MGM MIRAGE (NYSE: MGM) today reported record fourth quarter and full year 2007 financial results. The Company earned $2.85 per diluted share from continuing operations in the fourth quarter, compared to $0.68 in the prior year. The current quarter included a significant gain, $1.03 billion before income taxes, on the contribution of CityCenter to a joint venture on November 15, 2007. The following table lists significant items which affect the comparability of the current year and prior year quarterly results (earnings per share ("EPS") impact shown, net of tax, per diluted share; negative amounts represent charges to income):
Three months ended December 31, 2007 2006
------------------------------------------------------------------------
Gain on contribution of CityCenter to a joint
venture $ 2.23 $ -
Preopening and start-up expenses (0.11) (0.02)
Profits from The Signature at MGM Grand 0.02 0.15
Hurricane Katrina business interruption
(recorded as a reduction of general and
administrative expenses) 0.08 -
Property transactions net:
Hurricane Katrina property damage income 0.23 0.19
Other property transactions (0.01) (0.02)
Net revenues increased 4% to $1.9 billion, a record fourth quarter for the Company. The Company benefited from solid customer volumes at its Las Vegas Strip resorts, particularly in the high-end gaming and leisure customer segments. Baccarat volume at the Company's Las Vegas Strip resorts increased 15% and REVPAR(1) at those same resorts increased 4%. Several of the Company's Las Vegas resorts earned record fourth quarter Property EBITDA(2) -- MGM Grand, Mandalay Bay, Luxor and TI. However, these results were offset by lower fourth quarter Property EBITDA at other resorts, including Bellagio and Mirage. Overall, Property EBITDA was $706 million, a 5% decrease from the 2006 quarter, as increases in insurance recoveries at Beau Rivage in the current year were offset by higher preopening costs and lower income related to Signature condominium sales. On a comparable basis, Property EBITDA decreased 1% compared to the fourth quarter of 2006.
Significant developments include:
* Opened the new MGM Grand Detroit casino and hotel resort complex on
October 2, 2007;
* Announced plans for MGM Grand Atlantic City, a $4.5-$5.0 billion
destination casino resort, which will be located on the Company's
72-acre site at Renaissance Pointe;
* Completed the sale of 14.2 million shares of common stock at $84 per
share to a subsidiary of Dubai World on October 18, 2007 for proceeds of
approximately $1.2 billion;
* Announced plans to manage the development and operations of a $3 billion
non-gaming, mixed-use resort in Abu Dhabi, which will include a MGM
Grand branded non-gaming resort;
* Closed on the CityCenter joint venture transaction on November 15, 2007.
The Company contributed the CityCenter assets which the parties had
mutually valued at $5.4 billion, subject to certain adjustments. Dubai
World contributed approximately $2.96 billion and, immediately following
the close, the Company received a cash distribution from the joint
venture of approximately $2.47 billion. The joint venture retained
approximately $490 million to fund near-term construction costs and will
obtain project specific financing to fund remaining project costs;
* Repurchased 7.4 million shares of its common stock for $652 million,
including 1.9 million shares under its new 20 million share repurchase
program approved by the Company's Board of Directors in December 2007;
* Opened, as 50% owner of MGM Grand Paradise, the stunning MGM Grand Macau
casino resort on December 18, 2007.
"Even while closing on the most historic transaction in our Company's history -- the CityCenter joint venture and strategic relationship with Dubai World -- our dedicated employees delivered exceptional operating results," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "Our Company is ideally positioned to excel domestically and internationally. We have the premier resorts in our markets and a focused management team, and we continue moving forward on substantial growth initiatives."
Detailed Discussion of Fourth Quarter Operating Results
--------------------------------------------------------
Gaming revenues increased 2%, led by strong baccarat volume -- up 17% -- and strong slots revenue -- up 3%. Several of our Las Vegas Strip resorts turned in solid slots performances, and overall Las Vegas Strip slots revenue was up 3%. Additionally, slots revenue at MGM Grand Detroit increased 12% with the opening of the new permanent facility. The overall table games hold percentage was near the high end of the normal 18% to 22% range in the 2007 period, and was slightly higher than the fourth quarter of 2006.
