MGM Resorts International Reports Second Quarter Financial Results

August 5, 2014
Consolidated Adjusted EBITDA Increased 8%, Led By 10% Growth In Wholly Owned Domestic Resorts
MGM China Declares $136 Million Dividend

LAS VEGAS, Aug. 5, 2014 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today reported financial results for the quarter ended June 30, 2014.  Diluted earnings per share for the second quarter of 2014 was $0.21 compared to diluted loss per share of $0.19 in the prior year second quarter. 

"I am pleased to report another solid quarter of growth at MGM Resorts," said Jim Murren, Chairman and CEO.  "Our domestic business was very strong with 12% EBITDA growth in Las Vegas driven by strong performance in both our room and casino segments.  CityCenter resort operations continue to improve while in Macau we grew cash flow and margins due to a higher contribution of revenues from our main floor business.  These results clearly reflect the success of our investments and strategies in our existing properties, while we are building MGM Cotai and beginning construction on MGM National Harbor."

Key results for the second quarter of 2014 include the following:

  • Consolidated net revenue was $2.6 billion, a 4% increase over the prior year second quarter;
  • Casino revenue at the Company's wholly owned domestic resorts increased 6% compared to the prior year quarter;
  • Rooms revenue at wholly owned domestic resorts increased 6% with a 6% increase in REVPAR(1) at the Company's Las Vegas Strip resorts compared to the prior year quarter;
  • Adjusted Property EBITDA(2) was $643 million, an 8% increase compared to the prior year quarter;
  • The Company's wholly owned domestic resorts earned Adjusted Property EBITDA of $414 million, a 10% increase compared to the prior year quarter;
  • MGM China's Adjusted EBITDA was $210 million, a 3% increase compared to the prior year quarter, including $14 million of branding fee expense in the current quarter; and
  • CityCenter earned Adjusted EBITDA related to resort operations of $81 million, a 20% increase over the prior year quarter.

Certain Items Affecting Second 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 June 30,                                                          

2014

2013

Preopening and start-up expenses

$     (0.01)

$        —

Property transactions, net:

   

     Investment in Grand Victoria impairment         

(0.04)

(0.05)

     Corporate buildings impairment       

(0.06)

     Other property transactions, net       

(0.01)

(0.01)

IRS audit settlement       

0.06

 

The current year second quarter and prior year second quarter results were affected by non-cash impairment charges of $29 million and $37 million, respectively, related to the Company's joint venture investment in Grand Victoria. In addition, the Company recorded an impairment charge of $45 million in the prior year second quarter related to corporate buildings located on the land underlying the Company's planned Las Vegas arena project, which were removed from service in 2014.

The current year second quarter income tax provision was affected by a $31 million benefit resulting from the settlement of the Company's 2005-2009 IRS audits during the quarter.  In addition to the items in the table above, the current year second quarter income tax provision was favorably impacted by a net benefit recorded for foreign tax credits generated by MGM China, while the prior year second quarter income tax provision was unfavorably impacted by a valuation allowance provided on U.S. deferred tax assets.

Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts increased 6% compared to the prior year quarter due to an increase in both table games volume and hold percentage. Table games hold percentage in the second quarter of 2014 was 21.3% compared to 18.1% in the prior year quarter. Slots revenue decreased 1% compared to the prior year quarter.

Rooms revenue increased 6% with Las Vegas Strip REVPAR up 6%.  The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

Three months ended June 30,

2014

2013

Occupancy %

96%

95%

Average Daily Rate (ADR)

$   141

$  134

Revenue per Available Room (REVPAR)

$   135

$  127

 

Food and beverage revenue increased 5% as a result of increased convention and banquet business and the opening of several new outlets. Operating income for the Company's wholly owned domestic resorts increased 23% for the second quarter of 2014 compared to the prior year quarter due to a 7% increase in net revenues and improved operating margins.

MGM China

On August 5, 2014, MGM China's Board of Directors announced a dividend of $136 million, which will be paid to shareholders of record as of August 25, 2014 and distributed on or about September 1, 2014.  MGM Resorts International will receive $69 million, representing its 51% share of the dividend.

Key second quarter results for MGM China include the following:

 

  • MGM China earned net revenue of $828 million, a 1% decrease compared to the prior year quarter;
  • Main floor table games revenue increased 41% compared to the prior year quarter;
  • VIP table games revenue decreased 18% due to a decrease in VIP table games turnover of 10% compared to the prior year quarter and lower hold percentage of 2.7% in the current year quarter compared to 2.9% in the prior year quarter;
  • MGM China's Adjusted EBITDA was $210 million, a 3% increase compared to the prior year quarter, including $14 million of branding fee expense in the current quarter;
  • MGM China's Adjusted EBITDA margin increased by 90 basis points compared to the prior year quarter; and
  • Operating income was $134 million compared to $126 million in the prior year quarter.

