Exhibit 99.1

                                                      

 

MGM RESORTS INTERNATIONAL REPORTS THIRD QUARTER

FINANCIAL AND OPERATING RESULTS

 

 

Las Vegas, Nevada, October 30, 2019 – MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter ended September 30, 2019.

 

Third Quarter 2019 Financial Highlights:

Consolidated Results

 

 

Consolidated net revenues increased 9% compared to the prior year quarter to $3.3 billion;

 

Consolidated operating income decreased 42% compared to the prior year quarter to $238 million. Excluding a non-cash impairment charge of $219 million in the current quarter related to Circus Circus Las Vegas and adjacent land, included within property transactions, net, consolidated operating income increased 11% compared to the prior year quarter;

 

Net loss attributable to MGM Resorts of $37 million, including the $219 million non-cash impairment charge discussed above, compared to net income attributable to MGM Resorts of $143 million in the prior year quarter;

 

Diluted loss per share of $0.08 in the current quarter compared to diluted earnings per share of $0.26 in the prior year quarter;

 

Adjusted diluted earnings per share (“Adjusted EPS”)(1) of $0.31 in the current quarter compared to Adjusted EPS of $0.23 in the prior year quarter; and

 

Consolidated Adjusted EBITDA(2) increased 14% to $814 million in the current quarter compared to $716 million in the prior year quarter.

 

“We performed well in the third quarter, which came in line with our expectations. Our consolidated net revenues increased by 9 percent and consolidated Adjusted EBITDA increased by 14 percent” said Jim Murren, Chairman and CEO of MGM Resorts. “Our Las Vegas Strip Resorts saw an increase in revenues by 4 percent with non-gaming revenues up 6 percent thanks to a robust performance in rooms and food and beverage. Gaming revenues at our Las Vegas Strip Resorts declined by 3 percent due to ongoing weakness in Far East baccarat volumes, offset by increases in slots and domestic table games play. Adjusted Property EBITDA at our Regional Properties increased by 27 percent with notable strength at MGM National Harbor and Borgata. We were very pleased with the ramp up of our Cotai property, which generated $80 million in Adjusted Property EBITDA during the quarter, despite some challenges in the market place.”

 

Mr. Murren continued, “We recently announced two significant transactions, which form part of our broader asset-light strategy and the shift in our business model away from a capital-intensive real estate business towards a developer, manager and operator of leading gaming, hospitality and entertainment properties. We entered into an agreement to sell Circus Circus Las Vegas for consideration of $825 million and entered into an agreement with Blackstone Real Estate Income Trust that values the real estate of Bellagio at $4.25 billion, representing a purchase price multiple of 17.3x rent. We expect that the agreements to sell Circus Circus Las Vegas and to monetize the Bellagio real estate assets will provide us with net after tax cash proceeds, including expected debt breakage costs, of $4.3 billion, a majority of which will be used to fortify our balance sheet and then return capital to shareholders. Following these transactions, we will still retain several highly valuable real estate assets including MGM Grand Las Vegas, MGM Springfield, our 50 percent stake in CityCenter and our 68 percent economic ownership in MGM Growth Properties LLC. I am excited about the prospects for our business as we enter 2020.  We expect the combination of a healthy Las Vegas market and successful implementation of MGM 2020 to drive EBITDA and free cash flow growth.  Simultaneously our asset light transition will generate significant proceeds from real estate monetization that can be used to strengthen our balance sheet, meaningfully reduce our shares outstanding, and invest in select growth initiatives.  Our increased profits spread across fewer shares outstanding will result in enhanced free cash flow per share and generate meaningful value for our shareholders.”

Page 1 of 14

 


 

Las Vegas Strip Resorts

 

Net revenues increased 4% compared to the prior year quarter to $1.5 billion;

 

Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) increased 4% compared to the prior year quarter to $1.5 billion;

 

Adjusted Property EBITDA of $441 million, a 5% increase compared to $420 million in the prior year quarter;

 

Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA(2) of $438 million a 6% increase compared to the prior year quarter; and

 

Adjusted Property EBITDA margin of 29.3%, a 41 basis point increase compared to the prior year quarter.

