MGM Resorts International Reports Fourth Quarter And Full Year Results
MGM Resorts International Reports Fourth Quarter And Full Year Results
MGM China Announces $500 Million Special Dividend
PR Newswire
LAS VEGAS, Feb. 20, 2013
LAS VEGAS, Feb. 20, 2013 /PRNewswire/ -- MGM Resorts International (NYSE: MGM)
today reported financial results for the fourth quarter and full year ended
December 31, 2012. Loss per share for the fourth quarter of 2012 was $2.50
compared to a loss per share of $0.23 in the prior year fourth quarter.
Comparability of the current and prior year consolidated results was affected
by certain items discussed further below.
"2012 was a transformational year for MGM Resorts International highlighted by
major improvements in our financial position, significant progress on future
growth opportunities and strengthening of our company culture. We closed the
year with strong fourth quarter results driven by a 5% increase in wholly
owned domestic resorts EBITDA," said Jim Murren, MGM Resorts International
Chairman and CEO. "We are off to a great start in 2013, with our Cotai land
recently gazetted, a $500 million special dividend announced by MGM China, and
solid events thus far in Las Vegas including Super Bowl and Chinese New Year."
Key results for the fourth quarter of 2012 include the following:
o Consolidated net revenue was $2.3 billion in both the current and prior
year quarter;
o Consolidated casino revenue increased 1% compared to the prior year
quarter;
o Rooms revenue at wholly owned domestic resorts increased 2% with a 1%
increase in REVPAR^(1) at the Company's Las Vegas Strip resorts;
o Adjusted Property EBITDA^(2) was $505 million compared to $482 million in
the prior year quarter;
o The Company's wholly owned domestic resorts earned Adjusted Property
EBITDA of $334 million, a 5% increase compared to the prior year quarter;
o MGM China's Adjusted EBITDA was $176 million, a 1% increase compared to
the prior year quarter;
o CityCenter's Adjusted EBITDA related to resort operations was $68 million,
a 17% increase compared to the prior year quarter; and
o Consolidated operating loss was $425 million compared to operating income
of $91 million in the fourth quarter of 2011, impacted by significant
impairment charges in each period.
Certain Items Affecting Fourth Quarter Results
The following table lists items that affect the comparability of the current
and prior year quarterly results (approximate EPS impact shown, net of tax,
per share; negative amounts represent charges to income):
Three months ended December 31, 2012 2011
Property transactions, net:
Borgata investment impairment $ (0.09) $ (0.07)
Las Vegas Strip land impairment (0.48) —
Atlantic City land impairment (0.20) —
Silver Legacy investment impairment — (0.03)
Other property transactions, net (0.01) (0.01)
Other non-operating expense:
SJTA bond impairment (0.06) —
Loss on retirement of long-term debt (0.67) —
Tax adjustments (0.76) 0.09
Items in the above table for the fourth quarter of 2012 include:
o An impairment charge of $65 million related to the Company's investment in
Borgata;
o A $366 million impairment charge related to certain of the Company's land
holdings on the north end of the Las Vegas Strip and a $167 million
impairment charge related to the Company's land holdings in Atlantic City;
o A $47 million write-off related to the Company's holding of South Jersey
Transportation Authority ("SJTA") road development special revenue bonds;
o A loss of $505 million related to the Company's December refinancing
transactions; and
o $372 million related to the change in valuation allowance for U.S.
deferred tax assets.
Items in the above table for the fourth quarter of 2011 include:
o An impairment charge of $62 million related to the Company's investment in
Borgata;
o An impairment charge of $23 million related to the Company's investment in
Silver Legacy; and
o A net $44 million increase in income tax benefit resulting from a decrease
in net deferred tax liability related to Macau, partially offset by an
increase in the Michigan net deferred tax liability.
In addition to these items, corporate expense increased to $87 million during
the current year quarter, primarily as a result of approximately $34 million
of costs associated with the Company's development efforts in Maryland and
Massachusetts.
Wholly Owned Domestic Resorts
Casino revenue related to wholly owned domestic resorts was up 1% compared to
the prior year quarter. The overall table games hold percentage in the fourth
quarter of 2012 was 21.9% compared to 22.8% for the prior year quarter. Slots
revenue increased 2% compared to the prior year quarter.
Rooms revenue increased 2% with Las Vegas Strip REVPAR up 1%. The following
table shows key hotel statistics for the Company's Las Vegas Strip resorts:
Three months ended December 31, 2012 2011
Occupancy % 86% 87%
Average Daily Rate (ADR) $ 130 $ 129
Revenue per Available Room (REVPAR) $ 112 $ 111
Operating income for the Company's wholly owned domestic resorts for the
fourth quarter of 2012 was $202 million, an increase of 8% compared to the
prior year quarter.
