MGM MIRAGE (NYSE: MGM) today reported its second quarter 2005 financial results. Adjusted earnings from continuing operations per diluted share ("Adjusted EPS") increased to $0.46 in the second quarter of 2005, the Company's highest quarterly Adjusted EPS ever, and significantly better than the $0.37 earned in the second quarter of 2004.(1) The strong earnings reflect the April 25, 2005 addition of Mandalay Resort Group's ("Mandalay") portfolio of resorts, which had an immediate positive impact on earnings, and continued strength in core hotel and gaming operations. Net revenues increased 60% to $1.7 billion for the quarter. Same-store net revenues were $1.2 billion for the quarter, up 11% over prior year. References in this release to "same-store" results reflect the Company's operations excluding the newly acquired Mandalay resorts.
Second quarter REVPAR (revenue per available room) at the Company's Las Vegas Strip resorts increased 15% over the prior year on a same-store basis, marking the sixth straight quarter of double-digit REVPAR growth. On a same-store basis, table games volume, including baccarat, increased 3% in the quarter and slot revenue increased 7%.
Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, property transactions, tax adjustments and gains or losses on early retirement of debt.(2) On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations increased to $0.48 in the 2005 quarter from $0.35 in the second quarter of 2004. GAAP diluted EPS, including the results of discontinued operations, was $0.48 in the 2005 period versus $0.36 in 2004.
"We are very pleased with the early results from the Mandalay resorts and the continued positive momentum across all of our operations," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We continue to work on integration initiatives and growth plans for our resorts, all with the intent of continuing the revenue and profit growth trends we've experienced over the past several quarters."
Second Quarter 2005 Company Highlights
* Generated net revenues of $1.7 billion; on a same-store basis, net
revenues were $1.2 billion, up 11% from 2004;
* Produced property-level EBITDA(3) of $567 million, an all-time Company
record for any quarter; on a same-store basis, property-level EBITDA
(excluding Monte Carlo when 50%-owned) was $394 million, up 6% over
prior year; operating income was $378 million in the quarter versus
$261 million in 2004;
* Closed the Mandalay merger on April 25, 2005, with total consideration
of $7.3 billion;
* Reduced debt by $513 million since the close of the Mandalay merger;
* Invested $121 million of capital in the Company's resorts;
* Invested an additional $177 million in MGM Grand Paradise, of which
the Company owns 50%, which broke ground on the $975 million MGM Grand
Macau hotel and casino;
* Entered into a definitive management agreement with the New York
Racing Association ("NYRA") under which the Company will develop and
manage a 4,500-unit video lottery terminal ("VLT") facility at NYRA's
Aqueduct racetrack;
* Completed a 2-for-1 stock split, effected in the form of a 100% stock
dividend, in May 2005.
Detailed Financial Results
The following table shows key financial results for the second quarter and year-to-date:
Three months ended Six months ended
June 30, June 30,
------------------- --------------------
2005 2004 2005 2004
-------- -------- -------- --------
(In millions)
Casino revenue, net $ 764.4 $ 551.7 $1,379.2 $1,110.4
Non-casino revenue, net 951.6 520.8 1,540.9 1,028.6
Net revenue 1,716.0 1,072.5 2,920.1 2,139.0
Operating income 377.9 260.6 671.1 515.3
Income from
continuing operations 141.2 101.7 252.2 198.8
Discontinued
operations, net -- 3.0 -- 11.8
Net income 141.2 104.7 252.2 210.6
------------------------------------------------------------------------
Property-level
EBITDA(3) $ 566.9 $ 384.0 $1,004.1 $ 754.5
EBITDA (after corporate
expense)(3) 535.3 365.5 945.6 720.3
Adjusted Earnings(2) 137.4 106.5 265.5 208.9
Net revenue in the second quarter increased 60% from prior year, and 11% on a same-store basis. Results were strong across all operating departments. Both casino and hotel volumes continued their positive trends in the quarter.
