The Company is Effectively Managing its Cost Structure to Maximize Cash Flow and Making Significant Strides to Increase Liquidity
MGM MIRAGE (NYSE: MGM) today reported its third quarter 2008 financial results. The Company earned $0.22 per diluted share from continuing operations for the 2008 third quarter compared to $0.62 in the prior year third quarter. Results for the 2008 quarter included a non-cash write-down of $30 million, or $0.07 per diluted share, related to the 36-hole Primm Valley Golf Club and underlying land. Results for the third quarter of 2007 included $135 million, or $0.30 per diluted share, of income related to insurance proceeds received for Hurricane Katrina. These and several other items impacted comparability of quarterly results as shown in the following table (earnings per share impact, net of tax, per diluted share; negative amounts represent charges to income):
Three months ended September 30, 2008 2007
-----------------------------------------------------------------------
Profits from The Signature at MGM Grand $ - $ 0.03
Preopening and start-up expenses (0.01) (0.06)
Hurricane Katrina business interruption income
(recorded as a reduction of general and
administrative expenses) - 0.06
Property transactions, net:
Hurricane Katrina property damage income - 0.24
Other property transactions (0.08) (0.04)
The Company's net revenue decreased 6% to $1.8 billion. Las Vegas Strip REVPAR(1) decreased 10%; casino revenue decreased 8%, while food and beverage revenue and entertainment revenue were down 3% and 4%, respectively.
Property EBITDA(2) was $502 million in the quarter compared to $705 million in 2007. The comparison was affected by the items noted above, and a $15 million impact from the reversal of bonus accruals in the 2008 quarter due to the Company not meeting its internal profit targets. On a comparable basis, excluding these items, Property EBITDA declined 18%, with a margin of 28% versus 32% in the prior year.
Consolidated EBITDA was $442 million compared to $635 million in 2007. Adjusting for items affecting comparability, including a total company-wide bonus accrual reversal of $22 million, EBITDA declined 14%. This decline is less than the Property EBITDA decline due to significantly lower corporate expense.
Bellagio reported extremely strong results for the third quarter with a 3% increase in net revenue and Property EBITDA of $90 million, an 8% increase over the prior year third quarter. Bellagio's average room rate increased 1% to $247 and occupancy was 96%, leading to an increase in REVPAR to $238 and an all-time high in terms of third quarter hotel revenues.
"We continue to manage our resorts to achieve maximum performance across all our businesses, and achieved occupancy of 95% at our Las Vegas Strip resorts for the third quarter," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "Our performance was impacted by the global economic environment, a trend that is not unique to our industry, but we continue to generate strong cash flows. Bellagio, our flagship resort, continues to outperform the market as evidenced by its third quarter performance."
Detailed Discussion of Third Quarter Operating Results
Casino revenue decreased 8%, mainly due to a decrease in table games volume of 13% at the Company's Las Vegas Strip resorts. The table games hold percentage was within the Company's normal 18% to 22% range in the current quarter and slightly higher than in the 2007 quarter. Slots revenue decreased 6% in the quarter, with the Company's Las Vegas Strip resorts reporting a 13% decrease, partially offset by double digit increases at Gold Strike Tunica and MGM Grand Detroit.
Rooms revenue decreased 10%. Average room rates were down 9% at the Company's Las Vegas Strip resorts, with Las Vegas Strip occupancy at 95% compared to 97% in the prior year quarter. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:
Three months ended September 30, 2008 2007
-----------------------------------------------------------------------
Occupancy % 95% 97%
Average Daily Rate (ADR) $135 $147
Revenue per Available Room (REVPAR) $128 $143
Other non-gaming revenues were relatively strong in light of current market conditions. Food and beverage revenues were down 3%. Entertainment revenues were down 4%, largely due to fewer events at the Company's arenas. The Company's market-leading Cirque du Soleil production shows continue to attract large audiences, with revenues consistent with the prior year quarter. In addition, Believe starring Criss Angel is currently playing preview performances at Luxor and will perform its grand-opening show on October 31.
Corporate expense decreased from $63 million in the 2007 quarter to $24 million in 2008. The current quarter includes the impact of cost reduction measures implemented throughout 2008 as well as the reversal of bonus accruals. Additionally, the 2007 quarter included $18 million of costs related to severance, development initiatives, and the CityCenter joint venture transaction.
