MGM MGM Resorts International

 

 

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): February 18, 2016

 

 

MGM Resorts International

(Exact name of registrant as specified in its charter)

 

 

 

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

3600 Las Vegas Boulevard South, Las Vegas, Nevada 89109

(Address of principal executive offices – Zip Code)

(702) 693-7120

(Registrant’s telephone number, including area code)

N/A

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

 

 

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

 

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

 

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

 

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

 

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

 

 

 

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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 February 18, 2016. The purpose of the press release, furnished as Exhibit 99.1, was to announce the Registrant’s results of operations for the quarter and year ended December 31, 2015. The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS

 

(a)

Not applicable.

(b)

Not applicable.

(c)

Not applicable.

(d)

Exhibits:

 

99.1

Press release of the Registrant dated February 18, 2016, announcing financial results for the quarter and year ended December 31, 2015.

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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: February 18, 2016				By:		/s/Robert C. Selwood
						Robert C. Selwood
						Executive Vice President and Chief Accounting Officer

EXHIBIT 99.1

 

 

MGM RESORTS INTERNATIONAL REPORTS FOURTH QUARTER

AND FULL YEAR FINANCIAL RESULTS

Wholly Owned Domestic Resorts Adjusted Property EBITDA Increased 15%

Las Vegas Strip REVPAR Up 12%

Las Vegas, Nevada, February 18, 2016 — MGM Resorts International (NYSE: MGM) today reported financial results for the quarter and year ended December 31, 2015.

“Our strong fourth quarter domestic results culminated a very successful 2015. MGM Resorts continues to excel both in Las Vegas and at our market-leading regional resorts, with our wholly owned domestic Adjusted Property EBITDA up 15% in the quarter and 11% in the year,” said Jim Murren, Chairman & CEO of MGM Resorts International. “We remain focused on driving profitability throughout our existing portfolio. We are ahead of pace with our Profit Growth Plan and are well on our way to reaching our 30% margin target by 2017. This year is a particularly exciting year for MGM Resorts with the completion of the expansion at the Mandalay Bay Convention Center, as well as the grand openings of the T-Mobile Arena and MGM National Harbor. These targeted growth investments, combined with the increased profitability at our existing operations, establish a platform for sustainable, long-term growth.”

Key results for the fourth quarter of 2015 include:

 

•

Net revenue at the Company’s wholly owned domestic resorts increased 2% compared to the prior year quarter;

•

Rooms revenue at wholly owned domestic resorts increased 10%, with a 12% increase in REVPAR(1) at the Company’s Las Vegas Strip resorts compared to the prior year quarter;

•

The Company’s wholly owned domestic resorts earned Adjusted Property EBITDA(2) of $431 million, a 15% increase compared to the prior year quarter;

•

Wholly owned domestic resorts Adjusted Property EBITDA margin was 27.3%, a 330 basis point increase compared to the prior year quarter;

•

MGM China’s net revenue was $499 million and Adjusted EBITDA was $131 million, a decrease of 31% and 29%, respectively, compared to the prior year quarter;

•

MGM China’s operating loss was $1.4 billion in the current year quarter, which included a $1.5 billion non-cash impairment charge on goodwill from the 2011 MGM China acquisition; and

•

CityCenter earned an all time record Adjusted EBITDA related to resort operations of $106 million, a 36% increase compared to the prior year quarter.

Fourth Quarter Consolidated Results

Loss per share for the fourth quarter of 2015 was $1.38, including the non-cash goodwill impairment charge of $1.5 billion, or $1.33 per share, compared to loss per share of $0.70 in the prior year fourth quarter.

The non-cash impairment charge, which is included in “Property transactions, net,” relates to goodwill recognized in the acquisition of a controlling interest in MGM China Holdings Limited (“MGM China”). The Company recorded a $3.5 billion non-cash gain in 2011 in connection with that acquisition. The current impairment charge, which represents approximately 42% of the amount of the previously recognized gain, resulted from the Company’s annual review of its goodwill carrying values and was incurred as a result of reduced cash flow forecasts for MGM China’s resorts based on current market conditions and lower valuation multiples for gaming assets in the Macau market.

