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

Attached files

file	filename
8-K - 8-K - MGM Resorts International	mgm-8k_20180802.htm

Exhibit 99.1

MGM RESORTS INTERNATIONAL REPORTS SECOND QUARTER

FINANCIAL AND OPERATING RESULTS

Las Vegas, Nevada, August 2, 2018 – MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter ended June 30, 2018. On January 1, 2018, the Company adopted the new revenue recognition accounting standard (ASC 606). As such, certain previously reported 2017 numbers have been retrospectively adjusted under the new standard to assist with comparability to the prior period.

“Our second quarter came in better than we expected and we made significant progress to capitalize on future growth opportunities in sports betting and Japan,” said Jim Murren, Chairman and CEO of MGM Resorts International. “Earlier this week, we announced major alliances with GVC, Boyd Gaming and the NBA to cement our leadership position in the developing sports betting market in the U.S. Further, the recent passage of Japan’s Integrated Resort Implementation Act is another historic milestone, and we believe we are well positioned in that market.”

Said Mr. Murren, “We believe our continued focus on maximizing our margins, the near-term completion of our development pipeline, and our ability to accretively sell assets to MGM Growth Properties, will further accelerate our free cash flow generation. We are confident that we will continue to execute on our long-term strategies and deliver value to our shareholders, as evidenced by the nearly $600 million in share repurchases we made during the quarter.”

Second Quarter 2018 Financial Highlights:

•

Diluted earnings per share for the second quarter of $0.21, compared to diluted earnings per share of $0.36 in the prior year quarter;

•

Net revenues increased 3% over the prior year quarter at the Company’s domestic resorts to $2.2 billion. Excluding Park MGM, net revenues increased 4% compared to the prior year quarter;

•

REVPAR⁽¹⁾increased 2.8% compared to the prior year quarter at the Company’s Las Vegas Strip resorts;

•

Operating income of $449 million at the Company’s domestic resorts, compared to $520 million in the prior year quarter, which benefited from $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 $124 million, compared to $210 million in the prior year quarter;

•

Domestic resorts Adjusted Property EBITDA⁽²⁾ of $626 million, a 5% decrease compared to $657 million in the prior year quarter, which benefited from the $36 million Borgata property tax settlement. Excluding Park MGM, Adjusted Property EBITDA decreased 2% compared to the prior year quarter;

•

Operating margin of 20.7% in the current quarter at the Company’s domestic resorts, a 394 basis point decrease compared to the prior year quarter;

•

Adjusted Property EBITDA margin of 28.9% in the current quarter at the Company’s domestic resorts, a 227 basis point decrease compared to the prior year quarter, and a 183 basis point decrease compared to the prior year quarter excluding Park MGM;

•

MGM China operating income of $46 million in both the current and the prior year quarters and Adjusted Property EBITDA of $120 million, up slightly compared to the prior year quarter, primarily as a result of the ramp-up phase of operations at MGM Cotai and lower win percentages for both main floor and VIP table games compared to the prior year quarter;

•

CityCenter operating income from resort operations of $76 million and Adjusted EBITDA from resort operations of $131 million, a 25% increase in Adjusted EBITDA from resort operations compared to the prior year quarter;

•

Distributed $65 million via the Company’s quarterly dividend of $0.12 per share; and

•

Repurchased $595 million of the Company’s common shares in the second quarter.

Page 1 of 15

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):

Three Months Ended June 30,	2018			2017
Borgata property tax settlement	$	—		$	0.04
NV Energy exit expense		—			0.05
Preopening and start-up expenses		(0.03	)		(0.02	)
Property transactions, net		(0.02	)		(0.01	)

Domestic Resorts

Casino revenue for the second quarter of 2018 increased 8% compared to the prior year quarter, due primarily to a 14% increase in table games win primarily driven by the Company’s Las Vegas Strip resorts and a 5% increase in slots win, primarily driven by an increase in slots volume at the Company’s other domestic resorts.

