MGM Resorts International Reports Second Quarter Results

August 08, 2011
Completes MGM China IPO and increases stake to 51%; transaction results in $3.5 billion gain

LAS VEGAS, Aug. 8, 2011 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today reported financial results for the second quarter ended June 30, 2011.  Diluted earnings per share attributable to MGM Resorts International was $6.22 per share compared to a loss of $2.00 per share in the prior year second quarter. The current year results include a gain of $3.5 billion (or $6.30 per share) as a result of acquiring a controlling interest in MGM China Holdings Limited (“MGM China”), which the Company began consolidating as of June 3, 2011. The prior year results include a 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.

Key results for the 2011 second quarter included the following:

  • Consolidated net revenue for the second quarter was $1.8 billion, up 17% over the prior year; the current quarter included net revenue related to MGM China for the period of consolidation (June 3, 2011 through June 30, 2011) of $193 million;
  • Net revenue attributable to the Company’s wholly owned domestic resorts segment was $1.5 billion, an increase of 4% compared to the prior year quarter. Rooms revenue increased 9% with a 10% increase in REVPAR(1) at the Company’s Las Vegas Strip resorts;
  • Consolidated operating income for the second quarter of 2011 was $3.7 billion compared to a $1.0 billion operating loss in the second quarter of 2010, affected by the MGM China transaction gain in the current quarter and an impairment charge related to the Company’s investment in CityCenter in the prior year quarter;  
  • Adjusted EBITDA(2) was $366 million in the 2011 quarter, a 51% increase compared to $243 million in the 2010 quarter, primarily due to strong performances at the Company’s Las Vegas resorts and MGM Macau;
  • The Company’s wholly owned domestic resorts segment earned Adjusted Property EBITDA of $331 million, up 7% compared to $309 million in the prior year quarter, despite a lower table games hold percentage in the current quarter and an approximately $12 million impact related to the state mandated closure of Gold Strike Tunica in May 2011;
  • MGM China reported Adjusted Property EBITDA of $170 million compared to $61 million in the prior year second quarter; and
  • CityCenter Adjusted Property EBITDA for resort operations increased to $64 million and was positively affected by a higher than normal table games hold percentage.

“We have shown growth in year over year cash flows throughout the first half and expect those trends will continue. We believe the foundation of the Las Vegas recovery is solid and our business is building,” said Jim Murren, MGM Resorts International Chairman and CEO. “MGM Macau had another record quarter and the acquisition of a controlling interest in MGM China marks an important step in expanding our global operations and profitability.”

Certain Items Affecting Second Quarter Results

In addition to the consolidation of MGM China, the following table lists items that affect the comparability of the current and prior year quarterly results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):

Three months ended June 30,


2011


2010

Property transactions, net:





   Investment in CityCenter non-cash impairment charge

$

$

(1.64)

   Other property transactions, net



(0.01)

Gain on MGM China transaction


6.30


Income (loss) from unconsolidated affiliates:





   CityCenter residential non-cash impairment charge


(0.03)


(0.04)

   CityCenter forfeited residential deposits income



0.04



The Company recognized a tax benefit during the quarter despite having positive pre-tax income as no income taxes were provided on the MGM China gain.  

Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts increased 1% compared to the prior year quarter. The overall table games hold percentage in the second quarter of 2011 was below the low end of the Company’s normal range of 19% to 23%. The overall table games hold percentage in the second quarter of 2010 was near the low end of the Company’s normal range which affected Adjusted Property EBITDA by approximately $27 million when compared to the mid point of the Company’s normal range.  Slots revenue increased 4% compared to the prior year quarter, including an increase of 7% at the Company’s Las Vegas Strip resorts.

Rooms revenue increased 9% with Las Vegas Strip REVPAR up 10%.  The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

Three months ended June 30,


2011


2010

Occupancy %


94%


93%

Average Daily Rate (ADR)

$

126

$

115

Revenue per Available Room (REVPAR)

$

118

$

107



Adjusted Property EBITDA was $331 million in the 2011 quarter, a 7% increase compared to $309 million in the 2010 quarter.  Operating income for the second quarter of 2011 was $194 million compared to $155 million in the second quarter of 2010.  

MGM China

As previously announced, MGM China completed its initial public offering of shares on The Stock Exchange of Hong Kong Limited on June 3, 2011 and the Company acquired an additional 1% interest in MGM China, which owns the MGM Macau resort and casino. This acquisition increased the Company’s ownership interest to 51% and, as a result, the Company began consolidating MGM China as of June 3, 2011. Prior to June 3, 2011 the results of MGM Macau were accounted for under the equity method of accounting.

