MGM MIRAGE (NYSE: MGG) today reported its third quarter 2004 financial results. Adjusted earnings from continuing operations per diluted share ("Adjusted EPS") rose 68% to $0.57 in the third quarter of 2004 from $0.34 in the 2003 quarter, representing the Company's best third quarter performance in its history and continuing a strong trend of year-over-year increases in earnings during 2004. The Company's targeted enhancements to its Las Vegas resorts led to increased customer spending, and Las Vegas visitation remains robust. REVPAR (revenue per available room) rose 10% at the Company's Las Vegas resorts in the 2004 quarter, on top of an 8% increase in 2003 compared to 2002. Other factors affecting current period results included table games hold percentage toward the low end of the Company's normal range, offset by the benefit of continued strong collections of casino receivables resulting in a lower bad debt provision than the prior year quarter. The lower bad debt provision equates to a benefit of approximately $0.07 per diluted share for the current quarter. Casino revenues increased 5% despite the low table games hold percentage, as slot revenues increased a solid 9%.
Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, net property transactions, tax adjustments and loss on early retirement of debt(1). On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations doubled to $0.54 for the third quarter of 2004 from $0.27 in the 2003 quarter. GAAP diluted EPS, including the results of discontinued operations, was $0.89 in the 2004 period versus $0.31 in 2003.
"All of our resorts continue to generate industry-leading results, with our success in the third quarter building upon the foundation we've established throughout 2004," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We believe these positive trends will continue into the fourth quarter and throughout 2005. All of our indicators point to continued success for the Las Vegas leisure and convention businesses in the foreseeable future, and our resorts are uniquely positioned to benefit from that success."
Third Quarter Company Highlights
* Generated net revenues of $1.04 billion, up 6% over 2003;
* Company-wide REVPAR of $117, up 9% over prior year's quarter;
* Produced property-level EBITDA(2) of $348 million, up 20% over the
2003 quarter. Operating income was up 40% over the prior year, to
$222 million. The Company's property-level EBITDA margin was 34%;
* Opened several new restaurants and entertainment venues, including the
remodeled Todd English's Olives and Michael Mina's signature
restaurant at Bellagio, Shibuya at MGM Grand Las Vegas, and Tangerine,
the new nightclub at TI;
* Invested $173 million of capital in the Company's properties,
including continued construction of the Bellagio expansion, continued
enhancements at MGM Grand Las Vegas and the completion of the remodel
of all the standard rooms at New York-New York;
* Issued $1 billion of senior notes at favorable fixed interest rates in
two separate transactions;
* Obtained commitments to increase the borrowing capacity of the
Company's senior credit facility to $7 billion, providing the
necessary financing for the Mandalay acquisition at an attractive cost
of capital.
Detailed Financial Results
The following table shows key financial results on a Company-wide basis for the third quarter and year to date.
Three months ended Nine months ended
September 30, September 30,
2004 2003 2004 2003
(In millions)
Casino revenue, net $541.0 $514.0 $1,651.4 $1,519.2
Non-casino revenue, net 495.4 462.9 1,524.0 1,383.6
Net revenue 1,036.4 976.9 3,175.4 2,902.8
Operating income 222.4 158.5 737.6 489.6
Income from continuing
operations 76.2 41.4 275.0 144.6
Discontinued operations, net 50.7 5.8 62.4 7.4
Net income 126.9 47.2 337.4 152.0
Property-level EBITDA(2) $347.6 $289.4 $1,102.1 $883.3
EBITDA (after corporate
expense)(2) 328.5 273.9 1,048.7 839.1
Adjusted Earnings 81.0 52.6 289.9 176.9
Except where noted, all references in this release to operating results, including statistical information, exclude the results of Golden Nugget Las Vegas, Golden Nugget Laughlin, MGM Grand Australia and MGM MIRAGE Online for all periods presented. The results of these operations are classified as discontinued operations.
Net revenue in the third quarter increased 6% from the 2003 third quarter. This increase was due to strong casino and hotel volumes, continued increases in room rates and higher spending by our customers throughout our resorts.
