EX-99.1 2 d679360dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

 

MGM RESORTS INTERNATIONAL REPORTS FOURTH QUARTER

AND FULL YEAR RESULTS

MGM China Board Announces a $500 Million Special Dividend

and Will Recommend a $128 Million Final 2013 Dividend

Las Vegas, Nevada, February 19, 2014 — MGM Resorts International (NYSE: MGM) today reported financial results for the fourth quarter and full year ended December 31, 2013. Loss per share for the fourth quarter of 2013 was $(0.08), an improvement compared to a loss per share of ($2.50) in the prior year fourth quarter. Comparability of the current and prior year consolidated results was affected by certain items discussed further below.

“In 2013 we achieved our best operating performance since the recession. The fourth quarter finished strong, with 6% Adjusted EBITDA growth at our wholly owned domestic resorts and record quarters at MGM China and CityCenter,” said Jim Murren, Chairman and CEO. “In 2014, we expect our Las Vegas properties to continue to improve, driven by a strong convention calendar and the completion of several capital initiatives on the Las Vegas Strip. In Macau, we continue to yield our existing resort and are well underway in more than doubling our footprint in the world’s largest gaming market with MGM Cotai set to open early 2016.”

Key results for the fourth quarter of 2013 include the following:

 

   

Consolidated net revenue was $2.5 billion, a 10% increase over the prior year fourth quarter;

   

Consolidated casino revenue increased 13% compared to the prior year quarter;

   

Rooms revenue at wholly owned domestic resorts increased 3% with a 1% increase in REVPAR(1) at the Company’s Las Vegas Strip resorts;

   

Adjusted Property EBITDA(2) was $609 million compared to $505 million, a 21% increase compared to the prior year quarter;

   

The Company’s wholly owned domestic resorts earned Adjusted Property EBITDA of $356 million, a 6% increase compared to the prior year quarter;

   

MGM China’s Adjusted EBITDA was a record $238 million, a 35% increase compared to the prior year quarter;

   

CityCenter’s Adjusted EBITDA related to resort operations was a record $93 million, a 36% increase compared to the prior year quarter; and

   

Consolidated operating income was $330 million compared to an operating loss of $425 million, which included significant impairment charges in the fourth quarter of 2012.

Certain Items Affecting Fourth Quarter Results

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

 

Three months ended December 31,    2013     2012  

Property transactions, net

   $      $ (0.78

Non-operating items from unconsolidated affiliates:

    

CityCenter loss on retirement of long-term debt

     (0.09       

Silver Legacy gain on retirement of long-term debt

     0.02          

Other non-operating expense:

    

SJTA bond impairment

            (0.06

Loss on retirement of long-term debt

            (0.67

Tax adjustments

     (0.12     (0.76

In the fourth quarter of 2013, non-operating items from unconsolidated affiliates included $70 million related to the Company’s share of a loss on retirement of long-term debt in connection with CityCenter’s early redemption of its first and second lien senior secured notes in October 2013 and $12 million related to the Company’s share of a gain on retirement of long-term debt related to Silver Legacy’s early redemption of its second lien notes in December 2013.

 

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In the fourth quarter of 2012, property transactions, net included an impairment charge of $65 million related to the Company’s investment in Borgata, a $366 million impairment charge related to certain of the Company’s land holdings on the north end of the Las Vegas Strip, and a $167 million impairment charge related to the Company’s land holdings in Atlantic City. Other non-operating expense in the fourth quarter of 2012 included a $47 million write-off related to the Company’s holding of South Jersey Transportation Authority (“SJTA”) road development special revenue bonds and a loss of $505 million related to the Company’s December 2012 refinancing transactions.

The current year fourth quarter income tax provision was affected by $57 million of tax adjustments, primarily related to valuation allowance on U.S. deferred tax assets, including a valuation allowance related to net tax benefit reflected in other items in the above table, compared to $372 million in the prior year fourth quarter.

In addition, corporate expense in the fourth quarter of 2013 included $8 million associated with the Company’s development efforts in Maryland and Massachusetts compared to $34 million during the 2012 fourth quarter. Corporate expense in the current year quarter also reflected a $4 million reduction in accrued payroll liabilities due to a change in the Company’s employee paid time off policy.

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 fourth quarter of 2013 was 20.2% compared to 21.9% for the prior year quarter. Slots revenue increased 3% compared to the prior year quarter at the Company’s Las Vegas Strip resorts, offset by decreased slots revenue at the Company’s other wholly owned domestic resorts.

