MGM
$25.73
MGM Resorts International
$.55
2.18%
Earnings Details
3rd Quarter September 2018
Tuesday, October 30, 2018 4:15:00 PM
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Summary

MGM Resorts International Beats

MGM Resorts International (MGM) reported 3rd Quarter September 2018 earnings of $0.24 per share on revenue of $3.0 billion. The consensus earnings estimate was $0.18 per share on revenue of $2.9 billion. The Earnings Whisper number was $0.17 per share. Revenue grew 7.2% on a year-over-year basis.

MGM Resorts International is a holding company. The Company through its wholly-owned subsidiaries, owns and operates casino resorts. Its offering includes; gaming, hotel, convention, dining, entertainment, retail and other resort amenities.

Results
Reported Earnings
$0.24
Earnings Whisper
$0.17
Consensus Estimate
$0.18
Reported Revenue
$3.03 Bil
Revenue Estimate
$2.91 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

MGM Resorts International Reports Third Quarter Financial And Operating Results

LAS VEGAS, Oct. 30, 2018 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended September 30, 2018. On January 1, 2018, the Company adopted the new revenue recognition accounting standard (ASC 606). As such, certain previously reported 2017 numbers have been retrospectively adjusted under the new standard to assist with comparability to the prior period.

"Our third quarter operating performance exceeded our expectations despite the tough year on year comparison, resulting from robust casino business and an exceptionally strong event calendar last year." said Jim Murren, Chairman and CEO of MGM Resorts International. "During the quarter, we successfully opened MGM Springfield, which has been well received by our customers. Earlier this month, we also officially opened the NoMad Hotel at Park MGM, which will help expand our customer reach. We remain highly focused on our strategic priorities, including maximizing the performance of our portfolio of premier properties, driving growth in free cash flow and delivering on our capital allocation strategy."

Said Mr. Murren, "Stabilizing market conditions are positioning MGM Resorts for improvement in the fourth quarter. Looking further out, our growth will be driven by the continued ramp of our newly opened properties along with our disciplined approach to improve our margins throughout our resort portfolio. We also are executing on additional targeted growth opportunities in key areas including sports betting and Japan's upcoming Integrated Resort market. Our focus on balance sheet strength will help ensure prudent capital allocation and the continued return of capital to shareholders. Overall, we remain confident that we will deliver on our 2020 goals."

Third Quarter 2018 Financial Highlights:

  • Diluted earnings per share of $0.26 in both the current and prior year quarters;
  • Consolidated net revenues increased 7% compared to the prior year quarter to $3.0 billion;
  • Net revenues decreased 2% compared to the prior year quarter at the Company's domestic resorts to $2.2 billion and decreased 3% on a same-store basis, excluding contributions from the opening of MGM Springfield on August 24, 2018;
  • REVPAR(1) decreased 3.9% compared to the prior year quarter at the Company's Las Vegas Strip resorts;
  • Operating income of $435 million at the Company's domestic resorts, compared to $545 million in the prior year quarter. The current quarter was impacted by $31 million of preopening expenses at MGM Springfield, continued disruption at Park MGM and a decrease in casino and non-casino revenues at the Company's Las Vegas Strip resorts;
  • Net income attributable to MGM Resorts of $143 million, compared to $148 million in the prior year quarter;
  • Domestic resorts Adjusted Property EBITDA(2) of $627 million, a 12% decrease compared to $712 million in the prior year quarter and a 13% decrease on a same-store basis;
  • Same-store operating margin of 21.2% in the current quarter at the Company's domestic resorts, a 283 basis point decrease compared to the prior year quarter;
  • Same-store Adjusted Property EBITDA margin of 28.3% in the current quarter at the Company's domestic resorts, a 313 basis point decrease compared to the prior year quarter;
  • MGM China operating income of $52 million compared to $38 million in the prior year quarter and Adjusted Property EBITDA of $130 million, a 7% increase compared to the prior year quarter as a result of the opening of MGM Cotai;
  • CityCenter operating income from resort operations of $28 million and Adjusted EBITDA from resort operations of $85 million, a 20% decrease in Adjusted EBITDA from resort operations compared to the prior year quarter;
  • Distributed $64 million to shareholders via the Company's quarterly dividend of $0.12 per share; and
  • Repurchased $176 million of the Company's common stock in the third quarter.

