MGM MIRAGE Reports First Quarter Results
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MGM MIRAGE Reports First Quarter Results
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Category: Worldwide - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2008-05-06
MGM MIRAGE (NYSE: MGM) today reported its first quarter 2008 financial results. The Company earned $0.40 per diluted share from continuing operations in the first quarter, compared to $0.55 in the prior year. The Company experienced low-single digit percentage decreases in both gaming and non-gaming revenues on a quarter-over-quarter basis, while earnings were also negatively impacted by the temporary closure of Monte Carlo and ramp-up costs related to the recent opening of two major resorts.
Key results for the quarter:
-- Net revenue decreased 2% to $1.9 billion;
-- Las Vegas Strip REVPAR(1) decreased 4%;
-- Casino revenue decreased 3%, mainly as result of lower table games
volume at the Company's Las Vegas Strip resorts;
-- Property EBITDA(2) was $575 million, a 12% decrease from the
2007 quarter;
-- Monte Carlo earned Property EBITDA of $14 million compared to
$34 million in prior year quarter; the resort was closed from
January 25, 2008 through February 14, 2008 due to a rooftop fire, and
approximately 20% of its rooms and suites remained out of service at
quarter-end;
-- Completed a joint tender offer with Dubai World for the purchase of
15 million shares of common stock, of which the Company purchased
8.5 million shares at a total cost of $680 million;
-- Repurchased an additional 7 million shares of common stock in the open
market for $427 million.
The following table lists certain items which affect the comparability of the current year and prior year quarterly results (earnings per share impact shown, net of tax, per diluted share; negative amounts represent charges to income):
Three months ended March 31, 2008 2007
Profits from The Signature at MGM Grand........ $- $0.02
Preopening and start-up expenses............... (0.01) (0.03)
"Our business should be evaluated in the context of the state of the economy," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "The gaming industry and our company have seen considerable growth within the last several years, and even with near-term weaker economic conditions our resorts are still attracting premium customers and generating tremendous cash flow. We are focused on our fundamental strategies which have consistently produced positive results."
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