MGM Resorts International Reports Second Quarter Financial And Operating Results

August 02, 2018

LAS VEGAS, Aug. 2, 2018 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended June 30, 2018. On January 1, 2018, the Company adopted the new revenue recognition accounting standard (ASC 606). As such, certain previously reported 2017 numbers have been retrospectively adjusted under the new standard to assist with comparability to the prior period.

"Our second quarter came in better than we expected and we made significant progress to capitalize on future growth opportunities in sports betting and Japan," said Jim Murren, Chairman and CEO of MGM Resorts International. "Earlier this week, we announced major alliances with GVC, Boyd Gaming and the NBA to cement our leadership position in the developing sports betting market in the U.S. Further, the recent passage of Japan's Integrated Resort Implementation Act is another historic milestone, and we believe we are well positioned in that market."

Said Mr. Murren, "We believe our continued focus on maximizing our margins, the near-term completion of our development pipeline, and our ability to accretively sell assets to MGM Growth Properties, will further accelerate our free cash flow generation.  We are confident that we will continue to execute on our long-term strategies and deliver value to our shareholders, as evidenced by the nearly $600 million in share repurchases we made during the quarter."

Second Quarter 2018 Financial Highlights:

  • Diluted earnings per share for the second quarter of $0.21, compared to diluted earnings per share of $0.36 in the prior year quarter;
  • Net revenues increased 3% over the prior year quarter at the Company's domestic resorts to $2.2 billion. Excluding Park MGM, net revenues increased 4% compared to the prior year quarter;
  • REVPAR(1) increased 2.8% compared to the prior year quarter at the Company's Las Vegas Strip resorts;
  • Operating income of $449 million at the Company's domestic resorts, compared to $520 million in the prior year quarter, which benefited from $41 million related to the NV Energy exit fee modification and $36 million related to the Borgata property tax settlement;
  • Net income attributable to MGM Resorts of $124 million, compared to $210 million in the prior year quarter;
  • Domestic resorts Adjusted Property EBITDA(2) of $626 million, a 5% decrease compared to $657 million in the prior year quarter, which benefited from the $36 million Borgata property tax settlement. Excluding Park MGM, Adjusted Property EBITDA decreased 2% compared to the prior year quarter;
  • Operating margin of 20.7% in the current quarter at the Company's domestic resorts, a 394 basis point decrease compared to the prior year quarter;
  • Adjusted Property EBITDA margin of 28.9% in the current quarter at the Company's domestic resorts, a 227 basis point decrease compared to the prior year quarter, and a 183 basis point decrease compared to the prior year quarter excluding Park MGM;
  • MGM China operating income of $46 million in both the current and the prior year quarters and Adjusted Property EBITDA of $120 million, up slightly compared to the prior year quarter, primarily as a result of the ramp-up phase of operations at MGM Cotai and lower win percentages for both main floor and VIP table games compared to the prior year quarter;
  • CityCenter operating income from resort operations of $76 million and Adjusted EBITDA from resort operations of $131 million, a 25% increase in Adjusted EBITDA from resort operations compared to the prior year quarter;
  • Distributed $65 million via the Company's quarterly dividend of $0.12 per share; and
  • Repurchased $595 million of the Company's common shares in the second quarter.

Certain Items Affecting Second Quarter Results

The following table lists certain other 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,


2018



2017


Borgata property tax settlement


$



$

0.04


NV Energy exit expense






0.05


Preopening and start-up expenses



(0.03)




(0.02)


Property transactions, net



(0.02)




(0.01)


Domestic Resorts

Casino revenue for the second quarter of 2018 increased 8% compared to the prior year quarter, due primarily to a 14% increase in table games win primarily driven by the Company's Las Vegas Strip resorts and a 5% increase in slots win, primarily driven by an increase in slots volume at the Company's other domestic resorts.

The following table shows key gaming statistics for the Company's Las Vegas Strip resorts:

Three Months Ended June 30,


2018



2017




(Dollars in millions)


Table Games Drop


$

911



$

872


Table Games Win %



25.2

%



20.9

%

Slots Handle


$

3,098



$

3,053


Slots Hold %



9.1

%



9.0

%

The following table shows key gaming statistics for the Company's other domestic resorts:

Three Months Ended June 30,


2018



2017




(Dollars in millions)


Table Games Drop


$

969



$

954


Table Games Win %



18.9

%



18.8

%

Slots Handle


$

5,274



$

4,890


Slots Hold %



9.0

%



9.1

%

Domestic resorts rooms revenue increased 1% compared to the prior year quarter due primarily to a 2.8% increase in REVPAR at the Company's Las Vegas Strip resorts.