Casino revenue increased 39% in the 2005 quarter, and 4% on a same-store basis. On a same-store basis, table games volume, including baccarat, was up 3% from the prior year's quarter, and table games hold percentages were near the mid-point of the Company's normal range for both the 2005 and 2004 periods, though almost 100 basis points lower on a same-store basis in the current year. Slot revenue in the quarter was up 7% from 2004 on a same-store basis, on top of a 10% increase in 2004 over 2003. Bellagio's slot revenue increased over 30%, driven in large part by additional customers from the Spa Tower expansion. MGM Grand Las Vegas' slot revenue increased 13%, largely from increased visitor traffic generated by KA and other new amenities. Other strong performances were turned in at Beau Rivage and TI.
Non-casino revenue was up 83% in the quarter, and 19% on a same-store basis. Hotel revenue increased 96% (23% on a same-store basis). The overall increase resulted from several factors, including significantly more rooms available with the addition of Mandalay and the Bellagio expansion, as well as the immediate implementation of strategies to increase occupancy at Mandalay resorts. The same-store increase was the result of the Bellagio expansion and continued strong year-over-year increases in room rates. Same-store REVPAR increased 16%, on top of an 11% increase in 2004 over 2003. The following table shows key hotel statistics on a same-store basis for the quarter:
Three Months Ended
------------------
June 30, 2005 June 30, 2004
------------- -------------
Same-store basis
Occupancy % 93% 94%
Average Daily Rate (ADR) $153 $131
Revenue per Available Room (REVPAR) $142 $123
Food and beverage revenue increased 66% (15% on a same-store basis), as the addition of several new restaurants and lounges and overall strong customer volumes generated increased utilization at our restaurants, lounges and nightclubs. Entertainment revenues were up significantly, 38% on a same-store basis, over the prior year quarter as a result of the contribution from KA at MGM Grand Las Vegas.
EBITDA increased 46% for the quarter, reflecting the operating trends described above and the addition of Mandalay. The Company's property-level EBITDA margin was 33% in 2005 (in total and on a same-store basis) versus 36% in the 2004 second quarter, which was the Company's all-time record for any quarter. The current quarter's margin was negatively impacted by the lower table games hold percentage described above, additional expense of $10 million in 2005 resulting from the re-evaluation of workers compensation reserves, and a lower than normal provision for bad debts in the prior year. Operating income increased 45% over prior year as a result of the trends described above.
Second quarter 2005 Adjusted Earnings increased by 29% compared to 2004 due primarily to the higher operating income, offset by higher interest expense as a result of the Mandalay merger. For the second quarter of 2005, Adjusted Earnings excluded the net positive impact to earnings of $3.1 million ($3.8 million, net of tax) of items as follows:
* Net property transactions of $1.8 million ($1.2 million, net of tax),
primarily consisting of demolition costs at MGM Grand Las Vegas in
connection with room remodel activity and at The Mirage in connection
with the showroom remodel;
* Preopening and start-up expenses of $3.9 million ($3.4 million, net of
tax), including $2.3 million related to MGM Grand Macau, $0.9 million
related to Project CityCenter, and $0.3 million related to The
Residences at MGM Grand;
* Positive tax adjustments of $7.4 million, consisting of the
$10.7 million benefit realized upon repatriating the proceeds from the
sale of MGM Grand Australia, offset by $5.1 million ($3.3 million, net
of Federal tax benefit) of Illinois state deferred income taxes
resulting from the Mandalay merger;
* Gain on early retirement of debt of $1.4 million ($0.9 million, net
of tax) related to the post-merger early redemption of certain of
Mandalay's senior notes, classified as "Other, net".
In the second quarter of 2004, items excluded in the determination of Adjusted Earnings included minor amounts of preopening and start-up expenses and property transactions, and $3.9 million of restructuring costs ($2.5 million, net of tax) related to the termination of a restaurant management agreement and a lease buyout.
Financial Position
The Company generated significant operating cash flow in the second quarter as a result of its positive operating results and the addition of Mandalay. In addition, the Company repatriated $127 million from Australia, which represented the remaining proceeds from the sale of MGM Grand Australia in 2004. The Company utilized available cash flow in part to repay $513 million of net debt after the closing of the Mandalay merger. Capital investments for the quarter consisted of $121 million in capital expenditures at operating resorts and $177 million of additional investment in MGM Grand Macau.