MGM Grand Macau, of which the Company owns 50%, recorded Property EBITDA of $35 million, a 52% increase over the $23 million earned in the second quarter. The Company recognized its share of MGM Grand Macau's results as follows: $8 million of income in the "Income from unconsolidated affiliates" line and $3 million of expense in "Non-operating items from unconsolidated affiliates."
On a comparable basis, the Company's operating margin was 14% versus 19% in the prior year quarter, and operating income declined 29%. These year-over- year comparisons exclude the impact from the reversal of bonus accruals during the current quarter and the other items listed in the table earlier in the release.
"While our margins have held up well in a difficult environment, we continue to make permanent improvements to our cost structure which will benefit us now and into the future," said Jim Murren, President and Chief Operating Officer of MGM MIRAGE. "We continue to mobilize the unmatched talents of our management team to identify opportunities for margin improvement and remain focused on providing the highest levels of guest service. We believe we have plentiful opportunities to further reduce costs and we are dedicated to maximizing our cash flows."
Projects Update
In October 2007, the Company announced the development of MGM Grand Atlantic City, to be located adjacent to the Borgata on a 72-acre site in Renaissance Point in Atlantic City, New Jersey. The Company has made extensive progress on design and other pre-development activities. Current economic conditions and the impact of the credit market environment have caused the Company to reassess timing for the project. Accordingly, the Company has postponed additional development activities.
"We continue to believe that Atlantic City represents an important market for further development," said Mr. Lanni. "We intend to resume development at such time as economic conditions and capital markets are sufficiently improved to enable us to go forward on a reasonable basis. Likewise, with respect to our joint venture with Kerzner International and Istithmar announced in September 2007 for the development of a major resort complex on the southwest corner of the Las Vegas Strip and Sahara Avenue in Las Vegas, we have agreed with our joint venture partners that we should defer additional design and pre-construction activities and have amended our joint venture agreement accordingly. These actions reflect the Company's commitment to maximize our financial resources in this environment."
Financial Position
In September, the Company entered into an amendment to its $7.0 billion senior credit facility. The amendment increases the maximum total leverage ratio, modifies drawn and undrawn pricing levels as well as revises certain definitions and limitations on secured indebtedness. Available borrowing capacity under the Company's senior credit facility was $1.2 billion as of September 30, 2008.
In early October, CityCenter successfully completed the first phase of its financing by securing a $1.8 billion senior bank credit facility. CityCenter has received additional signed commitment letters totaling in excess of $500 million, and the Company and Dubai World continue to work with lenders to obtain additional financing, up to a total of $3.0 billion, for CityCenter. During the third quarter, the Company and Dubai World each provided CityCenter with additional loans of $300 million to fund construction.
"Securing $1.8 billion of financing at CityCenter and amending our $7.0 billion senior credit facility provide the Company with significant additional financial flexibility," said Executive Vice President and Chief Financial Officer of MGM MIRAGE, Dan D'Arrigo. "We intend to further access the capital markets, and aggressively manage our liquidity and financial position."
Third quarter capital investments totaled $181 million, which included $73 million for room and suite remodel projects, primarily at The Mirage and TI; and $19 million for projects related to CityCenter, including the people mover connecting Bellagio, CityCenter, and Monte Carlo, as well as expenditures for Monte Carlo's share of a new parking garage. The remaining $89 million was for other capital expenditures, including various new and upgraded amenities at the Company's resorts.
Goodwill and Indefinite-lived Intangible Assets
The Company reviews goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter and between annual test dates in certain circumstances. The majority of the Company's goodwill and indefinite- lived intangible assets (mainly trademarks and license rights) relate to the Mandalay Resort Group acquisition in April 2005. The Company does not believe a triggering event requiring the Company to conduct an interim impairment test had occurred as of September 30, 2008 and will perform the annual test during the fourth quarter. The Company notes that its market capitalization as of September 30, 2008 exceeded its net book value by 53%, or $2.7 billion, and its net book value per share was $18.61. However, due to a subsequent decline in the Company's market capitalization, the Company believes it is reasonably possible that its fourth quarter analysis will result in a non-cash impairment charge, but cannot reasonably estimate the amount of such charge until it completes its annual evaluation later in the fourth quarter. As of September 30, 2008, the balances of the Company's goodwill and indefinite-lived intangible assets were $1.3 billion and $345 million, respectively.
