UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): August 5, 2014

 

 

MGM Resorts International

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-10362   88-0215232

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

3600 Las Vegas Boulevard South, Las Vegas, Nevada 89109

(Address of principal executive offices – Zip Code)

(702) 693-7120

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

This current report on Form 8-K is being furnished to disclose the press release issued by the Registrant on August 5, 2014. The purpose of the press release, furnished as Exhibit 99.1, was to announce the Registrant’s results of operations for the quarter ended June 30, 2014. The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

 

  (a) Not applicable.

 

  (b) Not applicable.

 

  (c) Not applicable.

 

  (d) Exhibits:

 

  99.1 Press release of the Registrant dated August 5, 2014, announcing financial results for the quarter ended June 30, 2014.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    MGM Resorts International
Date: August 5, 2014     By:  

/s/ Robert C. Selwood

     

Robert C. Selwood

Executive Vice President and Chief Accounting Officer


EX-99.1

Exhibit 99.1

 

LOGO

MGM RESORTS INTERNATIONAL REPORTS SECOND QUARTER FINANCIAL RESULTS

Consolidated Adjusted EBITDA Increased 8%, Led By 10% Growth In Wholly Owned Domestic Resorts

MGM China Declares $136 Million Dividend

Las Vegas, Nevada, August 5, 2014 — MGM Resorts International (NYSE: MGM) today reported financial results for the quarter ended June 30, 2014. Diluted earnings per share for the second quarter of 2014 was $0.21 compared to diluted loss per share of $0.19 in the prior year second quarter.

“I am pleased to report another solid quarter of growth at MGM Resorts,” said Jim Murren, Chairman and CEO. “Our domestic business was very strong with 12% EBITDA growth in Las Vegas driven by strong performance in both our room and casino segments. CityCenter resort operations continue to improve while in Macau we grew cash flow and margins due to a higher contribution of revenues from our main floor business. These results clearly reflect the success of our investments and strategies in our existing properties, while we are building MGM Cotai and beginning construction on MGM National Harbor.”

Key results for the second quarter of 2014 include the following:

 

   

Consolidated net revenue was $2.6 billion, a 4% increase over the prior year second quarter;

 

   

Casino revenue at the Company’s wholly owned domestic resorts increased 6% compared to the prior year quarter;

 

   

Rooms revenue at wholly owned domestic resorts increased 6% with a 6% increase in REVPAR(1) at the Company’s Las Vegas Strip resorts compared to the prior year quarter;

 

   

Adjusted Property EBITDA(2) was $643 million, an 8% increase compared to the prior year quarter;

 

   

The Company’s wholly owned domestic resorts earned Adjusted Property EBITDA of $414 million, a 10% increase compared to the prior year quarter;

 

   

MGM China’s Adjusted EBITDA was $210 million, a 3% increase compared to the prior year quarter, including $14 million of branding fee expense in the current quarter; and

 

   

CityCenter earned Adjusted EBITDA related to resort operations of $81 million, a 20% increase over the prior year quarter.

Certain Items Affecting Second 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 June 30,

   2014     2013  

Preopening and start-up expenses

   $ (0.01   $ —     

Property transactions, net:

    

Investment in Grand Victoria impairment

     (0.04     (0.05

Corporate buildings impairment

     —          (0.06

Other property transactions, net

     (0.01     (0.01

IRS audit settlement

     0.06        —     

The current year second quarter and prior year second quarter results were affected by non-cash impairment charges of $29 million and $37 million, respectively, related to the Company’s joint venture investment in Grand Victoria. In addition, the Company recorded an impairment charge of $45 million in the prior year second quarter related to corporate buildings located on the land underlying the Company’s planned Las Vegas arena project, which were removed from service in 2014.

 

Page 1 of 12


The current year second quarter income tax provision was affected by a $31 million benefit resulting from the settlement of the Company’s 2005-2009 IRS audits during the quarter. In addition to the items in the table above, the current year second quarter income tax provision was favorably impacted by a net benefit recorded for foreign tax credits generated by MGM China, while the prior year second quarter income tax provision was unfavorably impacted by a valuation allowance provided on U.S. deferred tax assets.

Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts increased 6% compared to the prior year quarter due to an increase in both table games volume and hold percentage. Table games hold percentage in the second quarter of 2014 was 21.3% compared to 18.1% in the prior year quarter. Slots revenue decreased 1% compared to the prior year quarter.

Rooms revenue increased 6% with Las Vegas Strip REVPAR up 6%. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

 

Three months ended June 30,

   2014     2013  

Occupancy %

     96     95

Average Daily Rate (ADR)

   $ 141      $ 134   

Revenue per Available Room (REVPAR)

   $ 135      $ 127   

Food and beverage revenue increased 5% as a result of increased convention and banquet business and the opening of several new outlets. Operating income for the Company’s wholly owned domestic resorts increased 23% for the second quarter of 2014 compared to the prior year quarter due to a 7% increase in net revenues and improved operating margins.

MGM China

On August 5, 2014, MGM China’s Board of Directors announced a dividend of $136 million, which will be paid to shareholders of record as of August 25, 2014 and distributed on or about September 1, 2014. MGM Resorts International will receive $69 million, representing its 51% share of the dividend.

Key second quarter results for MGM China include the following:

 

   

MGM China earned net revenue of $828 million, a 1% decrease compared to the prior year quarter;

 

   

Main floor table games revenue increased 41% compared to the prior year quarter;

 

   

VIP table games revenue decreased 18% due to a decrease in VIP table games turnover of 10% compared to the prior year quarter and lower hold percentage of 2.7% in the current year quarter compared to 2.9% in the prior year quarter;

 

   

MGM China’s Adjusted EBITDA was $210 million, a 3% increase compared to the prior year quarter, including $14 million of branding fee expense in the current quarter;

 

   

MGM China’s Adjusted EBITDA margin increased by 90 basis points compared to the prior year quarter; and

 

   

Operating income was $134 million compared to $126 million in the prior year quarter.

 

Page 2 of 12


Income from Unconsolidated Affiliates

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

 

Three months ended June 30,

   2014     2013  
     (In thousands)  

CityCenter

   $ (1,055   $ 861   

Other

     6,923        5,821   
  

 

 

   

 

 

 
   $ 5,868      $ 6,682   
  

 

 

   

 

 

 

Results for CityCenter Holdings, LLC for the second quarter of 2014 include the following (see schedules accompanying this release for further detail on CityCenter’s second quarter results):

 

   

Net revenue from resort operations increased by 9% to $304 million compared to $280 million in the prior year quarter;

 

   

Adjusted EBITDA from resort operations was $81 million, an increase of 20% compared to the prior year quarter;

 

   

Aria’s table games hold percentage was 23.4% compared to 20.8% in the prior year quarter;

 

   

Aria’s occupancy percentage was 94% and its ADR was $217, resulting in REVPAR of $205, a 6% increase compared to the prior year quarter;

 

   

Vdara reported record REVPAR of $166, an increase of 10% compared to the prior year quarter;

 

   

Crystals reported Adjusted EBITDA of $11 million, an increase of 12% from the prior year quarter; and

 

   

Property transactions, net was $16 million compared to $10 million in the prior year quarter.

Financial Position

“Over the next year we expect free cash flow growth, dividends from MGM China and the anticipated conversion of $1.45 billion of outstanding convertible notes to dramatically improve our balance sheet,” said Dan D’Arrigo, Executive Vice President, CFO and Treasurer. “In July, we capitalized on CityCenter’s improved credit profile with under 5x leverage to reduce the annual interest rate on its senior credit facility by 75 basis points. We believe CityCenter is positioned to generate significant free cash flow going forward.”

The Company’s cash balance at June 30, 2014 was $1.4 billion, which included $658 million at MGM China. At June 30, 2014 the Company had $2.8 billion of borrowings outstanding under its $4.0 billion senior secured credit facility and $554 million outstanding under the $2.0 billion MGM China credit facility.

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 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 1985444. A replay of the call will be available through Wednesday, August 13, 2014. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10049632. The call will be archived at www.mgmresorts.com.