Casino revenue increased 5% in the 2004 quarter. Table games volume, including baccarat, was consistent with prior year levels. The Company's table games hold percentage was toward the low end of the normal range in the September 2004 quarter, and was consistent with the hold percentage experienced in 2003. Company-wide slot revenue in the quarter was up 9% from 2003. Several resorts experienced double-digit increases in slot revenues, including New York-New York, TI, Beau Rivage, MGM Grand Detroit, and Primm Valley Resorts.
Non-casino revenue was up 7% in the quarter. Hotel revenue was up 8%, with a higher occupancy rate of 93% in the third quarter of 2004 versus 92% in 2003, and a higher average daily room rate ("ADR") of $125 versus $116 in 2003. As a result, revenue per available room ("REVPAR") was $117, an increase of 9% over 2003. REVPAR at the Company's Las Vegas resorts was up 10% over the prior year to $134.
Food and beverage, entertainment, retail and other revenues were up 5% in the 2004 quarter. The Company believes it is capturing a greater share of customer spending due to the exciting new restaurant, entertainment and other amenities introduced in the past year.
Consolidated EBITDA increased 20% for the quarter, reflecting the strong revenue results and operating leverage inherent with higher hotel room rates. The property-level EBITDA margin was 34% in 2004, up from 30% in the prior year quarter and the Company's highest third quarter margin since the 2000 merger of MGM Grand and Mirage Resorts. Additionally, the Company benefited from the increased contribution of Borgata, leading to an increase in income from unconsolidated affiliates of 75% over 2003. Operating income increased 40% due to the increased property-level EBITDA and lower preopening and restructuring expenses in the current year.
Third quarter Adjusted Earnings increased 54% compared to 2003 due to the increase in operating income described above. Net interest expense increased due to higher average borrowings, slightly higher variable market interest rates and the issuance of fixed rate debt in the quarter.
For the third quarter of 2004, Adjusted Earnings excluded a net $6.5 million ($4.7 million, net of tax) of items. These items included:
* Preopening and start-up expenses of $1.6 million ($1.0 million, net of
tax), primarily related to new restaurants and KA, the new Cirque du
Soleil production scheduled to open in November 2004, at MGM Grand Las
Vegas;
* Restructuring costs of $1.6 million ($1.0 million, net of tax), the
result of staffing reductions at MGM Grand Detroit as a result of the
recent gaming tax increase in Michigan;
* Net property transactions of $1.7 million ($1.1 million, net of tax),
including demolition costs related to the Bellagio expansion, and
other net losses on disposal of assets;
* Tax adjustments of $1.6 million, representing additional state
deferred taxes related to capital investments in New Jersey, partially
offset by the reversal of reserves for prior year tax issues as the
statutes of limitations on those years expired.
In the third quarter of 2003, items excluded in the determination of Adjusted Earnings totaled $17.1 million ($11.2 million, net of tax) and included preopening and start-up expenses of $7.3 million ($4.8 million, net of tax), primarily related to Borgata and New York-New York; restructuring costs of $4.0 million ($2.6 million, net of tax), primarily related to the termination of an operating lease at MGM Grand Las Vegas; property transactions, net of $2.6 million ($1.7 million, net of tax), primarily related to demolition costs for the Bellagio expansion and the KA theatre at MGM Grand Las Vegas; and loss on early retirement of debt of $3.2 million ($2.1 million, net of tax).
The Company's effective income tax rate was 37.4% in the third quarter versus 35.8% in the prior year's quarter. The net tax adjustments described above caused a portion of the increase in the effective rate. Additionally, the Company incurred higher-than-normal non-deductible costs related to funding support of ballot initiatives in Michigan.
Income from discontinued operations includes the results of the Golden Nugget Las Vegas and Golden Nugget Laughlin resorts, MGM MIRAGE Online and MGM Grand Australia. Pretax income from discontinued operations was $76 million in the third quarter of 2004, including a $74 million gain ($51 million, net of tax) on the sale of MGM Grand Australia. This compares to income of $9 million, including $3 million of allocated interest, in the 2003 period.
Financial Position
Third quarter capital investments of $173 million included $79 million for the Bellagio expansion and $15 million related to the renovation of the Emerald Tower and the 29th floor suites at MGM Grand Las Vegas. Other expenditures related to continued enhancements to dining and entertainment venues, as well as the completion of the standard room remodel project at New York-New York.
