MGM MIRAGE (NYSE: MGM) today announced its financial results for the fourth quarter of 2009. The Company reported a fourth quarter diluted loss per share of $0.98, which includes the impact of a pre-tax non-cash impairment charge totaling $548 million, or $0.73 loss per diluted share net of tax, related to the Company's undeveloped land holdings in Atlantic City. For the same quarter in 2008, the Company reported a diluted loss per share of $4.15, which included a non-cash goodwill and indefinite-lived intangible asset impairment charge of $1.2 billion, or $4.25 per diluted share net of tax, and a gain on repurchased debt of $87 million or $0.21 per diluted share net of tax.
The following table lists items which affect the comparability of the current and prior year quarterly results (EPS impact, net of tax, per diluted share; negative amounts represent charges to income):
Three months ended December 31, 2009 2008
-------------------------------------------------------------------------Preopening and start-up expenses $ (0.04) $ (0.01)
Gains on repurchase of long-term debt - 0.21
Property transactions net:
Atlantic City non-cash impairment charge (0.73) -
Goodwill and indefinite-lived intangible
assets impairment - (4.25)
Other property transactions, net - 0.01
The following key results for the quarter are presented on a "same store" basis excluding the results of Treasure Island casino resort ("TI") in the prior year as the Company completed the sale of TI in March 2009:
-- Net revenue decreased 6% to $1.5 billion, compared to a 9%
year-over-year decrease in the third quarter of 2009;
-- Casino revenue decreased 7%, partially offset by strong baccarat
results during the quarter with baccarat volume up 44%;
-- Las Vegas Strip REVPAR(1) decreased 16% compared to the prior year
quarter versus a 23% year-over-year decrease in the third quarter of
2009; and
-- Adjusted Property EBITDA(2) was $307 million, or down 8%.
Other key results include:
-- MGM Grand Macau earned operating income of $22 million and had
depreciation expense of $24 million during the fourth quarter of 2009,
compared to an operating loss of $2 million and depreciation expense
of $19 million in the same quarter in 2008.
-- CityCenter opened in December 2009. Aria, the centerpiece casino
resort, earned operating income of $7 million in 15 days of
operations, with depreciation and amortization of $9 million.
"This has been a challenging but momentous year for MGM MIRAGE culminating with the opening of CityCenter in December," said Jim Murren, MGM MIRAGE Chairman and Chief Executive Officer. "We generated significant cash flows and kept our buildings occupied at 90% even in a brutal economy because we are equipped with the highest quality resorts, the preeminent brands, and the finest employees in the industry. We have profoundly improved our cost structure and are actively building revenue to maximize operating leverage as the economy shifts into recovery mode. Our forward convention booking pace accelerated again in the fourth quarter with over 440,000 future room nights booked. We are keenly focused on strengthening our financial foundation and made historic progress last year."
Detailed Discussion of Fourth Quarter Operating Results
(Results are presented on a same store basis excluding TI)
Casino revenue declined 7%, with table games revenue down 7% and slots revenue down 6%. The Company's table games volume was up 2% in the quarter, including a 44% increase in baccarat volume. The overall table games hold percentage was near the mid-point of the Company's normal 18% to 22% range in both the current and prior year.
Rooms revenue decreased 14% while Las Vegas Strip REVPAR decreased 16%. Anticipated weakness in convention traffic led to lower room rates; however, increased leisure and casino business allowed the Company to maintain occupancy in line with prior periods. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:
Three months ended Decemeber 31, 2009 2008
-------------------------------------------------------------------
Occupancy % 86% 85%
Average Daily Rate (ADR) $ 111 $ 135
Revenue per Available Room (REVPAR) $ 95 $ 114
Corporate expense increased to $44 million compared to $26 million in the 2008 fourth quarter. The current quarter includes increased financial advisory and legal costs and severance accruals.