Income from Unconsolidated Affiliates

The following table summarizes information related to the Company's share of income from unconsolidated affiliates:

Three months ended June 30,

2014

2013

 

(In thousands)

CityCenter

$ (1,055)

$ 861

Other

6,923

5,821

 

$ 5,868

$ 6,682

 

Results for CityCenter Holdings, LLC for the second quarter of 2014 include the following (see schedules accompanying this release for further detail on CityCenter's second quarter results):

  • Net revenue from resort operations increased by 9% to $304 million compared to $280 million in the prior year quarter;
  • Adjusted EBITDA from resort operations was $81 million, an increase of 20% compared to the prior year quarter;
  • Aria's table games hold percentage was 23.4% compared to 20.8% in the prior year quarter;
  • Aria's occupancy percentage was 94% and its ADR was $217, resulting in REVPAR of $205, a 6% increase compared to the prior year quarter;
  • Vdara reported record REVPAR of $166, an increase of 10% compared to the prior year quarter;
  • Crystals reported Adjusted EBITDA of $11 million, an increase of 12% from the prior year quarter; and
  • Property transactions, net was $16 million compared to $10 million in the prior year quarter.

Financial Position

"Over the next year we expect free cash flow growth, dividends from MGM China and the anticipated conversion of $1.45 billion of outstanding convertible notes to dramatically improve our balance sheet," said Dan D'Arrigo, Executive Vice President, CFO and Treasurer.  "In July, we capitalized on CityCenter's improved credit profile with under 5x leverage to reduce the annual interest rate on its senior credit facility by 75 basis points.  We believe CityCenter is positioned to generate significant free cash flow going forward."

The Company's cash balance at June 30, 2014 was $1.4 billion, which included $658 million at MGM China.  At June 30, 2014 the Company had $2.8 billion of borrowings outstanding under its $4.0 billion senior secured credit facility and $554 million outstanding under the $2.0 billion MGM China credit facility.

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 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 1985444. A replay of the call will be available through Wednesday, August 13, 2014.  The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088.  The replay access code is 10049632. 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 portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company also owns 51% of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, and 50% of CityCenter in Las Vegas, which features ARIA resort and casino.  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 our development projects, anticipated free cash flow growth, the receipt of dividends from MGM China and the conversion of the outstanding convertible notes. 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 the Company's 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

 

Six Months Ended

   

June 30,

 

June 30,

 

June 30,

 

June 30,

   

2014

 

2013

 

2014

 

2013

Revenues:

                     
 

Casino

$

1,475,165

 

$

1,443,157

 

$

3,058,597

 

$

2,844,577

 

Rooms

 

463,151

   

437,710

   

915,537

   

838,960

 

Food and beverage

 

412,723

   

394,247

   

796,115

   

754,129

 

Entertainment

 

138,735

   

121,001

   

272,512

   

234,855

 

Retail

 

50,811

   

52,748

   

95,427

   

97,455

 

Other

 

134,068

   

127,914

   

259,495

   

251,740

 

Reimbursed costs

 

95,745

   

92,741

   

190,720

   

182,977

     

2,770,398

   

2,669,518

   

5,588,403

   

5,204,693

 

Less: Promotional allowances

 

(189,365)

   

(188,253)

   

(376,972)

   

(371,280)

     

2,581,033

   

2,481,265

   

5,211,431

   

4,833,413

Expenses:

                     
 

Casino

 

916,817

   

916,807

   

1,907,651

   

1,792,053

 

Rooms

 

142,413

   

134,001

   

276,651

   

261,710

 

Food and beverage

 

241,124

   

225,696

   

461,182

   

430,436

 

Entertainment

 

104,761

   

89,940

   

203,698

   

173,665

 

Retail

 

26,055

   

27,865

   

49,531

   

53,831

 

Other

 

92,077

   

92,819

   

179,654

   

178,792

 

Reimbursed costs

 

95,745

   

92,741

   

190,720

   

182,977

 

General and administrative

 

327,484

   

314,324

   

646,730

   

618,225

 

Corporate expense

 

54,439

   

52,364

   

107,790

   

98,988

 

Preopening and start-up expenses 

 

9,759

   

3,506

   

15,395

   

5,652

 

Property transactions, net

 

33,170

   

88,131

   

