MGM Resorts International Reports Second Quarter Results

August 03, 2010

Year over Year Las Vegas Strip REVPAR Comparisons Improve Sequentially for the Fifth Consecutive Quarter;

Convention Booking Trends Continue to Improve

LAS VEGAS, Aug. 3 /PRNewswire-FirstCall/ -- MGM Resorts International (NYSE: MGM) today announced its financial results for the second quarter of 2010. The Company recorded a second quarter diluted loss per share of $2.00 compared to a loss of $0.60 per share in the prior year second quarter. The current year results include a pre-tax non-cash charge of approximately $1.12 billion (or $1.64 per share, net of tax) relating to an impairment of the Company’s investment in the CityCenter joint venture and a pre-tax non-cash charge of approximately $29 million (or $0.04 per share, net of tax) representing the Company’s share of an impairment of CityCenter’s residential inventory. The prior year results include non-cash impairment charges of $188 million (or $0.34 per share, net of tax), primarily related to the Company’s investment in a convertible note, and losses on the retirement of long-term debt of $58 million (an impact of $0.11 per share, net of tax).

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

Three months ended June 30,	2010	2009
Preopening and start-up expenses	$-	$(0.02)
Property transactions, net:
Investment in CityCenter non-cash impairment charge	(1.64)	-
Other property transactions, net	(0.01)	(0.01)
Income (loss) from unconsolidated affiliates:
CityCenter residential non-cash impairment charge	(0.04)	-
CityCenter forfeited residential deposits income	0.04	-
North Las Vegas Strip joint venture impairment charge	-	(0.02)
Convertible note investment impairment charge	-	(0.32)
Loss on early retirement of long-term debt	-	(0.11)

Key results for the quarter included the following:

Net revenue improved sequentially to $1.54 billion from $1.46 billion in the first quarter of 2010;
Las Vegas Strip REVPAR(1) decreased 2%, an improvement compared to an 8% decrease in the first quarter of 2010, with Bellagio and MGM Grand reporting increases in REVPAR for the quarter;
Adjusted Property EBITDA(2) attributable to wholly-owned operations was $305 million, up from $267 million in the first quarter; and
CityCenter earned Adjusted EBITDA of $9 million in the second quarter, and was negatively affected by a low table games hold percentage at Aria.

“The Las Vegas operating environment remains difficult, but as we expected, we are seeing a gradual recovery. Our Adjusted EBITDA improved compared to the first quarter, despite low hold percentages,” said Jim Murren, MGM Resorts International Chairman and CEO. “CityCenter is seeing improved business activity. Aria is gaining brand awareness, which led to a 17 percentage point sequential occupancy increase in the quarter and higher non-casino revenues.”

Detailed Discussion of Second Quarter Operating Results

Net revenue for the second quarter of 2010 was $1.54 billion. Excluding reimbursed costs revenue mainly related to the Company’s management of CityCenter, the Company earned net revenue of $1.45 billion, a decrease of 2% from the same period in 2009. Reimbursed costs revenue represents reimbursement of payroll and other costs incurred by the Company in connection with the provision of management services.

Total casino revenue decreased 6% compared to the prior year quarter, with slots revenue down approximately 3%. The Company’s table games volume, excluding baccarat, decreased 7% in the quarter, but baccarat volume was up 10% compared to the prior year quarter. The overall table games hold percentage was lower in the 2010 second quarter compared to the prior year quarter and near the low end of the Company’s normal 18% to 22% range. Lower than normal table games hold percentage at the Company’s Las Vegas Strip resorts resulted in an impact to Adjusted EBITDA of approximately $20 million. Bellagio, The Mirage, and Mandalay Bay were affected by the lower table games hold, partially offset by MGM Grand which benefited from a higher than normal table games hold percentage. These factors led to an overall decrease in table games revenue of 11% for the quarter.

“M life, our new customer loyalty program, was introduced two weeks ago at Beau Rivage and the response has been outstanding,” said Mr. Murren. “We are very excited about the opportunity M life presents to our Company, especially when coupled with the superior assets in our portfolio.”