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,


2018



2017


Preopening and start-up expenses


$

(0.07)



$

(0.03)


Gain on the sale of Grand Victoria



0.07





Property transactions, net






(0.01)


Income from unconsolidated affiliates:









Gain on the sale of Mandarin Oriental Las Vegas



0.02





Non-operating expense:









Loss on retirement of long-term debt






(0.04)


Domestic Resorts

Casino revenue for the third quarter of 2018 increased 1% compared to the prior year quarter, due primarily to the opening of MGM Springfield. Casino revenues decreased 3% on a same-store basis compared to the prior year quarter.  Table games win decreased 15% at the Company's Las Vegas Strip resorts.

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

Three Months Ended September 30,


2018



2017




(Dollars in millions)


Table Games Drop


$

897



$

1,003


Table Games Win %



25.4

%



26.8

%

Slots Handle


$

3,143



$

3,211


Slots Hold %



9.3

%



9.0

%

The following table shows key gaming statistics for the Company's other domestic resorts:

Three Months Ended September 30,


2018



2017




(Dollars in millions)


Table Games Drop


$

1,054



$

1,013


Table Games Win %



19.4

%



18.6

%

Slots Handle


$

5,755



$

5,207


Slots Hold %



9.0

%



9.1

%

Domestic resorts rooms revenue and same-store domestic resorts rooms revenue decreased 5% compared to the prior year quarter due primarily to a 3.9% decrease in REVPAR at the Company's Las Vegas Strip resorts.

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

Three Months Ended September 30,


2018


2017

Occupancy %


93%


95%

Average Daily Rate (ADR)


$157


$160

Revenue per Available Room (REVPAR)


$146


$152

Operating income at the Company's domestic resorts was $435 million for the third quarter of 2018 and was impacted by $31 million in preopening expenses at MGM Springfield, disruption related to the repositioning and rebranding at Park MGM and a decrease in casino and non-casino revenues at the Company's Las Vegas Strip resorts, as discussed above. Operating income in the prior year quarter was $545 million. Domestic Resorts Adjusted Property EBITDA decreased 12% to $627 million in the third quarter of 2018 and decreased 13% on a same-store basis.

Mr. Murren concluded, "We expect to deliver positive results in the fourth quarter at our Las Vegas Strip resorts with net revenues up slightly and Las Vegas Strip REVPAR up one to two percent. We also expect Las Vegas Strip Adjusted Property EBITDA margins to be flat to up slightly. These projected results are in line with our previously stated full year guidance. Heading into 2019, the completion of Park MGM and NoMad, the expanded MGM Grand convention space, and a better backdrop in group business position us well in Las Vegas. We will also benefit from a full year of operations at MGM Springfield."

Corporate Expense

Corporate expense, including share-based compensation for corporate employees was $98 million in the third quarter of 2018, an increase of $10 million compared to the prior year quarter, due primarily to an increase in transaction costs related to the Empire City acquisition, the formation of the MGM GVC Interactive LLC joint venture, and MGM Growth Properties LLC's ("MGP") Hard Rock Rocksino Northfield Park acquisition.

MGM China

Key third quarter results for MGM China include:

  • Net revenues of $606 million, a 37% increase compared to the prior year quarter. The current quarter benefited from the opening of MGM Cotai in February 2018, which contributed $172 million of net revenues;
  • Main floor table games win increased 43% compared to the prior year quarter due primarily to the opening of MGM Cotai;
  • VIP table games win increased 11% compared to the prior year quarter due primarily to an 8% increase in VIP table games win at MGM Macau;
  • Operating income was $52 million in the current quarter compared to $38 million in the prior year quarter;
  • Adjusted Property EBITDA increased 7% to $130 million compared to $121 million in the prior year quarter. The current quarter included $11 million of license fee expense compared to $8 million in the prior year quarter; and
  • Operating margin was 8.6% in the current year quarter, and Adjusted Property EBITDA margin was 21.5% in the current quarter compared to 27.4% in the prior year quarter, due primarily to the ramp-up of operations at MGM Cotai.

The following table shows key gaming statistics for MGM China:

Three Months Ended September 30,


2018



2017




(Dollars in millions)


VIP Table Games Turnover


$

9,419



$

8,243


VIP Table Games Win %



3.2

%



3.3

%

Main Floor Table Games Drop


$

1,882



$

1,291


Main Floor Table Games Win %



18.1

%



18.4

%

MGM China paid an interim dividend of $31 million in September 2018, of which $17 million was received by MGM Resorts.