Income from unconsolidated affiliates increased to $25 million from $7 million in the prior year fourth quarter, primarily as a result of continued year-over-year improvement in operating results at MGM Grand Macau. MGM Grand Macau earned operating income of $22 million during the fourth quarter compared to an operating loss of $2 million for the same quarter in the prior year. Included in income from unconsolidated affiliates is a $2 million loss related to the Company's share of CityCenter's consolidated operating results in the fourth quarter 2009 compared to a $9 million loss for the same quarter in 2008.
Operating loss for the fourth quarter was $487 million, which included the Atlantic City land impairment charge recorded during the quarter. Adjusted Property EBITDA was $307 million, down 8% excluding results for TI from the prior year fourth quarter, with a margin of 21% in the current year quarter compared to 22% in the prior year fourth quarter. Adjusted EBITDA was $256 million, down 15% from the 2008 fourth quarter excluding results for TI.
Non-operating expense increased to $233 million in the fourth quarter of 2009 primarily due to higher interest costs associated with the Company's fixed rate senior note issuances in the fourth quarter of 2008 and during 2009 and higher interest rates on the Company's senior credit facility. In addition, the prior year fourth quarter included a gain on repurchase of long-term debt of $87 million.
Full Year 2009 Results
(Results are presented on a same store basis excluding TI, except per share data)
For the full year 2009, net revenues decreased 13% to $5.9 billion. Las Vegas Strip REVPAR decreased 25% for the full year compared to 2008, with quarter-over-quarter percentage decreases in REVPAR improving sequentially throughout the year. Adjusted Property EBITDA was $1.3 billion for the full year of 2009.
EPS from continuing operations for the full year was a loss of $3.41 per diluted share compared to a loss of $3.06 per diluted share in 2008. 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, 2009 2008
--------------------------------------------------------------------
Monte Carlo business interruption (recorded
as a reduction of general and administrative
expenses) 0.03 0.02
Preopening and start-up expenses (0.09) (0.05)
Property transactions net:
Goodwill and indefinite-lived intangible
assets impairment - (4.20)
Atlantic City Renaissance Pointe land
holdings impairment (0.85) -
Gain on Sale of TI 0.31 -
Investment in CityCenter non-cash impairment
charge (1.63) -
Monte Carlo fire property damage income 0.01 0.02
Other property transactions (0.03) (0.09)
Income (loss) from unconsolidated affiliates:
CityCenter joint venture residential non-cash
impairment charge (0.35) -
Borgata joint venture insurance proceeds 0.02 -
North Las Vegas Strip joint venture impairment
charge (0.02) -
Other, net:
Convertible note impairment charge (0.30) -
(Loss) gain on repurchase of long-term debt (0.11) 0.20
CityCenter
The Company and its joint venture partner, Infinity World, opened CityCenter in December 2009. CityCenter has forever changed the Las Vegas Strip and has been awarded six LEED® Gold certifications by the U.S. Green Building Council and is one of the world's largest green developments. Aria, the centerpiece casino resort, opened as scheduled on December 16. Vdara, a 1,495-unit luxury condominium-hotel tower, Mandarin Oriental, a 400-room boutique hotel, and Crystals retail district opened in early December. Aria earned operating income of $7 million in 15 days of operations, with depreciation and amortization of $9 million.
"MGM MIRAGE Design Group delivered CityCenter on time for its scheduled opening in December 2009. I am proud of the thousands of men and women that made CityCenter a reality for all to enjoy," said Bobby Baldwin, MGM MIRAGE Chief Construction and Design Officer and President of CityCenter.
Based on recent estimates of the final construction costs for CityCenter, the Company has accrued $150 million under its completion guarantee with the joint venture. This is the low end of management's estimated range for the Company's net obligation under the completion guarantee. The Company estimates the high end of such range is approximately $300 million and can provide no assurance that the final requirement will not increase such net obligation above this amount.
"The Company has instituted a comprehensive close-out plan for all of CityCenter; we fully expect a timely and successful close-out of this project and will remain focused on minimizing amounts due under the completion guarantee," said Bobby Baldwin.
