Form 8-K MGM Resorts Internationa For: Aug 04

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August 4, 2015 8:17 AM EDT

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): August 4, 2015

MGM Resorts International

(Exact name of registrant as specified in its charter)


Delaware	001-10362	88-0215232
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

3600 Las Vegas Boulevard South, Las Vegas, Nevada 89109

(Address of principal executive offices – Zip Code)

(702) 693-7120

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

This current report on Form 8-K is being furnished to disclose the press release issued by the Registrant on August 4, 2015. The purpose of the press release, furnished as Exhibit 99.1, was to announce the Registrant’s results of operations for the quarter ended June 30, 2015. The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS

(a)

Not applicable.

(b)

Not applicable.

(c)

Not applicable.

(d)

Exhibits:

99.1

Press release of the Registrant dated August 4, 2015, announcing financial results for the quarter ended June 30, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	MGM Resorts International

Date: August 4, 2015	By:	/s/Robert C. Selwood
		Robert C. Selwood
		Executive Vice President and Chief Accounting Officer

Exhibit 99.1

LOGO

MGM RESORTS INTERNATIONAL REPORTS SECOND QUARTER FINANCIAL RESULTS

Wholly Owned Domestic Resorts Net Revenue Increased 4% & Adjusted Property EBITDA Increased 11%

Announced A Comprehensive Profit Growth Plan Expected To

Increase Adjusted EBITDA By $300 Million Annually

Las Vegas, Nevada, August 4, 2015 — MGM Resorts International (NYSE: MGM) today reported financial results for the quarter ended June 30, 2015.

“We are continuing to drive increased profits at MGM Resorts with second quarter wholly owned Adjusted Property EBITDA up 11% driven by growth at our Las Vegas and regional resorts. These resorts are continuing to gain operating momentum while we continue to make significant progress on our development pipeline in Cotai, Maryland, and Massachusetts,” said Jim Murren, Chairman & CEO of MGM Resorts International. “We are focused on positioning the Company for future growth, and are pleased to announce the implementation of our Profit Growth Plan to further enhance our business practices and profitability.”

Key results for the second quarter of 2015 include the following:

•

Net revenue at the Company’s wholly owned domestic resorts was $1.7 billion, an increase of 4% compared to the prior year quarter;

•

Rooms revenue at wholly owned domestic resorts increased 6% with a 6% increase in REVPAR⁽¹⁾ at the Company’s Las Vegas Strip resorts compared to the prior year quarter;

•

The Company’s wholly owned domestic resorts earned Adjusted Property EBITDA⁽²⁾ of $458 million, an 11% increase compared to the prior year quarter;

•

Adjusted Property EBITDA margin for wholly owned domestic resorts increased 158 basis points to 26.9% in the current year quarter;

•

MGM China’s net revenue was $557 million and Adjusted EBITDA was $132 million, decreases of 33% and 37%, respectively, compared to the prior year quarter; and

•

CityCenter’s Adjusted EBITDA related to resort operations was $84 million, a 4% increase compared to the prior year quarter.

Second Quarter Consolidated Results

Diluted earnings per share for the second quarter of 2015 was $0.17 compared to diluted earnings per share of $0.22 in the prior year quarter.

The following table lists certain 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 June 30,	2015			2014
Preopening and start-up expenses	$	(0.02	)	$	(0.01	)
Property transactions, net:
Investment in Grand Victoria impairment		—			(0.04	)
Other property transactions, net		—			(0.01	)
IRS audit settlement		—			0.06

Page 1 of 13

The prior year second quarter results were affected by a non-cash impairment charge of $29 million related to the Company’s joint venture investment in Grand Victoria. Additionally, the prior year second quarter income tax provision was affected by a $31 million benefit resulting from the settlement of the Company’s 2005-2009 IRS audits during the quarter.

Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts increased 5% compared to the prior year quarter due to a 4% increase in table games volume and a 7% increase in slots volume. Table games hold percentage in the second quarter of 2015 was 21.4% compared to 21.3% in the prior year quarter.

