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Press release from PR Newswire

MGM Resorts International Reports Second Quarter Results

Tuesday, August 07, 2012

MGM Resorts International Reports Second Quarter Results08:30 EDT Tuesday, August 07, 2012LAS VEGAS, Aug. 7, 2012 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today reported its second quarter 2012 results. Net loss per share attributable to the Company was $0.30 compared to diluted net income per share of $6.22 in the prior year second quarter. The prior year quarter included a gain of $6.30 per share recognized on the consolidation of MGM China Holdings, Limited ("MGM China"). Comparability of the current and prior quarter consolidated results was also affected by certain impairment charges and tax provision items discussed below. Key results for the second quarter of 2012 include the following:Net revenue for the Company's wholly owned domestic resorts was $1.5 billion in both the current and prior year second quarters. Casino revenue decreased 1% at the Company's wholly owned domestic resorts, while rooms revenue increased 3% with a 5% increase in REVPAR(1) at the Company's Las Vegas Strip resorts; The Company's wholly owned domestic resorts earned Adjusted Property EBITDA(2) of $345 million, a 4% increase compared to the prior year quarter, which was impacted by the temporary closure of Gold Strike Tunica in May 2011; MGM China reported record Adjusted Property EBITDA of $187 million, which included $12 million of branding fee expense; excluding these fees, Adjusted Property EBITDA increased 14% over MGM Macau's prior year quarter; and CityCenter reported record Adjusted Property EBITDA for resort operations, increasing 11% from the prior year quarter to $71 million."Our wholly owned domestic resorts Adjusted Property EBITDA grew 4% year over year and we achieved record quarters for both MGM China and CityCenter," said Jim Murren, MGM Resorts International Chairman and CEO. "We continue to focus on maximizing profitability by managing costs, improving our customer relationships via M life and social media outlets such as myVEGAS, as well as exploring growth opportunities in key strategic regions across the U.S. and internationally."Certain Items Affecting Second Quarter ResultsThe following table lists items that affect the comparability of the current and prior year quarterly results (approximate diluted per share impact on net income (loss) attributable to MGM Resorts International, net of tax; negative amounts represent charges to income):Three months ended June 30,                        20122011Property transactions, net:     Investment in Grand Victoria impairment $  (0.11)$      ?     Other property transactions, net (0.01)?Gain on MGM China transaction ?6.30Income (loss) from unconsolidated affiliates:     CityCenter residential non-cash impairment charge ?(0.03)Income tax provision:     Macau shareholder dividend tax 0.07?     Deferred tax valuation allowance (0.13)?Current quarter results were affected by certain tax provision items discussed below and a non-cash impairment charge of $85 million related to the Company's joint venture investment in Grand Victoria. The prior year quarter included a $3.5 billion gain recognized on consolidation of MGM China in June 2011 and a $26 million non-cash impairment charge related to the Company's share of a residential impairment charge at CityCenter. The current quarter income tax provision was affected by a valuation allowance for a portion of U.S. deferred tax assets and by a net tax benefit resulting from entering into an annual fee arrangement with the Macau government with respect to the complementary tax on dividend distributions of MGM Macau covering the years 2007 through 2011, including the dividend distributed in the first quarter of this year.  All taxes previously accrued on MGM Macau dividends distributed in prior quarters were reversed and the cumulative agreed upon annual fee was recorded during the quarter.Wholly Owned Domestic Resorts Casino revenue related to wholly owned domestic resorts decreased 1% compared to the prior year quarter. The overall table games hold percentage in the second quarter of 2012 was 17.7% compared to 18.2% for the prior year second quarter. Slots revenue was flat compared to the prior year quarter. Rooms revenue increased 3% with Las Vegas Strip REVPAR up 5%.  