2017: Q3
MGM Resorts International Reports Third Quarter Financial And Operating Results

LAS VEGAS, Nov. 8, 2017 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended September 30, 2017.

"We delivered excellent third quarter results across all key metrics, resulting in diluted earnings per share of $0.26 and double-digit growth in net revenues and Adjusted EBITDA — a strong affirmation of the strategies we have implemented to drive profitability and increase operational efficiency," said Jim Murren, Chairman & CEO of MGM Resorts. "We continue to stimulate increased demand by leveraging our unique portfolio of offerings, including sports and entertainment events and a strong convention business, while maximizing profits throughout the entire enterprise. Our strong business model and prominent position in key markets give us confidence in our long-term fundamentals and ability to continue driving shareholder value."

"We again wish to thank our employees and first responders – including the men and women who acted heroically –for their incredible acts of compassion and courage during the tragic and senseless events of October 1st, a date we will not forget. We are grateful to our loyal guests, partners and the many corporate and civic leaders who have stood beside us during the most challenging of days.  We remember all those we lost and continue to pray for those who are working toward recovery," said Mr. Murren.

Financial Highlights:

  • Diluted earnings per share for the third quarter of 2017 of $0.26, compared to $0.93 in the prior year quarter, which included a benefit of $0.60 related to a $430 million gain on the Borgata acquisition and a $0.20 charge related to the NV Energy exit. The third quarter of 2017 included a non-cash charge of $38 million ($0.07 per share) related to foreign tax credit valuation while the prior year quarter included a net non-cash benefit of $133 million ($0.23 per share) related to foreign tax credit valuation and remeasurement of Macau deferred tax liabilities;
  • Net revenues increase of 18% over the prior year quarter at the Company's domestic resorts to $2.2 billion and an increase of 4% on a same-store basis, excluding contributions from Borgata and MGM National Harbor;
  • REVPAR(1)  growth of 4.2% over the prior year quarter at the Company's Las Vegas Strip resorts;
  • Operating income of $546 million at the Company's domestic resorts, an 82% increase over the prior year quarter, which included $139 million related to the NV Energy exit expense; 
  • Net income attributable to MGM Resorts of $149 million, compared to $536 million in the prior year quarter, which included a $430 million gain on the Borgata acquisition;
  • Adjusted Property EBITDA(2) growth of 25% over the prior year quarter to $714 million at the Company's domestic resorts, and an increase of 12% on a same-store basis;
  • Same-store operating margin of 25.8% in the current quarter at the Company's domestic resorts, an increase of 987 basis points compared to the prior year quarter;
  • Same-store Adjusted Property EBITDA margin of 33.0% at the Company's domestic resorts, an increase of 241 basis points compared to the prior year quarter;
  • MGM China operating income of $35 million compared to $84 million in the prior year quarter, and Adjusted EBITDA of $118 million, a 21% decrease compared to the prior year quarter; and a 2% increase compared to the second quarter of 2017;
  • CityCenter operating income of $51 million and Adjusted EBITDA of $107 million, a 17% increase in Adjusted EBITDA compared to the prior year quarter; and
  • Over $500 million returned to shareholders through buybacks and dividends year to date.

Certain Items Affecting Third 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 September 30,


2017



2016


NV Energy exit expense


$



$

(0.18)


Preopening and start-up expenses



(0.03)




(0.03)


Property transactions, net



(0.01)





Gain on Borgata Transaction






0.60


Income from unconsolidated affiliates:









CityCenter NV Energy exit expense






(0.02)


Non-operating expense:









Loss on retirement of long-term debt



(0.04)




(0.02)


Domestic Resorts

Casino revenue for the third quarter of 2017 increased 32% compared to the prior year quarter, due primarily to the acquisition of the Borgata Hotel Casino and Spa ("Borgata") in August 2016 and the MGM National Harbor opening in December 2016. Casino revenues increased 6% on a same-store basis compared to the prior year quarter. Same-store table games revenue increased 11% due primarily to an 8% increase in table games drop and higher year-over-year table games hold. Same-store slots revenue increased 2%.

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

Three Months Ended September 30,


2017



2016




(Dollars in millions)


Table Games Drop


$

1,003



$

897


Table Games Win %



26.8

%



25.0

%

Slot Handle


$

3,211



$

3,169


Slot Hold %



8.7

%



8.7

%

Domestic resorts rooms revenue increased 7% compared to the prior year quarter. On a same-store basis, rooms revenue increased 3% compared to the prior year quarter. Las Vegas Strip REVPAR increased 4.2% compared to the prior year quarter.

