Market Overview

MGM Resorts International Reports Third Quarter Results

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LAS VEGAS, Oct. 31, 2012 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today reported its third quarter 2012 results. Net loss per share attributable to the Company was $0.37 compared to a loss of $0.25 in the prior year third quarter. Comparability of the current and prior year quarterly consolidated results was affected by certain items discussed further below. Key results for the third quarter of 2012 include the following:

  • Consolidated net revenue increased 1% to $2.3 billion, driven by a 7% increase in MGM China's net revenue;
  • Consolidated casino revenue increased 4%, representing a 7% increase at MGM China and a 2% increase at the Company's wholly owned domestic resorts;
  • Rooms revenue decreased 3%, primarily due to a 2% decrease in REVPAR(1) at the Company's Las Vegas Strip resorts;
  • The Company's wholly owned domestic resorts earned Adjusted Property EBITDA(2) of $325 million, a 7% decrease compared to the prior year quarter;
  • MGM China reported record third quarter Adjusted EBITDA of $152 million which included $5 million of branding fee expense. Excluding branding fees, Adjusted EBITDA increased 5% compared to the prior year quarter; and
  • CityCenter reported Adjusted EBITDA from resort operations of $59 million, an 18% increase from the prior year quarter.

"Our third quarter operating results are reflective of a challenging consumer environment, but we had some bright spots with strong results from MGM Grand Las Vegas and The Mirage and record third quarters from MGM China and CityCenter," said Jim Murren, Chairman and CEO of MGM Resorts International. "We have achieved a great milestone with MGM China by accepting the formal land concession agreement and look forward to continuing to make progress towards a second resort and casino in Macau. Meanwhile, early fourth quarter trends are improving at our domestic resorts and forward convention booking pace is showing growth in 2013 and is further accelerating into 2014."

Certain Items Affecting Third Quarter Results

The following table lists items that affect the comparability of the current and prior year quarterly results (approximate diluted per share impact on net income (loss) attributable to MGM Resorts International, net of tax; negative amounts represent charges to income):

Three months ended September 30,

2012

2011

Property transactions, net:





     Circus Circus Reno impairment charge    

$      —

$  (0.11)

     Other property transactions, net                 

(0.01)

Income (loss) from unconsolidated affiliates:





     CityCenter residential impairment charge     

(0.02)

     CityCenter Harmon demolition cost     

(0.02)

Income tax provision:





     Deferred tax valuation allowance     

(0.09)

Current quarter results were affected by a valuation allowance for a portion of U.S. deferred tax assets and the Company's share of CityCenter's non-cash residential impairment charge related to Mandarin Oriental and estimated costs accrued for the demolition of the Harmon. The prior year quarter included an impairment charge of $80 million related to Circus Circus Reno.

Wholly Owned Domestic Resorts

Net revenues related to wholly owned domestic resorts decreased 2% to $1.5 billion. Casino revenue increased 2% compared to the prior year quarter. The overall table games hold percentage in the third quarter of 2012 was 20.4% compared to 19.5% for the prior year third quarter. Table games hold at the Bellagio was significantly below normal but was offset by other Las Vegas Strip resorts. Slots revenue increased 1% compared to the prior year quarter.

Rooms revenue decreased 3% with Las Vegas Strip REVPAR down 2%.  The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

Three months ended September 30,              

2012

2011

Occupancy %         

92%

95%

Average Daily Rate (ADR)    

$    124

$   124

Revenue per Available Room (REVPAR)     

$    114

$   117

Operating income for the Company's wholly owned domestic resorts for the third quarter of 2012 was $195 million compared to $130 million in the prior year quarter.  The prior year quarter included an $80 million impairment charge related to Circus Circus Reno.  Adjusted Property EBITDA for wholly owned domestic resorts decreased 7% to $325 million for the third quarter of 2012.  Corporate expense increased by approximately $19 million during the current quarter, largely as a result of approximately $17 million of costs associated with the ongoing referendum in Maryland and development efforts in Massachusetts and Toronto.

