Form 8-K MGM Resorts Internationa For: Aug 04

 

 

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, 2016

 

 

MGM Resorts International

(Exact name of registrant as specified in its charter)

 

 

 

Delaware		001-10362		88-0215232
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer 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))

 

 

 

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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, 2016. 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, 2016. 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, 2016, announcing financial results for the quarter ended June 30, 2016.

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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, 2016				By:		/s/ Robert C. Selwood
						Robert C. Selwood
						Executive Vice President and Chief Accounting Officer

Exhibit 99.1

 

 

 

MGM RESORTS INTERNATIONAL REPORTS STRONG SECOND QUARTER

FINANCIAL AND OPERATING RESULTS

Las Vegas, Nevada, August 4, 2016 – MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter ended June 30, 2016.

Key highlights include:

 

•

Diluted earnings per share for the second quarter of 2016 was $0.83, including $0.57 related to a gain on CityCenter’s sale of The Shops at Crystals (“Crystals”), compared to diluted earnings per share of $0.17 in the prior year quarter;

•

Operating income was $769 million and included a $406 million gain related to the sale of Crystals;

•

Adjusted Property EBITDA surpassed $500 million for the first time since 2008 at the Company’s domestic resorts;

•

Achieved highest domestic resorts Adjusted Property EBITDA margins since 2007 of 30.4%;

•

Increased Profit Growth Plan target by 33% to $400 million;

•

Profit Growth Plan contributed approximately $64 million of Adjusted Property EBITDA growth to domestic resorts and approximately $9 million of Adjusted EBITDA growth to the Company from its 50% share of CityCenter’s results;

•

Announced and closed the acquisition of Boyd Gaming Corporation’s (“Boyd Gaming”) interest in the Borgata Hotel Casino & Spa (“Borgata”) and the subsequent sale of the real property to MGM Growth Properties LLC (“MGP”); and

•

Announced plans to partner with Sydell Group in rebranding Monte Carlo Resort to Park MGM and NoMad Hotel.

“I am incredibly proud of the concerted effort of our talented executive teams and employees that produced our most profitable quarter in eight years at our domestic resorts,” said Jim Murren, Chairman & CEO of MGM Resorts. “Our Profit Growth Plan drove our domestic resorts Adjusted Property EBITDA to grow an impressive 12% and Adjusted Property EBITDA margins to improve by over 350 basis points, despite a record-breaking May last year. With a solid foundation of operational excellence and the continued strength in the Las Vegas market, in which we are the clear leader, we believe that MGM Resorts is well-positioned to further improve our financial strength to deliver sustainable value to our shareholders.”

Key operating results for the second quarter of 2016 include:

 

•

Net revenues at the Company’s domestic resorts decreased 1% compared to the prior year quarter, but increased 1% excluding Circus Circus Reno, Railroad Pass, and the Company’s properties in Jean Nevada, which were sold during 2015;

•

Rooms revenue at the Company’s domestic resorts increased 2%, with a 3% increase in REVPAR(1) at the Company’s Las Vegas Strip resorts, compared to the prior year quarter;

•

Operating income at the Company’s domestic resorts increased 16% to $390 million compared to the prior year quarter;

•

The Company’s domestic resorts earned Adjusted Property EBITDA(2) of $515 million, a 12% increase compared to the prior year quarter;

•

Domestic resorts Adjusted Property EBITDA margin was 30.4%, a 354 basis point increase compared to the prior year quarter;

•

MGM China’s net revenues were $452 million, operating income was $51 million and Adjusted EBITDA was $119 million, a decrease of 19% , 11% and 10%, respectively, compared to the prior year quarter;

•

CityCenter’s net revenues related to resorts operations were $287 million compared to $295 million in the prior year quarter;

 

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•

CityCenter Adjusted EBITDA related to resort operations was $78 million, a 6% increase compared to the prior year quarter;

•

CityCenter made distributions of $1.08 billion, of which MGM Resorts received its 50% share, or $540 million; and

•

On August 4, 2016, MGM China’s Board of Directors announced an interim dividend of $58 million, which will be paid to shareholders of record as of August 22, 2016 and distributed on or about August 30, 2016. MGM Resorts will receive $30 million, representing its 51% share of the dividend.