Rooms revenue decreased 1% with Las Vegas Strip REVPAR down by 2%. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

Three months ended June 30,	2010	2009
Occupancy %	93%	94%
Average Daily Rate (ADR)	$110	$111
Revenue per Available Room (REVPAR)	$102	$104

“We maintained strong occupancy and improved our convention mix over the prior year second quarter, leading to sequential improvement in Las Vegas Strip REVPAR,” said Mr. Murren. “We expect continued progress in our business trends driven by strong forward convention bookings.”

Operating loss for the second quarter of 2010 was $1.0 billion (which included the $1.12 billion impairment of the Company’s investment in CityCenter and the Company’s $29 million share of the CityCenter residential impairment charge) compared to operating income of $131 million in the 2009 quarter. Excluding the impairment charges related to CityCenter, the Company would have earned operating income of $102 million in the second quarter of 2010.

The Company reported Adjusted Property EBITDA attributable to wholly-owned operations of $305 million in the 2010 quarter, a decrease of 16% year-over-year. Adjusted Property EBITDA, which includes the impact from unconsolidated affiliates, was $279 million in the 2010 quarter and was negatively impacted by $56 million in losses from CityCenter results. The Company reported Adjusted EBITDA, which includes corporate expense, of $243 million in the 2010 quarter.

Income from Unconsolidated Affiliates

The Company reported a loss from unconsolidated affiliates of $26 million in the second quarter of 2010 compared to income of $4 million in the prior year second quarter. The loss in the second quarter of 2010 was attributable to the Company’s 50% share of the operating loss at CityCenter.

Results for CityCenter for the second quarter of 2010 included the following (see schedules accompanying this release for further detail on CityCenter Holdings, LLC second quarter and year-to-date 2010 results):

CityCenter reported net revenues of $401 million in the second quarter, which included $218 million related to residential operations, of which $56 million related to forfeited residential deposits;
CityCenter’s operating loss of $128 million in the second quarter of 2010 included an approximately $57 million non-cash impairment charge related to its residential inventory and a loss on sales of residential units of $17 million;
Aria reported net revenue of $157 million and an Adjusted EBITDA loss of $17 million. Aria’s results were negatively affected by a low table games hold percentage, which reduced Adjusted EBITDA by approximately $24 million; and
Aria’s occupancy percentage was 80% and average daily rates were $178, resulting in significant REVPAR improvements from the first quarter of 2010.

The Company recorded its share of CityCenter’s results, including adjustments for recognition of basis differences as follows ((expense)/income):

Three months ended June 30,	2010	2009
	*(In thousands)*
Preopening and start-up expenses	$-	$(8,675)
Income (loss) from unconsolidated affiliates	(55,562)	(2,005)
Non-operating items from unconsolidated affiliates	(18,182)	(1,646)

The operating loss related to CityCenter was partially offset by the Company’s share of operating income at MGM Macau, which earned operating income of $40 million in the second quarter of 2010, including depreciation expense of $21 million, a significant improvement compared to an operating loss of $8 million in the 2009 second quarter, which included depreciation expense of $22 million.

Financial Position

At June 30, 2010, the Company had approximately $13.3 billion of indebtedness (with a carrying value of $13.0 billion), including $3.2 billion of borrowings outstanding under its senior credit facility. The Company has approximately $1.5 billion in available borrowing capacity under its revolver and approximately $570 million of invested cash available for future liquidity needs. The Company repurchased $211 million principal amount of senior notes with near term maturities during the second quarter, resulting in cash interest savings of approximately $5 million.

“We have made tremendous progress in addressing our balance sheet and liquidity needs by amending and negotiating the extension of our credit facility, accessing the secured bond market, and in April successfully issuing $1.15 billion in convertible notes. These transactions have provided over $2 billion of available liquidity,” said Dan D’Arrigo, MGM Resorts International Executive Vice President and CFO. “Additionally, our Macau bank refinancing was an overwhelming success. MGM Macau now has a solid long-term capital structure and our focus is on advancing our potential IPO transaction.”