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

Three Months Ended September 30,


2017



2016


Occupancy %



95

%



97

%

Average Daily Rate (ADR)


$

164



$

155


Revenue per Available Room (REVPAR)


$

156



$

150


"The successful execution of our operating strategies continues to provide company-wide margin expansion and allows us to optimize our cash flow," added Mr. Murren.

Operating income at the Company's domestic resorts was $546 million for the third quarter of 2017 compared to $301 million in the prior year quarter and benefited from increases in both casino and non-casino revenues. Operating income in the prior year quarter included $139 million of NV Energy exit expense associated with the Company's strategic decision to exit the fully bundled sales system of NV Energy and $8 million in real estate transfer taxes recorded in connection with the Borgata transaction.

Domestic resorts Adjusted Property EBITDA increased 25% to $714 million in the third quarter of 2017 and was positively impacted by a full quarter of operations at Borgata and $37 million of Adjusted Property EBITDA from MGM National Harbor. Same-store Adjusted Property EBITDA increased 12% compared to the prior year quarter.

Mr. Murren continued, "As a result of the October 1st incident, our business in Las Vegas will be impacted in the near term primarily due to a short-lived uptick in cancellations and a temporary suspension of marketing efforts. Since restarting such efforts, our booking pace has largely rebounded to normal levels. We are also making significant progress on the transformation of Monte Carlo to Park MGM, and as expected, will continue to experience disruption at the property. As a result, in the fourth quarter, we expect our Las Vegas Strip revenues to decrease by a low to mid-single digit percentage, with non-hotel elements partially offsetting a 5%-7% REVPAR decline. Accordingly, we anticipate our fourth quarter Las Vegas Strip Adjusted Property EBITDA margins to decrease by roughly 100 basis points."

Mr. Murren concluded, "We are encouraged by the current trajectory of our business, supported by the strength of our forward convention bookings, our entertainment and sports calendar, and the conclusion of our high returning capital investment projects next year. We remain confident in the stability of our business and the enduring power of the Las Vegas brand."

MGM China

Key third quarter results for MGM China include:

  • Net revenues of $471 million, a 6% decrease compared to the prior year quarter;
  • Net revenues increased 5% when compared to $449 million in the second quarter of 2017;
  • Main floor table games revenue decreased 11% compared to the prior year quarter due to a 3% decrease in volume and a decrease in hold percentage to 18.4% in the current year quarter from 20.1% in the prior year quarter;
  • VIP table games revenue decreased 3% compared to the prior year quarter due to a 6% decrease in turnover, partially offset by an increase in hold percentage to 3.3% in the current year quarter from 3.0% in the prior year quarter;
  • Operating income was $35 million compared to $84 million in the prior year quarter;
  • Adjusted EBITDA decreased 21% to $118 million compared to $150 million in the prior year quarter, including $8 million of license fee expense in the current year quarter and $9 million in the prior year quarter;
  • Adjusted EBITDA increased 2% when compared to $116 million in the second quarter of 2017, including $8 million of license fee expense in the second quarter of 2017; and
  • Operating margin was 7.4% in the current year quarter, and Adjusted EBITDA margin was 25.1% compared to 30.0% in the prior year quarter.

MGM China paid an interim dividend of $56 million in September 2017. The Company received $32 million representing its 56% share of the dividend.

Unconsolidated Affiliates

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

Three Months Ended September 30,


2017



2016




(In thousands)


CityCenter


$

34,584



$

12,382


Borgata (through July 31, 2016)






14,243


Other



3,117




5,952




$

37,701



$

32,577


The Company's share of CityCenter Holdings, LLC ("CityCenter") operating results for the third quarter of 2017, including certain basis difference adjustments, was $35 million. In the prior year quarter, CityCenter's operating results included $13 million related to our share of CityCenter's NV Energy exit expense.

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

  • Net revenues from resort operations were $322 million, a 5% increase compared to the prior year quarter, due primarily to an increase in casino revenues and rooms revenues;
  • Operating income from resort operations was $52 million compared to operating income of $8 million in the prior year quarter, which included $26 million of NV Energy exit expense;
  • Adjusted EBITDA from resort operations was $108 million, a 17% increase compared to the prior year quarter;
  • Aria's table games volume increased 5% and table games hold percentage was 23.5% compared to 25.4% in the prior year quarter;
  • Aria's slots revenue increased 3% compared to the prior year quarter;
  • REVPAR at Aria increased 8% to $239, compared to the prior year quarter; and
  • REVPAR at Vdara increased 4% to $195, compared to the prior year quarter, and Adjusted EBITDA increased 9% compared to the prior year quarter to $11 million.

