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Press release from PR Newswire

MGM Resorts International Reports Fourth Quarter and Full Year Results

Wednesday, February 22, 2012

MGM Resorts International Reports Fourth Quarter and Full Year Results07:30 EST Wednesday, February 22, 2012MGM China Announces an Approximate $400 Million DividendLAS VEGAS, Feb. 22, 2012 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today reported improved financial results for the fourth quarter ended December 31, 2011.  Loss per share was $0.23 compared to a loss of $0.29 per share in the prior year fourth quarter.  The current quarter results include MGM China Holdings, Limited (?MGM China?), which the Company began consolidating as of June 3, 2011.Key results for the fourth quarter of 2011 included the following:Consolidated net revenue was $2.3 billion; excluding MGM China, net revenue increased 7% compared to the prior year quarter;Rooms revenue at wholly owned domestic resorts increased 10% with a 13% increase in REVPAR(1) at the Company?s Las Vegas Strip resorts;Consolidated operating income was $91 million compared to $107 million in the fourth quarter of 2010;Adjusted Property EBITDA(2) was $482 million in the 2011 quarter compared to $294 million in the 2010 quarter;The Company?s wholly owned domestic resorts earned Adjusted Property EBITDA of $319 million, an 18% increase compared to the prior year quarter;MGM China?s Adjusted Property EBITDA was $174 million, a 23% increase compared to the prior year quarter; andCityCenter?s Adjusted Property EBITDA related to resort operations was $58 million, a 62% increase compared to the prior year quarter.?2011 was a year in which we achieved many goals: operationally, strategically, and financially.  Operationally, we enhanced our customer experience through targeted reinvestment in our properties and improved relationships through our M life customer loyalty program. Strategically, we acquired a majority interest in MGM China and began expanding our brand presence in key markets throughout the world, particularly Asia.  Financially, our revenues and margins have improved year over year increasing our cash flow and strengthening our financial profile,? said Jim Murren, MGM Resorts International Chairman and CEO.  ?Going forward we expect to build off of these strategies to grow our company and maximize shareholder value.?Certain Items Affecting Fourth Quarter ResultsThe following table lists items that affect the comparability of the current and prior year quarterly results in addition to the consolidation of MGM China (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):Three months ended December 31,20112010Property transactions, net:                                                             Investment in Borgata impairment$(0.07)$?       Investment in Silver Legacy impairment(0.03)?       Other property transactions(0.01)?Income (loss) from unconsolidated affiliates:       CityCenter residential impairment charge?(0.02)       CityCenter forfeited residential deposits income?0.01Loss on retirement of long-term debt?(0.01)Tax adjustments0.09(0.07)The current quarter tax adjustments include a net $44 million, or $0.09 per share, increase in income tax benefit resulting from a decrease in the Macau net deferred tax liability, partially offset by an increase in the Michigan net deferred tax liability. Tax adjustments in the prior year quarter include a $32 million, or $0.07 per share, reduction in the Company?s income tax benefit as a result of providing reserves for certain state-level deferred tax assets.  In the current quarter, the Company recorded an impairment charge of $62 million ($0.07 per share, net of tax) related to its investment in Borgata and an impairment charge of $23 million ($0.03 per share, net of tax) related to its investment in Silver Legacy.Wholly Owned Domestic Resorts Casino revenue related to wholly owned domestic resorts increased 8% compared to the prior year quarter. The overall table games hold percentage in the fourth quarter of 2011 was near the high end of the Company?s normal range of 19% to 23% and was near the low end of the Company?s range in the prior year quarter.  Slots revenue increased 3% compared to the prior year quarter.Rooms revenue increased 10% 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 December 31,20112010Occupancy %87%84%Average Daily Rate (ADR)$129$118Revenue per Available Room (REVPAR)$111$98Operating income for the Company?s wholly owned domestic resorts for the fourth quarter of 2011 was $186 million, an increase of 36% compared to the fourth quarter of 2010. MGM ChinaOn February 22, 2012, MGM China?s Board of Directors announced a dividend of approximately $400 million, which will be paid to shareholders of record as of March 9, 2012 and distributed on or about March 20, 2012.  