MGM MIRAGE (NYSE: MGG) today reported earnings before nonrecurring expenses of 18 cents per diluted share for the 2001 fourth quarter, compared with 43 cents per diluted share in the 2000 quarter. Consolidated net revenue was down 13% to $896.3 million in the 2001 quarter compared with $1.03 billion in the comparable 2000 quarter. For the three months ended December 31, 2001, operating cash flow ("EBITDA") was $228.2 million when compared with $317.3 million in the prior year's quarter. Net income before nonrecurring expenses during the 2001 quarter was $27.9 million compared with $69.2 million in the prior year's quarter. Including nonrecurring expenses, the Company reported net income of $23.7 million, or 15 cents per diluted share compared with $68 million, or 42 cents per diluted share in the prior year's quarter.
While these results reflect a substantial decline in business activity at the Las Vegas resorts following September 11, 2001, the Company's hotel and casino volumes steadily improved throughout the fourth quarter. During the 2001 fourth quarter, weekend occupancy quickly rebounded to prior year levels, while comparative trends improved during the mid-week timeframe. Improved occupancy was achieved in part through a comprehensive marketing strategy designed to maximize business volumes in our resorts. This recovery in customer traffic enabled the Company to continue to improve its casino, food and beverage and retail revenue.
"Revenue and cost strategies deployed in the weeks following September 11th have had the desired results. Our focus on rebuilding our business while keeping a keen eye on costs was intended to return our operations to previous levels as quickly as possible," said Terry Lanni, Chairman and Chief Executive Officer of MGM MIRAGE. "While mindful of the challenges inherent in a global economic slowdown and continued consumer sensitivity to travel, current trends in our resorts indicate that casino and non-casino business should continue to improve throughout 2002."
2001 Company Highlights
-- Revenues grew to $4.01 billion, up 29%
-- EBITDA increased 14% to $1.13 billion
-- Bellagio became the largest hotel ever awarded the AAA Five Diamond
Award
-- Reduced debt by $422 million, bringing the total debt reduction to
$949 million since the acquisition of Mirage Resorts
-- Successfully amended and extended our $800 million 364-Day Credit
Facility in April
-- Issued $400 million Senior Subordinated 10-year Notes at 8.375% in
February
-- Extinguished the $1.3 billion Term Loan using free cash flow and bond
proceeds
-- Purchased 2.2 million shares of Company common stock at an average
cost of $20.47 per share
-- Sold $27 million in non-strategic assets, bringing the total assets
sold since the Mirage acquisition to $256 million
-- Completed the integration of the Mirage acquisition
-- Awarded Internet Gaming license from the Isle of Man
-- Successfully opened the Mirage Events Center at The Mirage, ESPNZone
and Coyote Ugly at New York - New York, Kahunaville at Treasure
Island, NOBHILL and Pearl at the MGM Grand and Nectar and Light at
Bellagio
-- Continued the development of our player affinity program scheduled to
debut in 2002
-- Construction of Borgata, our 50% owned resort, continues to be on
time and on budget
For the twelve months ended December 31, 2001, the Company reported earnings before nonrecurring expenses of $1.37 per diluted share compared with $1.70 per diluted share in the prior year. Consolidated net revenue increased 29% from $3.11 billion in 2000 to $4.01 billion in 2001. EBITDA for the twelve months ended December 31, 2001 was $1.13 billion, up 14% when compared with $997.1 million in 2000. Net income before nonrecurring expenses was $220.5 million during 2001 compared with $251.6 million in the prior year. Including nonrecurring expenses, the Company reported net income of $169.8 million, or $1.06 per diluted share compared with $160.7 million, or $1.09 per diluted share in the prior year. The 2001 operating results reflect the full year impact of the Mirage acquisition, which was completed in May 2000.
"It now seems clear that no city in the United States has rebounded as quickly and profoundly as Las Vegas. We own the resorts of choice in that marketplace," said Jim Murren, President and CFO of MGM MIRAGE. "Our financial condition is solid. We have dramatically reduced debt over the past year and a half, including $100 million this month alone. Our cost containment strategies are aimed at improving margins throughout the year. We intend to utilize our free cash flow to further deleverage throughout 2002."
