MGM MIRAGE Reports Second Quarter Results

August 05, 2008
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGM) today reported its second quarter 2008 financial results. The Company achieved 97% occupancy at its Las Vegas Strip resorts, while company-wide net revenue declined 2%. The Company earned $0.40 per diluted share from continuing operations in the 2008 second quarter, compared to $0.62 in the prior year second quarter. The 2007 quarter included $63 million, or $0.14 per diluted share net of tax, of residential sales at The Signature at MGM Grand. The 2008 quarter includes $19 million, or $0.04 per diluted share net of tax, of insurance recovery income related to the Monte Carlo fire.

Overall trends were similar to those experienced in the first quarter of 2008 -- guests continued to visit the Company's resorts in high numbers, but at lower room rates, and current economic conditions led to lower visitor spending. Gaming revenues were impacted slightly more than non-gaming revenues, with the Company experiencing a 4% decline in gaming revenues on a quarter-over-quarter basis. Net non-gaming revenues were flat as relative strength in food and beverage and entertainment revenue offset lower revenue in rooms and retail. The Company also notes that results at its regional properties in Mississippi and Michigan improved compared to first quarter performance and exceeded 2007 results.

  Key results for the quarter include:
  --  Net revenue decreased 2% to $1.9 billion;
  --  Las Vegas Strip REVPAR(1) decreased 5%; occupancy was 97% at the
      Company's Las Vegas Strip resorts versus 98% a year ago;
  --  Casino revenue decreased 4%, mainly as result of lower table games
      volume at the Company's Las Vegas Strip resorts and a 10% decline in
      Las Vegas Strip slots revenue, offset by increased slots revenue at
      the larger MGM Grand Detroit and increases at Beau Rivage and Gold
      Strike Tunica;
  --  Property EBITDA(2) decreased 12% on a comparable basis, after removing
      the impact of the prior year residential profits and current year
      insurance recoveries.  On an absolute basis, Property EBITDA was $564
      million in the 2008 quarter, an 18% decrease from the prior year;
  --  Bellagio and Mandalay Bay reported increases in Property EBITDA, with
      Bellagio reporting its highest ever quarterly hotel revenue and
      leading the Las Vegas market in Property EBITDA; Mandalay Bay produced
      a record for second quarter EBITDA.


The following table lists certain items which affect the comparability of the current year and prior year quarterly results (earnings per share impact shown, net of tax, per diluted share; negative amounts represent charges to income):

  Three months ended June 30,                        2008          2007
  ---------------------------                       ------        ------
  Profits from The Signature at MGM Grand           $    -       $  0.14
  Preopening and start-up expenses                   (0.02)        (0.03)
  Monte Carlo fire business interruption
   (recorded as a reduction of general
   and administrative expenses)                       0.02             -
  Property transactions, net:
    Monte Carlo fire property damage insurance        0.02             -
    Other property transactions                      (0.02)        (0.01)



"Our resorts were near capacity and we believe our market share increased, as discriminating customers seek the best resort and entertainment experiences," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "Our track record of successfully navigating through changing economic conditions is solid and is reinforced by our results this quarter."

Detailed Discussion of Second Quarter Operating Results

Casino revenue decreased 4%, mainly due to a decrease in table games volume of 7%. The table games hold percentage was at the mid-point of the normal 18% to 22% range in the current quarter and slightly higher than in the 2007 quarter. Slots revenue decreased 2% in the quarter, with the Company's Las Vegas Strip resorts posting a 10% decrease. However, slots revenue increased in the high single digits at Beau Rivage and Gold Strike Tunica and 18% at MGM Grand Detroit. MGM Grand Detroit continues to gain market share as a result of its upgraded amenities.