During the quarter, the Company issued $1.0 billion of fixed rate debt at favorable interest rates. In August 2004, the Company issued $550 million of 6 3/4% senior notes due 2012 at par and in September 2004, the Company issued $450 million of 6% Senior Notes due 2009 at a premium to yield 5.65%. Upon issuance, these proceeds were used to repay amounts outstanding under the Company's senior credit facility.
In addition, the Company has received sufficient commitments from its lenders to increase the capacity of its senior credit facility to $7 billion, providing the necessary financing for the pending Mandalay acquisition.
As of September 30, 2004, the Company had approximately $2.3 billion of available borrowings under its existing senior credit facility.
"We have created the financial foundation for the upcoming merger with Mandalay Resort Group with the recent issuances of Senior Notes and our commitments on a new senior credit facility," said MGM MIRAGE President, CFO and Treasurer, Jim Murren. "While the fixed rate issuances have a negative short-term impact on reported EPS, we believe our capital structure provides us the optimal post-acquisition financing at attractive rates. We expect to rapidly de-leverage our Company, utilizing the significant free cash flow generated by the combination of MGM MIRAGE and Mandalay," Mr. Murren said.
Outlook
The Company expects REVPAR growth to be in the 8-10% range in the fourth quarter of 2004, on top of a 5% year-over-year increase in the 2003 fourth quarter. Property-level EBITDA is expected to increase over the prior year, benefiting from strong customer activity, offset by several factors including increased gaming taxes in Detroit and 3% fewer room nights available. For the full year 2004, the Company will earn over $1.4 billion in property-level EBITDA, an all-time record and well in excess of the Company's original expectations. Taking into account the higher non-operating items, primarily higher interest expense, the Company expects to earn in the range of $0.35 to $0.45 in the fourth quarter on an Adjusted EPS basis, compared to $0.36 in the prior year.
"We are pleased with the continued positive REVPAR trends and ongoing strength across all operating areas, and expect such trends to continue into 2005," Mr. Murren said. "A significant contributor to fourth quarter profits is the New Year's holiday and the period leading up to New Year's, and it is difficult for us to predict results for that period at this early stage."
MGM MIRAGE will hold a conference call to discuss its earnings results and outlook for the fourth quarter at 11:00 a.m. Eastern Daylight Time today. The call can be accessed live at www.companyboardroom.com or www.mgmmirage.com, or by calling 1-800-526-8531 (domestic) or 1-706-634-6528 (international). A complete replay of the conference call will be made available at www.mgmmirage.com.
(1) Adjusted Earnings (and Adjusted EPS) is presented solely as a
supplemental disclosure because management believes that it is 1) a
widely used measure of performance, and 2) a principal basis for
valuation of gaming companies, as this measure is considered by many
to be a better measure on which to base expectations of future
results than income from continuing operations computed in
accordance with generally accepted accounting principles ("GAAP").
Reconciliations of GAAP income from continuing operations and EPS to
Adjusted Earnings and EPS are included in the financial schedules
accompanying this release.
(2) EBITDA is earnings before interest and other non-operating income
(expense), taxes, depreciation and amortization, restructuring,
preopening and start-up expenses, and property transactions, net.
EBITDA is presented solely as a supplemental disclosure because
management believes that it is 1) a widely used measure of operating
performance in the gaming industry, and 2) a principal basis for
valuation of gaming companies. Management uses property-level
EBITDA (EBITDA before corporate expense) as the primary measure of
the Company's operating resorts' performance, including the
evaluation of operating personnel. EBITDA should not be construed
as an alternative to operating income or income from continuing
operations, as an indicator of the Company's operating performance,
or as an alternative to cash flows from operating activities, as a
measure of liquidity, or as any other measure determined in
accordance with generally accepted accounting principles. The
Company has significant uses of cash flows, including capital
expenditures, interest payments, taxes and debt principal
repayments, which are not reflected in EBITDA. Also, other gaming
companies that report EBITDA information may calculate EBITDA in a
different manner than the Company. Reconciliations of consolidated
EBITDA to income from continuing operations and operating income to
EBITDA by resort are included in the financial schedules
accompanying this release.