33,728

   

96,622

 

Depreciation and amortization

 

203,070

   

218,151

   

410,725

   

430,069

     

2,246,914

   

2,256,345

   

4,483,455

   

4,323,020

                         

Income from unconsolidated affiliates

 

5,868

   

6,682

   

24,644

   

23,026

                         

Operating income 

 

339,987

   

231,602

   

752,620

   

533,419

                         

Non-operating income (expense):

                     
 

Interest expense, net of amounts capitalized

 

(203,936)

   

(214,500)

   

(413,323)

   

(439,947)

 

Non-operating items from unconsolidated affiliates

 

(14,578)

   

(38,864)

   

(28,301)

   

(60,943)

 

Other, net

 

(309)

   

(4,951)

   

(1,743)

   

(6,233)

     

(218,823)

   

(258,315)

   

(443,367)

   

(507,123)

                         

Income (loss) before income taxes

 

121,164

   

(26,713)

   

309,253

   

26,296

 

Benefit (provision) for income taxes

 

52,540

   

(3,865)

   

56,059

   

(34,296)

                         

Net income (loss)

 

173,704

   

(30,578)

   

365,312

   

(8,000)

 

Less: Net income attributable to noncontrolling interests

 

(68,160)

   

(62,380)

   

(151,608)

   

(78,412)

Net income (loss) attributable to MGM Resorts International

$

105,544

 

$

(92,958)

 

$

213,704

 

$

(86,412)

                         

Per share of common stock:

                     
 

Basic:

                     
 

Net income (loss) attributable to MGM Resorts International

$

0.22

 

$

(0.19)

 

$

0.44

 

$

(0.18)

                         
 

Weighted average shares outstanding

 

490,786

   

489,484

   

490,692

   

489,388

                         
 

Diluted:

                     
 

Net income (loss) attributable to MGM Resorts International

$

0.21

 

$

(0.19)

 

$

0.42

 

$

(0.18)

                         
 

Weighted average shares outstanding

 

513,371

   

489,484

   

513,287

   

489,388

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

               
               
     

June 30,

 

December 31,

     

2014

 

2013

               

      ASSETS

Current assets:

         
 

Cash and cash equivalents

$

1,365,137

 

$

1,803,669

 

Accounts receivable, net

 

473,922

   

488,217

 

Inventories

 

102,524

   

107,907

 

Deferred income taxes, net

 

-

   

80,989

 

Prepaid expenses and other

 

224,732

   

238,657

   

Total current assets

 

2,166,315

   

2,719,439

               

Property and equipment, net

 

14,113,722

   

14,055,212

               

Other assets:

         
 

Investments in and advances to unconsolidated affiliates

 

1,420,924

   

1,374,836

 

Goodwill 

   

2,898,861

   

2,897,442

 

Other intangible assets, net

 

4,396,436

   

4,511,861

 

Other long-term assets, net

 

576,045

   

551,395

   

Total other assets

 

9,292,266

   

9,335,534

     

$

25,572,303

 

$

26,110,185

               
               

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current liabilities:

         
 

Accounts payable

$

253,475

 

$

241,192

 

Income taxes payable

 

32,817

   

14,813

 

Current portion of long-term debt

 

317,194

   

-

 

Deferred income taxes, net

 

1,522

   

-

 

Accrued interest on long-term debt

 

191,141

   

188,522

 

Other accrued liabilities

 

1,764,167

   

1,770,801

   

Total current liabilities

 

2,560,316

   

2,215,328

               

Deferred income taxes 

 

2,356,998

   

2,430,414

Long-term debt

 

12,606,520

   

13,447,230

Other long-term obligations

 

106,941

   

141,590

Stockholders' equity:

         
 

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

         
 

   issued and outstanding 490,712,807 and 490,360,628 shares 

 

4,907

   

4,904

 

Capital in excess of par value

 

4,166,365

   

4,156,680

 

Retained earnings 

 

270,796

   

57,092

 

Accumulated other comprehensive income 

 

15,235

   

12,503

   

Total MGM Resorts International stockholders' equity

 

4,457,303

   

4,231,179

 

Noncontrolling interests

 

3,484,225

   

3,644,444

   

Total stockholders' equity

 

7,941,528

   

7,875,623

     

$

25,572,303

 

$

26,110,185

 

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,

 

2014

 

2013

 

2014

 

2013

Bellagio

$

332,213

 

$

303,111

 

$

652,069

 

$

603,831

MGM Grand Las Vegas

 

271,675

   

255,426

   

533,339

   

514,316

Mandalay Bay

 