Rooms revenue increased 5%, led by a 4% increase in Las Vegas Strip REVPAR. Average room rates were up 3% at the Company's Las Vegas Strip resorts with occupancy consistent with the prior year. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:
Three months ended December 31, 2007 2006
------------------------------------------------------------------------
Occupancy % 93% 93%
Average Daily Rate (ADR) $ 156 $ 151
Revenue per Available Room (REVPAR) $ 145 $ 140
Food and beverage revenue increased 7% as the Company's restaurants and nightclubs continue to experience increased volumes and the Company continues to invest in new restaurants and nightclubs. The current quarter benefited from the LAX nightclub at Luxor, as well as Luxor's recently opened restaurants -- Cathouse and Company -- and the new Liquidity bar and lounge at the center of the casino. Catering and banquets revenue also increased significantly at Mandalay Bay in the quarter. Entertainment revenue increased 9% driven by a strong event calendar for boxing and concert events, as well as strong demand for the Company's portfolio of Cirque du Soleil productions.
MGM Grand Detroit earned $33 million of Property EBITDA, down 8% from the 2006 quarter, despite the opening of the new permanent casino facility. Net revenues at MGM Grand Detroit increased 29% but operating margins declined; as is often the case with a new facility, operating expenses were higher than normal, and MGM Grand Detroit also incurred $7 million of preopening and start-up expenses.
Beau Rivage also experienced a decline in Property EBITDA -- excluding insurance recoveries - as new competitors have opened since the 2006 quarter. Insurance recoveries of $39 million were recorded as a reduction in general and administrative expenses and $110 million of insurance recoveries were recorded as property transactions. In 2006, Beau Rivage recorded $86 million of insurance recoveries, all recorded as property transactions.
Operating income was positively impacted by the CityCenter gain and insurance recoveries at Beau Rivage and negatively impacted by lower profits from condominium sales at The Signature at MGM Grand -- $9 million in the 2007 quarter versus $65 million in 2006 -- as the development and sales process for The Signature at MGM Grand was completed earlier in 2007. In addition, the Company incurred higher preopening expense -- $38 million in the current quarter versus $9 million in 2006. Preopening and start-up expenses in the 2007 quarter included $25 million related to the Company's share of preopening expenses at MGM Grand Macau, $7 million related to MGM Grand Detroit, and $5 million related to CityCenter. Excluding these items, operating income decreased 9%, mainly due to new labor contracts in Las Vegas and Detroit and higher depreciation expense incurred related to our continued capital investments, including the MGM Grand Detroit.
Property EBITDA was also impacted by the items discussed above and was down 1% on a comparable basis to the prior year quarter. The following table lists the items that impacted comparability of Property EBITDA (expense/(income)):
Three months ended December 31, 2007 2006
------------------------------------------------------------------------
(In thousands)
Profits from The Signature at MGM Grand $ (8,538) $ (65,246)
Preopening and start-up expenses 37,603 8,922
Hurricane Katrina business interruption
(recorded as a reduction of general and
administrative expenses) (39,227) -
Property transactions net:
Hurricane Katrina property damage income (110,268) (86,016)
Other property transactions 8,579 3,047
"In the fourth quarter, our overall business remained solid, and we continue to look for opportunities to maximize both customer volume and operating margins," said Jim Murren, MGM MIRAGE President and Chief Operating Officer. "Our strategy of executing profitable targeted capital investments can be seen across our resorts. Luxor now features an array of dining, nightclub and entertainment options, all opened within the past few months. Mandalay Bay has an entirely new standard room product. We believe our customers are very discriminating, and appreciate the difference in strategy between our company and our competitors -- a difference which will likely only become more pronounced over time."
Full Year 2007 Results
------------------------
For the full year 2007, net revenues increased 7% to $7.7 billion, 4% excluding Beau Rivage, which re-opened on August 29, 2006 after being closed for twelve months. The increase in revenues was largely a result of continued strength in leisure and business travel, as reflected in the 6% increase in Las Vegas Strip REVPAR in 2007. Revenue increases in non-gaming areas also resulted from the appeal of our hotel, restaurant, nightclub and entertainment products, which the Company believes garner significant market share and premium prices. Food and beverage revenue increased 11% for the year, and entertainment revenue increased 22% for the year.
