MGM Resorts International Reports Third Quarter Results

November 3, 2010
Senior Credit Facility Extended to February 2014, Significantly Improving Liquidity Profile

LAS VEGAS, Nov. 3, 2010 /PRNewswire-FirstCall/ -- MGM Resorts International (NYSE: MGM) today announced its financial results for the third quarter of 2010. The Company recorded a third quarter diluted loss per share (EPS) of $0.72 compared to a loss of $1.70 per share in the prior year third quarter. The current year results include pre-tax impairment charges totaling $357 million, or $0.51 per diluted share, net of tax, including pre-tax impairment charges of $182 million related to the Company's investment in CityCenter, $46 million related to CityCenter's residential real estate inventory, and $128 million related to the Company's Borgata investment. The prior year results include pre-tax impairment charges totaling $1.17 billion, or $1.72 loss per diluted share, net of tax, including pre-tax impairment charges of $956 million related to the Company's investment in CityCenter and $203 million related to impairment of CityCenter's residential real estate under development.

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

Three months ended September 30,

2010

2009

Preopening and start-up expenses

$     --

$     (0.01)

Property transactions, net:



     Investment in CityCenter impairment charge

(0.27)

(1.40)

     Investment in Borgata impairment charge

(0.17)

--

     Other property transactions, net

(0.01)

(0.02)

Income (loss) from unconsolidated affiliates:



     CityCenter residential inventory impairment charge

(0.07)

(0.30)

     CityCenter forfeited residential deposits income

0.02

--

     Borgata insurance proceeds

--

0.02



Key operating results for the quarter included the following:

  • Net revenue, excluding reimbursed costs, decreased 3% to $1.5 billion;
  • Las Vegas Strip REVPAR(1) decreased 2% compared to the prior year quarter. Both Bellagio and Mandalay Bay recorded increases in REVPAR for the third quarter;
  • Adjusted Property EBITDA(2) attributable to wholly-owned operations was $314 million, down 13%;
  • Net revenue at the Company's regional resorts increased 3% compared to the prior year third quarter with Adjusted Property EBITDA increasing 12%;
  • MGM Macau reported its best quarter ever and earned operating income of $61 million in the third quarter of 2010 which included depreciation expense of $22 million; and
  • Aria reported Adjusted Property EBITDA of $41 million during the third quarter of 2010.

Other key events:

  • In October 2010, the Company issued 40.9 million shares of its common stock for net proceeds to the Company of approximately $512 million and issued $500 million of 10% senior notes due 2016 for net proceeds to the Company of approximately $486 million;
  • The Company used a portion of the net proceeds from the equity offering and all of the proceeds of the debt offering to effectuate the extension of its senior credit facility to February 2014.  Revolving commitments and term loans were reduced by $1.2 billion, leaving $3.6 billion of total commitments ;
  • The Company received approximately $125 million from MGM Macau during October 2010, which represents a partial repayment of principal and accrued interest on the Company's interest and non-interest bearing notes to that entity;
  • The Company recently received an offer (subject to diligence, definitive agreements and approvals) for its 50% economic interest in the Borgata Hotel Casino & Spa ("Borgata") equal to slightly in excess of $250 million, based on an enterprise value for Borgata of $1.35 billion for the entire asset; and
  • The Company expects to close the sale of its long-term land leases and associated real property parcels underlying Borgata in November 2010, with net proceeds to the Company's New Jersey trust account of approximately $71 million.

"We continue to see the Las Vegas market stabilizing, Aria's operating performance is ramping up, and MGM Macau reported a record quarter," said Jim Murren, MGM Resorts International Chairman and CEO. "We have made significant progress on our financial position this year and have deployed several programs to better position our portfolio of resorts to benefit from a broader economic recovery going forward."

Detailed Discussion of Third Quarter Operating Results

Net revenue for the third quarter of 2010 was $1.56 billion. Excluding reimbursed costs revenue mainly related to the Company's management of CityCenter (approximately $89 million in the 2010 third quarter and $16 million in the 2009 third quarter), net revenue was $1.47 billion, a decrease of 3% from 2009.  

Third quarter casino revenue decreased 9% compared to the prior year quarter, with slots revenue down 3% for the quarter.  The Company's table games volume, excluding baccarat, decreased 7% in the quarter, while baccarat volume was down 6% compared to the prior year quarter.  The overall table games hold percentage was lower in 2010 than the prior year quarter; in the current year third quarter the hold percentage was above the midpoint of the Company's normal 18% to 22% while it was slightly above the high end of the range in the 2009 quarter.

