October 29, 2020

MGM Resorts International Reports Third Quarter Financial And Operating Results

LAS VEGAS, Oct. 29, 2020 /PRNewswire/ — MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial…

LAS VEGAS, Oct. 29, 2020 /PRNewswire/ — MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter ended September 30, 2020.

“The third quarter offered signs of stability and recovery driven by strength at our U.S. Regional Operations. We saw sequential improvement in all our markets and several of our regional properties delivered quarterly Adjusted Property EBITDAR records,” said Bill Hornbuckle, CEO of MGM Resorts International. “We remain focused on responding to the pandemic with effective health and safety protocols. We have modified our operating model to adapt to the current environment and we are executing on our long-term growth initiatives, particularly in U.S. sports betting and iGaming, where BetMGM has gained significant momentum.”

“Our domestic liquidity, excluding MGP and MGM China, remained substantial at $4.5 billion as the Company worked diligently to significantly reduce our cash outflows during the third quarter,” said Corey Sanders, Chief Financial Officer and Treasurer of MGM Resorts. “In October, we opportunistically issued an additional $750 million in aggregate principal amount of senior notes at an attractive rate to further fortify our financial position.”

Third Quarter 2020 Financial Highlights:

Consolidated Results

  • Consolidated net revenues decreased 66% compared to the prior year quarter to $1.1 billion, primarily driven by a partial quarter of operations at certain of the Company’s domestic properties and restrictions related to the pandemic as further discussed below;
  • Consolidated operating loss was $495 million compared to consolidated operating income of $238 million in the prior year quarter;
  • Net loss attributable to MGM Resorts of $535 million compared to net loss attributable to MGM Resorts of $37 million in the prior year quarter;
  • Diluted loss per share of $1.08 in the current quarter compared to diluted loss per share of $0.08 in the prior year quarter;
  • Adjusted diluted earnings per share (“Adjusted EPS”)(1) was a loss per share of $1.08 in the current quarter compared to Adjusted EPS of $0.31 in the prior year quarter; and
  • Consolidated Adjusted EBITDAR(2) loss of $49 million in the current quarter.

Financial Position & Liquidity

  • Cash and cash equivalents balance as of September 30, 2020 was $4.6 billion, which included $655 million at the MGP Operating Partnership and $396 million at MGM China;
  • Total liquidity at September 30, 2020 was $7.8 billion, which included $1.9 billion at the MGP Operating Partnership and $1.4 billion at MGM China, which was comprised of cash and cash equivalents and capacity under the revolving credit facilities at the Company, MGP Operating Partnership and MGM China;
  • At September 30, 2020, principal amount of indebtedness outstanding was $11.5 billion, including $3.6 billion outstanding at the MGP Operating Partnership and $2.7 billion outstanding at MGM China; and
  • MGM Resorts has $700 million remaining under its agreement with MGP to purchase up to $1.4 billion of the MGP Operating Partnership units owned by MGM Resorts for cash through February 2022.

Las Vegas Strip Resorts

  • Net revenues decreased 68% compared to the prior year quarter to $481 million as a result of operational restrictions related to the pandemic and a partial quarter of operations at The Mirage and Park MGM;
  • Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) decreased 67% compared to the prior year quarter to $489 million;
  • Adjusted Property EBITDAR decreased 97% to $15 million compared to $441 million in the prior year quarter; and
  • Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) decreased 95% to $21 million compared to $438 million in the prior year quarter.

Regional Operations

  • Net revenues decreased 40% compared to the prior year quarter to $557 million as a result of a partial quarter of operations at certain of the Company’s Regional Operations properties and a decrease in non-gaming revenues as a result of operational restrictions related to the pandemic;
  • Adjusted Property EBITDAR decreased 46% to $146 million compared to $269 million the prior year quarter;
  • Adjusted Property EBITDAR margin of 26.2% in the current quarter, a 261 basis point decrease compared to the prior year quarter; and
  • The following provides a comparison of the Company’s Regional Operations properties with operations during the entirety of the current and prior year quarters, which included Gold Strike, Beau Rivage, MGM Northfield Park, and MGM National Harbor:
    • Net revenues decreased 15% compared to the prior year quarter, due primarily to a decrease in non-gaming revenues;
    • Adjusted Property EBITDAR increased 7% compared to the prior year quarter; and
    • Adjusted Property EBITDAR margin increased 768 basis points compared to the prior year quarter.

