MGM
$29.59
MGM Resorts International
$.62
2.14%
Earnings Details
3rd Quarter September 2016
Monday, November 07, 2016 7:40:00 AM
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Summary

MGM Resorts International Beats

MGM Resorts International (MGM) reported 3rd Quarter September 2016 earnings of $0.58 per share on revenue of $2.5 billion. The consensus earnings estimate was $0.08 per share. The Earnings Whisper number was $0.11 per share. Revenue grew 10.3% 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
$0.58
Earnings Whisper
$0.11
Consensus Estimate
$0.08
Reported Revenue
$2.52 Bil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

MGM Resorts International Reports Third Quarter Financial And Operating Results

MGM Resorts International (MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended September 30, 2016.

Key highlights include:

Diluted earnings per share for the third quarter of 2016 of $0.93, including $0.60 related to a $430 million gain on Borgata acquisition and a $0.20 charge related to the NV Energy exit, compared to diluted earnings per share of $0.12 in the prior year quarter;

Net revenues of $1.9 billion at the Company’s domestic resorts, a 16% increase over the prior year quarter, and an 8% increase on a same-store basis, excluding contributions from Borgata which the Company began consolidating in August of 2016 and Circus Circus Reno, which the Company sold in 2015;

11% increase in REVPAR(1) over the prior year quarter at the Company’s Las Vegas Strip resorts;

Operating income of $301 million at the Company’s domestic resorts, including the impact of $139 million of NV Energy exit expense;

Net income attributable to MGM Resorts of $536 million, a 706% increase over the prior year quarter;

Adjusted Property EBITDA(2) of $570 million at the Company’s domestic resorts, a 39% increase over the prior year quarter and a 31% increase on a same-store basis;

Profit Growth Plan contribution of approximately $73 million of year over year Adjusted Property EBITDA growth to domestic resorts and approximately $5 million of Adjusted EBITDA growth from the Company’s 50% share of CityCenter’s results;

Same-store Adjusted Property EBITDA margin of 30.6% at the Company’s domestic resorts, a 527 basis point increase compared to the prior year quarter;

MGM China’s net revenues decreased 6%, while operating income and Adjusted EBITDA increased 34% and 17%, respectively, compared to the prior year quarter, partially due to its focus on high-quality main-floor business; and

CityCenter’s net revenues and Adjusted EBITDA related to resorts operations increased 11% and 41%, respectively, compared to the prior year quarter.

"MGM Resorts produced a tremendously strong quarter, delivering the best net revenues and Adjusted Property EBITDA at our domestic resorts since 2007. These results demonstrate the broad based commitment and contributions of the MGM Resorts team in executing the Company’s strategic plan and delivering value to our shareholders," said Jim Murren, Chairman & CEO of MGM Resorts. "We have executed on numerous opportunities this year, strengthening our organization, improving our balance sheet, and positioning the Company for growth. The complexity and scale of our organizational transformation is unprecedented in our industry and has manifested itself into our superior operating performance. Looking ahead, we remain focused on organic growth through a stronger, reinvigorated Company driven by our culture of continuous improvement and are committed to expanding our distinguished brand with the opening of MGM National Harbor and the Park Theater in Las Vegas next month."

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,
2016
2015
NV Energy exit expense
$
(0.18)
$
--
Preopening and start-up expenses
(0.03)
(0.02)
Gain on Borgata transaction
0.60
--
Income from unconsolidated affiliates:
CityCenter NV Energy exit expense
(0.02)
--
Non-operating expense:
Loss on retirement of long-term debt
(0.02)
--

The current quarter included income tax benefit of $169 million resulting from the reduction of valuation allowance on foreign tax credit carryovers and income tax expense of $36 million resulting from the remeasurement of Macau deferred tax liabilities, both the result of a change in assumption concerning renewal of the exemption from the Macau complementary tax on gaming profits.

Domestic Resorts

Casino revenue for the third quarter of 2016 increased 23% compared to the prior year quarter, due primarily to the acquisition of Borgata and an increase in both table games and slots revenue. Casino revenue increased 7% on a same-store basis compared to the prior year quarter. Same-store table games hold percentage in the third quarter of 2016 was 23.7% compared to 20.4% in the prior year quarter. Slots revenue increased 19% compared to the prior year quarter due primarily to the acquisition of Borgata, and increased 3% on a same- store basis compared to the prior year quarter.