Certain Items Affecting Second 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 June 30,		2016				2015
Preopening and start-up expenses			$      (0.03	)			$      (0.02	)
Income from unconsolidated affiliates:
Gain on the sale of Crystals			0.57				—

Domestic Resorts

Casino revenue for the three months ended June 30, 2016 increased less than 1% compared to the same period in the prior year due to an increase in table games revenue excluding Circus Circus Reno, Railroad Pass, and the Company’s properties in Jean Nevada, which were sold in 2015. Table games hold percentage in the second quarter of 2016 was 24.2% compared to 21.4% in the prior year quarter, while table games volume decreased 9% compared to the prior year quarter. Slots revenue decreased 1%, excluding the operations of resorts sold during 2015, compared to the prior year quarter. During the second quarter of 2015, the Company’s revenues and operations were positively affected by the Mayweather vs. Pacquiao fight held on May 2, 2015 at the MGM Grand Garden Arena.

Rooms revenue increased 2%, with an increase in Las Vegas Strip REVPAR of 3%. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

 

Three months ended June 30,		2016				2015
Occupancy %			95	%			96%
Average Daily Rate (ADR)		$	156				$      150
Revenue per Available Room (REVPAR)		$	148				$      144

Operating income for the Company’s domestic resorts increased 16% for the second quarter of 2016 compared to the prior year quarter. Domestic resorts Adjusted Property EBITDA was $515 million in the second quarter of 2016, a 12% increase compared to the prior year quarter, and was positively affected by approximately $64 million of incremental Adjusted Property EBITDA as a result of the Company’s Profit Growth Plan initiatives.

Corporate Expense

Corporate expense was $82 million, an increase of $22 million compared to the prior year quarter. The current year quarter included $5 million of costs incurred to implement initiatives related to the Profit Growth Plan and $16 million of costs incurred in connection with the MGP transactions.

 

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MGM China

On August 4, 2016, MGM China’s Board of Directors announced an interim dividend of $58 million, which will be paid to shareholders of record as of August 22, 2016 and distributed on or about August 30, 2016. MGM Resorts will receive $30 million, representing its 51% share of the dividend.

Key second quarter results for MGM China include:

 

•

Net revenues of $452 million, a 19% decrease compared to the prior year quarter;

•

Main floor table games revenue decreased 3% compared to the prior year quarter;

•

VIP table games revenue decreased 33% due to a decrease in turnover of 28% compared to the prior year quarter, and hold percentage decreased to 3.1% in the current year quarter, compared to 3.2% in the prior year quarter;

•

Operating income of $51 million, compared to operating income of $58 million in the prior year quarter;

•

Adjusted EBITDA of $119 million, a 10% decrease compared to the prior year quarter, including $8 million of license fee expense in the current year quarter and $10 million in the prior year quarter; and

•

Operating margin increased by 104 basis points compared to the prior year quarter to 11.4%, and Adjusted EBITDA margin increased by 263 basis points compared to the prior year quarter to 26.4% as a result of an increase in main floor table games mix and continuous efforts to reduce costs.

MGM China paid the previously announced $46 million final 2015 dividend in June 2016, of which $23 million was received by MGM Resorts.

Unconsolidated Affiliates

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

 

Three months ended June 30,		2016				2015
		(In thousands)
CityCenter		$	416,144			$	21,515
Borgata			27,376				15,767
Other			4,789				5,618
		$	448,309			$	42,900

On April 14, 2016, CityCenter Holdings, LLC (“CityCenter”) closed the sale of Crystals for approximately $1.1 billion. As a result, CityCenter reported a $411 million gain within discontinued operations for the second quarter of 2016. Further, MGM Resorts recorded a $406 million gain, which included $205 million representing its 50% share of the gain recorded by CityCenter and $201 million representing the reversal of certain basis differences.

CityCenter’s results for the second quarter of 2016 included $20 million of accelerated depreciation associated with the April 2016 closure of the Zarkana theatre.

