Market Overview

MGM Resorts International Reports Fourth Quarter And Full Year Financial And Operating Results

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Announces 9% Percent Increase to Quarterly Cash Dividend

LAS VEGAS, Feb. 20, 2018 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter and year ended December 31, 2017.

"Our fourth quarter results further exhibited the strength and durability of our organization, and I am proud of the 78,000 men and women within our MGM family, who remain dedicated to the continued success and evolution of our Company," said Jim Murren, Chairman & CEO of MGM Resorts. "Over the years, our plan of instilling a culture of continuous improvement to elevate the guest experience, drive profitability, and enhance our financial position has allowed us to further demonstrate our disciplined approach to capital allocation and maximizing shareholder value. Our success in executing on this plan continued to mark milestone achievements in 2017."

Mr. Murren continued, "We look forward to another rewarding year in 2018. MGM COTAI, Macau's most technologically advanced resort opened its doors last week. This year, we will also welcome MGM Springfield in the third quarter, the completion of Park MGM and NoMad by the end of the year, and celebrate many more new and creative ways to entertain our guests at our destinations worldwide."

Fourth Quarter 2017 Financial Highlights:

  • Diluted earnings per share for the fourth quarter of $2.42, including a non-recurring, non-cash income tax benefit of $2.52 due to enactment of U.S. Tax Reform at the end of 2017, compared to diluted earnings per share of $0.04 in the prior year quarter;
  • Net revenues increased 5% over the prior year quarter at the Company's domestic resorts to $1.9 billion and decreased 3% on a same-store basis, excluding contributions from MGM National Harbor. Excluding Monte Carlo and MGM National Harbor, net revenues decreased 1% compared to the prior year quarter;
  • REVPAR(1) decreased 4.9% compared to the prior year quarter at the Company's Las Vegas Strip resorts;
  • Operating income of $305 million at the Company's domestic resorts, a 2% decrease over the prior year quarter; 
  • Net income attributable to MGM Resorts of $1.4 billion, including a non-recurring, non-cash income tax benefit of $1.4 billion due to U.S. Tax Reform, compared to $25 million in the prior year quarter;
  • Adjusted Property EBITDA(2) increased 1% over the prior year quarter to $496 million at the Company's domestic resorts, and decreased 3% on a same-store basis. Excluding Monte Carlo and MGM National Harbor, Adjusted Property EBITDA increased slightly compared to the prior year quarter;
  • Same-store operating margin of 17.2% in the current quarter at the Company's domestic resorts, a decrease of 97 basis points compared to the prior year quarter;
  • Same-store Adjusted Property EBITDA margin of 26.9% at the Company's domestic resorts, compared to 27.0% in the prior year quarter, and 27.5% excluding Monte Carlo and MGM National Harbor;
  • MGM China operating income of $43 million compared to $72 million in the prior year quarter, and Adjusted EBITDA of $147 million, a 7% increase compared to the prior year quarter; and a 25% increase compared to the third quarter of 2017; and
  • CityCenter operating income from resort operations of $30 million and Adjusted EBITDA from resort operations of $97 million, a 7% increase in Adjusted EBITDA compared to the prior year quarter.

Full Year 2017 Financial Highlights:

  • Consolidated net revenues of $10.8 billion and domestic resorts net revenues of $8.3 billion, an 18% increase over the prior year at the Company's domestic resorts and a 2% increase on a same-store basis, excluding contributions from  Borgata and MGM National Harbor;
  • REVPAR growth of 2.4% over the prior year at the Company's Las Vegas Strip resorts;
  • Operating income of $1.8 billion at the Company's domestic resorts;
  • Net income attributable to MGM Resorts of $2.0 billion, including a non-recurring, non-cash income tax benefit of $1.4 billion due to U.S. Tax Reform, compared to $1.1 billion in the prior year;
  • Adjusted Property EBITDA of $2.5 billion at the Company's domestic resorts, a 22% increase over the prior year and a 6% increase on a same-store basis;
  • Same-store Adjusted Property EBITDA margin of 31.0% at the Company's domestic resorts, a 141 basis point increase compared to the prior year;
  • MGM China operating income of  $194 million compared to $255 million in the prior year, and Adjusted EBITDA of $525 million, a 1% increase over the prior year;
  • Record CityCenter Adjusted EBITDA related to resort operations of $424 million compared to $353 million in the prior year; and
  • Returned $580 million to shareholders through buybacks and dividends during 2017.

Certain Items Affecting Fourth Quarter Results

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

Three Months Ended December 31,


2017



2016


Preopening and start-up expenses


$

(0.05)



$

(0.07)


Property transactions, net



(0.03)




(0.01)


Income from unconsolidated affiliates:









Gain on the sale of Crystals






0.01


Non-operating expense:









Loss on retirement of long-term debt



(0.02)





Results for the fourth quarter of 2017 include a non-recurring, non-cash income tax benefit of $1.4 billion, $2.52 per share on a fully diluted basis, resulting from the remeasurement of deferred tax assets and liabilities required as a result of the enactment of the U.S. Tax Cut and Jobs Act ("U.S. Tax Reform"). 