MGM Resorts International will receive approximately $204 million, representing 51% of such dividend.The schedules accompanying this release provide pro forma information for MGM China, presented for the three and twelve month periods ended December 31, 2011 and 2010, as if the acquisition of the Company?s controlling interest occurred as of January 1, 2010. The following are the key fourth quarter results for MGM China on a pro forma basis:MGM China earned net revenue of $719 million for the fourth quarter of 2011 compared to $570 million in the fourth 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 29%, 13% and 35%, respectively. VIP table games hold percentage was slightly above our expected range of 2.7% to 3.0% in the current and prior year periods; andAdjusted Property EBITDA increased 23% to $174 million.MGM China completed its initial public offering of shares on The Stock Exchange of Hong Kong Limited on June 3, 2011 and the Company acquired an additional 1% interest in MGM China, which owns the MGM Macau resort and casino. This acquisition increased the Company?s ownership interest to 51% and, as a result, the Company began consolidating MGM China as of June 3, 2011. Prior to June 3, 2011, the results of MGM Macau were accounted for under the equity method of accounting.Income (Loss) from Unconsolidated AffiliatesThe following table summarizes information related to the Company?s share of operating income (loss) from unconsolidated affiliates:Three months ended December 31,20112010(In thousands)CityCenter$(10,262)$(38,415)MGM Macau?58,410Other5,4477,280$(4,815)$27,275Results for CityCenter Holdings, LLC for the fourth quarter of 2011 include the following (see schedules accompanying this release for further detail on CityCenter?s fourth quarter results): Net revenue from resort operations increased to $265 million compared to $231 million in the prior year quarter;Adjusted Property EBITDA from resort operations was $58 million, an increase of 62% compared to the prior year quarter;Aria?s table games hold percentage was approximately 240 basis points higher in the current year quarter compared to the prior year quarter; andAria?s occupancy percentage was 82% and its ADR was $207, resulting in REVPAR of $169, a 10% increase compared to the prior year fourth quarter. Full Year 2011 ResultsNet revenue for 2011 was $7.8 billion, which included $1.5 billion of net revenue related to MGM China. Excluding MGM China, net revenue increased 4% for the year compared to 2010.  Las Vegas Strip REVPAR increased 13% for the full year compared to 2010. Adjusted Property EBITDA from wholly owned domestic resorts increased 11% to $1.3 billion for 2011 compared to $1.2 billion in 2010. MGM China?s Adjusted Property EBITDA was $360 million for the period from June 3, 2011 through December 31, 2011.MGM China reported record results for 2011 with net revenues of $2.6 billion and Adjusted EBITDA of $630 million, an increase of 66% and 76% year over year, respectively.CityCenter reported year over year operating improvement with net revenue from resort operations of $1.1 billion and Adjusted Property EBITDA related to resort operations of $236 million. Diluted earnings per share attributable to MGM Resorts International for 2011 was $5.62 compared to a loss per share of $3.19 in 2010. The following table lists significant items which affect the comparability of the current year and prior year annual results (EPS impact shown, net of tax, per share; negative amounts represent charges to income):Year ended December 31,20112010Preopening and start-up expenses$?$(0.01)Gain on MGM China6.23?Property transactions, net:       Investment in CityCenter impairment?(1.88)       Circus Circus Reno impairment(0.09)?       Investment in Borgata impairment(0.06)(0.18)       Investment in Silver Legacy impairment(0.03)?       Other property transactions(0.02)(0.01)Income (loss) from unconsolidated affiliates:       CityCenter residential impairment(0.03)(0.24)       CityCenter forfeited residential deposits income?0.08Gain (loss) on retirement of long-term debt(0.01)0.19Tax adjustments0.10(0.07)Financial PositionIn December 2011, the Company borrowed an additional $778 million under its senior credit facility to increase its capacity for issuing additional secured indebtedness. As a result, the Company had a higher than normal cash balance at December 31, 2011 of $1.9 billion, which also included approximately $720 million of cash and cash equivalents related to MGM China.  