MGM China
On February 20, 2013, MGM China's Board of Directors announced a special
dividend of $500 million, which will be paid to shareholders of record as of
March 11, 2013 and distributed on or about March 18, 2013. MGM Resorts
International will receive $255 million, representing its 51% share of the
dividend.
Key fourth quarter results for MGM China include the following:
o MGM China earned net revenue of $731 million, a 2% increase over the prior
year quarter driven by increases in volume for main floor table games and
slots of 13% and 37%, respectively. VIP table games turnover increased 6%
from the prior year quarter, while hold percentage was 2.9% in the current
year quarter compared to 3.2% in the prior year quarter; and
o MGM China's operating income was $83 million, an 8% increase over the
prior year quarter and Adjusted EBITDA was $176 million compared to $174
million in the prior year quarter.
As previously announced, MGM China, through its wholly owned subsidiary MGM
Grand Paradise S.A. ("MGM Grand Paradise"), formally accepted a land
concession contract with the Macau government in October 2012 and received
approval to develop a five-star luxury resort and casino in Cotai, Macau. The
contract became effective on January 9, 2013 when the Macau government
published it in the Official Gazette of Macau.
In October 2012, MGM China and MGM Grand Paradise, as co-borrowers, entered
into an amended and restated credit facility agreement which consists of $550
million of term loans and a $1.45 billion revolving credit facility due
October 2017. The interest rate fluctuates based on HIBOR plus a margin, set
at 2.5% for the first six months of the agreement and ranging between 1.75%
and 2.5% thereafter based on MGM China's leverage ratio. The credit facility
is being used for general corporate purposes and for the development of the
Cotai project.
"We have made significant progress in the design and development of our Cotai
resort and casino. With the recent approval of our general building plan, we
look forward to our groundbreaking ceremony next week. We remain on track for
an early to mid 2016 opening of what will be our most stunning resort and
casino yet," said Jim Murren, MGM Resorts International Chairman and CEO.
Income (Loss) from Unconsolidated Affiliates
The following table summarizes information related to the Company's share of
income (loss) from unconsolidated affiliates:
Three months ended December 31, 2012 2011
(In thousands)
CityCenter $ (7,461) $ (10,262)
Other 6,345 5,447
$ (1,116) $ (4,815)
Results for CityCenter Holdings, LLC for the fourth quarter of 2012 include
the following (see schedules accompanying this release for further detail on
CityCenter's fourth quarter results):
o Net revenue from resort operations increased to $272 million compared to
$265 million in the prior year quarter;
o Adjusted EBITDA from resort operations was $68 million, an increase of 17%
compared to the prior year quarter;
o Aria's table games hold percentage was 23.9% in the current year quarter
compared to 27.2% in the prior year quarter;
o Aria's occupancy percentage was 86% and its ADR was $202, resulting in
REVPAR of $173, a 2% increase compared to the prior year quarter; and
o In December 2012, CityCenter closed on a sale of 427 of the remaining 438
units at Veer for $119 million in proceeds.
Full Year 2012 Results
Net revenue for 2012 was $9.2 billion, which included a full year of results
from MGM China. Net revenue from wholly owned domestic resorts was $5.9
billion, a 1% increase compared to 2011. Adjusted Property EBITDA from wholly
owned domestic resorts increased 2% to $1.3 billion for 2012.
MGM China reported record results for 2012 with net revenues of $2.8 billion
and Adjusted EBITDA of $679 million. Excluding branding fees of $30 million
in 2012 and $15 million in 2011, Adjusted EBITDA increased by 10% year over
year. CityCenter reported net revenue from resort operations of $1.1 billion,
a 1% decrease compared to the prior year, and Adjusted EBITDA related to
resort operations of $230 million, a 3% decrease.
Loss per share attributable to MGM Resorts International for 2012 was $3.62
compared to diluted income per share of $5.62 in 2011. The following table
lists items that affect the comparability of the current year and prior year
annual results in addition to the consolidation of MGM China (approximate EPS
impact shown, net of tax, per share; negative amounts represent charges to
income):
Year ended December 31, 2012 2011
Gain on MGM China $ — $ 6.23
Property transactions, net:
Borgata investment impairment (0.09) (0.06)
Las Vegas Strip land impairment (0.48) —
Atlantic City land impairment (0.20) —
Grand Victoria investment impairment (0.11) —
Silver Legacy investment impairment — (0.03)
Circus Circus Reno impairment — (0.09)
Other property transactions, net (0.03) (0.02)
Income (loss) from unconsolidated affiliates:
CityCenter residential impairment (0.02) (0.03)
CityCenter Harmon demolition cost (0.02) —
Non-operating items from unconsolidated affiliates:
CityCenter loss on retirement of long-term debt (0.01) —
Other non-operating expense:
SJTA bond impairment (0.06) —
Loss on retirement of long-term debt (0.74) (0.01)
Tax adjustments (1.17) 0.10
Financial Position
"We achieved several financial milestones in 2012, culminating with the
refinancing transactions in December which allowed us to lower interest
expense by over $200 million annually," said Dan D'Arrigo, MGM Resorts
International Executive Vice President, CFO and Treasurer. "We remain focused
on reducing debt while continuing to maximize our free cash flow and have set
a foundation for the execution of growth and development initiatives at our
existing resorts and in new markets."
