Company Enters into an Amendment to Its Senior Credit Facility Providing a Waiver of Financial Covenants through May 15, 2009
MGM MIRAGE (NYSE: MGM) today reported its 2008 fourth quarter and full year financial results and provided details of a waiver and amendment of its senior credit facility.
Summary of Fourth Quarter Operating Results
The Company reported a fourth quarter diluted loss per share from continuing operations of $4.15, including a non-cash goodwill and indefinite-lived intangible asset impairment charge of $1.2 billion, or $4.25 per share, compared to earnings per share of $2.85 in the prior year quarter, which included a $1.03 billion, or $2.23 per share, gain on the CityCenter transaction. The Company notes that fourth quarter results were impacted by global economic conditions and market trends, and that these trends have continued into the first quarter. The Company earned net revenues of $1.6 billion and Property EBITDA(2) of $327 million in the fourth quarter of 2008, which included $27 million of preopening and start-up expenses and net property transactions.
The non-cash impairment charge, which is included in "Property transactions, net," relates to goodwill and other indefinite-lived intangible assets recognized in the 2005 acquisition of Mandalay Resort Group. Goodwill was assigned primarily to Mandalay Bay, Luxor, Excalibur, and Gold Strike Tunica; this impairment charge represents substantially all of the goodwill recognized at the time of the Mandalay acquisition and a minor portion of the value of trade names related to the Mandalay resorts. The charge resulted from several factors: 1) lower market valuation multiples for gaming assets; 2) higher discount rates resulting from turmoil in the credit markets; and 3) reduced cash flow forecasts for the affected resorts based on current market conditions.
The following table lists significant items which affect the comparability of the current and prior year quarterly results (EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):
Three months ended December 31, 2008 2007
Gain on contribution of CityCenter to a
joint venture $- $2.23
Preopening and start-up expenses (0.01) (0.11)
Profits from The Signature at MGM Grand - 0.02
Gains on repurchase of long-term debt 0.21 -
Hurricane Katrina business interruption
income (recorded as a reduction of general
and administrative expenses) - 0.08
Property transactions net:
Goodwill and indefinite-lived intangible
assets impairment (4.25) -
Hurricane Katrina property damage income - 0.23
Other property transactions, net 0.01 (0.01)
Summary of Senior Credit Facility Waiver and Amendment
On March 17, 2009, the Company obtained from the lenders under its senior credit facility a waiver of the requirement that the Company comply with the senior credit facility's financial covenants through May 15, 2009. Under the terms of the amendment, the Company repaid $300 million of the outstanding borrowings under its senior revolving credit facility. The amendment provides for a 100 basis point increase to the interest rate under the senior credit facility, prohibits the Company from prepaying or repurchasing any debt or disposing of assets, and allows the Company to continue to make its required equity contributions to CityCenter through May 15, 2009.
"We are pleased to have obtained this waiver and amendment of our senior credit facility. While there is still work to be done, this is a positive step that provides us with the opportunity to continue to work with our financial advisors and our bank group in addressing the Company's current financial position," said Jim Murren, Chairman and Chief Executive Officer of MGM MIRAGE. "The current economic climate remains challenging, but we are still driving high occupancy at our resorts, which are in terrific shape. We continue to provide our guests with world-class customer service and a renewed value proposition."
Detailed Discussion of Fourth Quarter Operating Results
Gaming revenues decreased 17% for the fourth quarter. The Company's total table games volume (including baccarat) decreased 17% in the quarter, with the overall table games hold percentage near the midpoint of the Company's normal 18% to 22% range in the 2008 period, lower than the 2007 period when the hold percentage was near the top end of the range. Slots revenues decreased 12% company-wide.
