MGM Resorts International Results

MGM Resorts International Reports Fourth Quarter And Full Year Financial And Operating Results; Announces Quarterly Dividend

Increased diluted earnings per share in the fourth quarter of 2016 to $0.04 from a loss per share of $1.38 in the prior year quarter - Increased diluted earnings per share in 2016 to $1.92 from a loss per share of $0.82 in 2015 - Initiated a quarterly dividend program to further drive shareholder value

MGM Resorts International

MGM Resorts International (NYSE:  MGM) today reported financial results for the quarter and full year ended December 31, 2016 and announced a quarterly dividend.

"In 2016, MGM Resorts produced diluted earnings per share of $1.92 and delivered the best same-store domestic Adjusted Property EBITDA and Adjusted Property EBITDA margins in nine years. The achievement of key financial and strategic milestones demonstrates our continued focus on driving profitability and shareholder value, strengthening our balance sheet, and further positioning MGM Resorts as a leading entertainment and destination-resort company," said Jim Murren, Chairman & CEO of MGM Resorts. "We are excited about the outlook for 2017, including the full year contributions from MGM National Harbor and Borgata, the continued favorable Las Vegas dynamics supported by our investments including T-Mobile Arena and the Park Theater, the opening of MGM Cotai in Macau, and our persistent drive for continuous improvement throughout all aspects of our Company."

MGM Resorts Dividend:

The Company's Board of Directors approved a quarterly dividend on February 15, 2017. The dividend of $0.11 per share will be payable on March 15, 2017 to stockholders of record at the close of business on March 10, 2017, and will equate to approximately $63 million in aggregate. 

Mr. Murren continued, "The initiation of a quarterly dividend reinforces the Company's commitment to executing on our disciplined, long term strategy of maximizing value for our shareholders while demonstrating confidence in our ability to continue growing the business and maintaining a strong balance sheet."

Fourth Quarter 2016 Financial Highlights:

  • Diluted earnings per share for the fourth quarter of 2016 of $0.04, compared to diluted loss per share of $1.38 in the prior year quarter which included a $1.5 billion, or $1.33 per share, non-cash goodwill impairment charge related to the 2011 MGM China acquisition; 
  • Net revenues of $1.8 billion at the Company's domestic resorts, a 17% increase over the prior year quarter, and a 2% increase on a same-store basis, excluding contributions from Borgata which the Company began consolidating in August 2016, MGM National Harbor which opened in December of 2016, and Circus Circus Reno, which the Company sold in 2015; 
  • REVPAR(1)  growth of 3% over the prior year quarter at the Company's Las Vegas Strip resorts; 
  • Operating income of $312 million at the Company's domestic resorts; 
  • Net income attributable to MGM Resorts of $25 million, compared to a net loss attributable to MGM Resorts of $781 million in the prior year quarter; 
  • Adjusted Property EBITDA(2) of  $493 million at the Company's domestic resorts, a 14% increase over the prior year quarter and a 1% increase on a same-store basis; 
  • Profit Growth Plan contribution of approximately $30 million of year over year Adjusted Property EBITDA growth to domestic resorts and approximately $1 million of Adjusted EBITDA growth from the Company's 50% share of CityCenter, which resulted in cumulative fourth quarter contributions of $68 million and $6 million, respectively, since the start of the plan; 
  • Same-store operating margin of 19.5% in the current quarter at the Company's domestic resorts compared to 19.7% in the prior year quarter; 
  • Same-store Adjusted Property EBITDA margin of 27.5% at the Company's domestic resorts, for both current and prior year quarters; and 
  • MGM China operating income of $72 million compared to an operating loss of $1.4 billion in the prior year quarter, which included the $1.5 billion non-cash goodwill impairment charge, and a 5% increase in MGM China's Adjusted EBITDA compared to the prior year quarter. 

Full Year 2016 Financial Highlights:

  • Consolidated net revenues of $9.5 billion and domestic resorts net revenues of $7.1 billion, a 9% increase over the prior year and a 4% increase on a same-store basis; 
  • REVPAR growth of 6% over the prior year at the Company's Las Vegas Strip resorts; 
  • Operating income of $1.4 billion at the Company's domestic resorts; 
  • Net income attributable to MGM Resorts of $1.1 billion, compared to a net loss attributable to MGM Resorts of $448 million in the prior year; 
  • Adjusted Property EBITDA of $2.1 billion at the Company's domestic resorts, a 22% increase over the prior year and a 17% increase on a same-store basis; 
  • Bellagio produced all-time records in net revenues, Adjusted Property EBITDA and Adjusted Property EBITDA margins; 
  • Profit Growth Plan contribution of approximately $244 million of year over year Adjusted Property EBITDA growth to domestic resorts and approximately $22 million of Adjusted EBITDA growth from the Company's 50% share of CityCenter, which resulted in cumulative contributions of $315 million and $30 million, respectively, since the start of the plan; and 
  • Same-store Adjusted Property EBITDA margin of 29.6% at the Company's domestic resorts, a 336 basis point increase compared to the prior year.