Rooms revenue increased 14% compared to the prior year quarter. On a same-store basis, rooms revenue increased 11% compared to the prior year quarter. Las Vegas Strip REVPAR increased 11%. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

Three months ended September 30,
2016
2015
Occupancy %
97
%
96
%
Average Daily Rate (ADR)
$
154
$
141
Revenue per Available Room (REVPAR)
$
149
$
135

The Company expects to achieve Las Vegas Strip REVPAR growth of 3% in the fourth quarter of 2016, compared to a 12% increase in the prior year’s fourth quarter.

Mr. Murren continued, "We continue to see strength in the Las Vegas market and believe that the Company can drive growth across all room segments in the fourth quarter, despite a challenging comparison. Based on these current trends, we remain confident in our ability to further increase room revenues in 2017."

Operating income at the Company’s domestic resorts was $301 million for the third quarter of 2016 compared to $290 million in the prior year quarter and included $139 million of NV Energy exit expense associated with the Company’s strategic decision to exit the fully bundled sales system of NV Energy and $8 million in real estate transfer taxes recorded in connection with the Borgata transaction.

Domestic resorts Adjusted Property EBITDA increased 39% to $570 million in the third quarter of 2016 and was positively impacted by approximately $73 million of Adjusted Property EBITDA growth generated from the Company’s Profit Growth Plan initiatives as well as $36 million of Adjusted Property EBITDA resulting from the Borgata transaction. Same-store Adjusted Property EBITDA increased 31% compared to the prior year quarter.

Corporate Expense

Corporate expense was $88 million in the third quarter of 2016, an increase of $14 million compared to the prior year quarter. The current quarter included $10 million of expense related to transaction costs incurred by MGM Growth Properties LLC ("MGP") in connection with the Borgata transaction, $5 million related to Profit Growth Plan implementation costs, and $11 million related to incremental performance-based compensation expense and costs associated with a litigation settlement. The prior year quarter included costs incurred to implement initiatives related to the Profit Growth Plan and costs associated with the Company’s strategic review totaling $18 million.

MGM China

On September 1, 2016 the Company closed its acquisition of an additional 4.95% of the outstanding common shares of MGM China Holdings Limited ("MGM China") and now owns approximately 56% of MGM China’s outstanding common shares.

Key third quarter results for MGM China include:

-- Net revenues of $500 million, a 6% decrease compared to the prior year quarter;

-- Main floor table games revenue increased 21% compared to the prior year quarter;

VIP table games revenue decreased 26% due to a decrease in turnover of 14% compared to the prior year quarter, and hold percentage decreased to 3.0% in the current year quarter, compared to 3.7% in the prior year quarter;

Operating income increased 34% to $84 million, compared to operating income of $63 million in the prior year quarter;

Adjusted EBITDA increased 17% to $150 million, compared to $128 million in the prior year quarter, including $9 million of license fee expense in the current and prior year quarter; and

Operating margin increased by 499 basis points compared to the prior year quarter to 16.9%, and Adjusted EBITDA margin increased by 575 basis points compared to the prior year quarter to 30% as a result of an increase in main floor table games mix and continuous efforts to reduce costs.

In August 2016, MGM China paid a $58 million interim dividend, of which $30 million was distributed to 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,
2016
2015
(In thousands)
Borgata (through July 31, 2016)
$
14,243
$
31,784
CityCenter
12,382
16,459
Other
5,952
9,107
$
32,577
$
57,350

Our share of CityCenter Holdings, LLC ("CityCenter") operating results for the third quarter of 2016, including certain basis difference adjustments, was $12 million, which included $13 million related to our share of NV Energy exit expense representing CityCenter’s share of a charge associated with the Company’s strategic decision to exit the fully bundled sales system of NV Energy.

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

Net revenues from resort operations were $308 million, an 11% increase compared to the prior year quarter;

Operating income was $7 million in the current and prior year quarters and included $26 million of NV Energy exit expense in the current quarter as discussed above;

Adjusted EBITDA from resort operations increased 41% to $93 million compared to the prior year quarter, and was positively affected by approximately $11 million of incremental Adjusted EBITDA attributable to Profit Growth Plan initiatives;

-- Adjusted EBITDA at Aria increased 38% to $82 million compared to the prior year quarter;

Aria’s table games volume increased 5% and table games hold percentage was 25.4%, compared to 22.6% in the prior year quarter;

-- REVPAR at Aria increased 7% to $221 compared to the prior year quarter; and

REVPAR at Vdara increased 15% to $189 compared to the prior year quarter, and Adjusted EBITDA increased 50% to $10 million compared to the prior year quarter.

