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

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8-K - 8-K - MGM Resorts International	d394455d8k.htm

Exhibit 99.1

LOGO

MGM RESORTS INTERNATIONAL REPORTS SECOND QUARTER FINANCIAL AND

OPERATING RESULTS

Las Vegas, Nevada, July 27, 2017 – MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter ended June 30, 2017.

“MGM Resorts continues to drive profitability and operational efficiency, as the Company produced diluted earnings per share of $0.36 in the second quarter and our domestic resorts exhibited Adjusted Property EBITDA and margin growth on a same-store basis. CityCenter reported another quarter of exceptional results driven by Aria. Our results benefited from the addition of MGM National Harbor and Borgata, which continue to lead their respective markets. In Macau, we are excited to bring world-class entertainment and diversified attractions to the marketplace with the opening of MGM Cotai in the fourth quarter,” said Jim Murren, Chairman & CEO of MGM Resorts. “We remain squarely on our path to generate the best possible cash flow performance and return value to our shareholders. This quarter’s results clearly demonstrate that.”

Financial Highlights:

•

Diluted earnings per share for the second quarter of 2017 of $0.36, including a benefit of $0.04 related to a Borgata property tax settlement and a benefit of $0.05 from a modification of the 2016 NV Energy exit fee, compared to $0.83 in the prior year quarter, which included $0.57 related to a gain on CityCenter’s sale of Crystals;

•

Net revenues increase of 22% over the prior year quarter at the Company’s domestic resorts to $2.1 billion, due to the inclusion of MGM National Harbor and Borgata, and a decrease of 1% on a same-store basis primarily due to lower year over year table games hold;

•

REVPAR⁽¹⁾growth of 1.2% over the prior year quarter at the Company’s Las Vegas Strip resorts;

•

Operating income of $520 million at the Company’s domestic resorts, a 33% increase over the prior year quarter, including the impact of $41 million related to the NV Energy exit fee modification and $36 million related to the Borgata property tax settlement;

•

Net income attributable to MGM Resorts of $211 million, compared to $474 million in the prior year quarter;

•

Adjusted Property EBITDA⁽²⁾ growth of 28% over the prior year quarter to $658 million at the Company’s domestic resorts, and an increase of 1% on a same-store basis;

•

Same-store operating margin of 25.1% in the current quarter at the Company’s domestic resorts, an increase of 205 basis points compared to the prior year quarter;

•

Same-store Adjusted Property EBITDA margin of 30.8% at the Company’s domestic resorts, an increase of 44 basis points compared to the prior year quarter;

•

MGM China operating income of $43 million compared to $51 million in the prior year quarter, and Adjusted EBITDA of $116 million, a 2% decrease compared to the prior year quarter; and

•

CityCenter operating income of $57 million and Adjusted EBITDA of $105 million, a 36% increase in Adjusted EBITDA compared to the prior year quarter.

Certain Items Affecting Second Quarter Results

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

Page 1 of 14


Three months ended June 30,	2017			2016

Borgata property tax settlement	$	0.04		$	—
NV Energy exit expense		0.05			—
Preopening and start-up expenses		(0.02	)		(0.03	)
Property transactions, net		(0.01	)		—
Income from unconsolidated affiliates:
Gain on the sale of Crystals		—			0.57

Domestic Resorts

Casino revenue for the second quarter of 2017 increased 41% compared to the prior year quarter, due primarily to the acquisition of Borgata Hotel Casino and Spa (“Borgata”) in August 2016 and the MGM National Harbor opening in December 2016, partially offset by a decrease in table games revenue. Casino revenues decreased 5% on a same-store basis compared to the prior year quarter. Same-store table games revenue decreased 20% primarily due to lower year over year table games hold. Same-store slot revenues increased 3%.

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


Three months ended June 30,	2017			2016

	*(Dollars in millions)*
Table Games Drop	$	872		$	905
Table Games Win %		20.9	%		25.6%
Slot Handle	$	3,053		$	2,953
Slot Hold %		8.7	%		8.8%

Domestic resorts rooms revenue increased 9% compared to the prior year quarter. On a same-store basis, rooms revenue increased 1% compared to the prior year quarter. Las Vegas Strip REVPAR increased 1.2%.

Mr. Murren added, “The evolution of our continuous improvement strategies have yielded strong profit opportunities with an emphasis on margin growth and maximizing cash flow.”