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

Three Months Ended June 30,	2018			2017
	(Dollars in millions)
Table Games Drop	$	911		$	872
Table Games Win %		25.2	%		20.9	%
Slots Handle	$	3,098		$	3,053
Slots Hold %		9.1	%		9.0	%

The following table shows key gaming statistics for the Company’s other domestic resorts:

Three Months Ended June 30,	2018			2017
	(Dollars in millions)
Table Games Drop	$	969		$	954
Table Games Win %		18.9	%		18.8	%
Slots Handle	$	5,274		$	4,890
Slots Hold %		9.0	%		9.1	%

Domestic resorts rooms revenue increased 1% compared to the prior year quarter due primarily to a 2.8% increase in REVPAR at the Company’s Las Vegas Strip resorts.

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

Three Months Ended June 30,	2018	2017
Occupancy %	93%	94%
Average Daily Rate (ADR)	$161	$156
Revenue per Available Room (REVPAR)	$150	$146

Page 2 of 15

Operating income at the Company’s domestic resorts was $449 million for the second quarter of 2018 and was negatively impacted by disruption related to the repositioning and rebranding at Park MGM. Operating income in the prior year quarter was $520 million, which 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 decreased 5% to $626 million in the second quarter of 2018. Excluding Park MGM, Adjusted Property EBITDA decreased 2% compared to the prior year quarter.

Mr Murren continued, “Our Las Vegas Strip resorts benefited in the prior year third quarter from a stronger citywide convention base, two major boxing events and a higher than normal table games hold. The difficult comparison in citywide convention attendees has resulted in a more negative than anticipated hotel mix shift creating short-term competitive rate pressure in the current year third quarter. In addition, the transition of Park MGM continues to create short-term headwinds but is on track to complete its transformation by the end of this year.”

As a result of these factors, the Company expects third quarter net revenues at its Las Vegas Strip resorts to be lower by approximately 8% to 10%, with REVPAR down 5% to 7%. The Company also expects Las Vegas Strip Adjusted Property EBITDA margins to be approximately 28%, or around 29% excluding Park MGM.

The Company expects its full year 2018 net revenues and REVPAR at its Las Vegas Strip resorts to decrease by a low single digit percentage, and an Adjusted Property EBITDA margin of approximately 29%, or around 30% excluding Park MGM.

Corporate Expense

Corporate expense, including share-based compensation for corporate employees was $103 million in the second quarter of 2018, an increase of $24 million compared to the prior year quarter, due primarily to an increase in corporate brand campaign expenses of $9 million and the inclusion of MGM China corporate expenses of $5 million. Certain expenses incurred by MGM China are now classified as part of the Company’s corporate expense in 2018. Prior to 2018, such expenses had been classified within general and administrative expense.

MGM China

Key second quarter results for MGM China include:

•

Net revenues of $561 million, a 32% increase compared to the prior year quarter. The current quarter benefited from the opening of MGM Cotai on February 13, 2018, which contributed $185 million of net revenues;

•

Main floor table games win increased 42% compared to the prior year quarter due to the opening of MGM Cotai;

•

VIP table games win decreased 7% compared to the prior year quarter due primarily to a decrease in the VIP win percentage to 2.3% in the current quarter partially offset by a 19% increase in turnover predominantly at MGM Macau;

•

Operating income was $46 million in both the current and the prior year quarters;

•

Adjusted Property EBITDA increased 1% to $120 million compared to $119 million in the prior year quarter. The current quarter included $10 million of license fee expense compared to $8 million in the prior year quarter; and

•

Operating margin was 8.3% in the current year quarter, and Adjusted Property EBITDA margin was 21.4% in the current quarter compared to 28.0% in the prior year quarter, due primarily to the ramp-up phase of operations at MGM Cotai and lower win percentages for both main floor and VIP table games compared to the prior year quarter.

Page 3 of 15

The following table shows key gaming statistics for MGM China:

Three Months Ended June 30,	2018			2017
	(Dollars in millions)
VIP Table Games Turnover	$	10,296		$	8,648
VIP Table Games Win %		2.3	%		2.9	%
Main Floor Table Games Drop	$	1,931		$	1,224
Main Floor Table Games Win %		17.4	%		19.3	%

MGM China paid the previously announced $47 million final 2017 dividend in June 2018, of which $26 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,	2018		2017
	(In thousands)
CityCenter	$	46,070	$	37,702
Other		1,870		2,937
	$	47,940	$	40,639

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

•

Net revenues were $344 million, a 13% increase compared to the prior year quarter, due primarily to increase in casino and non-casino revenues;

•

Aria’s table games win increased 20%, due to an 11% increase in table games drop and an increase in table games hold percentage to 29.1% in the current quarter compared to 26.8% in the prior year quarter;

•

Aria’s slots win increased 12%, due primarily to a 10% increase in volume compared to the prior year quarter;

•

REVPAR at Aria increased 5% compared to the prior year quarter to $238;

•

REVPAR at Vdara increased 5% compared to the prior year quarter to $193;

•

Operating income from resort operations was $76 million compared to operating income of $60 million in the prior year quarter; and

•

Adjusted EBITDA from resort operations was $131 million, a 25% increase compared to the prior year quarter.

