MGM Resorts International - FORM 8-K - EX-99 - EX-99.1

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8-K - FORM 8-K - MGM Resorts International	d874827d8k.htm

Exhibit 99.1

LOGO

MGM RESORTS INTERNATIONAL REPORTS FOURTH QUARTER

AND FULL YEAR FINANCIAL RESULTS

MGM China Board Announces a $400 Million Special Dividend

and Will Recommend a $120 Million Final 2014 Dividend;

Las Vegas Strip REVPAR Increased 7%

Las Vegas, Nevada, February 17, 2015 — MGM Resorts International (NYSE: MGM) today reported financial results for the quarter and year ended December 31, 2014.

“MGM Resorts International reported its best fourth quarter EBITDA since the peak in 2007 and its best full year in six years at its wholly owned domestic resorts. For the full year, CityCenter resort operations and MGM China each achieved record performances,” said Jim Murren, Chairman & CEO of MGM Resorts International. “When I reflect on this year, I am extremely proud of the accomplishments of the MGM Resorts International team and believe that 2015 will be another great year. In fact, we are already off to a good start with strong January results in the U.S.”

Key results for the fourth quarter of 2014 include the following:

•

Net revenue at the Company’s wholly owned domestic resorts increased 5% compared to the prior year quarter;

•

Rooms revenue at wholly owned domestic resorts increased 6% compared to the prior year quarter;

•

The Company’s wholly owned domestic resorts earned Adjusted Property EBITDA⁽¹⁾ of $373 million, a 5% increase compared to the prior year quarter;

•

MGM China’s net revenue was $719 million and Adjusted EBITDA was $185 million, each a 22% decrease compared to the prior year quarter; and

•

CityCenter earned Adjusted EBITDA related to resort operations of $78 million, a 16% decrease compared to the prior year quarter, due primarily to a decrease in table games hold percentage at Aria.

Fourth Quarter Consolidated Results

Diluted loss per share for the fourth quarter of 2014 was $0.70 compared to diluted loss per share of $0.12 in the prior year fourth quarter. The current year fourth quarter income tax provision was unfavorably impacted by a non-cash charge due to an increase in valuation allowance recorded against the Company’s foreign tax credit deferred tax asset. The Company’s income tax provision per diluted share was $0.67 for the quarter. Absent the impact of the valuation allowance, a small tax benefit would have been recorded in the 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 December 31,	2014			2013
Preopening and start-up expenses	$	(0.02	)	$	—
Income (loss) from unconsolidated affiliates:
Harmon-related property transactions, net		(0.02	)		—
Non-operating items from unconsolidated affiliates:
CityCenter loss on retirement of long-term debt		—			(0.09	)
Silver Legacy gain on retirement of long-term debt		—			0.02

Page 1 of 13

Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts increased 5% compared to the prior year quarter due to increases in both table games volume and hold percentage. Table games hold percentage in the fourth quarter of 2014 was 21.8% compared to 20.2% in the prior year quarter. Slots revenue increased 5% compared to the prior year quarter, due to slightly higher win along with a reduction in the Company’s accrual for slot points based on a change in estimated point redemption.

Rooms revenue increased 6% with Las Vegas Strip REVPAR⁽²⁾ up 7%. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:


Three months ended December 31,	2014			2013
Occupancy %		88	%		85	%
Average Daily Rate (ADR)	$	138		$	133
Revenue per Available Room (REVPAR)	$	121		$	114

Food and beverage revenue increased 6% as a result of increased convention and banquet business and the opening of several new outlets. Operating income for the Company’s wholly owned domestic resorts increased 10% for the fourth quarter of 2014 compared to the prior year quarter.