Unconsolidated Affiliates

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

Three Months Ended September 30,


2018



2017




(In thousands)


CityCenter


$

33,232



$

34,673


Other



2,263




3,117




$

35,495



$

37,790


On August 30, 2018, CityCenter Holdings, LLC ("CityCenter") closed the sale of the Mandarin Oriental Las Vegas and adjacent retail parcels for $214 million in cash. CityCenter recorded a loss on sale of $133 million, the majority of which was recognized during the first quarter. MGM Resorts recorded a $12 million gain during the current quarter, related to the reversal of basis differences in excess of its share of the loss recorded by CityCenter. CityCenter used the proceeds from the sale, together with cash from operations, to pay a $225 million dividend in September 2018, of which MGM Resorts received its 50% share, or $112.5 million.

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 were $294 million, a 6% decrease compared to the prior year quarter, due to a decrease in casino and rooms revenues;
  • Aria's table games win decreased 20%, due to a 10% decrease in table games drop and a decrease in table games hold percentage to 20.9% in the current quarter compared to 23.5% in the prior year quarter;
  • Aria's slots win increased slightly compared to the prior year quarter due primarily to a 5% increase in volume offset by a decrease in the slots hold percentage;
  • REVPAR at Aria decreased 2% compared to the prior year quarter to $228;
  • REVPAR at Vdara decreased 5% compared to the prior year quarter to $184;
  • Operating income from resort operations was $28 million compared to operating income of $53 million in the prior year quarter; and
  • Adjusted EBITDA from resort operations was $85 million, a 20% decrease compared to the prior year quarter.

MGM Growth Properties

During the third quarter of 2018, the Company made rent payments to MGM Growth Properties Operating Partnership LP ("MGP Operating Partnership") in the amount of $193 million and received distributions of $84 million from the MGP Operating Partnership. On September 17, 2018, the Board of Directors of MGP approved a quarterly dividend of $0.4375 per Class A share (based on a $1.75 dividend on an annualized basis) totaling $31 million, which represents an increase of $0.07 per share year to date, for a total increase of 4.2% year to date, which was paid on October 15, 2018 to holders of record on September 28, 2018. The Company concurrently received an $85 million distribution attributable to its ownership of MGP Operating Partnership units.

On July 6, 2018, MGP completed the previously announced acquisition of the Hard Rock Rocksino Northfield Park for approximately $1.1 billion.

In the current quarter, the Company recorded within Management and other operations $66 million in net revenues and $22 million in Adjusted Property EBITDA related to MGP's Northfield casino.

On September 18, 2018, the Company entered into an agreement with MGP to acquire all of the operating assets of Hard Rock Rocksino Northfield Park from MGP for approximately $275 million, subject to purchase price adjustments for certain working capital changes. The real estate assets will be leased to the Company pursuant to an amendment to the existing master lease between subsidiaries of the Company and MGP, increasing the annual rent payment to MGP by $60 million, prorated for the remainder of the lease year. Consistent with the master lease terms, 90 percent of this rent will be fixed and contractually grow at 2 percent per year until 2022. The transaction is expected to close in the first half of 2019, subject to regulatory approvals and other customary closing conditions.

MGM Resorts Dividend and Share Repurchases

On October 30, 2018, the Company's Board of Directors approved a quarterly dividend of $0.12 per share totaling approximately $63 million. The dividend will be payable on December 14, 2018 to holders of record on December 10, 2018.

In May 2018, MGM Resorts completed its $1.0 billion share repurchase program and announced a new $2.0 billion share repurchase program. During the current quarter, MGM Resorts repurchased approximately 6 million shares of its common stock at an average price of $28.87 per share for an aggregate amount of $176 million. Approximately $1.5 billion remains available under the $2.0 billion share repurchase program. All shares repurchased under the Company's program have been retired.

Financial Position

The Company's cash balance at September 30, 2018 was $1.3 billion, which included $663 million at MGM China and $50 million at the MGP Operating Partnership. At September 30, 2018, the Company had $14.8 billion of principal amount of indebtedness outstanding, including $228 million outstanding under its $1.5 billion senior secured credit facility, $2.8 billion outstanding under the $3.6 billion MGP Operating Partnership senior secured credit facility and $2.5 billion outstanding under the $2.9 billion MGM China credit facility.

"We are generating strong free cash flow, and as we reach the end of our development cycle, we remain poised to achieve our consolidated net leverage target of 3 to 4 times by 2020 while returning capital to shareholders." said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts.

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 these 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 2681205. A replay of the call will be available through Tuesday, November 6, 2018. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10124888. 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    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 and property transactions, net. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense, which are not allocated to each property. "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 Property EBITDA margin" is Adjusted Property EBITDA divided by net revenues. "Same-store Adjusted Property EBITDA margin" is Same-store Adjusted Property EBITDA divided by same-store net revenues. 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 presents Adjusted Property EBITDA on a "same-store" basis as supplemental information because management believes that providing performance measures on a "same-store" basis is useful for evaluating the period-to-period performance of the Company's domestic casino resorts.