On August 1, 2016 the Company completed the previously announced acquisition of Boyd Gaming Corporation’s interest in Borgata Hotel Casino and Spa ("Borgata"). The acquisition closed on August 1, 2016, at which time the entity operating Borgata became a consolidated subsidiary of the Company and the real estate assets associated with Borgata were sold to MGP. As a result the Company’s indirect ownership percentage in MGM Growth Properties Operating Partnership LP (the "Operating Partnership") increased to 76.3%. Prior to the acquisition, the Company held a 50% interest in Borgata, which was accounted for under the equity method.

MGM Growth Properties

During the third quarter of 2016, the Company made rent payments to MGP in the amount of $154 million. On September 15, 2016, MGP’s Board of Directors declared a quarterly dividend of $0.3875 per Class A share totaling $22 million, which was paid on October 14, 2016 to holders of record on September 30, 2016. The Company concurrently received a $72 million distribution attributable to its ownership of units in the Operating Partnership.

On August 12, 2016, the Operating Partnership issued $500 million of 4.50% senior unsecured notes due 2026. The net proceeds were used to refinance amounts outstanding under the Operating Partnership’s revolving credit facility that were drawn in connection with the acquisition of Borgata with the remaining proceeds used for general corporate purposes. In addition, in October 2016, the Operating Partnership re-priced its term loan B facility at par. As a result of the re-pricing, the term loan B facility bears interest at LIBOR plus 2.75%, with a LIBOR floor of 0.75%, which represents a 50 basis point reduction compared to the prior rate of LIBOR plus 3.25%, with a LIBOR floor of 0.75%. The Operating Partnership will receive a further reduction in pricing to LIBOR plus 2.50%, with a LIBOR floor of 0.75% so long as it achieves minimum corporate family ratings of Ba3/BB-.

Financial Position

The Company’s cash balance at September 30, 2016 was $1.4 billion, which included $430 million at MGM China and $340 million at MGP. At September 30, 2016, the Company had $250 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $2.7 billion Operating Partnership senior credit facility, $1.8 billion outstanding under the $3 billion MGM China credit facility, and $425 million outstanding under the $525 million MGM National Harbor credit facility.

On August 19, 2016, the Company issued $500 million of 4.625% senior notes due 2026. The Company used the net proceeds from the offering, together with cash on hand, to redeem the $743 million 7.625% senior notes due 2017.

"We remain committed to strengthening our balance sheet and returning MGM Resorts to investment grade as we continue to maximize cash flow and grow the Company in a financially prudent manner," said Dan D’Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. "We believe that our strategic actions in the third quarter are aligned with these goals including opportunistically enhancing our capital structure through the issuance of notes at historically low levels, acquiring the remaining interest in Borgata, and increasing our exposure in the largest gaming market in the world through the purchase of an additional stake in MGM China."

Conference Call Details

MGM Resorts will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the Investors section or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 5010970. A replay of the call will be available through Monday, November 14, 2016. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10095493. The call will be archived at www.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at www.mgmresorts.investorroom.com for reference during its November 7, 2016 earnings call.

1
REVPAR is hotel revenue per available room.
2
"Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, NV Energy exit expense, goodwill impairment charges and property transactions, net. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts stock option plan, which is not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted EBITDA for MGM China. "Same-store Adjusted Property EBITDA" is Adjusted Property EBITDA related to operating resorts which were consolidated by the Company for both the entire current and prior year periods presented. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.
Management believes that while items excluded from Adjusted EBITDA, Adjusted Property EBITDA, and Same-store Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company’s earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company’s resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period.
In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA and Same-store Adjusted Property EBITDA as the primary measure of the Company’s operating resorts’ performance.
Adjusted EBITDA, Adjusted Property EBITDA and Same-store Adjusted Property EBITDA should not be construed as alternatives to operating income or net income, as indicators of our performance; or as alternatives to cash flows from operating activities, as measures of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA information may calculate Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA in a different manner.
Reconciliations of GAAP net income (loss) to Adjusted EBITDA and GAAP operating income (loss) to Adjusted Property EBITDA and Same-store Adjusted Property EBITDA are included in the financial schedules in this release.

About MGM Resorts International

MGM Resorts International (MGM) is one of the world’s leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company is in the process of developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts. MGM Resorts controls and holds a 76 percent economic interest in the operating partnership of MGM Growth Properties LLC (MGP), a premier triple-net lease real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts. The Company also owns 56 percent of MGM China Holdings Limited (HK: 2282), which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino. MGM Resorts is named among FORTUNE? Magazine’s 2016 list of World’s Most Admired Companies?. For more information about MGM Resorts International, visit the Company’s website at www.mgmresorts.com.

