2017: Q1
MGM Resorts International Reports First Quarter Financial And Operating Results
Increased diluted earnings per share in the first quarter of 2017 by 200% to $0.36 from $0.12 in the prior year quarter; Declared quarterly dividend of $0.11 per share

LAS VEGAS, April 27, 2017 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended March 31, 2017.

"MGM Resorts had a strong start to the year, as evidenced by our first quarter diluted earnings per share which tripled last year's results, double digit same-store Adjusted Property EBITDA growth at our domestic resorts, record results at CityCenter and solid performance at MGM China. MGM National Harbor and Borgata, our newest additions on the East Coast, are leading their respective markets, and we continue to work toward expanding our footprint in Macau with the opening of MGM Cotai later this year," said Jim Murren, Chairman & CEO of MGM Resorts. "Every year, we take steps to further this Company as an innovative market leader positioned for operational strength, financial flexibility, and prudent growth. We remain focused on building upon this effort as we continue to execute on our strategies to profitably grow our Company and return value to our shareholders."

Financial Highlights:

  • Diluted earnings per share for the first quarter of 2017 increased 200% to $0.36, compared to $0.12 in the prior year quarter;
  • Net revenues increase of 29% over the prior year quarter at the Company's domestic resorts to $2.1 billion, and a 6% increase on a same-store basis, excluding contributions from Borgata and MGM National Harbor;
  • REVPAR(1)  growth of 8.6% over the prior year quarter at the Company's Las Vegas Strip resorts;
  • Operating income of $477 million at the Company's domestic resorts, a 31% increase over the prior year quarter; 
  • Net income attributable to MGM Resorts of $207 million, compared to $67 million in the prior year quarter;
  • Adjusted Property EBITDA(2) growth of 34% over the prior year quarter to $648 million at the Company's domestic resorts, and a 15% increase on a same-store basis;
  • Same-store operating margin of 25.0% in the current quarter at the Company's domestic resorts, an increase of 245 basis points compared to the prior year quarter;
  • Same-store Adjusted Property EBITDA margin of 32.5% at the Company's domestic resorts, an increase of 257 basis points compared to the prior year quarter;
  • MGM China operating income of $73 million compared to $47 million in the prior year quarter, and Adjusted EBITDA of $143 million, a 25% increase compared to the prior year quarter; and
  • CityCenter operating income of $57 million and Adjusted EBITDA of $111 million, a 22% increase in Adjusted EBITDA compared to the prior year quarter.

Strategic Highlights:

  • Distributed $63 million related to the previously announced quarterly dividend of $0.11 per share;
  • On track to completing Profit Growth Plan goal of $400 million Adjusted EBITDA contribution to the Company's domestic resorts and 50% share of CityCenter results by the second quarter of 2017;
  • CityCenter completed a $1.725 billion refinancing of its senior credit facilities, which consisted of an upsized $1.6 billion term loan and an upsized $125 million revolving credit facility;
  • In April 2017, CityCenter paid a $600 million dividend, consisting of a $350 million dividend using proceeds from the upsized senior credit facilities and a $250 million dividend from cash on hand, of which $78 million was part of its annual dividend policy. MGM Resorts received its 50% share, or $300 million; and
  • Improved MGP's Operating Partnership's term loan B facility pricing to LIBOR plus 2.25%, a 25 basis point decrease from the prior pricing level.

Certain Items Affecting First 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 March 31,

 

2017

   

2016

 

Preopening and start-up expenses

 

$

(0.02)

   

$

(0.02)

 

Property transactions, net

   

     

(0.01)

 

Income from unconsolidated affiliates:

               

       Crystals related property transaction, net

   

     

(0.01)

 

Domestic Resorts

Casino revenue for the first quarter of 2017 increased 50% compared to the prior year quarter, due primarily to the acquisition of Borgata Hotel Casino and Spa ("Borgata"), the MGM National Harbor opening on December 8, 2016, and an increase in both table games and slots revenue. Casino revenue increased 4% on a same-store basis compared to the prior year quarter. Table games revenues increased 7% on a same-store basis and slots revenue increased 2% on a same-store basis compared to the prior year quarter.

