MGM Resorts International

10/30/2019 | Press release | Distributed by Public on 10/30/2019 14:25

MGM Resorts International Reports Third Quarter Financial And Operating Results

LAS VEGAS, Oct. 30, 2019 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ('MGM Resorts' or the 'Company') today reported financial results for the quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights:

Consolidated Results

  • Consolidated net revenues increased 9% compared to the prior year quarter to $3.3 billion;
  • Consolidated operating income decreased 42% compared to the prior year quarter to $238 million. Excluding a non-cash impairment charge of $219 million in the current quarter related to Circus Circus Las Vegas and adjacent land, included within property transactions, net, consolidated operating income increased 11% compared to the prior year quarter;
  • Net loss attributable to MGM Resorts of $37 million, including the $219 million non-cash impairment charge discussed above, compared to net income attributable to MGM Resorts of $143 million in the prior year quarter;
  • Diluted loss per share of $0.08 in the current quarter compared to diluted earnings per share of $0.26 in the prior year quarter;
  • Adjusted diluted earnings per share ('Adjusted EPS')(1) of $0.31 in the current quarter compared to Adjusted EPS of $0.23 in the prior year quarter; and
  • Consolidated Adjusted EBITDA(2) increased 14% to $814 million in the current quarter compared to $716 million in the prior year quarter.

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

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

Las Vegas Strip Resorts

  • Net revenues increased 4% compared to the prior year quarter to $1.5 billion;
  • Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) increased 4% compared to the prior year quarter to $1.5 billion;
  • Adjusted Property EBITDA of $441 million, a 5% increase compared to $420 million in the prior year quarter;
  • Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA(2) of $438 million a 6% increase compared to the prior year quarter; and
  • Adjusted Property EBITDA margin of 29.3%, a 41 basis point increase compared to the prior year quarter.

Regional Operations

  • Net revenues increased $158 million or 20% compared to the prior year quarter to $935 million, including $52 million in net revenues from Empire City Casino, which was acquired on January 29, 2019, $64 million in net revenues from MGM Northfield Park's operations, which was acquired from MGP on April 1, 2019, and a full quarter of operations at MGM Springfield, which opened on August 24, 2018;
  • Adjusted Property EBITDA of $264 million, a 27% increase compared the prior year quarter; and
  • Adjusted Property EBITDA margin of 28.2% in the current quarter, a 152 basis point increase compared to the prior year quarter.

MGM China

  • Net revenues increased 22% compared to the prior year quarter to $738 million;
  • VIP Table Games Hold Adjusted MGM China Net Revenues(3) of $699 million, a 19% increase compared to the prior year quarter;
  • Adjusted Property EBITDA of $182 million, a 40% increase compared to the prior year quarter;
  • VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA(2) of $168 million, a 36% increase compared to the prior year quarter; and
  • Adjusted Property EBITDA margin of 24.7% , a 321 basis point increase compared to the prior year quarter.

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

Adjusted Diluted Earnings Per Share

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

Three Months Ended September 30,

2019

2018

Diluted earnings (loss) per share

$

(0.08)

$

0.26

Preopening and start-up expenses

-

0.08

Property transactions, net

0.48

(0.08)

Non-operating expense:

Remeasurement loss on MGM China senior notes

0.01

-

Items from unconsolidated affiliates:

CityCenter property transactions, net

(0.01)

-

Gain on the sale of Mandarin Oriental Las Vegas

-

(0.02)

Change in fair value of CityCenter swaps

0.01

-

Income tax impact on net income adjustments (1)

(0.10)

(0.01)

Adjusted diluted earnings per share

$

0.31

$

0.23

(1)

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

Las Vegas Strip Resorts

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

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

Three Months Ended September 30,

2019

2018

%
change

(Dollars in millions)

Table Games Drop

$842

$897

(6)