As of December 31, 2001, the Company had approximately $727 million of available liquidity under its various lines of credit. The Company has no public debt maturities until 2005.
"Our business has been far more resilient than anyone expected," said Mr. Lanni. "We will continue to capitalize on our competitive advantages and lead the recovery currently underway in Las Vegas, while not losing sight of the myriad of growth opportunities afforded our Company both nationally and internationally."
MGM MIRAGE is an entertainment, hotel and gaming company headquartered in Las Vegas, Nevada, which owns and/or operates through subsidiaries 19 casino properties on three continents. Its U.S. holdings include: Bellagio, the MGM Grand Hotel and Casino -- The City of Entertainment, The Mirage, Treasure Island, New York - New York Hotel and Casino, the Boardwalk Hotel and Casino and 50% of Monte Carlo, all located on the Las Vegas Strip; the Golden Nugget in Downtown Las Vegas; Whiskey Pete's, Buffalo Bill's, the Primm Valley Resort and two championship golf courses at the California/Nevada state line; the exclusive Shadow Creek golf course in North Las Vegas; the Golden Nugget in Laughlin, Nevada; the Beau Rivage resort on the Mississippi Gulf Coast; and the MGM Grand Detroit Casino in Detroit, Michigan. The Company is a joint venture partner on Borgata at Renaissance Pointe, a resort under development in Atlantic City, New Jersey and also controls several development sites in the ocean-front resort community. Internationally, MGM MIRAGE owns and operates the MGM Grand Hotel and Casino in Darwin, Australia and manages casinos in Nelspruit, Witbank, Johannesburg and East London, Republic of South Africa.
For more information on MGM MIRAGE and its operating subsidiaries, visit our website at http://www.mgmmirage.com/.
Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.
MGM MIRAGE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
Revenues:
Casino $487,677 $574,139 $2,163,808 $1,785,978
Rooms 183,603 216,366 846,215 614,707
Food and beverage 167,359 178,364 723,745 511,180
Entertainment,
retail and other 149,146 152,016 646,105 457,898
Income from
unconsolidated
affiliate 6,547 10,314 36,816 22,068
994,332 1,131,199 4,416,689 3,391,831
Less: promotional
allowances 98,051 101,202 407,071 286,343
896,281 1,029,997 4,009,618 3,105,488
Expenses:
Casino 267,457 292,932 1,127,065 859,305
Rooms 53,377 61,558 239,725 183,760
Food and beverage 95,076 101,232 415,015 297,602
Entertainment,
retail and other 96,573 98,856 425,536 287,665
Provision for
doubtful accounts 12,499 18,109 71,244 42,016
General and
administrative 143,103 140,002 597,899 438,082
Preopening
expenses and other 2,035 1,816 5,106 5,624
Restructuring costs 3,825 -- 23,721 23,519
Write-Downs and
Impairments 571 -- 47,955 102,225
Depreciation and
amortization 98,692 96,085 390,726 293,181
773,208 810,590 3,343,992 2,532,979
Operating Profit 123,073 219,407 665,626 572,509
Corporate Expense 8,117 10,158 37,724 34,793
Operating Income 114,956 209,249 627,902 537,716
Non-Operating Income
(Expense):
Interest income 918 2,686 6,106 12,964
Interest expense,
net (75,281) (98,520) (349,478) (272,856)
Interest expense
from unconsolidated
affiliate (378) (849) (2,370) (2,043)
Other, net (1,660) (47) (4,571) (741)
(76,401) (96,730) (350,313) (262,676)
Income Before Income
Taxes and
Extraordinary Item 38,555 112,519 277,589 275,040
Provision for
income taxes (14,867) (44,517) (106,996) (108,880)
Income Before
Extraordinary Item 23,688 68,002 170,593 166,160
Extraordinary Item:
Loss on Early
Extinguishment
of Debt, net -- -- (778) (5,416)
