MGM Resorts International Results

MGM Resorts International Reports Second Quarter 2017 Financial And Operating Results

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

MGM Resorts International

MGM Resorts International (NYSE:  MGM) today reported financial results for the quarter ended June 30, 2017.

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

 Financial Highlights:

  • Diluted earnings per share for the second quarter of 2017 of $0.36, including a benefit of $0.04 related to a Borgata property tax settlement and a benefit of $0.05 from a modification of the 2016 NV Energy exit fee, compared to $0.83 in the prior year quarter, which included $0.57 related to a gain on CityCenter's sale of Crystals; 
  • Net revenues increase of 22% over the prior year quarter at the Company's domestic resorts to $2.1 billion, due to the inclusion of MGM National Harbor and Borgata, and a decrease of 1% on a same-store basis primarily due to lower year over year table games hold; 
  • REVPAR(1)  growth of 1.2% over the prior year quarter at the Company's Las Vegas Strip resorts; 
  • Operating income of $520 million at the Company's domestic resorts, a 33% increase over the prior year quarter, including the impact of $41 million related to the NV Energy exit fee modification and $36 million related to the Borgata property tax settlement;  
  • Net income attributable to MGM Resorts of $211 million, compared to $474 million in the prior year quarter; 
  • Adjusted Property EBITDA(2) growth of 28% over the prior year quarter to $658 million at the Company's domestic resorts, and an increase of 1% on a same-store basis; 
  • Same-store operating margin of 25.1% in the current quarter at the Company's domestic resorts, an increase of 205 basis points compared to the prior year quarter; 
  • Same-store Adjusted Property EBITDA margin of 30.8% at the Company's domestic resorts, an increase of 44 basis points compared to the prior year quarter; 
  • MGM China operating income of $43 million compared to $51 million in the prior year quarter, and Adjusted EBITDA of $116 million, a 2% decrease compared to the prior year quarter; and 
  • CityCenter operating income of $57 million and Adjusted EBITDA of $105 million, a 36% increase in Adjusted EBITDA compared to the prior year quarter.

Certain Items Affecting Second Quarter Results

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

 

Three months ended June 30,

2017

2016

Borgata property tax settlement

$

0.04

$

NV Energy exit expense

0.05

Preopening and start-up expenses

(0.02)

(0.03)

Property transactions, net

(0.01)

Income from unconsolidated affiliates:

       Gain on the sale of Crystals

0.57

 

Domestic Resorts

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

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

 

Three months ended June 30,

2017

2016

(Dollars in millions)

Table Games Drop

$

872

$

905

Table Games Win %

20.9

%

25.6

%

Slot Handle

$

3,053

$

2,953

Slot Hold %

8.7

%

8.8

%

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

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

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

 

Three months ended June 30,

2017

2016

Occupancy %

94

%

95

%

Average Daily Rate (ADR)

$

161

$

157

Revenue per Available Room (REVPAR)

$

151

$

149

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

Mr. Murren concluded, "As we look to the third quarter, we face a challenging comparison at our Las Vegas Strip resorts due to favorable table games hold of 25% and RevPAR growth of 10.7% in the third quarter of 2016. We also continue to see higher than anticipated disruption at Monte Carlo as the property undergoes its transformation to Park MGM. Despite these considerations, given our strong event calendar, we anticipate third quarter revenues to increase slightly, with our Strip REVPAR expected to grow 2%-3%. We anticipate our Adjusted Property EBITDA margins to modestly increase."

 

MGM China

Key second quarter results for MGM China include:

  • Net revenues of $449 million, a 1% decrease compared to the prior year quarter; 
  • Main floor table games revenue decreased 2% compared to the prior year quarter due to an 8% decrease in volume partially offset by an increase in hold percentage to 19.3% in the current year quarter, from 18.2% in the prior year quarter, and against 22.2% hold percentage in the first quarter of 2017; 
  • VIP table games revenue increased 1% compared to the prior year quarter due to a 3% increase in turnover partially offset by a decrease in hold percentage to 2.9% in the current year quarter, from 3.1% in the prior year quarter, and against 3.4% hold percentage in the first quarter of 2017; 
  • Operating income was $43 million compared to $51 million in the prior year quarter; 
  • Adjusted EBITDA decreased 2% to $116 million, compared to $119 million in the prior year quarter, including $8 million of license fee expense in both the current and prior year quarters; and 
  • Operating margin was 9.6% in the current year quarter, and Adjusted EBITDA margin was 25.9% compared to 26.4% in the prior year quarter.