 

Page 3 of 12


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 and property transactions, net. “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 portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company also owns 51% of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, and 50% of CityCenter in Las Vegas, which features ARIA resort and casino. 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. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding our development projects, anticipated free cash flow growth, the receipt of dividends from MGM China and the conversion of the outstanding convertible notes. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

 

MGM RESORTS CONTACTS:   
Investment Community    News Media
SARAH ROGERS    CLARK DUMONT
Vice President Investor Relations    Senior Vice President of Corporate Communications
(702) 693-8654 or srogers@mgmresorts.com    (702) 891-1836 or cdumont@mgmresorts.com

 

Page 4 of 12


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

      Three Months Ended     Six Months Ended  
      June 30,
2014
    June 30,
2013
    June 30,
2014
    June 30,
2013
 

Revenues:

        

Casino

   $ 1,475,165      $ 1,443,157      $ 3,058,597      $ 2,844,577   

Rooms

     463,151        437,710        915,537        838,960   

Food and beverage

     412,723        394,247        796,115        754,129   

Entertainment

     138,735        121,001        272,512        234,855   

Retail

     50,811        52,748        95,427        97,455   

Other

     134,068        127,914        259,495        251,740   

Reimbursed costs

     95,745        92,741        190,720        182,977   
  

 

 

   

 

 

   

 

 

   

 

 

 
     2,770,398        2,669,518        5,588,403        5,204,693   

Less: Promotional allowances

     (189,365     (188,253     (376,972     (371,280
  

 

 

   

 

 

   

 

 

   

 

 

 
     2,581,033        2,481,265        5,211,431        4,833,413   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Casino

     916,817        916,807        1,907,651        1,792,053   

Rooms

     142,413        134,001        276,651        261,710   

Food and beverage

     241,124        225,696        461,182        430,436   

Entertainment

     104,761        89,940        203,698        173,665   

Retail

     26,055        27,865        49,531        53,831   

Other

     92,077        92,819        179,654        178,792   

Reimbursed costs

     95,745        92,741        190,720        182,977   

General and administrative

     327,484        314,324        646,730        618,225   

Corporate expense

     54,439        52,364        107,790        98,988   

Preopening and start-up expenses

     9,759        3,506        15,395        5,652   

Property transactions, net

     33,170        88,131        33,728        96,622   

Depreciation and amortization

     203,070        218,151        410,725        430,069   
  

 

 

   

 

 

   

 

 

   

 

 

 
     2,246,914        2,256,345        4,483,455        4,323,020   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from unconsolidated affiliates

     5,868        6,682        24,644        23,026   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     339,987        231,602        752,620        533,419   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating income (expense):

        

Interest expense, net of amounts capitalized

     (203,936     (214,500     (413,323     (439,947

Non-operating items from unconsolidated affiliates

     (14,578     (38,864     (28,301     (60,943

Other, net

     (309     (4,951     (1,743     (6,233
  

 

 

   

 

 

   

 

 

   

 

 

 
     (218,823     (258,315     (443,367     (507,123
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     121,164        (26,713     309,253        26,296   

Benefit (provision) for income taxes

     52,540        (3,865     56,059        (34,296
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     173,704        (30,578     365,312        (8,000

Less: Net income attributable to noncontrolling interests

     (68,160     (62,380     (151,608     (78,412
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to MGM Resorts International

   $ 105,544      $ (92,958   $ 213,704      $ (86,412
  

 

 

   

 

 

   

 

 

   

 

 

 

Per share of common stock:

        

Basic:

        

Net income (loss) attributable to MGM Resorts International

   $ 0.22      $ (0.19   $ 0.44      $ (0.18
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     490,786        489,484        490,692        489,388   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

        

Net income (loss) attributable to MGM Resorts International

   $ 0.21      $ (0.19   $ 0.42      $ (0.18
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     513,371        489,484        513,287        489,388   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 5 of 12


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

      June 30,
2014
     December 31,
2013
 
ASSETS   

Current assets:

     

Cash and cash equivalents

   $ 1,365,137       $ 1,803,669   

Accounts receivable, net

     473,922         488,217   

Inventories

     102,524         107,907   

Deferred income taxes, net

     —           80,989   

Prepaid expenses and other

     224,732         238,657   
  

 

 

    

 

 

 

Total current assets

     2,166,315         2,719,439   
  

 

 

    

 

 

 