The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

Three Months Ended June 30,


2018



2017


Occupancy %


93

%


94

%

Average Daily Rate (ADR)

$

161


$

156


Revenue per Available Room (REVPAR)

$

150


$

146


Operating income at the Company's domestic resorts was $449 million for the second quarter of 2018 and was negatively impacted by disruption related to the repositioning and rebranding at Park MGM. Operating income in the prior year quarter was $520 million, which benefited from $36 million related to Borgata's share of a property tax settlement from Atlantic City, as well as $41 million related to a modification of the 2016 NV Energy exit fee. Domestic Resorts Adjusted Property EBITDA decreased 5% to $626 million in the second quarter of 2018. Excluding Park MGM, Adjusted Property EBITDA decreased 2% compared to the prior year quarter.

Mr Murren continued, "Our Las Vegas Strip resorts benefited in the prior year third quarter from a stronger citywide convention base, two major boxing events and a higher than normal table games hold. The difficult comparison in citywide convention attendees has resulted in a more negative than anticipated hotel mix shift creating short-term competitive rate pressure in the current year third quarter. In addition, the transition of Park MGM continues to create short-term headwinds but is on track to complete its transformation by the end of this year."

As a result of these factors, the Company expects third quarter net revenues at its Las Vegas Strip resorts to be lower by approximately 8% to 10%, with REVPAR down 5% to 7%. The Company also expects Las Vegas Strip Adjusted Property EBITDA margins to be approximately 28%, or around 29% excluding Park MGM.

The Company expects its full year 2018 net revenues and REVPAR at its Las Vegas Strip resorts to decrease by a low single digit percentage, and an Adjusted Property EBITDA margin of approximately 29%, or around 30% excluding Park MGM.

Corporate Expense

Corporate expense, including share-based compensation for corporate employees was $103 million in the second quarter of 2018, an increase of $24 million compared to the prior year quarter, due primarily to an increase in corporate brand campaign expenses of $9 million and the inclusion of MGM China corporate expenses of $5 million. Certain expenses incurred by MGM China are now classified as part of the Company's corporate expense in 2018. Prior to 2018, such expenses had been classified within general and administrative expense.

MGM China

Key second quarter results for MGM China include:

  • Net revenues of $561 million, a 32% increase compared to the prior year quarter. The current quarter benefited from the opening of MGM Cotai on February 13, 2018, which contributed $185 million of net revenues;
  • Main floor table games win increased 42% compared to the prior year quarter due to the opening of MGM Cotai;
  • VIP table games win decreased 7% compared to the prior year quarter due primarily to a decrease in the VIP win percentage to 2.3% in the current quarter partially offset by a 19% increase in turnover predominantly at MGM Macau;
  • Operating income was $46 million in both the current and the prior year quarters;
  • Adjusted Property EBITDA increased 1% to $120 million compared to $119 million in the prior year quarter. The current quarter included $10 million of license fee expense compared to $8 million in the prior year quarter; and
  • Operating margin was 8.3% in the current year quarter, and Adjusted Property EBITDA margin was 21.4% in the current quarter compared to 28.0% in the prior year quarter, due primarily to the ramp-up phase of operations at MGM Cotai and lower win percentages for both main floor and VIP table games compared to the prior year quarter.

The following table shows key gaming statistics for MGM China:

Three Months Ended June 30,


2018



2017




(Dollars in millions)


VIP Table Games Turnover


$

10,296



$

8,648


VIP Table Games Win %



2.3

%



2.9

%

Main Floor Table Games Drop


$

1,931



$

1,224


Main Floor Table Games Win %



17.4

%



19.3

%

MGM China paid the previously announced $47 million final 2017 dividend in June 2018, of which $26 million was received by MGM Resorts.

