MGM
$33.45
MGM Resorts International
$.11
.33%
Earnings Details
3rd Quarter September 2017
Wednesday, November 08, 2017 7:45:00 AM
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Summary

MGM Resorts International Misses

MGM Resorts International (MGM) reported 3rd Quarter September 2017 earnings of $0.33 per share on revenue of $2.8 billion. The consensus earnings estimate was $0.33 per share on revenue of $2.8 billion. The Earnings Whisper number was $0.36 per share. Revenue grew 12.4% 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
$0.33
Earnings Whisper
$0.36
Consensus Estimate
$0.33
Reported Revenue
$2.83 Bil
Revenue Estimate
$2.77 Bil
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, 2017.

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

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

Financial Highlights:

Diluted earnings per share for the third quarter of 2017 of $0.26, compared to $0.93 in the prior year quarter, which included a benefit of $0.60 related to a $430 million gain on the Borgata acquisition and a $0.20 charge related to the NV Energy exit. The third quarter of 2017 included a non-cash charge of $38 million ($0.07 per share) related to foreign tax credit valuation while the prior year quarter included a net non-cash benefit of $133 million ($0.23 per share) related to foreign tax credit valuation and remeasurement of Macau deferred tax liabilities;

Net revenues increase of 18% over the prior year quarter at the Company’s domestic resorts to $2.2 billion and an increase of 4% on a same-store basis, excluding contributions from Borgata and MGM National Harbor;

REVPAR(1) growth of 4.2% over the prior year quarter at the Company’s Las Vegas Strip resorts;

Operating income of $546 million at the Company’s domestic resorts, an 82% increase over the prior year quarter, which included $139 million related to the NV Energy exit expense;

Net income attributable to MGM Resorts of $149 million, compared to $536 million in the prior year quarter, which included a $430 million gain on the Borgata acquisition;

Adjusted Property EBITDA(2) growth of 25% over the prior year quarter to $714 million at the Company’s domestic resorts, and an increase of 12% on a same-store basis;

Same-store operating margin of 25.8% in the current quarter at the Company’s domestic resorts, an increase of 987 basis points compared to the prior year quarter;

Same-store Adjusted Property EBITDA margin of 33.0% at the Company’s domestic resorts, an increase of 241 basis points compared to the prior year quarter;

MGM China operating income of $35 million compared to $84 million in the prior year quarter, and Adjusted EBITDA of $118 million, a 21% decrease compared to the prior year quarter; and a 2% increase compared to the second quarter of 2017;

CityCenter operating income of $51 million and Adjusted EBITDA of $107 million, a 17% increase in Adjusted EBITDA compared to the prior year quarter; and

-- Over $500 million returned to shareholders through buybacks and dividends year to date.

Certain Items Affecting Third Quarter Results

The following table lists certain other items that affect the comparability of the current and prior year quarterly results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):

Three Months Ended September 30,
2017
2016
NV Energy exit expense
$
--
$
(0.18)
Preopening and start-up expenses
(0.03)
(0.03)
Property transactions, net
(0.01)
--
Gain on Borgata Transaction
--
0.60
Income from unconsolidated affiliates:
CityCenter NV Energy exit expense
--
(0.02)
Non-operating expense:
Loss on retirement of long-term debt
(0.04)
(0.02)

Domestic Resorts

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

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

Three Months Ended September 30,
2017
2016
(Dollars in millions)
Table Games Drop
$
1,003
$
897
Table Games Win %
26.8
%
25.0
%
Slot Handle
$
3,211
$
3,169
Slot Hold %
8.7
%
8.7
%

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

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

Three Months Ended September 30,
2017
2016
Occupancy %
95
%
97
%
Average Daily Rate (ADR)
$
164
$
155
Revenue per Available Room (REVPAR)
$
156
$
150

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

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

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

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

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

MGM China

Key third quarter results for MGM China include:

-- Net revenues of $471 million, a 6% decrease compared to the prior year quarter;

