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MGM Resorts International Reports Third Quarter Financial And Operating Results

LAS VEGAS, Oct. 30, 2019 /PRNewswire/ -- MGM Resorts International (MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights:

Consolidated Results

  • Consolidated net revenues increased 9% compared to the prior year quarter to $3.3 billion;
  • Consolidated operating income decreased 42% compared to the prior year quarter to $238 million. Excluding a non-cash impairment charge of $219 million in the current quarter related to Circus Circus Las Vegas and adjacent land, included within property transactions, net, consolidated operating income increased 11% compared to the prior year quarter;
  • Net loss attributable to MGM Resorts of $37 million, including the $219 million non-cash impairment charge discussed above, compared to net income attributable to MGM Resorts of $143 million in the prior year quarter;
  • Diluted loss per share of  $0.08 in the current quarter compared to diluted earnings per share of $0.26 in the prior year quarter;
  • Adjusted diluted earnings per share ("Adjusted EPS")(1) of $0.31 in the current quarter compared to Adjusted EPS of $0.23 in the prior year quarter; and
  • Consolidated Adjusted EBITDA(2) increased 14% to $814 million in the current quarter compared to $716 million in the prior year quarter.

"We performed well in the third quarter, which came in line with our expectations. Our consolidated net revenues increased by 9 percent and consolidated Adjusted EBITDA increased by 14 percent," said Jim Murren, Chairman and CEO of MGM Resorts. "Our Las Vegas Strip Resorts saw an increase in revenues by 4 percent with non-gaming revenues up 6 percent thanks to a robust performance in rooms and food and beverage. Gaming revenues at our Las Vegas Strip Resorts declined by 3 percent due to ongoing weakness in Far East baccarat volumes, offset by increases in slots and domestic table games play. Adjusted Property EBITDA at our Regional Properties increased by 27 percent with notable strength at MGM National Harbor and Borgata. We were very pleased with the ramp up of our Cotai property, which generated $80 million in Adjusted Property EBITDA during the quarter, despite some challenges in the market place."

Mr. Murren continued, "We recently announced two significant transactions, which form part of our broader asset-light strategy and the shift in our business model away from a capital-intensive real estate business towards a developer, manager and operator of leading gaming, hospitality and entertainment properties. We entered into an agreement to sell Circus Circus Las Vegas for consideration of $825 million and entered into an agreement with Blackstone Real Estate Income Trust that values the real estate of Bellagio at $4.25 billion, representing a purchase price multiple of 17.3x rent. We expect that the agreements to sell Circus Circus Las Vegas and to monetize the Bellagio real estate assets will provide us with net after tax cash proceeds, including expected debt breakage costs, of $4.3 billion, a majority of which will be used to fortify our balance sheet and then return capital to shareholders. Following these transactions, we will still retain several highly valuable real estate assets including MGM Grand Las Vegas, MGM Springfield, our 50 percent stake in CityCenter and our 68 percent economic ownership in MGM Growth Properties LLC. I am excited about the prospects for our business as we enter 2020.  We expect the combination of a healthy Las Vegas market and successful implementation of MGM 2020 to drive EBITDA and free cash flow growth.  Simultaneously our asset light transition will generate significant proceeds from real estate monetization that can be used to strengthen our balance sheet, meaningfully reduce our shares outstanding, and invest in select growth initiatives.  Our increased profits spread across fewer shares outstanding will result in enhanced free cash flow per share and generate meaningful value for our shareholders."

Las Vegas Strip Resorts

  • Net revenues increased 4% compared to the prior year quarter to $1.5 billion;
  • Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) increased 4% compared to the prior year quarter to $1.5 billion;
  • Adjusted Property EBITDA of $441 million, a 5% increase compared to $420 million in the prior year quarter;
  • Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA(2) of $438 million a 6% increase compared to the prior year quarter; and
  • Adjusted Property EBITDA margin of  29.3%, a 41 basis point increase compared to the prior year quarter.

Regional Operations

  • Net revenues increased $158 million or 20% compared to the prior year quarter to $935 million, including $52 million in net revenues from Empire City Casino, which was acquired on January 29, 2019, $64 million in net revenues from MGM Northfield Park's operations, which was acquired from MGP on April 1, 2019, and a full quarter of operations at MGM Springfield, which opened on August 24, 2018;
  • Adjusted Property EBITDA of $264 million, a 27% increase compared the prior year quarter; and
  • Adjusted Property EBITDA margin of 28.2% in the current quarter, a 152 basis point increase compared to the prior year quarter.