On August 1, 2016 the Company completed the 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 MGM Growth Properties LLC ("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 third quarter of 2017, the Company made rent payments to MGP in the amount of $165 million and received distributions of $73 million from MGM Growth Properties Operating Partnership LP (the "Operating Partnership"). On September 15, 2017, MGP's Board of Directors approved a quarterly dividend of $0.3950 per Class A share totaling $28 million, which was paid on October 13, 2017 to holders of record on September 29, 2017. The Company concurrently received a $73 million distribution attributable to its ownership of Operating Partnership units.

On September 11, 2017, MGP closed its public offering of 13,225,000 Class A shares, including 1,725,000 shares sold pursuant to the underwriters exercise in full of their over-allotment option, at a public offering price of $30.60 per share for net proceeds of $387.5 million, and on September 21, 2017, the Operating Partnership completed the issuance of $350 million in aggregate principal amount of 4.50% senior notes due 2028. The net proceeds of the offerings were used to pay MGM Resorts a portion of the $1,187.5 billion purchase price for the long-term leasehold interest and real property improvements related to the MGM National Harbor casino resort, including the refinancing of $425 million of indebtedness assumed by a subsidiary of MGP in connection with the transaction. The MGM National Harbor transaction closed on October 5, 2017. Following the MGM National Harbor transaction, MGM Resorts and certain of its subsidiaries collectively own 73.4% of the Operating Partnership units.

MGM Resorts Dividend and Share Repurchases

On November 7, 2017, the Company's Board of Directors approved a quarterly dividend of $0.11 per share totaling $62 million, which will be paid on December 15, 2017 to holders of record on December 11, 2017.

On September 5, 2017, MGM Resorts announced the adoption of a $1.0 billion stock repurchase program and has repurchased 10 million shares of its common stock at $32.75 per share for a total aggregate amount of $327.5 million under such program to date. All shares repurchased under the Company's program have been retired.

Financial Position

The Company's cash balance at September 30, 2017 was $2.0 billion, which included $336 million at MGM China and $1.1billion at MGP. At September 30, 2017, the Company had $13.6 billion of principal amount of indebtedness outstanding, including $541 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $2.7 billion MGP Operating Partnership senior credit facility, $2.3 billion outstanding under the $3.0 billion MGM China credit facility, and $478 million outstanding under the $525 million MGM National Harbor credit facility, which was repaid on October 5, 2017 in connection with the closing of the  MGM National Harbor transaction.

"We continue to take steps to strengthen our operations and enhance our financial position," said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. "To date this year, we have reduced our consolidated net leverage and have returned over $500 million to our shareholders in the form of dividends and share repurchases. Given our strong balance sheet and cash flow potential, we are confident in our ability to continue maximizing shareholder value in the future."

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 http://mgmresorts.investorroom.com/webcasts or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 6575075. A replay of the call will be available through Wednesday, November 15, 2017. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10112169. 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, NV Energy exit expense, gain on Borgata transaction, 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 an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 27 unique hotel offerings including some of the most recognizable resort brands in the industry. The company is expanding throughout the U.S. and around the world, developing MGM Springfield in Massachusetts and MGM COTAI in Macau, and debuting the first international Bellagio branded hotel in Shanghai. The 77,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information visit us 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 maximize shareholder value 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


Nine Months Ended






September 30,


September 30,


September 30,


September 30,






2017


2016


2017


2016

Revenues:















Casino



$

1,543,693


$

1,307,827


$

4,454,145


$

3,569,587


Rooms




564,476



530,331



1,669,213



1,518,721


Food and beverage


481,656



448,666



1,392,671



1,238,537


Entertainment



149,536



140,151



418,244



380,330


Retail




59,141



52,724



163,947



150,629


Other




162,318



148,470



464,260



400,115


Reimbursed costs


102,380



99,316



301,888



301,160







3,063,200



2,727,485



8,864,368



7,559,079


Less: Promotional allowances


(236,460)



(212,370)



(687,712)



(564,776)







2,826,740



2,515,115



8,176,656



6,994,303

Expenses:















Casino




822,103



696,329



2,389,957



1,957,203


Rooms




157,293



148,317



464,864



435,311


Food and beverage


269,170



252,108



780,510



712,856


Entertainment



118,234



108,464



326,791



299,579


Retail




28,129



27,105



78,515



73,191


Other




95,971



93,880



281,859



260,901


Reimbursed costs


102,380



99,316



301,888



301,160


General and administrative


402,134



371,950



1,145,432



1,001,900


Corporate expense


88,506



87,782



241,087



240,833


NV Energy exit expense


-



139,335



(40,629)