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company’s public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company’s expectations regarding future results (including REVPAR guidance), its ability to generate future cash flow growth and to execute on future development and other projects, such as the Profit Growth Plan, the expected results of the Profit Growth Plan, its ability to drive future growth across all room segments, and the Company’s ability to execute its strategic plan and improve its financial flexibility. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2016
2015
2016
2015
Revenues:
Casino
$
1,307,827
$
1,181,593
$
3,569,587
$
3,696,071
Rooms
530,331
466,032
1,518,721
1,415,955
Food and beverage
448,666
397,332
1,238,537
1,204,616
Entertainment
140,151
141,085
380,330
402,025
Retail
52,724
53,272
150,629
153,791
Other
148,470
126,585
400,115
390,954
Reimbursed costs
99,316
98,292
301,160
302,900
2,727,485
2,464,191
7,559,079
7,566,312
Less: Promotional allowances
(212,370)
(183,375)
(564,776)
(568,117)
2,515,115
2,280,816
6,994,303
6,998,195
Expenses:
Casino
696,329
699,569
1,957,203
2,220,804
Rooms
148,317
140,806
435,311
424,184
Food and beverage
252,108
236,988
712,856
701,636
Entertainment
108,464
107,478
299,579
308,874
Retail
27,105
26,767
73,191
79,261
Other
93,880
88,000
260,901
268,158
Reimbursed costs
99,316
98,292
301,160
302,900
General and administrative
371,950
340,495
1,001,900
1,002,376
Corporate expense
87,782
74,019
240,833
183,977
NV Energy exit expense
139,335
-
139,335
-
Preopening and start-up expenses
31,660
16,510
78,444
50,270
Property transactions, net
(1,268)
7,123
4,717
12,665
Gain on Borgata transaction
(429,778)
-
(429,778)
-
Depreciation and amortization
209,737
204,742
616,475
619,719
1,834,937
2,040,789
5,692,127
6,174,824
Income from unconsolidated affiliates
32,577
57,350
495,588
217,631
Operating income
712,755
297,377
1,797,764
1,041,002
Non-operating income (expense):
Interest expense, net of amounts capitalized
(168,048)
(191,781)
(533,069)
(611,288)
Non-operating items from unconsolidated affiliates
(11,132)
(22,968)
(45,229)
(59,745)
Other, net
(17,310)
(4,386)
(67,715)
(12,691)
(196,490)
(219,135)
(646,013)
(683,724)
Income before income taxes
516,265
78,242
1,151,751
357,278
Benefit for income taxes
44,995
16,493
15,205
76,570
Net income
561,260
94,735
1,166,956
433,848
Less: Net income attributable to noncontrolling interests
(25,641)
(28,310)
(90,185)
(100,114)
Net income attributable to MGM Resorts International
$
535,619
$
66,425
$
1,076,771
$
333,734
Per share of common stock:
Basic:
Net income attributable to MGM Resorts International
$
0.94
$
0.12
$
1.90
$
0.62
Weighted average shares outstanding
568,125
563,287
566,220
535,619
Diluted:
Net income attributable to MGM Resorts International
$
0.93
$
0.12
$
1.88
$
0.61
Weighted average shares outstanding
573,812
569,320
571,350
547,750
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
September 30,
December 31,
2016
2015
ASSETS
Current assets:
Cash and cash equivalents
$
1,446,158
$
1,670,312
Accounts receivable, net
492,426
480,559
Inventories
97,400
104,200
Income tax receivable
478
15,993
Prepaid expenses and other
177,886
137,685
Total current assets
2,214,348
2,408,749
Property and equipment, net
17,948,045
15,371,795
Other assets:
Investments in and advances to unconsolidated affiliates
1,196,543
1,491,497
Goodwill
1,815,209
1,430,767
Other intangible assets, net
4,137,475
4,164,781
Other long-term assets, net
393,666
347,589
Total other assets
7,542,893
7,434,634
$
27,705,286
$
25,215,178
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
232,490
$
182,031
Construction payable
306,969
250,120
Current portion of long-term debt
-
328,442
Accrued interest on long-term debt
