Exhibit 99
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| PRESS RELEASE | | FOR IMMEDIATE RELEASE |
MGM MIRAGE REPORTS FOURTH QUARTER AND FULL YEAR
FINANCIAL RESULTS
CityCenter Opens to Rave Reviews
Convention Booking Pace Continues to Strengthen
Las Vegas, Nevada, February 18, 2010— MGM MIRAGE (NYSE: MGM) today announced its financial results for the fourth quarter of 2009. The Company reported a fourth quarter diluted loss per share of $0.98, which includes the impact of a pre-tax non-cash impairment charge totaling $548 million, or $0.73 loss per diluted share net of tax, related to the Company’s undeveloped land holdings in Atlantic City. For the same quarter in 2008, the Company reported a diluted loss per share of $4.15, which included a non-cash goodwill and indefinite-lived intangible asset impairment charge of $1.2 billion, or $4.25 per diluted share net of tax, and a gain on repurchased debt of $87 million or $0.21 per diluted share net of tax.
The following table lists items which affect the comparability of the current and prior year quarterly results (EPS impact, net of tax, per diluted share; negative amounts represent charges to income):
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| Three months ended December 31, | | 2009 | | 2008 |
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| Preopening and start-up expenses | | $ | (0.04 | ) | | $ | (0.01 | ) |
| Gains on repurchase of long-term debt | | | — | | | | 0.21 | |
| Property transactions net: | | | | | | | | |
| Atlantic City non-cash impairment charge | | | (0.73 | ) | | | — | |
| Goodwill and indefinite-lived intangible assets impairment | | | — | | | | (4.25 | ) |
| Other property transactions, net | | | — | | | | 0.01 | |
The following key results for the quarter are presented on a “same store” basis excluding the results of Treasure Island casino resort (“TI”) in the prior year as the Company completed the sale of TI in March 2009:
| | • | | Net revenue decreased 6% to $1.5 billion, compared to a 9% year-over-year decrease in the third quarter of 2009; |
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| | • | | Casino revenue decreased 7%, partially offset by strong baccarat results during the quarter with baccarat volume up 44%; |
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| | • | | Las Vegas Strip REVPAR1 decreased 16% compared to the prior year quarter versus a 23% year-over-year decrease in the third quarter of 2009; and |
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| | • | | Adjusted Property EBITDA2was $307 million, or down 8%. |
Other key results include:
| | • | | MGM Grand Macau earned operating income of $22 million and had depreciation expense of $24 million during the fourth quarter of 2009, compared to an operating loss of $2 million and depreciation expense of $19 million in the same quarter in 2008. |
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| | • | | CityCenter opened in December 2009. Aria, the centerpiece casino resort, earned operating income of $7 million in 15 days of operations, with depreciation and amortization of $9 million. |
MGM MIRAGE• 3600 LAS VEGAS BLVD SOUTH• LAS VEGAS, NV 89109• PH: 702.693.7120• FX: 702.693.8626• WWW.MGMMIRAGE.COM
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“This has been a challenging but momentous year for MGM MIRAGE culminating with the opening of CityCenter in December,” said Jim Murren, MGM MIRAGE Chairman and Chief Executive Officer. “We generated significant cash flows and kept our buildings occupied at 90% even in a brutal economy because we are equipped with the highest quality resorts, the preeminent brands, and the finest employees in the industry. We have profoundly improved our cost structure and are actively building revenue to maximize operating leverage as the economy shifts into recovery mode. Our forward convention booking pace accelerated again in the fourth quarter with over 440,000 future room nights booked. We are keenly focused on strengthening our financial foundation and made historic progress last year.”
Detailed Discussion of Fourth Quarter Operating Results
(Results are presented on a same store basis excluding TI)
Casino revenue declined 7%, with table games revenue down 7% and slots revenue down 6%. The Company’s table games volume was up 2% in the quarter, including a 44% increase in baccarat volume. The overall table games hold percentage was near the mid-point of the Company’s normal 18% to 22% range in both the current and prior year.
Rooms revenue decreased 14% while Las Vegas Strip REVPAR decreased 16%. Anticipated weakness in convention traffic led to lower room rates; however, increased leisure and casino business allowed the Company to maintain occupancy in line with prior periods. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:
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| Three months ended December 31, | | 2009 | | 2008 |
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| Occupancy % | | | 86 | % | | | 85 | % |
| Average Daily Rate (ADR) | | $ | 111 | | | $ | 135 | |
| Revenue per Available Room (REVPAR) | | $ | 95 | | | $ | 114 | |
Corporate expense increased to $44 million compared to $26 million in the 2008 fourth quarter. The current quarter includes increased financial advisory and legal costs and severance accruals.
