MGM Resorts International Reports Third Quarter Results
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MGM Resorts International Reports Third 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 2010-11-04
Senior Credit Facility Extended To February 2014, Significantly Improving Liquidity Profile
- MGM Resorts International (NYSE: MGM) today announced its financial results for the third quarter of 2010. The Company recorded a third quarter diluted loss per share (EPS) of $0.72 compared to a loss of $1.70 per share in the prior year third quarter. The current year results include pre-tax impairment charges totaling $357 million, or $0.51 per diluted share, net of tax, including pre-tax impairment charges of $182 million related to the Company's investment in CityCenter, $46 million related to CityCenter's residential real estate inventory, and $128 million related to the Company's Borgata investment. The prior year results include pre-tax impairment charges totaling $1.17 billion, or $1.72 loss per diluted share, net of tax, including pre-tax impairment charges of $956 million related to the Company's investment in CityCenter and $203 million related to impairment of CityCenter's residential real estate under development.
The following table lists these and other items which affect the comparability of the current and prior year quarterly results (approximate EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):
Three months ended September 30,
2010
2009
Preopening and start-up expenses
$ --
$ (0.01)
Property transactions, net:
Investment in CityCenter impairment charge
(0.27)
(1.40)
Investment in Borgata impairment charge
(0.17)
--
Other property transactions, net
(0.01)
(0.02)
Income (loss) from unconsolidated affiliates:
CityCenter residential inventory impairment charge
(0.07)
(0.30)
CityCenter forfeited residential deposits income
0.02
--
Borgata insurance proceeds
--
0.02
Key operating results for the quarter included the following:
Net revenue, excluding reimbursed costs, decreased 3% to $1.5 billion;
Las Vegas Strip REVPAR(1) decreased 2% compared to the prior year quarter. Both Bellagio and Mandalay Bay recorded increases in REVPAR for the third quarter;
Adjusted Property EBITDA(2) attributable to wholly-owned operations was $314 million, down 13%;
Net revenue at the Company's regional resorts increased 3% compared to the prior year third quarter with Adjusted Property EBITDA increasing 12%;
MGM Macau reported its best quarter ever and earned operating income of $61 million in the third quarter of 2010 which included depreciation expense of $22 million; and
Aria reported Adjusted Property EBITDA of $41 million during the third quarter of 2010.
Other key events:
In October 2010, the Company issued 40.9 million shares of its common stock for net proceeds to the Company of approximately $512 million and issued $500 million of 10% senior notes due 2016 for net proceeds to the Company of approximately $486 million;
The Company used a portion of the net proceeds from the equity offering and all of the proceeds of the debt offering to effectuate the extension of its senior credit facility to February 2014. Revolving commitments and term loans were reduced by $1.2 billion, leaving $3.6 billion of total commitments ;
The Company received approximately $125 million from MGM Macau during October 2010, which represents a partial repayment of principal and accrued interest on the Company's interest and non-interest bearing notes to that entity;
The Company recently received an offer (subject to diligence, definitive agreements and approvals) for its 50% economic interest in the Borgata Hotel Casino & Spa ("Borgata") equal to slightly in excess of $250 million, based on an enterprise value for Borgata of $1.35 billion for the entire asset; and
The Company expects to close the sale of its long-term land leases and associated real property parcels underlying Borgata in November 2010, with net proceeds to the Company's New Jersey trust account of approximately $71 million.
"We continue to see the Las Vegas market stabilizing, Aria's operating performance is ramping up, and MGM Macau reported a record quarter," said Jim Murren, MGM Resorts International Chairman and CEO. "We have made significant progress on our financial position this year and have deployed several programs to better position our portfolio of resorts to benefit from a broader economic recovery going forward."
Detailed Discussion of Third Quarter Operating Results
Net revenue for the third quarter of 2010 was $1.56 billion. Excluding reimbursed costs revenue mainly related to the Company's management of CityCenter (approximately $89 million in the 2010 third quarter and $16 million in the 2009 third quarter), net revenue was $1.47 billion, a decrease of 3% from 2009.
Third quarter casino revenue decreased 9% compared to the prior year quarter, with slots revenue down 3% for the quarter. The Company's table games volume, excluding baccarat, decreased 7% in the quarter, while baccarat volume was down 6% compared to the prior year quarter. The overall table games hold percentage was lower in 2010 than the prior year quarter; in the current year third quarter the hold percentage was above the midpoint of the Company's normal 18% to 22% while it was slightly above the high end of the range in the 2009 quarter.
