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MGM Resorts International. : MGM Resorts International Reports Third Quarter Results

11/03/2011 | 08:26am US/Eastern
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LAS VEGAS, Nov. 3, 2011 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today reported improved financial results for the third quarter ended September 30, 2011. Diluted earnings per share attributable to MGM Resorts International was a loss of $0.25 per share compared to a loss of $0.72 per share in the prior year third quarter. The current quarter included an impairment charge of $0.11 per share compared to impairment charges of $0.51 in the prior year period.  The current quarter results also include a full quarter of results related to MGM China Holdings Limited ("MGM China"), which the Company began consolidating as of June 3, 2011.

Key results for the third quarter of 2011 included the following:

  • Consolidated net revenue was $2.2 billion compared to $1.6 billion in the prior year quarter; excluding MGM China, consolidated net revenues increased 3% compared to the prior year quarter;
  • Rooms revenue from wholly owned domestic resorts increased 11% with a 13% increase in REVPAR(1) at the Company's Las Vegas Strip resorts;
  • Consolidated operating income was $113 million compared to an operating loss of $206 million in the third quarter of 2010;
  • Consolidated Adjusted EBITDA(2) was $444 million in the 2011 quarter compared to $280 million in the 2010 quarter;
  • The Company's wholly owned domestic resorts earned Adjusted Property EBITDA of $348 million, up 10% compared to the prior year quarter;
  • MGM China's Adjusted Property EBITDA was $139 million ($150 million before branding fees) compared to $84 million in the prior year quarter; and
  • CityCenter's Adjusted Property EBITDA related to resort operations increased 26% to $50 million.

"Our results show the inherent operating leverage in our business as this quarter represents the third consecutive quarter of year-over-year revenue, Adjusted Property EBITDA and Adjusted Property EBITDA margin growth for our wholly owned domestic resorts.  Our forward booking trends remain strong both for our consumer retail segments and corporate events," said Jim Murren, MGM Resorts International Chairman and CEO.  "MGM China's operating trends continue to improve with cash flow before branding fees increasing approximately 80% year-over-year.  We are extremely pleased with our Cotai development plans while at the same time have some exciting expansion opportunities within our existing MGM Macau property."

Certain Items Affecting Third Quarter Results

In the current quarter, the Company recorded an impairment charge of $80 million (or $0.11 per share, net of tax) related to Circus Circus Reno. The prior year quarter results include impairment charges totaling $357 million (or $0.51 per diluted share, net of tax) consisting of impairment charges of $191 million related to the Company's investment in CityCenter, $38 million related to CityCenter's residential real estate inventory, and $128 million related to the Company's Borgata investment.

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

Three months ended September 30,

2011

2010

Property transactions, net:



 Investment in CityCenter impairment charge

$-

$(0.28)

 Investment in Borgata impairment charge

-

(0.17)

 Circus Circus Reno impairment charge

(0.11)

-

Income (loss) from unconsolidated affiliates:



 CityCenter residential impairment charge

-

(0.06)

 CityCenter forfeited residential deposits income

-

0.02



Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts decreased 2% compared to the prior year quarter. The overall table games hold percentage in the third quarter of 2011 was near the low end of the Company's normal range of 19% to 23%. The overall table games hold percentage in the prior year was near the mid-point of the Company's normal range.  Slots revenue increased 4% compared to the prior year quarter, with an increase of 6% at the Company's Las Vegas Strip resorts.

Rooms revenue increased 11% with Las Vegas Strip REVPAR up 13%.  The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

Three months ended September 30,

2011

2010

Occupancy %

95%

93%

Average Daily Rate (ADR)

$124

$111

Revenue per Available Room (REVPAR)

$117

$104



Operating income for the Company's wholly owned domestic resorts for the third quarter of 2011 was $130 million.  Operating income was negatively affected by an $80 million impairment charge at Circus Circus Reno related to the carrying value of its long-lived assets. Excluding the impairment charge, operating income increased 28% compared to the third quarter of 2010. Adjusted Property EBITDA was $348 million in the 2011 quarter, a 10% increase compared to $315 million in the 2010 quarter.