In May 2018, CityCenter paid a $400 million dividend, of which MGM Resorts received its 50% share, or $200 million.

MGM Growth Properties

During the second quarter of 2018, the Company made rent payments to MGM Growth Properties Operating Partnership LP (the “MGP Operating Partnership”) in the amount of $193 million and received distributions of $82 million from the MGP Operating Partnership. On June 15, 2018, the Board of Directors of MGP Growth Properties LLC (“MGP”) approved a quarterly dividend of $0.43 per Class A share (based on a $1.72 dividend on an annualized basis) totaling $30 million and representing a 2.4% increase over the prior annual dividend rate, which was paid on July 16, 2018 to holders of record on June 29, 2018. The Company concurrently received an $84 million distribution attributable to its ownership of MGP Operating Partnership units.

Page 4 of 15

On July 6, 2018, MGP completed the previously announced acquisition of the Hard Rock Rocksino Northfield Park for approximately $1.06 billion. MGP funded the acquisition with cash on hand and borrowings under the MGP Operating Partnership senior secured credit facility.

MGM Resorts Dividend and Share Repurchases

On August 2, 2018, the Company’s Board of Directors approved a quarterly dividend of $0.12 per share totaling approximately $65 million. The dividend will be payable on September 14, 2018 to holders of record on September 10, 2018.

In May 2018, MGM Resorts completed its $1.0 billion share repurchase program and announced a new $2 billion share repurchase program. During the quarter MGM Resorts repurchased approximately 19 million shares of its common stock at an average price of $31.30 per share for an aggregate amount of $595 million. Approximately $1.7 billion remains under the new $2 billion share repurchase program. All shares repurchased under the Company’s program have been retired.

Financial Position

The Company’s cash balance at June 30, 2018 was $1.3 billion, which included $448 million at MGM China and $290 million at the MGP Operating Partnership. At June 30, 2018, the Company had $13.6 billion of principal amount of indebtedness outstanding, including $231 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $3.6 billion MGP Operating Partnership senior secured credit facility and $2.1 billion outstanding under the $3.0 billion MGM China credit facility.

In June 2018, the Company issued $1 billion in aggregate principal amount of 5.750% senior notes due 2025 for net proceeds of $986 million.

“We are gratified by the continued support of the investment community which allowed us to upsize our most recent offering to $1 billion," said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. “We remain committed to achieving our consolidated net leverage target of 3 to 4 times through continued growth of our cash flows.”

Conference Call Details

MGM Resorts will host a conference call at 8:30 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 http://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 2828989. A replay of the call will be available through Thursday, August 9, 2018. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10121912. The call will be archived at http://investors.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at http://investors.mgmresorts.com for reference during the earnings call.

1REVPAR 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, and property transactions, net. “Adjusted Property EBITDA” is Adjusted EBITDA before corporate expense and stock compensation expense, which are not allocated to each property. “Adjusted Property EBITDA margin” is Adjusted Property EBITDA divided by net revenues. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.

Management believes that while items excluded from Adjusted EBITDA, Adjusted Property EBITDA, and Adjusted Property EBITDA margin may be recurring in nature and should not be disregarded in evaluation of the Company’s earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For

Page 5 of 15

example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company’s resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company’s operating resorts’ performance.

Adjusted EBITDA, Adjusted Property EBITDA, and Adjusted Property EBITDA margin should not be construed as alternatives to operating income or net income, as indicators of 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 Adjusted Property EBITDA margin. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA, or Adjusted Property EBITDA margin information may calculate Adjusted EBITDA or 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 are included in the financial schedules in this release.