-- Net revenues increased 5% when compared to $449 million in the second quarter of 2017;

Main floor table games revenue decreased 11% compared to the prior year quarter due to a 3% decrease in volume and a decrease in hold percentage to 18.4% in the current year quarter from 20.1% in the prior year quarter;

VIP table games revenue decreased 3% compared to the prior year quarter due to a 6% decrease in turnover, partially offset by an increase in hold percentage to 3.3% in the current year quarter from 3.0% in the prior year quarter;

-- Operating income was $35 million compared to $84 million in the prior year quarter;

Adjusted EBITDA decreased 21% to $118 million compared to $150 million in the prior year quarter, including $8 million of license fee expense in the current year quarter and $9 million in the prior year quarter;

Adjusted EBITDA increased 2% when compared to $116 million in the second quarter of 2017, including $8 million of license fee expense in the second quarter of 2017; and

Operating margin was 7.4% in the current year quarter, and Adjusted EBITDA margin was 25.1% compared to 30.0% in the prior year quarter.

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

Unconsolidated Affiliates

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

Three Months Ended September 30,
2017
2016
(In thousands)
CityCenter
$
34,584
$
12,382
Borgata (through July 31, 2016)
--
14,243
Other
3,117
5,952
$
37,701
$
32,577

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

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

Net revenues from resort operations were $322 million, a 5% increase compared to the prior year quarter, due primarily to an increase in casino revenues and rooms revenues;

Operating income from resort operations was $52 million compared to operating income of $8 million in the prior year quarter, which included $26 million of NV Energy exit expense;

Adjusted EBITDA from resort operations was $108 million, a 17% increase compared to the prior year quarter;

Aria’s table games volume increased 5% and table games hold percentage was 23.5% compared to 25.4% in the prior year quarter;

-- Aria’s slots revenue increased 3% compared to the prior year quarter;

-- REVPAR at Aria increased 8% to $239, compared to the prior year quarter; and

REVPAR at Vdara increased 4% to $195, compared to the prior year quarter, and Adjusted EBITDA increased 9% compared to the prior year quarter to $11 million.

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

MGM Growth Properties

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

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

MGM Resorts Dividend and Share Repurchases

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

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

Financial Position

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

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

Conference Call Details

MGM Resorts will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through http://mgmresorts.investorroom.com/webcasts or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 6575075. A replay of the call will be available through Wednesday, November 15, 2017. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10112169. The call will be archived at www.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at www.mgmresorts.investorroom.com for reference during the earnings call.

1 REVPAR is hotel revenue per available room.

2 "Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, NV Energy exit expense, gain on Borgata transaction, goodwill impairment charges, and property transactions, net. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts and MGP stock compensation plans, which are not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted EBITDA for MGM China. "Same-store Adjusted Property EBITDA" is Adjusted Property EBITDA related to operating resorts which were consolidated by the Company for both the entire current and prior year periods presented. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.

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

In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA and Same-store Adjusted Property EBITDA as the primary measure of the Company’s operating resorts’ performance.

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

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

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

About MGM Resorts International

MGM Resorts International (MGM) is an S&P 500? global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 27 unique hotel offerings including some of the most recognizable resort brands in the industry. The company is expanding throughout the U.S. and around the world, developing MGM Springfield in Massachusetts and MGM COTAI in Macau, and debuting the first international Bellagio branded hotel in Shanghai. The 77,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE? Magazine’s World’s Most Admired Companies?. For more information visit us at www.mgmresorts.com.