Rooms revenue decreased 21% as market conditions impacted rates and occupancy leading to a 21% decrease in Las Vegas Strip REVPAR(1). Average room rates decreased 15% at the Company's Las Vegas Strip resorts and occupancy decreased from 93% to 85%. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:
Three months ended December 31, 2008 2007
Occupancy % 85% 93%
Average Daily Rate (ADR) $133 $156
Revenue per Available Room (REVPAR) $114 $145
The Company's non-gaming revenues excluding rooms decreased 9%. Such revenues were impacted by the decreased customer spending and lower occupancy at the Company's resorts. The Company continues to generate a significant portion of its revenue from its non-gaming businesses by providing new and exciting experiences for its guests. For example, the Company recently opened the Terry Fator show at The Mirage and, in conjunction with its partners at Disney Theatrical Productions, plans to open the Broadway sensation The Lion King at Mandalay Bay in May 2009.
Corporate expense decreased to $26 million compared to $53 million in the prior year quarter as a result of cost reduction efforts throughout the year. The Company continues to implement new cost saving programs to maximize its margins and cash flows.
MGM Grand Macau, which opened in December 2007, earned Property EBITDA of $17 million during the 2008 quarter and Property EBITDA of $119 million for the full year. The Company recognized its share of MGM Grand Macau's fourth quarter results as follows: $2 million of expense in the "Income from unconsolidated affiliates" line and $4 million of expense in "Non-operating items from unconsolidated affiliates."
Operating income decreased 60% on a comparable basis to the prior year quarter, excluding the non-cash goodwill and indefinite-lived intangible asset impairment charge in 2008, the CityCenter gain in 2007, property transactions, insurance recoveries, profits from The Signature at MGM Grand, and preopening and start-up expenses.
Property EBITDA of $327 million was also impacted by certain of the items discussed above and was down 41% on a comparable basis to the prior year quarter with a margin of 22% compared to 31%. The following table lists the items that impacted comparability of Property EBITDA (income/ (expense)):
Three months ended December 31, 2008 2007
(In thousands)
Profits from The Signature at MGM Grand $- $8,538
Preopening and start-up expenses (5,429) (37,603)
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
Other property transactions (21,213) (8,579)
Full Year 2008 Results
For the full year 2008, net revenues decreased 6% to $7.2 billion. The decrease in revenues was largely a result of decreases in market conditions discussed above which began earlier in the year and accelerated after the financial and credit market crisis in the fall of 2008. Las Vegas Strip REVPAR decreased 10% for the full year compared to 2007. Property EBITDA was $2 billion for the full year of 2008.
EPS from continuing operations for the full year was a loss of $3.06 per share versus income of $4.70 per share earned in 2007. 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, 2008 2007
Gain on contribution of CityCenter to a
joint venture $- $2.28
Preopening and start-up expenses (0.05) (0.24)
Profits from The Signature at MGM Grand - 0.20
Gains on repurchase of long-term debt 0.20 -
Business interruption (recorded as a
reduction of general and
administrative expenses) :
Hurricane Katrina - 0.15
Monte Carlo Fire 0.02 -
Property transactions net:
Goodwill and indefinite-lived intangible
assets impairment (4.20) -
Hurricane Katrina property damage income - 0.47
Monte Carlo fire property damage income 0.02 -
Other property transactions (0.09) (0.07)
Liquidity and Financial Position
During the fourth quarter of 2008, the following items were relevant to the Company's liquidity and financial position:
-- Issued $750 million of 13% senior secured notes due 2013 at a discount
to yield 15%, with net proceeds to the Company of $687 million.
-- Repurchased $345 million of face amount of outstanding senior notes at
a purchase price of $263 million. A substantial portion of the
repurchased notes were from the October 2009 and September 2010
maturities of senior notes.
-- Redeemed $149 million of senior subordinated notes assumed in the
Mandalay acquisition as a result of a one-time put option by the
bondholders.
-- Announced that the Company's 50% owned venture CityCenter closed on a
$1.8 billion senior secured bank credit facility. Under the terms of
the credit facility, at March 16, 2009 the Company and Dubai World
were each required to fund remaining construction costs of up to $494
million; such amounts may be reduced by any additional financing
obtained by CityCenter. In addition, the Company and Dubai World have
each provided partial completion guarantees up to $600 million.