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

Page 6 of 15

* * *

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 28 unique hotel offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company in 2018 opened MGM COTAI in Macau and the first Bellagio branded hotel in Shanghai. It also is developing MGM Springfield in Massachusetts. The 78,000 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 Company’s ability to generate future cash flow growth, return value to shareholders and further de-lever, expectations in relation to changes in applicable laws and regulations, and the Company’s ability to execute its strategic plan (including the execution of the Company’s development projects) and capital allocations strategy. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS:

Investment Community	News Media
CATHERINE PARK	BRIAN AHERN
Executive Director of Investor Relations	Media Relations Manager
(702) 693-8711 or cpark@mgmresorts.com	media@mgmresorts.com

Page 7 of 15

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2018			2017			2018			2017
Revenues:
Casino	$	1,332,214		$	1,172,758		$	2,726,530		$	2,444,232
Rooms		563,871			541,755			1,103,351			1,100,567
Food and beverage		494,808			485,098			950,219			954,434
Entertainment, retail and other		363,242			353,230			692,992			670,959
Reimbursed costs		104,560			99,292			207,840			199,507
		2,858,695			2,652,133			5,680,932			5,369,699
Expenses:
Casino		741,531			627,361			1,504,180			1,294,296
Rooms		202,968			187,116			392,026			375,785
Food and beverage		376,985			363,011			730,374			716,173
Entertainment, retail and other		243,370			243,836			470,204			467,225
Reimbursed costs		104,560			99,292			207,840			199,507
General and administrative		438,453			354,349			856,343			743,137
Corporate expense		103,438			79,448			202,947			152,580
Preopening and start-up expenses		19,077			21,093			85,994			36,159
Property transactions, net		16,970			13,243			22,868			14,939
NV Energy exit expense		—			(40,629	)		—			(40,629	)
Depreciation and amortization		296,208			244,754			565,030			494,523
		2,543,560			2,192,874			5,037,806			4,453,695
Income from unconsolidated affiliates		47,940			40,639			79,706			80,405
Operating income		363,075			499,898			722,832			996,409

Non-operating income (expense):
Interest expense, net of amounts capitalized		(181,493	)		(174,058	)		(349,402	)		(348,117	)
Non-operating items from unconsolidated affiliates		(11,068	)		(10,556	)		(20,078	)		(17,477	)
Other, net		(6,381	)		(751	)		(8,297	)		(1,568	)
		(198,942	)		(185,365	)		(377,777	)		(367,162	)

Income before income taxes		164,133			314,533			345,055			629,247
Benefit (provision) for income taxes		(23,710	)		(73,660	)		61,669			(135,800	)
Net income		140,423			240,873			406,724			493,447
Less: Net income attributable to noncontrolling interests		(16,646	)		(31,009	)		(59,503	)		(77,171	)
Net income attributable to MGM Resorts International	$	123,777		$	209,864		$	347,221		$	416,276
Earnings per share:
Basic	$	0.21		$	0.36		$	0.60		$	0.72
Diluted	$	0.21		$	0.36		$	0.60		$	0.72

Weighted average common shares outstanding:
Basic		548,433			574,931			556,586			574,668
Diluted		554,339			582,056			563,108			581,112

Page 8 of 15

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

	June 30,			December 31,
	2018			2017
ASSETS
Current assets:
Cash and cash equivalents	$	1,272,872		$	1,499,995
Accounts receivable, net		497,350			542,273
Inventories		109,130			102,292
Income tax receivable		23,124			42,551
Prepaid expenses and other		180,640			189,244
Total current assets		2,083,116			2,376,355

Property and equipment, net		19,863,078			19,635,459

Other assets:
Investments in and advances to unconsolidated affiliates		882,940			1,033,297
Goodwill		1,801,034			1,806,531
Other intangible assets, net		3,776,770			3,877,960
Other long-term assets, net		570,222			430,440
Total other assets		7,030,966			7,148,228
	$	28,977,160		$	29,160,042

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	268,140		$	255,028
Construction payable		418,945			474,807
Current portion of long-term debt		—			158,042
Accrued interest on long-term debt		140,184			135,785
Other accrued liabilities		2,237,524			2,114,635
Total current liabilities		3,064,793			3,138,297