 

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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 December 31,		2015				2014
Preopening and start-up expenses		$	(0.02	)		$	(0.02	)
Property transactions, net:
MGM China goodwill impairment			(1.33	)			—
Gain on sale of Circus Circus Reno and Silver Legacy			0.03				—
Grand Victoria investment impairment			(0.02	)			—
Other property transactions, net			(0.03	)			—
Income (loss) from unconsolidated affiliates:
Harmon-related property transactions, net			—				(0.02	)

Wholly Owned Domestic Resorts

Casino revenue related to wholly owned domestic resorts decreased 5% compared to the prior year quarter due to a decrease in table games volume and table games hold percentage, as well as a decrease in slots revenue. Table games hold percentage in the fourth quarter of 2015 was 20.0% compared to 21.8% in the prior year quarter. Slots revenue decreased 3% compared to the prior year quarter, as the prior year quarter was positively affected by a reduction in the Company’s accrual for slot points based on a change in estimated point redemption.

Rooms revenue increased 10% with Las Vegas Strip REVPAR up 12%. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

 

Three months ended December 31,		2015				2014
Occupancy %			89	%			88	%
Average Daily Rate (ADR)		$	152			$	138
Revenue per Available Room (REVPAR)		$	136			$	121

Food and beverage revenue related to wholly owned domestic resorts increased 2% as a result of increased convention and banquet business. Wholly owned domestic resorts Adjusted Property EBITDA was $431 million in the fourth quarter of 2015, a 15% increase compared to the prior year quarter, and was positively affected by approximately $35 million of incremental Adjusted Property EBITDA as a result of the Company’s Profit Growth Plan initiatives. Operating income for the Company’s wholly owned domestic resorts increased 20% for the fourth quarter of 2015 compared to the prior year quarter and operating margin increased 300 basis points to 19.5%.

Corporate Expense

Corporate expense increased $21 million compared to the prior year quarter. The current year quarter included $13 million of costs incurred to implement initiatives in relation to the Profit Growth Plan and $9 million of costs incurred relating to the proposed REIT transaction.

MGM China

On February 18, 2016, as part of its regular dividend policy, MGM China’s Board of Directors announced it will recommend a final dividend for 2015 of $46 million to MGM China shareholders subject to approval at the MGM China 2016 annual shareholders meeting to be held in May, bringing the total 2015 dividend to $122 million including the interim dividend paid in August. If approved, MGM Resorts International will receive $23 million, its 51% share of this dividend.

 

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The Company has made the strategic decision to move the opening of its MGM Cotai development from the fourth quarter of 2016 to the end of the first quarter of 2017 based on current market conditions and the timing of other resort openings in the area. There is no change to the current budget of $3.0 billion, which excludes development fees, capitalized interest and land related costs.

Key fourth quarter results for MGM China include the following:

 

•

MGM China earned net revenue of $499 million, a 31% decrease compared to the prior year quarter;

•

Main floor table games revenue decreased 14% compared to the prior year quarter;

•

VIP table games revenue decreased 49% due to a decrease in VIP table games turnover of 57% compared to the prior year quarter, while hold percentage increased to 3.0% in the current year quarter compared to 2.6% in the prior year quarter;

•

MGM China’s Adjusted EBITDA was $131 million, a 29% decrease compared to the prior year quarter, including $9 million of license fee expense in the current year quarter and no expense related to license fees in the prior year quarter;

•

MGM China’s Adjusted EBITDA margin increased by 45 basis points compared to the prior year quarter to 26.3% as a result of an increase in main floor table games mix; and

•

MGM China’s operating loss was $1.4 billion in the current year quarter, which included a $1.5 billion non-cash impairment charge on goodwill from the 2011 MGM China acquisition, compared to operating income of $109 million in the prior year quarter.

Income (Loss) from Unconsolidated Affiliates

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

 

Three months ended December 31,		2015				2014
		(In thousands)
CityCenter		$	19,331			$	(18,114	)
Borgata			16,230				11,304
Other			4,691				4,683
		$	40,252			$	(2,127	)

Results for CityCenter Holdings, LLC (“CityCenter”) for the fourth quarter of 2015 include the following (see schedules accompanying this release for further detail on CityCenter’s fourth quarter results):

 

•

Net revenue from resort operations increased by 12% to $323 million compared to $289 million in the prior year quarter;

•

Adjusted EBITDA from resort operations was an all time record of $106 million, an increase of 36% compared to the prior year quarter;

•

Adjusted EBITDA at Aria increased by 43% year over year to $85 million, driven by increases in casino revenue and rooms revenue;

•

Aria’s table games volume increased 12% and table games hold percentage was 26.8% compared to 21.5% in the prior year quarter;

•

Aria’s REVPAR was $212, a 7% increase compared to the prior year quarter;

•

Vdara reported a 23% increase in Adjusted EBITDA compared to the prior year quarter, led by a 13% increase in REVPAR; and

•

Crystals reported Adjusted EBITDA of $11 million, an increase of 2% from the prior year quarter.