139,335


Preopening and start-up expenses 


29,349



31,660



65,508



78,444


Property transactions, net


7,711



(1,268)



22,650



4,717


Gain on Borgata transaction


-



(429,778)



-



(429,778)


Depreciation and amortization


249,600



209,737



744,123



616,475







2,370,580



1,834,937



6,802,555



5,692,127

















Income from unconsolidated affiliates


37,701



32,577



117,987



495,588

















Operating income



493,861



712,755



1,492,088



1,797,764

















Non-operating income (expense):













Interest expense, net of amounts capitalized


(163,287)



(168,048)



(511,404)



(533,069)


Non-operating items from unconsolidated affiliates


(8,825)



(11,132)



(26,302)



(45,229)


Other, net



(30,138)



(17,310)



(31,706)



(67,715)







(202,250)



(196,490)



(569,412)



(646,013)

















Income before income taxes


291,611



516,265



922,676



1,151,751


Benefit (provision) for income taxes


(115,115)



44,995



(251,551)



15,205

















Net income




176,496



561,260



671,125



1,166,956


Less: Net income attributable to noncontrolling interests


(27,381)



(25,641)



(104,552)



(90,185)

Net income attributable to MGM Resorts International

$

149,115


$

535,619


$

566,573


$

1,076,771

















Per share of common stock:













Basic:















Net income attributable to MGM Resorts International

$

0.26


$

0.94


$

0.99


$

1.90


















Weighted average shares outstanding


573,527



568,125



574,262



566,220


















Diluted:















Net income attributable to MGM Resorts International

$

0.26


$

0.93


$

0.97


$

1.88


















Weighted average shares outstanding


580,676



573,812



580,941



571,350

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)





























September 30,


December 31,







2017


2016












      ASSETS

Current assets:











Cash and cash equivalents


$

1,986,688


$

1,446,581


Accounts receivable, net




515,423



542,924


Inventories





101,242



97,733


Prepaid expenses and other



191,183



142,349



Total current assets



2,794,536



2,229,587












Property and equipment, net




19,134,748



18,425,023












Other assets:











Investments in and advances to unconsolidated affiliates


1,007,584



1,220,443


Goodwill 






1,807,009



1,817,119


Other intangible assets, net



3,924,566



4,087,706


Other long-term assets, net



433,447



393,423



Total other assets



7,172,606



7,518,691







$

29,101,890


$

28,173,301























LIABILITIES AND STOCKHOLDERS' EQUITY












Current liabilities:











Accounts payable




$

242,604


$

250,477


Construction payable




238,086



270,361


Income tax payable




6,013



10,654


Current portion of long-term debt



466,375



8,375


Accrued interest on long-term debt



121,650



159,028


Other accrued liabilities




1,661,032



1,594,526



Total current liabilities



2,735,760



2,293,421












Deferred income taxes, net 




2,668,864



2,551,228

Long-term debt, net





13,026,927



12,979,220

Other long-term obligations




286,262



325,981

Redeemable noncontrolling interest



59,337



54,139

Stockholders' equity:










Common stock, $.01 par value: authorized 1,000,000,000 shares,







   issued and outstanding 565,493,891 and 574,123,706 shares 


5,655



5,741


Capital in excess of par value



5,390,071



5,653,575


Retained earnings





922,657



545,811


Accumulated other comprehensive income (loss)


(9,840)



15,053



Total MGM Resorts International stockholders' equity


6,308,543



6,220,180


Noncontrolling interests




4,016,197



3,749,132



Total stockholders' equity


10,324,740



9,969,312







$

29,101,890


$

28,173,301

 

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,






2017


2016


2017


2016


Bellagio




$

375,464


$

342,952


$

1,029,440


$

1,005,503


MGM Grand Las Vegas



305,214



290,783



871,029



859,469


Mandalay Bay



267,782



266,943



766,110



735,104


The Mirage 




159,777



151,622



479,728



449,258


Luxor





109,927



104,152



313,127



292,168


New York-New York 



91,350



85,291



270,018



249,718


Excalibur





87,138



81,205



248,911



233,946


Monte Carlo




57,434



72,569



195,285



213,497


Circus Circus Las Vegas



74,818



69,514



195,641



187,706


MGM Grand Detroit



140,041



142,704



426,948



424,031


Beau Rivage




98,055



97,971



281,625



286,796


Gold Strike Tunica



44,481



41,942



129,492



124,166


Borgata (1)