Domestic Resorts

Casino revenue for the fourth quarter of 2017 increased 13% compared to the prior year quarter, due primarily to the MGM National Harbor opening in December 2016. On a same-store basis casino revenues were flat compared to the prior year quarter. Same-store table games revenue increased 4% year-over-year due primarily to higher table games hold at the Company's Las Vegas Strip resorts, partially offset by a 3% decrease in table games drop. Same-store slots revenue decreased 2%.

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

Three Months Ended December 31,


2017



2016




(Dollars in millions)


Table Games Drop


$

909



$

949


Table Games Win %



25.3%




23.5%


Slot Handle


$

3,129



$

3,315


Slot Hold %



8.9%




8.8%


Domestic resorts rooms revenue decreased 5% compared to the prior year quarter. On a same-store basis, rooms revenue decreased 6% compared to the prior year quarter. Las Vegas Strip REVPAR decreased 4.9% compared to the prior year quarter.

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

Three Months Ended December 31,


2017



2016


Occupancy %



85%




89%


Average Daily Rate (ADR)


$

158



$

158


Revenue per Available Room (REVPAR)


$

134



$

141


Operating income at the Company's domestic resorts was $305 million for the fourth quarter of 2017 and included a $15 million charge for MGM National Harbor's share of real estate transfer taxes recorded in connection with the MGM Growth Properties Operating Partnership LP's (the "MGP Operating Partnership") purchase of its long-term leasehold interests and real property improvements and a $20 million charge related to asset disposals at Monte Carlo recorded in property transactions, net, compared to $312 million in the fourth quarter of 2016.

Domestic resorts Adjusted Property EBITDA increased 1% to $496 million in the fourth quarter of 2017 and was positively impacted by a full quarter of operations at MGM National Harbor, partially offset by a decrease at Monte Carlo as a result of disruption related to its transformation to Park MGM. Same-store Adjusted Property EBITDA decreased 3% compared to the prior year quarter. Excluding MGM National Harbor and Monte Carlo, Adjusted Property EBITDA increased slightly compared to the prior year quarter.

Mr. Murren continued, "Consistent with our prior guidance, after taking into consideration the tough year-over-year citywide convention comparison and continued construction disruption at Monte Carlo, we expect our Las Vegas Strip REVPAR to decrease 4 to 6 percent, and our Las Vegas Strip net revenues to decrease 3 to 5 percent in the first quarter. As a result, we anticipate that our Las Vegas Strip Adjusted Property EBITDA margins will decline approximately 250 basis points."

Mr. Murren concluded, "As we look at the underlying fundamentals of our business, the first quarter is not reflective of our outlook for the full year. We remain optimistic about the rest of 2018, driven by the demand we see for our resorts, our strong group and event calendar, and a healthy U.S. economic backdrop, which we believe will drive year-over-year increases in Las Vegas Strip net revenues and profitability. We expect Las Vegas Strip REVPAR for the year to be up a healthy 2 to 4 percent."

Corporate Expense

Corporate expense was $116 million in the fourth quarter of 2017, an increase of $44 million compared to the prior year quarter. The current quarter included a $16 million charge for the MGP Operating Partnership's share of real estate transfer taxes recorded in connection with the MGM National Harbor transaction, $8 million of expenses related to the launch of the Company's corporate brand campaign, a $5 million increase in legal expenses, and a $5 million increase in charitable contributions.

MGM China

On February 20, 2018, as part of its regular dividend policy, the Board of Directors of MGM China Holdings Limited ("MGM China") announced it will recommend a final dividend for 2017 of $47 million to MGM China shareholders subject to approval at the MGM China 2018 annual shareholders meeting to be held in May, bringing the total 2017 dividend to $104 million including the interim dividend paid in September of 2017. If approved, MGM Resorts will receive $26 million, representing its 56% share of the dividend.

Key fourth quarter results for MGM China include:

  • Net revenues of $549 million, a 10% increase compared to the prior year quarter;
  • Net revenues increased 17% when compared to $471 million in the third quarter of 2017;
  • Main floor table games revenue increased 21% compared to the prior year quarter due to a 10% increase in volume and an increase in hold percentage to 21.0% in the current year quarter from 19.0% in the prior year quarter;
  • VIP table games revenue decreased 5% compared to the prior year quarter despite a 23% increase in turnover due to a decrease in hold percentage to 3.1% in the current year quarter from 3.7% in the prior year quarter;
  • Operating income was $43 million compared to $72 million in the prior year quarter;
  • Adjusted EBITDA increased 7% to $147 million compared to $138 million in the prior year quarter, including $10 million of license fee expense in the current year quarter and $9 million in the prior year quarter;
  • Adjusted EBITDA increased 25% when compared to $118 million in the third quarter of 2017, including $8 million of license fee expense in the third quarter of 2017; and
  • Operating margin was 7.8% in the current year quarter, and Adjusted EBITDA margin was 26.9% compared to 27.5% in the prior year quarter.

Unconsolidated Affiliates

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

Three Months Ended December 31,


2017



2016




(In thousands)


CityCenter


$

23,618



$

25,804


Other



4,384




6,224




$

28,002



$

32,028


The Company's share of CityCenter Holdings, LLC ("CityCenter") operating results for the fourth quarter of 2017, including certain basis difference adjustments, was $24 million.

