Gain on MGM China transaction | - | - | (3,496,005) | - | ||||||
Depreciation and amortization | 249,520 | 158,857 | 579,384 | 486,757 | ||||||
2,121,552 | 1,774,421 | 1,682,293 | 5,741,131 | |||||||
Income (loss) from unconsolidated affiliates | 539 | 1,403 | 95,909 | (105,709) | ||||||
Operating income (loss) | 112,574 | (205,901) | 3,966,039 | (1,266,141) | ||||||
Non-operating income (expense): | ||||||||||
Interest expense | (272,542) | (285,139) | (812,680) | (840,483) | ||||||
Non-operating items from unconsolidated affiliates | (24,692) | (27,185) | (92,984) | (82,109) | ||||||
Other, net | (1,595) | 7,298 | (18,567) | 157,742 | ||||||
(298,829) | (305,026) | (924,231) | (764,850) | |||||||
Income (loss) before income taxes | (186,255) | (510,927) | 3,041,808 | (2,030,991) | ||||||
Benefit for income taxes | 79,680 | 192,936 | 212,437 | 732,783 | ||||||
Net income (loss) | (106,575) | (317,991) | 3,254,245 | (1,298,208) | ||||||
Less: net income attributable to noncontrolling interests | (17,211) | - | (25,917) | - | ||||||
Net income (loss) attributable to MGM Resorts International | $ (123,786) | $ (317,991) | $ 3,228,328 | $ (1,298,208) | ||||||
Per share of common stock: | ||||||||||
Basic: | ||||||||||
Net Income (loss) attributable to MGM Resorts International | $ (0.25) | $ (0.72) | $ 6.61 | $ (2.94) | ||||||
Weighted average shares outstanding | 488,636 | 441,328 | 488,595 | 441,289 | ||||||
Diluted: | ||||||||||
Net Income (loss) attributable to MGM Resorts International | $ (0.25) | $ (0.72) | $ 5.83 | $ (2.94) | ||||||
Weighted average shares outstanding | 488,636 | 441,328 | 558,544 | 441,289 | ||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(In thousands, except share data) | |||||||||
(Unaudited) | |||||||||
September 30, | December 31, | ||||||||
2011 | 2010 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ 1,815,125 | $ 498,964 | |||||||
Accounts receivable, net | 463,407 | 321,894 | |||||||
Inventories | 104,279 | 96,392 | |||||||
Income tax receivable | - | 175,982 | |||||||
Deferred income taxes | 79,458 | 110,092 | |||||||
Prepaid expenses and other | 259,538 | 252,321 | |||||||
Total current assets | 2,721,807 | 1,455,645 | |||||||
Property and equipment, net | 14,868,394 | 14,554,350 | |||||||
Other assets: | |||||||||
Investments in and advances to unconsolidated affiliates | 1,659,719 | 1,923,155 | |||||||
Goodwill | 2,905,378 | 86,353 | |||||||
Other intangible assets, net | 5,120,662 | 342,804 | |||||||
Deposits and other assets, net | 577,063 | 598,738 | |||||||
Total other assets | 10,262,822 | 2,951,050 | |||||||
$ 27,853,023 | $ 18,961,045 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ 158,477 | $ 167,084 | |||||||
Income taxes payable | 2,639 | - | |||||||
Current portion of long-term debt | 351,608 | - | |||||||
Accrued interest on long-term debt | 240,780 | 211,914 | |||||||
Other accrued liabilities | 1,261,843 | 867,223 | |||||||
Total current liabilities | 2,015,347 | 1,246,221 | |||||||
Deferred income taxes | 2,603,418 | 2,469,333 | |||||||
Long-term debt | 13,099,074 | 12,047,698 | |||||||
Other long-term obligations | 193,578 | 199,248 | |||||||
Stockholders' equity: | |||||||||
Common stock, $.01 par value: authorized 1,000,000,000 shares, | |||||||||
issued and outstanding 488,643,408 and 488,513,351 shares | 4,886 | 4,885 | |||||||
Capital in excess of par value | 4,085,783 | 4,060,826 | |||||||
Retained earnings (accumulated deficit) | 2,161,463 | (1,066,865) | |||||||