2016 Strategic Highlights: 

  • Successful creation and $1.2 billion initial public offering of MGM Growth Properties LLC ("MGP"), a premier triple net lease REIT, which priced at the high end of the filing range and has since achieved material share price appreciation, underscoring the significant value in the Company's real estate assets; 
  • CityCenter's sale of The Shops at Crystals for $1.1 billion resulting in a $540 million distribution to MGM Resorts; 
  • Opening of new entertainment venues on the Las Vegas Strip with the T-Mobile Arena and Park Theater; 
  • Increasing Profit Growth Plan target by 33% to $400 million; 
  • Acquisition of Borgata and the subsequent contribution of the real property to MGP; 
  • Increase in MGM China ownership to approximately 56%; 
  • Opening of the highly anticipated MGM National Harbor in Maryland; and 
  • Continued focus on balance sheet enhancement resulting in rating agencies upgrades.

Certain Items Affecting Fourth 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 December 31,

 

2016

   

2015

 

Preopening and start-up expenses

 

$

(0.07)

   

$

(0.02)

 

Property transactions, net:

               

Gain on sale of Circus Circus Reno and Silver Legacy

   

     

0.03

 

Grand Victoria investment impairment

   

     

(0.02)

 

Other property transactions, net

   

(0.01)

     

(0.03)

 

MGM China goodwill impairment

   

     

(1.33)

 

Income (loss) from unconsolidated affiliates:

               

Gain on the sale of Crystals

   

0.01

     

 

 

Domestic Resorts

Casino revenue for the fourth quarter of 2016 increased 33% compared to the prior year quarter, due primarily to the acquisition of Borgata Hotel Casino and Spa ("Borgata"), the MGM National Harbor opening on December 8, 2016, and an increase in both table games and slots revenue. Casino revenue increased 3% on a same-store basis compared to the prior year quarter. Same-store table games hold percentage in the fourth quarter of 2016 was 22.5% compared to 20.0% in the prior year quarter. Slots revenue increased 3% on a same-store basis compared to the prior year quarter. 

Rooms revenue increased 10% compared to the prior year quarter. On a same-store basis, rooms revenue increased 4% compared to the prior year quarter. Las Vegas Strip REVPAR increased 3%. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

 

Three months ended December 31,

 

2016

   

2015

 

Occupancy %

   

89%

     

89%

 

Average Daily Rate (ADR)

 

$

157

   

$

152

 

Revenue per Available Room (REVPAR)

 

$

140

   

$

136

 

Operating income at the Company's domestic resorts was $312 million for the fourth quarter of 2016 compared to $308 million in the prior year quarter. Domestic resorts Adjusted Property EBITDA increased 14% to $493 million in the fourth quarter of 2016 and was positively impacted by approximately $30 million of Adjusted Property EBITDA growth generated from the Company's Profit Growth Plan initiatives as well as $45 million of Adjusted Property EBITDA resulting from the Borgata transaction and $10 million of Adjusted Property EBITDA resulting from the December 2016 opening of MGM National Harbor. Same-store Adjusted Property EBITDA increased 1% compared to the prior year quarter. 

The Company's domestic resorts were impacted by a lower number of convention room nights compared to the prior year quarter, primarily driven by the October holiday calendar shift as well as the rotation and timing of certain conventions. The reduced convention room nights were replaced primarily with casino room nights, which benefitted our table games and slots business and was offset by lower catering and banquets and production services.

Mr. Murren added, "In the fourth quarter of 2016, we drove growth in REVPAR and EBITDA despite a record convention business fourth quarter in the prior year. Our convention business this year resulted in the second highest fourth quarter in the Company's history, and we also successfully leveraged our database and delivered new entertainment offerings to drive customers to our resorts. We continue to invest in our business and remain encouraged by the opportunities we see in 2017. We expect to achieve Las Vegas Strip REVPAR growth of 7% in the first quarter of 2017."

Corporate Expense

Corporate expense was $72 million in the fourth quarter of 2016, a decrease of $19 million compared to the prior year quarter. The current quarter included $3 million related to Profit Growth Plan implementation costs. The prior year quarter included costs incurred to implement initiatives related to the Profit Growth Plan and costs associated with the initial public offering of MGP totaling $22 million. 

MGM China

On February 16, 2017, as part of its regular dividend policy, the Board of Directors of MGM China Holdings Limited ("MGM China") announced it will recommend a final dividend for 2016 of $78 million to MGM China shareholders subject to approval at the MGM China 2017 annual shareholders meeting to be held in May, bringing the total 2016 dividend to $137 million including the interim dividend paid in August of 2016. If approved, MGM Resorts International will receive its 56% share or $44 million, of which $4 million will be paid to Grand Paradise Macau under the $50 million deferred cash payment arrangement related to the Company's acquisition of the additional 4.95% of MGM China shares in August of 2016.

Key fourth quarter results for MGM China include:

  • Net revenues of $500 million, a $1 million increase compared to the prior year quarter; 
  • Main floor table games revenue decreased 2% compared to the prior year quarter; 
  • VIP table games revenue increased 7% due to an increase in hold percentage to 3.7% in the current year quarter, compared to 3.0% in the prior year quarter, partially offset by a decrease in turnover of 16% compared to the prior year quarter; 
  • Operating income was $72 million compared to an operating loss of $1.4 billion in the prior year quarter, which included the $1.5 billion non-cash impairment charge on goodwill recognized for the 2011 MGM China acquisition; 
  • Adjusted EBITDA increased 5% to $138 million, compared to $131 million in the prior year quarter, including $9 million of license fee expense in both the current and prior year quarters; and 
  • Operating margin was 14.4% in the current year quarter, and Adjusted EBITDA margin was 27.5% an increase of 127 basis points compared to the prior year quarter.

