Exhibit 99.1

 

 

 

MGM RESORTS INTERNATIONAL REPORTS SECOND QUARTER RESULTS

 

MGM China Reports Record Results and Announces $113 Million Dividend

Las Vegas Strip Results Continue to Trend Higher

Las Vegas, Nevada, August 6, 2013 -- MGM Resorts International (NYSE: MGM) today reported financial results for the quarter ended June 30, 2013. Loss per share for the second quarter of 2013 was $0.19 compared to a loss per share of $0.30 in the prior year second quarter. Comparability of the current and prior year consolidated results was affected by certain items discussed below.

“We continue to see broad-based Las Vegas improvement as our Strip EBITDA increased 15%, driven by a 7% increase in casino revenues and a 5% increase in hotel revenues,” said Jim Murren, MGM Resorts International Chairman and CEO. “A strong performance at MGM China led to another quarter of record results, driven by higher volumes in both mass market and VIP.”

Key results for the second quarter of 2013 include the following:

 

•

Consolidated net revenue increased 7% over the prior year quarter to $2.5 billion;

•

Consolidated casino revenue increased 11%;

•

Rooms revenue at wholly owned domestic resorts increased 5% with a 2.5% increase in REVPAR(1) at the Company’s Las Vegas Strip resorts;

•

Adjusted Property EBITDA(2) was $596 million, a 9% increase compared to the prior year quarter;

•

The Company’s wholly owned domestic resorts earned Adjusted Property EBITDA of $376 million, a 9% increase compared to the prior year quarter;

•

MGM China’s Adjusted EBITDA increased 10% to $205 million, which included $15 million of branding fee expense in the current quarter;

•

CityCenter’s Adjusted EBITDA related to resort operations was $67 million, a 6% decrease compared to the prior year quarter, as a result of lower table games hold percentage in the current year; and

•

Consolidated operating income increased 32% to $232 million compared to $175 million in the prior year quarter.

Certain Items Affecting Second Quarter Results

The following table lists 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 June 30,		2013				2012
Property transactions, net
Investment in Grand Victoria impairment		$	(0.05	)		$	(0.11	)
Corporate buildings impairment			(0.06	)			—
Other property transactions, net			(0.01	)			(0.01	)
Tax adjustments:
MGM China shareholder dividend tax			—				0.07
Deferred tax valuation allowance			(0.11	)			(0.13	)

The current year second quarter and prior year second quarter results were affected by non-cash impairment charges of $37 million and $85 million, respectively, related to the Company’s joint venture investment in Grand Victoria. In addition, the Company recorded an impairment charge of $45 million in the current year second quarter related to corporate buildings that are expected to be removed from service. The Company’s planned Las Vegas arena project, of which the Company will own 50%, will be located on the land underlying these buildings.

The current year second quarter income tax provision was affected by $55 million of valuation allowance on U.S. deferred tax assets, including valuation allowance related to tax benefit reflected in other items in the above table. The prior year second quarter income tax provision was affected by a valuation allowance for a portion of U.S. deferred tax assets and by a net tax benefit resulting from

 

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entering into an annual fee arrangement with the Macau government with respect to the complementary tax on dividend distributions of MGM Macau covering the years 2007 through 2011, including the dividend distributed in the first quarter of 2012. All taxes previously accrued on MGM Macau dividends distributed in prior quarters were reversed and the cumulative agreed upon annual fee was recorded during the second quarter of 2012.

Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts increased 3% compared to the prior year quarter. Table games revenue increased 4% and the overall table games hold percentage in the second quarter of 2013 was 18.1% compared to 17.7% for the prior year quarter. Slots revenue increased 3% with a 7% increase at the Company’s Las Vegas Strip resorts.

Rooms revenue increased 5% with a 2.5% increase in Las Vegas Strip REVPAR. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

 

Three months ended June 30,		2013				2012
Occupancy %			95	%			94	%
Average Daily Rate (ADR)		$	134			$	131
Revenue per Available Room (REVPAR)		$	127			$	124

Operating income for the Company’s wholly owned domestic resorts for the second quarter of 2013 was $239 million, an increase of 12% compared to the prior year quarter.