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

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Revenues:
Casino
$
1,543,693
$
1,307,827
$
4,454,145
$
3,569,587
Rooms
564,476
530,331
1,669,213
1,518,721
Food and beverage
481,656
448,666
1,392,671
1,238,537
Entertainment
149,536
140,151
418,244
380,330
Retail
59,141
52,724
163,947
150,629
Other
162,318
148,470
464,260
400,115
Reimbursed costs
102,380
99,316
301,888
301,160
3,063,200
2,727,485
8,864,368
7,559,079
Less: Promotional allowances
(236,460)
(212,370)
(687,712)
(564,776)
2,826,740
2,515,115
8,176,656
6,994,303
Expenses:
Casino
822,103
696,329
2,389,957
1,957,203
Rooms
157,293
148,317
464,864
435,311
Food and beverage
269,170
252,108
780,510
712,856
Entertainment
118,234
108,464
326,791
299,579
Retail
28,129
27,105
78,515
73,191
Other
95,971
93,880
281,859
260,901
Reimbursed costs
102,380
99,316
301,888
301,160
General and administrative
402,134
371,950
1,145,432
1,001,900
Corporate expense
88,506
87,782
241,087
240,833
NV Energy exit expense
-
139,335
(40,629)
139,335
Preopening and start-up expenses
29,349
31,660
65,508
78,444
Property transactions, net
7,711
(1,268)
22,650
4,717
Gain on Borgata transaction
-
(429,778)
-
(429,778)
Depreciation and amortization
249,600
209,737
744,123
616,475
2,370,580
1,834,937
6,802,555
5,692,127
Income from unconsolidated affiliates
37,701
32,577
117,987
495,588
Operating income
493,861
712,755
1,492,088
1,797,764
Non-operating income (expense):
Interest expense, net of amounts capitalized
(163,287)
(168,048)
(511,404)
(533,069)
Non-operating items from unconsolidated affiliates
(8,825)
(11,132)
(26,302)
(45,229)
Other, net
(30,138)
(17,310)
(31,706)
(67,715)
(202,250)
(196,490)
(569,412)
(646,013)
Income before income taxes
291,611
516,265
922,676
1,151,751
Benefit (provision) for income taxes
(115,115)
44,995
(251,551)
15,205
Net income
176,496
561,260
671,125
1,166,956
Less: Net income attributable to noncontrolling interests
(27,381)
(25,641)
(104,552)
(90,185)
Net income attributable to MGM Resorts International
$
149,115
$
535,619
$
566,573
$
1,076,771
Per share of common stock:
Basic:
Net income attributable to MGM Resorts International
$
0.26
$
0.94
$
0.99
$
1.90
Weighted average shares outstanding
573,527
568,125
574,262
566,220
Diluted:
Net income attributable to MGM Resorts International
$
0.26
$
0.93
$
0.97
$
1.88
Weighted average shares outstanding
580,676
573,812
580,941
571,350
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
September 30,
December 31,
2017
2016
ASSETS
Current assets:
Cash and cash equivalents
$
1,986,688
$
1,446,581
Accounts receivable, net
515,423
542,924
Inventories
101,242
97,733
Prepaid expenses and other
191,183
142,349
Total current assets
2,794,536
2,229,587
Property and equipment, net
19,134,748
18,425,023
Other assets:
Investments in and advances to unconsolidated affiliates
1,007,584
1,220,443
Goodwill
1,807,009
1,817,119
Other intangible assets, net
3,924,566
4,087,706
Other long-term assets, net
433,447
393,423
Total other assets
7,172,606
7,518,691
$
29,101,890
$
28,173,301
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
242,604
$
250,477
Construction payable
238,086
270,361
Income tax payable
6,013
10,654
Current portion of long-term debt
466,375
8,375
Accrued interest on long-term debt