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

  • Net revenues from resort operations were $306 million, a 1% increase compared to the prior year quarter, due primarily to an increase in food and beverage revenues related to catering and banquets and other revenues;
  • Operating income from resort operations was $30 million compared to operating income of $27 million in the prior year quarter;
  • Adjusted EBITDA from resort operations was $97 million, a 7% increase compared to the prior year quarter;
  • Aria's table games drop decreased 2% and table games hold percentage was 25.4% compared to 29.2% in the prior year quarter;
  • Aria had record fourth quarter slots revenue of $47 million, an increase of 15% compared to the prior year quarter;
  • REVPAR at Aria increased 1% to $220, compared to the prior year quarter; and
  • REVPAR at Vdara decreased 5% to $173, compared to the prior year quarter, and Adjusted EBITDA decreased 11% compared to the prior year quarter to $8 million.

MGM Growth Properties

During the fourth quarter of 2017, the Company made rent payments to the MGP Operating Partnership in the amount of $188 million and received distributions of $73 million from the MGP Operating Partnership. On December 15, 2017, the Board of Directors of MGP Growth Properties LLC ("MGP") approved an increased quarterly dividend to $0.42 per Class A share (based on a $1.68 dividend on an annualized basis) totaling $30 million, which was paid on January 16, 2018 to holders of record on December 29, 2017. The Company concurrently received an $82 million distribution attributable to its ownership of MGP Operating Partnership units.

On October 5, 2017, the MGP Operating Partnership completed the $1,187.5 billion purchase of the long-term leasehold interest and real property improvements related to the MGM National Harbor casino resort. Following the MGM National Harbor transaction, subsidiaries of MGM Resorts collectively own 73.4% of the MGP Operating Partnership units.

MGM Resorts Dividend and Share Repurchases

On February 19, 2018, the Company's Board of Directors approved a 9% increase in the Company's quarterly dividend from $0.11 per share to $0.12 per share totaling $68 million. The dividend will be payable on March 15, 2018 to holders of record on March 9, 2018.

On September 5, 2017, MGM Resorts announced the adoption of a $1.0 billion stock repurchase program and has repurchased 10 million shares of its common stock at $32.75 per share for a total aggregate amount of $327.5 million under such program to date. All shares repurchased under the Company's program have been retired.

Full Year 2017 Results

Consolidated net revenue for 2017 was $10.8 billion, a 14% increase over 2016. Consolidated operating income was $1.7 billion compared to $2.1 billion in the prior year, which included a $430 million gain recognized on the Borgata acquisition and a $401 million gain related to the sale of Crystals. Net income attributable to MGM Resorts was $2.0 billion, including a non-recurring, non-cash income tax benefit of $1.4 billion due to U.S. Tax Reform, compared to $1.1 billion in the prior year. Adjusted EBITDA increased 1% compared to the prior year to $2.8 billion.

Net revenue from domestic resorts was $8.3 billion, an 18% increase over the prior year and a 2% increase on a same-store basis. Operating income from domestic resorts was $1.8 billion a 35% increase over the prior year. Domestic resorts Adjusted Property EBITDA was $2.5 billion, a 22% increase over the prior year and a 6% increase on a same-store basis.

MGM China net revenue was $2.0 billion for 2017, a 3% increase from 2016. MGM China operating income was $194 million compared to $255 million in the prior year. The current year operating income included $87 million of preopening expense related to the MGM Cotai project compared to $28 million of preopening expense in the prior year. MGM China Adjusted EBITDA was $525 million compared to $521 million in the prior year, a 1% increase from 2016.

CityCenter reported net revenues of $1.3 billion from resort operations, a 6% increase compared to the prior year. Operating income from resort operations was $198 million and included a benefit of $8 million from the NV Energy exit fee modification, compared to operating income from resort operations of $7 million in the prior year, which included $26 million of NV Energy exit expense and $82 million of accelerated depreciation associated with the April 2016 closure of the Zarkana theatre. Adjusted EBITDA related to resort operations was a record $424 million compared to $353 million in the prior year and was positively impacted by increases in casino, rooms and food and beverage revenues.

During the year ended December 31, 2017, the Company made rent payments to the MGP Operating Partnership in the amount of $682 million. During the full year 2017 the Company received $290 million of distributions attributable to its ownership of units in the MGP Operating Partnership.

Diluted earnings per share was $3.37 in the current year, including a non-recurring, non-cash income tax benefit of $2.49 due to enactment of the U.S. Tax Reform, compared to $1.92 in 2016.

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

Year ended December 31,

2017



2016


Borgata property tax settlement

$

0.04



$


NV Energy exit expense


0.05




(0.18)


Preopening and start-up expenses


(0.11)




(0.15)


Property transactions, net


(0.05)




(0.02)


Gain on Borgata transaction





0.61


Income (loss) from unconsolidated affiliates:








   Gain on the sale of Crystals





0.56


   CityCenter NV Energy exit expense





(0.02)


Non-operating expense:








   Loss on retirement of long-term debt


(0.07)




(0.10)


Financial Position

The Company's cash balance at December 31, 2017 was $1.5 billion, which included $676 million at MGM China and $260 million at the MGP Operating Partnership. At December 31, 2017, the Company had $13.0 billion of principal amount of indebtedness outstanding, including $373 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $2.7 billion MGP Operating Partnership senior credit facility and $2.3 billion outstanding under the $2.9 billion MGM China credit facility.