Rooms revenue decreased 3% from the prior year. The Company achieved 93% occupancy compared to 95% in the prior year quarter with consistent ADR, which led to a 2% decrease in Las Vegas Strip REVPAR.

"Our luxury properties are leading the way, driven by improving convention mix.  Both Bellagio and Mandalay Bay recorded REVPAR increases in the third quarter," said Mr. Murren.

Operating loss for the third quarter of 2010 was $206 million, which includes the CityCenter investment impairment, the Borgata impairment, and the Company's share of the CityCenter residential impairment charge discussed further below. Prior year operating loss was $963 million and included an impairment charge related to the Company's investment in CityCenter and the Company's share of a CityCenter residential real estate impairment charge. Adjusted Property EBITDA attributable to wholly-owned operations was $314 million in the 2010 quarter, down 13% compared to the prior year.

Impairment Charges

As of September 30, 2010, the Company recognized an increase of $232 million in its total net obligation under its CityCenter completion guarantee, and a corresponding increase in its investment in CityCenter.  The increase primarily reflects a revision to prior estimates based on the Company's assessment of the most current information derived from the CityCenter close-out and litigation processes.  This accrual does not reflect certain potential recoveries that CityCenter is pursuing as part of the litigation process. The Company reviewed its investment in CityCenter due to such increase and recorded a pre-tax impairment charge of approximately $182 million in the third quarter. This impairment charge reflects a fair value of $1.3 billion for the Company's 50% equity interest in CityCenter.

The Company recently received an offer for its 50% economic interest in Borgata based on an enterprise value of $1.35 billion for the entire asset. The Company submitted this offer to Boyd Gaming Corporation, which owns the other 50% interest, in accordance with the right of first refusal provisions included in the joint venture agreement. Subsequently, Boyd announced that it does not intend to exercise its right to first refusal in connection with such offer; therefore, the Company intends to pursue negotiations with the original bidder. Based on Borgata's September debt balances, the offer equates to slightly in excess of $250 million for the Company's 50% interest. This is less than the carrying value of the Company's investment in Borgata; therefore, the Company recorded a pre-tax impairment charge of approximately $128 million in the third quarter of 2010. The consummation of any transaction as a result of the offer is subject to negotiation of final documents, due diligence, and regulatory approval.

Loss from Unconsolidated Affiliates

The Company had a loss from unconsolidated affiliates of $7 million in the third quarter of 2010 compared to a loss of $133 million in the prior year third quarter.  The current year includes $46 million related to the Company's share of residential inventory impairment at CityCenter and the prior year included $203 million related to an impairment of CityCenter's real estate under development.

MGM Macau earned operating income of $61 million in the third quarter of 2010 which included depreciation expense of $22 million, compared to operating income of $50 million in the 2009 third quarter which included depreciation expense of $23 million.

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

  • CityCenter's net revenue was $413 million in the third quarter, including $166 million related to residential operations, of which $28 million related to forfeited residential deposits;
  • Aria's net revenue was $219 million and Adjusted Property EBITDA was $41 million.  Aria's results were positively affected by a high table games hold percentage, which increased Adjusted Property EBITDA by approximately $26 million;
  • Aria's occupancy percentage was 82% and its average daily rate was $175, resulting in REVPAR of $142; and
  • CityCenter recorded a $93 million impairment charge related to its residential inventory due to an increase in estimated final costs of the residential components and also recorded a $279 million impairment charge related to its Harmon Hotel & Spa component due to CityCenter's conclusion that it is unlikely the Harmon will be completed using the building as it now stands.  The Harmon impairment did not affect the Company's loss from unconsolidated affiliates because the Company's 50% share of the impairment charge had been previously recognized by the Company in connection with prior impairments of its investment balance.

Financial Position

At September 30, 2010, the Company had approximately $12.9 billion of indebtedness (with a carrying value of $12.6 billion), including $3.4 billion of borrowings outstanding under its senior credit facility, with available borrowing capacity under the senior credit facility of approximately $1.3 billion.