The acquisition of the controlling interest was accounted for as a business combination and the Company recognized 100% of the assets, liabilities, and noncontrolling interests of MGM China at fair value at the date of acquisition. The fair value of the equity interests of MGM China was determined by the IPO transaction price and equaled approximately $7.5 billion. The fair value was allocated to the assets acquired and liabilities assumed in the transaction including identifiable intangible assets and goodwill. The carrying value of the Company’s equity method investment was significantly less than its share of the fair value of MGM China at the acquisition date, resulting in the Company recognizing a $3.5 billion gain on the acquisition in current earnings.

The schedules accompanying this release provide pro forma information for MGM China, presented for the three and six month periods ended June 30, 2011 and 2010, as if the acquisition of the Company’s controlling interest occurred as of the beginning of each period presented. On a pro forma basis the following are the key results for MGM China:

  • MGM China earned net revenues of $668 million for the second quarter of 2011 compared to $307 million in the second quarter of 2010, primarily due to an increase in VIP table games turnover of 110% and a 21% increase in main floor table games drop. VIP table games hold percentage was slightly above our expected range of 2.7% to 3.0% ;
  • Adjusted Property EBITDA increased to $170 million, a 177% increase compared to the second quarter of 2010 and included approximately $3 million of expenses related to the branding agreement between MGM China and an entity jointly owned by the Company and Ms. Pansy Ho; and
  • Depreciation and amortization expense in both the current and prior year quarter includes amortization of approximately $75 million related to intangible assets recognized in the Company’s accounting for its acquisition and resulting consolidation.

Income (Loss) from Unconsolidated Affiliates

The Company reported income from unconsolidated affiliates of $32 million in the second quarter of 2011 compared to a loss of $26 million in the prior year period. The following table summarizes information related to the Company’s income (loss) from unconsolidated affiliates:

Three months ended June 30,


2011


2010



(In thousands)

CityCenter


$         (32,483)


$         (55,562)

MGM Macau (through June 2, 2011)


53,539


18,694

Other


10,971


10,674



$         32,027


$         (26,194)



The Company’s share of CityCenter’s operating losses in both periods includes the effect of residential inventory impairment charges, which equaled $26 million and $29 million in the three months ending June 30, 2011 and 2010, respectively.

Results for CityCenter Holdings, LLC for the second quarter of 2011 include the following (see schedules accompanying this release for further detail on CityCenter’s second quarter results):

  • Net revenue from resort operations increased 50% to $275 million compared to $183 million in the prior year quarter;
  • Aria’s net revenue increased 48% to $233 million;
  • Aria’s Adjusted Property EBITDA was $53 million.  Aria’s hold percentage was above the high end of its normal range in the current quarter which positively impacted Adjusted Property EBITDA by approximately $18 million;
  • Aria’s occupancy percentage was 90% and its ADR was $202, resulting in REVPAR of $181, a 28% increase compared to the prior year second quarter;
  • Vdara earned $5 million in Adjusted Property EBITDA;
  • Crystals earned $6 million in Adjusted Property EBITDA; and
  • CityCenter’s residential operations recognized impairment charges of $53 million related to its residential inventory during the second quarter.

Financial Position

At June 30, 2011, the Company had approximately $922 million of cash and cash equivalents, including $417 million of cash at MGM China.  At June 30, 2011, the Company had approximately $12.8 billion of indebtedness (with a carrying value of $12.6 billion) including $2.3 billion of borrowings outstanding under the MGM Resorts senior credit facility and $591 million of borrowings outstanding on the MGM Macau credit facility.  Available borrowing capacity under the MGM Resorts senior credit facility at June 30, 2011 was approximately $1.2 billion.

On June 17, 2011, the Company issued $300 million in aggregate principal of its 4.25% convertible senior notes due 2015 to an entity owned by Ms. Pansy Ho at a premium, with proceeds to the Company of approximately $311 million.

“As a result of our increasing cash flows during the first half of the year and the consolidation of MGM China, our balance sheet is significantly stronger,” said Dan D’Arrigo, MGM Resorts International Executive Vice President and CFO.  “We remain focused on maximizing free cash flow and investment opportunities to drive future growth and de-lever our balance sheet.”