MGM China

On August 6, 2013, MGM China’s Board of Directors announced a dividend of $113 million, which will be paid to shareholders of record as of August 26, 2013 and distributed on or about September 2, 2013. MGM Resorts International will receive $57 million, representing its 51% share of the dividend.

Key second quarter results for MGM China include the following:

 

•

MGM China earned net revenue of $835 million, an 18% increase over the prior year quarter, and its highest ever quarterly Adjusted EBITDA of $205 million, a 10% increase over the prior year quarter, due primarily to increases in main floor table games and VIP revenues;

•

Main floor table games and slots win increased 29% and 4%, respectively, compared to the prior year quarter;

•

VIP table games turnover increased 34% from the prior year quarter, while hold percentage was 2.9% in the current year quarter compared to 3.3% in the prior year quarter; and

•

MGM China’s operating income was $126 million compared to $90 million in the prior year quarter.

Income from Unconsolidated Affiliates

The following table summarizes information related to the Company’s share of operating income from unconsolidated affiliates, adjusted for the effect of certain basis differences:

 

Three months ended June 30,		2013				2012
		(In thousands)
CityCenter		$	861			$	642
Other			5,821				5,344
		$	6,682			$	5,986

Results for CityCenter Holdings, LLC for the second quarter of 2013 include the following (see schedules accompanying this release for further detail on CityCenter’s second quarter results):

 

•

Net revenue from resort operations decreased to $280 million, a 1% decrease from the prior year quarter;

•

Adjusted EBITDA from resort operations was $67 million compared to $71 million in the prior year quarter;

•

Aria’s table games hold percentage was 20.8% in the current year quarter compared to 24.0% in the prior year quarter; and

•

Aria’s occupancy percentage was 92% and its ADR was $212, resulting in REVPAR of $194, a 4% increase compared to the prior year quarter.

 

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Financial Position

The Company’s term loan B facility was re-priced in May 2013 and now bears interest at LIBOR plus 2.50%, with a LIBOR floor of 1.00%, a 75 basis point reduction compared to the prior rate. The re-pricing will result in annual interest savings of approximately $13 million. As of June 30, 2013, the Company reduced its outstanding indebtedness by approximately $476 million year to date.

“Our continued focus on cost containment and investing in high return projects within our resorts is driving improved operating margins and free cash flow,” said Dan D’Arrigo, MGM Resorts International Executive Vice President, CFO and Treasurer. “We are utilizing growing cash flow and dividends from MGM China to significantly improve our balance sheet.”

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- 800-560-7376 for domestic callers and 1-706-758-3659 for international callers. The conference call access code is 15164251. A replay of the call will be available through Tuesday, August 13, 2013. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 15164251. The call will be archived at www.mgmresorts.com.

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 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.

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 world’s leading global hospitality companies, operating a peerless portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. In addition to its 51% interest in MGM China Holdings, Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, the Company has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three other properties in Nevada and Illinois. One of those investments is CityCenter, an unprecedented urban resort destination on the Las Vegas Strip featuring its centerpiece ARIA Resort & Casino. Leveraging MGM Resorts’ unmatched amenities, the M life loyalty program delivers one-of-a-kind experiences, insider privileges and personalized rewards for guests at the Company’s renowned properties nationwide. Through its hospitality management subsidiary, the Company holds a growing number of development and management agreements for casino and non-casino resort projects around the world. MGM Resorts International supports responsible gaming and has implemented the American Gaming Association’s Code of Conduct for Responsible Gaming at its

 

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gaming properties. The Company has been honored with numerous awards and recognitions for its industry-leading Diversity Initiative, its community philanthropy programs and the Company’s commitment to sustainable development and operations. For more information about MGM Resorts International, visit the Company’s website at www.mgmresorts.com.