MGM MIRAGE (NYSE: MGG), one of the world's leading and most respected hotel and gaming companies, owns and operates 11 casino resorts located in Nevada, Mississippi and Michigan, and has investments in two other casino resorts in Nevada and New Jersey. The company is headquartered in Las Vegas, Nevada, and offers an unmatched collection of casino resorts with a limitless range of choices for guests. Guest satisfaction is paramount, and the company has approximately 40,000 employees committed to that result. Its portfolio of brands include AAA Five Diamond award-winner Bellagio, MGM Grand Las Vegas - The City of Entertainment, The Mirage, Treasure Island ("TI"), New York - New York, Boardwalk Hotel and Casino and 50 percent of Monte Carlo, all located on the Las Vegas Strip; Whiskey Pete's, Buffalo Bill's, Primm Valley Resort and two championship golf courses at the California/Nevada state line; the exclusive Shadow Creek golf course in North Las Vegas; Beau Rivage on the Mississippi Gulf Coast; and MGM Grand Detroit Casino in Detroit, Michigan. The Company is a 50-percent owner of Borgata, a destination casino resort at Renaissance Pointe in Atlantic City, New Jersey. Internationally, MGM MIRAGE also owns a 25 percent interest in Triangle Casino, a local casino in Bristol, United Kingdom. MGM MIRAGE supports Responsible Gaming and complies with the American Gaming Association's Code of Conduct for Responsible Gaming. For more information about MGM MIRAGE, please visit the company's 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
Revenues:
Casino $ 540,957 $ 513,994 $ 1,651,371 $ 1,519,159
Rooms 223,001 206,039 690,266 632,026
Food and beverage 205,262 190,126 635,066 567,627
Entertainment 67,099 71,014 200,312 195,642
Retail 46,023 48,257 139,193 135,651
Other 63,006 53,435 180,107 160,792
1,145,348 1,082,865 3,496,315 3,210,897
Less: Promotional
allowances (108,952) (106,023) (320,958) (308,064)
1,036,396 976,842 3,175,357 2,902,833
Expenses:
Casino 274,230 263,329 821,351 777,157
Rooms 60,329 59,702 184,629 176,518
Food and beverage 120,156 111,221 360,843 323,167
Entertainment 48,142 49,920 142,269 140,030
Retail 29,867 30,378 88,945 86,226
Other 38,249 34,046 109,461 97,815
Provision for
doubtful accounts (11,696) 3,847 (7,734) 18,267
General and
administrative 160,962 153,019 458,663 437,696
Corporate expense 19,183 15,456 53,379 44,224
Preopening and
start-up expenses 1,584 7,316 3,584 28,759
Restructuring costs 1,587 4,034 5,901 5,187
Property
transactions, net 1,677 2,600 5,354 12,510
Depreciation and
amortization 101,245 101,450 296,282 303,044
845,515 836,318 2,522,927 2,450,600
Income from
unconsolidated
affiliates 31,476 18,018 85,190 37,354
Operating income 222,357 158,542 737,620 489,587
Non-operating income
(expense):
Interest income 1,421 790 3,440 3,232
Interest expense,
net (95,262) (85,210) (277,694) (248,189)
Non-operating
items from
unconsolidated
affiliates (6,419) (3,998) (19,314) (4,222)
Other, net (435) (5,670) (10,162) (10,463)
(100,695) (94,088) (303,730) (259,642)
Income from
continuing
operations before
income taxes 121,662 64,454 433,890 229,945
Provision for
income taxes (45,495) (23,079) (158,920) (85,338)
Income from
continuing
operations 76,167 41,375 274,970 144,607
Discontinued
operations
Income from
discontinued
operations,
including gain
(loss) on
disposal of
$74,352 (three