%

Table Games Win %

24.2

%

25.4

%

Slots Handle

$3,280

$3,143

4

%

Slots Hold %

9.4

%

9.3

%

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

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

Three Months Ended September 30,

2019

2018

%
change

Occupancy %

92%

93%

Average Daily Rate (ADR)

$164

$157

4.4%

Revenue per Available Room (REVPAR)

$152

$146

3.6%

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

Regional Operations

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

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

Three Months Ended September 30,

2019

2018

%
change

(Dollars in millions)

Table Games Drop

$1,122

$1,054

6%

Table Games Win %

19.6

%

19.4

%

Slots Handle

$6,666

$5,755

16%

Slots Hold %

9.4

%

9.0

%

MGM China

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

  • Net revenues of $738 million, a 22% increase compared to the prior year quarter. The current quarter included $364 million of net revenues at MGM Cotai;
  • Main floor table games win increased 47% compared to the prior year quarter due to the addition of 25 new-to-market tables at MGM Cotai in 2019 and a 559 basis point increase in win percentage;
  • VIP table games win increased 5% compared to the prior year quarter due to the opening of VIP gaming areas at the end of the third quarter of 2018 at MGM Cotai and an increase in the VIP table games win percentage;
  • Adjusted Property EBITDA increased 40% to $182 million compared to $130 million in the prior year quarter. The current quarter included $13 million of license fee expense compared to $11 million in the prior year quarter; and
  • Adjusted Property EBITDA margin was 24.7% in the current quarter compared to 21.5% in the prior year quarter, increasing primarily as a result of the continued ramp up of operations at MGM Cotai.

The following table shows key gaming statistics for MGM China:

Three Months Ended September 30,

2019

2018

%
change

(Dollars in millions)

VIP Table Games Turnover

$8,646

$9,419

(8)%

VIP Table Games Win %

3.7%

3.2%

Main Floor Table Games Drop

$2,117

$1,882

13%

Main Floor Table Games Win %

23.6%

18.1%

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

Corporate Expense

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

Unconsolidated Affiliates

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

Three Months Ended September 30,

2019

2018

(In thousands)

CityCenter

$

39,317

$

33,232

Other

(3,103)

2,263

$

36,214

$

35,495

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

  • Net revenues were $320 million, a 9% increase compared to the prior year quarter, due to a 24% increase in casino revenues and an increase in rooms revenues;
  • Casino revenues at Aria increased 24% compared to the prior year quarter, due primarily to a 13% increase in table games win resulting from a 405 basis point increase in table games hold percentage and a 13% increase in slots win;
  • REVPAR at Aria increased 4% compared to the prior year quarter to $237;
  • REVPAR at Vdara increased 4% compared to the prior year quarter to $192; and
  • Adjusted EBITDA from resort operations was $110 million, a 30% increase compared to the prior year quarter.

MGM Growth Properties

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

MGM Resorts Dividend

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

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

Financial Position

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

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

Conference Call Details

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

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

Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing period-to-period comparisons of the results of the Company's continuing operations to assist investors in reviewing the Company's operating performance over time. Management believes that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company's earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, such as restructuring costs and items further discussed in footnote 2 below, may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company's performance. In addition, Adjusted EPS may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly-titled non-GAAP financial measures of other companies. A reconciliation of Adjusted EPS to diluted earnings per share can be found under 'Adjusted Diluted Earnings Per Share' included in the earnings release.

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

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

Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. Management believes that while items excluded from Adjusted EBITDA, Adjusted Property EBITDA, and Adjusted Property EBITDA margin may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company's resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance.

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

Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA should not be construed as alternatives to operating income or net income, as indicators of the Company's performance; or as alternatives to cash flows from operating activities, as measures of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA information may calculate Adjusted EBITDA, Adjusted Property EBITDA, Adjusted Property EBITDA margin, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA in a different manner and such differences may be material.

