MGM Resorts International Reports Third Quarter Results

October 31, 2013
Consolidated net revenue increases 9% year over year; 24% growth in Adjusted Property EBITDA driven by strength in Macau and Las Vegas

LAS VEGAS, Oct. 31, 2013 /PRNewswire/ --  MGM Resorts International (NYSE: MGM) today reported financial results for the quarter ended September 30, 2013.  Loss per share improved to ($0.07) compared to ($0.37) in the third quarter of 2012.  Comparability of the current and prior year consolidated results was affected by certain items discussed below.

"I am pleased to report another solid quarter with double digit EBITDA growth and increased margins, led by strength at MGM China and our Las Vegas Strip properties," said Jim Murren, MGM Resorts International Chairman and CEO.  "These results are reflective of the continued market share gains from programs such as M life and our focus on international marketing strategies combined with our best in class collection of resorts and amenities."

Key results for the third quarter of 2013 include the following:

  • Consolidated net revenue increased 9% over the prior year quarter to $2.5 billion;
  • Consolidated casino revenue increased 13% over the prior year quarter;
  • Rooms revenue at wholly owned domestic resorts increased 5%, with a 3% increase in REVPAR(1) at the Company's Las Vegas Strip resorts;
  • Adjusted Property EBITDA(2) was $546 million, a 24% increase compared to the prior year quarter;
  • The Company's wholly owned domestic resorts earned Adjusted Property EBITDA of $350 million, an 8% increase compared to the prior year quarter;
  • The Company's wholly owned Las Vegas Strip resorts earned Adjusted Property EBITDA of $280 million, a 12% increase compared to the prior year quarter;
  • MGM China's Adjusted EBITDA increased 25% to $191 million;
  • CityCenter's Adjusted EBITDA related to resort operations was $62 million, a 6% increase compared to the prior year quarter; and
  • Consolidated operating income increased to $248 million compared to $137 million in the prior year quarter.

Certain Items Affecting Third Quarter Results

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 September 30, 

2013

2012

Property transactions, net

$   (0.03)

$   (0.01)

Income (loss) from unconsolidated affiliates:

   

    CityCenter residential impairment charge  

(0.02)

    CityCenter Harmon demolition cost    

(0.02)

Income tax provision:

   

    Deferred tax valuation allowance

(0.06)

(0.09)

The current year third quarter results were affected by non-cash impairment charges of $26 million, primarily related to land holdings in Jean and Sloan, Nevada. The current year third quarter income tax provision was affected by $28 million of valuation allowance on U.S. deferred tax assets, including a valuation allowance related to tax benefit reflected in other items in the above table.

The prior year third quarter results were affected by the Company's share of CityCenter's non-cash residential impairment charge related to Mandarin Oriental, estimated costs accrued for the demolition of the Harmon, and by a valuation allowance for a portion of U.S. deferred tax assets.

 

Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts increased 3% compared to the prior year quarter. Table games revenue increased 10% and the overall table games hold percentage in the third quarter of 2013 was 21.5% compared to 20.4% for the prior year quarter.  Slots revenue increased 1% with a 3% increase at the Company's Las Vegas Strip resorts.

Rooms revenue increased 5% with a 3% increase in Las Vegas Strip REVPAR. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

Three months ended September 30,   

2013

2012

Occupancy % 

93%

92%

Average Daily Rate (ADR)  

$    127

$   124

Revenue per Available Room (REVPAR)

$    117

$   114

Operating income for the Company's wholly owned domestic resorts for the third quarter of 2013 was $199 million, an increase of 2% compared to the prior year quarter.

 

MGM China

Key results for the third quarter of 2013 for MGM China include the following:

  • MGM China earned net revenue of $808 million, a 22% increase over the prior year quarter, due primarily to increases in VIP revenues and main floor table games revenues;
  • VIP table games turnover increased 28% from the prior year quarter, while hold percentage was 2.8% in the current year quarter compared to 3.0% in the prior year quarter;
  • Main floor table games and slots win increased 31% and 4%, respectively, compared to the prior year quarter;
  • Adjusted EBITDA of $191 million, a 25% increase over the prior year quarter, including $8 million of branding fee expense in the current quarter versus $5 million in the prior year quarter; and
  • MGM China's operating income was $114 million compared to $61 million in the prior year quarter.

MGM China is currently developing a second resort and casino, MGM Cotai, on an approximately 17.8 acre site in Cotai, Macau.  MGM Cotai will feature approximately 1,600 hotel rooms, casino, convention and meeting space, entertainment, spa, retail outlets and food and beverage offerings.  Current plans include introducing the Company's Mansion luxury villas.  Groundbreaking took place in February 2013 and the project continues to remain on pace for an anticipated early 2016 opening.  In May 2013, MGM China signed a deal with China State Construction to serve as sole general contractor for the project. The total project budget, excluding capitalized interest and land, is $2.6 billion.