MGM China

Key third quarter results for MGM China include the following:

  • MGM China earned net revenue of $665 million, a 7% increase over the prior year quarter driven by increases in volume for main floor table games and slots of 10% and 37%, respectively. VIP table games turnover decreased 5% from the prior year quarter, while hold percentage was 3.0% in the current year quarter compared to 2.9% in the prior year quarter; and
  • MGM China's operating income was $61 million and Adjusted EBITDA was $152 million.   Branding fee expense was $5 million in the current year quarter, as the annual branding fee cap was reached in August, compared to $11 million in the prior year quarter. Adding back the branding fees in both periods, Adjusted EBITDA increased 5%.

As previously announced, MGM China, through its wholly owned subsidiary MGM Grand Paradise S.A. ("MGM Grand Paradise"), formally accepted a land concession contract with the Macau government in October 2012 and received approval to develop a five-star luxury resort and casino in Cotai, Macau.  The contract will not become effective until the Macau government publishes it in the Official Gazette of Macau (the "Publication Date").  The initial term of the contract is 25 years from the Publication Date and MGM Grand Paradise is required to complete the development of the land within 60 months of the Publication Date.  The total land premium payable to the Macau government is approximately $161 million.  In addition to the land premium payment, MGM Grand Paradise is required to pay an annual rent to the Macau government.

In October 2012, MGM China and MGM Grand Paradise, as co-borrowers, entered into an amended and restated credit facility agreement which consists of $550 million of term loans and a $1.45 billion revolving credit facility due October 2017.  The interest rate on the facility will fluctuate based on HIBOR plus a margin, set at 2.5% for the first six months and ranging between 1.75% and 2.5% thereafter based on MGM China's leverage ratio. The credit facility will be used for general corporate purposes and for the development of the proposed Cotai development.

Income (Loss) from Unconsolidated Affiliates

The following table summarizes the Company's income (loss) from unconsolidated affiliates:

Three months ended September 30,

2012

2011



(In thousands)

CityCenter   

$   (42,814)

$   (7,723)

Other        

4,871

8,262



$   (37,943)

$        539

The Company's share of CityCenter's operating losses in the current year quarter includes $18 million related to a residential impairment charge and $16 million related to the accrual of estimated costs for the future demolition of the Harmon.

Results for CityCenter Holdings, LLC for the third quarter of 2012 include the following (see schedules accompanying this release for further detail on CityCenter's third quarter results):

  • Net revenue from resort operations increased 3% to $263 million;
  • Adjusted EBITDA from resort operations was $59 million, an increase of 18% compared to $50 million in the prior year quarter;
  • Aria's table games hold percentage for the third quarter of 2012 was 29.3% compared to 25.5% for the prior year quarter.  The estimated effect of the increase in hold percentage compared to the prior year quarter for Adjusted EBITDA was $8 million;
  • Aria's occupancy percentage was 88% and its ADR was $192, resulting in REVPAR of $170, a 2% decrease compared to the prior year third quarter; and
  • CityCenter recorded approximately $36 million for a residential impairment charge related to the Mandarin Oriental and $32 million for accrued costs related to the future demolition of the Harmon within "Property transactions, net."

Financial Position

The Company's cash balance at September 30, 2012 was $2.4 billion, which included approximately $936 million of cash and cash equivalents related to MGM China.  At September 30, 2012, the Company had approximately $13.9 billion of indebtedness (with a carrying value of $13.8 billion) including $1.3 billion of borrowings outstanding under its senior credit facility and $539 million related to the MGM China credit facility. In September, the Company issued $1.0 billion of 6.75% senior notes due 2020, for net proceeds to the Company of approximately $986 million.

At September 30, 2012, the Company's senior credit facility consisted of approximately $820 million in term loans and a $1.3 billion revolver (approximately $360 million of which has not been extended and matures in February 2014) and had approximately $855 million of available borrowing capacity. The interest rate on extending loans was 5% at September 30, 2012.  Interest on non-extending revolving loans remains at 7%.

"We have opportunistically accessed the capital markets enabling us to extend maturities at lower borrowing rates. Our most recent senior notes issuance was done at the lowest interest rate we have achieved since 2006.  We remain focused on executing additional transactions to further reduce our interest expense and improve free cash flow," said Dan D'Arrigo, Executive Vice President, CFO and Treasurer of MGM Resorts International.