Conference Call Details

MGM Resorts International will hold a conference call to discuss its second quarter results at 11:00 a.m. Eastern Daylight Time today. The call will be accessible via the Internet through www.mgmresorts.com and http://www.videonewswire.com/event.asp?id=70960 or by calling 1-800-526-8531 for Domestic callers and 1-706-758-3659 for International callers. The conference call ID # is 87731569. A replay of the call will be available through Tuesday, August 10, 2010. The replay may be accessed by dialing 1-800-642-1687 or 1-706-645-9291. The replay access code is 87731569. The call will also be archived at www.mgmresorts.com and at http://www.videonewswire.com/event.asp?id=70960.

(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 will depend 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 Resorts International (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 four other properties in Nevada, Illinois and Macau. The Company's 50% economic interest in Borgata Hotel Casino Spa in Atlantic City, which is held in trust, is currently offered for sale. CityCenter, an unprecedented urban resort destination on the Las Vegas Strip featuring its centerpiece ARIA Resort & Casino, is a joint venture between MGM Resorts International and Infinity World Development Corp, a subsidiary of Dubai World. Other major holdings include Bellagio, MGM Grand, Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor, Excalibur, and Circus Circus. MGM Hospitality has entered into management agreements for casino and non-casino resorts throughout the world. MGM Resorts International supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM Resorts International has received numerous awards and recognitions for its industry-leading Diversity Initiative, its community philanthropy programs and the Company’s commitment to sustainable development and operations. For more information about MGM Resorts International, please visit the Company's Web site at http://www.mgmresorts.com.

Statements in this release which are not historical facts are “forward looking” statements and “safe harbor statements” within the meaning of Section 21E of the U.S. the Securities Exchange Act of 1934, as amended, and other related laws 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. We have based those forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding the Company’s expectations with regard to convention business in 2010 and 2011, and reporting the second quarter 2010 results described in this release. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which we operate and competition with other destination travel locations throughout the United States and the world. In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

		Three Months Ended			Six Months Ended
		June 30, 2010	June 30, 2009		June 30, 2010	June 30, 2009
Revenues:
	Casino	$ 589,392		$ 625,570	$ 1,200,149	$ 1,290,297
	Rooms	345,219		350,295	659,122	705,339
	Food and beverage	360,217		357,859	676,373	696,256
	Entertainment	123,935		123,373	240,617	241,430
	Retail	51,062		54,311	94,951	102,260
	Other	137,060		130,529	257,839	254,219
	Reimbursed costs	90,361		13,273	183,684	26,956
		1,697,246		1,655,210	3,312,735	3,316,757
	Less: Promotional allowances	(159,551)		(161,055)	(317,648)	(323,807)
		1,537,695		1,494,155	2,995,087	2,992,950
Expenses:
	Casino	346,367		349,831	692,312	725,348
	Rooms	108,009		106,147	208,755	216,974
	Food and beverage	204,675		199,032	387,287	393,359
	Entertainment	90,261		88,622	181,257	176,364
	Retail	30,579		34,455	58,578	66,076
	Other	84,127		72,222	162,154	142,345
	Reimbursed costs	90,361		13,273	183,684	26,956
	General and administrative	282,404		273,617	558,458	534,857
	Corporate expense	31,950		43,006	56,828	67,367
	Preopening and start-up expenses	537		9,410	4,031	17,481
	Property transactions, net	1,126,282		3,248	1,126,971	(191,877)
	Depreciation and amortization	164,766		174,368	327,900	351,226
		2,560,318		1,367,231	3,948,215	2,526,476

Income (loss) from unconsolidated affiliates		(26,194)		4,175	(107,112)	19,724

Operating income (loss)		(1,048,817)		131,099	(1,060,240)	486,198

Non-operating income (expense):
	Interest income	876		6,296	1,642	10,678
	Interest expense, net	(291,169)		(201,287)	(555,344)	(372,923)
	Non-operating items from unconsolidated affiliates	(31,574)		(12,314)	(54,924)	(23,445)
	Other, net	7,713		(234,181)	148,802	(235,519)
		(314,154)		(441,486)	(459,824)	(621,209)

