EX-99 2 d249293dex99.htm PRESS RELEASE Press Release

Exhibit 99

LOGO

 

 

 

MGM RESORTS INTERNATIONAL REPORTS THIRD QUARTER RESULTS

 

Las Vegas, Nevada, November 3, 2011 -- 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.

 

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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.

 

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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.”

 

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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.

 

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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 CONTACTS:   

Investment Community

    News Media
DANIEL D’ARRIGO    ALAN M. FELDMAN
Executive Vice President, CFO & Treasurer    Senior Vice President of Public Affairs
(702) 693-8895    (702) 650-6947 or afeldman@mgmresorts.com

 

Page 5 of 14

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 30,
2011		     September 30,
2010		     September 30,
2011		     September 30,
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   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

Page 6 of 14

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

     September 30,
2011		     December 31,
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   
  

 

 

    

 

 

  

 

Page 7 of 14

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

     Three Months Ended      Nine Months Ended  
     September 30,
2011		      September 30,
2010		      September 30,
2011		      September 30,
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,
2011		     September 30,
2010		     September 30,
2011		     September 30,
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.

 

Page 8 of 14

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   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

Page 9 of 14

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   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

Page 10 of 14

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 30,
2011		     September 30,
2010		     September 30,
2011		     September 30,
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,
2011		     September 30,
2010		     September 30,
2011		     September 30,
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   

 

Page 11 of 14

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

     Three Months Ended      Nine Months Ended  
     September 30,
2011		      September 30,
2010		      September 30,
2011		      September 30,
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  
     September 30,
2011		     September 30,
2010		     September 30,
2011		     September 30,
2010		  

Adjusted EBITDA

    $ 46,090      $ 52,357      $ 157,978      $ 52,419   

Preopening and start-up expenses

      —          —          —          (6,202 ) 

Property transactions, net

      (6 )      (354,981 )      (53,362 )      (583,079 ) 

Depreciation and amortization

      (86,093 )      (80,822 )      (271,270 )      (230,004 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating loss

      (40,009 )      (383,446 )      (166,654 )      (766,866 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-operating income (expense):

         

Interest expense - sponsor notes, net

      (20,092 )      (23,409 )      (57,699 )      (67,872 ) 

Interest expense - other, net

      (47,665 )      (42,221 )      (142,714 )      (106,495 ) 

Other, net

      1,129        (176 )      (20,566 )      (4,885 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     (66,628 )      (65,806 )      (220,979 )      (179,252 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss

    $ (106,637 )    $ (449,252 )    $ (387,633 )    $ (946,118 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended September 30, 2011

 

     Operating
loss		     Preopening
and
start-up
expenses		      Property
transactions,
net		      Depreciation
and
amortization		      Adjusted
EBITDA		  

Aria

    $ (23,147 )    $ —         $ —         $ 63,566       $ 40,419   

Vdara

      (5,387 )      —           —           10,173         4,786   

Crystals

      (648 )      —           —           6,619         5,971   

Mandarin Oriental

      (5,782 )      —           —           4,449         (1,333 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Resort operations

      (34,964 )      —           —           84,807         49,843   

Residential operations

      (976 )      —           —           1,198         222   

Development and administration

      (4,069 )      —           6         88         (3,975 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
   $ (40,009 )    $ —         $ 6       $ 86,093       $ 46,090   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Three Months Ended September 30, 2010

 

    
     Operating
loss		     Preopening
and
start-up
expenses		      Property
transactions,
net		      Depreciation
and
amortization		      Adjusted
EBITDA		  

Aria

    $ (19,594 )    $ —         $ —         $ 60,965       $ 41,371   

Vdara

      (9,646 )      —           —           9,059         (587 ) 

Crystals

      (3,158 )      —           —           5,599         2,441   

Mandarin Oriental

      (7,935 )      —           —           4,311         (3,624 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Resort operations

      (40,333 )      —           —           79,934         39,601   

Residential operations

      (50,002 )      —           75,759         308         26,065   

Development and administration

      (293,111 )      —           279,222         580         (13,309 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
   $ (383,446 )    $  —         $ 354,981       $ 80,822       $ 52,357   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

Page 12 of 14

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,
2011		     September 30,
2010		     September 30,
2011		     September 30,
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   

 

Page 13 of 14

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,
2011		     September 30,
2010		     September 30,
2011		     September 30,
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.

 

Page 14 of 14