Rooms revenue decreased 6%, with a 5% decline in Las Vegas Strip REVPAR. Average room rates were down 5% at the Company's Las Vegas Strip resorts. Las Vegas Strip occupancy decreased slightly, and the Company had approximately 32,000 less rooms available at its Las Vegas Strip resorts, mainly due to the lower room count at Monte Carlo. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

  Three months ended June 30,              2008      2007
  ---------------------------             ------    ------
  Occupancy %                               97%       98%
  Average Daily Rate (ADR)                 $155      $162
  Revenue per Available Room (REVPAR)      $150      $159



These trends are largely in line with the Company's experience in the first quarter, when Las Vegas Strip REVPAR decreased 4%. In the second quarter, the Company strategically managed its room rates to ensure that occupancy was maximized in line with historical levels.

Food and beverage revenue increased 2% and entertainment revenues also performed well, only down 4% despite a difficult comparison as the second quarter of 2007 featured the Oscar de la Hoya-Floyd Mayweather fight. The Company's Cirque du Soleil production shows generated a combined 3% increase in revenue. The Company believes its restaurants, nightclubs and shows continue to attract guests seeking the highest quality experience, and the Company has continued to introduce new venues such as the recently opened Brand Steakhouse at Monte Carlo, Tender Steakhouse at Luxor, BLT Burger at The Mirage, and Yellowtail sushi restaurant at Bellagio; and the soon-to-open RokVegas nightclub at New York-New York. In addition, the new production show from Cirque du Soleil and Criss Angel, Believe, will open in the fall.

The Company recorded $19 million of insurance recovery income in the quarter related to the January 2008 Monte Carlo fire -- $9 million related to business interruption recorded as a reduction of general and administrative expenses, and $10 million related to property damage recorded as property transactions. Through June 30, 2008, the Company had received $50 million from its insurers. Excluding the insurance recovery income, Monte Carlo earned Property EBITDA of $17 million in the 2008 second quarter compared to $32 million reported in the 2007 second quarter; the property is still without nearly 200 rooms, mostly suites, as a result of the fire.

Corporate expense decreased from $44 million in the 2007 quarter to $27 million in 2008, due to the impact of cost reduction measures implemented during the quarter and lower accruals for profit-based bonuses.

MGM Grand Macau, of which the Company owns 50%, recorded Property EBITDA of $23 million and an operating loss of $5 million. The Company recognized its share of MGM Grand Macau's results as follows: $4 million of loss in the "Income from unconsolidated affiliates" line and $3 million of expense in "Non-operating items from unconsolidated affiliates."

"As these results represent only our second full quarter of operations at MGM Grand Macau, we believe we are still in the early stages of realizing the potential of this resort," said Mr. Lanni. "We have taken several steps to improve our operating performance over the past several months and based on our results in June and July, we believe these measures are having the desired impact as evidenced by our increased market share."

Operating income decreased 29% for the quarter to $334 million, a larger percentage decrease than the 18% drop in Property EBITDA as a result of higher depreciation expense, including the larger MGM Grand Detroit. Year-over-year comparisons for both Property EBITDA and operating income were impacted by the prior year Signature profits of $63 million and the other items described earlier in the release. On a comparable basis excluding these items in both quarterly periods, Property EBITDA decreased 12% with a margin of 30% in 2008 versus 33% in 2007; and operating income decreased 21% with a margin of 17% versus 22%.

Net income, including discontinued operations, decreased to $113 million, or $0.40 per diluted share, from $360 million, or $1.22 per diluted share. In addition to the factors described above, the decrease resulted from the $264 million of pre-tax gains recorded in the prior year quarter from the sale of discontinued operations (the Primm Valley Resorts and Laughlin Properties).

"Our resorts are clearly positioned to be the standard of quality in our industry, and our results reflect that competitive position," said Jim Murren, President and Chief Operating Officer of MGM MIRAGE. "While we had mixed results, some of our properties generated increases in cash flow in this challenging environment, and our cost reduction efforts continue to gain traction without impacting guest service; we expect these initiatives will benefit us well into the future. We believe in the durability of the Las Vegas market and that over time it will continue to grow in line with historical trends. Our own forward booking trends show improvement in the fourth quarter of 2008 and into 2009."