Results for CityCenter for the second quarter of 2016 include the following (see schedules accompanying this release for further detail on CityCenter’s second quarter results):

 

•

Net revenues from resort operations were $287 million, a 3% decrease compared to the prior year quarter;

•

Operating loss was $0.4 million, which included $20 million of accelerated depreciation as discussed above compared to operating income of $16 million in the prior year;

 

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•

Adjusted EBITDA from resort operations of $78 million, an increase of 6% compared to the prior year quarter; this was positively affected by approximately $18 million of incremental Adjusted EBITDA attributable to Profit Growth Plan initiatives;

•

Adjusted EBITDA at Aria of $68 million increased by 7% compared to the prior year quarter;

•

Aria’s table games volume decreased 22% and table games hold percentage was 19.5%, compared to 21.5% in the prior year quarter;

•

REVPAR at Aria of $228, a 3% increase compared to the prior year quarter; and

•

REVPAR at Vdara of $190, a 6% increase compared to the prior year quarter, and a 2% increase in Adjusted EBITDA compared to the prior year quarter.

The Company’s income from unconsolidated affiliates related to Borgata for the second quarter of 2016 increased 74%, compared to the prior year quarter, due to higher casino revenue as well as lower property tax expense due to the application of credits from a prior tax court judgment to Borgata’s second quarter property tax payment.

In May 2016, the Company entered into a definitive agreement to acquire Boyd Gaming’s interest in Borgata. Further, the Company and MGP, a subsidiary of the Company, entered into a definitive agreement whereby, following the completion of the acquisition of Boyd Gaming’s interest, MGP acquired Borgata’s real property from the Company and leased back the real property to a subsidiary of the Company (together, the “Transactions”). In connection with MGP’s acquisition of Borgata’s real property, the Company’s ownership in MGM Growth Properties Operating Partnership LP (the “Operating Partnership”) increased to 76.3%.

The Transactions closed on August 1, 2016, at which time the Borgata became a consolidated subsidiary of the Company. The Company expects to record an approximately $400 million gain as a result of its consolidation of Borgata. Cash proceeds paid to Boyd Gaming for its interest were $589 million, after customary working capital adjustments and consideration of Borgata’s outstanding debt of approximately $575 million, which was repaid using a combination of excess cash and a $295 million draw on MGP’s credit facility.

MGM Growth Properties

During the second quarter of 2016, the Company made rent payments to MGP in the amount of $101 million. On June 16, 2016, MGP’s Board of Directors declared a pro-rated quarterly dividend of $0.2632 per Class A common share totaling $15 million, which was paid on July 15, 2016 to holders of record on June 30, 2016. The Company concurrently received a $42 million distribution attributable to its ownership of Operating Partnership units.

Financial Position

The Company’s cash balance at June 30, 2016 was $2.5 billion, which included $447 million at MGM China and $338 million at MGP. At June 30, 2016, the Company had $250 million outstanding under its $1.5 billion senior secured credit facility, $2.1 billion outstanding under the $2.74 billion MGP senior credit facility, $1.7 billion outstanding under the $3 billion MGM China credit facility, and $350 million outstanding under the $525 million MGM National Harbor credit facility.

“Our strong operating results and the strategic initiatives we have successfully completed this year including the initial public offering of MGM Growth Properties, the acquisition and subsequent sale of the real property of Borgata, and the sale of Crystals and its related CityCenter distribution, have significantly strengthened our financial position,” said Dan D’Arrigo, Executive Vice President and CFO of MGM Resorts International. “We remain focused on maximizing our free cash flow, which we believe will allow us to achieve our goal of becoming investment grade.”

 

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Conference Call Details

MGM Resorts will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through 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 1565234. A replay of the call will be available through Thursday, August 11, 2016. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10089496. The call will be archived at www.mgmresorts.com. In addition, MGM Resorts will post supplemental slides today on its website at www.mgmresorts.investorroom.com for reference during its August 4, 2016 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, goodwill impairment charges and property transactions, net. “Adjusted Property EBITDA” is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts stock option plan, which is not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted EBITDA for MGM China. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.