244,078



151,006



654,586



151,006


MGM National Harbor



179,606



-



530,553



-


  Domestic resorts



2,235,165



1,898,654



6,392,493



5,212,368


MGM China





470,775



499,822



1,421,892



1,420,802


Management and other operations



120,800



116,639



362,271



361,133






$

2,826,740


$

2,515,115


$

8,176,656


$

6,994,303

















































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,






2017


2016


2017


2016


Bellagio




$

157,031


$

126,790


$

397,091


$

360,979


MGM Grand Las Vegas



85,847



82,760



253,571



261,143


Mandalay Bay



83,967



79,296



230,356



200,621


The Mirage 




46,247



38,066



146,716



112,244


Luxor





36,930



29,685



102,645



81,130


New York-New York 



35,752



30,274



102,888



91,655


Excalibur





33,076



27,076



90,527



75,907


Monte Carlo




9,420



18,764



48,658



61,884


Circus Circus Las Vegas



25,543



19,770



57,740



46,235


MGM Grand Detroit



42,312



44,024



132,329



127,856


Beau Rivage




27,400



25,292



68,992



76,127


Gold Strike Tunica



13,762



12,282



41,749



38,312


Borgata (1)





78,853



36,099



239,195



36,099


MGM National Harbor



37,449



-



106,569



-


  Domestic resorts



713,589



570,178



2,019,026



1,570,192


MGM China





118,237



149,868



377,539



383,187


Unconsolidated resorts (2)



37,701



32,577



117,987



495,588


Management and other operations



4,365



1,301



24,378



9,788






$

873,892


$

753,924


$

2,538,930


$

2,458,755


































(1) Represents net revenues and Adjusted Property EBITDA of Borgata for the period from August 1, 2016 (the first day of the Company's full ownership) through September 30, 2016


(2) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences. Includes the Company's share of Borgata results for the one and seven months ended July 31, 2016

 

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, 2017































Operating income (loss)


NV Energy exit expense


Preopening

and start-up

expenses


Property
transactions,
net


Depreciation
and
amortization


Adjusted EBITDA



Bellagio



$

131,413


$

-


$

-


$

722


$

24,896


$

157,031



MGM Grand Las Vegas




68,117



-



(1)



393



17,338



85,847



Mandalay Bay




62,325



-



-



271



21,371



83,967



The Mirage 




36,018



-



-



96



10,133



46,247



Luxor




27,249



-



-



308



9,373



36,930



New York-New York 




29,043



-



(154)



122



6,741



35,752



Excalibur




28,395



-



-



161



4,520



33,076



Monte Carlo




(5,792)



-



1,855



4,013



9,344



9,420



Circus Circus Las Vegas




21,276



-



2



30



4,235



25,543



MGM Grand Detroit




36,704



-



-



-



5,608



42,312



Beau Rivage




20,719



-



-



355



6,326



27,400



Gold Strike Tunica




11,494



-



-



-



2,268



13,762



Borgata




61,289



-



153



91



17,320



78,853



MGM National Harbor




17,811



-



24



-



19,614



37,449



  Domestic resorts




546,061



-



1,879



6,562



159,087



713,589



MGM China




34,855



-



22,030



876



60,476



118,237



Unconsolidated resorts (1)




37,701



-



-



-



-



37,701



Management and other operations


1,952



-



-



-



2,413



4,365










620,569



-



23,909



7,438



221,976



873,892



Stock compensation




(12,099)



-



-



-



-



(12,099)



Corporate 




(114,609)



-



5,440



273



27,624



(81,272)









$

493,861


$

-


$

29,349


$

7,711


$

249,600


$

780,521













































































Three Months Ended September 30, 2016




























Operating income (loss)


NV Energy exit expense


Preopening and start-up expenses


Property
transactions,
net and gain
on Borgata transaction


Depreciation
and
amortization


Adjusted EBITDA



Bellagio



$

81,805


$

23,815


$

-


$

(150)


