LAS VEGAS, April 28, 2021 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) ("MGM Resorts" or the "Company") today
reported financial results for the quarter ended March 31,
2021.
"We are pleased with the meaningful progress we've made on
multiple fronts this quarter," said Bill
Hornbuckle, Chief Executive Officer and President of MGM
Resorts International. "Consumer demand strengthened at our
domestic properties, and the significant changes we've made to our
operating model have positioned us to capitalize on the recovery.
Our regional properties achieved record first quarter Adjusted
Property EBITDAR and Adjusted Property EBITDAR margins.
Las Vegas operating results
improved sequentially, leisure demand is improving, and we now have
a tangible path to bring conventions and entertainment back at
scale. MGM China continued to outperform the broader Macau market's gradual pace of recovery."
"We are also deeply focused on our long-term goals including
investing in digital to drive deeper customer engagement and
BetMGM, our U.S. sports betting and iGaming venture, which
continues to impress as the leading operator in U.S. iGaming and
the top three operator in U.S. online sports betting. Our future is
bright."
"Our robust liquidity position provides us with significant
flexibility amid an improving operational backdrop. As such, we
have begun to return capital to shareholders through share
repurchases during the first quarter," said Jonathan Halkyard, Chief Financial Officer and
Treasurer of MGM Resorts. "Going forward, we will be disciplined in
allocating our capital by maintaining a strong balance sheet,
pursuing targeted growth opportunities and returning cash to
shareholders."
First Quarter 2021 Financial
Highlights:
Consolidated Results
- Consolidated net revenues of $1.6
billion, a decrease of 27% compared to the prior year
quarter. While the prior year quarter was negatively affected by
property closures for a portion of the quarter, the current quarter
was negatively affected by midweek property and hotel closures,
lower business volume and travel activity and ongoing operational
restrictions due to the pandemic primarily at its Las Vegas Strip
Resorts;
- Consolidated operating loss was $247
million compared to consolidated operating income of
$1.3 billion in the prior year
quarter, which included a $1.5
billion gain related to the MGM Grand Las Vegas and Mandalay
Bay real estate transaction;
- Net loss attributable to MGM Resorts of $332 million compared to net income attributable
to MGM Resorts of $807 million in the
prior year quarter, which included the $1.5
billion gain discussed above;
- Diluted loss per share of $0.69
in the current quarter compared to diluted earnings per share of
$1.64 in the prior year quarter;
- Adjusted diluted earnings per share ("Adjusted
EPS")(1) was a loss per share of $0.68 in the current quarter compared to an
Adjusted EPS loss per share of $0.45
in the prior year quarter; and
- Consolidated Adjusted EBITDAR(2) of $218 million in the current quarter.
Financial Position &
Liquidity
- Cash and cash equivalents balance as of March 31, 2021 was
$6.2 billion, which included
$143 million at the MGP Operating
Partnership and $1.1 billion at MGM
China;
- Total liquidity at March 31, 2021 was $9.7 billion, which included $1.5 billion at the MGP Operating Partnership and
$1.8 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 March 31, 2021, principal
amount of indebtedness was $13.4
billion, including $4.2
billion outstanding at the MGP Operating Partnership, and
$3.7 billion outstanding at MGM
China; and
- In March 2021, the Company
exercised its right to require the MGP Operating Partnership to
redeem approximately 37 million Operating Partnership units that
the Company held for aggregate cash proceeds of $1.2 billion.
Las Vegas Strip Resorts
- Net revenues of $545 million, a
decrease of 52% compared to the prior year quarter due to the
pandemic and related operational restrictions as well as midweek
property and hotel closures at certain properties;
- Table Games Hold Adjusted Las Vegas Strip Resorts Net
Revenues(3) of $544
million, a decrease of 52% compared to the prior year
quarter;
- Adjusted Property EBITDAR(2) of $108 million compared to $268 million in the prior year quarter, a 60%
decline;
- Adjusted Property EBITDAR margin(2) of 19.8% in the
current quarter, compared to 23.6% in the prior year quarter;
and
- Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted
Property EBITDAR(2) decreased 61% to $107 million compared to $273 million in the prior year quarter.