Net Income $ 23,688 $ 68,002 $ 169,815 $ 160,744
Income Before
Preopening and Other,
Restructuring,
Write-Downs and
Impairments and
Extraordinary
Item $ 27,868 $ 69,183 $ 220,501 $ 251,550
MGM MIRAGE AND SUBSIDIARIES
PER SHARE OF COMMON STOCK
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
Per Share Of
Common Stock:
Basic:
Income Before
Extraordinary
Item $ 0.15 $ 0.43 $ 1.07 $ 1.15
Extraordinary
Item, net -- -- -- (0.04)
Net Income
Per Share $ 0.15 $ 0.43 $ 1.07 $ 1.11
Weighted Average
Shares Outstanding
(000's) 157,336 159,037 158,771 145,300
Diluted:
Income Before
Extraordinary
Item $ 0.15 $ 0.42 $ 1.06 $ 1.13
Extraordinary
Item, net -- -- -- (0.04)
Net Income
Per Share $ 0.15 $ 0.42 $ 1.06 $ 1.09
Weighted Average
Shares Outstanding
(000's) 158,994 161,621 160,822 147,901
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA PER SHARE OF COMMON STOCK
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
Per Share Of
Common Stock:
Basic:
Income Before
Preopening and
other, Restructuring,
Write-Downs and
Impairments and
Extraordinary
Item $ 0.18 $ 0.44 $ 1.39 $ 1.75
Preopening
expenses
and Other, net (0.01) (0.01) (0.02) (0.03)
Restructuring
costs, net (0.02) -- (0.10) (0.11)
Write-Downs and
Impairments, net -- -- (0.20) (0.46)
Extraordinary
Item, net -- -- -- (0.04)
Net Income
Per Share $ 0.15 $ 0.43 $ 1.07 $ 1.11
Weighted Average
Shares Outstanding
(000's) 157,336 159,037 158,771 145,300
Diluted:
Income Before
Preopening and
other, Restructuring,
Write-Downs and
Impairments and
Extraordinary
Item $ 0.18 $ 0.43 $ 1.37 $ 1.70
Preopening
expenses and
Other, net (0.01) (0.01) (0.02) (0.02)
Restructuring
costs, net (0.02) -- (0.10) (0.10)
Write-Downs and
Impairments, net -- -- (0.19) (0.45)
Extraordinary
Item, net -- -- -- (0.04)
Net Income
Per Share $ 0.15 $ 0.42 $ 1.06 $ 1.09
Weighted Average
Shares Outstanding
(000's) 158,994 161,621 160,822 147,901
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - PROPERTY OPERATING RESULTS
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
NET REVENUES:
Bellagio (1) $202,183 $ 252,474 $ 936,279 $ 567,100
MGM Grand
Las Vegas 156,545 198,039 714,859 764,098
The Mirage (1) 124,280 152,340 602,566 351,763
Treasure Island (1) 78,012 90,120 354,952 212,872
New York-New York 47,360 52,570 209,312 215,754
Primm Properties 46,920 53,012 206,676 239,551
Golden Nugget
Las Vegas (1) 43,033 44,218 176,242 100,224
Golden Nugget
Laughlin (1) 11,018 10,686 46,740 24,993
MGM Grand Detroit 96,294 91,678 360,334 394,258
Beau Rivage (1) 67,375 64,868 294,543 171,004
Income from
Unconsolidated
Affiliate (1) 6,547 10,314 36,816 22,068
Boardwalk (1) 7,577 -- 34,246 --
MGM Grand Australia 8,356 8,564 31,784 36,641
MGM Grand
South Africa 781 1,114 4,269 5,162
$896,281 $1,029,997 $4,009,618 $3,105,488
EBITDA:
Bellagio (1) $ 56,186 $ 88,118 $ 288,352 $ 191,807
MGM Grand
Las Vegas 35,387 54,026 174,266 221,365
The Mirage (1) 26,175 41,261 155,243 93,939
Treasure Island (1) 17,074 26,818 94,160 62,400
New York-New York 17,251 22,579 82,527 96,353
Primm Properties 8,172 14,644 42,309 75,055
Golden Nugget
Las Vegas (1) 7,563 8,053 32,671 17,753
Golden Nugget
Laughlin (1) 704 636 3,613 1,903
MGM Grand Detroit 40,418 34,109 144,346 156,683
Beau Rivage (1) 7,811 11,450 56,372 37,135
Income from
Unconsolidated
Affiliate (1) 6,547 10,314 36,816 22,068
Boardwalk (1) 307 -- 4,539 --
MGM Grand Australia 3,838 4,209 13,715 15,532
MGM Grand
South Africa 763 1,091 4,205 5,065
$228,196 $ 317,308 $1,133,134 $ 997,058
Note:
(1) The Company acquired Mirage Resorts, Incorporated on May 31, 2000,
thereby acquiring the Mirage Properties and 50% ownership in the
Monte Carlo Resort & Casino.