Management believes that while items excluded from Adjusted EBITDA, Adjusted Property EBITDA, Same-store Adjusted Property EBITDA, Adjusted Property EBITDA margin, and Same-store 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 and Same-store Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance.

Adjusted EBITDA, Adjusted Property EBITDA, Same-store Adjusted Property EBITDA, Adjusted Property EBITDA margin, and Same-store Adjusted Property EBITDA margin 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, Same-store Adjusted Property EBITDA, Adjusted Property EBITDA margin, or Same-store Adjusted Property EBITDA margin. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA, Same-store Adjusted Property EBITDA, Adjusted Property EBITDA margin, or Same-store Adjusted Property EBITDA margin information may calculate Adjusted EBITDA, Adjusted Property EBITDA, Same-store Adjusted Property EBITDA, Adjusted Property EBITDA margin, or Same-store Adjusted Property EBITDA margin 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, Same-store Adjusted Property EBITDA, Adjusted Property EBITDA margin, or Same-store Adjusted Property EBITDA margin 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, Same-store Adjusted Property EBITDA, Adjusted Property EBITDA margin, and Same-store Adjusted Property EBITDA margin.

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 28 unique hotel offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company in 2018 opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai. The 81,000 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 Company's ability to generate future cash flow growth, return value to shareholders and further de-lever, the Company's ability to execute its strategic plan and capital allocations strategy, and deliver on its 2020 goals. 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,



2018


2017


2018


2017

Revenues:













Casino

$

1,465,380


$

1,283,049


$

4,191,910


$

3,727,281


Rooms


566,319



572,994



1,669,670



1,673,561


Food and beverage


520,773



503,623



1,470,992



1,458,057


Entertainment, retail and other


370,150



368,128



1,063,142



1,039,087


Reimbursed costs


106,680



102,381



314,520



301,888




3,029,302



2,830,175



8,710,234



8,199,874

Expenses:













Casino


819,334



674,959



2,323,514



1,969,255


Rooms


206,406



192,663



598,432



568,448


Food and beverage


391,091



373,956



1,121,465



1,090,129


Entertainment, retail and other


263,915



254,113



734,119



721,338


Reimbursed costs


106,680



102,381



314,520



301,888


General and administrative


463,417



402,023



1,319,760



1,145,160


Corporate expense


98,089



88,506



301,036



241,086


Preopening and start-up expenses 


46,890



29,349



132,884



65,508


Property transactions, net


(42,400)



7,711



(19,532)



22,650


NV Energy exit expense


-



-



-



(40,629)


Depreciation and amortization


300,472



249,600



865,502



744,123




2,653,894



2,375,261



7,691,700



6,828,956














Income from unconsolidated affiliates


35,495



37,790



115,201



118,195














Operating income


410,903



492,704



1,133,735



1,489,113














Non-operating income (expense):













Interest expense, net of amounts capitalized


(205,573)



(163,287)



(554,975)



(511,404)


Non-operating items from unconsolidated affiliates


(11,583)



(8,825)



(31,661)



(26,302)


Other, net


(3,291)



(30,138)



(11,588)



(31,706)




(220,447)



(202,250)



(598,224)



(569,412)














Income before income taxes


190,456



290,454



535,511



919,701


Benefit (provision) for income taxes


(19,046)



(114,710)



42,623



(250,510)














Net income


171,410



175,744



578,134



669,191


Less: Net income attributable to noncontrolling interests


(28,532)



(27,381)



(88,035)



(104,552)

Net income attributable to MGM Resorts International

$

142,878


$

148,363


$

490,099


$

564,639














Earnings per share:













Basic

$

0.26


$

0.26


$

0.87


$

0.98


Diluted

$

0.26


$

0.26


$

0.86


$

0.97














Weighted average common shares outstanding:













Basic


535,130



573,527



549,418



574,262


Diluted


540,396



580,676



555,521



580,941

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)




















September 30,


December 31,




2018


2017









      ASSETS

Current assets:








Cash and cash equivalents

$

1,302,677


$

1,499,995


Accounts receivable, net


546,646



542,273


Inventories


104,438



102,292


Income tax receivable


19,552



42,551


Prepaid expenses and other


234,711



189,244



Total current assets


2,208,024



2,376,355









Property and equipment, net


20,733,381



19,635,459









Other assets:








Investments in and advances to unconsolidated affiliates


666,210



1,033,297


Goodwill 



1,822,009



1,806,531


Other intangible assets, net


3,991,963



3,877,960


Other long-term assets, net


551,928



430,440



Total other assets


7,032,110



7,148,228




$

29,973,515


$

29,160,042

















LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:







Accounts payable

$

301,008


$

255,028


Construction payable


372,744



474,807


Current portion of long-term debt


-



158,042


Accrued interest on long-term debt


142,774



135,785


Other accrued liabilities


2,161,064



2,114,635



Total current liabilities


2,977,590



3,138,297









Deferred income taxes, net 


1,241,036



1,295,375

Long-term debt, net


14,663,972



12,751,052

Other long-term obligations


251,399



284,416

Redeemable noncontrolling interest


93,339



79,778

Stockholders' equity:







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







  issued and outstanding 531,937,096 and 566,275,789 shares


5,319



5,663


Capital in excess of par value


4,251,702



5,357,709


Retained earnings


2,510,103



2,217,299


Accumulated other comprehensive income (loss)


6,234



(3,610)



Total MGM Resorts International stockholders' equity


6,773,358



7,577,061


Noncontrolling interests


3,972,821



4,034,063



Total stockholders' equity


10,746,179



11,611,124




$

29,973,515


$

29,160,042

 

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,


2018


2017


2018


2017

Bellagio

$

322,058


$

380,374


$

1,029,223


$

1,046,243

MGM Grand Las Vegas


340,053



311,193



944,949



889,021

Mandalay Bay


246,303



277,205



742,758



790,676

The Mirage 


147,433



162,082



450,973



488,599

Luxor


103,822



110,838



304,281



316,205

New York-New York 


90,000



92,319



279,061



272,970

Excalibur


83,836



88,106



247,491



251,801

Park MGM


50,649



57,824



150,251



197,121

Circus Circus Las Vegas


70,202



75,352



191,987



197,175

MGM Grand Detroit


148,472



140,191



449,218



426,926

Beau Rivage


108,580



100,351



308,068



289,124

Gold Strike Tunica


45,756



44,906



129,676



130,986

Borgata


235,186



245,930



635,486



665,316

MGM National Harbor


196,568



180,310



587,171



532,171

MGM Springfield (1)


42,549



-



42,549



-

  Domestic resorts


2,231,467



2,266,981



6,493,142



6,494,334

MGM Macau


434,263



442,065



1,321,743



1,341,392

MGM Cotai


171,751



-



441,482



-

  MGM China


606,014



442,065



1,763,225



1,341,392

Management and other operations 


191,821



121,129



453,867



364,148


$

3,029,302


$

2,830,175


$

8,710,234


$

8,199,874





































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,


2018


2017


2018


2017

Bellagio

$

104,715


$

157,289


$

371,716


$

397,851

MGM Grand Las Vegas


116,647



85,930



298,846



254,014

Mandalay Bay


58,649



84,012



194,415



230,516

The Mirage 


27,098



45,988



99,715



146,980

Luxor


31,985



36,958



94,530



102,705

New York-New York 


32,128



35,734



102,464



102,810

Excalibur


28,478



33,095



84,106



90,572

Park MGM


1,403



9,419



9,776



48,616

Circus Circus Las Vegas


18,596



25,537



49,190



57,720

MGM Grand Detroit


48,440



42,189



146,966



131,192

Beau Rivage


29,438



27,530



76,906



69,026

Gold Strike Tunica


14,668



13,540



39,477



41,088

Borgata


60,806



77,746



154,955



237,250

MGM National Harbor


46,253



37,408



138,329



106,131

MGM Springfield (1)


7,644



-



7,644



-

  Domestic resorts


626,948



712,375



1,869,035



2,016,471

MGM Macau (2)


118,211



121,116



363,859



385,219

MGM Cotai


11,835



-



37,813



-

  MGM China


130,046



121,116



401,672



385,219

Unconsolidated resorts (3)


35,495



37,790



115,201



118,195

Management and other operations 


27,978



4,340



48,314



23,751


$

820,467


$

875,621


$

2,434,222


$

2,543,636


(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) In 2017, MGM Macau included certain expenses classified as corporate expense in 2018.