The following table shows key gaming statistics for the Company's Las Vegas Strip resorts:

Three months ended March 31,

 

2017

   

2016

 
   

(Dollars in millions)

 

Table Games Drop

 

$

993

   

$

972

 

Table Games Win %

   

25.2

%

   

23.7

%

Slot Handle

 

$

3,003

   

$

3,001

 

Slot Hold %

   

8.6

%

   

8.4

%

Domestic resorts rooms revenue increased 15% compared to the prior year quarter. On a same-store basis, rooms revenue increased 8% compared to the prior year quarter. Las Vegas Strip REVPAR increased 8.6%.

The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

Three months ended March 31,

 

2017

   

2016

 

Occupancy %

   

91

%

   

91

%

Average Daily Rate (ADR)

 

$

176

   

$

162

 

Revenue per Available Room (REVPAR)

 

$

161

   

$

148

 

Operating income at the Company's domestic resorts was $477 million for the first quarter of 2017 compared to $365 million in the prior year quarter. Domestic resorts Adjusted Property EBITDA increased 34% to $648 million in the first quarter of 2017 and was positively impacted by $59 million of Adjusted Property EBITDA from Borgata and $32 million of Adjusted Property EBITDA from MGM National Harbor. Same-store Adjusted Property EBITDA increased 15% compared to the prior year quarter.

Mr. Murren added, "The Company's high operating efficiencies, a robust event calendar, and modestly favorable table games hold helped drive a very strong first quarter in Las Vegas contributing to 33% Adjusted Property EBITDA margins at our Strip resorts. As we look to the second quarter, our underlying business remains strong, although we face a challenging comparison due to the Easter holiday shifting back into April as well as favorable second quarter 2016 table games hold. Based on these factors, we anticipate gaming revenues to be lower and our non-gaming revenues to be up year over year. We expect to grow Strip REVPAR by 1.5% to 2.5%. Despite the difficult table games hold comparison, we believe our Adjusted Property EBITDA margins will remain essentially flat at our Las Vegas Strip resorts, compared to the prior year quarter."

Corporate Expense

Corporate expense was $73 million in the first quarter of 2017, an increase of $2 million compared to the prior year quarter. The current year quarter included $2 million related to MGM Growth Properties LLC ("MGP") and $3 million in additional stock compensation costs. The prior year quarter included costs incurred to implement initiatives related to the Profit Growth Plan and costs associated with the initial public offering of MGP totaling $14 million.

MGM China

Key first quarter results for MGM China include:

  • Net revenues of $502 million, a 7% increase compared to the prior year quarter;
  • Main floor table games revenue increased 17% due to an increase in hold percentage to 22.2% in the current year quarter, from 18.0% in the prior year quarter;
  • VIP table games revenue decreased 5% due to a 16% decrease in turnover partially offset by an increase in hold percentage to 3.4% in the current year quarter, from 3.0% in the prior year quarter;
  • Operating income was $73 million compared to $47 million in the prior year quarter;
  • Adjusted EBITDA increased 25% to $143 million, compared to $114 million in the prior year quarter, including $9 million of license fee expense in the current year quarter and $8 million in the prior year quarter; and
  • Operating margin was 14.6% in the current year quarter, and Adjusted EBITDA margin was 28.5%, an increase of 413 basis points compared to the prior year quarter.

Unconsolidated Affiliates

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

Three months ended March 31,

 

2017

   

2016

 
   

(In thousands)

 

CityCenter

 

$

37,319

   

$

(9,149)

 

Borgata

   

     

19,550

 

Other

   

2,384

     

4,301

 
   

$

39,703

   

$

14,702

 

Our share of CityCenter Holdings, LLC ("CityCenter") operating results for the first quarter of 2017, including certain basis difference adjustments, was $37 million. Our share of CityCenter's operating income in the prior year quarter was negatively impacted by $31 million due to accelerated depreciation associated with the April 2016 closure of the Zarkana theatre and $9 million due to a charge related to the sale of Crystals.