Loss before income taxes		(1,362,971)		(310,387)	(1,520,064)	(135,011)
	Benefit for income taxes	479,495		97,812	539,847	27,635

Net loss		$ (883,476)		$ (212,575)	$ (980,217)	$ (107,376)

Per share of common stock:
	Basic:
	Net loss per share	$ (2.00)		$ (0.60)	$ (2.22)	$ (0.34)


	Weighted average shares outstanding	441,297		352,457	441,269	314,718


	Diluted:
	Net loss per share	$ (2.00)		$ (0.60)	$ (2.22)	$ (0.34)


	Weighted average shares outstanding	441,297		352,457	441,269	314,718

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

			June 30, 2010	December 31, 2009

ASSETS
Current assets:
	Cash and cash equivalents		$ 1,013,208	$ 2,056,207
	Accounts receivable, net		363,031	368,474
	Inventories		96,805	101,809
	Income tax receivable		194,474	384,555
	Deferred income taxes		34,901	38,487
	Prepaid expenses and other		89,537	103,969
		Total current assets	1,791,956	3,053,501

Property and equipment, net			14,814,594	15,069,952

Other assets:
	Investments in and advances to unconsolidated affiliates		2,118,498	3,611,799
	Goodwill		86,353	86,353
	Other intangible assets, net		343,192	344,253
	Other long-term assets, net		832,954	352,352
		Total other assets	3,380,997	4,394,757
			$ 19,987,547	$ 22,518,210


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
	Accounts payable		$ 117,463	$ 173,719
	Current portion of long-term debt		-	1,079,824
	Accrued interest on long-term debt		221,447	206,357
	Other accrued liabilities		856,077	923,701
		Total current liabilities	1,194,987	2,383,601

Deferred income taxes			2,653,470	3,031,303
Long-term debt			13,046,639	12,976,037
Other long-term obligations			243,293	256,837
Stockholders' equity:
	Common stock, $.01 par value: authorized 600,000,000 shares,
	issued 441,314,885 and 441,222,251 shares and outstanding
	441,314,885 and 441,222,251 shares		4,413	4,412
	Capital in excess of par value		3,457,200	3,497,425
	Retained earnings (accumulated deficit)		(609,685)	370,532
	Accumulated other comprehensive loss		(2,770)	(1,937)
		Total stockholders' equity	2,849,158	3,870,432
			$ 19,987,547	$ 22,518,210

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

		Three Months Ended		Six Months Ended
		June 30, 2010	June 30, 2009	June 30, 2010	June 30, 2009
	Bellagio	$ 248,556	$ 268,161	$ 497,603	$ 532,581
	MGM Grand Las Vegas	252,191	244,094	476,435	470,759
	Mandalay Bay	192,637	193,626	359,830	368,172
	The Mirage	136,194	153,623	271,686	300,976
	Luxor	81,135	89,171	157,386	174,429
	Treasure Island (1)	-	-	-	66,329
	New York-New York	61,672	66,512	121,594	130,888
	Excalibur	65,829	70,865	124,934	132,493
	Monte Carlo	57,930	50,499	110,308	101,103
	Circus Circus Las Vegas	47,724	53,991	89,683	100,806
	MGM Grand Detroit	132,603	128,097	272,527	264,612
	Beau Rivage	85,127	82,434	167,123	165,640
	Gold Strike Tunica	37,493	37,925	74,490	78,564
	Management operations	102,287	21,919	206,130	43,823
	Other operations	36,317	33,238	65,358	61,775
		$ 1,537,695	$ 1,494,155	$ 2,995,087	$ 2,992,950


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA
(In thousands)
(Unaudited)

