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

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

Announces 8% Increase to Quarterly Cash Dividend

PR Newswire

LAS VEGAS, Feb. 13, 2019 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter and year ended December 31, 2018. On January 1, 2018, the Company adopted the new revenue recognition accounting standard (ASC 606). As such, certain previously reported 2017 numbers have been retrospectively adjusted under the new standard to assist with comparability to the prior period.

Fourth Quarter 2018 Financial and Strategic Highlights:

Consolidated Results

  • Consolidated net revenues increased 18% compared to the prior year quarter to $3.1 billion;
  • Consolidated operating income increased 50% compared to the prior year quarter to $336 million;
  • Net loss attributable to MGM Resorts of $23 million, compared to net income of $1.4 billion in the prior year quarter;
  • Diluted loss per share of $0.06 in the current quarter compared to diluted earnings per share of $2.39 in the prior year quarter;
  • The current quarter included a non-recurring, non-cash income tax expense of $92 million, $0.17 per share on a diluted basis, primarily resulting from recently issued guidance on certain international provisions of the U.S. Tax Cut and Jobs Act ("Tax Act"), including the treatment of foreign tax credits resulting from Global Intangible Low-Taxed Income and other provisions impacting foreign tax credit utilization. The prior year quarter included a non-recurring, non-cash income tax benefit of $2.50 per share on a diluted basis, due to enactment of the Tax Act at the end of 2017; and
  • Consolidated Adjusted Property EBITDA increased 21% compared to the prior year quarter to $821 million.

Las Vegas Strip Resorts

  • Net revenues increased 6% to $1.4 billion compared to the prior year quarter;
  • REVPAR(1) increased 8.2% compared to the prior year quarter; and
  • Adjusted Property EBITDA(2) of $401 million, a 15% increase compared to $349 million in the prior year quarter and Adjusted Property EBITDA margin of 29.1%, a 222 basis point increase compared to the prior year quarter. Excluding insurance proceeds of $24 million in the current year quarter, Adjusted Property EBITDA increased 8% and Adjusted Property EBITDA margin increased 51 basis points compared to the prior year quarter.

Regional Operations

  • Net revenues increased 18% to $782 million including contributions from the opening of MGM Springfield on August 24, 2018 of $78 million; and
  • Adjusted Property EBITDA of $195 million, a 32% increase compared the prior year quarter and Adjusted Property EBITDA margin of 24.9% in the current quarter, a 277 basis point increase compared to the prior year quarter. The prior year quarter was negatively affected by a $15 million real estate transfer tax charge at MGM National Harbor.

MGM China

  • Net revenues increased 33% to $687 million including contributions from the opening of MGM Cotai of $287 million; and
  • Adjusted Property EBITDA of $167 million, an 11% increase compared to the prior year quarter, reflecting the opening of MGM Cotai.

Strategic Highlights

  • Distributed $63 million to shareholders via the Company's quarterly dividend of $0.12 per share; and
  • Repurchased $150 million of the Company's common stock in the fourth quarter.

"We had a strong finish to the year, driving growth across all Las Vegas segments in the fourth quarter. Our fourth quarter consolidated net revenues grew by 18% and our consolidated Adjusted EBITDA by 21%, before certain one-time benefits," said Jim Murren, Chairman and CEO of MGM Resorts International. "Our Las Vegas Strip Resorts achieved the best fourth quarter Adjusted Property EBITDA since 2007. We also continued to gain share within our regional markets and realized record fourth quarter revenues and Adjusted Property EBITDA performance at MGM Grand Detroit, MGM National Harbor, Beau Rivage, and Gold Strike Tunica. Additionally, we closed out the year with the official openings of Park MGM and NoMad Las Vegas, both of which have received overwhelmingly positive responses.

"Looking ahead, we remain highly focused on our strategic priorities, including maximizing the performance of our premier properties, driving consolidated free cash flow growth and successfully executing MGM 2020 – our recently announced plan dedicated to improving efficiencies, reducing costs, and investing in key technologies to position the Company for further profitability. Through MGM 2020, we are reinvesting in our business and we expect to begin to see the financial benefits in the back half of 2019," Mr. Murren continued. "We also remain committed to targeted growth opportunities such as sports betting and the pursuit of an Integrated Resort in Japan. Importantly, we will continue to prudently allocate capital, with a focus of returning excess cash to shareholders."

Full Year 2018 Financial and Strategic Highlights:

  • Consolidated net revenues for 2018 of $11.8 billion, an increase of 9% compared to the prior year; with Las Vegas Strip Resorts net revenues decreasing 1%, Regional Operations net revenues increasing 8%, and MGM China net revenues increasing 32%;
  • Consolidated operating income of $1.5 billion in 2018 compared to $1.7 billion in 2017;
  • Net income attributable to MGM Resorts of $467 million, compared to $2.0 billion in the prior year;
  • The current year included non-recurring, non-cash income tax expense of $20 million for Tax Act adjustments, including the impact of recently issued guidance on certain international provisions mentioned above. The prior year included a non-recurring, non-cash income tax benefit of $1.4 billion due to enactment of the Tax Act;
  • Consolidated Adjusted Property EBITDA increased 1% compared to the prior year to $3.3 billion;
  • Las Vegas Strip Resorts Adjusted Property EBITDA of $1.7 billion, a 4% decrease compared to the prior year;
  • Regional Operations Adjusted Property EBITDA of $759 million, a 4% increase over the prior year;
  • MGM China Adjusted Property EBITDA of $568 million, a 6% increase over the prior year;
  • Distributed $261 million to shareholders during 2018 via the Company's quarterly dividend of $0.12 per share; and
  • Repurchased $1.3 billion of the Company's common stock during 2018.