Property and equipment, net

     14,113,722         14,055,212   

Other assets:

     

Investments in and advances to unconsolidated affiliates

     1,420,924         1,374,836   

Goodwill

     2,898,861         2,897,442   

Other intangible assets, net

     4,396,436         4,511,861   

Other long-term assets, net

     576,045         551,395   
  

 

 

    

 

 

 

Total other assets

     9,292,266         9,335,534   
  

 

 

    

 

 

 
   $ 25,572,303       $ 26,110,185   
  

 

 

    

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY   

Current liabilities:

     

Accounts payable

   $ 253,475       $ 241,192   

Income taxes payable

     32,817         14,813   

Current portion of long-term debt

     317,194         —     

Deferred income taxes, net

     1,522         —     

Accrued interest on long-term debt

     191,141         188,522   

Other accrued liabilities

     1,764,167         1,770,801   
  

 

 

    

 

 

 

Total current liabilities

     2,560,316         2,215,328   
  

 

 

    

 

 

 

Deferred income taxes

     2,356,998         2,430,414   

Long-term debt

     12,606,520         13,447,230   

Other long-term obligations

     106,941         141,590   

Stockholders’ equity:

     

Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 490,712,807 and 490,360,628 shares

     4,907         4,904   

Capital in excess of par value

     4,166,365         4,156,680   

Retained earnings

     270,796         57,092   

Accumulated other comprehensive income

     15,235         12,503   
  

 

 

    

 

 

 

Total MGM Resorts International stockholders’ equity

     4,457,303         4,231,179   

Noncontrolling interests

     3,484,225         3,644,444   
  

 

 

    

 

 

 

Total stockholders’ equity

     7,941,528         7,875,623   
  

 

 

    

 

 

 
   $ 25,572,303       $ 26,110,185   
  

 

 

    

 

 

 

 

Page 6 of 12


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

     Three Months Ended      Six Months Ended  
     June 30,
2014
     June 30,
2013
     June 30,
2014
     June 30,
2013
 

Bellagio

   $ 332,213       $ 303,111       $ 652,069       $ 603,831   

MGM Grand Las Vegas

     271,675         255,426         533,339         514,316   

Mandalay Bay

     233,506         205,306         452,890         380,819   

The Mirage

     146,670         142,383         294,918         286,936   

Luxor

     91,067         83,383         174,760         161,172   

New York-New York

     71,865         69,070         144,833         138,338   

Excalibur

     72,125         69,967         139,698         131,776   

Monte Carlo

     72,332         68,891         140,943         135,391   

Circus Circus Las Vegas

     53,942         51,270         102,667         97,183   

MGM Grand Detroit

     136,350         132,593         269,498         273,461   

Beau Rivage

     87,588         85,959         170,014         166,869   

Gold Strike Tunica

     39,500         36,400         76,419         73,442   

Other resort operations

     30,437         32,237         57,456         61,650   
  

 

 

    

 

 

    

 

 

    

 

 

 

Wholly owned domestic resorts

     1,639,270         1,535,996         3,209,504         3,025,184   
  

 

 

    

 

 

    

 

 

    

 

 

 

MGM China

     827,928         835,149         1,769,376         1,582,706   

Management and other operations

     113,835         110,120         232,551         225,523   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,581,033       $ 2,481,265       $ 5,211,431       $ 4,833,413   
  

 

 

    

 

 

    

 

 

    

 

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

 

     Three Months Ended      Six Months Ended  
     June 30,
2014
    June 30,
2013
     June 30,
2014
    June 30,
2013
 

Bellagio

   $ 115,619      $ 99,522       $ 220,768      $ 189,101   

MGM Grand Las Vegas

     54,371        49,635         116,604        111,640   

Mandalay Bay

     53,003        49,358         109,003        88,772   

The Mirage

     28,910        24,528         64,329        54,689   

Luxor

     21,322        18,288         39,300        33,862   

New York-New York

     24,478        23,672         50,105        47,072   

Excalibur

     20,706        19,771         39,596        34,880   

Monte Carlo

     19,999        19,883         39,894        37,369   

Circus Circus Las Vegas

     7,213        5,296         12,522        9,853   

MGM Grand Detroit

     39,653        38,662         73,019        78,315   

Beau Rivage

     18,489        16,466         33,130        30,339   

Gold Strike Tunica

     10,185        8,518         19,752        18,505   

Other resort operations

     450        2,004         (778     2,243   
  

 