Income (Loss) from Unconsolidated Affiliates

 

The following table summarizes information related to the Company's share of operating income (loss) from unconsolidated affiliates, adjusted for the effect of certain basis differences:

 

Three months ended September 30,  

2013

 

2012

 

(In thousands)

   

CityCenter 

$   (2,881)

 

$     (42,814)

Other   

6,809

 

4,871

 

$ 3,928

 

$ (37,943)

       

Key results for the third quarter of 2013 for CityCenter Holdings, LLC include the following (see schedules accompanying this release for further detail on CityCenter's third quarter results):

  • Net revenue from resort operations increased to $268 million, a 2% increase from the prior year quarter;
  • Adjusted EBITDA from resort operations increased 6% to $62 million compared to the prior year quarter;
  • Aria's table games hold percentage was 22.5% in the current year quarter compared to 29.3% in the prior year quarter; and
  • Aria's occupancy percentage was 89% and its ADR was $197, resulting in REVPAR of $177, a 4% increase compared to the prior year quarter.

CityCenter's results for the third quarter of 2012 included approximately $36 million for a residential impairment charge related to Mandarin Oriental and $32 million for accrued costs related to the future demolition of the Harmon.

As announced earlier this month, CityCenter closed a $1.775 billion senior secured credit facility comprised of a $75 million revolving facility, which matures in October 2018, and a $1.7 billion term loan B facility, which matures in October 2020.  Concurrent with the closing of the new senior secured credit facility, CityCenter issued a notice of full redemption with respect to its existing 7.625% senior secured first lien notes and 10.75% senior secured second lien PIK toggle notes and deposited sufficient funds to discharge the notes.  The new revolving facility was undrawn at closing.

 

Financial Position

"We continue to execute on our goals of improving the Company's free cash flow," said Dan D'Arrigo, MGM Resorts International Executive Vice President, CFO and Treasurer.  "This is evidenced by our year to date EBITDA growth of 17% as well as an expected reduction in our cash interest expense this year of approximately $220 million. We continue to be opportunistic in accessing the capital markets as indicated by our recent CityCenter refinancing, which will lower its annual cash interest expense by approximately $80 million."

The Company's cash balance at September 30, 2013 was $1.4 billion, which included $925 million at MGM China.  At September 30, 2013 the Company had $2.9 billion of borrowings outstanding under its $4.0 billion senior credit facility and $553 million outstanding under the $2.0 billion MGM China credit facility. The Company repaid net long-term debt of $77 million during the third quarter, bringing total net repayments during 2013 to $553 million.

Conference Call Details

MGM Resorts International will host a conference call at 11:00 a.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 1-800-560-7376 for domestic callers and 1-706-758-3659 for international callers.  The conference call access code is 83280135. A replay of the call will be available through Thursday, November 7, 2013.  The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406.  The replay access code is 83280135. The call will 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 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 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, preopening 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.

Reconciliations of GAAP net income (loss) to Adjusted EBITDA and GAAP operating income (loss) to Adjusted Property EBITDA are included in the financial schedules in this release.

About MGM Resorts International

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 and is in the process of developing a gaming resort in Cotai, 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 website at www.mgmresorts.com.

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission.  The Company has based 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 development of MGM Cotai, including related construction and development costs, and the Company's ability to execute additional transactions to further reduce its interest expense and improve free cash flow. 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 the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in our Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports).  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. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

 

 

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,

   

2013

 

2012

 

2013

 

2012

Revenues:

                     
 

Casino

$

1,460,300

 

$

1,294,318

 

$

4,304,877

 

$

3,928,548

 

Rooms

 

413,060

   

393,055

   

1,252,020

   

1,205,441

 

Food and beverage

 

366,988

   

361,252

   

1,121,117

   

1,126,096

 

Entertainment

 

145,799

   

123,168

   

380,654

   

364,477

 

Retail

 

52,151

   

51,211

   

149,606

   

149,921

 

Other

 

123,180

   

127,567

   

374,920

   

373,590

 

Reimbursed costs

 

92,038

   

87,682

   

275,015

   

269,159

     

2,653,516

   

2,438,253

   

7,858,209

   

7,417,232

 

Less: Promotional allowances

 

(190,479)

   

(183,275)

   

(561,759)

   

(550,899)

     

2,463,037

   

2,254,978

   

7,296,450

   

6,866,333

Expenses:

                     
 

Casino

 

913,137

   

826,072

   

2,705,190

   

2,519,757

 

Rooms

 

132,386

   

128,546

   

394,096

   

384,598

 

Food and beverage

 

214,683

   

209,686

   

645,119

   

643,892

 

Entertainment

 

107,939

   

92,888

   

281,604

   

270,235

 

Retail

 

28,053

   

29,064

   

81,884

   

85,888

 

Other

 

91,841

   

88,616

   

270,633

   

263,673

 

Reimbursed costs

 

92,038

   

87,682

   

275,015

   

269,159

 