115,977
165,914
Other accrued liabilities
1,475,199
1,311,444
Total current liabilities
2,130,635
2,237,951
Deferred income taxes, net
2,543,815
2,680,576
Long-term debt
12,786,420
12,368,311
Other long-term obligations
320,707
157,663
Redeemable noncontrolling interest
6,250
6,250
Stockholders’ equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares,
5,728
5,648
issued and outstanding 572,834,533 and 564,838,893 shares
Capital in excess of par value
5,651,160
5,655,886
Retained earnings (accumulated deficit)
521,142
(555,629)
Accumulated other comprehensive income
12,801
14,022
Total MGM Resorts International stockholders’ equity
6,190,831
5,119,927
Noncontrolling interests
3,726,628
2,644,500
Total stockholders’ equity
9,917,459
7,764,427
$
27,705,286
$
25,215,178
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,
2016
2015
2016
2015
Bellagio
$
342,952
$
303,494
$
1,005,503
$
924,355
MGM Grand Las Vegas
290,783
286,777
859,469
855,383
Mandalay Bay
266,943
232,172
735,104
701,109
The Mirage
151,622
141,007
449,258
440,512
Luxor
104,152
95,358
292,168
278,075
New York-New York
85,291
75,722
249,718
229,805
Excalibur
81,205
75,088
233,946
217,753
Monte Carlo
72,569
73,274
213,497
220,286
Circus Circus Las Vegas
69,514
62,643
187,706
177,497
MGM Grand Detroit
142,704
128,789
424,031
403,133
Beau Rivage
97,971
98,322
286,796
279,717
Gold Strike Tunica
41,942
42,152
124,166
121,873
Borgata (1)
151,006
-
151,006
-
Other resort operations (2)
-
21,390
-
70,065
Domestic resorts
1,898,654
1,636,188
5,212,368
4,919,563
MGM China
499,822
529,037
1,420,802
1,715,983
Management and other operations
116,639
115,591
361,133
362,649
$
2,515,115
$
2,280,816
$
6,994,303
$
6,998,195
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,
2016
2015
2016
2015
Bellagio
$
126,790
$
95,827
$
360,979
$
288,797
MGM Grand Las Vegas
82,760
62,182
261,143
200,038
Mandalay Bay
79,296
49,961
200,621
164,745
The Mirage
38,066
27,182
112,244
95,801
Luxor
29,685
21,695
81,130
62,322
New York-New York
30,274
24,831
91,655
77,040
Excalibur
27,076
21,273
75,907
59,598
Monte Carlo
18,764
21,372
61,884
63,738
Circus Circus Las Vegas
19,770
12,377
46,235
31,568
MGM Grand Detroit
44,024
33,372
127,856
109,723
Beau Rivage
25,292
26,679
76,127
66,784
Gold Strike Tunica
12,282
11,560
38,312
34,144
Borgata (1)
36,099
-
36,099
-
Other resort operations (2)
-
2,978
-
4,933
Domestic resorts
570,178
411,289
1,570,192
1,259,231
MGM China
149,868
128,225
383,187
408,898
Unconsolidated resorts (3)
32,577
57,350
495,588
217,631
Management and other operations
1,301
5,591
9,788
29,803
$
753,924
$
602,455
$
2,458,755
$
1,915,563
(1) Represents net revenues and Adjusted EBITDA of Borgata for the period from August 1, 2016 (the first day of the Company’s full ownership) through September 30, 2016
(2) Sold in 2015
(3) Represents the Company’s share of operating income (loss), adjusted for the effect of certain basis differences. Includes the Company’s share of Borgata results for the three and nine month periods ended September 30, 2015 and the one and seven months ended July 31, 2016
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended September 30, 2016
Operating
NV Energy exit
Preopening and
Property
Depreciation
Adjusted EBITDA
income (loss)
expense
start-up
transactions, net
and
expenses
and gain on
amortization
Borgata
transaction
Bellagio
$
81,805
$
23,815
$
-
$
(150)
$
21,320
$
126,790
MGM Grand Las Vegas
39,251
25,365
-
623
17,521
82,760
Mandalay Bay
26,641
29,123
223
797
22,512
79,296
The Mirage
14,438
13,813
-
16
9,799
38,066
Luxor
8,827
11,594
181
151
8,932
29,685
New York-New York
17,983
7,439
105
79
4,668
30,274
Excalibur
13,366
9,083
-
618
4,009
27,076
Monte Carlo
3,937
8,409
363
54
6,001
18,764
Circus Circus Las Vegas
4,923