 

Regional Operations

 

Net revenues increased $158 million or 20% compared to the prior year quarter to $935 million, including $52 million in net revenues from Empire City Casino, which was acquired on January 29, 2019, $64 million in net revenues from MGM Northfield Park’s operations, which was acquired from MGP on April 1, 2019, and a full quarter of operations at MGM Springfield, which opened on August 24, 2018;

 

Adjusted Property EBITDA of $264 million, a 27% increase compared the prior year quarter; and

 

Adjusted Property EBITDA margin of 28.2% in the current quarter, a 152 basis point increase compared to the prior year quarter.

 

MGM China

 

Net revenues increased 22% compared to the prior year quarter to $738 million;

 

VIP Table Games Hold Adjusted MGM China Net Revenues(3) of $699 million, a 19% increase compared to the prior year quarter;

 

Adjusted Property EBITDA of $182 million, a 40% increase compared to the prior year quarter;

 

VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA(2) of $168 million, a 36% increase compared to the prior year quarter; and

 

Adjusted Property EBITDA margin of 24.7% , a 321 basis point increase compared to the prior year quarter.

 

 

"We remain focused on achieving our 2020 targets of $3.6 billion to $3.9 billion in consolidated Adjusted EBITDA and significant growth in free cash flow per share” said Corey Sanders, Chief Financial Officer and Treasurer of MGM Resorts. “The key drivers remain the benefits of our MGM 2020 plan, which is currently tracking ahead of expectations; healthy market conditions in Las Vegas and regional markets; and the ongoing ramp up of newly opened properties, especially MGM Cotai. We are also targeting consolidated net financial leverage of 3-4x and approximately 1x net domestic financial leverage (excluding MGP) by the end of 2020.”  

 

Adjusted Diluted Earnings Per Share

 

The following table reconciles diluted earnings per share (“EPS”) to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):

 

 

 

Three Months Ended September 30,

 

2019

 

 

 

 

2018

 

Diluted earnings (loss) per share

 

$

(0.08)

 

 

 

 

$

0.26

 

Preopening and start-up expenses

 

 

 

 

 

 

 

0.08

 

Property transactions, net

 

 

0.48

 

 

 

 

 

(0.08)

 

Non-operating expense:

 

 

 

 

 

 

 

 

 

 

Remeasurement loss on MGM China senior notes

 

 

0.01

 

 

 

 

 

 

Items from unconsolidated affiliates:

 

 

 

 

 

 

 

 

 

 

CityCenter property transactions, net

 

 

(0.01)

 

 

 

 

 

 

Gain on the sale of Mandarin Oriental Las Vegas

 

 

 

 

 

 

 

(0.02)

 

Change in fair value of CityCenter swaps

 

 

0.01

 

 

 

 

 

 

Income tax impact on net income adjustments (1)

 

 

(0.10)

 

 

 

 

 

(0.01)

 

Adjusted diluted earnings per share

 

$

0.31

 

 

 

 

$

0.23

 

 

(1)

The income tax impact includes current and deferred income tax expense based upon the nature of the adjustment and the jurisdiction in which it occurs.

Page 2 of 14

 

 


 

Las Vegas Strip Resorts

Casino revenue for the third quarter of 2019 decreased 3% compared to the prior year quarter at the Company’s Las Vegas Strip Resorts, due primarily to an 11% decrease in table games win driven by baccarat, partially offset by a 6% increase in slots win.

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

 

Three Months Ended September 30,

 

2019

 

2018

% change

 

 

(Dollars in millions)

 

Table Games Drop

 

$842

 

$897

(6)%

Table Games Win %

 

24.2%

 

25.4%

 

Slots Handle

 

$3,280

 

$3,143

4%

Slots Hold %

 

9.4%

 

9.3%

 

 

Rooms revenue increased 6% compared to the prior year quarter at the Company’s Las Vegas Strip Resorts due to a    3.6% increase in Las Vegas Strip Resorts REVPAR(4) compared to the prior year quarter, as well as a 2% increase in available rooms as a result of the completion of the rebranding and repositioning of Park MGM. Rooms revenue at Park MGM increased 49% compared to the prior year quarter.