EPS from continuing operations for the full year was $4.70 versus $2.18 earned in 2006. The following table lists significant items which affect the comparability of the current year and prior year annual results (EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):
Year ended December 31, 2007 2006
------------------------------------------------------------------------
Gain on contribution of CityCenter to a joint
venture $ 2.28 $ -
Preopening and start-up expenses (0.24) (0.09)
Profits from The Signature at MGM Grand 0.20 0.26
Hurricane Katrina business interruption
(recorded as a reduction of general and
administrative expenses) 0.15 -
Property transactions net:
Hurricane Katrina property damage income 0.47 0.19
Other property transactions (0.07) (0.02)
Financial Position
--------------------
Fourth quarter capital investments totaled $515 million, which included $228 million for CityCenter through November 15 and $49 million for the permanent MGM Grand Detroit resort. Remaining capital expenditures included spending of $25 million on room and suite remodel projects, primarily at Bellagio and Excalibur, expenditures for corporate aircraft of $21 million, and $192 million of other routine capital expenditures on various new and upgraded amenities at the Company's resorts.
During the quarter, the Company received an additional $113 million of insurance recoveries related to Hurricane Katrina, bringing cumulative proceeds through December 31, 2007 to $635 million, and closing out the Company's claims related to Hurricane Katrina.
The proceeds of $1.2 billion from the sale of common stock in October to a subsidiary of Dubai World and the $2.5 billion distributed from the CityCenter joint venture in November were used to reduce outstanding borrowings under the Company's senior credit facility. Available borrowing capacity under the Company's senior credit facility was $3.7 million as of December 31, 2007.
Subsequent to year end the Company repaid $180 million of its senior notes at maturity. Also, in January 2008, the Company initiated a 15 million share joint tender offer with Dubai World at a price of $80 per share. The tender offer period expired on February 14, 2008 and all 15 million shares will be purchased. The Company will purchase 8.5 million shares for a total cost of $680 million from borrowings under the senior credit facility.
"Our Company is financially well positioned to carry out planned growth initiatives, including reinvestment in our existing resorts, while at the same time maintaining a strong balance sheet," said Dan D'Arrigo, MGM MIRAGE Executive Vice President and Chief Financial Officer. "Our capital allocation strategy remains sound, and will allow us to prudently expand our brands both domestically and in international markets, while maximizing shareholder value."
MGM MIRAGE will hold a conference call to discuss its fourth quarter earnings results and outlook for the first quarter of 2008 at 11:00 a.m. Eastern Standard Time today. The call can be accessed live at http://www.companyboardroom.com/ or http://www.mgmmirage.com/, or by calling 1-800-526-8531 (domestic) or 1-706-634-6528 (international). Until Thursday, February 28, 2008, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 33165515. A complete replay of the call will also be made available at http://www.mgmmirage.com/. Supplemental detailed earnings information will also be available on the Company's website.
(1) REVPAR is hotel Revenue per Available Room.
(2) "EBITDA" is earnings before interest and other non-operating income
(expense), taxes, depreciation and amortization. "Property EBITDA" is
EBITDA before corporate expense and stock compensation expense.
EBITDA information 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. In addition, capital allocation,
tax planning, financing and stock compensation awards are all managed
at the corporate level. Management uses Property EBITDA 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
consolidated EBITDA to net income and of operating income to Property
EBITDA are included in the financial schedules accompanying this
release.
MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected development companies with significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. MGM MIRAGE is developing major casino and non- casino resorts, separately and with partners in Las Vegas, Atlantic City, the People's Republic of China and Abu Dhabi, U.A.E. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received 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 Twelve Months Ended
-------------------------- -------------------------
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
------------ ------------ ----------- -----------
Revenues:
Casino $ 849,350 $ 833,439 $3,239,054 $3,130,438
Rooms 515,636 493,111 2,130,542 1,991,477
Food and beverage 402,869 375,753 1,651,655 1,483,914
Entertainment 142,331 130,417 560,909 459,540
Retail 73,218 71,160 296,148 278,695
Other 130,469 117,018 519,360 452,669
------------ ------------ ----------- -----------
2,113,873 2,020,898 8,397,668 7,796,733
Less: Promotional
allowances (185,157) (174,860) (706,031) (620,777)
------------ ------------ ----------- -----------
1,928,716 1,846,038 7,691,637 7,175,956
------------ ------------ ----------- -----------
Expenses:
Casino 437,443 425,198 1,677,884 1,612,992
Rooms 141,715 135,410 570,191 539,442
Food and beverage 248,164 234,860 984,279 902,278
Entertainment 95,548 93,567 399,106 333,619
Retail 48,330 43,988 190,137 179,929
Other 84,972 63,913 317,550 245,126
General and
administrative 266,624 285,592 1,140,363 1,070,942
Corporate expense 53,220 51,092 193,893 161,507
Preopening and
start-up
expenses 37,830 9,054 92,105 36,362
Restructuring costs -- -- -- 1,035
Property
transactions,
net (104,514) (77,435) (186,313) (40,980)
Gain on
CityCenter
transaction (1,029,660) -- (1,029,660) --
Depreciation and
amortization 193,768 168,121 700,334 629,627
------------ ------------ ----------- -----------
473,440 1,433,360 5,049,869 5,671,879
------------ ------------ ----------- -----------
Income from
unconsolidated
affiliates 29,935 95,398 222,162 254,171
------------ ------------ ----------- -----------
Operating income 1,485,211 508,076 2,863,930 1,758,248
------------ ------------ ----------- -----------
Non-operating income
(expense):
Interest income 4,274 2,770 17,210 11,192
Interest expense,
net (160,870) (187,368) (708,343) (760,361)
Non-operating items
from
unconsolidated
affiliates (4,386) (4,500) (18,805) (16,063)
Other, net 9,120 (8,213) 4,436 (15,090)
------------ ------------ ----------- -----------
(151,862) (197,311) (705,502) (780,322)
------------ ------------ ----------- -----------
Income from
continuing
operations before
income taxes 1,333,349 310,765 2,158,428 977,926
Provision for
income taxes (462,575) (111,637) (757,883) (341,930)
------------ ------------ ----------- -----------
Income from
continuing
operations 870,774 199,128 1,400,545 635,996
------------ ------------ ----------- -----------
Discontinued
operations:
Income from
discontinued
operations -- 3,658 10,461 18,473
Gain on disposal
of discontinued
operations 1,932 -- 265,813 --
Provision for income
taxes (495) (1,215) (92,400) (6,205)
------------ ------------ ----------- -----------
1,437 2,443 183,874 12,268
------------ ------------ ----------- -----------
Net income $ 872,211 $ 201,571 $1,584,419 $ 648,264
============ ============ =========== ===========
Per share of common
stock:
Basic:
Income from
continuing
operations $ 2.96 $ 0.70 $ 4.88 $ 2.25
Discontinued
operations -- 0.01 0.64 0.04
------------ ------------ ----------- -----------
Net income per
share $ 2.96 $ 0.71 $ 5.52 $ 2.29
============ ============ =========== ===========
Weighted average
shares
outstanding 294,545 282,307 286,809 283,140
============ ============ =========== ===========
Diluted:
Income from
continuing
operations $ 2.85 $ 0.68 $ 4.70 $ 2.18
Discontinued
operations -- 0.01 0.61 0.04
------------ ------------ ----------- -----------
Net income per
share $ 2.85 $ 0.69 $ 5.31 $ 2.22
============ ============ =========== ===========
Weighted average
shares
outstanding 305,989 291,774 298,284 291,747
============ ============ =========== ===========
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------------- -------------------------
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
------------ ------------ ----------- -----------
Las Vegas Strip $1,608,565 $1,556,676 $6,473,793 $6,227,768
Other Nevada 39,415 46,385 177,082 197,646
MGM Grand Detroit 150,310 116,155 487,359 461,297
Mississippi 124,584 126,822 547,561 289,245
Other 5,842 -- 5,842 --
------------ ------------ ----------- -----------
