EX-99.1 2 mgm-ex991_6.htm EX-99.1 mgm-ex991_6.htm

Exhibit 99.1

                                                                  

 

MGM RESORTS INTERNATIONAL REPORTS FIRST QUARTER

FINANCIAL AND OPERATING RESULTS

 

 

Las Vegas, Nevada, April 29, 2019 – MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter ended March 31, 2019.

 

First Quarter 2019 Financial Highlights:

 

Consolidated Results

 

 

 

•

Consolidated net revenues increased 13% compared to the prior year quarter to $3.2 billion;

 

•

Consolidated operating income increased 3% compared to the prior year quarter to $370 million;

 

•

Net income attributable to MGM Resorts of $31 million, compared to net income attributable to MGM Resorts of $223 million in the prior year quarter;

 

•

Diluted earnings per share of $0.05 in the current quarter compared to diluted earnings per share of $0.38 in the prior year quarter;

 

•

The current quarter included non-cash income tax charges totaling $0.07 per share on a diluted basis resulting from remeasurement of Macau deferred taxes due to the extension of our sub-concession agreement in Macau, the recording of deferred state taxes resulting from the Empire City Casino transaction and adjustments to our foreign tax credit valuation allowance. The prior year quarter included non-cash income tax benefits totaling $0.17 per share on a diluted basis due to a measurement period adjustment for U.S. Tax Reform and the reversal of Macau shareholder dividend tax accruals; and

 

•

Consolidated Adjusted EBITDA(1) increased 5% to $740 million in the current quarter compared to $701 million in the prior year quarter.

 

“The first quarter came in slightly better than our expectations with consolidated net revenues up by 13% and Adjusted EBITDA up 5%,” said Jim Murren, Chairman and CEO of MGM Resorts International. “Our Las Vegas resorts experienced broad and diversified customer demand. Our non-gaming revenues grew by 4%. We had healthy gaming business outside of baccarat, but previously flagged factors such as a very strong baccarat business in the prior year period and a low win rate in the current period led to flat revenues and a 10% decrease in Adjusted Property EBITDA year over year. Our Regional properties performed exceptionally well with 24% growth in Adjusted Property EBITDA, or 9% on a same store basis. MGM Grand Detroit, MGM National Harbor and our Mississippi properties had strong quarters. MGM Cotai continued to ramp and contributed to the 26% growth in Adjusted Property EBITDA at MGM China. During the quarter, we were very pleased to receive the extension to our Macau sub-concession to June 2022. We remain deeply committed to Macau’s continued evolution into an international leisure and tourism destination.”

 

Mr. Murren continued, “We remain focused on achieving our 2020 targets of $3.6 billion to $3.9 billion in consolidated Adjusted EBITDA and significant growth in free cash flow. Our strategy to achieve these goals includes the continued ramping up of MGM Cotai, Park MGM and MGM Springfield, and the implementation of the MGM 2020 Plan. MGM 2020 is a company-wide initiative aimed at leveraging a more centralized organization to maximize profitability and lay the groundwork for the Company’s digital transformation to drive revenue growth. We are creating a streamlined, nimble organization that empowers leaders to make faster decisions. We are excited about our targeted growth opportunities in Japan, sports betting and interactive initiatives. At the same time, we are maintaining a disciplined approach to capital allocation and creating long term value for shareholders.”


Page 1 of 12

 

 

Las Vegas Strip Resorts

 

 

 

•

Net revenues of $1.4 billion in both the current and the prior year quarters; and

 

•

Adjusted Property EBITDA of $404 million, a 10% decrease compared to $449 million in the prior year quarter, due primarily to a decrease in casino revenue, and Adjusted Property EBITDA margin of 28.3%, a 311 basis point decrease compared to the prior year quarter.

 

Regional Operations

 

 

 

•

Net revenues increased 21% to $804 million including $78 million in contributions from the opening of MGM Springfield on August 24, 2018 and $37 million in contributions from the acquisition of Empire City Casino on January 29, 2019; and

 

•

Adjusted Property EBITDA of $207 million, a 24% increase compared the prior year quarter and Adjusted Property EBITDA margin of 25.7% in the current quarter, a 61 basis point increase compared to the prior year quarter.

 

MGM China

 

 

 

 

•

Net revenues increased 23% to $734 million including $301 million from a full quarter of operations at MGM Cotai compared to $85 million in the prior year quarter as the property opened on February 13, 2018; and

 

•

Adjusted Property EBITDA of $191 million, a 26% increase compared to the prior year quarter, reflecting a full quarter of operations and the addition of 25 new-to-market tables on January 1, 2019 at MGM Cotai.