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

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

4. REVPAR is hotel revenue per available room.

About MGM Resorts International

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

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding future results and the Company's financial outlook, the Company's ability to execute on its asset light strategy and return capital to shareholders, the expected net cash proceeds from the Bellagio sale-leaseback and Circus Circus Las Vegas transactions and the Company's ability to deliver on its 2020 targets and goals (including its Adjusted EBITDA, free cash flow and leverage targets). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS:

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Revenues:

Casino

$

1,663,049

$

1,465,380

$

4,887,707

$

4,191,910

Rooms

595,636

566,319

1,756,354

1,669,670

Food and beverage

560,200

520,773

1,624,973

1,470,992

Entertainment, retail and other

387,596

370,150

1,114,708

1,063,142

Reimbursed costs

107,901

106,680

330,794

314,520

3,314,382

3,029,302

9,714,536

8,710,234

Expenses:

Casino

915,207

819,334

2,706,356

2,323,514

Rooms

211,292

206,406

623,929

598,432

Food and beverage

427,400

391,091

1,254,303

1,121,465

Entertainment, retail and other

274,850

263,915

788,463

734,119

Reimbursed costs

107,901

106,680

330,794

314,520

General and administrative

494,228

463,417

1,543,764

1,319,760

Corporate expense

108,545

98,089

346,042

301,036

Preopening and start-up expenses

925

46,890

5,091

132,884

Property transactions, net

249,858

(42,400)

264,424

(19,532)

Depreciation and amortization

322,009

300,472

973,211

865,502

3,112,215

2,653,894

8,836,377

7,691,700

Income from unconsolidated affiliates

36,214

35,495

101,967

115,201

Operating income

238,381

410,903

980,126

1,133,735

Non-operating income (expense):

Interest expense, net of amounts capitalized

(215,503)

(205,573)

(647,452)

(554,975)

Non-operating items from unconsolidated affiliates

(14,669)

(11,583)

(54,311)

(31,661)

Other, net

(9,381)

(3,291)

(53,964)

(11,588)

(239,553)

(220,447)

(755,727)

(598,224)

Income (loss) before income taxes

(1,172)

190,456

224,399

535,511

Benefit (provision) for income taxes

7,276

(19,046)

(75,969)

42,623

Net income

6,104

171,410

148,430

578,134

Less: Net income attributable to noncontrolling interests

(43,237)

(28,532)

(110,861)

(88,035)

Net income (loss) attributable to MGM Resorts International

$

(37,133)

$

142,878

$

37,569

$

490,099

Earnings (loss) per share:

Basic

$

(0.08)

$

0.26

$

0.06

$

0.87

Diluted

$

(0.08)

$

0.26

$

0.06

$

0.86

Weighted average common shares outstanding:

Basic

518,983

535,130

528,429

549,418

Diluted

518,983

540,396

531,873

555,521

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

September 30,

December 31,

2019

2018

ASSETS

Current assets:

Cash and cash equivalents

$

1,233,569

$

1,526,762

Accounts receivable, net

550,345

657,206

Inventories

104,206

110,831

Income tax receivable

23,877

28,431

October 1 litigation insurance receivable

735,000

-

Prepaid expenses and other

233,749

203,548

Total current assets

2,880,746

2,526,778

Property and equipment, net

20,603,978

20,729,888

Other assets:

Investments in and advances to unconsolidated affiliates

758,992

732,867

Goodwill

2,076,431

1,821,392

Other intangible assets, net

3,866,536

3,944,463

Operating lease right-of-use assets, net

650,990

-

Other long-term assets, net

331,198

455,318

Total other assets

7,684,147

6,954,040

$

31,168,871

$

30,210,706

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

253,637

$

302,578

Construction payable

144,504

311,793

Current portion of long-term debt

-

43,411

Accrued interest on long-term debt

159,760

140,046

October 1 litigation liability

735,000

-

Other accrued liabilities

2,000,343

2,151,054

Total current liabilities

3,293,244

2,948,882

Deferred income taxes, net

1,536,426

1,342,538

Long-term debt, net

14,943,874

15,088,005

Other long-term obligations

250,368

259,240

Operating lease liabilities

518,365

-

Redeemable noncontrolling interest

105,976

102,250

Stockholders' equity:

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

issued and outstanding 513,913,791 and 527,479,528 shares

5,139

5,275

Capital in excess of par value

3,846,369

4,092,085

Retained earnings

2,255,885

2,423,479

Accumulated other comprehensive loss

(46,841)

(8,556)

Total MGM Resorts International stockholders' equity

6,060,552

6,512,283

Noncontrolling interests

4,460,066

3,957,508

Total stockholders' equity

10,520,618

10,469,791

$

31,168,871

$

30,210,706

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Bellagio

$

333,752

$

322,058

$

1,010,450

$

1,029,223

MGM Grand Las Vegas

318,334

340,053

886,108

944,949

Mandalay Bay

248,928

246,303

715,503

742,758

The Mirage

153,976

147,433

463,886

450,973

Luxor

98,892

103,822

291,448

304,281

New York-New York

93,205

90,000

284,109

279,061

Excalibur

85,692

83,836

252,953

247,491

Park MGM

103,355

50,649

301,006

150,251

Circus Circus Las Vegas

71,314

70,202

196,517

191,987

Las Vegas Strip Resorts

1,507,448

1,454,356

4,401,980

4,340,974

MGM Grand Detroit

145,769

148,472

453,318

449,218

Beau Rivage

108,509

108,580

317,553

308,068

Gold Strike Tunica

47,693

45,756

144,486

129,676

Borgata

234,459

235,186

621,064

635,486

MGM National Harbor

206,083

196,568

608,065

587,171

MGM Springfield (1)

75,994

42,549

230,076

42,549

Empire City Casino (2)

52,103

-

143,275

-

MGM Northfield Park (3)

64,408

-

132,079

-

Regional Operations

935,018

777,111

2,649,916

2,152,168

MGM Macau

374,035

434,263

1,197,591

1,321,743

MGM Cotai

363,720

171,751

980,457

441,482

MGM China

737,755

606,014

2,178,048

1,763,225

Management and other operations

134,161

191,821

484,592

453,867

$

3,314,382

$

3,029,302

$

9,714,536

$

8,710,234

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA and ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Bellagio

$

117,589

$

104,715

$

355,914

$

371,716

MGM Grand Las Vegas

85,694

116,647

219,055

298,846

Mandalay Bay

66,256

58,649

184,998

194,415

The Mirage

41,186

27,098

119,153

99,715

Luxor

32,560

31,985

94,201

94,530

New York-New York

34,790

32,128

109,011

102,464

Excalibur

29,576

28,478

86,960

84,106

Park MGM

15,739

1,403

45,589

9,776

Circus Circus Las Vegas

17,765

18,596

47,998

49,190

Las Vegas Strip Resorts

441,155

419,699

1,262,879

1,304,758

MGM Grand Detroit

45,569

48,440

145,254

146,966

Beau Rivage

29,863

29,438

84,226

76,906

Gold Strike Tunica

15,506

14,668

50,808

39,477

Borgata

67,168

60,806

159,431

154,955

MGM National Harbor

52,879

46,253

150,978

138,329

MGM Springfield (1)

9,228

7,644

31,090

7,644

Empire City Casino (2)

19,980

-

56,333

-

MGM Northfield Park (3)

23,423

-

47,223

-

Regional Operations

263,616

207,249

725,343

564,277

MGM Macau

102,216

118,211

347,780

363,859

MGM Cotai

79,794

11,835

195,848

37,813

MGM China

182,010

130,046

543,628

401,672

Unconsolidated resorts (4)

36,192

35,495

105,031

115,201

Management and other operations

2,232

27,978

24,279

48,314

Stock compensation

(14,419)

(16,618)

(45,280)

(49,521)

Corporate

(97,122)

(87,984)

(306,449)

(272,112)

$

813,664

$

715,865

$

2,309,431

$

2,112,589

(1) For the three and nine months ended September 30, 2018, represents net revenues and Adjusted Property EBITDA of MGM Springfield for the period August 1-September 30 only.