In December 2012, the Company amended and restated its senior credit facility
which increased its total capacity to $4.0 billion, issued $1.25 billion of
6.625% senior notes due 2021, and used the proceeds from these transactions,
together with cash on hand, to repurchase and fund the satisfaction and
discharge of all of its outstanding senior secured notes.
The Company's cash balance at December 31, 2012 was $1.5 billion, which
included approximately $952 million of cash and cash equivalents related to
MGM China. At December 31, 2012, the Company had approximately $13.6 billion
of indebtedness, including $2.8 billion of borrowings outstanding under its
senior credit facility and $554 million outstanding under the MGM China credit
facility.
At December 31, 2012, the Company's senior credit facility consisted of
approximately $1.05 billion in term A loans, $1.75 billion in term B loans,
and $1.2 billion of revolving loan commitments. At December 31, 2012 the
Company had approximately $1.2 billion of available borrowing capacity under
its revolving facility. At December 31, 2012, the interest rate on the term A
loans was 3.3% and the interest rate on the term B loans was 4.25%.
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
1-877-355-2280 for domestic callers and 1-706-634-6528 for international
callers. The conference call access code is 92557344. A replay of the call
will be available through Wednesday, February 27, 2013. The replay may be
accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code
is 92557344. The call will also be archived at www.mgmresorts.com.
1 REVPAR is hotel revenue per available room.
2 "Adjusted EBITDA" is earnings before interest and other
non-operating income (expense), taxes, depreciation and amortization,
preopening and start-up expenses, property transactions, net and the gain on
the MGM China transaction. "Adjusted Property EBITDA" is Adjusted EBITDA
before corporate expense and stock compensation expense related to the MGM
Resorts stock option plan, which is not allocated to each property. MGM China
recognizes stock compensation expense related to its stock compensation plan
which is included in the calculation of Adjusted EBITDA for MGM China.
Adjusted EBITDA information is presented solely as a supplemental disclosure
to reported GAAP measures because management believes these measures are 1)
widely used measures of operating performance in the gaming industry, and 2) a
principal basis for valuation of gaming companies.
Management believes that while items excluded from Adjusted EBITDA and
Adjusted Property EBITDA may be recurring in nature and should not be
disregarded in evaluation of the Company's earnings performance, it is useful
to exclude such items when analyzing current results and trends compared to
other periods because these items can vary significantly depending on specific
underlying transactions or events that may not be comparable between the
periods being presented. Also, management believes excluded items may not
relate specifically to current operating trends or be indicative of future
results. For example, preopening and start-up expenses will be significantly
different in periods when the Company is developing and constructing a major
expansion project and will depend on where the current period lies within the
development cycle, as well as the size and scope of the project(s). Property
transactions, net includes normal recurring disposals, gains and losses on
sales of assets related to specific assets within the Company's resorts, but
also includes gains or losses on sales of an entire operating resort or a
group of resorts and impairment charges on entire asset groups or investments
in unconsolidated affiliates, which may not be comparable period over period.
In addition, capital allocation, tax planning, financing and stock
compensation awards are all managed at the corporate level. Therefore,
management uses Adjusted Property EBITDA as the primary measure of the
Company's operating resorts' performance.
Reconciliations of GAAP net income (loss) to Adjusted EBITDA and GAAP
operating income (loss) to Adjusted Property EBITDA are included in the
financial schedules in this release.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's leading global
hospitality companies, operating a peerless portfolio of destination resort
brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. In
addition to its 51% interest in MGM China Holdings, Limited, which owns the
MGM Macau resort and casino and is in the process of developing a gaming
resort in Cotai, the Company has significant holdings in gaming, hospitality
and entertainment, owns and operates 15 properties located in Nevada,
Mississippi and Michigan, and has 50% investments in three other properties in
Nevada and Illinois. One of those investments is CityCenter, an unprecedented
urban resort destination on the Las Vegas Strip featuring its centerpiece ARIA
Resort & Casino. Leveraging MGM Resorts' unmatched amenities, the M life
loyalty program delivers one-of-a-kind experiences, insider privileges and
personalized rewards for guests at the Company's renowned properties
nationwide. Through its hospitality management subsidiary, the Company holds a
growing number of development and management agreements for casino and
non-casino resort projects around the world. MGM Resorts International
supports responsible gaming and has implemented the American Gaming
Association's Code of Conduct for Responsible Gaming at its gaming properties.