Unconsolidated Affiliates

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

 

Three months ended December 31,

 

2016

   

2015

 
   

(In thousands)

 

CityCenter

 

$

25,804

   

$

19,331

 

Borgata

   

     

16,230

 

Other

   

6,224

     

4,691

 
   

$

32,028

   

$

40,252

 

Our share of CityCenter Holdings, LLC ("CityCenter") operating results for the fourth quarter of 2016, including certain basis difference adjustments, was $26 million. Our share of CityCenter's operating income in the prior year quarter was negatively impacted by $10 million due to accelerated depreciation associated with the April 2016 closure of the Zarkana theatre.

Results for CityCenter for the fourth quarter of 2016 include the following (see schedules accompanying this release for further detail on CityCenter's fourth quarter results): 

  • Net revenues from resort operations were $301 million, a 2% decrease compared to the prior year quarter, primarily due to a decrease in entertainment revenue as the Zarkana show closed on April 30, 2016 and a decrease in casino revenue; 
  • Operating income from resorts operations was $27 million, compared to $13 million in the prior year quarter which included $20 million of accelerated depreciation as discussed above; 
  • Adjusted EBITDA from resort operations was $91 million, a 5% decrease compared to the prior year quarter, primarily due to a decrease in entertainment revenue related to the April 2016 Zarkana show closure and a decrease in casino revenue; 
  • Aria's table games volume decreased 11% and table games hold percentage was 29.2%, compared to 26.8% in the prior year quarter; 
  • REVPAR at Aria increased 3% to $218 compared to the prior year quarter; and 
  • Vdara reported REVPAR of $182 in the current year quarter, and Adjusted EBITDA increased 22% to $9 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. The acquisition closed on August 1, 2016, 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 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 fourth quarter of 2016, the Company made rent payments to MGP in the amount of $163 million and received distributions of $72 million from MGM Growth Properties Operating Partnership LP (the "Operating Partnership"). On December 15, 2016, MGP's Board of Directors declared a quarterly dividend of $0.3875 per Class A share totaling $22 million, which was paid on January 16, 2017 to holders of record on December 30, 2016. The Company concurrently received a $72 million distribution attributable to its ownership of units in the Operating Partnership. 

Full Year 2016 Results

Consolidated net revenue for 2016 was $9.5 billion, a 3% increase over 2015. Consolidated operating income was $2.1 billion, including a $430 million gain recognized on the Borgata acquisition and a $401 million gain related to the sale of Crystals, compared to an operating loss of $156 million in the prior year, which included the $1.5 billion non-cash goodwill impairment charge related to the 2011 MGM China acquisition. Net income attributable to MGM Resorts was $1.1 billion compared to a net loss of $448 million in the prior year. Adjusted EBITDA increased 25% compared to the prior year to $2.8 billion. 

Net revenue from domestic resorts was $7.1 billion, a 9% increase over the prior year and operating income from domestic resorts was $1.4 billion a 13% increase over the prior year. Domestic resorts Adjusted Property EBITDA increased 22% to $2.1 billion for 2016 and was positively impacted by approximately $244 million of Adjusted Property EBITDA growth generated from the Company's Profit Growth Plan initiatives as well as $81 million of Adjusted Property EBITDA resulting from the Borgata transaction and $10 million of Adjusted Property EBITDA resulting from the December 2016 opening of MGM National Harbor. Same-store Adjusted Property EBITDA increased 17% compared to the prior year.

MGM China net revenue was $1.9 billion for 2016, a 13% decrease from 2015. MGM China operating income was $255 millioncompared to an operating loss of $1.2 billion in the prior year, which included the $1.5 billion non-cash goodwill impairment charge described above. MGM China Adjusted EBITDA was $521 million compared to $540 million in the prior year. 

CityCenter reported net revenues of $1.2 billion from resort operations, a 3% increase compared to the prior year. Operating income from resort operations was $7 million and included $26 million of NV Energy exit expense and $82 million of accelerated depreciation associated with the April 2016 closure of the Zarkana theatre, compared to operating income of $48 million in the prior year, which included $20 million of accelerated depreciation associated with the Zarkana theatre closure. Adjusted EBITDA related to resort operations was a record $353 million compared to $305 million in the prior year and was positively impacted by approximately $45 million of Adjusted EBITDA growth generated from the Company's Profit Growth Plan initiatives.

During the year ended December 31, 2016, the Company made rent payments to MGP in the amount of $418 million. During the full year 2016 the Company received $113 million of distributions attributable to its ownership of units in the Operating Partnership. 