Rooms revenue increased 3% with Las Vegas Strip REVPAR up 1%. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

 

Three months ended December 31,    2013     2012  

Occupancy %

     85     86

Average Daily Rate (ADR)

   $ 133      $ 130   

Revenue per Available Room (REVPAR)

   $ 114      $ 112   

Operating income for the Company’s wholly owned domestic resorts increased 16% for the fourth quarter of 2013 compared to the prior year quarter and benefited from a decrease of $10 million in property transactions, net and an $8 million reduction in accrued payroll liabilities due to a change in the Company’s employee paid time off policy.

MGM China

On February 19, 2014, as part of its regular dividend policy, MGM China’s Board of Directors announced it will recommend a final dividend for 2013 of $128 million to MGM China shareholders subject to approval at the 2014 annual shareholders meeting. If approved, MGM Resorts International will receive $65 million, its 51% share of this dividend. In addition, MGM China’s Board of Directors announced a special dividend of $500 million, which will be paid to shareholders of record as of March 10, 2014 and distributed on or about March 17, 2014. MGM Resorts International will receive $255 million, its 51% share of the special dividend.

Key fourth quarter results for MGM China include the following:

 

   

MGM China earned net revenue of $926 million, a 27% increase compared to the prior year quarter;

   

VIP table games turnover increased 32% from the prior year quarter, while hold percentage was 2.8% in the current year quarter compared to 2.9% in the prior year quarter;

   

Main floor table games revenue and slots revenue increased 18% and 4% compared to the prior year quarter, respectively, both primarily due to strong increases in volume; and

 

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MGM China’s Adjusted EBITDA was $238 million, a 35% increase compared to the prior year quarter and operating income was $162 million compared to $83 million in the prior year quarter.

The MGM Cotai development continues to be on schedule to open in early 2016. MGM China spent approximately $204 million in 2013 on the MGM Cotai development. We expect the project cost will be approximately $2.9 billion, excluding development fees eliminated in consolidation, land costs and capitalized interest.

Income (Loss) from Unconsolidated Affiliates

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

 

Three months ended December 31,    2013      2012  
     (In thousands)  

CityCenter

   $ 12,037       $ (7,461

Other

     4,069         6,345   
  

 

 

    

 

 

 
   $ 16,106       $ (1,116
  

 

 

    

 

 

 

Results for CityCenter Holdings, LLC for the fourth quarter of 2013 include the following (see schedules accompanying this release for further detail on CityCenter’s fourth quarter results):

 

   

Net revenue from resort operations increased by 11% to $301 million compared to $272 million in the prior year quarter;

   

Adjusted EBITDA from resort operations was $93 million, an increase of 36% compared to the prior year quarter;

   

Aria’s table games hold percentage was 26.0% in the current year quarter compared to 23.9% in the prior year quarter; and

   

Aria’s occupancy percentage was 85% and its ADR was $212, resulting in REVPAR of $181, a 4% increase compared to the prior year quarter;

CityCenter’s operating income increased to $26 million for the fourth quarter of 2013 and included $26 million of income related to property transactions, net, primarily related to a $33 million gain associated with the settlement of insurance claims for errors and omissions with respect to the original construction of CityCenter. The net impact of CityCenter’s property transactions to the Company’s income from unconsolidated affiliates for the fourth quarter was not significant due to equity method accounting adjustments.

In addition, CityCenter entered into a $1.775 billion senior secured credit facility in the fourth quarter of 2013 and redeemed its 7.625% senior secured first lien notes and 10.75% senior secured second lien PIK toggle notes. CityCenter recognized a loss on early retirement of long-term debt of $140 million in connection with these transactions.

Full Year 2013 Results

Net revenue for 2013 was $9.8 billion, a 7% increase over 2012, and Adjusted Property EBITDA increased 18% compared to the prior year. Net revenue from wholly owned domestic resorts was $6.1 billion, a 2% increase compared to 2012. Adjusted Property EBITDA from wholly owned domestic resorts increased 9% to $1.4 billion for 2013.

MGM China reported record results for 2013 with net revenues of $3.3 billion and Adjusted EBITDA of $814 million. Excluding branding fees of $36 million in 2013 and $30 million in 2012, Adjusted EBITDA increased by 20% year over year.

