2016: Q2
MGM Resorts International Reports Strong Second Quarter Financial And Operating Results

LAS VEGAS, Aug. 4, 2016 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended June 30, 2016.

Key highlights include:

  • Diluted earnings per share for the second quarter of 2016 was $0.83, including $0.57 related to a gain on CityCenter's sale of The Shops at Crystals ("Crystals"), compared to diluted earnings per share of $0.17 in the prior year quarter;
  • Operating income was $769 million and included a $406 million gain related to the sale of Crystals;
  • Adjusted Property EBITDA surpassed $500 million for the first time since 2008 at the Company's domestic resorts;
  • Achieved highest domestic resorts Adjusted Property EBITDA margins since 2007 of 30.4%;
  • Increased Profit Growth Plan target by 33% to $400 million;
  • Profit Growth Plan contributed approximately $64 million of Adjusted Property EBITDA growth to domestic resorts and approximately $9 million of Adjusted EBITDA growth to the Company from its 50% share of CityCenter's results;
  • Announced and closed the acquisition of Boyd Gaming Corporation's ("Boyd Gaming") interest in the Borgata Hotel Casino & Spa ("Borgata") and the subsequent sale of the real property to MGM Growth Properties LLC ("MGP"); and
  • Announced plans to partner with Sydell Group in rebranding Monte Carlo Resort to Park MGM and NoMad Hotel.

"I am incredibly proud of the concerted effort of our talented executive teams and employees that produced our most profitable quarter in eight years at our domestic resorts," said Jim Murren, Chairman & CEO of MGM Resorts. "Our Profit Growth Plan drove our domestic resorts Adjusted Property EBITDA to grow an impressive 12% and Adjusted Property EBITDA margins to improve by over 350 basis points, despite a record-breaking May last year. With a solid foundation of operational excellence and the continued strength in the Las Vegas market, in which we are the clear leader, we believe that MGM Resorts is well-positioned to further improve our financial strength to deliver sustainable value to our shareholders."

Key operating results for the second quarter of 2016 include:

  • Net revenues at the Company's domestic resorts decreased 1% compared to the prior year quarter, but increased 1% excluding Circus Circus Reno, Railroad Pass, and the Company's properties in Jean Nevada, which were sold during 2015;
  • Rooms revenue at the Company's domestic resorts increased 2%, with a 3% increase in REVPAR(1) at the Company's Las Vegas Strip resorts, compared to the prior year quarter;
  • Operating income at the Company's domestic resorts increased 16% to $390 million compared to the prior year quarter; 
  • The Company's domestic resorts earned Adjusted Property EBITDA(2) of $515 million, a 12% increase compared to the prior year quarter;
  • Domestic resorts Adjusted Property EBITDA margin was 30.4%, a 354 basis point increase compared to the prior year quarter;
  • MGM China's net revenues were $452 million, operating income was $51 million and Adjusted EBITDA was $119 million, a decrease of 19% , 11% and 10%, respectively, compared to the prior year quarter;
  • CityCenter's net revenues related to resorts operations were $287 million compared to $295 million in the prior year quarter;
  • CityCenter Adjusted EBITDA related to resort operations was $78 million, a 6% increase compared to the prior year quarter;
  • CityCenter made distributions of $1.08 billion, of which MGM Resorts received its 50% share, or $540 million; and
  • On August 4, 2016, MGM China's Board of Directors announced an interim dividend of $58 million, which will be paid to shareholders of record as of August 22, 2016 and distributed on or about August 30, 2016.  MGM Resorts will receive $30 million, representing its 51% share of the dividend.