 

   

 

 

    

 

 

   

 

 

 

Wholly owned domestic resorts

     414,398        375,603         817,244        736,640   
  

 

 

   

 

 

    

 

 

   

 

 

 

MGM China

     210,488        204,815         451,213        385,270   

CityCenter (50%)(1)

     (1,055     861         12,991        12,556   

Other unconsolidated resorts(1)

     6,923        5,821         11,653        10,470   

Management and other operations

     12,102        9,060         31,954        24,821   
  

 

 

   

 

 

    

 

 

   

 

 

 
   $ 642,856      $ 596,160       $ 1,325,055      $ 1,169,757   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

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

 

Page 7 of 12


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, 2014

 

      Operating
income
(loss)
    Preopening
and
start-up
expenses
    Property
transactions,
net
    Depreciation
and
amortization
     Adjusted
EBITDA
 

Bellagio

   $ 94,027      $ —        $ 594      $ 20,998       $ 115,619   

MGM Grand Las Vegas

     34,429        —          207        19,735         54,371   

Mandalay Bay

     33,524        331        241        18,907         53,003   

The Mirage

     14,362        22        1,801        12,725         28,910   

Luxor

     11,734        (3     1        9,590         21,322   

New York-New York

     19,755        47        98        4,578         24,478   

Excalibur

     16,605        —          332        3,769         20,706   

Monte Carlo

     14,091        464        154        5,290         19,999   

Circus Circus Las Vegas

     3,308        36        3        3,866         7,213   

MGM Grand Detroit

     33,804        —          78        5,771         39,653   

Beau Rivage

     11,476        —          559        6,454         18,489   

Gold Strike Tunica

     6,651        —          265        3,269         10,185   

Other resort operations

     (86     —          (8     544         450   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     293,680        897        4,325        115,496         414,398   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

MGM China

     134,112        2,917        48        73,411         210,488   

CityCenter (50%)

     (1,055     —          —          —           (1,055

Other unconsolidated resorts

     6,822        101        —          —           6,923   

Management and other operations

     10,054        —          1        2,047         12,102   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
     443,613        3,915        4,374        190,954         642,856   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Stock compensation

     (6,393     —          —          —           (6,393

Corporate

     (97,233     5,844        28,796        12,116         (50,477
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
   $ 339,987      $ 9,759      $ 33,170      $ 203,070       $ 585,986   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

Three Months Ended June 30, 2013

 

 
      Operating
income
(loss)
    Preopening
and
start-up
expenses
    Property
transactions,
net
    Depreciation
and
amortization
     Adjusted
EBITDA
 

Bellagio

   $ 71,386      $ —        $ 337      $ 27,799       $ 99,522   

MGM Grand Las Vegas

     29,400        —          104        20,131         49,635   

Mandalay Bay

     23,414        1,078        1,854        23,012         49,358   

The Mirage

     11,714        —          141        12,673         24,528   

Luxor

     9,097        112        (252     9,331         18,288   

New York-New York

     17,958        —          499        5,215         23,672   

Excalibur

     16,382        —          13        3,376         19,771   

Monte Carlo

     12,183        58        2,964        4,678         19,883   

Circus Circus Las Vegas

     801        —          10        4,485         5,296   

MGM Grand Detroit

     32,709        —          —          5,953         38,662   

Beau Rivage

     8,732        —          7        7,727         16,466   

Gold Strike Tunica

     3,966        —          1,187        3,365         8,518   

Other resort operations

     1,441        —          —          563         2,004   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     239,183        1,248        6,864        128,308         375,603   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

MGM China

     126,134        2,258        150        76,273         204,815   

CityCenter (50%)

     861        —          —          —           861   

Other unconsolidated resorts

     5,821        —          —          —           5,821   

Management and other operations

     6,111        —          (4     2,953         9,060   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
     378,110        3,506        7,010        207,534         596,160   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Stock compensation

