UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 4, 2015
MGM Resorts International
(Exact name of registrant as specified in its charter)
Delaware | 001-10362 | 88-0215232 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) |
3600 Las Vegas Boulevard South, Las Vegas, Nevada 89109
(Address of principal executive offices Zip Code)
(702) 693-7120
(Registrants telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
This current report on Form 8-K is being furnished to disclose the press release issued by the Registrant on May 4, 2015. The purpose of the press release, furnished as Exhibit 99.1, was to announce the Registrants results of operations for the quarter ended March 31, 2015. The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
(a) | Not applicable. |
(b) | Not applicable. |
(c) | Not applicable. |
(d) | Exhibits: |
99.1 | Press release of the Registrant dated May 4, 2015, announcing financial results for the quarter ended March 31, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
MGM Resorts International | ||||
Date: May 4, 2015 | By: | /s/Robert C. Selwood | ||
Robert C. Selwood | ||||
Executive Vice President and Chief Accounting Officer |
Exhibit 99.1
MGM RESORTS INTERNATIONAL REPORTS FIRST QUARTER
FINANCIAL RESULTS
MGM Resorts International Strengthens its Financial Position Through Conversion of its
4.25% Convertible Senior Notes and a CityCenter $400 Million Special Dividend
Las Vegas, Nevada, May 4, 2015 MGM Resorts International (NYSE: MGM) today reported financial results for the quarter ended March 31, 2015.
I am pleased to report that net income attributable to MGM Resorts increased by 65% and earnings per share increased by $0.13 year over year. MGM Resorts achieved Las Vegas Strip REVPAR growth of 1% over a very robust prior year quarter comparison of 14%. Our regional properties achieved strong EBITDA growth of 10% year over year, while MGM China maintained market share. With the anticipated difficult comparison of the first quarter behind us, we continue to see strong forward trends for the rest of the year in Las Vegas, said Jim Murren, Chairman & CEO of MGM Resorts International. We are actively improving our balance sheet with the recent announcement of a special dividend and regular dividend policy from CityCenter, the conversion of approximately $1.45 billion in convertible notes into equity and the agreement to amend and extend MGM Chinas credit facility.
Key results for the first quarter of 2015 include the following:
| Net revenue at the Companys wholly owned domestic resorts was $1.6 billion, an increase of half a percent compared to the prior year quarter; |
| Slots revenue at wholly owned domestic resorts increased 5% compared to the prior year quarter; |
| Rooms revenue at wholly owned domestic resorts increased 2% with a 1% increase in REVPAR(1) at the Companys Las Vegas Strip resorts compared to the prior year quarter; |
| The Companys wholly owned domestic resorts earned Adjusted Property EBITDA(2) of $390 million, a 3% decrease compared to the prior year quarter, partially due to a decrease in table games hold percentage; |
| MGM Chinas net revenue was $630 million and Adjusted EBITDA was $148 million, a decrease of 33% and 38% compared to the prior year quarter, respectively; and |
| CityCenter earned Adjusted EBITDA related to resort operations of $82 million, a 14% decrease compared to the prior year quarter, due primarily to a decrease in table games revenues. |
First Quarter Consolidated Results
Diluted earnings per share for the first quarter of 2015 was $0.33 compared to diluted earnings per share of $0.20 in the prior year first quarter.
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, | 2015 | 2014 | ||||||
Preopening and start-up expenses |
$ | (0.02 | ) | $ | (0.01 | ) | ||
Income from unconsolidated affiliates: |
||||||||
Harmon-related property transactions, net |
0.09 | |
Page 1 of 11
Wholly Owned Domestic Resorts
Casino revenue related to wholly owned domestic resorts increased 1% compared to the prior year quarter due primarily to a 5% increase in slots revenue as a result of a 9% increase in slots volume at the Companys regional resorts. Table games hold percentage in the first quarter of 2015 was 20.1% compared to 20.8% in the prior year quarter, which negatively affected Adjusted Property EBITDA by approximately $8 million.