“MGM 2020 is our key focus. We have developed a comprehensive roadmap and we expect to deliver on our 2020 plans and operating model transformation. This re-investment into our business is expected to result in Adjusted EBITDA uplift of $300 million in 2021, compared to when we launched the plan, with phase 1 of $200 million in 2020 and phase 2 of $100 million in 2021. We are making good progress,” said Corey Sanders, Chief Financial Officer of MGM Resorts. “We also continue to be focused on fortifying our balance sheet. Earlier this month, we raised $1 billion of senior notes at very attractive rates and used the proceeds to address our near-term maturities. We remain confident in our goal to get our consolidated net leverage to 3-4x by year end 2020.”

 

Certain Items Affecting First 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 March 31,

 

2019

 

 

2018

 

Preopening and start-up expenses

 

$

—

 

 

$

(0.07

)

Property transactions, net

 

 

(0.01

)

 

 

(0.01

)

Non-operating items from unconsolidated affiliates:

 

 

 

 

 

 

 

 

Change in fair value of CityCenter swaps

 

 

(0.01

)

 

 

—

 

 


Page 2 of 12

 

 

Las Vegas Strip Resorts

Casino revenue for the first quarter of 2019 decreased 13% compared to the prior year quarter at the Company’s Las Vegas Strip Resorts, due primarily to a 17% decrease in table games win.

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

 

Three Months Ended March 31,

 

2019

 

 

2018

 

% change

 

 

 

(Dollars in millions)

 

 

 

 

Table Games Drop

 

$

968

 

 

$

1,040

 

 

(7

)%

Table Games Win %

 

 

23.0

%

 

 

25.9

%

 

 

 

Slots Handle

 

$

3,051

 

 

$

2,985

 

 

2

%

Slots Hold %

 

 

9.1

%

 

 

8.8

%

 

 

 

 

Rooms revenue increased 5% compared to the prior year quarter at the Company’s Las Vegas Strip Resorts. Las Vegas Strip Resorts REVPAR(2) increased 3.7% compared to the prior year quarter.

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

 

Three Months Ended March 31,

 

2019

 

2018

% change

Occupancy %

 

90%

 

89%

 

Average Daily Rate (ADR)

 

$173

 

$168

3.5%

Revenue per Available Room (REVPAR)

 

$155

 

$150

3.7%

 

Food and beverage revenue increased 8% at the Company’s Las Vegas Strip Resorts compared to the prior year quarter due primarily to the opening of new outlets at Park MGM and NoMad Las Vegas.

 

Regional Operations

 

Casino revenue increased 23% compared to the prior year quarter at the Company’s Regional Operations, due primarily to the opening of MGM Springfield, the acquisition of Empire City Casino, and an increase in slots win at MGM National Harbor.

 

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

 

Three Months Ended March 31,

 

2019

 

 

2018

 

% change

 

 

 

(Dollars in millions)

 

 

 

 

Table Games Drop

 

$

1,013

 

 

$

923

 

 

10

%

Table Games Win %

 

 

19.5

%

 

 

19.6

%

 

 

 

Slots Handle

 

$

5,627

 

 

$

4,913

 

 

15

%

Slots Hold %

 

 

9.2

%

 

 

9.1

%

 

 

 

 

Food and beverage revenue increased 24% at the Company’s Regional Operations due primarily to the opening of MGM Springfield and the acquisition of Empire City Casino.


Page 3 of 12

 

 

MGM China

 

On March 6, 2019, as part of its regular dividend policy, the Board of Directors of MGM China Holdings Limited (“MGM China”) announced it will recommend a final dividend for 2018 of $16 million to MGM China shareholders subject to approval at the upcoming MGM China 2019 annual shareholders meeting, bringing the total 2018 dividend to $47 million including the interim dividend paid in September of 2018. If approved, MGM Resorts will receive $9 million, representing its 56% share of the dividend.