The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:Three months ended June 30,                             20122011Occupancy %       94%94%Average Daily Rate (ADR)      $    131$   126Revenue per Available Room (REVPAR)    $    124$   118Operating income for the Company's wholly owned domestic resorts for the second quarter of 2012 was $214 million, an increase of 10% compared to the prior year quarter, partially due to lower depreciation and amortization expense.  Adjusted Property EBITDA for wholly owned domestic resorts increased 4% to $345 million for the second quarter of 2012.  Operating income and Adjusted Property EBITDA were negatively affected by approximately $12 million in the prior year quarter as a result of the temporary closure of Gold Strike Tunica in May 2011.MGM ChinaThe following are the key second quarter results for MGM China:MGM China earned net revenue of $709 million, a 6% increase over the prior year quarter driven by increases in volume for main floor table games and slots of 7% and 39%, respectively. VIP table games turnover decreased 6% from the prior year quarter, while hold percentage was 3.3% in the current year quarter compared to 3.1% in the prior year quarter; and MGM China's operating income was $90 million and Adjusted Property EBITDA was $187 million, which included $12 million of branding fee expense. Excluding branding fees, Adjusted Property EBITDA increased 14% over MGM Macau's prior year second quarter results.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 the Company's income (loss) from unconsolidated affiliates: Three months ended June 30,                       20122011(In thousands)  CityCenter           $     642$     (32,483)  MGM Macau ?53,539  Other           5,34410,971$  5,986$      32,027Results for CityCenter Holdings, LLC for the second quarter of 2012 include the following (see schedules accompanying this release for further detail on CityCenter's second quarter results): Net revenue from resort operations increased 3% to $282 million; Adjusted Property EBITDA from resort operations was $71 million compared to $64 million in the prior year quarter; Aria's table games hold percentage for the second quarter of 2012 was 24.0% compared to 29.2% for the prior year quarter.  The estimated effect of the decrease in hold percentage compared to the prior year quarter for net revenue and Adjusted Property EBITDA was $16 million and $13 million, respectively; and Aria's occupancy percentage was 93% and its ADR was $201, resulting in REVPAR of $187, a 3% increase compared to the prior year second quarter. Financial PositionThe Company's cash balance at June 30, 2012 was $1.7 billion, which included approximately $658 million of cash and cash equivalents related to MGM China.  At June 30, 2012, the Company had approximately $13.4 billion of indebtedness, including $1.3 billion of borrowings outstanding under its senior credit facility and $553 million related to the MGM China credit facility.At June 30, 2012, the Company's senior credit facility consisted of approximately $820 million in term loans and a $1.3 billion revolver (approximately $360 million of which has not been extended and matures in February 2014) and had approximately $855 million of available borrowing capacity. The interest rate on extending loans was 5% at June 30, 2012.  Interest on non-extending revolving loans remains at 7%. "We remain focused on improving our free cash flow and deleveraging our balance sheet.  One way we expect to be able to do this is by lowering our cost of capital.  We envision an environment in the near future where we will have the opportunity to refinance some of our long-term capital at progressively lower rates," said Dan D'Arrigo, MGM Resorts International Executive Vice President, CFO and Treasurer.  "A good example of this is our recently launched five year $1.5 billion refinancing in Macau.  