Financial Position
In late December 2009, the Company borrowed the remaining availability under its senior credit facility of $1.6 billion in order to increase its capacity for issuing additional senior secured notes under its existing senior secured notes indentures, which resulted in a higher than normal cash balance at year end of $2.1 billion. The Company repaid such amounts immediately after year-end. The Company's outstanding debt balance (net of the $1.6 billion of excess cash) was $12.5 billion at December 31, 2009, down from $13.5 billion at December 31, 2008.
As previously announced, the Company is seeking amendments to its aggregate $5.55 billion of senior credit facilities which would, among other things, extend the maturity of a substantial portion of those credit facilities from October 3, 2011 to February 21, 2014. The Company has asked its lenders to provide their final approvals of the transaction by February 24, 2010.
"Extending our credit facility will provide us with significant flexibility to continue to work on de-leveraging our balance sheet," said Dan D'Arrigo, MGM MIRAGE Executive Vice President and Chief Financial Officer. "We appreciate the strong initial support from our group of lenders who have consistently been our partners. We believe this amendment to our credit facility will provide a platform for long-term capital stability and reinforces our dedication to improving our finances."
MGM MIRAGE will hold a conference call to discuss its fourth quarter results at 11:00 a.m. Eastern Standard 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 1-706-758-3659 (international). Until Thursday, February 25, 2010, a complete replay of the conference call can be accessed by dialing 1-800-642-1687 or 1-706-645-9291, access code 55603540. A complete replay of the call will also be made available at www.mgmmirage.com.
(1) REVPAR is hotel Revenue per Available Room.
(2) "Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, and property transactions, net. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.
Management believes that while items excluded from Adjusted EBITDA and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, pre-opening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and dependent on where the current period lies within the development cycle as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within our resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period.
In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance.
Adjusted EBITDA or Adjusted Property 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 net income as an indicator of the Company's performance; 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 Adjusted EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA information may calculate Adjusted EBITDA in a different manner than the Company. Reconciliations of Adjusted EBITDA to net income (loss) and of operating income to Adjusted 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 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in five other properties in Nevada, New Jersey, Illinois and Macau. One of those investments - CityCenter - is also managed by MGM MIRAGE. CityCenter, an unprecedented urban metropolis on the Las Vegas Strip with Gold and Silver LEED® certifications, is a joint venture between MGM MIRAGE and Infinity World Development Corp, a subsidiary of Dubai World. CityCenter features ARIA Resort & Casino, Vdara Hotel & Spa, Mandarin Oriental, Las Vegas; Veer Towers, and Crystals retail and entertainment district. MGM MIRAGE Hospitality has entered into management agreements for casino and non-casino resorts throughout the world. 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 Web site 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,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Revenues:
Casino $ 627,957 $ 703,702 $ 2,618,060 $ 2,975,680
Rooms 324,631 406,771 1,370,135 1,907,093
Food and beverage 321,785 353,322 1,362,325 1,582,367
Entertainment 123,801 137,769 493,799 546,310
Retail 50,475 58,993 207,260 261,053
Other 173,455 133,028 592,703 611,692
------------ ------------ ------------ ------------
1,622,104 1,793,585 6,644,282 7,884,195
Less: Promotional