Diluted earnings per share was $1.92 in the current year compared to loss per share of $0.82 in 2015. The following table lists items that affect the comparability of the current year and prior year annual results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):

 

Year ended December 31,

2016

   

2015

 

NV Energy exit expense

$

(0.18)

   

$

 

Preopening and start-up expenses

 

(0.15)

     

(0.08)

 

Property transactions, net:

             

Gain on sale of Circus Circus Reno and Silver Legacy

 

     

0.03

 

Grand Victoria investment impairment

 

     

(0.02)

 

Other property transactions, net

 

(0.02)

     

(0.05)

 

MGM China goodwill impairment

 

     

(1.38)

 

Gain on Borgata transaction

 

0.61

     

 

Income (loss) from unconsolidated affiliates:

             

Gain on the sale of Crystals

 

0.56

     

 

CityCenter NV Energy exit expense

 

(0.02)

     

 

Harmon-related property transactions, net

 

     

0.10

 

Non-operating expense:

             

Loss on retirement of long-term debt

 

(0.10)

     

 

The current year results included income tax benefit of $204 million attributable to a decrease in valuation allowance on foreign tax credit carryovers resulting from changes in assumptions impacting the assessment of realizability of such carryovers and income tax expense of $36 million attributable to the remeasurement of Macau deferred tax liabilities resulting from a change in assumption concerning renewal of the exemption from the Macau complementary tax on gaming profits.

 

Financial Position

The Company's cash balance at December 31, 2016 was $1.4 billion, which included $454 million at MGM China and $360 million at MGP. At December 31, 2016, the Company had $13.1 billion of principal amount of indebtedness outstanding, including $250 millionoutstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $2.7 billion Operating Partnership senior credit facility, $1.9 billion outstanding under the $3 billion MGM China credit facility, and $450 million outstanding under the $525 million MGM National Harbor credit facility. 

"We have taken significant steps over the past year to prudently pursue strategic opportunities while enhancing our capital structure, addressing near term maturities and strengthening the financial position of our Company," said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. "We continue to focus on maximizing our cash flows to support our balanced approach to capital allocation including our quarterly dividend and targeted growth opportunities while remaining committed to returning MGM Resorts to investment grade."

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, gain on Borgata transaction, 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 option 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. 

About MGM Resorts International 

MGM Resorts International (NYSE:  MGM) is one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company opened MGM National Harbor in Maryland on December 8, 2016, and is in the process of developing MGM Springfield in Massachusetts. MGM Resorts controls and holds a 76 percent economic interest in the operating partnership of MGM Growth Properties LLC (NYSE: MGP), a premier triple-net lease real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts. The Company also owns 56 percent of MGM China Holdings Limited (SEHK: 2282), which owns MGM MACAU and is developing MGM COTAI, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino. MGM Resorts is named among FORTUNE® Magazine's 2016 list of World's Most Admired Companies®.

 

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,

2016

2015

2016

2015

Revenues:

Casino

$

1,366,903

$

1,146,765

$

4,936,490

$

4,842,836

Rooms

505,120

460,778

2,023,841

1,876,733

Food and beverage

401,373

370,880

1,639,910

1,575,496

Entertainment

137,103

137,293

517,433

539,318

Retail

49,711

47,897

200,340

201,688

Other

133,413

115,980

533,528

506,934

Reimbursed costs

95,992

95,936

397,152

398,836

2,689,615

2,375,529

10,248,694

9,941,841

Less: Promotional allowances

(228,795)

(183,656)

(793,571)

(751,773)

2,460,820

2,191,873

9,455,123

9,190,068

Expenses:

Casino

761,280

661,948

2,718,483

2,882,752

Rooms

141,115

139,910

576,426

564,094

Food and beverage

230,947

216,357

943,803

917,993

Entertainment

112,078

101,410

411,657

410,284

Retail

23,737

23,643

96,928

102,904

Other

90,314

80,355

351,215

348,513

Reimbursed costs

95,992

95,936

397,152

398,836

General and administrative

376,717

306,728

1,378,617

1,309,104

Corporate expense

71,941

90,574

312,774

274,551

NV Energy exit expense

-

-

139,335

-

Preopening and start-up expenses 

61,631

21,057

140,075

71,327

Property transactions, net

12,361

23,286

17,078

35,951

Goodwill impairment

-

1,467,991

-

1,467,991

Gain on Borgata transaction

(340)

-

(430,118)

-

Depreciation and amortization

233,052

200,164

849,527

819,883

2,210,825

3,429,359

7,902,952

9,604,183

Income from unconsolidated affiliates

32,028

40,252

527,616

257,883

Operating income (loss)

282,023

(1,197,234)

2,079,787

(156,232)

Non-operating income (expense):

Interest expense, net of amounts capitalized

(161,704)

(186,291)

(694,773)

(797,579)

Non-operating items from unconsolidated affiliates

(7,910)

(16,717)

(53,139)

(76,462)

Other, net

(4,983)

(3,279)

(72,698)

(15,970)

(174,597)

(206,287)

(820,610)

(890,011)

Income (loss) before income taxes

107,426

(1,403,521)

1,259,177

(1,046,243)

Benefit (provision) for income taxes

(37,504)

(69,976)

(22,299)

6,594

Net income (loss)

69,922

(1,473,497)

1,236,878

(1,039,649)

Less: Net (income) loss attributable to noncontrolling interests

(45,253)

692,043

(135,438)

591,929

Net income (loss) attributable to MGM Resorts International

$

24,669

$

(781,454)

$

1,101,440

$

(447,720)

Per share of common stock:

Basic:

Net income (loss) attributable to MGM Resorts International

$

0.04

$

(1.38)

$

1.94

$

(0.82)