CityCenter reported net revenue from resort operations of $1.2 billion, a 10% increase compared to the prior year, and Adjusted EBITDA related to resort operations of $316 million, a 37% increase compared to the prior year.

 

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Loss per share attributable to MGM Resorts International for 2013 was $(0.32) compared to loss per share of ($3.62) in 2012. The following table lists items that affect the comparability of the current year and prior year annual results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):

 

Year ended December 31,    2013     2012  

Preopening and start-up expenses

   $ (0.02   $   

Property transactions, net

     (0.17     (0.91

Income (loss) from unconsolidated affiliates:

    

CityCenter residential impairment

            (0.02

CityCenter Harmon demolition cost

            (0.02

Non-operating items from unconsolidated affiliates:

    

CityCenter loss on retirement of long-term debt

     (0.09     (0.01

Silver Legacy gain on retirement of long-term debt

     0.02          

Other non-operating expense:

    

SJTA bond impairment

            (0.06

Loss on retirement of long-term debt

            (0.74

Tax adjustments

     (0.30     (1.17

Financial Position

“We accomplished many financial goals in 2013. We reduced debt and by issuing the lowest interest rate senior unsecured notes in the history of our Company, we pre-funded our only scheduled 2014 debt maturity. With CityCenter’s debt now refinanced, we have lowered its annual cash interest expense by approximately $80 million, further enhancing CityCenter’s future cash flow potential,” said Dan D’Arrigo, Executive Vice President, CFO and Treasurer. “We remain focused on further deleveraging our balance sheet in 2014 by maximizing operating cash flows and from anticipated dividends received from MGM China.”

The Company’s cash balance at December 31, 2013 was $1.8 billion, which included $1.0 billion at MGM China. At December 31, 2013 the Company had $2.8 billion of borrowings outstanding under its $4.0 billion senior credit facility and $553 million outstanding under the $2.0 billion MGM China credit facility.

Conference Call Details

MGM Resorts International will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the Investors section or by calling 1-877-355-2280 for domestic callers and 1-706-758-3659 for international callers. The conference call access code is 43751654. A replay of the call will be available through Wednesday, February 26, 2014. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 43751654. The call will be archived at www.mgmresorts.com.

1            REVPAR is hotel revenue per available room.

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

Management believes that while items excluded from Adjusted EBITDA and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company’s earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and

 

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constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company’s resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period.

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

Reconciliations of GAAP net income (loss) to Adjusted EBITDA and GAAP operating income (loss) to Adjusted Property EBITDA are included in the financial schedules in this release.

*        *        *

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is one of the world’s leading global hospitality companies, operating a 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 and is in the process of developing a gaming resort in Cotai, 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, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company’s public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding the development of MGM Cotai, including related construction and development costs, the Company’s ability to deleverage its balance sheet through maximizing operating cash flow, and the Company’s expectations with respect to its convention calendar and the completion of capital initiatives on the Las Vegas Strip. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in 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. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

 

MGM RESORTS CONTACTS:   

Investment Community

   News Media

DANIEL D’ARRIGO

   CLARK DUMONT

Executive Vice President, CFO & Treasurer

   Senior Vice President of Corporate Communications
(702) 693-8895    (702) 891-1836 or cdumont@mgmresorts.com

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,     December 31,     December 31,  
     2013     2012     2013     2012  

Revenues:

        

Casino

   $ 1,570,905      $ 1,390,941      $ 5,875,782      $ 5,319,489   

Rooms

     394,283        383,329        1,646,303        1,588,770   

Food and beverage

     348,465        346,286        1,469,582        1,472,382   

Entertainment

     142,257        119,469        522,911        483,946   

Retail

     44,996        47,017        194,602        196,938   

Other

     115,429        108,957        490,349        482,547   

Reimbursed costs

     89,649        88,438        364,664        357,597   
  

 

 

   

 

 

   

 

 

   

 

 

 
     2,705,984        2,484,437        10,564,193        9,901,669   

Less: Promotional allowances

     (192,771     (189,926     (754,530     (740,825
  

 

 

   

 

 

   

 

 

   

 

 

 
     2,513,213        2,294,511        9,809,663        9,160,844   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Casino