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


Three months ended June 30,	2017			2016

Occupancy %		94	%		95%
Average Daily Rate (ADR)	$	161			$ 157
Revenue per Available Room (REVPAR)	$	151			$ 149

Operating income at the Company’s domestic resorts was $520 million for the second quarter of 2017 compared to $390 million in the prior year quarter and benefited from $36 million related to Borgata’s share of a property tax settlement from Atlantic City, as well as $41 million related to a modification of the 2016 NV Energy exit fee. Domestic resorts Adjusted Property EBITDA increased 28% to $658 million in the second quarter of 2017 and was positively impacted by $101 million of Adjusted Property EBITDA from Borgata, which includes the property tax settlement discussed above, and $37 million of Adjusted Property EBITDA from MGM National Harbor. Same-store Adjusted Property EBITDA increased 1% compared to the prior year quarter.

Mr. Murren concluded, “As we look to the third quarter, we face a challenging comparison at our Las Vegas Strip resorts due to favorable table games hold of 25% and RevPAR growth of 10.7% in the third quarter of

Page 2 of 14

2016. We also continue to see higher than anticipated disruption at Monte Carlo as the property undergoes its transformation to Park MGM. Despite these considerations, given our strong event calendar, we anticipate third quarter revenues to increase slightly, with our Strip REVPAR expected to grow 2%-3%. We anticipate our Adjusted Property EBITDA margins to modestly increase.”

MGM China

Key second quarter results for MGM China include:

•

Net revenues of $449 million, a 1% decrease compared to the prior year quarter;

•

Main floor table games revenue decreased 2% compared to the prior year quarter due to an 8% decrease in volume partially offset by an increase in hold percentage to 19.3% in the current year quarter, from 18.2% in the prior year quarter, and against 22.2% hold percentage in the first quarter of 2017;

•

VIP table games revenue increased 1% compared to the prior year quarter due to a 3% increase in turnover partially offset by a decrease in hold percentage to 2.9% in the current year quarter, from 3.1% in the prior year quarter, and against 3.4% hold percentage in the first quarter of 2017;

•

Operating income was $43 million compared to $51 million in the prior year quarter;

•

Adjusted EBITDA decreased 2% to $116 million, compared to $119 million in the prior year quarter, including $8 million of license fee expense in both the current and prior year quarters; and

•

Operating margin was 9.6% in the current year quarter, and Adjusted EBITDA margin was 25.9% compared to 26.4% in the prior year quarter.

MGM China paid the previously announced $78 million final 2016 dividend in June 2017, of which $44 million was received by MGM Resorts.

Unconsolidated Affiliates

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


Three months ended June 30,	2017		2016

	*(In thousands)*
CityCenter	$	37,646	$	416,144
Borgata		—		27,376
Other		2,937		4,789

	$	40,583	$	448,309

The Company’s share of CityCenter Holdings, LLC (“CityCenter”) operating results for the second quarter of 2017, including certain basis difference adjustments, was $38 million which included $4 million related to our share of CityCenter’s portion of the NV Energy exit fee modification. In the prior year quarter, we recorded a $406 million gain related to the sale of The Shops at Crystals (“Crystals”), and CityCenter’s results included $20 million of accelerated depreciation associated with the April 2016 closure of the Zarkana theatre.

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

•

Net revenues from resort operations were $314 million, a 10% increase compared to the prior year quarter, due primarily to an increase in casino revenues;

•

Operating income from resort operations was $58 million and included $8 million related to the NV Energy exit fee modification discussed above, compared to operating income of $0.2 million in the

Page 3 of 14

prior year quarter, which included $20 million of accelerated depreciation related to the Zarkana theatre closure;

•

Adjusted EBITDA from resort operations was $106 million, a 36% increase compared to the prior year quarter;

•

Aria’s table games volume increased 14% and table games hold percentage was 26.8%, compared to 19.5% in the prior year quarter;

•

REVPAR at Aria increased 3% compared to the prior year quarter to $236; and

•

Vdara reported REVPAR of $188 in the current year quarter, and Adjusted EBITDA increased 23% to $10 million compared to the prior year quarter.