Rooms revenue increased 2% compared to the prior year quarter with Las Vegas Strip REVPAR up 1%. The following table shows key hotel statistics for the Companys Las Vegas Strip resorts:
Three months ended March 31, | 2015 | 2014 | ||||||
Occupancy % |
90 | % | 92 | % | ||||
Average Daily Rate (ADR) |
$ | 152 | $ | 147 | ||||
Revenue per Available Room (REVPAR) |
$ | 136 | $ | 135 |
Food and beverage revenue increased 1% as a result of increased convention and banquet business and the opening of several new outlets. Entertainment revenue decreased 6% due primarily to a decrease in in-house shows and timing of certain arena events. Operating income for the Companys wholly owned domestic resorts decreased 3% compared to the prior year quarter.
MGM China
Key first quarter results for MGM China include the following:
| MGM China earned net revenue of $630 million, a 33% decrease compared to the prior year quarter; |
| Main floor table games revenue decreased 13% compared to the prior year quarter; |
| VIP table games revenue decreased 45% due to a decrease in VIP table games turnover of 51% compared to the prior year quarter, while hold percentage increased to 3.3% in the current year quarter compared to 3.0% in the prior year quarter; |
| MGM Chinas Adjusted EBITDA was $148 million, a decrease of 38% compared to the prior year quarter, including $11 million of license fee expense in the current year quarter compared to $16 million in the prior year quarter; and |
| Operating income was $72 million compared to $165 million in the prior year quarter. |
MGM China paid a $400 million dividend in March 2015, of which $204 million was distributed to MGM Resorts and $196 million was distributed to noncontrolling interests.
Income from Unconsolidated Affiliates
In April 2015, CityCenter Holdings, LLC (CityCenter) announced a $400 million special dividend and the adoption of an annual distribution policy, pursuant to which it will make annual distributions of up to 35% of excess cash flow subject to approval by the CityCenter board of directors. The special dividend was paid on April 30, 2015. MGM Resorts received $200 million, its 50% share of the special dividend.
Page 2 of 11
The following table summarizes information related to the Companys share of income from unconsolidated affiliates:
Three months ended March 31, | 2015 | 2014 | ||||||
(In thousands) | ||||||||
CityCenter |
$ | 101,601 | $ | 14,046 | ||||
Borgata |
11,983 | 3,839 | ||||||
Other |
3,797 | 4,730 | ||||||
|
|
|
|
|||||
$ | 117,381 | $ | 22,615 | |||||
|
|
|
|
CityCenters results included a $160 million gain related to proceeds received pursuant to a global settlement agreement with Perini Building Company, Inc. (Perini) and the remaining Perini subcontractors entered into in December 2014, which resolved all outstanding project lien claims and CityCenters counterclaims relating to the Harmon Hotel and Spa (Harmon), combined with certain Harmon-related insurance settlement proceeds. Excluding the impact from this gain, the Companys income from unconsolidated affiliates related to CityCenter was $22 million for the first quarter of 2015, compared to $14 million in the prior year quarter.
Results for CityCenter for the first quarter of 2015 include the following (see schedules accompanying this release for further detail on CityCenters first quarter results):
| Net revenue from resort operations decreased by 4% to $300 million compared to $313 million in the prior year quarter; |
| Adjusted EBITDA from resort operations was $82 million, a decrease of 14% compared to the prior year quarter; |
| Arias table games hold percentage was 24.3% compared to 26.8% in the prior year quarter, negatively affecting Adjusted EBITDA by approximately $6 million; |
| Slots revenue at Aria increased 6% compared to the prior year quarter; |
| Arias REVPAR was a record $219, a 4% increase compared to the prior year quarter; |
| Vdara reported record first quarter Adjusted EBITDA led by record REVPAR of $174; and |
| Crystals reported record Adjusted EBITDA of $12 million, an increase of 6% from the prior year quarter. |
CityCenter reported operating income of $182 million, including the gain from the Harmon settlement, for the first quarter of 2015 compared to operating income of $5 million in the prior year quarter.