Rooms revenue decreased 3% from the prior year. The Company achieved 93% occupancy compared to 95% in the prior year quarter with consistent ADR, which led to a 2% decrease in Las Vegas Strip REVPAR.
"Our luxury properties are leading the way, driven by improving convention mix. Both Bellagio and Mandalay Bay recorded REVPAR increases in the third quarter," said Mr. Murren.
Operating loss for the third quarter of 2010 was $206 million, which includes the CityCenter investment impairment, the Borgata impairment, and the Company's share of the CityCenter residential impairment charge discussed further below. Prior year operating loss was $963 million and included an impairment charge related to the Company's investment in CityCenter and the Company's share of a CityCenter residential real estate impairment charge. Adjusted Property EBITDA attributable to wholly-owned operations was $314 million in the 2010 quarter, down 13% compared to the prior year.
Impairment Charges
As of September 30, 2010, the Company recognized an increase of $232 million in its total net obligation under its CityCenter completion guarantee, and a corresponding increase in its investment in CityCenter. The increase primarily reflects a revision to prior estimates based on the Company's assessment of the most current information derived from the CityCenter close-out and litigation processes. This accrual does not reflect certain potential recoveries that CityCenter is pursuing as part of the litigation process. The Company reviewed its investment in CityCenter due to such increase and recorded a pre-tax impairment charge of approximately $182 million in the third quarter. This impairment charge reflects a fair value of $1.3 billion for the Company's 50% equity interest in CityCenter.
The Company recently received an offer for its 50% economic interest in Borgata based on an enterprise value of $1.35 billion for the entire asset. The Company submitted this offer to Boyd Gaming Corporation, which owns the other 50% interest, in accordance with the right of first refusal provisions included in the joint venture agreement. Subsequently, Boyd announced that it does not intend to exercise its right to first refusal in connection with such offer; therefore, the Company intends to pursue negotiations with the original bidder. Based on Borgata's September debt balances, the offer equates to slightly in excess of $250 million for the Company's 50% interest. This is less than the carrying value of the Company's investment in Borgata; therefore, the Company recorded a pre-tax impairment charge of approximately $128 million in the third quarter of 2010. The consummation of any transaction as a result of the offer is subject to negotiation of final documents, due diligence, and regulatory approval.
Loss from Unconsolidated Affiliates
The Company had a loss from unconsolidated affiliates of $7 million in the third quarter of 2010 compared to a loss of $133 million in the prior year third quarter. The current year includes $46 million related to the Company's share of residential inventory impairment at CityCenter and the prior year included $203 million related to an impairment of CityCenter's real estate under development.
MGM Macau earned operating income of $61 million in the third quarter of 2010 which included depreciation expense of $22 million, compared to operating income of $50 million in the 2009 third quarter which included depreciation expense of $23 million.
Results for CityCenter for the third quarter of 2010 include the following (see schedules accompanying this release for further detail on CityCenter Holdings, LLC's third quarter and year-to-date 2010 results):
CityCenter's net revenue was $413 million in the third quarter, including $166 million related to residential operations, of which $28 million related to forfeited residential deposits;
Aria's net revenue was $219 million and Adjusted Property EBITDA was $41 million. Aria's results were positively affected by a high table games hold percentage, which increased Adjusted Property EBITDA by approximately $26 million;
Aria's occupancy percentage was 82% and its average daily rate was $175, resulting in REVPAR of $142; and
CityCenter recorded a $93 million impairment charge related to its residential inventory due to an increase in estimated final costs of the residential components and also recorded a $279 million impairment charge related to its Harmon Hotel & Spa component due to CityCenter's conclusion that it is unlikely the Harmon will be completed using the building as it now stands. The Harmon impairment did not affect the Company's loss from unconsolidated affiliates because the Company's 50% share of the impairment charge had been previously recognized by the Company in connection with prior impairments of its investment balance.
Financial Position
At September 30, 2010, the Company had approximately $12.9 billion of indebtedness (with a carrying value of $12.6 billion), including $3.4 billion of borrowings outstanding under its senior credit facility, with available borrowing capacity under the senior credit facility of approximately $1.3 billion.