     (6,246     —          —          —           (6,246

Corporate

     (140,262     —          81,121        10,617         (48,524
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
   $ 231,602      $ 3,506      $ 88,131      $ 218,151       $ 541,390   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

Page 8 of 12


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, 2014

 

      Operating
income
(loss)
    Preopening
and

start-up
expenses
     Property
transactions,
net
    Depreciation
and
amortization
     Adjusted
EBITDA
 

Bellagio

   $ 175,878      $ —         $ 573      $ 44,317       $ 220,768   
MGM Grand Las Vegas    75,361     197      199     40,847      116,604  

Mandalay Bay

     67,935        1,133         239        39,696         109,003   
The Mirage    36,954     22      1,948     25,405      64,329  

Luxor

     20,541        —           —          18,759         39,300   

New York-New York

     40,642        102         342        9,019         50,105   

Excalibur

     32,060        —           331        7,205         39,596   

Monte Carlo

     28,105        1,379         157        10,253         39,894   

Circus Circus Las Vegas

     4,845        36         (8     7,649         12,522   

MGM Grand Detroit

     61,458        —           78        11,483         73,019   

Beau Rivage

     19,642        —           559        12,929         33,130   

Gold Strike Tunica

     13,016        —           265        6,471         19,752   

Other resort operations

     (1,855     —           (8     1,085         (778
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     574,582        2,869         4,675        235,118         817,244   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

MGM China

     298,701        5,325         (56     147,243         451,213   

CityCenter (50%)

     12,991        —           —          —           12,991   

Other unconsolidated resorts

     11,533        120         —          —           11,653   

Management and other operations

     27,015        —           1        4,938         31,954   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
     924,822        8,314         4,620        387,299         1,325,055   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Stock compensation

     (13,092     —           —          —           (13,092

Corporate

     (159,110     7,081         29,108        23,426         (99,495
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ 752,620      $ 15,395       $ 33,728      $ 410,725       $ 1,212,468   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

Six Months Ended June 30, 2013

 

 
      Operating
income
(loss)
    Preopening
and

start-up
expenses
     Property
transactions,
net
    Depreciation
and
amortization
     Adjusted
EBITDA
 

Bellagio

   $ 137,778      $ —         $ 341      $ 50,982       $ 189,101   

MGM Grand Las Vegas

     70,372        —           770        40,498         111,640   

Mandalay Bay

     44,236        474         2,436        41,626         88,772   

The Mirage

     25,264        —           4,295        25,130         54,689   

Luxor

     12,872        112         2,927        17,951         33,862   

New York-New York

     35,695        —           530        10,847         47,072   

Excalibur

     27,544        —           13        7,323         34,880   

Monte Carlo

     25,041        58         2,952        9,318         37,369   

Circus Circus Las Vegas

     412        —           10        9,431         9,853   

MGM Grand Detroit

     67,080        —           —          11,235         78,315   

Beau Rivage

     15,159        —           (291     15,471         30,339   

Gold Strike Tunica

     10,786        —           1,174        6,545         18,505   

Other resort operations

     1,113        —           (1     1,131         2,243   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Wholly owned domestic resorts

     473,352        644         15,156        247,488         736,640   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

MGM China

     225,251        4,632         345        155,042         385,270   

CityCenter (50%)

     12,180        376         —          —           12,556   

Other unconsolidated resorts

     10,470        —           —          —           10,470   

Management and other operations

     18,894        —           —          5,927         24,821   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
     740,147        5,652         15,501        408,457         1,169,757   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Stock compensation

     (13,189     —           —          —           (13,189

Corporate

     (193,539     —           81,121        21,612         (90,806
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $ 533,419      $ 5,652       $ 96,622      $ 430,069       $ 1,065,762   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

Page 9 of 12


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)

 

      Three Months Ended     Six Months Ended  
      June 30,
2014
    June 30,
2013
    June 30,
2014
    June 30,
2013
 

Adjusted EBITDA

   $ 585,986      $ 541,390      $ 1,212,468      $ 1,065,762   

Preopening and start-up expenses

     (9,759     (3,506     (15,395     (5,652

Property transactions, net

     (33,170     (88,131     (33,728     (96,622

Depreciation and amortization

     (203,070     (218,151     (410,725     (430,069
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     339,987        231,602        752,620        533,419   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating income (expense):