-- Entered into an agreement to sell Treasure Island for $775 million, or
$755 million if the amount is paid in full by April 30, 2009; the sale
is expected to close by March 31, 2009.
-- In the fourth quarter of 2008 capital expenditures totaled
approximately $120 million.
At December 31, 2008, the Company had approximately $13.5 billion of total long-term debt. In late February 2009, the Company borrowed $842 million under its senior credit facility, which amount represented - after giving effect to $93 million in outstanding letters of credit - the total amount of unused borrowing capacity available under its $7.0 billion senior credit facility. In connection with the waiver and amendment discussed above, the Company repaid $300 million under the senior revolving credit facility, which amount is not available for re-borrowing without the consent of the lenders.
The Company was in compliance with its financial covenants under its senior credit facility at December 31, 2008. However, if the recent adverse conditions in the economy in general - and the gaming industry in particular - continue, the Company believes that it will not be in compliance with those financial covenants during 2009. In fact, given these conditions and the recent borrowing under its senior credit facility, the Company does not expect to be in compliance with these financial covenants at March 31, 2009. As a result, on March 17, 2009 the Company obtained an amendment to the senior credit facility, as discussed above, which included a waiver of the requirement to comply with such financial covenants through May 15, 2009. Following expiration of the waiver on May 15, 2009, the Company will be subject to an event of default related to the expected noncompliance with financial covenants under the senior credit facility at March 31, 2009.
The Company intends to work with its lenders to obtain additional waivers or amendments prior to that time to address future noncompliance with the senior credit facility; however, the Company provided no assurance that it will be able to secure such waivers or amendments. The lenders holding at least a majority of the principal amount under the Company's senior credit facility could, among other actions, accelerate the obligation to repay borrowings under our senior credit facility in such an event of default. As a result of such event of default, under certain circumstances, cross defaults could occur under the Company's indentures and the CityCenter $1.8 billion senior secured credit facility, which could accelerate the obligation to repay amounts outstanding under such indentures and the CityCenter credit facility and could result in termination of the unfunded commitments under the CityCenter credit facility. As a result of the conditions described above, the report of the Company's independent registered public accounting firm on the Company's consolidated financial statements for the year ended December 31, 2008 contains an explanatory paragraph with respect to the Company's ability to continue as a going concern. The Company has included additional information about its liquidity and financial position in its recently filed Form 10-K, including a detailed discussion of the impact of the matters described above.
"We view the recently executed waiver and amendment as a strong show of support by our long-term relationship banks," said Executive Vice President and Chief Financial Officer of MGM MIRAGE, Dan D'Arrigo. "We look forward to further dialog with our lenders as we consider all viable options to improve our capital structure, which may include asset dispositions, raising additional debt and/or equity capital, and modifying or extending our outstanding debt."