10,694
-
104
4,049
19,770
MGM Grand Detroit
38,183
-
-
-
5,841
44,024
Beau Rivage
18,822
-
-
3
6,467
25,292
Gold Strike Tunica
9,788
-
-
10
2,484
12,282
Borgata (1)
22,830
-
51
79
13,139
36,099
Other resort operations (2)
-
-
-
-
-
-
Domestic resorts
300,794
139,335
923
2,384
126,742
570,178
MGM China
84,304
-
8,298
(1,148)
58,414
149,868
Unconsolidated resorts (3)
32,496
-
81
-
-
32,577
Management and other operations
(324)
-
-
-
1,625
1,301
417,270
139,335
9,302
1,236
186,781
753,924
Stock compensation
(11,123)
-
-
-
-
(11,123)
Corporate
306,608
-
22,358
(432,282)
22,956
(80,360)
$
712,755
$
139,335
$
31,660
$
(431,046)
$
209,737
$
662,441
Three Months Ended September 30, 2015
Operating
NV Energy exit
Preopening and
Property
Depreciation
Adjusted EBITDA
income (loss)
expense
start-up
transactions, net
and
expenses
amortization
Bellagio
$
72,646
$
-
$
-
$
153
$
23,028
$
95,827
MGM Grand Las Vegas
43,889
-
-
17
18,276
62,182
Mandalay Bay
29,180
-
-
1,506
19,275
49,961
The Mirage
16,390
-
-
2
10,790
27,182
Luxor
12,490
-
(1)
36
9,170
21,695
New York-New York
19,023
-
1
878
4,929
24,831
Excalibur
17,606
-
-
46
3,621
21,273
Monte Carlo
11,345
-
1
1,070
8,956
21,372
Circus Circus Las Vegas
8,504
-
-
9
3,864
12,377
MGM Grand Detroit
27,254
-
-
-
6,118
33,372
Beau Rivage
20,161
-
-
7
6,511
26,679
Gold Strike Tunica
8,617
-
-
5
2,938
11,560
Other resort operations
2,963
-
-
-
15
2,978
Domestic resorts
290,068
-
1
3,729
117,491
411,289
MGM China
62,833
-
3,491
139
61,762
128,225
Unconsolidated resorts (3)
56,380
-
970
-
-
57,350
Management and other operations
3,238
-
298
123
1,932
5,591
412,519
-
4,760
3,991
181,185
602,455
Stock compensation
(7,386)
-
-
-
-
(7,386)
Corporate
(107,756)
-
11,750
3,132
23,557
(69,317)
$
297,377
$
-
$
16,510
$
7,123
$
204,742
$
525,752
(1) Represents operating results of Borgata for the period from August 1, 2016 (the first day of the Company’s full ownership) through September 30, 2016
(2) Sold in 2015
(3) Represents the Company’s share of operating income (loss), adjusted for the effect of certain basis differences. Includes the Company’s share of Borgata results for the three months ended September 30, 2015 and the one month ended July 31, 2016
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Nine Months Ended September 30, 2016
Operating
NV Energy exit
Preopening and
Property
Depreciation
Adjusted EBITDA
income (loss)
expense
start-up
transactions, net
and
expenses
and gain on
amortization
Borgata
transaction
Bellagio
$
271,058
$
23,815
$
-
$
(89)
$
66,195
$
360,979
MGM Grand Las Vegas
180,806
25,365
-
1,123
53,849
261,143
Mandalay Bay
102,125
29,123
252
1,955
67,166
200,621
The Mirage
68,564
13,813
-
(397)
30,264
112,244
Luxor
39,873
11,594
1,625
524
27,514
81,130
New York-New York
68,476
7,439
477
179
15,084
91,655
Excalibur
51,076
9,083
-
3,587
12,161
75,907
Monte Carlo
30,208
8,409
508
206
22,553
61,884
Circus Circus Las Vegas
23,211
10,694
-
234
12,096
46,235
MGM Grand Detroit
110,029
-
-
-
17,827
127,856
Beau Rivage
56,472
-
-
(59)
19,714
76,127
Gold Strike Tunica
30,892
-
-
103
7,317
38,312
Borgata (1)
22,830
-
51
79
13,139
36,099
Other resort operations (2)
-
-
-
-
-
-
Domestic resorts
1,055,620
139,335
2,913
7,445
364,879
1,570,192
MGM China
183,209
-
20,746
123
179,109
383,187
Unconsolidated resorts (3)
492,420
-
3,168
-
-
495,588
Management and other operations
3,261
-
1,150
-
5,377
9,788
1,734,510
139,335
27,977
7,568
549,365
2,458,755
Stock compensation
(31,432)
-
-
-
-
(31,432)
Corporate
94,686
-
50,467
(432,629)
67,110
(220,366)
$
1,797,764
$
139,335
$
78,444
$
(425,061)
$
616,475
$
2,206,957
Nine Months Ended September 30, 2015
Operating
NV Energy exit
Preopening and
Property
Depreciation
Adjusted EBITDA
income (loss)
expense
start-up
transactions, net
and
