MGM MIRAGE Reports Fourth Quarter and Year End Results

January 31, 2002
PRNewswire-FirstCall
LAS VEGAS

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/

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