Regional Operations
- Net revenues of $711 million, a
decrease of 2% compared to the prior year quarter due to the
pandemic and related operational restrictions as well as hotel
closures at certain properties;
- Adjusted Property EBITDAR of $242
million compared to $152
million in the prior year quarter, an increase of 59%, due
to an increase in casino revenues and realized benefits of the
Company's cost saving initiatives; and
- Adjusted Property EBITDAR margin of 34% in the current quarter,
a 1,311 basis point increase compared to the prior year
quarter.
MGM China
- Net revenues of $296 million, an
increase of 9% compared to the prior year quarter as the prior year
quarter was negatively affected by property closures and was more
significantly impacted by travel restrictions to Macau than in the current quarter;
- VIP Table Games Hold Adjusted MGM China Net
Revenues(3) of $294
million, an increase of 7% compared to the prior year
quarter;
- Adjusted Property EBITDAR of $5
million compared to Adjusted Property EBITDAR loss of
$22 million in the prior year
quarter; and
- VIP Table Games Hold Adjusted MGM China Adjusted Property
EBITDAR(2) of $5 million
compared to VIP Table Games Hold Adjusted MGM China Adjusted
Property EBITDAR loss of $17 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
March 31,
|
|
2021
|
|
2020
|
|
Diluted earnings
(loss) per share
|
|
$
|
(0.69)
|
|
$
|
1.64
|
|
Property
transactions, net
|
|
|
0.05
|
|
|
0.11
|
|
Gain on REIT
transactions, net
|
|
|
—
|
|
|
(3.16)
|
|
CEO transition
expense
|
|
|
—
|
|
|
0.09
|
|
Non-operating
items:
|
|
|
|
|
|
|
|
Loss on retirement of
long-term debt
|
|
|
—
|
|
|
0.24
|
|
Foreign currency
(gain) loss on MGM China senior notes
|
|
|
0.01
|
|
|
(0.01)
|
|
Change in fair value
of MGP swaps
|
|
|
(0.04)
|
|
|
0.01
|
|
Unconsolidated
affiliate items:
|
|
|
|
|
|
|
|
Change in fair value
of CityCenter swaps
|
|
|
(0.01)
|
|
|
0.02
|
|
Income tax impact on
net income adjustments (1)
|
|
|
—
|
|
|
0.61
|
|
Adjusted diluted
earnings (loss) per share
|
|
$
|
(0.68)
|
|
$
|
(0.45)
|
|
|
|
(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 first quarter of 2021 decreased 16%
compared to the prior year quarter at the Company's Las Vegas Strip
Resorts, due primarily to lower business volume and travel activity
due to the pandemic and ongoing operational restrictions.
The following table shows key gaming statistics for the
Company's Las Vegas Strip Resorts:
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
%
change
|
|
|
(Dollars in
millions)
|
|
Table Games
Drop
|
|
$529
|
|
$841
|
-37%
|
Table Games
Win
|
|
$127
|
|
$196
|
-35%
|
Table Games Win
%
|
|
24.1%
|
|
23.2%
|
|
Slots
Handle
|
|
$2,301
|
|
$2,457
|
-6%
|
Slots Win
|
|
$212
|
|
$230
|
-8%
|
Slots Win
%
|
|
9.2%
|
|
9.4%
|
|
Rooms revenue decreased 60% compared to the prior year quarter
at the Company's Las Vegas Strip Resorts due primarily to the
decrease in REVPAR(4) as a result of reduced business
volume and travel related to the pandemic as well as midweek
property and hotel closures at certain properties.
The following table shows key hotel statistics for the Company's
Las Vegas Strip Resorts:
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
%
change
|
Occupancy
%(1)
|
|
46%
|
|
88%
|
|
Average Daily Rate
(ADR)
|
|
$129
|
|
$183
|
-29.6%
|
Revenue per Available
Room (REVPAR)(1)
|
|
$60
|
|
$160
|
-62.7%
|
|
|
(1)
|
Rooms that were out
of service, including full and midweek closures, during the three
months ended March 31, 2021 and 2020 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 first quarter of 2021 increased 11%
compared to the prior year quarter at the Company's Regional
Operations due to a 6% increase in table games win and a 7%
increase in slots win.