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

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)



















Three Months Ended September 30, 2018




















Operating
income (loss)


NV Energy exit
expense


Preopening and
start-up
expenses


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Bellagio

$

81,879


$

-


$

-


$

158


$

22,678


$

104,715

MGM Grand Las Vegas


100,254



-



-



29



16,364



116,647

Mandalay Bay


36,102



-



-



2



22,545



58,649

The Mirage 


18,182



-



-



54



8,862



27,098

Luxor


22,062



-



-



45



9,878



31,985

New York-New York 


25,908



-



-



28



6,192



32,128

Excalibur


23,393



-



-



93



4,992



28,478

Park MGM


(13,994)



-



3,119



1,694



10,584



1,403

Circus Circus Las Vegas


13,880



-



-



144



4,572



18,596

MGM Grand Detroit


42,874



-



-



(92)



5,658



48,440

Beau Rivage


22,651



-



51



-



6,736



29,438

Gold Strike Tunica


12,357



-



41



-



2,270



14,668

Borgata


46,543



-



-



153



14,110



60,806

MGM National Harbor


31,979



-



48



33



14,193



46,253

MGM Springfield (1)


(29,467)



-



31,333



-



5,778



7,644

  Domestic resorts


434,603



-



34,592



2,341



155,412



626,948

MGM Macau


100,188



-



-



3



18,020



118,211

MGM Cotai


(47,850)



-



5,963



-



53,722



11,835

  MGM China


52,338



-



5,963



3



71,742



130,046

Unconsolidated resorts (2)


35,495



-



-



-



-



35,495

Management and other operations 


20,801



-



-



-



7,177



27,978



543,237



-



40,555



2,344



234,331



820,467

Stock compensation


(16,618)



-



-



-



-



(16,618)

Corporate 


(115,716)



-



6,335



(44,744)



66,141



(87,984)


$

410,903


$

-


$

46,890


$

(42,400)


$

300,472


$

715,865























































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

$

131,671


$

-


$

-


$

722


$

24,896


$

157,289

MGM Grand Las Vegas


68,200



-



(1)



393



17,338



85,930

Mandalay Bay


62,370



-



-



271



21,371



84,012

The Mirage 


35,759



-



-



96



10,133



45,988

Luxor


27,277



-



-



308



9,373



36,958

New York-New York 


29,025



-



(154)



122



6,741



35,734

Excalibur


28,414



-



-



161



4,520



33,095

Park MGM


(5,793)



-



1,855



4,013



9,344



9,419

Circus Circus Las Vegas


21,270



-



2



30



4,235



25,537

MGM Grand Detroit


36,581



-



-



-



5,608



42,189

Beau Rivage


20,849



-



-



355



6,326



27,530

Gold Strike Tunica


11,272



-



-



-



2,268



13,540

Borgata


60,182



-



153



91



17,320



77,746

MGM National Harbor


17,770



-



24



-



19,614



37,408

  Domestic resorts


544,847



-



1,879



6,562



159,087



712,375

MGM China


37,734



-



22,030



876



60,476



121,116

Unconsolidated resorts (2)


37,790



-



-



-



-



37,790

Management and other operations


1,927



-



-



-



2,413



4,340



622,298



-



23,909



7,438



221,976



875,621

Stock compensation


(14,978)



-



-



-



-



(14,978)

Corporate 


(114,616)



-



5,440



273



27,624



(81,279)


$

492,704


$

-


$

29,349


$

7,711


$

249,600


$

779,364


(1) For the three months ended September 30, 2018, represents the operating results of MGM Springfield for the period August 1-September 30 only.

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

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)



















Nine Months Ended September 30, 2018




















Operating
income (loss)


NV Energy exit
expense


Preopening and
start-up
expenses


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Bellagio

$

304,099


$

-


$

-


$

832


$

66,785


$

371,716

MGM Grand Las Vegas


249,062



-



-



644



49,140



298,846

Mandalay Bay


126,571



-



-



(47)



67,891



194,415

The Mirage 


70,868



-



-



1,674



27,173



99,715

Luxor


64,468



-



-



279



29,783



94,530

New York-New York 


83,798



-



-



180



18,486



102,464

Excalibur


69,199



-



-



58



14,849



84,106

Park MGM


(53,867)



-



8,477



19,558



35,608



9,776

Circus Circus Las Vegas


35,413



-



-



359



13,418



49,190

MGM Grand Detroit


130,406



-



-



(92)



16,652



146,966

Beau Rivage


56,970



-



51



26



19,859



76,906

Gold Strike Tunica


32,795



-



41



46



6,595



39,477

Borgata


110,955



-



-



1,013



42,987



154,955

MGM National Harbor


82,968



-



159



86



55,116



138,329

MGM Springfield (1)


(29,467)