MGM China

  • Net revenues decreased 94% compared to the prior year quarter to $47 million;
  • VIP Table Games Hold Adjusted MGM China Net Revenues(3) decreased 92% compared to the prior year quarter to $54 million;
  • Adjusted Property EBITDAR loss of $96 million compared to Adjusted Property EBITDAR of $184 million in the prior year quarter; and
  • VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR(2) loss of $93 million compared to VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR of $170 million in the prior year quarter.

Adjusted Diluted Earnings Per Share

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

Three Months Ended September 30,


2020




2019


Diluted earnings (loss) per share


$

(1.08)




$

(0.08)


Property transactions, net



0.01





0.48


Non-operating expense:










Foreign currency gain on MGM China senior notes







0.01


Change in fair value of MGP swaps



(0.01)






Items from unconsolidated affiliates:










CityCenter property transactions, net







(0.01)


Change in fair value of CityCenter swaps







0.01


Income tax impact on net income adjustments)(1)







(0.10)


Adjusted diluted earnings (loss) per share


$

(1.08)




$

0.31




(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 2020 decreased 44% compared to the prior year quarter at the Company’s Las Vegas Strip Resorts, due primarily to a partial quarter of operations at The Mirage and Park MGM, and operational restrictions related to the pandemic.

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

Three Months Ended September 30,


2020


2019

% change



(Dollars in millions)


Table Games Drop


$498


$842

(41)%

Table Games Win %


21.6%


24.2%


Slots Handle


$1,944


$3,280

(41)%

Slots Hold %


9.4%


9.4%


Rooms revenue decreased 71% compared to the prior year quarter at the Company’s Las Vegas Strip Resorts due primarily to the decrease in occupancy as a result of operational restrictions related to the pandemic.

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

Three Months Ended September 30,


2020


2019

% change

Occupancy %


44%


92%


Average Daily Rate (ADR)


$139


$164

(15.2)%

Revenue per Available Room (REVPAR)(1) (4)


$61


$152

(59.6)%



(1)

Rooms that were out of service during the three and nine months ended September 30, 2020 as a result of property closures due to the COVID-19 pandemic were excluded from the available room count when calculating hotel occupancy and REVPAR.

Regional Operations

Casino revenue for the third quarter of 2020 decreased 30% compared to the prior year quarter at the Company’s Regional Operations due primarily to a partial quarter of operations at MGM Springfield, Borgata, MGM Grand Detroit and Empire City.

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

Three Months Ended September 30,


2020


2019

% change



(Dollars in millions)


Table Games Drop


$739


$1,122

(34)%

Table Games Win %


21.0%


19.6%


Slots Handle


$4,360


$6,666

(35)%

Slots Hold %


9.8%


9.4%


MGM China

Key third quarter results for MGM China include:

  • Net revenues decreased 94% compared to the prior year quarter to $47 million as a result of travel restrictions to Macau as well as other operational restrictions related to the pandemic;
  • Main floor table games win decreased 95% compared to the prior year quarter;
  • VIP table games win decreased 95% compared to the prior year quarter; and
  • Adjusted Property EBITDAR loss of $96 million compared to Adjusted Property EBITDAR of $184 million in the prior year quarter. The current quarter included $1 million of license fee expense compared to $13 million in the prior year quarter.

The following table shows key gaming statistics for MGM China:

Three Months Ended September 30,


2020


2019

% change



(Dollars in millions)


VIP Table Games Turnover


$929


$8,646

(89)%

VIP Table Games Win %


1.9%


3.7%


Main Floor Table Games Drop


$143


$2,117

(93)%

Main Floor Table Games Win %


17.3%


23.6%


Corporate Expense

Corporate expense, including share-based compensation for corporate employees, was $70 million in the third quarter of 2020, compared to $109 million in the prior year quarter. The current quarter included $2 million in corporate initiatives costs compared to $15 million in costs in the prior year quarter to implement the MGM 2020 Plan, Real Estate Committee costs, and finance modernization costs.