Income from unconsolidated affiliates increased to $25 million from $7 million in the prior year fourth quarter, primarily as a result of continued year-over-year improvement in operating results at MGM Grand Macau. MGM Grand Macau earned operating income of $22 million during the fourth quarter compared to an operating loss of $2 million for the same quarter in the prior year. Included in income from unconsolidated affiliates is a $2 million loss related to the Company’s share of CityCenter’s consolidated operating results in the fourth quarter 2009 compared to a $9 million loss for the same quarter in 2008.
Operating loss for the fourth quarter was $487 million, which included the Atlantic City land impairment charge recorded during the quarter. Adjusted Property EBITDA was $307 million, down 8% excluding results for TI from the prior year fourth quarter, with a margin of 21% in the current year quarter compared to 22% in the prior year fourth quarter. Adjusted EBITDA was $256 million, down 15% from the 2008 fourth quarter excluding results for TI.
Non-operating expense increased to $233 million in the fourth quarter of 2009 primarily due to higher interest costs associated with the Company’s fixed rate senior note issuances in the fourth quarter of 2008 and during 2009 and higher interest rates on the Company’s senior credit facility. In addition, the prior year fourth quarter included a gain on repurchase of long-term debt of $87 million.
MGM MIRAGE• 3600 LAS VEGAS BLVD SOUTH• LAS VEGAS, NV 89109• PH: 702.693.7120• FX: 702.693.8626• WWW.MGMMIRAGE.COM
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Full Year 2009 Results
(Results are presented on a same store basis excluding TI, except per share data)
For the full year 2009, net revenues decreased 13% to $5.9 billion. Las Vegas Strip REVPAR decreased 25% for the full year compared to 2008, with quarter-over-quarter percentage decreases in REVPAR improving sequentially throughout the year. Adjusted Property EBITDA was $1.3 billion for the full year of 2009.
EPS from continuing operations for the full year was a loss of $3.41 per diluted share compared to a loss of $3.06 per diluted share earned in 2008. The following table lists significant items which affect the comparability of the current year and prior year annual results (EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):
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| Year ended December 31, | | 2009 | | 2008 |
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| Monte Carlo business interruption (recorded as a reduction of general and administrative expenses) | | | 0.03 | | | | 0.02 | |
| Preopening and start-up expenses | | | (0.09 | ) | | | (0.05 | ) |
| Property transactions net: | | | | | | | | |
| Goodwill and indefinite-lived intangible assets impairment | | | — | | | | (4.20 | ) |
| Atlantic City Renaissance Pointe land holdings impairment | | | (0.85 | ) | | | — | |
| Gain on Sale of TI | | | 0.31 | | | | — | |
| Investment in CityCenter non-cash impairment charge | | | (1.63 | ) | | | — | |
| Monte Carlo fire property damage income | | | 0.01 | | | | 0.02 | |
| Other property transactions | | | (0.03 | ) | | | (0.09 | ) |
| Income (loss) from unconsolidated affiliates: | | | | | | | | |
| CityCenter joint venture residential non-cash impairment charge | | | (0.35 | ) | | | — | |
| Borgata joint venture insurance proceeds | | | 0.02 | | | | — | |
| North Las Vegas Strip joint venture impairment charge | | | (0.02 | ) | | | — | |
| Other, net: | | | | | | | | |
| Convertible note impairment charge | | | (0.30 | ) | | | — | |
| (Loss) gain on repurchase of long-term debt | | | (0.11 | ) | | | 0.20 | |
CityCenter
The Company and its joint venture partner, Infinity World, opened CityCenter in December 2009. CityCenter has forever changed the Las Vegas Strip and has been awarded six LEED® Gold certifications by the U.S. Green Building Council and is one of the world’s largest green developments. Aria, the centerpiece casino resort, opened as scheduled on December 16. Vdara, a 1,495-unit luxury condominium-hotel tower, Mandarin Oriental, a 400-room boutique hotel, and Crystals retail district opened in early December. Aria earned operating income of $7 million in 15 days of operations, with depreciation and amortization of $9 million.