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

 

Three Months Ended September 30,

 

2019

 

2018

%   change

Occupancy %

 

92%

 

93%

 

Average Daily Rate (ADR)

 

$164

 

$157

4.4%

Revenue per Available Room (REVPAR)

 

$152

 

$146

3.6%

 

Food and beverage revenue increased 9% at the Company’s Las Vegas Strip Resorts compared to the prior year quarter due primarily to the opening of new outlets at Park MGM and NoMad Las Vegas and an increase in catering and banquets revenue which benefited from the completion of the expansion of MGM Grand’s Conference Center in 2019.

 

 

Regional Operations

 

Casino revenue increased 26% compared to the prior year quarter at the Company’s Regional Operations, due primarily to the acquisition of Empire City Casino, the acquisition of MGM Northfield Park’s operations from MGP and a full quarter of operations at MGM Springfield.

 

The following table shows key gaming statistics for the Company’s Regional Operations:

 

Three Months Ended September 30,

 

2019

 

2018

% change

 

 

(Dollars in millions)

 

Table Games Drop

 

$1,122

 

$1,054

6%

Table Games Win %

 

19.6%

 

19.4%

 

Slots Handle

 

$6,666

 

$5,755

16%

Slots Hold %

 

9.4%

 

9.0%

 

 

 

 

 

 

Page 3 of 14

 

 


 

MGM China

 

Key third quarter results for MGM China Holdings Limited (“MGM China”) include:

 

 

Net revenues of $738 million, a 22% increase compared to the prior year quarter. The current quarter included $364 million of net revenues at MGM Cotai;

 

Main floor table games win increased 47% compared to the prior year quarter due to the addition of 25 new-to-market tables at MGM Cotai in 2019 and a 559 basis point increase in win percentage;

 

VIP table games win increased 5% compared to the prior year quarter due to the opening of VIP gaming areas at the end of the third quarter of 2018 at MGM Cotai and an increase in the VIP table games win percentage;

 

Adjusted Property EBITDA increased 40% to $182 million compared to $130 million in the prior year quarter. The current quarter included $13 million of license fee expense compared to $11 million in the prior year quarter; and

 

Adjusted Property EBITDA margin was 24.7% in the current quarter compared to 21.5% in the prior year quarter, increasing primarily as a result of the continued ramp up of operations at MGM Cotai.

 

The following table shows key gaming statistics for MGM China:

 

Three Months Ended September 30,

 

2019

 

2018

% change

 

 

(Dollars in millions)

 

VIP Table Games Turnover

 

$8,646

 

$9,419

(8)%

VIP Table Games Win %

 

3.7%

 

3.2%

 

Main Floor Table Games Drop

 

$2,117

 

$1,882

13%

Main Floor Table Games Win %

 

23.6%

 

18.1%

 

MGM China paid the previously announced interim dividend of $46 million in August 2019, of which MGM Resorts received $25 million, representing its 56% share of the dividend.

Corporate Expense

Corporate expense, including normal share-based compensation for corporate employees, was $109 million in the third quarter of 2019, an increase of $10 million compared to the prior year quarter. The current quarter included $7 million in costs incurred to implement the MGM 2020 Plan, $6 million related to the work of the Real Estate Committee of the Company’s Board of Directors and $3 million in finance modernization initiative costs.