 

Key first quarter results for MGM China include:

 

 

•

Net revenues of $734 million, a 23% increase compared to the prior year quarter. The current quarter benefited from a full quarter of operations following the opening of MGM Cotai on February 13, 2018 and the addition of 25 new-to-market tables on January 1, 2019 at MGM Cotai, which contributed $301 million of net revenues;

 

•

Main floor table games win increased 35% compared to the prior year quarter due to a full quarter of operations at MGM Cotai, the addition of new tables discussed above, and a 310 basis point increase in win percentage;

 

•

VIP table games win increased 2% compared to the prior year quarter due to the opening of VIP junket rooms in the second half of 2018 at MGM Cotai;

 

•

Adjusted Property EBITDA increased 26% to $191 million compared to $152 million in the prior year quarter. The current quarter included $13 million of license fee expense compared to $10 million in the prior year quarter; and

 

•

Adjusted Property EBITDA margin was 26.0% in the current quarter compared to 25.5% in the prior year quarter, increasing primarily as a result of the continued ramp up of operations at MGM Cotai.

 

The following table shows key gaming statistics for MGM China:

 

Three Months Ended March 31,

 

2019

 

 

2018

 

% change

 

 

 

(Dollars in millions)

 

 

 

 

VIP Table Games Turnover

 

$

10,011

 

 

$

9,903

 

 

1

%

VIP Table Games Win %

 

 

3.4

%

 

 

3.4

%

 

 

 

Main Floor Table Games Drop

 

$

1,993

 

 

$

1,719

 

 

16

%

Main Floor Table Games Win %

 

 

22.3

%

 

 

19.2

%

 

 

 

Corporate Expense

Corporate expense, including normal share-based compensation for corporate employees, was $129 million in the first quarter of 2019, an increase of $30 million compared to the prior year quarter. The current quarter included $20 million in Empire City Casino acquisition costs, primarily related to transfer taxes and advisory fees, $12 million in costs incurred to implement the MGM 2020 Plan, and $3 million in finance modernization initiative costs.

Unconsolidated Affiliates

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

 

Three Months Ended March 31,

 

2019

 

 

2018

 

 

 

(In thousands)

 

CityCenter

 

$

34,849

 

 

$

27,992

 

Other

 

 

3,900

 

 

 

3,774

 

 

 

$

38,749

 

 

$

31,766

 

Page 4 of 12

 

 

In March 2019, the Board of Directors of CityCenter Holdings, LLC (“CityCenter”) approved a $180 million dividend consisting of a $116 million special dividend and a $64 million dividend as part of CityCenter’s annual dividend policy. MGM Resorts received $32 million in March 2019 and received the remaining $58 million of its 50% share of the total dividend in April 2019.

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

 

 

•

Net revenues were $344 million, a 13% increase compared to the prior year quarter, due to an increase in casino, rooms and food and beverage revenues;

 

•

Casino revenues at Aria increased 27% compared to the prior year quarter, due primarily to a 24% increase in table games win resulting from an increase in table games hold percentage to 26.3% in the current quarter compared to 20.8% in the prior year quarter;

 

•

REVPAR at Aria increased 6% compared to the prior year quarter to $259;

 

•

REVPAR at Vdara increased 1% compared to the prior year quarter to $202; and

 

•

Adjusted EBITDA from resort operations was $116 million, a 25% increase compared to the prior year quarter.

MGM Growth Properties

During the first quarter of 2019, the Company made rent payments to MGM Growth Properties Operating Partnership LP (“MGP Operating Partnership”) in the amount of $205 million and received distributions of $87 million from the MGP Operating Partnership. In March 2019, the Board of Directors of MGM Growth Properties LLC (“MGP”) approved a quarterly dividend of $0.465 per Class A share (an increase of approximately 4% based on a $1.86 dividend on an annualized basis) totaling $42 million, which was paid on April 15, 2019 to holders of record on March 29, 2019. The Company concurrently received a $97 million distribution attributable to its ownership of MGP Operating Partnership units.

In the current quarter, the Company recorded within Management and other operations $68 million in net revenues and $23 million in Adjusted Property EBITDA related to MGP’s Northfield casino.

In April 2019, MGP and MGM Resorts completed the previously announced transaction whereby MGM Resorts acquired the operating assets of the Hard Rock Rocksino Northfield Park from MGP and leased the real property from MGP. MGM Resorts officially rebranded the property as MGM Northfield Park.

 

MGM Resorts Dividend

On April 29, 2019, the Company’s Board of Directors approved a quarterly dividend of $0.13 per share totaling approximately $70 million. The dividend will be payable on June 14, 2019 to holders of record on June 10, 2019.