CityCenter reported operating income of $18 million for the fourth quarter of 2015 compared to an operating loss of $58 million in the prior year quarter. Operating income in the current year quarter was negatively impacted by $20 million of accelerated depreciation associated with the scheduled April 2016 closure of the Zarkana theatre. The operating loss in the prior year quarter was negatively impacted by a $39 million property transaction charge, primarily related to a settlement with an insurer participating in CityCenter’s Owner Controlled Insurance Program.

The Company’s income from unconsolidated affiliates related to Borgata for the fourth quarter of 2015 increased 44% compared to the prior year quarter due to increases in casino revenue.

 

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Full Year 2015 Results

Consolidated net revenue for 2015 was $9.2 billion, a 9% decrease over 2014, and Adjusted Property EBITDA increased 2% compared to the prior year to $2.5 billion. Net revenue from wholly owned domestic resorts was $6.5 billion, a 2% increase compared to the prior year. Adjusted Property EBITDA from wholly owned domestic resorts increased 11% to $1.7 billion for 2015.

MGM China net revenue was $2.2 billion for 2015, a 33% decrease from 2014, and Adjusted EBITDA was $540 million compared to $850 million in the prior year. CityCenter reported a record $1.2 billion net revenue from resort operations, a 3% increase compared to the prior year, and Adjusted EBITDA related to resort operations was a record $348 million compared to $317 million in the prior year.

Loss per share attributable to the Company for 2015 was $0.82 compared to loss per share of $0.31 in 2014. The following table lists items that affect the comparability of the current year and prior year annual results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):

 

Year ended December 31,		2015				2014
Preopening and start-up expenses		$	(0.08	)		$	(0.05	)
Property transactions, net:
MGM China goodwill impairment			(1.38	)			—
Gain on sale of Circus Circus Reno and Silver Legacy			0.03				—
Grand Victoria investment impairment			(0.02	)			(0.04	)
Other property transactions, net			(0.05	)			(0.01	)
Income (loss) from unconsolidated affiliates:
Harmon-related property transactions, net			0.10				(0.02	)

MGM Growth Properties

As previously announced by the Company on October 29, 2015, MGM Growth Properties LLC (“MGP”), a newly formed subsidiary of the Company that intends to elect and qualify to be taxed as a real estate investment trust, confidentially submitted a draft registration statement on Form S-11 to the United States Securities and Exchange Commission (“SEC”) relating to its proposed initial public offering of Class A common shares. Since that initial confidential submission, MGP has received and responded to comments from the SEC and believes that it has substantially completed the review process with the SEC, although the SEC will continue to review MGP’s filings and may issue additional comments in the future.

In addition, the Company and MGP have filed the necessary applications with relevant gaming regulatory authorities for those approvals required for the announced REIT transaction and the MGP initial public offering and are continuing to engage with these regulators to obtain all required approvals in a timely manner.

“MGM Resorts and MGP are working diligently with our advisors and the regulators, and have made great strides thus far as evidenced by the progress we have made with the SEC, as well as the announcement of MGP’s management team and Board,” said Mr. Murren. “We are excited about the potential of this transaction and continue to actively work toward completing all the necessary steps in preparation for the planned IPO of MGM Growth Properties.”

 

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Financial Position

“Over the past year, MGM Resorts further strengthened its financial position as a result of a few key events: the conversion of our $1.45 billion convertible notes; the repayment of the $875 million senior notes; and MGM Resort’s $200 million share of the first ever $400 million special distribution from CityCenter,” said Dan D’Arrigo, Executive Vice President, CFO and Treasurer of MGM Resorts International. “Our commitment to decrease leverage and strengthen our balance sheet remains a top priority, and we believe the creation of MGP will allow MGM Resorts to further execute on this goal.”

The Company’s cash balance at December 31, 2015 was $1.7 billion, which included $699 million at MGM China. At December 31, 2015, the Company had $2.7 billion of borrowings outstanding under its $3.9 billion senior secured credit facility and $1.6 billion outstanding under the $3 billion MGM China credit facility. In January 2016, MGM National Harbor entered into a $525 million credit agreement comprised of a $425 million term loan A facility and a $100 million revolving facility. In February 2016, MGM China amended its credit facility to increase its maximum permitted leverage ratio, in addition to other adjustments, to allow for more flexibility under its covenants.