Deferred income taxes, net		1,226,397			1,295,375
Long-term debt, net		13,513,341			12,751,052
Other long-term obligations		245,720			284,416
Redeemable noncontrolling interest		86,968			79,778
Stockholders' equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 537,866,780 and 566,275,789 shares		5,379			5,663
Capital in excess of par value		4,413,814			5,357,709
Retained earnings		2,431,186			2,217,299
Accumulated other comprehensive loss		(3,237	)		(3,610	)
Total MGM Resorts International stockholders' equity		6,847,142			7,577,061
Noncontrolling interests		3,992,799			4,034,063
Total stockholders' equity		10,839,941			11,611,124
	$	28,977,160		$	29,160,042

Page 9 of 15

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

	Three Months Ended				Six Months Ended June 30, 2018
	June 30,		June 30,		June 30,		June 30,
	2018		2017		2018		2017
Bellagio	$	346,377	$	318,451	$	707,165	$	665,869
MGM Grand Las Vegas		311,090		304,842		604,896		577,828
Mandalay Bay		251,890		252,576		496,455		513,471
The Mirage		157,881		150,531		303,540		326,517
Luxor		103,708		102,592		200,459		205,367
New York-New York		92,947		89,584		189,061		180,651
Excalibur		84,233		83,791		163,655		163,695
Park MGM		43,345		65,885		99,602		139,297
Circus Circus Las Vegas		63,043		62,578		121,785		121,823
MGM Grand Detroit		153,211		142,753		300,746		286,735
Beau Rivage		102,793		97,125		199,488		188,773
Gold Strike Tunica		42,273		42,643		83,920		86,080
Borgata		207,859		213,791		400,300		419,386
MGM National Harbor		202,353		178,246		390,603		351,861
Domestic resorts		2,163,003		2,105,388		4,261,675		4,227,353
MGM Macau		376,610		423,911		887,480		899,327
MGM Cotai		184,740		—		269,731		—
MGM China		561,350		423,911		1,157,211		899,327
Management and other operations		134,342		122,834		262,046		243,019
	$	2,858,695	$	2,652,133	$	5,680,932	$	5,369,699

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

	Three Months Ended					Six Months Ended June 30, 2018
	June 30,			June 30,		June 30,		June 30,
	2018			2017		2018		2017
Bellagio	$	126,604		$	111,221	$	267,001	$	240,562
MGM Grand Las Vegas		92,118			94,342		182,199		168,084
Mandalay Bay		66,983			68,332		135,766		146,504
The Mirage		39,768			38,814		72,617		100,992
Luxor		33,556			32,932		62,545		65,747
New York-New York		33,425			33,166		70,336		67,076
Excalibur		28,578			28,685		55,628		57,477
Park MGM		(830	)		16,762		8,373		39,197
Circus Circus Las Vegas		15,703			16,236		30,594		32,183
MGM Grand Detroit		52,135			45,183		98,526		89,003
Beau Rivage		24,393			21,210		47,468		41,496
Gold Strike Tunica		12,400			13,070		24,809		27,548
Borgata		50,917			100,087		94,149		159,504
MGM National Harbor		49,970			36,859		92,076		68,723
Domestic resorts		625,720			656,899		1,242,087		1,304,096
MGM Macau (1)		99,813			118,906		245,648		264,103
MGM Cotai		20,062			—		25,978		—
MGM China		119,875			118,906		271,626		264,103
Unconsolidated resorts (2)		47,940			40,639		79,706		80,405
Management and other operations		12,491			8,693		20,336		19,411
	$	806,026		$	825,137	$	1,613,755	$	1,668,015

(1) In 2017, MGM Macau included certain expenses classified as corporate expense in 2018.
(2) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences.