MGM MIRAGE will hold a conference call to discuss its fourth quarter earnings results at 6:00 p.m. Eastern Daylight Savings 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). Until March 24, 2009, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 89680497. A complete replay of the call will also be made available at 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 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. CityCenter, an unprecedented urban metropolis on the Las Vegas Strip scheduled to open in late 2009, is a joint venture between MGM MIRAGE and Infinity World Development Corp, a subsidiary of Dubai World. MGM MIRAGE Hospitality has entered into management agreements for future casino and non-casino resorts in the People's Republic of China, Abu Dhabi, U.A.E. and Vietnam. The Company has entered into an agreement to sell its Treasure Island property on the Las Vegas Strip. 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,
2008 2007 2008 2007
----------- ---------- ----------- -----------
Revenues:
Casino $ 703,702 $ 849,350 $ 2,975,680 $ 3,239,054
Rooms 406,771 515,636 1,907,093 2,130,542
Food and
beverage 353,322 402,869 1,582,367 1,651,655
Entertainment 137,769 142,331 546,310 560,909
Retail 58,993 73,218 261,053 296,148
Other 133,028 130,469 611,692 519,360
---------- ---------- ---------- ----------
1,793,585 2,113,873 7,884,195 8,397,668
Less: Promotional
allowances (169,073) (185,157) (675,428) (706,031)
---------- ---------- ---------- ----------
1,624,512 1,928,716 7,208,767 7,691,637
---------- ---------- ---------- ----------
Expenses:
Casino 417,966 429,240 1,618,914 1,646,883
Rooms 120,713 134,476 533,559 542,289
Food and beverage 210,515 238,241 930,716 947,475
Entertainment 96,205 94,698 384,822 395,611
Retail 40,789 47,601 168,859 187,386
Other 89,983 82,598 397,504 307,914
General and
administrative 307,485 295,942 1,278,501 1,251,952
Corporate expense 25,742 53,220 109,279 193,893
Preopening and
start-up
expenses 5,433 37,830 23,059 92,105
Restructuring
costs 114 - 443 -
Property
transactions,
net 1,175,765 (104,514) 1,210,749 (186,313)
Gain on
CityCenter
transaction - (1,029,660) - (1,029,660)
Depreciation
and
amortization 186,577 193,768 778,236 700,334
---------- ---------- ---------- ----------
2,677,287 473,440 7,434,641 5,049,869
---------- ---------- ---------- ----------
Income from
unconsolidated
affiliates 6,543 29,935 96,271 222,162
---------- ---------- ---------- ----------
Operating income
(loss) (1,046,232) 1,485,211 (129,603) 2,863,930
---------- ---------- ---------- ----------
Non-operating
income
(expense):
Interest income 3,464 4,274 16,520 17,210
Interest
expense, net (169,442) (160,870) (609,286) (708,343)
Non-operating
items from
unconsolidated
affiliates (7,828) (4,386) (34,559) (18,805)
Other, net 87,149 9,120 87,940 4,436
---------- ---------- ---------- ----------
(86,657) (151,862) (539,385) (705,502)
---------- ---------- ---------- ----------
Income (loss)
from
continuing
operations
before income
taxes (1,132,889) 1,333,349 (668,988) 2,158,428
Provision for
income
taxes (15,122) (462,575) (186,298) (757,883)
---------- ---------- ---------- ----------
Income (loss)
from
continuing
operations (1,148,011) 870,774 (855,286) 1,400,545
---------- ---------- ---------- ----------
Discontinued
operations:
Income from
discontinued
operations - - - 10,461
Gain on
disposal of
discontinued
operations - 1,932 - 265,813
Provision for
income
taxes - (495) - (92,400)
---------- ---------- ---------- ----------
- 1,437 - 183,874
---------- ---------- ---------- ----------
Net income (loss) $(1,148,011) $ 872,211 $ (855,286) $1,584,419
========== ========== ========== ==========
Per share of
common stock:
Basic:
Income (loss)
from
continuing
operations $ (4.15) $ 2.96 $ (3.06) $ 4.88
Discontinued
operations - - - 0.64
---------- ---------- ---------- ----------
Net income
(loss) per
share $ (4.15) $ 2.96 $ (3.06) $ 5.52
========== ========== ========== ==========
Weighted
average
shares
outstanding 276,505 294,545 279,815 286,809