-



31,333



-



5,778



7,644

  Domestic resorts


1,334,238



-



40,061



24,616



470,120



1,869,035

MGM Macau


310,186



-



-



587



53,086



363,859

MGM Cotai


(156,403)



-



61,149



6



133,061



37,813

  MGM China


153,783



-



61,149



593



186,147



401,672

Unconsolidated resorts (2)


111,880



-



3,321



-



-



115,201

Management and other operations 


37,425



-



-



-



10,889



48,314



1,637,326



-



104,531



25,209



667,156



2,434,222

Stock compensation


(49,521)



-



-



-



-



(49,521)

Corporate 


(454,070)



-



28,353



(44,741)



198,346



(272,112)


$

1,133,735


$

-


$

132,884


$

(19,532)


$

865,502


$

2,112,589























































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

$

334,935


$

(6,970)


$

-


$

845


$

69,041


$

397,851

MGM Grand Las Vegas


206,838



(7,424)



6



1,237



53,357



254,014

Mandalay Bay


168,230



(8,524)



-



261



70,549



230,516

The Mirage 


121,537



(4,043)



-



213



29,273



146,980

Luxor


76,211



(3,394)



-



1,472



28,416



102,705

New York-New York 


82,410



(2,025)



(162)



305



22,282



102,810

Excalibur


79,502



(2,658)



-



419



13,309



90,572

Park MGM


901



(2,461)



2,904



14,003



33,269



48,616

Circus Circus Las Vegas


47,238



(3,130)



452



765



12,395



57,720

MGM Grand Detroit


114,111



-



-



-



17,081



131,192

Beau Rivage


50,351



-



-



360



18,315



69,026

Gold Strike Tunica


34,229



-



-



(22)



6,881



41,088

Borgata


178,321



-



1,430



1,311



56,188



237,250

MGM National Harbor


45,972



-



251



-



59,908



106,131

  Domestic resorts


1,540,786



(40,629)



4,881



21,169



490,264



2,016,471

MGM China


158,764



-



45,188



1,208



180,059



385,219

Unconsolidated resorts (2)


118,195



-



-



-



-



118,195

Management and other operations


17,746



-



-



-



6,005



23,751



1,835,491



(40,629)



50,069



22,377



676,328



2,543,636

Stock compensation


(45,188)



-



-



-



-



(45,188)

Corporate 


(301,190)



-



15,439



273



67,795



(217,683)


$

1,489,113


$

(40,629)


$

65,508


$

22,650


$

744,123


$

2,280,765


(1) For the nine months ended September 30, 2018, represents the operating results of MGM Springfield for the period August 1-September 30 only.

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

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF 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,


2018


2017


2018


2017

Net income attributable to MGM Resorts International

$

142,878


$

148,363


$

490,099


$

564,639

  Plus: Net income attributable to noncontrolling interests


28,532



27,381



88,035



104,552

Net income


171,410



175,744



578,134



669,191

  (Benefit) provision for income taxes


19,046



114,710



(42,623)



250,510

Income before income taxes


190,456



290,454



535,511



919,701













Non-operating (income) expense:












  Interest expense, net of amounts capitalized


205,573



163,287



554,975



511,404

  Other, net


14,874



38,963



43,249



58,008



220,447



202,250



598,224



569,412













Operating income


410,903



492,704



1,133,735



1,489,113

  NV Energy exit expense


-



-



-



(40,629)

  Preopening and start-up expenses


46,890



29,349



132,884



65,508

  Property transactions, net


(42,400)



7,711



(19,532)



22,650

  Depreciation and amortization


300,472



249,600



865,502



744,123

Adjusted EBITDA

$

715,865


$

779,364


$

2,112,589


$

2,280,765

 

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,


2018


2017


2018


2017

Domestic resorts Adjusted Property EBITDA

$

626,948


$

712,375


$

1,869,035


$

2,016,471

  Adjusted Property EBITDA related to MGM Springfield


(7,644)



-



(7,644)



-

Domestic resorts same-store Adjusted Property EBITDA

$

619,304


$

712,375


$

1,861,391


$

2,016,471

 

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,


2018


2017


2018


2017

Bellagio












   Occupancy %


96.4%



96.1%



95.2%



94.5%

   Average daily rate (ADR)


$265



$271



$277



$277

   Revenue per available room (REVPAR)