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

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

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

*     *    *

 

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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. MGM Resorts controls and holds a 73 percent economic interest in the operating partnership of MGM Growth Properties LLC (NYSE: MGP), a premier triple-net lease real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts. The Company also owns 51 percent of MGM China Holdings Limited (HK: 2282), 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. MGM Resorts is named among FORTUNE® Magazine’s 2016 list of World’s Most Admired Companies®. 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, the realization of any benefits from the MGP transactions and the Company’s ability to execute its strategic plan and improve its financial flexibility. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

 

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

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,				June 30,				June 30,				June 30,
		2016				2015				2016				2015
Revenues:
Casino		$	1,127,404			$	1,235,976			$	2,261,760			$	2,514,478
Rooms			498,904				490,498				988,390				949,923
Food and beverage			412,766				423,183				789,871				807,284
Entertainment			121,853				134,972				240,179				260,940
Retail			52,432				55,482				97,905				100,519
Other			134,120				137,819				251,645				264,369
Reimbursed costs			100,795				103,548				201,844				204,608
			2,448,274				2,581,478				4,831,594				5,102,121
Less: Promotional allowances			(178,772)				(196,343)				(352,406)				(384,742)
			2,269,502				2,385,135				4,479,188				4,717,379
Expenses:
Casino			620,305				738,427				1,260,874				1,521,235
Rooms			142,252				142,065				286,994				283,378
Food and beverage			239,452				243,127				460,748				464,648
Entertainment			98,827				104,397				191,115				201,396
Retail			24,085				28,398				46,086				52,494
Other			87,253				95,835				167,021				180,158
Reimbursed costs			100,795				103,548				201,844				204,608
General and administrative			321,407				333,708				629,950				661,881
Corporate expense			81,803				59,602				153,051				109,958
Preopening and start-up expenses			24,824				17,889				46,784				33,760
Property transactions, net			854				3,953				5,985				5,542
Depreciation and amortization			206,899				208,565				406,738				414,977
			1,948,756				2,079,514				3,857,190				4,134,035
Income from unconsolidated affiliates			448,309				42,900				463,011				160,281
Operating income			769,055				348,521				1,085,009				743,625
Non-operating income (expense):
Interest expense, net of amounts capitalized			(180,352)				(203,245)				(365,021)				(419,507)
Non-operating items from unconsolidated affiliates			(15,885)				(17,766)				(34,097)				(36,777)
Other, net			(49,840)				(4,815)				(50,405)				(8,305)
			(246,077)				(225,826)				(449,523)				(464,589)
Income before income taxes			522,978				122,695				635,486				279,036
Benefit (provision) for income taxes			(8,480)				3,772				(29,790)				60,077
Net income			514,498				126,467				605,696				339,113
Less: Net income attributable to noncontrolling interests			(40,145)				(29,008)				(64,544)				(71,804)
Net income attributable to MGM Resorts International		$	474,353			$	97,459			$	541,152			$	267,309
Per share of common stock:
Basic:
Net income attributable to MGM Resorts International		$	0.84			$	0.18			$	0.96			$	0.51
Weighted average shares outstanding			565,459				551,358				565,257				521,556
Diluted:
Net income attributable to MGM Resorts International		$	0.83			$	0.17			$	0.95			$	0.50
Weighted average shares outstanding			570,762				570,114				570,108				572,699

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

		June 30, 2016				December 31, 2015
ASSETS
Current assets:
Cash and cash equivalents		$	2,503,255			$	1,670,312
Accounts receivable, net			443,903				480,559
Inventories			97,800				104,200
Income tax receivable			11,194				15,993
Prepaid expenses and other			137,635				137,685
Total current assets			3,193,787				2,408,749
Property and equipment, net			16,102,856				15,371,795
Other assets:
Investments in and advances to unconsolidated affiliates			1,364,163				1,491,497
Goodwill			1,429,279				1,430,767
Other intangible assets, net			4,072,317				4,164,781
Other long-term assets, net			386,653				347,589
Total other assets			7,252,412				7,434,634
		$	26,549,055			$	25,215,178
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	161,420			$	182,031
Construction payable			333,796				250,120
Current portion of long-term debt			-				328,442
Accrued interest on long-term debt			160,445				165,914
Other accrued liabilities			1,262,118				1,311,444
Total current liabilities			1,917,779				2,237,951
Deferred income taxes, net			2,591,317				2,680,576
Long-term debt			12,364,920				12,368,311
Other long-term obligations			141,906				157,663
Redeemable noncontrolling interest			6,250				6,250
Stockholders’ equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 565,612,013 and 564,838,893 shares			5,656				5,648
Capital in excess of par value			5,530,592				5,655,886
Accumulated deficit			(14,477)				(555,629)
Accumulated other comprehensive income			10,809				14,022
Total MGM Resorts International stockholders’ equity			5,532,580				5,119,927
Noncontrolling interests			3,994,303				2,644,500
Total stockholders’ equity			9,526,883				7,764,427
		$	26,549,055			$	25,215,178