General and administrative

 

342,847

   

319,106

   

961,072

   

931,873

 

Corporate expense

 

54,190

   

62,992

   

153,178

   

147,792

 

Preopening and start-up expenses 

 

4,279

   

765

   

9,931

   

765

 

Property transactions, net

 

26,127

   

5,803

   

122,749

   

97,187

 

Depreciation and amortization

 

211,682

   

228,414

   

641,751

   

700,866

     

2,219,202

   

2,079,634

   

6,542,222

   

6,315,685

                         

Income (loss) from unconsolidated affiliates

 

3,928

   

(37,943)

   

26,954

   

(45,266)

                         

Operating income 

 

247,763

   

137,401

   

781,182

   

505,382

                         

Non-operating income (expense):

                     
 

Interest expense, net of amounts capitalized

 

(208,939)

   

(275,771)

   

(648,886)

   

(836,436)

 

Non-operating items from unconsolidated affiliates

 

(22,673)

   

(20,901)

   

(83,616)

   

(68,603)

 

Other, net

 

(676)

   

2,012

   

(6,909)

   

(55,518)

     

(232,288)

   

(294,660)

   

(739,411)

   

(960,557)

                         

Income (loss) before income taxes

 

15,475

   

(157,259)

   

41,771

   

(455,175)

 

Benefit (provision) for income taxes

 

8,150

   

2,585

   

(26,146)

   

26,760

                         

Net income (loss)

 

23,625

   

(154,674)

   

15,625

   

(428,415)

 

Less: Net income attributable to noncontrolling interests

 

(55,484)

   

(26,485)

   

(133,896)

   

(115,449)

Net loss attributable to MGM Resorts International

$

(31,859)

 

$

(181,159)

 

$

(118,271)

 

$

(543,864)

                         

Per share of common stock:

                     
 

Basic:

                     
 

Net loss attributable to MGM Resorts International

$

(0.07)

 

$

(0.37)

 

$

(0.24)

 

$

(1.11)

                         
 

Weighted average shares outstanding

 

489,672

   

488,945

   

489,484

   

488,913

                         
 

Diluted:

                     
 

Net loss attributable to MGM Resorts International

$

(0.07)

 

$

(0.37)

 

$

(0.24)

 

$

(1.11)

                         
 

Weighted average shares outstanding

 

489,672

   

488,945

   

489,484

   

488,913

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

               
               
     

September 30,

 

December 31,

     

2013

 

2012

               

      ASSETS

         

Current assets:

         
 

Cash and cash equivalents

$

1,375,403

 

$

1,543,509

 

Accounts receivable, net

 

411,077

   

443,677

 

Inventories

 

98,330

   

107,577

 

Deferred income taxes, net

 

126,396

   

179,431

 

Prepaid expenses and other

 

272,809

   

232,898

   

Total current assets

 

2,284,015

   

2,507,092

               

Property and equipment, net

 

13,969,293

   

14,194,652

               

Other assets:

         
 

Investments in and advances to unconsolidated affiliates

 

1,416,462

   

1,444,547

 

Goodwill 

 

2,900,758

   

2,902,847

 

Other intangible assets, net

 

4,548,415

   

4,737,833

 

Other long-term assets, net

 

539,892

   

497,767

   

Total other assets

 

9,405,527

   

9,582,994

     

$

25,658,835

 

$

26,284,738

               
               

LIABILITIES AND STOCKHOLDERS' EQUITY

         
               

Current liabilities:

         
 

Accounts payable

$

202,792

 

$

199,620

 

Income taxes payable

 

2,500

   

1,350

 

Accrued interest on long-term debt

 

183,958

   

206,736

 

Other accrued liabilities

 

1,772,220

   

1,517,965

   

Total current liabilities

 

2,161,470

   

1,925,671

               

Deferred income taxes 

 

2,478,063

   

2,473,889

Long-term debt

 

13,034,518

   

13,589,283

Other long-term obligations

 

157,613

   

179,879

Stockholders' equity:

         
 

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

  issued and outstanding 489,814,210 and 489,234,401 shares 

 

4,898

   

4,892

 

Capital in excess of par value

 

4,150,413

   

4,132,655

 

Retained earnings 

 

95,427

   

213,698

 

Accumulated other comprehensive income 

 

11,619

   

14,303

   

Total MGM Resorts International stockholders' equity

 

4,262,357

   

4,365,548

 

Noncontrolling interests

 

3,564,814

   

3,750,468

   

Total stockholders' equity

 

7,827,171

   

8,116,016

     

$

25,658,835

 

$

26,284,738

               

 

 

 

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,

   

2013

 

2012

 

2013

 

2012

 

Bellagio

$

274,812

 

$

259,501

 

$

878,643

 

$

840,233

 

MGM Grand Las Vegas

 

274,265

   

239,713

   

788,581

   

702,589

 

Mandalay Bay

 

214,289

   

183,466

   

595,108

   