Unconsolidated Affiliates

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

Three Months Ended June 30,


2018



2017




(In thousands)


CityCenter


$

46,070



$

37,702


Other



1,870




2,937




$

47,940



$

40,639


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

  • Net revenues were $344 million, a 13% increase compared to the prior year quarter, due primarily to increase in casino and non-casino revenues;
  • Aria's table games win increased 20%, due to an 11% increase in table games drop and an increase in table games hold percentage to 29.1% in the current quarter compared to 26.8% in the prior year quarter;
  • Aria's slots win increased 12%, due primarily to a 10% increase in volume compared to the prior year quarter;
  • REVPAR at Aria increased 5% compared to the prior year quarter to $238;
  • REVPAR at Vdara increased 5% compared to the prior year quarter to $193;
  • Operating income from resort operations was $76 million compared to operating income of $60 million in the prior year quarter; and
  • Adjusted EBITDA from resort operations was $131 million, a 25% increase compared to the prior year quarter.

In May 2018, CityCenter paid a $400 million dividend, of which MGM Resorts received its 50% share, or $200 million.

MGM Growth Properties

During the second quarter of 2018, the Company made rent payments to MGM Growth Properties Operating Partnership LP (the "MGP Operating Partnership") in the amount of $193 million and received distributions of $82 million from the MGP Operating Partnership. On June 15, 2018, the Board of Directors of MGP Growth Properties LLC ("MGP") approved a quarterly dividend of $0.43 per Class A share (based on a $1.72 dividend on an annualized basis) totaling $30 million and representing a 2.4% increase over the prior annual dividend rate, which was paid on July 16, 2018 to holders of record on June 29, 2018. The Company concurrently received an $84 million distribution attributable to its ownership of MGP Operating Partnership units.

On July 6, 2018, MGP completed the previously announced acquisition of the Hard Rock Rocksino Northfield Park for approximately $1.06 billion. MGP funded the acquisition with cash on hand and borrowings under the MGP Operating Partnership senior secured credit facility.

MGM Resorts Dividend and Share Repurchases

On August 2, 2018, the Company's Board of Directors approved a quarterly dividend of $0.12 per share totaling approximately $65 million. The dividend will be payable on September 14, 2018 to holders of record on September 10, 2018.

In May 2018, MGM Resorts completed its $1.0 billion share repurchase program and announced a new $2 billion share repurchase program. During the quarter MGM Resorts repurchased approximately 19 million shares of its common stock at an average price of $31.30 per share for an aggregate amount of $595 million. Approximately $1.7 billion remains under the new $2 billion share repurchase program. All shares repurchased under the Company's program have been retired.

Financial Position

The Company's cash balance at June 30, 2018 was $1.3 billion, which included $448 million at MGM China and $290 million at the MGP Operating Partnership. At June 30, 2018, the Company had $13.6 billion of principal amount of indebtedness outstanding, including $231 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $3.6 billion MGP Operating Partnership senior secured credit facility and $2.1 billion outstanding under the $3.0 billion MGM China credit facility.

In June 2018, the Company issued $1 billion in aggregate principal amount of 5.750% senior notes due 2025 for net proceeds of $986 million.

"We are gratified by the continued support of the investment community which allowed us to upsize our most recent offering to $1 billion," said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. "We remain committed to achieving our consolidated net leverage target of 3 to 4 times through continued growth of our cash flows."

Conference Call Details

MGM Resorts will host a conference call at 8:30 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 http://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 2828989. A replay of the call will be available through Thursday, August 9, 2018. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10121912. The call will be archived at http://investors.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at http://investors.mgmresorts.com for reference during the earnings call.

  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, NV energy exit expense, and property transactions, net. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense, which are not allocated to each property. "Adjusted Property EBITDA margin" is Adjusted Property EBITDA divided by net revenues. 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, Adjusted Property EBITDA, and Adjusted Property EBITDA margin 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.

Adjusted EBITDA, Adjusted Property EBITDA, and Adjusted Property EBITDA margin should not be construed as alternatives to operating income or net income, as indicators of our performance; or as alternatives to cash flows from operating activities, as measures of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA, Adjusted Property EBITDA, or Adjusted Property EBITDA margin. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA, or Adjusted Property EBITDA margin information may calculate Adjusted EBITDA or Adjusted Property EBITDA in a different manner.

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.