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

MGM Growth Properties

During the second quarter of 2017, the Company made rent payments to MGP in the amount of $165 million and received distributions of $72 million from MGM Growth Properties Operating Partnership LP (the “Operating Partnership”). On June 15, 2017, MGP’s Board of Directors approved a quarterly dividend of $0.3950 per Class A share totaling $23 million and representing a 1.9% increase over the prior annual dividend rate, which was paid on July 14, 2017 to holders of record on June 30, 2017. The Company concurrently received a $73 million distribution attributable to its ownership of Operating Partnership units.

MGM Resorts Dividend

On July 26, 2017, the Company’s Board of Directors approved a quarterly dividend of $0.11 per share totaling $63 million, which will be paid on September 15, 2017 to holders of record on September 11, 2017.

Financial Position

The Company’s cash balance at June 30, 2017 was $1.8 billion, which included $403 million at MGM China and $377 million at MGP. At June 30, 2017, the Company had $13.3 billion of principal amount of indebtedness outstanding, including $244 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $2.7 billion MGP Operating Partnership senior credit facility, $2.2 billion outstanding under the $3.0 billion MGM China credit facility, and $455 million outstanding under the $525 million MGM National Harbor credit facility.

“MGM Resorts continues to strengthen its financial and strategic position,” said Dan D’Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. “In July, we used excess cash on hand to redeem all of our outstanding $475 million 11.375% senior notes due 2018, which further enhances our capital structure and overall cost of debt. We believe our strong free cash flows will continue to allow us to concurrently return capital to our shareholders, strengthen our balance sheet and prudently grow our business through strategic investments.”

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Conference Call Details

MGM Resorts will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through 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 5199705. A replay of the call will be available through Thursday, August 3, 2017. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10110178. The call will be archived at www.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at www.mgmresorts.investorroom.com for reference during the earnings call.

1 REVPAR is hotel revenue per available room.

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

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

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

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

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

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

Page 5 of 14

* * *

About MGM Resorts International

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

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company’s public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company’s expectations regarding future results and the Company’s financial outlook (including REVPAR and other guidance), the payment of any future cash dividends on the Company’s common stock, the Company’s ability to generate future cash flow growth and to execute on future development and other projects (including the opening of MGM Cotai expected to take place in the fourth quarter of 2017) and the Company’s ability to execute its strategic plan and improve its financial flexibility. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.


MGM RESORTS CONTACTS:

Investment Community				News Media
CATHERINE PARK				MARY HYNES
Executive Director of Investor Relations				Director of Corporate Communications
(702) 693-8711 or cpark@mgmresorts.com				(702) 692-6801 or mhynes@mgmresorts.com

Page 6 of 14

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

2017

2016

2017

2016

Revenues:

Casino

1,405,063

1,127,404

2,910,452

2,261,760

Rooms

542,470

498,904

1,104,737

988,390

Food and beverage

466,546

412,766

911,015

789,871

Entertainment

138,361

121,853

268,708

240,179

Retail

56,830

52,432

104,806

97,905

Other

161,367

134,120

301,942

251,645

Reimbursed costs

99,293

100,795

199,508

201,844

2,869,930

2,448,274

5,801,168

4,831,594

Less: Promotional allowances

(228,193

)

(178,772

)

(451,252

)

(352,406

)

2,641,737

2,269,502

5,349,916

4,479,188

Expenses:

Casino

763,259

620,305

1,567,854

1,260,874

Rooms

152,735

142,252

307,571

286,994

Food and beverage

261,495

239,452

511,340

460,748

Entertainment

108,618

98,827

208,557

191,115

Retail

27,278

24,085

50,386

46,086

Other

96,265

87,253

185,889

167,021

Reimbursed costs

99,292

100,795

199,507

201,844

General and administrative

354,463

321,407

743,298

629,950

Corporate expense

79,408

81,803

152,581

153,051

NV Energy exit expense

(40,629

)

(40,629

)

Preopening and start-up expenses

21,093

24,824

36,159

46,784

Property transactions, net

13,243

854

14,939

5,985

Depreciation and amortization

244,754

206,899

494,523

406,738

2,181,274

1,948,756

4,431,975

3,857,190

Income from unconsolidated affiliates

40,583

448,309

80,286

463,011

Operating income

501,046

769,055

998,227

1,085,009

Non-operating income (expense):

Interest expense, net of amounts capitalized

(174,058

)

(180,352

)

(348,117

)

(365,021

)

Non-operating items from unconsolidated affiliates

(10,556

)

(15,885

)

(17,477

)

(34,097

)

Other, net

(751

)