Conference Call Details

MGM Resorts International will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the investors section or by calling 1-877-355-2280 for domestic callers and 1-706-758-3659 for international callers.  The conference call access code is 30530814. A replay of the call will be available through Wednesday, November 7, 2012. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 30530814. The call will also be archived at www.mgmresorts.com

1      REVPAR is hotel revenue per available room.

2      "Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net and the gain on the MGM China transaction.  "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts stock option plan, which is not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted EBITDA for MGM China.  Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. 

Management believes that while items excluded from Adjusted EBITDA and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company's resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period.

In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance.

Reconciliations of GAAP net income (loss) to Adjusted EBITDA and GAAP operating income (loss) to Adjusted Property EBITDA are included in the financial schedules in this release.

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies, operating a peerless portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage.  In addition to its 51% interest in MGM China Holdings, Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, the Company has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three other properties in Nevada and Illinois. One of those investments is CityCenter, an unprecedented urban resort destination on the Las Vegas Strip featuring its centerpiece ARIA Resort & Casino. Leveraging MGM Resorts' unmatched amenities, the M life loyalty program delivers one-of-a-kind experiences, insider privileges and personalized rewards for guests at the Company's renowned properties nationwide. Through its hospitality management subsidiary, the Company holds a growing number of development and management agreements for casino and non-casino resort projects around the world. MGM Resorts International supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its gaming properties. The Company has been honored with numerous awards and recognitions for its industry-leading Diversity Initiative, its community philanthropy programs and the Company's commitment to sustainable development and operations. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.

Statements in this release that are not historical facts are forward-looking statements involving risks and/or uncertainties, including those described in the company's public filings with the Securities and Exchange Commission.  We have based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding future operating results and our ability to execute additional transactions to further reduce our interest expense and improve free cash flow. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which we operate and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in our Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports).  In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.

 

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,











2012



2011



2012



2011

Revenues:





















Casino





$     1,294,318



$    1,241,959



$     3,928,548



$    2,629,674



Rooms





393,055



405,173



1,205,441



1,170,301



Food and beverage

361,252



369,484



1,126,096



1,078,268



Entertainment



123,168



132,350



364,477



382,037



Retail





51,211



55,509



149,921



155,951



Other





127,567



128,204



373,590



371,253



Reimbursed costs

87,682



87,144



269,159



262,914











2,438,253



2,419,823



7,417,232



6,050,398



Less: Promotional allowances

(183,275)



(186,236)



(550,899)



(497,975)











2,254,978



2,233,587



6,866,333



5,552,423

Expenses:





















Casino





826,072



795,652



2,519,757



1,632,382



Rooms





128,546



125,864



384,598



366,736



Food and beverage

209,686



214,412



643,892



628,559



Entertainment



92,888



96,889



270,235



279,605



Retail





29,064



32,641



85,888



94,279



Other





88,616



90,021



263,673



256,710



Reimbursed costs

87,682



87,144



269,159



262,914



General and administrative

319,106



304,049



931,873



875,193



Corporate expense

62,992



43,523



147,792



120,024



Preopening and start-up expenses 

765



-



765



(316)



Property transactions, net

5,803



81,837



97,187



82,828



Gain on MGM China transaction

-



-



-



(3,496,005)



Depreciation and amortization

228,414



249,520



700,866



579,384











2,079,634



2,121,552



6,315,685



1,682,293

























Income (loss) from unconsolidated affiliates

(37,943)



539



(45,266)



95,909

























Operating income 



137,401



112,574



505,382



3,966,039

























Non-operating income (expense):

















Interest expense, net of amounts capitalized

(275,771)



(272,542)



(836,436)



(812,680)



Non-operating items from unconsolidated affiliates

(20,901)



(24,692)



(68,603)



(92,984)



Other, net



2,012



(1,595)



(55,518)



(18,567)











(294,660)



(298,829)



(960,557)



(924,231)

























Income (loss) before income taxes

(157,259)



(186,255)



(455,175)



3,041,808



Benefit for income taxes

2,585



79,680



26,760



212,437

























Net income (loss)



(154,674)



(106,575)



(428,415)



3,254,245



Less: net income attributable to noncontrolling interests

(26,485)



(17,211)



(115,449)