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - PRO FORMA PROPERTY OPERATING RESULTS
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2001 2000 2001 2000 (1)
NET REVENUES:
Bellagio $202,183 $ 252,474 $ 936,279 $ 956,216
MGM Grand
Las Vegas 156,545 198,039 714,859 764,098
The Mirage 124,280 152,340 602,566 620,513
Treasure Island 78,012 90,120 354,952 370,402
New York-New York 47,360 52,570 209,312 215,754
Primm Properties 46,920 53,012 206,676 239,551
Golden Nugget
Las Vegas 43,033 44,218 176,242 176,555
Golden Nugget
Laughlin 11,018 10,686 46,740 45,718
MGM Grand Detroit 96,294 91,678 360,334 394,258
Beau Rivage 67,375 64,868 294,543 298,827
Income from
Unconsolidated
Affiliate 6,547 10,314 36,816 38,630
Boardwalk 7,577 9,367 34,246 38,262
MGM Grand Australia 8,356 8,564 31,784 36,641
MGM Grand
South Africa 781 1,114 4,269 5,162
$896,281 $1,039,364 $4,009,618 $4,200,587
EBITDA:
Bellagio $ 56,186 $ 88,118 $ 288,352 $ 294,645
MGM Grand
Las Vegas 35,387 54,026 174,266 221,365
The Mirage 26,175 41,261 155,243 173,123
Treasure Island 17,074 26,818 94,160 110,150
New York-New York 17,251 22,579 82,527 96,353
Primm Properties 8,172 14,644 42,309 75,055
Golden Nugget
Las Vegas 7,563 8,053 32,671 35,098
Golden Nugget
Laughlin 704 636 3,613 5,782
MGM Grand Detroit 40,418 34,109 144,346 156,683
Beau Rivage 7,811 11,450 56,372 67,129
Income from
Unconsolidated
Affiliate 6,547 10,314 36,816 38,630
Boardwalk 307 1,400 4,539 6,471
MGM Grand Australia 3,838 4,209 13,715 15,532
MGM Grand
South Africa 763 1,091 4,205 5,065
$228,196 $ 318,708 $ 1,133,134 $1,301,081
Note:
(1) Pro forma amounts for 2000 include Mirage results for the period
prior to the acquisition.