expenses
amortization
Bellagio
$
220,097
$
-
$
-
$
337
$
68,363
$
288,797
MGM Grand Las Vegas
144,505
-
-
99
55,434
200,038
Mandalay Bay
104,064
-
-
2,662
58,019
164,745
The Mirage
59,970
-
50
1,302
34,479
95,801
Luxor
33,993
-
(2)
88
28,243
62,322
New York-New York
60,932
-
(74)
1,142
15,040
77,040
Excalibur
48,514
-
-
128
10,956
59,598
Monte Carlo
41,289
-
2
1,599
20,848
63,738
Circus Circus Las Vegas
19,582
-
281
9
11,696
31,568
MGM Grand Detroit
91,799
-
-
-
17,924
109,723
Beau Rivage
47,217
-
-
7
19,560
66,784
Gold Strike Tunica
25,280
-
-
14
8,850
34,144
Other resort operations
4,467
-
-
-
466
4,933
Domestic resorts
901,709
-
257
7,387
349,878
1,259,231
MGM China
192,805
-
10,332
968
204,793
408,898
Unconsolidated resorts (3)
215,218
-
2,413
-
-
217,631
Management and other operations
22,104
-
842
1,079
5,778
29,803
1,331,836
-
13,844
9,434
560,449
1,915,563
Stock compensation
(22,280)
-
-
-
-
(22,280)
Corporate
(268,554)
-
36,426
3,231
59,270
(169,627)
$
1,041,002
$
-
$
50,270
$
12,665
$
619,719
$
1,723,656
(1) Represents operating results of Borgata for the period from August 1, 2016 (the first day of the Company’s full ownership) through September 30, 2016
(2) Sold in 2015
(3) Represents the Company’s share of operating income (loss), adjusted for the effect of certain basis differences. Includes the Company’s share of Borgata results for the nine months ended September 30, 2015 and the seven months ended July 31, 2016
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2016
2015
2016
2015
Adjusted EBITDA
$
662,441
$
525,752
$
2,206,957
$
1,723,656
NV Energy exit expense
(139,335)
-
(139,335)
-
Preopening and start-up expenses
(31,660)
(16,510)
(78,444)
(50,270)
Property transactions, net
1,268
(7,123)
(4,717)
(12,665)
Gain on Borgata transaction
429,778
-
429,778
-
Depreciation and amortization
(209,737)
(204,742)
(616,475)
(619,719)
Operating income
712,755
297,377
1,797,764
1,041,002
Non-operating income (expense):
Interest expense, net of amounts capitalized
(168,048)
(191,781)
(533,069)
(611,288)
Other, net
(28,442)
(27,354)
(112,944)
(72,436)
(196,490)
(219,135)
(646,013)
(683,724)
Income before income taxes
516,265
78,242
1,151,751
357,278
Benefit for income taxes
44,995
16,493
15,205
76,570
Net income
561,260
94,735
1,166,956
433,848
Less: Net income attributable to noncontrolling interests
(25,641)
(28,310)
(90,185)
(100,114)
Net income attributable to MGM Resorts International
$
535,619
$
66,425
$
1,076,771
$
333,734
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,
2016
2015
2016
2015
Domestic resorts Adjusted Property EBITDA
$
570,178
$
411,289
$
1,570,192
$
1,259,231
Adjusted Property EBITDA related to Borgata
(36,099)
-
(36,099)
-
Adjusted Property EBITDA related to other resort operations
-
(2,978)
-
(4,933)
Domestic resorts same-store Adjusted Property EBITDA
$
534,079
$
408,311
$
1,534,093
$
1,254,298
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,
2016
2015
2016
2015
Bellagio
Occupancy %
96.7%
96.6%
94.4%
93.9%
Average daily rate (ADR)
$267
$245
$274
$259
Revenue per available room (REVPAR)
$258
$237
$259
$243
MGM Grand Las Vegas
Occupancy %
97.9%
98.0%
94.8%
95.8%
ADR
$169
$154
$176
$164
REVPAR
$166
$151
$167
$157
Mandalay Bay
Occupancy %
95.6%
94.3%
93.4%
92.5%
ADR
$207
$192
$213
$203
REVPAR
$198
$181
$199
$188
The Mirage
Occupancy %
97.9%
97.0%
95.9%
94.5%
ADR
$161
$155
$171
$165
REVPAR
$157
$151
$164
$156
Luxor
Occupancy %
98.5%
96.8%
96.8%
95.1%
ADR
$112
$99
$111
$104
REVPAR
$110
$96
$107
$99
New York-New York
Occupancy %
99.4%
98.7%
98.3%
98.6%
ADR
$137
$122
$138
$128
REVPAR
$136
$121
$136
$126
Excalibur
Occupancy %
96.6%
95.5%
95.1%
94.3%
ADR
$98
$88
$96
$87
REVPAR
$95
$84
$91
$82
Monte Carlo
Occupancy %
98.4%
98.2%
97.7%
97.3%
ADR
$125
$113
$125
$118
REVPAR
$123