Financial Position
Pro forma for the conversion of the convertible notes in April, MGM Resorts consolidated net debt decreased to $10.9 billion, lowering our consolidated leverage ratio to approximately 5 times, said Dan DArrigo, Executive Vice President, CFO and Treasurer of MGM Resorts International. With the conversion of the convertible notes into equity, distributions from MGM China and CityCenter and continued free cash flow growth, we are confident that we will be able to continue to improve our balance sheet as we execute on our future growth projects.
The Companys cash balance at March 31, 2015 was $2.2 billion, which included $469 million at MGM China. At March 31, 2015, the Company had $2.7 billion of borrowings outstanding under its $3.9 billion senior secured credit facility and $953 million outstanding under the $2.0 billion MGM China credit facility. On April 15, 2015, 99.97% of the Companys $1.45 billion 4.25% convertible senior notes were converted into shares of the Companys common stock.
Conference Call Details
MGM Resorts International 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 1535291. A replay of the call will be available through Tuesday, May 12, 2015. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10064559. The call will be archived at www.mgmresorts.com.
3
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 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. 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 and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Companys 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 Companys 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 Companys operating resorts performance.
Reconciliations of GAAP net income (loss) to Adjusted EBITDA and GAAP operating income (loss) to Adjusted Property EBITDA are included in the financial schedules in this release.
* * *
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the worlds 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. The Company also owns 51 percent of MGM China Holdings Limited, 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. For more information about MGM Resorts International, visit the Companys 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 Companys public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on managements current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding future business trends in the Las Vegas market, the Companys ability to generate free cash flow growth and execute on future growth projects, dividends the Company will receive from MGM China or CityCenter and future amendments and extensions to MGM Chinas credit facility. 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 Companys 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 | |
SARAH ROGERS |
CLARK DUMONT | |
Vice President Investor Relations |
Senior Vice President of Corporate Communications | |
(702) 693-8654 |
(702) 692-6888 or cdumont@mgmresorts.com |
Page 4 of 11
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended | ||||||||
March 31, 2015 |
March 31, 2014 |
|||||||
Revenues: |
||||||||
Casino |
$ | 1,278,502 | $ | 1,583,432 | ||||
Rooms |
459,425 | 452,386 | ||||||
Food and beverage |