Weighted average shares outstanding

573,833

564,398

568,134

542,873

Diluted:

Net income (loss) attributable to MGM Resorts International

$

0.04

$

(1.38)

$

1.92

$

(0.82)

Weighted average shares outstanding

579,176

564,398

573,317

542,873

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

December 31,

December 31,

2016

2015

ASSETS

Current assets:

Cash and cash equivalents

$

1,446,581

$

1,670,312

Accounts receivable, net

542,924

480,559

Inventories

97,733

104,200

Income tax receivable

-

15,993

Prepaid expenses and other

142,349

137,685

 

Total current assets

2,229,587

2,408,749

Property and equipment, net

18,425,023

15,371,795

Other assets:

Investments in and advances to unconsolidated affiliates

1,220,443

1,491,497

Goodwill 

1,817,119

1,430,767

Other intangible assets, net

4,087,706

4,164,781

Other long-term assets, net

393,423

347,589

 

Total other assets

7,518,691

7,434,634

$

28,173,301

$

25,215,178

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

250,477

$

182,031

Construction payable

270,361

250,120

Income taxes payable

10,654

-

Current portion of long-term debt

8,375

328,442

Accrued interest on long-term debt

159,028

165,914

Other accrued liabilities

1,594,526

1,311,444

 

Total current liabilities

2,293,421

2,237,951

Deferred income taxes, net 

2,551,228

2,680,576

Long-term debt

12,979,220

12,368,311

Other long-term obligations

325,981

157,663

Redeemable noncontrolling interest

54,139

6,250

Stockholders' equity:

Common stock, $.01 par value: authorized 1,000,000,000 shares,

   issued and outstanding 574,123,706 and 564,838,893 shares 

5,741

5,648

Capital in excess of par value

5,653,575

5,655,886

Retained earnings (accumulated deficit)

545,811

(555,629)

Accumulated other comprehensive income 

15,053

14,022

 

Total MGM Resorts International stockholders' equity

6,220,180

5,119,927

Noncontrolling interests

3,749,132

2,644,500

 

Total stockholders' equity

9,969,312

7,764,427

$

28,173,301

$

25,215,178

 

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,

2016

2015

2016

2015

Bellagio

$

333,123

$

311,893

$

1,338,626

$

1,236,248

MGM Grand Las Vegas

262,911

283,086

1,122,380

1,138,469

Mandalay Bay

199,006

205,134

934,110

906,243

The Mirage 

137,487

128,095

586,745

568,607

Luxor

99,466

94,351

391,634

372,426

New York-New York 

86,432

78,514

336,150

308,319

Excalibur

75,605

71,571

309,551

289,324

Monte Carlo

67,338

69,954

280,835

290,240

Circus Circus Las Vegas

60,607

55,347

248,313

232,844

MGM Grand Detroit

140,945

144,266

564,976

547,399

Beau Rivage

90,600

87,870

377,396

367,587

Gold Strike Tunica

39,369

38,990

163,535

160,863

Borgata (1)

197,456

-

348,462

-

National Harbor (2)

53,005

-

53,005

-

Other resort operations (3)

-

8,727

-

78,792

  Domestic resorts

1,843,350

1,577,798

7,055,718

6,497,361

MGM China

499,685

498,784

1,920,487

2,214,767

Management and other operations

117,785

115,291

478,918

477,940

$

2,460,820

$

2,191,873

$

9,455,123

$

9,190,068

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

Bellagio

$

118,280

$

106,588

$

479,259

$

395,385

MGM Grand Las Vegas

69,538

80,228

330,681

280,266

Mandalay Bay

34,988

38,729

235,609

203,474

The Mirage 

27,183

16,674

139,427

112,475

Luxor

27,062

24,847

108,192

87,169

New York-New York 

30,074

29,417

121,729

106,457

Excalibur

25,618

22,649

101,525

82,247

Monte Carlo

16,978

22,224

78,862

85,962

Circus Circus Las Vegas

15,754

11,677

61,989

43,245

MGM Grand Detroit

43,558

45,256

171,414

154,979

Beau Rivage

17,635

22,059

93,762

88,843

Gold Strike Tunica

11,378

11,879

49,690

46,023

Borgata (1)

45,182

-

81,281

-

National Harbor (2)

9,596

-

9,596

-

Other resort operations (3)

-

(1,492)

-

3,441

  Domestic resorts

492,824

430,735

2,063,016

1,689,966

MGM China

137,549

130,983

520,736

539,881

Unconsolidated resorts (4)

32,028

40,252

527,616

257,883

Management and other operations

3,212

7,616

13,000

37,419

$

665,613

$

609,586

$

3,124,368

$

2,525,149

 

(1) For the twelve months ended December 31, 2016, represents net revenues and Adjusted Property EBITDA of Borgata for the period from August 1, 2016 (the first day of the Company's full ownership) through December 31, 2016

(2) Represents net revenues and Adjusted Property EBITDA of National Harbor for the month ended December 31, 2016 only

(3) Sold in 2015

(4) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences. Includes the Company's share of Borgata results for the three and twelve month periods ended December 31, 2015 and the seven months ended July 31, 2016

 

 

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, 2016

Operating 

income (loss)