233,506

   

205,306

   

452,890

   

380,819

The Mirage 

 

146,670

   

142,383

   

294,918

   

286,936

Luxor

 

91,067

   

83,383

   

174,760

   

161,172

New York-New York 

 

71,865

   

69,070

   

144,833

   

138,338

Excalibur

 

72,125

   

69,967

   

139,698

   

131,776

Monte Carlo

 

72,332

   

68,891

   

140,943

   

135,391

Circus Circus Las Vegas

 

53,942

   

51,270

   

102,667

   

97,183

MGM Grand Detroit

 

136,350

   

132,593

   

269,498

   

273,461

Beau Rivage

 

87,588

   

85,959

   

170,014

   

166,869

Gold Strike Tunica

 

39,500

   

36,400

   

76,419

   

73,442

Other resort operations

 

30,437

   

32,237

   

57,456

   

61,650

  Wholly owned domestic resorts

 

1,639,270

   

1,535,996

   

3,209,504

   

3,025,184

MGM China

 

827,928

   

835,149

   

1,769,376

   

1,582,706

Management and other operations

 

113,835

   

110,120

   

232,551

   

225,523

 

$

2,581,033

 

$

2,481,265

 

$

5,211,431

 

$

4,833,413

                       
                       
                       

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,

 

2014

 

2013

 

2014

 

2013

Bellagio

$

115,619

 

$

99,522

 

$

220,768

 

$

189,101

MGM Grand Las Vegas

 

54,371

   

49,635

   

116,604

   

111,640

Mandalay Bay

 

53,003

   

49,358

   

109,003

   

88,772

The Mirage 

 

28,910

   

24,528

   

64,329

   

54,689

Luxor

 

21,322

   

18,288

   

39,300

   

33,862

New York-New York 

 

24,478

   

23,672

   

50,105

   

47,072

Excalibur

 

20,706

   

19,771

   

39,596

   

34,880

Monte Carlo

 

19,999

   

19,883

   

39,894

   

37,369

Circus Circus Las Vegas

 

7,213

   

5,296

   

12,522

   

9,853

MGM Grand Detroit

 

39,653

   

38,662

   

73,019

   

78,315

Beau Rivage

 

18,489

   

16,466

   

33,130

   

30,339

Gold Strike Tunica

 

10,185

   

8,518

   

19,752

   

18,505

Other resort operations

 

450

   

2,004

   

(778)

   

2,243

  Wholly owned domestic resorts

 

414,398

   

375,603

   

817,244

   

736,640

MGM China

 

210,488

   

204,815

   

451,213

   

385,270

CityCenter (50%)(1)

 

(1,055)

   

861

   

12,991

   

12,556

Other unconsolidated resorts(1)

 

6,923

   

5,821

   

11,653

   

10,470

Management and other operations

 

12,102

   

9,060

   

31,954

   

24,821

 

$

642,856

 

$

596,160

 

$

1,325,055

 

$

1,169,757

 

(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 June 30, 2014

                             
 

Operating
income (loss)

 

Preopening and
start-up
expenses

 

Property
transactions, net

 

Depreciation and
amortization

 

Adjusted EBITDA

Bellagio

$

94,027

 

$

-

 

$

594

 

$

20,998

 

$

115,619

MGM Grand Las Vegas

 

34,429

   

-

   

207

   

19,735

   

54,371

Mandalay Bay

 

33,524

   

331

   

241

   

18,907

   

53,003

The Mirage 

 

14,362

   

22

   

1,801

   

12,725

   

28,910

Luxor

 

11,734

   

(3)

   

1

   

9,590

   

21,322

New York-New York 

 

19,755

   

47

   

98

   

4,578

   

24,478

Excalibur

 

16,605

   

-

   

332

   

3,769

   

20,706

Monte Carlo

 

14,091

   

464

   

154

   

5,290

   

19,999

Circus Circus Las Vegas

 

3,308

   

36

   

3

   

3,866

   

7,213

MGM Grand Detroit

 

33,804

   

-

   

78

   

5,771

   

39,653

Beau Rivage

 

11,476

   

-

   

559

   

6,454

   

18,489

Gold Strike Tunica

 

6,651

   

-

   

265

   

3,269

   

10,185

Other resort operations

 

(86)

   

-

   

(8)

   

544

   

450

  Wholly owned domestic resorts

 

293,680

   

897

   

4,325

   

115,496

   

414,398

MGM China

 

134,112

   

2,917

   

48

   

73,411

   

210,488

CityCenter (50%)

 

(1,055)

   

-

   

-

   