555,857

 

The Mirage 

 

146,290

   

162,920

   

433,226

   

457,388

 

Luxor

 

85,903

   

81,343

   

247,075

   

247,986

 

New York-New York 

 

66,485

   

67,166

   

204,823

   

206,807

 

Excalibur

 

67,807

   

66,809

   

199,583

   

197,808

 

Monte Carlo

 

64,971

   

64,425

   

200,362

   

195,788

 

Circus Circus Las Vegas

 

55,044

   

56,807

   

152,227

   

158,606

 

MGM Grand Detroit

 

133,764

   

139,284

   

407,225

   

431,676

 

Beau Rivage

 

91,968

   

91,704

   

258,837

   

265,254

 

Gold Strike Tunica

 

39,525

   

39,789

   

112,967

   

115,797

 

Other resort operations

 

32,990

   

33,228

   

94,640

   

95,192

 

  Wholly owned domestic resorts

 

1,548,113

   

1,486,155

   

4,573,297

   

4,470,981

 

MGM China

 

808,471

   

665,074

   

2,391,177

   

2,076,460

 

Management and other operations

 

106,453

   

103,749

   

331,976

   

318,892

   

$

2,463,037

 

$

2,254,978

 

$

7,296,450

 

$

6,866,333

                         
                         

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,

   

2013

 

2012

 

2013

 

2012

 

Bellagio

$

70,111

 

$

54,133

 

$

259,212

 

$

207,929

 

MGM Grand Las Vegas

 

66,098

   

48,378

   

177,738

   

114,735

 

Mandalay Bay

 

42,036

   

34,392

   

130,808

   

120,605

 

The Mirage 

 

29,775

   

39,507

   

84,464

   

91,993

 

Luxor

 

15,285

   

15,717

   

49,147

   

51,426

 

New York-New York 

 

20,709

   

20,954

   

67,781

   

68,929

 

Excalibur

 

15,336

   

15,394

   

50,216

   

48,698

 

Monte Carlo

 

15,245

   

13,150

   

52,614

   

44,554

 

Circus Circus Las Vegas

 

5,848

   

8,322

   

15,701

   

21,611

 

MGM Grand Detroit

 

36,855

   

39,264

   

115,170

   

124,840

 

Beau Rivage

 

21,258

   

22,722

   

51,597

   

59,173

 

Gold Strike Tunica

 

9,502

   

11,041

   

28,007

   

33,662

 

Other resort operations

 

2,002

   

1,790

   

4,245

   

2,739

 

  Wholly owned domestic resorts

 

350,060

   

324,764

   

1,086,700

   

990,894

 

MGM China

 

190,772

   

152,491

   

576,042

   

503,572

 

CityCenter (50%)(1)

 

(2,881)

   

(42,814)

   

9,675

   

(60,745)

 

Other unconsolidated resorts(1)

 

6,809

   

4,871

   

17,279

   

15,479

 

Management and other operations

 

1,644

   

(409)

   

26,465

   

14,394

   

$

546,404

 

$

438,903

 

$

1,716,161

 

$

1,463,594

     
 

(1)

Represents the Company's share of operating income (loss), 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 September 30, 2013

                                 
   

Operating

income (loss)

 

Preopening and

start-up

expenses

 

Property

 transactions,

net

 

Depreciation

and

amortization

 

Adjusted

EBITDA

 
 

Bellagio

$

47,576

 

$

-

 

$

(69)

 

$

22,604

 

$

70,111

 
 

MGM Grand Las Vegas

 

43,059

   

-

   

422

   

22,617

   

66,098

 
 

Mandalay Bay

 

19,209

   

1,076

   

17

   

21,734

   

42,036

 
 

The Mirage 

 

17,198

   

-

   

30

   

12,547

   

29,775

 
 

Luxor

 

5,708

   

646

   

(373)

   

9,304

   

15,285

 
 

New York-New York 

 

13,631

   

-

   

1,886

   

5,192

   

20,709

 
 

Excalibur

 

11,732

   

-

   

22

   

3,582

   

15,336

 
 

Monte Carlo

 

10,025

   

82

   

554

   

4,584

   

15,245

 
 

Circus Circus Las Vegas

 

863

   

-

   

1,037

   

3,948

   

5,848

 
 

MGM Grand Detroit

 

31,265

   

-

   

-

   

5,590

   

36,855

 
 

Beau Rivage

 

14,004

   

-

   

(14)

   

7,268

   

21,258

 
 

Gold Strike Tunica

 

6,038

   

-

   

-

   

3,464

   

9,502

 
 

Other resort operations

 

(21,107)

   

-

   

22,553

   

556

   

2,002

 
 

  Wholly owned domestic resorts

 

199,201

   

1,804

   

26,065

   

122,990

   

350,060

 
 

MGM China

 

114,071

   

2,286

   

20

   

74,395

   

190,772

 
 

CityCenter (50%)

 

(2,881)