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,


2018



2017


Preopening and start-up expenses


$

(0.03)



$

(0.05)


Property transactions, net



(0.03)




(0.03)


Business interruption insurance proceeds



0.04





Non-operating expense:









Loss on retirement of long-term debt






(0.02)


Non-operating items from unconsolidated affiliates:









Change in fair value of CityCenter swaps



(0.01)





Las Vegas Strip Resorts and Regional Operations

Casino revenue for the fourth quarter of 2018 decreased 3% compared to the prior year quarter at the Company's Las Vegas Strip Resorts partially due to lower table games hold, and increased 20% at the Company's Regional Operations due primarily to the opening of MGM Springfield and an increase in slots and table games win at MGM National Harbor.

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

Three Months Ended December 31,


2018



2017


%
change




(Dollars in millions)





Table Games Drop


$

1,010



$

909



11

%

Table Games Win %



22.0

%



25.3

%




Slots Handle


$

3,343



$

3,129



7

%

Slots Hold %



9.1

%



8.9

%




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

Three Months Ended December 31,


2018



2017


%
change




(Dollars in millions)





Table Games Drop


$

1,093



$

958



14

%

Table Games Win %



20.6

%



18.5

%




Slots Handle


$

5,525



$

4,846



14

%

Slots Hold %



9.2

%



9.0

%




Rooms revenue increased 10% compared to the prior year quarter at the Company's Las Vegas Strip Resorts. Las Vegas Strip Resorts REVPAR increased 8.2% 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,


2018



2017


%

change

Occupancy %



89

%



85

%




Average Daily Rate (ADR)


$

159



$

153



4

%

Revenue per Available Room (REVPAR)


$

141



$

130



8

%

Food and beverage revenue increased 11% at the Company's Las Vegas Strip Resorts compared to the prior year quarter due to an increase in catering and banquets revenues and the opening of new outlets at Park MGM. Food and beverage revenue increased 17% at the Company's Regional Operations due primarily to the opening of MGM Springfield.

Operating income at the Company's Las Vegas Strip Resorts was $282 million, compared to $211 million in the prior year quarter. The current year quarter benefited from increases in rooms and food and beverage revenues discussed above, included business interruption insurance proceeds of $24 million primarily at Mandalay Bay and was negatively impacted by $14 million of preopening expenses at Park MGM. Las Vegas Strip Resorts operating income in the prior year quarter included a $20 million asset disposal charge related to the repositioning and rebranding at Park MGM. Las Vegas Strip Resorts Adjusted Property EBITDA was $401 million, a 15% increase compared to $349 million in the prior year quarter. Excluding business interruption insurance proceeds discussed above, Adjusted Property EBITDA increased 8% compared to the prior year quarter.

Operating income at the Company's Regional Operations was $133 million in the current quarter and benefited from an increase in casino revenues at MGM National Harbor discussed above. Operating income was $94 million in the prior year quarter, which was impacted by a $15 million real estate transfer tax charge at MGM National Harbor. Regional Operations Adjusted Property EBITDA was $195 million, a 32% increase compared to $147 million in the prior year quarter.

Corporate Expense

Corporate expense, including share-based compensation for corporate employees, was $118 million in the fourth quarter of 2018, an increase of $2 million compared to the prior year quarter. The current quarter included $8 million in costs incurred to implement MGM 2020 and finance modernization initiatives and $5 million of MGM China corporate expense.

MGM China

Key fourth quarter results for MGM China include:

  • Net revenues of $687 million, a 33% increase compared to the prior year quarter. The current quarter benefited from the opening of MGM Cotai in February 2018, which contributed $287 million of net revenues;
  • Main floor table games win increased 31% compared to the prior year quarter due to the opening of MGM Cotai;
  • VIP table games win increased 18% compared to the prior year quarter due to the opening of VIP junket rooms in September 2018 at MGM Cotai;
  • Operating income was $62 million in the current quarter compared to $45 million in the prior year quarter;
  • Adjusted Property EBITDA increased 11% to $167 million compared to $150 million in the prior year quarter. The current quarter included $12 million of license fee expense compared to $10 million in the prior year quarter; and
  • Operating margin was 9.0% in the current year quarter, and Adjusted Property EBITDA margin was 24.3% in the current quarter compared to 29.1% in the prior year quarter, due primarily to the ramp up of operations at MGM Cotai.