The Company has been honored with numerous awards and recognitions for its
industry-leading Diversity Initiative, its community philanthropy programs and
the Company's commitment to sustainable development and operations. For more
information about MGM Resorts International, visit the Company's website at
www.mgmresorts.com.
Statements in this release that are not historical facts are forward-looking
statements, within the meaning of the Private Securities Litigation Reform Act
of 1995 and involve risks and/or uncertainties, including those described in
the company's public filings with the Securities and Exchange Commission. We
have 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 operating results, the
amount we will receive as a result of the MGM China special dividend and our
ability to execute growth and development activities. 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 we operate and
competition with other destination travel locations throughout the United
States and the world, the design, timing and costs of expansion projects,
risks relating to international operations, permits, licenses, financings,
approvals and other contingencies in connection with growth in new or existing
jurisdictions and additional risks and uncertainties described in our Form
10-K, Form 10-Q and Form 8-K reports (including all amendments to those
reports). In providing forward-looking statements, the Company is not
undertaking any duty or obligation to update these statements publicly as a
result of new information, future events or otherwise, except as required by
law. If we update one or more forward-looking statements, no inference should
be drawn that we will make additional updates with respect to those other
forward-looking statements.
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
Revenues:
Casino $ 1,390,941 $ $ $
1,373,311 5,319,489 4,002,985
Rooms 383,329 377,464 1,588,770 1,547,765
Food and beverage 346,286 347,160 1,472,382 1,425,428
Entertainment 119,469 132,846 483,946 514,883
Retail 47,017 48,855 196,938 204,806
Other 108,957 114,408 482,547 485,661
Reimbursed costs 88,438 88,293 357,597 351,207
2,484,437 2,482,337 9,901,669 8,532,735
Less: Promotional (189,926) (185,448) (740,825) (683,423)
allowances
2,294,511 2,296,889 9,160,844 7,849,312
Expenses:
Casino 876,995 882,897 3,396,752 2,515,279
Rooms 123,258 119,015 507,856 485,751
Food and beverage 200,737 200,459 844,629 829,018
Entertainment 86,699 95,954 356,934 375,559
Retail 26,844 29,784 112,732 124,063
Other 81,109 88,774 344,782 345,484
Reimbursed costs 88,438 88,293 357,597 351,207
General and 307,901 307,312 1,239,774 1,182,505
administrative
Corporate expense 87,215 54,947 235,007 174,971
Preopening and 1,362 - 2,127 (316)
start-up expenses
Property 610,862 95,770 708,049 178,598
transactions, net
Gain on MGM China - - - (3,496,005)
transaction
Depreciation and 226,831 237,762 927,697 817,146
amortization
2,718,251 2,200,967 9,033,936 3,883,260
Income (loss) from
unconsolidated (1,116) (4,815) (46,382) 91,094
affiliates
Operating income (424,856) 91,107 80,526 4,057,146
(loss)
Non-operating
income (expense):
Interest expense,
net of amounts (279,922) (274,152) (1,116,358) (1,086,832)
capitalized
Non-operating
items from (21,417) (26,029) (90,020) (119,013)
unconsolidated
affiliates
Other, net (552,843) (1,103) (608,361) (19,670)
(854,182) (301,284) (1,814,739) (1,225,515)
Income (loss)
before income (1,279,038) (210,177) (1,734,213) 2,831,631
taxes
Benefit for 90,541 190,876 117,301 403,313
income taxes
Net income (loss) (1,188,497) (19,301) (1,616,912) 3,234,944
Less: net income
attributable to (35,330) (94,390) (150,779) (120,307)
noncontrolling
interests
Net income (loss)
attributable to $ (1,223,827) $ $ $
MGM Resorts (113,691) (1,767,691) 3,114,637
International
Per share of
common stock:
Basic:
Net income (loss)
attributable to $ $ $ $
MGM Resorts (2.50) (0.23) (3.62) 6.37
International
Weighted average
shares 489,211 488,823 488,988 488,652
outstanding
Diluted:
Net income (loss)
attributable to $ $ $ $
MGM Resorts (2.50) (0.23) (3.62) 5.62
International
Weighted average
shares 489,211 488,823 488,988 560,895
outstanding