Second quarter capital investments included construction of the theatre for the Beatles/Cirque du Soleil production show at The Mirage, the new golf course at Beau Rivage, room remodel and casino expansion activity at MGM Grand Las Vegas and other routine capital expenditures.
"Our financial strategy continues to focus on utilizing cash flow from operations and our access to low-cost borrowings to fund high return, targeted projects," said Jim Murren, MGM MIRAGE President, CFO and Treasurer. "We plan on addressing the capital needs at Mandalay prudently, starting with high return projects like ticket-in, ticket-out slot technology. And we will continue to focus on the strength of our balance sheet over the next several quarters."
Outlook
The Company expects Las Vegas Strip REVPAR growth (on a pro forma basis, including Mandalay for both periods) of approximately 8% for the third quarter. "We continue to have good visibility of future room trends, and we are rapidly realizing the benefits of integrating the Mandalay resorts, both from an expense reduction and revenue enhancement perspective. We believe we are on target for at least $100 million of annualized merger-related benefits," Mr. Murren said. "These factors will result in an increase in earnings over the 2004 quarter, in which we earned $0.28 per share on an adjusted basis. We believe the current analysts' consensus expectation of $0.42 per share, as reported on First Call on July 27, 2005, is reasonable."
MGM MIRAGE will hold a conference call to discuss its earnings results and outlook for the third quarter of 2005 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. Supplemental detailed earnings information will also be available on the Company's website, along with certain comparative historical information for the Mandalay resorts.
(1) All share and per share amounts in this release and accompanying
tables have been adjusted to reflect a 2-for-1 stock split effected
in the form of a 100% stock dividend in May 2005.
(2) 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.
(3) 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, 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 operating
income to EBITDA are included in the financial schedules accompanying
this release.
MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected hotel and gaming company, owns and operates 24 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey, and the United Kingdom. MGM MIRAGE has also announced plans to develop Project CityCenter, a multi-billion dollar mixed-use urban development project in the heart of Las Vegas and has a 50% interest in the MGM Grand Macau, a development project in Macau S.A.R. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE also has been the recipient of numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. 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 Six Months Ended
------------------- ----------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
-------- -------- ---------- ----------
Revenues:
Casino $ 764,378 $ 551,691 $1,379,191 $1,110,414
Rooms 455,761 232,304 729,815 467,265
Food and beverage 352,184 212,040 595,662 429,804
Entertainment 115,711 65,971 203,858 133,213
Retail 69,463 48,072 114,342 93,170
Other 106,973 66,015 167,808 117,101
--------- --------- ---------- ----------
1,864,470 1,176,093 3,190,676 2,350,967
Less: Promotional
allowances (148,514) (103,568) (270,585) (212,006)
--------- --------- ---------- ----------
1,715,956 1,072,525 2,920,091 2,138,961
--------- --------- ---------- ----------
Expenses:
Casino 389,767 266,677 700,556 550,597
Rooms 125,405 62,774 194,884 124,985
Food and beverage 220,466 120,709 354,777 240,329
Entertainment 84,801 47,580 144,866 94,213
Retail 45,233 30,593 74,817 59,139
Other 64,517 38,335 103,982 71,224
General and administrative 249,713 151,403 408,077 297,701