MGM China

The following are the key results for MGM China on a pro forma basis:

  • MGM China earned net revenues of $623 million for the third quarter of 2011 compared to $362 million in the third quarter of 2010.  The increase was driven by year-over-year increases in volume for VIP table games, main floor table games, and slots of 83%, 13%, and 52%, respectively. VIP table games hold percentage was within our expected range of 2.7% to 3.0% in the current and prior year periods; and
  • Adjusted Property EBITDA increased to $139 million and included approximately $11 million of expense related to the branding agreement between MGM China and an entity jointly owned by the Company and Ms. Pansy Ho.

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

The schedules accompanying this release provide pro forma information for MGM China, presented for the three and nine month periods ended September 30, 2011 and 2010, as if the acquisition of the Company's controlling interest occurred as of January 1, 2010.

Income (Loss) from Unconsolidated Affiliates

The following table summarizes information related to the Company's income (loss) from unconsolidated affiliates:




Three months ended September 30,

2011

2010


(In thousands)

CityCenter

$(7,723)

$ (37,893)

MGM Macau

-

29,372

Other

8,262

9,924


$    539

$    1,403



The Company's share of CityCenter's operating losses in the prior year includes the effect of a residential inventory impairment charge of $38 million.

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

  • Net revenue from resort operations increased to $255 million compared to $248 million in the prior year quarter;
  • Adjusted Property EBITDA from resort operations was $50 million, an increase of 26% compared to the prior year quarter;
  • Aria's Adjusted Property EBITDA was $40 million.  Aria's hold percentage was above the high end of its normal range in the current quarter, but lower than the prior year hold percentage by approximately 400 basis points;
  • Aria's occupancy percentage was 87% and its ADR was $200, resulting in REVPAR of $173, a 22% increase compared to the prior year third quarter;
  • Vdara earned $5 million in Adjusted Property EBITDA; and
  • Crystals earned $6 million in Adjusted Property EBITDA.

Financial Position

In September 2011, the Company borrowed an additional $879 million under its senior credit facility to increase its capacity for issuing additional secured indebtedness; these borrowings were repaid immediately after quarter end. As a result, the Company had a higher than normal cash balance at September 30, 2011 of $1.8 billion, which also included approximately $494 million of cash and cash equivalents related to MGM China.  At September 30, 2011, the Company had approximately $13.6 billion of indebtedness (with a carrying value of $13.5 billion) including approximately $551 million of borrowings outstanding on the MGM Macau credit facility. Giving effect to the repayment it made on October 3, 2011, the Company had approximately $1.2 billion of available borrowing capacity under its senior credit facility.

"We continue to make strategic investments to maximize earnings and are focused on domestic and international expansion opportunities," said Dan D'Arrigo, MGM Resorts International Executive Vice President, CFO and Treasurer.  "We believe cash flow at our wholly owned resorts, CityCenter and MGM China will continue to improve, allowing us to further strengthen our balance sheet."

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 1-877-274-9221 for Domestic callers and 1-706-634-6528 for International callers.  The conference call access code is 17370604.  A replay of the call will be available through Thursday, November 10, 2011. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 17370604. The call will also be archived at www.mgmresorts.com.

(1) REVPAR is hotel Revenue per Available Room.

(2)"Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, and property transactions, net, and the gain on the MGM China transaction.  "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts stock option plan, which is not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted Property EBITDA for MGM China.  Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. 

Management believes that while items excluded from Adjusted EBITDA and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, pre-opening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company's resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period.

In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance.

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, 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 involving risks and/or uncertainties, including those described in the company's public filings with the Securities and Exchange Commission.  We have 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 future operating results, liquidity to pay future indebtedness and potential economic recoveries. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which we operate and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, 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.