(2) For the nine months ended September 30, 2019, represents net revenues and Adjusted Property EBITDA of Empire City Casino for the period January 29-September 30 only.

(3) For the nine months ended September 30, 2019, represents net revenues and Adjusted Property EBITDA of MGM Northfield Park for the period April 1-September 30 only.

(4) 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

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Net income (loss) attributable to MGM Resorts International

$

(37,133)

$

142,878

$

37,569

$

490,099

Plus: Net income attributable to noncontrolling interests

43,237

28,532

110,861

88,035

Net income

6,104

171,410

148,430

578,134

(Benefit) provision for income taxes

(7,276)

19,046

75,969

(42,623)

Income (loss) before income taxes

(1,172)

190,456

224,399

535,511

Non-operating (income) expense:

Interest expense, net of amounts capitalized

215,503

205,573

647,452

554,975

Other, net

24,050

14,874

108,275

43,249

239,553

220,447

755,727

598,224

Operating income

238,381

410,903

980,126

1,133,735

Preopening and start-up expenses

925

46,890

5,091

132,884

Property transactions, net

249,858

(42,400)

264,424

(19,532)

Depreciation and amortization

322,009

300,472

973,211

865,502

Restructuring

2,491

-

86,579

-

Adjusted EBITDA

$

813,664

$

715,865

$

2,309,431

$

2,112,589

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATIONS OF LAS VEGAS STRIP RESORTS NET REVENUES AND LAS VEGAS STRIP RESORTS ADJUSTED PROPERTY EBITDA TO TABLE GAMES HOLD ADJUSTED

LAS VEGAS STRIP RESORTS NET REVENUES AND TABLE GAMES HOLD ADJUSTED LAS VEGAS STRIP RESORTS ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Las Vegas Strip Resorts net revenues

$

1,507,448

$

1,454,356

$

4,401,980

$

4,340,974

Hold adjustment (1)

(3,691)

(8,313)

15,882

(28,502)

Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues

$

1,503,757

$

1,446,043

$

4,417,862

$

4,312,472

Las Vegas Strip Resorts Adjusted Property EBITDA

$

441,155

$

419,699

$

1,262,879

$

1,304,758

Hold adjustment (2)

(3,184)

(7,083)

13,512

(24,352)

Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDA

$

437,971

$

412,616

$

1,276,391

$

1,280,406

(1) For the Las Vegas Strip Resorts, hold adjustment represents the estimated incremental table games win or loss had the Company's win percentage equaled the mid-point of the expected normal range of 25.0% to 35.0% for Baccarat and 19.0% to 23.0% for non-Baccarat. Amounts include estimated discounts and other incentives related to increases or decreases in table games win.

(2) These amounts include estimated incremental expenses (gaming taxes and bad debt expense) that would have been incurred or avoided on the incremental table games win or loss calculated in (1) above.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATIONS OF MGM CHINA NET REVENUES AND MGM CHINA ADJUSTED PROPERTY EBITDA TO VIP TABLE GAMES HOLD ADJUSTED MGM CHINA NET REVENUES

AND VIP TABLE GAMES HOLD ADJUSTED MGM CHINA ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

MGM China net revenues

$

737,755

$

606,014

$

2,178,048

$

1,763,225

Hold adjustment (3)

(38,642)

(16,753)

(49,126)

(2,721)

VIP Table Games Hold Adjusted MGM China Net Revenues

$

699,113

$

589,261

$

2,128,922

$

1,760,504

MGM China Adjusted Property EBITDA

$

182,010

$

130,046

$

543,628

$

401,672

Hold adjustment (4)

(14,117)

(6,529)

(19,793)

(1,991)

VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDA

$

167,893

$

123,517

$

523,835

$

399,681

(3) For MGM China, hold adjustment represents the estimated incremental VIP table games win or loss related to VIP Rolling Chip volume play had the Company's win percentage equaled the mid-point of the expected normal range of 2.6% to 3.3%. Amounts include estimated commissions and other incentives related to increases or decreases in VIP table games win.