The following table shows key gaming statistics for MGM China:

Three Months Ended December 31,


2018



2017


%
change




(Dollars in millions)





VIP Table Games Turnover


$

10,981



$

9,839



12

%

VIP Table Games Win %



3.3

%



3.1

%




Main Floor Table Games Drop


$

2,034



$

1,400



45

%

Main Floor Table Games Win %



19.0

%



21.0

%




Unconsolidated Affiliates

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

Three Months Ended December 31,


2018



2017




(In thousands)


CityCenter


$

31,089



$

23,643


Other



1,400




4,384




$

32,489



$

28,027


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

  • Net revenues were $335 million, a 13% increase compared to the prior year quarter, due to an increase in casino, rooms and food and beverage revenues;
  • Aria's table games win increased 16%, due to a 22% increase in table games drop partially offset by a decrease in table games hold percentage to 24.0% in the current quarter compared to 25.4% in the prior year quarter;
  • Aria's slots win increased 6% compared to the prior year quarter due primarily to an increase in slots handle;
  • REVPAR at Aria increased 12% compared to the prior year quarter to $238;
  • REVPAR at Vdara increased 14% compared to the prior year quarter to $192;
  • Operating income from resort operations was $46 million compared to operating income of $32 million in the prior year quarter; and
  • Adjusted EBITDA from resort operations was $111 million, a 15% increase compared to the prior year quarter.

MGM Growth Properties

During the fourth quarter of 2018, the Company made rent payments to MGM Growth Properties Operating Partnership LP ("MGP Operating Partnership") in the amount of $193 million and received distributions of $85 million from the MGP Operating Partnership. In December 2018, the Board of Directors of MGM Growth Properties LLC ("MGP") approved a quarterly dividend of $0.4475 per Class A share (based on a $1.79 dividend on an annualized basis) totaling $32 million, which represents an increase of $0.11 per share year to date, and a total increase of 6.5% year to date, which was paid on January 15, 2019 to holders of record on December 31, 2018. The Company concurrently received an $87 million distribution attributable to its ownership of MGP Operating Partnership units.

In the current quarter, the Company recorded within Management and other operations $67 million in net revenues and $23 million in Adjusted Property EBITDA related to MGP's Northfield casino.

MGM Resorts Dividend and Share Repurchases

On February 13, 2019, the Company's Board of Directors approved a quarterly dividend of $0.13 per share totaling approximately $70 million. The dividend will be payable on March 15, 2019 to holders of record on March 8, 2019.

During the fourth quarter, MGM Resorts repurchased approximately 6 million shares of its common stock at an average price of $25.13 per share for an aggregate amount of $150 million. Approximately $1.4 billion remains available under the $2.0 billion share repurchase program. All shares repurchased under the Company's program have been retired.

Full Year 2018 Results

Consolidated net revenue for 2018 was $11.8 billion, a 9% increase over 2017. Consolidated operating income was $1.5 billion compared to $1.7 billion in the prior year. Net income attributable to MGM Resorts was $467 million, which included non-recurring, non-cash income tax expense of $20 million for Tax Act adjustments, including the impact of recently issued guidance on certain international provisions mentioned above, compared to $2.0 billion in the prior year which included a non-recurring, non-cash income tax benefit of $1.4 billion due to the Tax Act. Consolidated Adjusted Property EBITDA was $3.3 billion in the current year, a 1% increase compared to the prior year.

Las Vegas Strip Resorts net revenue was $5.7 billion in both the current and prior year periods. Operating income of $1.2 billion at the Company's Las Vegas Strip Resorts was negatively affected by disruption related to the repositioning and rebranding at Park MGM. The prior year benefited from $41 million related to the NV Energy exit fee modification. Las Vegas Strip Resorts Adjusted Property EBITDA was $1.7 billion, a 4% decrease compared to the prior year.

Regional Operations net revenue increased 8% to $2.9 billion including contributions from the opening of MGM Springfield in August 2018 of $120 million, compared to $2.7 billion in the prior year. Operating income at the Company's Regional Operations was $518 million in the current year compared to $517 million in the prior year, and Adjusted Property EBITDA was $759 million, a 4% increase compared to the prior year.

MGM China net revenue was $2.4 billion for 2018, a 32% increase from 2017. The current year benefited from the opening of MGM Cotai in February 2018, which contributed $729 million of net revenues. MGM China operating income was $216 million compared to $204 million in the prior year. MGM China Adjusted EBITDA was $568 million compared to $536 million in the prior year, a 6% increase from 2017.

CityCenter reported net revenues of $1.3 billion, a 4% increase compared to the prior year. Operating income from resort operations was $191 million compared to $204 million in the prior year, which included a benefit of $8 million from the NV Energy exit fee modification. Adjusted EBITDA related to resort operations was $419 million compared to $417 million in the prior year. During 2018, CityCenter sold the Mandarin Oriental Las Vegas and adjacent retail parcels for $214 million in cash and recorded a loss on sale of $133 million, the majority of which was recognized during the first quarter. MGM Resorts recorded a $12 million gain related to the reversal of basis differences in excess of its share of the loss recorded by CityCenter. CityCenter paid dividends of $625 million during 2018, of which MGM Resorts received its 50% share, or $312.5 million.