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,




2011


2010


2011


2010

Revenues:










Casino


$       1,241,959


$          643,395


$       2,629,674


$       1,862,039


Rooms


405,173


352,766


1,170,301


1,039,472


Food and beverage


369,484


343,180


1,078,268


1,019,553


Entertainment


132,350


123,907


382,037


364,524


Retail


55,509


52,618


155,951


147,569


Other


128,204


124,033


371,253


354,288


Reimbursed costs


87,144


88,551


262,914


272,235




2,419,823


1,728,450


6,050,398


5,059,680


Less: Promotional allowances


(186,236)


(161,333)


(497,975)


(478,981)




2,233,587


1,567,117


5,552,423


4,580,699

Expenses:










Casino


795,652


356,218


1,632,382


1,067,025


Rooms


125,864


111,711


366,736


320,466


Food and beverage


214,412


197,836


628,559


585,123


Entertainment


96,889


91,129


279,605


272,386


Retail


32,641


32,093


94,279


90,671


Other


90,021


88,144


256,710


250,298


Reimbursed costs


87,144


88,551


262,914


272,235


General and administrative


304,049


292,456


875,193


850,914


Corporate expense


43,523


30,715


120,024


87,543


Preopening and start-up expenses


-


30


(316)


4,061


Property transactions, net


81,837


326,681


82,828


1,453,652


Gain on MGM China transaction


-


-


(3,496,005)


-


Depreciation and amortization


249,520


158,857


579,384


486,757




2,121,552


1,774,421


1,682,293


5,741,131











Income (loss) from unconsolidated affiliates


539


1,403


95,909


(105,709)











Operating income (loss)


112,574


(205,901)


3,966,039


(1,266,141)











Non-operating income (expense):










Interest expense


(272,542)


(285,139)


(812,680)


(840,483)


Non-operating items from unconsolidated affiliates


(24,692)


(27,185)


(92,984)


(82,109)


Other, net


(1,595)


7,298


(18,567)


157,742




(298,829)


(305,026)


(924,231)


(764,850)











Income (loss) before income taxes


(186,255)


(510,927)


3,041,808


(2,030,991)


Benefit for income taxes


79,680


192,936


212,437


732,783











Net income (loss)


(106,575)


(317,991)


3,254,245


(1,298,208)


Less: net income attributable to noncontrolling interests


(17,211)


-


(25,917)


-

Net income (loss) attributable to MGM Resorts International


$        (123,786)


$        (317,991)


$       3,228,328


$     (1,298,208)











Per share of common stock:










Basic:










Net Income (loss) attributable to MGM Resorts International      


$              (0.25)


$              (0.72)


$                6.61


$              (2.94)





Weighted average shares outstanding


488,636


441,328


488,595


441,289


Diluted:










Net Income (loss) attributable to MGM Resorts International


$              (0.25)


$              (0.72)


$                5.83


$              (2.94)





Weighted average shares outstanding


488,636


441,328


558,544


441,289



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)







September 30,


December 31,





2011


2010








ASSETS

Current assets:






Cash and cash equivalents


$       1,815,125


$        498,964


Accounts receivable, net


463,407


321,894


Inventories 


104,279


96,392


Income tax receivable


-


175,982


Deferred income taxes


79,458


110,092


Prepaid expenses and other


259,538


252,321



Total current assets


2,721,807


1,455,645








Property and equipment, net


14,868,394


14,554,350








Other assets:






Investments in and advances to unconsolidated affiliates


1,659,719


1,923,155


Goodwill  


2,905,378


86,353


Other intangible assets, net


5,120,662


342,804


Deposits and other assets, net


577,063


598,738



Total other assets


10,262,822


2,951,050





$     27,853,023


$   18,961,045















LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:






Accounts payable 


$          158,477


$        167,084


Income taxes payable


2,639


-


Current portion of long-term debt


351,608


-


Accrued interest on long-term debt


240,780


211,914


Other accrued liabilities


1,261,843


867,223



Total current liabilities


2,015,347


1,246,221








Deferred income taxes


2,603,418


2,469,333

Long-term debt


13,099,074


12,047,698

Other long-term obligations


193,578


199,248

Stockholders' equity:






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






issued and outstanding 488,643,408 and 488,513,351 shares


4,886


4,885


Capital in excess of par value


4,085,783


4,060,826


Retained earnings (accumulated deficit)


2,161,463


(1,066,865)


Accumulated other comprehensive loss


(3,276)