The reception from our lenders has been very strong and we expect to finalize this transaction at attractive rates in the near future."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 1-706-634-6528 for international callers.  The conference call access code is 99179146.  A replay of the call will be available through Tuesday, August 14, 2012. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 99179146. 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, 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 and our ability to refinance indebtedness including the finalization of the new credit facility in Macau at attractive rates. 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, financings, 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 EndedSix Months EndedJune 30,June 30,June 30,June 30,2012201120122011Revenues:Casino$ 1,299,196$ 797,495$ 2,634,230$ 1,387,715Rooms418,766396,791812,386765,128Food and beverage391,891371,960764,844708,784Entertainment120,909130,094241,309249,687Retail52,08654,29298,710100,442Other132,900128,826246,023243,049Reimbursed costs90,93889,482181,477175,7702,506,6861,968,9404,978,9793,630,575Less: Promotional allowances(182,921)(162,955)(367,624)(311,739)2,323,7651,805,9854,611,3553,318,836Expenses:Casino826,211485,9651,693,685836,730Rooms129,897123,886256,052240,872Food and beverage222,567215,899434,206414,147Entertainment88,55994,505177,347182,716Retail29,24132,47956,82461,638Other88,83588,392175,057166,689Reimbursed costs90,93889,482181,477175,770General and administrative309,478301,582612,767571,144Corporate expense42,54040,01684,80076,501Preopening and start-up expenses -(316)-(316)Property transactions, net90,46790091,384991Gain on MGM China transaction-(3,496,005)-(3,496,005)Depreciation and amortization235,643177,467472,452329,8642,154,376(1,845,748)4,236,051(439,259)Income (loss) from unconsolidated affiliates5,98632,027(7,323)95,370Operating income 175,3753,683,760367,9813,853,465Non-operating income (expense):Interest expense(276,323)(270,224)(560,665)(540,138)Non-operating items from unconsolidated affiliates(20,836)(28,002)(47,702)(68,292)Other, net46(13,017)(57,530)(16,972)(297,113)(311,243)(665,897)(625,402)Income (loss) before income taxes(121,738)3,372,517(297,916)3,228,063Benefit for income taxes51,30478,17424,175132,757Net income (loss)(70,434)3,450,691(273,741)3,360,820Less: net income attributable to noncontrolling interests(75,018)(8,706)(88,964)(8,706)Net income (loss) attributable to MGM Resorts International$ (145,452)$ 3,441,985$ (362,705)$ 3,352,114Per share of common stock:Basic:Net income (loss) attributable to MGM Resorts International$ (0.30)$ 7.04$ (0.74)$ 6.86Weighted average shares outstanding488,931488,609488,896488,574Diluted:Net income (loss) attributable to MGM Resorts International$ (0.30)$ 6.22$ (0.74)$ 6.09Weighted average shares outstanding488,931554,890488,896553,690MGM RESORTS INTERNATIONAL AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except share data)(Unaudited)June 30,December 31,20122011ASSETSCurrent assets:Cash and cash equivalents$ 1,731,921$ 1,865,913Accounts receivable, net478,588491,730Inventories113,316112,735Deferred income taxes, net122,13491,060Prepaid expenses and other231,458251,282            Total current assets2,677,4172,812,720Property and equipment, net14,783,17714,866,644Other assets:Investments in and advances to unconsolidated affiliates1,498,8641,635,572Goodwill 2,900,2372,896,609Other intangible assets, net4,889,3115,048,117Other long-term assets, net514,002506,614            Total other assets9,802,41410,086,912$ 27,263,008$ 27,766,276LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$ 171,878$ 170,994Income taxes payable3367,611Current portion of long-term debt141,674-Accrued interest on long-term debt251,373203,422Other accrued liabilities1,364,1231,362,737            Total current liabilities1,929,3841,744,764Deferred income taxes 2,513,8402,502,096Long-term debt13,225,31913,470,167Other long-term obligations182,258167,027Stockholders' equity:Common stock, $.01 par value: authorized 1,000,000,000 shares,     issued and outstanding 