		Three Months Ended		Six Months Ended
		June 30, 2010	June 30, 2009	June 30, 2010	June 30, 2009
	Bellagio	$ 57,313	$ 76,210	$ 119,279	$ 144,460
	MGM Grand Las Vegas	52,107	51,950	90,593	97,313
	Mandalay Bay	40,342	49,185	65,742	91,837
	The Mirage	23,219	32,233	48,644	62,098
	Luxor	17,578	21,454	30,341	40,808
	Treasure Island (1)	-	-	-	12,729
	New York-New York	19,551	23,155	37,618	43,597
	Excalibur	18,410	21,228	33,277	37,964
	Monte Carlo	9,659	6,435	16,108	28,242
	Circus Circus Las Vegas	5,531	10,827	7,224	17,108
	MGM Grand Detroit	37,465	33,617	77,970	74,169
	Beau Rivage	16,700	17,290	33,403	34,859
	Gold Strike Tunica	9,825	11,586	19,886	25,431
	Management operations	(3,704)	4,047	(7,566)	8,911
	Other operations	1,227	3,225	139	1,708
	Wholly-owned operations	305,223	362,442	572,658	721,234
	CityCenter (50%)	(55,562)	(2,005)	(174,173)	(2,870)
	Macau (50%)	18,694	(5,106)	41,793	(8,691)
	Other unconsolidated resorts	10,803	11,517	25,560	31,685
		$ 279,158	$ 366,848	$ 465,838	$ 741,358

	(1) Treasure Island was sold in March 2009.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2010

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

$ 33,267

$ -

$ 5

$ 24,041

$ 57,313

MGM Grand Las Vegas

32,896

19,211

52,107

Mandalay Bay

16,868

659

22,815

40,342

The Mirage

3,612

(139)

19,746

23,219

Luxor

7,134

(10)

10,454

17,578

New York-New York

6,417

6,081

7,053

19,551

Excalibur

12,565

5,845

18,410

Monte Carlo

3,426

6,233

9,659

Circus Circus Las Vegas

225

5,213

5,531

MGM Grand Detroit

27,312

10,153

37,465

Beau Rivage

4,404

12,296

16,700

Gold Strike Tunica

7,375

(1,100)

3,550

9,825

Management operations

(7,274)

3,570

(3,704)

Other operations

(964)

537

1,649

1,227

Wholly-owned operations

147,131

537

5,726

151,829

305,223

CityCenter (50%)

(55,562)

Macau (50%)

18,694

Other unconsolidated resorts

10,803

121,066

537

5,726

151,829

279,158

Stock compensation

(8,002)

Corporate

(1,161,881)

1,120,556

12,937

(28,388)

$ (1,048,817)

$ 537

$ 1,126,282

$ 164,766

$ 242,768

Three Months Ended June 30, 2009

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

$ 47,292

$ -

$ 28,918

$ 76,210

MGM Grand Las Vegas

28,229

(9)

23,730

51,950

Mandalay Bay

24,486

562

(12)

24,149

49,185

The Mirage

15,736

16,440

32,233

Luxor

11,281

(6)

10,179

21,454

Treasure Island (1)

New York-New York

15,456

237

7,462

23,155

Excalibur

15,382

5,841

21,228

Monte Carlo

904

(4)

5,535

6,435

Circus Circus Las Vegas

5,092

(111)

5,846

10,827

MGM Grand Detroit

22,928

10,689

33,617

Beau Rivage

4,894

157

12,239

17,290

Gold Strike Tunica

7,662

3,924

11,586

Management operations

1,581

2,466

4,047

Other operations

1,696

1,523

3,225

Wholly-owned operations

202,619

562

320

158,941

362,442

CityCenter (50%)

(10,680)

8,675

(2,005)

Macau (50%)

(5,106)

Other unconsolidated resorts

11,344

173

11,517

198,177

9,410

320

158,941

366,848

Stock compensation

(9,023)

Corporate

(58,055)

2,928

15,427

(39,700)

$ 131,099

$ 9,410

$ 3,248

$ 174,368

$ 318,125

(1) Treasure Island was sold in March 2009.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2010

