The Wheel Hits Red for MGM (MGM) Following Q4 Earnings
Consolidated revenue rose 7 percent compared to the prior year quarter to $2.3 billion and topped the Street’s consensus of $2.21 billion.
Consolidated operating income was $91 million compared to $107 million in the fourth quarter of 2010.
Adjusted property EBITDA totaled $482 million, substantially higher compared to $294 million in the 2010 quarter. The company’s wholly-owned domestic resorts experienced an 18 percent increase in property EBITDA, while MGM China grew 23 percent and the CityCenter spiked 62 percent higher.
MGM reported a before-tax loss of $210.18 million, compared to a loss of $185.03 million during the same quarter last year. The loss attributable to MGM Resorts International came in at $113.69 million, compared to a loss of $139.19 million last year. Loss per share was $0.23, compared to a loss of $0.29 per share in the prior year's fourth quarter. The adjusted loss was $0.21 per share, versus the consensus loss of $0.19 per share.
The company ended the quarter with $1.865 billion in cash and cash equivalents, much higher than the $489.96 million it had at the end of last year’s fourth quarter.
MGM China’s Board of Directors announced a dividend of approximately $400 million, which will be paid to shareholders of record as of March 9, 2012 and distributed on or about March 20, 2012. MGM Resorts International will receive approximately $204 million, representing 51 percent of the dividend.
“2011 was a year in which we achieved many goals: operationally, strategically, and financially. Operationally, we enhanced our customer experience through targeted reinvestment in our properties and improved relationships through our M life customer loyalty program. Strategically, we acquired a majority interest in MGM China and began expanding our brand presence in key markets throughout the world, particularly Asia. Financially, our revenues and margins have improved year over year increasing our cash flow and strengthening our financial profile,” said Jim Murren, MGM Resorts International Chairman and CEO. “Going forward we expect to build off of these strategies to grow our company and maximize shareholder value.”