In October 2010 the Company issued 40.9 million shares of its common stock for total net proceeds to the Company of approximately $512 million.  In connection with the Company's issuance, Tracinda sold approximately 27.8 million shares of the Company's common stock.  The Company will not receive any proceeds from the sale of such common stock by Tracinda. The underwriter has the ability to purchase an additional 6.1 million shares from the Company and 4.2 million shares from Tracinda up to 30 days after the original offering to cover overallotments.

Also in October 2010, the Company issued $500 million of 10% senior notes due 2016, issued at a discount to yield 10.25%, for net proceeds to the Company of $486 million.  The notes are unsecured and otherwise rank equally in right of payment with the Company's existing and future senior indebtedness.  

The Company used the net proceeds from the issuance of the senior notes and a portion of the net proceeds from the common stock offering to effectuate the extension of its senior credit facility. Revolving commitments and term loans were reduced by $1.2 billion, leaving $3.6 billion of total commitments that will mature in February 2014.

The Company's New Jersey trust account received a distribution of approximately $105 million from Borgata during the third quarter.  The balance in the trust account was approximately $114 million at September 30, 2010.  All amounts in the trust account, including the proceeds from the sale of the Company's Borgata interest and the underlying land parcels, will be distributed to the Company upon consummation of the sale of the Company's Borgata interest.

"Our recent capital raising transactions extend our maturity profile and significantly enhance our liquidity," said Dan D'Arrigo, MGM Resorts International Executive Vice President and CFO. "Subsequent to quarter end, we have reduced our debt from $12.9 billion to $12.3 billion.  We have current availability under our senior credit facility to cover debt maturities into 2013."

Conference Call Details

MGM Resorts International will hold a conference call to discuss its third quarter results at 11:00 a.m. Eastern Time today. The call will be accessible via the Internet through www.mgmresorts.com or by calling 1-877-274-9221 for Domestic callers and 1-706-634-6528 for International callers.  The conference call ID # is 19689828.  A replay of the call will be available through Wednesday, November 10, 2010. The replay may be accessed by dialing 1-800-642-1687 or 1-706-645-9291. The replay access code is 19689828. The call will also be archived at www.mgmresorts.com.

(1) REVPAR is hotel Revenue per Available Room.

(2) "Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, and property transactions, net.  "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense.  Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. 

Management believes that while items excluded from Adjusted EBITDA and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, pre-opening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and 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.

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 future operating results and liquidity to pay future indebtedness. 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


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2010


2009


2010


2009

Revenues:









Casino

$          633,983


$          699,806


$       1,834,132


$       1,990,103


Rooms

331,424


340,165


990,546


1,045,504


Food and beverage

343,180


344,284


1,019,553


1,040,540


Entertainment

123,907


128,568


364,524


369,998


Retail

52,618


54,525


147,569


156,785


Other

145,375


122,549


403,214


376,768


Reimbursed costs

88,551


15,524


272,235


42,480



1,719,038


1,705,421


5,031,773


5,022,178


Less: Promotional allowances

(161,333)


(172,198)


(478,981)


(496,005)



1,557,705


1,533,223


4,552,792


4,526,173

Expenses:









Casino

346,806


367,720


1,039,118


1,093,068


Rooms

111,711


108,273


320,466


325,247


Food and beverage

197,836


196,778


585,123


590,137


Entertainment

91,129


91,422


272,386


267,786


Retail

32,093


33,684


90,671


99,760


Other

88,144


75,737


250,298


218,082


Reimbursed costs

88,551


15,524


272,235


42,480


General and administrative

292,456


290,766


850,914


825,623


Corporate expense

30,715


31,928


87,543


99,295


Preopening and start-up expenses

30


10,058


4,061


27,539


Property transactions, net

318,154


971,208


1,445,125


779,331


Depreciation and amortization

158,857


170,651


486,757


521,877



1,756,482


2,363,749


5,704,697


4,890,225










Loss from unconsolidated affiliates

(7,124)


(132,893)


(114,236)


(113,169)










Operating loss

(205,901)


(963,419)


(1,266,141)


(477,221)










Non-operating income (expense):









Interest income

1,142


857


2,784


11,535


Interest expense, net

(285,139)


(181,899)


(840,483)


(554,822)


Non-operating items from unconsolidated affiliates

(27,185)


(14,613)


(82,109)


(38,058)


Other, net

6,156


826


154,958


(234,693)



(305,026)


(194,829)