$

21,320


$

126,790



MGM Grand Las Vegas




39,251



25,365



-



623



17,521



82,760



Mandalay Bay




26,641



29,123



223



797



22,512



79,296



The Mirage 




14,438



13,813



-



16



9,799



38,066



Luxor




8,827



11,594



181



151



8,932



29,685



New York-New York 




17,983



7,439



105



79



4,668



30,274



Excalibur




13,366



9,083



-



618



4,009



27,076



Monte Carlo




3,937



8,409



363



54



6,001



18,764



Circus Circus Las Vegas




4,923



10,694



-



104



4,049



19,770



MGM Grand Detroit




38,183



-



-



-



5,841



44,024



Beau Rivage




18,822



-



-



3



6,467



25,292



Gold Strike Tunica




9,788



-



-



10



2,484



12,282



Borgata (2)




22,830



-



51



79



13,139



36,099



  Domestic resorts




300,794



139,335



923



2,384



126,742



570,178



MGM China




84,304



-



8,298



(1,148)



58,414



149,868



Unconsolidated resorts (1) (3)



32,496



-



81



-



-



32,577



Management and other operations


(324)



-



-



-



1,625



1,301










417,270



139,335



9,302



1,236



186,781



753,924



Stock compensation




(11,123)



-



-



-



-



(11,123)



Corporate 







306,608



-



22,358



(432,282)



22,956



(80,360)









$

712,755


$

139,335


$

31,660


$

(431,046)


$

209,737


$

662,441































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


(2) Represents operating results of Borgata for the period from August 1, 2016 (the first day of the Company's full ownership) through September 30, 2016


(3) Includes the Company's share of Borgata results for the one month ended July 31, 2016

 

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, 2017


































Operating income (loss)


NV Energy exit expense


Preopening
and start-up
expenses


Property
transactions,
net


Depreciation and amortization


Adjusted EBITDA



Bellagio


$

334,175


$

(6,970)


$

-


$

845


$

69,041


$

397,091



MGM Grand Las Vegas



206,395



(7,424)



6



1,237



53,357



253,571



Mandalay Bay



168,070



(8,524)



-



261



70,549



230,356



The Mirage 



121,273



(4,043)



-



213



29,273



146,716



Luxor



76,151



(3,394)



-



1,472



28,416



102,645



New York-New York 



82,488



(2,025)



(162)



305



22,282



102,888



Excalibur



79,457



(2,658)



-



419



13,309



90,527



Monte Carlo



943



(2,461)



2,904



14,003



33,269



48,658



Circus Circus Las Vegas



47,258



(3,130)



452



765



12,395



57,740



MGM Grand Detroit



115,248



-



-



-



17,081



132,329



Beau Rivage



50,317



-



-



360



18,315



68,992



Gold Strike Tunica



34,890



-



-



(22)



6,881



41,749



Borgata



180,266



-



1,430



1,311



56,188



239,195



MGM National Harbor



46,410



-



251



-



59,908



106,569



  Domestic resorts



1,543,341



(40,629)



4,881



21,169



490,264



2,019,026



MGM China



151,084



-



45,188



1,208



180,059



377,539



Unconsolidated resorts (1)



117,987



-



-



-



-



117,987



Management and other operations


18,373



-



-



-



6,005



24,378










1,830,785



(40,629)



50,069



22,377



676,328



2,538,930



Stock compensation




(37,508)



-



-



-



-



(37,508)



Corporate 







(301,189)



-



15,439



273



67,795



(217,682)









$

1,492,088


$

(40,629)


$

65,508


$

22,650


$

744,123


$

2,283,740













































































Nine Months Ended September 30, 2016


































Operating income (loss)


NV Energy exit expense


Preopening and
start-up
expenses


Property
transactions,
net and gain
on Borgata transaction


Depreciation and amortization


Adjusted EBITDA



Bellagio


$

271,058


$

23,815


$

-


$

(89)


$

66,195


$

360,979



MGM Grand Las Vegas



180,806



25,365



-



1,123



53,849



261,143



Mandalay Bay



102,125



29,123



252



1,955



67,166



200,621



The Mirage 



68,564



13,813



-



(397)



30,264



112,244



Luxor



39,873



11,594



1,625



524



27,514



81,130



New York-New York 



68,476



7,439



477



179



15,084



91,655



Excalibur



51,076



9,083



-



3,587



12,161



75,907



Monte Carlo



30,208



8,409



508



206



22,553



61,884



Circus Circus Las Vegas



23,211



10,694



-



234



12,096



46,235



MGM Grand Detroit



110,029



-



-



-



17,827



127,856



Beau Rivage



56,472



-



-



(59)



19,714



76,127



Gold Strike Tunica



30,892



-



-



103



7,317



38,312



Borgata (2)



22,830



-



51



79



13,139



36,099



  Domestic resorts



1,055,620



139,335



2,913



7,445



364,879



1,570,192



MGM China



183,209



-



20,746



123



179,109



383,187



Unconsolidated resorts (1) (3)