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

$ 70,831

$ -

$ (107)

$ 48,555

$ 119,279

MGM Grand Las Vegas

51,279

39,314

90,593

Mandalay Bay

18,735

659

46,348

65,742

The Mirage

13,431

(139)

35,352

48,644

Luxor

8,571

(10)

21,780

30,341

New York-New York

17,430

6,095

14,093

37,618

Excalibur

20,803

784

11,690

33,277

Monte Carlo

3,882

12,226

16,108

Circus Circus Las Vegas

(3,553)

225

10,552

7,224

MGM Grand Detroit

57,667

20,303

77,970

Beau Rivage

8,818

24,582

33,403

Gold Strike Tunica

13,804

(1,100)

7,182

19,886

Management operations

(14,467)

6,901

(7,566)

Other operations

(3,493)

537

3,090

139

Wholly-owned operations

263,738

537

6,415

301,968

572,658

CityCenter (50%)

(177,667)

3,494

(174,173)

Macau (50%)

41,793

Other unconsolidated resorts

25,560

153,424

4,031

6,415

301,968

465,838

Stock compensation

(17,557)

Corporate

(1,196,107)

1,120,556

25,932

(49,619)

$ (1,060,240)

$ 4,031

$ 1,126,971

$ 327,900

$ 398,662

Six Months Ended June 30, 2009

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

$ 86,430

$ -

$ 1,154

$ 56,876

$ 144,460

MGM Grand Las Vegas

48,388

48,849

97,313

Mandalay Bay

43,132

752

47,950

91,837

The Mirage

28,790

296

33,012

62,098

Luxor

19,758

271

20,779

40,808

Treasure Island (1)

12,730

(1)

12,729

New York-New York

28,774

237

14,586

43,597

Excalibur

26,130

11,832

37,964

Monte Carlo

24,206

(7,193)

11,229

28,242

Circus Circus Las Vegas

5,503

(115)

11,720

17,108

MGM Grand Detroit

52,769

21,400

74,169

Beau Rivage

10,320

157

24,382

34,859

Gold Strike Tunica

16,862

8,569

25,431

Management operations

3,852

5,059

8,911

Other operations

(1,369)

3,071

1,708

Wholly-owned operations

406,275

752

(5,107)

319,314

721,234

CityCenter (50%)

(18,784)

15,914

(2,870)

Macau (50%)

(8,691)

Other unconsolidated resorts

30,870

815

31,685

409,670

17,481

(5,107)

319,314

741,358

Stock compensation

(17,757)

Corporate

94,285

(186,770)

31,912

(60,573)

$ 486,198

$ 17,481

$ (191,877)

$ 351,226

$ 663,028

(1) Treasure Island was sold in March 2009.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(In thousands)
(Unaudited)

		Three Months Ended		Six Months Ended
		June 30, 2010	June 30, 2009	June 30, 2010	June 30, 2009

Adjusted EBITDA		$ 242,768	$ 318,125	$ 398,662	$ 663,028
Preopening and start-up expenses		(537)	(9,410)	(4,031)	(17,481)
Property transactions, net		(1,126,282)	(3,248)	(1,126,971)	191,877
Depreciation and amortization		(164,766)	(174,368)	(327,900)	(351,226)
Operating income (loss)		(1,048,817)	131,099	(1,060,240)	486,198

Non-operating income (expense):
Interest expense, net		(291,169)	(201,287)	(555,344)	(372,923)
Other		(22,985)	(240,199)	95,520	(248,286)
		(314,154)	(441,486)	(459,824)	(621,209)

Loss before income taxes		(1,362,971)	(310,387)	(1,520,064)	(135,011)
Benefit for income taxes		479,495	97,812	539,847	27,635
Net loss		$ (883,476)	$ (212,575)	$ (980,217)	$ (107,376)


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP
(Unaudited)