“MGM MIRAGE Design Group delivered CityCenter on time for its scheduled opening in December 2009. I am proud of the thousands of men and women that made CityCenter a reality for all to enjoy,” said Bobby Baldwin, MGM MIRAGE Chief Construction and Design Officer and President of CityCenter.
Based on recent estimates of the final construction costs for CityCenter, the Company has accrued $150 million under its completion guarantee with the joint venture. This is the low end of management’s estimated range for the Company’s net obligation under the completion guarantee. The Company estimates the high end of such range is approximately $300 million and can provide no assurance that the final requirement will not increase such net obligation above this amount.
“The Company has instituted a comprehensive close-out plan for all of CityCenter; we fully expect a timely and successful close-out of this project and will remain focused on minimizing amounts due under the completion guarantee,” said Bobby Baldwin.
MGM MIRAGE• 3600 LAS VEGAS BLVD SOUTH• LAS VEGAS, NV 89109• PH: 702.693.7120• FX: 702.693.8626• WWW.MGMMIRAGE.COM
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Financial Position
In late December 2009, the Company borrowed the remaining availability under its senior credit facility of $1.6 billion in order to increase its capacity for issuing additional senior secured notes under its existing senior secured notes indentures, which resulted in a higher than normal cash balance at year end of $2.1 billion. The Company repaid such amounts immediately after year-end. The Company’s outstanding debt balance (net of the $1.6 billion of excess cash) was $12.5 billion at December 31, 2009, down from $13.5 billion at December 31, 2008.
As previously announced, the Company is seeking amendments to its aggregate $5.55 billion of senior credit facilities which would, among other things, extend the maturity of a substantial portion of those credit facilities from October 3, 2011 to February 21, 2014. The Company has asked its lenders to provide their final approvals of the transaction by February 24, 2010.
“Extending our credit facility will provide us with significant flexibility to continue to work on de-leveraging our balance sheet,” said Dan D’Arrigo, MGM MIRAGE Executive Vice President and Chief Financial Officer. “We appreciate the strong initial support from our group of lenders who have consistently been our partners. We believe this amendment to our credit facility will provide a platform for long-term capital stability and reinforces our dedication to improving our finances.”
MGM MIRAGE will hold a conference call to discuss its fourth quarter results at 11:00 a.m. Eastern Standard Time today. The call can be accessed live at www.companyboardroom.com or www.mgmmirage.com, or by calling 1-800-526-8531 (domestic) or 1-706-758-3659 (international). Until Thursday, February 25, 2010, a complete replay of the conference call can be accessed by dialing 1-800-642-1687 or 1-706-645-9291, access code 55603540. A complete replay of the call will also be made available at www.mgmmirage.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. 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, pre-opening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and dependent 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 our 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.
MGM MIRAGE• 3600 LAS VEGAS BLVD SOUTH• LAS VEGAS, NV 89109• PH: 702.693.7120• FX: 702.693.8626• WWW.MGMMIRAGE.COM
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Adjusted EBITDA or Adjusted Property EBITDA should not be construed as an alternative to operating income, as an indicator of the Company’s operating performance; or as an alternative to cash flows from operating activities, as a measure of liquidity; or net income as an indicator of the Company’s performance; 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 and debt principal repayments, which are not reflected in Adjusted EBITDA. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDA information may calculate Adjusted EBITDA in a different manner than the Company. Reconciliations of Adjusted EBITDA to net income (loss) and of operating income to Adjusted Property EBITDA are included in the financial schedules accompanying this release.
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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 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in five other properties in Nevada, New Jersey, Illinois and Macau. One of those investments — CityCenter — is also managed by MGM MIRAGE. CityCenter, an unprecedented urban metropolis on the Las Vegas Strip with Gold and Silver LEED®certifications, is a joint venture between MGM MIRAGE and Infinity World Development Corp, a subsidiary of Dubai World. CityCenter features ARIA Resort & Casino, Vdara Hotel & Spa, Mandarin Oriental, Las Vegas; Veer Towers, and Crystals retail and entertainment district. MGM MIRAGE Hospitality has entered into management agreements for 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.