121,650
159,028
Other accrued liabilities
1,661,032
1,594,526
Total current liabilities
2,735,760
2,293,421
Deferred income taxes, net
2,668,864
2,551,228
Long-term debt, net
13,026,927
12,979,220
Other long-term obligations
286,262
325,981
Redeemable noncontrolling interest
59,337
54,139
Stockholders’ equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares,
issued and outstanding 565,493,891 and 574,123,706 shares
5,655
5,741
Capital in excess of par value
5,390,071
5,653,575
Retained earnings
922,657
545,811
Accumulated other comprehensive income (loss)
(9,840)
15,053
Total MGM Resorts International stockholders’ equity
6,308,543
6,220,180
Noncontrolling interests
4,016,197
3,749,132
Total stockholders’ equity
10,324,740
9,969,312
$
29,101,890
$
28,173,301
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Bellagio
$
375,464
$
342,952
$
1,029,440
$
1,005,503
MGM Grand Las Vegas
305,214
290,783
871,029
859,469
Mandalay Bay
267,782
266,943
766,110
735,104
The Mirage
159,777
151,622
479,728
449,258
Luxor
109,927
104,152
313,127
292,168
New York-New York
91,350
85,291
270,018
249,718
Excalibur
87,138
81,205
248,911
233,946
Monte Carlo
57,434
72,569
195,285
213,497
Circus Circus Las Vegas
74,818
69,514
195,641
187,706
MGM Grand Detroit
140,041
142,704
426,948
424,031
Beau Rivage
98,055
97,971
281,625
286,796
Gold Strike Tunica
44,481
41,942
129,492
124,166
Borgata (1)
244,078
151,006
654,586
151,006
MGM National Harbor
179,606
-
530,553
-
Domestic resorts
2,235,165
1,898,654
6,392,493
5,212,368
MGM China
470,775
499,822
1,421,892
1,420,802
Management and other operations
120,800
116,639
362,271
361,133
$
2,826,740
$
2,515,115
$
8,176,656
$
6,994,303
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Bellagio
$
157,031
$
126,790
$
397,091
$
360,979
MGM Grand Las Vegas
85,847
82,760
253,571
261,143
Mandalay Bay
83,967
79,296
230,356
200,621
The Mirage
46,247
38,066
146,716
112,244
Luxor
36,930
29,685
102,645
81,130
New York-New York
35,752
30,274
102,888
91,655
Excalibur
33,076
27,076
90,527
75,907
Monte Carlo
9,420
18,764
48,658
61,884
Circus Circus Las Vegas
25,543
19,770
57,740
46,235
MGM Grand Detroit
42,312
44,024
132,329
127,856
Beau Rivage
27,400
25,292
68,992
76,127
Gold Strike Tunica
13,762
12,282
41,749
38,312
Borgata (1)
78,853
36,099
239,195
36,099
MGM National Harbor
37,449
-
106,569
-
Domestic resorts
713,589
570,178
2,019,026
1,570,192
MGM China
118,237
149,868
377,539
383,187
Unconsolidated resorts (2)
37,701
32,577
117,987
495,588
Management and other operations
4,365
1,301
24,378
9,788
$
873,892
$
753,924
$
2,538,930
$
2,458,755
(1) Represents net revenues and Adjusted Property EBITDA of Borgata for the period from August 1, 2016 (the first day of the Company’s full ownership) through September 30, 2016
(2) Represents the Company’s share of operating income (loss), adjusted for the effect of certain basis differences. Includes the Company’s share of Borgata results for the one and seven months ended July 31, 2016
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended September 30, 2017
Operating income (loss)
NV Energy exit expense
Preopening
Property
Depreciation
Adjusted EBITDA
and start-up
transactions,
and
expenses
net
amortization
Bellagio
$
131,413
$
-
$
-
$
722
$
24,896
$
157,031