Corporate expense 31,651 18,458 58,442 34,196
Preopening and start-up
expenses 3,897 1,619 6,421 2,000
Restructuring costs
(credit) (4) 3,900 (70) 4,314
Property transactions, net 1,793 1,938 5,996 3,677
Depreciation and
amortization 151,673 97,484 262,168 195,037
--------- --------- ---------- ----------
1,368,912 841,470 2,314,916 1,677,412
--------- --------- ---------- ----------
Income from unconsolidated
affiliates 30,885 29,542 65,930 53,714
--------- --------- ---------- ----------
Operating income 377,929 260,597 671,105 515,263
--------- --------- ---------- ----------
Non-operating income
(expense):
Interest income 5,319 1,116 7,016 2,019
Interest expense, net (167,348) (92,622) (268,816) (182,432)
Non-operating items from
unconsolidated affiliates (4,404) (6,690) (7,191) (12,895)
Other, net (1,781) (2,573) (17,472) (9,727)
--------- --------- ---------- ----------
(168,214) (100,769) (286,463) (203,035)
--------- --------- ---------- ----------
Income from continuing
operations before income
taxes 209,715 159,828 384,642 312,228
Provision for income
taxes (68,547) (58,165) (132,395) (113,425)
--------- --------- ---------- ----------
Income from continuing
operations 141,168 101,663 252,247 198,803
--------- --------- ---------- ----------
Discontinued operations
Income from discontinued
operations, including
gain on disposal of
$8,186 (six months 2004) -- 4,809 -- 18,678
Provision for income
taxes -- (1,755) -- (6,916)
--------- --------- ---------- ----------
-- 3,054 -- 11,762
--------- --------- ---------- ----------
Net income $ 141,168 $ 104,717 $ 252,247 $ 210,565
========= ========= ========== ==========
Per share of common stock:
Basic:
Income from continuing
operations $ 0.49 $ 0.36 $ 0.89 $ 0.71
Discontinued operations -- 0.01 -- 0.04
--------- --------- ---------- ----------
Net income per share $ 0.49 $ 0.37 $ 0.89 $ 0.75
========= ========= ========== ==========
Weighted average shares
outstanding 285,546 279,809 284,031 282,035
========= ========= ========== ==========
Diluted:
Income from continuing
operations $ 0.48 $ 0.35 $ 0.85 $ 0.68
Discontinued operations -- 0.01 -- 0.04
--------- --------- ---------- ----------
Net income per share $ 0.48 $ 0.36 $ 0.85 $ 0.72
========= ========= ========== ==========
Weighted average shares
outstanding 296,725 289,497 295,685 291,611
========= ========= ========== ==========
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 Six Months Ended
------------------ ------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
-------- -------- -------- --------
Income from continuing operations $141,168 $101,663 $252,247 $198,803
Preopening and start-up expenses,
net 3,375 1,052 5,016 1,300
Restructuring costs (credit), net (3) 2,535 (46) 2,804
Property transactions, net 1,165 1,260 3,897 2,390
Tax adjustments (7,405) -- (7,405) --
(Gain) loss on debt retirements,
net (885) -- 11,790 3,593
-------- -------- -------- --------
Adjusted earnings $137,415 $106,510 $265,499 $208,890
======== ======== ======== ========
Per diluted share of common stock:
Income from continuing
operations $ 0.48 $ 0.35 $ 0.85 $ 0.68
Preopening and start-up
expenses, net 0.01 -- 0.02 0.01
Restructuring costs (credit),
net -- 0.01 -- 0.01
Property transactions, net -- 0.01 0.01 0.01
Tax adjustments (0.03) -- (0.02) --
(Gain) loss on debt retirements,
net -- -- 0.04 0.01
-------- -------- -------- --------
Adjusted EPS $ 0.46 $ 0.37 $ 0.90 $ 0.72
======== ======== ======== ========
Weighted average diluted shares
outstanding 296,725 289,497 295,685 291,611
======== ======== ======== ========
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
------------------ ------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
-------- -------- -------- --------
EBITDA $535,288 $365,538 $945,620 $720,291
Preopening and start-up expenses (3,897) (1,619) (6,421) (2,000)
Restructuring costs (credit) 4 (3,900) 70 (4,314)