The Company does not provide reconciliations of Adjusted EBITDA, Adjusted Property EBITDA, or Adjusted Property EBITDA margin to net income on a forward-looking basis because the Company is unable to forecast the amount or significance of certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items include gains or losses on sale or consolidation transactions, accelerated depreciation, impairment charges, gains or losses on retirement of debt and variations in effective tax rate, which are difficult to predict and estimate and are primarily dependent on future events, but which are excluded from the Company's calculations of Adjusted EBITDA, Adjusted Property EBITDA, and Adjusted Property EBITDA margin.

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 28 unique hotel offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company in 2018 opened MGM COTAI in Macau and the first Bellagio branded hotel in Shanghai. It also is developing MGM Springfield in Massachusetts. The 78,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information visit us 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, the Company's expectations regarding future results and the Company's financial outlook (including REVPAR and other guidance), the Company's ability to generate future cash flow growth, return value to shareholders and further de-lever, expectations in relation to changes in applicable laws and regulations, and the Company's ability to execute its strategic plan (including the execution of the Company's development projects) and capital allocations strategy. 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,



2018


2017


2018


2017

Revenues:













Casino

$

1,332,214


$

1,172,758


$

2,726,530


$

2,444,232


Rooms


563,871



541,755



1,103,351



1,100,567


Food and beverage


494,808



485,098



950,219



954,434


Entertainment, retail and other


363,242



353,230



692,992



670,959


Reimbursed costs


104,560



99,292



207,840



199,507




2,858,695



2,652,133



5,680,932



5,369,699

Expenses:













Casino


741,531



627,361



1,504,180



1,294,296


Rooms


202,968



187,116



392,026



375,785


Food and beverage


376,985



363,011



730,374



716,173


Entertainment, retail and other


243,370



243,836



470,204



467,225


Reimbursed costs


104,560



99,292



207,840



199,507


General and administrative


438,453



354,349



856,343



743,137


Corporate expense


103,438



79,448



202,947



152,580


Preopening and start-up expenses 


19,077



21,093



85,994



36,159


Property transactions, net


16,970



13,243



22,868



14,939


NV Energy exit expense


-



(40,629)



-



(40,629)


Depreciation and amortization


296,208



244,754



565,030



494,523




2,543,560



2,192,874



5,037,806



4,453,695














Income from unconsolidated affiliates


47,940



40,639



79,706



80,405














Operating income


363,075



499,898



722,832



996,409














Non-operating income (expense):













Interest expense, net of amounts capitalized


(181,493)



(174,058)



(349,402)



(348,117)


Non-operating items from unconsolidated affiliates


(11,068)



(10,556)



(20,078)



(17,477)


Other, net


(6,381)



(751)



(8,297)



(1,568)




(198,942)



(185,365)



(377,777)



(367,162)














Income before income taxes


164,133



314,533



345,055



629,247


Benefit (provision) for income taxes


(23,710)



(73,660)



61,669



(135,800)














Net income


140,423



240,873



406,724



493,447


Less: Net income attributable to noncontrolling interests


(16,646)



(31,009)



(59,503)



(77,171)

Net income attributable to MGM Resorts International

$

123,777


$

209,864


$

347,221


$

416,276














Earnings per share:













Basic

$

0.21


$

0.36


$

0.60


$

0.72


Diluted

$

0.21


$

0.36


$

0.60


$

0.72














Weighted average common shares outstanding:













Basic


548,433



574,931



556,586



574,668


Diluted


554,339



582,056



563,108



581,112

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)




















June 30,


December 31,




2018


2017









      ASSETS

Current assets:







Cash and cash equivalents

$

1,272,872


$

1,499,995


Accounts receivable, net


497,350



542,273


Inventories


109,130



102,292


Income tax receivable


23,124



42,551


Prepaid expenses and other


180,640



189,244



Total current assets


2,083,116



2,376,355









Property and equipment, net


19,863,078



19,635,459









Other assets:







Investments in and advances to unconsolidated affiliates


882,940



1,033,297


Goodwill 


1,801,034



1,806,531


Other intangible assets, net


3,776,770



3,877,960


Other long-term assets, net


570,222



430,440



Total other assets


7,030,966



7,148,228




$

28,977,160


$

29,160,042

















LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:







Accounts payable

$

268,140


$

255,028


Construction payable


418,945



474,807


Current portion of long-term debt


-



158,042


Accrued interest on long-term debt


140,184



135,785


Other accrued liabilities


2,237,524



2,114,635



Total current liabilities


3,064,793



3,138,297









Deferred income taxes, net 


1,226,397



1,295,375

Long-term debt, net


13,513,341



12,751,052

Other long-term obligations


245,720



284,416

Redeemable noncontrolling interest


86,968



79,778

Stockholders' equity:







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







issued and outstanding 537,866,780 and 566,275,789 shares


5,379



5,663


Capital in excess of par value


4,413,814



5,357,709


Retained earnings


2,431,186



2,217,299


Accumulated other comprehensive loss


(3,237)



(3,610)



Total MGM Resorts International stockholders' equity


6,847,142



7,577,061


Noncontrolling interests


3,992,799



4,034,063



Total stockholders' equity


10,839,941



11,611,124




$

28,977,160


$

29,160,042

 

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,


2018


2017


2018


2017

Bellagio

$

346,377


$

318,451


$

707,165


$

665,869

MGM Grand Las Vegas


311,090



304,842



604,896



577,828

Mandalay Bay


251,890



252,576



496,455



513,471

The Mirage 


157,881



150,531



303,540



326,517

Luxor


103,708



102,592



200,459



205,367

New York-New York 


92,947



89,584



189,061



180,651

Excalibur


84,233



83,791



163,655



163,695

Park MGM


43,345



65,885



99,602



139,297

Circus Circus Las Vegas


63,043



62,578



121,785



121,823

MGM Grand Detroit


153,211



142,753



300,746



286,735

Beau Rivage


102,793



97,125



199,488



188,773

Gold Strike Tunica


42,273



42,643



83,920



86,080

Borgata


207,859



213,791



400,300



419,386

MGM National Harbor


202,353



178,246



390,603



351,861

  Domestic resorts


2,163,003



2,105,388



4,261,675



4,227,353

MGM Macau


376,610



423,911



887,480



899,327

MGM Cotai


184,740



-



269,731



-

  MGM China


561,350



423,911



1,157,211



899,327

Management and other operations


134,342



122,834



262,046



243,019


$

2,858,695


$

2,652,133


$

5,680,932


$

5,369,699





































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,


2018


2017


2018


2017

Bellagio

$

126,604


$

111,221


$

267,001


$

240,562

MGM Grand Las Vegas


92,118



94,342



182,199



168,084

Mandalay Bay


66,983



68,332



135,766



146,504

The Mirage 


39,768



38,814



72,617



100,992

Luxor


33,556



32,932



62,545



65,747

New York-New York 


33,425



33,166



70,336



67,076

Excalibur


28,578



28,685



55,628



57,477

Park MGM


(830)



16,762



8,373



39,197

Circus Circus Las Vegas


15,703



16,236



30,594



32,183

MGM Grand Detroit


52,135



45,183



98,526



89,003

Beau Rivage


24,393



21,210



47,468



41,496

Gold Strike Tunica


12,400



13,070



24,809



27,548

Borgata


50,917



100,087



94,149



159,504

MGM National Harbor


49,970



36,859



92,076



68,723

  Domestic resorts


625,720



656,899



1,242,087



1,304,096

MGM Macau (1)


99,813



118,906



245,648



264,103

MGM Cotai


20,062



-



25,978



-

  MGM China


119,875



118,906



271,626



264,103

Unconsolidated resorts (2)


47,940



40,639



79,706



80,405

Management and other operations


12,491



8,693



20,336



19,411


$

806,026


$

825,137


$

1,613,755


$

1,668,015


(1) In 2017, MGM Macau included certain expenses classified as corporate expense in 2018.


(2) 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, 2018




















Operating
income (loss)


NV Energy exit
expense


Preopening and
start-up
expenses


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Bellagio

$

104,336


$

-


$

-


$

104


$

22,164


$

126,604

MGM Grand Las Vegas


75,477



-



-



267



16,374



92,118

Mandalay Bay


43,811



-



-



53



23,119



66,983

The Mirage 


30,072



-



-



512



9,184



39,768

Luxor


23,302



-



-



179



10,075



33,556

New York-New York 


27,211



-



-



65



6,149



33,425

Excalibur


23,728



-



-



-



4,850



28,578

Park MGM


(30,517)



-



1,937



15,410



12,340



(830)