At December 31, 2011, the Company had approximately $13.6 billion of indebtedness (with a carrying value of $13.5 billion), including $3.3 billion of borrowings outstanding under its senior credit facility. Giving effect to the repayment in January 2012 of the $778 million additional borrowing noted above, the Company would have had approximately $957 million of available borrowing capacity under its senior credit facility at December 31, 2011. In January 2012, the Company issued $850 million of 8.625% senior unsecured notes due 2019, for net proceeds to the Company of approximately $836 million.  As previously announced, the Company is seeking amendments to its aggregate $3.5 billion senior credit facility to, among other things, extend the maturity of loans held by consenting lenders from February 21, 2014 to February 23, 2015. Lenders holding approximately 62% or $2.2 billion aggregate principal amount of the credit facility have elected to extend the maturity dates of their commitments. Extending lenders will receive a 20% reduction of their previous credit exposures, unless waived by such lenders. In addition, extending lenders? loans will be subject to a pricing grid that decreases the LIBOR spread by as much as 250 basis points based upon collateral coverage levels and the LIBOR floor on extended loans would be reduced from 200 basis points to 100 basis points.  The closing of the amendment is subject to customary closing conditions and is expected to occur by the end of this month.?We remain committed to improving our balance sheet and maximizing free cash flow as evidenced by our recent bond issuances, the commitments to our senior credit facility amend and extend transaction, and today?s dividend announcement from MGM China,? said Dan D?Arrigo, MGM Resorts International Executive Vice President, CFO and Treasurer.  ?While we have made tremendous progress, we see further opportunities to lower our cost of capital and de-lever our balance sheet.? Conference Call DetailsMGM 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 1-877-355-2280 for domestic callers and 1-706-758-3659 for international callers.  The conference call access code is 43802425.  A replay of the call will be available through Wednesday, February 29, 2012. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 43802425. 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. Reconciliations of GAAP net income (loss) to Adjusted EBITDA and GAAP operating income (Loss) to Adjusted Property EBITDA are included in the financial schedules in this release.About MGM Resorts InternationalMGM 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, potential economic recoveries, our ability to lower costs and further deleverage our balance sheet and the closing of the amend and extend transaction. 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 SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Revenues:Casino$     1,373,311$        617,656$     4,002,985$     2,479,695Rooms377,464330,5821,547,7651,370,054Food and beverage347,160319,6211,425,4281,339,174Entertainment132,846121,795514,883486,319Retail48,85547,322204,806194,891Other114,408105,638485,661459,926Reimbursed costs88,29387,235351,207359,4702,482,3371,629,8498,532,7356,689,529Less: Promotional allowances(185,448)(154,547)(683,423)(633,528)2,296,8891,475,3027,849,3126,056,001Expenses:Casino882,897355,5062,515,2791,422,531Rooms119,015102,607485,751423,073Food and beverage200,459189,320829,018774,443Entertainment95,95487,997375,559360,383Retail29,78429,922124,063120,593Other88,77483,519345,484333,817Reimbursed costs88,29387,235351,207359,470General and administrative307,312277,8891,182,5051,128,803Corporate expense54,94736,698174,971124,241Preopening and start-up expenses -186(316)4,247Property transactions, net95,770(2,178)178,5981,451,474Gain on MGM China transaction--(3,496,005)-Depreciation and amortization237,762146,666817,146633,4232,200,9671,395,3673,883,2607,136,498Income (loss) from unconsolidated affiliates(4,815)27,27591,094(78,434)Operating income (loss)91,107107,2104,057,146(1,158,931)Non-operating income (expense):Interest expense(274,152)(273,097)(1,086,832)(1,113,580)Non-operating items from unconsolidated affiliates(26,029)(26,622)(119,013)(108,731)Other, net(1,103)7,475(19,670)165,217(301,284)(292,244)(1,225,515)(1,057,094)Income (loss) before income taxes(210,177)(185,034)2,831,631(2,216,025)Benefit for income taxes190,87645,845403,313778,628Net income (loss)(19,301)(139,189)3,234,944(1,437,397)Less: net income attributable to noncontrolling interests(94,390)-(120,307)-Net income (loss) attributable to MGM Resorts International$       (113,691)$       (139,189)$     3,114,637$    (1,437,397)Per share of common stock:Basic:Net Income (loss) attributable to MGM Resorts International       $             (0.23)$             (0.29)$              6.37$             (3.19)Weighted average shares outstanding488,823477,630488,652450,449Diluted:Net Income (loss) attributable to MGM Resorts International$             (0.23)$             (0.29)$              5.62$             (3.19)Weighted average shares outstanding488,823477,630560,895450,449MGM RESORTS INTERNATIONAL AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except share data)(Unaudited)December 31,December 31,20112010ASSETSCurrent assets:Cash and cash equivalents$     1,865,913$        498,964Accounts receivable, net491,730321,894Inventories112,73596,392Income tax receivable-175,982Deferred income taxes91,060110,092Prepaid expenses and other251,282252,321Total current assets2,812,7201,455,645Property and equipment, net 14,866,64414,554,350Other assets:Investments in and advances to unconsolidated affiliates1,635,5721,923,155Goodwill (1) 2,896,60977,156Other intangible assets, net5,048,117342,804Other long-term assets, net506,614598,738Total other assets10,086,9122,941,853$   27,766,276$   18,951,848LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $        170,994$        167,084Income taxes payable7,611-Accrued interest on long-term debt203,422211,914Other accrued liabilities1,362,737867,223Total current liabilities1,744,7641,246,221Deferred income taxes (1) 2,502,0962,526,519Long-term debt 13,470,16712,047,698Other long-term obligations 167,027199,248Stockholders' equity:Common stock, $.01 par value: authorized 1,000,000,000 shares,issued and outstanding 488,834,773 and 488,513,351 shares 4,8884,885Capital in excess of par value4,094,3234,060,826Retained earnings (accumulated deficit) (1)1,981,389(1,133,248)Accumulated other comprehensive income (loss)5,978(301)Total MGM Resorts International stockholders' equity6,086,5782,932,162Noncontrolling interests3,795,644-Total stockholders' equity9,882,2222,932,162$   27,766,276$   18,951,848(1) The Company identified certain errors related to deferred tax liabilities in its prior period financial statements, primarily related to its acquisition of Mandalay Resort Group in 2005. Such errors did not have an impact on the Company's 2011 or 2010 income statements, but have been corrected in the unaudited balance sheet for the year ended December 31, 2010.  The Company recorded an additional $57 million of deferred tax liabilities, a $9 million decrease in goodwill, and a $66 million increase in accumulated deficit in the December 31, 2010 balance sheet.  Additional information with respect to such adjustments will be included in the Company's annual report on Form 10-K for the year ended December 31, 2011.MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - NET REVENUES(In thousands)(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Bellagio$        308,819$        269,281$     1,114,711$     1,038,593MGM Grand Las Vegas233,389219,206941,007930,541Mandalay Bay189,762173,926777,287721,945The Mirage 136,612134,856570,524560,918Luxor80,78977,391333,209317,370New York-New York 66,71260,310268,859248,115Excalibur60,70659,448257,047250,768Monte Carlo61,97857,239255,580226,204Circus Circus Las Vegas45,98142,236195,675185,412MGM Grand Detroit140,883133,865566,072541,494Beau Rivage79,49277,055340,940333,634Gold Strike Tunica36,73537,054145,220154,688Other resort operations29,93127,875126,771124,668  Wholly owned domestic resorts1,471,7891,369,7425,892,9025,634,350MGM China(1)718,929-1,534,963-Management and other operations106,171105,560421,447421,651$     2,296,889$     1,475,302$     7,849,312$     6,056,001(1) For the twelve months ended December 31, 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 December 31, 2011.MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA(In thousands)(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Bellagio$          96,975$          75,491$        302,497$        270,628MGM Grand Las Vegas34,49032,489149,136163,093Mandalay Bay39,70728,208169,124124,385The Mirage 20,29821,482102,443102,106Luxor18,06116,74178,08161,196New York-New York 21,19516,69387,28476,254Excalibur13,28314,07865,25763,236Monte Carlo13,5349,51757,40433,555Circus Circus Las Vegas2,4202,25522,94415,605MGM Grand Detroit40,42636,737166,019155,173Beau Rivage12,09510,24770,02061,287Gold Strike Tunica8,4478,26329,66639,853Other resort operations(1,757)(2,260)(1,759)(958)  Wholly owned domestic resorts319,174269,9411,298,1161,165,413MGM China(1)173,938-359,686-MGM Macau (50%)(2)-58,410115,219129,575CityCenter (50%)(3)(10,262)(38,416)(56,291)(250,482)Other unconsolidated resorts(3)5,4477,28032,16642,764Management and other operations(5,872)(3,320)287(12,158)$        482,425$        293,895$     1,749,183$     1,075,112(1) For the twelve months ended December 31, 2011, represents the Adjusted EBITDA of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through December 31, 2011.