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

Unconsolidated Affiliates

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

 

Three months ended June 30,

2017

2016

(In thousands)

CityCenter

$

37,646

$

416,144

Borgata

27,376

Other

2,937

4,789

$

40,583

$

448,309

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

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

  • Net revenues from resort operations were $314 million, a 10% increase compared to the prior year quarter, due primarily to an increase in casino revenues; 
  • Operating income from resort operations was $58 million and included $8 million related to the NV Energy exit fee modification discussed above, compared to operating income of $0.2 million in the prior year quarter, which included $20 million of accelerated depreciation related to the Zarkana theatre closure; 
  • Adjusted EBITDA from resort operations was $106 million, a 36% increase compared to the prior year quarter; 
  • Aria's table games volume increased 14% and table games hold percentage was 26.8%, compared to 19.5% in the prior year quarter; 
  • REVPAR at Aria increased 3% compared to the prior year quarter to $236; and 
  • Vdara reported REVPAR of $188 in the current year quarter, and Adjusted EBITDA increased 23% to $10 millioncompared to the prior year quarter.

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

 

MGM Growth Properties 

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

MGM Resorts Dividend

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

Financial Position

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

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

About MGM Resorts International 

MGM Resorts International (NYSE:  MGM) is a global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 27 unique hotel offerings including some of the most recognizable resort brands in the industry. The company is expanding throughout the U.S. and around the world, developing MGM Springfield in Massachusetts and MGM COTAI in Macau, and debuting the first international Bellagio branded hotel in Shanghai.

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,

2017

2016

2017

2016

Revenues:

Casino

$

1,405,063

$

1,127,404

$

2,910,452

$

2,261,760

Rooms

542,470

498,904

1,104,737

988,390

Food and beverage

466,546

412,766

911,015

789,871

Entertainment

138,361

121,853

268,708

240,179

Retail

56,830

52,432

104,806

97,905

Other

161,367

134,120

301,942

251,645

Reimbursed costs

99,293

100,795

199,508

201,844

2,869,930

2,448,274

5,801,168

4,831,594

Less: Promotional allowances

(228,193)

(178,772)

(451,252)

(352,406)

2,641,737

2,269,502

5,349,916

4,479,188

Expenses:

Casino

763,259

620,305

1,567,854

1,260,874

Rooms

152,735

142,252

307,571

286,994

Food and beverage

261,495

239,452

511,340

460,748

Entertainment

108,618

98,827

208,557

191,115

Retail

27,278

24,085

50,386

46,086

Other

96,265

87,253

185,889

167,021

Reimbursed costs

99,292

100,795

199,507

201,844

General and administrative

354,463

321,407

743,298

629,950

Corporate expense

79,408

81,803

152,581

153,051

NV Energy exit expense

(40,629)

-

(40,629)

-

Preopening and start-up expenses 

21,093

24,824

36,159

46,784

Property transactions, net

13,243

854

14,939

5,985

Depreciation and amortization

244,754

206,899

494,523

406,738

2,181,274

1,948,756

4,431,975

3,857,190

Income from unconsolidated affiliates

40,583

448,309

80,286

463,011

Operating income

501,046

769,055

998,227

1,085,009

Non-operating income (expense):

Interest expense, net of amounts capitalized

(174,058)

(180,352)

(348,117)

(365,021)

Non-operating items from unconsolidated affiliates

(10,556)

(15,885)

(17,477)

(34,097)

Other, net

(751)

(49,840)

(1,568)

(50,405)

(185,365)

(246,077)

(367,162)

(449,523)

Income before income taxes

315,681

522,978

631,065

635,486

Provision for income taxes

(74,061)

(8,480)

(136,436)

(29,790)

Net income

241,620

514,498

494,629

605,696

Less: Net income attributable to noncontrolling interests

(31,009)

(40,145)

(77,171)

(64,544)

Net income attributable to MGM Resorts International

$

210,611

$

474,353

$

417,458

$

541,152

Per share of common stock:

Basic:

Net income attributable to MGM Resorts International

$

0.37

$

0.84

$

0.73

$

0.96

Weighted average shares outstanding

574,931

565,459

574,668

565,257

Diluted:

Net income attributable to MGM Resorts International

$

0.36

$

0.83

$

0.72

$

0.95

Weighted average shares outstanding

582,056

570,762

581,112

570,108

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

June 30,

December 31,

2017

2016

      ASSETS

Current assets:

Cash and cash equivalents

$

1,757,062

$

1,446,581

Accounts receivable, net

469,126

542,924

Inventories

103,119

97,733

Income tax receivable

7,362

-

Prepaid expenses and other

148,462

142,349

Total current assets

2,485,131

2,229,587

Property and equipment, net

18,896,912

18,425,023

Other assets:

Investments in and advances to unconsolidated affiliates

980,885

1,220,443

Goodwill 

1,807,772

1,817,119

Other intangible assets, net

3,972,046

4,087,706

Other long-term assets, net

400,185

393,423

Total other assets

7,160,888

7,518,691

$

28,542,931

$

28,173,301

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

206,144

$

250,477

Construction payable

254,324

270,361

Income tax payable

-

10,654

Current portion of long-term debt

472,590

8,375

Accrued interest on long-term debt

147,438

159,028

Other accrued liabilities

1,599,072

1,594,526

Total current liabilities

2,679,568

2,293,421

Deferred income taxes, net 

2,560,127

2,551,228

Long-term debt, net

12,725,268

12,979,220

Other long-term obligations

289,630

325,981

Redeemable noncontrolling interest

57,341

54,139

Stockholders' equity:

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

   issued and outstanding 575,008,760 and 574,123,706 shares 

5,750

5,741

Capital in excess of par value

5,677,966

5,653,575

Retained earnings

836,840

545,811

Accumulated other comprehensive income (loss)

(9,148)

15,053

Total MGM Resorts International stockholders' equity

6,511,408

6,220,180

Noncontrolling interests

3,719,589

3,749,132

Total stockholders' equity

10,230,997

9,969,312

$

28,542,931

$

28,173,301

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Bellagio

$

312,722

$

332,812

$

653,976

$

662,551

MGM Grand Las Vegas

298,289

300,232

565,815

568,686

Mandalay Bay

245,295

237,980

498,328

468,161

The Mirage 

147,620

153,041

319,951

297,636

Luxor

101,573

95,144

203,200

188,016

New York-New York 

88,729

83,056

178,668

164,427

Excalibur

82,793

78,453

161,773

152,741

Monte Carlo

65,318

71,208

137,851

140,928

Circus Circus Las Vegas

62,102

61,235

120,823

118,192

MGM Grand Detroit

142,675

140,462

286,907

281,327

Beau Rivage

94,393

99,388

183,570

188,825

Gold Strike Tunica

42,189

41,480

85,011

82,224

Borgata

209,427

-

410,508

-

National Harbor

177,788

-

350,947

-

  Domestic resorts

2,070,913

1,694,491

4,157,328

3,313,714

MGM China

448,743

451,951

951,117

920,980

Management and other operations

122,081

123,060

241,471

244,494

$

2,641,737

$

2,269,502

$

5,349,916

$

4,479,188

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Bellagio

$

110,953

$

117,538

$

240,060

$

234,189

MGM Grand Las Vegas

94,074

97,489

167,724

178,383

Mandalay Bay

68,272

63,203

146,389

121,325

The Mirage 

38,374

35,848

100,469

74,178

Luxor

32,911

26,054

65,715

51,445

New York-New York 

33,224

30,478

67,136

61,381

Excalibur

28,653

24,954

57,451

48,831

Monte Carlo

16,784

21,820

39,238

43,120

Circus Circus Las Vegas

16,239

13,172

32,197

26,465

MGM Grand Detroit

45,413

43,790

90,017

83,832

Beau Rivage

21,105

28,036

41,592

50,835

Gold Strike Tunica

13,261

12,701

27,987

26,030

Borgata

101,419

-

160,342

-

National Harbor

36,980

-

69,120

-

  Domestic resorts

657,662

515,083

1,305,437

1,000,014

MGM China

116,320

119,196

259,302

233,319

Unconsolidated resorts (1)

40,583

448,309

80,286

463,011

Management and other operations

9,097

4,372

20,013

8,487

$

823,662

$

1,086,960

$

1,665,038

$

1,704,831

 

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

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended June 30, 2017

Operating

income (loss)

NV Energy exit

expense

Preopening and

start-up

expenses

Property

transactions, 

net

Depreciation 

and

amortization

Adjusted 

EBITDA

Bellagio

$

95,886

$

(6,970)

$

-

$

38

$

21,999

$

110,953

MGM Grand Las Vegas 

82,456

(7,424)

-

611

18,431

94,074

Mandalay Bay

52,255

(8,524)

-

(10)

24,551

68,272

The Mirage 

32,495

(4,043)

-

117

9,805

38,374

Luxor

25,819

(3,394)