MGM China

  • Net revenues increased 22% compared to the prior year quarter to $738 million;
  • VIP Table Games Hold Adjusted MGM China Net Revenues(3) of $699 million, a 19% increase compared to the prior year quarter;
  • Adjusted Property EBITDA of $182 million, a 40% increase compared to the prior year quarter;
  • VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA(2) of $168 million, a 36% increase compared to the prior year quarter; and
  • Adjusted Property EBITDA margin of 24.7% , a  321 basis point increase compared to the prior year quarter.

"We remain focused on achieving our 2020 targets of $3.6 billion to $3.9 billion in consolidated Adjusted EBITDA and significant growth in free cash flow per share," said Corey Sanders, Chief Financial Officer and Treasurer of MGM Resorts. "The key drivers remain the benefits of our MGM 2020 plan, which is currently tracking ahead of expectations; healthy market conditions in Las Vegas and regional markets; and the ongoing ramp up of newly opened properties, especially MGM Cotai. We are also targeting consolidated net financial leverage of 3-4x and approximately 1x net domestic financial leverage (excluding MGP) by the end of 2020." 

Adjusted Diluted Earnings Per Share

The following table reconciles diluted earnings per share ("EPS") to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):

Three Months Ended September 30,


2019





2018


Diluted earnings (loss) per share


$

(0.08)





$

0.26


Preopening and start-up expenses








0.08


Property transactions, net



0.48






(0.08)


Non-operating expense:











Remeasurement loss on MGM China senior notes



0.01







Items from unconsolidated affiliates:











CityCenter property transactions, net



(0.01)







Gain on the sale of Mandarin Oriental Las Vegas








(0.02)


Change in fair value of CityCenter swaps



0.01







Income tax impact on net income adjustments (1)



(0.10)






(0.01)


Adjusted diluted earnings per share


$

0.31





$

0.23


(1)

The income tax impact includes current and deferred income tax expense based upon the nature of the adjustment and the jurisdiction in which it occurs.

Las Vegas Strip Resorts

Casino revenue for the third quarter of 2019 decreased 3% compared to the prior year quarter at the Company's Las Vegas Strip Resorts, due primarily to an 11% decrease in table games win driven by baccarat, partially offset by a 6% increase in slots win.

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

Three Months Ended September 30,


2019



2018


%
change



(Dollars in millions)



Table Games Drop


$842



$897


(6)

%

Table Games Win %


24.2

%


25.4

%



Slots Handle


$3,280



$3,143


4

%

Slots Hold %


9.4

%


9.3

%



Rooms revenue increased 6% compared to the prior year quarter at the Company's Las Vegas Strip Resorts due to a 3.6%  increase in Las Vegas Strip Resorts REVPAR(4) compared to the prior year quarter, as well as a 2% increase in available rooms as a result of the completion of the rebranding and repositioning of Park MGM. Rooms revenue at Park MGM increased 49% 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,


2019


2018

%
change

Occupancy %


92%


93%


Average Daily Rate (ADR)


$164


$157

4.4%

Revenue per Available Room (REVPAR)


$152


$146

3.6%

Food and beverage revenue increased 9% at the Company's Las Vegas Strip Resorts compared to the prior year quarter due primarily to the opening of new outlets at Park MGM and NoMad Las Vegas and an increase in catering and banquets revenue which benefited from the completion of the expansion of MGM Grand's Conference Center in 2019.

Regional Operations

Casino revenue increased 26% compared to the prior year quarter at the Company's Regional Operations, due primarily to the acquisition of Empire City Casino, the acquisition of MGM Northfield Park's operations from MGP and a full quarter of operations at MGM Springfield.