     979,620        876,995        3,684,810        3,396,752   

Rooms

     122,509        123,258        516,605        507,856   

Food and beverage

     199,312        200,737        844,431        844,629   

Entertainment

     104,648        86,699        386,252        356,934   

Retail

     25,365        26,844        107,249        112,732   

Other

     84,072        81,109        354,705        344,782   

Reimbursed costs

     89,649        88,438        364,664        357,597   

General and administrative

     317,378        307,901        1,278,450        1,239,774   

Corporate expense

     63,567        87,215        216,745        235,007   

Preopening and start-up expenses

     3,383        1,362        13,314        2,127   

Property transactions, net

     2,012        610,862        124,761        708,049   

Depreciation and amortization

     207,474        226,831        849,225        927,697   
  

 

 

   

 

 

   

 

 

   

 

 

 
     2,198,989        2,718,251        8,741,211        9,033,936   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from unconsolidated affiliates

     16,106        (1,116     43,060        (46,382
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     330,330        (424,856     1,111,512        80,526   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating expense:

        

Interest expense, net of amounts capitalized

     (208,461     (279,922     (857,347     (1,116,358

Non-operating items from unconsolidated affiliates

     (73,722     (21,417     (157,338     (90,020

Other, net

     (2,153     (552,843     (9,062     (608,361
  

 

 

   

 

 

   

 

 

   

 

 

 
     (284,336     (854,182     (1,023,747     (1,814,739
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     45,994        (1,279,038     87,765        (1,734,213

Benefit (provision) for income taxes

     (5,117     90,541        (31,263     117,301   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     40,877        (1,188,497     56,502        (1,616,912

Less: Net income attributable to noncontrolling interests

     (79,212     (35,330     (213,108     (150,779
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to MGM Resorts International

   $ (38,335   $ (1,223,827   $ (156,606   $ (1,767,691
  

 

 

   

 

 

   

 

 

   

 

 

 

Per share of common stock:

        

Basic:

        

Net loss attributable to MGM Resorts International

   $ (0.08   $ (2.50   $ (0.32   $ (3.62
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     490,185        489,211        489,661        488,988   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

        

Net loss attributable to MGM Resorts International

   $ (0.08   $ (2.50   $ (0.32   $ (3.62
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     490,185        489,211        489,661        488,988   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

    December 31,     December 31,  
    2013     2012  
ASSETS   

Current assets:

   

Cash and cash equivalents

  $ 1,803,669      $ 1,543,509   

Accounts receivable, net

    488,217        443,677   

Inventories

    107,907        107,577   

Deferred income taxes, net

    80,989        179,431   

Prepaid expenses and other

    238,657        232,898   
 

 

 

   

 

 

 

Total current assets

    2,719,439        2,507,092   
 

 

 

   

 

 

 

Property and equipment, net

    14,055,212        14,194,652   

Other assets:

   

Investments in and advances to unconsolidated affiliates

    1,374,836        1,444,547   

Goodwill

    2,897,442        2,902,847   

Other intangible assets, net

    4,511,861        4,737,833   

Other long-term assets, net

    551,395        497,767   
 

 

 

   

 

 

 

Total other assets

    9,335,534        9,582,994   
 

 

 

   

 

 

 
  $ 26,110,185      $ 26,284,738   
 

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY   

Current liabilities:

   

Accounts payable

  $ 241,192      $ 199,620   

Income taxes payable

    14,813        1,350   

Accrued interest on long-term debt

    188,522        206,736   

Other accrued liabilities

    1,770,801        1,517,965   
 

 

 

   

 

 

 

Total current liabilities

    2,215,328        1,925,671   
 

 

 

   

 

 

 

Deferred income taxes

    2,430,414        2,473,889   

Long-term debt

    13,447,230        13,589,283   

Other long-term obligations

    141,590        179,879   

Stockholders' equity:

   

Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 490,360,628 and 489,234,401 shares

    4,904        4,892   

Capital in excess of par value

    4,156,680        4,132,655   

Retained earnings

    57,092        213,698   

Accumulated other comprehensive income

    12,503        14,303   
 

 

 

   

 

 

 

Total MGM Resorts International stockholders' equity

    4,231,179        4,365,548   

Noncontrolling interests

    3,644,444        3,750,468   
 

 

 

   

 

 

 

Total stockholders' equity

    7,875,623        8,116,016   
 

 

 

   

 

 

 
  $ 26,110,185      $ 26,284,738   
 

 

 

   

 

 

 

 

Page 7 of 13


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

     Three Months Ended      Twelve Months Ended  
     December 31,
2013
     December 31,
2012
     December 31,
2013
     December 31,
2012
 