(49,840

)

(1,568

)

(50,405

)

(185,365

)

(246,077

)

(367,162

)

(449,523

)

Income before income taxes

315,681

522,978

631,065

635,486

Provision for income taxes

(74,061

)

(8,480

)

(136,436

)

(29,790

)

Net income

241,620

514,498

494,629

605,696

Less: Net income attributable to noncontrolling interests

(31,009

)

(40,145

)

(77,171

)

(64,544

)

Net income attributable to MGM Resorts International

210,611

474,353

417,458

541,152

Per share of common stock:

Basic:

Net income attributable to MGM Resorts International

0.37

0.84

0.73

0.96

Weighted average shares outstanding

574,931

565,459

574,668

565,257

Diluted:

Net income attributable to MGM Resorts International

0.36

0.83

0.72

0.95

Weighted average shares outstanding

582,056

570,762

581,112

570,108

Page 7 of 14

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)


	June 30, 2017		December 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	1,757,062	$	1,446,581
Accounts receivable, net		469,126		542,924
Inventories		103,119		97,733
Income tax receivable		7,362		-
Prepaid expenses and other		148,462		142,349

Total current assets		2,485,131		2,229,587


Property and equipment, net		18,896,912		18,425,023

Other assets:
Investments in and advances to unconsolidated affiliates		980,885		1,220,443
Goodwill		1,807,772		1,817,119
Other intangible assets, net		3,972,046		4,087,706
Other long-term assets, net		400,185		393,423

Total other assets		7,160,888		7,518,691

	$	28,542,931	$	28,173,301


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	206,144	$	250,477
Construction payable		254,324		270,361
Income taxes payable		-		10,654
Current portion of long-term debt		472,590		8,375
Accrued interest on long-term debt		147,438		159,028
Other accrued liabilities		1,599,072		1,594,526

Total current liabilities		2,679,568		2,293,421


Deferred income taxes, net		2,560,127		2,551,228
Long-term debt, net		12,725,268		12,979,220
Other long-term obligations		289,630		325,981
Redeemable noncontrolling interest		57,341		54,139
Stockholders’ equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 575,008,760 and 574,123,706 shares		5,750		5,741
Capital in excess of par value		5,677,966		5,653,575
Retained earnings		836,840		545,811
Accumulated other comprehensive income (loss)		(9,148)		15,053

Total MGM Resorts International stockholders’ equity		6,511,408		6,220,180
Noncontrolling interests		3,719,589		3,749,132

Total stockholders’ equity		10,230,997		9,969,312

	$	28,542,931	$	28,173,301

Page 8 of 14

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

2017

2016

2017

2016

Bellagio

312,722

332,812

653,976

662,551

MGM Grand Las Vegas

298,289

300,232

565,815

568,686

Mandalay Bay

245,295

237,980

498,328

468,161

The Mirage

147,620

153,041

319,951

297,636

Luxor

101,573

95,144

203,200

188,016

New York-New York

88,729

83,056

178,668

164,427

Excalibur

82,793

78,453

161,773

152,741

Monte Carlo

65,318

71,208

137,851

140,928

Circus Circus Las Vegas

62,102

61,235

120,823

118,192

MGM Grand Detroit

142,675

140,462

286,907

281,327

Beau Rivage

94,393

99,388

183,570

188,825

Gold Strike Tunica

42,189

41,480

85,011

82,224

Borgata

209,427

410,508

National Harbor

177,788

350,947

Domestic resorts

2,070,913

1,694,491

4,157,328

3,313,714

MGM China

448,743

451,951

951,117

920,980

Management and other operations

122,081

123,060

241,471

244,494

2,641,737

2,269,502

5,349,916

4,479,188

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

2017

2016

2017

2016

Bellagio

110,953

117,538

240,060

234,189

MGM Grand Las Vegas

94,074

97,489

167,724

178,383

Mandalay Bay

68,272

63,203

146,389

121,325

The Mirage

38,374

35,848

100,469

74,178

Luxor

32,911

26,054

65,715

51,445

New York-New York

33,224

30,478

67,136

61,381

Excalibur

28,653

24,954

57,451

48,831

Monte Carlo

16,784

21,820

39,238

43,120

Circus Circus Las Vegas

16,239

13,172

32,197

26,465

MGM Grand Detroit

45,413

43,790

90,017

83,832

Beau Rivage

21,105

28,036

41,592

50,835

Gold Strike Tunica

13,261

12,701

27,987

26,030

Borgata

101,419

160,342

National Harbor

36,980

69,120

Domestic resorts

657,662

515,083

1,305,437

1,000,014

MGM China

116,320

119,196

259,302

233,319

Unconsolidated resorts (1)