$256



$260



$264



$262













MGM Grand Las Vegas












   Occupancy %


93.8%



95.6%



93.5%



93.6%

   ADR


$181



$181



$183



$186

   REVPAR


$170



$173



$171



$174













Mandalay Bay 












   Occupancy %


92.3%



94.2%



90.3%



93.1%

   ADR


$200



$206



$210



$212

   REVPAR


$185



$194



$189



$198













The Mirage












   Occupancy %


96.9%



97.7%



94.5%



95.4%

   ADR


$159



$163



$172



$173

   REVPAR


$154



$160



$163



$165













Luxor 












   Occupancy %


96.7%



96.3%



95.5%



95.2%

   ADR


$114



$118



$116



$118

   REVPAR


$110



$114



$111



$112













New York-New York












   Occupancy %


97.5%



97.3%



97.0%



96.6%

   ADR


$139



$148



$144



$147

   REVPAR


$135



$144



$139



$142













Excalibur 












   Occupancy %


94.2%



96.2%



93.3%



94.1%

   ADR


$98



$103



$99



$102

   REVPAR


$92



$99



$93



$96













Park MGM












   Occupancy %


84.5%



93.1%



84.3%



94.4%

   ADR


$132



$124



$132



$122

   REVPAR


$111



$115



$111



$116













Circus Circus Las Vegas












   Occupancy %


85.0%



93.3%



83.0%



86.5%

   ADR


$85



$89



$84



$86

   REVPAR


$73



$83



$70



$75

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)














Three Months Ended


Nine Months Ended


September 30,


September 30,


September 30,


September 30,


2018


2017


2018


2017













Aria

$

262,777


$

278,876


$

846,456


$

834,570

Vdara


31,610



32,654



96,415



96,569


$

294,387


$

311,530


$

942,871


$

931,139



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,


2018


2017


2018

2017













Net income (loss)

$

(1,227)


$

35,315


$

(52,899)


$

117,836

 Plus: Loss from discontinued operations


6,069



1,201



134,617



3,306

Net income from continuing operations


4,842



36,516



81,718



121,142













Non-operating (income) expense:












  Interest expense, net of amounts capitalized


21,214



16,381



58,361



44,207

  Other, net


49



(410)



(102)



3,295



21,263



15,971



58,259



47,502













Operating income


26,105



52,487



139,977



168,644

  NV Energy exit expense


-



-



-



(8,250)

  Property transactions, net


1,480



937



(449)



1,163

  Depreciation and amortization


55,732



52,287



164,447



156,100

Adjusted EBITDA

$

83,317


$

105,711


$

303,975


$

317,657

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)
















Three Months Ended September 30, 2018

















Operating income
(loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Aria

$

26,522


$

-


$

1,306


$

48,766


$

76,594

Vdara


1,098



-



174



6,966



8,238

 Resort operations


27,620



-



1,480



55,732



84,832

Other


(1,515)



-



-



-



(1,515)


$

26,105


$

-


$

1,480


$

55,732


$

83,317































Three Months Ended September 30, 2017

















Operating income
(loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Aria

$

49,712


$

-


$

780


$

45,428


$

95,920

Vdara


3,746



-



157



6,859



10,762

 Resort operations


53,458



-



937



52,287



106,682

Other


(971)



-



-



-



(971)


$

52,487


$

-


$

937


$

52,287


$

105,711

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)
















Nine Months Ended September 30, 2018

















Operating income
(loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Aria

$

135,883


$

-


$

(677)


$

143,755


$

278,961

Vdara


8,240



-



228



20,692



29,160

 Resort operations


144,123



-



(449)



164,447



308,121

Other


(4,146)



-



-



-



(4,146)


$

139,977


$

-


$

(449)


$

164,447


$

303,975














































Nine Months Ended September 30, 2017

















Operating income
(loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Aria

$

160,907


$

(8,250)


$

1,005


$

135,468


$

289,130

Vdara


10,919



-



158



20,632



31,709

 Resort operations


171,826



(8,250)



1,163



156,100



320,839

Other


(3,182)



-



-



-



(3,182)


$

168,644


$

(8,250)


$

1,163


$

156,100


$

317,657

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)














Three Months Ended


Nine Months Ended


September 30,


September 30,


September 30,


September 30,


2018


2017


2018


2017

Aria












   Occupancy %


91.9%



93.1%



91.3%



92.9%

   ADR


$248



$249



$259



$253

   REVPAR


$228



$232



$237



$235













Vdara












   Occupancy %


92.5%



91.9%



92.7%



90.9%

   ADR


$199



$210



$207



$211

   REVPAR


$184



$193



$192



$192

 

Cision View original content:http://www.prnewswire.com/news-releases/mgm-resorts-international-reports-third-quarter-financial-and-operating-results-300740786.html

SOURCE MGM Resorts International