MGM MIRAGE Reports Fourth Quarter and Full Year Results

February 01, 2005
Record Performances at Flagship Resorts Drive Company's Most Profitable Year Ever
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGG) today reported record fourth quarter and full year financial results for 2004. Adjusted earnings per diluted share ("Adjusted EPS") rose 42% to $0.51 in the fourth quarter of 2004 from $0.36 in the 2003 quarter, representing the Company's best fourth quarter performance in its history. For the full year, the Company earned $2.52 in Adjusted EPS compared to $1.52 in 2003, with record operating performance for the year at several resorts, including Bellagio, MGM Grand Las Vegas and Beau Rivage.

Fourth quarter business trends were consistent with those experienced throughout 2004, with strong customer spending and significant increases in room rates. The Company has been adding upscale amenities across its resort portfolio, attracting more guests and capturing increased share of customer spending. Casino revenue increased 10%, with continued strength in slot revenues, up 9%, and extremely strong table games revenues, up 12%. REVPAR (revenue per available room) increased 13% at the Company's Las Vegas resorts in the 2004 fourth quarter, on top of a 5% year-over-year increase in the 2003 fourth quarter.

Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, net property transactions, tax adjustments and loss on early retirement of debt(1). On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations decreased to $0.47 for the fourth quarter of 2004 from $0.58 in the 2003 quarter, due to one-time items in the prior year including the gain on sale of land in North Las Vegas ($0.16 per share) and the reversal of tax reserves ($0.09 per share). GAAP diluted EPS, including the results of discontinued operations, was $0.47 in the 2004 quarter versus $0.62 in 2003. Full year GAAP diluted EPS in 2004 was $2.37 from continuing operations versus $1.52 in 2003 and $2.80 on a net basis (including discontinued operations), versus $1.61 in 2003.

"The fourth quarter of 2004 provides an exclamation point on a tremendous year for all of us at MGM MIRAGE," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We have again proven our ability to operate the world's best resorts, and have demonstrated vision to look to the future. In 2005, we will successfully integrate Mandalay Resort Group's properties and employees, and begin executing on the vision of Project CityCenter."

                    Fourth Quarter Company Highlights

   * Generated net revenues of $1.06 billion in the fourth quarter, up 11%
     over 2003;
   * Reported company-wide REVPAR of $120 in the fourth quarter, up 12% over
     prior year's quarter;
   * Earned record property-level EBITDA(2) of $354 million in the fourth
     quarter, up 20% over the 2003 quarter;
   * Generated operating income of $213 million, up 23% compared to the 2003
     quarter, after excluding the prior year $37 million gain on sale of
     land;
   * Produced a company-wide property-level EBITDA margin of 33% in the
     fourth quarter compared to 31% in the prior year;
   * Announced Project CityCenter, a multi-billion dollar urban
     master-planned development on the Las Vegas Strip, with a first phase
     featuring a 4,000-room casino resort, three 400-room boutique hotels,
     550,000 square feet of retail, dining and entertainment venues, and
     1,650 units of luxury condominium, hotel/condominium and private
     residence clubs;
   * Launched the $375 million Bellagio expansion, consisting of the
     928-room Spa Tower, Sensi, a dramatic new restaurant opening to rave
     reviews, a significantly expanded and upgraded spa and salon, and
     additional retail outlets and meeting space;
   * Debuted KA, the most recent spectacular show by Cirque du Soleil at MGM
     Grand Las Vegas.  KA is presented in a custom-designed theatre seating
     almost 2,000 guests;
   * Opened the SKYLOFTS at MGM Grand Las Vegas, featuring the ultimate in
     personal service for discerning guests in two-floor suites with the
     finest guest amenities and panoramic views of the Las Vegas Strip;
   * Named to the Forbes magazine list of "Best Managed Companies in
     America," rated as the best managed company in the "Hotels, restaurants
     and leisure category."