-

1,165

9,321

32,911

New York-New York 

28,845

(2,025)

-

54

6,350

33,224

Excalibur

26,521

(2,658)

-

203

4,587

28,653

Monte Carlo

(2,082)

(2,461)

439

9,959

10,929

16,784

Circus Circus Las Vegas

14,264

(3,130)

450

496

4,159

16,239

MGM Grand Detroit

39,719

-

-

-

5,694

45,413

Beau Rivage

15,148

-

-

5

5,952

21,105

Gold Strike Tunica

10,983

-

-

6

2,272

13,261

Borgata

80,093

-

1,242

416

19,668

101,419

National Harbor

17,991

-

153

-

18,836

36,980

  Domestic resorts

520,393

(40,629)

2,284

13,060

162,554

657,662

MGM China

43,039

-

13,334

183

59,764

116,320

Unconsolidated resorts (1)

40,583

-

-

-

-

40,583

Management and other operations

7,307

-

-

-

1,790

9,097

611,322

(40,629)

15,618

13,243

224,108

823,662

Stock compensation

(12,046)

-

-

-

-

(12,046)

Corporate 

(98,230)

-

5,475

-

20,646

(72,109)

$

501,046

$

(40,629)

$

21,093

$

13,243

$

244,754

$

739,507

Three Months Ended June 30, 2016

Operating

income (loss)

NV Energy exit

expense

Preopening and

start-up

expenses

Property

transactions, 

net

Depreciation 

and

amortization

Adjusted 

EBITDA

Bellagio

$

95,085

$

-

$

-

$

60

$

22,393

$

117,538

MGM Grand Las Vegas

79,293

-

-

(263)

18,459

97,489

Mandalay Bay

40,629

-

15

284

22,275

63,203

The Mirage 

26,132

-

-

(413)

10,129

35,848

Luxor

15,161

-

1,444

86

9,363

26,054

New York-New York 

25,006

-

372

97

5,003

30,478

Excalibur

20,741

-

-

203

4,010

24,954

Monte Carlo

9,494

-

145

61

12,120

21,820

Circus Circus Las Vegas

9,199

-

-

(4)

3,977

13,172

MGM Grand Detroit

37,815

-

-

-

5,975

43,790

Beau Rivage

21,460

-

-

(72)

6,648

28,036

Gold Strike Tunica

10,273

-

-

(4)

2,432

12,701

  Domestic resorts

390,288

-

1,976

35

122,784

515,083

MGM China

51,453

-

6,540

1,281

59,922

119,196

Unconsolidated resorts (1)

447,504

-

805

-

-

448,309

Management and other operations

2,521

-

-

-

1,851

4,372

891,766

-

9,321

1,316

184,557

1,086,960

Stock compensation

(10,440)

-

-

-

-

(10,440)

Corporate 

(112,271)

-

15,503

(462)

22,342

(74,888)

$

769,055

$

-

$

24,824

$

854

$

206,899

$

1,001,632

 

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

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Six Months Ended June 30, 2017

Operating

income (loss)

NV Energy exit

expense

Preopening and

start-up

expenses

Property

transactions, 

net

Depreciation 

and

amortization

Adjusted 

EBITDA

Bellagio

$

202,762

$

(6,970)

$

-

$

123

$

44,145

$

240,060

MGM Grand Las Vegas

138,278

(7,424)

7

844

36,019

167,724

Mandalay Bay

105,745

(8,524)

-

(10)

49,178

146,389

The Mirage 

85,255

(4,043)

-

117

19,140

100,469

Luxor

48,902

(3,394)

-

1,164

19,043

65,715

New York-New York 

53,445

(2,025)

(8)

183

15,541

67,136

Excalibur

51,062

(2,658)

-

258

8,789

57,451

Monte Carlo

6,735

(2,461)

1,049

9,990

23,925

39,238

Circus Circus Las Vegas

25,982

(3,130)

450

735

8,160

32,197

MGM Grand Detroit

78,544

-

-

-

11,473

90,017

Beau Rivage

29,598

-

-

5

11,989

41,592

Gold Strike Tunica

23,396

-

-

(22)

4,613

27,987

Borgata

118,977

-

1,277

1,220

38,868

160,342

National Harbor

28,599

-

227

-

40,294

69,120

  Domestic resorts

997,280

(40,629)

3,002

14,607

331,177

1,305,437

MGM China

116,229

-

23,158

332

119,583

259,302

Unconsolidated resorts (1)