Rooms revenue increased 6% compared to the prior year quarter with Las Vegas Strip REVPAR up 6%. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:


Three months ended June 30,	2015			2014
Occupancy %		96	%		96	%
Average Daily Rate (ADR)	$	150		$	141
Revenue per Available Room (REVPAR)	$	144		$	135

Food and beverage revenue grew 3% as a result of increased catering business related to a higher convention room mix in the quarter, the opening of several new outlets and closed circuit viewing parties for the Mayweather vs. Pacquiao fight. Entertainment revenue decreased 3% due to a decrease in the number of in-house shows compared to the prior year quarter. Operating income for the Company’s wholly owned domestic resorts increased 15% to $338 million compared to $294 million in the prior year quarter.

Profit Growth Plan

The Company has announced the Profit Growth Plan today for sustained growth and margin enhancement. The Profit Growth Plan’s initiatives are focused on the following:

•

Improve business process – continue to optimize MGM’s scale for greater efficiency and lower cost throughout our business; and

•

Drive revenue generation – identify areas of opportunity to organically drive incremental revenue growth.

The Profit Growth Plan includes a significant number of opportunities to enhance our business operations. The plan is expected to result in $300 million of annualized Adjusted EBITDA benefit. The Profit Growth Plan commenced in July 2015 and it is expected to begin to show results as early as the second half of 2015 and be fully realized by the end of 2017.

“The Profit Growth Plan represents a further advancement in how we conduct business at MGM Resorts, with greater focus on streamlining business process, leveraging our size and scale to reduce costs and drive market share, and innovations in customer service. This plan will redefine the way we operate in critical areas and position MGM Resorts for future growth, for the benefit of our Company as a whole and our shareholders,” said Mr. Murren.

Page 2 of 13

MGM China

On August 4, 2015, MGM China’s Board of Directors announced an interim dividend of $77 million, which will be paid to shareholders of record as of August 24, 2015 and distributed on or about August 31, 2015. MGM Resorts International will receive $39 million, representing its 51% share of the dividend.

Key second quarter results for MGM China include the following:

•

MGM China earned net revenue of $557 million, a 33% decrease compared to the prior year quarter;

•

Main floor table games revenue decreased 23% compared to the prior year quarter;

•

VIP table games revenue decreased 43% due to a decrease in VIP table games turnover of 54% compared to the prior year quarter, while hold percentage increased to 3.2% in the current year quarter compared to 2.7% in the prior year quarter;

•

MGM China’s Adjusted EBITDA was $132 million, a decrease of 37% compared to the prior year quarter, including $10 million of license fee expense in the current year quarter compared to $14 million in the prior year quarter;

•

Adjusted EBITDA margin declined 168 basis points to 23.7% in the current year quarter; and

•

Operating income was $58 million compared to $134 million in the prior year quarter.

MGM China paid a $120 million final dividend in June 2015, of which $61 million was distributed to MGM Resorts and $59 million was distributed to noncontrolling interests.

Income from Unconsolidated Affiliates

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


Three months ended June 30,	2015		2014
	(In thousands)
CityCenter	$	21,515	$	(1,055	)
Borgata		15,767		14,477
Other		5,618		6,923

	$	42,900	$	20,345

Results for CityCenter for the second quarter of 2015 include the following (see schedules accompanying this release for further detail on CityCenter’s second quarter results):

•

Net revenue from resort operations increased by 3% to $312 million compared to $304 million in the prior year quarter;

•

Adjusted EBITDA from resort operations was $84 million, an increase of 4% compared to the prior year quarter;

•

Aria’s table games hold percentage was 21.5% compared to 23.4% in the prior year quarter;

•

Slots revenue at Aria decreased 4% compared to the prior year quarter;

•

Aria’s REVPAR was a record $222, an 8% increase compared to the prior year quarter;

•

Vdara reported record second quarter Adjusted EBITDA of $8 million, a 10% increase compared to the prior year quarter, led by record REVPAR of $179; and

•

Crystals reported Adjusted EBITDA of $12 million, an increase of 5% from the prior year quarter.

Page 3 of 13

CityCenter’s operating income of $22 million in the current year quarter represents a $47 million increase from the prior year quarter, benefiting from a decrease in depreciation expense of $24 million. In addition, property transactions, net was $1 million compared to $16 million in the prior year quarter.