Property transactions, net (1,793) (1,938) (5,996) (3,677)
Depreciation and amortization (151,673) (97,484) (262,168) (195,037)
------- ------- ------- -------
Operating income 377,929 260,597 671,105 515,263
------- ------- ------- -------
Non-operating income (expense):
Interest expense, net (167,348) (92,622) (268,816) (182,432)
Other (866) (8,147) (17,647) (20,603)
------- ------- ------- -------
(168,214) (100,769) (286,463) (203,035)
------- ------- ------- -------
Income from continuing operations
before income taxes 209,715 159,828 384,642 312,228
Provision for income taxes (68,547) (58,165) (132,395) (113,425)
------- ------- ------- -------
Income from continuing operations $141,168 $101,663 $252,247 $198,803
======== ======== ======== ========
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
----------------------- -----------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
--------- --------- ---------- ----------
Las Vegas Strip $1,363,856 $ 817,340 $2,314,084 $1,651,195
Other Nevada 129,141 60,926 189,872 116,604
MGM Grand Detroit 109,702 112,067 223,402 215,984
Mississippi 113,257 82,192 192,733 155,178
---------- ---------- ---------- ----------
$1,715,956 $1,072,525 $2,920,091 $2,138,961
========== ========== ========== ==========
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
-------------------- ---------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
-------- -------- ---------- --------
Las Vegas Strip $443,864 $277,244 $ 777,361 $558,472
Other Nevada 21,678 10,727 30,676 20,467
MGM Grand Detroit 39,058 44,404 77,940 82,966
Mississippi 31,454 22,079 52,155 38,868
Unconsolidated affiliates 30,885 29,542 65,930 53,714
-------- -------- ---------- --------
$566,939 $383,996 $1,004,062 $754,487
======== ======== ========== ========
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS
(Unaudited)
Three Months Ended Six Months Ended
------------------ ------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
------- ------- ------- -------
Las Vegas Strip
Occupancy % 96.7% 97.1% 96.7% 95.7%
Average daily rate (ADR) $ 149 $ 146 $ 157 $ 150
Revenue per available room
(REVPAR) $ 144 $ 142 $ 152 $ 144
Other
Occupancy % 74.6% 80.1% 74.7% 76.7%
ADR $ 58 $ 63 $ 61 $ 62
REVPAR $ 43 $ 51 $ 45 $ 47
Company-wide
Occupancy % 91.8% 93.5% 91.9% 91.6%
ADR $ 133 $ 131 $ 140 $ 135
REVPAR $ 122 $ 123 $ 129 $ 123
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO EBITDA
(In thousands)
(Unaudited)
Three Months Ended June 30, 2005
--------------------------------
Depreci- Pre-
ation opening Restruc- Property
and and turing trans-
Operating amorti- start-up costs actions,
income zation expenses (credit) net EBITDA
--------- ------ -------- ------- -------- ---------
Las Vegas
Strip $319,743 $121,890 $ 583 $ (4) $ 1,652 $ 443,864
Other Nevada 12,542 9,138 -- -- (2) 21,678
MGM Grand
Detroit 32,359 6,397 -- -- 302 39,058
Mississippi 24,104 7,315 62 -- (27) 31,454
Unconsolidated
affiliates 28,547 -- 2,338 -- -- 30,885
-------- -------- ------ ------ ------- --------
417,295 144,740 2,983 (4) 1,925 566,939
Corporate
and other (39,366) 6,933 914 -- (132) (31,651)
-------- -------- ------ ------ ------- --------
$377,929 $151,673 $3,897 $ (4) $ 1,793 $ 535,288
======== ======== ====== ====== ======= ==========
Three Months Ended June 30, 2004
--------------------------------
Depreci- Pre-
ation opening Property
and and Restruc- trans-
Operating amorti- start-up turing actions,
income zation expenses costs net EBITDA
--------- ------ -------- ------- -------- ---------
Las Vegas
Strip $195,320 $74,143 $1,619 $3,900 $2,262 $ 277,244
Other Nevada 4,554 5,635 -- -- 538 10,727
MGM Grand
Detroit 37,074 7,373 -- -- (43) 44,404
Mississippi 16,669 5,242 -- -- 168 22,079
Unconsolidated
affiliates 29,542 -- -- -- -- 29,542
-------- -------- ------ ------ ------- ----------
283,159 92,393 1,619 3,900 2,925 383,996