NV Energy exit 

expense

Preopening and 

start-up 

expenses

Property 

transactions, net 

and gain on 

Borgata 

transaction

Depreciation and 

amortization

Adjusted EBITDA

Bellagio

$

95,485

$

-

$

-

$

207

$

22,588

$

118,280

MGM Grand Las Vegas

50,521

-

82

596

18,339

69,538

Mandalay Bay

12,077

-

-

422

22,489

34,988

The Mirage 

16,736

-

-

441

10,006

27,183

Luxor

17,780

-

-

184

9,098

27,062

New York-New York 

24,693

-

2

31

5,348

30,074

Excalibur

20,809

-

-

818

3,991

25,618

Monte Carlo

3,083

-

1,421

925

11,549

16,978

Circus Circus Las Vegas

10,305

-

-

582

4,867

15,754

MGM Grand Detroit

37,836

-

-

(59)

5,781

43,558

Beau Rivage

11,582

-

-

(113)

6,166

17,635

Gold Strike Tunica

8,939

-

-

(36)

2,475

11,378

Borgata

15,786

-

39

8,573

20,784

45,182

National Harbor (1)

(13,626)

-

17,986

-

5,236

9,596

Other resort operations (2)

-

-

-

-

-

-

  Domestic resorts

312,006

-

19,530

12,571

148,717

492,824

MGM China

72,055

-

7,102

(339)

58,731

137,549

Unconsolidated resorts 

32,028

-

-

-

-

32,028

Management and other operations

1,055

-

-

29

2,128

3,212

417,144

-

26,632

12,261

209,576

665,613

Stock compensation

(13,525)

-

-

-

-

(13,525)

Corporate 

(121,596)

-

34,999

(240)

23,476

(63,361)

$

282,023

$

-

$

61,631

$

12,021

$

233,052

$

588,727

Three Months Ended December 31, 2015

Operating 

income (loss)

NV Energy exit 

expense

Preopening and 

start-up 

expenses

Property 

transactions, net 

and goodwill 

impairment

Depreciation and 

amortization

Adjusted EBITDA

Bellagio

$

83,761

$

-

$

-

$

748

$

22,079

$

106,588

MGM Grand Las Vegas

62,391

-

-

11

17,826

80,228

Mandalay Bay

16,078

-

-

937

21,714

38,729

The Mirage 

6,099

-

65

427

10,083

16,674

Luxor

15,376

-

-

6

9,465

24,847

New York-New York 

20,686

-

-

3,789

4,942

29,417

Excalibur

19,031

-

-

(17)

3,635

22,649

Monte Carlo

14,305

-

(2)

1,620

6,301

22,224

Circus Circus Las Vegas

7,723

-

(1)

12

3,943

11,677

MGM Grand Detroit

39,217

-

-

(36)

6,075

45,256

Beau Rivage

15,396

-

-

(12)

6,675

22,059

Gold Strike Tunica

9,082

-

-

207

2,590

11,879

Other resort operations

(1,492)

-

-

-

-

(1,492)

  Domestic resorts

307,653

-

62

7,692

115,328

430,735

MGM China

(1,405,182)

-

3,531

1,471,160

61,474

130,983

Unconsolidated resorts (3)

39,190

-

1,062

-

-

40,252

Management and other operations

5,291

-

337

1

1,987

7,616

(1,053,048)

-

4,992

1,478,853

178,789

609,586

Stock compensation

(9,845)

-

-

-

-

(9,845)

Corporate 

(134,341)

-

16,065

12,424

21,375

(84,477)

$

(1,197,234)

$

-

$

21,057

$

1,491,277

$

200,164

$

515,264

 

(1) Represents operating results of National Harbor for the month ended December 31, 2016

(2) Sold in 2015

(3) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences. Includes the Company's share of Borgata results for the three months ended December 31, 2015 

 

 

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, 2016

Operating 

income (loss)

NV Energy exit 

expense

Preopening and 

start-up 

expenses

Property 

transactions, net 

and gain on 

Borgata 

transaction

Depreciation and 

amortization

Adjusted EBITDA

Bellagio

$

366,543

$

23,815

$

-

$

118

$

88,783

$

479,259

MGM Grand Las Vegas

231,327

25,365

82

1,719

72,188

330,681

Mandalay Bay

114,202

29,123

252

2,377

89,655

235,609

The Mirage 

85,300

13,813

-

44

40,270

139,427

Luxor

57,653

11,594

1,625

708

36,612

108,192

New York-New York 

93,169

7,439

479

210

20,432

121,729

Excalibur

71,885

9,083

-

4,405

16,152

101,525

Monte Carlo

33,291

8,409

1,929

1,131

34,102

78,862

Circus Circus Las Vegas

33,516

10,694

-

816

16,963

61,989

MGM Grand Detroit

147,865

-

-

(59)

23,608

171,414

Beau Rivage

68,054

-

-

(172)

25,880

93,762

Gold Strike Tunica

39,831

-

-

67

9,792

49,690

Borgata (1)

38,616

-

90

8,652

33,923

81,281

National Harbor (2)

(13,626)

-

17,986

-

5,236

9,596

Other resort operations (3)

-

-

-

-

-

-

  Domestic resorts

1,367,626

139,335

22,443

20,016

513,596

2,063,016

MGM China

255,264

-

27,848

(216)