Unconsolidated Affiliates

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

Three Months Ended September 30,

 

2019

 

 

2018

 

 

 

(In thousands)

 

CityCenter

 

$

39,317

 

 

$

33,232

 

Other

 

 

(3,103

)

 

 

2,263

 

 

 

$

36,214

 

 

$

35,495

 

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

 

 

Net revenues were $320 million, a 9% increase compared to the prior year quarter, due to a 24% increase in casino revenues and an increase in rooms revenues;

 

Casino revenues at Aria increased 24% compared to the prior year quarter, due primarily to a 13% increase in table games win resulting from a 405 basis point increase in table games hold percentage and a 13% increase in slots win;

 

REVPAR at Aria increased 4% compared to the prior year quarter to $237;

 

REVPAR at Vdara increased 4% compared to the prior year quarter to $192; and

 

Adjusted EBITDA from resort operations was $110 million, a 30% increase compared to the prior year quarter.

Page 4 of 14

 

 


 

MGM Growth Properties

During the third quarter of 2019, the Company made rent payments to MGM Growth Properties Operating Partnership LP (“MGP Operating Partnership”) in the amount of $237 million and received distributions of $93 million from the MGP Operating Partnership. In September 2019, the Board of Directors of MGM Growth Properties LLC (“MGP”) approved a quarterly dividend of $0.47 per Class A share (an increase of $0.01 per share based on a $1.88 dividend on an annualized basis) totaling $45 million, which was paid on October 15, 2019 to holders of record on September 30, 2019. The Company concurrently received a $94 million distribution attributable to its ownership of MGP Operating Partnership units.

MGM Resorts Dividend

On October 30, 2019, the Company’s Board of Directors approved a quarterly dividend of $0.13 per share totaling approximately $67 million. The dividend will be payable on December 16, 2019 to holders of record on December 10, 2019.

During the current quarter, MGM Resorts repurchased approximately 13 million shares of its common stock at an average price of $28.33 per share for an aggregate amount of $357 million. Approximately $750 million remained available under the $2.0 billion share repurchase program as of September 30, 2019. All shares repurchased under the Company’s program have been retired.

Financial Position

 

The Company’s cash balance at September 30, 2019 was $1.2 billion, which included $490 million at MGM China and $154 million at the MGP Operating Partnership. At September 30, 2019, the Company had $15.1 billion of principal amount of indebtedness outstanding, including $1.3 billion outstanding under its $2.25 billion senior secured credit facility, $2.3 billion outstanding under the $3.6 billion MGP Operating Partnership senior secured credit facility and $776 million outstanding under the $1.25 billion MGM China revolving credit facility.

 

In August 2019, MGM China entered into a new $1.25 billion senior unsecured revolving credit facility and used the proceeds to fully repay the borrowings outstanding under its secured credit facility. The secured credit facility was subsequently extinguished. The new revolving credit facility matures in May 2024 and bears interest at a fluctuating rate per annum based on HIBOR plus 1.625% to 2.75%, as determined by MGM China’s leverage ratio.

 

 

Conference Call Details

MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today which will include a brief discussion of the results followed by a question and answer period. The call will be accessible via the Internet through http://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 2753290. A replay of the call will be available through Wednesday, November 6, 2019.  The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088.  The replay access code is 10135301. The call will be archived at http://investors.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at http://investors.mgmresorts.com for reference during the earnings call.

1.“Adjusted EPS” is diluted earnings per share adjusted to exclude preopening and start-up expenses, property transactions, net, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), gain or loss on retirement of long-term debt, currency translation gain or loss related to MGM China’s U.S. dollar-denominated debt and the Company’s share of mark-to-market adjustments related to CityCenter’s interest rate swaps recorded within non-operating items from unconsolidated affiliates.

Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing period-to-period comparisons of the results of the Company’s continuing operations to assist investors in reviewing the Company’s operating performance over time. Management believes that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company’s earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary

Page 5 of 14

 

 


 

significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, such as restructuring costs and items further discussed in footnote 2 below, may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company’s performance. In addition, Adjusted EPS may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly-titled non-GAAP financial measures of other companies. A reconciliation of Adjusted EPS to diluted earnings per share can be found under “Adjusted Diluted Earnings Per Share included in the earnings release.