   

-

   

-

   

-

   

(2,881)

 
 

Other unconsolidated resorts

 

6,809

   

-

   

-

   

-

   

6,809

 
 

Management and other operations

 

(1,511)

   

189

   

4

   

2,962

   

1,644

 
     

315,689

   

4,279

   

26,089

   

200,347

   

546,404

 
 

Stock compensation

 

(5,968)

   

-

   

-

   

-

   

(5,968)

 
 

Corporate 

 

(61,958)

   

-

   

38

   

11,335

   

(50,585)

 
   

$

247,763

 

$

4,279

 

$

26,127

 

$

211,682

 

$

489,851

 
                                 
                                 

Three Months Ended September 30, 2012

 
                                 
   

Operating

income (loss)

 

Preopening and

start-up

expenses

 

Property

transactions,

net

 

Depreciation

and

amortization

 

Adjusted

EBITDA

 
 

Bellagio

$

30,454

 

$

-

 

$

52

 

$

23,627

 

$

54,133

 
 

MGM Grand Las Vegas

 

24,375

   

-

   

3,497

   

20,506

   

48,378

 
 

Mandalay Bay

 

15,251

   

-

   

392

   

18,749

   

34,392

 
 

The Mirage 

 

25,949

   

-

   

541

   

13,017

   

39,507

 
 

Luxor

 

6,076

   

-

   

765

   

8,876

   

15,717

 
 

New York-New York 

 

15,619

   

-

   

148

   

5,187

   

20,954

 
 

Excalibur

 

11,016

   

-

   

-

   

4,378

   

15,394

 
 

Monte Carlo

 

8,332

   

-

   

9

   

4,809

   

13,150

 
 

Circus Circus Las Vegas

 

3,541

   

-

   

-

   

4,781

   

8,322

 
 

MGM Grand Detroit

 

30,206

   

641

   

37

   

8,380

   

39,264

 
 

Beau Rivage

 

15,129

   

-

   

(78)

   

7,671

   

22,722

 
 

Gold Strike Tunica

 

7,825

   

-

   

1

   

3,215

   

11,041

 
 

Other resort operations

 

1,176

   

-

   

(8)

   

622

   

1,790

 
 

  Wholly owned domestic resorts

 

194,949

   

641

   

5,356

   

123,818

   

324,764

 
 

MGM China

 

60,527

   

-

   

426

   

91,538

   

152,491

 
 

CityCenter (50%)

 

(42,938)

   

124

   

-

   

-

   

(42,814)

 
 

Other unconsolidated resorts

 

4,871

   

-

   

-

   

-

   

4,871

 
 

Management and other operations

 

(3,574)

   

-

   

-

   

3,165

   

(409)

 
     

213,835

   

765

   

5,782

   

218,521

   

438,903

 
 

Stock compensation

 

(7,897)

   

-

   

-

   

-

   

(7,897)

 
 

Corporate 

 

(68,537)

   

-

   

21

   

9,893

   

(58,623)

 
   

$

137,401

 

$

765

 

$

5,803

 

$

228,414

 

$

372,383

 
                                 

 

 

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, 2013

                                 
     

Operating

 income (loss)

 

Preopening and

start-up

expenses

 

Property

transactions,

net

 

Depreciation

and

amortization

 

Adjusted

EBITDA

 

Bellagio

 

$

185,354

 

$

-

 

$

272

 

$

73,586

 

$

259,212

 

MGM Grand Las Vegas

   

113,431

   

-

   

1,192

   

63,115

   

177,738

 

Mandalay Bay

   

63,445

   

1,550

   

2,453

   

63,360

   

130,808

 

The Mirage 

   

42,462

   

-

   

4,325

   

37,677

   

84,464

 

Luxor

   

18,580

   

758

   

2,554

   

27,255

   

49,147

 

New York-New York 

   

49,326

   

-

   

2,416

   

16,039

   

67,781

 

Excalibur

   

39,276

   

-

   

35

   

10,905

   

50,216

 

Monte Carlo

   

35,066

   

140

   

3,506

   

13,902

   

52,614

 

Circus Circus Las Vegas

   

1,275

   

-

   

1,047

   

13,379

   

15,701

 

MGM Grand Detroit

   

98,345

   

-

   

-

   

16,825

   

115,170

 

Beau Rivage

   

29,163

   

-

   

(305)

   

22,739

   

51,597

 

Gold Strike Tunica

   

16,824

   

-

   

1,174

   

10,009

   

28,007

 

Other resort operations

   

(19,994)

   

-

   

22,552

   

1,687

   

4,245

 

  Wholly owned domestic resorts

   

672,553

   

2,448

   

41,221

   

370,478

   

1,086,700

 

MGM China

   

339,322

   

6,918

   

365

   

229,437

   

576,042

 

CityCenter (50%)

   

9,299

   

376

   

-

   

-

   

9,675

 

Other unconsolidated resorts

   

17,279

   