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL INFORMATION
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2001 2000 2001 2000
ROOM STATISTICS:
Bellagio (1)
Occupancy % 91.3% 94.9% 94.1% 97.7%
Average Daily Rate
(ADR) $156 $179 $174 $169
Revenue per
Available Room
(REVPAR) $143 $170 $163 $165
MGM Grand Las Vegas
Occupancy % 81.7% 92.1% 91.2% 96.8%
Average Daily Rate
(ADR) $107 $115 $112 $110
Revenue per
Available Room
(REVPAR) $87 $106 $103 $106
The Mirage (1)
Occupancy % 89.7% 95.6% 94.3% 97.2%
Average Daily Rate
(ADR) $105 $123 $119 $118
Revenue per
Available Room
(REVPAR) $94 $117 $112 $115
Treasure Island (1)
Occupancy % 90.5% 93.5% 94.3% 97.9%
Average Daily Rate
(ADR) $84 $102 $95 $96
Revenue per
Available Room
(REVPAR) $76 $96 $90 $94
New York-New York
Occupancy % 89.8% 94.2% 94.6% 96.5%
Average Daily Rate
(ADR) $81 $89 $86 $88
Revenue per
Available Room
(REVPAR) $72 $84 $81 $84
Primm Properties
Occupancy % 51.2% 56.5% 57.9% 63.6%
Average Daily Rate
(ADR) $38 $39 $38 $38
Revenue per
Available Room
(REVPAR) $19 $22 $22 $24
Golden Nugget
Las Vegas (1)
Occupancy % 88.4% 95.5% 94.2% 97.4%
Average Daily Rate
(ADR) $61 $62 $62 $59
Revenue per
Available Room
(REVPAR) $53 $59 $58 $57
Golden Nugget
Laughlin (1)
Occupancy % 81.4% 81.7% 90.8% 90.8%
Average Daily Rate
(ADR) $34 $38 $33 $36
Revenue per
Available Room
(REVPAR) $28 $31 $30 $33
Beau Rivage (1)
Occupancy % 89.2% 87.6% 93.9% 95.0%
Average Daily Rate
(ADR) $73 $71 $79 $81
Revenue per
Available Room
(REVPAR) $65 $62 $75 $77
Boardwalk (1)
Occupancy % 73.4% 87.5% 84.1% 91.4%
Average Daily Rate
(ADR) $58 $69 $64 $66
Revenue per
Available Room
(REVPAR) $43 $60 $53 $61
MGM Grand Australia
Occupancy % 70.7% 64.2% 74.1% 77.2%
Average Daily Rate
(ADR) $55 $56 $58 $62
Revenue per
Available Room
(REVPAR) $39 $36 $43 $48
Note:
(1) The Company acquired Mirage Resorts, Incorporated on May 31, 2000
thereby acquiring the Mirage Properties and 50% ownership in the
Monte Carlo Resort & Casino. Information for 2000 includes Mirage
results for the period prior to the acquisition.
MGM MIRAGE AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
ASSETS
December 31, December 31,
2001 2000
CURRENT ASSETS:
Cash and cash equivalents $ 208,971 $ 227,968
Accounts receivable, net 144,374 236,650
Inventories 78,037 86,279
Income tax receivable 12,077 11,264
Deferred income taxes 235,820 162,934
Prepaid expenses 69,623 70,549
Total current assets 748,902 795,644
PROPERTY AND EQUIPMENT, NET 8,891,645 9,064,233
OTHER ASSETS:
Investment in unconsolidated affiliates 633,688 522,422
Goodwill, net 103,059 54,281
Deposits and other assets, net 207,124 298,021
Total other assets 943,871 874,724
$10,584,418 $10,734,601
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 75,787 $ 65,317
Current portion of long-term debt 168,079 521,308
Accrued interest on long-term debt 78,938 77,738
Other accrued liabilities 565,106 568,842
Total current liabilities 887,910 1,233,205
DEFERRED INCOME TAXES 1,833,247 1,730,158
LONG-TERM DEBT 5,295,313 5,348,320
OTHER LONG-TERM OBLIGATIONS 57,248 40,473
STOCKHOLDERS' EQUITY:
Common stock ($.01 par value: authorized
300,000,000 shares, issued 163,685,876
and 163,189,205 shares and outstanding
157,396,176 and 159,130,205 shares) 1,637 1,632
Capital in excess of par value 2,049,841 2,041,820
Treasury stock, at cost
(6,289,700 and 4,059,000 shares) (129,399) (83,683)
Retained earnings 597,771 427,956
Other comprehensive loss (9,150) (5,280)
Total stockholders' equity 2,510,700 2,382,445
$10,584,418 $10,734,601
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SOURCE: MGM MIRAGE
Contact: Investment Community, James J. Murren, President and Chief
Financial Officer, +1-702-693-8877, or Media, Alan Feldman, Senior Vice
President, Public Affairs, +1-702-891-7147, both of MGM MIRAGE
Website: http://www.mgmmirage.com/
Company News On-Call: http://www.prnewswire.com/comp/000725.html