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the company’s public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding the amount the Company expects to receive as a result of the MGM China dividend and the timing of such distribution. 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 our 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
DANIEL D’ARRIGO		CLARK DUMONT
Executive Vice President, CFO & Treasurer		Senior Vice President of Corporate Communications
(702) 693-8895		(702) 891-1836 or cdumont@mgmresorts.com

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30, 2013				June 30, 2012				June 30, 2013				June 30, 2012
Revenues:
Casino		$	1,443,157			$	1,299,196			$	2,844,577			$	2,634,230
Rooms			437,710				418,766				838,960				812,386
Food and beverage			394,247				391,891				754,129				764,844
Entertainment			121,001				120,909				234,855				241,309
Retail			52,748				52,086				97,455				98,710
Other			127,914				132,900				251,740				246,023
Reimbursed costs			92,741				90,938				182,977				181,477
			2,669,518				2,506,686				5,204,693				4,978,979
Less: Promotional allowances			(188,253	)			(182,921	)			(371,280	)			(367,624	)
			2,481,265				2,323,765				4,833,413				4,611,355
Expenses:
Casino			916,807				826,211				1,792,053				1,693,685
Rooms			134,001				129,897				261,710				256,052
Food and beverage			225,696				222,567				430,436				434,206
Entertainment			89,940				88,559				173,665				177,347
Retail			27,865				29,241				53,831				56,824
Other			92,819				88,835				178,792				175,057
Reimbursed costs			92,741				90,938				182,977				181,477
General and administrative			314,324				309,478				618,225				612,767
Corporate expense			52,364				42,540				98,988				84,800
Preopening and start-up expenses			3,506				—				5,652				—
Property transactions, net			88,131				90,467				96,622				91,384
Depreciation and amortization			218,151				235,643				430,069				472,452
			2,256,345				2,154,376				4,323,020				4,236,051
Income (loss) from unconsolidated affiliates			6,682				5,986				23,026				(7,323	)
Operating income			231,602				175,375				533,419				367,981
Non-operating income (expense):
Interest expense, net of amounts capitalized			(214,500	)			(276,323	)			(439,947	)			(560,665	)
Non-operating items from unconsolidated affiliates			(38,864	)			(20,836	)			(60,943	)			(47,702	)
Other, net			(4,951	)			46				(6,233	)			(57,530	)
			(258,315	)			(297,113	)			(507,123	)			(665,897	)
Income (loss) before income taxes			(26,713	)			(121,738	)			26,296				(297,916	)
Benefit (provision) for income taxes			(3,865	)			51,304				(34,296	)			24,175
Net loss			(30,578	)			(70,434	)			(8,000	)			(273,741	)
Less: Net income attributable to noncontrolling interests			(62,380	)			(75,018	)			(78,412	)			(88,964	)
Net loss attributable to MGM Resorts International		$	(92,958	)		$	(145,452	)		$	(86,412	)		$	(362,705	)
Per share of common stock:
Basic:
Net loss attributable to MGM Resorts International		$	(0.19	)		$	(0.30	)		$	(0.18	)		$	(0.74	)
Weighted average shares outstanding			489,484				488,931				489,388				488,896
Diluted:
Net loss attributable to MGM Resorts International		$	(0.19	)		$	(0.30	)		$	(0.18	)		$	(0.74	)
Weighted average shares outstanding			489,484				488,931				489,388				488,896

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

		June 30, 2013				December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents		$	1,278,673			$	1,543,509
Accounts receivable, net			440,326				443,677
Inventories			101,110				107,577
Deferred income taxes, net			141,516				179,431
Prepaid expenses and other			248,615				232,898
Total current assets			2,210,240				2,507,092
Property and equipment, net			14,042,309				14,194,652
Other assets:
Investments in and advances to unconsolidated affiliates			1,408,139				1,444,547
Goodwill			2,900,543				2,902,847
Other intangible assets, net			4,609,088				4,737,833
Other long-term assets, net			551,818				497,767
Total other assets			9,469,588				9,582,994
		$	25,722,137			$	26,284,738
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	229,599			$	199,620
Income taxes payable			7,682				1,350
Accrued interest on long-term debt			193,660				206,736
Other accrued liabilities			1,667,205				1,517,965
Total current liabilities			2,098,146				1,925,671
Deferred income taxes			2,505,000				2,473,889
Long-term debt			13,111,961				13,589,283
Other long-term obligations			149,864				179,879
Stockholders’ equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 489,596,581 and 489,234,401 shares			4,896				4,892
Capital in excess of par value			4,145,571				4,132,655
Retained earnings			127,286				213,698
Accumulated other comprehensive income			11,308				14,303
Total MGM Resorts International stockholders’ equity			4,289,061				4,365,548
Noncontrolling interests			3,568,105				3,750,468
Total stockholders’ equity			7,857,166				8,116,016
		$	25,722,137			$	26,284,738