months 2004),
$82,538 (nine
months 2004) and
($7,357) (nine
months 2003) 75,529 8,679 94,207 7,090
Benefit
(provision)
for income
taxes (24,815) (2,845) (31,731) 265
50,714 5,834 62,476 7,355
Net income $ 126,881 $ 47,209 $ 337,446 $ 151,962
Per share of
common stock:
Basic:
Income from
continuing
operations $ 0.55 $ 0.28 $ 1.97 $ 0.96
Discontinued
operations 0.37 0.04 0.44 0.05
Net income
per share $ 0.92 $ 0.32 $ 2.41 $ 1.01
Weighted
average shares
outstanding 137,786 149,051 139,933 150,616
Diluted:
Income from
continuing
operations $ 0.54 $ 0.27 $ 1.90 $ 0.95
Discontinued
operations 0.35 0.04 0.43 0.04
Net income
per share $ 0.89 $ 0.31 $ 2.33 $ 0.99
Weighted average
shares
outstanding 142,260 152,740 144,616 152,994
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS
AND EPS TO ADJUSTED EARNINGS AND EPS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
Income from
continuing
operations $ 76,167 $ 41,375 $ 274,970 $ 144,607
Preopening and
start-up expenses,
net 1,030 4,755 2,330 18,693
Restructuring costs,
net 1,032 2,623 3,836 3,372
Property transactions,
net 1,090 1,690 3,480 8,132
Tax adjustments 1,643 -- 1,643 --
Loss on debt
retirements, net -- 2,109 3,593 2,109
Adjusted earnings $ 80,962 $ 52,552 $ 289,852 $ 176,913
Per diluted share
of common stock:
Income from
continuing
operations $ 0.54 $ 0.27 $ 1.90 $ 0.95
Preopening and
start-up expenses,
net -- 0.03 0.02 0.13
Restructuring
costs,
net 0.01 0.02 0.03 0.02
Property
transactions,
net 0.01 0.01 0.02 0.05
Tax adjustments 0.01 -- 0.01 --
Loss on debt
retirements,
net -- 0.01 0.02 0.01
Adjusted EPS $ 0.57 $ 0.34 $ 2.00 $ 1.16
Weighted average
diluted shares
outstanding 142,260 152,740 144,616 152,994
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
EBITDA $ 328,450 $ 273,942 $1,048,741 $ 839,087
Preopening and
start-up expenses (1,584) (7,316) (3,584) (28,759)
Restructuring costs (1,587) (4,034) (5,901) (5,187)
Property
transactions,
net (1,677) (2,600) (5,354) (12,510)
Depreciation
and amortization (101,245) (101,450) (296,282) (303,044)
Operating income 222,357 158,542 737,620 489,587
Non-operating
income (expense):
Interest expense,
net (95,262) (85,210) (277,694) (248,189)
Other (5,433) (8,878) (26,036) (11,453)
(100,695) (94,088) (303,730) (259,642)
Income from
continuing
operations before
income taxes 121,662 64,454 433,890 229,945
Provision for
income taxes (45,495) (23,079) (158,920) (85,338)
Income from
continuing
operations $ 76,167 $ 41,375 $ 274,970 $ 144,607
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES BY RESORT
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
Bellagio $ 247,745 $ 233,453 $ 788,236 $ 733,993
MGM Grand Las Vegas 210,436 194,502 650,854 558,978
The Mirage 137,031 148,481 425,289 443,856
Treasure Island 92,997 87,243 287,921 264,136
New York-New York 86,094 72,052 251,635 193,725
MGM Grand Detroit 104,835 97,752 320,819 294,999
Beau Rivage 79,990 79,081 235,168 226,354
Other operations 77,268 64,278 215,435 186,792
$ 1,036,396 $ 976,842 $ 3,175,357 $ 2,902,833
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - EBITDA BY RESORT
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
Bellagio $ 77,126 $ 62,004 $ 258,861 $ 223,672
MGM Grand Las Vegas 69,483 58,729 228,387 164,070
The Mirage 39,043 40,811 130,212 120,558
Treasure Island 25,043 18,981 82,658 68,323
New York-New York 32,845 26,014 96,217 74,311