-

   

(1,055)

Other unconsolidated resorts

 

6,822

   

101

   

-

   

-

   

6,923

Management and other operations

 

10,054

   

-

   

1

   

2,047

   

12,102

   

443,613

   

3,915

   

4,374

   

190,954

   

642,856

Stock compensation

 

(6,393)

   

-

   

-

   

-

   

(6,393)

Corporate 

 

(97,233)

   

5,844

   

28,796

   

12,116

   

(50,477)

 

$

339,987

 

$

9,759

 

$

33,170

 

$

203,070

 

$

585,986

                             
                             
                             

Three Months Ended June 30, 2013

 
 

Operating
income (loss)

 

Preopening and
start-up
expenses

 

Property
transactions, net

 

Depreciation and
amortization

 

Adjusted EBITDA

Bellagio

$

71,386

 

$

-

 

$

337

 

$

27,799

 

$

99,522

MGM Grand Las Vegas

 

29,400

   

-

   

104

   

20,131

   

49,635

Mandalay Bay

 

23,414

   

1,078

   

1,854

   

23,012

   

49,358

The Mirage 

 

11,714

   

-

   

141

   

12,673

   

24,528

Luxor

 

9,097

   

112

   

(252)

   

9,331

   

18,288

New York-New York 

 

17,958

   

-

   

499

   

5,215

   

23,672

Excalibur

 

16,382

   

-

   

13

   

3,376

   

19,771

Monte Carlo

 

12,183

   

58

   

2,964

   

4,678

   

19,883

Circus Circus Las Vegas

 

801

   

-

   

10

   

4,485

   

5,296

MGM Grand Detroit

 

32,709

   

-

   

-

   

5,953

   

38,662

Beau Rivage

 

8,732

   

-

   

7

   

7,727

   

16,466

Gold Strike Tunica

 

3,966

   

-

   

1,187

   

3,365

   

8,518

Other resort operations

 

1,441

   

-

   

-

   

563

   

2,004

  Wholly owned domestic resorts

 

239,183

   

1,248

   

6,864

   

128,308

   

375,603

MGM China

 

126,134

   

2,258

   

150

   

76,273

   

204,815

CityCenter (50%)

 

861

   

-

   

-

   

-

   

861

Other unconsolidated resorts

 

5,821

   

-

   

-

   

-

   

5,821

Management and other operations

 

6,111

   

-

   

(4)

   

2,953

   

9,060

   

378,110

   

3,506

   

7,010

   

207,534

   

596,160

Stock compensation

 

(6,246)

   

-

   

-

   

-

   

(6,246)

Corporate 

 

(140,262)

   

-

   

81,121

   

10,617

   

(48,524)

 

$

231,602

 

$

3,506

 

$

88,131

 

$

218,151

 

$

541,390

 

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, 2014

                               
   

Operating
income (loss)

 

Preopening and
start-up
expenses

 

Property
transactions, net

 

Depreciation and
amortization

 

Adjusted EBITDA

Bellagio

 

$

175,878

 

$

-

 

$

573

 

$

44,317

 

$

220,768

MGM Grand Las Vegas

   

75,361

   

197

   

199

   

40,847

   

116,604

Mandalay Bay

   

67,935

   

1,133

   

239

   

39,696

   

109,003

The Mirage 

   

36,954

   

22

   

1,948

   

25,405

   

64,329

Luxor

   

20,541

   

-

   

-

   

18,759

   

39,300

New York-New York 

   

40,642

   

102

   

342

   

9,019

   

50,105

Excalibur

   

32,060

   

-

   

331

   

7,205

   

39,596

Monte Carlo

   

28,105

   

1,379

   

157

   

10,253

   

39,894

Circus Circus Las Vegas

   

4,845

   

36

   

(8)

   

7,649

   

12,522

MGM Grand Detroit

   

61,458

   

-

   

78

   

11,483

   

73,019

Beau Rivage

   

19,642

   

-

   

559

   

12,929

   

33,130

Gold Strike Tunica

   

13,016

   

-

   

265

   

6,471

   

19,752

Other resort operations

   

(1,855)

   

-

   

(8)

   

1,085

   

(778)

  Wholly owned domestic resorts

   

574,582

   

2,869

   

4,675

   

235,118

   

817,244

MGM China

   

298,701

   

5,325

   

(56)

   

147,243

   

451,213

CityCenter (50%)

   

12,991

   

-

   

-

   

-

   

12,991

Other unconsolidated resorts

   

11,533

   

120

   

-

   

-

   

11,653

Management and other operations

   

27,015

   