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30, 2013				June 30, 2012				June 30, 2013				June 30, 2012
Bellagio		$	303,111			$	296,385			$	603,831			$	580,732
MGM Grand Las Vegas			255,426				230,396				514,316				462,876
Mandalay Bay			205,306				192,465				380,819				372,391
The Mirage			142,383				146,239				286,936				294,468
Luxor			83,383				84,717				161,172				166,643
New York-New York			69,070				69,017				138,338				139,641
Excalibur			69,967				68,275				131,776				130,999
Monte Carlo			68,891				66,456				135,391				131,363
Circus Circus Las Vegas			51,270				54,115				97,183				101,799
MGM Grand Detroit			132,593				141,805				273,461				292,392
Beau Rivage			85,959				86,899				166,869				173,550
Gold Strike Tunica			36,400				35,908				73,442				76,008
Other resort operations			32,237				32,551				61,650				61,964
Wholly owned domestic resorts			1,535,996				1,505,228				3,025,184				2,984,826
MGM China			835,149				709,296				1,582,706				1,411,386
Management and other operations			110,120				109,241				225,523				215,143
		$	2,481,265			$	2,323,765			$	4,833,413			$	4,611,355

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30, 2013				June 30, 2012				June 30, 2013				June 30, 2012
Bellagio		$	99,522			$	83,352			$	189,101			$	153,796
MGM Grand Las Vegas			49,635				29,032				111,640				66,357
Mandalay Bay			49,358				47,399				88,772				86,213
The Mirage			24,528				25,067				54,689				52,486
Luxor			18,288				17,345				33,862				35,709
New York-New York			23,672				23,662				47,072				47,975
Excalibur			19,771				19,125				34,880				33,304
Monte Carlo			19,883				16,408				37,369				31,404
Circus Circus Las Vegas			5,296				8,148				9,853				13,289
MGM Grand Detroit			38,662				43,337				78,315				85,576
Beau Rivage			16,466				19,401				30,339				36,451
Gold Strike Tunica			8,518				11,041				18,505				22,621
Other resort operations			2,004				1,841				2,243				949
Wholly owned domestic resorts			375,603				345,158				736,640				666,130
MGM China			204,815				186,560				385,270				351,081
CityCenter (50%)(1)			861				642				12,556				(17,931	)
Other unconsolidated resorts(1)			5,821				5,344				10,470				10,608
Management and other operations			9,060				10,104				24,821				14,803
		$	596,160			$	547,808			$	1,169,757			$	1,024,691

 

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

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended June 30, 2013

 