In October 2010 the Company issued 40.9 million shares of its common stock for total net proceeds to the Company of approximately $512 million. In connection with the Company's issuance, Tracinda sold approximately 27.8 million shares of the Company's common stock. The Company will not receive any proceeds from the sale of such common stock by Tracinda. The underwriter has the ability to purchase an additional 6.1 million shares from the Company and 4.2 million shares from Tracinda up to 30 days after the original offering to cover overallotments.
Also in October 2010, the Company issued $500 million of 10% senior notes due 2016, issued at a discount to yield 10.25%, for net proceeds to the Company of $486 million. The notes are unsecured and otherwise rank equally in right of payment with the Company's existing and future senior indebtedness.
The Company used the net proceeds from the issuance of the senior notes and a portion of the net proceeds from the common stock offering to effectuate the extension of its senior credit facility. Revolving commitments and term loans were reduced by $1.2 billion, leaving $3.6 billion of total commitments that will mature in February 2014.
The Company's New Jersey trust account received a distribution of approximately $105 million from Borgata during the third quarter. The balance in the trust account was approximately $114 million at September 30, 2010. All amounts in the trust account, including the proceeds from the sale of the Company's Borgata interest and the underlying land parcels, will be distributed to the Company upon consummation of the sale of the Company's Borgata interest.
"Our recent capital raising transactions extend our maturity profile and significantly enhance our liquidity," said Dan D'Arrigo, MGM Resorts International Executive Vice President and CFO. "Subsequent to quarter end, we have reduced our debt from $12.9 billion to $12.3 billion. We have current availability under our senior credit facility to cover debt maturities into 2013."
Conference Call Details
MGM Resorts International will hold a conference call to discuss its third quarter results at 11:00 a.m. Eastern Time today. The call will be accessible via the Internet through www.mgmresorts.com or by calling 1-877-274-9221 for Domestic callers and 1-706-634-6528 for International callers. The conference call ID # is 19689828. A replay of the call will be available through Wednesday, November 10, 2010. The replay may be accessed by dialing 1-800-642-1687 or 1-706-645-9291. The replay access code is 19689828. 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. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense. 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 our 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.
Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" within the meaning of Section 21E of the U.S. the Securities Exchange Act of 1934, as amended, and other related laws that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission. We have based those 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 and liquidity to pay future indebtedness. 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. In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise except as required by law.
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2010
2009
2010
2009
Revenues:
Casino
$ 633,983
$ 699,806
$ 1,834,132
$ 1,990,103
Rooms
331,424
340,165
990,546
1,045,504
Food and beverage
343,180
344,284
1,019,553
1,040,540
Entertainment
123,907
128,568
364,524
369,998
Retail
52,618
54,525
147,569
156,785
Other
145,375
122,549
403,214
376,768
Reimbursed costs
88,551
15,524
272,235
42,480
1,719,038
1,705,421
5,031,773
5,022,178
Less: Promotional allowances
(161,333)
(172,198)
(478,981)
(496,005)
1,557,705
1,533,223
4,552,792
4,526,173
Expenses:
Casino
346,806
367,720
1,039,118
1,093,068
Rooms
111,711
108,273
320,466
325,247
Food and beverage
197,836
196,778
585,123
590,137
Entertainment
91,129
91,422
272,386
267,786
Retail
32,093
33,684
90,671
99,760
Other
88,144
75,737
250,298
218,082
Reimbursed costs
88,551
15,524
272,235
42,480
General and administrative
292,456
290,766
850,914
825,623
Corporate expense
30,715
31,928
87,543
99,295
Preopening and start-up expenses
30
10,058
4,061
27,539
Property transactions, net
318,154
971,208