Bellagio

   $ 298,759       $ 307,254       $ 1,177,402       $ 1,147,487   

MGM Grand Las Vegas

     249,765         258,657         1,038,346         961,246   

Mandalay Bay

     197,174         161,642         792,282         717,499   

The Mirage

     143,347         142,806         576,573         600,194   

Luxor

     78,503         74,356         325,578         322,342   

New York-New York

     66,749         67,838         271,572         274,645   

Excalibur

     60,879         60,333         260,462         258,141   

Monte Carlo

     62,539         63,216         262,901         259,004   

Circus Circus Las Vegas

     45,658         45,158         197,885         203,764   

MGM Grand Detroit

     130,769         137,045         537,994         568,721   

Beau Rivage

     81,977         81,076         340,814         346,330   

Gold Strike Tunica

     36,219         34,764         149,186         150,561   

Other resort operations

     27,009         27,665         121,649         122,857   
  

 

 

    

 

 

    

 

 

    

 

 

 

Wholly owned domestic resorts

     1,479,347         1,461,810         6,052,644         5,932,791   
  

 

 

    

 

 

    

 

 

    

 

 

 

MGM China

     925,751         731,216         3,316,928         2,807,676   

Management and other operations

     108,115         101,485         440,091         420,377   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,513,213       $ 2,294,511       $ 9,809,663       $ 9,160,844   
  

 

 

    

 

 

    

 

 

    

 

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2013
    December 31,
2012
    December 31,
2013
     December 31,
2012
 

Bellagio

   $ 99,547      $ 94,925      $ 358,759       $ 302,854   

MGM Grand Las Vegas

     58,394        65,991        236,132         180,726   

Mandalay Bay

     36,346        26,156        167,154         146,761   

The Mirage

     32,960        25,625        117,424         117,618   

Luxor

     12,414        11,834        61,561         63,260   

New York-New York

     21,400        21,576        89,181         90,505   

Excalibur

     13,286        13,090        63,502         61,788   

Monte Carlo

     16,327        14,127        68,941         58,681   

Circus Circus Las Vegas

     908        2,461        16,609         24,072   

MGM Grand Detroit

     40,519        40,830        155,689         165,670   

Beau Rivage

     15,340        12,188        66,937         71,361   

Gold Strike Tunica

     9,480        6,807        37,487         40,469   

Other resort operations

     (935     (1,284     3,310         1,455   
  

 

 

   

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     355,986        334,326        1,442,686         1,325,220   
  

 

 

   

 

 

   

 

 

    

 

 

 

MGM China

     238,067        175,773        814,109         679,345   

CityCenter (50%)(1)

     12,037        (7,461     21,712         (68,206

Other unconsolidated resorts(1)

     4,069        6,345        21,348         21,824   

Management and other operations

     (688     (4,447     25,777         9,947   
  

 

 

   

 

 

   

 

 

    

 

 

 
   $ 609,471      $ 504,536      $ 2,325,632       $ 1,968,130   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

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

 

Page 8 of 13


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended December 31, 2013

 

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

Bellagio

   $ 75,967      $ —         $ 198      $ 23,382       $ 99,547   

MGM Grand Las Vegas

     36,171        —           1,028        21,195         58,394   

Mandalay Bay

     14,651        353         370        20,972         36,346   

The Mirage

     20,628        —           397        11,935         32,960   

Luxor

     3,150        44         (377     9,597         12,414   

New York-New York

     15,680        —           1,117        4,603         21,400   

Excalibur

     9,908        —           34        3,344         13,286   

Monte Carlo

     10,531        651         267        4,878         16,327   

Circus Circus Las Vegas

     (2,871     —           31        3,748         908   

MGM Grand Detroit

     37,171        —           (2,402     5,750         40,519   

Beau Rivage

     8,852        —           45        6,443         15,340   

Gold Strike Tunica

     5,943        —           156        3,381         9,480   

Other resort operations

     (1,957     —           466        556         (935
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     233,824        1,048         1,330        119,784         355,986   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

MGM China

     161,699        2,191         25        74,152         238,067   

CityCenter (50%)

     12,037        —           —          —           12,037   

Other unconsolidated resorts

     3,938        131         —          —           4,069   

Management and other operations

     (3,634     —           —          2,946         (688
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
     407,864        3,370         1,355        196,882         609,471   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Stock compensation