Certain Items Affecting Second Quarter Results

The following table lists certain other 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 June 30,


2016



2015


Preopening and start-up expenses


$

(0.03)



$

(0.02)


Income from unconsolidated affiliates:









     Gain on the sale of Crystals



0.57





Domestic Resorts

Casino revenue for the three months ended June 30, 2016 increased less than 1% compared to the same period in the prior year due to an increase in table games revenue excluding Circus Circus Reno, Railroad Pass, and the Company's properties in Jean Nevada, which were sold in 2015. Table games hold percentage in the second quarter of 2016 was 24.2% compared to 21.4% in the prior year quarter, while table games volume decreased 9% compared to the prior year quarter. Slots revenue decreased 1%, excluding the operations of resorts sold during 2015, compared to the prior year quarter. During the second quarter of 2015, the Company's revenues and operations were positively affected by the Mayweather vs. Pacquiao fight held on May 2, 2015 at the MGM Grand Garden Arena.

Rooms revenue increased 2%, with an increase in Las Vegas Strip REVPAR of 3%. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

Three months ended June 30,


2016



2015


Occupancy %



95

%



96

%

Average Daily Rate (ADR)


$

156



$

150


Revenue per Available Room (REVPAR)


$

148



$

144


Operating income for the Company's domestic resorts increased 16% for the second quarter of 2016 compared to the prior year quarter. Domestic resorts Adjusted Property EBITDA was $515 million in the second quarter of 2016, a 12% increase compared to the prior year quarter, and was positively affected by approximately $64 million of incremental Adjusted Property EBITDA as a result of the Company's Profit Growth Plan initiatives.

Corporate Expense

Corporate expense was $82 million, an increase of $22 million compared to the prior year quarter. The current year quarter included $5 million of costs incurred to implement initiatives related to the Profit Growth Plan and $16 million of costs incurred in connection with the MGP transactions.

MGM China

On August 4, 2016, MGM China's Board of Directors announced an interim dividend of $58 million, which will be paid to shareholders of record as of August 22, 2016 and distributed on or about August 30, 2016.  MGM Resorts will receive $30 million, representing its 51% share of the dividend.

Key second quarter results for MGM China include:

  • Net revenues of $452 million, a 19% decrease compared to the prior year quarter;
  • Main floor table games revenue decreased 3% compared to the prior year quarter;
  • VIP table games revenue decreased 33% due to a decrease in turnover of 28% compared to the prior year quarter, and hold percentage decreased to 3.1% in the current year quarter, compared to 3.2% in the prior year quarter;
  • Operating income of $51 million, compared to operating income of $58 million in the prior year quarter;
  • Adjusted EBITDA of $119 million, a 10% decrease compared to the prior year quarter, including $8 million of license fee expense in the current year quarter and $10 million in the prior year quarter; and
  • Operating margin increased by 104 basis points compared to the prior year quarter to 11.4%, and Adjusted EBITDA margin increased by 263 basis points compared to the prior year quarter to 26.4% as a result of an increase in main floor table games mix and continuous efforts to reduce costs.

MGM China paid the previously announced $46 million final 2015 dividend in June 2016, of which $23 million was received by MGM Resorts.

Unconsolidated Affiliates

The following table summarizes information related to the Company's share of income from unconsolidated affiliates:

Three months ended June 30,


2016



2015




(In thousands)


CityCenter


$

416,144



$

21,515


Borgata



27,376




15,767


Other



4,789




5,618




$

448,309



$

42,900


On April 14, 2016, CityCenter Holdings, LLC ("CityCenter") closed the sale of Crystals for approximately $1.1 billion. As a result, CityCenter reported a $411 million gain within discontinued operations for the second quarter of 2016. Further, MGM Resorts recorded a $406 million gain, which included $205 million representing its 50% share of the gain recorded by CityCenter and $201 million representing the reversal of certain basis differences.

CityCenter's results for the second quarter of 2016 included $20 million of accelerated depreciation associated with the April 2016 closure of the Zarkana theatre.