Financial Position

Second quarter capital investments totaled $221 million which included $73 million on room and suite remodel projects, primarily at The Mirage and TI; $7 million for the theatre at Luxor; expenditures of $9 million for remediation efforts at Monte Carlo; and $23 million for the people mover joining CityCenter, Monte Carlo and Bellagio, and Monte Carlo's share of a parking garage being constructed for both Monte Carlo and CityCenter. The remaining $109 million was for other capital expenditures, including various new and upgraded amenities at the Company's resorts.

The Company repurchased 2.6 million shares of its common stock in the open market for $134 million during the second quarter, completing the Company's December 2007 share repurchase authorization. In May 2008, the Company's Board of Directors approved a new 20 million share repurchase program; however, the Company has not repurchased any shares under this authorization. Available borrowing capacity under the Company's senior credit facility was $1.7 billion as of June 30, 2008; after giving effect to the repayment of $196 million of senior notes in August 2008, such availability is $1.5 billion.

During the quarter, the Company and Dubai World each funded $300 million of construction costs for CityCenter. The Company and Dubai World are currently working with several relationship lenders regarding a $3 billion financing package for the joint venture. To date, CityCenter has received commitments totaling $1.65 billion from the lead banks -- Bank of America, Royal Bank of Scotland, UBS, BNP Paribas, and Sumitomo Mitsui. In addition, CityCenter has received commitments from Deutsche Bank, Morgan Stanley, and the Bank of Nova Scotia.

"In an unprecedented credit market, CityCenter has received to date well over half of the financing committed from these institutions and anticipates finalizing its bank financing this quarter," said Executive Vice President and Chief Financial Officer of MGM MIRAGE, Dan D'Arrigo. Related to MGM MIRAGE capital spending, Mr. D'Arrigo noted, "Over the past several years, we have invested significant capital in our resorts in the form of new restaurants, entertainment venues and upgraded rooms, and we maintain them at the highest level. As a result, our required capital spending for the remainder of this year and into 2009 will be lower than in the recent past, enhancing our available free cash flow."

MGM MIRAGE will hold a conference call to discuss its second quarter earnings results and outlook for the third quarter of 2008 at 11:00 a.m. Eastern Daylight Time today. The call can be accessed live at http://www.companyboardroom.com/ or http://www.mgmmirage.com/, or by calling 1-800-526-8531 (domestic) or 1-706-634-6528 (international). Until August 12, 2008, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 54787690. A complete replay of the call will also be made available at http://www.mgmmirage.com/. Supplemental detailed earnings information will also be available on the Company's website.

  (1)  REVPAR is hotel Revenue per Available Room.

  (2)  "EBITDA" is earnings before interest and other non-operating income
       (expense), taxes, depreciation and amortization.  "Property EBITDA"
       is EBITDA before corporate expense and stock compensation expense.
       EBITDA information is presented solely as a supplemental disclosure
       because management believes that it is 1) a widely used measure of
       operating performance in the gaming industry, and 2) a principal
       basis for valuation of gaming companies.  In addition, capital
       allocation, tax planning, financing and stock compensation awards are
       all managed at the corporate level.  Management uses Property EBITDA
       as the primary measure of the Company's operating resorts'
       performance, including the evaluation of operating personnel.  EBITDA
       should not be construed as an alternative to operating income, as an
       indicator of the Company's operating performance; or as an
       alternative to cash flows from operating activities, as a measure of
       liquidity; or as any other measure determined in accordance with
       generally accepted accounting principles.  The Company has
       significant uses of cash flows, including capital expenditures,
       interest payments, taxes and debt principal repayments, which are not
       reflected in EBITDA.  Also, other gaming companies that report EBITDA
       information may calculate EBITDA in a different manner than the
       Company.  Reconciliations of consolidated EBITDA to net income and of
       operating income to Property EBITDA are included in the financial
       schedules accompanying this release.


MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected development companies with significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. MGM MIRAGE is developing major casino and non-casino resorts, separately and with partners in Las Vegas, Atlantic City, the People's Republic of China and Abu Dhabi, U.A.E. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com/.

Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.