"Our continued efforts to execute on our strategies have allowed us to enhance our capital structure and further strengthen the financial position of our Company," said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. "With our development projects coming to completion in 2018, we remain focused on maximizing our cash flows to support our balanced approach to capital allocation, including maintaining a strong credit profile, prudently investing in high return opportunities and returning excess capital to shareholders."

Conference Call Details

MGM Resorts 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 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 0077590. A replay of the call will be available through Tuesday, February 27, 2018. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10116201. 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   REVPAR is hotel revenue per available room.

2   "Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, NV Energy exit expense, gain on Borgata transaction, goodwill impairment charges, and property transactions, net. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts and MGP stock compensation plans, which are not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted EBITDA for MGM China. "Same-store Adjusted Property EBITDA" is Adjusted Property EBITDA related to operating resorts which were consolidated by the Company for both the entire current and prior year periods presented. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. Management presents Adjusted Property EBITDA on a "same-store" basis as supplemental information because management believes that providing performance measures on a "same-store" basis is useful for evaluating the period-to-period performance of the Company's domestic casino resorts.

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

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

Adjusted EBITDA, Adjusted Property EBITDA and Same-store Adjusted Property EBITDA should not be construed as alternatives to operating income or net income, as indicators of our performance; or as alternatives to cash flows from operating activities, as measures of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA information may calculate Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA in a different manner.

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

The Company does not provide reconciliations of Adjusted EBITDA, Adjusted Property EBITDA or Same-store Adjusted Property EBITDA to net income on a forward-looking basis because the Company is unable to forecast the amount or significance of certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items include gains or losses on sale or consolidation transactions, accelerated depreciation, impairment charges, gains or losses on retirement of debt and variations in effective tax rate, which are difficult to predict and estimate and are primarily dependent on future events, but which are excluded from the Company's calculations of Adjusted EBITDA, Adjusted Property EBITDA and Same-store Adjusted Property EBITDA.

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 28 unique hotel offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company opened MGM Cotai in Macau in February 2018. It is also developing MGM Springfield in Massachusetts and debuting the first international Bellagio branded hotel in Shanghai. The 78,000 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 (including REVPAR and other guidance), the payment of any future cash dividends on the Company's common stock, the Company's ability to generate future cash flow growth and maximize shareholder value and the Company's ability to execute its strategic plan (including the execution of the Company's development projects) and improve its financial flexibility. 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 INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)
















Three Months Ended


Twelve Months Ended



December 31,


December 31,


December 31,


December 31,



2017


2016


2017


2016

Revenues:













Casino

$

1,530,190


$

1,366,903


$

5,984,335


$

4,936,490


Rooms


482,167



505,120



2,151,380



2,023,841


Food and beverage


397,616



401,373



1,790,287



1,639,910


Entertainment


124,462



137,103



542,706



517,433


Retail


50,384



49,711



214,331



200,340


Other


141,572



133,413



605,832



533,528


Reimbursed costs


100,154



95,992



402,042



397,152




2,826,545



2,689,615



11,690,913



10,248,694


Less: Promotional allowances


(229,297)



(228,795)



(917,009)



(793,571)




2,597,248



2,460,820



10,773,904



9,455,123

Expenses:













Casino


851,223



761,280



3,241,180



2,718,483


Rooms


143,239



141,115



608,103



576,426


Food and beverage


224,439



230,947



1,004,949



943,803


Entertainment


104,190



112,078



430,981



411,657


Retail


24,371



23,737



102,886



96,928


Other


94,006



90,314



375,865



351,215


Reimbursed costs


100,154



95,992



402,042



397,152


General and administrative


414,483



376,717



1,559,915



1,378,617


Corporate expense


115,788



71,941



356,875



312,774


NV Energy exit expense


-



-



(40,629)



139,335


Preopening and start-up expenses 


52,967



61,631



118,475



140,075


Property transactions, net


27,629



12,361



50,279



17,078


Gain on Borgata transaction


-



(340)



-



(430,118)


Depreciation and amortization


249,357



233,052



993,480



849,527




2,401,846



2,210,825



9,204,401



7,902,952














Income from unconsolidated affiliates


28,002



32,028



145,989



527,616














Operating income


223,404



282,023



1,715,492



2,079,787














Non-operating income (expense):













Interest expense, net of amounts capitalized


(157,341)



(161,704)



(668,745)



(694,773)


Non-operating items from unconsolidated affiliates


(8,449)



(7,910)



(34,751)



(53,139)


Other, net


(16,535)



(4,983)



(48,241)



(72,698)




(182,325)



(174,597)



(751,737)



(820,610)














Income before income taxes


41,079



107,426



963,755



1,259,177


Benefit (provision) for income taxes


1,395,274



(37,504)



1,143,723



(22,299)














Net income


1,436,353



69,922



2,107,478



1,236,878


Less: Net income attributable to noncontrolling interests


(31,580)