-

   

-

   

-

   

17,279

 

Management and other operations

   

17,383

   

189

   

4

   

8,889

   

26,465

       

1,055,836

   

9,931

   

41,590

   

608,804

   

1,716,161

 

Stock compensation

   

(19,157)

   

-

   

-

   

-

   

(19,157)

 

Corporate 

   

(255,497)

   

-

   

81,159

   

32,947

   

(141,391)

     

$

781,182

 

$

9,931

 

$

122,749

 

$

641,751

 

$

1,555,613

                                 
                                 

Nine Months Ended September 30, 2012

                                 
     

Operating

 income (loss)

 

Preopening and

start-up

expenses

 

Property

transactions,

net

 

Depreciation

and

amortization

 

Adjusted

EBITDA

 

Bellagio

 

$

135,874

 

$

-

 

$

406

 

$

71,649

 

$

207,929

 

MGM Grand Las Vegas

   

50,796

   

-

   

4,627

   

59,312

   

114,735

 

Mandalay Bay

   

60,817

   

-

   

937

   

58,851

   

120,605

 

The Mirage 

   

52,691

   

-

   

611

   

38,691

   

91,993

 

Luxor

   

23,691

   

-

   

950

   

26,785

   

51,426

 

New York-New York 

   

52,318

   

-

   

391

   

16,220

   

68,929

 

Excalibur

   

35,407

   

-

   

3

   

13,288

   

48,698

 

Monte Carlo

   

29,235

   

-

   

567

   

14,752

   

44,554

 

Circus Circus Las Vegas

   

7,079

   

-

   

77

   

14,455

   

21,611

 

MGM Grand Detroit

   

94,975

   

641

   

921

   

28,303

   

124,840

 

Beau Rivage

   

36,252

   

-

   

(70)

   

22,991

   

59,173

 

Gold Strike Tunica

   

23,758

   

-

   

3

   

9,901

   

33,662

 

Other resort operations

   

958

   

-

   

(22)

   

1,803

   

2,739

 

  Wholly owned domestic resorts

   

603,851

   

641

   

9,401

   

377,001

   

990,894

 

MGM China

   

218,869

   

-

   

1,890

   

282,813

   

503,572

 

CityCenter (50%)

   

(60,869)

   

124

   

-

   

-

   

(60,745)

 

Other unconsolidated resorts

   

15,479

   

-

   

-

   

-

   

15,479

 

Management and other operations

   

3,692

   

-

   

-

   

10,702

   

14,394

       

781,022

   

765

   

11,291

   

670,516

   

1,463,594

 

Stock compensation

   

(25,998)

   

-

   

-

   

-

   

(25,998)

 

Corporate 

   

(249,642)

   

-

   

85,896

   

30,350

   

(133,396)

     

$

505,382

 

$

765

 

$

97,187

 

$

700,866

 

$

1,304,200

                                 

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)

                           
     

Three Months Ended

 

Nine Months Ended

     

September 30,

 

September 30,

 

September 30,

 

September 30,

     

2013

 

2012

 

2013

 

2012

Adjusted EBITDA

 

$

489,851

 

$

372,383

 

$

1,555,613

 

$

1,304,200

  Preopening and start-up expenses

   

(4,279)

   

(765)

   

(9,931)

   

(765)

  Property transactions, net

   

(26,127)

   

(5,803)

   

(122,749)

   

(97,187)

  Depreciation and amortization

   

(211,682)

   

(228,414)

   

(641,751)

   

(700,866)

Operating income

   

247,763

   

137,401

   

781,182

   

505,382

                           

Non-operating income (expense):

                       

  Interest expense, net of amounts capitalized

   

(208,939)

   

(275,771)

   

(648,886)

   

(836,436)

  Other, net

   

(23,349)

   

(18,889)

   

(90,525)

   

(124,121)

       

(232,288)

   

(294,660)

   

(739,411)

   

(960,557)

                           

Income (loss) before income taxes

   

15,475

   

(157,259)

   

41,771

   

(455,175)

  Benefit (provision) for income taxes

   

8,150

   

2,585

   

(26,146)

   

26,760

Net income (loss)

   

23,625

   

(154,674)

   

15,625

   

(428,415)

  Less: Net income attributable to noncontrolling interests

   

(55,484)

   

(26,485)

   

(133,896)

   

(115,449)

Net loss attributable to MGM Resorts International

 

$

(31,859)

 

$

(181,159)

 

$

(118,271)

 

$

(543,864)

                           
                           

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,

     

2013

 

2012

 

2013

 

2012

 

Bellagio

                       
 

   Occupancy %

   

93.2%

   

92.7%

   

93.9%

   

94.2%

 

   Average daily rate (ADR)

   

$232

   

$232

   

$240

   

$234

 

   Revenue per available room (REVPAR)

   

$216

   

$215

   

$225

   

$220

                           
 

MGM Grand Las Vegas

                       
 