                       Full Year Company Highlights

   * Generated record full year net revenues of $4.2 billion, a 10% increase
     over 2003;
   * Produced record property-level EBITDA of $1.46 billion, an increase of
     23% over 2003, while operating income was $951 million, an increase of
     36%, with record results at Bellagio, MGM Grand Las Vegas and Beau
     Rivage;
   * Announced the merger with Mandalay Resort Group, expected to close in
     the first quarter of 2005 after receipt of regulatory approvals,
     thereby adding to the Company's premier portfolio of resorts.
     Financing is already in place for the acquisition with the issuance of
     $1 billion of fixed rate debt at attractive interest rates and an
     increase in the Company's bank credit facility to $7 billion;
   * Announced a joint venture agreement with Pansy Ho Chiu-king to develop,
     build and operate a major hotel-casino resort in Macau S.A.R.;
   * Invested $680 million of capital in the Company's resorts, repurchased
     8 million shares of common stock for $349 million, repaid $72 million
     of net debt and closed on the sales of the Golden Nugget Las Vegas,
     Golden Nugget Laughlin and MGM Grand Australia.

                        Detailed Financial Results

The following table shows key financial results on a Company-wide basis for the fourth quarter and the full year.

                             Three months ended          Year ended
                                December 31,             December 31,
                             2004         2003         2004        2003
                                            (In millions)
   Casino revenue, net      $572.6       $518.4     $2,224.0     $2,037.5
   Non-casino revenue, net   490.1        441.5      2,014.1      1,825.2
   Net revenue             1,062.7        959.9      4,238.1      3,862.7
   Operating income          213.2        210.1        950.9        699.7
   Income from continuing
    operations                67.9         85.7        342.9        230.3
   Discontinued operations,
    net                         --          6.0         62.5         13.4
   Net income                 67.9         91.7        405.4        243.7

   Property-level EBITDA    $353.8       $295.6     $1,455.9     $1,179.0
   EBITDA (after corporate
    expense)                 329.2        278.3      1,378.0      1,117.4
   Adjusted Earnings          74.3         53.1        364.1        230.0



Except where noted, all references in this release to operating results, including statistical information, exclude the results of Golden Nugget Las Vegas, Golden Nugget Laughlin, MGM Grand Australia and MGM MIRAGE Online for all periods presented. The results of these operations are classified as discontinued operations.

The 11% increase in net revenue in the fourth quarter was representative of revenue gains in all of the Company's operations with strong casino and hotel volumes driven by ongoing investments in new amenities, continued increases in room rates and higher spending by customers throughout the Company's resorts. Casino revenue increased 10% in the 2004 quarter. Table games volume increased a significant 14%, with particular strength in baccarat volume, up 40%. The Company's table games hold percentage was near the mid- point of the Company's normal range in both the current and prior year quarters. Company-wide slot revenue in the quarter was up 9% from 2003. Several resorts experienced double-digit increases in slot revenues, including Bellagio, New York-New York, The Mirage, TI and Beau Rivage.

Non-casino revenue was up 11% in the quarter. Hotel revenue was up 10%, with a higher occupancy rate of 90% in the fourth quarter of 2004 versus 88% in 2003, and a higher average daily room rate ("ADR") of $134 versus $122 in 2003. As a result, REVPAR was $120, an increase of 12% over 2003. REVPAR at the Company's Las Vegas resorts was up 13% over the prior year to $141.

Food and beverage, entertainment, retail and other revenues were up 11% in the 2004 quarter. KA opened in late November, generating a portion of the increase in non-gaming revenues. Additionally, the Company has opened several new restaurant and entertainment venues in the past year.

Consolidated EBITDA increased 18% for the quarter, reflecting the strong revenue results and operating leverage inherent with strong customer volumes and higher hotel room rates. The property-level EBITDA margin was 33% in the 2004 quarter, up from 31% in the prior year's quarter and the Company's highest fourth quarter margin since the 2000 merger of MGM Grand, Inc. and Mirage Resorts. Additionally, the Company benefited from the increased contribution of Borgata. Operating income only increased 1% due to the prior year gain on sale of land of $37 million; excluding that gain, operating income was up 23%.