(764,850)


(816,038)










Loss before income taxes

(510,927)


(1,158,248)


(2,030,991)


(1,293,259)


Benefit for income taxes

192,936


407,860


732,783


435,495










Net loss

$        (317,991)


$        (750,388)


$     (1,298,208)


$        (857,764)










Per share of common stock:









Basic:









Net loss per share

$              (0.72)


$              (1.70)


$              (2.94)


$              (2.40)





Weighted average shares outstanding

441,328


441,214


441,289


357,348










Diluted:









Net loss per share

$              (0.72)


$              (1.70)


$              (2.94)


$              (2.40)





Weighted average shares outstanding

441,328


441,214


441,289


357,348



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)







September 30,


December 31,





2010


2009








ASSETS

Current assets:






Cash and cash equivalents


$          552,757


$     2,056,207


Accounts receivable, net


324,206


368,474


Inventories


93,479


101,809


Income tax receivable


180,181


384,555


Deferred income taxes


22,681


38,487


Prepaid expenses and other


115,497


103,969



Total current assets


1,288,801


3,053,501








Property and equipment, net


14,697,192


15,069,952








Other assets:






Investments in and advances to unconsolidated affiliates


2,115,760


3,611,799


Goodwill


86,353


86,353


Other intangible assets, net


342,995


344,253


Other long-term assets, net


605,271


352,352



Total other assets


3,150,379


4,394,757





$     19,136,372


$   22,518,210















LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:






Accounts payable


$          153,049


$        173,719


Current portion of long-term debt


-


1,079,824


Accrued interest on long-term debt


223,106


206,357


Other accrued liabilities


942,802


923,701



Total current liabilities


1,318,957


2,383,601








Deferred income taxes


2,400,984


3,031,303

Long-term debt


12,623,851


12,976,037

Other long-term obligations


252,209


256,837

Stockholders' equity:






Common stock, $.01 par value: authorized 600,000,000 shares,






issued 441,339,770 and 441,222,251 shares and outstanding






441,339,770 and 441,222,251 shares


4,413


4,412


Capital in excess of par value


3,465,253


3,497,425


Retained earnings (accumulated deficit)


(927,676)


370,532


Accumulated other comprehensive loss


(1,619)


(1,937)



Total stockholders' equity


2,540,371


3,870,432





$     19,136,372


$   22,518,210



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)












Three Months Ended


Nine Months Ended




September 30,


September 30,


September 30,


September 30,




2010


2009


2010


2009


Bellagio


$           269,370


$           262,436


$           766,973


$           795,017


MGM Grand Las Vegas


231,626


266,349


708,061


737,108


Mandalay Bay


185,635


185,539


545,465


553,711


The Mirage


151,653


182,376


423,339


483,352


Luxor


81,439


88,609


238,825


263,038


Treasure Island (1)


-


-


-


66,329


New York-New York


64,393


60,721


185,987


191,609


Excalibur


65,590


71,451


190,524


203,944


Monte Carlo


57,277


52,120


167,585


153,223


Circus Circus Las Vegas


52,005


54,962


141,688


155,768


MGM Grand Detroit


132,366


124,753


404,893


389,365


Beau Rivage


85,792


85,970


252,915


251,610


Gold Strike Tunica


40,389


39,493


114,879


118,057


Management operations


101,690


25,374


307,820


69,197


Other operations


38,480


33,070


103,838


94,845




$        1,557,705


$        1,533,223


$        4,552,792


$        4,526,173





















MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)












Three Months Ended


Nine Months Ended




September 30,


September 30,


September 30,


September 30,




2010


2009


2010


2009


Bellagio


$             75,858


$             61,876


$           195,137


$           206,336


MGM Grand Las Vegas


40,011


70,727


130,604


168,040


Mandalay Bay


30,435


36,222


96,177


128,059


The Mirage


31,980


54,513


80,624


116,611


Luxor


14,114


18,989


44,455


59,797


Treasure Island (1)


-


-


-


12,729


New York-New York


21,943


17,990


59,561


61,587


Excalibur


15,881


19,176


49,158


57,140


Monte Carlo


7,930


3,930


24,038


32,172


Circus Circus Las Vegas


6,126


7,753


13,350


24,861


MGM Grand Detroit


40,466


32,729


118,436


106,898


Beau Rivage


17,637


18,046


51,040


52,905


Gold Strike Tunica


11,704


11,534


31,590


36,965


Management operations


(1,554)