492,420



-



3,168



-



-



495,588



Management and other operations


3,261



-



1,150



-



5,377



9,788










1,734,510



139,335



27,977



7,568



549,365



2,458,755



Stock compensation



(31,432)



-



-



-



-



(31,432)



Corporate 



94,686



-



50,467



(432,629)



67,110



(220,366)









$

1,797,764


$

139,335


$

78,444


$

(425,061)


$

616,475


$

2,206,957































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


(2) Represents operating results of Borgata for the period from August 1, 2016 (the first day of the Company's full ownership) through September 30, 2016


(3) Includes the Company's share of Borgata results for the seven months ended July 31, 2016

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)























Three Months Ended


Nine Months Ended







September 30,


September 30,


September 30,


September 30,







2017


2016


2017


2016

Net income attributable to MGM Resorts International


$

149,115


$

535,619


$

566,573


$

1,076,771

  Plus: Net income attributable to noncontrolling interests


27,381



25,641



104,552



90,185

Net income





176,496



561,260



671,125



1,166,956

  Provision (benefit) for income taxes


115,115



(44,995)



251,551



(15,205)

Income before income taxes


291,611



516,265



922,676



1,151,751

















Non-operating (income) expense:












  Interest expense, net of amounts capitalized


163,287



168,048



511,404



533,069

  Other, net





38,963



28,442



58,008



112,944







202,250



196,490



569,412



646,013

















Operating income





493,861



712,755



1,492,088



1,797,764

  NV Energy exit expense




-



139,335



(40,629)



139,335

  Preopening and start-up expenses


29,349



31,660



65,508



78,444

  Property transactions, net



7,711



(1,268)



22,650



4,717

  Gain on Borgata transaction


-



(429,778)



-



(429,778)

  Depreciation and amortization


249,600



209,737



744,123



616,475

Adjusted EBITDA





$

780,521


$

662,441


$

2,283,740


$

2,206,957

































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


Nine Months Ended







September 30,


September 30,


September 30,


September 30,







2017


2016


2017


2016

Domestic resorts Adjusted Property EBITDA


$

713,589


$

570,178


$

2,019,026


$

1,570,192

  Adjusted Property EBITDA related to Borgata


(78,853)



(36,099)



(239,195)



(36,099)

  Adjusted Property EBITDA related to MGM National Harbor 


(37,449)



-



(106,569)



-

Domestic resorts same-store Adjusted Property EBITDA


$

597,287


$

534,079


$

1,673,262


$

1,534,093

































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,







2017


2016


2017


2016


Bellagio
















   Occupancy %




96.1%



96.7%



94.5%



94.4%


   Average daily rate (ADR)



$276



$267



$284



$274


   Revenue per available room (REVPAR)



$266



$258



$268



$259


















MGM Grand Las Vegas













   Occupancy %




95.6%



97.6%



93.6%



94.4%


   ADR






$187



$176



$192



$182


   REVPAR






$179



$171



$180



$172


















Mandalay Bay 














   Occupancy %




94.2%



95.6%



93.1%



93.4%


   ADR






$213



$207



$221



$213


   REVPAR






$201



$198



$206



$199


















The Mirage
















   Occupancy %




97.7%



97.9%



95.4%



95.9%


   ADR






$169



$161



$178



$171


   REVPAR






$165



$157



$170



$164


















Luxor 
















   Occupancy %




96.3%



98.5%



95.2%



96.8%


   ADR






$120



$112



$120



$111


   REVPAR






$116



$110



$114



$107


















New York-New York













   Occupancy %




97.3%



99.4%



96.6%



98.3%


   ADR






$150



$137



$149



$138


   REVPAR






$146



$136



$144



$136


















Excalibur 
















   Occupancy %




96.2%



96.6%



94.1%



95.1%


   ADR






$105



$98



$104



$96


   REVPAR






$101



$95



$98



$91


















Monte Carlo 















   Occupancy %




93.1%



98.4%



94.4%



97.7%


   ADR






$128



$125



$127



$125


   REVPAR






$119



$123



$120



$122


















Circus Circus Las Vegas













   Occupancy %




93.3%



91.4%



86.5%



85.0%


   ADR






$89



$81



$86



$79


   REVPAR






$83



$74



$75



$67

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)