The following table shows key gaming statistics for the Company's Regional Operations:

Three Months Ended September 30,


2019



2018


%
change



(Dollars in millions)


Table Games Drop


$1,122



$1,054


6%

Table Games Win %


19.6

%


19.4

%


Slots Handle


$6,666



$5,755


16%

Slots Hold %


9.4

%


9.0

%


MGM China

Key third quarter results for MGM China Holdings Limited ("MGM China") include:

  • Net revenues of $738 million, a 22% increase compared to the prior year quarter. The current quarter included $364 million of net revenues at MGM Cotai;
  • Main floor table games win increased 47% compared to the prior year quarter due to the addition of 25 new-to-market tables at MGM Cotai in 2019 and a 559 basis point increase in win percentage;
  • VIP table games win increased 5% compared to the prior year quarter due to the opening of VIP gaming areas at the end of the third quarter of 2018 at MGM Cotai and an increase in the VIP table games win percentage;
  • Adjusted Property EBITDA increased 40% to $182 million compared to $130 million in the prior year quarter. The current quarter included $13 million of license fee expense compared to $11 million in the prior year quarter; and
  • Adjusted Property EBITDA margin was 24.7% in the current quarter compared to 21.5% in the prior year quarter, increasing primarily as a result of the continued ramp up of operations at MGM Cotai.

The following table shows key gaming statistics for MGM China:

Three Months Ended September 30,


2019


2018

%
change



(Dollars in millions)


VIP Table Games Turnover


$8,646


$9,419

(8)%

VIP Table Games Win %


3.7%


3.2%


Main Floor Table Games Drop


$2,117


$1,882

13%

Main Floor Table Games Win %


23.6%


18.1%


MGM China paid the previously announced interim dividend of $46 million in August 2019, of which MGM Resorts received $25 million, representing its 56% share of the dividend.

Corporate Expense

Corporate expense, including normal share-based compensation for corporate employees, was $109 million in the third quarter of 2019, an increase of $10 million compared to the prior year quarter. The current quarter included $7 million in costs incurred to implement the MGM 2020 Plan, $6 million related to the work of the Real Estate Committee of the Company's Board of Directors and $3 million in finance modernization initiative costs.

Unconsolidated Affiliates

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

Three Months Ended September 30,


2019



2018




(In thousands)


CityCenter


$

39,317



$

33,232


Other



(3,103)




2,263




$

36,214



$

35,495


Key third quarter results for CityCenter Holdings, LLC ("CityCenter") include the following (see schedule accompanying this release for further detail on CityCenter's third quarter results):

  • Net revenues were $320 million, a 9% increase compared to the prior year quarter, due to a 24% increase in casino revenues and an increase in rooms revenues;
  • Casino revenues at Aria increased 24% compared to the prior year quarter, due primarily to a 13% increase in table games win resulting from a 405 basis point increase in table games hold percentage and a 13% increase in slots win;
  • REVPAR at Aria increased 4% compared to the prior year quarter to $237;
  • REVPAR at Vdara increased 4% compared to the prior year quarter to $192; and
  • Adjusted EBITDA from resort operations was $110 million, a 30% increase compared to the prior year quarter.

MGM Growth Properties

During the third quarter of 2019, the Company made rent payments to MGM Growth Properties Operating Partnership LP ("MGP Operating Partnership") in the amount of $237 million and received distributions of $93 million from the MGP Operating Partnership. In September 2019, the Board of Directors of MGM Growth Properties LLC ("MGP") approved a quarterly dividend of $0.47 per Class A share (an increase of $0.01 per share based on a $1.88 dividend on an annualized basis) totaling $45 million, which was paid on October 15, 2019 to holders of record on September 30, 2019. The Company concurrently received a $94 million distribution attributable to its ownership of MGP Operating Partnership units.

MGM Resorts Dividend

On October 30, 2019, the Company's Board of Directors approved a quarterly dividend of $0.13 per share totaling approximately $67 million. The dividend will be payable on December 16, 2019 to holders of record on December 10, 2019.

During the current quarter, MGM Resorts repurchased approximately 13 million shares of its common stock at an average price of $28.33 per share for an aggregate amount of $357 million. Approximately $750 million remained available under the $2.0 billion share repurchase program as of September 30, 2019. All shares repurchased under the Company's program have been retired.

Financial Position

The Company's cash balance at September 30, 2019 was $1.2 billion, which included $490 million at MGM China and $154 million at the MGP Operating Partnership. At September 30, 2019, the Company had $15.1 billion of principal amount of indebtedness outstanding, including $1.3 billion outstanding under its $2.25 billion senior secured credit facility, $2.3 billion outstanding under the $3.6 billion MGP Operating Partnership senior secured credit facility and $776 million outstanding under the $1.25 billion MGM China revolving credit facility.