Financial Position

“We continue to focus on improving MGM Resorts’ balance sheet, having reduced total debt by $2.3 billion since the beginning of the year, including the repayment of the $875 million senior notes that matured in July,” said Dan D’Arrigo, Executive Vice President, CFO and Treasurer of MGM Resorts International. “During the second quarter, MGM China strengthened its financial flexibility by increasing its senior credit facility from $2 billion to $3 billion. This facility, along with MGM China’s free cash flow, has allowed it to continue to invest in its existing operations as well as future growth opportunities, while at the same time returning value to its shareholders.”

The Company’s cash and cash equivalents and cash deposits at June 30, 2015 was $2.5 billion, which included $522 million at MGM China. At June 30, 2015, the Company had $2.7 billion of borrowings outstanding under its $3.9 billion senior secured credit facility and $1.2 billion outstanding under the $3.0 billion MGM China credit facility. On April 15, 2015, 99.97% of the Company’s $1.45 billion 4.25% convertible senior notes were converted into approximately 72 million shares of the Company’s common stock, net of shares received upon settlement of the capped call transactions entered into in connection with the issuance of such notes. In June 2015, MGM China amended and restated its senior credit facility which increased its total capacity to $3.0 billion and extended the term for an eighteen month period ending in April 2019.

Conference Call Details

MGM Resorts International will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the Investors section or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 0575269. A replay of the call will be available through Tuesday, August 11, 2015. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10069000. The call will be archived at www.mgmresorts.com.

1 REVPAR is hotel revenue per available room.

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

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

Page 4 of 13

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

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

* * *

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is one of the world’s leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company is in the process of developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts. The Company also owns 51 percent of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino. For more information about MGM Resorts International, visit the Company’s website at www.mgmresorts.com.

Statements in this release that are not historical facts are forward-looking statements, 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 ability to generate future cash flow growth and to execute on future development and other projects, such as the Profit Growth Plan, the expected results of the Profit Growth Plan and dividends the Company will receive from MGM China. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.


MGM RESORTS CONTACTS:
Investment Community		News Media
CATHERINE PARK		CLARK DUMONT
Director of Investor Relations		Senior Vice President of Corporate Communications
(702) 693-8711		(702) 692-6888 or [email protected]

Page 5 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2015

June 30,
2014

June 30,
2015

June 30,
2014

Revenues:

Casino

1,235,976

1,475,165

2,514,478

3,058,597

Rooms

490,498

463,151

949,923

915,537

Food and beverage

423,183

412,723

807,284

796,115

Entertainment

134,972

138,735

260,940

272,512

Retail

55,482

50,811

100,519

95,427

Other

137,819

134,068

264,369

259,495

Reimbursed costs

103,548

95,745

204,608

190,720

2,581,478

2,770,398

5,102,121

5,588,403

Less: Promotional allowances

(196,343

)

(189,365

)

(384,742

)

(376,972

)

2,385,135

2,581,033

4,717,379

5,211,431

Expenses:

Casino

738,427

916,817

1,521,235

1,907,651

Rooms

142,065

142,413

283,378

276,651

Food and beverage

243,127

241,124

464,648

461,182

Entertainment

104,397

104,761

201,396

203,698

Retail

28,398

26,055

52,494

49,531

Other

95,835

92,077

180,158

179,654

Reimbursed costs

103,548

95,745

204,608

190,720

General and administrative

333,708

327,484

661,881

646,730

Corporate expense

59,602

54,439

109,958

107,790

Preopening and start-up expenses

17,889

9,759

33,760

15,395

Property transactions, net

3,953

33,170

5,542

33,728

Depreciation and amortization

208,565

203,070

414,977

410,725

2,079,514

2,246,914

4,134,035

4,483,455

Income from unconsolidated affiliates

42,900

20,345

160,281

42,960

Operating income

348,521

354,464

743,625

770,936

Non-operating income (expense):

Interest expense, net of amounts capitalized

(203,245

)

(203,936

)

(419,507

)

(413,323

)

Non-operating items from unconsolidated affiliates

(17,766

)

(23,996

)

(36,777

)

(46,211

)

Other, net

(4,815

)

(309

)

(8,305

)

(1,743

)

(225,826

)

(228,241

)

(464,589

)

(461,277

)

Income before income taxes

122,695

126,223

279,036

309,659

Benefit for income taxes

3,772

51,945

60,077

54,609

Net income

126,467

178,168

339,113

364,268

Less: Net income attributable to noncontrolling interests

(29,008

)