(25,917)

Net income (loss) attributable to MGM Resorts International

$       (181,159)



$      (123,786)



$       (543,864)



$    3,228,328

























Per share of common stock:

















Basic:





















Net income (loss) attributable to MGM Resorts International

$             (0.37)



$            (0.25)



$             (1.11)



$             6.61



























Weighted average shares outstanding

488,945



488,636



488,913



488,595



























Diluted:





















Net income (loss) attributable to MGM Resorts International

$             (0.37)



$            (0.25)



$             (1.11)



$             5.83



























Weighted average shares outstanding

488,945



488,636



488,913



558,544

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

















































September 30,



December 31,













2012



2011



























      ASSETS







Current assets:

















Cash and cash equivalents



$      2,443,159



$      1,865,913



Accounts receivable, net



412,390



491,730



Inventories







107,772



112,735



Deferred income taxes, net



140,831



91,060



Prepaid expenses and other



243,665



251,282



                 Total current assets



3,347,817



2,812,720



















Property and equipment, net





14,765,349



14,866,644



















Other assets:

















Investments in and advances to unconsolidated affiliates

1,488,662



1,635,572



Goodwill 









2,901,273



2,896,609



Other intangible assets, net



4,813,183



5,048,117



Other long-term assets, net



515,077



506,614



                 Total other assets



9,718,195



10,086,912













$    27,831,361



$    27,766,276





































LIABILITIES AND STOCKHOLDERS' EQUITY



















Current liabilities:















Accounts payable





$         201,150



$         170,994



Income taxes payable





358



7,611



Accrued interest on long-term debt



249,676



203,422



Other accrued liabilities





1,574,670



1,362,737



                 Total current liabilities



2,025,854



1,744,764



















Deferred income taxes 







2,527,828



2,502,096

Long-term debt









13,825,451



13,470,167

Other long-term obligations





186,725



167,027

Stockholders' equity:















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









   issued and outstanding 488,955,913 and 488,834,773 shares 

4,890



4,888



Capital in excess of par value



4,098,322



4,094,323



Retained earnings 





1,437,525



1,981,389



Accumulated other comprehensive income 

12,533



5,978



Total MGM Resorts International stockholders' equity

5,553,270



6,086,578



Noncontrolling interests





3,712,233



3,795,644



                 Total stockholders' equity

9,265,503



9,882,222













$    27,831,361



$    27,766,276






































 

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,















2012



2011



2012



2011



Bellagio











$        259,501



$        275,884



$        840,233



$            805,892



MGM Grand Las Vegas





239,713



243,037



702,589



707,618



Mandalay Bay







183,466



199,166



555,857



587,525



The Mirage 









162,920



140,989



457,388



433,912



Luxor











81,343



88,203



247,986



252,420



New York-New York 





67,166



68,449



206,807



202,147



Excalibur











66,809



67,831



197,808



196,341



Monte Carlo









64,425



65,321



195,788



193,602



Circus Circus Las Vegas





56,807



56,559



158,606



149,694



MGM Grand Detroit





139,284



139,049



431,676



425,189



Beau Rivage









91,704



89,713



265,254



261,448



Gold Strike Tunica





39,789



40,415



115,797



108,485



Other resort operations





33,228



34,759



95,192



96,840



  Wholly owned domestic resorts



1,486,155



1,509,375



4,470,981



4,421,113



MGM China(1)







665,074



623,050



2,076,460



816,034



Management and other operations



103,749



101,162



318,892



315,276















$     2,254,978



$     2,233,587



$     6,866,333



$         5,552,423































(1) For the nine months ended September 30, 2011, represents the net revenues of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through September 30, 2011.





MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)











































Three Months Ended



Nine Months Ended















September 30,



September 30,



September 30,



September 30,















2012



2011



2012



2011



Bellagio











$          54,133



$          74,251



$        207,929



$            205,522



MGM Grand Las Vegas





48,378



42,221



114,735



114,646



Mandalay Bay







34,392



41,372



120,605



129,417



The Mirage 









39,507



25,406



91,993



82,145



Luxor











15,717



21,065



51,426



60,020



New York-New York 





20,954



22,738



68,929



66,089



Excalibur











15,394



17,463



48,698



51,974



Monte Carlo









13,150



14,466



44,554



43,870



Circus Circus Las Vegas





8,322



8,898



21,611



20,524



MGM Grand Detroit





39,264



39,897



124,840



125,593



Beau Rivage









22,722



25,501



59,173



57,925



Gold Strike Tunica





11,041



13,464



33,662



21,219



Other resort operations





1,790



852



2,739



(2)



  Wholly owned domestic resorts



324,764



347,594



990,894



978,942



MGM China(1)







152,491



139,326



503,572



185,748



MGM Macau (50%)(2)





-



-



-



115,219



CityCenter (50%)(3)





(42,814)



(7,723)



(60,745)



(46,029)



Other unconsolidated resorts(3)



4,871



8,262



15,479



26,719



Management and other operations



(409)



4,637



14,394



6,159















$        438,903



$        492,096



$     1,463,594



$         1,266,758































(1) For the nine months ended September 30, 2011, represents the Adjusted EBITDA of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through September 30, 2011.



(2) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences for the approximately five months ended June 2, 2011.



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

 

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)



                         Three Months Ended September 30, 2012







Operating

income

(loss)



Preopening and

 start-up

expenses



Property 

transactions,

net



Depreciation

 and

amortization



Adjusted

EBITDA

Bellagio

$          30,454



$                     -



$                       52



$          23,627



$          54,133

MGM Grand Las Vegas

24,375



-



3,497



20,506



48,378

Mandalay Bay

15,251



-



392



18,749



34,392

The Mirage

25,949



-



541



13,017



39,507

Luxor

6,076



-



765



8,876



15,717

New York-New York

15,619



-



148



5,187



20,954

Excalibur

11,016



-



-



4,378



15,394

Monte Carlo

8,332



-



9



4,809



13,150

Circus Circus Las Vegas

3,541



-



-



4,781



8,322

MGM Grand Detroit

30,206



641



37



8,380



39,264

Beau Rivage

15,129



-



(78)



7,671



22,722

Gold Strike Tunica

7,825



-



1



3,215



11,041

Other resort operations

1,176



-



(8)



622



1,790

  Wholly owned domestic resorts

194,949



641



5,356



123,818



324,764

MGM China

60,527



-



426



91,538



152,491

CityCenter (50%)

(42,938)



124



-



-



(42,814)

Other unconsolidated resorts

4,871



-



-



-



4,871

Management and other operations

(3,574)



-



-



3,165



(409)



213,835



765



5,782



218,521



438,903

Stock compensation

(7,897)



-



-



-



(7,897)

Corporate

(68,537)



-



21



9,893



(58,623)



$        137,401



$               765



$                 5,803



$        228,414



$        372,383









































                         Three Months Ended September 30, 2011

















































Operating

income 

(loss)



Preopening and

start-up

expenses



 Property

transactions,

net



Depreciation

and

amortization



Adjusted

EBITDA

Bellagio

$          50,943



$                     -



$                   503



$          22,805



$          74,251

MGM Grand Las Vegas

22,945



-



1



19,275



42,221

Mandalay Bay

19,313



-



53



22,006



41,372

The Mirage

6,708



-



1,291



17,407



25,406

Luxor

11,775



-



2



9,288



21,065

New York-New York

17,043



-



-



5,695



22,738

Excalibur

12,477



-



13



4,973



17,463

Monte Carlo

9,209



-



5



5,252



14,466

Circus Circus Las Vegas

4,192



-



2



4,704



8,898

MGM Grand Detroit

29,991



-



-



9,906



39,897

Beau Rivage

15,614



-



(7)



9,894



25,501

Gold Strike Tunica

10,083



-



-



3,381



13,464

Other resort operations

(79,990)



-



79,658



1,184



852

  Wholly owned domestic resorts

130,303



-



81,521



135,770



347,594

MGM China

40,788



-



294



98,244



139,326

CityCenter (50%)

(7,723)



-



-



-



(7,723)

Other unconsolidated resorts

8,262



-



-



-



8,262

Management and other operations

1,000



-



6



3,631



4,637













172,630



-



81,821



237,645



492,096

Stock compensation

(8,707)



-



-



-



(8,707)

