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.
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