488,940,301 and 488,834,773 shares 4,8894,888Capital in excess of par value4,091,1664,094,323Retained earnings 1,618,6841,981,389Accumulated other comprehensive income 11,0465,978            Total MGM Resorts International stockholders' equity5,725,7856,086,578Noncontrolling interests3,686,4223,795,644            Total stockholders' equity9,412,2079,882,222$ 27,263,008$ 27,766,276MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - NET REVENUES(In thousands)(Unaudited)Three Months EndedSix Months EndedJune 30,June 30,June 30,June 30,2012201120122011Bellagio$ 296,385$ 278,058$ 580,732$ 530,008MGM Grand Las Vegas230,396239,451462,876464,581Mandalay Bay192,465209,025372,391388,359The Mirage 146,239144,425294,468292,923Luxor84,71784,442166,643164,217New York-New York 69,01768,721139,641133,698Excalibur68,27567,478130,999128,510Monte Carlo66,45665,695131,363128,281Circus Circus Las Vegas54,11550,441101,79993,135MGM Grand Detroit141,805142,229292,392286,140Beau Rivage86,89990,615173,550171,735Gold Strike Tunica35,90830,97276,00868,070Other resort operations32,55133,75661,96462,081 Wholly owned domestic resorts1,505,2281,505,3082,984,8262,911,738MGM China(1)709,296192,9841,411,386192,984Management and other operations109,241107,693215,143214,114$ 2,323,765$ 1,805,985$ 4,611,355$ 3,318,836(1) 2011 amounts represent 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 June 30, 2011.MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA(In thousands)(Unaudited)Three Months EndedSix Months EndedJune 30,June 30,June 30,June 30,2012201120122011Bellagio$ 83,352$ 77,370$ 153,796$ 131,271MGM Grand Las Vegas29,03235,55766,35772,425Mandalay Bay47,39951,60186,21388,045The Mirage 25,06724,34052,48656,739Luxor17,34518,84135,70938,955New York-New York 23,66222,22347,97543,351Excalibur19,12518,36933,30434,511Monte Carlo16,40815,64431,40429,404Circus Circus Las Vegas8,1487,05313,28911,626MGM Grand Detroit43,33742,16385,57685,696Beau Rivage19,40119,28836,45132,424Gold Strike Tunica11,041(1,693)22,6217,755Other resort operations1,841630949(854) Wholly owned domestic resorts345,158331,386666,130631,348MGM China(1)186,56046,422351,08146,422MGM Macau (50%)(2)-53,539-115,219CityCenter (50%)(3)642(32,483)(17,931)(38,306)Other unconsolidated resorts(3)5,34410,97110,60818,457Management and other operations10,10491314,8031,522$ 547,808$ 410,748$ 1,024,691$ 774,662(1) 2011 amounts represent the Adjusted EBITDA of MGM China from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through June 30, 2011.(2) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences for the approximately two and five months ended June 2, 2011.(3) Represents the Company's share of operating income (loss), 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 June 30, 2012Operatingincome (loss)Preopening andstart-upexpensesPropertytransactions, netDepreciationandamortizationAdjustedEBITDABellagio$ 58,322$ -$ 354$ 24,676$ 83,352MGM Grand Las Vegas8,072-80320,15729,032Mandalay Bay26,963-54519,89147,399The Mirage 12,240-5712,77025,067Luxor8,406-1858,75417,345New York-New York 18,002-2435,41723,662Excalibur14,769-34,35319,125Monte Carlo10,930-5534,92516,408Circus Circus Las Vegas3,036-775,0358,148MGM Grand Detroit32,431-88410,02243,337Beau Rivage11,727-87,66619,401Gold Strike Tunica7,713-23,32611,041Other resort operations1,184-66511,841 Wholly owned domestic resorts213,795-3,720127,643345,158MGM China90,215-1,46494,881186,560CityCenter (50%)642---642Other unconsolidated resorts5,344---5,344Management and other operations6,855--3,24910,104316,851-5,184225,773547,808Stock compensation(8,769)---(8,769)Corporate (132,707)-85,2839,870(37,554)$ 175,375$ -$ 90,467$ 235,643$ 501,485Three Months Ended June 30, 2011Operatingincome (loss)Preopening andstart-upexpensesGain on MGMChina transactionand Propertytransactions, netDepreciationandamortizationAdjustedEBITDABellagio$ 52,732$ -$ 317$ 24,321$ 77,370MGM Grand Las Vegas16,324--19,23335,557Mandalay Bay29,810-1621,77551,601The Mirage 10,395-1113,93424,340Luxor9,349-69,48618,841New York-New York 15,999--6,22422,223Excalibur13,105-2105,05418,369Monte Carlo9,516-286,10015,644Circus Circus Las