Page 10 of 15

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, 2018

	Operating income (loss)			NV Energy exit expense		Preopening and start-up expenses		Property transactions, net			Depreciation and amortization		Adjusted EBITDA
Bellagio	$	104,336		$	—	$	—	$	104		$	22,164	$	126,604
MGM Grand Las Vegas		75,477			—		—		267			16,374		92,118
Mandalay Bay		43,811			—		—		53			23,119		66,983
The Mirage		30,072			—		—		512			9,184		39,768
Luxor		23,302			—		—		179			10,075		33,556
New York-New York		27,211			—		—		65			6,149		33,425
Excalibur		23,728			—		—		—			4,850		28,578
Park MGM		(30,517	)		—		1,937		15,410			12,340		(830	)
Circus Circus Las Vegas		11,284			—		—		16			4,403		15,703
MGM Grand Detroit		46,668			—		—		—			5,467		52,135
Beau Rivage		17,785			—		—		26			6,582		24,393
Gold Strike Tunica		10,260			—		—		—			2,140		12,400
Borgata		35,974			—		—		451			14,492		50,917
MGM National Harbor		29,316			—		45		48			20,561		49,970
Domestic resorts		448,707			—		1,982		17,131			157,900		625,720
MGM Macau		82,226			—		—		(167	)		17,754		99,813
MGM Cotai		(35,810	)		—		3,799		6			52,067		20,062
MGM China		46,416			—		3,799		(161	)		69,821		119,875
Unconsolidated resorts (1)		47,940			—		—		—			—		47,940
Management and other operations		10,644			—		—		—			1,847		12,491
		553,707			—		5,781		16,970			229,568		806,026
Stock compensation		(17,286	)		—		—		—			—		(17,286	)
Corporate		(173,346	)		—		13,296		—			66,640		(93,410	)
	$	363,075		$	—	$	19,077	$	16,970		$	296,208	$	695,330

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	$	96,154		$	(6,970	)	$	—	$	38		$	21,999	$	111,221
MGM Grand Las Vegas		82,724			(7,424	)		—		611			18,431		94,342
Mandalay Bay		52,315			(8,524	)		—		(10	)		24,551		68,332
The Mirage		32,935			(4,043	)		—		117			9,805		38,814
Luxor		25,840			(3,394	)		—		1,165			9,321		32,932
New York-New York		28,787			(2,025	)		—		54			6,350		33,166
Excalibur		26,553			(2,658	)		—		203			4,587		28,685
Park MGM		(2,104	)		(2,461	)		439		9,959			10,929		16,762
Circus Circus Las Vegas		14,261			(3,130	)		450		496			4,159		16,236
MGM Grand Detroit		39,489			—			—		—			5,694		45,183
Beau Rivage		15,253			—			—		5			5,952		21,210
Gold Strike Tunica		10,792			—			—		6			2,272		13,070
Borgata		78,761			—			1,242		416			19,668		100,087
MGM National Harbor		17,870			—			153		—			18,836		36,859
Domestic resorts		519,630			(40,629	)		2,284		13,060			162,554		656,899
MGM China		45,625			—			13,334		183			59,764		118,906
Unconsolidated resorts (1)		40,639			—			—		—			—		40,639
Management and other operations		6,903			—			—		—			1,790		8,693
		612,797			(40,629	)		15,618		13,243			224,108		825,137
Stock compensation		(14,632	)		—			—		—			—		(14,632	)
Corporate		(98,267	)		—			5,475		—			20,646		(72,146	)
	$	499,898		$	(40,629	)	$	21,093	$	13,243		$	244,754	$	738,359

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

Page 11 of 15

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, 2018

	Operating income (loss)			NV Energy exit expense		Preopening and start-up expenses		Property transactions, net			Depreciation and amortization		Adjusted EBITDA
Bellagio	$	222,220		$	—	$	—	$	674		$	44,107	$	267,001
MGM Grand Las Vegas		148,808			—		—		615			32,776		182,199
Mandalay Bay		90,469			—		—		(49	)		45,346		135,766
The Mirage		52,686			—		—		1,620			18,311		72,617
Luxor		42,406			—		—		234			19,905		62,545
New York-New York		57,890			—		—		152			12,294		70,336
Excalibur		45,806			—		—		(35	)		9,857		55,628
Park MGM		(39,873	)		—		5,358		17,864			25,024		8,373
Circus Circus Las Vegas		21,533			—		—		215			8,846		30,594
MGM Grand Detroit		87,532			—		—		—			10,994		98,526
Beau Rivage		34,319			—		—		26			13,123		47,468
Gold Strike Tunica		20,438			—		—		46			4,325		24,809
Borgata		64,412			—		—		860			28,877		94,149
MGM National Harbor		50,989			—		111		53			40,923		92,076
Domestic resorts		899,635			—		5,469		22,275			314,708		1,242,087
MGM Macau		209,998			—		—		584			35,066		245,648
MGM Cotai		(108,553	)		—		55,186		6			79,339		25,978
MGM China		101,445			—		55,186		590			114,405		271,626
Unconsolidated resorts (1)		76,385			—		3,321		—			—		79,706
Management and other operations		16,624			—		—		—			3,712		20,336
		1,094,089			—		63,976		22,865			432,825		1,613,755
Stock compensation		(32,903	)		—		—		—			—		(32,903	)
Corporate		(338,354	)		—		22,018		3			132,205		(184,128	)
	$	722,832		$	—	$	85,994	$	22,868		$	565,030	$	1,396,724