(45,253)



(136,132)



(135,438)

Net income attributable to MGM Resorts International

$

1,404,773


$

24,669


$

1,971,346


$

1,101,440














Earnings per share:













Basic

$

2.45


$

0.04


$

3.41


$

1.94


Diluted

$

2.42


$

0.04


$

3.37


$

1.92














Weighted average common shares outstanding:













Basic


566,289



573,833



572,253



568,134


Diluted


572,420



579,176



578,795



573,317




MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)




















December 31,


December 31,




2017


2016









      ASSETS

Current assets:








Cash and cash equivalents

$

1,499,995


$

1,446,581


Accounts receivable, net


540,545



542,924


Inventories


102,292



97,733


Income tax receivable


42,551



-


Prepaid expenses and other


189,244



142,349



Total current assets


2,374,627



2,229,587









Property and equipment, net


19,635,459



18,425,023









Other assets:








Investments in and advances to unconsolidated affiliates


1,034,161



1,220,443


Goodwill 



1,806,531



1,817,119


Other intangible assets, net


3,877,960



4,087,706


Other long-term assets, net


430,440



393,423



Total other assets


7,149,092



7,518,691




$

29,159,178


$

28,173,301

















LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:







Accounts payable

$

255,028


$

250,477


Construction payable


474,807



270,361


Income tax payable


-



10,654


Current portion of long-term debt


158,042



8,375


Accrued interest on long-term debt


135,785



159,028


Other accrued liabilities


2,068,720



1,594,526



Total current liabilities


3,092,382



2,293,421









Deferred income taxes, net 


1,321,426



2,551,228

Long-term debt, net


12,751,052



12,979,220

Other long-term obligations


284,416



325,981

Redeemable noncontrolling interest


79,778



54,139

Stockholders' equity:







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







  issued and outstanding 566,275,789 and 574,123,706 shares 


5,663



5,741


Capital in excess of par value


5,330,058



5,653,575


Retained earnings


2,263,950



545,811


Accumulated other comprehensive income (loss)


(3,610)



15,053



Total MGM Resorts International stockholders' equity


7,596,061



6,220,180


Noncontrolling interests


4,034,063



3,749,132



Total stockholders' equity


11,630,124



9,969,312




$

29,159,178


$

28,173,301




MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)














Three Months Ended


Twelve Months Ended


December 31,


December 31,


December 31,


December 31,


2017


2016


2017


2016

Bellagio

$

313,361


$

333,123


$

1,342,801


$

1,338,626

MGM Grand Las Vegas


285,660



262,911



1,156,689



1,122,380

Mandalay Bay


185,593



199,006



951,703



934,110

The Mirage 


137,919



137,487



617,647



586,745

Luxor


87,924



99,466



401,051



391,634

New York-New York 


89,032



86,432



359,050



336,150

Excalibur


73,010



75,605



321,921



309,551

Monte Carlo


44,084



67,338



239,369



280,835

Circus Circus Las Vegas


56,055



60,607



251,696



248,313

MGM Grand Detroit


143,260



140,945



570,208



564,976

Beau Rivage


89,583



90,600



371,208



377,396

Gold Strike Tunica


41,366



39,369



170,858



163,535

Borgata (1)


196,180



197,456



850,766



348,462

MGM National Harbor (2)


186,883



53,005



717,436



53,005

  Domestic resorts


1,929,910



1,843,350



8,322,403



7,055,718

MGM China


548,602



499,685



1,970,494



1,920,487

Management and other operations


118,736



117,785



481,007



478,918


$

2,597,248


$

2,460,820


$

10,773,904


$

9,455,123





































MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)














Three Months Ended


Twelve Months Ended


December 31,


December 31,


December 31,


December 31,


2017


2016


2017


2016

Bellagio

$

107,764


$

118,280


$

504,855


$

479,259

MGM Grand Las Vegas


90,478



69,538



344,049



330,681

Mandalay Bay


27,965



34,988



258,321



235,609

The Mirage 


29,762



27,183



176,478



139,427

Luxor


23,923



27,062



126,568



108,192

New York-New York 


32,297



30,074



135,185



121,729

Excalibur


22,983



25,618



113,510



101,525

Monte Carlo


595



16,978



49,253



78,862

Circus Circus Las Vegas


12,517



15,754



70,257



61,989

MGM Grand Detroit


45,219



43,558



177,548



171,414

Beau Rivage


18,595



17,635



87,587



93,762

Gold Strike Tunica


11,813



11,378



53,562



49,690

Borgata (1)


44,158



45,182



283,353



81,281

MGM National Harbor (2)


27,724



9,596



134,293



9,596

  Domestic resorts


495,793



492,824



2,514,819



2,063,016

MGM China


147,414



137,549



524,953



520,736

Unconsolidated resorts (3)


28,002



32,028



145,989



527,616

Management and other operations


3,359



3,212



27,737



13,000


$

674,568


$

665,613


$

3,213,498


$

3,124,368


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

(2) For the three and twelve months ended December 31, 2016, represents net revenues and Adjusted Property EBITDA of MGM National Harbor for the month ended December 31, 2016 only

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




MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)



















Three Months Ended December 31, 2017




















Operating

income (loss)