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,				June 30,				June 30,				June 30,
		2016				2015				2016				2015
Bellagio		$	332,812			$	318,925			$	662,551			$	620,861
MGM Grand Las Vegas			300,232				303,780				568,686				568,606
Mandalay Bay			237,980				242,002				468,161				468,937
The Mirage			153,041				157,000				297,636				299,505
Luxor			95,144				95,762				188,016				182,717
New York-New York			83,056				78,199				164,427				154,083
Excalibur			78,453				75,404				152,741				142,665
Monte Carlo			71,208				75,145				140,928				147,012
Circus Circus Las Vegas			61,235				63,470				118,192				114,854
MGM Grand Detroit			140,462				141,029				281,327				274,344
Beau Rivage			99,388				94,455				188,825				181,395
Gold Strike Tunica			41,480				39,886				82,224				79,721
Other resort operations (1)			-				20,423				-				48,675
Domestic resorts			1,694,491				1,705,480				3,313,714				3,283,375
MGM China			451,951				556,859				920,980				1,186,946
Management and other operations			123,060				122,796				244,494				247,058
		$	2,269,502			$	2,385,135			$	4,479,188			$	4,717,379
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA (In thousands) (Unaudited)
		Three Months Ended								Six Months Ended
		June 30,				June 30,				June 30,				June 30,
		2016				2015				2016				2015
Bellagio		$	117,538			$	103,803			$	234,189			$	192,970
MGM Grand Las Vegas			97,489				72,650				178,383				137,856
Mandalay Bay			63,203				60,796				121,325				114,784
The Mirage			35,848				38,099				74,178				68,619
Luxor			26,054				23,328				51,445				40,627
New York-New York			30,478				27,616				61,381				52,209
Excalibur			24,954				21,783				48,831				38,325
Monte Carlo			21,820				22,310				43,120				42,366
Circus Circus Las Vegas			13,172				11,358				26,465				19,191
MGM Grand Detroit			43,790				42,739				83,832				76,351
Beau Rivage			28,036				21,715				50,835				40,105
Gold Strike Tunica			12,701				11,034				26,030				22,584
Other resort operations (1)			-				832				-				1,955
Domestic resorts			515,083				458,063				1,000,014				847,942
MGM China			119,196				132,217				233,319				280,673
Unconsolidated resorts (2)			448,309				42,900				463,011				160,281
Management and other operations			4,372				7,895				8,487				24,212
		$	1,086,960			$	641,075			$	1,704,831			$	1,313,108

(1) Sold in 2015

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

 

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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, 2016

 

		Operating     income (loss)				Preopening and     start-up expenses				Property   transactions, net				Depreciation and   amortization				Adjusted EBITDA
Bellagio		$	95,085			$	-			$	60			$	22,393			$	117,538
MGM Grand Las Vegas			79,293				-				(263)				18,459				97,489
Mandalay Bay			40,629				15				284				22,275				63,203
The Mirage			26,132				-				(413)				10,129				35,848
Luxor			15,161				1,444				86				9,363				26,054
New York-New York			25,006				372				97				5,003				30,478
Excalibur			20,741				-				203				4,010				24,954
Monte Carlo			9,494				145				61				12,120				21,820
Circus Circus Las Vegas			9,199				-				(4)				3,977				13,172
MGM Grand Detroit			37,815				-				-				5,975				43,790
Beau Rivage			21,460				-				(72)				6,648				28,036
Gold Strike Tunica			10,273				-				(4)				2,432				12,701
Other resort operations (1)			-				-				-				-				-
Domestic resorts			390,288				1,976				35				122,784				515,083
MGM China			51,453				6,540				1,281				59,922				119,196
Unconsolidated resorts			447,504				805				-				-				448,309
Management and other operations			2,521				-				-				1,851				4,372
			891,766				9,321				1,316				184,557				1,086,960
Stock compensation			(10,440)				-				-				-				(10,440)
Corporate			(112,271)				15,503				(462)				22,342				(74,888)
		$	769,055			$	24,824			$	854			$	206,899			$	1,001,632
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				-				92				18,668				72,650
Mandalay Bay			39,563				-				897				20,336				60,796
The Mirage			25,706				(4)				1,301				11,096				38,099
Luxor			13,741				-				2				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				1				12				6,667				22,310
Circus Circus Las Vegas			7,276				50				-				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				-				9				2,984				11,034
Other resort operations			611				-				-				221				832
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				99				18,736				(54,832)
		$	348,521			$	17,889			$	3,953			$	208,565			$	578,928