384,101 | 383,392 | ||||||
Entertainment |
125,968 | 133,777 | ||||||
Retail |
45,037 | 44,616 | ||||||
Other |
126,550 | 125,427 | ||||||
Reimbursed costs |
101,060 | 94,975 | ||||||
|
|
|
|
|||||
2,520,643 | 2,818,005 | |||||||
Less: Promotional allowances |
(188,399 | ) | (187,607 | ) | ||||
|
|
|
|
|||||
2,332,244 | 2,630,398 | |||||||
|
|
|
|
|||||
Expenses: |
||||||||
Casino |
782,808 | 990,834 | ||||||
Rooms |
141,313 | 134,238 | ||||||
Food and beverage |
221,521 | 220,058 | ||||||
Entertainment |
96,999 | 98,937 | ||||||
Retail |
24,096 | 23,476 | ||||||
Other |
84,323 | 87,577 | ||||||
Reimbursed costs |
101,060 | 94,975 | ||||||
General and administrative |
328,173 | 319,246 | ||||||
Corporate expense |
50,356 | 53,351 | ||||||
Preopening and start-up expenses |
15,871 | 5,636 | ||||||
Property transactions, net |
1,589 | 558 | ||||||
Depreciation and amortization |
206,412 | 207,655 | ||||||
|
|
|
|
|||||
2,054,521 | 2,236,541 | |||||||
|
|
|
|
|||||
Income from unconsolidated affiliates |
117,381 | 22,615 | ||||||
|
|
|
|
|||||
Operating income |
395,104 | 416,472 | ||||||
|
|
|
|
|||||
Non-operating income (expense): |
||||||||
Interest expense, net of amounts capitalized |
(216,262 | ) | (209,387 | ) | ||||
Non-operating items from unconsolidated affiliates |
(19,011 | ) | (22,215 | ) | ||||
Other, net |
(3,490 | ) | (1,434 | ) | ||||
|
|
|
|
|||||
(238,763 | ) | (233,036 | ) | |||||
|
|
|
|
|||||
Income before income taxes |
156,341 | 183,436 | ||||||
Benefit for income taxes |
56,305 | 2,664 | ||||||
|
|
|
|
|||||
Net income |
212,646 | 186,100 | ||||||
Less: Net income attributable to noncontrolling interests |
(42,796 | ) | (83,448 | ) | ||||
|
|
|
|
|||||
Net income attributable to MGM Resorts International |
$ | 169,850 | $ | 102,652 | ||||
|
|
|
|
|||||
Per share of common stock: |
||||||||
Basic: |
||||||||
Net income attributable to MGM Resorts International |
$ | 0.35 | $ | 0.21 | ||||
|
|
|
|
|||||
Weighted average shares outstanding |
491,422 | 490,542 | ||||||
|
|
|
|
|||||
Diluted: |
||||||||
Net income attributable to MGM Resorts International |
$ | 0.33 | $ | 0.20 | ||||
|
|
|
|
|||||
Weighted average shares outstanding |
575,312 | 513,144 | ||||||
|
|
|
|
Page 5 of 11
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
March 31, 2015 |
December 31, 2014 |
|||||||
ASSETS | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 2,195,535 | $ | 1,713,715 | ||||
Cash deposits - original maturities longer than 90 days |
| 570,000 | ||||||
Accounts receivable, net |
461,751 | 473,345 | ||||||
Inventories |
103,286 | 104,011 | ||||||
Income tax receivable |
7,725 | 14,675 | ||||||
Prepaid expenses and other |
188,310 | 151,414 | ||||||
|
|
|
|
|||||
Total current assets |
2,956,607 | 3,027,160 | ||||||
|
|
|
|
|||||
Property and equipment, net |
14,561,951 | 14,441,542 | ||||||
Other assets: |
||||||||
Investments in and advances to unconsolidated affiliates |
1,661,444 | 1,559,034 | ||||||
Goodwill |
2,898,127 | 2,897,110 | ||||||
Other intangible assets, net |
4,309,206 | 4,364,856 | ||||||
Other long-term assets, net |
411,112 | 412,809 | ||||||
|
|
|
|
|||||
Total other assets |
9,279,889 | 9,233,809 | ||||||
|
|
|
|
|||||