========== ========== ========== ==========
Diluted:
Income (loss)
from
continuing
operations $ (4.15) $ 2.85 $ (3.06) $ 4.70
Discontinued
operations - - - 0.61
---------- ---------- ---------- ----------
Net income
(loss) per
share $ (4.15) $ 2.85 $ (3.06) $ 5.31
========== ========== ========== ==========
Weighted
average
shares
outstanding 276,505 305,989 279,815 298,284
========== ========== ========== ==========
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,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Las Vegas Strip $ 1,319,607 $ 1,608,565 $ 5,889,083 $ 6,473,793
Other Nevada 31,062 39,415 148,067 177,082
MGM Grand
Detroit 132,196 150,310 562,263 487,359
Mississippi 122,137 124,584 531,117 547,561
Other 19,510 5,842 78,237 5,842
----------- ----------- ----------- ------------
$ 1,624,512 $ 1,928,716 $ 7,208,767 $ 7,691,637
=========== =========== =========== ============
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,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Las Vegas Strip $ 280,450 $ 501,934 $ 1,641,688 $ 2,051,598
Other Nevada (929) 501 877 10,393
MGM Grand
Detroit 24,560 33,411 131,345 113,658
Mississippi 17,827 167,234 100,021 394,829
Other 3,079 1,040 16,894 1,040
Unconsolidated
resorts 1,838 2,283 76,374 181,123
----------- ----------- ----------- -----------
$ 326,825 $ 706,403 $ 1,967,199 $ 2,752,641
=========== =========== ============ ===========
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
(In thousands)
(Unaudited)
Three Months Ended December 31, 2008
------------------------------------
Preopening Property
and Restruct- trans-
start-up uring actions,
expenses costs net Total
---------- --------- ---------- ----------
Las Vegas Strip $ 424 $ - $ 12,353 $ 12,777
Other Nevada - - 511 511
MGM Grand Detroit - - 6,020 6,020
Mississippi - 114 2,329 2,443
Unconsolidated
resorts 5,005 - - 5,005
---------- --------- ---------- ----------
5,429 114 21,213 26,756
Corporate and other 4 - 1,154,552 1,154,556
---------- --------- ---------- ----------
$ 5,433 $ 114 $1,175,765 $1,181,312
========== ========= ========== ==========
Three Months Ended December 31, 2007
------------------------------------
Preopening Property
and Restruct- trans-
start-up uring actions,
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)
========== ========= ========== =========
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
(continued)
(In thousands)
(Unaudited)
Twelve Months Ended December 31, 2008
-------------------------------------
Preopening Property
and Restruct- trans-
start-up uring actions,
expenses costs net Total
---------- --------- ---------- ----------
Las Vegas Strip $ 2,538 $ 329 $ 13,279 $ 16,146
Other Nevada - - 2,718 2,718
MGM Grand Detroit 135 - 6,028 6,163
Mississippi - 114 2,402 2,516
Unconsolidated
resorts 20,281 - - 20,281
---------- --------- ---------- ----------
22,954 443 24,427 47,824
Corporate and other 105 - 1,186,322 1,186,427
---------- --------- ---------- ----------
$ 23,059 $ 443 $1,210,749 $1,234,251
========== ========= ========== ==========
Twelve Months Ended December 31, 2007
-------------------------------------
Preopening Property
and Restruct- trans-
start-up uring actions,
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)
========== ========= ========= =========
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME (LOSS)
FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
----------- ----------- ----------- -----------
EBITDA $ (859,655) $ 1,678,979 $ 648,633 $ 3,564,264
Depreciation
and
amortization (186,577) (193,768) (778,236) (700,334)
----------- ----------- ----------- -----------
Operating income
(loss) (1,046,232) 1,485,211 (129,603) 2,863,930
----------- ----------- ----------- -----------
Non-operating
income
(expense):
Interest
expense,
net (169,442) (160,870) (609,286) (708,343)
Other 82,785 9,008 69,901 2,841
----------- ----------- ----------- -----------
(86,657) (151,862) (539,385) (705,502)
----------- ----------- ----------- -----------
Income (loss)
from continuing