allowances (169,688) (169,073) (665,693) (675,428)
------------ ------------ ------------ ------------
1,452,416 1,624,512 5,978,589 7,208,767
------------ ------------ ------------ ------------
Expenses:
Casino 366,876 417,966 1,459,944 1,618,914
Rooms 101,922 120,713 427,169 533,559
Food and beverage 184,881 210,515 775,018 930,716
Entertainment 90,240 96,205 358,026 384,822
Retail 35,091 40,789 134,851 168,859
Other 123,736 89,983 384,298 397,504
General and
administrative 274,570 307,599 1,100,193 1,278,944
Corporate expense 44,469 25,742 143,764 109,279
Preopening and
start-up
expenses 25,474 5,433 53,013 23,059
Property
transactions,
net 549,358 1,175,765 1,328,689 1,210,749
Depreciation and
amortization 167,396 186,577 689,273 778,236
------------ ------------ ------------ ------------
1,964,013 2,677,287 6,854,238 7,434,641
------------ ------------ ------------ ------------
Income (loss) from
unconsolidated
affiliates 24,942 6,543 (88,227) 96,271
------------ ------------ ------------ ------------
Operating loss (486,655) (1,046,232) (963,876) (129,603)
------------ ------------ ------------ ------------
Non-operating
income (expense):
Interest income 769 3,464 12,304 16,520
Interest expense,
net (220,609) (169,442) (775,431) (609,286)
Non-operating
items from
unconsolidated
affiliates (9,069) (7,828) (47,127) (34,559)
Other, net (3,770) 87,149 (238,463) 87,940
------------ ------------ ------------ ------------
(232,679) (86,657) (1,048,717) (539,385)
------------ ------------ ------------ ------------
Loss before
income taxes (719,334) (1,132,889) (2,012,593) (668,988)
Benefit
(provision)
for income
taxes 285,416 (15,122) 720,911 (186,298)
------------ ------------ ------------ ------------
Net loss $ (433,918) $ (1,148,011) $ (1,291,682) $ (855,286)
============ ============ ============ ============
Per share of
common stock:
Basic:
Net loss per
share $ (0.98) $ (4.15) $ (3.41) $ (3.06)
============ ============ ============ ============
Weighted average
shares
outstanding 441,238 276,505 378,513 279,815
============ ============ ============ ============
Diluted:
Net loss per
share $ (0.98) $ (4.15) $ (3.41) $ (3.06)
============ ============ ============ ============
Weighted average
shares
outstanding 441,238 276,505 378,513 279,815
============ ============ ============ ============
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,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Bellagio $ 269,712 $ 291,665 $ 1,064,729 $ 1,266,252
MGM Grand
Las Vegas 239,153 256,925 976,261 1,114,824
Mandalay Bay 171,418 192,387 725,129 900,306
The Mirage 140,780 149,508 624,132 720,682
Luxor 81,684 100,435 344,722 405,277
Treasure
Island (1) - 87,747 66,329 376,000
New York
-New York 58,446 66,449 250,055 300,861
Excalibur 61,132 66,606 265,076 319,609
Monte Carlo 53,154 56,965 206,377 235,933
Circus Circus
Las Vegas 44,617 50,920 200,385 249,339
MGM Grand
Detroit 124,751 132,196 514,116 562,263
Beau Rivage 78,003 85,567 329,613 375,588
Gold Strike
Tunica 35,051 36,570 153,108 155,529
Management
operations 66,301 19,510 135,498 78,237
Other
operations 28,214 31,062 123,059 148,067
------------ ------------ ------------ ------------
$ 1,452,416 $ 1,624,512 $ 5,978,589 $ 7,208,767
============ ============ ============ ============
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Bellagio $ 68,336 $ 77,183 $ 274,672 $ 392,300
MGM Grand
Las Vegas 46,329 46,208 214,369 270,792
Mandalay Bay 31,805 44,053 159,864 248,495
The Mirage 24,507 19,549 141,118 168,351
Luxor 16,370 28,635 76,167 132,173
Treasure
Island (1) - 20,693 12,729 103,011
New York
-New York 16,968 20,260 78,555 111,459
Excalibur 14,990 19,676 72,130 110,149
Monte Carlo 4,422 9,443 36,594 64,624
Circus Circus
Las Vegas 2,261 7,527 27,122 56,151
MGM Grand
Detroit 31,112 30,580 138,010 137,508
Beau Rivage 12,517 14,651 65,422 71,023
Gold Strike
Tunica 8,086 5,505 45,051 31,400
Management
operations 5,064 3,079 18,322 16,894
Other
operations (1,653) (418) 1,759 3,595
Unconsolidated
resorts 25,511 6,843 (87,072) 96,655
------------ ------------ ------------ ------------
$ 306,625 $ 353,467 $ 1,274,812 $ 2,014,580
============ ============ ============ ============
(1) Treasure Island was sold in March 2009.