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Contacts: | | |
Investment Community | | News Media |
| DANIEL J. D’ARRIGO | | ALAN M. FELDMAN |
Executive Vice President, | | Senior Vice President |
Chief Financial Officer | | Public Affairs |
| (702) 693-8895 | | (702) 650-6947 |
MGM MIRAGE• 3600 LAS VEGAS BLVD SOUTH• LAS VEGAS, NV 89109• PH: 702.693.7120• FX: 702.693.8626• WWW.MGMMIRAGE.COM
5
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
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| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Revenues: | | | | | | | | | | | | | | | | |
| Casino | | $ | 627,957 | | | $ | 703,702 | | | $ | 2,618,060 | | | $ | 2,975,680 | |
| Rooms | | | 324,631 | | | | 406,771 | | | | 1,370,135 | | | | 1,907,093 | |
| Food and beverage | | | 321,785 | | | | 353,322 | | | | 1,362,325 | | | | 1,582,367 | |
| Entertainment | | | 123,801 | | | | 137,769 | | | | 493,799 | | | | 546,310 | |
| Retail | | | 50,475 | | | | 58,993 | | | | 207,260 | | | | 261,053 | |
| Other | | | 173,455 | | | | 133,028 | | | | 592,703 | | | | 611,692 | |
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| | | | 1,622,104 | | | | 1,793,585 | | | | 6,644,282 | | | | 7,884,195 | |
| Less: Promotional allowances | | | (169,688 | ) | | | (169,073 | ) | | | (665,693 | ) | | | (675,428 | ) |
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| | | | 1,452,416 | | | | 1,624,512 | | | | 5,978,589 | | | | 7,208,767 | |
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| Expenses: | | | | | | | | | | | | | | | | |
| Casino | | | 366,876 | | | | 417,966 | | | | 1,459,944 | | | | 1,618,914 | |
| Rooms | | | 101,922 | | | | 120,713 | | | | 427,169 | | | | 533,559 | |
| Food and beverage | | | 184,881 | | | | 210,515 | | | | 775,018 | | | | 930,716 | |
| Entertainment | | | 90,240 | | | | 96,205 | | | | 358,026 | | | | 384,822 | |
| Retail | | | 35,091 | | | | 40,789 | | | | 134,851 | | | | 168,859 | |
| Other | | | 123,736 | | | | 89,983 | | | | 384,298 | | | | 397,504 | |
| General and administrative | | | 274,570 | | | | 307,599 | | | | 1,100,193 | | | | 1,278,944 | |
| Corporate expense | | | 44,469 | | | | 25,742 | | | | 143,764 | | | | 109,279 | |
| Preopening and start-up expenses | | | 25,474 | | | | 5,433 | | | | 53,013 | | | | 23,059 | |
| Property transactions, net | | | 549,358 | | | | 1,175,765 | | | | 1,328,689 | | | | 1,210,749 | |
| Depreciation and amortization | | | 167,396 | | | | 186,577 | | | | 689,273 | | | | 778,236 | |
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| | | | 1,964,013 | | | | 2,677,287 | | | | 6,854,238 | | | | 7,434,641 | |
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| Income (loss) from unconsolidated affiliates | | | 24,942 | | | | 6,543 | | | | (88,227 | ) | | | 96,271 | |
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| Operating loss | | | (486,655 | ) | | | (1,046,232 | ) | | | (963,876 | ) | | | (129,603 | ) |
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| Non-operating income (expense): | | | | | | | | | | | | | | | | |
| Interest income | | | 769 | | | | 3,464 | | | | 12,304 | | | | 16,520 | |
| Interest expense, net | | | (220,609 | ) | | | (169,442 | ) | | | (775,431 | ) | | | (609,286 | ) |
| Non-operating items from unconsolidated affiliates | | | (9,069 | ) | | | (7,828 | ) | | | (47,127 | ) | | | (34,559 | ) |
| Other, net | | | (3,770 | ) | | | 87,149 | | | | (238,463 | ) | | | 87,940 | |