In August 2019, MGM China entered into a new $1.25 billion senior unsecured revolving credit facility and used the proceeds to fully repay the borrowings outstanding under its secured credit facility. The secured credit facility was subsequently extinguished. The new revolving credit facility matures in May 2024 and bears interest at a fluctuating rate per annum based on HIBOR plus 1.625% to 2.75%, as determined by MGM China's leverage ratio.

Conference Call Details

MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today which will include a brief discussion of the results followed by a question and answer period. The call will be accessible via the Internet through http://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 2753290. A replay of the call will be available through Wednesday, November 6, 2019.  The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088.  The replay access code is 10135301. The call will be archived at http://investors.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at http://investors.mgmresorts.com for reference during the earnings call.

1.             "Adjusted EPS" is diluted earnings per share adjusted to exclude preopening and start-up expenses, property transactions, net, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), gain or loss on retirement of long-term debt, currency translation gain or loss related to MGM China's U.S. dollar-denominated debt and the Company's share of mark-to-market adjustments related to CityCenter's interest rate swaps recorded within non-operating items from unconsolidated affiliates.

Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing period-to-period comparisons of the results of the Company's continuing operations to assist investors in reviewing the Company's operating performance over time. Management believes that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company's earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, such as restructuring costs and items further discussed in footnote 2 below, may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company's performance. In addition, Adjusted EPS may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly-titled non-GAAP financial measures of other companies. A reconciliation of Adjusted EPS to diluted earnings per share can be found under "Adjusted Diluted Earnings Per Share" included in the earnings release.

2.             "Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), and property transactions, net. Management utilizes "Adjusted Property EBITDA" as the primary profit measures for its reportable segments and underlying operating segments. Adjusted Property EBITDA is a measure defined as Adjusted EBITDA before corporate expense and stock compensation expense, which are not allocated to each operating segment, and before rent expense related to the master lease with MGM Growth Properties that eliminates in consolidation. "Adjusted Property EBITDA margin" is Adjusted Property EBITDA divided by related segment net revenues.

"Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA" and "VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA" are supplemental non-GAAP financial measures, that, in addition to the reasons described above for the presentation of Adjusted  Property EBITDA, are presented to adjust for the impact of certain variances in table games and VIP table games' win percentages compared to the mid-point of the expected ranges. Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA is calculated by applying a win percentage of 30.0% for Baccarat and 21.0% for non-Baccarat games to the respective table games drops for the quarter, which represents the mid-point of the expected ranges of 25.0% to 35.0% for Baccarat and 19.0% to 23.0% for non-Baccarat at the Las Vegas Strip Resorts properties. VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA is based on applying a VIP Rolling Chip win percentage of 2.95% to the VIP Rolling Chip volume, which represents the mid-point of the expected normal range of 2.6% to 3.3% for MGM China. Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA are also adjusted for the gaming taxes, VIP commissions, bad debt expense, discounts and other incentives that would have been incurred or avoided when applying the win percentages noted above to the respective gaming volumes.

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 Adjusted Property EBITDA margin may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company's resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance.

In addition, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA are presented as a supplemental disclosure to reported GAAP measures and to Adjusted Property EBITDA because management believes these measures present a consistent measure for evaluating the Company's operating performance from period to period.

Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA should not be construed as alternatives to operating income or net income, as indicators of the Company's 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. The Company has 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, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA information may calculate Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA in a different manner and such differences may be material.

A reconciliation of GAAP net income (loss) to Adjusted EBITDA is included in the financial schedules in this release. This press release also includes references to target financial measures and goals (including targeted Adjusted EBITDA and targeted net leverage), which are not presented as forecasts or projections of expected future performance.

3.             "Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues" and "VIP Table Games Hold Adjusted MGM China Net Revenues" are additional supplemental non-GAAP financial measures that are presented to adjust Las Vegas Strip Resorts net revenues and MGM China net revenues for the impact of certain variances in table games and VIP table games' win percentages compared to the mid-point of the expected ranges, as described in footnote 2 above. Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues are also adjusted for the VIP commissions, discounts and other incentives that would have been incurred or avoided when applying the win percentages noted in footnote 2 above to the respective gaming volumes. Management believes Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues present consistent measures in providing period-to-period comparisons and are useful measures in assisting investors evaluating the Company's operating performance. Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues should not be construed as alternatives to GAAP net revenues, as indicators of the Company's performance, or as any other measure determined in accordance with generally accepted accounting principles. Reconciliations of GAAP net revenues to Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues are included in the financial schedules in this release.