Results for CityCenter for the second quarter of 2016 include the following (see schedules accompanying this release for further detail on CityCenter's second quarter results):

  • Net revenues from resort operations were $287 million, a 3% decrease compared to the prior year quarter;
  • Operating loss was $0.4 million, which included $20 million of accelerated depreciation as discussed above compared to operating income of $16 million in the prior year;
  • Adjusted EBITDA from resort operations of $78 million, an increase of 6% compared to the prior year quarter; this was positively affected by approximately $18 million of incremental Adjusted EBITDA attributable to Profit Growth Plan initiatives;
  • Adjusted EBITDA at Aria of $68 million increased by 7% compared to the prior year quarter;
  • Aria's table games volume decreased 22% and table games hold percentage was 19.5%, compared to 21.5% in the prior year quarter;
  • REVPAR at Aria of $228, a 3% increase compared to the prior year quarter; and
  • REVPAR at Vdara of $190, a 6% increase compared to the prior year quarter, and a 2% increase in Adjusted EBITDA compared to the prior year quarter.

The Company's income from unconsolidated affiliates related to Borgata for the second quarter of 2016 increased 74%, compared to the prior year quarter, due to higher casino revenue as well as lower property tax expense due to the application of credits from a prior tax court judgment to Borgata's second quarter property tax payment.

In May 2016, the Company entered into a definitive agreement to acquire Boyd Gaming's interest in Borgata. Further, the Company and MGP, a subsidiary of the Company, entered into a definitive agreement whereby, following the completion of the acquisition of Boyd Gaming's interest, MGP acquired Borgata's real property from the Company and leased back the real property to a subsidiary of the Company (together, the "Transactions"). In connection with MGP's acquisition of Borgata's real property, the Company's ownership in MGM Growth Properties Operating Partnership LP (the "Operating Partnership") increased to 76.3%. 

The Transactions closed on August 1, 2016, at which time the Borgata became a consolidated subsidiary of the Company. The Company expects to record an approximately $400 million gain as a result of its consolidation of Borgata. Cash proceeds paid to Boyd Gaming for its interest were $589 million, after customary working capital adjustments and consideration of Borgata's outstanding debt of approximately $575 million, which was repaid using a combination of excess cash and a $295 million draw on MGP's credit facility.

MGM Growth Properties

During the second quarter of 2016, the Company made rent payments to MGP in the amount of $101 million. On June 16, 2016, MGP's Board of Directors declared a pro-rated quarterly dividend of $0.2632 per Class A common share totaling $15 million, which was paid on July 15, 2016 to holders of record on June 30, 2016. The Company concurrently received a $42 million distribution attributable to its ownership of Operating Partnership units.

Financial Position

The Company's cash balance at June 30, 2016 was $2.5 billion, which included $447 million at MGM China and $338 million at MGP. At June 30, 2016, the Company had $250 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $2.74 billion MGP senior credit facility, $1.7 billion outstanding under the $3 billion MGM China credit facility, and $350 million outstanding under the $525 million MGM National Harbor credit facility.

"Our strong operating results and the strategic initiatives we have successfully completed this year including the initial public offering of MGM Growth Properties, the acquisition and subsequent sale of the real property of Borgata, and the sale of Crystals and its related CityCenter distribution, have significantly strengthened our financial position," said Dan D'Arrigo, Executive Vice President and CFO of MGM Resorts International. "We remain focused on maximizing our free cash flow, which we believe will allow us to achieve our goal of becoming investment grade."

Conference Call Details

MGM Resorts 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 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 1565234. A replay of the call will be available through Thursday, August 11, 2016. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10089496. The call will be archived at www.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at www.mgmresorts.investorroom.com for reference during its August 4, 2016 earnings call.

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, goodwill impairment charges 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 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 portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company is in the process of developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts. MGM Resorts controls and holds a 73 percent economic interest in the operating partnership of MGM Growth Properties LLC (NYSE: MGP), a premier triple-net lease real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts. The Company also owns 51 percent of MGM China Holdings Limited (HK: 2282), which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino. MGM Resorts is named among FORTUNE® Magazine's 2016 list of World's Most Admired Companies®. 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, the Company's ability to generate future cash flow growth and to execute on future development and other projects, such as the Profit Growth Plan, the expected results of the Profit Growth Plan, the realization of any benefits from the MGP transactions and the Company's ability to execute its strategic plan and improve its financial flexibility. 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 the Company's 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 INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)
















Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2016


2015


2016


2015

Revenues:













Casino

$

1,127,404


$

1,235,976


$

2,261,760


$

2,514,478


Rooms


498,904



490,498



988,390



949,923


Food and beverage


412,766



423,183



789,871



807,284


Entertainment


121,853



134,972



240,179



260,940


Retail


52,432



55,482



97,905



100,519


Other


134,120



137,819



251,645



264,369


Reimbursed costs


100,795



103,548



201,844



204,608




2,448,274



2,581,478



4,831,594



5,102,121


Less: Promotional allowances


(178,772)



(196,343)



(352,406)



(384,742)




2,269,502



2,385,135



4,479,188



4,717,379

Expenses:













Casino


620,305



738,427



1,260,874



1,521,235


Rooms


142,252



142,065



286,994



283,378


Food and beverage


239,452



243,127



460,748



464,648


Entertainment


98,827



104,397



191,115



201,396


Retail


24,085



28,398



46,086



52,494


Other


87,253



95,835



167,021



180,158


Reimbursed costs


100,795



103,548



201,844



204,608


General and administrative


321,407



333,708



629,950



661,881


Corporate expense


81,803



59,602



153,051



109,958


Preopening and start-up expenses 


24,824



17,889



46,784



33,760


Property transactions, net


854



3,953



5,985



5,542


Depreciation and amortization


206,899



208,565



406,738



414,977




1,948,756



2,079,514



3,857,190



4,134,035














Income from unconsolidated affiliates


448,309



42,900



463,011



160,281














Operating income


769,055



348,521



1,085,009



743,625














Non-operating income (expense):













Interest expense, net of amounts capitalized


(180,352)



(203,245)



(365,021)



(419,507)


Non-operating items from unconsolidated affiliates


(15,885)



(17,766)



(34,097)



(36,777)


Other, net


(49,840)



(4,815)



(50,405)



(8,305)




(246,077)



(225,826)



(449,523)



(464,589)














Income before income taxes


522,978



122,695



635,486



279,036


Benefit (provision) for income taxes


(8,480)



3,772



(29,790)



60,077














Net income


514,498



126,467



605,696



339,113


Less: Net income attributable to noncontrolling interests


(40,145)



(29,008)



(64,544)



(71,804)

Net income attributable to MGM Resorts International

$

474,353


$

97,459


$

541,152


$

267,309














Per share of common stock:













Basic:













Net income attributable to MGM Resorts International

$

0.84


$

0.18


$

0.96


$

0.51















Weighted average shares outstanding


565,459



551,358



565,257



521,556















Diluted:













Net income attributable to MGM Resorts International

$

0.83


$

0.17


$

0.95


$

0.50















Weighted average shares outstanding


570,762



570,114



570,108



572,699

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)




















June 30,


December 31,




2016


2015









      ASSETS

Current assets:







Cash and cash equivalents

$

2,503,255


$

1,670,312


Accounts receivable, net


443,903



480,559


Inventories


97,800



104,200


Income tax receivable


11,194



15,993


Prepaid expenses and other


137,635



137,685



Total current assets


3,193,787



2,408,749









Property and equipment, net


16,102,856



15,371,795









Other assets:







Investments in and advances to unconsolidated affiliates


1,364,163



1,491,497


Goodwill 


1,429,279



1,430,767


Other intangible assets, net


4,072,317



4,164,781


Other long-term assets, net


386,653



347,589



Total other assets


7,252,412



7,434,634




$

26,549,055


$

25,215,178

















LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:







Accounts payable

$

161,420


$

182,031


Construction payable


333,796



250,120


Current portion of long-term debt


-



328,442


Accrued interest on long-term debt


160,445



165,914


Other accrued liabilities


1,262,118



1,311,444



Total current liabilities


1,917,779



2,237,951









Deferred income taxes, net 


2,591,317



2,680,576

Long-term debt


12,364,920



12,368,311

Other long-term obligations


141,906



157,663

Redeemable noncontrolling interest


6,250



6,250

Stockholders' equity:







Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 565,612,013 and 564,838,893 shares 


5,656



5,648


Capital in excess of par value


5,530,592



5,655,886


Accumulated deficit


(14,477)



(555,629)


Accumulated other comprehensive income 


10,809



14,022



Total MGM Resorts International stockholders' equity


5,532,580



5,119,927


Noncontrolling interests


3,994,303



2,644,500



Total stockholders' equity


9,526,883



7,764,427




$

26,549,055


$

25,215,178

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)














Three Months Ended


Six Months Ended


June 30,


June 30,


June 30,


June 30,


2016


2015


2016


2015

Bellagio

$

332,812


$

318,925


$

662,551


$

620,861

MGM Grand Las Vegas


300,232



303,780



568,686



568,606

Mandalay Bay


237,980



242,002



468,161



468,937

The Mirage 


153,041



157,000



297,636



299,505

Luxor


95,144



95,762



188,016



182,717

New York-New York 


83,056



78,199



164,427



154,083

Excalibur


78,453



75,404



152,741



142,665

Monte Carlo


71,208



75,145



140,928



147,012

Circus Circus Las Vegas


61,235



63,470



118,192



114,854

MGM Grand Detroit


140,462



141,029



281,327



274,344

Beau Rivage


99,388



94,455



188,825



181,395

Gold Strike Tunica


41,480



39,886



82,224



79,721

Other resort operations (1)


-



20,423



-



48,675

  Domestic resorts


1,694,491



1,705,480



3,313,714



3,283,375

MGM China


451,951



556,859



920,980



1,186,946

Management and other operations


123,060



122,796



244,494



247,058


$

2,269,502


$

2,385,135


$

4,479,188


$

4,717,379





































MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)














Three Months Ended


Six Months Ended


June 30,


June 30,


June 30,


June 30,


2016


2015


2016


2015

Bellagio

$

117,538


$

103,803


$

234,189


$

192,970

MGM Grand Las Vegas


97,489



72,650



178,383



137,856

Mandalay Bay


63,203



60,796



121,325



114,784

The Mirage 


35,848



38,099



74,178



68,619

Luxor


26,054



23,328



51,445



40,627

New York-New York 


30,478



27,616



61,381



52,209

Excalibur


24,954



21,783



48,831



38,325

Monte Carlo


21,820



22,310



43,120



42,366

Circus Circus Las Vegas


13,172



11,358



26,465



19,191

MGM Grand Detroit


43,790



42,739



83,832



76,351

Beau Rivage


28,036



21,715



50,835



40,105

Gold Strike Tunica


12,701



11,034



26,030



22,584

Other resort operations (1)


-



832



-



1,955

  Domestic resorts


515,083



458,063



1,000,014



847,942

MGM China


119,196



132,217



233,319



280,673

Unconsolidated resorts (2)


448,309



42,900



463,011



160,281

Management and other operations


4,372



7,895



8,487



24,212


$

1,086,960


$

641,075


$

1,704,831


$

1,313,108


(1) Sold in 2015

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

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)
















Three Months Ended June 30, 2016

















Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA

Bellagio

$

95,085


$

-


$

60


$

22,393


$

117,538

MGM Grand Las Vegas


79,293



-



(263)



18,459



97,489

Mandalay Bay


40,629



15



284



22,275



63,203

The Mirage 


26,132



-



(413)



10,129



35,848

Luxor


15,161



1,444



86



9,363



26,054

New York-New York 


25,006



372



97



5,003



30,478

Excalibur


20,741



-



203



4,010



24,954

Monte Carlo


9,494



145



61



12,120



21,820

Circus Circus Las Vegas


9,199



-



(4)



3,977



13,172

MGM Grand Detroit


37,815



-



-



5,975



43,790

Beau Rivage


21,460



-



(72)



6,648



28,036

Gold Strike Tunica


10,273



-



(4)



2,432



12,701

Other resort operations (1)