Vegas2,295-(8)4,7667,053MGM Grand Detroit32,139-2699,75542,163Beau Rivage8,217-1911,05219,288Gold Strike Tunica(5,063)--3,370(1,693)Other resort operations(601)-241,207630 Wholly owned domestic resorts194,217-892136,277331,386MGM China19,448-1326,96146,422MGM Macau (50%)53,539---53,539CityCenter (50%)(32,483)---(32,483)Other unconsolidated resorts10,971---10,971Management and other operations(2,296)(316)(5)3,530913243,396(316)900166,768410,748Stock compensation(8,995)---(8,995)Corporate 3,449,359-(3,496,005)10,699(35,947)$ 3,683,760$ (316)$ (3,495,105)$ 177,467$ 365,806MGM RESORTS INTERNATIONAL AND SUBSIDIARIESRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA(In thousands)(Unaudited)Six Months Ended June 30, 2012Operatingincome (loss)Preopening andstart-upexpensesPropertytransactions, netDepreciation andamortizationAdjustedEBITDABellagio$ 105,420$ -$ 354$ 48,022$ 153,796MGM Grand Las Vegas26,421-1,13038,80666,357Mandalay Bay45,566-54540,10286,213The Mirage 26,742-7025,67452,486Luxor17,615-18517,90935,709New York-New York 36,699-24311,03347,975Excalibur24,391-38,91033,304Monte Carlo20,903-5589,94331,404Circus Circus Las Vegas3,538-779,67413,289MGM Grand Detroit64,769-88419,92385,576Beau Rivage21,123-815,32036,451Gold Strike Tunica15,933-26,68622,621Other resort operations(218)-(14)1,181949 Wholly owned domestic resorts408,902-4,045253,183666,130MGM China158,342-1,464191,275351,081CityCenter (50%)(17,931)---(17,931)Other unconsolidated resorts10,608---10,608Management and other operations7,266--7,53714,803567,187-5,509451,9951,024,691Stock compensation(18,101)---(18,101)Corporate (181,105)-85,87520,457(74,773)$ 367,981$ -$ 91,384$ 472,452$ 931,817Six Months Ended June 30, 2011Operatingincome (loss)Preopening andstart-upexpensesGain on MGMChina transactionand Propertytransactions, netDepreciationandamortizationAdjustedEBITDABellagio$ 81,546$ -$ 317$ 49,408$ 131,271MGM Grand Las Vegas33,892--38,53372,425Mandalay Bay44,052-1643,97788,045The Mirage 28,415-3928,28556,739Luxor19,824-619,12538,955New York-New York 31,282-(85)12,15443,351Excalibur24,053-21010,24834,511Monte Carlo17,481-2811,89529,404Circus Circus Las Vegas2,151-(8)9,48311,626MGM Grand Detroit65,829-37219,49585,696Beau Rivage10,150-5822,21632,424Gold Strike Tunica945--6,8107,755Other resort operations(3,333)-172,462(854) Wholly owned domestic resorts356,287-970274,091631,348MGM China19,448-1326,96146,422MGM Macau (50%)115,219---115,219CityCenter (50%)(38,306)---(38,306)Other unconsolidated resorts18,457---18,457Management and other operations(5,289)(316)(5)7,1321,522465,816(316)978308,184774,662Stock compensation(18,205)---(18,205)Corporate 3,405,854-(3,495,992)21,680(68,458)$ 3,853,465$ (316)$ (3,495,014)$ 329,864$ 687,999MGM RESORTS INTERNATIONAL AND SUBSIDIARIESRECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)(In thousands)(Unaudited)Three Months EndedSix Months EndedJune 30,June 30,June 30,June 30,2012201120122011Adjusted EBITDA$ 501,485$ 365,806$ 931,817$ 687,999  Preopening and start-up expenses-316-316  Property transactions, net(90,467)(900)(91,384)(991)  Gain on MGM China transaction-3,496,005-3,496,005  Depreciation and amortization(235,643)(177,467)(472,452)(329,864)Operating income175,3753,683,760367,9813,853,465Non-operating income (expense):  Interest expense(276,323)(270,224)(560,665)(540,138)  Other, net(20,790)(41,019)(105,232)(85,264)(297,113)(311,243)(665,897)(625,402)Income (loss) before income taxes(121,738)3,372,517(297,916)3,228,063  Benefit for income taxes51,30478,17424,175132,757Net income (loss)(70,434)3,450,691(273,741)3,360,820  Less: net income attributable to noncontrolling interests(75,018)(8,706)(88,964)(8,706)Net income (loss) attributable to MGM Resorts International$ (145,452)$ 3,441,985$ (362,705)$ 3,352,114MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP(Unaudited)Three Months EndedSix Months EndedJune 30,June 30,June 30,June 30,2012201120122011Bellagio  Occupancy %96.9%96.6%95.0%93.7%  Average daily rate (ADR)$237$224$234$224  Revenue per available room (REVPAR)$230$216$223$210MGM Grand Las Vegas  Occupancy %96.3%96.8%94.9%93.7%  ADR$141$125$141$130  REVPAR$136$121$134$122Mandalay