MGM China

On February 17, 2015, as part of its regular dividend policy, MGM China’s Board of Directors announced it will recommend a final dividend for 2014 of $120 million to MGM China shareholders subject to approval at the MGM China 2015 annual shareholders meeting. If approved, MGM Resorts International will receive $61 million, its 51% share of this dividend. In addition, MGM China’s Board of Directors announced a special dividend of $400 million, which will be paid to shareholders of record as of March 10, 2015 and distributed on or about March 19, 2015. MGM Resorts International will receive $204 million, its 51% share of the special dividend.

Key fourth quarter results for MGM China include the following:

•

MGM China earned net revenue of $719 million, a 22% decrease compared to the prior year quarter;

•

Main floor table games revenue increased 19% compared to the prior year quarter. Main floor table games volume decreased 4% and hold percentage was 27.2% in the current year quarter compared to 22.2% in the prior year quarter;

•

VIP table games revenue decreased 39% due to lower VIP table games turnover of 32% compared to the prior year quarter, as well as hold percentage of 2.6% in the current year quarter compared to 2.8% in the prior year quarter;

•

MGM China’s Adjusted EBITDA was $185 million, a 22% decrease compared to the prior year quarter;

•

MGM China’s Adjusted EBITDA margin increased by 10 basis points compared to the prior year quarter to 25.8% as a result of an increase in main floor table games mix; and

•

Operating income was $109 million compared to $162 million in the prior year quarter.

Page 2 of 13

Income (Loss) from Unconsolidated Affiliates

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


Three months ended December 31,	2014			2013
	*(In thousands)*
CityCenter	$	(18,114	)	$	12,037
Borgata		11,304			(196	)
Other		4,683			4,069

	$	(2,127	)	$	15,910

In September 2014, the Company was relicensed in the state of New Jersey. As a result, the Company resumed accounting for its 50% interest in Borgata under the equity method and has adjusted its prior period financial statements retroactively as required by generally accepted accounting principles.

Results for CityCenter Holdings, LLC (“CityCenter”) for the fourth quarter of 2014 include the following (see schedules accompanying this release for further detail on CityCenter’s fourth quarter results):

•

Net revenue from resort operations decreased by 4% to $289 million compared to $301 million in the prior year quarter, due to lower table games hold and volume at Aria;

•

Adjusted EBITDA from resort operations was $78 million, a decrease of 16% compared to the prior year quarter;

•

Adjusted EBITDA at Aria decreased by 22% year over year driven primarily by a decrease in table games volume and hold;

•

Aria’s table games hold percentage was 21.5% compared to 26.0% in the prior year quarter;

•

Aria’s occupancy percentage was 91.1% and its ADR was $217, resulting in REVPAR of $198, a 9% increase compared to the prior year quarter;

•

Vdara reported record fourth quarter EBITDA led by a 13% increase in REVPAR; and

•

Crystals reported Adjusted EBITDA of $11 million, an increase of 2% from the prior year quarter.

CityCenter reported an operating loss of $58 million for the fourth quarter of 2014 compared to operating income of $26 million in the prior year quarter. The lower fourth quarter result was due to decreased operating results at Aria as discussed above and a property transaction charge of $39 million. The property transaction charge primarily relates to a settlement with an insurer participating in CityCenter’s Owner Controlled Insurance Program in conjunction with the global settlement discussed below. In addition, the prior year quarter included $26 million of income related to property transactions, net, primarily related to a $33 million gain associated with the settlement of insurance claims for errors and omissions with respect to the original construction of CityCenter.

As previously announced, in December 2014, the Company and CityCenter entered into a settlement agreement with Perini Building Company, Inc. (“Perini”), general contractor for CityCenter, the remaining Perini subcontractors and relevant insurers to resolve all outstanding project lien claims and CityCenter’s counterclaims relating to the Harmon Hotel and Spa. The settlement was subject to execution of a global settlement agreement among the parties described above, which was subsequently executed, and CityCenter’s procurement of replacement general liability insurance covering construction of the CityCenter development (which was obtained in January 2015). The proceeds pursuant to such global settlement agreement, combined with certain prior Harmon-related insurance settlement proceeds, will result in a gain of approximately $160 million to be recorded by CityCenter during the first quarter of 2015.