40,583

448,309

80,286

463,011

Management and other operations

9,097

4,372

20,013

8,487

823,662

1,086,960

1,665,038

1,704,831

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

Page 9 of 14

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, 2017

Operating
income (loss)

NV Energy exit
expense

Preopening and
start-up
expenses

Property
transactions, net

Depreciation and
amortization

Adjusted
EBITDA

Bellagio

95,886

(6,970)

21,999

110,953

MGM Grand Las Vegas

82,456

(7,424)

611

18,431

94,074

Mandalay Bay

52,255

(8,524)

(10)

24,551

68,272

The Mirage

32,495

(4,043)

117

9,805

38,374

Luxor

25,819

(3,394)

1,165

9,321

32,911

New York-New York

28,845

(2,025)

6,350

33,224

Excalibur

26,521

(2,658)

203

4,587

28,653

Monte Carlo

(2,082)

(2,461)

439

9,959

10,929

16,784

Circus Circus Las Vegas

14,264

(3,130)

450

496

4,159

16,239

MGM Grand Detroit

39,719

5,694

45,413

Beau Rivage

15,148

5,952

21,105

Gold Strike Tunica

10,983

2,272

13,261

Borgata

80,093

1,242

416

19,668

101,419

National Harbor

17,991

153

18,836

36,980

Domestic resorts

520,393

(40,629)

2,284

13,060

162,554

657,662

MGM China

43,039

13,334

183

59,764

116,320

Unconsolidated resorts (1)

40,583

Management and other operations

7,307

1,790

9,097

611,322

(40,629)

15,618

13,243

224,108

823,662

Stock compensation

(12,046)

Corporate

(98,230)

5,475

20,646

(72,109)

501,046

(40,629)

21,093

13,243

244,754

739,507

Three Months Ended June 30, 2016

Operating
income (loss)

NV Energy exit
expense

Preopening and
start-up
expenses

Property
transactions, net

Depreciation and
amortization

Adjusted
EBITDA

Bellagio

95,085

22,393

117,538

MGM Grand Las Vegas

79,293

(263)

18,459

97,489

Mandalay Bay

40,629

284

22,275

63,203

The Mirage

26,132

(413)

10,129

35,848

Luxor

15,161

1,444

9,363

26,054

New York-New York

25,006

372

5,003

30,478

Excalibur

20,741

203

4,010

24,954

Monte Carlo

9,494

145

12,120

21,820

Circus Circus Las Vegas

9,199

(4)

3,977

13,172

MGM Grand Detroit

37,815

5,975

43,790

Beau Rivage

21,460

(72)

6,648

28,036

Gold Strike Tunica

10,273

(4)

2,432

12,701

Domestic resorts

390,288

1,976

122,784

515,083

MGM China

51,453

6,540

1,281

59,922

119,196

Unconsolidated resorts (1)

447,504

805

448,309

Management and other operations

2,521

1,851

4,372

891,766

9,321

1,316

184,557

1,086,960

Stock compensation

(10,440)

Corporate

(112,271)

15,503

(462)

22,342

(74,888)

769,055

24,824

854

206,899

1,001,632

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

Page 10 of 14

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, 2017

Operating
income (loss)

NV Energy exit
expense

Preopening and
start-up
expenses

Property
transactions, net

Depreciation and
amortization

Adjusted
EBITDA

Bellagio

202,762

(6,970)

123

44,145

240,060

MGM Grand Las Vegas

138,278

(7,424)

844

36,019

167,724

Mandalay Bay

105,745

(8,524)

(10)

49,178

146,389

The Mirage

85,255

(4,043)

117

19,140

100,469

Luxor

48,902

(3,394)

1,164

19,043

65,715

New York-New York

53,445

(2,025)

(8)

183

15,541

67,136

Excalibur

51,062

(2,658)

258

8,789

57,451

Monte Carlo

6,735

(2,461)

1,049

9,990

23,925

39,238

Circus Circus Las Vegas

25,982

(3,130)