Fourth quarter Adjusted Earnings increased 40% compared to 2003 due to the strong operating results described above. Net interest expense increased due to slightly higher variable market interest rates and the issuance of fixed rate debt in the third quarter of 2004.

For the fourth quarter of 2004, Adjusted Earnings excluded a net $9.7 million ($6.3 million, net of tax) of items. These items included:

   * Preopening and start-up expenses of $6.7 million ($4.3 million, net of
     tax), primarily related to KA at MGM Grand Las Vegas and the Bellagio
     expansion;
   * Restructuring credit of $(0.3) million ($(0.2) million, net of tax);
   * Net property transactions of $3.3 million ($2.2 million, net of tax),
     including demolition costs at MGM Grand Las Vegas in connection with
     room remodel projects.

In the fourth quarter of 2003, items excluded in the determination of Adjusted Earnings totaled a net benefit of $43.0 million ($32.6 million, net of tax) and included preopening and start-up expenses of $0.5 million ($0.3 million, net of tax); restructuring costs of $1.4 million ($0.9 million, net of tax), primarily related to the closure of the Siegfried and Roy show; net gain on property transactions of $31.5 million ($20.5 million, net of tax), including the $36.7 million gain on sale of land in North Las Vegas; and reversal of tax reserves of $13.4 million.

The Company's effective income tax rate was 38.5% in the fourth quarter versus 24.7% in the 2003 quarter. The increase was due to non-deductible costs related to a Michigan ballot initiative, overseas development costs for which no tax benefit was provided, and the reversal of tax reserves in the prior year.

Financial Position

Fourth quarter capital investments of $168 million included $57 million for the Bellagio expansion and $33 million related to the renovation of the Emerald Tower and the SKYLOFTS at MGM Grand Las Vegas. Other expenditures related primarily to continued enhancements to the Company's existing resorts, including work on new dining and entertainment venues.

The Company did not repurchase any shares of common stock in the fourth quarter, and repaid $111 million of net debt. As of December 31, 2004, the Company had approximately $2.4 billion of available borrowings under its existing senior credit facility.

"We generated significant operating cash flow in 2004, and will continue to do so to provide support for our growth initiatives," said MGM MIRAGE President, CFO and Treasurer, Jim Murren. "We look forward to enhancing our already strong portfolio of resorts with the coming Mandalay merger. This transaction will allow us to further invest in strategic developments with outstanding returns and to rapidly de-leverage," Mr. Murren said.

Outlook

The Company expects REVPAR growth to be in the 10% range in the first quarter of 2005, driven by an exceptional convention and events calendar, on top of a 9% year-over-year increase in the 2004 first quarter. Property-level EBITDA is expected to increase over the prior year due to the expected continued strength in hotel results and solid gaming volumes. The Bellagio expansion will also contribute to the positive comparison. Other factors affecting Adjusted EPS compared to the first quarter of 2004 include higher levels of fixed rate borrowings related to the pending Mandalay merger and higher depreciation expense resulting from recent capital additions.

"We believe the current earnings consensus for the first quarter of $0.74 as reported on First Call on January 31, 2005 is reasonable. We are mindful that two important first quarter events, Super Sunday and Chinese New Year, have not yet occurred, and our guidance excludes any impact from the expected closing of the Mandalay merger," said Mr. Murren. The Company earned $0.70 in the prior year first quarter on an Adjusted EPS basis, which was an all-time record for the Company.

MGM MIRAGE will hold a conference call to discuss its earnings results and outlook for the first quarter of 2005 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 1-706-634-6528 (international). A complete replay of the conference call will be made available at www.mgmmirage.com.