4,347


(9,120)


13,258


Other operations


1,893


1,704


2,032


3,412


 Wholly-owned operations


314,424


359,536


887,082


1,080,770


CityCenter (50%)


(46,420)


(204,334)


(220,593)


(207,204)


Macau (50%)


29,372


23,557


71,165


14,866


Other unconsolidated resorts


9,924


48,070


35,484


79,755




$           307,300


$           226,829


$           773,138


$           968,187











 (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 September 30, 2010











Operating
income (loss)


Preopening and
start-up
expenses


Property
transactions,
net


Depreciation
and
amortization


Adjusted
EBITDA


Bellagio


$             52,040


$                       -


$                  (18)


$           23,836


$       75,858


MGM Grand Las Vegas


20,855


-


(45)


19,201


40,011


Mandalay Bay


5,023


-


2,181


23,231


30,435


The Mirage


16,104


-


450


15,426


31,980


Luxor


3,666


-


11


10,437


14,114


New York-New York


14,307


-


763


6,873


21,943


Excalibur


10,300


-


-


5,581


15,881


Monte Carlo


(1,954)


-


3,765


6,119


7,930


Circus Circus Las Vegas


1,024


-


4


5,098


6,126


MGM Grand Detroit


30,724


-


(484)


10,226


40,466


Beau Rivage


4,950


-


348


12,339


17,637


Gold Strike Tunica


7,532


-


549


3,623


11,704


Management operations


(4,986)


-


-


3,432


(1,554)


Other operations


(53)


30


(1)


1,917


1,893


 Wholly-owned operations


159,532


30


7,523


147,339


314,424


CityCenter (50%)


(46,420)


-


-


-


(46,420)


Macau (50%)


29,372


-


-


-


29,372


Other unconsolidated resorts


9,924


-


-


-


9,924




152,408


30


7,523


147,339


307,300


Stock compensation


(8,599)


-


-


-


(8,599)


Corporate


(349,710)


-


310,631


11,518


(27,561)




$            (205,901)


$                    30


$            318,154


$           158,857


$       271,140













Three Months Ended September 30, 2009
















Operating
income (loss)


Preopening and
start-up
expenses


Property
transactions,
net


Depreciation
and
amortization


Adjusted
EBITDA


Bellagio


$           29,495


$                       -


$            1,206


$          31,175


$       61,876


MGM Grand Las Vegas


50,634


-


5


20,088


70,727


Mandalay Bay


13,822


145


(73)


22,328


36,222


The Mirage


37,368


-


17


17,128


54,513


Luxor


10,542


(759)


(12)


9,218


18,989


New York-New York


6,775


-


1,394


9,821


17,990


Excalibur


13,413


-


(14)


5,777


19,176


Monte Carlo


(5,685)


-


2,456


7,159


3,930


Circus Circus Las Vegas


1,910


-


80


5,763


7,753


MGM Grand Detroit


17,889


-


5,906


8,934


32,729


Beau Rivage


5,819


-


-


12,227


18,046


Gold Strike Tunica


7,774


-


-


3,760


11,534


Management operations


847


-


2,473


1,027


4,347


Other operations


238


-


-


1,466


1,704


 Wholly-owned operations


190,841


(614)


13,438


155,871


359,536


CityCenter (50%)


(215,006)


10,672


-


-


(204,334)


Macau (50%)


23,557


-


-


-


23,557


Other unconsolidated resorts


48,070


-


-


-


48,070




47,462


10,058


13,438


155,871


226,829


Stock compensation


(9,319)


-


-


-


(9,319)


Corporate


(1,001,562)


-


957,770


14,780


(29,012)




$            (963,419)


$             10,058


$            971,208


$           170,651


$       188,498

























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)













Nine Months Ended September 30, 2010











Operating
income (loss)


Preopening and
start-up
expenses


Property
transactions,
net


Depreciation
and
amortization


Adjusted
EBITDA


Bellagio


$            122,871


$                         -


$                (125)


$           72,391


$     195,137


MGM Grand Las Vegas


72,134


-


(45)