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended December 31, 2009
--------------------------------------------------------------
Preopening
Operating and Property Depreciation
income start-up transactions, and Adjusted
(loss) expenses net amortization EBITDA
----------- ---------- ------------- ------------ ----------
Bellagio $ 41,154 $ - $ (34) $ 27,216 $ 68,336
MGM Grand
Las Vegas 24,356 - (51) 22,024 46,329
Mandalay Bay 8,887 51 (3) 22,870 31,805
The Mirage 8,598 - - 15,909 24,507
Luxor 7,227 - (78) 9,221 16,370
Treasure
Island (1) - - - - -
New York
-New York 9,896 - - 7,072 16,968
Excalibur 8,430 - (4) 6,564 14,990
Monte Carlo (2,082) - (3) 6,507 4,422
Circus Circus
Las Vegas (3,398) - 26 5,633 2,261
MGM Grand
Detroit 19,525 - 1,430 10,157 31,112
Beau Rivage 95 - - 12,422 12,517
Gold Strike
Tunica 4,374 - (209) 3,921 8,086
Management
operations 2,586 - - 2,478 5,064
Other
operations (3,041) - (63) 1,451 (1,653)
Unconsolidated
resorts 88 25,423 - - 25,511
----------- ---------- ------------- ------------ ----------
126,695 25,474 1,011 153,445 306,625
Stock
compensation (9,495) - - - (9,495)
Corporate (603,855) - 548,347 13,951 (41,557)
----------- ---------- ------------- ------------ ----------
$ (486,655) $ 25,474 $ 549,358 $ 167,396 $ 255,573
=========== ========== ============= ============ ==========
Three Months Ended December 31, 2008
--------------------------------------------------------------
Preopening
Operating and Property Depreciation
income start-up transactions, and Adjusted
(loss) expenses net amortization EBITDA
----------- ---------- ------------- ------------ ----------
Bellagio $ 47,380 $ - $ (81) $ 29,884 $ 77,183
MGM Grand
Las Vegas 19,181 - 2,792 24,235 46,208
Mandalay Bay 18,694 11 167 25,181 44,053
The Mirage (1,115) - 4,272 16,392 19,549
Luxor 18,012 339 249 10,035 28,635
Treasure
Island (1) 12,984 - 341 7,368 20,693
New York
-New York 10,353 74 2,224 7,609 20,260
Excalibur 12,149 - 960 6,567 19,676
Monte Carlo 2,104 - 1,469 5,870 9,443
Circus Circus
Las Vegas 1,717 - (40) 5,850 7,527
MGM Grand
Detroit 13,796 - 6,020 10,764 30,580
Beau Rivage 2,548 - - 12,103 14,651
Gold Strike
Tunica (99) - 2,329 3,275 5,505
Management
operations (594) - - 3,673 3,079
Other
operations (2,549) - 511 1,620 (418)
Unconsolidated
resorts 1,838 5,005 - - 6,843
----------- ---------- ------------- ------------ ----------
156,399 5,429 21,213 170,426 353,467
Stock
compensation (6,612) - - - (6,612)
Corporate (1,196,019) 4 1,154,552 16,151 (25,312)
----------- ---------- ------------- ------------ ----------
$(1,046,232) $ 5,433 $ 1,175,765 $ 186,577 $ 321,543
=========== ========== ============= ============ ==========
(1) Treasure Island was sold in March 2009.