Circus Circus Las Vegas


11,284



-



-



16



4,403



15,703

MGM Grand Detroit


46,668



-



-



-



5,467



52,135

Beau Rivage


17,785



-



-



26



6,582



24,393

Gold Strike Tunica


10,260



-



-



-



2,140



12,400

Borgata


35,974



-



-



451



14,492



50,917

MGM National Harbor


29,316



-



45



48



20,561



49,970

  Domestic resorts


448,707



-



1,982



17,131



157,900



625,720

MGM Macau


82,226



-



-



(167)



17,754



99,813

MGM Cotai


(35,810)



-



3,799



6



52,067



20,062

  MGM China


46,416



-



3,799



(161)



69,821



119,875

Unconsolidated resorts (1)


47,940



-



-



-



-



47,940

Management and other operations


10,644



-



-



-



1,847



12,491



553,707



-



5,781



16,970



229,568



806,026

Stock compensation


(17,286)



-



-



-



-



(17,286)

Corporate 


(173,346)



-



13,296



-



66,640



(93,410)


$

363,075


$

-


$

19,077


$

16,970


$

296,208


$

695,330























































Three Months Ended June 30, 2017




















Operating
income (loss)


NV Energy exit
expense


Preopening and
start-up
expenses


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Bellagio

$

96,154


$

(6,970)


$

-


$

38


$

21,999


$

111,221

MGM Grand Las Vegas


82,724



(7,424)



-



611



18,431



94,342

Mandalay Bay


52,315



(8,524)



-



(10)



24,551



68,332

The Mirage 


32,935



(4,043)



-



117



9,805



38,814

Luxor


25,840



(3,394)



-



1,165



9,321



32,932

New York-New York 


28,787



(2,025)



-



54



6,350



33,166

Excalibur


26,553



(2,658)



-



203



4,587



28,685

Park MGM


(2,104)



(2,461)



439



9,959



10,929



16,762

Circus Circus Las Vegas


14,261



(3,130)



450



496



4,159



16,236

MGM Grand Detroit


39,489



-



-



-



5,694



45,183

Beau Rivage


15,253



-



-



5



5,952



21,210

Gold Strike Tunica


10,792



-



-



6



2,272



13,070

Borgata


78,761



-



1,242



416



19,668



100,087

MGM National Harbor


17,870



-



153



-



18,836



36,859

  Domestic resorts


519,630



(40,629)



2,284



13,060



162,554



656,899

MGM China


45,625



-



13,334



183



59,764



118,906

Unconsolidated resorts (1)


40,639



-



-



-



-



40,639

Management and other operations


6,903



-



-



-



1,790



8,693



612,797



(40,629)



15,618



13,243



224,108



825,137

Stock compensation


(14,632)



-



-



-



-



(14,632)

Corporate 


(98,267)



-



5,475



-



20,646



(72,146)


$

499,898


$

(40,629)


$

21,093


$

13,243


$

244,754


$

738,359


(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)



















Six Months Ended June 30, 2018




















Operating
income (loss)


NV Energy exit
expense


Preopening and
start-up
expenses


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Bellagio

$

222,220


$

-


$

-


$

674


$

44,107


$

267,001

MGM Grand Las Vegas


148,808



-



-



615



32,776



182,199

Mandalay Bay


90,469



-



-



(49)



45,346



135,766

The Mirage 


52,686



-



-



1,620



18,311



72,617

Luxor


42,406



-



-



234



19,905



62,545

New York-New York 


57,890



-



-



152



12,294



70,336

Excalibur


45,806



-



-



(35)



9,857



55,628

Park MGM


(39,873)



-



5,358



17,864



25,024



8,373

Circus Circus Las Vegas


21,533



-



-



215



8,846



30,594

MGM Grand Detroit


87,532



-



-



-



10,994



98,526

Beau Rivage


34,319



-



-



26



13,123



47,468

Gold Strike Tunica


20,438



-



-



46



4,325



24,809

Borgata


64,412



-



-



860



28,877



94,149

MGM National Harbor


50,989



-



111



53



40,923



92,076

  Domestic resorts


899,635



-



5,469



22,275



314,708



1,242,087

MGM Macau


209,998



-



-



584



35,066



245,648

MGM Cotai


(108,553)



-



55,186



6



79,339



25,978

  MGM China


101,445



-



55,186



590



114,405



271,626

Unconsolidated resorts (1)