2.“Adjusted EBITDA” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), and property transactions, net. Management utilizes “Adjusted Property EBITDA” as the primary profit measures for its reportable segments and underlying operating segments. Adjusted Property EBITDA is a measure defined as Adjusted EBITDA before corporate expense and stock compensation expense, which are not allocated to each operating segment, and before rent expense related to the master lease with MGM Growth Properties that eliminates in consolidation. “Adjusted Property EBITDA margin” is Adjusted Property EBITDA divided by related segment net revenues.

“Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA” and “VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA” are supplemental non-GAAP financial measures, that, in addition to the reasons described above for the presentation of Adjusted  Property EBITDA, are presented to adjust for the impact of certain variances in table games and VIP table games’ win percentages compared to the mid-point of the expected ranges. Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA is calculated by applying a win percentage of 30.0% for Baccarat and 21.0% for non-Baccarat games to the respective table games drops for the quarter, which represents the mid-point of the expected ranges of 25.0% to 35.0% for Baccarat and 19.0% to 23.0% for non-Baccarat at the Las Vegas Strip Resorts properties. VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA is based on applying a VIP Rolling Chip win percentage of 2.95% to the VIP Rolling Chip volume, which represents the mid-point of the expected normal range of 2.6% to 3.3% for MGM China. Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA are also adjusted for the gaming taxes, VIP commissions, bad debt expense, discounts and other incentives that would have been incurred or avoided when applying the win percentages noted above to the respective gaming volumes.

Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. Management believes that while items excluded from Adjusted EBITDA, Adjusted Property EBITDA, and Adjusted Property EBITDA margin may be recurring in nature and should not be disregarded in evaluation of the Company’s earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For 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.

In addition, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA are presented as a supplemental disclosure to reported GAAP measures and to Adjusted Property EBITDA because management believes these measures present a consistent measure for evaluating the Company’s operating performance from period to period.

Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA should not be construed as alternatives to operating income or net income, as indicators of the Company’s 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. The Company has 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, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA information may calculate Adjusted EBITDA,

Page 6 of 14

 

 


 

Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA in a different manner and such differences may be material.

A reconciliation of GAAP net income (loss) to Adjusted EBITDA is included in the financial schedules in this release. This press release also includes references to target financial measures and goals (including targeted Adjusted EBITDA and targeted net leverage), which are not presented as forecasts or projections of expected future performance.

3.“Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues” and “VIP Table Games Hold Adjusted MGM China Net Revenues” are additional supplemental non-GAAP financial measures that are presented to adjust Las Vegas Strip Resorts net revenues and MGM China net revenues for the impact of certain variances in table games and VIP table games’ win percentages compared to the mid-point of the expected ranges, as described in footnote 2 above. Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues are also adjusted for the VIP commissions, discounts and other incentives that would have been incurred or avoided when applying the win percentages noted in footnote 2 above to the respective gaming volumes. Management believes Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues present consistent measures in providing period-to-period comparisons and are useful measures in assisting investors evaluating the Company’s operating performance. Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues should not be construed as alternatives to GAAP net revenues, as indicators of the Company’s performance, or as any other measure determined in accordance with generally accepted accounting principles. Reconciliations of GAAP net revenues to Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues are included in the financial schedules in this release.

 

 

 

 

 

4.REVPAR is hotel revenue per available room.

Page 7 of 14

 

 


 

*     *      *

 

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 30 unique hotel and destination gaming offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company recently acquired the operations of Empire City Casino in New York and Hard Rock Rocksino in Ohio, which was rebranded as MGM Northfield Park. In 2018, MGM Resorts opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai. The 82,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information visit us at www.mgmresorts.com.