-

   

1

   

4,938

   

31,954

     

924,822

   

8,314

   

4,620

   

387,299

   

1,325,055

Stock compensation

   

(13,092)

   

-

   

-

   

-

   

(13,092)

Corporate 

   

(159,110)

   

7,081

   

29,108

   

23,426

   

(99,495)

   

$

752,620

 

$

15,395

 

$

33,728

 

$

410,725

 

$

1,212,468

                               
                               
                               

Six Months Ended June 30, 2013

 
   

Operating
income (loss)

 

Preopening and
start-up
expenses

 

Property
transactions, net

 

Depreciation and
amortization

 

Adjusted EBITDA

Bellagio

 

$

137,778

 

$

-

 

$

341

 

$

50,982

 

$

189,101

MGM Grand Las Vegas

   

70,372

   

-

   

770

   

40,498

   

111,640

Mandalay Bay

   

44,236

   

474

   

2,436

   

41,626

   

88,772

The Mirage 

   

25,264

   

-

   

4,295

   

25,130

   

54,689

Luxor

   

12,872

   

112

   

2,927

   

17,951

   

33,862

New York-New York 

   

35,695

   

-

   

530

   

10,847

   

47,072

Excalibur

   

27,544

   

-

   

13

   

7,323

   

34,880

Monte Carlo

   

25,041

   

58

   

2,952

   

9,318

   

37,369

Circus Circus Las Vegas

   

412

   

-

   

10

   

9,431

   

9,853

MGM Grand Detroit

   

67,080

   

-

   

-

   

11,235

   

78,315

Beau Rivage

   

15,159

   

-

   

(291)

   

15,471

   

30,339

Gold Strike Tunica

   

10,786

   

-

   

1,174

   

6,545

   

18,505

Other resort operations

   

1,113

   

-

   

(1)

   

1,131

   

2,243

  Wholly owned domestic resorts

   

473,352

   

644

   

15,156

   

247,488

   

736,640

MGM China

   

225,251

   

4,632

   

345

   

155,042

   

385,270

CityCenter (50%)

   

12,180

   

376

   

-

   

-

   

12,556

Other unconsolidated resorts

   

10,470

   

-

   

-

   

-

   

10,470

Management and other operations

   

18,894

   

-

   

-

   

5,927

   

24,821

     

740,147

   

5,652

   

15,501

   

408,457

   

1,169,757

Stock compensation

   

(13,189)

   

-

   

-

   

-

   

(13,189)

Corporate 

   

(193,539)

   

-

   

81,121

   

21,612

   

(90,806)

   

$

533,419

 

$

5,652

 

$

96,622

 

$

430,069

 

$

1,065,762

 

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,

   

2014

 

2013

 

2014

 

2013

Adjusted EBITDA

$

585,986

 

$

541,390

 

$

1,212,468

 

$

1,065,762

  Preopening and start-up expenses

 

(9,759)

   

(3,506)

   

(15,395)

   

(5,652)

  Property transactions, net

 

(33,170)

   

(88,131)

   

(33,728)

   

(96,622)

  Depreciation and amortization

 

(203,070)

   

(218,151)

   

(410,725)

   

(430,069)

Operating income 

 

339,987

   

231,602

   

752,620

   

533,419

                         

Non-operating income (expense):

                     

  Interest expense, net of amounts capitalized

 

(203,936)

   

(214,500)

   

(413,323)

   

(439,947)

  Other, net

 

(14,887)

   

(43,815)

   

(30,044)

   

(67,176)

     

(218,823)

   

(258,315)

   

(443,367)

   

(507,123)

                         

Income (loss) before income taxes

 

121,164

   

(26,713)

   

309,253

   

26,296

  Benefit (provision) for income taxes

 

52,540

   

(3,865)

   

56,059

   

(34,296)

Net income (loss)

 

173,704

   

(30,578)

   

365,312

   

(8,000)

  Less: Net income attributable to noncontrolling interests

 

(68,160)

   

(62,380)

   

(151,608)

   

(78,412)

Net income (loss) attributable to MGM Resorts International     

$

105,544

 

$

(92,958)

 

$

213,704

 

$

(86,412)

                         
                         

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,

   

2014

 

2013

 

2014

 

2013

 

Bellagio

                     
 

   Occupancy %

 

95.8%

   

95.9%

   

94.0%

   

94.3%

 

   Average daily rate (ADR)

 

$259

   

$247

   

$261

   

$244

 

   Revenue per available room (REVPAR)

 

$248

   

$237

   

$245

   

$230

                         
 