During the year ended December 31, 2018, the Company made rent payments to the MGP Operating Partnership in the amount of $767 million. During the year ended December 31, 2018 the Company received $333 million of distributions attributable to its ownership of units in the MGP Operating Partnership.

Diluted earnings per share was $0.81 in the current year, compared to $3.34 in 2017. The current year included non-recurring, non-cash income tax expense of $20 million, or $0.04 per share on a diluted basis for Tax Act adjustments, including the impact of recently issued guidance on certain international provisions mentioned above. The prior year included a non-recurring, non-cash income tax benefit of $1.4 billion, or $2.47 per share on a diluted basis, due to enactment of the Tax Act.

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,

2018





2017


Borgata property tax settlement

$





$

0.04


NV Energy exit expense







0.05


Preopening and start-up expenses


(0.18)






(0.11)


Property transactions, net


(0.06)






(0.05)


Gain on sale of Grand Victoria


0.06







Business interruption insurance proceeds


0.03







Income from unconsolidated affiliates:










Gain on the sale of Mandarin Oriental Las Vegas


0.02







Non-operating expense:










Loss on retirement of long-term debt







(0.07)


Non-operating items from unconsolidated affiliates:










Change in fair value of CityCenter swaps


(0.01)







Financial Position

The Company's cash balance at December 31, 2018 was $1.5 billion, which included $510 million at MGM China and $60 million at the MGP Operating Partnership. At December 31, 2018, the Company had $15.3 billion of principal amount of indebtedness outstanding, including $750 million outstanding under its $2.3 billion senior secured credit facility, $2.8 billion outstanding under the $3.6 billion MGP Operating Partnership senior secured credit facility and $2.4 billion outstanding under the $2.8 billion MGM China credit facility.

In December 2018, MGM Resorts amended its credit facility for an increase in the total revolving credit commitments to $1.5 billion and an increase in the total term loan A commitment to $750 million and extended the maturity date to 2023. In addition, the revolving and term loan A facilities were repriced at LIBOR plus 1.50% to 2.25% determined by reference to a net leverage ratio pricing grid.

"In 2018, we were active in the debt capital markets, extending MGM Resorts' and MGM China's maturities, returned $1.5 billion to shareholders, announced two accretive transactions that provide entry into New York and Ohio, and announced the Park MGM transaction with MGP," said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Resorts. "We remain focused on enhancing our free cash flow generation and managing our balance sheet to achieve our consolidated net leverage target of 3 to 4 times by year end 2020."

Conference Call Details

MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today which will include a brief discussion of the results followed by a question and answer period. The call will be accessible via the Internet through http://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 3924102. A replay of the call will be available through Wednesday, February 20, 2019. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10127989. 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 and property transactions, net. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense, which are not allocated to each property. "Adjusted Property EBITDA margin" is Adjusted Property EBITDA divided by net revenues. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.

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

Adjusted EBITDA, Adjusted Property EBITDA and Adjusted Property EBITDA margin 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 Adjusted Property EBITDA margin. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA, or Adjusted Property EBITDA margin information may calculate Adjusted EBITDA, Adjusted Property EBITDA, or Adjusted Property EBITDA margin in a different manner.

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.

The Company does not provide reconciliations of Adjusted EBITDA, Adjusted Property EBITDA, or Adjusted Property EBITDA margin 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 Adjusted Property EBITDA margin.

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 29 unique hotel and destination gaming offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company acquired the operations of Empire City Casino in New York in 2019, and in 2018, opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai. The over 82,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information visit us at www.mgmresorts.com.

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding future results and the Company's financial outlook (including any guidance), the Company's ability to generate free cash flow growth, return capital to shareholders and further de-lever, and the Company's ability to execute its strategic plan, capital allocations strategy, and deliver on its 2020 goals. 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,




2018


2017


2018


2017

Revenues:














Casino


$

1,561,240


$

1,289,145


$

5,753,150


$

5,016,426


Rooms



542,903



479,180



2,212,573



2,152,741


Food and beverage



488,029



413,912



1,959,021



1,871,969


Entertainment, retail and other



349,718



315,214



1,412,860



1,354,301


Reimbursed costs



110,972



100,154



425,492



402,042





3,052,862



2,597,605



11,763,096



10,797,479

Expenses:














Casino



876,261



704,142



3,199,775



2,673,397


Rooms



193,329



180,499



791,761



748,947


Food and beverage



380,403



324,482



1,501,868



1,414,611


Entertainment, retail and other



265,860



232,787



999,979



954,125


Reimbursed costs



110,972



100,154



425,492



402,042


General and administrative



444,878



414,415



1,764,638



1,559,575


Corporate expense



118,168



115,786



419,204



356,872


Preopening and start-up expenses 



18,508



52,967



151,392



118,475


Property transactions, net



28,679



27,629



9,147



50,279


NV Energy exit expense



-



-



-



(40,629)


Depreciation and amortization



312,542



249,357



1,178,044



993,480





2,749,600



2,402,218



10,441,300



9,231,174















Income from unconsolidated affiliates



32,489



28,027



147,690



146,222















Operating income



335,751



223,414



1,469,486



1,712,527















Non-operating income (expense):