(1) Adjusted Earnings (and Adjusted EPS) is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of performance, and 2) a principal basis for valuation of gaming companies, as this measure is considered by many to be a better measure on which to base expectations of future results than income from continuing operations computed in accordance with generally accepted accounting principles ("GAAP"). Reconciliations of GAAP income from continuing operations and EPS to Adjusted Earnings and EPS are included in the financial schedules accompanying this release.

(2) EBITDA is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, restructuring, preopening and start-up expenses, and property transactions, net. EBITDA is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. Management uses property-level EBITDA (EBITDA before corporate expense) as the primary measure of the Company's operating resorts' performance, including the evaluation of operating personnel. EBITDA should not be construed as an alternative to operating income or income from continuing operations, 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 income from continuing operations and operating income to EBITDA by resort are included in the financial schedules accompanying this release.

MGM MIRAGE (NYSE: MGG), headquartered in Las Vegas, Nevada, is one of the world's leading and most respected hotel and gaming companies. The Company owns and operates 11 casino resorts located in Nevada, Mississippi and Michigan, and has investments in three other casino resorts in Nevada, New Jersey and the United Kingdom. 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
                                Dec. 31,   Dec. 31,    Dec. 31,    Dec. 31,
                                  2004       2003        2004        2003
  Revenues:
    Casino                    $  572,594 $  518,355  $2,223,965  $2,037,514
    Rooms                        220,993    201,246     911,259     833,272
    Food and beverage            206,081    189,651     841,147     757,278
    Entertainment                 70,487     60,353     270,799     255,995
    Retail                        45,245     45,284     184,438     180,935
    Other                         60,773     49,980     240,880     210,772
                               1,176,173  1,064,869   4,672,488   4,275,766
    Less: Promotional
     allowances                 (113,426)  (104,959)   (434,384)   (413,023)
                               1,062,747    959,910   4,238,104   3,862,743
  Expenses:
    Casino                       284,791    263,791   1,106,142   1,040,948
    Rooms                         62,758     58,175     247,387     234,693
    Food and beverage            121,574    113,587     482,417     436,754
    Entertainment                 50,121     42,982     192,390     183,012
    Retail                        29,468     28,897     118,413     115,123
    Other                         36,685     32,883     146,146     130,698
    Provision for doubtful
     accounts                      4,105     (5,697)     (3,629)     12,570
    General and administrative   153,952    145,903     612,615     583,599
    Corporate expense             24,531     17,317      77,910      61,541
    Preopening and start-up
     expenses                      6,692        507      10,276      29,266
    Restructuring costs
     (credit)                       (276)     1,410       5,625       6,597
    Property transactions, net     3,311    (31,451)      8,665     (18,941)
    Depreciation and
     amortization                106,263     97,722     402,545     400,766
                                 883,975    766,026   3,406,902   3,216,626

  Income from unconsolidated
   affiliates                     34,468     16,258     119,658      53,612

  Operating income               213,240    210,142     950,860     699,729

  Non-operating income
   (expense):
    Interest income                2,224        846       5,664       4,078
    Interest expense, net       (100,692)   (89,397)   (378,386)   (337,586)
    Non-operating items from
     unconsolidated affiliates    (4,488)    (6,179)    (23,802)    (10,401)
    Other, net                       137     (1,697)    (10,025)    (12,160)
                                (102,819)   (96,427)   (406,549)   (356,069)

  Income from continuing
   operations before income
   taxes                         110,421    113,715     544,311     343,660
    Provision for income taxes   (42,474)   (28,049)   (201,394)   (113,387)
  Income from continuing
   operations                     67,947     85,666     342,917     230,273

  Discontinued operations
    Income from discontinued
     operations,
      including gain (loss) on
       disposal of $82,538
        (twelve months 2004)
         and ($6,735)
        (twelve months 2003)          --      8,985      94,207      16,075
    Provision for income taxes        --     (2,916)    (31,731)     (2,651)
                                      --      6,069      62,476      13,424