Corporate
and other (22,562) 5,091 -- -- (987) (18,458)
-------- -------- ------ ------ ------- ----------
$260,597 $97,484 $1,619 $3,900 $1,938 $ 365,538
======== ======== ====== ====== ======= ==========
Six Months Ended June 30, 2005
------------------------------
Depreci- Pre-
ation opening Restruc- Property
and and turing trans-
Operating amorti- start-up costs actions,
income zation expenses (credit) net EBITDA
--------- ------ -------- ------- -------- ---------
Las Vegas
Strip $560,978 $208,042 $2,919 $ (4) $5,426 $ 777,361
Other Nevada 15,655 15,084 -- -- (63) 30,676
MGM Grand
Detroit 64,224 13,412 -- -- 304 77,940
Mississippi 39,412 12,628 75 -- 40 52,155
Unconsolidated
affiliates 63,523 -- 2,407 -- -- 65,930
-------- -------- ------ ------ ------- ----------
743,792 249,166 5,401 (4) 5,707 1,004,062
Corporate
and other (72,687) 13,002 1,020 (66) 289 (58,442)
-------- -------- ------ ------ ------- ----------
$671,105 $262,168 $6,421 $(70) $5,996 $ 945,620
======== ======== ====== ====== ======= ==========
Six Months Ended June 30, 2004
------------------------------
Depreci- Pre-
ation opening Property
and and Restruc- trans-
Operating amorti- start-up turing actions,
income zation expenses costs net EBITDA
--------- ------ -------- ------- -------- ---------
Las Vegas
Strip $401,863 $146,952 $1,871 $3,900 $3,886 $ 558,472
Other Nevada 10,163 9,851 -- -- 453 20,467
MGM Grand
Detroit 67,773 14,847 -- -- 346 82,966
Mississippi 28,343 10,546 -- -- (21) 38,868
Unconsolidated
affiliates 53,714 -- -- -- -- 53,714
-------- -------- ------ ------ ------- ----------
561,856 182,196 1,871 3,900 4,664 754,487
Corporate
and other (46,593) 12,841 129 414 (987) (34,196)
-------- -------- ------ ------ ------- --------
$515,263 $195,037 $2,000 $4,314 $3,677 $ 720,291
======== ======== ====== ====== ======= ==========
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
June 30, December 31,
2005 2004
-------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 306,495 $ 435,128
Accounts receivable, net 301,919 204,151
Inventories 114,451 70,333
Deferred income taxes 115,878 28,928
Prepaid expenses and other 203,455 81,662
---------- ---------
Total current assets 1,042,198 820,202
---------- ---------
Property and equipment, net 16,538,104 8,914,142
Other assets:
Investments in unconsolidated
affiliates 886,301 842,640
Goodwill and other intangible
assets, net 1,664,867 233,335
Deposits and other assets, net 375,145 304,710
----------- -----------
Total other assets 2,926,313 1,380,685
----------- -----------
$20,506,615 $11,115,029
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 182,930 $ 198,050
Income taxes payable 168,470 4,991
Current portion of long-term
debt 14 14
Accrued interest on long-term
debt 199,985 116,997
Other accrued liabilities 961,867 607,925
----------- -----------
Total current liabilities 1,513,266 927,977
----------- -----------
Deferred income taxes 3,365,146 1,802,008
Long-term debt 12,268,883 5,458,848
Other long-term obligations 183,306 154,492
Stockholders' equity:
Common stock ($.01 par value:
authorized 600,000,000 shares,
issued 353,938,925 and
347,147,868 shares and
outstanding 287,273,210
and 280,739,868 shares) 3,539 3,472
Capital in excess of par value 2,504,680 2,346,329
Deferred compensation (7,079) (10,878)
Treasury stock, at cost
(66,665,715 and 66,408,000
shares) (1,120,528) (1,110,551)
Retained earnings 1,796,716 1,544,499
Accumulated other comprehensive
loss (1,314) (1,167)
----------- -----------
Total stockholders' equity 3,176,014 2,771,704
----------- -----------
$20,506,615 $11,115,029
=========== ===========
SOURCE: MGM MIRAGE
CONTACT: Investment Community, James J. Murren, President, Chief
Financial Officer & Treasurer, +1-702-693-8877, or News Media, Alan M.
Feldman, Senior Vice President, Public Affairs, +1-702-891-7147, both of
MGM MIRAGE
Web site: http://www.mgmmirage.com/