Key first quarter results for CityCenter include the following (see schedules accompanying this release for further detail on CityCenter's first quarter results):

  • Net revenues from resort operations were $326 million, an 8% increase compared to the prior year quarter, due primarily to an increase in casino, rooms, and food and beverage revenues partially offset by a decrease in entertainment revenue as the Zarkana show closed on April 30, 2016;
  • Operating income from resorts operations was $58 million, compared to an operating loss of $27 million in the prior year quarter which included $61 million of accelerated depreciation related to the Zarkana theatre and an $18 million charge associated with the Crystals sale;
  • Adjusted EBITDA from resort operations was $112 million, a 22% increase compared to the prior year quarter;
  • Aria's table games volume decreased 5% and table games hold percentage was 25.6%, compared to 23.8% in the prior year quarter;
  • REVPAR at Aria increased 9.1% compared to the prior year quarter to $251; and
  • Vdara reported REVPAR of $202 in the current year quarter, and Adjusted EBITDA increased 22% to $11 million compared to the prior year quarter.

On August 1, 2016 the Company completed the previously announced acquisition of Boyd Gaming Corporation's interest in Borgata, at which time the entity operating Borgata became a consolidated subsidiary of the Company and the real estate assets associated with Borgata were contributed to MGP. Prior to the acquisition, the Company held a 50% interest in Borgata, which was accounted for under the equity method.

MGM Growth Properties

During the first quarter of 2017, MGP recorded rent income of $163 million and MGM Growth Properties Operating Partnership LP (the "Operating Partnership") paid distributions of $72 million to the Company. On March 15, 2017, MGP's Board of Directors declared a quarterly dividend of $0.3875 per Class A share totaling $22 million, which was paid on April 13, 2017 to holders of record on March 31, 2017. The Company concurrently received a $72 million distribution attributable to its ownership of Operating Partnership units.

MGM Resorts Dividend

The Company's Board of Directors approved a quarterly dividend on April 26, 2017. The dividend of $0.11 per share will be payable on June 15, 2017 to stockholders of record at the close of business on June 9, 2017, and will equate to approximately $63 million in aggregate.

Financial Position

The Company's cash balance at March 31, 2017 was $1.4 billion, which included $465 million at MGM China and $368 million at MGP. At March 31, 2017, the Company had $13.2 billion of principal amount of indebtedness outstanding, including $297 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $2.7 billion Operating Partnership senior credit facility, $2.0 billion outstanding under the $3.0 billion MGM China credit facility, and $450 million outstanding under the $525 million MGM National Harbor credit facility.

"Our commitment to enhancing our financial position continues into 2017 as evidenced by the $300 million distribution from CityCenter and further deleveraging of the MGM Resorts balance sheet," said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. "We continue to focus on maximizing our cash flows and improving our capital structure, while supporting a disciplined approach to capital allocation and ultimately returning MGM Resorts to 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 4326037. A replay of the call will be available through Thursday, May 4, 2017. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10103917. 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 the 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 and MGP stock compensation plans, which are 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. "Same-store Adjusted Property EBITDA" is Adjusted Property EBITDA related to operating resorts which were consolidated by the Company for both the entire current and prior year periods presented. 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, Adjusted Property EBITDA, and Same-store 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 and Same-store Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance.

Adjusted EBITDA, Adjusted Property EBITDA and Same-store Adjusted Property EBITDA should not be construed as alternatives to operating income or net income, as indicators of our performance; or as alternatives to cash flows from operating activities, as measures of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA information may calculate Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA in a different manner.