  Net income                    $ 67,947   $ 91,735  $  405,393  $  243,697


  Per share of common stock:
    Basic:
    Income from continuing
     operations                 $   0.49   $   0.60  $     2.46  $     1.55
    Discontinued operations           --       0.04        0.44        0.09
    Net income per share        $   0.49   $   0.64  $     2.90  $     1.64

    Weighted average shares
     outstanding                 138,884    143,918     139,663     148,930

    Diluted:
    Income from continuing
     operations                 $   0.47   $   0.58  $     2.37  $     1.52
    Discontinued operations           --       0.04        0.43        0.09
    Net income per share        $   0.47   $   0.62  $     2.80  $     1.61

    Weighted average shares
     outstanding                 144,848    147,708     144,666     151,592



                         MGM MIRAGE AND SUBSIDIARIES
           RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS
                     AND EPS TO ADJUSTED EARNINGS AND EPS
                    (In thousands, except per share data)
                                 (Unaudited)

                             Three Months Ended      Twelve Months Ended
                             Dec. 31,   Dec. 31,     Dec. 31,    Dec. 31,
                               2004       2003         2004        2003
  Income from continuing
   operations               $ 67,947    $ 85,666   $  342,917 $ 230,273
  Preopening and start-up
   expenses, net               4,349         330        6,679    19,023
  Restructuring costs
   (credit), net                (180)        916        3,656     4,288
  Property transactions,
   net                         2,152     (20,444)       5,632   (12,312)
  Tax adjustments                 --     (13,391)       1,643   (13,391)
  Loss on debt retirements,
   net                            --          --        3,593     2,109
  Adjusted earnings         $ 74,268    $ 53,077   $  364,120 $ 229,990

  Per diluted share of
   common stock:
    Income from continuing
     operations             $   0.47    $   0.58   $     2.37 $    1.52
    Preopening and start-up
     expenses, net              0.03          --         0.05      0.13
    Restructuring costs
     (credit), net                --        0.01         0.03      0.03
    Property transactions,
     net                        0.01       (0.14)        0.04     (0.08)
    Tax adjustments               --       (0.09)        0.01     (0.09)
    Loss on debt retirements,
     net                          --          --         0.02      0.01
    Adjusted EPS            $   0.51    $   0.36   $     2.52 $    1.52

    Weighted average
     diluted shares
     outstanding             144,848     147,708      144,666   151,592



                         MGM MIRAGE AND SUBSIDIARIES
  RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING OPERATIONS
                                (In thousands)
                                 (Unaudited)

                            Three Months Ended       Twelve Months Ended
                            Dec. 31,   Dec. 31,      Dec. 31,    Dec. 31,
                              2004       2003          2004        2003

  EBITDA                    $329,230    $278,330   $1,377,971 $1,117,417
    Preopening and
     start-up expenses        (6,692)       (507)     (10,276)   (29,266)
    Restructuring costs
     (credit)                    276      (1,410)      (5,625)    (6,597)
    Property transactions,
     net                      (3,311)     31,451       (8,665)    18,941
    Depreciation and
     amortization           (106,263)    (97,722)    (402,545)  (400,766)
  Operating income           213,240     210,142      950,860    699,729

  Non-operating income
   (expense):
    Interest expense, net   (100,692)    (89,397)    (378,386)  (337,586)
    Other                     (2,127)     (7,030)     (28,163)   (18,483)
                            (102,819)    (96,427)    (406,549)  (356,069)

  Income from continuing
   operations before
   income taxes              110,421     113,715      544,311    343,660
    Provision for
     income taxes            (42,474)    (28,049)    (201,394)  (113,387)
  Income from
   continuing operations    $ 67,947    $ 85,666   $  342,917  $ 230,273



                         MGM MIRAGE AND SUBSIDIARIES
                  SUPPLEMENTAL DATA - NET REVENUES BY RESORT
                                (In thousands)
                                 (Unaudited)