Corporate

(51,349)



-



16



11,875



(39,458)















$        112,574



$                     -



$             81,837



$        249,520



$        443,931










































 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

































Nine Months Ended September 30, 2012















































Operating

income

(loss)



Preopening and

start-up

expenses



Property

transactions,

net



Depreciation

and

amortization



Adjusted EBITDA

Bellagio

$          135,874



$                     -



$                     406



$          71,649



$        207,929

MGM Grand Las Vegas

50,796



-



4,627



59,312



114,735

Mandalay Bay

60,817



-



937



58,851



120,605

The Mirage

52,691



-



611



38,691



91,993

Luxor

23,691



-



950



26,785



51,426

New York-New York

52,318



-



391



16,220



68,929

Excalibur

35,407



-



3



13,288



48,698

Monte Carlo









29,235



-



567



14,752



44,554

Circus Circus Las Vegas





7,079



-



77



14,455



21,611

MGM Grand Detroit





94,975



641



921



28,303



124,840

Beau Rivage









36,252



-



(70)



22,991



59,173

Gold Strike Tunica





23,758



-



3



9,901



33,662

Other resort operations





958



-



(22)



1,803



2,739

  Wholly owned domestic resorts

603,851



641



9,401



377,001



990,894

MGM China









218,869



-



1,890



282,813



503,572

CityCenter (50%)





(60,869)



124



-



-



(60,745)

Other unconsolidated resorts



15,479



-



-



-



15,479

Management and other operations

3,692



-



-



10,702



14,394













781,022



765



11,291



670,516



1,463,594

Stock compensation





(25,998)



-



-



-



(25,998)

Corporate









(249,642)



-



85,896



30,350



(133,396)













$          505,382



$               765



$               97,187



$        700,866



$     1,304,200





Nine Months Ended September 30, 2011















































Operating

income

(loss)



Preopening and start-up expenses



Gain on MGM China transaction and Property transactions, net



Depreciation and amortization



Adjusted EBITDA

Bellagio











$          132,489



$                     -



$                     820



$          72,213



$        205,522

MGM Grand Las Vegas





56,837



-



1



57,808



114,646

Mandalay Bay







63,365



-



69



65,983



129,417

The Mirage









35,123



-



1,330



45,692



82,145

Luxor











31,599



-



8



28,413



60,020

New York-New York





48,325



-



(85)



17,849



66,089

Excalibur











36,530



-



223



15,221



51,974

Monte Carlo









26,690



-



33



17,147



43,870

Circus Circus Las Vegas





6,343



-



(6)



14,187



20,524

MGM Grand Detroit





95,820



-



372



29,401



125,593

Beau Rivage









25,764



-



51



32,110



57,925

Gold Strike Tunica





11,028



-



-



10,191



21,219

Other resort operations





(83,323)



-



79,675



3,646



(2)

  Wholly owned domestic resorts

486,590



-



82,491



409,861



978,942

MGM China









60,236



-



307



125,205



185,748

MGM Macau (50%)





115,219



-



-



-



115,219

CityCenter (50%)





(46,029)



-



-



-



(46,029)

Other unconsolidated resorts



26,719



-



-



-



26,719

Management and other operations

(4,289)



(316)



1



10,763



6,159















638,446



(316)



82,799



545,829



1,266,758

Stock compensation





(26,912)



-



-



-



(26,912)

Corporate







3,354,505



-



(3,495,976)



33,555



(107,916)















$       3,966,039



$              (316)



$        (3,413,177)



$        579,384



$     1,131,930

































 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)















Three Months Ended



Nine Months Ended













September 30,



September 30,



September 30,



September 30,









2012



2011



2012



2011

Adjusted EBITDA





$        372,383



$        443,931



$     1,304,200



$     1,131,930

  Preopening and start-up expenses



(765)



-



(765)



316

  Property transactions, net



(5,803)



(81,837)



(97,187)



(82,828)

  Gain on MGM China transaction



-



-



-



3,496,005

  Depreciation and amortization



(228,414)



(249,520)



(700,866)



(579,384)

Operating income





137,401



112,574



505,382



3,966,039

























Non-operating income (expense):

















  Interest expense, net of amounts capitalized





(275,771)