MGM Grand Detroit 35,604 35,335 118,570 111,892
Beau Rivage 22,846 20,206 61,714 54,803
Other operations 14,167 9,300 40,311 28,328
Income from
unconsolidated
affiliates 31,476 18,018 85,190 37,354
$ 347,633 $ 289,398 $ 1,102,120 $ 883,311
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO EBITDA BY RESORT
(In thousands)
(Unaudited)
Three Months Ended September 30, 2004
Depreci- Pre-
ation opening Property
and and Restruc- trans-
Operating amorti- start-up turing actions,
income zation expenses costs net EBITDA
Bellagio $ 53,041 $ 22,257 $ 288 $ -- $ 1,540 $ 77,126
MGM
Grand
Las
Vegas 43,659 25,130 1,146 -- (452) 69,483
The
Mirage 24,930 13,423 -- -- 690 39,043
Treasure
Island 17,097 7,967 143 -- (164) 25,043
New York-
New York 24,252 8,586 7 -- -- 32,845
MGM
Grand
Detroit 26,207 7,810 -- 1,587 -- 35,604
Beau
Rivage 17,504 5,219 -- -- 123 22,846
Other
operations 8,540 5,632 -- -- (5) 14,167
Unconsolidated
affiliates 31,476 -- -- -- -- 31,476
246,706 96,024 1,584 1,587 1,732 347,633
Corporate
and
other (24,349) 5,221 -- -- (55) (19,183)
$ 222,357 $ 101,245 $ 1,584 $ 1,587 $ 1,677 $ 328,450
Three Months Ended September 30, 2003
Depreci- Pre-
ation opening Property
and and Restruc- trans-
Operating amorti- start-up turing actions,
income zation expenses costs net EBITDA
Bellagio $ 36,608 $ 24,613 $ -- $ -- $ 783 $ 62,004
MGM
Grand
Las
Vegas 30,414 22,573 675 3,856 1,211 58,729
The
Mirage 27,928 12,366 -- -- 517 40,811
Treasure
Island 10,449 8,521 -- -- 11 18,981
New York-
New York 17,006 6,534 2,320 178 (24) 26,014
MGM
Grand
Detroit 27,441 7,672 150 -- 72 35,335
Beau
Rivage 14,815 5,237 -- -- 154 20,206
Other
operations 4,702 4,723 -- -- (125) 9,300
Unconsolidated
affiliates 14,593 -- 3,425 -- -- 18,018
183,956 92,239 6,570 4,034 2,599 289,398
Corporate
and
other (25,414) 9,211 746 -- 1 (15,456)
$ 158,542 $ 101,450 $ 7,316 $ 4,034 $ 2,600 $ 273,942
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO EBITDA BY RESORT - continued
(In thousands)
(Unaudited)
Nine Months Ended September 30, 2004
Depreci- Pre-
ation opening Property
and and Restruc- trans-
Operating amorti- start-up turing actions,
income zation expenses costs net EBITDA
Bellagio $ 188,364 $ 64,613 $ 288 $ 3,000 $ 2,596 $ 258,861
MGM
Grand
Las
Vegas 151,388 70,818 2,985 900 2,296 228,387
The
Mirage 90,490 38,983 -- -- 739 130,212
Treasure
Island 57,060 25,513 261 -- (176) 82,658
New York-
New York 72,201 24,050 (79) -- 45 96,217
MGM
Grand
Detroit 93,980 22,657 -- 1,587 346 118,570
Beau
Rivage 45,847 15,765 -- -- 102 61,714
Other
operations 24,042 15,821 -- -- 448 40,311
Unconsolidated
affiliates 85,190 -- -- -- -- 85,190
808,562 278,220 3,455 5,487 6,396 1,102,120
Corporate
and
other (70,942) 18,062 129 414 (1,042) (53,379)
$ 737,620 $ 296,282 $ 3,584 $ 5,901 $ 5,354 $1,048,741
Nine Months Ended September 30, 2003
Depreci- Pre-
ation opening Property
and and Restruc- trans-
Operating amorti- start-up turing actions,
income zation expenses costs net EBITDA
Bellagio $ 143,156 $ 79,628 $ -- $ -- $ 888 $ 223,672
MGM
Grand
Las
Vegas 85,632 63,301 1,566 3,881 9,690 164,070
The
Mirage 82,753 37,133 -- 300 372 120,558
Treasure
Island 42,927 25,340 -- 178 (122) 68,323
New York-
New York 51,324 18,422 4,387 178 -- 74,311
MGM
Grand
Detroit 86,118 24,796 450 -- 528 111,892
Beau
Rivage 38,988 14,640 -- -- 1,175 54,803
Other
operations 14,090 14,503 -- -- (265) 28,328