 

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company’s expectations regarding future results and the Company’s financial outlook, the Company’s ability to execute on its asset light strategy and return capital to shareholders, the expected net cash proceeds from the Bellagio sale-leaseback and Circus Circus Las Vegas transactions and the Company’s ability to deliver on its 2020 targets and goals (including its Adjusted EBITDA, free cash flow and leverage targets). 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

AARON FISCHER

BRIAN AHERN

Chief Strategy Officer

Director of Media Relations

(702) 693-7152 or afischer@mgmresorts.com

media@mgmresorts.com

Page 8 of 14

 

 


 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino

 

 

 

 

$

1,663,049

 

 

$

1,465,380

 

 

$

4,887,707

 

 

$

4,191,910

 

Rooms

 

 

 

 

 

595,636

 

 

 

566,319

 

 

 

1,756,354

 

 

 

1,669,670

 

Food and beverage

 

 

 

 

 

560,200

 

 

 

520,773

 

 

 

1,624,973

 

 

 

1,470,992

 

Entertainment, retail and other

 

 

 

 

 

387,596

 

 

 

370,150

 

 

 

1,114,708

 

 

 

1,063,142

 

Reimbursed costs

 

 

 

 

 

107,901

 

 

 

106,680

 

 

 

330,794

 

 

 

314,520

 

 

 

 

 

 

 

3,314,382

 

 

 

3,029,302

 

 

 

9,714,536

 

 

 

8,710,234

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino

 

 

 

 

 

915,207

 

 

 

819,334

 

 

 

2,706,356

 

 

 

2,323,514

 

Rooms

 

 

 

 

 

211,292

 

 

 

206,406

 

 

 

623,929

 

 

 

598,432

 

Food and beverage

 

 

 

 

 

427,400

 

 

 

391,091

 

 

 

1,254,303

 

 

 

1,121,465

 

Entertainment, retail and other

 

 

 

 

 

274,850

 

 

 

263,915

 

 

 

788,463

 

 

 

734,119

 

Reimbursed costs

 

 

 

 

 

107,901

 

 

 

106,680

 

 

 

330,794

 

 

 

314,520

 

General and administrative

 

 

 

 

 

494,228

 

 

 

463,417

 

 

 

1,543,764

 

 

 

1,319,760

 

Corporate expense

 

 

 

 

 

108,545

 

 

 

98,089

 

 

 

346,042

 

 

 

301,036

 

Preopening and start-up expenses

 

 

 

 

 

925

 

 

 

46,890

 

 

 

5,091

 

 

 

132,884

 

Property transactions, net

 

 

 

 

 

249,858

 

 

 

(42,400

)

 

 

264,424

 

 

 

(19,532

)

Depreciation and amortization

 

 

 

 

 

322,009

 

 

 

300,472

 

 

 

973,211

 

 

 

865,502

 

 

 

 

 

 

 

3,112,215

 

 

 

2,653,894

 

 

 

8,836,377

 

 

 

7,691,700

 

Income from unconsolidated affiliates

 

 

 

 

 

36,214

 

 

 

35,495

 

 

 

101,967

 

 

 

115,201

 

Operating income

 

 

 

 

 

238,381

 

 

 

410,903

 

 

 

980,126

 

 

 

1,133,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of amounts capitalized

 

 

 

 

 

(215,503

)

 

 

(205,573

)

 

 

(647,452

)

 

 

(554,975

)

Non-operating items from unconsolidated affiliates

 

 

 

 

 

(14,669

)

 

 

(11,583

)

 

 

(54,311

)

 

 

(31,661

)

Other, net

 

 

 

 

 

(9,381

)

 

 

(3,291

)

 

 

(53,964

)

 

 

(11,588

)

 

 

 

 

 

 

(239,553

)

 

 

(220,447

)

 

 

(755,727

)

 

 

(598,224

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

 

 

 

(1,172

)

 

 

190,456

 

 

 

224,399

 

 

 

535,511

 

Benefit (provision) for income taxes

 

 

 

 

 

7,276

 

 

 

(19,046

)

 

 

(75,969

)

 

 

42,623

 

Net income

 

 

 

 

 

6,104

 

 

 

171,410

 

 

 

148,430

 

 

 

578,134

 

Less: Net income attributable to noncontrolling interests

 

 

 

 

 

(43,237

)

 

 

(28,532

)

 

 

(110,861

)

 

 

(88,035

)

Net income (loss) attributable to MGM Resorts International

 