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
December 31, December 31,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 1,543,509 $ 1,865,913
Accounts receivable, net 443,677 491,730
Inventories 107,577 112,735
Deferred income taxes, net 179,431 91,060
Prepaid expenses and other 232,898 251,282
Total current assets 2,507,092 2,812,720
Property and equipment, net 14,194,652 14,866,644
Other assets:
Investments in and advances to 1,444,547 1,635,572
unconsolidated affiliates
Goodwill 2,902,847 2,896,609
Other intangible assets, net 4,737,833 5,048,117
Other long-term assets, net 497,767 506,614
Total other assets 9,582,994 10,086,912
$ 26,284,738 $ 27,766,276
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 199,620 $ 170,994
Income taxes payable 1,350 7,611
Accrued interest on long-term debt 206,736 203,422
Other accrued liabilities 1,517,965 1,362,737
Total current liabilities 1,925,671 1,744,764
Deferred income taxes 2,473,889 2,502,096
Long-term debt 13,589,283 13,470,167
Other long-term obligations 179,879 167,027
Stockholders' equity:
Common stock, $.01 par value: authorized
1,000,000,000 shares,
issued and outstanding 489,234,401 and 4,892 4,888
488,834,773 shares
Capital in excess of par value 4,132,655 4,094,323
Retained earnings 213,698 1,981,389
Accumulated other comprehensive income 14,303 5,978
Total MGM Resorts
International stockholders' 4,365,548 6,086,578
equity
Noncontrolling interests 3,750,468 3,795,644
Total stockholders' equity 8,116,016 9,882,222
$ 26,284,738 $ 27,766,276
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
Bellagio $ $ $ $
307,254 308,819 1,147,487 1,114,711
MGM Grand Las 258,657 233,389 961,246 941,007
Vegas
Mandalay Bay 161,642 189,762 717,499 777,287
The Mirage 142,806 136,612 600,194 570,524
Luxor 74,356 80,789 322,342 333,209
New York-New 67,838 66,712 274,645 268,859
York
Excalibur 60,333 60,706 258,141 257,047
Monte Carlo 63,216 61,978 259,004 255,580
Circus Circus 45,158 45,981 203,764 195,675
Las Vegas
MGM Grand 137,045 140,883 568,721 566,072
Detroit
Beau Rivage 81,076 79,492 346,330 340,940
Gold Strike 34,764 36,735 150,561 145,220
Tunica
Other resort 27,665 29,931 122,857 126,771
operations
Wholly owned
domestic 1,461,810 1,471,789 5,932,791 5,892,902
resorts
MGM China(1) 731,216 718,929 2,807,676 1,534,963
Management and
other 101,485 106,171 420,377 421,447
operations
$ $ $ $
2,294,511 2,296,889 9,160,844 7,849,312
(1) For the twelve months ended December 31, 2011, represents the net revenues
of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day
of the Company's majority ownership of MGM China) through December 31, 2011.
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December December December 31, December 31,
31, 31,
2012 2011 2012 2011
Bellagio $ $ $ 302,854 $ 302,497
94,925 96,975
MGM Grand Las Vegas 65,991 34,490 180,726 149,136
Mandalay Bay 26,156 39,707 146,761 169,124
The Mirage 25,625 20,298 117,618 102,443
Luxor 11,834 18,061 63,260 78,081
New York-New York 21,576 21,195 90,505 87,284
Excalibur 13,090 13,283 61,788 65,257
Monte Carlo 14,127 13,534 58,681 57,404
Circus Circus Las 2,461 2,420 24,072 22,944
Vegas
MGM Grand Detroit 40,830 40,426 165,670 166,019
Beau Rivage 12,188 12,095 71,361 70,020
Gold Strike Tunica 6,807 8,447 40,469 29,666
Other resort (1,284) (1,757) 1,455 (1,759)
operations
Wholly owned 334,326 319,174 1,325,220 1,298,116
domestic resorts
MGM China(1) 175,773 173,938 679,345 359,686
MGM Macau (50%)(2) - - - 115,219
CityCenter (50%)(3) (7,461) (10,262) (68,206) (56,291)
Other unconsolidated 6,345 5,447 21,824 32,166
resorts(3)
Management and other (4,447) (5,872) 9,947 287
operations
$ $ $ $
504,536 482,425 1,968,130 1,749,183
(1) For the twelve months ended December 31, 2011, represents the Adjusted
EBITDA of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the
first day of the Company's majority ownership of MGM China) through December
31, 2011.
(2) Represents the Company's share of operating income (loss), adjusted for
the effect of certain basis differences for the approximately five months
ended June 2, 2011.
(3) Represents the Company's share of operating income (loss), adjusted for
the effect of certain basis differences.