Page 3 of 13

Full Year 2014 Results

Consolidated net revenue for 2014 was $10.1 billion, a 3% increase over 2013, and Adjusted Property EBITDA increased 5% compared to the prior year to $2.5 billion. Net revenue from wholly owned domestic resorts was $6.3 billion, a 5% increase compared to the prior year. Adjusted Property EBITDA from wholly owned domestic resorts increased 5% to $1.5 billion for 2014.

MGM China net revenue was $3.3 billion for 2014, a 1% decrease from 2013, and Adjusted EBITDA was a record $850 million compared to $814 million in the prior year. CityCenter reported net revenue from resort operations of a record $1.2 billion, a 3% increase compared to the prior year, and Adjusted EBITDA related to resort operations of $317 million compared to $316 million in the prior year.

Diluted loss per share attributable to the Company for 2014 was $0.31 compared to diluted loss per share of $0.35 in 2013. The following table lists items that affect the comparability of the current year and prior year annual results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):


Year ended December 31,	2014			2013
Preopening and start-up expenses	$	(0.05	)	$	(0.02	)
Property transactions, net		(0.05	)		(0.17	)
Income (loss) from unconsolidated affiliates:
Harmon-related property transactions, net		(0.02	)		—
Non-operating items from unconsolidated affiliates:
CityCenter loss on retirement of long-term debt		—			(0.09	)
Silver Legacy gain on retirement of long-term debt		—			0.02

The tax provision in 2014 increased $263 million compared to 2013 primarily as a result of an increase in valuation allowance recorded against the Company’s foreign tax credit deferred tax asset in 2014 and realization of deferred tax assets in 2013 that were previously offset by valuation allowance, partially offset by tax expense recognized in 2013 as a result of re-measuring net deferred tax liabilities in Macau.

Financial Position

“As a result of a successful year and our continued focus on our balance sheet, we improved leverage and raised significant capital in 2014,” said Dan D’Arrigo, Executive Vice President, CFO and Treasurer of MGM Resorts International. “We believe that our improved cash flows, the announced dividends from MGM China, $1.25 billion in capital raised in the fourth quarter, along with revolver availability provides us with adequate liquidity to fund our 2015 maturities and growth initiatives.”

The Company’s cash balance at December 31, 2014 was $2.3 billion, which included $546 million at MGM China. At December 31, 2014, the Company had $2.7 billion of borrowings outstanding under its $3.9 billion senior secured credit facility and $553 million outstanding under the $2.0 billion MGM China credit facility.

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 8870181. A replay of the call will be available through Wednesday, February 25, 2015. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10059516. The call will be archived at www.mgmresorts.com.

Page 4 of 13

1 “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.

2 REVPAR is hotel revenue per available room.

* * *

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is one of the world’s leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company is in the process of developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts. 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 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 future expected financial results, the Company’s ability to fund its 2015 debt maturities and growth initiatives, the expected gains to CityCenter as a result of the settlement agreements, and amounts the Company expects to receive as a result of the MGM China dividends. 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
SARAH ROGERS		CLARK DUMONT
Vice President Investor Relations		Senior Vice President of Corporate Communications
(702) 693-8654 or srogers@mgmresorts.com		(702) 692-6888 or cdumont@mgmresorts.com

Page 5 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2014

2013

2014

2013

Revenues:

Casino

1,399,640

1,570,905

5,878,775

5,875,782

Rooms

419,470

394,283

1,768,012

1,646,303

Food and beverage

366,352

348,465

1,558,937

1,469,582

Entertainment

141,289

142,257

560,116

522,911

Retail

45,204

44,996

191,351

194,602

Other

116,018

115,429

507,639

490,349

Reimbursed costs

94,397

89,649

383,434

364,664

2,582,370

2,705,984

10,848,264

10,564,193

Less: Promotional allowances

(196,824

)