   Occupancy %

   

95.2%

   

94.1%

   

94.9%

   

94.6%

 

   ADR

   

$135

   

$135

   

$141

   

$139

 

   REVPAR

   

$129

   

$127

   

$134

   

$131

                           
 

Mandalay Bay

                       
 

   Occupancy %

   

91.5%

   

93.4%

   

91.5%

   

92.9%

 

   ADR

   

$176

   

$168

   

$184

   

$178

 

   REVPAR

   

$161

   

$157

   

$168

   

$166

                           
 

The Mirage

                       
 

   Occupancy %

   

96.1%

   

96.4%

   

95.9%

   

95.9%

 

   ADR

   

$144

   

$139

   

$148

   

$148

 

   REVPAR

   

$138

   

$134

   

$142

   

$142

                           
 

Luxor

                       
 

   Occupancy %

   

92.9%

   

91.0%

   

92.9%

   

91.7%

 

   ADR

   

$87

   

$86

   

$88

   

$88

 

   REVPAR

   

$81

   

$78

   

$81

   

$81

                           
 

New York-New York

                       
 

   Occupancy %

   

96.9%

   

94.5%

   

97.5%

   

95.5%

 

   ADR

   

$108

   

$108

   

$112

   

$110

 

   REVPAR

   

$105

   

$102

   

$109

   

$105

                           
 

Excalibur

                       
 

   Occupancy %

   

92.2%

   

91.2%

   

91.2%

   

90.9%

 

   ADR

   

$73

   

$71

   

$73

   

$72

 

   REVPAR

   

$67

   

$64

   

$66

   

$65

                           
 

Monte Carlo

                       
 

   Occupancy %

   

95.3%

   

93.4%

   

96.3%

   

94.9%

 

   ADR

   

$103

   

$102

   

$104

   

$103

 

   REVPAR

   

$98

   

$96

   

$100

   

$98

                           
 

Circus Circus Las Vegas

                       
 

   Occupancy %

   

83.3%

   

83.9%

   

80.8%

   

81.1%

 

   ADR

   

$55

   

$52

   

$55

   

$54

 

   REVPAR

   

$45

   

$44

   

$44

   

$44

 

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

                                 
   

Three Months Ended

 

Nine Months Ended

       
   

September 30,

 

September 30,

 

September 30,

 

September 30,

       
   

2013

 

2012

 

2013

 

2012

       
                                 
 

Aria

$

217,495

 

$

217,306

 

$

702,107

 

$

638,772

       
 

Vdara

 

21,865

   

20,969

   

68,279

   

65,532

       
 

Crystals

 

15,620

   

13,534

   

45,071

   

38,994

       
 

Mandarin Oriental

 

12,690

   

11,222

   

40,184

   

35,945

       
 

  Resort operations

 

267,670

   

263,031

   

855,641

   

779,243

       
 

Residential operations

 

26,660

   

3,399

   

87,005

   

16,249

       
   

$

294,330

 

$

266,430

 

$

942,646

 

$

795,492

       
                                 
                                 
                                 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)

                                 
   

Three Months Ended

 

Nine Months Ended

       
   

September 30,

 

September 30,

 

September 30,

 

September 30,

       
   

2013

 

2012

 

2013

 

2012

       
                                 

Adjusted EBITDA

$

61,261

 

$

52,762

 

$

220,914

 

$

146,552

       

  Preopening and start-up expenses

 

-

   

(248)

   

(752)

   

(248)

       

  Property transactions, net

 

(4,413)

   

(71,257)

   

(14,526)

   

(73,336)

       

  Depreciation and amortization

 

(86,638)

   

(91,110)

   

(259,368)

   

(267,262)

       

Operating loss

 

(29,790)

   

(109,853)

   

(53,732)

   

(194,294)

       
                                 

Non-operating income (expense):

                             

  Interest expense - sponsor notes

 

(27,128)

   

(23,346)

   

(78,011)

   

(67,197)

       

  Interest expense - other

 

(43,015)

   

(42,681)

   

(129,469)

   

(131,649)

       

  Other, net

 

(1,095)

   

808

   

(33,425)

   

(5,832)

       
     

(71,238)

   

(65,219)

   

(240,905)

   

(204,678)

       

Net loss

$

(101,028)

 

$

(175,072)

 

$

(294,637)

 

$

(398,972)

       
                                 
                                 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

                                 

Three Months Ended September 30, 2013

 
                                 
                                 
   

Operating

income (loss)

 

Preopening and

start-up

expenses

 

Property

 transactions,

net

 

Depreciation

 and

amortization

 

Adjusted

EBITDA

 
 

Aria

$

(15,808)

 

$

-

 

$

1

 

$

64,645

 

$

48,838

 
 

Vdara

 

(6,513)

   

-

   

49

   

10,377

   

3,913

 
 

Crystals

 

2,893

   

-

   

57

   

6,901

   

9,851

 
 