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	$	203,264		$	(6,970	)	$	—		$	123		$	44,145	$	240,562
MGM Grand Las Vegas		138,638			(7,424	)		7			844			36,019		168,084
Mandalay Bay		105,860			(8,524	)		—			(10	)		49,178		146,504
The Mirage		85,778			(4,043	)		—			117			19,140		100,992
Luxor		48,934			(3,394	)		—			1,164			19,043		65,747
New York-New York		53,385			(2,025	)		(8	)		183			15,541		67,076
Excalibur		51,088			(2,658	)		—			258			8,789		57,477
Park MGM		6,694			(2,461	)		1,049			9,990			23,925		39,197
Circus Circus Las Vegas		25,968			(3,130	)		450			735			8,160		32,183
MGM Grand Detroit		77,530			—			—			—			11,473		89,003
Beau Rivage		29,502			—			—			5			11,989		41,496
Gold Strike Tunica		22,957			—			—			(22	)		4,613		27,548
Borgata		118,139			—			1,277			1,220			38,868		159,504
MGM National Harbor		28,202			—			227			—			40,294		68,723
Domestic resorts		995,939			(40,629	)		3,002			14,607			331,177		1,304,096
MGM China		121,030			—			23,158			332			119,583		264,103
Unconsolidated resorts (1)		80,405			—			—			—			—		80,405
Management and other operations		15,819			—			—			—			3,592		19,411
		1,213,193			(40,629	)		26,160			14,939			454,352		1,668,015
Stock compensation		(30,210	)		—			—			—			—		(30,210	)
Corporate		(186,574	)		—			9,999			—			40,171		(136,404	)
	$	996,409		$	(40,629	)	$	36,159		$	14,939		$	494,523	$	1,501,401

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

Page 12 of 15

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,		June 30,			June 30,			June 30,
	2018		2017			2018			2017
Net income attributable to MGM Resorts International	$	123,777	$	209,864		$	347,221		$	416,276
Plus: Net income attributable to noncontrolling interests		16,646		31,009			59,503			77,171
Net income		140,423		240,873			406,724			493,447
(Benefit) provision for income taxes		23,710		73,660			(61,669	)		135,800
Income before income taxes		164,133		314,533			345,055			629,247
Non-operating (income) expense:
Interest expense, net of amounts capitalized		181,493		174,058			349,402			348,117
Other, net		17,449		11,307			28,375			19,045
		198,942		185,365			377,777			367,162
Operating income		363,075		499,898			722,832			996,409
NV Energy exit expense		—		(40,629	)		—			(40,629	)
Preopening and start-up expenses		19,077		21,093			85,994			36,159
Property transactions, net		16,970		13,243			22,868			14,939
Depreciation and amortization		296,208		244,754			565,030			494,523
Adjusted EBITDA	$	695,330	$	738,359		$	1,396,724		$	1,501,401

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)

	Three Months Ended		Six Months Ended
	June 30,	June 30,	June 30,	June 30,
	2018	2017	2018	2017
Bellagio
Occupancy %	95.6%	94.3%	94.5%	93.7%
Average daily rate (ADR)	$280	$274	$283	$281
Revenue per available room (REVPAR)	$268	$258	$268	$263

MGM Grand Las Vegas
Occupancy %	95.3%	93.9%	93.3%	92.6%
ADR	$179	$181	$183	$188
REVPAR	$170	$170	$171	$174

Mandalay Bay
Occupancy %	93.4%	93.9%	89.3%	92.5%
ADR	$211	$203	$215	$216
REVPAR	$197	$190	$191	$200

The Mirage
Occupancy %	96.0%	96.7%	93.2%	94.3%
ADR	$178	$167	$179	$177
REVPAR	$170	$162	$167	$167

Luxor
Occupancy %	96.1%	96.1%	94.9%	94.7%
ADR	$116	$111	$118	$118
REVPAR	$111	$107	$112	$112