1,445,125
779,331
Depreciation and amortization
158,857
170,651
486,757
521,877
1,756,482
2,363,749
5,704,697
4,890,225
Loss from unconsolidated affiliates
(7,124)
(132,893)
(114,236)
(113,169)
Operating loss
(205,901)
(963,419)
(1,266,141)
(477,221)
Non-operating income (expense):
Interest income
1,142
857
2,784
11,535
Interest expense, net
(285,139)
(181,899)
(840,483)
(554,822)
Non-operating items from unconsolidated affiliates
(27,185)
(14,613)
(82,109)
(38,058)
Other, net
6,156
826
154,958
(234,693)
(305,026)
(194,829)
(764,850)
(816,038)
Loss before income taxes
(510,927)
(1,158,248)
(2,030,991)
(1,293,259)
Benefit for income taxes
192,936
407,860
732,783
435,495
Net loss
$ (317,991)
$ (750,388)
$ (1,298,208)
$ (857,764)
Per share of common stock:
Basic:
Net loss per share
$ (0.72)
$ (1.70)
$ (2.94)
$ (2.40)
Weighted average shares outstanding
441,328
441,214
441,289
357,348
Diluted:
Net loss per share
$ (0.72)
$ (1.70)
$ (2.94)
$ (2.40)
Weighted average shares outstanding
441,328
441,214
441,289
357,348
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
September 30,
December 31,
2010
2009
ASSETS
Current assets:
Cash and cash equivalents
$ 552,757
$ 2,056,207
Accounts receivable, net
324,206
368,474
Inventories
93,479
101,809
Income tax receivable
180,181
384,555
Deferred income taxes
22,681
38,487
Prepaid expenses and other
115,497
103,969
Total current assets
1,288,801
3,053,501
Property and equipment, net
14,697,192
15,069,952
Other assets:
Investments in and advances to unconsolidated affiliates
2,115,760
3,611,799
Goodwill
86,353
86,353
Other intangible assets, net
342,995
344,253
Other long-term assets, net
605,271
352,352
Total other assets
3,150,379
4,394,757
$ 19,136,372
$ 22,518,210
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 153,049
$ 173,719
Current portion of long-term debt
-
1,079,824
Accrued interest on long-term debt
223,106
206,357
Other accrued liabilities
942,802
923,701
Total current liabilities
1,318,957
2,383,601
Deferred income taxes
2,400,984
3,031,303
Long-term debt
12,623,851
12,976,037
Other long-term obligations
252,209
256,837
Stockholders' equity:
Common stock, $.01 par value: authorized 600,000,000 shares,
issued 441,339,770 and 441,222,251 shares and outstanding
441,339,770 and 441,222,251 shares
4,413
4,412
Capital in excess of par value
3,465,253
3,497,425
Retained earnings (accumulated deficit)
(927,676)
370,532
Accumulated other comprehensive loss
(1,619)
(1,937)
Total stockholders' equity
2,540,371
3,870,432
$ 19,136,372
$ 22,518,210
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2010
2009
2010
2009
Bellagio
$ 269,370
$ 262,436
$ 766,973
$ 795,017
MGM Grand Las Vegas
231,626
266,349
708,061
737,108
Mandalay Bay
185,635
185,539
545,465
553,711
The Mirage
151,653
182,376
423,339
483,352
Luxor
81,439
88,609
238,825
263,038
Treasure Island (1)
-
-
-
66,329
New York-New York
64,393
60,721
185,987
191,609
Excalibur
65,590
71,451
190,524
203,944
Monte Carlo
57,277
52,120
167,585
153,223
Circus Circus Las Vegas
52,005
54,962
141,688
155,768
MGM Grand Detroit
132,366
124,753
404,893
389,365
Beau Rivage
85,792
85,970
252,915
251,610
Gold Strike Tunica
40,389
39,493
114,879
118,057
Management operations
101,690
25,374
307,820
69,197
Other operations
38,480
33,070
103,838
94,845
$ 1,557,705
$ 1,533,223
$ 4,552,792
$ 4,526,173
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2010
2009
2010
2009
Bellagio
$ 75,858
$ 61,876
$ 195,137
$ 206,336
MGM Grand Las Vegas
40,011
70,727
130,604
168,040
Mandalay Bay
30,435
36,222
96,177
128,059
The Mirage
31,980
54,513
80,624
116,611
Luxor
14,114
18,989
44,455
59,797
Treasure Island (1)
-
-
-
12,729
New York-New York
21,943
17,990
59,561
61,587
Excalibur
15,881
19,176
49,158
57,140
Monte Carlo
7,930
3,930
24,038
32,172
Circus Circus Las Vegas
6,126
7,753
13,350
24,861
MGM Grand Detroit
40,466
32,729
118,436
106,898
Beau Rivage
17,637
18,046
51,040
52,905
Gold Strike Tunica
11,704
11,534
31,590
36,965
Management operations
(1,554)
4,347
(9,120)
13,258
Other operations
1,893
1,704
2,032
3,412
Wholly-owned operations
314,424
359,536
887,082
1,080,770
CityCenter (50%)
(46,420)
(204,334)
(220,593)
(207,204)
Macau (50%)
29,372
23,557
71,165
14,866
Other unconsolidated resorts
9,924
48,070
35,484
79,755
$ 307,300
$ 226,829
$ 773,138
$ 968,187
(1) Treasure Island was sold in March 2009.