Mandarin Oriental

 

(4,814)

   

-

   

-

   

4,698

   

(116)

 
 

  Resort operations

 

(24,242)

   

-

   

107

   

86,621

   

62,486

 
 

Residential operations

 

643

   

-

   

4,306

   

7

   

4,956

 
 

Development and administration

 

(6,191)

   

-

   

-

   

10

   

(6,181)

 
   

$

(29,790)

 

$

-

 

$

4,413

 

$

86,638

 

$

61,261

 
                                 
                                 

Three Months Ended September 30, 2012

 
                                 
                                 
   

Operating

income (loss)

 

Preopening and

start-up

expenses

 

Property

 transactions,

net

 

Depreciation

 and

amortization

 

Adjusted

EBITDA

 
 

Aria

$

(25,512)

 

$

248

 

$

3,577

 

$

68,879

 

$

47,192

 
 

Vdara

 

(6,055)

   

-

   

-

   

10,370

   

4,315

 
 

Crystals

 

1,522

   

-

   

-

   

6,310

   

7,832

 
 

Mandarin Oriental

 

(5,156)

   

-

   

-

   

4,529

   

(627)

 
 

  Resort operations

 

(35,201)

   

248

   

3,577

   

90,088

   

58,712

 
 

Residential operations

 

(38,072)

   

-

   

35,690

   

977

   

(1,405)

 
 

Development and administration

 

(36,580)

   

-

   

31,990

   

45

   

(4,545)

 
   

$

(109,853)

 

$

248

 

$

71,257

 

$

91,110

 

$

52,762

 
                                 

 

 

CITYCENTER HOLDINGS, LLC

 

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

 

(In thousands)

 

(Unaudited)

 
   

Nine Months Ended September 30, 2013

 
                                   
                                   
   

Operating

 income (loss)

 

Preopening and

 start-up

 expenses

 

Property

transactions,
net

 

Depreciation

and

amortization

 

Adjusted

EBITDA

   
 

Aria

$

(17,422)

 

$

694

 

$

279

 

$

192,433

 

$

175,984

   
 

Vdara

 

(15,703)

   

-

   

49

   

31,586

   

15,932

   
 

Crystals

 

8,052

   

58

   

57

   

20,221

   

28,388

   
 

Mandarin Oriental

 

(12,160)

   

-

   

-

   

14,384

   

2,224

   
 

  Resort operations

 

(37,233)

   

752

   

385

   

258,624

   

222,528

   
 

Residential operations

 

(811)

   

-

   

14,141

   

718

   

14,048

   
 

Development and administration

 

(15,688)

   

-

   

-

   

26

   

(15,662)

   
   

$

(53,732)

 

$

752

 

$

14,526

 

$

259,368

 

$

220,914

   
                                   
   

Nine Months Ended September 30, 2012

 
                                   
   

Operating

 income (loss)

 

Preopening and

 start-up

expenses

 

Property

 transactions,
net

 

Depreciation

and

amortization

 

Adjusted

 EBITDA

   
 

Aria

$

(84,697)

 

$

248

 

$

5,563

 

$

200,529

 

$

121,643

   
 

Vdara

 

(14,664)

   

-

   

-

   

31,056

   

16,392

   
 

Crystals

 

4,183

   

-

   

-

   

19,021

   

23,204

   
 

Mandarin Oriental

 

(12,946)

   

-

   

-

   

13,568

   

622

   
 

  Resort operations

 

(108,124)

   

248

   

5,563

   

264,174

   

161,861

   
 

Residential operations

 

(39,836)

   

-

   

35,690

   

2,929

   

(1,217)

   
 

Development and administration

 

(46,334)

   

-

   

32,083

   

159

   

(14,092)

   
   

$

(194,294)

 

$

248

 

$

73,336

 

$

267,262

 

$

146,552

   
                                   
                                 
                                   
                                   

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

                                   
                                   
   

Three Months Ended

 

Nine Months Ended

         
   

September 30,

 

September 30,

 

September 30,

 

September 30,

         
   

2013

 

2012

 

2013

 

2012

         
 

Aria

                               
 

   Occupancy %

 

89.5%

   

88.5%

   

90.0%

   

89.2%

         
 

   ADR

 

$197

   

$192

   

$206

   

$199

         
 

   REVPAR

 

$177

   

$170

   

$185

   

$178

         
                                   
 

Vdara

                               
 

   Occupancy %

 

87.7%

   

83.2%

   

88.3%

   

84.4%

         
 

   ADR

 

$155

   

$153

   

$160

   

$159

         
 

   REVPAR

 

$136

   

$127

   

$141

   

$134

         

 

SOURCE MGM Resorts International

For further information: Investment Community, DANIEL D'ARRIGO, Executive Vice President, CFO & Treasurer, (702) 693-8895; News Media, CLARK DUMONT, Senior Vice President of Corporate Communications, (702) 891-1836 or cdumont@mgmresorts.com