NV Energy exit

expense


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA

Bellagio

$

84,406


$

-


$

-


$

79


$

23,279


$

107,764

MGM Grand Las Vegas


72,810



-



-



515



17,153



90,478

Mandalay Bay


1,608



-



-



329



26,028



27,965

The Mirage 


19,090



-



-



91



10,581



29,762

Luxor


12,894



-



-



956



10,073



23,923

New York-New York 


25,614



-



-



415



6,268



32,297

Excalibur


17,874



-



-



66



5,043



22,983

Monte Carlo


(31,540)



-



3,628



19,507



9,000



595

Circus Circus Las Vegas


7,981



-



-



175



4,361



12,517

MGM Grand Detroit


39,553



-



-



-



5,666



45,219

Beau Rivage


12,035



-



-



10



6,550



18,595

Gold Strike Tunica


9,512



-



-



113



2,188



11,813

Borgata


28,362



-



-



106



15,690



44,158

MGM National Harbor


4,773



-



115



-



22,836



27,724

  Domestic resorts


304,972



-



3,743



22,362



164,716



495,793

MGM China


42,535



-



41,782



5,078



58,019



147,414

Unconsolidated resorts (1)


28,002



-



-



-



-



28,002

Management and other operations


1,439



-



-



-



1,920



3,359



376,948



-



45,525



27,440



224,655



674,568

Stock compensation


(12,857)



-



-



-



-



(12,857)

Corporate 


(140,687)



-



7,442



189



24,702



(108,354)


$

223,404


$

-


$

52,967


$

27,629


$

249,357


$

553,357























































Three Months Ended December 31, 2016




















Operating

income (loss)


NV Energy exit

expense


Preopening and

start-up

expenses


Property

transactions, net

and gain on

Borgata

transaction


Depreciation and

amortization


Adjusted EBITDA

Bellagio

$

95,485


$

-


$

-


$

207


$

22,588


$

118,280

MGM Grand Las Vegas


50,521



-



82



596



18,339



69,538

Mandalay Bay


12,077



-



-



422



22,489



34,988

The Mirage 


16,736



-



-



441



10,006



27,183

Luxor


17,780



-



-



184



9,098



27,062

New York-New York 


24,693



-



2



31



5,348



30,074

Excalibur


20,809



-



-



818



3,991



25,618

Monte Carlo


3,083



-



1,421



925



11,549



16,978

Circus Circus Las Vegas


10,305



-



-



582



4,867



15,754

MGM Grand Detroit


37,836



-



-



(59)



5,781



43,558

Beau Rivage


11,582



-



-



(113)



6,166



17,635

Gold Strike Tunica


8,939



-



-



(36)



2,475



11,378

Borgata


15,786



-



39



8,573



20,784



45,182

National Harbor (2)


(13,626)



-



17,986



-



5,236



9,596

  Domestic resorts


312,006



-



19,530



12,571



148,717



492,824

MGM China


72,055



-



7,102



(339)



58,731



137,549

Unconsolidated resorts (1)


32,028



-



-



-



-



32,028

Management and other operations


1,055



-



-



29



2,128



3,212



417,144



-



26,632



12,261



209,576



665,613

Stock compensation


(13,525)



-



-



-



-



(13,525)

Corporate 


(121,596)



-



34,999



(240)



23,476



(63,361)


$

282,023


$

-


$

61,631


$

12,021


$

233,052


$

588,727


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

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




MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)


Twelve Months Ended December 31, 2017




















Operating

income (loss)


NV Energy exit

expense


Preopening and

start-up

expenses


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA

Bellagio

$

418,581


$

(6,970)


$

-


$

924


$

92,320


$

504,855

MGM Grand Las Vegas


279,205



(7,424)



6



1,752



70,510



344,049

Mandalay Bay


169,678



(8,524)



-



590



96,577



258,321

The Mirage 


140,363



(4,043)



-



304



39,854



176,478

Luxor


89,045



(3,394)



-



2,428



38,489



126,568

New York-New York 


108,102



(2,025)



(162)



720



28,550



135,185

Excalibur


97,331



(2,658)



-



485



18,352



113,510

Monte Carlo


(30,597)



(2,461)



6,532



33,510



42,269



49,253

Circus Circus Las Vegas


55,239



(3,130)



452



940



16,756



70,257

MGM Grand Detroit


154,801



-



-



-



22,747



177,548

Beau Rivage


62,352



-



-



370



24,865



87,587

Gold Strike Tunica


44,402



-



-



91



9,069



53,562

Borgata


208,628



-



1,430



1,417



71,878



283,353

MGM National Harbor


51,183



-



366



-



82,744



134,293

  Domestic resorts


1,848,313



(40,629)



8,624



43,531



654,980



2,514,819

MGM China


193,619



-



86,970



6,286



238,078



524,953

Unconsolidated resorts (1)


145,989



-



-



-



-



145,989

Management and other operations


19,812



-



-



-



7,925



27,737



2,207,733



(40,629)



95,594



49,817



900,983



3,213,498

Stock compensation


(50,365)



-



-



-



-



(50,365)

Corporate 


(441,876)



-



22,881



462



92,497



(326,036)