Unconsolidated Affiliates

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

Three Months Ended September 30,


2020



2019




(In thousands)


CityCenter


$

(6,041)



$

39,317


MGP BREIT Venture



38,976





Other



(12,300)




(3,103)




$

20,635



$

36,214


For the three months ended September 30, 2020, CityCenter’s net loss was $45 million and Adjusted EBITDA(5)  was $25 million compared to net income of $33 million and Adjusted EBITDA of $109 million, in the prior year quarter, primarily as a result of the operational restrictions related to the pandemic.

MGM Growth Properties

During the third quarter of 2020, the Company made rent payments to MGM Growth Properties Operating Partnership LP (“MGP Operating Partnership”) in the amount of $207 million and received distributions of $84 million from the MGP Operating Partnership. In September 2020, the Board of Directors of MGM Growth Properties LLC (“MGP”) approved a quarterly dividend of $0.4875 per Class A share (which represents a dividend of $1.95 per share on an annualized basis) totaling $64 million, which was paid on October 15, 2020 to holders of record on September 30, 2020. The Company concurrently received an $84 million distribution attributable to its ownership of MGP Operating Partnership units.

MGM Resorts Dividend

To preserve liquidity in light of the impact of COVID-19 on its business operations, the Company has temporarily reduced its dividend to an annual dividend of $0.01 per share. On October 29, 2020, the Company’s Board of Directors approved a quarterly dividend of $0.0025 per share. The dividend will be payable on December 15, 2020 to holders of record on December 10, 2020.

Conference Call Details

MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today, which will include a brief discussion of the results followed by a question and answer session. In addition, supplemental slides will be posted prior to the start of the call on MGM’s Investor Relations website at http://investors.mgmresorts.com.

The call will be accessible via the Internet through https://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 1083854.

A replay of the call will be available through Thursday, November 5, 2020. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10147986. The call will be archived at https://investors.mgmresorts.com.

1.             “Adjusted EPS” is diluted earnings or loss per share adjusted to exclude preopening and start-up expenses, property transactions, net, gain on REIT transactions, net, CEO transition expense, October 1 litigation settlement, 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, foreign currency 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 this release.

2.             “Adjusted EBITDAR” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, gain on REIT transactions, net, CEO transition expense, October 1 litigation settlement, 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), rent expense associated with triple net operating and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, and property transactions, net. 

“Adjusted Property EBITDAR” is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. Adjusted Property EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, gain on REIT 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), rent expense associated with triple net operating and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, property transactions, net, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment, and rent expense related to the master lease with MGM Growth Properties that eliminates in consolidation. The Company manages capital allocation, tax planning, stock compensation, and financing decisions at the corporate level. “Adjusted Property EBITDAR margin” is Adjusted Property EBITDAR divided by related segment net revenues.

 “Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR” and “VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR” are supplemental non-GAAP financial measures, that, in addition to the reasons described above for the presentation of Adjusted  Property EBITDAR, 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 EBITDAR 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 EBITDAR 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 EBITDAR and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR 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 EBITDAR information is a valuation metric, should not be used as an operating metric, and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is widely used by analysts, lenders, financial institutions, and investors as a principal basis for the valuation of gaming companies. Management believes that while items excluded from Adjusted EBITDAR 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. Also, management believes excluded items may not relate specifically to current 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, management changed its non-GAAP measure as a result of the Bellagio real estate transaction in the fourth quarter of 2019 to exclude rent expense associated with triple net operating leases and ground leases. Management believes excluding rent expense associated with triple net operating leases and ground leases provides useful information to analysts, lenders, financial institutions, and investors when valuing the Company, as well as comparing  the Company’s results to other gaming companies, without regard to differences in capital structure and leasing arrangements since the operations of other gaming companies may or may not include triple net operating leases or ground leases. However, as discussed herein, Adjusted EBITDAR should not be viewed as a measure of overall operating performance, considered in isolation, or as an alternative to net income, because this measure is not presented on a GAAP basis and excludes certain expenses, including the rent expense associated with the Company’s triple net operating and ground leases, and are provided for the limited purposes discussed herein.

Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR 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, real estate triple net lease and ground lease payments, and debt principal repayments, which are not reflected in Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR information may calculate Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR in a different manner and such differences may be material.

A reconciliation of GAAP net income (loss) to Adjusted EBITDAR is included in the financial schedules in this release.