-



-



-



-



-

  Domestic resorts


390,288



1,976



35



122,784



515,083

MGM China


51,453



6,540



1,281



59,922



119,196

Unconsolidated resorts


447,504



805



-



-



448,309

Management and other operations


2,521



-



-



1,851



4,372



891,766



9,321



1,316



184,557



1,086,960

Stock compensation


(10,440)



-



-



-



(10,440)

Corporate 


(112,271)



15,503



(462)



22,342



(74,888)


$

769,055


$

24,824


$

854


$

206,899


$

1,001,632














































Three Months Ended June 30, 2015

















Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation

and amortization


Adjusted EBITDA

Bellagio

$

81,114


$

-


$

(13)


$

22,702


$

103,803

MGM Grand Las Vegas


53,890



-



92



18,668



72,650

Mandalay Bay


39,563



-



897



20,336



60,796

The Mirage 


25,706



(4)



1,301



11,096



38,099

Luxor


13,741



-



2



9,585



23,328

New York-New York 


22,237



232



-



5,147



27,616

Excalibur


17,999



-



101



3,683



21,783

Monte Carlo


15,630



1



12



6,667



22,310

Circus Circus Las Vegas


7,276



50



-



4,032



11,358

MGM Grand Detroit


36,806



-



-



5,933



42,739

Beau Rivage


15,197



-



-



6,518



21,715

Gold Strike Tunica


8,041



-



9



2,984



11,034

Other resort operations


611



-



-



221



832

  Domestic resorts


337,811



279



2,401



117,572



458,063

MGM China


57,606



3,770



497



70,344



132,217

Unconsolidated resorts


42,130



770



-



-



42,900

Management and other operations


4,749



277



956



1,913



7,895



442,296



5,096



3,854



189,829



641,075

Stock compensation


(7,315)



-



-



-



(7,315)

Corporate 


(86,460)



12,793



99



18,736



(54,832)


$

348,521


$

17,889


$

3,953


$

208,565


$

578,928

















(1) Sold in 2015

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)
















Six Months Ended June 30, 2016

















Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA

Bellagio

$

189,253


$

-


$

61


$

44,875


$

234,189

MGM Grand Las Vegas


141,555



-



500



36,328



178,383

Mandalay Bay


75,484



29



1,158



44,654



121,325

The Mirage 


54,126



-



(413)



20,465



74,178

Luxor


31,046



1,444



373



18,582



51,445

New York-New York 


50,493



372



100



10,416



61,381

Excalibur


37,710



-



2,969



8,152



48,831

Monte Carlo


26,271



145



152



16,552



43,120

Circus Circus Las Vegas


18,288



-



130



8,047



26,465

MGM Grand Detroit


71,846



-



-



11,986



83,832

Beau Rivage


37,650



-



(62)



13,247



50,835

Gold Strike Tunica


21,104



-



93



4,833



26,030

Other resort operations (1)


-



-



-



-



-

  Domestic resorts


754,826



1,990



5,061



238,137



1,000,014

MGM China


98,905



12,448



1,271



120,695



233,319

Unconsolidated resorts


459,924



3,087



-



-



463,011

Management and other operations


3,585



1,150



-



3,752



8,487



1,317,240



18,675



6,332



362,584



1,704,831

Stock compensation


(20,309)



-



-



-



(20,309)

Corporate 


(211,922)



28,109



(347)



44,154



(140,006)


$

1,085,009


$

46,784


$

5,985


$

406,738


$

1,544,516














































Six Months Ended June 30, 2015

















Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA

Bellagio

$

147,451


$

-


$

184


$

45,335


$

192,970

MGM Grand Las Vegas


100,616



-



82



37,158



137,856

Mandalay Bay


74,884



-



1,156



38,744



114,784

The Mirage 


43,580



50



1,300



23,689



68,619

Luxor


21,503



(1)



52



19,073



40,627

New York-New York 


41,909



(75)