(4) These amounts include estimated incremental expenses (gaming taxes and bad debt expense) that would have been incurred or avoided on the incremental VIP table games win or loss calculated in (3) above.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP RESORTS

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Bellagio

Occupancy %

94.7%

96.4%

95.1%

95.2%

Average daily rate (ADR)

$271

$265

$281

$277

Revenue per available room (REVPAR)

$256

$256

$268

$264

MGM Grand Las Vegas

Occupancy %

93.2%

93.8%

92.5%

93.5%

ADR

$191

$181

$190

$183

REVPAR

$178

$170

$175

$171

Mandalay Bay

Occupancy %

94.8%

92.3%

93.4%

90.3%

ADR

$204

$200

$206

$210

REVPAR

$193

$185

$193

$189

The Mirage

Occupancy %

95.9%

96.9%

94.6%

94.5%

ADR

$166

$159

$178

$172

REVPAR

$159

$154

$169

$163

Luxor

Occupancy %

94.7%

96.7%

95.0%

95.5%

ADR

$119

$114

$119

$116

REVPAR

$113

$110

$113

$111

New York-New York

Occupancy %

95.7%

97.5%

95.5%

97.0%

ADR

$146

$139

$151

$144

REVPAR

$140

$135

$144

$139

Excalibur

Occupancy %

93.6%

94.2%

93.1%

93.3%

ADR

$103

$98

$103

$99

REVPAR

$96

$92

$96

$93

Park MGM

Occupancy %

87.7%

84.5%

88.4%

84.3%

ADR

$149

$132

$149

$132

REVPAR

$130

$111

$131

$111

Circus Circus Las Vegas

Occupancy %

81.7%

85.0%

82.6%

83.0%

ADR

$92

$85

$91

$84

REVPAR

$76

$73

$75

$70

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Aria

$

287,993

$

262,777

$

894,365

$

846,456

Vdara

32,359

31,610

98,850

96,415

$

320,352

$

294,387

$

993,215

$

942,871

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Aria

Occupancy %

90.8%

91.9%

91.8%

91.3%

ADR

$262

$248

$272

$259

REVPAR

$237

$228

$250

$237

Vdara

Occupancy %

91.8%

92.5%

92.4%

92.7%

ADR

$209

$199

$213

$207

REVPAR

$192

$184

$196

$192

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Net income (loss)

$

33,082

$

(1,227)

$

56,079

$

(52,899)

Plus: Loss from discontinued operations

-

6,069

-

134,617

Net income from continuing operations

33,082

4,842

56,079

81,718

Non-operating (income) expense:

Interest expense, net of amounts capitalized

23,117

21,214

69,777

58,361

Other, net

5,265

49

33,975

(102)

28,382

21,263

103,752

58,259

Operating income

61,464

26,105

159,831

139,977

Property transactions, net

(10,601)

1,480

(9,352)

(449)

Depreciation and amortization

57,709

55,732

172,113

164,447

Restructuring

(44)

-

6,128

-

Adjusted EBITDA

$

108,528

$

83,317

$

328,720

$

303,975

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2019

2018

2019

2018

Aria

$

101,209

$

76,594

$

307,927

$

278,961

Vdara

8,708

8,238

29,770

29,160

Resort Operations

109,917

84,832

337,697

308,121

Other

(1,389)

(1,515)

(8,977)

(4,146)

$

108,528

$

83,317

$

328,720

$

303,975

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SOURCE MGM Resorts International