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

The Company does not provide reconciliations of Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA to net income on a forward-looking basis because the Company is unable to forecast the amount or significance of certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items include gains or losses on sale or consolidation transactions, accelerated depreciation, impairment charges, gains or losses on retirement of debt and variations in effective tax rate, which are difficult to predict and estimate and are primarily dependent on future events, but which are excluded from the Company's calculations of Adjusted EBITDA, Adjusted Property EBITDA and Same-store Adjusted Property EBITDA.

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 opened MGM National Harbor in Maryland on December 8, 2016, and is in the process of developing MGM Springfield in Massachusetts. MGM Resorts controls and holds a 76 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 56 percent of MGM China Holdings Limited (SEHK: 2282), which owns MGM MACAU and is developing MGM COTAI, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino. MGM Resorts is named among FORTUNE® Magazine's 2017 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 expectations regarding future results and the Company's financial outlook (including REVPAR and other guidance), the payment of any future cash dividends on the Company's common stock, the Company's ability to generate future cash flow growth and to execute on future development and other projects (including the opening of MGM Cotai later this year) 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

           

March 31,

 

March 31,

           

2017

 

2016

Revenues:

               
 

Casino

     

$

1,505,389

 

$

1,134,356

 

Rooms

       

562,267

   

489,486

 

Food and beverage

   

444,469

   

377,105

 

Entertainment

     

130,347

   

118,326

 

Retail

       

47,976

   

45,473

 

Other

       

140,575

   

117,525

 

Reimbursed costs

   

100,215

   

101,049

             

2,931,238

   

2,383,320

 

Less: Promotional allowances

   

(223,059)

   

(173,634)

             

2,708,179

   

2,209,686

Expenses:

               
 

Casino

       

804,595

   

640,569

 

Rooms

       

154,836

   

144,742

 

Food and beverage

   

249,845

   

221,296

 

Entertainment

     

99,939

   

92,288

 

Retail

       

23,108

   

22,001

 

Other

       

89,624

   

79,768

 

Reimbursed costs

   

100,215

   

101,049

 

General and administrative

   

388,835

   

308,543

 

Corporate expense

   

73,173

   

71,248

 

Preopening and start-up expenses 

   

15,066

   

21,960

 

Property transactions, net

   

1,696

   

5,131

 

Depreciation and amortization

   

249,769

   

199,839

             

2,250,701

   

1,908,434

                     

Income from unconsolidated affiliates

   

39,703

   

14,702

                     

Operating income

     

497,181

   

315,954

                     

Non-operating income (expense):

           
 

Interest expense, net of amounts capitalized

   

(174,059)

   

(184,669)

 

Non-operating items from unconsolidated affiliates

   

(6,921)

   

(18,212)

 

Other, net

     

(817)

   

(565)

             

(181,797)

   

(203,446)

                     

Income before income taxes

   

315,384

   

112,508

 

Provision for income taxes

   

(62,375)

   

(21,310)

                     

Net income

       

253,009

   

91,198

 

Less: Net income attributable to noncontrolling interests

   

(46,162)

   

(24,399)

Net income attributable to MGM Resorts International

 

$

206,847

 

$

66,799

                     

Per share of common stock:

           
 

Basic:

               
 

Net income attributable to MGM Resorts International

 

$

0.36

 

$

0.12

                     
 

Weighted average shares outstanding

   

574,403

   

565,056

                     
 

Diluted:

               
 

Net income attributable to MGM Resorts International

 

$

0.36

 

$

0.12

                     
 

Weighted average shares outstanding

   

580,165

   

569,455

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

                     
                     
           

March 31,

 

December 31,

           

2017

 

2016

                     

      ASSETS

Current assets:

                 
 

           Cash and cash equivalents

 

$

1,395,444

 

$

1,446,581

 

           Accounts receivable, net

   

493,765

   

542,924

 

           Inventories

       

100,502

   

97,733

 

           Prepaid expenses and other

   

183,007

   

142,349

 

 

                                  Total current assets

   

2,172,718

   

2,229,587

                     