The following table shows key gaming statistics for the
Company's Regional Operations:
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
%
change
|
|
|
(Dollars in
millions)
|
|
Table Games
Drop
|
|
$819
|
|
$844
|
-3%
|
Table Games
Win
|
|
$173
|
|
$164
|
6%
|
Table Games Win
%
|
|
21.2%
|
|
19.4%
|
|
Slots
Handle
|
|
$5,384
|
|
$5,170
|
4%
|
Slots Win
|
|
$526
|
|
$494
|
7%
|
Slots Win
%
|
|
9.8%
|
|
9.6%
|
|
MGM China
Key first quarter results for MGM China include:
- Net revenues of $296 million, an
increase of 9% compared to the prior year quarter;
- Main floor table games win increased 23% compared to the prior
year quarter;
- VIP table games win decreased 28% compared to the prior year
quarter; and
- Adjusted Property EBITDAR of $5
million compared to Adjusted Property EBITDAR loss of
$22 million in the prior year
quarter. License fee expense was $5
million in each of the current and prior year quarters.
The following table shows key gaming statistics for MGM
China:
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
%
change
|
|
|
(Dollars in
millions)
|
|
VIP Table Games
Turnover
|
|
$2,373
|
|
$3,425
|
-31%
|
VIP Table Games
Win
|
|
$78
|
|
$109
|
-28%
|
VIP Table Games Win
%
|
|
3.3%
|
|
3.2%
|
|
Main Floor Table
Games Drop
|
|
$1,044
|
|
$777
|
34%
|
Main floor Table
Games Win
|
|
$230
|
|
$188
|
23%
|
Main Floor Table
Games Win %
|
|
22.0%
|
|
24.1%
|
|
Corporate Expense
Corporate expense, including share-based compensation for
corporate employees, decreased to $78
million in the first quarter of 2021, from $144 million in the prior year quarter due
primarily to a decrease in payroll costs. In addition, the prior
year quarter included $44 million in
CEO transition expense. Included in the CEO transition expense is
$20 million of stock compensation
expense, of which approximately $13
million related to the modification and accelerated vesting
of outstanding stock compensation awards.
Unconsolidated Affiliates
The following table summarizes information related to the
Company's share of operating income (loss) from unconsolidated
affiliates:
Three Months Ended
March 31,
|
|
2021
|
|
|
2020
|
|
|
|
(In
thousands)
|
|
CityCenter
|
|
$
|
(2,831)
|
|
|
$
|
20,666
|
|
MGP BREIT
Venture
|
|
|
38,962
|
|
|
|
19,950
|
|
BetMGM
|
|
|
(59,236)
|
|
|
|
(10,677)
|
|
Other
|
|
|
(2,474)
|
|
|
|
5,809
|
|
|
|
$
|
(25,579)
|
|
|
$
|
35,748
|
|
For the three months ended March 31, 2021, CityCenter's net
loss was $35 million and Adjusted
EBITDA(5) was $33
million compared to net loss of $21
million and Adjusted EBITDA of $79
million in the prior year quarter, primarily as a result of
the operational restrictions and reduced business volume and travel
related to the pandemic.
MGM Growth Properties
During the first quarter of 2021, 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 $72 million from the MGP Operating Partnership.
In March 2021, the Board of Directors
of MGM Growth Properties LLC ("MGP") approved a quarterly dividend
of $0.495 per Class A share (which
represents a dividend of $1.98 per
share on an annualized basis) totaling $76
million, which was paid on April 15,
2021 to holders of record on March
31, 2021. The Company concurrently received a $55 million distribution attributable to its
ownership of MGP Operating Partnership units.
MGM Resorts Dividend and Share
Repurchases
On April 28, 2021, the Company's
Board of Directors approved a quarterly dividend of $0.0025 per share. The dividend will be payable
on June 15, 2021 to holders of record
on June 10, 2021.
During the first quarter of 2021, MGM Resorts repurchased
approximately 3.15 million shares of its common stock at an average
price of $37.87 per share for an
aggregate amount of $119 million,
pursuant to the May 2018 $2.0 billion and February
2020 $3.0 billion stock
repurchase plans. MGM completed the $2.0
billion stock repurchase program, and the remaining
availability under the $3.0 billion
stock repurchase program was $2.9
billion as of March 31, 2021.
All shares repurchased under the Company's program have been
retired.
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
8737442.