Conference Call Details

MGM Resorts International will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the Investors section or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 6379822. A replay of the call will be available through Thursday, February 25, 2016. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10080352. The call will be archived at www.mgmresorts.com.

1             REVPAR is hotel revenue per available room.

2             “Adjusted EBITDA” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses and property transactions, net. “Adjusted Property EBITDA” is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts stock option plan, which is not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted EBITDA for MGM China. Adjusted EBITDA 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. The Company also owns 51 percent of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino. For more information about MGM Resorts International, visit the Company’s website at www.mgmresorts.com.

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company’s public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company’s ability to generate future cash flow growth and to execute on future development and other projects, such as the Profit Growth Plan, the expected results of the Profit Growth Plan, amounts the Company expects to receive as a result of the MGM China dividends, the completion of the initial public offering of MGM Growth Properties and, if completed, the value realized by the Company from such transaction. 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 cdumont@mgmresorts.com

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Revenues:
Casino		$	1,146,765			$	1,399,640			$	4,842,836			$	5,878,775
Rooms			460,778				419,470				1,876,733				1,768,012
Food and beverage			370,880				366,352				1,575,496				1,558,937
Entertainment			137,293				141,289				539,318				560,116
Retail			47,897				45,204				201,688				191,351
Other			115,980				116,018				506,934				507,639
Reimbursed costs			95,936				94,397				398,836				383,434
			2,375,529				2,582,370				9,941,841				10,848,264
Less: Promotional allowances			(183,656	)			(196,824	)			(751,773	)			(766,280	)
			2,191,873				2,385,546				9,190,068				10,081,984
Expenses:
Casino			661,948				852,053				2,882,752				3,643,881
Rooms			139,910				128,349				564,094				548,993
Food and beverage			216,357				213,427				917,993				908,916
Entertainment			101,410				108,660				410,284				422,115
Retail			23,643				23,741				102,904				99,455
Other			80,355				85,926				348,513				361,904
Reimbursed costs			95,936				94,397				398,836				383,434
General and administrative			306,728				324,532				1,309,104				1,318,749
Corporate expense			90,574				69,458				274,551				238,811
Preopening and start-up expenses			21,057				13,629				71,327				39,257
Property transactions, net			1,491,277				480				1,503,942				41,002
Depreciation and amortization			200,164				202,654				819,883				815,765
			3,429,359				2,117,306				9,604,183				8,822,282
Income (loss) from unconsolidated affiliates			40,252				(2,127	)			257,883				63,836
Operating income (loss)			(1,197,234	)			266,113				(156,232	)			1,323,538
Non-operating income (expense):
Interest expense, net of amounts capitalized			(186,291	)			(200,903	)			(797,579	)			(817,061	)
Non-operating items from unconsolidated affiliates			(16,717	)			(18,773	)			(76,462	)			(87,794	)
Other, net			(3,279	)			(5,800	)			(15,970	)			(7,797	)
			(206,287	)			(225,476	)			(890,011	)			(912,652	)
Income (loss) before income taxes			(1,403,521	)			40,637				(1,046,243	)			410,886
Benefit (provision) for income taxes			(69,976	)			(328,109	)			6,594				(283,708	)
Net income (loss)			(1,473,497	)			(287,472	)			(1,039,649	)			127,178
Less: Net (income) loss attributable to noncontrolling interests			692,043				(54,791	)			591,929				(277,051	)
Net income (loss) attributable to MGM Resorts International		$	(781,454	)		$	(342,263	)		$	(447,720	)		$	(149,873	)
Per share of common stock:
Basic:
Net income (loss) attributable to MGM Resorts International		$	(1.38	)		$	(0.70	)		$	(0.82	)		$	(0.31	)
Weighted average shares outstanding			564,398				491,308				542,873				490,875
Diluted:
Net income (loss) attributable to MGM Resorts International		$	(1.38	)		$	(0.70	)		$	(0.82	)		$	(0.31	)
Weighted average shares outstanding			564,398				491,308				542,873				490,875