$1,928,716 $1,846,038 $7,691,637 $7,175,956
============ ============ =========== ===========
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------------- -------------------------
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
------------ ------------ ----------- -----------
Las Vegas Strip $ 501,934 $ 494,491 $2,051,598 $2,022,608
Other Nevada 501 3,903 10,393 22,729
MGM Grand Detroit 33,411 36,354 113,658 150,374
Mississippi 167,234 112,506 394,829 154,907
Other 1,040 -- 1,040 --
Unconsolidated
resorts 2,283 93,051 181,123 247,205
------------ ------------ ----------- -----------
$ 706,403 $ 740,305 $2,752,641 $2,597,823
============ ============ =========== ===========
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
(In thousands)
(Unaudited)
Three Months Ended December 31, 2007
---------------------------------------
Preopening
and Property
start-up Restructuring transactions,
expenses costs net Total
------------ ------------ ----------- -----------
Las Vegas
Strip $ 2,833 $ -- $ 8,658 $ 11,491
Other Nevada -- -- -- --
MGM Grand Detroit 7,119 -- (570) 6,549
Mississippi -- -- (109,777) (109,777)
Unconsolidated
resorts 27,652 -- -- 27,652
------------ ------------ ----------- -----------
37,604 -- (101,689) (64,085)
Corporate and
other 226 -- (2,825) (2,599)
------------ ------------ ----------- -----------
$ 37,830 $ -- $ (104,514) $ (66,684)
============ ============ =========== ===========
Three Months Ended December 31, 2006
---------------------------------------
Preopening
and Property
start-up Restructuring transactions,
expenses costs net Total
------------ ------------ ----------- -----------
Las Vegas
Strip $ 5,186 $ -- $ 2,668 $ 7,854
Other Nevada -- -- 378 378
MGM Grand Detroit 1,389 -- -- 1,389
Mississippi -- -- (86,015) (86,015)
Unconsolidated
resorts 2,347 -- -- 2,347
------------ ------------ ----------- -----------
8,922 -- (82,969) (74,047)
Corporate and
other 132 -- 5,534 5,666
------------ ------------ ----------- -----------
$ 9,054 $ -- $ (77,435) $ (68,381)
============ ============ =========== ===========
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA (continued)
(In thousands)
(Unaudited)
Twelve Months Ended December 31, 2007
---------------------------------------
Preopening
and Property
start-up Restructuring transactions,
expenses costs net Total
------------ ------------ ----------- -----------
Las Vegas
Strip $ 24,078 $ -- $ 29,258 $ 53,336
Other Nevada -- -- 4,630 4,630
MGM Grand Detroit 26,257 -- (570) 25,687
Mississippi -- -- (216,211) (216,211)
Unconsolidated
resorts 41,039 -- -- 41,039
------------ ------------ ----------- -----------
91,374 -- (182,893) (91,519)
Corporate and
other 731 -- (3,420) (2,689)
------------ ------------ ----------- -----------
$ 92,105 $ -- $ (186,313) $ (94,208)
============ ============ =========== ===========
Twelve Months Ended December 31, 2006
---------------------------------------
Preopening
and Property
start-up Restructuring transactions,
expenses costs net Total
------------ ------------ ----------- -----------
Las Vegas
Strip $ 24,210 $ 1,035 $ 35,303 $ 60,548
Other Nevada -- -- 336 336
MGM Grand Detroit 3,313 -- 1 3,314
Mississippi -- -- (85,838) (85,838)
Unconsolidated
resorts 8,316 -- -- 8,316
------------ ------------ ----------- -----------
35,839 1,035 (50,198) (13,324)
Corporate and
other 523 -- 9,218 9,741
------------ ------------ ----------- -----------
$ 36,362 $ 1,035 $ (40,980) $ (3,583)
============ ============ =========== ===========
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------------- -------------------------
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
------------ ------------ ----------- -----------
EBITDA $1,678,979 $ 676,197 $3,564,264 $2,387,875
Depreciation and
amortization (193,768) (168,121) (700,334) (629,627)
------------ ------------ ----------- -----------
Operating income 1,485,211 508,076 2,863,930 1,758,248
------------ ------------ ----------- -----------
Non-operating income
(expense):
Interest expense,
net (160,870) (187,368) (708,343) (760,361)
Other 9,008 (9,943) 2,841 (19,961)
------------ ------------ ----------- -----------
(151,862) (197,311) (705,502) (780,322)
------------ ------------ ----------- -----------
Income from continuing
operations before
income taxes 1,333,349 310,765 2,158,428 977,926
Provision for
income taxes (462,575) (111,637) (757,883) (341,930)
------------ ------------ ----------- -----------
Income from
continuing
operations $ 870,774 $ 199,128 $1,400,545 $ 635,996
============ ============ =========== ===========