A replay of the call will be available through Wednesday, May 5, 2021. The replay may be
accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay
access code is 10153499. 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, gain
or loss on retirement of long-term debt, foreign currency gain or
loss related to MGM China's U.S. dollar-denominated debt,
mark-to-market adjustments related to MGP's interest rate swaps,
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, 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, 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 excludes 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, 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 31 unique hotel and gaming destinations
globally, including some of the most recognizable resort brands in
the industry. 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"
philosophy, 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 benefits to be achieved
from the changes to the Company's operating model (including any
projected cost savings), expectations regarding the Company's
liquidity position, the Company's ability to execute on its
strategic plans, including the development of an integrated resort
in Japan and positioning BetMGM as
a leader in sports betting and iGaming, and the Company's 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
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
|
Casino
|
|
|
$
|
1,098,633
|
|
$
|
1,054,026
|
|
Rooms
|
|
|
|
198,419
|
|
|
433,951
|
|
Food and
beverage
|
|
157,412
|
|
|
396,709
|
|
Entertainment,
retail and other
|
|
135,222
|
|
|
269,945
|
|
Reimbursed
costs
|
|
58,061
|
|
|
98,186
|
|
|
|
|
|
|
1,647,747
|
|
|
2,252,817
|
Expenses:
|
|
|
|
|
|
|
|
|
Casino
|
|
|
|
551,905
|
|
|
628,670
|
|
Rooms
|
|
|
|
104,213
|
|
|
172,609
|
|
Food and
beverage
|
|
135,227
|
|
|
339,636
|
|
Entertainment,
retail and other
|
|
78,381
|
|
|
199,063
|
|
Reimbursed
costs
|
|
58,061
|
|
|
98,186
|
|
General and
administrative
|
|
546,407
|
|
|
574,306
|
|
Corporate
expense
|
|
78,037
|
|
|
143,808
|
|
Preopening and
start-up expenses
|
|
5
|
|
|
122
|
|
Property
transactions, net
|
|
26,071
|
|
|
54,975
|
|
Gain on REIT
transactions, net
|
|
-
|
|
|
(1,491,945)
|
|
Depreciation and
amortization
|
|
290,551
|
|
|
318,290
|
|
|
|
|
|
|
1,868,858
|
|
|
1,037,720
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
unconsolidated affiliates
|
|
(25,579)
|
|
|
35,748
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(246,690)
|
|
|
1,250,845
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income (expense):
|
|
|
|
|
|
|
Interest expense,
net of amounts capitalized
|
|
(195,295)
|
|
|
(157,137)
|
|
Non-operating
items from unconsolidated affiliates
|
|
(20,836)
|
|
|
(32,621)
|
|
Other,
net
|
|
|
32,185
|
|
|
(124,264)
|
|
|
|
|
|
|
(183,946)
|
|
|
(314,022)
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
(430,636)
|
|
|
936,823
|
|
Benefit
(provision) for income taxes
|
|
94,698
|
|
|
(262,304)
|
Net income
(loss)
|
|
|
(335,938)
|
|
|
674,519
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
4,109
|
|
|
132,350
|
Net income (loss)
attributable to MGM Resorts International
|
$
|
(331,829)
|
|
$
|
806,869
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.69)
|
|
$
|
1.64
|
|
Diluted
|
|
|
$
|
(0.69)
|
|
$
|
1.64
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
|
494,864
|
|
|
495,415
|
|
Diluted
|
|
|
|
494,864
|
|
|
496,984
|
MGM RESORTS
INTERNATIONAL AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands,
except share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
6,171,512
|
|
$
|