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

		December 31, 2015				December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents		$	1,670,312			$	1,713,715
Cash deposits - original maturities longer than 90 days			—				570,000
Accounts receivable, net			480,559				473,345
Inventories			104,200				104,011
Income tax receivable			15,993				14,675
Prepaid expenses and other			137,685				151,414
Total current assets			2,408,749				3,027,160
Property and equipment, net			15,371,795				14,441,542
Other assets:
Investments in and advances to unconsolidated affiliates			1,491,497				1,559,034
Goodwill			1,430,767				2,897,110
Other intangible assets, net			4,164,781				4,364,856
Other long-term assets, net			347,589				304,212
Total other assets			7,434,634				9,125,212
		$	25,215,178			$	26,593,914
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	182,031			$	164,252
Construction payable			250,120				170,439
Current portion of long-term debt			328,442				1,245,320
Deferred income taxes, net			—				62,142
Accrued interest on long-term debt			165,914				191,155
Other accrued liabilities			1,311,444				1,574,617
Total current liabilities			2,237,951				3,407,925
Deferred income taxes, net			2,680,576				2,621,860
Long-term debt			12,368,311				12,805,285
Other long-term obligations			157,663				130,570
Redeemable noncontrolling interest			6,250				—
Stockholders’ equity:
Common stock, $.01 par value: authorized 1,000,000,000 shares,
issued and outstanding 564,838,893 and 491,292,117 shares			5,648				4,913
Capital in excess of par value			5,655,886				4,180,922
Accumulated deficit			(555,629	)			(107,909	)
Accumulated other comprehensive income			14,022				12,991
Total MGM Resorts International stockholders’ equity			5,119,927				4,090,917
Noncontrolling interests			2,644,500				3,537,357
Total stockholders’ equity			7,764,427				7,628,274
		$	25,215,178			$	26,593,914

 

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Bellagio		$	311,893			$	294,110			$	1,236,248			$	1,248,203
MGM Grand Las Vegas			283,086				292,031				1,138,469				1,098,642
Mandalay Bay			205,134				204,280				906,243				874,126
The Mirage			128,095				141,582				568,607				572,699
Luxor			94,351				86,886				372,426				354,041
New York-New York			78,514				71,507				308,319				286,998
Excalibur			71,571				62,550				289,324				269,486
Monte Carlo			69,954				67,704				290,240				277,845
Circus Circus Las Vegas			55,347				49,254				232,844				209,662
MGM Grand Detroit			144,266				133,235				547,399				530,436
Beau Rivage			87,870				85,115				367,587				344,178
Gold Strike Tunica			38,990				38,118				160,863				157,733
Other resort operations			8,727				28,072				78,792				118,035
Wholly owned domestic resorts			1,577,798				1,554,444				6,497,361				6,342,084
MGM China			498,784				718,688				2,214,767				3,282,329
Management and other operations			115,291				112,414				477,940				457,571
		$	2,191,873			$	2,385,546			$	9,190,068			$	10,081,984

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA

(In thousands)

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Bellagio		$	106,588			$	84,514			$	395,385			$	393,702
MGM Grand Las Vegas			80,228				84,403				280,266				254,854
Mandalay Bay			38,729				36,827				203,474				175,626
The Mirage			16,674				27,981				112,475				110,154
Luxor			24,847				13,221				87,169				70,084
New York-New York			29,417				24,479				106,457				95,105
Excalibur			22,649				14,933				82,247				68,219
Monte Carlo			22,224				17,736				85,962				71,780
Circus Circus Las Vegas			11,677				5,000				43,245				23,615
MGM Grand Detroit			45,256				37,196				154,979				144,798
Beau Rivage			22,059				17,078				88,843				70,261
Gold Strike Tunica			11,879				10,066				46,023				40,332
Other resort operations			(1,492	)			(349	)			3,441				(223	)
Wholly owned domestic resorts			430,735				373,085				1,689,966				1,518,307
MGM China			130,983				185,462				539,881				850,471
Unconsolidated resorts(1)			40,252				(2,127	)			257,883				63,836
Management and other operations			7,616				(1,154	)			37,419				35,984
		$	609,586			$	555,266			$	2,525,149			$	2,468,598

 

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

 

Page 9 of 14

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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 December 31, 2015

 