(68,160

)

(71,804

)

(151,608

)

Net income attributable to MGM Resorts International

97,459

110,008

267,309

212,660

Per share of common stock:

Basic:

Net income attributable to MGM Resorts International

0.18

0.22

0.51

0.43

Weighted average shares outstanding

551,358

490,786

521,556

490,692

Diluted:

Net income attributable to MGM Resorts International

0.17

0.22

0.50

0.42

Weighted average shares outstanding

570,114

513,371

572,699

513,287

Page 6 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)


	June 30, 2015		December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	2,342,340	$	1,713,715
Cash deposits - original maturities longer than 90 days		200,205		570,000
Accounts receivable, net		467,960		473,345
Inventories		106,914		104,011
Income tax receivable		12,947		14,675
Prepaid expenses and other		136,656		151,414

Total current assets		3,267,022		3,027,160

Property and equipment, net		14,791,558		14,441,542

Other assets:
Investments in and advances to unconsolidated affiliates		1,491,052		1,559,034
Goodwill		2,898,383		2,897,110
Other intangible assets, net		4,256,409		4,364,856
Other long-term assets, net		445,163		412,809

Total other assets		9,091,007		9,233,809

	$	27,149,587	$	26,702,511


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	174,246	$	164,252
Construction payable		203,354		170,439
Current portion of long-term debt		875,029		1,245,320
Deferred income taxes, net		83,310		62,142
Accrued interest on long-term debt		192,357		191,155
Other accrued liabilities		1,262,499		1,574,617

Total current liabilities		2,790,795		3,407,925

Deferred income taxes, net		2,525,636		2,621,860
Long-term debt		12,495,209		12,913,882
Other long-term obligations		156,117		130,570
Redeemable noncontrolling interest		5,000		—
Stockholders' equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 563,089,775 and 491,292,117 shares		5,631		4,913
Capital in excess of par value		5,649,288		4,180,922
Retained earnings (accumulated deficit)		159,400		(107,909	)
Accumulated other comprehensive income		13,891		12,991

Total MGM Resorts International stockholders' equity		5,828,210		4,090,917
Noncontrolling interests		3,348,620		3,537,357

Total stockholders' equity		9,176,830		7,628,274

	$	27,149,587	$	26,702,511

Page 7 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2015

June 30,
2014

June 30,
2015

June 30,
2014

Bellagio

318,925

332,213

620,861

652,069

MGM Grand Las Vegas

303,780

271,675

568,606

533,339

Mandalay Bay

242,002

233,506

468,937

452,890

The Mirage

157,000

146,670

299,505

294,918

Luxor

95,762

91,067

182,717

174,760

New York-New York

78,199

71,865

154,083

144,833

Excalibur

75,404

72,125

142,665

139,698

Monte Carlo

75,145

72,332

147,012

140,943

Circus Circus Las Vegas

63,470

53,942

114,854

102,667

MGM Grand Detroit

141,029

136,350

274,344

269,498

Beau Rivage

94,455

87,588

181,395

170,014

Gold Strike Tunica

39,886

39,500

79,721

76,419

Other resort operations

20,423

30,437

48,675

57,456

Wholly owned domestic resorts

1,705,480

1,639,270

3,283,375

3,209,504

MGM China

556,859

827,928

1,186,946

1,769,376

Management and other operations

122,796

113,835

247,058

232,551

2,385,135

2,581,033

4,717,379

5,211,431

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2015

June 30,
2014

June 30,
2015

June 30,
2014

Bellagio

103,803

115,619

192,970

220,768

MGM Grand Las Vegas

72,650

54,371

137,856

116,604

Mandalay Bay

60,796

53,003

114,784

109,003

The Mirage

38,099

28,910

68,619

64,329

Luxor

23,328

21,322

40,627

39,300

New York-New York

27,616

24,478

52,209

50,105

Excalibur

21,783

20,706

38,325

39,596

Monte Carlo

22,310

19,999

42,366

39,894

Circus Circus Las Vegas

11,358

7,213

19,191

12,522

MGM Grand Detroit

42,739

39,653

76,351

73,019

Beau Rivage

21,715

18,489

40,105

33,130

Gold Strike Tunica

11,034

10,185

22,584

19,752

Other resort operations

832

450

1,955

(778

)