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, 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
Management operations
(4,986)
-
-
3,432
(1,554)
Other operations
(53)
30
(1)
1,917
1,893
Wholly-owned operations
159,532
30
7,523
147,339
314,424
CityCenter (50%)
(46,420)
-
-
-
(46,420)
Macau (50%)
29,372
-
-
-
29,372
Other unconsolidated resorts
9,924
-
-
-
9,924
152,408
30
7,523
147,339
307,300
Stock compensation
(8,599)
-
-
-
(8,599)
Corporate
(349,710)
-
310,631
11,518
(27,561)
$ (205,901)
$ 30
$ 318,154
$ 158,857
$ 271,140
Three Months Ended September 30, 2009
Operating
income (loss)
Preopening and
start-up
expenses
Property
transactions,
net
Depreciation
and
amortization
Adjusted
EBITDA
Bellagio
$ 29,495
$ -
$ 1,206
$ 31,175
$ 61,876
MGM Grand Las Vegas
50,634
-
5
20,088
70,727
Mandalay Bay
13,822
145
(73)
22,328
36,222
The Mirage
37,368
-
17
17,128
54,513
Luxor
10,542
(759)
(12)
9,218
18,989
New York-New York
6,775
-
1,394
9,821
17,990
Excalibur
13,413
-
(14)
5,777
19,176
Monte Carlo
(5,685)
-
2,456
7,159
3,930
Circus Circus Las Vegas
1,910
-
80
5,763
7,753
MGM Grand Detroit
17,889
-
5,906
8,934
32,729
Beau Rivage
5,819
-
-
12,227
18,046
Gold Strike Tunica
7,774
-
-
3,760
11,534
Management operations
847
-
2,473
1,027
4,347
Other operations
238
-
-
1,466
1,704
Wholly-owned operations
190,841
(614)
13,438
155,871
359,536
CityCenter (50%)
(215,006)
10,672
-
-
(204,334)
Macau (50%)
23,557
-
-
-
23,557
Other unconsolidated resorts
48,070
-
-
-
48,070
47,462
10,058
13,438
155,871
226,829
Stock compensation
(9,319)
-
-
-
(9,319)
Corporate
(1,001,562)
-
957,770
14,780
(29,012)
$ (963,419)
$ 10,058
$ 971,208
$ 170,651
$ 188,498
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, 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
Management operations
(19,453)
-
-
10,333
(9,120)
Other operations
(3,546)
567
4
5,007
2,032
Wholly-owned operations
423,270
567
13,938
449,307
887,082
CityCenter (50%)
(224,087)
3,494
-
-
(220,593)
Macau (50%)
71,165
-
-
-
71,165
Other unconsolidated resorts
35,484
-
-
-
35,484
305,832
4,061
13,938
449,307
773,138
Stock compensation
(26,156)
-
-
-
(26,156)
Corporate
(1,545,817)
-
1,431,187
37,450
(77,180)
$ (1,266,141)
$ 4,061
$ 1,445,125
$ 486,757
$ 669,802
Nine Months Ended September 30, 2009
Operating
income (loss)
Preopening and
start-up
expenses
Property
transactions,
net
Depreciation
and
amortization
Adjusted
EBITDA
Bellagio
$ 115,925
$ -
$ 2,360
$ 88,051
$ 206,336
MGM Grand Las Vegas
99,022
-
81
68,937
168,040
Mandalay Bay
56,954
897
(70)
70,278
128,059
The Mirage
66,158
-
313
50,140
116,611
Luxor
30,300
(759)
259
29,997
59,797
Treasure Island (1)
12,730
-
(1)
-
12,729
New York-New York
35,549
-
1,631
24,407
61,587
Excalibur
39,543
-
(12)
17,609
57,140
Monte Carlo
18,521
-
(4,737)
18,388
32,172
Circus Circus Las Vegas
7,413
-
(35)
17,483
24,861
MGM Grand Detroit
70,658
-
5,906
30,334
106,898
Beau Rivage
16,139
-
157
36,609
52,905
Gold Strike Tunica
24,636
-
-
12,329
36,965
Management operations
4,699
-
2,473
6,086
13,258
Other operations
(1,131)
-
6
4,537
3,412
Wholly-owned operations
597,116
138
8,331
475,185
1,080,770
CityCenter (50%)
(233,790)
26,586
-
-
(207,204)
Macau (50%)
14,866
-
-
-
14,866
Other unconsolidated resorts
78,940
815
-
-
79,755
457,132
27,539
8,331
475,185
968,187
Stock compensation
(27,076)
-
-
-
(27,076)
Corporate
(907,277)
-
771,000
46,692
(89,585)
$ (477,221)
$ 27,539
$ 779,331
$ 521,877
$ 851,526
(1) Treasure Island was sold in March 2009.