Interest expense, net of amounts capitalized



(214,538)



(157,341)



(769,513)



(668,745)


Non-operating items from unconsolidated affiliates



(16,166)



(8,449)



(47,827)



(34,751)


Other, net



(6,552)



(16,535)



(18,140)



(48,241)





(237,256)



(182,325)



(835,480)



(751,737)















Income before income taxes



98,495



41,089



634,006



960,790


Benefit (provision) for income taxes



(92,735)



1,377,904



(50,112)



1,127,394















Net income



5,760



1,418,993



583,894



2,088,184


Less: Net income attributable to noncontrolling interests



(29,087)



(31,580)



(117,122)



(136,132)

Net income (loss) attributable to MGM Resorts International


$

(23,327)


$

1,387,413


$

466,772


$

1,952,052















Earnings (loss) per share:














Basic


$

(0.06)


$

2.42


$

0.82


$

3.38


Diluted


$

(0.06)


$

2.39


$

0.81


$

3.34















Weighted average common shares outstanding:














Basic



528,922



566,289



544,253



572,253


Diluted



528,922



572,420



549,536



578,795

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)





























December 31,


December 31,







2018


2017












      ASSETS

Current assets:








Cash and cash equivalents


$

1,526,762


$

1,499,995


Accounts receivable, net



657,206



542,273


Inventories



110,831



102,292


Income tax receivable



28,431



42,551


Prepaid expenses and other



203,548



189,244


Total current assets



2,526,778



2,376,355









Property and equipment, net



20,729,888



19,635,459









Other assets:








Investments in and advances to unconsolidated affiliates



732,867



1,033,297


Goodwill 



1,821,392



1,806,531


Other intangible assets, net



3,944,463



3,877,960


Other long-term assets, net



455,318



430,440


Total other assets



6,954,040



7,148,228







$

30,210,706


$

29,160,042























LIABILITIES AND STOCKHOLDERS' EQUITY












Current liabilities:








Accounts payable


$

302,578


$

255,028


Construction payable



311,793



474,807


Current portion of long-term debt



43,411



158,042


Accrued interest on long-term debt



140,046



135,785


Other accrued liabilities



2,151,054



2,114,635


Total current liabilities



2,948,882



3,138,297









Deferred income taxes, net 



1,342,538



1,295,375

Long-term debt, net



15,088,005



12,751,052

Other long-term obligations



259,240



284,416

Redeemable noncontrolling interest



102,250



79,778

Stockholders' equity:








  Common stock, $.01 par value: authorized 1,000,000,000 shares, 
  
issued and outstanding 527,479,528 and 566,275,789 shares 



5,275



5,663


Capital in excess of par value



4,092,085



5,357,709


Retained earnings



2,423,479



2,217,299


Accumulated other comprehensive loss



(8,556)



(3,610)


Total MGM Resorts International stockholders' equity



6,512,283



7,577,061


Noncontrolling interests



3,957,508



4,034,063


Total stockholders' equity



10,469,791



11,611,124





$

30,210,706


$

29,160,042

 

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,



2018


2017


2018


2017

Bellagio


$

338,612


$

319,328


$

1,367,835


$

1,365,571

MGM Grand Las Vegas



281,156



290,660



1,226,105



1,179,681

Mandalay Bay



222,677



191,604



965,435



982,280

The Mirage 



146,431



140,898



597,404



629,497

Luxor



89,753



88,852



394,034



405,057

New York-New York 



94,205



89,994



373,266



362,964

Excalibur



80,081



73,853



327,572



325,654

Park MGM



62,954



44,457



213,205



241,578

Circus Circus Las Vegas



59,829



56,666



251,816



253,841

  Las Vegas Strip Resorts



1,375,698



1,296,312



5,716,672



5,746,123

MGM Grand Detroit



152,281



143,403



601,499



570,329

Beau Rivage



102,169



92,150



410,237



381,274

Gold Strike Tunica



44,277



42,065



173,953



173,051

Borgata



192,130



199,680



827,616



864,996

MGM National Harbor



213,606



187,899



800,777



720,070

MGM Springfield (1)



77,890



-



120,439



-

 Regional Operations



782,353



665,197



2,934,521



2,709,720

MGM Macau



399,456



516,768



1,721,199



1,858,160

MGM Cotai



287,276



-



728,758



-

  MGM China



686,732



516,768



2,449,957



1,858,160

Management and other operations 



208,079



119,328



661,946



483,476



$

3,052,862


$

2,597,605


$

11,763,096


$

10,797,479








































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,



2018


2017


2018


2017

Bellagio


$

118,150


$

107,885


$

489,866


$

505,736

MGM Grand Las Vegas



72,720



90,671



371,566



344,685

Mandalay Bay



71,326



27,955



265,741



258,471

The Mirage 



32,149



30,016



131,864



176,996

Luxor



26,219



23,945



120,749



126,650

New York-New York 



35,158



32,226



137,622



135,036

Excalibur



27,149



22,989



111,255



113,561

Park MGM



4,514



575



14,290



49,191

Circus Circus Las Vegas



13,336



12,554



62,526



70,274

  Las Vegas Strip Resorts



400,721



348,816



1,705,479



1,780,600

MGM Grand Detroit



48,851



45,088



195,817



176,280

Beau Rivage



27,000



18,752



103,906



87,778

Gold Strike Tunica



12,604



11,794



52,081



52,882

Borgata



43,439



43,920



198,394



281,170

MGM National Harbor



56,780



27,675



195,109



133,806

MGM Springfield (1)