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.

5.             CityCenter non-GAAP Measure

“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 EBITDA as the primary profit measure for CityCenter. Adjusted EBITDA is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures. Management believes that while certain items excluded from Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluating CityCenter’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 above, may not relate specifically to current operating trends or be indicative of future results. Adjusted EBITDA should not be construed as alternatives to operating income or net income, as indicators of CityCenter’s performance; or as alternatives to cash flows from operating activities, as a measure of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. A reconciliation of GAAP net income (loss) to Adjusted EBITDA is included in the financial schedules in this release.

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 29 unique hotel and destination gaming offerings in the United States and Macau, including some of the most recognizable resort brands in the industry such as Bellagio, MGM Grand, ARIA and Park MGM. The Company’s 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its “Focused on What Matters: Embracing Humanity and Protecting the Planet” initiative, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The 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, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram.

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, including the continued impact of COVID-19 on its results of operations and the duration of such impact, expectations regarding the Company’s liquidity position, long term cost savings and the performance at re-opened properties, the Company’s ability to execute on its strategic plans, including the development of an integrated resort in Japan and positioning BetMGM as a leaders in sports betting and iGaming, dividends it expects to receive from MGM China, the MGP Operating Partnership and CityCenter and its ability to return capital to shareholders (including the timing and amount of any share repurchases or dividends).  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 the continued impact of the COVID-19 pandemic on the Company’s business, the 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

CATHERINE PARK

Executive Director of Investor Relations

(702) 693-8711 or cpark@mgmresorts.com

News Media

BRIAN AHERN

Director of Communications

media@mgmresorts.com

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,



2020


2019


2020


2019

Revenues:













Casino

$

690,218


$

1,663,049


$

1,907,893


$

4,887,707


Rooms


175,450



595,636



641,024



1,756,354


Food and beverage


126,317



560,200



552,797



1,624,973


Entertainment, retail and other


101,618



387,596



420,132



1,114,708


Reimbursed costs


32,317



107,901



146,700



330,794




1,125,920



3,314,382



3,668,546



9,714,536

Expenses:













Casino


368,310



915,207



1,197,373



2,706,356


Rooms


107,361



211,292



321,221



623,929


Food and beverage


133,937



427,400



533,879



1,254,303


Entertainment, retail and other


87,592



274,850



342,878



788,463


Reimbursed costs


32,317



107,901



146,700



330,794


General and administrative


543,293



494,228



1,591,163



1,543,764


Corporate expense


70,437



108,545



356,823



346,042


Preopening and start-up expenses 


11



925



51



5,091


Property transactions, net


4,116



249,858



85,440



264,424


Gain on REIT transactions, net






(1,491,945)




Depreciation and amortization


294,363



322,009



911,859



973,211




1,641,737



3,112,215



3,995,442



8,836,377














Income from unconsolidated affiliates


20,635



36,214



48,030



101,967














Operating income (loss)


(495,182)



238,381



(278,866)



980,126














Non-operating income (expense):













Interest expense, net of amounts capitalized


(173,808)



(215,503)



(487,701)



(647,452)


Non-operating items from unconsolidated affiliates


(23,604)



(14,669)



(79,986)



(54,311)


Other, net


13,889



(9,381)



(102,054)



(53,964)




(183,523)



(239,553)



(669,741)



(755,727)














Income (loss) before income taxes


(678,705)



(1,172)



(948,607)



224,399


Benefit (provision) for income taxes


76,734



7,276



84,668



(75,969)














Net income (loss)


(601,971)



6,104



(863,939)



148,430


Less: Net (income) loss attributable to noncontrolling interests


67,240



(43,237)



278,820



(110,861)

Net income (loss) attributable to MGM Resorts International

$

(534,731)


$

(37,133)


$

(585,119)


$

37,569














Earnings (loss) per share:













Basic

$

(1.08)


$

(0.08)


$

(1.10)


$

0.06


Diluted

$

(1.08)


$

(0.08)


$

(1.10)


$

0.06














Weighted average common shares outstanding:













Basic


493,517



518,983



494,126



528,429


Diluted


493,517



518,983



494,126



531,873

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)




















September 30,


December 31,




2020


2019









      ASSETS

Current assets:







Cash and cash equivalents

$

4,593,872


$

2,329,604


Accounts receivable, net


328,413



612,717


Inventories


97,316



102,888


Income tax receivable


170,377



27,167


October 1 litigation insurance receivable


751,000



735,000


Prepaid expenses and other


245,303



200,317



Total current assets


6,186,281



4,007,693









Property and equipment, net


14,792,378



18,285,955









Other assets:







Investments in and advances to unconsolidated affiliates


1,473,955



822,366


Goodwill 


2,091,769



2,084,564


Other intangible assets, net


3,697,549



3,826,504


Operating lease right-of-use assets, net


8,330,530



4,392,481


Other long-term assets, net


432,313



456,793



Total other assets


16,026,116



11,582,708




$

37,004,775


$

33,876,356

















LIABILITIES AND STOCKHOLDERS’ EQUITY









Current liabilities:







Accounts payable

$

150,445


$

235,437


Construction payable


28,827



74,734


Accrued interest on long-term debt


150,729



122,250


October 1 litigation liability


800,000



735,000


Other accrued liabilities


1,636,783



2,024,002



Total current liabilities


2,766,784



3,191,423









Deferred income taxes, net 


2,164,231



2,106,506

Long-term debt, net


11,414,730



11,168,904

Other long-term obligations


518,057



363,588

Operating lease liabilities


8,380,341



4,277,970

Redeemable noncontrolling interest


57,970



105,046

Stockholders’ equity:







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







   issued and outstanding 493,306,751 and 503,147,632 shares 


4,933



5,031


Capital in excess of par value


3,355,693



3,531,099


Retained earnings


3,539,848



4,201,337


Accumulated other comprehensive loss


(39,370)



(10,202)



Total MGM Resorts International stockholders’ equity


6,861,104



7,727,265


Noncontrolling interests


4,841,558



4,935,654



Total stockholders’ equity


11,702,662



12,662,919




$

37,004,775


$

33,876,356

 

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,


2020


2019


2020


2019

Las Vegas Strip Resorts

$

481,418


$

1,507,448


$

1,766,035


$

4,401,980

Regional Operations


556,826



935,018



1,371,750



2,649,916

MGM China


46,867



737,755



351,952



2,178,048

Management and other operations 


40,809



134,161



178,809



484,592


$

1,125,920


$

3,314,382


$

3,668,546


$

9,714,536



























MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA – ADJUSTED PROPERTY EBITDAR and ADJUSTED EBITDAR

(In thousands)

(Unaudited)














Three Months Ended


Nine Months Ended


September 30,


September 30,


September 30,


September 30,


2020


2019


2020


2019

Las Vegas Strip Resorts

$

15,125


$

441,281


$

178,277


$

1,263,271

Regional Operations


145,734



269,125



185,369



741,710

MGM China


(96,446)



183,989



(234,724)



549,603

Unconsolidated resorts (1)


(21,053)



36,192



(58,121)



105,031

Management and other operations 


(15,621)



2,642



(38,467)



25,854

Stock compensation


(21,391)



(14,419)



(53,057)



(45,280)

Corporate 


(55,125)



(97,122)



(225,124)



(306,449)


$

(48,777)





$

(245,847)
















(1) Represents the Company’s share of operating income (loss) excluding investments in real estate ventures, 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 EBITDAR

(In thousands)

(Unaudited)














Three Months Ended


Nine Months Ended


September 30,


September 30,


September 30,


September 30,


2020


2019


2020


2019

Net income (loss) attributable to MGM Resorts International

$

(534,731)


$

(37,133)


$

(585,119)


$

37,569

  Plus: Net income (loss) attributable to noncontrolling interests


(67,240)



43,237



(278,820)



110,861

Net income (loss)


(601,971)



6,104



(863,939)



148,430

  (Benefit) provision for income taxes


(76,734)



(7,276)



(84,668)



75,969

Income (loss) before income taxes


(678,705)



(1,172)



(948,607)



224,399













Non-operating (income) expense:












  Interest expense, net of amounts capitalized


173,808



215,503



487,701



647,452

  Other, net


9,715



24,050



182,040



108,275



183,523



239,553



669,741



755,727













Operating income (loss)


(495,182)