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| | | | (232,679 | ) | | | (86,657 | ) | | | (1,048,717 | ) | | | (539,385 | ) |
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| Loss before income taxes | | | (719,334 | ) | | | (1,132,889 | ) | | | (2,012,593 | ) | | | (668,988 | ) |
| Benefit (provision) for income taxes | | | 285,416 | | | | (15,122 | ) | | | 720,911 | | | | (186,298 | ) |
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| Net loss | | $ | (433,918 | ) | | $ | (1,148,011 | ) | | $ | (1,291,682 | ) | | $ | (855,286 | ) |
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| Per share of common stock: | | | | | | | | | | | | | | | | |
| Basic: | | | | | | | | | | | | | | | | |
| Net loss per share | | $ | (0.98 | ) | | $ | (4.15 | ) | | $ | (3.41 | ) | | $ | (3.06 | ) |
| | | | | | | | | | | | | |
| Weighted average shares outstanding | | | 441,238 | | | | 276,505 | | | | 378,513 | | | | 279,815 | |
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| Diluted: | | | | | | | | | | | | | | | | |
| Net loss per share | | $ | (0.98 | ) | | $ | (4.15 | ) | | $ | (3.41 | ) | | $ | (3.06 | ) |
| | | | | | | | | | | | | |
| Weighted average shares outstanding | | | 441,238 | | | | 276,505 | | | | 378,513 | | | | 279,815 | |
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MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA — NET REVENUES
(In thousands)
(Unaudited)
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| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Bellagio | | $ | 269,712 | | | $ | 291,665 | | | $ | 1,064,729 | | | $ | 1,266,252 | |
| MGM Grand Las Vegas | | | 239,153 | | | | 256,925 | | | | 976,261 | | | | 1,114,824 | |
| Mandalay Bay | | | 171,418 | | | | 192,387 | | | | 725,129 | | | | 900,306 | |
| The Mirage | | | 140,780 | | | | 149,508 | | | | 624,132 | | | | 720,682 | |
| Luxor | | | 81,684 | | | | 100,435 | | | | 344,722 | | | | 405,277 | |
| Treasure Island (1) | | | — | | | | 87,747 | | | | 66,329 | | | | 376,000 | |
| New York-New York | | | 58,446 | | | | 66,449 | | | | 250,055 | | | | 300,861 | |
| Excalibur | | | 61,132 | | | | 66,606 | | | | 265,076 | | | | 319,609 | |
| Monte Carlo | | | 53,154 | | | | 56,965 | | | | 206,377 | | | | 235,933 | |
| Circus Circus Las Vegas | | | 44,617 | | | | 50,920 | | | | 200,385 | | | | 249,339 | |
| MGM Grand Detroit | | | 124,751 | | | | 132,196 | | | | 514,116 | | | | 562,263 | |
| Beau Rivage | | | 78,003 | | | | 85,567 | | | | 329,613 | | | | 375,588 | |
| Gold Strike Tunica | | | 35,051 | | | | 36,570 | | | | 153,108 | | | | 155,529 | |
| Management operations | | | 66,301 | | | | 19,510 | | | | 135,498 | | | | 78,237 | |
| Other operations | | | 28,214 | | | | 31,062 | | | | 123,059 | | | | 148,067 | |
| | | | | | | | | | | | | |
| | | $ | 1,452,416 | | | $ | 1,624,512 | | | $ | 5,978,589 | | | $ | 7,208,767 | |
| | | | | | | | | | | | | |
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA — ADJUSTED PROPERTY EBITDA
(In thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Bellagio | | $ | 68,336 | | | $ | 77,183 | | | $ | 274,672 | | | $ | 392,300 | |
| MGM Grand Las Vegas | | | 46,329 | | | | 46,208 | | | | 214,369 | | | | 270,792 | |
| Mandalay Bay | | | 31,805 | | | | 44,053 | | | | 159,864 | | | | 248,495 | |
| The Mirage | | | 24,507 | | | | 19,549 | | | | 141,118 | | | | 168,351 | |
| Luxor | | | 16,370 | | | | 28,635 | | | | 76,167 | | | | 132,173 | |
| Treasure Island (1) | | | — | | | | 20,693 | | | | 12,729 | | | | 103,011 | |