     (6,955     —           —          —           (6,955

Corporate

     (70,579     13         657        10,592         (59,317
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ 330,330      $ 3,383       $ 2,012      $ 207,474       $ 543,199   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Three Months Ended December 31, 2012

 

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

Bellagio

   $ 70,805      $ —         $ 1,695      $ 22,425       $ 94,925   

MGM Grand Las Vegas

     43,733        —           1,644        20,614         65,991   

Mandalay Bay

     4,001        830         2,849        18,476         26,156   

The Mirage

     12,575        —           318        12,732         25,625   

Luxor

     (2,914     —           3,844        10,904         11,834   

New York-New York

     16,273        —           190        5,113         21,576   

Excalibur

     8,571        —           2        4,517         13,090   

Monte Carlo

     9,183        —           761        4,183         14,127   

Circus Circus Las Vegas

     (2,565     —           29        4,997         2,461   

MGM Grand Detroit

     35,589        —           1        5,240         40,830   

Beau Rivage

     4,461        —           20        7,707         12,188   

Gold Strike Tunica

     3,662        —           (56     3,201         6,807   

Other resort operations

     (1,862     —           8        570         (1,284
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     201,512        830         11,305        120,679         334,326   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

MGM China

     83,223        —           417        92,133         175,773   

CityCenter (50%)

     (7,993     532         —          —           (7,461

Other unconsolidated resorts

     6,345        —           —          —           6,345   

Management and other operations

     (7,950     —           —          3,503         (4,447
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
     275,137        1,362         11,722        216,315         504,536   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Stock compensation

     (7,976     —           —          —           (7,976

Corporate

     (692,017     —           599,140        10,516         (82,361
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ (424,856   $ 1,362       $ 610,862      $ 226,831       $ 414,199   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

Page 9 of 13


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Twelve Months Ended December 31, 2013

 

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

Bellagio

   $ 261,321      $ —         $ 470      $ 96,968       $ 358,759   

MGM Grand Las Vegas

     149,602        —           2,220        84,310         236,132   

Mandalay Bay

     78,096        1,903         2,823        84,332         167,154   

The Mirage

     63,090        —           4,722        49,612         117,424   

Luxor

     21,730        802         2,177        36,852         61,561   

New York-New York

     65,006        —           3,533        20,642         89,181   

Excalibur

     49,184        —           69        14,249         63,502   

Monte Carlo

     45,597        791         3,773        18,780         68,941   

Circus Circus Las Vegas

     (1,596     —           1,078        17,127         16,609   

MGM Grand Detroit

     135,516        —           (2,402     22,575         155,689   

Beau Rivage

     38,015        —           (260     29,182         66,937   

Gold Strike Tunica

     22,767        —           1,330        13,390         37,487   

Other resort operations

     (21,951     —           23,018        2,243         3,310   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     906,377        3,496         42,551        490,262         1,442,686   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

MGM China

     501,021        9,109         390        303,589         814,109   

CityCenter (50%)

     21,336        376         —          —           21,712   

Other unconsolidated resorts

     21,217        131         —          —           21,348   

Management and other operations

     13,749        189         4        11,835         25,777   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
     1,463,700        13,301         42,945        805,686         2,325,632   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Stock compensation

     (26,112     —           —          —           (26,112

Corporate

     (326,076     13         81,816        43,539         (200,708
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ 1,111,512      $ 13,314       $ 124,761      $ 849,225       $ 2,098,812   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Twelve Months Ended December 31, 2012

 

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

Bellagio

   $ 206,679      $ —         $ 2,101      $ 94,074       $ 302,854   

MGM Grand Las Vegas

     94,529        —           6,271        79,926         180,726   

Mandalay Bay

     64,818        830         3,786        77,327         146,761   

The Mirage

     65,266        —           929        51,423         117,618   

Luxor

     20,777        —           4,794        37,689         63,260   

New York-New York

     68,591        —           581        21,333         90,505   

Excalibur

     43,978        —           5        17,805         61,788   

Monte Carlo

     38,418        —           1,328        18,935         58,681   

Circus Circus Las Vegas

     4,514        —           106        19,452         24,072   

MGM Grand Detroit

     130,564        641         922        33,543         165,670   

Beau Rivage

     40,713        —           (50     30,698         71,361   

Gold Strike Tunica

     27,420        —           (53     13,102         40,469   

Other resort operations

     (904     —           (14     2,373         1,455   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     805,363        1,471         20,706        497,680         1,325,220   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