Wholly owned domestic resorts

458,063

414,398

847,942

817,244

MGM China

132,217

210,488

280,673

451,213

Unconsolidated resorts(1)

42,900

20,345

160,281

42,960

Management and other operations

7,895

12,102

24,212

31,954

641,075

657,333

1,313,108

1,343,371

(1)

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

Page 8 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended June 30, 2015

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

81,114

—

(13

)

22,702

103,803

MGM Grand Las Vegas

53,890

—

18,668

72,650

Mandalay Bay

39,563

—

897

20,336

60,796

The Mirage

25,706

)

1,301

11,096

38,099

Luxor

13,741

—

9,585

23,328

New York-New York

22,237

232

—

5,147

27,616

Excalibur

17,999

—

101

3,683

21,783

Monte Carlo

15,630

6,667

22,310

Circus Circus Las Vegas

7,276

—

4,032

11,358

MGM Grand Detroit

36,806

—

5,933

42,739

Beau Rivage

15,197

—

6,518

21,715

Gold Strike Tunica

8,041

—

2,984

11,034

Other resort operations

611

—

221

832

Wholly owned domestic resorts

337,811

279

2,401

117,572

458,063

MGM China

57,606

3,770

497

70,344

132,217

Unconsolidated resorts

42,130

770

—

42,900

Management and other operations

4,749

277

956

1,913

7,895

442,296

5,096

3,854

189,829

641,075

Stock compensation

(7,315

)

—

(7,315

)

Corporate

(86,460

)

12,793

18,736

(54,832

)

348,521

17,889

3,953

208,565

578,928

Three Months Ended June 30, 2014

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

94,027

—

594

20,998

115,619

MGM Grand Las Vegas

34,429

—

207

19,735

54,371

Mandalay Bay

33,524

331

241

18,907

53,003

The Mirage

14,362

1,801

12,725

28,910

Luxor

11,734

)

9,590

21,322

New York-New York

19,755

4,578

24,478

Excalibur

16,605

—

332

3,769

20,706

Monte Carlo

14,091

464

154

5,290

19,999

Circus Circus Las Vegas

3,308

3,866

7,213

MGM Grand Detroit

33,804

—

5,771

39,653

Beau Rivage

11,476

—

559

6,454

18,489

Gold Strike Tunica

6,651

—

265

3,269

10,185

Other resort operations

(86

)

—

)

544

450

Wholly owned domestic resorts

293,680

897

4,325

115,496

414,398

MGM China

134,112

2,917

73,411

210,488

Unconsolidated resorts

20,244

101

—

20,345

Management and other operations

10,054

—

2,047

12,102

458,090

3,915

4,374

190,954

657,333

Stock compensation

(6,393

)

—

(6,393

)

Corporate

(97,233

)

5,844

28,796

12,116

(50,477

)

354,464

9,759

33,170

203,070

600,463

Page 9 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Six Months Ended June 30, 2015

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

147,451

—

184

45,335

192,970

MGM Grand Las Vegas

100,616

—

37,158

137,856

Mandalay Bay

74,884

—

1,156

38,744

114,784

The Mirage

43,580

1,300

23,689

68,619

Luxor

21,503

)

19,073

40,627

New York-New York

41,909

(75

)

264

10,111

52,209

Excalibur

30,908

—

7,335

38,325

Monte Carlo

29,944

529

11,892

42,366

Circus Circus Las Vegas

11,078

281

—

7,832

19,191

MGM Grand Detroit

64,545

—

11,806

76,351

Beau Rivage

27,056

—

13,049

40,105

Gold Strike Tunica

16,663

—

5,912

22,584

Other resort operations

1,504

—

451

1,955

Wholly owned domestic resorts

611,641

256

3,658

232,387

847,942

MGM China

129,972

6,841

829

143,031

280,673

Unconsolidated resorts

158,838

1,443

—

160,281

Management and other operations

18,863

544

956

3,849

24,212

919,314

9,084

5,443

379,267

1,313,108

Stock compensation

(14,894

)

—

(14,894

)

Corporate

(160,795

)

24,676

35,710

(100,310

)