		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Bellagio		$	71,386			$	—			$	337			$	27,799			$	99,522
MGM Grand Las Vegas			29,400				—				104				20,131				49,635
Mandalay Bay			23,414				1,078				1,854				23,012				49,358
The Mirage			11,714				—				141				12,673				24,528
Luxor			9,097				112				(252	)			9,331				18,288
New York-New York			17,958				—				499				5,215				23,672
Excalibur			16,382				—				13				3,376				19,771
Monte Carlo			12,183				58				2,964				4,678				19,883
Circus Circus Las Vegas			801				—				10				4,485				5,296
MGM Grand Detroit			32,709				—				—				5,953				38,662
Beau Rivage			8,732				—				7				7,727				16,466
Gold Strike Tunica			3,966				—				1,187				3,365				8,518
Other resort operations			1,441				—				—				563				2,004
Wholly owned domestic resorts			239,183				1,248				6,864				128,308				375,603
MGM China			126,134				2,258				150				76,273				204,815
CityCenter (50%)			861				—				—				—				861
Other unconsolidated resorts			5,821				—				—				—				5,821
Management and other operations			6,111				—				(4	)			2,953				9,060
			378,110				3,506				7,010				207,534				596,160
Stock compensation			(6,246	)			—				—				—				(6,246	)
Corporate			(140,262	)			—				81,121				10,617				(48,524	)
		$	231,602			$	3,506			$	88,131			$	218,151			$	541,390
Three Months Ended June 30, 2012
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Bellagio		$	58,322			$	—			$	354			$	24,676			$	83,352
MGM Grand Las Vegas			8,072				—				803				20,157				29,032
Mandalay Bay			26,963				—				545				19,891				47,399
The Mirage			12,240				—				57				12,770				25,067
Luxor			8,406				—				185				8,754				17,345
New York-New York			18,002				—				243				5,417				23,662
Excalibur			14,769				—				3				4,353				19,125
Monte Carlo			10,930				—				553				4,925				16,408
Circus Circus Las Vegas			3,036				—				77				5,035				8,148
MGM Grand Detroit			32,431				—				884				10,022				43,337
Beau Rivage			11,727				—				8				7,666				19,401
Gold Strike Tunica			7,713				—				2				3,326				11,041
Other resort operations			1,184				—				6				651				1,841
Wholly owned domestic resorts			213,795				—				3,720				127,643				345,158
MGM China			90,215				—				1,464				94,881				186,560
CityCenter (50%)			642				—				—				—				642
Other unconsolidated resorts			5,344				—				—				—				5,344
Management and other operations			6,855				—				—				3,249				10,104
			316,851				—				5,184				225,773				547,808
Stock compensation			(8,769	)			—				—				—				(8,769	)
Corporate			(132,707	)			—				85,283				9,870				(37,554	)
		$	175,375			$	—			$	90,467			$	235,643			$	501,485

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Six Months Ended June 30, 2013

 

		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Bellagio		$	137,778			$	—			$	341			$	50,982			$	189,101
MGM Grand Las Vegas			70,372				—				770				40,498				111,640
Mandalay Bay			44,236				474				2,436				41,626				88,772
The Mirage			25,264				—				4,295				25,130				54,689
Luxor			12,872				112				2,927				17,951				33,862
New York-New York			35,695				—				530				10,847				47,072
Excalibur			27,544				—				13				7,323				34,880
Monte Carlo			25,041				58				2,952				9,318				37,369
Circus Circus Las Vegas			412				—				10				9,431				9,853
MGM Grand Detroit			67,080				—				—				11,235				78,315
Beau Rivage			15,159				—				(291	)			15,471				30,339
Gold Strike Tunica			10,786				—				1,174				6,545				18,505
Other resort operations			1,113				—				(1	)			1,131				2,243
Wholly owned domestic resorts			473,352				644				15,156				247,488				736,640
MGM China			225,251				4,632				345				155,042				385,270
CityCenter (50%)			12,180				376				—				—				12,556
Other unconsolidated resorts			10,470				—				—				—				10,470
Management and other operations			18,894				—				—				5,927				24,821
			740,147				5,652				15,501				408,457				1,169,757
Stock compensation			(13,189	)			—				—				—				(13,189	)
Corporate			(193,539	)			—				81,121				21,612				(90,806	)
		$	533,419			$	5,652			$	96,622			$	430,069			$	1,065,762
Six Months Ended June 30, 2012
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Bellagio		$	105,420			$	—			$	354			$	48,022			$	153,796
MGM Grand Las Vegas			26,421				—				1,130				38,806				66,357
Mandalay Bay			45,566				—				545				40,102				86,213
The Mirage			26,742				—				70				25,674				52,486
Luxor			17,615				—				185				17,909				35,709
New York-New York			36,699				—				243				11,033				47,975
Excalibur			24,391				—				3				8,910				33,304
Monte Carlo			20,903				—				558				9,943				31,404
Circus Circus Las Vegas			3,538				—				77				9,674				13,289
MGM Grand Detroit			64,769				—				884				19,923				85,576
Beau Rivage			21,123				—				8				15,320				36,451
Gold Strike Tunica			15,933				—				2				6,686				22,621
Other resort operations			(218	)			—				(14	)			1,181				949
Wholly owned domestic resorts			408,902				—				4,045				253,183				666,130
MGM China			158,342				—				1,464				191,275				351,081
CityCenter (50%)			(17,931	)			—				—				—				(17,931	)
Other unconsolidated resorts			10,608				—				—				—				10,608
Management and other operations			7,266				—				—				7,537				14,803
			567,187				—				5,509				451,995				1,024,691
Stock compensation			(18,101	)			—				—				—				(18,101	)
Corporate			(181,105	)			—				85,875				20,457				(74,773	)
		$	367,981			$	—			$	91,384			$	472,452			$	931,817