$ | 26,798,447 | $ | 26,702,511 | |||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 187,325 | $ | 164,252 | ||||
Construction payable |
125,720 | 170,439 | ||||||
Current portion of long-term debt |
| 1,245,320 | ||||||
Deferred income taxes, net |
70,552 | 62,142 | ||||||
Accrued interest on long-term debt |
184,205 | 191,155 | ||||||
Other accrued liabilities |
1,327,959 | 1,574,617 | ||||||
|
|
|
|
|||||
Total current liabilities |
1,895,761 | 3,407,925 | ||||||
|
|
|
|
|||||
Deferred income taxes, net |
2,547,150 | 2,621,860 | ||||||
Long-term debt |
14,551,810 | 12,913,882 | ||||||
Other long-term obligations |
150,691 | 130,570 | ||||||
Stockholders equity: |
||||||||
Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 491,335,813 and 491,292,117 shares |
4,913 | 4,913 | ||||||
Capital in excess of par value |
4,192,684 | 4,180,922 | ||||||
Retained earnings (accumulated deficit) |
61,941 | (107,909 | ) | |||||
Accumulated other comprehensive income |
13,580 | 12,991 | ||||||
|
|
|
|
|||||
Total MGM Resorts International stockholders equity |
4,273,118 | 4,090,917 | ||||||
Noncontrolling interests |
3,379,917 | 3,537,357 | ||||||
|
|
|
|
|||||
Total stockholders equity |
7,653,035 | 7,628,274 | ||||||
|
|
|
|
|||||
$ | 26,798,447 | $ | 26,702,511 | |||||
|
|
|
|
Page 6 of 11
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended | ||||||||
March 31, 2015 |
March 31, 2014 |
|||||||
Bellagio |
$ | 301,936 | $ | 319,856 | ||||
MGM Grand Las Vegas |
264,826 | 261,664 | ||||||
Mandalay Bay |
226,935 | 219,384 | ||||||
The Mirage |
142,505 | 148,248 | ||||||
Luxor |
86,955 | 83,693 | ||||||
New York-New York |
75,884 | 72,968 | ||||||
Excalibur |
67,261 | 67,573 | ||||||
Monte Carlo |
71,867 | 68,611 | ||||||
Circus Circus Las Vegas |
51,384 | 48,725 | ||||||
MGM Grand Detroit |
133,315 | 133,148 | ||||||
Beau Rivage |
86,940 | 82,426 | ||||||
Gold Strike Tunica |
39,835 | 36,919 | ||||||
Other resort operations |
28,252 | 27,019 | ||||||
|
|
|
|
|||||
Wholly owned domestic resorts |
1,577,895 | 1,570,234 | ||||||
|
|
|
|
|||||
MGM China |
630,087 | 941,448 | ||||||
Management and other operations |
124,262 | 118,716 | ||||||
|
|
|
|
|||||
$ | 2,332,244 | $ | 2,630,398 | |||||
|
|
|
|
|||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA (In thousands) (Unaudited)
|
| |||||||
Three Months Ended | ||||||||
March 31, 2015 |
March 31, 2014 |
|||||||
Bellagio |
$ | 89,167 | $ | 105,149 | ||||
MGM Grand Las Vegas |
65,206 | 62,233 | ||||||
Mandalay Bay |
53,988 | 56,000 | ||||||
The Mirage |
30,520 | 35,419 | ||||||
Luxor |
17,299 | 17,978 | ||||||
New York-New York |
24,593 | 25,627 | ||||||
Excalibur |
16,542 | 18,890 | ||||||
Monte Carlo |
20,056 | 19,895 | ||||||
Circus Circus Las Vegas |
7,833 | 5,309 | ||||||
MGM Grand Detroit |
33,612 | 33,366 | ||||||
Beau Rivage |
18,390 | 14,641 | ||||||
Gold Strike Tunica |
11,550 | 9,567 | ||||||
Other resort operations |
1,123 | (1,228 | ) | |||||
|
|
|
|
|||||
Wholly owned domestic resorts |
389,879 | 402,846 | ||||||
|
|
|
|
|||||
MGM China |
148,456 | 240,725 | ||||||
Unconsolidated resorts(1) |
117,381 | 22,615 | ||||||
Management and other operations |
16,317 | 19,852 | ||||||
|
|
|
|
|||||
$ | 672,033 | $ | 686,038 | |||||
|
|
|
|