6,145



-



13,789



-

 Regional Operations



194,819



147,229



759,096



731,916

MGM Macau (2)



114,262



150,305



478,121



535,524

MGM Cotai



52,360



-



90,173



-

  MGM China



166,622



150,305



568,294



535,524

Unconsolidated resorts (3)



32,489



28,027



147,690



146,222

Management and other operations 



26,476



3,087



74,790



26,838



$

821,127


$

677,464


$

3,255,349


$

3,221,100















(1) For the twelve months ended December 31, 2018, represents net revenues and Adjusted Property EBITDA of MGM Springfield for the period August 1-December 31 only.          

(2) In 2017, MGM Macau included certain expenses classified as corporate expense in 2018.

(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 December 31, 2018
























Operating
income (loss)


NV Energy exit
expense


Preopening and
start-up
expenses


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Bellagio



$

101,122


$

-


$

-


$

829


$

16,199


$

118,150

MGM Grand Las Vegas




55,528



-



-



106



17,086



72,720

Mandalay Bay




47,697



-



-



834



22,795



71,326

The Mirage 




23,358



-



-



3



8,788



32,149

Luxor




16,729



-



114



283



9,093



26,219

New York-New York 




28,772



-



-



70



6,316



35,158

Excalibur




22,195



-



-



10



4,944



27,149

Park MGM




(21,193)



-



14,092



343



11,272



4,514

Circus Circus Las Vegas




8,179



-



-



43



5,114



13,336

  Las Vegas Strip Resorts




282,387



-



14,206



2,521



101,607



400,721

MGM Grand Detroit




43,109



-



-



(3)



5,745



48,851

Beau Rivage




19,885



-



-



484



6,631



27,000

Gold Strike Tunica




10,271



-



4



25



2,304



12,604

Borgata




28,980



-



-



(77)



14,536



43,439

MGM National Harbor




36,415



-



4



185



20,176



56,780

MGM Springfield 




(5,290)



-



1,102



-



10,333



6,145

  Regional Operations




133,370



-



1,110



614



59,725



194,819

MGM Macau




96,577



-



-



43



17,642



114,262

MGM Cotai




(34,556)



-



3,192



24,218



59,506



52,360

  MGM China




62,021



-



3,192



24,261



77,148



166,622

Unconsolidated resorts (1)




32,489



-



-



-



-



32,489

Management and other operations




18,040



-



-



178



8,258



26,476





528,307



-



18,508



27,574



246,738



821,127

Stock compensation




(18,690)



-



-



-



-



(18,690)

Corporate 




(173,866)



-



-



1,105



65,804



(106,957)




$

335,751


$

-


$

18,508


$

28,679


$

312,542


$

695,480





























































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



$

84,527


$

-


$

-


$

79


$

23,279


$

107,885

MGM Grand Las Vegas




73,003



-



-



515



17,153



90,671

Mandalay Bay




1,598



-



-



329



26,028



27,955

The Mirage 




19,344



-



-



91



10,581



30,016

Luxor




12,916



-



-



956



10,073



23,945

New York-New York 




25,543



-



-



415



6,268



32,226

Excalibur




17,880



-



-



66



5,043



22,989

Park MGM




(31,560)



-



3,628



19,507



9,000



575

Circus Circus Las Vegas




8,018



-



-



175



4,361



12,554

  Las Vegas Strip Resorts




211,269



-



3,628



22,133



111,786



348,816

MGM Grand Detroit




39,422



-



-



-



5,666



45,088

Beau Rivage




12,192



-



-



10



6,550



18,752

Gold Strike Tunica




9,493



-



-



113



2,188



11,794

Borgata




28,124



-



-



106



15,690



43,920

MGM National Harbor




4,724



-



115



-



22,836



27,675

  Regional Operations




93,955



-



115



229



52,930



147,229

MGM China




45,426



-



41,782



5,078



58,019



150,305

Unconsolidated resorts (1)




28,027



-



-



-



-



28,027

Management and other operations




1,167



-



-



-



1,920



3,087





379,844



-



45,525



27,440



224,655



677,464

Stock compensation




(15,748)



-



-



-



-



(15,748)

Corporate 




(140,682)



-



7,442



189



24,702



(108,349)




$

223,414


$

-


$

52,967


$

27,629


$

249,357


$

553,367






















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

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)


Twelve Months Ended December 31, 2018
























Operating
income (loss)


NV Energy exit
expense


Preopening and
start-up
expenses


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA

Bellagio



$

405,221


$

-


$

-


$

1,661


$

82,984


$

489,866

MGM Grand Las Vegas




304,590



-



-



750



66,226



371,566

Mandalay Bay




174,268



-



-



787



90,686



265,741

The Mirage 




94,226



-



-



1,677



35,961



131,864

Luxor




81,197



-



114



562



38,876



120,749

New York-New York 




112,570



-



-



250



24,802



137,622

Excalibur




91,394



-



-



68



19,793



111,255

Park MGM




(75,060)