80,286

-

-

-

-

80,286

Management and other operations

16,421

-

-

-

3,592

20,013

1,210,216

(40,629)

26,160

14,939

454,352

1,665,038

Stock compensation

(25,409)

-

-

-

-

(25,409)

Corporate 

(186,580)

-

9,999

-

40,171

(136,410)

$

998,227

$

(40,629)

$

36,159

$

14,939

$

494,523

$

1,503,219

Six Months Ended June 30, 2016

Operating

income (loss)

NV Energy exit

expense

Preopening and

start-up

expenses

Property

transactions, 

net

Depreciation 

and

amortization

Adjusted 

EBITDA

Bellagio

$

189,253

$

-

$

-

$

61

$

44,875

$

234,189

MGM Grand Las Vegas

141,555

-

-

500

36,328

178,383

Mandalay Bay

75,484

-

29

1,158

44,654

121,325

The Mirage 

54,126

-

-

(413)

20,465

74,178

Luxor

31,046

-

1,444

373

18,582

51,445

New York-New York 

50,493

-

372

100

10,416

61,381

Excalibur

37,710

-

-

2,969

8,152

48,831

Monte Carlo

26,271

-

145

152

16,552

43,120

Circus Circus Las Vegas

18,288

-

-

130

8,047

26,465

MGM Grand Detroit

71,846

-

-

-

11,986

83,832

Beau Rivage

37,650

-

-

(62)

13,247

50,835

Gold Strike Tunica

21,104

-

-

93

4,833

26,030

  Domestic resorts

754,826

-

1,990

5,061

238,137

1,000,014

MGM China

98,905

-

12,448

1,271

120,695

233,319

Unconsolidated resorts (1)

459,924

-

3,087

-

-

463,011

Management and other operations

3,585

-

1,150

-

3,752

8,487

1,317,240

-

18,675

6,332

362,584

1,704,831

Stock compensation

(20,309)

-

-

-

-

(20,309)

Corporate 

(211,922)

-

28,109

(347)

44,154

(140,006)

$

1,085,009

$

-

$

46,784

$

5,985

$

406,738

$

1,544,516

 

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

 

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,

2017

2016

2017

2016

Net income attributable to MGM Resorts International

$

210,611

$

474,353

$

417,458

$

541,152

  Plus: Net income attributable to noncontrolling interests

31,009

40,145

77,171

64,544

Net income

241,620

514,498

494,629

605,696

  Provision for income taxes

74,061

8,480

136,436

29,790

Income before income taxes

315,681

522,978

631,065

635,486

Non-operating (income) expense:

  Interest expense, net of amounts capitalized

174,058

180,352

348,117

365,021

  Other, net

11,307

65,725

19,045

84,502

185,365

246,077

367,162

449,523

Operating income

501,046

769,055

998,227

1,085,009

  NV Energy exit expense

(40,629)

-

(40,629)

-

  Preopening and start-up expenses

21,093

24,824

36,159

46,784

  Property transactions, net

13,243

854

14,939

5,985

  Depreciation and amortization

244,754

206,899

494,523

406,738

Adjusted EBITDA

$

739,507

$

1,001,632

$

1,503,219

$

1,544,516

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Domestic resorts Adjusted Property EBITDA

$

657,662

$

515,083

$

1,305,437

$

1,000,014

  Adjusted Property EBITDA related to Borgata

(101,419)

-

(160,342)

-

  Adjusted Property EBITDA related to National Harbor 

(36,980)

-

(69,120)

-

Domestic resorts same-store Adjusted Property EBITDA

$

519,263

$

515,083

$

1,075,975

$

1,000,014

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Bellagio

   Occupancy %

94.3%

94.8%

93.7%

93.2%

   Average daily rate (ADR)

$281

$275

$287

$278

   Revenue per available room (REVPAR)