450

735

8,160

32,197

MGM Grand Detroit

78,544

11,473

90,017

Beau Rivage

29,598

11,989

41,592

Gold Strike Tunica

23,396

(22)

4,613

27,987

Borgata

118,977

1,277

1,220

38,868

160,342

National Harbor

28,599

227

40,294

69,120

Domestic resorts

997,280

(40,629)

3,002

14,607

331,177

1,305,437

MGM China

116,229

23,158

332

119,583

259,302

Unconsolidated resorts (1)

80,286

Management and other operations

16,421

3,592

20,013

1,210,216

(40,629)

26,160

14,939

454,352

1,665,038

Stock compensation

(25,409)

Corporate

(186,580)

9,999

40,171

(136,410)

998,227

(40,629)

36,159

14,939

494,523

1,503,219

Six Months Ended June 30, 2016

Operating
income (loss)

NV Energy exit
expense

Preopening and
start-up
expenses

Property
transactions, net

Depreciation and
amortization

Adjusted
EBITDA

Bellagio

189,253

44,875

234,189

MGM Grand Las Vegas

141,555

500

36,328

178,383

Mandalay Bay

75,484

1,158

44,654

121,325

The Mirage

54,126

(413)

20,465

74,178

Luxor

31,046

1,444

373

18,582

51,445

New York-New York

50,493

372

100

10,416

61,381

Excalibur

37,710

2,969

8,152

48,831

Monte Carlo

26,271

145

152

16,552

43,120

Circus Circus Las Vegas

18,288

130

8,047

26,465

MGM Grand Detroit

71,846

11,986

83,832

Beau Rivage

37,650

(62)

13,247

50,835

Gold Strike Tunica

21,104

4,833

26,030

Domestic resorts

754,826

1,990

5,061

238,137

1,000,014

MGM China

98,905

12,448

1,271

120,695

233,319

Unconsolidated resorts (1)

459,924

3,087

463,011

Management and other operations

3,585

1,150

3,752

8,487

1,317,240

18,675

6,332

362,584

1,704,831

Stock compensation

(20,309)

Corporate

(211,922)

28,109

(347)

44,154

(140,006)

1,085,009

46,784

5,985

406,738

1,544,516

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

Page 11 of 14

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

2017

2016

2017

2016

Net income attributable to MGM Resorts International

210,611

474,353

417,458

541,152

Plus: Net income attributable to noncontrolling interests

31,009

40,145

77,171

64,544

Net income

241,620

514,498

494,629

605,696

Provision for income taxes

74,061

8,480

136,436

29,790

Income before income taxes

315,681

522,978

631,065

635,486

Non-operating (income) expense:

Interest expense, net of amounts capitalized

174,058

180,352

348,117

365,021

Other, net

11,307

65,725

19,045

84,502

185,365

246,077

367,162

449,523

Operating income

501,046

769,055

998,227

1,085,009

NV Energy exit expense

(40,629)

Preopening and start-up expenses

21,093

24,824

36,159

46,784

Property transactions, net

13,243

854

14,939

5,985

Depreciation and amortization

244,754

206,899

494,523

406,738

Adjusted EBITDA

739,507

1,001,632

1,503,219

1,544,516

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF DOMESTIC RESORTS ADJUSTED PROPERTY EBITDA TO DOMESTIC RESORTS SAME-STORE

ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

2017

2016

2017

2016

Domestic resorts Adjusted Property EBITDA

657,662

515,083

1,305,437

1,000,014

Adjusted Property EBITDA related to Borgata

(101,419)

(160,342)

Adjusted Property EBITDA related to National Harbor

(36,980)

(69,120)

Domestic resorts same-store Adjusted Property EBITDA

519,263

515,083

1,075,975

1,000,014

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

2017

2016

2017

2016

Bellagio

Occupancy %

94.3%

94.8%

93.7%

93.2%

Average daily rate (ADR)

$281

$275

$287

$278

Revenue per available room (REVPAR)