-



22,569



19,901



46,880



14,290

Circus Circus Las Vegas




43,592



-



-



402



18,532



62,526

  Las Vegas Strip Resorts




1,231,998



-



22,683



26,058



424,740



1,705,479

MGM Grand Detroit




173,515



-



-



(95)



22,397



195,817

Beau Rivage




76,855



-



51



510



26,490



103,906

Gold Strike Tunica




43,066



-



45



71



8,899



52,081

Borgata




139,935



-



-



936



57,523



198,394

MGM National Harbor




119,383



-



163



271



75,292



195,109

MGM Springfield (1)




(34,757)



-



32,435



-



16,111



13,789

  Regional Operations




517,997



-



32,694



1,693



206,712



759,096

MGM Macau




406,763



-



-



630



70,728



478,121

MGM Cotai




(190,959)



-



64,341



24,224



192,567



90,173

  MGM China




215,804



-



64,341



24,854



263,295



568,294

Unconsolidated resorts (2)




144,369



-



3,321



-



-



147,690

Management and other operations 




55,465



-



-



178



19,147



74,790





2,165,633



-



123,039



52,783



913,894



3,255,349

Stock compensation




(68,211)



-



-



-



-



(68,211)

Corporate 




(627,936)



-



28,353



(43,636)



264,150



(379,069)




$

1,469,486


$

-


$

151,392


$

9,147


$

1,178,044


$

2,808,069





























































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



$

419,462


$

(6,970)


$

-


$

924


$

92,320


$

505,736

MGM Grand Las Vegas




279,841



(7,424)



6



1,752



70,510



344,685

Mandalay Bay




169,828



(8,524)



-



590



96,577



258,471

The Mirage 




140,881



(4,043)



-



304



39,854



176,996

Luxor




89,127



(3,394)



-



2,428



38,489



126,650

New York-New York 




107,953



(2,025)



(162)



720



28,550



135,036

Excalibur




97,382



(2,658)



-



485



18,352



113,561

Park MGM




(30,659)



(2,461)



6,532



33,510



42,269



49,191

Circus Circus Las Vegas




55,256



(3,130)



452



940



16,756



70,274

  Las Vegas Strip Resorts




1,329,071



(40,629)



6,828



41,653



443,677



1,780,600

MGM Grand Detroit




153,533



-



-



-



22,747



176,280

Beau Rivage




62,543



-



-



370



24,865



87,778

Gold Strike Tunica




43,722



-



-



91



9,069



52,882

Borgata




206,445



-



1,430



1,417



71,878



281,170

MGM National Harbor




50,696



-



366



-



82,744



133,806

  Regional Operations




516,939



-



1,796



1,878



211,303



731,916

MGM China




204,190



-



86,970



6,286



238,078



535,524

Unconsolidated resorts (2)




146,222



-



-



-



-



146,222

Management and other operations




18,913



-



-



-



7,925



26,838





2,215,335



(40,629)



95,594



49,817



900,983



3,221,100

Stock compensation




(60,936)



-



-



-



-



(60,936)

Corporate 




(441,872)



-



22,881



462



92,497



(326,032)




$

1,712,527


$

(40,629)


$

118,475


$

50,279


$

993,480


$

2,834,132






















(1) For the twelve months ended December 31, 2018, represents the operating results of MGM Springfield for the period August 1-December 31 only.

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

 


MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) 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,




2018


2017


2018


2017

Net income (loss) attributable to MGM Resorts International


$

(23,327)


$

1,387,413


$

466,772


$

1,952,052

  Plus: Net income attributable to noncontrolling interests



29,087



31,580



117,122



136,132

Net income



5,760



1,418,993



583,894



2,088,184

  (Benefit) provision for income taxes



92,735



(1,377,904)



50,112



(1,127,394)

Income before income taxes



98,495



41,089



634,006



960,790















Non-operating (income) expense:













  Interest expense, net of amounts capitalized



214,538



157,341



769,513



668,745

  Other, net



22,718



24,984



65,967



82,992





237,256



182,325



835,480



751,737















Operating income



335,751



223,414



1,469,486



1,712,527

  NV Energy exit expense



-



-



-



(40,629)

  Preopening and start-up expenses



18,508



52,967



151,392



118,475

  Property transactions, net



28,679



27,629



9,147



50,279

  Depreciation and amortization



312,542



249,357



1,178,044



993,480

Adjusted EBITDA


$

695,480


$

553,367


$

2,808,069


$

2,834,132





























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP RESORTS

(Unaudited)





Three Months Ended


Twelve Months Ended




December 31,


December 31,


December 31,


December 31,




2018


2017


2018


2017


Bellagio














   Occupancy %



94.2%



88.1%



94.9%



92.9%


   Average daily rate (ADR)



$282



$273



$278



$276


   Revenue per available room (REVPAR)