58,515


130,604


Mandalay Bay


23,758


-


2,840


69,579


96,177


The Mirage


29,535


-


311


50,778


80,624


Luxor


12,237


-


1


32,217


44,455


New York-New York


31,737


-


6,858


20,966


59,561


Excalibur


31,103


-


784


17,271


49,158


Monte Carlo


1,928


-


3,765


18,345


24,038


Circus Circus Las Vegas


(2,529)


-


229


15,650


13,350


MGM Grand Detroit


88,391


-


(484)


30,529


118,436


Beau Rivage


13,768


-


351


36,921


51,040


Gold Strike Tunica


21,336


-


(551)


10,805


31,590


Management operations


(19,453)


-


-


10,333


(9,120)


Other operations


(3,546)


567


4


5,007


2,032


 Wholly-owned operations


423,270


567


13,938


449,307


887,082


CityCenter (50%)


(224,087)


3,494


-


-


(220,593)


Macau (50%)


71,165


-


-


-


71,165


Other unconsolidated resorts


35,484


-


-


-


35,484




305,832


4,061


13,938


449,307


773,138


Stock compensation


(26,156)


-


-


-


(26,156)


Corporate


(1,545,817)


-


1,431,187


37,450


(77,180)




$         (1,266,141)


$                 4,061


$         1,445,125


$           486,757


$       669,802













Nine Months Ended September 30, 2009
















Operating
income (loss)


Preopening and
start-up
expenses


Property
transactions,
net


Depreciation
and
amortization


Adjusted
EBITDA


Bellagio


$           115,925


$                           -


$             2,360


$           88,051


$      206,336


MGM Grand Las Vegas


99,022


-


81


68,937


168,040


Mandalay Bay


56,954


897


(70)


70,278


128,059


The Mirage


66,158


-


313


50,140


116,611


Luxor


30,300


(759)


259


29,997


59,797


Treasure Island (1)


12,730


-


(1)


-


12,729


New York-New York


35,549


-


1,631


24,407


61,587


Excalibur


39,543


-


(12)


17,609


57,140


Monte Carlo


18,521


-


(4,737)


18,388


32,172


Circus Circus Las Vegas


7,413


-


(35)


17,483


24,861


MGM Grand Detroit


70,658


-


5,906


30,334


106,898


Beau Rivage


16,139


-


157


36,609


52,905


Gold Strike Tunica


24,636


-


-


12,329


36,965


Management operations


4,699


-


2,473


6,086


13,258


Other operations


(1,131)


-


6


4,537


3,412


 Wholly-owned operations


597,116


138


8,331


475,185


1,080,770


CityCenter (50%)


(233,790)


26,586


-


-


(207,204)


Macau (50%)


14,866


-


-


-


14,866


Other unconsolidated resorts


78,940


815


-


-


79,755




457,132


27,539


8,331


475,185


968,187


Stock compensation


(27,076)


-


-


-


(27,076)


Corporate


(907,277)


-


771,000


46,692


(89,585)




$            (477,221)


$                    27,539


$         779,331


$           521,877


$       851,526













 (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


Nine Months Ended




September 30,


September 30,


September 30,


September 30,


2010


2009


2010


2009









Adjusted EBITDA


$     271,140


$     188,498


$     669,802


$     851,526

 Preopening and start-up expenses


(30)


(10,058)


(4,061)


(27,539)

 Property transactions, net


(318,154)


(971,208)


(1,445,125)


(779,331)

 Depreciation and amortization


(158,857)


(170,651)


(486,757)


(521,877)

Operating loss


(205,901)


(963,419)


(1,266,141)


(477,221)











Non-operating income (expense):









 Interest expense, net


(285,139)


(181,899)


(840,483)


(554,822)

 Other


(19,887)


(12,930)


75,633


(261,216)




(305,026)


(194,829)


(764,850)


(816,038)











Loss before income taxes


(510,927)


(1,158,248)


(2,030,991)


(1,293,259)

 Benefit for income taxes


192,936


407,860


732,783


435,495

Net loss


$   (317,991)


$   (750,388)


$(1,298,208)


$   (857,764)





















MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)













Three Months Ended


Nine Months Ended




September 30,


September 30,


September 30,


September 30,




2010


2009


2010


2009


Bellagio










  Occupancy %


94.8%  


95.7%  


93.5%  


95.0%  


  Average daily rate (ADR)


$200


$195


$203


$203


  Revenue per available room (REVPAR)