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2010
2009
2010
2009
Adjusted EBITDA
$ 271,140
$ 188,498
$ 669,802
$ 851,526
Preopening and start-up expenses
(30)
(10,058)
(4,061)
(27,539)
Property transactions, net
(318,154)
(971,208)
(1,445,125)
(779,331)
Depreciation and amortization
(158,857)
(170,651)
(486,757)
(521,877)
Operating loss
(205,901)
(963,419)
(1,266,141)
(477,221)
Non-operating income (expense):
Interest expense, net
(285,139)
(181,899)
(840,483)
(554,822)
Other
(19,887)
(12,930)
75,633
(261,216)
(305,026)
(194,829)
(764,850)
(816,038)
Loss before income taxes
(510,927)
(1,158,248)
(2,030,991)
(1,293,259)
Benefit for income taxes
192,936
407,860
732,783
435,495
Net loss
$ (317,991)
$ (750,388)
$(1,298,208)
$ (857,764)
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2010
2009
2010
2009
Bellagio
Occupancy %
94.8%
95.7%
93.5%
95.0%
Average daily rate (ADR)
$200
$195
$203
$203
Revenue per available room (REVPAR)
$190
$187
$190
$193
MGM Grand Las Vegas
Occupancy %
94.6%
97.1%
94.1%
95.7%
ADR
$108
$109
$114
$113
REVPAR
$102
$106
$107
$108
Mandalay Bay
Occupancy %
91.2%
93.6%
90.0%
90.3%
ADR
$155
$147
$157
$161
REVPAR
$142
$137
$141
$145
The Mirage
Occupancy %
95.8%
97.1%
93.3%
95.0%
ADR
$117
$119
$122
$127
REVPAR
$112
$115
$114
$120
Luxor
Occupancy %
92.1%
94.4%
89.7%
91.7 %
ADR
$73
$75
$76
$80
REVPAR
$67
$71
$68
$74
New York-New York
Occupancy %
93.2%
96.7%
92.1%
94.0%
ADR
$87
$92
$91
$96
REVPAR
$81
$89
$84
$90
Excalibur
Occupancy %
94.9%
95.0%
89.6%
89.6%
ADR
$54
$59
$57
$61
REVPAR
$51
$56
$51
$55
Monte Carlo
Occupancy %
95.5%
95.6%
91.4%
92.3%
ADR
$74
$82
$78
$84
REVPAR
$71
$78
$71
$78
Circus Circus Las Vegas
Occupancy %
86.8%
88.8%
78.9%
85.6%
ADR
$42
$43
$43
$44
REVPAR
$37
$39
$34
$38
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months
Ended
Nine Months
Ended
September 30,
September 30,
2010
2010
Aria
$ 219,418
$ 535,915
Vdara
10,859
28,629
Crystals
9,182
22,952
Mandarin Oriental
7,470
21,528
Resort operations
246,929
609,024
Residential operations
165,965
464,417
$ 412,894
$ 1,073,441
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(In thousands)
(Unaudited)
Three Months
Ended
Nine Months
Ended
September 30,
September 30,
2010
2010
Adjusted EBITDA
$ 52,357
$ 52,419
Preopening and start-up expenses
-
(6,202)
Property transactions, net
(372,035)
(600,133)
Depreciation and amortization
(80,821)
(230,004)
Operating loss
(400,499)
(783,920)
Non-operating income (expense):
Interest expense, net
(65,618)
(174,342)
Other
(189)
(4,910)
(65,807)
(179,252)
Net loss
$ (466,306)
$ (963,172)
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
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
(67,056)
-
92,813
308
26,065
Development and administration
(293,110)
-
279,222
579
(13,309)
$ (400,499)
$ -
$ 372,035
$ 80,821
$ 52,357
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
(244,648)
-
320,911
914
77,177
Development and administration
(313,338)
6,202
279,222
1,769
(26,145)
$ (783,920)
$ 6,202
$ 600,133
$ 230,004
$ 52,419
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