237,840

520,736

Unconsolidated resorts (4)

524,448

-

3,168

-

-

527,616

Management and other operations

4,316

-

1,150

29

7,505

13,000

2,151,654

139,335

54,609

19,829

758,941

3,124,368

Stock compensation

(44,957)

-

-

-

-

(44,957)

Corporate 

(26,910)

-

85,466

(432,869)

90,586

(283,727)

$

2,079,787

$

139,335

$

140,075

$

(413,040)

$

849,527

$

2,795,684

Twelve Months Ended December 31, 2015

Operating 

income (loss)

NV Energy exit 

expense

Preopening and 

start-up 

expenses

Property 

transactions, net 

and goodwill 

impairment

Depreciation and 

amortization

Adjusted EBITDA

Bellagio

$

303,858

$

-

$

-

$

1,085

$

90,442

$

395,385

MGM Grand Las Vegas

206,896

-

-

110

73,260

280,266

Mandalay Bay

120,142

-

-

3,599

79,733

203,474

The Mirage 

66,069

-

115

1,729

44,562

112,475

Luxor

49,369

-

(2)

94

37,708

87,169

New York-New York 

81,618

-

(74)

4,931

19,982

106,457

Excalibur

67,545

-

-

111

14,591

82,247

Monte Carlo

55,594

-

-

3,219

27,149

85,962

Circus Circus Las Vegas

27,305

-

280

21

15,639

43,245

MGM Grand Detroit

131,016

-

-

(36)

23,999

154,979

Beau Rivage

62,613

-

-

(5)

26,235

88,843

Gold Strike Tunica

34,362

-

-

221

11,440

46,023

Other resort operations

2,975

-

-

-

466

3,441

  Domestic resorts

1,209,362

-

319

15,079

465,206

1,689,966

MGM China

(1,212,377)

-

13,863

1,472,128

266,267

539,881

Unconsolidated resorts (4)

254,408

-

3,475

-

-

257,883

Management and other operations

27,395

-

1,179

1,080

7,765

37,419

278,788

-

18,836

1,488,287

739,238

2,525,149

Stock compensation

(32,125)

-

-

-

-

(32,125)

Corporate 

(402,895)

-

52,491

15,655

80,645

(254,104)

$

(156,232)

$

-

$

71,327

$

1,503,942

$

819,883

$

2,238,920

 

(1) Represents operating results of Borgata for the period from August 1, 2016 (the first day of the Company's full ownership) through December 31, 2016

(2) Represents operating results of National Harbor for the month ended December 31, 2016

(3) Sold in 2015

(4) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences. Includes the Company's share of Borgata results for the twelve months ended December 31, 2015 and the seven months ended July 31, 2016

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO ADJUSTED EBITDA 

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

Net income (loss) attributable to MGM Resorts International

$

24,669

$

(781,454)

$

1,101,440

$

(447,720)

  Plus: Net income (loss) attributable to noncontrolling interests

45,253

(692,043)

135,438

(591,929)

Net income (loss)

69,922

(1,473,497)

1,236,878

(1,039,649)

  Provision (benefit) for income taxes

37,504

69,976

22,299

(6,594)

Income (loss) before income taxes

107,426

(1,403,521)

1,259,177

(1,046,243)

Non-operating (income) expense:

  Interest expense, net of amounts capitalized

161,704

186,291

694,773

797,579

  Other, net

12,893

19,996

125,837

92,432

174,597

206,287

820,610

890,011

Operating income (loss)

282,023

(1,197,234)

2,079,787

(156,232)

  NV Energy exit expense

-

-

139,335

-

  Preopening and start-up expenses

61,631

21,057

140,075

71,327

  Property transactions, net

12,361

23,286

17,078

35,951

  Goodwill impairment

-

1,467,991

-

1,467,991

  Gain on Borgata transaction

(340)

-

(430,118)

-

  Depreciation and amortization

233,052

200,164

849,527

819,883

Adjusted EBITDA

$

588,727

$

515,264

$

2,795,684

$

2,238,920

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

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

Domestic resorts Adjusted Property EBITDA

$

492,824

$

430,735

$

2,063,016

$

1,689,966

  Adjusted Property EBITDA related to Borgata

(45,182)

-

(81,281)

-

  Adjusted Property EBITDA related to National Harbor 

(9,596)

-

(9,596)

-

  Adjusted Property EBITDA related to other resort operations

-

1,492

-

(3,441)

Domestic resorts same-store Adjusted Property EBITDA

$

438,046

$

432,227

$

1,972,139

$

1,686,525

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,

2016

2015

2016

2015

Bellagio

   Occupancy %

91.0%

91.1%

93.5%

93.2%

   Average daily rate (ADR)

$278

$270

$275

$262

   Revenue per available room (REVPAR)