MGM Grand Las Vegas
68,117
-
(1)
393
17,338
85,847
Mandalay Bay
62,325
-
-
271
21,371
83,967
The Mirage
36,018
-
-
96
10,133
46,247
Luxor
27,249
-
-
308
9,373
36,930
New York-New York
29,043
-
(154)
122
6,741
35,752
Excalibur
28,395
-
-
161
4,520
33,076
Monte Carlo
(5,792)
-
1,855
4,013
9,344
9,420
Circus Circus Las Vegas
21,276
-
2
30
4,235
25,543
MGM Grand Detroit
36,704
-
-
-
5,608
42,312
Beau Rivage
20,719
-
-
355
6,326
27,400
Gold Strike Tunica
11,494
-
-
-
2,268
13,762
Borgata
61,289
-
153
91
17,320
78,853
MGM National Harbor
17,811
-
24
-
19,614
37,449
Domestic resorts
546,061
-
1,879
6,562
159,087
713,589
MGM China
34,855
-
22,030
876
60,476
118,237
Unconsolidated resorts (1)
37,701
-
-
-
-
37,701
Management and other operations
1,952
-
-
-
2,413
4,365
620,569
-
23,909
7,438
221,976
873,892
Stock compensation
(12,099)
-
-
-
-
(12,099)
Corporate
(114,609)
-
5,440
273
27,624
(81,272)
$
493,861
$
-
$
29,349
$
7,711
$
249,600
$
780,521
Three Months Ended September 30, 2016
Operating income (loss)
NV Energy exit expense
Preopening and start-up expenses
Property
Depreciation
Adjusted EBITDA
transactions,
and
net and gain
amortization
on 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 (2)
22,830
-
51
79
13,139
36,099
Domestic resorts
300,794
139,335
923
2,384
126,742
570,178
MGM China
84,304
-
8,298
(1,148)
58,414
149,868
Unconsolidated resorts (1) (3)
32,496
-
81
-
-
32,577
Management and other operations
(324)
-
-
-
1,625
1,301
417,270
139,335
9,302
1,236
186,781
753,924
Stock compensation
(11,123)
-
-
-
-
(11,123)
Corporate
306,608
-
22,358
(432,282)
22,956
(80,360)
$
712,755
$
139,335
$
31,660
$
(431,046)
$
209,737
$
662,441
(1) Represents the Company’s share of operating income (loss), adjusted for the effect of certain basis differences.
(2) Represents operating results of Borgata for the period from August 1, 2016 (the first day of the Company’s full ownership) through September 30, 2016
(3) Includes the Company’s share of Borgata results for the one month ended July 31, 2016
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Nine Months Ended September 30, 2017
Operating income (loss)
NV Energy exit expense
Preopening
Property
Depreciation and amortization
Adjusted EBITDA
and start-up
transactions,
expenses
net
Bellagio
$
334,175
$
(6,970)
$
-
$
845
$
69,041
$
397,091
MGM Grand Las Vegas
206,395
(7,424)
6
1,237
53,357
253,571
Mandalay Bay
168,070
(8,524)
-
261
70,549
230,356
The Mirage
121,273
(4,043)
-
213
29,273
146,716
Luxor
76,151
(3,394)
-
1,472
28,416
102,645
New York-New York
82,488
(2,025)
(162)
305
22,282
102,888
Excalibur
79,457
(2,658)
-
419
13,309
90,527
Monte Carlo
943
(2,461)
2,904
14,003
33,269
48,658
Circus Circus Las Vegas
47,258
(3,130)
452
765
12,395
57,740
MGM Grand Detroit
115,248
-
-
-
17,081
132,329
Beau Rivage
50,317
-
-
360
18,315
68,992
Gold Strike Tunica
34,890
-
-
(22)
6,881
41,749
Borgata
180,266
-
1,430
1,311
56,188
239,195
MGM National Harbor
46,410
-
251
-
59,908
106,569
Domestic resorts
1,543,341
(40,629)
4,881
21,169
490,264
2,019,026
MGM China
151,084
-
45,188
1,208
180,059
377,539
Unconsolidated resorts (1)
117,987
-
-
-
-
117,987
Management and other operations
18,373
-
-
-
6,005
24,378
1,830,785
(40,629)
50,069
22,377
676,328
2,538,930
Stock compensation
(37,508)
-
-
-
-
(37,508)