264



10,111



52,209

Excalibur


30,908



-



82



7,335



38,325

Monte Carlo


29,944



1



529



11,892



42,366

Circus Circus Las Vegas


11,078



281



-



7,832



19,191

MGM Grand Detroit


64,545



-



-



11,806



76,351

Beau Rivage


27,056



-



-



13,049



40,105

Gold Strike Tunica


16,663



-



9



5,912



22,584

Other resort operations


1,504



-



-



451



1,955

  Domestic resorts


611,641



256



3,658



232,387



847,942

MGM China


129,972



6,841



829



143,031



280,673

Unconsolidated resorts


158,838



1,443



-



-



160,281

Management and other operations


18,863



544



956



3,849



24,212



919,314



9,084



5,443



379,267



1,313,108

Stock compensation


(14,894)



-



-



-



(14,894)

Corporate 


(160,795)



24,676



99



35,710



(100,310)


$

743,625


$

33,760


$

5,542


$

414,977


$

1,197,904

















(1) Sold in 2015

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL

(In thousands)

(Unaudited)
















Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2016


2015


2016


2015

Adjusted EBITDA

$

1,001,632


$

578,928


$

1,544,516


$

1,197,904

  Preopening and start-up expenses


(24,824)



(17,889)



(46,784)



(33,760)

  Property transactions, net


(854)



(3,953)



(5,985)



(5,542)

  Depreciation and amortization


(206,899)



(208,565)



(406,738)



(414,977)

Operating income


769,055



348,521



1,085,009



743,625














Non-operating income (expense):












  Interest expense, net of amounts capitalized


(180,352)



(203,245)



(365,021)



(419,507)

  Other, net


(65,725)



(22,581)



(84,502)



(45,082)




(246,077)



(225,826)



(449,523)



(464,589)














Income before income taxes


522,978



122,695



635,486



279,036

  Benefit (provision) for income taxes


(8,480)



3,772



(29,790)



60,077

Net income


514,498



126,467



605,696



339,113

  Less: Net income attributable to noncontrolling interests


(40,145)



(29,008)



(64,544)



(71,804)

Net income attributable to MGM Resorts International

$

474,353


$

97,459


$

541,152


$

267,309



























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)
















Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2016


2015


2016


2015


Bellagio













   Occupancy %


94.8%



96.9%



93.2%



92.6%


   Average daily rate (ADR)


$275



$264



$278



$266


   Revenue per available room (REVPAR)


$261



$256



$259



$246















MGM Grand Las Vegas













   Occupancy %


95.1%



97.4%



93.2%



94.7%


   ADR


$179



$167



$180



$169


   REVPAR


$170



$163



$168



$160















Mandalay Bay 













   Occupancy %


94.1%



93.1%



92.3%



91.7%


   ADR


$209



$208



$216



$209


   REVPAR


$197



$193



$199



$191















The Mirage













   Occupancy %


96.9%



96.5%



94.9%



93.3%


   ADR


$171



$169



$176



$171


   REVPAR


$166



$163



$167



$159















Luxor 













   Occupancy %


97.6%



96.1%



95.9%



94.2%


   ADR


$110



$107



$110



$106


   REVPAR


$107



$103



$106



$100















New York-New York













   Occupancy %


98.7%



99.5%



97.8%



98.6%


   ADR


$134



$128



$139



$131


   REVPAR


$132



$127



$136



$129















Excalibur 













   Occupancy %


96.9%



97.4%



94.3%



93.7%


   ADR


$94



$87



$95



$86


   REVPAR


$91



$85



$90



$81















Monte Carlo 













   Occupancy %


98.7%



98.6%



97.3%



96.9%


   ADR


$122



$119



$124



$120


   REVPAR


$120



$118



$121



$117















Circus Circus Las Vegas













   Occupancy %


84.8%



90.2%



81.8%



83.5%


   ADR


$76



$69



$77



$69


   REVPAR


$64



$62



$63



$57

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)




