76,385



-



3,321



-



-



79,706

Management and other operations


16,624



-



-



-



3,712



20,336



1,094,089



-



63,976



22,865



432,825



1,613,755

Stock compensation


(32,903)



-



-



-



-



(32,903)

Corporate 


(338,354)



-



22,018



3



132,205



(184,128)


$

722,832


$

-


$

85,994


$

22,868


$

565,030


$

1,396,724























































Six Months Ended June 30, 2017




















Operating
income (loss)


NV Energy exit
expense


Preopening and
start-up
expenses


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Bellagio

$

203,264


$

(6,970)


$

-


$

123


$

44,145


$

240,562

MGM Grand Las Vegas


138,638



(7,424)



7



844



36,019



168,084

Mandalay Bay


105,860



(8,524)



-



(10)



49,178



146,504

The Mirage 


85,778



(4,043)



-



117



19,140



100,992

Luxor


48,934



(3,394)



-



1,164



19,043



65,747

New York-New York 


53,385



(2,025)



(8)



183



15,541



67,076

Excalibur


51,088



(2,658)



-



258



8,789



57,477

Park MGM


6,694



(2,461)



1,049



9,990



23,925



39,197

Circus Circus Las Vegas


25,968



(3,130)



450



735



8,160



32,183

MGM Grand Detroit


77,530



-



-



-



11,473



89,003

Beau Rivage


29,502



-



-



5



11,989



41,496

Gold Strike Tunica


22,957



-



-



(22)



4,613



27,548

Borgata


118,139



-



1,277



1,220



38,868



159,504

MGM National Harbor


28,202



-



227



-



40,294



68,723

  Domestic resorts


995,939



(40,629)



3,002



14,607



331,177



1,304,096

MGM China


121,030



-



23,158



332



119,583



264,103

Unconsolidated resorts (1)


80,405



-



-



-



-



80,405

Management and other operations


15,819



-



-



-



3,592



19,411



1,213,193



(40,629)



26,160



14,939



454,352



1,668,015

Stock compensation


(30,210)



-



-



-



-



(30,210)

Corporate 


(186,574)



-



9,999



-



40,171



(136,404)


$

996,409


$

(40,629)


$

36,159


$

14,939


$

494,523


$

1,501,401


(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 NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO ADJUSTED EBITDA

(In thousands)

(Unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


June 30,


June 30,


2018


2017


2018


2017

Net income attributable to MGM Resorts International

$

123,777


$

209,864


$

347,221


$

416,276

Plus: Net income attributable to noncontrolling interests


16,646



31,009



59,503



77,171

Net income


140,423



240,873



406,724



493,447

(Benefit) provision for income taxes


23,710



73,660



(61,669)



135,800

Income before income taxes


164,133



314,533



345,055



629,247













Non-operating (income) expense:












Interest expense, net of amounts capitalized


181,493



174,058



349,402



348,117

Other, net


17,449



11,307



28,375



19,045



198,942



185,365



377,777



367,162













Operating income


363,075



499,898



722,832



996,409

NV Energy exit expense


-



(40,629)



-



(40,629)

Preopening and start-up expenses


19,077



21,093



85,994



36,159

Property transactions, net


16,970



13,243



22,868



14,939

Depreciation and amortization


296,208



244,754



565,030



494,523

Adjusted EBITDA

$

695,330


$

738,359


$

1,396,724


$

1,501,401

 

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,


2018


2017


2018


2017


Bellagio









Occupancy %

95.6%


94.3%


94.5%


93.7%


Average daily rate (ADR)

$280


$274


$283


$281


Revenue per available room (REVPAR)