        

Interest expense, net of amounts capitalized

     (203,936     (214,500     (413,323     (439,947

Other, net

     (14,887     (43,815     (30,044     (67,176
  

 

 

   

 

 

   

 

 

   

 

 

 
     (218,823     (258,315     (443,367     (507,123
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     121,164        (26,713     309,253        26,296   

Benefit (provision) for income taxes

     52,540        (3,865     56,059        (34,296
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     173,704        (30,578     365,312        (8,000

Less: Net income attributable to noncontrolling interests

     (68,160     (62,380     (151,608     (78,412
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to MGM Resorts International

   $ 105,544      $ (92,958   $ 213,704      $ (86,412
  

 

 

   

 

 

   

 

 

   

 

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)

 

      Three Months Ended     Six Months Ended  
      June 30,
2014
    June 30,
2013
    June 30,
2014
    June 30,
2013
 

Bellagio

        

Occupancy %

     95.8     95.9     94.0     94.3

Average daily rate (ADR)

   $ 259      $ 247      $ 261      $ 244   

Revenue per available room (REVPAR)

   $ 248      $ 237      $ 245      $ 230   

MGM Grand Las Vegas

        

Occupancy %

     98.1     96.4     96.7     94.7

ADR

   $ 150      $ 143      $ 155      $ 144   

REVPAR

   $ 147      $ 138      $ 150      $ 137   

Mandalay Bay

        

Occupancy %

     94.9     94.2     93.6     91.5

ADR

   $ 200      $ 192      $ 201      $ 187   

REVPAR

   $ 190      $ 181      $ 188      $ 171   

The Mirage

        

Occupancy %

     96.9     96.3     95.8     95.7

ADR

   $ 162      $ 152      $ 166      $ 151   

REVPAR

   $ 157      $ 147      $ 159      $ 144   

Luxor

        

Occupancy %

     97.2     95.2     95.3     92.9

ADR

   $ 97      $ 90      $ 99      $ 88   

REVPAR

   $ 94      $ 86      $ 94      $ 82   

New York-New York

        

Occupancy %

     99.2     98.3     98.6     97.8

ADR

   $ 123      $ 115      $ 125      $ 113   

REVPAR

   $ 122      $ 113      $ 123      $ 111   

Excalibur

        

Occupancy %

     98.0     95.5     94.6     90.6

ADR

   $ 80      $ 74      $ 81      $ 73   

REVPAR

   $ 79      $ 71      $ 77      $ 66   

Monte Carlo

        

Occupancy %

     99.3     98.0     97.7     96.9

ADR

   $ 114      $ 107      $ 115      $ 105   

REVPAR

   $ 113      $ 105      $ 112      $ 102   

Circus Circus Las Vegas

        

Occupancy %

     84.4     85.5     79.6     79.5

ADR

   $ 60      $ 55      $ 61      $ 55   

REVPAR

   $ 50      $ 47      $ 49      $ 43   

 

Page 10 of 12


CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

      Three Months Ended      Six Months Ended  
      June 30,
2014
     June 30,
2013
     June 30,
2014
     June 30,
2013
 

Aria

   $ 245,144       $ 226,102       $ 498,833       $ 484,612   

Vdara

     26,867         24,355         53,117         46,414   

Crystals

     16,649         15,494         33,401         29,451   

Mandarin Oriental

     15,411         13,774         31,852         27,494   
  

 

 

    

 

 

    

 

 

    

 

 

 

Resort operations

     304,071         279,725         617,203         587,971   

Residential operations

     15,804         53,449         39,089         60,345   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 319,875       $ 333,174       $ 656,292       $ 648,316   
  

 

 

    

 

 

    

 

 

    

 

 

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)

 

      Three Months Ended     Six Months Ended  
      June 30,
2014
    June 30,
2013
    June 30,
2014
    June 30,
2013
 

Adjusted EBITDA

   $ 77,709      $ 72,666      $ 172,767      $ 159,653   

Preopening and start-up expenses

     —          —          —          (752

Property transactions, net

     (16,121     (10,113     (18,696     (10,113

Depreciation and amortization

     (86,423     (86,327     (173,943     (172,730
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (24,835     (23,774     (19,872     (23,942
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating income (expense):