(1) | Represents the Companys share of operating income (loss), adjusted for the effect of certain basis differences. |
Page 7 of 11
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended March 31, 2015
Operating income (loss) |
Preopening and start-up expenses |
Property transactions, net |
Depreciation and amortization |
Adjusted EBITDA |
||||||||||||||||
Bellagio |
$ | 66,337 | $ | | $ | 197 | $ | 22,633 | $ | 89,167 | ||||||||||
MGM Grand Las Vegas |
46,726 | | (10 | ) | 18,490 | 65,206 | ||||||||||||||
Mandalay Bay |
35,321 | | 259 | 18,408 | 53,988 | |||||||||||||||
The Mirage |
17,874 | 54 | (1 | ) | 12,593 | 30,520 | ||||||||||||||
Luxor |
7,762 | (1 | ) | 50 | 9,488 | 17,299 | ||||||||||||||
New York-New York |
19,672 | (307 | ) | 264 | 4,964 | 24,593 | ||||||||||||||
Excalibur |
12,909 | | (19 | ) | 3,652 | 16,542 | ||||||||||||||
Monte Carlo |
14,314 | | 517 | 5,225 | 20,056 | |||||||||||||||
Circus Circus Las Vegas |
3,802 | 231 | | 3,800 | 7,833 | |||||||||||||||
MGM Grand Detroit |
27,739 | | | 5,873 | 33,612 | |||||||||||||||
Beau Rivage |
11,859 | | | 6,531 | 18,390 | |||||||||||||||
Gold Strike Tunica |
8,622 | | | 2,928 | 11,550 | |||||||||||||||
Other resort operations |
893 | | | 230 | 1,123 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Wholly owned domestic resorts |
273,830 | (23 | ) | 1,257 | 114,815 | 389,879 | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||
MGM China |
72,366 | 3,071 | 332 | 72,687 | 148,456 | |||||||||||||||
Unconsolidated resorts |
116,708 | 673 | | | 117,381 | |||||||||||||||
Management and other operations |
14,114 | 267 | | 1,936 | 16,317 | |||||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||
477,018 | 3,988 | 1,589 | 189,438 | 672,033 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock compensation |
(7,579 | ) | | | | (7,579 | ) | |||||||||||||
Corporate |
(74,335 | ) | 11,883 | | 16,974 | (45,478 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 395,104 | $ | 15,871 | $ | 1,589 | $ | 206,412 | $ | 618,976 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Operating income (loss) |
Preopening and start-up expenses |
Property transactions, net |
Depreciation and amortization |
Adjusted EBITDA |
||||||||||||||||
Bellagio |
$ | 81,851 | $ | | $ | (21 | ) | $ | 23,319 | $ | 105,149 | |||||||||
MGM Grand Las Vegas |
40,932 | 197 | (8 | ) | 21,112 | 62,233 | ||||||||||||||
Mandalay Bay |
34,411 | 802 | (2 | ) | 20,789 | 56,000 | ||||||||||||||
The Mirage |
22,592 | | 147 | 12,680 | 35,419 | |||||||||||||||
Luxor |
8,807 | 3 | (1 | ) | 9,169 | 17,978 | ||||||||||||||
New York-New York |
20,887 | 55 | 244 | 4,441 | 25,627 | |||||||||||||||
Excalibur |
15,455 | | (1 | ) | 3,436 | 18,890 | ||||||||||||||
Monte Carlo |
14,014 | 915 | 3 | 4,963 | 19,895 | |||||||||||||||
Circus Circus Las Vegas |
1,537 | | (11 | ) | 3,783 | 5,309 | ||||||||||||||
MGM Grand Detroit |
27,654 | | | 5,712 | 33,366 | |||||||||||||||
Beau Rivage |
8,166 | | | 6,475 | 14,641 | |||||||||||||||
Gold Strike Tunica |
6,365 | | | 3,202 | 9,567 | |||||||||||||||
Other resort operations |
(1,769 | ) | | | 541 | (1,228 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Wholly owned domestic resorts |
280,902 | 1,972 | 350 | 119,622 | 402,846 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