(192,771

)

(766,280

)

(754,530

)

2,385,546

2,513,213

10,081,984

9,809,663

Expenses:

Casino

852,053

979,620

3,643,881

3,684,810

Rooms

128,349

122,509

548,993

516,605

Food and beverage

213,427

199,312

908,916

844,431

Entertainment

108,660

104,648

422,115

386,252

Retail

23,741

25,365

99,455

107,249

Other

85,926

84,072

361,904

354,705

Reimbursed costs

94,397

89,649

383,434

364,664

General and administrative

324,532

317,378

1,318,749

1,278,450

Corporate expense

69,458

63,567

238,811

216,745

Preopening and start-up expenses

13,629

3,383

39,257

13,314

Property transactions, net

480

2,012

41,002

124,761

Depreciation and amortization

202,654

207,474

815,765

849,225

2,117,306

2,198,989

8,822,282

8,741,211

Income (loss) from unconsolidated affiliates

(2,127

)

15,910

63,836

68,829

Operating income

266,113

330,134

1,323,538

1,137,281

Non-operating income (expense):

Interest expense, net of amounts capitalized

(200,903

)

(208,461

)

(817,061

)

(857,347

)

Non-operating items from unconsolidated affiliates

(18,773

)

(93,230

)

(87,794

)

(208,682

)

Other, net

(5,800

)

(2,153

)

(7,797

)

(9,062

)

(225,476

)

(303,844

)

(912,652

)

(1,075,091

)

Income before income taxes

40,637

26,290

410,886

62,190

Provision for income taxes

(328,109

)

(3,883

)

(283,708

)

(20,816

)

Net income (loss)

(287,472

)

22,407

127,178

41,374

Less: Net income attributable to noncontrolling interests

(54,791

)

(79,212

)

(277,051

)

(213,108

)

Net loss attributable to MGM Resorts International

(342,263

)

(56,805

)

(149,873

)

(171,734

)

Per share of common stock:

Basic:

Net loss attributable to MGM Resorts International

(0.70

)

(0.12

)

(0.31

)

(0.35

)

Weighted average shares outstanding

491,308

490,185

490,875

489,661

Diluted:

Net loss attributable to MGM Resorts International

(0.70

)

(0.12

)

(0.31

)

(0.35

)

Weighted average shares outstanding

491,308

490,185

490,875

489,661

Page 6 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)


	December 31,			December 31,
	2014			2013
ASSETS
Current assets:
Cash and cash equivalents	$	2,283,715		$	1,803,669
Accounts receivable, net		473,345			488,217
Inventories		104,011			107,907
Income tax receivable		14,675			—
Deferred income taxes, net		—			80,989
Prepaid expenses and other		151,414			238,657

Total current assets		3,027,160			2,719,439

Property and equipment, net		14,441,542			14,055,212

Other assets:
Investments in and advances to unconsolidated affiliates		1,559,034			1,469,261
Goodwill		2,897,110			2,897,442
Other intangible assets, net		4,364,856			4,511,861
Other long-term assets, net		412,809			431,395

Total other assets		9,233,809			9,309,959

	$	26,702,511		$	26,084,610


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	164,252		$	144,990
Construction payable		170,439			96,202
Income taxes payable		—			14,813
Current portion of long-term debt		1,245,320			—
Deferred income taxes, net		62,142			—
Accrued interest on long-term debt		191,155			188,522
Other accrued liabilities		1,574,617			1,770,801

Total current liabilities		3,407,925			2,215,328

Deferred income taxes		2,621,860			2,419,967
Long-term debt		12,913,882			13,447,230
Other long-term obligations		130,570			141,590
Stockholders’ equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 491,292,117 and 490,360,628 shares		4,913			4,904
Capital in excess of par value		4,180,922			4,156,680
Retained earnings (accumulated deficit)		(107,909	)		41,964
Accumulated other comprehensive income		12,991			12,503