(1) Sold in 2015

 

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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, 2016

 

		Operating     income (loss)				Preopening and start-up expenses				Property   transactions, net				Depreciation and   amortization				Adjusted EBITDA
Bellagio		$	189,253			$	-			$	61			$	44,875			$	234,189
MGM Grand Las Vegas			141,555				-				500				36,328				178,383
Mandalay Bay			75,484				29				1,158				44,654				121,325
The Mirage			54,126				-				(413)				20,465				74,178
Luxor			31,046				1,444				373				18,582				51,445
New York-New York			50,493				372				100				10,416				61,381
Excalibur			37,710				-				2,969				8,152				48,831
Monte Carlo			26,271				145				152				16,552				43,120
Circus Circus Las Vegas			18,288				-				130				8,047				26,465
MGM Grand Detroit			71,846				-				-				11,986				83,832
Beau Rivage			37,650				-				(62)				13,247				50,835
Gold Strike Tunica			21,104				-				93				4,833				26,030
Other resort operations (1)			-				-				-				-				-
Domestic resorts			754,826				1,990				5,061				238,137				1,000,014
MGM China			98,905				12,448				1,271				120,695				233,319
Unconsolidated resorts			459,924				3,087				-				-				463,011
Management and other operations			3,585				1,150				-				3,752				8,487
			1,317,240				18,675				6,332				362,584				1,704,831
Stock compensation			(20,309)				-				-				-				(20,309)
Corporate			(211,922)				28,109				(347)				44,154				(140,006)
		$	1,085,009			$	46,784			$	5,985			$	406,738			$	1,544,516
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				-				82				37,158				137,856
Mandalay Bay			74,884				-				1,156				38,744				114,784
The Mirage			43,580				50				1,300				23,689				68,619
Luxor			21,503				(1)				52				19,073				40,627
New York-New York			41,909				(75)				264				10,111				52,209
Excalibur			30,908				-				82				7,335				38,325
Monte Carlo			29,944				1				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				-				9				5,912				22,584
Other resort operations			1,504				-				-				451				1,955
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				99				35,710				(100,310)
		$	743,625			$	33,760			$	5,542			$	414,977			$	1,197,904

(1) Sold in 2015

 

 

Page 11 of 14

 

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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,				June 30,				June 30,				June 30,
		2016				2015				2016				2015
Adjusted EBITDA		$	1,001,632			$	578,928			$	1,544,516			$	1,197,904
Preopening and start-up expenses			(24,824)				(17,889)				(46,784)				(33,760)
Property transactions, net			(854)				(3,953)				(5,985)				(5,542)
Depreciation and amortization			(206,899)				(208,565)				(406,738)				(414,977)
Operating income			769,055				348,521				1,085,009				743,625
Non-operating income (expense):
Interest expense, net of amounts capitalized			(180,352)				(203,245)				(365,021)				(419,507)
Other, net			(65,725)				(22,581)				(84,502)				(45,082)
			(246,077)				(225,826)				(449,523)				(464,589)
Income before income taxes			522,978				122,695				635,486				279,036
Benefit (provision) for income taxes			(8,480)				3,772				(29,790)				60,077
Net income			514,498				126,467				605,696				339,113
Less: Net income attributable to noncontrolling interests			(40,145)				(29,008)				(64,544)				(71,804)
Net income attributable to MGM Resorts International		$	474,353			$	97,459			$	541,152			$	267,309

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)