$265

$261

$269

$259

MGM Grand Las Vegas

   Occupancy %

93.9%

94.8%

92.6%

92.8%

   ADR

$188

$184

$195

$185

   REVPAR

$177

$175

$180

$172

Mandalay Bay 

   Occupancy %

93.9%

94.1%

92.5%

92.3%

   ADR

$212

$209

$225

$216

   REVPAR

$199

$197

$208

$199

The Mirage

   Occupancy %

96.7%

96.9%

94.3%

94.9%

   ADR

$173

$171

$183

$176

   REVPAR

$168

$166

$173

$167

Luxor 

   Occupancy %

96.1%

97.6%

94.7%

95.9%

   ADR

$114

$110

$120

$110

   REVPAR

$110

$107

$114

$106

New York-New York

   Occupancy %

97.1%

98.7%

96.2%

97.8%

   ADR

$143

$134

$149

$139

   REVPAR

$138

$132

$143

$136

Excalibur 

   Occupancy %

95.5%

96.9%

93.0%

94.3%

   ADR

$97

$94

$103

$95

   REVPAR

$93

$91

$96

$90

Monte Carlo 

   Occupancy %

94.4%

98.7%

95.0%

97.3%

   ADR

$119

$122

$126

$124

   REVPAR

$112

$120

$120

$121

Circus Circus Las Vegas

   Occupancy %

85.7%

84.8%

83.1%

81.8%

   ADR

$79

$76

$85

$77

   REVPAR

$68

$64

$70

$63

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Aria

$

267,074

$

240,800

$

541,957

$

495,525

Vdara

30,955

29,846

63,211

59,634

Mandarin Oriental

16,135

16,191

34,588

33,219

 Resort operations

314,164

286,837

639,756

588,378

Other

-

2,149

-

2,149

$

314,164

$

288,986

$

639,756

$

590,527

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Net income

$

37,845

$

397,042

$

82,282

$

337,316

  Less: Income from discontinued operations

-

(411,592)

-

(400,035)

Income (loss) from continuing operations

37,845

(14,550)

82,282

(62,719)

Non-operating (income) expense:

  Interest expense, net of amounts capitalized

15,066

14,560

27,826

32,004

  Other, net

4,323

(429)

3,705

3,153

19,389

14,131

31,531

35,157

Operating income (loss)

57,234

(419)

113,813

(27,562)

  NV Energy exit expense 

(8,250)

-

(8,250)

-

  Property transactions, net

636

(574)

226

(2,012)

  Depreciation and amortization

54,882

78,100

110,017

197,696

Adjusted EBITDA

$

104,502

$

77,107

$

215,806

$

168,122

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2017

Operating income

(loss)

NV Energy exit

expense

Property

transactions, net

Depreciation

and amortization

Adjusted EBITDA

Aria

$

56,903

$

(8,250)

$

636

$

44,921

$

94,210

Vdara

3,218

-

-

6,845

10,063

Mandarin Oriental

(1,713)

-

-

3,116

1,403

 Resort operations

58,408

(8,250)

636

54,882

105,676

Other

(1,174)

-

-

-

(1,174)

$

57,234

$

(8,250)

$

636

$

54,882

$

104,502

Three Months Ended June 30, 2016

Operating income

(loss)

NV Energy exit

expense

Property

transactions, net

Depreciation

and amortization

Adjusted EBITDA

Aria

$

769

$

-

$

(581)

$

68,028

$

68,216

Vdara

1,197

-

7

6,972

8,176

Mandarin Oriental

(1,748)

-

-

3,100

1,352

 Resort operations

218

-

(574)

78,100

77,744

Other

(637)

-

-

-

(637)

$

(419)

$

-

$

(574)

$

78,100

$

77,107

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2017

Operating

income (loss)

NV Energy exit

expense

Property

transactions, net

Depreciation and

amortization

Adjusted EBITDA

Aria

$

111,017

$

(8,250)

$

225

$

90,040

$

193,032

Vdara

7,112

-

1

13,773

20,886

Mandarin Oriental

(2,105)

-

-

6,204

4,099

 Resort operations

116,024

(8,250)

226

110,017

218,017

Other

(2,211)

-

-

-

(2,211)

$

113,813

$

(8,250)

$

226

$

110,017

$

215,806

Six Months Ended June 30, 2016

Operating

income (loss)

NV Energy exit

expense

Property

transactions, net

Depreciation and

amortization

Adjusted EBITDA

Aria

$

(27,559)

$

-

$

(472)

$

177,589

$

149,558

Vdara

3,460

-

(329)

13,908

17,039

Mandarin Oriental

(2,984)

-

-

6,199

3,215

 Resort operations

(27,083)

-

(801)

197,696

169,812

Other

(479)

-

(1,211)

-

(1,690)

$

(27,562)

$

-

$

(2,012)

$

197,696

$

168,122

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Aria

   Occupancy %

94.3%

93.8%

92.9%

92.1%

   ADR

$250

$243

$262

$249

   REVPAR

$236

$228

$243

$229

Vdara

   Occupancy %

90.6%

93.0%

90.3%

91.3%

   ADR

$207

$201

$216

$205

   REVPAR

$188

$187

$195

$187



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