Total MGM Resorts International stockholders’ equity		4,090,917			4,216,051
Noncontrolling interests		3,537,357			3,644,444

Total stockholders’ equity		7,628,274			7,860,495

	$	26,702,511		$	26,084,610

Page 7 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2014

December 31,
2013

December 31,
2014

December 31,
2013

Bellagio

294,110

298,759

1,248,203

1,177,402

MGM Grand Las Vegas

292,031

249,765

1,098,642

1,038,346

Mandalay Bay

204,280

197,174

874,126

792,282

The Mirage

141,582

143,347

572,699

576,573

Luxor

86,886

78,503

354,041

325,578

New York-New York

71,507

66,749

286,998

271,572

Excalibur

62,550

60,879

269,486

260,462

Monte Carlo

67,704

62,539

277,845

262,901

Circus Circus Las Vegas

49,254

45,658

209,662

197,885

MGM Grand Detroit

133,235

130,769

530,436

537,994

Beau Rivage

85,115

81,977

344,178

340,814

Gold Strike Tunica

38,118

36,219

157,733

149,186

Other resort operations

28,072

27,009

118,035

121,649

Wholly owned domestic resorts

1,554,444

1,479,347

6,342,084

6,052,644

MGM China

718,688

925,751

3,282,329

3,316,928

Management and other operations

112,414

108,115

457,571

440,091

2,385,546

2,513,213

10,081,984

9,809,663

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2014

December 31,
2013

December 31,
2014

December 31,
2013

Bellagio

84,514

99,547

393,702

358,759

MGM Grand Las Vegas

84,403

58,394

254,854

236,132

Mandalay Bay

36,827

36,346

175,626

167,154

The Mirage

27,981

32,960

110,154

117,424

Luxor

13,221

12,414

70,084

61,561

New York-New York

24,479

21,400

95,105

89,181

Excalibur

14,933

13,286

68,219

63,502

Monte Carlo

17,736

16,327

71,780

68,941

Circus Circus Las Vegas

5,000

908

23,615

16,609

MGM Grand Detroit

37,196

40,519

144,798

155,689

Beau Rivage

17,078

15,340

70,261

66,937

Gold Strike Tunica

10,066

9,480

40,332

37,487

Other resort operations

(349)

(935)

(223)

3,310

Wholly owned domestic resorts

373,085

355,986

1,518,307

1,442,686

MGM China

185,462

238,067

850,471

814,109

Unconsolidated resorts(1)

(2,127

)

15,910

63,836

68,829

Management and other operations

(1,154

)

(688

)

35,984

25,777

555,266

609,275

2,468,598

2,351,401

(1)

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

Page 8 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended December 31, 2014

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

62,677

—

21,794

84,514

MGM Grand Las Vegas

65,700

—

(910

)

19,613

84,403

Mandalay Bay

17,036

—

462

19,329

36,827

The Mirage

15,488

228

12,251

27,981

Luxor

3,242

—

382

9,597

13,221

New York-New York

18,864

630

4,984

24,479

Excalibur

11,027

—

141

3,765

14,933

Monte Carlo

12,186

114

5,415

17,736

Circus Circus Las Vegas

1,157

—

3,836

5,000

MGM Grand Detroit

31,133

—

239

5,824

37,196

Beau Rivage

10,461

—

6,568

17,078

Gold Strike Tunica

6,982

—

127

2,957

10,066

Other resort operations

644

—

(1,124

)

131

(349

)

Wholly owned domestic resorts

256,597

672

(248

)

116,064

373,085

MGM China

109,019

2,299

1,497

72,647

185,462

Unconsolidated resorts

(2,907

)

780

—

(2,127

)

Management and other operations

(4,001

)

359

414

2,074

(1,154

)

358,708

4,110

1,663

190,785

555,266

Stock compensation

(8,005

)

—

(8,005

)

Corporate

(84,590

)

9,519

(1,183

)

11,869

(64,385

)