MGM China

     302,092        —           2,307        374,946         679,345   

CityCenter (50%)

     (68,862     656         —          —           (68,206

Other unconsolidated resorts

     21,824        —           —          —           21,824   

Management and other operations

     (4,258     —           —          14,205         9,947   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
     1,056,159        2,127         23,013        886,831         1,968,130   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Stock compensation

     (33,974     —           —          —           (33,974

Corporate

     (941,659     —           685,036        40,866         (215,757
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ 80,526      $ 2,127       $ 708,049      $ 927,697       $ 1,718,399   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

Page 10 of 13


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2013
    December 31,
2012
    December 31,
2013
    December 31,
2012
 

Adjusted EBITDA

   $ 543,199      $ 414,199      $ 2,098,812      $ 1,718,399   

Preopening and start-up expenses

     (3,383     (1,362     (13,314     (2,127

Property transactions, net

     (2,012     (610,862     (124,761     (708,049

Depreciation and amortization

     (207,474     (226,831     (849,225     (927,697
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     330,330        (424,856     1,111,512        80,526   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating expense:

        

Interest expense, net of amounts capitalized

     (208,461     (279,922     (857,347     (1,116,358

Other, net

     (75,875     (574,260     (166,400     (698,381
  

 

 

   

 

 

   

 

 

   

 

 

 
     (284,336     (854,182     (1,023,747     (1,814,739
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     45,994        (1,279,038     87,765        (1,734,213

Benefit (provision) for income taxes

     (5,117     90,541        (31,263     117,301   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     40,877        (1,188,497     56,502        (1,616,912

Less: Net income attributable to noncontrolling interests

     (79,212     (35,330     (213,108     (150,779
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to MGM Resorts International

   $ (38,335   $ (1,223,827   $ (156,606   $ (1,767,691
  

 

 

   

 

 

   

 

 

   

 

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2013
    December 31,
2012
    December 31,
2013
    December 31,
2012
 

Bellagio

        

Occupancy %

     87.5     88.8     92.3     92.9

Average daily rate (ADR)

   $ 254      $ 247      $ 243      $ 237   

Revenue per available room (REVPAR)

   $ 223      $ 219      $ 225      $ 220   

MGM Grand Las Vegas

        

Occupancy %

     89.3     87.7     93.5     92.7

ADR

   $ 142      $ 140      $ 142      $ 139   

REVPAR

   $ 127      $ 123      $ 132      $ 129   

Mandalay Bay

        

Occupancy %

     85.8     88.1     90.1     91.7

ADR

   $ 176      $ 169      $ 182      $ 176   

REVPAR

   $ 151      $ 149      $ 164      $ 162   

The Mirage

        

Occupancy %

     91.1     90.7     94.7     94.6

ADR

   $ 151      $ 150      $ 149      $ 149   

REVPAR

   $ 137      $ 136      $ 141      $ 141   

Luxor

        

Occupancy %

     83.9     88.6     90.7     91.0

ADR

   $ 90      $ 90      $ 88      $ 89   

REVPAR

   $ 76      $ 80      $ 80      $ 81   

New York-New York

        

Occupancy %

     93.6     92.0     96.5     94.6

ADR

   $ 112      $ 109      $ 112      $ 110   

REVPAR

   $ 105      $ 101      $ 108      $ 104   

Excalibur

        

Occupancy %

     80.7     84.8     88.5     89.4

ADR

   $ 73      $ 72      $ 73      $ 72   

REVPAR

   $ 59      $ 61      $ 65      $ 64   

Monte Carlo

        

Occupancy %

     90.3     89.9     94.8     93.6

ADR

   $ 104      $ 103      $ 104      $ 103   

REVPAR

   $ 94      $ 93      $ 99      $ 97   

Circus Circus Las Vegas

        

Occupancy %

     71.1     68.6     78.3     77.9

ADR

   $ 55      $ 55      $ 55      $ 54   

REVPAR

   $ 39      $ 38      $ 43      $ 42   

 

Page 11 of 13


CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

     Three Months Ended      Twelve Months Ended  
     December 31,
2013
     December 31,
2012
     December 31,
2013
     December 31,
2012
 

Aria

   $ 249,620       $ 223,534       $ 951,727       $ 862,306   

Vdara

     22,165         21,384         90,444         86,916   

Crystals

     16,113         14,257         61,184         53,251   

Mandarin Oriental

     13,530         12,507         53,714         48,452   
  

 