4.             REVPAR is hotel revenue per available room.

About MGM Resorts International

MGM Resorts International (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 30 unique hotel and destination gaming offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company recently acquired the operations of Empire City Casino in New York and Hard Rock Rocksino in Ohio, which was rebranded as MGM Northfield Park. In 2018, MGM Resorts opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai. The 82,000 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, the Company's ability to execute on its asset light strategy and return capital to shareholders, the expected net cash proceeds from the Bellagio sale-leaseback and Circus Circus Las Vegas transactions and the Company's ability to deliver on its 2020 targets and goals (including its Adjusted EBITDA, free cash flow and leverage targets). 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 CONTACTS:

Investment Community

News Media

AARON FISCHER

BRIAN AHERN

Chief Strategy Officer

Director of Media Relations

(702) 693-7152 or afischer@mgmresorts.com

media@mgmresorts.com

 

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,



2019


2018


2019


2018

Revenues:













Casino

$

1,663,049


$

1,465,380


$

4,887,707


$

4,191,910


Rooms


595,636



566,319



1,756,354



1,669,670


Food and beverage


560,200



520,773



1,624,973



1,470,992


Entertainment, retail and other


387,596



370,150



1,114,708



1,063,142


Reimbursed costs


107,901



106,680



330,794



314,520




3,314,382



3,029,302



9,714,536



8,710,234

Expenses:













Casino


915,207



819,334



2,706,356



2,323,514


Rooms


211,292



206,406



623,929



598,432


Food and beverage


427,400



391,091



1,254,303



1,121,465


Entertainment, retail and other


274,850



263,915



788,463



734,119


Reimbursed costs


107,901



106,680



330,794



314,520


General and administrative


494,228



463,417



1,543,764



1,319,760


Corporate expense


108,545



98,089



346,042



301,036


Preopening and start-up expenses 


925



46,890



5,091



132,884


Property transactions, net


249,858



(42,400)



264,424



(19,532)


Depreciation and amortization


322,009



300,472



973,211



865,502




3,112,215



2,653,894



8,836,377



7,691,700














Income from unconsolidated affiliates


36,214



35,495



101,967



115,201














Operating income


238,381



410,903



980,126



1,133,735














Non-operating income (expense):













Interest expense, net of amounts capitalized


(215,503)



(205,573)



(647,452)



(554,975)


Non-operating items from unconsolidated affiliates


(14,669)



(11,583)



(54,311)



(31,661)


Other, net


(9,381)



(3,291)



(53,964)



(11,588)




(239,553)



(220,447)



(755,727)



(598,224)














Income (loss) before income taxes


(1,172)



190,456



224,399



535,511


Benefit (provision) for income taxes


7,276



(19,046)



(75,969)



42,623














Net income 


6,104



171,410



148,430



578,134


Less: Net income attributable to noncontrolling interests


(43,237)



(28,532)



(110,861)



(88,035)

Net income (loss) attributable to MGM Resorts International

$

(37,133)


$

142,878


$

37,569


$

490,099














Earnings (loss) per share:













Basic

$

(0.08)


$

0.26


$

0.06


$

0.87


Diluted

$

(0.08)


$

0.26


$

0.06


$

0.86














Weighted average common shares outstanding:













Basic


518,983



535,130



528,429



549,418


Diluted


518,983



540,396



531,873



555,521

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)




















September 30,


December 31,




2019


2018









      ASSETS

Current assets:







Cash and cash equivalents

$

1,233,569


$

1,526,762


Accounts receivable, net


550,345



657,206


Inventories


104,206



110,831


Income tax receivable


23,877



28,431


October 1 litigation insurance receivable


735,000



-


Prepaid expenses and other


233,749



203,548



Total current assets


2,880,746



2,526,778









Property and equipment, net


20,603,978



20,729,888









Other assets:







Investments in and advances to unconsolidated affiliates


758,992



732,867


Goodwill 


2,076,431



1,821,392


Other intangible assets, net


3,866,536



3,944,463


Operating lease right-of-use assets, net


650,990



-


Other long-term assets, net


331,198



455,318



Total other assets


7,684,147



6,954,040




$

31,168,871


$

30,210,706

















LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:







Accounts payable

$

253,637


$

302,578


Construction payable


144,504



311,793


Current portion of long-term debt


-



43,411


Accrued interest on long-term debt


159,760



140,046


October 1 litigation liability


735,000



-


Other accrued liabilities


2,000,343



2,151,054



Total current liabilities


3,293,244



2,948,882









Deferred income taxes, net 


1,536,426



1,342,538

Long-term debt, net


14,943,874



15,088,005

Other long-term obligations


250,368



259,240

Operating lease liabilities


518,365



-

Redeemable noncontrolling interest


105,976



102,250

Stockholders' equity:







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







   issued and outstanding 513,913,791 and 527,479,528 shares 


5,139



5,275


Capital in excess of par value


3,846,369



4,092,085


Retained earnings


2,255,885



2,423,479


Accumulated other comprehensive loss


(46,841)



(8,556)



Total MGM Resorts International stockholders' equity


6,060,552



6,512,283


Noncontrolling interests


4,460,066



3,957,508



Total stockholders' equity


10,520,618



10,469,791




$

31,168,871


$

30,210,706

 

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,



2019


2018


2019


2018


Bellagio

$

333,752


$

322,058


$

1,010,450


$

1,029,223


MGM Grand Las Vegas


318,334



340,053



886,108



944,949


Mandalay Bay


248,928



246,303



715,503



742,758


The Mirage 


153,976



147,433



463,886



450,973


Luxor


98,892



103,822



291,448



304,281


New York-New York 


93,205



90,000



284,109



279,061


Excalibur


85,692



83,836



252,953



247,491


Park MGM


103,355



50,649



301,006



150,251


Circus Circus Las Vegas


71,314



70,202



196,517



191,987


  Las Vegas Strip Resorts


1,507,448



1,454,356



4,401,980



4,340,974


MGM Grand Detroit


145,769



148,472



453,318



449,218


Beau Rivage


108,509



108,580



317,553



308,068


Gold Strike Tunica


47,693



45,756



144,486



129,676


Borgata


234,459



235,186



621,064



635,486


MGM National Harbor


206,083



196,568



608,065



587,171


MGM Springfield (1)


75,994



42,549



230,076



42,549


Empire City Casino (2)


52,103



-



143,275



-


MGM Northfield Park (3)


64,408



-



132,079



-


 Regional Operations


935,018



777,111



2,649,916



2,152,168


MGM Macau


374,035



434,263



1,197,591



1,321,743


MGM Cotai


363,720



171,751



980,457



441,482


  MGM China


737,755



606,014



2,178,048



1,763,225


Management and other operations 


134,161



191,821



484,592



453,867



$

3,314,382


$

3,029,302


$

9,714,536


$

8,710,234



























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA and ADJUSTED EBITDA

(In thousands)

(Unaudited)
















Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2019


2018


2019


2018


Bellagio

$

117,589


$

104,715


$

355,914


$

371,716


MGM Grand Las Vegas


85,694



116,647



219,055



298,846


Mandalay Bay


66,256



58,649



184,998



194,415


The Mirage 


41,186



27,098



119,153



99,715


Luxor


32,560



31,985



94,201



94,530


New York-New York 


34,790



32,128



109,011



102,464


Excalibur


29,576



28,478



86,960



84,106


Park MGM


15,739



1,403



45,589



9,776


Circus Circus Las Vegas


17,765



18,596



47,998



49,190


  Las Vegas Strip Resorts


441,155



419,699



1,262,879



1,304,758


MGM Grand Detroit


45,569



48,440



145,254



146,966


Beau Rivage


29,863



29,438



84,226



76,906


Gold Strike Tunica


15,506



14,668



50,808



39,477


Borgata


67,168



60,806



159,431



154,955


MGM National Harbor


52,879



46,253



150,978



138,329


MGM Springfield (1)


9,228



7,644



31,090



7,644


Empire City Casino (2)


19,980



-



56,333



-


MGM Northfield Park (3)


23,423



-



47,223



-


 Regional Operations


263,616



207,249



725,343



564,277


MGM Macau


102,216



118,211



347,780



363,859


MGM Cotai


79,794



11,835



195,848



37,813


  MGM China


182,010



130,046



543,628



401,672


Unconsolidated resorts (4)


36,192



35,495



105,031



115,201


Management and other operations 


2,232



27,978



24,279



48,314


Stock compensation


(14,419)



(16,618)



(45,280)



(49,521)


Corporate 


(97,122)



(87,984)



(306,449)



(272,112)



$

813,664


$

715,865


$

2,309,431


$

2,112,589















(1) For the three and nine months ended September 30, 2018, represents net revenues and Adjusted Property EBITDA of MGM Springfield for the period August 1-September 30 only.