$

1,715,492


$

(40,629)


$

118,475


$

50,279


$

993,480


$

2,837,097























































Twelve Months Ended December 31, 2016




















Operating

income (loss)


NV Energy exit

expense


Preopening and

start-up

expenses


Property

transactions, net

and gain on

Borgata

transaction


Depreciation and

amortization


Adjusted EBITDA

Bellagio

$

366,543


$

23,815


$

-


$

118


$

88,783


$

479,259

MGM Grand Las Vegas


231,327



25,365



82



1,719



72,188



330,681

Mandalay Bay


114,202



29,123



252



2,377



89,655



235,609

The Mirage 


85,300



13,813



-



44



40,270



139,427

Luxor


57,653



11,594



1,625



708



36,612



108,192

New York-New York 


93,169



7,439



479



210



20,432



121,729

Excalibur


71,885



9,083



-



4,405



16,152



101,525

Monte Carlo


33,291



8,409



1,929



1,131



34,102



78,862

Circus Circus Las Vegas


33,516



10,694



-



816



16,963



61,989

MGM Grand Detroit


147,865



-



-



(59)



23,608



171,414

Beau Rivage


68,054



-



-



(172)



25,880



93,762

Gold Strike Tunica


39,831



-



-



67



9,792



49,690

Borgata (2)


38,616



-



90



8,652



33,923



81,281

National Harbor (3)


(13,626)



-



17,986



-



5,236



9,596

  Domestic resorts


1,367,626



139,335



22,443



20,016



513,596



2,063,016

MGM China


255,264



-



27,848



(216)



237,840



520,736

Unconsolidated resorts (1) (4)


524,448



-



3,168



-



-



527,616

Management and other operations


4,316



-



1,150



29



7,505



13,000



2,151,654



139,335



54,609



19,829



758,941



3,124,368

Stock compensation


(44,957)



-



-



-



-



(44,957)

Corporate 


(26,910)



-



85,466



(432,869)



90,586



(283,727)


$

2,079,787


$

139,335


$

140,075


$

(413,040)


$

849,527


$

2,795,684


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

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

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

(4) Includes the Company's share of Borgata results for the seven months ended July 31, 2016




MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO ADJUSTED EBITDA

(In thousands)

(Unaudited)
















Three Months Ended


Twelve Months Ended



December 31,


December 31,


December 31,


December 31,



2017


2016


2017


2016

Net income attributable to MGM Resorts International

$

1,404,773


$

24,669


$

1,971,346


$

1,101,440

  Plus: Net income attributable to noncontrolling interests


31,580



45,253



136,132



135,438

Net income


1,436,353



69,922



2,107,478



1,236,878

  Provision (benefit) for income taxes


(1,395,274)



37,504



(1,143,723)



22,299

Income before income taxes


41,079



107,426



963,755



1,259,177














Non-operating (income) expense:












  Interest expense, net of amounts capitalized


157,341



161,704



668,745



694,773

  Other, net


24,984



12,893



82,992



125,837




182,325



174,597



751,737



820,610














Operating income


223,404



282,023



1,715,492



2,079,787

  NV Energy exit expense


-



-



(40,629)



139,335

  Preopening and start-up expenses


52,967



61,631



118,475



140,075

  Property transactions, net


27,629



12,361



50,279



17,078

  Gain on Borgata transaction


-



(340)



-



(430,118)

  Depreciation and amortization


249,357



233,052



993,480



849,527

Adjusted EBITDA

$

553,357


$

588,727


$

2,837,097


$

2,795,684




























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)
















Three Months Ended


Twelve Months Ended



December 31,


December 31,


December 31,


December 31,



2017


2016


2017


2016

Domestic resorts Adjusted Property EBITDA

$

495,793


$

492,824


$

2,514,819


$

2,063,016

  Adjusted Property EBITDA related to Borgata


-



-



(283,353)



(81,281)

  Adjusted Property EBITDA related to MGM National Harbor 


(27,724)



(9,596)



(134,293)



(9,596)

Domestic resorts same-store Adjusted Property EBITDA

$

468,069


$

483,228


$

2,097,173


$

1,972,139






























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES


SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP


(Unaudited)
















Three Months Ended


Twelve Months Ended



December 31,


December 31,


December 31,


December 31,



2017


2016


2017


2016


Bellagio













   Occupancy %


88.1%



91.0%



92.9%



93.5%


   Average daily rate (ADR)


$280



$278



$283



$275


   Revenue per available room (REVPAR)