		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Bellagio		$	83,761			$	—			$	748			$	22,079			$	106,588
MGM Grand Las Vegas			62,391				—				11				17,826				80,228
Mandalay Bay			16,078				—				937				21,714				38,729
The Mirage			6,099				65				427				10,083				16,674
Luxor			15,376				—				6				9,465				24,847
New York-New York			20,686				—				3,789				4,942				29,417
Excalibur			19,031				—				(17	)			3,635				22,649
Monte Carlo			14,305				(2	)			1,620				6,301				22,224
Circus Circus Las Vegas			7,723				(1	)			12				3,943				11,677
MGM Grand Detroit			39,217				—				(36	)			6,075				45,256
Beau Rivage			15,396				—				(12	)			6,675				22,059
Gold Strike Tunica			9,082				—				207				2,590				11,879
Other resort operations			(1,492	)			—				—				—				(1,492	)
Wholly owned domestic resorts			307,653				62				7,692				115,328				430,735
MGM China			(1,405,182	)			3,531				1,471,160				61,474				130,983
Unconsolidated resorts			39,190				1,062				—				—				40,252
Management and other operations			5,291				337				1				1,987				7,616
			(1,053,048	)			4,992				1,478,853				178,789				609,586
Stock compensation			(9,845	)			—				—				—				(9,845	)
Corporate			(134,341	)			16,065				12,424				21,375				(84,477	)
		$	(1,197,234	)		$	21,057			$	1,491,277			$	200,164			$	515,264
Three Months Ended December 31, 2014
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Bellagio		$	62,677			$	—			$	43			$	21,794			$	84,514
MGM Grand Las Vegas			65,700				—				(910	)			19,613				84,403
Mandalay Bay			17,036				—				462				19,329				36,827
The Mirage			15,488				14				228				12,251				27,981
Luxor			3,242				—				382				9,597				13,221
New York-New York			18,864				630				1				4,984				24,479
Excalibur			11,027				—				141				3,765				14,933
Monte Carlo			12,186				21				114				5,415				17,736
Circus Circus Las Vegas			1,157				7				—				3,836				5,000
MGM Grand Detroit			31,133				—				239				5,824				37,196
Beau Rivage			10,461				—				49				6,568				17,078
Gold Strike Tunica			6,982				—				127				2,957				10,066
Other resort operations			644				—				(1,124	)			131				(349	)
Wholly owned domestic resorts			256,597				672				(248	)			116,064				373,085
MGM China			109,019				2,299				1,497				72,647				185,462
Unconsolidated resorts			(2,907	)			780				—				—				(2,127	)
Management and other operations			(4,001	)			359				414				2,074				(1,154	)
			358,708				4,110				1,663				190,785				555,266
Stock compensation			(8,005	)			—				—				—				(8,005	)
Corporate			(84,590	)			9,519				(1,183	)			11,869				(64,385	)
		$	266,113			$	13,629			$	480			$	202,654			$	482,876

 

Page 10 of 14

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

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

(In thousands)

(Unaudited)

Twelve Months Ended December 31, 2015

 

		Operating income (loss)				Preopening  and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Bellagio		$	303,858			$	—			$	1,085			$	90,442			$	395,385
MGM Grand Las Vegas			206,896				—				110				73,260				280,266
Mandalay Bay			120,142				—				3,599				79,733				203,474
The Mirage			66,069				115				1,729				44,562				112,475
Luxor			49,369				(2	)			94				37,708				87,169
New York-New York			81,618				(74	)			4,931				19,982				106,457
Excalibur			67,545				—				111				14,591				82,247
Monte Carlo			55,594				—				3,219				27,149				85,962
Circus Circus Las Vegas			27,305				280				21				15,639				43,245
MGM Grand Detroit			131,016				—				(36	)			23,999				154,979
Beau Rivage			62,613				—				(5	)			26,235				88,843
Gold Strike Tunica			34,362				—				221				11,440				46,023
Other resort operations			2,975				—				—				466				3,441
Wholly owned domestic resorts			1,209,362				319				15,079				465,206				1,689,966
MGM China			(1,212,377	)			13,863				1,472,128				266,267				539,881
Unconsolidated resorts			254,408				3,475				—				—				257,883
Management and other operations			27,395				1,179				1,080				7,765				37,419
			278,788				18,836				1,488,287				739,238				2,525,149
Stock compensation			(32,125	)			—				—				—				(32,125	)
Corporate			(402,895	)			52,491				15,655				80,645				(254,104	)
		$	(156,232	)		$	71,327			$	1,503,942			$	819,883			$	2,238,920
Twelve Months Ended December 31, 2014
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Bellagio		$	304,144			$	—			$	900			$	88,658			$	393,702
MGM Grand Las Vegas			174,297				197				(667	)			81,027				254,854
Mandalay Bay			95,449				1,133				2,307				76,737				175,626
The Mirage			57,338				452				2,464				49,900				110,154
Luxor			31,801				2				432				37,849				70,084
New York-New York			75,360				732				427				18,586				95,105
Excalibur			52,915				—				500				14,804				68,219
Monte Carlo			48,937				1,507				290				21,046				71,780
Circus Circus Las Vegas			8,135				85				61				15,334				23,615
MGM Grand Detroit			118,755				—				2,728				23,315				144,798
Beau Rivage			43,152				—				1,000				26,109				70,261
Gold Strike Tunica			27,460				—				392				12,480				40,332
Other resort operations			(2,318	)			—				336				1,759				(223	)
Wholly owned domestic resorts			1,035,425				4,108				11,170				467,604				1,518,307
MGM China			547,977				9,091				1,493				291,910				850,471
Unconsolidated resorts			62,919				917				—				—				63,836
Management and other operations			26,152				359				415				9,058				35,984
			1,672,473				14,475				13,078				768,572				2,468,598
Stock compensation			(28,372	)			—				—				—				(28,372	)
Corporate			(320,563	)			24,782				27,924				47,193				(220,664	)
		$	1,323,538			$	39,257			$	41,002			$	815,765			$	2,219,562