| New York-New York | | | 16,968 | | | | 20,260 | | | | 78,555 | | | | 111,459 | |
| Excalibur | | | 14,990 | | | | 19,676 | | | | 72,130 | | | | 110,149 | |
| Monte Carlo | | | 4,422 | | | | 9,443 | | | | 36,594 | | | | 64,624 | |
| Circus Circus Las Vegas | | | 2,261 | | | | 7,527 | | | | 27,122 | | | | 56,151 | |
| MGM Grand Detroit | | | 31,112 | | | | 30,580 | | | | 138,010 | | | | 137,508 | |
| Beau Rivage | | | 12,517 | | | | 14,651 | | | | 65,422 | | | | 71,023 | |
| Gold Strike Tunica | | | 8,086 | | | | 5,505 | | | | 45,051 | | | | 31,400 | |
| Management operations | | | 5,064 | | | | 3,079 | | | | 18,322 | | | | 16,894 | |
| Other operations | | | (1,653 | ) | | | (418 | ) | | | 1,759 | | | | 3,595 | |
| Unconsolidated resorts | | | 25,511 | | | | 6,843 | | | | (87,072 | ) | | | 96,655 | |
| | | | | | | | | | | | | |
| | | $ | 306,625 | | | $ | 353,467 | | | $ | 1,274,812 | | | $ | 2,014,580 | |
| | | | | | | | | | | | | |
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| (1) | | Treasure Island was sold in March 2009. |
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MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended December 31, 2009
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Preopening | | | Property | | | Depreciation | | | | |
| | | Operating | | | and start-up | | | transactions, | | | and | | | Adjusted | |
| | | income (loss) | | | expenses | | | net | | | amortization | | | EBITDA | |
| Bellagio | | $ | 41,154 | | | $ | — | | | $ | (34 | ) | | $ | 27,216 | | | $ | 68,336 | |
| MGM Grand Las Vegas | | | 24,356 | | | | — | | | | (51 | ) | | | 22,024 | | | | 46,329 | |
| Mandalay Bay | | | 8,887 | | | | 51 | | | | (3 | ) | | | 22,870 | | | | 31,805 | |
| The Mirage | | | 8,598 | | | | — | | | | — | | | | 15,909 | | | | 24,507 | |
| Luxor | | | 7,227 | | | | — | | | | (78 | ) | | | 9,221 | | | | 16,370 | |
| Treasure Island (1) | | | — | | | | — | | | | — | | | | — | | | | — | |
| New York-New York | | | 9,896 | | | | — | | | | — | | | | 7,072 | | | | 16,968 | |
| Excalibur | | | 8,430 | | | | — | | | | (4 | ) | | | 6,564 | | | | 14,990 | |
| Monte Carlo | | | (2,082 | ) | | | — | | | | (3 | ) | | | 6,507 | | | | 4,422 | |
| Circus Circus Las Vegas | | | (3,398 | ) | | | — | | | | 26 | | | | 5,633 | | | | 2,261 | |
| MGM Grand Detroit | | | 19,525 | | | | — | | | | 1,430 | | | | 10,157 | | | | 31,112 | |
| Beau Rivage | | | 95 | | | | — | | | | — | | | | 12,422 | | | | 12,517 | |
| Gold Strike Tunica | | | 4,374 | | | | — | | | | (209 | ) | | | 3,921 | | | | 8,086 | |
| Management operations | | | 2,586 | | | | — | | | | — | | | | 2,478 | | | | 5,064 | |
| Other operations | | | (3,041 | ) | | | — | | | | (63 | ) | | | 1,451 | | | | (1,653 | ) |
| Unconsolidated resorts | | | 88 | | | | 25,423 | | | | — | | | | — | | | | 25,511 | |
| | | | | | | | | | | | | | | | |
| | | | 126,695 | | | | 25,474 | | | | 1,011 | | | | 153,445 | | | | 306,625 | |
| Stock compensation | | | (9,495 | ) | | | — | | | | — | | | | — | | | | (9,495 | ) |
| Corporate | | | (603,855 | ) | | | — | | | | 548,347 | | | | 13,951 | | | | (41,557 | ) |
| | | | | | | | | | | | | | | | |
| | | $ | (486,655 | ) | | $ | 25,474 | | | $ | 549,358 | | | $ | 167,396 | | | $ | 255,573 | |
| | | | | | | | | | | | | | | | |
Three Months Ended December 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Preopening | | | Property | | | Depreciation | | | | |