5,101,637
|
|
Accounts
receivable, net
|
|
|
360,188
|
|
|
316,502
|
|
Inventories
|
|
|
|
82,346
|
|
|
88,323
|
|
Income tax
receivable
|
|
|
242,177
|
|
|
243,415
|
|
Prepaid expenses
and other
|
|
227,644
|
|
|
200,782
|
|
|
Total current
assets
|
|
|
7,083,867
|
|
|
5,950,659
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
14,454,032
|
|
|
14,632,091
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
|
|
Investments in and
advances to unconsolidated affiliates
|
|
1,439,454
|
|
|
1,447,043
|
|
Goodwill
|
|
|
|
2,087,458
|
|
|
2,091,278
|
|
Other intangible
assets, net
|
|
3,586,603
|
|
|
3,643,748
|
|
Operating lease
right-of-use assets, net
|
|
8,240,897
|
|
|
8,286,694
|
|
Other long-term
assets, net
|
|
438,456
|
|
|
443,421
|
|
|
Total other
assets
|
|
|
15,792,868
|
|
|
15,912,184
|
|
|
|
|
|
|
$
|
37,330,767
|
|
$
|
36,494,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
160,894
|
|
$
|
142,523
|
|
Construction
payable
|
|
|
24,395
|
|
|
30,149
|
|
Accrued interest
on long-term debt
|
|
175,256
|
|
|
138,832
|
|
Other accrued
liabilities
|
|
|
1,474,841
|
|
|
1,545,079
|
|
|
Total current
liabilities
|
|
|
1,835,386
|
|
|
1,856,583
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes, net
|
|
|
2,154,832
|
|
|
2,153,016
|
Long-term debt,
net
|
|
|
13,245,448
|
|
|
12,376,684
|
Other long-term
obligations
|
|
|
399,357
|
|
|
472,084
|
Operating lease
liabilities
|
|
|
8,392,216
|
|
|
8,390,117
|
Redeemable
noncontrolling interest
|
|
71,009
|
|
|
66,542
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock, $.01
par value: authorized 1,000,000,000 shares,
|
|
|
|
|
|
|
issued and outstanding 491,873,793 and 494,317,865
shares
|
|
4,919
|
|
|
4,943
|
|
Capital in excess
of par value
|
|
3,569,186
|
|
|
3,439,453
|
|
Retained
earnings
|
|
|
2,757,941
|
|
|
3,091,007
|
|
Accumulated other
comprehensive loss
|
|
(25,218)
|
|
|
(30,677)
|
|
|
Total MGM Resorts
International stockholders' equity
|
|
6,306,828
|
|
|
6,504,726
|
|
Noncontrolling
interests
|
|
|
4,925,691
|
|
|
4,675,182
|
|
|
Total
stockholders' equity
|
|
11,232,519
|
|
|
11,179,908
|
|
|
|
|
|
|
$
|
37,330,767
|
|
$
|
36,494,934
|
MGM RESORTS
INTERNATIONAL AND SUBSIDIARIES
|
SUPPLEMENTAL DATA
- NET REVENUES
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
2021
|
|
2020
|
Las Vegas Strip
Resorts
|
|
|
|
|
$
|
544,964
|
|
$
|
1,133,806
|
Regional
Operations
|
|
|
|
|
|
|
711,351
|
|
|
725,660
|
MGM
China
|
|
|
|
|
|
|
296,354
|
|
|
271,887
|
Management and
other operations
|
|
|
|
|
95,078
|
|
|
121,464
|
|
|
|
|
|
|
$
|
1,647,747
|
|
$
|
2,252,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MGM RESORTS
INTERNATIONAL AND SUBSIDIARIES
|
SUPPLEMENTAL DATA
- ADJUSTED PROPERTY EBITDAR and ADJUSTED EBITDAR
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
2021
|
|
2020
|
Las Vegas Strip
Resorts
|
|
|
|
|
$
|
108,119
|
|
$
|
267,599
|
Regional
Operations
|
|
|
|
|
|
|
241,982
|
|
|
151,720
|
MGM
China
|
|
|
|
|
|
|
4,775
|
|
|
(21,990)
|
Unconsolidated
affiliates (1)
|
|
|
|
|
|
(67,251)
|
|
|
12,234
|
Management and
other operations
|
|
|
|
|
13,586
|
|
|
(6,862)
|
Stock
compensation
|
|
|
|
|
|
|
(16,029)
|
|
|
(16,931)
|
Corporate
|
|
|
|
|
|
|
(67,297)
|
|
|
(90,678)
|
|
|
|
|
|
|
$
|
217,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
2021
|
|
2020
|
Net income (loss)
attributable to MGM Resorts International
|
|
$
|
(331,829)
|
|
$
|
806,869
|
Plus: Net
loss attributable to noncontrolling interests
|
|
|
(4,109)
|
|
|
(132,350)
|
Net income
(loss)
|
|
|
|
|
|
|
(335,938)
|
|
|
674,519
|
(Benefit)
provision for income taxes
|
|
|
|
|
(94,698)
|
|
|