 

Page 11 of 14

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MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL

(In thousands)

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Adjusted EBITDA		$	515,264			$	482,876			$	2,238,920			$	2,219,562
Preopening and start-up expenses			(21,057	)			(13,629	)			(71,327	)			(39,257	)
Property transactions, net			(1,491,277	)			(480	)			(1,503,942	)			(41,002	)
Depreciation and amortization			(200,164	)			(202,654	)			(819,883	)			(815,765	)
Operating income (loss)			(1,197,234	)			266,113				(156,232	)			1,323,538
Non-operating income (expense):
Interest expense, net of amounts capitalized			(186,291	)			(200,903	)			(797,579	)			(817,061	)
Other, net			(19,996	)			(24,573	)			(92,432	)			(95,591	)
			(206,287	)			(225,476	)			(890,011	)			(912,652	)
Income (loss) before income taxes			(1,403,521	)			40,637				(1,046,243	)			410,886
Benefit (provision) for income taxes			(69,976	)			(328,109	)			6,594				(283,708	)
Net income (loss)			(1,473,497	)			(287,472	)			(1,039,649	)			127,178
Less: Net (income) loss attributable to noncontrolling interests			692,043				(54,791	)			591,929				(277,051	)
Net income (loss) attributable to MGM Resorts International		$	(781,454	)		$	(342,263	)		$	(447,720	)		$	(149,873	)

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Bellagio
Occupancy %			91.1	%			87.6	%			93.2	%			92.9	%
Average daily rate (ADR)		$	270			$	258			$	262			$	254
Revenue per available room (REVPAR)		$	246			$	226			$	244			$	236
MGM Grand Las Vegas
Occupancy %			89.2	%			93.0	%			94.1	%			96.0	%
ADR		$	170			$	149			$	165			$	150
REVPAR		$	152			$	138			$	156			$	144
Mandalay Bay
Occupancy %			84.9	%			86.8	%			90.6	%			92.0	%
ADR		$	201			$	181			$	203			$	191
REVPAR		$	171			$	157			$	184			$	176
The Mirage
Occupancy %			93.3	%			91.3	%			94.2	%			94.8	%
ADR		$	169			$	157			$	166			$	159
REVPAR		$	158			$	143			$	157			$	151
Luxor
Occupancy %			91.4	%			87.2	%			94.2	%			93.1	%
ADR		$	108			$	96			$	105			$	96
REVPAR		$	99			$	84			$	99			$	89
New York-New York
Occupancy %			94.8	%			95.5	%			97.6	%			97.8	%
ADR		$	133			$	119			$	129			$	120
REVPAR		$	126			$	113			$	126			$	118
Excalibur
Occupancy %			90.0	%			84.7	%			93.2	%			92.0	%
ADR		$	92			$	80			$	88			$	79
REVPAR		$	83			$	68			$	82			$	73
Monte Carlo
Occupancy %			93.5	%			93.6	%			96.4	%			96.8	%
ADR		$	122			$	108			$	119			$	110
REVPAR		$	114			$	101			$	115			$	107
Circus Circus Las Vegas
Occupancy %			80.2	%			77.1	%			83.8	%			80.4	%
ADR		$	75			$	61			$	71			$	60
REVPAR		$	60			$	47			$	59			$	49