| | | Operating | | | and start-up | | | transactions, | | | and | | | Adjusted | |
| | | income (loss) | | | expenses | | | net | | | amortization | | | EBITDA | |
| Bellagio | | $ | 47,380 | | | $ | — | | | $ | (81 | ) | | $ | 29,884 | | | $ | 77,183 | |
| MGM Grand Las Vegas | | | 19,181 | | | | — | | | | 2,792 | | | | 24,235 | | | | 46,208 | |
| Mandalay Bay | | | 18,694 | | | | 11 | | | | 167 | | | | 25,181 | | | | 44,053 | |
| The Mirage | | | (1,115 | ) | | | — | | | | 4,272 | | | | 16,392 | | | | 19,549 | |
| Luxor | | | 18,012 | | | | 339 | | | | 249 | | | | 10,035 | | | | 28,635 | |
| Treasure Island (1) | | | 12,984 | | | | — | | | | 341 | | | | 7,368 | | | | 20,693 | |
| New York-New York | | | 10,353 | | | | 74 | | | | 2,224 | | | | 7,609 | | | | 20,260 | |
| Excalibur | | | 12,149 | | | | — | | | | 960 | | | | 6,567 | | | | 19,676 | |
| Monte Carlo | | | 2,104 | | | | — | | | | 1,469 | | | | 5,870 | | | | 9,443 | |
| Circus Circus Las Vegas | | | 1,717 | | | | — | | | | (40 | ) | | | 5,850 | | | | 7,527 | |
| MGM Grand Detroit | | | 13,796 | | | | — | | | | 6,020 | | | | 10,764 | | | | 30,580 | |
| Beau Rivage | | | 2,548 | | | | — | | | | — | | | | 12,103 | | | | 14,651 | |
| Gold Strike Tunica | | | (99 | ) | | | — | | | | 2,329 | | | | 3,275 | | | | 5,505 | |
| Management operations | | | (594 | ) | | | — | | | | — | | | | 3,673 | | | | 3,079 | |
| Other operations | | | (2,549 | ) | | | — | | | | 511 | | | | 1,620 | | | | (418 | ) |
| Unconsolidated resorts | | | 1,838 | | | | 5,005 | | | | — | | | | — | | | | 6,843 | |
| | | | | | | | | | | | | | | | |
| | | | 156,399 | | | | 5,429 | | | | 21,213 | | | | 170,426 | | | | 353,467 | |
| Stock compensation | | | (6,612 | ) | | | — | | | | — | | | | — | | | | (6,612 | ) |
| Corporate | | | (1,196,019 | ) | | | 4 | | | | 1,154,552 | | | | 16,151 | | | | (25,312 | ) |
| | | | | | | | | | | | | | | | |
| | | $ | (1,046,232 | ) | | $ | 5,433 | | | $ | 1,175,765 | | | $ | 186,577 | | | $ | 321,543 | |
| | | | | | | | | | | | | | | | |
| | |
| (1) | | Treasure Island was sold in March 2009. |
8
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA
(In thousands)
(Unaudited)
Twelve Months Ended December 31, 2009
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Preopening and | | | Property | | | Depreciation | | | | |
| | | Operating | | | start-up | | | transactions, | | | and | | | Adjusted | |
| | | income (loss) | | | expenses | | | net | | | amortization | | | EBITDA | |
| Bellagio | | $ | 157,079 | | | $ | — | | | $ | 2,326 | | | $ | 115,267 | | | $ | 274,672 | |
| MGM Grand Las Vegas | | | 123,378 | | | | — | | | | 30 | | | | 90,961 | | | | 214,369 | |
| Mandalay Bay | | | 65,841 | | | | 948 | | | | (73 | ) | | | 93,148 | | | | 159,864 | |
| The Mirage | | | 74,756 | | | | — | | | | 313 | | | | 66,049 | | | | 141,118 | |
| Luxor | | | 37,527 | | | | (759 | ) | | | 181 | | | | 39,218 | | | | 76,167 | |
| Treasure Island (1) | | | 12,730 | | | | — | | | | (1 | ) | | | — | | | | 12,729 | |
| New York-New York | | | 45,445 | | | | — | | | | 1,631 | | | | 31,479 | | | | 78,555 | |
| Excalibur | | | 47,973 | | | | — | | | | (16 | ) | | | 24,173 | | | | 72,130 | |
| Monte Carlo | | | 16,439 | | | | — | | | | (4,740 | ) | | | 24,895 | | | | 36,594 | |
| Circus Circus Las Vegas | | | 4,015 | | | | — | | | | (9 | ) | | | 23,116 | | | | 27,122 | |
| MGM Grand Detroit | | | 90,183 | | | | — | | | | 7,336 | | | | 40,491 | | | | 138,010 | |