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Twelve Months Ended December 31, 2009
--------------------------------------------------------------
Preopening
Operating and Property Depreciation
income start-up transactions, and Adjusted
(loss) expenses net amortization EBITDA
----------- ---------- ------------- ------------ ----------
Bellagio $ 157,079 $ - $ 2,326 $ 115,267 $ 274,672
MGM Grand
Las Vegas 123,378 - 30 90,961 214,369
Mandalay Bay 65,841 948 (73) 93,148 159,864
The Mirage 74,756 - 313 66,049 141,118
Luxor 37,527 (759) 181 39,218 76,167
Treasure
Island (1) 12,730 - (1) - 12,729
New York
-New York 45,445 - 1,631 31,479 78,555
Excalibur 47,973 - (16) 24,173 72,130
Monte Carlo 16,439 - (4,740) 24,895 36,594
Circus Circus
Las Vegas 4,015 - (9) 23,116 27,122
MGM Grand
Detroit 90,183 - 7,336 40,491 138,010
Beau Rivage 16,234 - 157 49,031 65,422
Gold Strike
Tunica 29,010 - (209) 16,250 45,051
Management
operations 7,285 - 2,473 8,564 18,322
Other
operations (4,172) - (57) 5,988 1,759
Unconsolidated
resorts (139,896) 52,824 - - (87,072)
----------- ---------- ------------- ------------ ----------
583,827 53,013 9,342 628,630 1,274,812
Stock
compensation (36,571) - - - (36,571)
Corporate (1,511,132) - 1,319,347 60,643 (131,142)
----------- ---------- ------------- ------------ ----------
$ (963,876) $ 53,013 $ 1,328,689 $ 689,273 $1,107,099
=========== ========== ============= ============ ==========
Twelve Months Ended December 31, 2008
--------------------------------------------------------------
Preopening
Operating and Property Depreciation
income start-up transactions, and Adjusted
(loss) expenses net amortization EBITDA
----------- ---------- ------------- ------------ ----------
Bellagio $ 257,415 $ - $ 1,130 $ 133,755 $ 392,300
MGM Grand
Las Vegas 170,049 443 2,639 97,661 270,792
Mandalay Bay 145,005 11 1,554 101,925 248,495
The Mirage 99,061 242 6,080 62,968 168,351
Luxor 84,948 1,116 2,999 43,110 132,173
Treasure
Island (1) 63,454 - 1,828 37,729 103,011
New York
-New York 74,276 726 3,627 32,830 111,459
Excalibur 83,953 - 961 25,235 110,149
Monte Carlo 46,788 - (7,544) 25,380 64,624
Circus Circus
Las Vegas 33,745 - 5 22,401 56,151
MGM Grand
Detroit 77,671 135 6,028 53,674 137,508
Beau Rivage 22,797 - 76 48,150 71,023
Gold Strike
Tunica 15,093 - 2,326 13,981 31,400
Management
operations 6,609 - - 10,285 16,894
Other
operations (5,367) - 2,718 6,244 3,595
Unconsolidated
resorts 76,374 20,281 - - 96,655
----------- ---------- ------------- ------------ ----------
1,251,871 22,954 24,427 715,328 2,014,580
Stock
compensation (36,277) - - - (36,277)
Corporate (1,345,197) 105 1,186,322 62,908 (95,862)
----------- ---------- ------------- ------------ ----------
$ (129,603) $ 23,059 $ 1,210,749 $ 778,236 $1,882,441
=========== ========== ============= ============ ==========
(1) Treasure Island was sold in March 2009.