$268


$258


$268


$263











MGM Grand Las Vegas









Occupancy %

95.3%


93.9%


93.3%


92.6%


ADR

$179


$181


$183


$188


REVPAR

$170


$170


$171


$174











Mandalay Bay 









Occupancy %

93.4%


93.9%


89.3%


92.5%


ADR

$211


$203


$215


$216


REVPAR

$197


$190


$191


$200











The Mirage









Occupancy %

96.0%


96.7%


93.2%


94.3%


ADR

$178


$167


$179


$177


REVPAR

$170


$162


$167


$167











Luxor 









Occupancy %

96.1%


96.1%


94.9%


94.7%


ADR

$116


$111


$118


$118


REVPAR

$111


$107


$112


$112











New York-New York









Occupancy %

97.1%


97.1%


96.7%


96.2%


ADR

$139


$139


$146


$146


REVPAR

$135


$135


$142


$141











Excalibur 









Occupancy %

95.1%


95.5%


92.9%


93.0%


ADR

$97


$96


$100


$102


REVPAR

$93


$91


$93


$95











Park MGM









Occupancy %

80.3%


94.4%


84.2%


95.0%


ADR

$131


$115


$132


$122


REVPAR

$105


$108


$111


$116











Circus Circus Las Vegas









Occupancy %

85.1%


85.7%


81.9%


83.1%


ADR

$81


$79


$83


$84


REVPAR

$69


$68


$68


$70

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)
















Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2018


2017


2018


2017















Aria

$

311,798


$

273,624


$

583,679


$

555,694


Vdara


32,336



31,310



64,805



63,915



$

344,134


$

304,934


$

648,484


$

619,609















CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)
















Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2018


2017


2018


2017














Net income (loss)

$

54,395


$

37,960


$

(51,672)


$

82,521

Plus: Loss from discontinued operations


38



1,713



128,548



2,105

Net income from continuing operations


54,433



39,673



76,876



84,626














Non-operating (income) expense:












Interest expense, net of amounts capitalized


19,922



15,066



37,147



27,826

Other, net


567



4,323



(151)



3,705




20,489



19,389



36,996



31,531














Operating income


74,922



59,062



113,872



116,157

NV Energy exit expense


-



(8,250)



-



(8,250)

Property transactions, net


(883)



636



(1,929)



226

Depreciation and amortization


55,105



51,766



108,715



103,813

Adjusted EBITDA

$

129,144


$

103,214


$

220,658


$

211,946

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

















Three Months Ended June 30, 2018


















Operating income
(loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA


Aria

$

73,302


$

-


$

(937)


$

48,196


$

120,561


Vdara


3,168



-



54



6,909



10,131


 Resort operations


76,470



-



(883)



55,105



130,692


Other


(1,548)



-



-



-



(1,548)


$

74,922


$

-


$

(883)


$

55,105


$

129,144































Three Months Ended June 30, 2017

















Operating income
(loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA


Aria

$

57,016


$

(8,250)


$

636


$

44,921


$

94,323


Vdara


3,220



-



-



6,845



10,065


 Resort operations


60,236



(8,250)



636



51,766



104,388


Other


(1,174)



-



-



-



(1,174)


$

59,062


$

(8,250)


$

636


$

51,766


$

103,214

 


CITYCENTER HOLDINGS, LLC


RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA


(In thousands)


(Unaudited)


















Six Months Ended June 30, 2018



















Operating
income (loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA


Aria

$

109,361


$

-


$

(1,983)


$

94,989


$

202,367


Vdara


7,142



-



54



13,726



20,922


 Resort operations


116,503



-



(1,929)



108,715



223,289


Other


(2,631)



-



-



-



(2,631)



$

113,872


$

-


$

(1,929)


$

108,715


$

220,658


















































Six Months Ended June 30, 2017



















Operating
income (loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA


Aria

$

111,196


$

(8,250)


$

225


$

90,040


$

193,211


Vdara


7,172



-



1



13,773



20,946


 Resort operations


118,368



(8,250)



226



103,813



214,157


Other


(2,211)



-



-



-



(2,211)



$

116,157


$

(8,250)


$

226


$

103,813


$

211,946

 


CITYCENTER HOLDINGS, LLC


SUPPLEMENTAL DATA - HOTEL STATISTICS


(Unaudited)




Three Months Ended


Six Months Ended


June 30,


June 30,


June 30,


June 30,


2018


2017


2018


2017


Aria









   Occupancy %

92.7%


94.3%


91.0%


92.9%


   ADR

$257


$241


$265


$254


   REVPAR

$238


$228


$241


$236











Vdara









   Occupancy %

94.0%


90.6%


92.8%


90.3%


   ADR

$205


$202


$212


$212


   REVPAR

$193


$183


$196


$191

 

Cision View original content:http://www.prnewswire.com/news-releases/mgm-resorts-international-reports-second-quarter-financial-and-operating-results-300690915.html

SOURCE MGM Resorts International