266,113

13,629

480

202,654

482,876

Three Months Ended December 31, 2013

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

75,967

—

198

23,382

99,547

MGM Grand Las Vegas

36,171

—

1,028

21,195

58,394

Mandalay Bay

14,651

353

370

20,972

36,346

The Mirage

20,628

—

397

11,935

32,960

Luxor

3,150

(377

)

9,597

12,414

New York-New York

15,680

—

1,117

4,603

21,400

Excalibur

9,908

—

3,344

13,286

Monte Carlo

10,531

651

267

4,878

16,327

Circus Circus Las Vegas

(2,871

)

—

3,748

908

MGM Grand Detroit

37,171

—

(2,402

)

5,750

40,519

Beau Rivage

8,852

—

6,443

15,340

Gold Strike Tunica

5,943

—

156

3,381

9,480

Other resort operations

(1,957

)

—

466

556

(935

)

Wholly owned domestic resorts

233,824

1,048

1,330

119,784

355,986

MGM China

161,699

2,191

74,152

238,067

Unconsolidated resorts

15,779

131

—

15,910

Management and other operations

(3,634

)

—

2,946

(688

)

407,668

3,370

1,355

196,882

609,275

Stock compensation

(6,955

)

—

(6,955

)

Corporate

(70,579

)

657

10,592

(59,317

)

330,134

3,383

2,012

207,474

543,003

Page 9 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Twelve Months Ended December 31, 2014

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

304,144

—

900

88,658

393,702

MGM Grand Las Vegas

174,297

197

(667

)

81,027

254,854

Mandalay Bay

95,449

1,133

2,307

76,737

175,626

The Mirage

57,338

452

2,464

49,900

110,154

Luxor

31,801

432

37,849

70,084

New York-New York

75,360

732

427

18,586

95,105

Excalibur

52,915

—

500

14,804

68,219

Monte Carlo

48,937

1,507

290

21,046

71,780

Circus Circus Las Vegas

8,135

15,334

23,615

MGM Grand Detroit

118,755

—

2,728

23,315

144,798

Beau Rivage

43,152

—

1,000

26,109

70,261

Gold Strike Tunica

27,460

—

392

12,480

40,332

Other resort operations

(2,318

)

—

336

1,759

(223

)

Wholly owned domestic resorts

1,035,425

4,108

11,170

467,604

1,518,307

MGM China

547,977

9,091

1,493

291,910

850,471

Unconsolidated resorts

62,919

917

—

63,836

Management and other operations

26,152

359

415

9,058

35,984

1,672,473

14,475

13,078

768,572

2,468,598

Stock compensation

(28,372

)

—

(28,372

)

Corporate

(320,563

)

24,782

27,924

47,193

(220,664

)

1,323,538

39,257

41,002

815,765

2,219,562

Twelve Months Ended December 31, 2013

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

261,321

—

470

96,968

358,759

MGM Grand Las Vegas

149,602

—

2,220

84,310

236,132

Mandalay Bay

78,096

1,903

2,823

84,332

167,154

The Mirage

63,090

—

4,722

49,612

117,424

Luxor

21,730

802

2,177

36,852

61,561

New York-New York

65,006

—

3,533

20,642

89,181

Excalibur

49,184

—

14,249

63,502

Monte Carlo

45,597

791

3,773

18,780

68,941

Circus Circus Las Vegas

(1,596

)

—

1,078

17,127

16,609

MGM Grand Detroit

135,516

—

(2,402

)

22,575

155,689

Beau Rivage

38,015

—

(260

)

29,182

66,937

Gold Strike Tunica

22,767

—

1,330

13,390

37,487

Other resort operations

(21,951

)

—

23,018

2,243

3,310

Wholly owned domestic resorts

906,377

3,496

42,551

490,262

1,442,686

MGM China

501,021

9,109

390

303,589

814,109

Unconsolidated resorts

68,322

507

—

68,829

Management and other operations

13,749

189

11,835

25,777

1,489,469

13,301

42,945

805,686

2,351,401

Stock compensation

(26,112

)