Bay   Occupancy %95.4%95.3%92.7%92.3%  ADR$183$178$184$177  REVPAR$174$170$171$163The Mirage  Occupancy %98.4%97.5%95.6%95.3%  ADR$151$145$153$147  REVPAR$149$141$146$140Luxor   Occupancy %93.3%93.7%92.0%90.4%  ADR  $91$91$90$92  REVPAR$85$85$83$83New York-New York  Occupancy %97.1%96.0%96.0%94.0%  ADR$112$107$111$108  REVPAR$109$103$106$102Excalibur   Occupancy %94.0%92.9%90.7%88.7%  ADR$72$72$72$73  REVPAR$68$67$65$65Monte Carlo   Occupancy %97.5%95.2%95.6%93.5%  ADR$106$98$104$98  REVPAR$104$94$99$92Circus Circus Las Vegas  Occupancy %83.2%78.3%79.6%70.5%  ADR$56$54$55$56  REVPAR$47$42$44$39CITYCENTER HOLDINGS, LLCSUPPLEMENTAL DATA - NET REVENUES(In thousands)(Unaudited)Three Months EndedSix Months EndedJune 30,June 30,June 30,June 30,2012201120122011Aria$ 233,634$ 233,001$ 421,466$ 458,463Vdara23,11419,76444,56335,170Crystals13,13311,17125,46022,884Mandarin Oriental12,02210,92424,72321,245 Resort operations281,903274,860516,212537,762Residential operations8,2426,42112,85015,142$ 290,145$ 281,281$ 529,062$ 552,904CITYCENTER HOLDINGS, LLCRECONCILIATION OF ADJUSTED EBITDA TO NET LOSS(In thousands)(Unaudited)Three Months EndedSix Months EndedJune 30,June 30,June 30,June 30,2012201120122011Adjusted EBITDA$ 65,195$ 57,006$ 93,790$ 111,888  Property transactions, net(70)(53,338)(2,079)(53,356)  Depreciation and amortization(88,109)(93,421)(176,152)(185,177)Operating loss(22,984)(89,753)(84,441)(126,645)Non-operating income (expense):  Interest expense - sponsor notes(22,298)(19,171)(43,851)(37,607)  Interest expense - other(42,926)(47,992)(88,968)(95,049)  Other, net1,143947(6,640)(21,695)(64,081)(66,216)(139,459)(154,351)Net loss$ (87,065)$ (155,969)$ (223,900)$ (280,996)CITYCENTER HOLDINGS, LLCRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA(In thousands)(Unaudited)Three Months Ended June 30, 2012Operatingincome (loss)Preopening andstart-upexpensesPropertytransactions,netDepreciationandamortizationAdjustedEBITDAAria$ (10,004)$ -$ (9)$ 65,935$ 55,922Vdara(3,667)--10,3086,641Crystals1,961--6,3058,266Mandarin Oriental(4,245)--4,524279 Resort operations(15,955)-(9)87,07271,108Residential operations(299)--984685Development and administration(6,730)-7953(6,598)$ (22,984)$ -$ 70$ 88,109$ 65,195Three Months Ended June 30, 2011Operatingincome (loss)Preopening andstart-upexpensesPropertytransactions,netDepreciationandamortizationAdjustedEBITDAAria$ (21,035)$ -$ -$ 74,080$ 53,045Vdara(2,495)--7,9115,416Crystals(102)--5,7855,683Mandarin Oriental(4,733)--4,549(184) Resort operations(28,365)--92,32563,960Residential operations(56,477)-52,624949(2,904)Development and administration(4,911)-714147(4,050)$ (89,753)$ -$ 53,338$ 93,421$ 57,006CITYCENTER HOLDINGS, LLCRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA(In thousands)(Unaudited)Six Months Ended June 30, 2012Operatingincome (loss)Preopening andstart-upexpensesPropertytransactions,netDepreciationandamortizationAdjustedEBITDAAria$ (59,185)$ -$ 1,986$ 131,650$ 74,451Vdara(8,609)--20,68612,077Crystals2,661--12,71115,372Mandarin Oriental(7,790)--9,0391,249 Resort operations(72,923)-1,986174,086103,149Residential operations(1,764)--1,952188Development and administration(9,754)-93114(9,547)$ (84,441)$ -$ 2,079$ 176,152$ 93,790Six Months Ended June 30, 2011Operatingincome (loss)Preopening andstart-upexpensesPropertytransactions,netDepreciationandamortizationAdjustedEBITDAAria$ (33,853)$ -$ -$ 141,907$ 108,054Vdara(9,740)--18,3748,634Crystals(2,389)--13,70311,314Mandarin Oriental(9,186)--9,517331 Resort operations(55,168)--183,501128,333Residential operations(62,068)-52,6241,430(8,014)Development and administration(9,409)-732246(8,431)$ (126,645)$ -$ 53,356$ 185,177$ 111,888CITYCENTER HOLDINGS, LLCSUPPLEMENTAL DATA - HOTEL STATISTICS(Unaudited)Three Months EndedSix Months EndedJune 30,June 30,June 30,June 30,2012201120122011Aria  Occupancy %92.7%89.7%89.6%87.7%  ADR$201$202$203$201  REVPAR$187$181$182$177Vdara  Occupancy %89.0%91.0%85.0%87.4%  ADR$161$159$162$159  REVPAR$143$144$137$139SOURCE MGM Resorts InternationalFor further information: MGM RESORTS: 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, afeldman@mgmresorts.com