Unconsolidated
affiliates 18,028 -- 19,326 -- -- 37,354
563,016 277,763 25,729 4,537 12,266 883,311
Corporate
and
other (73,429) 25,281 3,030 650 244 (44,224)
$ 489,587 $ 303,044 $ 28,759 $ 5,187 $12,510 $ 839,087
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
Bellagio
Occupancy % 97.3% 96.7% 96.4% 95.2%
Average daily rate (ADR) $224 $219 $239 $229
Revenue per available
room (REVPAR) $218 $212 $231 $218
MGM Grand Las Vegas
Occupancy % 95.9% 95.6% 94.3% 94.4%
Average daily rate (ADR) $121 $112 $131 $115
Revenue per available
room (REVPAR) $116 $107 $123 $109
The Mirage
Occupancy % 98.1% 98.2% 97.0% 95.9%
Average daily rate (ADR) $144 $129 $150 $137
Revenue per available
room (REVPAR) $142 $126 $146 $131
Treasure Island
Occupancy % 98.2% 97.8% 97.9% 97.4%
Average daily rate (ADR) $109 $98 $115 $102
Revenue per available
room (REVPAR) $107 $96 $113 $100
New York-New York
Occupancy % 98.5% 98.4% 98.2% 98.5%
Average daily rate (ADR) $109 $95 $115 $97
Revenue per available
room (REVPAR) $108 $93 $113 $96
Beau Rivage
Occupancy % 92.6% 94.0% 91.2% 93.3%
Average daily rate (ADR) $100 $97 $96 $94
Revenue per available
room (REVPAR) $92 $91 $88 $88
Other operations
Occupancy % 74.4% 68.7% 73.0% 68.6%
Average daily rate (ADR) $41 $42 $42 $43
Revenue per available
room (REVPAR) $31 $29 $31 $29
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
September 30, December 31,
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $ 355,632 $ 178,047
Accounts receivable, net 172,408 139,475
Inventories 64,173 65,189
Income tax receivable -- 9,901
Deferred income taxes 38,337 49,286
Prepaid expenses and other 88,651 89,641
Assets held for sale -- 226,082
Total current assets 719,201 757,621
Property and equipment, net 8,862,740 8,681,339
Other assets:
Investments in unconsolidated affiliates 805,046 756,012
Goodwill and other intangible assets,
net 233,059 267,668
Deposits and other assets, net 278,784 247,070
Total other assets 1,316,889 1,270,750
$ 10,898,830 $ 10,709,710
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 101,584 $ 85,439
Income taxes payable 46,572 --
Current portion of long-term debt 14 9,008
Accrued interest on long-term debt 77,632 87,711
Other accrued liabilities 557,681 559,445
Liabilities related to assets held for
sale -- 23,456
Total current liabilities 783,483 765,059
Deferred income taxes 1,772,269 1,765,426
Long-term debt 5,569,768 5,521,890
Other long-term obligations 141,925 123,547
Stockholders' equity:
Common stock ($.01 par value:
authorized 300,000,000 shares, issued
171,875,786 and 168,268,213 shares
and outstanding 138,682,786 and
143,096,213 shares) 1,719 1,683
Capital in excess of par value 2,284,353 2,171,625
Deferred compensation (12,947) (19,174)
Treasury stock, at cost (33,193,000
and 25,172,000 shares) (1,110,228) (760,594)
Retained earnings 1,471,349 1,133,903
Accumulated other comprehensive income
(loss) (2,861) 6,345
Total stockholders' equity 2,631,385 2,533,788
$ 10,898,830 $ 10,709,710
SOURCE: MGM MIRAGE
CONTACT: investment community, James J. Murren, President, Chief
Financial Officer and Treasurer, +1-702-693-8877, or media, Alan Feldman,
Senior Vice President, Public Affairs, +1-702-891-7147, both of MGM MIRAGE
Web site: http://www.companyboardroom.com/
Web site: http://www.mgmmirage.com/
Company News On-Call: http://www.prnewswire.com/comp/000725.html