—

(26,112

)

Corporate

(326,076

)

81,816

43,539

(200,708

)

1,137,281

13,314

124,761

849,225

2,124,581

Page 10 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2014

December 31,
2013

December 31,
2014

December 31,
2013

Adjusted EBITDA

482,876

543,003

2,219,562

2,124,581

Preopening and start-up expenses

(13,629

)

(3,383

)

(39,257

)

(13,314

)

Property transactions, net

(480

)

(2,012

)

(41,002

)

(124,761

)

Depreciation and amortization

(202,654

)

(207,474

)

(815,765

)

(849,225

)

Operating income

266,113

330,134

1,323,538

1,137,281

Non-operating income (expense):

Interest expense, net of amounts capitalized

(200,903

)

(208,461

)

(817,061

)

(857,347

)

Other, net

(24,573

)

(95,383

)

(95,591

)

(217,744

)

(225,476

)

(303,844

)

(912,652

)

(1,075,091

)

Income before income taxes

40,637

26,290

410,886

62,190

Provision for income taxes

(328,109

)

(3,883

)

(283,708

)

(20,816

)

Net income (loss)

(287,472

)

22,407

127,178

41,374

Less: Net income attributable to noncontrolling interests

(54,791

)

(79,212

)

(277,051

)

(213,108

)

Net loss attributable to MGM Resorts International

(342,263

)

(56,805

)

(149,873

)

(171,734

)

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)


	Three Months Ended						Twelve Months Ended
	December 31, 2014			December 31, 2013			December 31, 2014			December 31, 2013
Bellagio
Occupancy %		87.6	%		87.5	%		92.9	%		92.3	%
Average daily rate (ADR)	$	258		$	254		$	254		$	243
Revenue per available room (REVPAR)	$	226		$	223		$	236		$	225

MGM Grand Las Vegas
Occupancy %		93.0	%		89.3	%		96.0	%		93.5	%
ADR	$	149		$	142		$	150		$	142
REVPAR	$	138		$	127		$	144		$	132

Mandalay Bay
Occupancy %		86.8	%		85.8	%		92.0	%		90.1	%
ADR	$	181		$	176		$	191		$	182
REVPAR	$	157		$	151		$	176		$	164

The Mirage
Occupancy %		91.3	%		91.1	%		94.8	%		94.7	%
ADR	$	157		$	151		$	159		$	149
REVPAR	$	143		$	137		$	151		$	141

Luxor
Occupancy %		87.2	%		83.9	%		93.1	%		90.7	%
ADR	$	96		$	90		$	96		$	88
REVPAR	$	84		$	76		$	89		$	80

New York-New York
Occupancy %		95.5	%		93.6	%		97.8	%		96.5	%
ADR	$	119		$	112		$	120		$	112
REVPAR	$	113		$	105		$	118		$	108

Excalibur
Occupancy %		84.7	%		80.7	%		92.0	%		88.5	%
ADR	$	80		$	73		$	79		$	73
REVPAR	$	68		$	59		$	73		$	65

Monte Carlo
Occupancy %		93.6	%		90.3	%		96.8	%		94.8	%
ADR	$	108		$	104		$	110		$	104
REVPAR	$	101		$	94		$	107		$	99

Circus Circus Las Vegas
Occupancy %		77.1	%		71.1	%		80.4	%		78.3	%
ADR	$	61		$	55		$	60		$	55
REVPAR	$	47		$	39		$	49		$	43

Page 11 of 13

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2014

December 31,
2013

December 31,
2014

December 31,
2013

Aria

232,622

249,620

955,563

951,727

Vdara

25,195

22,165

103,856

90,444

Crystals

16,392

16,113

66,475

61,184

Mandarin Oriental

14,585

13,530

60,515

53,714

Resort operations

288,794

301,428

1,186,409

1,157,069

Residential operations

6,906

12,365

62,985

99,370

295,700

313,793

1,249,394

1,256,439

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2014

December 31,
2013

December 31,
2014

December 31,
2013

Adjusted EBITDA

68,008

86,599

298,365

307,513

Preopening and start-up expenses

—

(752

)