(272,542)



(836,436)



(812,680)

  Other, net







(18,889)



(26,287)



(124,121)



(111,551)











(294,660)



(298,829)



(960,557)



(924,231)

























Income (loss) before income taxes



(157,259)



(186,255)



(455,175)



3,041,808

  Benefit for income taxes



2,585



79,680



26,760



212,437

Net income (loss)





(154,674)



(106,575)



(428,415)



3,254,245

  Less: net income attributable to noncontrolling interests



(26,485)



(17,211)



(115,449)



(25,917)

Net income (loss) attributable to MGM Resorts International

$      (181,159)



$      (123,786)



$      (543,864)



$     3,228,328



























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)







































Three Months Ended



Nine Months Ended













September 30,



September 30,



September 30,



September 30,













2012



2011



2012



2011



Bellagio

























   Occupancy %





92.7%



96.8%



94.2%



94.7%



   Average daily rate (ADR)



$232



$230



$234



$226



   Revenue per available room (REVPAR)



$215



$222



$220



$214





























MGM Grand Las Vegas



















   Occupancy %





94.1%



95.4%



94.6%



94.3%



   ADR









$135



$129



$139



$130



   REVPAR









$127



$123



$131



$123





























Mandalay Bay





















   Occupancy %





93.4%



95.7%



92.9%



93.5%



   ADR









$168



$175



$178



$176



   REVPAR









$157



$168



$166



$165





























The Mirage























   Occupancy %





96.4%



96.7%



95.9%



95.8%



   ADR









$139



$140



$148



$145



   REVPAR









$134



$136



$142



$138





























Luxor

























   Occupancy %





91.0%



94.6%



91.7%



91.8%



   ADR









$86



$87



$88



$90



   REVPAR









$78



$83



$81



$83





























New York-New York



















   Occupancy %





94.5%



95.3%



95.5%



94.5%



   ADR









$108



$108



$110



$108



   REVPAR









$102



$103



$105



$102





























Excalibur

























   Occupancy %





91.2%



92.4%



90.9%



90.0%



   ADR









$71



$70



$72



$72



   REVPAR









$64



$65



$65



$65





























Monte Carlo























   Occupancy %





93.4%



97.2%



94.9%



94.8%



   ADR









$102



$99



$103



$98



   REVPAR









$96



$96



$98



$93





























Circus Circus Las Vegas



















   Occupancy %





83.9%



88.1%



81.1%



76.2%



   ADR









$52



$52



$54



$54



   REVPAR









$44



$46



$44



$41

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)











































Three Months Ended



Nine Months Ended















September 30,



September 30,



September 30,



September 30,















2012



2011



2012



2011































Aria











$        217,306



$        214,347



$        638,772



$        672,810



Vdara











20,969



20,060



65,532



55,230



Crystals











13,534



11,345



38,994



34,229



Mandarin Oriental





11,222



9,064



35,945



30,309



 Resort operations





263,031



254,816



779,243



792,578



Residential operations





3,399



5,186



16,249



20,328















$        266,430



$        260,002



$        795,492



$        812,906






















































































CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS

(In thousands)

(Unaudited)











































Three Months Ended



Nine Months Ended















September 30,



September 30,



September 30,



September 30,















2012



2011



2012



2011





























Adjusted EBITDA







$          52,762



$          46,090



$        146,552



$        157,978

  Preopening and start-up expenses



(248)



-



(248)



-

  Property transactions, net





(71,257)



(6)



(73,336)



(53,362)

  Depreciation and amortization



(91,110)



(86,093)



(267,262)



(271,270)

Operating loss









(109,853)



(40,009)



(194,294)



(166,654)





























Non-operating income (expense):

















  Interest expense - sponsor notes



(23,346)



(20,092)



(67,197)



(57,699)

  Interest expense - other





(42,681)



(47,665)



(131,649)



(142,714)

  Other, net











808



1,129



(5,832)



(20,566)















(65,219)



(66,628)



(204,678)



(220,979)

Net loss











$      (175,072)



$      (106,637)



$      (398,972)



$      (387,633)


























































CITYCENTER HOLDINGS, LLC



RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA



(In thousands)



(Unaudited)



Three Months Ended September 30, 2012