MGM Grand Las Vegas

                     
 

   Occupancy %

 

98.1%

   

96.4%

   

96.7%

   

94.7%

 

   ADR

 

$150

   

$143

   

$155

   

$144

 

   REVPAR

 

$147

   

$138

   

$150

   

$137

                         
 

Mandalay Bay 

                     
 

   Occupancy %

 

94.9%

   

94.2%

   

93.6%

   

91.5%

 

   ADR

 

$200

   

$192

   

$201

   

$187

 

   REVPAR

 

$190

   

$181

   

$188

   

$171

                         
 

The Mirage

                     
 

   Occupancy %

 

96.9%

   

96.3%

   

95.8%

   

95.7%

 

   ADR

 

$162

   

$152

   

$166

   

$151

 

   REVPAR

 

$157

   

$147

   

$159

   

$144

                         
 

Luxor 

                     
 

   Occupancy %

 

97.2%

   

95.2%

   

95.3%

   

92.9%

 

   ADR

 

$97

   

$90

   

$99

   

$88

 

   REVPAR

 

$94

   

$86

   

$94

   

$82

                         
 

New York-New York

                     
 

   Occupancy %

 

99.2%

   

98.3%

   

98.6%

   

97.8%

 

   ADR

 

$123

   

$115

   

$125

   

$113

 

   REVPAR

 

$122

   

$113

   

$123

   

$111

                         
 

Excalibur 

                     
 

   Occupancy %

 

98.0%

   

95.5%

   

94.6%

   

90.6%

 

   ADR

 

$80

   

$74

   

$81

   

$73

 

   REVPAR

 

$79

   

$71

   

$77

   

$66

                         
 

Monte Carlo 

                     
 

   Occupancy %

 

99.3%

   

98.0%

   

97.7%

   

96.9%

 

   ADR

 

$114

   

$107

   

$115

   

$105

 

   REVPAR

 

$113

   

$105

   

$112

   

$102

                         
 

Circus Circus Las Vegas

                     
 

   Occupancy %

 

84.4%

   

85.5%

   

79.6%

   

79.5%

 

   ADR

 

$60

   

$55

   

$61

   

$55

 

   REVPAR

 

$50

   

$47

   

$49

   

$43

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

                                 
   

Three Months Ended

 

Six Months Ended

       
   

June 30,

 

June 30,

 

June 30,

 

June 30,

       
   

2014

 

2013

 

2014

 

2013

       
                                 
 

Aria

$

245,144

 

$

226,102

 

$

498,833

 

$

484,612

       
 

Vdara

 

26,867

   

24,355

   

53,117

   

46,414

       
 

Crystals

 

16,649

   

15,494

   

33,401

   

29,451

       
 

Mandarin Oriental

 

15,411

   

13,774

   

31,852

   

27,494

       
 

 Resort operations

 

304,071

   

279,725

   

617,203

   

587,971

       
 

Residential operations

 

15,804

   

53,449

   

39,089

   

60,345

       
   

$

319,875

 

$

333,174

 

$

656,292

 

$

648,316

       
                                 
                                 
                                 

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,

       
   

2014

 

2013

 

2014

 

2013

       
                                 

Adjusted EBITDA

$

77,709

 

$

72,666

 

$

172,767

 

$

159,653

       

  Preopening and start-up expenses

 

-

   

-

   

-

   

(752)

       

  Property transactions, net

 

(16,121)

   

(10,113)

   

(18,696)

   

(10,113)

       

  Depreciation and amortization

 

(86,423)

   

(86,327)

   

(173,943)

   

(172,730)

       

Operating loss

 

(24,835)

   

(23,774)

   

(19,872)

   

(23,942)

       
                                 

Non-operating income (expense):

                             

  Interest expense - sponsor notes

 

-

   

(25,935)

   

-

   

(50,883)

       

  Interest expense - other

 

(22,518)

   

(42,984)

   

(45,370)

   

(86,454)

       

  Other, net

 

(4,435)

   

(33,073)

   

(6,748)

   

(32,330)

       
     

(26,953)

   

(101,992)

   

(52,118)

   

(169,667)

       

Net loss

$

(51,788)

 

$

(125,766)

 

$

(71,990)

 

$

(193,609)

       

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

                                 

Three Months Ended June 30, 2014

 
   
   

Operating
income (loss)

 

Preopening and
start-up
expenses

 

Property
transactions, net

 

Depreciation and
amortization

 

Adjusted EBITDA

 

Aria

 

$

(6,274)

 

$

-

 

$

3,016

 

$

64,472

 

$

61,214

 