$266



$240



$264



$257
















MGM Grand Las Vegas














   Occupancy %



90.3%



87.5%



92.7%



92.1%


   ADR



$180



$170



$182



$182


   REVPAR



$163



$149



$169



$167
















Mandalay Bay 














   Occupancy %



89.9%



80.5%



90.2%



90.0%


   ADR



$187



$185



$204



$206


   REVPAR



$168



$149



$184



$186
















The Mirage














   Occupancy %



92.1%



90.5%



93.9%



94.2%


   ADR



$170



$173



$172



$173


   REVPAR



$156



$157



$161



$163
















Luxor 














   Occupancy %



91.3%



89.7%



94.5%



93.9%


   ADR



$111



$107



$115



$115


   REVPAR



$101



$96



$109



$108
















New York-New York














   Occupancy %



93.0%



94.8%



96.0%



96.2%


   ADR



$146



$139



$144



$145


   REVPAR



$135



$132



$138



$139
















Excalibur 














   Occupancy %



89.0%



87.4%



92.2%



92.4%


   ADR



$97



$92



$99



$100


   REVPAR



$86



$81



$91



$92
















Park MGM














   Occupancy %



82.4%



73.3%



83.8%



89.5%


   ADR



$133



$125



$132



$123


   REVPAR



$109



$92



$111



$110
















Circus Circus Las Vegas














   Occupancy %



76.5%



76.5%



81.3%



84.0%


   ADR



$85



$78



$84



$84


   REVPAR



$65



$60



$68



$71

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)





























Three Months Ended


Twelve Months Ended











December 31,


December 31,


December 31,


December 31,











2018


2017


2018


2017


























Aria






$

302,569


$

267,823


$

1,149,025


$

1,102,393





Vdara







32,305



28,771



128,720



125,340











$

334,874


$

296,594


$

1,277,745


$

1,227,733

























CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)





























Three Months Ended


Twelve Months Ended











December 31,


December 31,


December 31,


December 31,











2018


2017


2018


2017

























Net income (loss)




$

14,988


$

13,847


$

(37,911)


$

131,683




 Plus: Loss from discontinued operations



385



2,237



135,002



5,543




Net income from continuing operations



15,373



16,084



97,091



137,226

























Non-operating (income) expense:
















  Interest expense, net of amounts capitalized



22,150



15,887



80,511



60,094




  Other, net







7,868



(506)



7,766



2,789












30,018



15,381



88,277



62,883

























Operating income





45,391



31,465



185,368



200,109




  NV Energy exit expense




-



-



-



(8,250)




  Property transactions, net




7,644



8,378



7,195



9,541




  Depreciation and amortization



57,117



55,797



221,564



211,897




Adjusted EBITDA




$

110,152


$

95,640


$

414,127


$

413,297














































CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)






















Three Months Ended December 31, 2018





























Operating
income (loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA


Aria






$

43,908


$

-


$

7,633


$

50,104


$

101,645


Vdara







2,471



-



11



7,013



9,495


 Resort operations




46,379



-



7,644



57,117



111,140


Other







(988)



-



-



-



(988)








$

45,391


$

-


$

7,644


$

57,117


$

110,152











































Three Months Ended December 31, 2017





























Operating
income (loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA


Aria






$

31,981


$

-


$

7,876


$

48,656


$

88,513


Vdara







425



-



502



7,141



8,068


 Resort operations




32,406



-



8,378



55,797



96,581


Other







(941)



-



-



-



(941)








$

31,465


$

-


$

8,378


$

55,797


$

95,640

 

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)






















Twelve Months Ended December 31, 2018





























Operating
income (loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA


Aria






$

179,791


$

-


$

6,956


$

193,859


$

380,606


Vdara







10,711



-



239



27,705



38,655


 Resort operations




190,502



-



7,195



221,564



419,261


Other







(5,134)



-



-



-



(5,134)








$

185,368


$

-


$

7,195


$

221,564


$

414,127
































































Twelve Months Ended December 31, 2017





























Operating
income (loss)


NV Energy exit
expense


Property
transactions, net


Depreciation and
amortization


Adjusted EBITDA


Aria






$

192,888


$

(8,250)


$

8,881


$

184,124


$

377,643


Vdara







11,344



-



660



27,773



39,777


 Resort operations




204,232



(8,250)



9,541



211,897



417,420


Other







(4,123)



-



-



-



(4,123)








$

200,109


$

(8,250)


$

9,541


$

211,897


$

413,297











































CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)





























Three Months Ended


Twelve Months Ended











December 31,


December 31,


December 31,


December 31,











2018


2017


2018


2017





Aria



















   Occupancy %





89.6%



87.0%



90.9%



91.4%





   ADR





$265



$244



$261



$251





   REVPAR





$238



$212



$237



$229


























Vdara



















   Occupancy %





90.0%



85.4%



92.0%



89.5%





   ADR





$213



$196



$209



$208





   REVPAR





$192



$168



$192



$186

























 

Cision View original content:http://www.prnewswire.com/news-releases/mgm-resorts-international-reports-fourth-quarter-and-full-year-financial-and-operating-results-300795329.html

SOURCE MGM Resorts International

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