 

    

 

 

    

 

 

    

 

 

 

Resort operations

     301,428         271,682         1,157,069         1,050,925   

Residential operations

     12,365         122,680         99,370         138,929   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 313,793       $ 394,362       $ 1,256,439       $ 1,189,854   
  

 

 

    

 

 

    

 

 

    

 

 

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2013
    December 31,
2012
    December 31,
2013
    December 31,
2012
 

Adjusted EBITDA

   $ 86,599      $ 60,044      $ 307,513      $ 206,596   

Preopening and start-up expenses

     —          (1,064     (752     (1,312

Property transactions, net

     25,791        (1,011     11,265        (74,347

Depreciation and amortization

     (86,552     (103,594     (345,920     (370,856
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     25,838        (45,625     (27,894     (239,919
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating income (expense):

        

Interest expense – sponsor notes

     (4,644     (24,155     (82,655     (91,352

Interest expense – other

     (26,928     (43,025     (156,397     (174,674

Other, net

     (142,777     809        (176,202     (5,023
  

 

 

   

 

 

   

 

 

   

 

 

 
     (174,349     (66,371     (415,254     (271,049
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (148,511   $ (111,996   $ (443,148   $ (510,968
  

 

 

   

 

 

   

 

 

   

 

 

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended December 31, 2013

 

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

Aria

   $ 11,811      $ —         $ 222      $ 64,653       $ 76,686   

Vdara

     (11,908     —           6,682        9,944         4,718   

Crystals

     3,305        —           —          7,019         10,324   

Mandarin Oriental

     (3,472     —           —          4,719         1,247   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Resort operations

     (264     —           6,904        86,335         92,975   

Residential operations

     603        —           305        215         1,123   

Development and administration

     25,499        —           (33,000     2         (7,499
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ 25,838      $ —         $ (25,791   $ 86,552       $ 86,599   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Three Months Ended December 31, 2012

 

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

Aria

   $ (20,240   $ 1,064       $ (14   $ 73,380       $ 54,190   

Vdara

     (6,440     —           —          11,553         5,113   

Crystals

     1,033        —           —          8,084         9,117   

Mandarin Oriental

     (9,876     —           —          9,762         (114
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Resort operations

     (35,523     1,064         (14     102,779         68,306   

Residential operations

     (177     —           1,025        800         1,648   

Development and administration

     (9,925     —           —          15         (9,910
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ (45,625   $ 1,064       $ 1,011      $ 103,594       $ 60,044   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

Page 12 of 13


CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Twelve Months Ended December 31, 2013

 

     Operating
income
(loss)
    Preopening
and

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

Aria

   $ (5,611   $ 694       $ 501      $ 257,086       $ 252,670   

Vdara

     (27,611     —           6,731        41,530         20,650   

Crystals

     11,357        58         57        27,240         38,712   

Mandarin Oriental

     (15,632     —           —          19,103         3,471   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Resort operations

     (37,497     752         7,289        344,959         315,503   

Residential operations

     (208     —           14,446        933         15,171   

Development and administration

     9,811        —           (33,000     28         (23,161
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ (27,894   $ 752       $ (11,265   $ 345,920       $ 307,513   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Twelve Months Ended December 31, 2012

 

     Operating
income

(loss)
    Preopening
and

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

Aria

   $ (104,937   $ 1,312       $ 5,549       $ 273,909       $ 175,833   

Vdara

     (21,104     —           —           42,609         21,505   

Crystals

     5,216        —           —           27,105         32,321   

Mandarin Oriental

     (22,822     —           —           23,330         508   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Resort operations

     (143,647     1,312         5,549         366,953         230,167   

Residential operations

     (40,013     —           36,715         3,729         431   

Development and administration

     (56,259     —           32,083         174         (24,002
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
   $ (239,919   $ 1,312       $ 74,347       $ 370,856       $ 206,596   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2013
    December 31,
2012
    December 31,
2013
    December 31,
2012
 

Aria

        

Occupancy %

     85.2     85.6     88.8     88.3

ADR

   $ 212      $ 202      $ 208      $ 200   

REVPAR

   $ 181      $ 173      $ 184      $ 177   

Vdara

        

Occupancy %

     82.1     83.2     86.7     84.1

ADR

   $ 168      $ 157      $ 162      $ 158   

REVPAR

   $ 138      $ 131      $ 140      $ 133   

 

Page 13 of 13