262,304
|
Income (loss)
before income taxes
|
|
|
|
|
(430,636)
|
|
|
936,823
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
(income) expense:
|
|
|
|
|
|
|
|
|
Interest
expense, net of amounts capitalized
|
|
|
|
195,295
|
|
|
157,137
|
Other,
net
|
|
|
|
|
|
|
(11,349)
|
|
|
156,885
|
|
|
|
|
|
|
|
183,946
|
|
|
314,022
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
(246,690)
|
|
|
1,250,845
|
Preopening
and start-up expenses
|
|
|
|
|
5
|
|
|
122
|
Property
transactions, net
|
|
|
|
|
|
26,071
|
|
|
54,975
|
Gain on
REIT transactions, net
|
|
|
|
|
|
-
|
|
|
(1,491,945)
|
Depreciation and amortization
|
|
|
|
|
|
290,551
|
|
|
318,290
|
CEO
transition expense
|
|
|
|
|
|
-
|
|
|
44,401
|
Triple net
operating lease and ground lease rent expense
|
|
|
189,620
|
|
|
141,918
|
Income from
unconsolidated affiliates related to real estate
ventures
|
|
(41,672)
|
|
|
(23,514)
|
Adjusted
EBITDAR
|
|
|
|
|
|
$
|
217,885
|
|
|
|
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
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
2021
|
|
2020
|
Las Vegas Strip
Resorts net revenues
|
|
|
|
|
$
|
544,964
|
|
$
|
1,133,806
|
Hold adjustment
(1)
|
|
|
|
|
|
|
(1,071)
|
|
|
6,726
|
Table Games Hold
Adjusted Las Vegas Strip Resorts Net Revenues
|
|
|
|
$
|
543,893
|
|
$
|
1,140,532
|
|
|
|
|
|
|
|
|
|
|
|
Las Vegas Strip
Resorts Adjusted Property EBITDAR
|
|
|
|
$
|
108,119
|
|
$
|
267,599
|
Hold adjustment
(2)
|
|
|
|
|
|
|
(945)
|
|
|
5,698
|
Table Games Hold
Adjusted Las Vegas Strip Resorts Adjusted Property
EBITDAR
|
|
|
$
|
107,174
|
|
$
|
273,297
|
|
(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
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
2021
|
|
2020
|
MGM China net
revenues
|
|
|
|
|
|
$
|
296,354
|
|
$
|
271,887
|
Hold adjustment
(3)
|
|
|
|
|
|
|
(2,742)
|
|
|
2,902
|
VIP Table Games
Hold Adjusted MGM China Net Revenues
|
|
|
|
$
|
293,612
|
|
$
|
274,789
|
|
|
|
|
|
|
|
|
|
|
|
MGM China Adjusted
Property EBITDAR
|
|
|
|
|
$
|
4,775
|
|
$
|
(21,990)
|
Hold adjustment
(4)
|
|
|
|
|
|
|
291
|
|
|
5,276
|
VIP Table Games
Hold Adjusted MGM China Adjusted Property EBITDAR
|
|
|
$
|
5,066
|
|
$
|
(16,714)
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
$
|
134,087
|
|
$
|
265,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
$
|
33,245
|
|
$
|
78,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITYCENTER
HOLDINGS, LLC
|
SUPPLEMENTAL DATA
- HOTEL STATISTICS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
%
|
|
|
|
|
|
41.3%
|
|
|
86.0%
|
|
|
|
ADR
(1)
|
|
|
|
|
|
|
$209
|
|
|
$285
|
|
|
|
REVPAR
(1)
|
|
|
|
|
|
|
$86
|
|
|
$245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Rooms that
were out of service during the three months ended March 31, 2021
and 2020 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 LOSS TO ADJUSTED EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
|
|
$
|
(35,396)
|
|
$
|
(20,877)
|
|
|
|
Non-operating
(income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of amounts capitalized
|
|
|
|
19,092
|
|
|
21,357
|
|
|
|
Other,
net
|
|
|
|
|
|
|
(6,530)
|
|
|
23,680
|
|
|
|
|
|
|
|
|
|
|
|
12,562
|
|
|
45,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
(22,834)
|
|
|
24,160
|
|
|
|
Property
transactions, net
|
|
|
|
|
|
156
|
|
|
(2,498)
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
55,923
|
|
|
56,890
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
$
|
33,245
|
|
$
|
78,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/mgm-resorts-international-reports-first-quarter-2021-financial-and-operating-results-301279338.html
SOURCE MGM Resorts International