Conference Call Details

MGM Resorts International will host a conference call at 4:30 p.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the investors section or by calling 1-800-526-8531 for Domestic callers and 1-706-758-3659 for International callers.  The conference call access code is 82287304.  A replay of the call will be available through Monday, August 15, 2011. The replay may be accessed by dialing 1-800-642-1687 or 1-706-645-9291. The replay access code is 82287304. 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, and the gain on the MGM China transaction.  “Adjusted Property EBITDA” is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts stock option plan, which is not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted Property EBITDA for MGM China.  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 the Company’s 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.

MGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies, operating a peerless portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. In addition to its 51% interest in MGM China Holdings Limited, which owns the MGM Macau resort and casino, the Company has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three other properties in Nevada and Illinois. One of those investments is CityCenter, an unprecedented urban resort destination on the Las Vegas Strip featuring its centerpiece ARIA Resort & Casino. Leveraging MGM Resorts' unmatched amenities, the M life loyalty program delivers one-of-a-kind experiences, insider privileges and personalized rewards for guests at the Company's renowned properties nationwide. Through its hospitality management subsidiary, the Company holds a growing number of development and management agreements for casino and non-casino resort projects around the world. MGM Resorts International supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its gaming properties. The Company has been honored with 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, visit the Company's Web site at 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. 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, liquidity to pay future indebtedness and potential economic recoveries. 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,


June 30,


June 30,


June 30,



2011


2010


2011


2010

Revenues:









Casino

$    797,495


$   599,026


$ 1,387,715


$ 1,218,644


Rooms

396,791


361,030


765,128


686,706


Food and beverage

371,960


360,217


708,784


676,373


Entertainment

130,094


123,935


249,687


240,617


Retail

54,292


51,062


100,442


94,951


Other

128,826


121,249


243,049


230,255


Reimbursed costs

89,482


90,361


175,770


183,684



1,968,940


1,706,880


3,630,575


3,331,230


Less: Promotional allowances

(162,955)


(159,551)


(311,739)


(317,648)



1,805,985


1,547,329


3,318,836


3,013,582

Expenses:









Casino

485,965


356,001


836,730


710,807


Rooms

123,886


108,009


240,872


208,755


Food and beverage

215,899


204,675


414,147


387,287


Entertainment

94,505


90,261


182,716


181,257


Retail

32,479


30,579


61,638


58,578


Other

88,392


84,127


166,689


162,154


Reimbursed costs

89,482


90,361


175,770


183,684


General and administrative

301,582


282,404


571,144


558,458


Corporate expense

40,016


31,950


76,501


56,828


Preopening and start-up expenses

(316)


537


(316)


4,031


Property transactions, net

900


1,126,282


991


1,126,971


Gain on MGM China transaction

(3,496,005)


-


(3,496,005)


-


Depreciation and amortization

177,467


164,766


329,864


327,900



(1,845,748)


2,569,952


(439,259)


3,966,710










Income (loss) from unconsolidated affiliates

32,027


(26,194)


95,370


(107,112)










Operating income (loss)

3,683,760


(1,048,817)


3,853,465


(1,060,240)










Non-operating income (expense):









Interest expense

(270,224)


(291,169)


(540,138)


(555,344)


Non-operating items from unconsolidated affiliates

(28,002)


(31,574)


(68,292)


(54,924)


Other, net

(13,017)


8,589


(16,972)


150,444



(311,243)


(314,154)


(625,402)


(459,824)










Income (loss) before income taxes

3,372,517


(1,362,971)


3,228,063


(1,520,064)


Benefit for income taxes

78,174


479,495


132,757


539,847










Net income (loss)

3,450,691


(883,476)


3,360,820


(980,217)


Less: net income attributable to noncontrolling interests

(8,706)


-


(8,706)


-

Net income (loss) attributable to MGM Resorts International

$ 3,441,985


$  (883,476)


$ 3,352,114


$  (980,217)










Per share of common stock:









Basic:









Net Income (loss) attributable to MGM Resorts International    

$          7.04


$        (2.00)


$          6.86


$        (2.22)





Weighted average shares outstanding

488,609


441,297


488,574


441,269








Diluted:









Net Income (loss) attributable to MGM Resorts International        

$          6.22


$        (2.00)


$          6.09


$        (2.22)





Weighted average shares outstanding

554,890


441,297


553,690


441,269



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)






June 30,


December 31,




2011


2010







ASSETS




Current assets:





Cash and cash equivalents

$      921,553


$        498,964


Accounts receivable, net

370,075


321,894


Inventories

105,318


96,392


Income tax receivable

-


175,982


Deferred income taxes

151,044


110,092


Prepaid expenses and other

245,290


252,321



Total current assets

1,793,280


1,455,645







Property and equipment, net

15,017,905


14,554,350







Other assets:





Investments in and advances to unconsolidated affiliates

1,690,136


1,923,155


Goodwill  

2,906,755


86,353


Other intangible assets, net

5,209,866


342,804


Deposits and other assets, net

598,248


598,738



Total other assets

10,405,005


2,951,050




$ 27,216,190


$   18,961,045













LIABILITIES AND STOCKHOLDERS' EQUITY










Current liabilities:





Accounts payable

$      179,703


$        167,084


Income taxes payable

2,244


-


Accrued interest on long-term debt

200,746


211,914


Other accrued liabilities

1,202,332


867,223



Total current liabilities

1,585,025


1,246,221







Deferred income taxes

2,736,116


2,469,333

Long-term debt 

12,630,291


12,047,698

Other long-term obligations

219,484


199,248

Stockholders' equity:





Common stock, $.01 par value: authorized 1,000,000,000





shares, issued and outstanding 488,627,213 and





488,513,351 shares

4,886


4,885


Capital in excess of par value

4,077,236


4,060,826


Retained earnings (accumulated deficit)

2,285,249


(1,066,865)


Accumulated other comprehensive loss

(1,520)


(301)



Total MGM Resorts International stockholders' equity

6,365,851


2,998,545


Noncontrolling interests

3,679,423


-



Total equity

10,045,274


2,998,545




$ 27,216,190


$   18,961,045



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)










Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2011


2010


2011


2010


Bellagio

$                            278,058


$                            249,320


$                            530,008


$                            499,093


MGM Grand Las Vegas

239,452


253,354


464,581


478,668


Mandalay Bay

209,024


193,623


388,359


361,734


The Mirage

144,425


137,144


292,923


273,526


Luxor

84,442


81,508


164,217


158,128


New York-New York

68,722


62,404


133,698


122,727


Excalibur

67,478


66,087


128,510


125,390


Monte Carlo

65,695


58,369


128,281


111,179


Circus Circus Las Vegas

50,441


48,278


93,135


90,635


MGM Grand Detroit

142,229


133,464


286,140


274,214


Beau Rivage

90,615


86,330


171,735


169,573


Gold Strike Tunica

30,972


38,421


68,070


76,369


Other resort operations

33,755


33,429


62,081


62,905


 Wholly owned domestic resorts

1,505,308


1,441,731


2,911,738


2,804,141


MGM China(1)

192,984


-


192,984


-


Management and other operations

107,693


105,598


214,114


209,441



$                         1,805,985


$                         1,547,329


$                         3,318,836


$                         3,013,582










 (1) Represents the net revenues of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through June 30, 2011.  



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)










Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2011


2010


2011


2010


Bellagio

$                              77,370


$                              57,313


$                            131,271


$                            119,279


MGM Grand Las Vegas

35,557


52,107


72,425


90,593


Mandalay Bay

51,601


40,342


88,045


65,742


The Mirage

24,340


23,219


56,739


48,644


Luxor

18,841


17,578


38,955


30,341


New York-New York

22,223


19,551


43,351


37,618


Excalibur

18,369


18,410


34,511


33,277


Monte Carlo

15,644


9,659


29,404


16,108


Circus Circus Las Vegas

7,053


5,531


11,626


7,224


MGM Grand Detroit

42,163


37,465


85,696


77,970


Beau Rivage

19,288


16,700


32,424


33,403


Gold Strike Tunica

(1,693)


9,825


7,755


19,886


Other resort operations

630


1,088


(854)


-


 Wholly owned domestic resorts

331,386


308,788


631,348


580,085


MGM China(1)

46,422


-


46,422


-


MGM Macau (50%)(2)

53,539


18,694


115,219


41,793


CityCenter (50%)(3)

(32,483)


(55,562)


(38,306)


(174,173)


Other unconsolidated resorts(3)

10,971


10,803


18,457


25,560


Management and other operations

913


(3,565)


1,522


(7,427)



$                            410,748


$                            279,158


$                            774,662


$                            465,838










 (1) Represents Adjusted EBITDA for MGM China for the period  from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through June 30, 2011.    