 

Page 9 of 12

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30, 2013				June 30, 2012				June 30, 2013				June 30, 2012
Adjusted EBITDA		$	541,390			$	501,485			$	1,065,762			$	931,817
Preopening and start-up expenses			(3,506	)			—				(5,652	)			—
Property transactions, net			(88,131	)			(90,467	)			(96,622	)			(91,384	)
Depreciation and amortization			(218,151	)			(235,643	)			(430,069	)			(472,452	)
Operating income			231,602				175,375				533,419				367,981
Non-operating income (expense):
Interest expense, net of amounts capitalized			(214,500	)			(276,323	)			(439,947	)			(560,665	)
Other, net			(43,815	)			(20,790	)			(67,176	)			(105,232	)
			(258,315	)			(297,113	)			(507,123	)			(665,897	)
Income (loss) before income taxes			(26,713	)			(121,738	)			26,296				(297,916	)
Benefit (provision) for income taxes			(3,865	)			51,304				(34,296	)			24,175
Net loss			(30,578	)			(70,434	)			(8,000	)			(273,741	)
Less: Net income attributable to noncontrolling interests			(62,380	)			(75,018	)			(78,412	)			(88,964	)
Net loss attributable to MGM Resorts International		$	(92,958	)		$	(145,452	)		$	(86,412	)		$	(362,705	)

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30, 2013				June 30, 2012				June 30, 2013				June 30, 2012
Bellagio
Occupancy %			95.9	%			96.9	%			94.3	%			95.0	%
Average daily rate (ADR)		$	247			$	237			$	244			$	234
Revenue per available room (REVPAR)		$	237			$	230			$	230			$	223
MGM Grand Las Vegas
Occupancy %			96.4	%			96.3	%			94.7	%			94.9	%
ADR		$	143			$	141			$	144			$	141
REVPAR		$	138			$	136			$	137			$	134
Mandalay Bay
Occupancy %			94.2	%			95.4	%			91.5	%			92.7	%
ADR		$	192			$	183			$	187			$	184
REVPAR		$	181			$	174			$	171			$	171
The Mirage
Occupancy %			96.3	%			98.4	%			95.7	%			95.6	%
ADR		$	152			$	151			$	151			$	153
REVPAR		$	147			$	149			$	144			$	146
Luxor
Occupancy %			95.2	%			93.3	%			92.9	%			92.0	%
ADR		$	90			$	91			$	88			$	90
REVPAR		$	86			$	85			$	82			$	83
New York-New York
Occupancy %			98.3	%			97.1	%			97.8	%			96.0	%
ADR		$	115			$	112			$	113			$	111
REVPAR		$	113			$	109			$	111			$	106
Excalibur
Occupancy %			95.5	%			94.0	%			90.6	%			90.7	%
ADR		$	74			$	72			$	73			$	72
REVPAR		$	71			$	68			$	66			$	65
Monte Carlo
Occupancy %			98.0	%			97.5	%			96.9	%			95.6	%
ADR		$	107			$	106			$	105			$	104
REVPAR		$	105			$	104			$	102			$	99
Circus Circus Las Vegas
Occupancy %			85.5	%			83.2	%			79.5	%			79.6	%
ADR		$	55			$	56			$	55			$	55
REVPAR		$	47			$	47			$	43			$	44

 