(301)



Total MGM Resorts International stockholders' equity


6,248,856


2,998,545


Noncontrolling interests


3,692,750


-



Total equity


9,941,606


2,998,545





$     27,853,023


$   18,961,045










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,





2011


2010


2011


2010


Bellagio



$                            275,884


$                            270,219


$                            805,892


$                            769,312


MGM Grand Las Vegas



243,037


232,667


707,618


711,335


Mandalay Bay



199,166


186,285


587,525


548,019


The Mirage



140,989


152,536


433,912


426,062


Luxor



88,203


81,851


252,420


239,979


New York-New York



68,449


65,078


202,147


187,805


Excalibur



67,831


65,930


196,341


191,320


Monte Carlo



65,321


57,786


193,602


168,965


Circus Circus Las Vegas



56,559


52,541


149,694


143,176


MGM Grand Detroit



139,049


133,415


425,189


407,629


Beau Rivage



89,713


87,006


261,448


256,579


Gold Strike Tunica



40,415


41,265


108,485


117,634


Other resort operations



34,759


33,888


96,840


96,793


 Wholly owned domestic resorts



1,509,375


1,460,467


4,421,113


4,264,608


MGM China(1)



623,050


-


816,034


-


Management and other operations



101,162


106,650


315,276


316,091





$                         2,233,587


$                         1,567,117


$                         5,552,423


$                         4,580,699












(1) For the nine months ended September 30, 2011, represents the net revenues of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through September 30, 2011.  












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,





2011


2010


2011


2010


Bellagio



$                              74,251


$                              75,858


$                            205,522


$                            195,137


MGM Grand Las Vegas



42,221


40,011


114,646


130,604


Mandalay Bay



41,372


30,435


129,417


96,177


The Mirage



25,406


31,980


82,145


80,624


Luxor



21,065


14,114


60,020


44,455


New York-New York



22,738


21,943


66,089


59,561


Excalibur



17,463


15,881


51,974


49,158


Monte Carlo



14,466


7,930


43,870


24,038


Circus Circus Las Vegas



8,898


6,126


20,524


13,350


MGM Grand Detroit



39,897


40,466


125,593


118,436


Beau Rivage



25,501


17,637


57,925


51,040


Gold Strike Tunica



13,464


11,704


21,219


31,590


Other resort operations



852


1,302


(2)


1,302


 Wholly owned domestic resorts



347,594


315,387


978,942


895,472


MGM China(1)



139,326


-


185,748


-


MGM Macau (50%)(2)



-


29,372


115,219


71,165


CityCenter (50%)(3)



(7,723)


(37,893)


(46,029)


(212,066)


Other unconsolidated resorts(3)



8,262


9,924


26,719


35,484


Management and other operations



4,637


(9,490)


6,159


(16,917)





$                            492,096


$                            307,300


$                         1,266,758


$                            773,138












(1) For the nine months ended September 30, 2011, represents the net revenues of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through September 30, 2011.  

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

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



MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)




Three Months Ended September 30, 2011










Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation

and

amortization


Adjusted

EBITDA


Bellagio


$                  50,943


$                   -


$                                       503


$                22,805


$                74,251


MGM Grand Las Vegas


22,945


-


1


19,275


42,221


Mandalay Bay


19,313


-


53


22,006


41,372


The Mirage


6,708


-


1,291


17,407


25,406


Luxor


11,775


-


2


9,288


21,065


New York-New York


17,043


-


-


5,695


22,738


Excalibur


12,477


-


13


4,973


17,463


Monte Carlo


9,209


-


5


5,252


14,466


Circus Circus Las Vegas


4,192


-


2


4,704


8,898


MGM Grand Detroit


29,991


-


-


9,906


39,897


Beau Rivage


15,614


-


(7)


9,894


25,501


Gold Strike Tunica


10,083


-


-


3,381


13,464


Other resort operations


(79,990)


-


79,658


1,184


852


 Wholly owned domestic resorts


130,303


-


81,521


135,770


347,594


MGM China


40,788


-


294


98,244


139,326


CityCenter (50%)


(7,723)