 

 

 

$

(37,133

)

 

$

142,878

 

 

$

37,569

 

 

$

490,099

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

$

(0.08

)

 

$

0.26

 

 

$

0.06

 

 

$

0.87

 

Diluted

 

 

 

 

$

(0.08

)

 

$

0.26

 

 

$

0.06

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

518,983

 

 

 

535,130

 

 

 

528,429

 

 

 

549,418

 

Diluted

 

 

 

 

 

518,983

 

 

 

540,396

 

 

 

531,873

 

 

 

555,521

 

 

Page 9 of 14

 

 


 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

 

 

 

 

2019

 

 

2018

 

ASSETS

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

$

1,233,569

 

 

$

1,526,762

 

Accounts receivable, net

 

 

 

 

 

 

550,345

 

 

 

657,206

 

Inventories

 

 

 

 

 

 

104,206

 

 

 

110,831

 

Income tax receivable

 

 

 

 

 

 

23,877

 

 

 

28,431

 

October 1 litigation insurance receivable

 

 

 

 

 

 

735,000

 

 

 

 

Prepaid expenses and other

 

 

 

 

 

 

233,749

 

 

 

203,548

 

Total current assets

 

 

 

 

 

 

2,880,746

 

 

 

2,526,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

20,603,978

 

 

 

20,729,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

 

 

 

Investments in and advances to unconsolidated affiliates

 

 

 

 

 

 

758,992

 

 

 

732,867

 

Goodwill

 

 

 

 

 

 

2,076,431

 

 

 

1,821,392

 

Other intangible assets, net

 

 

 

 

 

 

3,866,536

 

 

 

3,944,463

 

Operating lease right-of-use assets, net

 

 

 

 

 

 

650,990

 

 

 

 

Other long-term assets, net

 

 

 

 

 

 

331,198

 

 

 

455,318

 

Total other assets

 

 

 

 

 

 

7,684,147

 

 

 

6,954,040

 

 

 

 

 

 

 

$

31,168,871

 

 

$

30,210,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

 

 

$

253,637

 

 

$

302,578

 

Construction payable

 

 

 

 

 

 

144,504

 

 

 

311,793

 

Current portion of long-term debt

 

 

 

 

 

 

 

 

 

43,411

 

Accrued interest on long-term debt

 

 

 

 

 

 

159,760

 

 

 

140,046

 

October 1 litigation liability

 

 

 

 

 

 

735,000

 

 

 

 

Other accrued liabilities

 

 

 

 

 

 

2,000,343

 

 

 

2,151,054

 

Total current liabilities

 

 

 

 

 

 

3,293,244

 

 

 

2,948,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes, net

 

 

 

 

 

 

1,536,426

 

 

 

1,342,538

 

Long-term debt, net

 

 

 

 

 

 

14,943,874

 

 

 

15,088,005

 

Other long-term obligations

 

 

 

 

 

 

250,368

 

 

 

259,240

 

Operating lease liabilities

 

 

 

 

 

 

518,365

 

 

 

 

Redeemable noncontrolling interest

 

 

 

 

 

 

105,976

 

 

 

102,250

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $.01 par value: authorized 1,000,000,000 shares,   issued and outstanding 513,913,791 and 527,479,528 shares

 

 

 

 

 

 

5,139

 

 

 

5,275

 

Capital in excess of par value

 

 

 

 

 

 

3,846,369

 

 

 

4,092,085

 

Retained earnings

 

 

 

 

 

 

2,255,885

 

 

 

2,423,479

 

Accumulated other comprehensive loss

 

 

 

 

 

 

(46,841

)

 

 

(8,556

)

Total MGM Resorts International stockholders' equity

 

 

 

 

 

 

6,060,552

 

 

 

6,512,283

 

                Noncontrolling interests

 

 

 

 

 

 

4,460,066

 

 

 

3,957,508

 

Total stockholders' equity

 

 

 

 

 

 

10,520,618

 

 

 

10,469,791

 

 

 

 

 

 