238,381



(278,866)



980,126

  Preopening and start-up expenses


11



925



51



5,091

  Property transactions, net


4,116



249,858



85,440



264,424

  Gain on REIT transactions, net






(1,491,945)



  Depreciation and amortization


294,363



322,009



911,859



973,211

  CEO transition expense






44,401



  October 1 litigation settlement






49,000



  Restructuring




2,491



19,882



86,579

  Triple net operating lease and ground lease rent expense


189,602



8,024



521,087



24,309

  Income from unconsolidated affiliates related to real estate ventures


(41,687)





(106,756)



Adjusted EBITDAR

$

(48,777)





$

(245,847)




 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)
















Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2020


2019


2020


2019

Las Vegas Strip Resorts net revenues


$

481,418


$

1,507,448


$

1,766,035


$

4,401,980

Hold adjustment (1)



7,440



(3,691)



5,150



15,882

Table Games Hold Adjusted Las Vegas Strip Resorts

  Net Revenues 


$

488,858


$

1,503,757


$

1,771,185


$

4,417,862














Las Vegas Strip Resorts Adjusted Property EBITDAR


$

15,125


$

441,281


$

178,277


$

1,263,271

Hold adjustment (2)



6,297



(3,184)



4,272



13,512

Table Games Hold Adjusted Las Vegas Strip Resorts

   Adjusted Property EBITDAR


$

21,422


$

438,097


$

182,549


$

1,276,783
















(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 EBITDAR TO VIP TABLE GAMES HOLD ADJUSTED MGM CHINA NET REVENUES AND VIP TABLE GAMES HOLD ADJUSTED MGM CHINA ADJUSTED PROPERTY EBITDAR

(In thousands)

(Unaudited)
















Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2020


2019


2020


2019

MGM China net revenues


$

46,867


$

737,755


$

351,952


$

2,178,048

Hold adjustment (3)



7,134



(38,642)



8,696



(49,126)

VIP Table Games Hold Adjusted MGM China Net 

    Revenues


$

54,001


$

699,113


$

360,648


$

2,128,922














MGM China Adjusted Property EBITDAR


$

(96,446)


$

183,989


$

(234,724)


$

549,603

Hold adjustment (4)



3,148



(14,117)



6,646



(19,793)

VIP Table Games Hold Adjusted MGM China 

    Adjusted Property EBITDAR


$

(93,298)


$

169,872


$

(228,078)


$

529,810















(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.

 

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA – NET REVENUES AND ADJUSTED EBITDA

(In thousands)

(Unaudited)














Three Months Ended


Nine Months Ended


September 30, 


September 30, 


September 30, 


September 30, 


2020


2019


2020


2019













Net revenues

$

126,673


$

320,352


$

394,989


$

993,215













Adjusted EBITDA

$

24,507


$

108,528


$

65,637


$

328,720

























CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA – HOTEL STATISTICS

(Unaudited)














Three Months Ended


Nine Months Ended


September 30, 


September 30, 


September 30, 


September 30, 


2020


2019


2020


2019













 Occupancy %


36.9%



91.0%



59.7%



92.0%

 ADR (1)


$213



$248



$260



$256

 REVPAR (1)


$79



$225



$155



$236













(1) Rooms that were out of service during the three and nine months ended September 30, 2020 as a result of property closures due to the COVID-19 pandemic were excluded from the available room count when calculating hotel occupancy and REVPAR.

























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, 


2020


2019


2020


2019













Net income (loss)

$

(45,267)


$

33,082


$

(178,588)


$

56,079

Non-operating (income) expense:












  Interest expense, net of amounts capitalized


19,440



23,117



59,331



69,777

  Other, net


(3,427)



5,265



18,766



33,975



16,013



28,382



78,097



103,752













Operating income (loss)


(29,254)



61,464



(100,491)



159,831

  Property transactions, net


(2,348)



(10,601)



(4,826)



(9,352)

  Depreciation and amortization


56,109



57,709



169,743



172,113

  Restructuring




(44)



1,211



6,128

Adjusted EBITDA

$

24,507


$

108,528


$

65,637


$

328,720

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/mgm-resorts-international-reports-third-quarter-financial-and-operating-results-301163364.html

SOURCE MGM Resorts International