MGM MIRAGE Announces Non-Cash Charges Relating to its Investment in CityCenter
20 Outubro 2009 - 10:00AM
PR Newswire (US)
Company Also Sets Earnings Release for November 5, 2009 LAS VEGAS,
Oct. 20 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE:MGM) announced
today that it expects to record a pre-tax non-cash impairment
charge of approximately $955 million related to its investment in
CityCenter; such charge will be reflected in the Company's
statement of operations for the third quarter. In addition,
CityCenter, the Company's 50/50 joint venture with Infinity World
Development Corp, is expected to recognize a $348 million non-cash
impairment charge related to its residential real estate under
development. MGM MIRAGE will recognize 50% of such impairment
charge, adjusted by certain basis differences, as a part of its
income (loss) from unconsolidated affiliates for the third quarter
of 2009. The net pre-tax impact of the CityCenter residential
charge to the Company's third quarter operating results is expected
to be approximately $200 million. MGM MIRAGE evaluates its joint
venture investments for impairment whenever events or changes in
circumstances indicate that the carrying value of its investment
may have experienced an other-than-temporary decline in value.
Based on revised operating forecasts developed by CityCenter late
in the third quarter, MGM MIRAGE has now determined that the
carrying value of the Company's 50% investment is greater than its
fair value and an impairment is indicated. The Company, based in
part on consultations with third party valuation specialists,
estimates the fair value of its 50% investment to be approximately
$2.44 billion as of September 30, 2009. CityCenter was required to
review its residential inventory under development for impairment
as of September 30, 2009, mainly due to CityCenter's September 2009
decision to discount the prices of its residential inventory by
30%. This decision and related market conditions led to the
conclusion that the carrying value of the residential inventory is
not recoverable. The Company also announced today that it will
release the Company's financial results for the third quarter ended
September 30, 2009 prior to the market open on Thursday, November
5, 2009, followed by a conference call at 11:00 a.m. Eastern
Standard Time. The conference call will include a brief discussion
of third quarter results followed by a question and answer period.
The call will be accessible via the Internet through
http://www.mgmmirage.com/ and http://www.companyboardroom.com/ or
by calling 1-800-526-8531 for Domestic callers and 1-706-758-3659
for International callers. The conference call access code is
35345375. A replay of the call will be available through Wednesday,
November 11, 2009. The replay may be accessed by dialing
1-800-642-1687 or 1-706-645-9291. The replay access code is
35345375. The call will also be archived at
http://www.mgmmirage.com/ and at http://www.companyboardroom.com/.
MGM MIRAGE (NYSE:MGM), one of the world's leading and most
respected companies with significant holdings in gaming,
hospitality and entertainment, owns and operates 16 properties
located in Nevada, Mississippi and Michigan, and has 50%
investments in four other properties in Nevada, New Jersey,
Illinois and Macau. CityCenter, an unprecedented urban metropolis
on the Las Vegas Strip scheduled to open in late 2009, is a joint
venture between MGM MIRAGE and Infinity World Development Corp, a
subsidiary of Dubai World. MGM MIRAGE Hospitality has entered into
management agreements for future casino and non-casino resorts
throughout the world. MGM MIRAGE supports responsible gaming and
has implemented the American Gaming Association's Code of Conduct
for Responsible Gaming at its properties. MGM MIRAGE has received
numerous awards and recognitions for its industry-leading Diversity
Initiative and its community philanthropy programs. For more
information about MGM MIRAGE, please visit the Company's Web site
at http://www.mgmmirage.com/. Statements in this release which are
not historical facts are "forward looking" statements and "safe
harbor statements" under the Private Securities Litigation Reform
Act of 1995 that involve risks and/or uncertainties, including
risks and/or uncertainties as described in the company's public
filings with the Securities and Exchange Commission. DATASOURCE:
MGM MIRAGE CONTACT: Investors, Dan D'Arrigo, Executive Vice
President & Chief Financial Officer, +1-702-693-8895, or Media,
Alan M. Feldman, Senior Vice President Public Affairs,
+1-702-650-6947, both of MGM MIRAGE Web Site:
http://www.mgmmirage.com/
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