Three Months Ended


Six Months Ended







June 30,


June 30,


June 30,


June 30,







2016


2015


2016


2015























Aria

$

240,800


$

250,933


$

495,525


$

491,083






Vdara


29,846



28,880



59,634



56,722






Mandarin Oriental


16,191



15,598



33,219



31,609






 Resort operations


286,837



295,411



588,378



579,414






Residential and other operations


2,149



10,217



2,149



28,391







$

288,986


$

305,628


$

590,527


$

607,805
























































CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME 

(In thousands)

(Unaudited)




















Three Months Ended


Six Months Ended







June 30,


June 30,


June 30,


June 30,







2016


2015


2016


2015






















Adjusted EBITDA

$

77,107


$

74,440


$

168,122


$

148,492





  Property transactions, net


574



(661)



2,012



159,032





  Depreciation and amortization


(78,100)



(57,707)



(197,696)



(115,645)





Operating income (loss)


(419)



16,072



(27,562)



191,879






















Non-operating income (expense):
















  Interest expense - other


(14,209)



(18,082)



(31,401)



(36,116)





  Other, net


78



19



(3,756)



(14)








(14,131)



(18,063)



(35,157)



(36,130)





Net income (loss) from continuing operations


(14,550)



(1,991)



(62,719)



155,749





Discontinued operations
















  Income from operations of discontinued
















   component


411,592



6,145



400,035



12,006





Net income

$

397,042


$

4,154


$

337,316


$

167,755






















CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)


















Three Months Ended June 30, 2016





















Operating income

(loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA



Aria

$

769


$

-


$

(581)


$

68,028


$

68,216



Vdara


1,197



-



7



6,972



8,176



Mandarin Oriental


(1,748)



-



-



3,100



1,352



 Resort operations


218



-



(574)



78,100



77,744



Residential, administration and

















other operations


(637)



-



-



-



(637)




$

(419)


$

-


$

(574)


$

78,100


$

77,107





















































Three Months Ended June 30, 2015





















Operating income

(loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA



Aria

$

16,024


$

-


$

661


$

46,810


$

63,495



Vdara


211



-



-



7,827



8,038



Mandarin Oriental


(1,550)



-



-



3,054



1,504



 Resort operations


14,685



-



661



57,691



73,037



Residential, administration and

















other operations


1,387



-



-



16



1,403




$

16,072


$

-


$

661


$

57,707


$

74,440


 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

















Six Months Ended June 30, 2016



















Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA


Aria

$

(27,559)


$

-


$

(472)


$

177,589


$

149,558


Vdara


3,460



-



(329)



13,908



17,039


Mandarin Oriental


(2,984)



-



-



6,199



3,215


 Resort operations


(27,083)



-



(801)



197,696



169,812


Residential, administration and
















other operations


(479)



-



(1,211)



-



(1,690)



$

(27,562)


$

-


$

(2,012)


$

197,696


$

168,122

















































Six Months Ended June 30, 2015



















Operating

income (loss)


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA


Aria

$

29,841


$

-


$

948


$

94,053


$

124,842


Vdara


16



-



-



15,662



15,678


Mandarin Oriental


(2,957)



-



-



6,094



3,137


 Resort operations


26,900



-



948



115,809



143,657


Residential, administration and
















other operations


164,979



-



(159,980)



(164)



4,835



$

191,879


$

-


$

(159,032)


$

115,645


$

148,492

















































CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)



















Three Months Ended


Six Months Ended






June 30,


June 30,


June 30,


June 30,






2016


2015


2016


2015





Aria
















   Occupancy %


93.8%



94.8%



92.1%



92.3%





   ADR


$243



$234



$249



$239





   REVPAR


$228



$222



$229



$221





















Vdara
















   Occupancy %


94.5%



95.8%



92.7%



93.5%





   ADR


$201



$187



$205



$189





   REVPAR


$190



$179



$190



$176




 

SOURCE MGM Resorts International

For further information: MGM Resorts: Investment Community: Catherine Park, Executive Director of Investor Relations, (702) 693-8711 or News Media: Clark Dumont, Senior Vice President of Corporate Communications, (702) 692-6888, cdumont@mgmresorts.com

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