Accumulated other comprehensive loss | (3,276) | (301) | |||||||
Total MGM Resorts International stockholders' equity | 6,248,856 | 2,998,545 | |||||||
Noncontrolling interests | 3,692,750 | - | |||||||
Total equity | 9,941,606 | 2,998,545 | |||||||
$ 27,853,023 | $ 18,961,045 | ||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | |||||||||||
SUPPLEMENTAL DATA - NET REVENUES | |||||||||||
(In thousands) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Bellagio | $ 275,884 | $ 270,219 | $ 805,892 | $ 769,312 | |||||||
MGM Grand Las Vegas | 243,037 | 232,667 | 707,618 | 711,335 | |||||||
Mandalay Bay | 199,166 | 186,285 | 587,525 | 548,019 | |||||||
The Mirage | 140,989 | 152,536 | 433,912 | 426,062 | |||||||
Luxor | 88,203 | 81,851 | 252,420 | 239,979 | |||||||
New York-New York | 68,449 | 65,078 | 202,147 | 187,805 | |||||||
Excalibur | 67,831 | 65,930 | 196,341 | 191,320 | |||||||
Monte Carlo | 65,321 | 57,786 | 193,602 | 168,965 | |||||||
Circus Circus Las Vegas | 56,559 | 52,541 | 149,694 | 143,176 | |||||||
MGM Grand Detroit | 139,049 | 133,415 | 425,189 | 407,629 | |||||||
Beau Rivage | 89,713 | 87,006 | 261,448 | 256,579 | |||||||
Gold Strike Tunica | 40,415 | 41,265 | 108,485 | 117,634 | |||||||
Other resort operations | 34,759 | 33,888 | 96,840 | 96,793 | |||||||
Wholly owned domestic resorts | 1,509,375 | 1,460,467 | 4,421,113 | 4,264,608 | |||||||
MGM China(1) | 623,050 | - | 816,034 | - | |||||||
Management and other operations | 101,162 | 106,650 | 315,276 | 316,091 | |||||||
$ 2,233,587 | $ 1,567,117 | $ 5,552,423 | $ 4,580,699 | ||||||||
(1) For the nine months ended September 30, 2011, represents the net revenues of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through September 30, 2011. | |||||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | |||||||||||
SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA | |||||||||||
(In thousands) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Bellagio | $ 74,251 | $ 75,858 | $ 205,522 | $ 195,137 | |||||||
MGM Grand Las Vegas | 42,221 | 40,011 | 114,646 | 130,604 | |||||||
Mandalay Bay | 41,372 | 30,435 | 129,417 | 96,177 | |||||||
The Mirage | 25,406 | 31,980 | 82,145 | 80,624 | |||||||
Luxor | 21,065 | 14,114 | 60,020 | 44,455 | |||||||
New York-New York | 22,738 | 21,943 | 66,089 | 59,561 | |||||||
Excalibur | 17,463 | 15,881 | 51,974 | 49,158 | |||||||
Monte Carlo | 14,466 | 7,930 | 43,870 | 24,038 | |||||||
Circus Circus Las Vegas | 8,898 | 6,126 | 20,524 | 13,350 | |||||||
MGM Grand Detroit | 39,897 | 40,466 | 125,593 | 118,436 | |||||||
Beau Rivage | 25,501 | 17,637 | 57,925 | 51,040 | |||||||
Gold Strike Tunica | 13,464 | 11,704 | 21,219 | 31,590 | |||||||
Other resort operations | 852 | 1,302 | (2) | 1,302 | |||||||
Wholly owned domestic resorts | 347,594 | 315,387 | 978,942 | 895,472 | |||||||
MGM China(1) | 139,326 | - | 185,748 | - | |||||||
MGM Macau (50%)(2) | - | 29,372 | 115,219 | 71,165 | |||||||
CityCenter (50%)(3) | (7,723) | (37,893) | (46,029) | (212,066) | |||||||
Other unconsolidated resorts(3) | 8,262 | 9,924 | 26,719 | 35,484 | |||||||
Management and other operations | 4,637 | (9,490) | 6,159 | (16,917) | |||||||
$ 492,096 | $ 307,300 | $ 1,266,758 | $ 773,138 | ||||||||
(1) For the nine months ended September 30, 2011, represents the net revenues of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through September 30, 2011. | |||||||||||