                         MGM MIRAGE AND SUBSIDIARIES
                        CONSOLIDATED INCOME STATEMENT
                    (In thousands, except per share data)
                                 (Unaudited)

                             Three Months Ended      Six Months Ended
                           ----------------------  ----------------------
                             June 30,    June 30,   June 30,    June 30,
                               2008        2007       2008        2007
                           ----------  ----------  ----------  ----------
  Revenues:
    Casino                 $  742,183  $  773,931  $1,532,647  $1,585,870
    Rooms                     523,530     555,107   1,042,271   1,104,111
    Food and beverage         431,563     424,717     833,955     842,166
    Entertainment             138,030     143,237     272,868     277,485
    Retail                     68,818      79,072     132,855     147,322
    Other                     155,984     134,760     303,957     256,830
                           ----------  ----------  ----------  ----------
                            2,060,108   2,110,824   4,118,553   4,213,784
    Less: Promotional
     allowances              (164,389)   (174,408)   (339,201)   (347,933)

                           ----------  ----------  ----------  ----------
                            1,895,719   1,936,416   3,779,352   3,865,851
                           ----------  ----------  ----------  ----------
  Expenses:
    Casino                    400,979     401,342     817,542     813,134
    Rooms                     139,736     137,078     276,533     272,263
    Food and beverage         246,799     240,701     483,071     476,405
    Entertainment              98,286     103,389     193,950     200,632
    Retail                     42,495      48,830      85,659      92,574
    Other                      96,196      75,252     188,760     144,060
    General and
     administrative           323,811     329,711     644,185     641,385
    Corporate expense          26,621      43,668      59,071      77,623
    Preopening and start-up
     expenses                   6,957      14,148      12,121      28,424
    Restructuring costs           -           -           329         -
    Property transactions, net   (118)      2,407       2,658       7,426
    Depreciation and
     amortization             197,218     167,509     391,557     335,786
                           ----------  ----------  ----------  ----------
                            1,578,980   1,564,035   3,155,436   3,089,712
                           ----------  ----------  ----------  ----------
  Income from
   unconsolidated
   affiliates                  17,045      96,592      51,156     137,967
                           ----------  ----------  ----------  ----------
  Operating income            333,784     468,973     675,072     914,106
                           ----------  ----------  ----------  ----------
  Non-operating income
   (expense):
    Interest income             3,680       5,509       7,146       8,166
    Interest expense, net    (145,304)   (183,429)   (295,093)   (367,440)
    Non-operating items
     from unconsolidated
     affiliates                (7,288)     (4,714)    (17,179)     (9,820)
    Other, net                 (1,564)       (804)     (1,334)     (3,532)
                           ----------  ----------  ----------  ----------
                             (150,476)   (183,438)   (306,460)   (372,626)
                           ----------  ----------  ----------  ----------
  Income from continuing
   operations before income
   taxes                      183,308     285,535     368,612     541,480
    Provision for income
     taxes                    (70,207)   (102,637)   (137,165)   (195,572)
                           ----------  ----------  ----------  ----------
  Income from continuing
   operations                 113,101     182,898     231,447     345,908
                           ----------  ----------  ----------  ----------
  Discontinued operations:
    Income from discontinued
     operations                   -         2,615         -        10,461
    Gain on disposal of
     discontinued operations      -       263,881         -       263,881
    Provision for income
     taxes                        -       (89,222)        -       (91,905)
                           ----------  ----------  ----------  ----------
                                  -       177,274         -       182,437
                           ----------  ----------  ----------  ----------
  Net income               $  113,101  $  360,172  $  231,447  $  528,345
                           ==========  ==========  ==========  ==========

  Per share of common stock:
   Basic:
    Income from continuing
     operations            $     0.41  $     0.64  $     0.82  $     1.22
    Discontinued operations      -           0.63         -          0.64
                           ----------  ----------  ----------  ----------
   Net income per share    $     0.41  $     1.27  $     0.82  $     1.86
                           ==========  ==========  ==========  ==========
   Weighted average shares
    outstanding               277,468     283,849     283,205     283,933
                           ==========  ==========  ==========  ==========
   Diluted:
    Income from continuing
     operations            $     0.40  $     0.62  $     0.79  $     1.17
    Discontinued operations       -          0.60         -          0.62
                           ----------  ----------  ----------  ----------
   Net income per share    $     0.40  $     1.22  $     0.79  $     1.79
                           ==========  ==========  ==========  ==========
   Weighted average shares
    outstanding               284,615     295,232     291,508     295,402
                           ==========  ==========  ==========  ==========