 (2) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences for the three and six months ended June 30, 2010 and the approximately two and five months ended June 2, 2011.  

 (3) Represents the Company's share of operating income (loss) before preopening expense, adjusted for the effect of certain basis differences.    



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, 2011









Operating

income (loss)


Preopening and

start-up

expenses


Gain on MGM

China transaction

& Property

transactions, net


Depreciation

and

amortization


Adjusted

EBITDA


Bellagio

$                  52,732


$                     -


$                                       317


$                24,321


$                77,370


MGM Grand Las Vegas

16,324


-


-


19,233


35,557


Mandalay Bay

29,810


-


16


21,775


51,601


The Mirage

10,395


-


11


13,934


24,340


Luxor

9,349


-


6


9,486


18,841


New York-New York

15,999


-


-


6,224


22,223


Excalibur

13,105


-


210


5,054


18,369


Monte Carlo

9,516


-


28


6,100


15,644


Circus Circus Las Vegas

2,295


-


(8)


4,766


7,053


MGM Grand Detroit

32,139


-


269


9,755


42,163


Beau Rivage

8,217


-


19


11,052


19,288


Gold Strike Tunica

(5,063)


-


-


3,370


(1,693)


Other resort operations

(601)


-


24


1,207


630


 Wholly owned domestic resorts

194,217


-


892


136,277


331,386


MGM China

19,448


-


13


26,961


46,422


MGM Macau (50%)

53,539


-


-


-


53,539


CityCenter (50%)

(32,483)


-


-


-


(32,483)


Other unconsolidated resorts

10,971


-


-


-


10,971


Management and other operations

(2,296)


(316)


(5)


3,530


913



243,396


(316)


900


166,768


410,748


Stock compensation

(8,995)


-


-


-


(8,995)


Corporate

3,449,359


-


(3,496,005)


10,699


(35,947)



$             3,683,760


$               (316)


$                            (3,495,105)


$              177,467


$              365,806















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

93


-


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


Other resort operations

(295)


-


5


1,378


1,088


 Wholly owned domestic resorts

155,074


-


5,726


147,988


308,788


MGM Macau (50%)

18,694


-


-


-


18,694


CityCenter (50%)

(55,562)


-


-


-


(55,562)


Other unconsolidated resorts

10,803


-


-


-


10,803


Management and other operations

(7,943)


537


-


3,841


(3,565)



121,066


537


5,726


151,829


279,158


Stock compensation

(8,002)


-


-


-


(8,002)


Corporate

(1,161,881)


-


1,120,556


12,937


(28,388)



$            (1,048,817)


$                537


$                        1,126,282


$              164,766


$              242,768



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, 2011





















Operating

income (loss)


Preopening and

start-up

expenses


Gain on MGM

China transaction

& Property

transactions, net


Depreciation

and

amortization


Adjusted

EBITDA


Bellagio

$                  81,546


$                     -


$                                   317


$                49,408


$              131,271


MGM Grand Las Vegas

33,892


-


-


38,533


72,425


Mandalay Bay

44,052


-


16


43,977


88,045


The Mirage

28,415


-


39


28,285


56,739


Luxor

19,824


-


6


19,125


38,955


New York-New York

31,282


-


(85)


12,154


43,351


Excalibur

24,053


-


210


10,248


34,511


Monte Carlo

17,481


-


28


11,895


29,404


Circus Circus Las Vegas

2,151


-


(8)


9,483


11,626


MGM Grand Detroit

65,829


-


372


19,495


85,696


Beau Rivage

10,150


-


58


22,216


32,424


Gold Strike Tunica

945


-


-


6,810


7,755


Other resort operations

(3,333)


-


17


2,462


(854)


 Wholly owned domestic resorts

356,287


-


970


274,091


631,348


MGM China

19,448


-


13


26,961


46,422


MGM Macau (50%)

115,219


-


-


-


115,219


CityCenter (50%)

(38,306)


-


-


-


(38,306)


Other unconsolidated resorts

18,457


-


-


-


18,457


Management and other operations

(5,289)


(316)


(5)


7,132


1,522



465,816


(316)


978


308,184


774,662


Stock compensation

(18,205)


-


-


-


(18,205)


Corporate

3,405,854


-


(3,495,992)


21,680


(68,458)



$             3,853,465


$               (316)


$                        (3,495,014)