                             Three Months Ended      Twelve Months Ended
                             Dec. 31,   Dec. 31,     Dec. 31,    Dec. 31,
                               2004       2003         2004        2003
  Bellagio                $  280,281    $232,686   $1,068,517 $  966,679
  MGM Grand Las Vegas        209,924     193,954      860,778    752,932
  The Mirage                 140,987     136,041      566,276    579,897
  Treasure Island             97,753      87,788      385,674    351,924
  New York-New York           85,563      74,083      337,198    267,808
  MGM Grand Detroit          101,123     101,350      421,942    396,349
  Beau Rivage                 77,067      73,196      312,235    299,550
  Other operations            70,049      60,812      285,484    247,604
                          $1,062,747    $959,910   $4,238,104 $3,862,743



                         MGM MIRAGE AND SUBSIDIARIES
                     SUPPLEMENTAL DATA - EBITDA BY RESORT
                                (In thousands)
                                 (Unaudited)

                              Three Months Ended      Twelve Months Ended
                              Dec. 31,   Dec. 31,     Dec. 31,   Dec. 31,
                                2004       2003         2004       2003
  Bellagio                 $  93,305    $ 68,089   $  352,166 $  291,761
  MGM Grand Las Vegas         61,978      57,434      290,365    221,504
  The Mirage                  40,165      42,341      170,377    162,899
  Treasure Island             26,474      22,002      109,132     90,325
  New York-New York           35,663      25,946      131,880    100,257
  MGM Grand Detroit           32,261      38,042      150,831    149,934
  Beau Rivage                 19,193      16,790       80,907     71,593
  Other operations            10,254       8,745       50,565     37,073
  Income from
   unconsolidated
   affiliates                 34,468      16,258      119,658     53,612
                           $ 353,761    $295,647   $1,455,881 $1,178,958



                         MGM MIRAGE AND SUBSIDIARIES
            RECONCILIATION OF OPERATING INCOME TO EBITDA BY RESORT
                                (In thousands)
                                 (Unaudited)

                     Three Months Ended December 31, 2004

                              Depreci-   Pre-
                               ation   opening  Restruc- Property
                                and      and     turing   trans-
                   Operating  amorti- start-up   costs   actions,
                     income    zation  expenses (credit)    net      EBITDA
  Bellagio          $ 64,550  $ 24,753  $3,516  $    --  $    486  $ 93,305
  MGM Grand
   Las Vegas          29,708    27,385   3,176     (195)    1,904    61,978
  The Mirage          26,940    12,826      --       --       399    40,165
  Treasure Island     17,929     8,086      --       --       459    26,474
  New York-New York   27,157     8,486      --       --        20    35,663
  MGM Grand Detroit   24,712     7,621      --      (81)        9    32,261
  Beau Rivage         13,841     5,313      --       --        39    19,193
  Other operations     4,208     6,051      --       --        (5)   10,254
  Unconsolidated
   affiliates         34,468        --      --       --        --    34,468
                     243,513   100,521   6,692     (276)    3,311   353,761
  Corporate and
   other             (30,273)    5,742      --       --        --   (24,531)
                    $213,240  $106,263  $6,692  $  (276) $  3,311  $329,230



                     Three Months Ended December 31, 2003

                              Depreci-   Pre-
                               ation   opening           Property
                                and      and    Restruc-  trans-
                   Operating  amorti- start-up   turing  actions,
                     income    zation  expenses  costs     net       EBITDA
  Bellagio          $ 46,610  $ 19,711  $   --  $   --   $  1,768  $ 68,089
  MGM Grand
   Las Vegas          34,001    22,753     165      --        515    57,434
  The Mirage          25,451    12,337      --   1,623      2,930    42,341
  Treasure Island     13,965     8,143      --      --       (106)   22,002
  New York-New York   17,557     8,173     (77)    (36)       329    25,946
  MGM Grand Detroit   30,160     7,859      --      --         23    38,042
  Beau Rivage         11,752     5,296      --      --       (258)   16,790
  Other operations     4,059     4,685      --      --          1     8,745
  Unconsolidated
   affiliates         16,258        --      --      --         --    16,258
                     199,813    88,957      88   1,587      5,202   295,647
  Corporate and
   other              10,329     8,765     419    (177)   (36,653)  (17,317)
                    $210,142  $ 97,722  $  507  $1,410   $(31,451) $278,330