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

                           Three Months Ended          Six Months Ended
                         ------------------------   ------------------------
                          June 30,      June 30,      June 30,     June 30,
                            2008          2007          2008         2007
                        -----------   -----------   -----------  -----------
    Las Vegas Strip     $ 1,551,148   $ 1,640,648   $ 3,099,205  $ 3,266,991
    Other Nevada             38,821        47,058        75,671       91,490
    MGM Grand Detroit       145,428       110,470       290,208      226,604
    Mississippi             139,401       138,240       273,623      280,766
    Other                    20,921           -          40,645          -
                        -----------   -----------   -----------  -----------
                        $ 1,895,719   $ 1,936,416   $ 3,779,352  $ 3,865,851
                        ===========   ===========   ===========  ===========



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

                            Three Months Ended          Six Months Ended
                        -------------------------   ------------------------
                          June 30,     June 30,       June 30,    June 30,
                            2008         2007          2008         2007
                        -----------   -----------   -----------  -----------
    Las Vegas Strip     $   482,744   $   531,224   $   962,240  $ 1,080,066
    Other Nevada               (735)        6,080        (1,420)       4,084
    MGM Grand Detroit        38,524        28,116        72,936       62,942
    Mississippi              28,616        27,907        55,986       63,310
    Other                     4,170           -           8,749          -
    Unconsolidated
     resorts                 10,634        92,952        40,001      131,094
                        -----------   -----------   -----------  -----------
                        $   563,953   $   686,279   $ 1,138,492  $ 1,341,496
                        ===========   ===========   ===========  ===========



                         MGM MIRAGE AND SUBSIDIARIES
       DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
                               (In thousands)
                                 (Unaudited)

                      Three Months Ended June 30, 2008
                      --------------------------------
                        Preopening
                           and                       Property
                         start-up    Restructuring  transactions,
                         expenses       costs           net        Total
                       -----------   -----------   -----------  -----------
     Las Vegas Strip   $       394   $    -        $    (3,628) $    (3,234)
     Other Nevada              -          -              2,187        2,187
     MGM Grand Detroit         (59)       -                -            (59)
     Mississippi               -          -                 (3)          (3)
     Unconsolidated
      resorts                6,575        -                -          6,575
                       -----------   -----------   -----------  -----------
                             6,910        -             (1,444)       5,466
     Corporate and other        47        -              1,326        1,373
                       -----------   -----------   -----------  -----------
                       $     6,957   $    -        $      (118) $     6,839
                       ===========   ===========   ===========  ===========



                      Three Months Ended June 30, 2007
                      --------------------------------

                        Preopening
                            and                     Property
                         start-up   Restructuring  transactions,
                         expenses       costs          net         Total
                       -----------   -----------   -----------  -----------
     Las Vegas Strip   $     7,131   $    -        $     2,587  $     9,718
     Other Nevada                -        -                (20)         (20)
     MGM Grand Detroit       3,205        -                  -        3,205
     Mississippi                 -        -                603          603
     Unconsolidated
      resorts                3,640        -                  -        3,640
                       -----------   -----------   -----------  -----------
                            13,976        -              3,170       17,146
     Corporate and
      other                    172        -               (763)        (591)
                       -----------   -----------   -----------  -----------
                       $    14,148   $    -        $     2,407  $    16,555
                       ===========   ===========   ===========  ===========



                         MGM MIRAGE AND SUBSIDIARIES
       DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
                                 (continued)
                               (In thousands)
                                 (Unaudited)

                       Six Months Ended June 30, 2008
                       ------------------------------