New York-New York
Occupancy %	97.1%	97.1%	96.7%	96.2%
ADR	$139	$139	$146	$146
REVPAR	$135	$135	$142	$141

Excalibur
Occupancy %	95.1%	95.5%	92.9%	93.0%
ADR	$97	$96	$100	$102
REVPAR	$93	$91	$93	$95

Park MGM
Occupancy %	80.3%	94.4%	84.2%	95.0%
ADR	$131	$115	$132	$122
REVPAR	$105	$108	$111	$116

Circus Circus Las Vegas
Occupancy %	85.1%	85.7%	81.9%	83.1%
ADR	$81	$79	$83	$84
REVPAR	$69	$68	$68	$70

Page 13 of 15

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2018		2017		2018		2017
Aria	$	311,798	$	273,624	$	583,679	$	555,694
Vdara		32,336		31,310		64,805		63,915
	$	344,134	$	304,934	$	648,484	$	619,609

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2018			2017			2018			2017
Net income (loss)	$	54,395		$	37,960		$	(51,672	)	$	82,521
Plus: Loss from discontinued operations		38			1,713			128,548			2,105
Net income from continuing operations		54,433			39,673			76,876			84,626
Non-operating (income) expense:
Interest expense, net of amounts capitalized		19,922			15,066			37,147			27,826
Other, net		567			4,323			(151	)		3,705
		20,489			19,389			36,996			31,531
Operating income		74,922			59,062			113,872			116,157
NV Energy exit expense		—			(8,250	)		—			(8,250	)
Property transactions, net		(883	)		636			(1,929	)		226
Depreciation and amortization		55,105			51,766			108,715			103,813
Adjusted EBITDA	$	129,144		$	103,214		$	220,658		$	211,946

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2018

	Operating income (loss)			NV Energy exit expense		Property transactions, net			Depreciation and amortization		Adjusted EBITDA
Aria	$	73,302		$	—	$	(937	)	$	48,196	$	120,561
Vdara		3,168			—		54			6,909		10,131
Resort operations		76,470			—		(883	)		55,105		130,692
Other		(1,548	)		—		—			—		(1,548	)
	$	74,922		$	—	$	(883	)	$	55,105	$	129,144

Three Months Ended June 30, 2017

	Operating income (loss)			NV Energy exit expense			Property transactions, net		Depreciation and amortization		Adjusted EBITDA
Aria	$	57,016		$	(8,250	)	$	636	$	44,921	$	94,323
Vdara		3,220			—			—		6,845		10,065
Resort operations		60,236			(8,250	)		636		51,766		104,388
Other		(1,174	)		—			—		—		(1,174	)
	$	59,062		$	(8,250	)	$	636	$	51,766	$	103,214

Page 14 of 15

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2018

	Operating income (loss)			NV Energy exit expense		Property transactions, net			Depreciation and amortization		Adjusted EBITDA
Aria	$	109,361		$	—	$	(1,983	)	$	94,989	$	202,367
Vdara		7,142			—		54			13,726		20,922
Resort operations		116,503			—		(1,929	)		108,715		223,289
Other		(2,631	)		—		—			—		(2,631	)
	$	113,872		$	—	$	(1,929	)	$	108,715	$	220,658

Six Months Ended June 30, 2017

	Operating income (loss)			NV Energy exit expense			Property transactions, net		Depreciation and amortization		Adjusted EBITDA
Aria	$	111,196		$	(8,250	)	$	225	$	90,040	$	193,211
Vdara		7,172			—			1		13,773		20,946
Resort operations		118,368			(8,250	)		226		103,813		214,157
Other		(2,211	)		—			—		—		(2,211	)
	$	116,157		$	(8,250	)	$	226	$	103,813	$	211,946

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

	Three Months Ended		Six Months Ended
	June 30,	June 30,	June 30,	June 30,
	2018	2017	2018	2017
Aria
Occupancy %	92.7%	94.3%	91.0%	92.9%
ADR	$257	$241	$265	$254
REVPAR	$238	$228	$241	$236
Vdara
Occupancy %	94.0%	90.6%	92.8%	90.3%
ADR	$205	$202	$212	$212
REVPAR	$193	$183	$196	$191

Page 15 of 15

Attached files

Stock widget

Investing forum

MGM Resorts International Reports