743,625

33,760

5,542

414,977

1,197,904

Six Months Ended June 30, 2014

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Bellagio

175,878

—

573

44,317

220,768

MGM Grand Las Vegas

75,361

197

199

40,847

116,604

Mandalay Bay

67,935

1,133

239

39,696

109,003

The Mirage

36,954

1,948

25,405

64,329

Luxor

20,541

—

18,759

39,300

New York-New York

40,642

102

342

9,019

50,105

Excalibur

32,060

—

331

7,205

39,596

Monte Carlo

28,105

1,379

157

10,253

39,894

Circus Circus Las Vegas

4,845

)

7,649

12,522

MGM Grand Detroit

61,458

—

11,483

73,019

Beau Rivage

19,642

—

559

12,929

33,130

Gold Strike Tunica

13,016

—

265

6,471

19,752

Other resort operations

(1,855

)

—

)

1,085

(778

)

Wholly owned domestic resorts

574,582

2,869

4,675

235,118

817,244

MGM China

298,701

5,325

(56

)

147,243

451,213

Unconsolidated resorts

42,840

120

—

42,960

Management and other operations

27,015

—

4,938

31,954

943,138

8,314

4,620

387,299

1,343,371

Stock compensation

(13,092

)

—

(13,092

)

Corporate

(159,110

)

7,081

29,108

23,426

(99,495

)

770,936

15,395

33,728

410,725

1,230,784

Page 10 of 13

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2015

June 30,
2014

June 30,
2015

June 30,
2014

Adjusted EBITDA

578,928

600,463

1,197,904

1,230,784

Preopening and start-up expenses

(17,889

)

(9,759

)

(33,760

)

(15,395

)

Property transactions, net

(3,953

)

(33,170

)

(5,542

)

(33,728

)

Depreciation and amortization

(208,565

)

(203,070

)

(414,977

)

(410,725

)

Operating income

348,521

354,464

743,625

770,936

Non-operating income (expense):

Interest expense, net of amounts capitalized

(203,245

)

(203,936

)

(419,507

)

(413,323

)

Other, net

(22,581

)

(24,305

)

(45,082

)

(47,954

)

(225,826

)

(228,241

)

(464,589

)

(461,277

)

Income before income taxes

122,695

126,223

279,036

309,659

Benefit for income taxes

3,772

51,945

60,077

54,609

Net income

126,467

178,168

339,113

364,268

Less: Net income attributable to noncontrolling interests

(29,008

)

(68,160

)

(71,804

)

(151,608

)

Net income attributable to MGM Resorts International

97,459

110,008

267,309

212,660

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)


	Three Months Ended						Six Months Ended
	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
Bellagio
Occupancy%		96.9	%		95.8	%		92.6	%		94.0	%
Average daily rate (ADR)	$	264		$	259		$	266		$	261
Revenue per available room (REVPAR)	$	256		$	248		$	246		$	245

MGM Grand Las Vegas
Occupancy%		97.4	%		98.1	%		94.7	%		96.7	%
ADR	$	167		$	150		$	169		$	155
REVPAR	$	163		$	147		$	160		$	150

Mandalay Bay
Occupancy%		93.1	%		94.9	%		91.7	%		93.6	%
ADR	$	208		$	200		$	209		$	201
REVPAR	$	193		$	190		$	191		$	188

The Mirage
Occupancy%		96.5	%		96.9	%		93.3	%		95.8	%
ADR	$	169		$	162		$	171		$	166
REVPAR	$	163		$	157		$	159		$	159

Luxor
Occupancy%		96.1	%		97.2	%		94.2	%		95.3	%
ADR	$	107		$	97		$	106		$	99
REVPAR	$	103		$	94		$	100		$	94

New York-New York
Occupancy%		99.5	%		99.2	%		98.6	%		98.6	%
ADR	$	128		$	123		$	131		$	125
REVPAR	$	127		$	122		$	129		$	123

Excalibur
Occupancy%		97.4	%		98.0	%		93.7	%		94.6	%
ADR	$	87		$	80		$	86		$	81
REVPAR	$	85		$	79		$	81		$	77

Monte Carlo
Occupancy%		98.6	%		99.3	%		96.9	%		97.7	%
ADR	$	119		$	114		$	120		$	115
REVPAR	$	118		$	113		$	117		$	112

Circus Circus Las Vegas
Occupancy%		90.2	%		84.4	%		83.5	%		79.6	%
ADR	$	69		$	60		$	69		$	61
REVPAR	$	62		$	50		$	57		$	49