                          Preopening
                             and                     Property
                           start-up Restructuring  transactions,
                           expenses    costs           net         Total
                         ----------- -----------   -----------  -----------
     Las Vegas Strip     $       620 $       329   $      (839) $       110
     Other Nevada                -           -           2,187        2,187
     MGM Grand Detroit           135         -               8          143
     Mississippi                 -           -               2            2
     Unconsolidated
      resorts                 11,319         -               -       11,319
                         ----------- -----------   -----------  -----------
                              12,074         329         1,358       13,761
     Corporate and other          47         -           1,300        1,347
                         ----------- -----------   -----------  -----------
                         $    12,121 $       329   $     2,658  $    15,108
                         =========== ===========   ===========  ===========



                      Six Months Ended June 30, 2007
                      ------------------------------

                         Preopening
                            and                     Property
                          start-up  Restructuring  transactions,
                          expenses     costs            net        Total
                         ----------- -----------   -----------  -----------
     Las Vegas Strip     $    15,603 $    -        $     2,865  $    18,468
     Other Nevada                -        -              4,610        4,610
     MGM Grand Detroit         5,584      -                -          5,584
     Mississippi                 -        -                601          601
     Unconsolidated
      resorts                  6,873      -                -          6,873
                         ----------- -----------   -----------  -----------
                              28,060      -              8,076       36,136
     Corporate and other         364      -               (650)        (286)
                         ----------- -----------   -----------  -----------
                         $    28,424 $    -        $     7,426  $    35,850
                         =========== ===========   ===========  ===========



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

                                Three Months Ended     Six Months Ended
                             ---------------------- ----------------------
                               June 30,   June 30,   June 30,    June 30,
                                 2008       2007       2008        2007
                             ----------  ---------- ----------  ----------
  EBITDA                     $  531,002  $  636,482 $1,066,629  $1,249,892
    Depreciation and
     amortization              (197,218)   (167,509)  (391,557)   (335,786)
                             ----------  ---------- ----------  ----------
  Operating income              333,784     468,973    675,072     914,106
                             ----------  ---------- ----------  ----------
  Non-operating income
   (expense):
    Interest expense, net      (145,304)   (183,429)  (295,093)   (367,440)
    Other                        (5,172)         (9)   (11,367)     (5,186)
                             ----------  ---------- ----------  ----------
                               (150,476)   (183,438)  (306,460)   (372,626)
                             ----------  ---------- ----------  ----------
  Income from continuing
   operations before
   income taxes                 183,308     285,535    368,612     541,480
    Provision for income taxes  (70,207)   (102,637)  (137,165)   (195,572)
                             ----------  ---------- ----------  ----------
  Income from continuing
   operations                $  113,101  $  182,898 $  231,447  $  345,908
                             ==========  ========== ==========  ==========



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

                      Three Months Ended June 30, 2008
                      --------------------------------

                                             Depreciation
                                Operating         and
                                  income     amortization     EBITDA
                               ------------  ------------  ------------
    Las Vegas Strip            $    334,457  $    148,287  $    482,744
    Other Nevada                     (2,220)        1,485          (735)
    MGM Grand Detroit                24,227        14,297        38,524
    Mississippi                      13,148        15,468        28,616
    Other                             2,091         2,079         4,170
    Unconsolidated resorts           10,634           -          10,634
                               ------------  ------------  ------------
                                    382,337       181,616       563,953
    Stock compensation                                           (9,592)
    Corporate and other                                         (23,359)
                                                           ------------
                                                           $    531,002
                                                           ============



                     Three Months Ended June 30, 2007
                     --------------------------------

                                                  Depreciation
                                      Operating       and
                                       income     amortization     EBITDA
                                    ------------  ------------  -----------
    Las Vegas Strip                 $    397,731  $    133,493  $   531,224
    Other Nevada                           4,490         1,590        6,080
    MGM Grand Detroit                     22,204         5,912       28,116
    Mississippi                           12,781        15,126       27,907
    Unconsolidated resorts                92,952           -         92,952
                                    ------------  ------------  -----------
                                         530,158       156,121      686,279
    Stock compensation                                              (11,060)
    Corporate and other                                             (38,737)
                                                                -----------
                                                                $   636,482
                                                                ===========



                      Six Months Ended June 30, 2008
                      ------------------------------