(2) For the nine months ended September 30, 2019, represents net revenues and Adjusted Property EBITDA of Empire City Casino for the period January 29-September 30 only.


(3) For the nine months ended September 30, 2019, represents net revenues and Adjusted Property EBITDA of MGM Northfield Park for the period April 1-September 30 only.


(4) 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 (LOSS) 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,



2019


2018


2019


2018

Net income (loss) attributable to MGM Resorts International


$

(37,133)


$

142,878


$

37,569


$

490,099

  Plus: Net income attributable to noncontrolling interests



43,237



28,532



110,861



88,035

Net income 



6,104



171,410



148,430



578,134

  (Benefit) provision for income taxes



(7,276)



19,046



75,969



(42,623)

Income (loss) before income taxes



(1,172)



190,456



224,399



535,511














Non-operating (income) expense:













  Interest expense, net of amounts capitalized



215,503



205,573



647,452



554,975

  Other, net



24,050



14,874



108,275



43,249




239,553



220,447



755,727



598,224














Operating income



238,381



410,903



980,126



1,133,735

  Preopening and start-up expenses



925



46,890



5,091



132,884

  Property transactions, net



249,858



(42,400)



264,424



(19,532)

  Depreciation and amortization



322,009



300,472



973,211



865,502

  Restructuring



2,491



-



86,579



-

Adjusted EBITDA


$

813,664


$

715,865


$

2,309,431


$

2,112,589














MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATIONS OF LAS VEGAS STRIP RESORTS NET REVENUES AND LAS VEGAS STRIP RESORTS ADJUSTED PROPERTY EBITDA TO TABLE GAMES  HOLD ADJUSTED

 LAS VEGAS STRIP RESORTS NET REVENUES AND TABLE GAMES HOLD ADJUSTED LAS VEGAS STRIP RESORTS ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)
















Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2019


2018


2019


2018

Las Vegas Strip Resorts net revenues


$

1,507,448


$

1,454,356


$

4,401,980


$

4,340,974

Hold adjustment (1)



(3,691)



(8,313)



15,882



(28,502)

Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues 


$

1,503,757


$

1,446,043


$

4,417,862


$

4,312,472














Las Vegas Strip Resorts Adjusted Property EBITDA


$

441,155


$

419,699


$

1,262,879


$

1,304,758

Hold adjustment (2)



(3,184)



(7,083)



13,512



(24,352)

Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA


$

437,971


$

412,616


$

1,276,391


$

1,280,406














(1) For the Las Vegas Strip Resorts, hold adjustment represents the estimated incremental table games win or loss had the Company's win percentage equaled the mid-point of the expected normal range of 25.0% to 35.0% for Baccarat and 19.0% to 23.0% for non-Baccarat. Amounts include estimated discounts and other incentives related to increases or decreases in table games win.  

(2) These amounts include estimated incremental expenses (gaming taxes and bad debt expense) that would have been incurred or avoided on the incremental table games win or loss calculated in (1) above.



























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATIONS OF MGM CHINA NET REVENUES AND MGM CHINA ADJUSTED PROPERTY EBITDA TO VIP TABLE GAMES HOLD ADJUSTED MGM CHINA NET REVENUES

 AND VIP TABLE GAMES HOLD ADJUSTED MGM CHINA ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)
















Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2019


2018


2019


2018

MGM China net revenues


$

737,755


$

606,014


$

2,178,048


$

1,763,225

Hold adjustment (3)



(38,642)



(16,753)



(49,126)



(2,721)

VIP Table Games Hold Adjusted MGM China Net Revenues


$

699,113


$

589,261


$

2,128,922


$

1,760,504














MGM China Adjusted Property EBITDA


$

182,010


$

130,046


$

543,628


$

401,672

Hold adjustment (4)



(14,117)



(6,529)



(19,793)



(1,991)

VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA


$

167,893


$

123,517


$

523,835


$

399,681














(3) For MGM China, hold adjustment represents the estimated incremental VIP table games win or loss related to VIP Rolling Chip volume play had the Company's win percentage equaled the mid-point of the expected normal range of 2.6% to 3.3%. Amounts include estimated commissions and other incentives related to increases or decreases in VIP table games win.