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Adjusted EBITDA $ 255,573 $ 321,543 $ 1,107,099 $ 1,882,441
Preopening and
start-up
expenses (25,474) (5,433) (53,013) (23,059)
Property
transactions,
net (549,358) (1,175,765) (1,328,689) (1,210,749)
Depreciation and
amortization (167,396) (186,577) (689,273) (778,236)
------------ ------------ ------------ ------------
Operating loss (486,655) (1,046,232) (963,876) (129,603)
------------ ------------ ------------ ------------
Non-operating
income (expense):
Interest expense,
net (220,609) (169,442) (775,431) (609,286)
Other (12,070) 82,785 (273,286) 69,901
------------ ------------ ------------ ------------
(232,679) (86,657) (1,048,717) (539,385)
------------ ------------ ------------ ------------
Loss before
income taxes (719,334) (1,132,889) (2,012,593) (668,988)
Benefit
(provision)
for income
taxes 285,416 (15,122) 720,911 (186,298)
------------ ------------ ------------ ------------
Net loss $ (433,918) $ (1,148,011) $ (1,291,682) $ (855,286)
============ ============ ============ ============
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Bellagio
Occupancy % 91.9% 93.0% 94.2% 95.0%
Average daily
rate (ADR) $206 $243 $204 $261
Revenue per
available room
(REVPAR) $189 $226 $192 $248
MGM Grand Las Vegas
Occupancy % 89.8% 89.4% 94.2% 95.5%
ADR $112 $131 $113 $147
REVPAR $101 $117 $106 $141
Mandalay Bay
Occupancy % 85.5% 79.2% 89.1% 90.2%
ADR $153 $199 $159 $214
REVPAR $131 $158 $142 $193
The Mirage
Occupancy % 89.5% 91.9% 93.6% 95.8%
ADR $125 $145 $126 $163
REVPAR $112 $133 $118 $156
Luxor
Occupancy % 84.3% 85.4% 89.8% 94.6%
ADR $80 $103 $80 $116
REVPAR $67 $88 $72 $110
New York
-New York
Occupancy % 90.8% 91.6% 93.2% 95.9%
ADR $98 $114 $97 $128
REVPAR $89 $104 $90 $123
Excalibur
Occupancy % 81.2% 76.9% 87.4% 87.9%
ADR $61 $80 $61 $90
REVPAR $50 $61 $54 $79
Monte Carlo
Occupancy % 83.5% 89.1% 90.0% 93.9%
ADR $87 $96 $85 $109
REVPAR $73 $85 $76 $103
Circus Circus
Las Vegas
Occupancy % 76.3% 71.6% 83.2% 84.0%
ADR $44 $59 $44 $64
REVPAR $34 $42 $37 $53
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
December 31, December 31,
2009 2008
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 2,056,207 $ 295,644
Accounts receivable, net 368,474 303,416
Inventories 101,809 111,505
Income tax receivable 384,555 64,685
Deferred income taxes 38,487 63,153
Prepaid expenses and other 103,969 155,652
Assets held for sale - 538,975
------------ ------------
Total current assets 3,053,501 1,533,030
------------ ------------
Property and equipment, net 15,069,952 16,289,154
Other assets:
Investments in and advances
to unconsolidated affiliates 3,611,799 4,642,865
Goodwill 86,353 86,353
Other intangible assets, net 344,253 347,209
Deposits and other assets, net 352,352 376,105
------------ ------------
Total other assets 4,394,757 5,452,532
------------ ------------
$ 22,518,210 $ 23,274,716
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 155,796 $ 142,693
Construction payable 17,923 45,103
Current portion of long-term debt 1,079,824 1,047,614
Accrued interest on long-term debt 206,357 187,597
Other accrued liabilities 923,701 1,549,296
Liabilities related to assets
held for sale - 30,273
------------ ------------
Total current liabilities 2,383,601 3,002,576
------------ ------------
Deferred income taxes 3,031,303 3,441,198
Long-term debt 12,976,037 12,416,552
Other long-term obligations 256,837 440,029
Stockholders' equity:
Common stock, $.01 par value:
authorized 600,000,000 shares,
issued 441,222,251 and
369,283,995 shares and outstanding
441,222,251 and 276,506,968 shares 4,412 3,693
Capital in excess of par value 3,497,425 4,018,410
Treasury stock, at cost: 0 and
92,777,027 shares - (3,355,963)
Retained earnings 370,532 3,365,122
Accumulated other comprehensive
loss (1,937) (56,901)
------------ ------------
Total stockholders' equity 3,870,432 3,974,361
------------ ------------
$ 22,518,210 $ 23,274,716
============ ============
First Call Analyst:
FCMN Contact: dfoley@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 of Public Affairs, +1-702-650-6947, both of MGM
MIRAGE
Web Site: http://www.mgmmirage.com/