$111
$122
$115
Circus Circus Las Vegas
Occupancy %
91.4%
88.0%
85.0%
85.0%
ADR
$81
$71
$79
$69
REVPAR
$74
$62
$67
$59
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2016
2015
2016
2015
Aria
$
261,052
$
235,929
$
756,577
$
727,012
Vdara
30,918
26,769
90,552
83,491
Mandarin Oriental
16,002
14,126
49,221
45,735
Resort operations
307,972
276,824
896,350
856,238
Residential and other operations
495
1,598
2,644
29,989
$
308,467
$
278,422
$
898,994
$
886,227
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2016
2015
2016
2015
Adjusted EBITDA
$
92,179
$
64,965
$
260,301
$
213,457
NV Energy exit expense
(26,089)
-
(26,089)
-
Property transactions, net
(73)
30
1,939
159,062
Depreciation and amortization
(58,790)
(57,897)
(256,486)
(173,542)
Operating income (loss)
7,227
7,098
(20,335)
198,977
Non-operating income (expense):
Interest expense, net of amounts capitalized
(14,518)
(18,262)
(46,522)
(54,612)
Other, net
(64)
(103)
(3,217)
117
(14,582)
(18,365)
(49,739)
(54,495)
Net income (loss) from continuing operations
(7,355)
(11,267)
(70,074)
144,482
Discontinued operations
Income (loss) from operations of discontinued
component
(521)
5,349
399,514
17,355
Net income (loss)
$
(7,876)
$
(5,918)
$
329,440
$
161,837
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended September 30, 2016
Operating income (loss)
NV Energy exit
Preopening and
Property
Depreciation
Adjusted EBITDA
expense
start-up
transactions, net
and
expenses
amortization
Aria
$
9,604
$
23,320
$
-
$
(3)
$
48,698
$
81,619
Vdara
1,189
1,676
-
76
6,957
9,898
Mandarin Oriental
(3,083)
1,093
-
-
3,135
1,145
Resort operations
7,710
26,089
-
73
58,790
92,662
Residential, administration and other operations
(483)
-
-
-
-
(483)
$
7,227
$
26,089
$
-
$
73
$
58,790
$
92,179
Three Months Ended September 30, 2015
Operating income (loss)
NV Energy exit
Preopening and
Property transactions, net
Depreciation
Adjusted EBITDA
expense
start-up expenses
and
amortization
Aria
$
11,949
$
-
$
-
$
(30)
$
47,061
$
58,980
Vdara
(1,168)
-
-
-
7,753
6,585
Mandarin Oriental
(2,698)
-
-
-
3,075
377
Resort operations
8,083
-
-
(30)
57,889
65,942
Residential, administration and other operations
(985)
-
-
-
8
(977)
$
7,098
$
-
$
-
$
(30)
$
57,897
$
64,965
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Nine Months Ended September 30, 2016
Operating
NV Energy exit
Preopening and
Property
Depreciation
Adjusted EBITDA
income (loss)
expense
start-up
transactions, net
and
expenses
amortization
Aria
$
(17,955)
$
23,320
$
-
$
(475)
$
226,287
$
231,177
Vdara
4,649
1,676
-
(253)
20,865
26,937
Mandarin Oriental
(6,067)
1,093
-
-
9,334
4,360
Resort operations
(19,373)
26,089
-
(728)
256,486
262,474
Residential, administration and other operations
(962)
-
-
(1,211)
-
(2,173)
$
(20,335)
$
26,089
$
-
$
(1,939)
$
256,486
$
260,301
Nine Months Ended September 30, 2015
Operating income (loss)
NV Energy exit
Preopening and
Property
Depreciation
Adjusted EBITDA
expense
start-up
transactions, net
and
expenses
amortization
Aria
$
41,790
$
-
$
-
$
918
$
141,114
$
183,822
Vdara
(1,152)
-
-
-
23,415
22,263
Mandarin Oriental
(5,655)
-
-
-
9,169
3,514
Resort operations
34,983
-
-
918
173,698
209,599
Residential, administration and other operations
163,994
-
-
(159,980)
(156)
3,858
$
198,977
$
-
$
-
$
(159,062)
$
173,542
$
213,457
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - HOTEL STATISTICS
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2016
2015
2016
2015
Aria
Occupancy %
95.5%
94.5%
93.2%
93.0%
ADR
$231
$219
$243
$232
REVPAR
$221
$207
$226
$216
Vdara
Occupancy %
95.9%
92.8%
93.8%
93.3%
ADR
$197
$176
$202
$185
REVPAR
$189
$164
$190
$172

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SOURCE MGM Resorts International

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