        

Interest expense - sponsor notes

     —          (25,935     —          (50,883

Interest expense - other

     (22,518     (42,984     (45,370     (86,454

Other, net

     (4,435     (33,073     (6,748     (32,330
  

 

 

   

 

 

   

 

 

   

 

 

 
     (26,953     (101,992     (52,118     (169,667
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (51,788   $ (125,766   $ (71,990   $ (193,609
  

 

 

   

 

 

   

 

 

   

 

 

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2014

 

      Operating
income
(loss)
    Preopening
and
start-up
expenses
     Property
transactions,
net
     Depreciation
and
amortization
     Adjusted
EBITDA
 

Aria

   $ (6,274   $ —         $ 3,016       $ 64,472       $ 61,214   

Vdara

     (3,283     —           128         10,482         7,327   

Crystals

     4,430        —           126         6,646         11,202   

Mandarin Oriental

     (3,578     —           44         4,710         1,176   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Resort operations

     (8,705     —           3,314         86,310         80,919   

Residential operations

     2,084        —           —           113         2,197   

Development and administration

     (18,214     —           12,807         —           (5,407
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
   $ (24,835   $ —         $ 16,121       $ 86,423       $ 77,709   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Three Months Ended June 30, 2013

 

        
      Operating
income
(loss)
    Preopening
and
start-up
expenses
     Property
transactions,
net
     Depreciation
and
amortization
     Adjusted
EBITDA
 

Aria

   $ (14,713   $ —         $ 278       $ 64,018       $ 49,583   

Vdara

     (3,894     —           —           10,394         6,500   

Crystals

     3,156        —           —           6,876         10,032   

Mandarin Oriental

     (3,601     —           —           4,676         1,075   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Resort operations

     (19,052     —           278         85,964         67,190   

Residential operations

     (410     —           9,835         355         9,780   

Development and administration

     (4,312     —           —           8         (4,304
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
   $ (23,774   $ —         $ 10,113       $ 86,327       $ 72,666   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

Page 11 of 12


CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2014

 

      Operating
income
(loss)
    Preopening
and
start-up
expenses
     Property
transactions,
net
     Depreciation
and
amortization
     Adjusted
EBITDA
 

Aria

   $ 1,282      $ —         $ 4,323       $ 130,101       $ 135,706   

Vdara

     (6,234     —           128         20,707         14,601   

Crystals

     8,663        —           205         13,388         22,256   

Mandarin Oriental

     (6,288     —           44         9,429         3,185   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Resort operations

     (2,577     —           4,700         173,625         175,748   

Residential operations

     4,691        —           1,114         318         6,123   

Development and administration

     (21,986     —           12,882         —           (9,104
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
   $ (19,872   $ —         $ 18,696       $ 173,943       $ 172,767   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Six Months Ended June 30, 2013

 

 
      Operating
income
(loss)
    Preopening
and
start-up
expenses
     Property
transactions,
net
     Depreciation
and
amortization
     Adjusted
EBITDA
 

Aria

   $ (1,614   $ 694       $ 278       $ 127,788       $ 127,146   

Vdara

     (9,190     —           —           21,209         12,019   

Crystals

     5,159        58         —           13,320         18,537   

Mandarin Oriental

     (7,346     —           —           9,686         2,340   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Resort operations

     (12,991     752         278         172,003         160,042   

Residential operations

     (1,454     —           9,835         711         9,092   

Development and administration

     (9,497     —           —           16         (9,481
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
   $ (23,942   $ 752       $ 10,113       $ 172,730       $ 159,653   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

 

      Three Months Ended     Six Months Ended  
      June 30,
2014
    June 30,
2013
    June 30,
2014
    June 30,
2013
 

Aria

        

Occupancy %

     94.4     91.7     93.2     90.3

ADR

   $ 217      $ 212      $ 223      $ 210   

REVPAR

   $ 205      $ 194      $ 208      $ 190   

Vdara

        

Occupancy %

     94.9     91.4     92.2     88.6

ADR

   $ 175      $ 165      $ 180      $ 162   

REVPAR

   $ 166      $ 150      $ 166      $ 144   

 

Page 12 of 12