Corporate
(301,189)
-
15,439
273
67,795
(217,682)
$
1,492,088
$
(40,629)
$
65,508
$
22,650
$
744,123
$
2,283,740
Nine Months Ended September 30, 2016
Operating income (loss)
NV Energy exit expense
Preopening and
Property
Depreciation and amortization
Adjusted EBITDA
start-up
transactions,
expenses
net and gain
on 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 (2)
22,830
-
51
79
13,139
36,099
Domestic resorts
1,055,620
139,335
2,913
7,445
364,879
1,570,192
MGM China
183,209
-
20,746
123
179,109
383,187
Unconsolidated resorts (1) (3)
492,420
-
3,168
-
-
495,588
Management and other operations
3,261
-
1,150
-
5,377
9,788
1,734,510
139,335
27,977
7,568
549,365
2,458,755
Stock compensation
(31,432)
-
-
-
-
(31,432)
Corporate
94,686
-
50,467
(432,629)
67,110
(220,366)
$
1,797,764
$
139,335
$
78,444
$
(425,061)
$
616,475
$
2,206,957
(1) Represents the Company’s share of operating income (loss), adjusted for the effect of certain basis differences.
(2) Represents operating results of Borgata for the period from August 1, 2016 (the first day of the Company’s full ownership) through September 30, 2016
(3) Includes the Company’s share of Borgata results for the seven months ended July 31, 2016
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Net income attributable to MGM Resorts International
$
149,115
$
535,619
$
566,573
$
1,076,771
Plus: Net income attributable to noncontrolling interests
27,381
25,641
104,552
90,185
Net income
176,496
561,260
671,125
1,166,956
Provision (benefit) for income taxes
115,115
(44,995)
251,551
(15,205)
Income before income taxes
291,611
516,265
922,676
1,151,751
Non-operating (income) expense:
Interest expense, net of amounts capitalized
163,287
168,048
511,404
533,069
Other, net
38,963
28,442
58,008
112,944
202,250
196,490
569,412
646,013
Operating income
493,861
712,755
1,492,088
1,797,764
NV Energy exit expense
-
139,335
(40,629)
139,335
Preopening and start-up expenses
29,349
31,660
65,508
78,444
Property transactions, net
7,711
(1,268)
22,650
4,717
Gain on Borgata transaction
-
(429,778)
-
(429,778)
Depreciation and amortization
249,600
209,737
744,123
616,475
Adjusted EBITDA
$
780,521
$
662,441
$
2,283,740
$
2,206,957
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF DOMESTIC RESORTS ADJUSTED PROPERTY EBITDA TO DOMESTIC RESORTS SAME-STORE ADJUSTED PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Domestic resorts Adjusted Property EBITDA
$
713,589
$
570,178
$
2,019,026
$
1,570,192
Adjusted Property EBITDA related to Borgata
(78,853)
(36,099)
(239,195)
(36,099)
Adjusted Property EBITDA related to MGM National Harbor
(37,449)
-
(106,569)
-
Domestic resorts same-store Adjusted Property EBITDA
$
597,287
$
534,079
$
1,673,262
$
1,534,093
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Bellagio
Occupancy %
96.1%
96.7%
94.5%
94.4%
Average daily rate (ADR)
$276
$267
$284
$274
Revenue per available room (REVPAR)
$266
$258
$268
$259
MGM Grand Las Vegas
Occupancy %
95.6%
97.6%
93.6%
94.4%
ADR
$187
$176
$192
$182
REVPAR
$179
$171
$180
$172
Mandalay Bay
Occupancy %
94.2%
95.6%
93.1%
93.4%
ADR
$213
$207
$221
$213
REVPAR
$201
$198
$206
$199
The Mirage
Occupancy %
97.7%
97.9%
95.4%
95.9%
ADR
$169
$161
$178
$171
REVPAR
$165
$157
$170
$164
Luxor
Occupancy %
96.3%
98.5%
95.2%
96.8%
ADR
$120
$112
$120
$111