MGM China |
164,589 | 2,408 | (104 | ) | 73,832 | 240,725 | ||||||||||||||
Unconsolidated resorts |
22,596 | 19 | | | 22,615 | |||||||||||||||
Management and other operations |
16,961 | | | 2,891 | 19,852 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
485,048 | 4,399 | 246 | 196,345 | 686,038 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock compensation |
(6,699 | ) | | | | (6,699 | ) | |||||||||||||
Corporate |
(61,877 | ) | 1,237 | 312 | 11,310 | (49,018 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 416,472 | $ | 5,636 | $ | 558 | $ | 207,655 | $ | 630,321 | |||||||||||
|
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|
|
Page 8 of 11
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL
(In thousands)
(Unaudited)
Three Months Ended | ||||||||
March 31, 2015 |
March 31, 2014 |
|||||||
Adjusted EBITDA |
$ | 618,976 | $ | 630,321 | ||||
Preopening and start-up expenses |
(15,871 | ) | (5,636 | ) | ||||
Property transactions, net |
(1,589 | ) | (558 | ) | ||||
Depreciation and amortization |
(206,412 | ) | (207,655 | ) | ||||
|
|
|
|
|||||
Operating income |
395,104 | 416,472 | ||||||
|
|
|
|
|||||
Non-operating income (expense): |
||||||||
Interest expense, net of amounts capitalized |
(216,262 | ) | (209,387 | ) | ||||
Other, net |
(22,501 | ) | (23,649 | ) | ||||
|
|
|
|
|||||
(238,763 | ) | (233,036 | ) | |||||
|
|
|
|
|||||
Income before income taxes |
156,341 | 183,436 | ||||||
Benefit for income taxes |
56,305 | 2,664 | ||||||
|
|
|
|
|||||
Net income |
212,646 | 186,100 | ||||||
Less: Net income attributable to noncontrolling interests |
(42,796 | ) | (83,448 | ) | ||||
|
|
|
|
|||||
Net income attributable to MGM Resorts International |
$ | 169,850 | $ | 102,652 | ||||
|
|
|
|
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP
(Unaudited)
Three Months Ended | ||||||||
March 31, 2015 |
March 31, 2014 |
|||||||
Bellagio |
||||||||
Occupancy% |
88.2 | % | 92.3 | % | ||||
Average daily rate (ADR) |
$ | 268 | $ | 262 | ||||
Revenue per available room (REVPAR) |
$ | 236 | $ | 242 | ||||
MGM Grand Las Vegas |
||||||||
Occupancy% |
91.9 | % | 95.2 | % | ||||
ADR |
$ | 171 | $ | 160 | ||||
REVPAR |
$ | 157 | $ | 152 | ||||
Mandalay Bay |
||||||||
Occupancy% |
90.2 | % | 92.3 | % | ||||
ADR |
$ | 210 | $ | 202 | ||||
REVPAR |
$ | 189 | $ | 186 | ||||
The Mirage |
||||||||
Occupancy% |
90.0 | % | 94.6 | % | ||||
ADR |
$ | 173 | $ | 170 | ||||
REVPAR |
$ | 155 | $ | 161 | ||||
Luxor |
||||||||
Occupancy% |
92.2 | % | 93.3 | % | ||||
ADR |
$ | 105 | $ | 102 | ||||
REVPAR |
$ | 97 | $ | 95 | ||||
New York-New York |
||||||||
Occupancy% |
97.6 | % | 97.9 | % | ||||
ADR |
$ | 134 | $ | 126 | ||||
REVPAR |
$ | 131 | $ | 124 | ||||
Excalibur |
||||||||
Occupancy% |
89.9 | % | 91.2 | % | ||||
ADR |
$ | 85 | $ | 82 | ||||
REVPAR |
$ | 77 | $ | 75 | ||||
Monte Carlo |
||||||||
Occupancy% |
95.1 | % | 96.0 | % | ||||
ADR |
$ | 122 | $ | 116 | ||||
REVPAR |
$ | 116 | $ | 111 | ||||
Circus Circus Las Vegas |
||||||||
Occupancy% |
76.8 | % | 74.8 | % | ||||
ADR |
$ | 69 | $ | 63 | ||||
REVPAR |
$ | 53 | $ | 47 |
Page 9 of 11
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended | ||||||||
March 31, 2015 |
March 31, 2014 |