Property and equipment, net

     

18,619,666

   

18,425,023

                     

Other assets:

                 
 

           Investments in and advances to unconsolidated affiliates

 

1,252,432

   

1,220,443

 

           Goodwill 

         

1,814,028

   

1,817,119

 

           Other intangible assets, net

   

4,033,756

   

4,087,706

 

           Other long-term assets, net

   

410,492

   

393,423

 

 

                                  Total other assets

   

7,510,708

   

7,518,691

           

$

28,303,092

 

$

28,173,301

                     
                     

LIABILITIES AND STOCKHOLDERS' EQUITY

                     

Current liabilities:

               
 

           Accounts payable

   

$

204,835

 

$

250,477

 

           Construction payable

     

214,861

   

270,361

 

           Income taxes payable

     

77,348

   

10,654

 

           Current portion of long-term debt

   

-

   

8,375

 

           Accrued interest on long-term debt

   

112,096

   

159,028

 

           Other accrued liabilities

     

1,515,624

   

1,594,526

 

 

                                  Total current liabilities

   

2,124,764

   

2,293,421

                     

Deferred income taxes, net 

     

2,541,746

   

2,551,228

Long-term debt, net

       

13,099,190

   

12,979,220

Other long-term obligations

     

340,906

   

325,981

Redeemable noncontrolling interest

   

55,769

   

54,139

Stockholders' equity:

               
 

           Common stock, $.01 par value: authorized 1,000,000,000 shares,
             
issued and outstanding 574,466,085 and 574,123,706 shares 

         
   

5,745

   

5,741

 

           Capital in excess of par value

   

5,674,057

   

5,653,575

 

           Retained earnings

     

689,476

   

545,811

 

           Accumulated other comprehensive income 

 

7,217

   

15,053

 

 

                                  Total MGM Resorts International stockholders' equity

 

6,376,495

   

6,220,180

 

           Noncontrolling interests

     

3,764,222

   

3,749,132

 

 

                                  Total stockholders' equity

 

10,140,717

   

9,969,312

           

$

28,303,092

 

$

28,173,301

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

                     
           

Three Months Ended

           

March 31,

 

March 31,

           

2017

 

2016

 

Bellagio

       

$

341,254

 

$

329,739

 

MGM Grand Las Vegas

   

267,526

   

268,454

 

Mandalay Bay

     

253,033

   

230,181

 

The Mirage 

       

172,331

   

144,595

 

Luxor

         

101,627

   

92,872

 

New York-New York 

   

89,939

   

81,371

 

Excalibur

         

78,980

   

74,288

 

Monte Carlo

       

72,533

   

69,720

 

Circus Circus Las Vegas

   

58,721

   

56,957

 

MGM Grand Detroit

   

144,232

   

140,865

 

Beau Rivage

       

89,177

   

89,437

 

Gold Strike Tunica

   

42,822

   

40,744

 

Borgata

         

201,081

   

-

 

National Harbor

     

173,159

   

-

 

  Domestic resorts

   

2,086,415

   

1,619,223

 

MGM China

       

502,374

   

469,029

 

Management and other operations

 

119,390

   

121,434

           

$

2,708,179

 

$

2,209,686

                     
                     
                     

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

                     
           

Three Months Ended

           

March 31,

 

March 31,

           

2017

 

2016

 

Bellagio

       

$

129,107

 

$

116,651

 

MGM Grand Las Vegas

   

73,650

   

80,894

 

Mandalay Bay

     

78,117

   

58,122

 

The Mirage 

       

62,095

   

38,330

 

Luxor

         

32,804

   

25,391

 

New York-New York 

   

33,912

   

30,903

 

Excalibur

         

28,798

   

23,877

 

Monte Carlo

       

22,454

   

21,300

 

Circus Circus Las Vegas

   

15,958

   

13,293

 

MGM Grand Detroit

   

44,604

   

40,042

 

Beau Rivage

       

20,487

   