 

$

31,168,871

 

 

$

30,210,706

 

 

Page 10 of 14

 

 


 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

 

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Bellagio

 

 

 

 

 

$

333,752

 

 

$

322,058

 

 

$

1,010,450

 

 

$

1,029,223

 

MGM Grand Las Vegas

 

 

 

 

 

 

318,334

 

 

 

340,053

 

 

 

886,108

 

 

 

944,949

 

Mandalay Bay

 

 

 

 

 

 

248,928

 

 

 

246,303

 

 

 

715,503

 

 

 

742,758

 

The Mirage

 

 

 

 

 

 

153,976

 

 

 

147,433

 

 

 

463,886

 

 

 

450,973

 

Luxor

 

 

 

 

 

 

98,892

 

 

 

103,822

 

 

 

291,448

 

 

 

304,281

 

New York-New York

 

 

 

 

 

 

93,205

 

 

 

90,000

 

 

 

284,109

 

 

 

279,061

 

Excalibur

 

 

 

 

 

 

85,692

 

 

 

83,836

 

 

 

252,953

 

 

 

247,491

 

Park MGM

 

 

 

 

 

 

103,355

 

 

 

50,649

 

 

 

301,006

 

 

 

150,251

 

Circus Circus Las Vegas

 

 

 

 

 

 

71,314

 

 

 

70,202

 

 

 

196,517

 

 

 

191,987

 

  Las Vegas Strip Resorts

 

 

 

 

 

 

1,507,448

 

 

 

1,454,356

 

 

 

4,401,980

 

 

 

4,340,974

 

MGM Grand Detroit

 

 

 

 

 

 

145,769

 

 

 

148,472

 

 

 

453,318

 

 

 

449,218

 

Beau Rivage

 

 

 

 

 

 

108,509

 

 

 

108,580

 

 

 

317,553

 

 

 

308,068

 

Gold Strike Tunica

 

 

 

 

 

 

47,693

 

 

 

45,756

 

 

 

144,486

 

 

 

129,676

 

Borgata

 

 

 

 

 

 

234,459

 

 

 

235,186

 

 

 

621,064

 

 

 

635,486

 

MGM National Harbor

 

 

 

 

 

 

206,083

 

 

 

196,568

 

 

 

608,065

 

 

 

587,171

 

MGM Springfield (1)

 

 

 

 

 

 

75,994

 

 

 

42,549

 

 

 

230,076

 

 

 

42,549

 

Empire City Casino (2)

 

 

 

 

 

 

52,103

 

 

 

 

 

 

143,275

 

 

 

 

MGM Northfield Park (3)

 

 

 

 

 

 

64,408

 

 

 

 

 

 

132,079

 

 

 

 

Regional Operations

 

 

 

 

 

 

935,018

 

 

 

777,111

 

 

 

2,649,916

 

 

 

2,152,168

 

MGM Macau

 

 

 

 

 

 

374,035

 

 

 

434,263

 

 

 

1,197,591

 

 

 

1,321,743

 

MGM Cotai

 

 

 

 

 

 

363,720

 

 

 

171,751

 

 

 

980,457

 

 

 

441,482

 

   MGM China

 

 

 

 

 

 

737,755

 

 

 

606,014

 

 

 

2,178,048

 

 

 

1,763,225

 

Management and other operations

 

 

 

 

 

 

134,161

 

 

 

191,821

 

 

 

484,592

 

 

 

453,867

 

 

 

 

 

 

 

$

3,314,382

 

 

$

3,029,302

 

 

$

9,714,536

 

 

$

8,710,234

 

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA – ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

 

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Bellagio

 

 

 

 

 

$

117,589

 

 

$

104,715

 

 

$

355,914

 

 

$

371,716

 

MGM Grand Las Vegas

 

 

 

 

 

 

85,694

 

 

 

116,647

 

 

 

219,055

 

 

 

298,846

 

Mandalay Bay

 

 

 

 

 

 

66,256

 

 

 

58,649

 

 

 

184,998