                                                  Depreciation
                                      Operating       and
                                       income     amortization     EBITDA
                                    ------------  ------------  -----------
    Las Vegas Strip                 $    667,754  $    294,486  $   962,240
    Other Nevada                          (4,406)        2,986       (1,420)
    MGM Grand Detroit                     44,288        28,648       72,936
    Mississippi                           24,961        31,025       55,986
    Other                                  4,672         4,077        8,749
    Unconsolidated resorts                40,001           -         40,001
                                    ------------  ------------  -----------
                                         777,270       361,222    1,138,492
    Stock compensation                                              (20,795)
    Corporate and other                                             (51,068)
                                                                -----------
                                                                $ 1,066,629
                                                                ===========



                      Six Months Ended June 30, 2007
                      ------------------------------

                                                  Depreciation
                                      Operating       and
                                       income     amortization    EBITDA
                                    ------------  ------------  -----------
    Las Vegas Strip                 $    812,676  $    267,390  $ 1,080,066
    Other Nevada                             619         3,465        4,084
    MGM Grand Detroit                     51,068        11,874       62,942
    Mississippi                           33,018        30,292       63,310
    Unconsolidated resorts               131,094           -        131,094
                                    ------------  ------------  -----------
                                       1,028,475       313,021    1,341,496
    Stock compensation                                              (24,640)
    Corporate and other                                             (66,964)
                                                                -----------
                                                                $ 1,249,892
                                                                ===========



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

                                               June 30,         December 31,
                                                2008               2007
                                             -----------        -----------
                             ASSETS
  Current assets:
      Cash and cash equivalents              $   279,995        $   416,124
      Accounts receivable, net                   366,133            412,933
      Inventories                                125,781            126,941
      Income tax receivable                        1,752                -
      Deferred income taxes                       72,437             63,453
      Prepaid expenses and other                  95,723            106,364
                                             -----------        -----------
            Total current assets                 941,821          1,125,815
                                             -----------        -----------
  Property and equipment, net                 16,924,342         16,870,898

  Other assets:
      Investments in unconsolidated
       affiliates                              2,504,529          2,482,727
      Goodwill                                 1,262,922          1,262,922
      Other intangible assets, net               360,502            362,098
      Deposits and other assets, net           1,136,995            623,226
                                             -----------        -----------
            Total other assets                 5,264,948          4,730,973
                                             -----------        -----------
                                             $23,131,111        $22,727,686
                                             ===========        ===========



                     LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
      Accounts payable                       $   164,055        $   220,495
      Construction payable                        57,658             76,524
      Income taxes payable                           -              284,075
      Accrued interest on long-term
       debt                                      190,322            211,228
      Other accrued liabilities                  875,226            932,365
                                             -----------        -----------
            Total current liabilities          1,287,261          1,724,687
                                             -----------        -----------
  Deferred income taxes                        3,375,204          3,416,660
  Long-term debt                              13,010,813         11,175,229
  Other long-term obligations                    371,518            350,407
  Stockholders' equity:
      Common stock, $.01 par value:
       authorized 600,000,000 shares,
       issued 369,110,366 and
       368,395,926 shares and
       outstanding 276,333,339
       and 293,768,899 shares                      3,691              3,684
      Capital in excess of par value           3,996,481          3,951,162
      Treasury stock, at cost:
       92,777,027 and 74,627,027
       shares                                 (3,355,963)        (2,115,107)
      Retained earnings                        4,451,855          4,220,408
      Accumulated other comprehensive
       income (loss)                              (9,749)               556
                                             -----------        -----------
            Total stockholders' equity         5,086,315          6,060,703
                                             -----------        -----------
                                             $23,131,111        $22,727,686
                                             ===========        ===========

First Call Analyst:
FCMN Contact: mrenelle@mgmmirage.com

SOURCE: MGM MIRAGE

CONTACT: Investment Community, Daniel J. D'Arrigo, Executive Vice
President, Chief Financial Officer, +1-702-693-8895, or Alan M. Feldman,
Senior Vice President, Public Affairs, +1-702-650-6947, both of MGM MIRAGE

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