 

Financial Position

The Company’s cash balance at March 31, 2019 was $1.2 billion, which included $432 million at MGM China and $74 million at the MGP Operating Partnership. At March 31, 2019, the Company had $14.9 billion of principal amount of indebtedness outstanding, including $1.1 billion outstanding under its $2.3 billion senior secured credit facility, $2.3 billion outstanding under the $3.6 billion MGP Operating Partnership senior secured credit facility and $2.3 billion outstanding under the $2.7 billion MGM China credit facility.

In April 2019, the Company completed the issuance of $1.0 billion of 5.5% senior notes due 2027. The Company used the net proceeds from the offering to fund the purchase of $639 million in aggregate principal amount of its outstanding 6.75% senior notes due 2020 and $233 million in aggregate principal amount of its outstanding 5.25% senior notes due 2020 through the Company's previously announced cash tender offers.

Page 5 of 12

 

 

Conference Call Details

MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today which will include a brief discussion of the results followed by a question and answer period. The call will be accessible via the Internet through http://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 9675047. A replay of the call will be available through Monday, May 6, 2019. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10130230. The call will be archived at http://investors.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at http://investors.mgmresorts.com for reference during the earnings call.

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

Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. Management believes that while items excluded from Adjusted EBITDA, Adjusted Property EBITDA, and Adjusted Property EBITDA margin may be recurring in nature and should not be disregarded in evaluation of the Company’s earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company’s resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company’s operating resorts’ performance.

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

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

The Company does not provide reconciliations of Adjusted EBITDA, Adjusted Property EBITDA, or 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, and Adjusted Property EBITDA margin.

2REVPAR is hotel revenue per available room.


Page 6 of 12

 

 

*     *      *

 

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 30 unique hotel and destination gaming offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company recently acquired the operations of Empire City Casino in New York and Hard Rock Rocksino in Ohio, which was rebranded as MGM Northfield Park. In 2018, MGM Resorts opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai. The 83,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information visit us at www.mgmresorts.com.

 

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company’s expectations regarding future results and the Company’s financial outlook, the Company’s ability to generate free cash flow growth and further de-lever, and the Company’s ability to deliver on its 2020 targets and goals (including its Adjusted EBITDA targets). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS:

 

Investment Community

News Media

CATHERINE PARK

BRIAN AHERN

Executive Director of Investor Relations

Director of Communications

(702) 693-8711 or cpark@mgmresorts.com

media@mgmresorts.com

Page 7 of 12

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Casino

 

 

 

 

$

1,626,346

 

 

$

1,394,316

 

Rooms

 

 

 

 

 

574,215

 

 

 

539,480

 

Food and beverage

 

 

 

 

 

520,221

 

 

 

455,411

 

Entertainment, retail and other

 

 

 

 

 

344,374

 

 

 

329,750

 

Reimbursed costs

 

 

 

 

 

111,755

 

 

 

103,280

 

 

 

 

 

 

 

3,176,911

 

 

 

2,822,237

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Casino

 

 

 

 

 

902,757

 

 

 

762,649

 

Rooms

 

 

 

 

 

203,994

 

 

 

189,058

 

Food and beverage

 

 

 

 

 

400,239

 

 

 

353,389

 

Entertainment, retail and other

 

 

 

 

 

243,630

 

 

 

226,834

 

Reimbursed costs

 

 

 

 

 

111,755

 

 

 

103,280

 

General and administrative

 

 

 

 

 

525,112

 

 

 

417,890

 

Corporate expense

 

 

 

 

 

129,436

 

 

 

99,509

 

Preopening and start-up expenses

 

 

 

 

 

3,287

 

 

 

66,917

 

Property transactions, net

 

 

 

 

 

8,776

 

 

 

5,898

 

Depreciation and amortization

 

 

 

 

 

316,414

 

 

 

268,822

 

 

 

 

 

 

 

2,845,400

 

 

 

2,494,246

 

Income from unconsolidated affiliates

 

 

 

 

 

38,749

 

 

 

31,766

 

Operating income

 

 

 

 

 

370,260

 

 

 

359,757

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of amounts capitalized

 

 

 

 

 

(216,120

)

 

 

(167,909

)

Non-operating items from unconsolidated affiliates

 

 

 

 

 

(18,165

)

 

 

(9,010

)

Other, net

 

 

 

 

 

1,693

 

 

 

(1,916

)

 

 

 

 

 

 

(232,592

)

 

 

(178,835

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

 

 

 

137,668

 

 

 

180,922

 

Benefit (provision) for income taxes

 