MGM MIRAGE will hold a conference call to discuss its third quarter earnings results and outlook for the fourth quarter of 2008 at 11:00 a.m. Eastern Daylight 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 November 5, 2008, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 69045664. 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 INCOME STATEMENT
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
----------------------------- -----------------------------
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
-------------- -------------- -------------- --------------
Revenues:
Casino $ 739,331 $ 803,834 $ 2,271,978 $ 2,389,704
Rooms 458,051 510,795 1,500,322 1,614,906
Food and
beverage 395,090 406,620 1,229,045 1,248,786
Entertainment 135,673 141,093 408,541 418,578
Retail 69,205 75,608 202,060 222,930
Other 155,335 132,061 478,664 388,891
-------------- -------------- -------------- --------------
1,952,685 2,070,011 6,090,610 6,283,795
Less:
Promotional
allowances (167,154) (172,941) (506,355) (520,874)
-------------- -------------- -------------- --------------
1,785,531 1,897,070 5,584,255 5,762,921
-------------- -------------- -------------- --------------
Expenses:
Casino 383,406 404,509 1,200,948 1,217,643
Rooms 136,313 135,550 412,846 407,813
Food and
beverage 237,130 232,829 720,201 709,234
Entertainment 94,667 100,281 288,617 300,913
Retail 42,411 47,211 128,070 139,785
Other 99,389 81,256 307,521 225,316
General and
administrative 326,831 314,625 971,016 956,010
Corporate expense 24,466 63,050 83,537 140,673
Preopening and
start-up
expenses 5,505 25,851 17,626 54,275
Restructuring
costs - - 329 -
Property
transactions,
net 32,326 (89,225) 34,984 (81,799)
Depreciation
and
amortization 200,102 170,780 591,659 506,566
-------------- -------------- -------------- --------------
1,582,546 1,486,717 4,757,354 4,576,429
-------------- -------------- -------------- --------------
Income from
unconsolidated
affiliates 38,572 54,260 89,728 192,227
-------------- -------------- -------------- --------------
Operating
income 241,557 464,613 916,629 1,378,719
-------------- -------------- -------------- --------------
Non-operating
income
(expense):
Interest income 5,910 4,770 13,056 12,936
Interest
expense, net (144,751) (180,033) (439,844) (547,473)
Non-operating
items from
unconsolidated
affiliates (9,552) (4,599) (26,731) (14,419)
Other, net 2,125 (1,152) 791 (4,684)
-------------- -------------- -------------- --------------
(146,268) (181,014) (452,728) (553,640)
-------------- -------------- -------------- --------------
Income from
continuing
operations
before income
taxes 95,289 283,599 463,901 825,079
Provision for
income
taxes (34,011) (99,736) (171,176) (295,308)
Income from -------------- -------------- -------------- --------------
continuing
operations 61,278 183,863 292,725 529,771
-------------- -------------- -------------- --------------
Discontinued
operations:
Income from
discontinued
operations - - - 10,461
Gain on
disposal of
discontinued
operations - - - 263,881
Provision for
income taxes - - - (91,905)
-------------- -------------- -------------- --------------
- - - 182,437
-------------- -------------- -------------- --------------
Net income $ 61,278 $ 183,863 $ 292,725 $ 712,208
============== ============== ============== ==============
Per share of
common stock:
Basic:
Income from
continuing
operations $ 0.22 $ 0.65 $ 1.04 $ 1.86
Discontinued
operations - - - 0.65
Net income -------------- -------------- -------------- --------------
per share $ 0.22 $ 0.65 $ 1.04 $ 2.51
============== ============== ============== ==============
Weighted
average
shares
outstanding 276,417 284,730 280,926 284,201
============== ============== ============== ==============
Diluted:
Income from
continuing
operations $ 0.22 $ 0.62 $ 1.02 $ 1.79
Discontinued
operations - - - 0.62
Net income -------------- -------------- -------------- --------------
per share $ 0.22 $ 0.62 $ 1.02 $ 2.41
============== ============== ============== ==============
Weighted
average
shares
outstanding 279,846 296,248 287,604 295,687
============== ============== ============== ==============
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
----------------------------- -----------------------------
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
-------------- -------------- -------------- --------------
Las Vegas Strip $ 1,450,899 $ 1,598,237 $ 4,569,476 $ 4,865,228
Other Nevada 41,334 46,177 117,005 137,667
MGM Grand
Detroit 139,859 110,445 430,067 337,049