(2) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences for the three and nine months ended September 30, 2010 and the approximately five months ended June 2, 2011 | |||||||||||
(3) Represents the Company's share of operating income (loss) before preopening expense, adjusted for the effect of certain basis differences. | |||||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||||
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended September 30, 2011 | ||||||||||||
Operating income (loss) | Preopening and start-up expenses | Property transactions, net | Depreciation and amortization | Adjusted EBITDA | ||||||||
Bellagio | $ 50,943 | $ - | $ 503 | $ 22,805 | $ 74,251 | |||||||
MGM Grand Las Vegas | 22,945 | - | 1 | 19,275 | 42,221 | |||||||
Mandalay Bay | 19,313 | - | 53 | 22,006 | 41,372 | |||||||
The Mirage | 6,708 | - | 1,291 | 17,407 | 25,406 | |||||||
Luxor | 11,775 | - | 2 | 9,288 | 21,065 | |||||||
New York-New York | 17,043 | - | - | 5,695 | 22,738 | |||||||
Excalibur | 12,477 | - | 13 | 4,973 | 17,463 | |||||||
Monte Carlo | 9,209 | - | 5 | 5,252 | 14,466 | |||||||
Circus Circus Las Vegas | 4,192 | - | 2 | 4,704 | 8,898 | |||||||
MGM Grand Detroit | 29,991 | - | - | 9,906 | 39,897 | |||||||
Beau Rivage | 15,614 | - | (7) | 9,894 | 25,501 | |||||||
Gold Strike Tunica | 10,083 | - | - | 3,381 | 13,464 | |||||||
Other resort operations | (79,990) | - | 79,658 | 1,184 | 852 | |||||||
Wholly owned domestic resorts | 130,303 | - | 81,521 | 135,770 | 347,594 | |||||||
MGM China | 40,788 | - | 294 | 98,244 | 139,326 | |||||||
CityCenter (50%) | (7,723) | - | - | - | (7,723) | |||||||
Other unconsolidated resorts | 8,262 | - | - | - | 8,262 | |||||||
Management and other operations | 1,000 | - | 6 | 3,631 | 4,637 | |||||||
172,630 | - | 81,821 | 237,645 | 492,096 | ||||||||
Stock compensation | (8,707) | - | - | - | (8,707) | |||||||
Corporate | (51,349) | - | 16 | 11,875 | (39,458) | |||||||
$ 112,574 | $ - | $ 81,837 | $ 249,520 | $ 443,931 | ||||||||
Three Months Ended September 30, 2010 | ||||||||||||
Operating income (loss) | Preopening and start-up expenses | Property transactions, net | Depreciation and amortization | Adjusted EBITDA | ||||||||
Bellagio | $ 52,040 | $ - | $ (18) | $ 23,836 | $ 75,858 | |||||||
MGM Grand Las Vegas | 20,855 | - | (45) | 19,201 | 40,011 | |||||||
Mandalay Bay | 5,023 | - | 2,181 | 23,231 | 30,435 | |||||||
The Mirage | 16,104 | - | 450 | 15,426 | 31,980 | |||||||
Luxor | 3,666 | - | 11 | 10,437 | 14,114 | |||||||
New York-New York | 14,307 | - | 763 | 6,873 | 21,943 | |||||||
Excalibur | 10,300 | - | - | 5,581 | 15,881 | |||||||
Monte Carlo | (1,954) | - | 3,765 | 6,119 | 7,930 | |||||||
Circus Circus Las Vegas | 1,024 | - | 4 | 5,098 | 6,126 | |||||||
MGM Grand Detroit | 30,724 | - | (484) | 10,226 | 40,466 | |||||||
Beau Rivage | 4,950 | - | 348 | 12,339 | 17,637 | |||||||
Gold Strike Tunica | 7,532 | - | 549 | 3,623 | 11,704 | |||||||
Other resort operations | (3) | - | (1) | 1,306 | 1,302 | |||||||
Wholly owned domestic resorts | 164,568 | - | 7,523 | 143,296 | 315,387 | |||||||
MGM Macau (50%) | 29,372 | - | - | - | 29,372 | |||||||
CityCenter (50%) | (37,893) | - | - | - | (37,893) | |||||||
Other unconsolidated resorts | 9,924 | - | - | - | 9,924 | |||||||
Management and other operations | (13,563) | 30 | - | 4,043 | (9,490) | |||||||
152,408 | 30 | 7,523 | 147,339 | 307,300 | ||||||||
Stock compensation | (8,599) | - | - | - | (8,599) | |||||||
Corporate | (349,710) | - | 319,158 | 11,518 | (19,034) | |||||||