                         MGM MIRAGE AND SUBSIDIARIES
      RECONCILIATION OF OPERATING INCOME TO EBITDA BY RESORT - continued
                                (In thousands)
                                 (Unaudited)

                    Twelve Months Ended December 31, 2004

                              Depreci-   Pre-
                               ation   opening           Property
                                and      and    Restruc-  trans-
                   Operating  amorti- start-up   turing  actions,
                     income    zation  expenses  costs     net      EBITDA
  Bellagio         $ 252,914  $ 89,366 $ 3,804  $3,000  $ 3,082  $  352,166
  MGM Grand
   Las Vegas         181,096    98,203   6,161     705    4,200     290,365
  The Mirage         117,430    51,809      --      --    1,138     170,377
  Treasure Island     74,989    33,599     261      --      283     109,132
  New York-New York   99,358    32,536     (79)     --       65     131,880
  MGM Grand Detroit  118,692    30,278      --   1,506      355     150,831
  Beau Rivage         59,688    21,078      --      --      141      80,907
  Other operations    28,250    21,872      --      --      443      50,565
  Unconsolidated
   affiliates        119,658        --      --      --       --     119,658
                   1,052,075   378,741  10,147   5,211    9,707   1,455,881
  Corporate and
   other            (101,215)   23,804     129     414   (1,042)    (77,910)

                   $ 950,860  $402,545 $10,276  $5,625  $ 8,665  $1,377,971



                    Twelve Months Ended December 31, 2003

                              Depreci-   Pre-
                               ation   opening           Property
                                and      and    Restruc-  trans-
                   Operating  amorti- start-up   turing  actions,
                     income    zation  expenses  costs     net      EBITDA
  Bellagio          $189,766  $ 99,339 $    --  $   -- $  2,656  $  291,761
  MGM Grand
   Las Vegas         119,633    86,054   1,731   3,881   10,205     221,504
  The Mirage         108,204    49,470      --   1,923    3,302     162,899
  Treasure Island     56,892    33,483      --     178     (228)     90,325
  New York-New York   68,881    26,595   4,310     142      329     100,257
  MGM Grand Detroit  116,278    32,655     450      --      551     149,934
  Beau Rivage         50,740    19,936      --      --      917      71,593
  Other operations    18,149    19,188      --      --     (264)     37,073
  Unconsolidated
   affiliates         34,286        --  19,326      --       --      53,612
                     762,829   366,720  25,817   6,124   17,468   1,178,958
  Corporate and
   other             (63,100)   34,046   3,449     473  (36,409)    (61,541)
                    $699,729  $400,766 $29,266  $6,597 $(18,941) $1,117,417


                         MGM MIRAGE AND SUBSIDIARIES
                    SUPPLEMENTAL DATA - HOTEL STATISTICS
                                 (Unaudited)


                                     Three Months Ended  Twelve Months Ended
                                      Dec. 31,  Dec. 31,  Dec. 31,  Dec. 31,
                                        2004      2003      2004     2003
     Bellagio
        Occupancy %                     95.1%     95.9%     96.1%    95.4%
        Average daily rate (ADR)       $ 237     $ 235     $ 239    $ 230
        Revenue per available room
         (REVPAR)                      $ 226     $ 226     $ 229    $ 220

     MGM Grand Las Vegas
        Occupancy %                     92.2%     87.8%     93.9%    92.8%
        Average daily rate (ADR)       $ 130     $ 119     $ 130    $ 116
        Revenue per available room
         (REVPAR)                      $ 120     $ 104     $ 122    $ 108