$              329,864


$              687,999














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


-


3


24,582


33,403


Gold Strike Tunica

13,804


-


(1,100)


7,182


19,886


Other resort operations

(2,824)


-


5


2,819


-


 Wholly owned domestic resorts

278,874


-


6,415


294,796


580,085


MGM Macau (50%)

41,793


-


-


-


41,793


CityCenter (50%)

(177,667)


3,494


-


-


(174,173)


Other unconsolidated resorts

25,560


-


-


-


25,560


Management and other operations

(15,136)


537


-


7,172


(7,427)



153,424


4,031


6,415


301,968


465,838


Stock compensation

(17,557)


-


-


-


(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



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)










Three Months Ended


Six Months Ended


June 30,


June 30,


June 30,


June 30,


2011


2010


2011


2010

Adjusted EBITDA

$    365,806


$   242,768


$    687,999


$   398,662

 Preopening and start-up expenses

316


(537)


316


(4,031)

 Property transactions, net

(900)


(1,126,282)


(991)


(1,126,971)

 Gain on MGM China transaction

3,496,005


-


3,496,005


-

 Depreciation and amortization

(177,467)


(164,766)


(329,864)


(327,900)

Operating income (loss)

3,683,760


(1,048,817)


3,853,465


(1,060,240)









Non-operating income (expense):








 Interest expense

(270,224)


(291,169)


(540,138)


(555,344)

 Other, net

(41,019)


(22,985)


(85,264)


95,520


(311,243)


(314,154)


(625,402)


(459,824)









Income (loss) before income taxes

3,372,517


(1,362,971)


3,228,063


(1,520,064)

 Benefit for income taxes

78,174


479,495


132,757


539,847

Net income (loss)

3,450,691


(883,476)


3,360,820


(980,217)

 Less: net income attributable to noncontrolling interests

(8,706)


-


(8,706)


-

Net income (loss) attributable to MGM Resorts International    

$ 3,441,985


$  (883,476)


$ 3,352,114


$  (980,217)



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)











Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2011


2010


2011


2010


Bellagio









  Occupancy %

96.6%


94.7%


93.7%


92.8%


  Average daily rate (ADR)

$224


$207


$224


$202


  Revenue per available room (REVPAR)

$216


$196


$210


$188











MGM Grand Las Vegas









  Occupancy %

96.8%


96.0%


93.7%


93.8%


  ADR

$125


$116


$130


$117


  REVPAR

$121


$111


$122


$110











Mandalay Bay









  Occupancy %

95.3%


94.3%


92.3%


89.3%


  ADR

$178


$163


$177


$158


  REVPAR

$170


$154


$163


$141











The Mirage









  Occupancy %

97.5%


94.8%


95.3%


92.0%


  ADR

$145


$134


$147


$134


  REVPAR

$141


$127


$140


$123











Luxor









  Occupancy %

93.7%


91.7%


90.4%


88.5%


  ADR

$91


$85


$92


$85


  REVPAR

$85


$78


$83


$75











New York-New York









  Occupancy %

96.0%


94.0%


94.0%


91.6%


  ADR

$107


$102


$108


$102


  REVPAR

$103


$95


$102


$93











Excalibur









  Occupancy %

92.9%


92.7%


88.7%


86.9%


  ADR

$72


$66


$73


$67


  REVPAR

$67


$61


$65


$58











Monte Carlo









  Occupancy %

95.2%


93.9%


93.5%


89.4%


  ADR

$98


$89


$98


$88


  REVPAR

$94


$84


$92


$79











Circus Circus Las Vegas









  Occupancy %

78.3%


82.1%


70.5%


74.9%


  ADR

$54


$44


$56


$45


  REVPAR

$42


$36


$39


$34



CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)












Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,


2011


2010


2011


2010










Aria

$          233,001


$                        157,255


$                         458,463


$              317,344


Vdara

19,764


10,564


35,170


17,770


Crystals

11,171


7,515


22,884


13,770


Mandarin Oriental

10,924


8,014


21,245


14,058


 Resort operations

274,860


183,348


537,762


362,942


Residential operations

6,421


217,728


15,142


298,452



$          281,281


$                        401,076


$                         552,904


$              661,394



CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)










Three Months Ended


Six Months Ended


June 30,


June 30,


June 30,


June 30,


2011


2010


2011


2010









Adjusted EBITDA

$                              57,006


$                                8,781


$                            111,888


$                                     62

 Preopening and start-up expenses

-


-


-


(6,202)