$247



$253



$263



$257















MGM Grand Las Vegas













   Occupancy %


87.5%



89.5%



92.1%



93.2%


   ADR


$177



$179



$189



$181


   REVPAR


$155



$160



$174



$169















Mandalay Bay 













   Occupancy %


80.5%



85.8%



90.0%



91.5%


   ADR


$195



$199



$215



$209


   REVPAR


$157



$170



$193



$192















The Mirage













   Occupancy %


90.5%



92.6%



94.2%



95.1%


   ADR


$178



$168



$178



$170


   REVPAR


$161



$156



$168



$162















Luxor 













   Occupancy %


89.7%



90.9%



93.9%



95.3%


   ADR


$109



$115



$118



$112


   REVPAR


$98



$105



$111



$106















New York-New York













   Occupancy %


94.8%



95.1%



96.2%



97.5%


   ADR


$141



$141



$147



$139


   REVPAR


$134



$134



$142



$136















Excalibur 













   Occupancy %


87.4%



89.5%



92.4%



93.7%


   ADR


$94



$100



$102



$97


   REVPAR


$82



$89



$94



$91















Monte Carlo 













   Occupancy %


73.3%



91.3%



89.5%



96.1%


   ADR


$129



$129



$127



$126


   REVPAR


$95



$118



$114



$121















Circus Circus Las Vegas













   Occupancy %


76.5%



81.6%



84.0%



84.2%


   ADR


$79



$83



$85



$80


   REVPAR


$60



$68



$71



$67




CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)



















Three Months Ended


Twelve Months Ended






December 31,


December 31,


December 31,


December 31,






2017


2016


2017


2016





















Aria

$

261,288


$

255,682


$

1,076,102


$

1,012,259





Vdara


28,432



28,815



123,907



119,367





Mandarin Oriental


15,806



16,542



67,544



65,763





 Resort operations


305,526



301,039



1,267,553



1,197,389





Other


-



32



-



2,676






$

305,526


$

301,071


$

1,267,553


$

1,200,065




















































CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(In thousands)

(Unaudited)



















Three Months Ended


Twelve Months Ended






December 31,


December 31,


December 31,


December 31,






2017


2016


2017


2016




Net income

$

13,796


$

18,933


$

131,216


$

348,373




 Less: Income from discontinued operations


-



(7,673)



-



(407,187)




Income (loss) from continuing operations


13,796



11,260



131,216



(58,814)




















Non-operating (income) expense:















  Interest expense, net of amounts capitalized


15,887



14,510



60,094



61,032




  Other, net


(506)



106



2,789



3,323







15,381



14,616



62,883



64,355




















Operating income


29,177



25,876



194,099



5,541




  NV Energy exit expense 


-



-



(8,250)



26,089




  Property transactions, net


8,378



6,468



9,541



4,529




  Depreciation and amortization


58,922



57,301



224,358



313,787




Adjusted EBITDA

$

96,477


$

89,645


$

419,748


$

349,946






















CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

















Three Months Ended December 31, 2017



















Operating income

(loss)


NV Energy exit

expense


Property

transactions, net


Depreciation

and amortization


Adjusted

EBITDA


Aria

$

31,949


$

-


$

7,876


$

48,656


$

88,481


Vdara


406



-



502



7,141



8,049


Mandarin Oriental


(2,237)



-



-



3,125



888


 Resort operations


30,118



-



8,378



58,922



97,418


Other


(941)



-



-



-



(941)



$

29,177


$

-


$

8,378


$

58,922


$

96,477

















































Three Months Ended December 31, 2016



















Operating income

(loss)


NV Energy exit

expense


Property

transactions, net


Depreciation

and amortization


Adjusted

EBITDA


Aria

$

25,875


$

-


$

6,468


$

47,178


$

79,521


Vdara


2,023



-



-



6,996



9,019


Mandarin Oriental


(1,027)



-



-



3,127



2,100


 Resort operations


26,871



-



6,468



57,301



90,640


Other


(995)



-



-



-



(995)



$

25,876


$

-


$

6,468


$

57,301


$

89,645




CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)
















Twelve Months Ended December 31, 2017

















Operating

income (loss)


NV Energy exit

expense


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA

Aria

$

192,497


$

(8,250)


$

8,881


$

184,124


$

377,252

Vdara


11,268



-



660



27,773



39,701

Mandarin Oriental


(5,543)



-



-



12,461



6,918

 Resort operations


198,222



(8,250)



9,541



224,358



423,871

Other


(4,123)



-



-



-



(4,123)


$

194,099


$

(8,250)


$

9,541


$

224,358


$

419,748














































Twelve Months Ended December 31, 2016

















Operating

income (loss)


NV Energy exit

expense


Property

transactions, net


Depreciation and

amortization


Adjusted EBITDA

Aria

$

7,920


$

23,320


$

5,993


$

273,465


$

310,698

Vdara


6,672



1,676



(253)



27,861



35,956

Mandarin Oriental


(7,094)



1,093



-



12,461



6,460

 Resort operations


7,498



26,089



5,740



313,787



353,114

Other


(1,957)



-



(1,211)



-



(3,168)


$

5,541


$

26,089


$

4,529


$

313,787


$

349,946














































CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

















Three Months Ended


Twelve Months Ended





December 31,


December 31,


December 31,


December 31,





2017


2016


2017


2016




Aria















   Occupancy %


87.0%



91.2%



91.4%



92.7%




   ADR


$253



$239



$258



$242




   REVPAR


$220



$218



$236



$224



















Vdara















   Occupancy %


85.4%



85.5%



89.5%



90.8%




   ADR


$203



$213



$212



$205




   REVPAR


$173



$182



$190



$186




Cision View original content:http://www.prnewswire.com/news-releases/mgm-resorts-international-reports-fourth-quarter-and-full-year-financial-and-operating-results-300600985.html

SOURCE MGM Resorts International

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