Mississippi 135,357 142,211 408,980 422,977
Other 18,082 - 58,727 -
-------------- -------------- -------------- --------------
$ 1,785,531 $ 1,897,070 $ 5,584,255 $ 5,762,921
============== ============== ============== ==============
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
----------------------------- -----------------------------
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
-------------- -------------- -------------- --------------
Las Vegas Strip $ 398,998 $ 469,598 $ 1,361,238 $ 1,549,664
Other Nevada 3,226 5,808 1,806 9,892
MGM Grand
Detroit 33,849 17,305 106,785 80,247
Mississippi 26,208 164,285 82,194 227,595
Other 5,066 - 13,815 -
Unconsolidated
resorts 34,535 47,746 74,536 178,840
-------------- -------------- -------------- --------------
$ 501,882 $ 704,742 $ 1,640,374 $ 2,046,238
============== ============== ============== ==============
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
(In thousands)
(Unaudited)
Three Months Ended September 30, 2008
-------------------------------------
Preopening and Property
start-up Restructuring transactions,
expenses costs net Total
-------------- -------------- -------------- --------------
Las Vegas Strip $ 1,494 $ - $ 1,765 $ 3,259
Other Nevada - - 20 20
MGM Grand
Detroit - - - -
Mississippi - - 71 71
Unconsolidated
resorts 3,957 - - 3,957
-------------- -------------- -------------- --------------
5,451 - 1,856 7,307
Corporate and
other 54 - 30,470 30,524
-------------- -------------- -------------- --------------
$ 5,505 $ - $ 32,326 $ 37,831
============== ============== ============== ==============
Three Months Ended September 30, 2007
-------------------------------------
Preopening and Property
start-up Restructuring transactions,
expenses costs net Total
-------------- -------------- -------------- --------------
Las Vegas Strip $ 5,642 $ - $ 17,735 $ 23,377
Other Nevada - - 20 20
MGM Grand
Detroit 13,554 - - 13,554
Mississippi - - (107,035) (107,035)
Unconsolidated
resorts 6,514 - - 6,514
-------------- -------------- -------------- --------------
25,710 - (89,280) (63,570)
Corporate and
other 141 - 55 196
-------------- -------------- -------------- --------------
$ 25,851 $ - $ (89,225) $ (63,374)
============== ============== ============== ==============
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA (continued)
(In thousands)
(Unaudited)
Nine Months Ended September 30, 2008
------------------------------------
Preopening and Property
start-up Restructuring transactions,
expenses costs net Total
-------------- -------------- -------------- --------------
Las Vegas Strip $ 2,114 $ 329 $ 926 $ 3,369
Other Nevada - - 2,207 2,207
MGM Grand
Detroit 135 - 8 143
Mississippi - - 73 73
Unconsolidated
resorts 15,276 - - 15,276
-------------- -------------- -------------- --------------
17,525 329 3,214 21,068
Corporate and
other 101 - 31,770 31,871
-------------- -------------- -------------- --------------
$ 17,626 $ 329 $ 34,984 $ 52,939
============== ============== ============== ==============
Nine Months Ended September 30, 2007
------------------------------------
Preopening and Property
start-up Restructuring transactions,
expenses costs net Total
-------------- -------------- -------------- --------------
Las Vegas Strip $ 21,245 $ - $ 20,600 $ 41,845
Other Nevada - - 4,630 4,630
MGM Grand
Detroit 19,138 - - 19,138
Mississippi - - (106,434) (106,434)
Unconsolidated
resorts 13,387 - - 13,387
-------------- -------------- -------------- --------------
53,770 - (81,204) (27,434)
Corporate and
other 505 - (595) (90)
-------------- -------------- -------------- --------------
$ 54,275 $ - $ (81,799) $ (27,524)
============== ============== ============== ==============
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING
OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
----------------------------- -----------------------------
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
-------------- -------------- -------------- --------------
EBITDA $ 441,659 $ 635,393 $ 1,508,288 $ 1,885,285
Depreciation
and
amortization (200,102) (170,780) (591,659) (506,566)
-------------- -------------- -------------- --------------
Operating
income 241,557 464,613 916,629 1,378,719
-------------- -------------- -------------- --------------
Non-operating
income
(expense):
Interest
expense, net (144,751) (180,033) (439,844) (547,473)
Other (1,517) (981) (12,884) (6,167)
-------------- -------------- -------------- --------------
(146,268) (181,014) (452,728) (553,640)