Vdara

   

(3,283)

   

-

   

128

   

10,482

   

7,327

 

Crystals

   

4,430

   

-

   

126

   

6,646

   

11,202

 

Mandarin Oriental

   

(3,578)

   

-

   

44

   

4,710

   

1,176

 

 Resort operations

   

(8,705)

   

-

   

3,314

   

86,310

   

80,919

 

Residential operations

   

2,084

   

-

   

-

   

113

   

2,197

 

Development and administration

   

(18,214)

   

-

   

12,807

   

-

   

(5,407)

 
   

$

(24,835)

 

$

-

 

$

16,121

 

$

86,423

 

$

77,709

 
                                 
                                 
                                 

Three Months Ended June 30, 2013

 
   
   

Operating
income (loss)

 

Preopening and
start-up
expenses

 

Property
transactions, net

 

Depreciation and
amortization

 

Adjusted EBITDA

 

Aria

 

$

(14,713)

 

$

-

 

$

278

 

$

64,018

 

$

49,583

 

Vdara

   

(3,894)

   

-

   

-

   

10,394

   

6,500

 

Crystals

   

3,156

   

-

   

-

   

6,876

   

10,032

 

Mandarin Oriental

   

(3,601)

   

-

   

-

   

4,676

   

1,075

 

 Resort operations

   

(19,052)

   

-

   

278

   

85,964

   

67,190

 

Residential operations

   

(410)

   

-

   

9,835

   

355

   

9,780

 

Development and administration

   

(4,312)

   

-

   

-

   

8

   

(4,304)

 
   

$

(23,774)

 

$

-

 

$

10,113

 

$

86,327

 

$

72,666

 

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

                                 

Six Months Ended June 30, 2014

 
                       
   

Operating income
(loss)

 

Preopening and
start-up
expenses

 

Property
transactions, net

 

Depreciation and
amortization

 

Adjusted EBITDA

 

Aria

 

$

1,282

 

$

-

 

$

4,323

 

$

130,101

 

$

135,706

 

Vdara

   

(6,234)

   

-

   

128

   

20,707

   

14,601

 

Crystals

   

8,663

   

-

   

205

   

13,388

   

22,256

 

Mandarin Oriental

   

(6,288)

   

-

   

44

   

9,429

   

3,185

 

 Resort operations

   

(2,577)

   

-

   

4,700

   

173,625

   

175,748

 

Residential operations

   

4,691

   

-

   

1,114

   

318

   

6,123

 

Development and administration

   

(21,986)

   

-

   

12,882

   

-

   

(9,104)

 
   

$

(19,872)

 

$

-

 

$

18,696

 

$

173,943

 

$

172,767

 
                                 
                                 
                                 

Six Months Ended June 30, 2013

 
   
   

Operating income
(loss)

 

Preopening and
start-up
expenses

 

Property
transactions, net

 

Depreciation and
amortization

 

Adjusted EBITDA

 

Aria

 

$

(1,614)

 

$

694

 

$

278

 

$

127,788

 

$

127,146

 

Vdara

   

(9,190)

   

-

   

-

   

21,209

   

12,019

 

Crystals

   

5,159

   

58

   

-

   

13,320

   

18,537

 

Mandarin Oriental

   

(7,346)

   

-

   

-

   

9,686

   

2,340

 

 Resort operations

   

(12,991)

   

752

   

278

   

172,003

   

160,042

 

Residential operations

   

(1,454)

   

-

   

9,835

   

711

   

9,092

 

Development and administration

   

(9,497)

   

-

   

-

   

16

   

(9,481)

 
   

$

(23,942)

 

$

752

 

$

10,113

 

$

172,730

 

$

159,653

 

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

       
 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

2014

 

2013

 

2014

 

2013

Aria

                     

   Occupancy %

 

94.4%

   

91.7%

   

93.2%

   

90.3%

   ADR

 

$217

   

$212

   

$223

   

$210

   REVPAR

 

$205

   

$194

   

$208

   

$190

                       

Vdara

                     

   Occupancy %

 

94.9%

   

91.4%

   

92.2%

   

88.6%

   ADR

 

$175

   

$165

   

$180

   

$162

   REVPAR

 

$166

   

$150

   

$166

   

$144

 

 

 

SOURCE MGM Resorts International

For further information: Investment Community, SARAH ROGERS, Vice President Investor Relations, (702) 693-8654 or srogers@mgmresorts.com; or News Media, CLARK DUMONT, Senior Vice President of Corporate Communications, (702) 891-1836 or cdumont@mgmresorts.com


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