 

 

 

 

(71,511

)

 

 

85,379

 

Net income

 

 

 

 

 

66,157

 

 

 

266,301

 

Less: Net income attributable to noncontrolling interests

 

 

 

 

 

(34,860

)

 

 

(42,857

)

Net income attributable to MGM Resorts International

 

 

 

 

$

31,297

 

 

$

223,444

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

$

0.05

 

 

$

0.39

 

Diluted

 

 

 

 

$

0.05

 

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

534,219

 

 

 

564,832

 

Diluted

 

 

 

 

 

537,506

 

 

 

571,970

 

 

Page 8 of 12

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

 

 

 

 

2019

 

 

2018

 

ASSETS

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

$

1,223,404

 

 

$

1,526,762

 

Accounts receivable, net

 

 

 

 

 

 

602,602

 

 

 

657,206

 

Inventories

 

 

 

 

 

 

111,302

 

 

 

110,831

 

Income tax receivable

 

 

 

 

 

 

18,536

 

 

 

28,431

 

Prepaid expenses and other

 

 

 

 

 

 

251,291

 

 

 

203,548

 

Total current assets

 

 

 

 

 

 

2,207,135

 

 

 

2,526,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

21,196,438

 

 

 

20,729,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

 

 

 

Investments in and advances to unconsolidated affiliates

 

 

 

 

 

 

730,996

 

 

 

732,867

 

Goodwill

 

 

 

 

 

 

2,001,646

 

 

 

1,821,392

 

Other intangible assets, net

 

 

 

 

 

 

4,046,756

 

 

 

3,944,463

 

Operating lease right-of-use assets, net

 

 

 

 

 

 

641,912

 

 

 

—

 

Other long-term assets, net

 

 

 

 

 

 

322,038

 

 

 

455,318

 

Total other assets

 

 

 

 

 

 

7,743,348

 

 

 

6,954,040

 

 

 

 

 

 

 

$

31,146,921

 

 

$

30,210,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

 

 

$

336,586

 

 

$

302,578

 

Construction payable

 

 

 

 

 

 

249,289

 

 

 

311,793

 

Current portion of long-term debt

 

 

 

 

 

 

2,548

 

 

 

43,411

 

Accrued interest on long-term debt

 

 

 

 

 

 

137,309

 

 

 

140,046

 

Other accrued liabilities

 

 

 

 

 

 

2,086,946

 

 

 

2,151,054

 

Total current liabilities

 

 

 

 

 

 

2,812,678

 

 

 

2,948,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes, net

 

 

 

 

 

 

1,566,931

 

 

 

1,342,538

 

Long-term debt, net

 

 

 

 

 

 

14,730,829

 

 

 

15,088,005

 

Other long-term obligations

 

 

 

 

 

 

208,329

 

 

 

259,240

 

Operating lease liabilities

 

 

 

 

 

 

510,951

 

 

 

—

 

Redeemable noncontrolling interest

 

 

 

 

 

 

99,338

 

 

 

102,250

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 537,156,480 and 527,479,528 shares

 

 

 

 

 

 

5,372

 

 

 

5,275

 

Capital in excess of par value

 

 

 

 

 

 

4,420,463

 

 

 

4,092,085

 

Retained earnings

 

 

 

 

 

 

2,384,977

 

 

 

2,423,479

 

Accumulated other comprehensive loss

 

 

 

 

 

 

(24,608

)

 

 

(8,556

)

Total MGM Resorts International stockholders' equity

 

 

 

 

 

 

6,786,204

 

 

 

6,512,283

 

                Noncontrolling interests

 

 

 

 

 

 

4,431,661

 

 

 

3,957,508

 

Total stockholders' equity

 

 

 

 

 

 

11,217,865

 

 

 

10,469,791

 

 

 

 

 

 

 

$

31,146,921

 

 

$

30,210,706

 

 

Page 9 of 12

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

 

 

2019

 

 

2018

Bellagio

 

 

 

 

 

$

338,126

 

 

$

360,788

MGM Grand Las Vegas

 

 

 

 

 

 

284,748

 

 

 

293,806

Mandalay Bay

 

 

 

 

 

 

225,573

 

 

 

244,565

The Mirage

 

 

 

 

 

 

155,987

 

 

 

145,659

Luxor

 

 

 

 

 

 

94,214

 

 

 

96,751

New York-New York

 

 

 

 

 

 

95,178

 

 

 