     The Mirage
        Occupancy %                     95.4%     92.1%     96.6%    94.9%
        Average daily rate (ADR)       $ 153     $ 140     $ 151    $ 138
        Revenue per available room
         (REVPAR)                      $ 146     $ 129     $ 146    $ 131

     Treasure Island
        Occupancy %                     97.1%     95.7%     97.7%    96.9%
        Average daily rate (ADR)       $ 117     $ 106     $ 116    $ 103
        Revenue per available room
         (REVPAR)                      $ 113     $ 101     $ 113    $ 100

     New York-New York
        Occupancy %                     96.8%     94.7%     97.8%    97.5%
        Average daily rate (ADR)       $ 116     $ 101     $ 115    $  98
        Revenue per available room
         (REVPAR)                      $ 112     $  95     $ 113    $  96

     Beau Rivage
        Occupancy %                     86.6%     84.3%     90.0%    91.0%
        Average daily rate (ADR)       $  92     $  89     $  95    $  93
        Revenue per available room
         (REVPAR)                      $  80     $  75     $  86    $  85

     Other operations
        Occupancy %                     66.9%     69.2%     71.5%    68.8%
        Average daily rate (ADR)       $  47     $  41     $  43    $  42
        Revenue per available room
         (REVPAR)                      $  32     $  28     $  31    $  29



                         MGM MIRAGE AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                      (In thousands, except share data)
                                 (Unaudited)

                                                  Dec. 31,       Dec. 31,
                                                    2004           2003

                                    ASSETS
  Current assets:
    Cash and cash equivalents                 $    435,128   $    279,606
    Accounts receivable, net                       204,151        139,475
    Inventories                                     70,333         65,189
    Income tax receivable                               --          9,901
    Deferred income taxes                           28,928         49,286
    Prepaid expenses and other                      81,662         89,641
    Assets held for sale                                --        226,082
      Total current assets                         820,202        859,180

  Property and equipment, net                    8,914,142      8,681,339

  Other assets:
    Investments in unconsolidated affiliates       831,136        756,012
    Goodwill and other intangible assets, net      233,335        267,668
    Deposits and other assets, net                 304,710        247,070
      Total other assets                         1,369,181      1,270,750
                                              $ 11,103,525   $ 10,811,269

                     LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
    Accounts payable                          $    198,050   $    186,998
    Income taxes payable                               426             --
    Current portion of long-term debt                   14          9,008
    Accrued interest on long-term debt             116,997         87,711
    Other accrued liabilities                      607,925        559,445
    Liabilities related to assets held for sale         --         23,456
      Total current liabilities                    923,412        866,618

  Deferred income taxes                          1,802,008      1,765,426
  Long-term debt                                 5,458,848      5,521,890
  Other long-term obligations                      154,492        123,547
  Stockholders' equity:
    Common stock ($.01 par value: authorized
     300,000,000 shares, issued 173,573,934
     and 168,268,213 shares and outstanding
     140,369,934 and 143,096,213 shares)             1,736          1,683
    Capital in excess of par value               2,346,329      2,171,625
    Deferred compensation                          (10,878)       (19,174)
    Treasury stock, at cost (33,204,000 and
     25,172,000 shares)                         (1,110,551)      (760,594)
    Retained earnings                            1,539,296      1,133,903
    Accumulated other comprehensive income
     (loss)                                         (1,167)         6,345
      Total stockholders' equity                 2,764,765      2,533,788
                                              $ 11,103,525   $ 10,811,269

SOURCE: MGM MIRAGE

CONTACT: Investment Community, James J. Murren, President, Chief
Financial Officer and Treasurer, +1-702-693-8877, or Media, Alan Feldman,
Senior Vice President Public Affairs, +1-702-891-7147

Web site: http://www.mgmmirage.com/