22,799

 

Gold Strike Tunica

   

14,726

   

13,329

 

Borgata

         

58,923

   

-

 

National Harbor

     

32,140

   

-

 

  Domestic resorts

   

647,775

   

484,931

 

MGM China

       

142,982

   

114,123

 

Unconsolidated resorts (1)

   

39,703

   

14,702

 

Management and other operations

 

10,916

   

4,115

           

$

841,376

 

$

617,871

                     

 

 

(1) 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 March 31, 2017

 
             

Operating
income
(loss)

 

Preopening
and start-up
expenses

 

Property
transactions,
net

 

Depreciation
and
amortization

 

Adjusted
EBITDA

 

Bellagio

         

$

106,876

 

$

-

 

$

85

 

$

22,146

 

$

129,107

 

MGM Grand Las Vegas

     

55,822

   

7

   

233

   

17,588

   

73,650

 

Mandalay Bay

       

53,490

   

-

   

-

   

24,627

   

78,117

 

The Mirage 

         

52,760

   

-

   

-

   

9,335

   

62,095

 

Luxor

           

23,083

   

-

   

(1)

   

9,722

   

32,804

 

New York-New York 

     

24,600

   

(8)

   

129

   

9,191

   

33,912

 

Excalibur

           

24,541

   

-

   

55

   

4,202

   

28,798

 

Monte Carlo

         

8,817

   

610

   

31

   

12,996

   

22,454

 

Circus Circus Las Vegas

     

11,718

   

-

   

239

   

4,001

   

15,958

 

MGM Grand Detroit

     

38,825

   

-

   

-

   

5,779

   

44,604

 

Beau Rivage

         

14,450

   

-

   

-

   

6,037

   

20,487

 

Gold Strike Tunica

     

12,413

   

-

   

(28)

   

2,341

   

14,726

 

Borgata

           

38,884

   

35

   

804

   

19,200

   

58,923

 

National Harbor

       

10,608

   

74

   

-

   

21,458

   

32,140

 

  Domestic resorts

     

476,887

   

718

   

1,547

   

168,623

   

647,775

 

MGM China

         

73,190

   

9,824

   

149

   

59,819

   

142,982

 

Unconsolidated resorts (1)

   

39,703

   

-

   

-

   

-

   

39,703

 

Management and other operations

 

9,114

   

-

   

-

   

1,802

   

10,916

               

598,894

   

10,542

   

1,696

   

230,244

   

841,376

 

Stock compensation

     

(13,363)

   

-

   

-

   

-

   

(13,363)

 

Corporate 

           

(88,350)

   

4,524

   

-

   

19,525

   

(64,301)

             

$

497,181

 

$

15,066

 

$

1,696

 

$

249,769

 

$

763,712

                                         
                                         
                                         

Three Months Ended March 31, 2016

 
             

Operating
income
(loss)

 

Preopening
and start-up
expenses

 

Property
transactions,
net

 

Depreciation
and
amortization

 

Adjusted
EBITDA

 

Bellagio

         

$

94,168

 

$

-

 

$

1

 

$

22,482

 

$

116,651

 

MGM Grand Las Vegas

     

62,262

   

-

   

763

   

17,869

   

80,894

 

Mandalay Bay

       

34,855

   

14

   

874

   

22,379

   

58,122

 

The Mirage 

         

27,994

   

-

   

-

   

10,336

   

38,330

 

Luxor

           

15,885

   

-

   

287

   

9,219

   

25,391

 

New York-New York 

     

25,487

   

-

   

3

   

5,413

   

30,903

 

Excalibur

           

16,969

   

-

   

2,766

   

4,142

   

23,877

 

Monte Carlo

         

16,777

   

-

   

91

   

4,432

   

21,300

 

Circus Circus Las Vegas

     

9,089

   

-

   

134

   

4,070

   

13,293

 

MGM Grand Detroit

     

34,031

   

-

   

-

   

6,011

   

40,042

 