REVPAR
$116
$110
$114
$107
New York-New York
Occupancy %
97.3%
99.4%
96.6%
98.3%
ADR
$150
$137
$149
$138
REVPAR
$146
$136
$144
$136
Excalibur
Occupancy %
96.2%
96.6%
94.1%
95.1%
ADR
$105
$98
$104
$96
REVPAR
$101
$95
$98
$91
Monte Carlo
Occupancy %
93.1%
98.4%
94.4%
97.7%
ADR
$128
$125
$127
$125
REVPAR
$119
$123
$120
$122
Circus Circus Las Vegas
Occupancy %
93.3%
91.4%
86.5%
85.0%
ADR
$89
$81
$86
$79
REVPAR
$83
$74
$75
$67
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Aria
$
272,857
$
261,052
$
814,814
$
756,577
Vdara
32,264
30,918
95,475
90,552
Mandarin Oriental
17,150
16,002
51,738
49,221
Resort operations
322,271
307,972
962,027
896,350
Other
-
495
-
2,644
$
322,271
$
308,467
$
962,027
$
898,994
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Net income (loss)
$
35,138
$
(7,876)
$
117,420
$
329,440
Less: Income from discontinued operations
-
521
-
(399,514)
Income (loss) from continuing operations
35,138
(7,355)
117,420
(70,074)
Non-operating (income) expense:
Interest expense, net of amounts capitalized
16,381
14,518
44,207
46,522
Other, net
(410)
64
3,295
3,217
15,971
14,582
47,502
49,739
Operating income (loss)
51,109
7,227
164,922
(20,335)
NV Energy exit expense
-
26,089
(8,250)
26,089
Property transactions, net
937
73
1,163
(1,939)
Depreciation and amortization
55,419
58,790
165,436
256,486
Adjusted EBITDA
$
107,465
$
92,179
$
323,271
$
260,301
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended September 30, 2017
Operating income (loss)
NV Energy exit expense
Property transactions, net
Depreciation and
Adjusted EBITDA
amortization
Aria
$
49,531
$
-
$
780
$
45,428
$
95,739
Vdara
3,750
-
157
6,859
10,766
Mandarin Oriental
(1,201)
-
-
3,132
1,931
Resort operations
52,080
-
937
55,419
108,436
Other
(971)
-
-
-
(971)
$
51,109
$
-
$
937
$
55,419
$
107,465
Three Months Ended September 30, 2016
Operating income (loss)
NV Energy exit expense
Property transactions, net
Depreciation and
Adjusted EBITDA
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
Other
(483)
-
-
-
(483)
$
7,227
$
26,089
$
73
$
58,790
$
92,179
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Nine Months Ended September 30, 2017
Operating income (loss)
NV Energy exit expense
Property transactions, net
Depreciation and
Adjusted EBITDA
amortization
Aria
$
160,548
$
(8,250)
$
1,005
$
135,468
$
288,771
Vdara
10,862
-
158
20,632
31,652
Mandarin Oriental
(3,306)
-
-
9,336
6,030
Resort operations
168,104
(8,250)
1,163
165,436
326,453
Other
(3,182)
-
-
-
(3,182)
$
164,922
$
(8,250)
$
1,163
$
165,436
$
323,271
Nine Months Ended September 30, 2016
Operating income (loss)
NV Energy exit expense
Property transactions, net
Depreciation and
Adjusted EBITDA
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
Other
(962)
-
(1,211)
-
(2,173)
$
(20,335)
$
26,089
$
(1,939)
$
256,486
$
260,301
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - HOTEL STATISTICS
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2017
2016
2017
2016
Aria
Occupancy %
93.1%
95.5%
92.9%
93.2%
ADR
$257
$231
$260
$243
REVPAR
$239
$221
$242
$226
Vdara
Occupancy %
91.9%
95.1%
90.9%
92.6%
ADR
$213
$197
$215
$202
REVPAR
$195
$187
$195
$187

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SOURCE MGM Resorts International

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