|||||||
Aria |
$ | 238,855 | $ | 253,689 | ||||
Vdara |
27,842 | 26,250 | ||||||
Crystals |
17,357 | 16,752 | ||||||
Mandarin Oriental |
16,011 | 16,441 | ||||||
|
|
|
|
|||||
Resort operations |
300,065 | 313,132 | ||||||
Residential operations |
18,174 | 23,285 | ||||||
|
|
|
|
|||||
$ | 318,239 | $ | 336,417 | |||||
|
|
|
|
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)
(In thousands)
(Unaudited)
Three Months Ended | ||||||||
March 31, 2015 |
March 31, 2014 |
|||||||
Adjusted EBITDA |
$ | 85,140 | $ | 95,058 | ||||
Preopening and start-up expenses |
| | ||||||
Property transactions, net |
159,689 | (2,575 | ) | |||||
Depreciation and amortization |
(63,223 | ) | (87,520 | ) | ||||
|
|
|
|
|||||
Operating income |
181,606 | 4,963 | ||||||
|
|
|
|
|||||
Non-operating income (expense): |
||||||||
Interest expense - other |
(18,178 | ) | (22,852 | ) | ||||
Other, net |
173 | (2,313 | ) | |||||
|
|
|
|
|||||
(18,005 | ) | (25,165 | ) | |||||
|
|
|
|
|||||
Net income (loss) |
$ | 163,601 | $ | (20,202 | ) | |||
|
|
|
|
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - HOTEL STATISTICS
(Unaudited)
Three Months Ended | ||||||||
March 31, 2015 |
March 31, 2014 |
|||||||
Aria |
||||||||
Occupancy% |
89.8 | % | 92.0 | % | ||||
ADR |
$ | 244 | $ | 229 | ||||
REVPAR |
$ | 219 | $ | 211 | ||||
Vdara |
||||||||
Occupancy% |
91.1 | % | 89.5 | % | ||||
ADR |
$ | 190 | $ | 185 | ||||
REVPAR |
$ | 174 | $ | 165 |
Page 10 of 11
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended March 31, 2015
Operating income (loss) |
Preopening and start-up expenses |
Property transactions, net |
Depreciation and amortization |
Adjusted EBITDA |
||||||||||||||||
Aria |
$ | 14,767 | $ | | $ | 287 | $ | 45,706 | $ | 60,760 | ||||||||||
Vdara |
(195 | ) | | | 7,835 | 7,640 | ||||||||||||||
Crystals |
4,849 | | 4 | 6,822 | 11,675 | |||||||||||||||
Mandarin Oriental |
(1,407 | ) | | | 3,040 | 1,633 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Resort operations |
18,014 | | 291 | 63,403 | 81,708 | |||||||||||||||
Residential operations |
4,149 | | | 35 | 4,184 | |||||||||||||||
Development and administration |
159,443 | | (159,980 | ) | (215 | ) | (752 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 181,606 | $ | | $ | (159,689 | ) | $ | 63,223 | $ | 85,140 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Operating income (loss) |
Preopening and start-up expenses |
Property transactions, net |
Depreciation and amortization |
Adjusted EBITDA |
||||||||||||||||
Aria |
$ | 7,556 | $ | | $ | 1,307 | $ | 65,629 | $ | 74,492 | ||||||||||
Vdara |
(2,951 | ) | | | 10,225 | 7,274 | ||||||||||||||
Crystals |
4,233 | | 79 | 6,742 | 11,054 | |||||||||||||||
Mandarin Oriental |
(2,710 | ) | | | 4,719 | 2,009 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Resort operations |
6,128 | | 1,386 | 87,315 | 94,829 | |||||||||||||||
Residential operations |
2,607 | | 1,114 | 205 | 3,926 | |||||||||||||||
Development and administration |
(3,772 | ) | | 75 | | (3,697 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 4,963 | $ | | $ | 2,575 | $ | 87,520 | $ | 95,058 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Page 11 of 11
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