Beau Rivage

         

16,190

   

-

   

10

   

6,599

   

22,799

 

Gold Strike Tunica

     

10,831

   

-

   

97

   

2,401

   

13,329

 

  Domestic resorts

     

364,538

   

14

   

5,026

   

115,353

   

484,931

 

MGM China

         

47,452

   

5,908

   

(10)

   

60,773

   

114,123

 

Unconsolidated resorts (1)

   

12,420

   

2,282

   

-

   

-

   

14,702

 

Management and other operations

 

1,064

   

1,150

   

-

   

1,901

   

4,115

               

425,474

   

9,354

   

5,016

   

178,027

   

617,871

 

Stock compensation

     

(9,869)

   

-

   

-

   

-

   

(9,869)

 

Corporate 

           

(99,651)

   

12,606

   

115

   

21,812

   

(65,118)

             

$

315,954

 

$

21,960

 

$

5,131

 

$

199,839

 

$

542,884

                                         

 

 

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

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

               
     

Three Months Ended

     

March 31,

 

March 31,

     

2017

 

2016

Net income attributable to MGM Resorts International

 

$

206,847

 

$

66,799

     

  Plus: Net income attributable to noncontrolling interests

   

46,162

   

24,399

     

Net income

   

253,009

   

91,198

  Provision for income taxes

   

62,375

   

21,310

Income before income taxes

   

315,384

   

112,508

               

Non-operating (income) expense:

           

  Interest expense, net of amounts capitalized

   

174,059

   

184,669

  Other, net

   

7,738

   

18,777

       

181,797

   

203,446

               

Operating income

   

497,181

   

315,954

  Preopening and start-up expenses

   

15,066

   

21,960

  Property transactions, net

   

1,696

   

5,131

  Depreciation and amortization

   

249,769

   

199,839

Adjusted EBITDA

 

$

763,712

 

$

542,884

               
               
 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF DOMESTIC RESORTS ADJUSTED PROPERTY EBITDA TO DOMESTIC RESORTS SAME-STORE ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

               
     

Three Months Ended

     

March 31,

 

March 31,

     

2017

 

2016

Domestic resorts Adjusted Property EBITDA

 

$

647,775

 

$

484,931

  Adjusted Property EBITDA related to Borgata

   

(58,923)

   

-

  Adjusted Property EBITDA related to National Harbor 

   

(32,140)

   

-

       

Domestic resorts same-store Adjusted Property EBITDA

 

$

556,712

 

$

484,931

     
               
               
 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

 

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

 

(Unaudited)

               
     

Three Months Ended

     

March 31,

 

March 31,

     

2017

 

2016

 

Bellagio

           
 

   Occupancy %

   

93.0%

   

91.5%

 

   Average daily rate (ADR)

   

$294

   

$281

 

   Revenue per available room (REVPAR)

   

$274

   

$257

       
               
 

MGM Grand Las Vegas

           
 

   Occupancy %

   

91.2%

   

90.9%

 

   ADR

   

$201

   

$186

 

   REVPAR

   

$184

   

$169

               
 

Mandalay Bay 

           
 

   Occupancy %

   

91.0%

   

90.4%

 

   ADR

   

$238

   

$223

 

   REVPAR

   

$217

   

$201

               
 

The Mirage

           
 

   Occupancy %

   

91.9%

   

92.8%

 

   ADR

   

$193

   

$180

 

   REVPAR

   

$178

   

$167

               
 

Luxor 

           
 

   Occupancy %

   

93.2%

   

94.1%

 

   ADR

   

$127

   

$110

 

   REVPAR

   

$118

   

$104

               
 

New York-New York

           
 

   Occupancy %

   

95.4%

   

96.8%

 

   ADR

   

$155

   

$144

 

   REVPAR

   

$148

   

$140

               
 

Excalibur 

           
 

   Occupancy %

   

90.4%

   

91.6%

 

   ADR

   

$110

   

$96

 