operations
before income
taxes (1,132,889) 1,333,349 (668,988) 2,158,428
Provision for
income taxes (15,122) (462,575) (186,298) (757,883)
----------- ----------- ----------- -----------
Income (loss)
from continuing
operations $(1,148,011) $ 870,774 $ (855,286) $ 1,400,545
----------- ----------- ----------- -----------
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended December 31, 2008
------------------------------------
Depreciation
Operating and
income (loss) amortization EBITDA
------------ ------------ ---------
Las Vegas Strip $ 141,459 $ 138,991 $ 280,450
Other Nevada (2,549) 1,620 (929)
MGM Grand Detroit 13,796 10,764 24,560
Mississippi 2,449 15,378 17,827
Other (594) 3,673 3,079
Unconsolidated
resorts 1,838 - 1,838
------------ ------------ ---------
156,399 170,426 326,825
Stock compensation (6,612)
Corporate and other (1,179,868)
---------
$(859,655)
=========
Three Months Ended December 31, 2007
------------------------------------
Depreciation
Operating and
income (loss) 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
==========
Twelve Months Ended December 31, 2008
-------------------------------------
Depreciation
Operating and
income (loss) amortization EBITDA
------------ ------------ ----------
Las Vegas Strip $ 1,058,694 $ 582,994 $1,641,688
Other Nevada (5,367) 6,244 877
MGM Grand Detroit 77,671 53,674 131,345
Mississippi 37,890 62,131 100,021
Other 6,609 10,285 16,894
Unconsolidated
resorts 76,374 - 76,374
------------ ------------ ----------
1,251,871 715,328 1,967,199
Stock compensation (36,277)
Corporate and other (1,282,289)
----------
$ 648,633
==========
Twelve Months Ended December 31, 2007
-------------------------------------
Depreciation
Operating and
income (loss) 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
==========
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
December 31, December 31,
2008 2007
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 295,644 $ 416,124
Accounts receivable, net 303,416 412,933
Inventories 111,505 126,941
Income tax receivable 64,685 -
Deferred income taxes 63,153 63,453
Prepaid expenses and other 155,652 106,364
Assets held for sale 538,975 -
----------- -----------
Total current assets 1,533,030 1,125,815
----------- -----------
Property and equipment, net 16,289,154 16,870,898
Other assets:
Investments in and advances to
unconsolidated affiliates 4,642,865 2,482,727
Goodwill 86,353 1,262,922
Other intangible assets, net 347,209 362,098
Deposits and other assets, net 376,105 623,226
----------- -----------
Total other assets 5,452,532 4,730,973
----------- -----------
$23,274,716 $22,727,686
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 142,693 $ 220,495
Construction payable 45,103 76,524
Income taxes payable - 284,075
Current portion of long-term
debt 1,047,614 -
Accrued interest on long-term
debt 187,597 211,228
Other accrued liabilities 1,549,296 932,365
Liabilities related to assets
held for sale 30,273 -
----------- -----------
Total current liabilities 3,002,576 1,724,687
----------- -----------
Deferred income taxes 3,441,198 3,416,660
Long-term debt 12,416,552 11,175,229
Other long-term obligations 440,029 350,407
Stockholders' equity:
Common stock, $.01 par value:
authorized 600,000,000 shares,
issued 369,283,995 and
368,395,926 shares and
outstanding
276,506,968 and 293,768,899
shares 3,693 3,684
Capital in excess of par value 4,018,410 3,951,162
Treasury stock, at cost:
92,777,027 and 74,627,027
shares (3,355,963) (2,115,107)
Retained earnings 3,365,122 4,220,408
Accumulated other comprehensive
income (loss) (56,901) 556
----------- -----------
Total stockholders' equity 3,974,361 6,060,703
----------- -----------
$23,274,716 $22,727,686
=========== ===========
First Call Analyst:
FCMN Contact: mcheldelin@mgmmirage.com
SOURCE: MGM MIRAGE
CONTACT: Investment Community, Daniel J. D'Arrigo, Executive Vice
President, Chief Financial Officer, +1-702-693-8895; News Media, Alan M.
Feldman, Senior Vice President, Public Affairs, +1-702-650-6947
Web Site: http://www.mgmmirage.com/