$ (205,901) | $ 30 | $ 326,681 | $ 158,857 | $ 279,667 | ||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||||
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Nine Months Ended September 30, 2011 | ||||||||||||
Operating income (loss) | Preopening and start-up expenses | Gain on MGM China transaction & Property transactions, net | Depreciation and amortization | Adjusted EBITDA | ||||||||
Bellagio | $ 132,489 | $ - | $ 820 | $ 72,213 | $ 205,522 | |||||||
MGM Grand Las Vegas | 56,837 | - | 1 | 57,808 | 114,646 | |||||||
Mandalay Bay | 63,365 | - | 69 | 65,983 | 129,417 | |||||||
The Mirage | 35,123 | - | 1,330 | 45,692 | 82,145 | |||||||
Luxor | 31,599 | - | 8 | 28,413 | 60,020 | |||||||
New York-New York | 48,325 | - | (85) | 17,849 | 66,089 | |||||||
Excalibur | 36,530 | - | 223 | 15,221 | 51,974 | |||||||
Monte Carlo | 26,690 | - | 33 | 17,147 | 43,870 | |||||||
Circus Circus Las Vegas | 6,343 | - | (6) | 14,187 | 20,524 | |||||||
MGM Grand Detroit | 95,820 | - | 372 | 29,401 | 125,593 | |||||||
Beau Rivage | 25,764 | - | 51 | 32,110 | 57,925 | |||||||
Gold Strike Tunica | 11,028 | - | - | 10,191 | 21,219 | |||||||
Other resort operations | (83,323) | - | 79,675 | 3,646 | (2) | |||||||
Wholly owned domestic resorts | 486,590 | - | 82,491 | 409,861 | 978,942 | |||||||
MGM China | 60,236 | - | 307 | 125,205 | 185,748 | |||||||
MGM Macau (50%) | 115,219 | - | - | - | 115,219 | |||||||
CityCenter (50%) | (46,029) | - | - | - | (46,029) | |||||||
Other unconsolidated resorts | 26,719 | - | - | - | 26,719 | |||||||
Management and other operations | (4,289) | (316) | 1 | 10,763 | 6,159 | |||||||
638,446 | (316) | 82,799 | 545,829 | 1,266,758 | ||||||||
Stock compensation | (26,912) | - | - | - | (26,912) | |||||||
Corporate | 3,354,505 | - | (3,495,976) | 33,555 | (107,916) | |||||||
$ 3,966,039 | $ (316) | $ (3,413,177) | $ 579,384 | $ 1,131,930 | ||||||||
Nine Months Ended September 30, 2010 | ||||||||||||
Operating income (loss) | Preopening and start-up expenses | Property transactions, net | Depreciation and amortization | Adjusted EBITDA | ||||||||
Bellagio | $ 122,871 | $ - | $ (125) | $ 72,391 | $ 195,137 | |||||||
MGM Grand Las Vegas | 72,134 | - | (45) | 58,515 | 130,604 | |||||||
Mandalay Bay | 23,758 | - | 2,840 | 69,579 | 96,177 | |||||||
The Mirage | 29,535 | - | 311 | 50,778 | 80,624 | |||||||
Luxor | 12,237 | - | 1 | 32,217 | 44,455 | |||||||
New York-New York | 31,737 | - | 6,858 | 20,966 | 59,561 | |||||||
Excalibur | 31,103 | - | 784 | 17,271 | 49,158 | |||||||
Monte Carlo | 1,928 | - | 3,765 | 18,345 | 24,038 | |||||||
Circus Circus Las Vegas | (2,529) | - | 229 | 15,650 | 13,350 | |||||||
MGM Grand Detroit | 88,391 | - | (484) | 30,529 | 118,436 | |||||||
Beau Rivage | 13,768 | - | 351 | 36,921 | 51,040 | |||||||
Gold Strike Tunica | 21,336 | - | (551) | 10,805 | 31,590 | |||||||
Other resort operations | (2,827) | - | 4 | 4,125 | 1,302 | |||||||
Wholly owned domestic resorts | 443,442 | - | 13,938 | 438,092 | 895,472 | |||||||
MGM Macau (50%) | 71,165 | - | - | - | 71,165 | |||||||
CityCenter (50%) | (215,560) | 3,494 | - | - | (212,066) | |||||||
Other unconsolidated resorts | 35,484 | - | - | - | 35,484 | |||||||
Management and other operations | (28,699) | 567 | - | 11,215 | (16,917) | |||||||
305,832 | 4,061 | 13,938 | 449,307 | 773,138 | ||||||||
Stock compensation | (26,156) | - | - | - | (26,156) | |||||||
Corporate | (1,545,817) | - | 1,439,714 | 37,450 | (68,653) | |||||||