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, 2012
Preopening Depreciation
Operating and Property Adjusted
and
income start-up transactions, EBITDA
(loss) net amortization
expenses
Bellagio $ $ $ $ $
70,805 - 1,695 22,425 94,925
MGM Grand Las 43,733 - 1,644 20,614 65,991
Vegas
Mandalay Bay 4,001 830 2,849 18,476 26,156
The Mirage 12,575 - 318 12,732 25,625
Luxor (2,914) - 3,844 10,904 11,834
New York-New 16,273 - 190 5,113 21,576
York
Excalibur 8,571 - 2 4,517 13,090
Monte Carlo 9,183 - 761 4,183 14,127
Circus Circus (2,565) - 29 4,997 2,461
Las Vegas
MGM Grand 35,589 - 1 5,240 40,830
Detroit
Beau Rivage 4,461 - 20 7,707 12,188
Gold Strike 3,662 - (56) 3,201 6,807
Tunica
Other resort (1,862) - 8 570 (1,284)
operations
Wholly owned
domestic 201,512 830 11,305 120,679 334,326
resorts
MGM China 83,223 - 417 92,133 175,773
CityCenter (7,993) 532 - - (7,461)
(50%)
Other
unconsolidated 6,345 - - - 6,345
resorts
Management and
other (7,950) - - 3,503 (4,447)
operations
275,137 1,362 11,722 216,315 504,536
Stock (7,976) - - - (7,976)
compensation
Corporate (692,017) - 599,140 10,516 (82,361)
$ $ $ $ $
(424,856) 1,362 610,862 226,831 414,199
Three Months Ended December 31, 2011
Preopening Depreciation
Operating and Property Adjusted
and
income start-up transactions, EBITDA
(loss) net amortization
expenses
Bellagio $ $ $ $ $
70,537 - 1,952 24,486 96,975
MGM Grand Las 14,925 - 231 19,334 34,490
Vegas
Mandalay Bay 20,740 - 462 18,505 39,707
The Mirage 6,215 - 229 13,854 20,298
Luxor 8,267 - 104 9,690 18,061
New York-New 15,499 - 9 5,687 21,195
York
Excalibur 7,898 - 423 4,962 13,283
Monte Carlo 8,369 - 98 5,067 13,534
Circus Circus (2,303) - 5 4,718 2,420
Las Vegas
MGM Grand 29,415 - 1,043 9,968 40,426
Detroit
Beau Rivage 4,549 - 7 7,539 12,095
Gold Strike 4,963 - 36 3,448 8,447
Tunica
Other resort (2,689) - 445 487 (1,757)
operations
Wholly owned
domestic 186,385 - 5,044 127,745 319,174
resorts
MGM China 77,204 - 813 95,921 173,938
CityCenter (10,262) - - - (10,262)
(50%)
Other
unconsolidated 5,447 - - - 5,447
resorts
Management and
other (9,524) - (1) 3,653 (5,872)
operations
249,250 - 5,856 227,319 482,425
Stock (9,616) - - - (9,616)
compensation
Corporate (148,527) - 89,914 10,443 (48,170)
$ $ $ $ $
91,107 - 95,770 237,762 424,639
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, 2012
Preopening Depreciation
Operating and Property Adjusted
and
income start-up transactions, EBITDA
(loss) net amortization
expenses
Bellagio $ $ $ $ $
206,679 - 2,101 94,074 302,854
MGM Grand Las 94,529 - 6,271 79,926 180,726
Vegas
Mandalay Bay 64,818 830 3,786 77,327 146,761
The Mirage 65,266 - 929 51,423 117,618
Luxor 20,777 - 4,794 37,689 63,260
New York-New 68,591 - 581 21,333 90,505
York
Excalibur 43,978 - 5 17,805 61,788
Monte Carlo 38,418 - 1,328 18,935 58,681
Circus Circus 4,514 - 106 19,452 24,072
Las Vegas
MGM Grand 130,564 641 922 33,543 165,670
Detroit
Beau Rivage 40,713 - (50) 30,698 71,361
Gold Strike 27,420 - (53) 13,102 40,469
Tunica
Other resort (904) - (14) 2,373 1,455
operations
Wholly owned
domestic 805,363 1,471 20,706 497,680 1,325,220
resorts
MGM China 302,092 - 2,307 374,946 679,345
CityCenter (68,862) 656 - - (68,206)
(50%)
Other
unconsolidated 21,824 - - - 21,824
resorts
Management and
other (4,258) - - 14,205 9,947
operations
1,056,159 2,127 23,013 886,831 1,968,130
Stock (33,974) - - - (33,974)
compensation
Corporate (941,659) - 685,036 40,866 (215,757)
$ $ $ $ $
80,526 2,127 708,049 927,697 1,718,399
Twelve Months Ended December 31, 2011
Gain on MGM
Depreciation