 

 

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CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

		Three Months Ended								Six Months Ended
		June 30,				June 30,				June 30,				June 30,
		2016				2015				2016				2015
Aria		$	240,800			$	250,933			$	495,525			$	491,083
Vdara			29,846				28,880				59,634				56,722
Mandarin Oriental			16,191				15,598				33,219				31,609
Resort operations			286,837				295,411				588,378				579,414
Residential and other operations			2,149				10,217				2,149				28,391
		$	288,986			$	305,628			$	590,527			$	607,805
CITYCENTER HOLDINGS, LLC RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (In thousands) (Unaudited)
		Three Months Ended								Six Months Ended
		June 30,				June 30,				June 30,				June 30,
		2016				2015				2016				2015
Adjusted EBITDA		$	77,107			$	74,440			$	168,122			$	148,492
Property transactions, net			574				(661)				2,012				159,032
Depreciation and amortization			(78,100)				(57,707)				(197,696)				(115,645)
Operating income (loss)			(419)				16,072				(27,562)				191,879
Non-operating income (expense):
Interest expense - other			(14,209)				(18,082)				(31,401)				(36,116)
Other, net			78				19				(3,756)				(14)
			(14,131)				(18,063)				(35,157)				(36,130)
Net income (loss) from continuing operations			(14,550)				(1,991)				(62,719)				155,749
Discontinued operations
Income from operations of discontinued component			411,592				6,145				400,035				12,006
Net income		$	397,042			$	4,154			$	337,316			$	167,755
CITYCENTER HOLDINGS, LLC RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA (In thousands) (Unaudited)   Three Months Ended June 30, 2016
		Operating income  (loss)				Preopening and  start-up expenses				Property  transactions, net				Depreciation and  amortization				Adjusted EBITDA
Aria		$	769			$	-			$	(581)			$	68,028			$	68,216
Vdara			1,197				-				7				6,972				8,176
Mandarin Oriental			(1,748)				-				-				3,100				1,352
Resort operations			218				-				(574)				78,100				77,744
Residential, administration and other operations			(637)				-				-				-				(637)
		$	(419)			$	-			$	(574)			$	78,100			$	77,107
Three Months Ended June 30, 2015
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	16,024			$	-			$	661			$	46,810			$	63,495
Vdara			211				-				-				7,827				8,038
Mandarin Oriental			(1,550)				-				-				3,054				1,504
Resort operations			14,685				-				661				57,691				73,037
Residential, administration and other operations			1,387				-				-				16				1,403
		$	16,072			$	-			$	661			$	57,707			$	74,440

 

Page 13 of 14

 

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CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Six Months Ended June 30, 2016

 

		Operating     income (loss)				Preopening and start-up expenses				Property  transactions, net				Depreciation and  amortization				Adjusted EBITDA
Aria		$	(27,559)			$	-			$	(472)			$	177,589			$	149,558
Vdara			3,460				-				(329)				13,908				17,039
Mandarin Oriental			(2,984)				-				-				6,199				3,215
Resort operations			(27,083)				-				(801)				197,696				169,812
Residential, administration and other operations			(479)				-				(1,211)				-				(1,690)
		$	(27,562)			$	-			$	(2,012)			$	197,696			$	168,122
Six Months Ended June 30, 2015
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and  amortization				Adjusted EBITDA
Aria		$	29,841			$	-			$	948			$	94,053			$	124,842
Vdara			16				-				-				15,662				15,678
Mandarin Oriental			(2,957)				-				-				6,094				3,137
Resort operations			26,900				-				948				115,809				143,657
Residential, administration and other operations			164,979				-				(159,980)				(164)				4,835
		$	191,879			$	-			$	(159,032)			$	115,645			$	148,492

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

 

		Three Months Ended						Six Months Ended
		June 30,		June 30,				June 30,		June 30,
		2016		2015				2016		2015
Aria
Occupancy %		93.8%		94.8%				92.1%		92.3%
ADR		$243		$234				$249		$239
REVPAR		$228		$222				$229		$221
Vdara
Occupancy %		94.5%		95.8%				92.7%		93.5%
ADR		$201		$187				$205		$189
REVPAR		$190		$179				$190		$176

 

Page 14 of 14