96,114

Excalibur

 

 

 

 

 

 

80,875

 

 

 

79,422

Park MGM

 

 

 

 

 

 

94,197

 

 

 

56,257

Circus Circus Las Vegas

 

 

 

 

 

 

59,290

 

 

 

58,742

  Las Vegas Strip Resorts

 

 

 

 

 

 

1,428,188

 

 

 

1,432,104

MGM Grand Detroit

 

 

 

 

 

 

154,239

 

 

 

147,535

Beau Rivage

 

 

 

 

 

 

102,792

 

 

 

96,695

Gold Strike Tunica

 

 

 

 

 

 

48,213

 

 

 

41,647

Borgata

 

 

 

 

 

 

184,629

 

 

 

192,441

MGM National Harbor

 

 

 

 

 

 

199,626

 

 

 

188,250

MGM Springfield

 

 

 

 

 

 

77,877

 

 

 

—

Empire City Casino (1)

 

 

 

 

 

 

36,569

 

 

 

—

  Regional Operations

 

 

 

 

 

 

803,945

 

 

 

666,568

MGM Macau

 

 

 

 

 

 

433,386

 

 

 

510,870

MGM Cotai

 

 

 

 

 

 

300,818

 

 

 

84,991

   MGM China

 

 

 

 

 

 

734,204

 

 

 

595,861

Management and other operations

 

 

 

 

 

 

210,574

 

 

 

127,704

 

 

 

 

 

 

$

3,176,911

 

 

$

2,822,237

 

 

(1)

For the three months ended March 31, 2019, represents net revenues of Empire City Casino for the period January 29-March 31 only.  

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP RESORTS

(Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

March 31,

 

March 31,

 

 

 

 

 

 

2019

 

2018

Bellagio

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

93.6%

 

93.5%

Average daily rate (ADR)

 

 

 

 

 

$294

 

$286

Revenue per available room (REVPAR)

 

 

 

 

 

$276

 

$268

MGM Grand Las Vegas

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

89.8%

 

91.3%

ADR

 

 

 

 

 

$195

 

$188

REVPAR

 

 

 

 

 

$175

 

$172

Mandalay Bay

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

90.9%

 

85.1%

ADR

 

 

 

 

 

$211

 

$219

REVPAR

 

 

 

 

 

$192

 

$186

The Mirage

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

91.3%

 

90.5%

ADR

 

 

 

 

 

$193

 

$181

REVPAR

 

 

 

 

 

$177

 

$164

Luxor

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

93.3%

 

93.7%

ADR

 

 

 

 

 

$121

 

$120

REVPAR

 

 

 

 

 

$113

 

$112

New York-New York

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

92.8%

 

96.3%

ADR

 

 

 

 

 

$161

 

$154

REVPAR

 

 

 

 

 

$149

 

$149

Excalibur

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

89.4%

 

90.6%

ADR

 

 

 

 

 

$106

 

$103

REVPAR

 

 

 

 

 

$95

 

$93

Park MGM

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

86.2%

 

87.5%

ADR

 

 

 

 

 

$156

 

$132

REVPAR

 

 

 

 

 

$135

 

$116

Circus Circus Las Vegas

 

 

 

 

 

 

 

 

Occupancy %

 

 

 

 

 

78.7%

 

78.7%

ADR

 

 

 

 

 

$92

 

$86

REVPAR

 

 

 

 

 

$72

 

$67

Page 10 of 12

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited) 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

2019

 

 

2018

 

Net income attributable to MGM Resorts International

 

 

$

31,297

 

 

$

223,444

 

Plus: Net income attributable to noncontrolling interests

 

 

 

34,860

 

 

 

42,857

 

Net income

 

 

 

66,157

 

 

 

266,301

 

  (Benefit) provision for income taxes

 

 

 

71,511

 

 

 

(85,379

)

Income before income taxes

 

 

 

137,668

 

 

 

180,922

 

Non-operating (income) expense:

 

 

 

 

 

 

 

 

 

Interest expense, net of amounts capitalized

 

 

 

216,120

 

 

 

167,909

 

Other, net

 

 

 

16,472

 

 

 

10,926

 

 

 

 

 

232,592

 

 

 

178,835

 

Operating income

 

 

 

370,260

 

 

 

359,757

 

Preopening and start-up expenses

 

 

 

3,287

 

 

 

66,917

 

Property transactions, net

 

 

 

8,776

 

 

 

5,898

 