 Property transactions, net

(53,338)


(57,084)


(53,356)


(228,098)

 Depreciation and amortization

(93,421)


(79,709)


(185,177)


(149,183)

Operating loss

(89,753)


(128,012)


(126,645)


(383,421)









Non-operating income (expense):








 Interest expense - sponsor notes, net

(19,171)


(22,020)


(37,607)


(44,463)

 Interest expense - other, net

(47,992)


(35,225)


(95,049)


(64,274)

 Other, net

947


(1,140)


(21,695)


(4,708)


(66,216)


(58,385)


(154,351)


(113,445)









Net loss

$                          (155,969)


$                          (186,397)


$                          (280,996)


$                          (496,866)



CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2011




















Operating loss


Preopening and

start-up

expenses


Property

transactions,

net


Depreciation

and

amortization


Adjusted

EBITDA


Aria

$           (21,035)


$                          -


$                            -


$                74,080


$                53,045


Vdara

(2,495)


-


-


7,911


5,416


Crystals

(102)


-


-


5,785


5,683


Mandarin Oriental

(4,733)


-


-


4,549


(184)


 Resort operations

(28,365)


-


-


92,325


63,960


Residential operations

(56,477)


-


52,624


949


(2,904)


Development and administration

(4,911)


-


714


147


(4,050)



$           (89,753)


$                          -


$                  53,338


$                93,421


$                57,006














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



CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2011














Operating loss


Preopening and

start-up

expenses


Property

transactions,

net


Depreciation

and

amortization


Adjusted

EBITDA


Aria

$           (33,853)


$                           -


$                            -


$              141,907


$              108,054


Vdara

(9,740)


-


-


18,374


8,634


Crystals

(2,389)


-


-


13,703


11,314


Mandarin Oriental

(9,186)


-


-


9,517


331


 Resort operations

(55,168)


-


-


183,501


128,333


Residential operations

(62,068)


-


52,624


1,430


(8,014)


Development and administration

(9,409)


-


732


246


(8,431)



$         (126,645)


$                           -


$                  53,356


$              185,177


$              111,888














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



CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)











Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2011


2010


2011


2010


Aria









  Occupancy %

89.7%


79.6%


87.7%


71.4%


  ADR

$202


$178


$201


$185


  REVPAR

$181


$142


$177


$132











Vdara









  Occupancy %

91.0%


75.2%


87.4%


64.1%


  ADR

$159


$141


$159


$146


  REVPAR

$144


$106


$139


$94



MGM CHINA (1)

SUPPLEMENTAL PRO FORMA INFORMATION

NET REVENUES AND RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)






Three Months Ended


Six Months Ended


June 30,


June 30,


June 30,


June 30,


2011


2010


2011


2010









Net revenues

$          668,292


$          306,918


$           1,264,015


$           639,033









Adjusted EBITDA (2)

$          170,074


$            61,355


$              316,429


$           131,850

 Property transactions, net

(497)


(168)


(510)


(365)

 Depreciation and amortization (3)

(87,346)


(87,605)


(174,851)


(175,381)

Operating income (loss)

82,231


(26,418)


141,068


(43,896)

 Non-operating income (expense)

(5,913)


(13,920)


(11,727)


(26,906)

Income (loss) before income taxes

76,318


(40,338)


129,341


(70,802)

 Provision for income taxes

(9,203)


(22)


(15,571)


(22)

Net income (loss)

$            67,115


$           (40,360)


$              113,770


$           (70,824)









(1) Supplemental pro forma information for MGM China is presented for the three and six month periods ended June 30, 2011 and 2010 as if management control had occurred as of the beginning of each period presented.  This information is presented on a US GAAP basis and includes the impact of certain purchase accounting adjustments. This supplemental pro forma information is provided solely for comparative purposes and does not presume to be indicative of what actual results would have been if the change in management control had been completed at the beginning of the periods presented, nor indicative of future results.

(2) Adjusted EBITDA for the three and six months ending June 30, 2011 includes expenses related to the branding agreement between MGM China and an entity jointly owned by the Company and Ms. Pansy Ho of $3 million for the period from June 3, 2011 through June 30, 2011. Prior period pro forma information does not include an expense related to the branding agreement.

(3) Depreciation and amortization for all periods presented includes the pro forma impact of the amortization of certain intangible assets recognized at fair value in purchase accounting.



SOURCE MGM Resorts International

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