-


-


-


(7,723)


Other unconsolidated resorts


8,262


-


-


-


8,262


Management and other operations


1,000


-


6


3,631


4,637




172,630


-


81,821


237,645


492,096


Stock compensation


(8,707)


-


-


-


(8,707)


Corporate


(51,349)


-


16


11,875


(39,458)




$                112,574


$                   -


$                                  81,837


$              249,520


$              443,931



Three Months Ended September 30, 2010
















Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation

and

amortization


Adjusted

EBITDA


Bellagio


$                  52,040


$                      -


$                                        (18)


$                23,836


$                75,858


MGM Grand Las Vegas


20,855


-


(45)


19,201


40,011


Mandalay Bay


5,023


-


2,181


23,231


30,435


The Mirage


16,104


-


450


15,426


31,980


Luxor


3,666


-


11


10,437


14,114


New York-New York


14,307


-


763


6,873


21,943


Excalibur


10,300


-


-


5,581


15,881


Monte Carlo


(1,954)


-


3,765


6,119


7,930


Circus Circus Las Vegas


1,024


-


4


5,098


6,126


MGM Grand Detroit


30,724


-


(484)


10,226


40,466


Beau Rivage


4,950


-


348


12,339


17,637


Gold Strike Tunica


7,532


-


549


3,623


11,704


Other resort operations


(3)


-


(1)


1,306


1,302


 Wholly owned domestic resorts


164,568


-


7,523


143,296


315,387


MGM Macau (50%)


29,372


-


-


-


29,372


CityCenter (50%)


(37,893)


-


-


-


(37,893)


Other unconsolidated resorts


9,924


-


-


-


9,924


Management and other operations


(13,563)


30


-


4,043


(9,490)




152,408


30


7,523


147,339


307,300


Stock compensation


(8,599)


-


-


-


(8,599)


Corporate


(349,710)


-


319,158


11,518


(19,034)




$               (205,901)


$                 30


$                                326,681


$              158,857


$              279,667



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, 2011






















Operating

income (loss)


Preopening and

start-up

expenses


Gain on MGM

China transaction

& Property

transactions, net


Depreciation

and

amortization


Adjusted

EBITDA


Bellagio


$                132,489


$           -


$                                       820


$                72,213


$              205,522


MGM Grand Las Vegas


56,837


-


1


57,808


114,646


Mandalay Bay


63,365


-


69


65,983


129,417


The Mirage


35,123


-


1,330


45,692


82,145


Luxor


31,599


-


8


28,413


60,020


New York-New York


48,325


-


(85)


17,849


66,089


Excalibur


36,530


-


223


15,221


51,974


Monte Carlo


26,690


-


33


17,147


43,870


Circus Circus Las Vegas


6,343


-


(6)


14,187


20,524


MGM Grand Detroit


95,820


-


372


29,401


125,593


Beau Rivage


25,764


-


51


32,110


57,925


Gold Strike Tunica


11,028


-


-


10,191


21,219


Other resort operations


(83,323)


-


79,675


3,646


(2)


 Wholly owned domestic resorts


486,590


-


82,491


409,861


978,942


MGM China


60,236


-


307


125,205


185,748


MGM Macau (50%)


115,219


-


-


-


115,219


CityCenter (50%)


(46,029)


-


-


-


(46,029)


Other unconsolidated resorts


26,719


-


-


-


26,719


Management and other operations


(4,289)


(316)


1


10,763


6,159




638,446


(316)


82,799


545,829


1,266,758


Stock compensation


(26,912)


-


-


-


(26,912)


Corporate


3,354,505


-


(3,495,976)


33,555


(107,916)




$             3,966,039


$        (316)


$                            (3,413,177)


$              579,384


$           1,131,930



Nine Months Ended September 30, 2010
















Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation

and

amortization


Adjusted

EBITDA


Bellagio


$                122,871


$               -


$                                      (125)


$                72,391


$              195,137


MGM Grand Las Vegas


72,134


-


(45)