Operating Preopening China Adjusted
and transaction and
income start-up EBITDA
(loss) expenses and Property amortization
transactions,
net
Bellagio $ $ $ $ $
203,026 - 2,772 96,699 302,497
MGM Grand Las 71,762 - 232 77,142 149,136
Vegas
Mandalay Bay 84,105 - 531 84,488 169,124
The Mirage 41,338 - 1,559 59,546 102,443
Luxor 39,866 - 112 38,103 78,081
New York-New 63,824 - (76) 23,536 87,284
York
Excalibur 44,428 - 646 20,183 65,257
Monte Carlo 35,059 - 131 22,214 57,404
Circus Circus 4,040 - (1) 18,905 22,944
Las Vegas
MGM Grand 125,235 - 1,415 39,369 166,019
Detroit
Beau Rivage 30,313 - 58 39,649 70,020
Gold Strike 15,991 - 36 13,639 29,666
Tunica
Other resort (86,012) - 80,120 4,133 (1,759)
operations
Wholly owned
domestic 672,975 - 87,535 537,606 1,298,116
resorts
MGM China 137,440 - 1,120 221,126 359,686
MGM Macau 115,219 - - - 115,219
(50%)
CityCenter (56,291) - - - (56,291)
(50%)
Other
unconsolidated 32,166 - - - 32,166
resorts
Management and
other (13,813) (316) - 14,416 287
operations
887,696 (316) 88,655 773,148 1,749,183
Stock (36,528) - - - (36,528)
compensation
Corporate 3,205,978 - (3,406,062) 43,998 (156,086)
$ $ $ $ $
4,057,146 (316) (3,317,407) 817,146 1,556,569
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December December 31, December 31,
31,
2012 2011 2012 2011
Adjusted EBITDA $ 414,199 $ $ $
424,639 1,718,399 1,556,569
Preopening and (1,362) - (2,127) 316
start-up expenses
Property (610,862) (95,770) (708,049) (178,598)
transactions, net
Gain on MGM China - - - 3,496,005
transaction
Depreciation and (226,831) (237,762) (927,697) (817,146)
amortization
Operating income (424,856) 91,107 80,526 4,057,146
(loss)
Non-operating income
(expense):
Interest expense,
net of amounts (279,922) (274,152) (1,116,358) (1,086,832)
capitalized
Other, net (574,260) (27,132) (698,381) (138,683)
(854,182) (301,284) (1,814,739) (1,225,515)
Income (loss) before (1,279,038) (210,177) (1,734,213) 2,831,631
income taxes
Benefit for income 90,541 190,876 117,301 403,313
taxes
Net income (loss) (1,188,497) (19,301) (1,616,912) 3,234,944
Less: net income
attributable to (35,330) (94,390) (150,779) (120,307)
noncontrolling
interests
Net income (loss) $ $ $
attributable to MGM $ (1,223,827) (113,691) (1,767,691) 3,114,637
Resorts International
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
Bellagio
Occupancy % 88.8% 89.0% 92.9% 93.3%
Average daily rate $247 $242 $237 $230
(ADR)
Revenue per
available room $219 $215 $220 $215
(REVPAR)
MGM Grand Las Vegas
Occupancy % 87.7% 89.8% 92.7% 93.2%
ADR $140 $136 $139 $131
REVPAR $123 $122 $129 $123
Mandalay Bay
Occupancy % 88.1% 86.5% 91.7% 91.7%
ADR $169 $171 $176 $175
REVPAR $149 $148 $162 $160
The Mirage
Occupancy % 90.7% 92.0% 94.6% 94.8%
ADR $150 $144 $149 $144
REVPAR $136 $132 $141 $137
Luxor
Occupancy % 88.6% 85.9% 91.0% 90.3%
ADR $90 $92 $89 $91
REVPAR $80 $79 $81 $82
New York-New York
Occupancy % 92.0% 91.9% 94.6% 93.8%
ADR $109 $109 $110 $108
REVPAR $101 $100 $104 $102
Excalibur
Occupancy % 84.8% 81.3% 89.4% 87.8%
ADR $72 $74 $72 $73
REVPAR $61 $60 $64 $64
Monte Carlo
Occupancy % 89.9% 92.4% 93.6% 94.2%
ADR $103 $100 $103 $99
REVPAR $93 $92 $97 $93
Circus Circus Las
Vegas
Occupancy % 68.6% 75.0% 77.9% 75.9%
ADR $55 $54 $54 $54
REVPAR $38 $40 $42 $41
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
Aria $ $ $ $
223,534 221,911 862,306 894,721
Vdara 21,384 20,134 86,916 75,364
Crystals 14,257 12,088 53,251 46,317
Mandarin 12,507 10,725 48,452 41,034
Oriental
Resort 271,682 264,858 1,050,925 1,057,436
operations
Residential 122,680 4,097 138,929 24,425