$ (1,266,141) | $ 4,061 | $ 1,453,652 | $ 486,757 | $ 678,329 | ||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | September 30, | September 30, | |||||||
2011 | 2010 | 2011 | 2010 | |||||||
Adjusted EBITDA | $ 443,931 | $ 279,667 | $ 1,131,930 | $ 678,329 | ||||||
Preopening and start-up expenses | - | (30) | 316 | (4,061) | ||||||
Property transactions, net | (81,837) | (326,681) | (82,828) | (1,453,652) | ||||||
Gain on MGM China transaction | - | - | 3,496,005 | - | ||||||
Depreciation and amortization | (249,520) | (158,857) | (579,384) | (486,757) | ||||||
Operating income (loss) | 112,574 | (205,901) | 3,966,039 | (1,266,141) | ||||||
Non-operating income (expense): | ||||||||||
Interest expense | (272,542) | (285,139) | (812,680) | (840,483) | ||||||
Other, net | (26,287) | (19,887) | (111,551) | 75,633 | ||||||
(298,829) | (305,026) | (924,231) | (764,850) | |||||||
Income (loss) before income taxes | (186,255) | (510,927) | 3,041,808 | (2,030,991) | ||||||
Benefit for income taxes | 79,680 | 192,936 | 212,437 | 732,783 | ||||||
Net income (loss) | (106,575) | (317,991) | 3,254,245 | (1,298,208) | ||||||
Less: net income attributable to noncontrolling interests | (17,211) | - | (25,917) | - | ||||||
Net income (loss) attributable to MGM Resorts International | $ (123,786) | $ (317,991) | $ 3,228,328 | $ (1,298,208) | ||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||
SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | September 30, | September 30, | |||||||
2011 | 2010 | 2011 | 2010 | |||||||
Bellagio | ||||||||||
Occupancy % | 96.8% | 94.8% | 94.7% | 93.5% | ||||||
Average daily rate (ADR) | $230 | $198 | $226 | $201 | ||||||
Revenue per available room (REVPAR) | $222 | $187 | $214 | $188 | ||||||
MGM Grand Las Vegas | ||||||||||
Occupancy % | 95.4% | 94.6% | 94.3% | 94.1% | ||||||
ADR | $129 | $112 | $130 | $115 | ||||||
REVPAR | $123 | $106 | $123 | $108 | ||||||
Mandalay Bay | ||||||||||
Occupancy % | 95.7% | 91.2% | 93.5% | 90.0% | ||||||
ADR | $175 | $164 | $176 | $160 | ||||||
REVPAR | $168 | $149 | $165 | $144 | ||||||
The Mirage | ||||||||||
Occupancy % | 96.7% | 95.8% | 95.8% | 93.3% | ||||||
ADR | $140 | $129 | $145 | $132 | ||||||
REVPAR | $136 | $124 | $138 | $124 | ||||||
Luxor | ||||||||||
Occupancy % | 94.6% | 92.1% | 91.8% | 89.7% | ||||||
ADR | $87 | $82 | $90 | $84 | ||||||
REVPAR | $83 | $76 | $83 | $75 | ||||||
New York-New York | ||||||||||
Occupancy % | 95.3% | 93.2% | 94.5% | 92.1% | ||||||
ADR | $108 | $97 | $108 | $100 | ||||||
REVPAR | $103 | $90 | $102 | $92 | ||||||
Excalibur | ||||||||||
Occupancy % | 92.4% | 94.9% | 90.0% | 89.6% | ||||||
ADR | $70 | $63 | $72 | $66 | ||||||
REVPAR | $65 | $60 | $65 | $59 | ||||||
Monte Carlo | ||||||||||
Occupancy % | 97.2% | 95.5% | 94.8% | 91.4% | ||||||
ADR | $99 | $86 | $98 | $87 | ||||||
REVPAR | $96 | $82 | $93 | $80 | ||||||
Circus Circus Las Vegas | ||||||||||
Occupancy % | 88.1% | 86.8% | 76.2% | 78.9% | ||||||
ADR | $52 | $45 | $54 | $45 | ||||||
REVPAR | $46 | $39 | $41 | $36 | ||||||
CITYCENTER HOLDINGS, LLC | ||||||||||||
SUPPLEMENTAL DATA - NET REVENUES | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Aria | $ 214,347 | $ 220,008 | $ 672,810 | $ 537,352 | ||||||||
Vdara | 20,060 | 10,859 | 55,230 | 28,629 | ||||||||
Crystals | 11,345 | 9,182 | 34,229 | 22,952 | ||||||||
Mandarin Oriental | 9,064 | 7,469 | 30,309 | 21,527 | ||||||||
Resort operations | 254,816 | 247,518 | 792,578 | 610,460 | ||||||||