Three Months Ended


Nine Months Ended













September 30,


September 30,


September 30,


September 30,













2017


2016


2017


2016






























Aria


$

272,857


$

261,052


$

814,814


$

756,577







Vdara



32,264



30,918



95,475



90,552







Mandarin Oriental



17,150



16,002



51,738



49,221







 Resort operations



322,271



307,972



962,027



896,350







Other



-



495



-



2,644













$

322,271


$

308,467


$

962,027


$

898,994











































































CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)































Three Months Ended


Nine Months Ended













September 30,


September 30,


September 30,


September 30,













2017


2016


2017


2016






Net income (loss)


$

35,138


$

(7,876)


$

117,420


$

329,440






 Less: Income from discontinued operations



-



521



-



(399,514)






Income (loss) from continuing operations



35,138



(7,355)



117,420



(70,074)





























Non-operating (income) expense:



















  Interest expense, net of amounts capitalized



16,381



14,518



44,207



46,522






  Other, net



(410)



64



3,295



3,217














15,971



14,582



47,502



49,739





























Operating income (loss)



51,109



7,227



164,922



(20,335)






  NV Energy exit expense 



-



26,089



(8,250)



26,089






  Property transactions, net



937



73



1,163



(1,939)






  Depreciation and amortization



55,419



58,790



165,436



256,486






Adjusted EBITDA






$

107,465


$

92,179


$

323,271


$

260,301





























CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)
























Three Months Ended September 30, 2017































Operating income (loss)


NV Energy exit expense


Property transactions, net


Depreciation and
amortization


Adjusted EBITDA




Aria






$

49,531


$

-


$

780


$

45,428


$

95,739




Vdara







3,750



-



157



6,859



10,766




Mandarin Oriental



(1,201)



-



-



3,132



1,931




 Resort operations



52,080



-



937



55,419



108,436




Other







(971)



-



-



-



(971)










$

51,109


$

-


$

937


$

55,419


$

107,465








































































Three Months Ended September 30, 2016































Operating income (loss)


NV Energy exit expense


Property transactions, net


Depreciation and
amortization


Adjusted EBITDA




Aria






$

9,604


$

23,320


$

(3)


$

48,698


$

81,619




Vdara







1,189



1,676



76



6,957



9,898




Mandarin Oriental



(3,083)



1,093



-



3,135



1,145




 Resort operations



7,710



26,089



73



58,790



92,662




Other







(483)



-



-



-



(483)










$

7,227


$

26,089


$

73


$

58,790


$

92,179



 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)























Nine Months Ended September 30, 2017






























Operating income (loss)


NV Energy exit expense


Property transactions, net


Depreciation and
amortization


Adjusted EBITDA



Aria






$

160,548


$

(8,250)


$

1,005


$

135,468


$

288,771



Vdara







10,862



-



158



20,632



31,652



Mandarin Oriental




(3,306)



-



-



9,336



6,030



 Resort operations




168,104



(8,250)



1,163



165,436



326,453



Other







(3,182)



-



-



-



(3,182)









$

164,922


$

(8,250)


$

1,163


$

165,436


$

323,271




































































Nine Months Ended September 30, 2016






























Operating income (loss)


NV Energy exit expense


Property transactions, net


Depreciation and
amortization


Adjusted EBITDA



Aria






$

(17,955)


$

23,320


$

(475)


$

226,287


$

231,177



Vdara







4,649



1,676



(253)



20,865



26,937



Mandarin Oriental




(6,067)



1,093



-



9,334



4,360



 Resort operations




(19,373)



26,089



(728)



256,486



262,474



Other







(962)



-



(1,211)



-



(2,173)









$

(20,335)


$

26,089


$

(1,939)


$

256,486


$

260,301




































































CITYCENTER HOLDINGS, LLC


SUPPLEMENTAL DATA - HOTEL STATISTICS


(Unaudited)































Three Months Ended


Nine Months Ended












September 30,


September 30,


September 30,


September 30,












2017


2016


2017


2016






Aria






















   Occupancy %





93.1%



95.5%



92.9%



93.2%






   ADR







$257



$231



$260



$243






   REVPAR







$239



$221



$242



$226




























Vdara






















   Occupancy %





91.9%



95.1%



90.9%



92.6%






   ADR







$213



$197



$215



$202






   REVPAR







$195



$187



$195



$187





 

SOURCE MGM Resorts International

For further information: Investment Community, CATHERINE PARK, Executive Director of Investor Relations, (702) 693-8711 or cpark@mgmresorts.com; or News Media, DEBRA DESHONG, Senior Vice President of Global Corporate Communications and Industry Affairs, (202) 855-8046 or ddeshong@mgmresorts.com

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