$265

$261

$269

$259

MGM Grand Las Vegas

Occupancy %

93.9%

94.8%

92.6%

92.8%

ADR

$188

$184

$195

$185

REVPAR

$177

$175

$180

$172

Mandalay Bay

Occupancy %

93.9%

94.1%

92.5%

92.3%

ADR

$212

$209

$225

$216

REVPAR

$199

$197

$208

$199

The Mirage

Occupancy %

96.7%

96.9%

94.3%

94.9%

ADR

$173

$171

$183

$176

REVPAR

$168

$166

$173

$167

Luxor

Occupancy %

96.1%

97.6%

94.7%

95.9%

ADR

$114

$110

$120

$110

REVPAR

$110

$107

$114

$106

New York-New York

Occupancy %

97.1%

98.7%

96.2%

97.8%

ADR

$143

$134

$149

$139

REVPAR

$138

$132

$143

$136

Excalibur

Occupancy %

95.5%

96.9%

93.0%

94.3%

ADR

$97

$94

$103

$95

REVPAR

$93

$91

$96

$90

Monte Carlo

Occupancy %

94.4%

98.7%

95.0%

97.3%

ADR

$119

$122

$126

$124

REVPAR

$112

$120

$121

Circus Circus Las Vegas

Occupancy %

85.7%

84.8%

83.1%

81.8%

ADR

$79

$76

$85

$77

REVPAR

$68

$64

$70

$63

Page 12 of 14

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2017

June 30,
2016

June 30,
2017

June 30,
2016

Aria

267,074

240,800

541,957

495,525

Vdara

30,955

29,846

63,211

59,634

Mandarin Oriental

16,135

16,191

34,588

33,219

Resort operations

314,164

286,837

639,756

588,378

Other

2,149

314,164

288,986

639,756

590,527

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2017

June 30,
2016

June 30,
2017

June 30,
2016

Net income

37,845

397,042

82,282

337,316

Less: Income from discontinued operations

(411,592)

(400,035)

Income (loss) from continuing operations

37,845

(14,550)

82,282

(62,719)

Non-operating (income) expense:

Interest expense, net of amounts capitalized

15,066

14,560

27,826

32,004

Other, net

4,323

(429)

3,705

3,153

19,389

14,131

31,531

35,157

Operating income (loss)

57,234

(419)

113,813

(27,562)

NV Energy exit expense

(8,250)

Property transactions, net

636

(574)

226

(2,012)

Depreciation and amortization

54,882

78,100

110,017

197,696

Adjusted EBITDA

104,502

77,107

215,806

168,122

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2017

Operating
income (loss)

NV Energy exit
expense

Property
transactions, net

Depreciation and
amortization

Adjusted EBITDA

Aria

56,903

(8,250)

636

44,921

94,210

Vdara

3,218

6,845

10,063

Mandarin Oriental

(1,713)

3,116

1,403

Resort operations

58,408

(8,250)

636

54,882

105,676

Other

(1,174)

57,234

(8,250)

636

54,882

104,502

Three Months Ended June 30, 2016

Operating
income (loss)

NV Energy exit
expense

Property
transactions, net

Depreciation and
amortization

Adjusted EBITDA

Aria

769

(581)

68,028

68,216

Vdara

1,197

6,972

8,176

Mandarin Oriental

(1,748)

3,100

1,352

Resort operations

218

(574)

78,100

77,744

Other

(637)

(419)

(574)

78,100

77,107

Page 13 of 14

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2017

Operating
income (loss)

NV Energy exit
expense

Property
transactions, net

Depreciation and
amortization

Adjusted EBITDA

Aria

111,017

(8,250)

225

90,040

193,032

Vdara

7,112

13,773

20,886

Mandarin Oriental

(2,105)

6,204

4,099

Resort operations

116,024

(8,250)

226

110,017

218,017

Other

(2,211)

113,813

(8,250)

226

110,017

215,806

Six Months Ended June 30, 2016

Operating
income (loss)

NV Energy exit
expense

Property
transactions, net

Depreciation and
amortization

Adjusted EBITDA

Aria

(27,559)

(472)

177,589

149,558

Vdara

3,460

(329)

13,908

17,039

Mandarin Oriental

(2,984)

6,199

3,215

Resort operations

(27,083)

(801)

197,696

169,812

Other

(479)

(1,211)

(1,690)

(27,562)

(2,012)

197,696

168,122

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2017

June 30,
2016

June 30,
2017

June 30,
2016

Aria

Occupancy %

94.3%

93.8%

92.9%

92.1%

ADR

$250

$243

$262

$249

REVPAR

$236

$228

$243

$229

Vdara

Occupancy %

90.6%

93.0%

90.3%

91.3%

ADR

$207

$201

$216

$205

REVPAR

$188

$187

$195

$187

Page 14 of 14

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