Residential operations | 5,186 | 165,965 | 20,328 | 464,417 | ||||||||
$ 260,002 | $ 413,483 | $ 812,906 | $ 1,074,877 | |||||||||
CITYCENTER HOLDINGS, LLC | ||||||||||||
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Adjusted EBITDA | $ 46,090 | $ 52,357 | $ 157,978 | $ 52,419 | ||||||||
Preopening and start-up expenses | - | - | - | (6,202) | ||||||||
Property transactions, net | (6) | (354,981) | (53,362) | (583,079) | ||||||||
Depreciation and amortization | (86,093) | (80,822) | (271,270) | (230,004) | ||||||||
Operating loss | (40,009) | (383,446) | (166,654) | (766,866) | ||||||||
Non-operating income (expense): | ||||||||||||
Interest expense - sponsor notes, net | (20,092) | (23,409) | (57,699) | (67,872) | ||||||||
Interest expense - other, net | (47,665) | (42,221) | (142,714) | (106,495) | ||||||||
Other, net | 1,129 | (176) | (20,566) | (4,885) | ||||||||
(66,628) | (65,806) | (220,979) | (179,252) | |||||||||
Net loss | $ (106,637) | $ (449,252) | $ (387,633) | $ (946,118) | ||||||||
CITYCENTER HOLDINGS, LLC | ||||||||||||
RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended September 30, 2011 | ||||||||||||
Operating loss | Preopening and start-up expenses | Property transactions, net | Depreciation and amortization | Adjusted EBITDA | ||||||||
Aria | $ (23,147) | $ - | $ - | $ 63,566 | $ 40,419 | |||||||
Vdara | (5,387) | - | - | 10,173 | 4,786 | |||||||
Crystals | (648) | - | - | 6,619 | 5,971 | |||||||
Mandarin Oriental | (5,782) | - | - | 4,449 | (1,333) | |||||||
Resort operations | (34,964) | - | - | 84,807 | 49,843 | |||||||
Residential operations | (976) | - | - | 1,198 | 222 | |||||||
Development and administration | (4,069) | - | 6 | 88 | (3,975) | |||||||
$ (40,009) | $ - | $ 6 | $ 86,093 | $ 46,090 | ||||||||
Three Months Ended September 30, 2010 | ||||||||||||
Operating loss | Preopening and start-up expenses | Property transactions, net | Depreciation and amortization | Adjusted EBITDA | ||||||||
Aria | $ (19,594) | $ - | $ - | $ 60,965 | $ 41,371 | |||||||
Vdara | (9,646) | - | - | 9,059 | (587) | |||||||
Crystals | (3,158) | - | - | 5,599 | 2,441 | |||||||
Mandarin Oriental | (7,935) | - | - | 4,311 | (3,624) | |||||||
Resort operations | (40,333) | - | - | 79,934 | 39,601 | |||||||
Residential operations | (50,002) | - | 75,759 | 308 | 26,065 | |||||||
Development and administration | (293,111) | - | 279,222 | 580 | (13,309) | |||||||
$ (383,446) | $ - | $ 354,981 | $ 80,822 | $ 52,357 | ||||||||
CITYCENTER HOLDINGS, LLC | ||||||||||||
RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Nine Months Ended September 30, 2011 | ||||||||||||
Operating loss | Preopening and start-up expenses | Property transactions, net | Depreciation and amortization | Adjusted EBITDA | ||||||||
Aria | $ (57,000) | $ - | $ - | $ 205,473 | $ 148,473 | |||||||
Vdara | (15,127) | - | - | 28,547 | 13,420 | |||||||
Crystals | (3,037) | - | - | 20,322 | 17,285 | |||||||
Mandarin Oriental | (14,968) | - | - | 13,966 | (1,002) | |||||||
Resort operations | (90,132) | - | - | 268,308 | 178,176 | |||||||
Residential operations | (63,044) | - | 52,624 | 2,628 | (7,792) | |||||||
Development and administration | (13,478) | - | 738 | 334 | (12,406) | |||||||
$ (166,654) | $ - | $ 53,362 | $ 271,270 | $ 157,978 | ||||||||
Nine Months Ended September 30, 2010 | ||||||||||||
Operating loss | Preopening and start-up expenses | Property transactions, net | Depreciation and amortization | Adjusted EBITDA | ||||||||