Page 11 of 13

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2015

June 30,
2014

June 30,
2015

June 30,
2014

Aria

249,777

245,144

488,632

498,833

Vdara

28,880

26,867

56,722

53,117

Crystals

17,510

16,649

34,867

33,401

Mandarin Oriental

15,598

15,411

31,609

31,852

Resort operations

311,765

304,071

611,830

617,203

Residential operations

10,217

15,804

28,391

39,089

321,982

319,875

640,221

656,292

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2015

June 30,
2014

June 30,
2015

June 30,
2014

Adjusted EBITDA

85,709

77,709

170,849

172,767

Property transactions, net

(697

)

(16,121

)

158,992

(18,696

)

Depreciation and amortization

(62,799

)

(86,423

)

(126,022

)

(173,943

)

Operating income

22,213

(24,835

)

203,819

(19,872

)

Non-operating income (expense):

Interest expense - other

(18,172

)

(22,518

)

(36,350

)

(45,370

)

Other, net

113

(4,435

)

286

(6,748

)

(18,059

)

(26,953

)

(36,064

)

(52,118

)

Net income (loss)

4,154

(51,788

)

167,755

(71,990

)

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended June 30, 2015


	Operating income (loss)			Preopening and start-up expenses		Property transactions, net		Depreciation and amortization		Adjusted EBITDA
Aria	$	17,105		$	—	$	660	$	45,273	$	63,038
Vdara		211			—		—		7,827		8,038
Crystals		5,060			—		37		6,629		11,726
Mandarin Oriental		(1,550	)		—		—		3,054		1,504

Resort operations		20,826			—		697		62,783		84,306
Residential operations		2,707			—		—		16		2,723
Development and administration		(1,320	)		—		—		—		(1,320	)

	$	22,213		$	—	$	697	$	62,799	$	85,709

Three Months Ended June 30, 2014


	Operating income (loss)			Preopening and start-up expenses		Property transactions, net		Depreciation and amortization		Adjusted EBITDA
Aria	$	(6,274	)	$	—	$	3,016	$	64,472	$	61,214
Vdara		(3,283	)		—		128		10,482		7,327
Crystals		4,430			—		126		6,646		11,202
Mandarin Oriental		(3,578	)		—		44		4,710		1,176

Resort operations		(8,705	)		—		3,314		86,310		80,919
Residential operations		2,084			—		—		113		2,197
Development and administration		(18,214	)		—		12,807		—		(5,407	)

	$	(24,835	)	$	—	$	16,121	$	86,423	$	77,709

Page 12 of 13

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2015


	Operating income (loss)			Preopening and start-up expenses		Property transactions, net			Depreciation and amortization			Adjusted EBITDA
Aria	$	31,872		$	—	$	947		$	90,979		$	123,798
Vdara		16			—		—			15,662			15,678
Crystals		9,909			—		41			13,451			23,401
Mandarin Oriental		(2,957	)		—		—			6,094			3,137

Resort operations		38,840			—		988			126,186			166,014
Residential operations		6,856			—		—			51			6,907
Development and administration		158,123			—		(159,980	)		(215	)		(2,072	)

	$	203,819		$	—	$	(158,992	)	$	126,022		$	170,849

Six Months Ended June 30, 2014

Operating
income (loss)

Preopening and
start-up
expenses

Property
transactions, net

Depreciation
and
amortization

Adjusted
EBITDA

Aria

1,282

—

4,323

130,101

135,706

Vdara

(6,234

)

—

128

20,707

14,601

Crystals

8,663

—

205

13,388

22,256

Mandarin Oriental

(6,288

)

—

9,429

3,185

Resort operations

(2,577

)

—

4,700

173,625

175,748

Residential operations

4,691

—

1,114

318

6,123

Development and administration

(21,986

)

—

12,882

—

(9,104

)

(19,872

)

—

18,696

173,943

172,767

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2015

June 30,
2014

June 30,
2015

June 30,
2014

Aria

Occupancy%

94.8

94.4

92.3

93.2

ADR

234

217

239

223

REVPAR

222

205

221

208

Vdara

Occupancy%

95.8

94.9

93.5

92.2

ADR

187

175

189

180

REVPAR

179

166

176

166

Page 13 of 13

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