$190


$187


$190


$193












MGM Grand Las Vegas










  Occupancy %


94.6%  


97.1%  


94.1%  


95.7%  


  ADR


$108


$109


$114


$113


  REVPAR


$102


$106


$107


$108












Mandalay Bay










  Occupancy %


91.2%  


93.6%  


90.0%  


90.3%  


  ADR


$155


$147


$157


$161


  REVPAR


$142


$137


$141


$145












The Mirage










  Occupancy %


95.8%  


97.1%  


93.3%  


95.0%  


  ADR


$117


$119


$122


$127


  REVPAR


$112


$115


$114


$120












Luxor










  Occupancy %


92.1%  


94.4%  


89.7%  


91.7  %


  ADR


$73


$75


$76


$80


  REVPAR


$67


$71


$68


$74












New York-New York










  Occupancy %


93.2%  


96.7%  


92.1%  


94.0%  


  ADR


$87


$92


$91


$96


  REVPAR


$81


$89


$84


$90












Excalibur










  Occupancy %


94.9%  


95.0%  


89.6%  


89.6%  


  ADR


$54


$59


$57


$61


  REVPAR


$51


$56


$51


$55












Monte Carlo










  Occupancy %


95.5%  


95.6%  


91.4%  


92.3%  


  ADR


$74


$82


$78


$84


  REVPAR


$71


$78


$71


$78












Circus Circus Las Vegas










  Occupancy %


86.8%  


88.8%  


78.9%  


85.6%  


  ADR


$42


$43


$43


$44


  REVPAR


$37


$39


$34


$38



CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)
















Three Months
Ended


Nine Months
Ended










September 30,


September 30,










2010


2010




















Aria


$                      219,418


$                      535,915








Vdara


10,859


28,629








Crystals


9,182


22,952








Mandarin Oriental


7,470


21,528








 Resort operations


246,929


609,024








Residential operations


165,965


464,417










$                      412,894


$                   1,073,441































CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)
















Three Months
Ended


Nine Months
Ended









September 30,


September 30,










2010


2010



















Adjusted EBITDA


$                        52,357


$                        52,419







  Preopening and start-up expenses


-


(6,202)







  Property transactions, net


(372,035)


(600,133)







  Depreciation and amortization


(80,821)


(230,004)







Operating loss


(400,499)


(783,920)



















Non-operating income (expense):











  Interest expense, net


(65,618)


(174,342)







  Other


(189)


(4,910)










(65,807)


(179,252)



















Net loss


$                    (466,306)


$                    (963,172)

































CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA

(In thousands)

(Unaudited)













Three Months Ended September 30, 2010











Operating loss


Preopening and
start-up
expenses


Property
transactions,
net


Depreciation
and
amortization


Adjusted
EBITDA


Aria


$                      (19,594)


$                        -


$                        -


$                        60,965


$                        41,371


Vdara


(9,646)


-


-


9,059


(587)


Crystals


(3,158)


-


-


5,599


2,441


Mandarin Oriental


(7,935)


-


-


4,311


(3,624)


 Resort operations


(40,333)


-


-


79,934


39,601


Residential operations


(67,056)


-


92,813


308


26,065


Development and administration


(293,110)


-


279,222


579


(13,309)




$                    (400,499)


$                        -


$            372,035


$                       80,821


$                       52,357













Nine Months Ended September 30, 2010
















Operating loss


Preopening and
start-up
expenses


Property
transactions,
net


Depreciation
and
amortization


Adjusted
EBITDA


Aria


$                    (160,725)


$                        -


$                        -


$                      173,061


$                        12,336


Vdara


(31,175)


-


-


26,182


(4,993)


Crystals


(10,405)


-


-


16,013


5,608


Mandarin Oriental


(23,629)


-


-


12,065


(11,564)


 Resort operations


(225,934)


-


-


227,321


1,387


Residential operations


(244,648)


-


320,911


914


77,177


Development and administration


(313,338)


6,202


279,222


1,769


(26,145)




$                     (783,920)


$                6,202


$            600,133


$                      230,004


$                       52,419



SOURCE MGM Resorts International

For further information: Investment Community, DANIEL J. D'ARRIGO, Executive Vice President, Chief Financial Officer, +1-702-693-8895, News Media, ALAN M. FELDMAN, Senior Vice President, Public Affairs, +1-702-650-6947, both of MGM Resorts International


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