Aria | $ (160,725) | $ - | $ - | $ 173,061 | $ 12,336 | |||||||
Vdara | (31,175) | - | - | 26,182 | (4,993) | |||||||
Crystals | (10,405) | - | - | 16,013 | 5,608 | |||||||
Mandarin Oriental | (23,629) | - | - | 12,065 | (11,564) | |||||||
Resort operations | (225,934) | - | - | 227,321 | 1,387 | |||||||
Residential operations | (227,594) | - | 303,857 | 914 | 77,177 | |||||||
Development and administration | (313,338) | 6,202 | 279,222 | 1,769 | (26,145) | |||||||
$ (766,866) | $ 6,202 | $ 583,079 | $ 230,004 | $ 52,419 | ||||||||
CITYCENTER HOLDINGS, LLC | ||||||||||||
SUPPLEMENTAL DATA - HOTEL STATISTICS | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Aria | ||||||||||||
Occupancy % | 86.6% | 81.6% | 87.4% | 74.8% | ||||||||
ADR | $200 | $175 | $201 | $181 | ||||||||
REVPAR | $173 | $142 | $176 | $136 | ||||||||
Vdara | ||||||||||||
Occupancy % | 83.8% | 69.8% | 86.0% | 66.1% | ||||||||
ADR | $157 | $141 | $158 | $144 | ||||||||
REVPAR | $131 | $99 | $136 | $96 | ||||||||
MGM CHINA (1) | |||||||||
SUPPLEMENTAL PRO FORMA INFORMATION | |||||||||
NET REVENUES AND RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | September 30, | September 30, | ||||||
2011 | 2010 | 2011 | 2010 | ||||||
Net revenues | $ 623,049 | $ 362,306 | $ 1,887,064 | $ 1,001,339 | |||||
Adjusted EBITDA (2) | $ 139,326 | $ 83,841 | $ 455,755 | $ 215,690 | |||||
Property transactions, net | (294) | (51) | (804) | (409) | |||||
Depreciation and amortization (3) | (89,933) | (93,416) | (268,867) | (280,192) | |||||
Operating income (loss) | 49,099 | (9,626) | 186,084 | (64,911) | |||||
Non-operating income (expense) | (6,889) | (10,541) | (18,616) | (37,454) | |||||
Income (loss) before income taxes | 42,210 | (20,167) | 167,468 | (102,365) | |||||
Provision for income taxes | (5,302) | (11) | (20,383) | (33) | |||||
Net income (loss) | $ 36,908 | $ (20,178) | $ 147,085 | $ (102,398) | |||||
(1) Supplemental pro forma information for MGM China is presented for the three and nine month periods ended September 30, 2011 and 2010 as if management control had occurred as of the beginning of each period presented. This information is presented on a U.S. GAAP basis and includes the impact of certain purchase accounting adjustments. This supplemental pro forma information is provided solely for comparative purposes and does not presume to be indicative of what actual results would have been if the change in management control had been completed at the beginning of the periods presented, nor indicative of future results. | |
(2) Adjusted EBITDA for the three and nine months ending September 30, 2011 includes expenses related to the branding agreement between MGM China and an entity jointly owned by the Company and Ms. Pansy Ho of $11 million for the three months ended September 30, 2011 and $14 million for the period from June 3, 2011 through September 30, 2011. Prior period pro forma information does not include an expense related to the branding agreement. | |
(3) Depreciation and amortization for all periods presented includes the pro forma impact of the amortization of certain intangible assets recognized at fair value in purchase accounting. | |
SOURCE MGM Resorts International
For further information: Investment Community, Daniel D?Arrigo, Executive Vice President, CFO & Treasurer, +1-702-693-8895, or News Media, Alan M. Feldman, Senior Vice President of Public Affairs, +1-702-650-6947 or afeldman@mgmresorts.com