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended December 31, 2007
--------------------------------------
Depreciation
Operating and
income amortization EBITDA
------------- -------------- -----------
Las Vegas Strip $ 355,262 $ 146,672 $ 501,934
Other Nevada (981) 1,482 501
MGM Grand Detroit 19,425 13,986 33,411
Mississippi 151,460 15,774 167,234
Other 70 970 1,040
Unconsolidated resorts 2,283 -- 2,283
------------- -------------- -----------
527,519 178,884 706,403
Stock compensation (11,195)
Gain on CityCenter
transaction 1,029,660
Corporate and other (45,889)
-----------
$1,678,979
===========
Three Months Ended December 31, 2006
--------------------------------------
Depreciation
Operating and
income amortization EBITDA
------------- -------------- -----------
Las Vegas Strip $ 359,467 $ 135,024 $ 494,491
Other Nevada 1,932 1,971 3,903
MGM Grand Detroit 30,880 5,474 36,354
Mississippi 97,387 15,119 112,506
Unconsolidated resorts 93,051 -- 93,051
------------- -------------- -----------
582,717 157,588 740,305
Stock compensation (15,065)
Corporate and other (49,043)
-----------
$ 676,197
===========
Twelve Months Ended December 31, 2007
--------------------------------------
Depreciation
Operating and
income amortization EBITDA
------------- -------------- -----------
Las Vegas Strip $1,502,156 $ 549,442 $2,051,598
Other Nevada 3,942 6,451 10,393
MGM Grand Detroit 81,836 31,822 113,658
Mississippi 333,452 61,377 394,829
Other 70 970 1,040
Unconsolidated resorts 181,123 -- 181,123
------------- -------------- -----------
2,102,579 650,062 2,752,641
Stock compensation (46,545)
Gain on CityCenter
transaction 1,029,660
Corporate and other (171,492)
-----------
$3,564,264
===========
Twelve Months Ended December 31, 2006
--------------------------------------
Depreciation
Operating and
income amortization EBITDA
------------- -------------- -----------
Las Vegas Strip $1,490,745 $ 531,863 $2,022,608
Other Nevada 13,755 8,974 22,729
MGM Grand Detroit 134,190 16,184 150,374
Mississippi 120,133 34,774 154,907
Unconsolidated resorts 247,205 -- 247,205
------------- -------------- -----------
2,006,028 591,795 2,597,823
Stock compensation (69,121)
Corporate and other (140,827)
-----------
$2,387,875
===========
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
December 31, December 31,
2007 2006
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 412,390 $ 452,944
Accounts receivable, net 412,345 362,921
Inventories 126,116 118,459
Income tax receivable -- 18,619
Deferred income taxes 63,453 68,046
Prepaid expenses and other 105,412 124,414
Assets held for sale 55,670 369,348
-------------- --------------
Total current assets 1,175,386 1,514,751
-------------- --------------
Real estate under development -- 188,433
Property and equipment, net 16,823,704 17,241,860
Other assets:
Investments in unconsolidated
affiliates 2,482,727 1,092,257
Goodwill 1,262,922 1,300,747
Other intangible assets, net 359,770 367,200
Deposits and other assets, net 623,177 440,990
-------------- --------------
Total other assets 4,728,596 3,201,194
-------------- --------------
$22,727,686 $22,146,238
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 219,556 $ 182,154
Construction payable 76,524 234,486
Income taxes payable 284,075 --
Accrued interest on long-term debt 211,228 232,957
Other accrued liabilities 929,424 958,244
Liabilities related to assets
held for sale 3,880 40,259
-------------- --------------
Total current liabilities 1,724,687 1,648,100
-------------- --------------
Deferred income taxes 3,416,660 3,441,157
Long-term debt 11,175,229 12,994,869
Other long-term obligations 350,407 212,563
Stockholders' equity:
Common stock, $.01 par value:
authorized 600,000,000 shares,
issued 368,395,926 and
362,886,027 shares and
outstanding 293,768,899
and 283,909,000 shares 3,684 3,629
Capital in excess of par value 3,951,162 2,806,636
Treasury stock, at cost:
74,627,027 and 78,977,027
shares (2,115,107) (1,597,120)
Retained earnings 4,220,408 2,635,989
Accumulated other comprehensive
income 556 415
-------------- --------------
Total stockholders' equity 6,060,703 3,849,549
-------------- --------------
$22,727,686 $22,146,238
============== ==============
First Call Analyst:
FCMN Contact: dan_d'arrigo@mgmmirage.com
SOURCE: MGM MIRAGE
CONTACT: Investment Community, Daniel J. D'Arrigo, Executive Vice
President, Chief Financial Officer, +1-702-693-8895, or News Media, Alan M.
Feldman, Senior Vice President Public Affairs, +1-702-650-6947, both of MGM
MIRAGE
Web site: http://www.mgmmirage.com/