operations
$ $ $ $
394,362 268,955 1,189,854 1,081,861
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
Adjusted EBITDA $ $ $ $
60,044 54,126 206,596 212,104
Preopening and (1,064) - (1,312) -
start-up expenses
Property (1,011) (233) (74,347) (53,595)
transactions, net
Depreciation and (103,594) (98,871) (370,856) (370,141)
amortization
Operating loss (45,625) (44,978) (239,919) (211,632)
Non-operating
income (expense):
Interest expense (24,155) (20,778) (91,352) (78,477)
- sponsor notes
Interest expense (43,025) (46,645) (174,674) (189,359)
- other
Other, net 809 (2,140) (5,023) (22,706)
(66,371) (69,563) (271,049) (290,542)
Net loss $ $ $ $
(111,996) (114,541) (510,968) (502,174)
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended December 31, 2012
Preopening Property Depreciation
Operating and Adjusted
transactions, and
income start-up EBITDA
(loss) net amortization
expenses
Aria $ $ $ $ $
(20,240) 1,064 (14) 73,380 54,190
Vdara (6,440) - - 11,553 5,113
Crystals 1,033 - - 8,084 9,117
Mandarin (9,876) - - 9,762 (114)
Oriental
Resort (35,523) 1,064 (14) 102,779 68,306
operations
Residential (177) - 1,025 800 1,648
operations
Development
and (9,925) - - 15 (9,910)
administration
$ $ $ $ $
(45,625) 1,064 1,011 103,594 60,044
Three Months Ended December 31, 2011
Preopening Property Depreciation
Operating and Adjusted
transactions, and
income start-up EBITDA
(loss) net amortization
expenses
Aria $ $ $ $ $
(30,245) - - 77,417 47,172
Vdara (7,010) - - 11,419 4,409
Crystals 2,836 - 191 3,795 6,822
Mandarin (5,116) - - 5,014 (102)
Oriental
Resort (39,535) - 191 97,645 58,301
operations
Residential (1,415) - - 1,157 (258)
operations
Development
and (4,028) - 42 69 (3,917)
administration
$ $ $ $ $
(44,978) - 233 98,871 54,126
CITYCENTER HOLDINGS, LLC
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Twelve Months Ended December 31, 2012
Preopening Property Depreciation
Operating and Adjusted
transactions, and
income start-up EBITDA
(loss) net amortization
expenses
Aria $ $ $ $ $
(104,937) 1,312 5,549 273,909 175,833
Vdara (21,104) - - 42,609 21,505
Crystals 5,216 - - 27,105 32,321
Mandarin (22,822) - - 23,330 508
Oriental
Resort (143,647) 1,312 5,549 366,953 230,167
operations
Residential (40,013) - 36,715 3,729 431
operations
Development
and (56,259) - 32,083 174 (24,002)
administration
$ $ $ $ $
(239,919) 1,312 74,347 370,856 206,596
Twelve Months Ended December 31, 2011
Preopening Property Depreciation
Operating and Adjusted
transactions, and
income start-up EBITDA
(loss) net amortization
expenses
Aria $ $ $ $ $
(87,245) - - 282,890 195,645
Vdara (22,137) - - 39,966 17,829
Crystals (201) - 191 24,117 24,107
Mandarin (20,084) - - 18,980 (1,104)
Oriental
Resort (129,667) - 191 365,953 236,477
operations
Residential (64,459) - 52,624 3,785 (8,050)
operations
Development
and (17,506) - 780 403 (16,323)
administration
$ $ $ $ $
(211,632) - 53,595 370,141 212,104
CITYCENTER HOLDINGS, LLC
SUPPLEMENTAL DATA - HOTEL STATISTICS
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
Aria
Occupancy % 85.6% 81.9% 88.3% 86.0%
ADR $202 $207 $200 $202
REVPAR $173 $169 $177 $174
Vdara
Occupancy % 83.2% 74.0% 84.1% 82.5%
ADR $157 $168 $158 $161
REVPAR $131 $124 $133 $133
SOURCE MGM Resorts International
Website: http://www.mgmresorts.com
Contact: Investment Community, DANIEL D'ARRIGO, Executive Vice President, CFO
& Treasurer, (702) 693-8895; or News Media, ALAN M. FELDMAN, Senior Vice
President of Public Affairs, (702) 891-1840, afeldman@mgmresorts.com
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