Depreciation and amortization

 

 

 

316,414

 

 

 

268,822

 

Restructuring

 

 

 

41,098

 

 

 

—

 

Adjusted EBITDA

 

 

$

739,835

 

 

$

701,394

 

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

2019

 

 

2018

 

Bellagio

 

 

$

116,783

 

 

$

140,397

 

MGM Grand Las Vegas

 

 

 

70,674

 

 

 

90,081

 

Mandalay Bay

 

 

 

55,721

 

 

 

68,783

 

The Mirage

 

 

 

40,215

 

 

 

32,849

 

Luxor

 

 

 

29,395

 

 

 

28,989

 

New York-New York

 

 

 

37,194

 

 

 

36,911

 

Excalibur

 

 

 

27,031

 

 

 

27,050

 

Park MGM

 

 

 

13,976

 

 

 

9,203

 

Circus Circus Las Vegas

 

 

 

12,538

 

 

 

14,891

 

  Las Vegas Strip Resorts

 

 

 

403,527

 

 

 

449,154

 

MGM Grand Detroit

 

 

 

49,351

 

 

 

46,391

 

Beau Rivage

 

 

 

27,058

 

 

 

23,075

 

Gold Strike Tunica

 

 

 

17,126

 

 

 

12,409

 

Borgata

 

 

 

38,837

 

 

 

43,232

 

MGM National Harbor

 

 

 

50,389

 

 

 

42,106

 

MGM Springfield

 

 

 

9,386

 

 

 

—

 

Empire City Casino (1)

 

 

 

14,427

 

 

 

—

 

Regional Operations

 

 

 

206,574

 

 

 

167,213

 

MGM Macau

 

 

 

129,068

 

 

 

145,835

 

MGM Cotai

 

 

 

61,722

 

 

 

5,916

 

   MGM China

 

 

 

190,790

 

 

 

151,751

 

Unconsolidated resorts (2)

 

 

 

40,482

 

 

 

31,766

 

Management and other operations

 

 

 

30,131

 

 

 

7,845

 

Stock compensation

 

 

 

(16,295

)

 

 

(15,617

)

Corporate

 

 

 

(115,374

)

 

 

(90,718

)

 

 

 

$

739,835

 

 

$

701,394

 

 

 

(1)

For the three months ended March 31, 2019, represents Adjusted Property EBITDA of Empire City Casino for the period January 29-March 31 only.        

 

(2)

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

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 11 of 12

 

 

 

 

 

 

 

 

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

March 31,

 

 

March 31,

 

 

2019

 

 

2018

Aria

 

$

310,305

 

 

$

271,881

Vdara

 

 

33,215

 

 

 

32,469

 

 

$

343,520

 

 

$

304,350

 

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

 

 

 

Three Months Ended

 

 

March 31,

 

March 31,

 

 

2019

 

2018

Aria

 

 

 

 

Occupancy %

 

90.8%

 

89.3%

ADR

 

$286

 

$274

REVPAR

 

$259

 

$245

Vdara

 

 

 

 

Occupancy %

 

89.8%

 

91.6%

ADR

 

$225

 

$218

REVPAR

 

$202

 

$200

 

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2019

 

 

2018

 

Net income (loss)

 

$

17,972

 

 

$

(106,067

)

    Plus: Loss from discontinued operations

 

 

—

 

 

 

128,510

 

Net income from continuing operations

 

 

17,972

 

 

 

22,443

 

Non-operating (income) expense:

 

 

 

 

 

 

 

 

Interest expense, net of amounts capitalized

 

 

23,254

 

 

 

17,225

 

Other, net

 

 

11,300

 

 

 

(718

)

 

 

 

34,554

 

 

 

16,507

 

Operating income

 

 

52,526

 

 

 

38,950

 

  Property transactions, net

 

 

896

 

 

 

(1,046

)

  Depreciation and amortization

 

 

57,504

 

 

 

53,610

 

Restructuring

 

 

3,465

 

 

 

—

 

Adjusted EBITDA

 

$

114,391

 

 

$

91,514

 

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

March 31,

 

 

March 31,

 

 

2019

 

 

2018

Aria

 

$

105,168

 

 

$

81,806

Vdara

 

 

10,452

 

 

 

10,791

  Resort operations

 

 

115,620

 

 

 

92,597

Other

 

 

(1,229

)

 

 

(1,083)

 

 

$

114,391

 

 

$

91,514

 

Page 12 of 12