Page 10 of 12

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CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30, 2013				June 30, 2012				June 30, 2013				June 30, 2012
Aria		$	226,102			$	233,634			$	484,612			$	421,466
Vdara			24,355				23,114				46,414				44,563
Crystals			15,494				13,133				29,451				25,460
Mandarin Oriental			13,774				12,022				27,494				24,723
Resort operations			279,725				281,903				587,971				516,212
Residential operations			53,449				8,242				60,345				12,850
		$	333,174			$	290,145			$	648,316			$	529,062

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,				June 30,				June 30,				June 30,
		2013				2012				2013				2012
Adjusted EBITDA		$	72,666			$	65,195			$	159,653			$	93,790
Preopening and start-up expenses			—				—				(752	)			—
Property transactions, net			(10,113	)			(70	)			(10,113	)			(2,079	)
Depreciation and amortization			(86,327	)			(88,109	)			(172,730	)			(176,152	)
Operating loss			(23,774	)			(22,984	)			(23,942	)			(84,441	)
Non-operating income (expense):
Interest expense - sponsor notes			(25,935	)			(22,298	)			(50,883	)			(43,851	)
Interest expense - other			(42,984	)			(42,926	)			(86,454	)			(88,968	)
Other, net			(33,073	)			1,143				(32,330	)			(6,640	)
			(101,992	)			(64,081	)			(169,667	)			(139,459	)
Net loss		$	(125,766	)		$	(87,065	)		$	(193,609	)		$	(223,900	)

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2013

 

		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	(14,713	)		$	—			$	278			$	64,018			$	49,583
Vdara			(3,894	)			—				—				10,394				6,500
Crystals			3,156				—				—				6,876				10,032
Mandarin Oriental			(3,601	)			—				—				4,676				1,075
Resort operations			(19,052	)			—				278				85,964				67,190
Residential operations			(410	)			—				9,835				355				9,780
Development and administration			(4,312	)			—				—				8				(4,304	)
		$	(23,774	)		$	—			$	10,113			$	86,327			$	72,666

Three Months Ended June 30, 2012

 

		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	(10,004	)		$	—			$	(9	)		$	65,935			$	55,922
Vdara			(3,667	)			—				—				10,308				6,641
Crystals			1,961				—				—				6,305				8,266
Mandarin Oriental			(4,245	)			—				—				4,524				279
Resort operations			(15,955	)			—				(9	)			87,072				71,108
Residential operations			(299	)			—				—				984				685
Development and administration			(6,730	)			—				79				53				(6,598	)
		$	(22,984	)		$	—			$	70			$	88,109			$	65,195

 

Page 11 of 12

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CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2013

 

		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	(1,614	)		$	694			$	278			$	127,788			$	127,146
Vdara			(9,190	)			—				—				21,209				12,019
Crystals			5,159				58				—				13,320				18,537
Mandarin Oriental			(7,346	)			—				—				9,686				2,340
Resort operations			(12,991	)			752				278				172,003				160,042
Residential operations			(1,454	)			—				9,835				711				9,092
Development and administration			(9,497	)			—				—				16				(9,481	)
		$	(23,942	)		$	752			$	10,113			$	172,730			$	159,653
Six Months Ended June 30, 2012
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	(59,185	)		$	—			$	1,986			$	131,650			$	74,451
Vdara			(8,609	)			—				—				20,686				12,077
Crystals			2,661				—				—				12,711				15,372
Mandarin Oriental			(7,790	)			—				—				9,039				1,249
Resort operations			(72,923	)			—				1,986				174,086				103,149
Residential operations			(1,764	)			—				—				1,952				188
Development and administration			(9,754	)			—				93				114				(9,547	)
		$	(84,441	)		$	—			$	2,079			$	176,152			$	93,790

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30, 2013				June 30, 2012				June 30, 2013				June 30, 2012
Aria
Occupancy %			91.7	%			92.7	%			90.3	%			89.6	%
ADR		$	212			$	201			$	210			$	203
REVPAR		$	194			$	187			$	190			$	182
Vdara
Occupancy %			91.4	%			89.0	%			88.6	%			85.0	%
ADR		$	165			$	161			$	162			$	162
REVPAR		$	150			$	143			$	144			$	137

 

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