Property transactions, net

(39,321

)

25,791

(61,914

)

11,265

Depreciation and amortization

(87,098

)

(86,552

)

(350,926

)

(345,920

)

Operating income (loss)

(58,411

)

25,838

(114,475

)

(27,894

)

Non-operating income (expense):

Interest expense - sponsor notes

—

(4,644

)

—

(82,655

)

Interest expense - other

(17,993

)

(26,928

)

(82,260

)

(156,397

)

Other, net

(1,071

)

(142,777

)

(11,831

)

(176,202

)

(19,064

)

(174,349

)

(94,091

)

(415,254

)

Net loss

(77,475

)

(148,511

)

(208,566

)

(443,148

)

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended December 31, 2014


	Operating income (loss)			Preopening and start-up expenses		Property transactions, net			Depreciation and amortization		Adjusted EBITDA
Aria	$	(11,217	)	$	—	$	4,255		$	66,538	$	59,576
Vdara		(3,558	)		—		7			9,554		6,003
Crystals		3,999			—		(11	)		6,568		10,556
Mandarin Oriental		(2,642	)		—		—			4,182		1,540

Resort operations		(13,418	)		—		4,251			86,842		77,675
Residential operations		583			—		—			41		624
Development and administration		(45,576	)		—		35,070			215		(10,291	)

	$	(58,411	)	$	—	$	39,321		$	87,098	$	68,008

Three Months Ended December 31, 2013

Operating
income (loss)

Preopening
and start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Aria

11,811

—

222

64,653

76,686

Vdara

(11,908

)

—

6,682

9,944

4,718

Crystals

3,305

—

7,019

10,324

Mandarin Oriental

(3,472

)

—

4,719

1,247

Resort operations

(264

)

—

6,904

86,335

92,975

Residential operations

603

—

305

215

1,123

Development and administration

25,499

—

(33,000

)

(7,499

)

25,838

—

(25,791

)

86,552

86,599

Page 12 of 13

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Twelve Months Ended December 31, 2014

Operating
income
(loss)

Preopening
and
start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Aria

(34,515

)

—

12,858

264,447

242,790

Vdara

(15,103

)

—

155

40,636

25,688

Crystals

16,384

—

202

26,867

43,453

Mandarin Oriental

(13,349

)

—

18,333

5,028

Resort operations

(46,583

)

—

13,259

350,283

316,959

Residential operations

7,835

—

1,115

428

9,378

Development and administration

(75,727

)

—

47,540

215

(27,972

)

(114,475

)

—

61,914

350,926

298,365

Twelve Months Ended December 31, 2013

Operating
income
(loss)

Preopening
and
start-up
expenses

Property
transactions,
net

Depreciation
and
amortization

Adjusted
EBITDA

Aria

(5,611

)

694

501

257,086

252,670

Vdara

(27,611

)

—

6,731

41,530

20,650

Crystals

11,357

27,240

38,712

Mandarin Oriental

(15,632

)

—

19,103

3,471

Resort operations

(37,497

)

752

7,289

344,959

315,503

Residential operations

(208

)

—

14,446

933

15,171

Development and administration

9,811

—

(33,000

)

(23,161

)

(27,894

)

752

(11,265

)

345,920

307,513

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,
2014

December 31,
2013

December 31,
2014

December 31,
2013

Aria

Occupancy %

91.1

85.2

92.9

88.8

ADR

217

212

217

208

REVPAR

198

181

202

184

Vdara

Occupancy %

87.8

82.1

92.0

86.7

ADR

177

168

174

162

REVPAR

155

138

160

140

Page 13 of 13

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