		Three Months Ended		Six Months Ended
		June 30, 2010	June 30, 2009	June 30, 2010	June 30, 2009
	Bellagio
	Occupancy %	94.7%	95.6%	92.8%	94.7%
	Average daily rate (ADR)	$209	$200	$204	$207
	Revenue per available room (REVPAR)	$198	$191	$190	$196

	MGM Grand Las Vegas
	Occupancy %	96.0%	97.3%	93.8%	95.0%
	ADR	$116	$114	$117	$115
	REVPAR	$112	$111	$110	$109

	Mandalay Bay
	Occupancy %	94.3%	94.2%	89.3%	88.6%
	ADR	$161	$161	$158	$168
	REVPAR	$151	$151	$141	$149

	The Mirage
	Occupancy %	94.8%	96.1%	92.0%	94.0%
	ADR	$124	$127	$125	$131
	REVPAR	$117	$122	$115	$123

	Luxor
	Occupancy %	91.7%	92.3%	88.5%	90.3%
	ADR	$77	$81	$77	$83
	REVPAR	$70	$75	$68	$75

	New York-New York
	Occupancy %	94.0%	93.4%	91.6%	92.6%
	ADR	$92	$96	$94	$98
	REVPAR	$87	$90	$86	$91

	Excalibur
	Occupancy %	92.7%	94.7%	86.9%	86.8%
	ADR	$57	$60	$58	$63
	REVPAR	$53	$57	$50	$55

	Monte Carlo
	Occupancy %	93.9%	93.5%	89.4%	90.6%
	ADR	$79	$85	$79	$86
	REVPAR	$74	$80	$71	$78

	Circus Circus Las Vegas
	Occupancy %	82.1%	90.4%	74.9%	83.9%
	ADR	$42	$43	$44	$45
	REVPAR	$35	$39	$33	$37

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months
Ended

Six Months
Ended

June 30,
2010

Aria

$ 156,864

$ 316,497

Vdara

10,564

17,770

Crystals

7,515

13,770

Mandarin Oriental

8,014

14,058

Resort operations

182,957

362,095

Residential operations

217,728

298,452

$ 400,685

$ 660,547

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)

Three Months
Ended

Six Months
Ended

June 30,
2010

Adjusted EBITDA

$ 8,781

$ 62

Preopening and start-up expenses

(6,202)

Property transactions, net

(57,084)

(228,098)

Depreciation and amortization

(79,709)

(149,183)

Operating loss

(128,012)

(383,421)

Non-operating income (expense):

Interest expense, net

(57,239)

(108,724)

Other

(1,146)

(4,721)

(58,385)

(113,445)

Net loss

$ (186,397)

$ (496,866)

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2010

Operating loss

Preopening and
start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Aria

$ (75,382)

$ -

$ 58,244

$ (17,138)

Vdara

(11,320)

11,062

(258)

Crystals

(3,511)

5,552

2,041

Mandarin Oriental

(5,941)

3,964

(1,977)

Resort operations

(96,154)

78,822

(17,332)

Residential operations

(22,907)

57,084

303

34,480

Development and administration

(8,951)

584

(8,367)

$ (128,012)

$ -

$ 57,084

$ 79,709

$ 8,781

Six Months Ended June 30, 2010

Operating loss

Preopening and
start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Aria

$ (141,131)

$ -

$ 112,096

$ (29,035)

Vdara

(21,529)

17,123

(4,406)

Crystals

(7,247)

10,414

3,167

Mandarin Oriental

(15,694)

7,754

(7,940)

Resort operations

(185,601)

147,387

(38,214)

Residential operations

(177,592)

228,098

606

51,112

Development and administration

(20,228)

6,202

1,190

(12,836)

$ (383,421)

$ 6,202

$ 228,098

$ 149,183

$ 62

SOURCE MGM Resorts International

For further information: Investment Community, Daniel J. D’Arrigo, Executive Vice President, Chief Financial Officer, and Treasurer, +1-702-693-8895, or News Media, Alan M. Feldman, Senior Vice President, Public Affairs, +1-702-650-6947, both of MGM Resorts International

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