58,515


130,604


Mandalay Bay


23,758


-


2,840


69,579


96,177


The Mirage


29,535


-


311


50,778


80,624


Luxor


12,237


-


1


32,217


44,455


New York-New York


31,737


-


6,858


20,966


59,561


Excalibur


31,103


-


784


17,271


49,158


Monte Carlo


1,928


-


3,765


18,345


24,038


Circus Circus Las Vegas


(2,529)


-


229


15,650


13,350


MGM Grand Detroit


88,391


-


(484)


30,529


118,436


Beau Rivage


13,768


-


351


36,921


51,040


Gold Strike Tunica


21,336


-


(551)


10,805


31,590


Other resort operations


(2,827)


-


4


4,125


1,302


 Wholly owned domestic resorts


443,442


-


13,938


438,092


895,472


MGM Macau (50%)


71,165


-


-


-


71,165


CityCenter (50%)


(215,560)


3,494


-


-


(212,066)


Other unconsolidated resorts


35,484


-


-


-


35,484


Management and other operations


(28,699)


567


-


11,215


(16,917)




305,832


4,061


13,938


449,307


773,138


Stock compensation


(26,156)


-


-


-


(26,156)


Corporate


(1,545,817)


-


1,439,714


37,450


(68,653)




$            (1,266,141)


$       4,061


$                             1,453,652


$              486,757


$              678,329



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,


2011


2010


2011


2010

Adjusted EBITDA


$                            443,931


$                            279,667


$                         1,131,930


$                            678,329

 Preopening and start-up expenses


-


(30)


316


(4,061)

 Property transactions, net


(81,837)


(326,681)


(82,828)


(1,453,652)

 Gain on MGM China transaction


-


-


3,496,005


-

 Depreciation and amortization


(249,520)


(158,857)


(579,384)


(486,757)

Operating income (loss)


112,574


(205,901)


3,966,039


(1,266,141)











Non-operating income (expense):









 Interest expense


(272,542)


(285,139)


(812,680)


(840,483)

 Other, net


(26,287)


(19,887)


(111,551)


75,633




(298,829)


(305,026)


(924,231)


(764,850)











Income (loss) before income taxes


(186,255)


(510,927)


3,041,808


(2,030,991)

 Benefit for income taxes


79,680


192,936


212,437


732,783

Net income (loss)


(106,575)


(317,991)


3,254,245


(1,298,208)

 Less: net income attributable to noncontrolling interests


(17,211)


-


(25,917)


-

Net income (loss) attributable to MGM Resorts International


$                          (123,786)


$                          (317,991)


$                         3,228,328


$                       (1,298,208)





















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,




2011


2010


2011


2010


Bellagio










  Occupancy %


96.8%


94.8%


94.7%


93.5%


  Average daily rate (ADR)


$230


$198


$226


$201


  Revenue per available room (REVPAR)


$222


$187


$214


$188












MGM Grand Las Vegas










  Occupancy %


95.4%


94.6%


94.3%


94.1%


  ADR


$129


$112


$130


$115


  REVPAR


$123


$106


$123


$108












Mandalay Bay










  Occupancy %


95.7%


91.2%


93.5%


90.0%


  ADR


$175


$164


$176


$160


  REVPAR


$168


$149


$165


$144












The Mirage










  Occupancy %


96.7%


95.8%


95.8%


93.3%


  ADR


$140


$129


$145


$132


  REVPAR


$136


$124


$138


$124












Luxor










  Occupancy %


94.6%


92.1%


91.8%


89.7%


  ADR


$87


$82


$90


$84


  REVPAR


$83


$76


$83


$75












New York-New York










  Occupancy %


95.3%


93.2%


94.5%


92.1%


  ADR


$108


$97


$108


$100


  REVPAR


$103


$90


$102


$92












Excalibur










  Occupancy %


92.4%


94.9%


90.0%


89.6%


  ADR


$70


$63


$72


$66


  REVPAR


$65


$60


$65


$59












Monte Carlo










  Occupancy %


97.2%


95.5%


94.8%


91.4%


  ADR


$99


$86


$98


$87


  REVPAR


$96


$82


$93


$80












Circus Circus Las Vegas










  Occupancy %


88.1%


86.8%


76.2%


78.9%


  ADR


$52


$45


$54


$45


  REVPAR


$46


$39


$41


$36



CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)
