 

Page 12 of 14

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CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Aria		$	262,262			$	232,622			$	985,483			$	955,563
Vdara			27,515				25,195				111,006				103,856
Crystals			17,019				16,392				69,071				66,475
Mandarin Oriental			15,806				14,585				61,541				60,515
Resort operations			322,602				288,794				1,227,101				1,186,409
Residential operations			3,369				6,906				33,358				62,985
		$	325,971			$	295,700			$	1,260,459			$	1,249,394

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)

(In thousands)

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Adjusted EBITDA		$	105,698			$	68,008			$	351,871			$	298,365
Property transactions, net			(4,274	)			(39,321	)			154,733				(61,914	)
Depreciation and amortization			(83,413	)			(87,098	)			(272,330	)			(350,926	)
Operating income			18,011				(58,411	)			234,274				(114,475	)
Non-operating income (expense):
Interest expense			(18,179	)			(17,993	)			(72,791	)			(82,260	)
Other, net			164				(1,071	)			350				(11,831	)
			(18,015	)			(19,064	)			(72,441	)			(94,091	)
Net income (loss)		$	(4	)		$	(77,475	)		$	161,833			$	(208,566	)

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended December 31, 2015

 

		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	14,312			$	—			$	4,271			$	66,704			$	85,287
Vdara			426				—				3				6,974				7,403
Crystals			4,132				—				—				6,646				10,778
Mandarin Oriental			(914	)			—				—				3,085				2,171
Resort operations			17,956				—				4,274				83,409				105,639
Residential operations			1,065				—				—				4				1,069
Development and administration			(1,010	)			—				—				—				(1,010	)
		$	18,011			$	—			$	4,274			$	83,413			$	105,698
Three Months Ended December 31, 2014
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	(11,217	)		$	—			$	4,255			$	66,538			$	59,576
Vdara			(3,558	)			—				7				9,554				6,003
Crystals			3,999				—				(11	)			6,568				10,556
Mandarin Oriental			(2,642	)			—				—				4,182				1,540
Resort operations			(13,418	)			—				4,251				86,842				77,675
Residential operations			583				—				—				41				624
Development and administration			(45,576	)			—				35,070				215				(10,291	)
		$	(58,411	)		$	—			$	39,321			$	87,098			$	68,008

 

Page 13 of 14

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CITYCENTER HOLDINGS, LLC

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Twelve Months Ended December 31, 2015

 

		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	59,210			$	—			$	5,189			$	203,207			$	267,606
Vdara			(726	)			—				3				30,389				29,666
Crystals			18,310				—				55				26,632				44,997
Mandarin Oriental			(6,569	)			—				—				12,254				5,685
Resort operations			70,225				—				5,247				272,482				347,954
Residential operations			7,814				—				—				63				7,877
Development and administration			156,235				—				(159,980	)			(215	)			(3,960	)
		$	234,274			$	—			$	(154,733	)		$	272,330			$	351,871
Twelve Months Ended December 31, 2014
		Operating income (loss)				Preopening and start-up expenses				Property transactions, net				Depreciation and amortization				Adjusted EBITDA
Aria		$	(34,515	)		$	—			$	12,858			$	264,447			$	242,790
Vdara			(15,103	)			—				155				40,636				25,688
Crystals			16,384				—				202				26,867				43,453
Mandarin Oriental			(13,349	)			—				44				18,333				5,028
Resort operations			(46,583	)			—				13,259				350,283				316,959
Residential operations			7,835				—				1,115				428				9,378
Development and administration			(75,727	)			—				47,540				215				(27,972	)
		$	(114,475	)		$	—			$	61,914			$	350,926			$	298,365

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA - HOTEL STATISTICS

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 31, 2015				December 31, 2014				December 31, 2015				December 31, 2014
Aria
Occupancy%			90.2	%			91.1	%			92.3	%			92.9	%
ADR		$	235			$	217			$	233			$	217
REVPAR		$	212			$	198			$	215			$	202
Vdara
Occupancy%			86.7	%			87.8	%			91.7	%			92.0	%
ADR		$	202			$	177			$	189			$	174
REVPAR		$	175			$	155			$	173			$	160

 

Page 14 of 14