(4) These amounts include estimated incremental expenses (gaming taxes and bad debt expense) that would have been incurred or avoided on the incremental VIP table games win or loss calculated in (3) above.

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP RESORTS

(Unaudited)
















Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2019


2018


2019


2018


Bellagio













   Occupancy %


94.7%



96.4%



95.1%



95.2%


   Average daily rate (ADR)


$271



$265



$281



$277


   Revenue per available room (REVPAR)


$256



$256



$268



$264















MGM Grand Las Vegas













   Occupancy %


93.2%



93.8%



92.5%



93.5%


   ADR


$191



$181



$190



$183


   REVPAR


$178



$170



$175



$171















Mandalay Bay 













   Occupancy %


94.8%



92.3%



93.4%



90.3%


   ADR


$204



$200



$206



$210


   REVPAR


$193



$185



$193



$189















The Mirage













   Occupancy %


95.9%



96.9%



94.6%



94.5%


   ADR


$166



$159



$178



$172


   REVPAR


$159



$154



$169



$163















Luxor 













   Occupancy %


94.7%



96.7%



95.0%



95.5%


   ADR


$119



$114



$119



$116


   REVPAR


$113



$110



$113



$111















New York-New York













   Occupancy %


95.7%



97.5%



95.5%



97.0%


   ADR


$146



$139



$151



$144


   REVPAR


$140



$135



$144



$139















Excalibur 













   Occupancy %


93.6%



94.2%



93.1%



93.3%


   ADR


$103



$98



$103



$99


   REVPAR


$96



$92



$96



$93















Park MGM













   Occupancy %


87.7%



84.5%



88.4%



84.3%


   ADR


$149



$132



$149



$132


   REVPAR


$130



$111



$131



$111















Circus Circus Las Vegas













   Occupancy %


81.7%



85.0%



82.6%



83.0%


   ADR


$92



$85



$91



$84


   REVPAR


$76



$73



$75



$70

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)


















Three Months Ended


Nine Months Ended




September 30, 


September 30, 


September 30, 


September 30, 




2019


2018


2019


2018
















Aria


$

287,993


$

262,777


$

894,365


$

846,456


Vdara



32,359



31,610



98,850



96,415




$

320,352


$

294,387


$

993,215


$

942,871















CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)


















Three Months Ended


Nine Months Ended




September 30, 


September 30, 


September 30, 


September 30, 




2019


2018


2019


2018


Aria














   Occupancy %



90.8%



91.9%



91.8%



91.3%


   ADR



$262



$248



$272



$259


   REVPAR



$237



$228



$250



$237
















Vdara














   Occupancy %



91.8%



92.5%



92.4%



92.7%


   ADR



$209



$199



$213



$207


   REVPAR



$192



$184



$196



$192















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, 





2019



2018


2019

2018















Net income (loss)


$

33,082


$

(1,227)


$

56,079


$

(52,899)

 Plus: Loss from discontinued operations



-



6,069



-



134,617

Net income from continuing operations



33,082



4,842



56,079



81,718















Non-operating (income) expense:













  Interest expense, net of amounts capitalized



23,117



21,214



69,777



58,361

  Other, net



5,265



49



33,975



(102)





28,382



21,263



103,752



58,259















Operating income



61,464



26,105



159,831



139,977

  Property transactions, net



(10,601)



1,480



(9,352)



(449)

  Depreciation and amortization



57,709



55,732



172,113



164,447

  Restructuring



(44)



-



6,128



-

Adjusted EBITDA


$

108,528


$

83,317


$

328,720


$

303,975















CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - ADJUSTED EBITDA

(In thousands)

(Unaudited)





Three Months Ended


Nine Months Ended




September 30, 


September 30, 


September 30, 


September 30, 




2019


2018


2019


2018


Aria


$

101,209


$

76,594


$

307,927


$

278,961


Vdara



8,708



8,238



29,770



29,160


 Resort Operations



109,917



84,832



337,697



308,121


Other



(1,389)



(1,515)



(8,977)



(4,146)




$

108,528


$

83,317


$

328,720


$

303,975

 

Cision

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