-------------- -------------- -------------- --------------
Income from
continuing
operations
before income
taxes 95,289 283,599 463,901 825,079
Provision for
income taxes (34,011) (99,736) (171,176) (295,308)
-------------- -------------- -------------- --------------
Income from
continuing
operations $ 61,278 $ 183,863 $ 292,725 $ 529,771
============== ============== ============== ==============
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended September 30, 2008
-------------------------------------
Depreciation
Operating and
income amortization EBITDA
-------------- -------------- --------------
Las Vegas Strip $ 249,481 $ 149,517 $ 398,998
Other Nevada 1,588 1,638 3,226
MGM Grand Detroit 19,587 14,262 33,849
Mississippi 10,480 15,728 26,208
Other 2,531 2,535 5,066
Unconsolidated resorts 34,535 - 34,535
-------------- -------------- --------------
318,202 183,680 501,882
Stock compensation (8,870)
Corporate and other (51,353)
--------------
$ 441,659
==============
Three Months Ended September 30, 2007
-------------------------------------
Depreciation
Operating and
income amortization EBITDA
-------------- -------------- --------------
Las Vegas Strip $ 334,218 $ 135,380 $ 469,598
Other Nevada 4,304 1,504 5,808
MGM Grand Detroit 11,343 5,962 17,305
Mississippi 148,974 15,311 164,285
Unconsolidated resorts 47,746 - 47,746
-------------- -------------- --------------
546,585 158,157 704,742
Stock compensation (10,710)
Corporate and other (58,639)
--------------
$ 635,393
==============
Nine Months Ended September 30, 2008
------------------------------------
Depreciation
Operating and
income amortization EBITDA
-------------- -------------- --------------
Las Vegas Strip $ 917,235 $ 444,003 $ 1,361,238
Other Nevada (2,818) 4,624 1,806
MGM Grand Detroit 63,875 42,910 106,785
Mississippi 35,441 46,753 82,194
Other 7,203 6,612 13,815
Unconsolidated resorts 74,536 - 74,536
-------------- -------------- --------------
1,095,472 544,902 1,640,374
Stock compensation (29,665)
Corporate and other (102,421)
--------------
$ 1,508,288
==============
Nine Months Ended September 30, 2007
------------------------------------
Depreciation
Operating and
income amortization EBITDA
-------------- -------------- --------------
Las Vegas Strip $ 1,146,894 $ 402,770 $ 1,549,664
Other Nevada 4,923 4,969 9,892
MGM Grand Detroit 62,411 17,836 80,247
Mississippi 181,992 45,603 227,595
Unconsolidated resorts 178,840 - 178,840
-------------- -------------- --------------
1,575,060 471,178 2,046,238
Stock compensation (35,350)
Corporate and other (125,603)
--------------
$ 1,885,285
==============
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
September 30, December 31,
2008 2007
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 250,087 $ 416,124
Accounts receivable, net 322,821 412,933
Inventories 125,423 126,941
Income tax receivable 51,201 -
Deferred income taxes 46,347 63,453
Prepaid expenses and other 117,333 106,364
-------------- --------------
Total current assets 913,212 1,125,815
-------------- --------------
Property and equipment, net 16,889,955 16,870,898
Other assets:
Investments in unconsolidated affiliates 2,536,193 2,482,727
Goodwill 1,262,922 1,262,922
Other intangible assets, net 359,711 362,098
Deposits and other assets, net 1,428,735 623,226
-------------- --------------
Total other assets 5,587,561 4,730,973
-------------- --------------
$ 23,390,728 $ 22,727,686
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 155,183 $ 220,495
Construction payable 46,861 76,524
Income taxes payable - 284,075
Accrued interest on long-term debt 147,593 211,228
Other accrued liabilities 822,868 932,365
-------------- --------------
Total current liabilities 1,172,505 1,724,687
-------------- --------------
Deferred income taxes 3,420,190 3,416,660
Long-term debt 13,288,306 11,175,229
Other long-term obligations 365,267 350,407
Stockholders' equity:
Common stock, $.01 par value: authorized
600,000,000 shares, issued 369,275,641
and 368,395,926 shares and outstanding
276,498,614 and 293,768,899 shares 3,693 3,684
Capital in excess of par value 4,010,114 3,951,162
Treasury stock, at cost: 92,777,027 and
74,627,027 shares (3,355,963) (2,115,107)
Retained earnings 4,513,133 4,220,408
Accumulated other comprehensive income
(loss) (26,517) 556
-------------- --------------
Total stockholders' equity 5,144,460 6,060,703
-------------- --------------
$ 23,390,728 $ 22,727,686
============== ==============
First Call Analyst:
FCMN Contact: mrenelle@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/