$253

$246

$257

$244

MGM Grand Las Vegas

   Occupancy %

89.8%

89.2%

93.5%

94.1%

   ADR

$171

$170

$175

$165

   REVPAR

$153

$152

$164

$156

Mandalay Bay 

   Occupancy %

85.8%

84.9%

91.5%

90.6%

   ADR

$199

$201

$209

$203

   REVPAR

$170

$171

$192

$184

The Mirage

   Occupancy %

92.6%

93.3%

95.1%

94.2%

   ADR

$168

$169

$170

$166

   REVPAR

$156

$158

$162

$157

Luxor 

   Occupancy %

90.9%

91.4%

95.3%

94.2%

   ADR

$115

$108

$112

$105

   REVPAR

$105

$99

$106

$99

New York-New York

   Occupancy %

95.1%

94.8%

97.5%

97.6%

   ADR

$141

$133

$139

$129

   REVPAR

$134

$126

$136

$126

Excalibur 

   Occupancy %

89.5%

90.0%

93.7%

93.2%

   ADR

$100

$92

$97

$88

   REVPAR

$89

$83

$91

$82

Monte Carlo 

   Occupancy %

91.3%

93.5%

96.1%

96.4%

   ADR

$129

$122

$126

$119

   REVPAR

$118

$114

$121

$115

Circus Circus Las Vegas

   Occupancy %

81.6%

80.2%

84.2%

83.8%

   ADR

$83

$75

$80

$71

   REVPAR

$68

$60

$67

$59

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

Aria

$

255,682

$

263,463

$

1,012,259

$

990,475

Vdara

28,815

27,515

119,367

111,006

Mandarin Oriental

16,542

15,806

65,763

61,541

 Resort operations

301,039

306,784

1,197,389

1,163,022

Residential and other operations

32

3,369

2,676

33,358

$

301,071

$

310,153

$

1,200,065

$

1,196,380

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

Net income (loss)

$

18,933

$

(4)

$

348,373

$

161,833

 Less: Income from discontinued operations

(7,673)

(5,326)

(407,187)

(22,681)

Income (loss) from continuing operations

11,260

(5,330)

(58,814)

139,152

Non-operating (income) expense:

  Interest expense, net of amounts capitalized

14,510

18,179

61,032

72,791

  Other, net

106

(163)

3,323

(280)

14,616

18,016

64,355

72,511

Operating income

25,876

12,686

5,541

211,663

  NV Energy exit expense

-

-

26,089

-

  Property transactions, net

6,468

4,274

4,529

(154,788)

  Depreciation and amortization

57,301

78,305

313,787

251,847

Adjusted EBITDA

$

89,645

$

95,265

$

349,946

$

308,722

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended December 31, 2016

Operating income 

(loss)

NV Energy exit 

expense

Preopening and 

start-up 

expenses

Property 

transactions, net

Depreciation 

and 

amortization

Adjusted 

EBITDA

Aria

$

25,875

$

-

$

-

$

6,468

$

47,178

$

79,521

Vdara

2,023

-

-

-

6,996

9,019

Mandarin Oriental

(1,027)

-

-

-

3,127

2,100

 Resort operations

26,871

-

-

6,468

57,301

90,640

Residential, administration and

other operations

(995)

-

-

-

-

(995)

$

25,876

$

-

$

-

$

6,468

$

57,301

$

89,645

Three Months Ended December 31, 2015

Operating income 

(loss)

NV Energy exit 

expense

Preopening and 

start-up 

expenses

Property 

transactions, net

Depreciation 

and 

amortization

Adjusted 

EBITDA

Aria

$

13,119

$

-

$

-

$

4,271

$

68,242

$

85,632

Vdara

426

-

-

3

6,974

7,403

Mandarin Oriental

(914)

-

-

-

3,085

2,171

 Resort operations

12,631

-

-

4,274

78,301

95,206

Residential, administration and

other operations

55

-

-

-

4

59

$

12,686

$

-

$

-

$

4,274

$

78,305

$

95,265

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Twelve Months Ended December 31, 2016

Operating 

income (loss)

NV Energy exit 

expense

Preopening and 

start-up 

expenses

Property 

transactions, net

Depreciation and 

amortization

Adjusted 

EBITDA

Aria

$

7,920

$

23,320

$

-

$

5,993

$

273,465

$

310,698

Vdara

6,672

1,676

-

(253)

27,861

35,956

Mandarin Oriental

(7,094)

1,093

-

-

12,461

6,460

 Resort operations

7,498

26,089

-

5,740

313,787

353,114

Residential, administration and

other operations

(1,957)

-

-

(1,211)

-

(3,168)

$

5,541

$

26,089

$

-

$

4,529

$

313,787

$

349,946

Twelve Months Ended December 31, 2015

Operating 

income (loss)

NV Energy exit 

expense

Preopening and 

start-up 

expenses

Property 

transactions, net

Depreciation and 

amortization

Adjusted 

EBITDA

Aria

$

54,909

$

-

$

-

$

5,189

$

209,356

$

269,454

Vdara

(726)

-

-

3

30,389

29,666

Mandarin Oriental

(6,569)

-

-

-

12,254

5,685

 Resort operations

47,614

-

-

5,192

251,999

304,805

Residential, administration and

other operations

164,049

-

-

(159,980)

(152)

3,917

$

211,663

$

-

$

-

$

(154,788)

$

251,847

$

308,722

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

Aria

   Occupancy %

91.2%

90.2%

92.7%

92.3%

   ADR

$239

$235

$242

$233

   REVPAR

$218

$212

$224

$215

Vdara

   Occupancy %

85.5%

86.7%

90.8%

91.7%

   ADR

$213

$202

$205

$189

   REVPAR

$182

$175

$186

$173



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