Three Months Ended


Nine Months Ended






September 30,


September 30,


September 30,


September 30,




2011


2010


2011


2010




Aria


$                            214,347


$                 220,008


$                            672,810


$                            537,352




Vdara


20,060


10,859


55,230


28,629




Crystals


11,345


9,182


34,229


22,952




Mandarin Oriental


9,064


7,469


30,309


21,527




Resort operations


254,816


247,518


792,578


610,460




Residential operations


5,186


165,965


20,328


464,417






$                            260,002


$                 413,483


$                            812,906


$                         1,074,877



























CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)
















Three Months Ended


Nine Months Ended








CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA

(In thousands)

(Unaudited)



Nine Months Ended September 30, 2011
















Operating loss


Preopening and

start-up

expenses


Property

transactions,

net


Depreciation

and

amortization


Adjusted

EBITDA


Aria


$           (57,000)


$                  -


$                           -


$              205,473


$              148,473


Vdara


(15,127)


-


-


28,547


13,420


Crystals


(3,037)


-


-


20,322


17,285


Mandarin Oriental


(14,968)


-


-


13,966


(1,002)


Resort operations


(90,132)


-


-


268,308


178,176


Residential operations


(63,044)


-


52,624


2,628


(7,792)


Development and administration


(13,478)


-


738


334


(12,406)




$         (166,654)


$                  -


$                53,362


$              271,270


$              157,978















Nine Months Ended September 30, 2010
















Operating loss


Preopening and

start-up

expenses


Property

transactions,

net


Depreciation

and

amortization


Adjusted

EBITDA


Aria


$         (160,725)


$                       -


$                                   -


$              173,061


$                12,336


Vdara


(31,175)


-


-


26,182


(4,993)


Crystals


(10,405)


-


-


16,013


5,608


Mandarin Oriental


(23,629)


-


-


12,065


(11,564)


Resort operations


(225,934)


-


-


227,321


1,387


Residential operations


(227,594)


-


303,857


914


77,177


Development and administration


(313,338)


6,202


279,222


1,769


(26,145)




$         (766,866)


$                 6,202


$                         583,079


$              230,004


$                52,419

























CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)
















Three Months Ended


Nine Months Ended






September 30,


September 30,


September 30,


September 30,






2011


2010


2011


2010


Aria












  Occupancy %




86.6%


81.6%


87.4%


74.8%


  ADR




$200


$175


$201


$181


  REVPAR




$173


$142


$176


$136














Vdara












  Occupancy %




83.8%


69.8%


86.0%


66.1%


  ADR




$157


$141


$158


$144


  REVPAR




$131


$99


$136


$96



MGM CHINA (1)

SUPPLEMENTAL PRO FORMA INFORMATION

NET REVENUES AND 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,



2011


2010


2011


2010










Net revenues


$                           623,049


$                         362,306


$                        1,887,064


$                      1,001,339










Adjusted EBITDA (2)


$                           139,326


$                           83,841


$                           455,755


$                         215,690

 Property transactions, net


(294)


(51)


(804)


(409)

 Depreciation and amortization (3)


(89,933)


(93,416)


(268,867)


(280,192)

Operating income (loss)


49,099


(9,626)


186,084


(64,911)

 Non-operating income (expense)


(6,889)


(10,541)


(18,616)


(37,454)

Income (loss) before income taxes


42,210


(20,167)


167,468


(102,365)

 Provision for income taxes


(5,302)


(11)


(20,383)


(33)

Net income (loss)


$                             36,908


$                          (20,178)


$                           147,085


$                        (102,398)












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

(2) Adjusted EBITDA for the three and nine months ending September 30, 2011 includes expenses related to the branding agreement between MGM China and an entity jointly owned by the Company and Ms. Pansy Ho of $11 million for the three months ended  September 30, 2011 and $14 million for the period from June 3, 2011 through September 30, 2011. Prior period pro forma information does not include an expense related to the branding agreement.

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



SOURCE MGM Resorts International

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