(2) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences for the three and twelve months ended December 31, 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 SUBSIDIARIESRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA(In thousands)(Unaudited)Three Months Ended December 31, 2011Operating income (loss)Preopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDABellagio$                  70,537$                                 -$                                    1,952$                24,486$                96,975MGM Grand Las Vegas14,925-23119,33434,490Mandalay Bay20,740-46218,50539,707The Mirage 6,215-22913,85420,298Luxor8,267-1049,69018,061New York-New York 15,499-95,68721,195Excalibur7,898-4234,96213,283Monte Carlo8,369-985,06713,534Circus Circus Las Vegas(2,303)-54,7182,420MGM Grand Detroit29,415-1,0439,96840,426Beau Rivage4,549-77,53912,095Gold Strike Tunica4,963-363,4488,447Other resort operations(2,689)-445487(1,757)  Wholly owned domestic resorts186,385-5,044127,745319,174MGM China77,204-81395,921173,938CityCenter (50%)(10,262)---(10,262)Other unconsolidated resorts5,447---5,447Management and other operations(9,524)-(1)3,653(5,872)249,250-5,856227,319482,425Stock compensation(9,616)---(9,616)Corporate (148,527)-89,91410,443(48,170)$                  91,107$                                 -$                                  95,770$              237,762$              424,639Three Months Ended December 31, 2010Operating income (loss)Preopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDABellagio$                  51,484$                                 -$                                       108$                23,899$                75,491MGM Grand Las Vegas12,225-17220,09232,489Mandalay Bay6,101-5222,05528,208The Mirage 6,654-(518)15,34621,482Luxor6,585-2569,90016,741New York-New York 10,108-226,56316,693Excalibur8,431-195,62814,078Monte Carlo3,0921851586,0829,517Circus Circus Las Vegas(2,837)-15,0912,255MGM Grand Detroit26,649-1579,93136,737Beau Rivage7,796-(2)2,45310,247Gold Strike Tunica4,779-113,4738,263Other resort operations(3,564)-161,288(2,260)  Wholly owned domestic resorts137,503185452131,801269,941MGM Macau (50%)58,410---58,410CityCenter (50%)(38,416)---(38,416)Other unconsolidated resorts7,280---7,280Management and other operations(6,912)1-3,591(3,320)157,865186452135,392293,895Stock compensation(8,832)---(8,832)Corporate (41,823)-(2,630)11,274(33,179)$                107,210$                               186$                                   (2,178)$              146,666$              251,884MGM RESORTS INTERNATIONAL AND SUBSIDIARIESRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA(In thousands)(Unaudited)Twelve Months Ended December 31, 2011Operating income (loss)Preopening and start-up expensesGain on MGM China transaction & Property transactions, netDepreciation and amortizationAdjusted EBITDABellagio$                203,026$                                 -$                                       2,772$                96,699$              302,497MGM Grand Las Vegas71,762-23277,142149,136Mandalay Bay84,105-53184,488169,124The Mirage 41,338-1,55959,546102,443Luxor39,866-11238,10378,081New York-New York 63,824-(76)23,53687,284Excalibur44,428-64620,18365,257Monte Carlo35,059-13122,21457,404Circus Circus Las Vegas4,040-(1)18,90522,944MGM Grand Detroit125,235-1,41539,369166,019Beau Rivage30,313-5839,64970,020Gold Strike Tunica15,991-3613,63929,666Other resort operations(86,012)-80,1204,133(1,759)  Wholly owned domestic resorts672,975-87,535537,6061,298,116MGM China137,440-1,120221,126359,686MGM Macau (50%)115,219---115,219CityCenter (50%)(56,291)---(56,291)Other unconsolidated resorts32,166---32,166Management and other operations(13,813)(316)-14,416287887,696(316)88,655773,1481,749,183Stock compensation(36,528)---(36,528)Corporate 3,205,978-(3,406,062)43,998(156,086)$             4,057,146$                             (316)$                            (3,317,407)$              817,146$           1,556,569Twelve Months Ended December 