   REVPAR

   

$99

   

$88

               
 

Monte Carlo 

           
 

   Occupancy %

   

95.5%

   

96.0%

 

   ADR

   

$133

   

$126

 

   REVPAR

   

$127

   

$121

               
 

Circus Circus Las Vegas

           
 

   Occupancy %

   

80.5%

   

78.9%

 

   ADR

   

$90

   

$79

 

   REVPAR

   

$73

   

$62

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

                       
             

Three Months Ended

             

March 31,

 

March 31,

             

2017

 

2016

                       
 

Aria

         

$

274,883

 

$

254,725

 

Vdara

           

32,256

   

29,788

 

Mandarin Oriental

     

18,453

   

17,028

             

$

325,592

 

$

301,541

                       
                       
                       

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

                       
             

Three Months Ended

             

March 31,

 

March 31,

             

2017

 

2016

                       

Net income (loss)

     

$

44,437

 

$

(59,726)

 Less: Income from discontinued operations

 

-

   

11,557

Income (loss) from continuing operations

 

44,437

   

(48,169)

                       

Non-operating (income) expense:

           

  Interest expense, net of amounts capitalized

 

12,760

   

17,444

  Other, net

           

(618)

   

3,582

               

12,142

   

21,026

                       

Operating income (loss)

     

56,579

   

(27,143)

  Property transactions, net

     

(410)

   

(1,438)

  Depreciation and amortization

   

55,135

   

119,596

Adjusted EBITDA

     

$

111,304

 

$

91,015

                       

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

                       
             

Three Months Ended

             

March 31,

 

March 31,

             

2017

 

2016

 

Aria

                   
 

   Occupancy %

       

91.4%

   

90.4%

 

   ADR

           

$275

   

$255

 

   REVPAR

           

$251

   

$230

                       
 

Vdara

                   
 

   Occupancy %

       

90.1%

   

89.7%

 

   ADR

           

$224

   

$209

 

   REVPAR

           

$202

   

$188

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

                                         

Three Months Ended March 31, 2017

 
             

Operating
income
(loss)

 

Preopening and
start-up
expenses

 

Property
transactions,
net

 

Depreciation
and
amortization

 

Adjusted
EBITDA

 

Aria

         

$

54,114

 

$

-

 

$

(411)

 

$

45,119

 

$

98,822

 

Vdara

           

3,894

   

-

   

1

   

6,928

   

10,823

 

Mandarin Oriental

 

(392)

   

-

   

-

   

3,088

   

2,696

 

 Resort operations

 

57,616

   

-

   

(410)

   

55,135

   

112,341

 

General and administrative

 

(1,037)

   

-

   

-

   

-

   

(1,037)

             

$

56,579

 

$

-

 

$

(410)

 

$

55,135

 

$

111,304

                                         
                                         
                                         

Three Months Ended March 31, 2016

 
             

Operating
income
(loss)

 

Preopening and
start-up
expenses

 

Property
transactions,
net

 

Depreciation
and
amortization

 

Adjusted
EBITDA

 

Aria

         

$

(28,327)

 

$

-

 

$

109

 

$

109,561

 

$

81,343

 

Vdara

           

2,263

   

-

   

(336)

   

6,936

   

8,863

 

Mandarin Oriental

 

(1,238)

   

-

   

-

   

3,099

   

1,861

 

 Resort operations

 

(27,302)

   

-

   

(227)

   

119,596

   

92,067

 

General and administrative

 

159

   

-

   

(1,211)

   

-

   

(1,052)

             

$

(27,143)

 

$

-

 

$

(1,438)

 

$

119,596

 

$

91,015

 

SOURCE MGM Resorts International

For further information: Investment Community: CATHERINE PARK, Executive Director of Investor Relations, (702) 693-8711, cpark@mgmresorts.com or News Media: GORDON ABSHER, Vice President of Corporate Communications, (702) 692-6767, gabsher@mgmresorts.com

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