31, 2010Operating income (loss)Preopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDABellagio$                174,355$                                 -$                                        (17)$                96,290$              270,628MGM Grand Las Vegas84,359-12778,607163,093Mandalay Bay29,859-2,89291,634124,385The Mirage 36,189-(207)66,124102,106Luxor18,822-25742,11761,196New York-New York 41,845-6,88027,52976,254Excalibur39,534-80322,89963,236Monte Carlo5,0201853,92324,42733,555Circus Circus Las Vegas(5,366)-23020,74115,605MGM Grand Detroit115,040-(327)40,460155,173Beau Rivage21,564-34939,37461,287Gold Strike Tunica26,115-(540)14,27839,853Other resort operations(6,391)-205,413(958)  Wholly owned domestic resorts580,94518514,390569,8931,165,413MGM Macau (50%)129,575---129,575CityCenter (50%)(253,976)3,494--(250,482)Other unconsolidated resorts42,764---42,764Management and other operations(27,084)568-14,358(12,158)472,2244,24714,390584,2511,075,112Stock compensation(34,988)---(34,988)Corporate (1,596,167)-1,437,08449,172(109,911)$            (1,158,931)$                            4,247$                             1,451,474$              633,423$              930,213MGM RESORTS INTERNATIONAL AND SUBSIDIARIESRECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)(In thousands)(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Adjusted EBITDA$        424,639$        251,884$     1,556,569$        930,213  Preopening and start-up expenses-(186)316(4,247)  Property transactions, net(95,770)2,178(178,598)(1,451,474)  Gain on MGM China transaction--3,496,005-  Depreciation and amortization(237,762)(146,666)(817,146)(633,423)Operating income (loss)91,107107,2104,057,146(1,158,931)Non-operating income (expense):  Interest expense(274,152)(273,097)(1,086,832)(1,113,580)  Other, net(27,132)(19,147)(138,683)56,486(301,284)(292,244)(1,225,515)(1,057,094)Income (loss) before income taxes(210,177)(185,034)2,831,631(2,216,025)  Benefit for income taxes190,87645,845403,313778,628Net income (loss)(19,301)(139,189)3,234,944(1,437,397)  Less: net income attributable to noncontrolling interests(94,390)-(120,307)-Net income (loss) attributable to MGM Resorts International$       (113,691)$       (139,189)$     3,114,637$    (1,437,397)MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Bellagio   Occupancy %89.0%89.8%93.3%92.5%   Average daily rate (ADR)$242$209$230$203   Revenue per available room (REVPAR)$215$187$215$188MGM Grand Las Vegas   Occupancy %89.8%87.0%93.2%92.3%   ADR$136$117$131$115   REVPAR$122$101$123$106Mandalay Bay   Occupancy %86.5%83.7%91.7%88.4%   ADR$171$161$175$160   REVPAR$148$135$160$142The Mirage   Occupancy %92.0%90.0%94.8%92.4%   ADR$144$138$144$134   REVPAR$132$124$137$124Luxor   Occupancy %85.9%82.2%90.3%87.8%   ADR$92$87$91$85   REVPAR$79$71$82$74New York-New York   Occupancy %91.9%89.5%93.8%91.5%   ADR$109$99$108$100   REVPAR$100$89$102$91Excalibur   Occupancy %81.3%81.6%87.8%87.6%   ADR$74$68$73$66   REVPAR$60$55$64$58Monte Carlo   Occupancy %92.4%88.6%94.2%90.7%   ADR$100$89$99$88   REVPAR$92$79$93$79Circus Circus Las Vegas   Occupancy %75.0%65.3%75.9%75.4%   ADR$54$49$54$46   REVPAR$40$32$41$35CITYCENTER HOLDINGS, LLCSUPPLEMENTAL DATA - NET REVENUES(In thousands)(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Aria$          221,911$                        199,015$                         894,721$              736,367Vdara20,13412,53175,36441,160Crystals12,08811,07546,31734,027Mandarin Oriental10,7258,68941,03430,216 Resort operations264,858231,3101,057,436841,770Residential operations4,09725,87624,425490,293$          268,955$                        257,186$                      1,081,861$           1,332,063CITYCENTER HOLDINGS, LLCRECONCILIATION OF ADJUSTED EBITDA TO NET LOSS(In thousands)(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Adjusted EBITDA                                                                                        $            54,126$                          16,277$                         212,104$                68,696  Preopening and start-up expenses---(6,202)  Property transactions, net(233)(31,081)(53,595)(614,160)  Depreciation and amortization(98,871)(89,175)(370,141)(319,179)Operating loss(44,978)(103,979)(211,632)(870,845)Non-operating income (expense):  Interest expense - sponsor notes, net(20,778)(24,182)(78,477)(92,054)  Interest expense - other, net(46,645)(42,182)(189,359)(148,677)  Other, net(2,140)1,271(22,706)(3,614)(69,563)(65,093)(290,542)(244,345)Net loss$         (114,541)$                      (169,072)$                       (502,174)$          (1,115,190)CITYCENTER HOLDINGS, LLCRECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA(In thousands)(Unaudited)Three Months Ended December 31, 2011Operating lossPreopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDAAria$           (30,245)$                                 -$                                 -$                77,417$                              47,172Vdara(7,010)--11,4194,409Crystals2,836-1913,7956,822Mandarin Oriental(5,116)--5,014(102)   Resort operations(39,535)-19197,64558,301Residential operations(1,415)--1,157(258)Development and administration(4,028)-4269(3,917)$           (44,978)$                                 -$                                233$                98,871$                              54,126Three Months Ended December 31, 2010Operating lossPreopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDAAria$           (38,183)$                                 -$                             2,159$                66,207$                              30,183Vdara(8,026)--8,975949Crystals(1,919)--8,0146,095Mandarin Oriental(6,393)--5,074(1,319)   Resort operations(54,521)-2,15988,27035,908Residential operations(28,199)-28,024326151Development and administration(21,259)-898579(19,782)$         (103,979)$                                 -$                           31,081$                89,175$                              16,277CITYCENTER HOLDINGS, LLCRECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA(In thousands)(Unaudited)Twelve Months Ended December 31, 2011Operating lossPreopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDAAria$           (87,245)$                                 -$                                     -$              282,890$              195,645Vdara(22,137)--39,96617,829Crystals(201)-19124,11724,107Mandarin Oriental(20,084)--18,980(1,104)   Resort operations(129,667)-191365,953236,477Residential operations(64,459)-52,6243,785(8,050)Development and administration(17,506)-780403(16,323)$         (211,632)$                                 -$                           53,595$              370,141$              212,104Twelve Months Ended December 31, 2010Operating lossPreopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDAAria$         (198,908)$                                 -$                             2,159$              239,268$                42,519Vdara(39,201)--35,157(4,044)Crystals(12,324)--24,02711,703Mandarin Oriental(30,022)--17,139(12,883)   Resort operations(280,455)-2,159315,59137,295Residential operations(255,793)-331,8811,24077,328Development and administration(334,597)6,202280,1202,348(45,927)$         (870,845)$                            6,202$                         614,160$              319,179$                68,696CITYCENTER HOLDINGS, LLCSUPPLEMENTAL DATA - HOTEL STATISTICS(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Aria   Occupancy %81.9%80.2%86.0%76.2%   ADR$207$192$202$184   REVPAR$169$154$174$140Vdara   Occupancy %74.0%74.5%82.5%68.3%   ADR$168$154$161$147   REVPAR$124$115$133$101MGM CHINA (1)SUPPLEMENTAL PRO FORMA INFORMATIONNET REVENUES AND RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)(In thousands)(Unaudited)Three Months EndedTwelve Months EndedDecember 31,December 31,December 31,December 31,2011201020112010Net revenues$        718,929$        569,887$     2,605,994$     1,571,226Adjusted EBITDA (2)$        173,938$        141,974$        629,692$        357,664  Property transactions, net(813)(3,553)(1,618)(3,962)  Depreciation and amortization (3)(90,420)(93,637)(359,286)(373,829)Operating income (loss)82,70544,784268,788(20,127)  Non-operating income (expense)(4,006)(8,774)(22,621)(46,228)Income (loss) before income taxes78,69936,010246,167(66,355)  Benefit (provision) for income taxes119,452(4)99,068(37)Net income (loss)$        198,151$          36,006$        345,235$         (66,392)(1) Supplemental pro forma information for MGM China is presented for the three and twelve month periods ended December 31, 2011 and 2010 as if management control had occurred as of January 1, 2010.  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 twelve months ending December 31, 2011 includes expenses related to the branding agreement between MGM China and an entity jointly owned by the Company and Ms. Pansy Ho of $15 million for the period from June 3, 2011 through December 31, 2011, substantially all of which was incurred prior to 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 InternationalFor 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, +1-702-891-1840 or afeldman@mgmresorts.com, both of MGM Resorts International