| Beau Rivage | | | 16,234 | | | | — | | | | 157 | | | | 49,031 | | | | 65,422 | |
| Gold Strike Tunica | | | 29,010 | | | | — | | | | (209 | ) | | | 16,250 | | | | 45,051 | |
| Management operations | | | 7,285 | | | | — | | | | 2,473 | | | | 8,564 | | | | 18,322 | |
| Other operations | | | (4,172 | ) | | | — | | | | (57 | ) | | | 5,988 | | | | 1,759 | |
| Unconsolidated resorts | | | (139,896 | ) | | | 52,824 | | | | — | | | | — | | | | (87,072 | ) |
| | | | | | | | | | | | | | | | |
| | | | 583,827 | | | | 53,013 | | | | 9,342 | | | | 628,630 | | | | 1,274,812 | |
| Stock compensation | | | (36,571 | ) | | | — | | | | — | | | | — | | | | (36,571 | ) |
| Corporate | | | (1,511,132 | ) | | | — | | | | 1,319,347 | | | | 60,643 | | | | (131,142 | ) |
| | | | | | | | | | | | | | | | |
| | | $ | (963,876 | ) | | $ | 53,013 | | | $ | 1,328,689 | | | $ | 689,273 | | | $ | 1,107,099 | |
| | | | | | | | | | | | | | | | |
Twelve Months Ended December 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Preopening and | | | Property | | | Depreciation | | | | |
| | | Operating | | | start-up | | | transactions, | | | and | | | Adjusted | |
| | | income (loss) | | | expenses | | | net | | | amortization | | | EBITDA | |
| Bellagio | | $ | 257,415 | | | $ | — | | | $ | 1,130 | | | $ | 133,755 | | | $ | 392,300 | |
| MGM Grand Las Vegas | | | 170,049 | | | | 443 | | | | 2,639 | | | | 97,661 | | | | 270,792 | |
| Mandalay Bay | | | 145,005 | | | | 11 | | | | 1,554 | | | | 101,925 | | | | 248,495 | |
| The Mirage | | | 99,061 | | | | 242 | | | | 6,080 | | | | 62,968 | | | | 168,351 | |
| Luxor | | | 84,948 | | | | 1,116 | | | | 2,999 | | | | 43,110 | | | | 132,173 | |
| Treasure Island (1) | | | 63,454 | | | | — | | | | 1,828 | | | | 37,729 | | | | 103,011 | |
| New York-New York | | | 74,276 | | | | 726 | | | | 3,627 | | | | 32,830 | | | | 111,459 | |
| Excalibur | | | 83,953 | | | | — | | | | 961 | | | | 25,235 | | | | 110,149 | |
| Monte Carlo | | | 46,788 | | | | — | | | | (7,544 | ) | | | 25,380 | | | | 64,624 | |
| Circus Circus Las Vegas | | | 33,745 | | | | — | | | | 5 | | | | 22,401 | | | | 56,151 | |
| MGM Grand Detroit | | | 77,671 | | | | 135 | | | | 6,028 | | | | 53,674 | | | | 137,508 | |
| Beau Rivage | | | 22,797 | | | | — | | | | 76 | | | | 48,150 | | | | 71,023 | |
| Gold Strike Tunica | | | 15,093 | | | | — | | | | 2,326 | | | | 13,981 | | | | 31,400 | |
| Management operations | | | 6,609 | | | | — | | | | — | | | | 10,285 | | | | 16,894 | |
| Other operations | | | (5,367 | ) | | | — | | | | 2,718 | | | | 6,244 | | | | 3,595 | |
| Unconsolidated resorts | | | 76,374 | | | | 20,281 | | | | — | | | | — | | | | 96,655 | |
| | | | | | | | | | | | | | | | |
| | | | 1,251,871 | | | | 22,954 | | | | 24,427 | | | | 715,328 | | | | 2,014,580 | |
| Stock compensation | | | (36,277 | ) | | | — | | | | — | | | | — | | | | (36,277 | ) |
| Corporate | | | (1,345,197 | ) | | | 105 | | | | 1,186,322 | | | | 62,908 | | | | (95,862 | ) |
| | | | | | | | | | | | | | | | |
| | | $ | (129,603 | ) | | $ | 23,059 | | | $ | 1,210,749 | | | $ | 778,236 | | | $ | 1,882,441 | |
| | | | | | | | | | | | | | | | |
(1) Treasure Island was sold in March 2009.
9
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(In thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | | | | | |
| Adjusted EBITDA | | $ | 255,573 | | | $ | 321,543 | | | $ | 1,107,099 | | | $ | 1,882,441 | |
| Preopening and start-up expenses | | | (25,474 | ) | | | (5,433 | ) | | | (53,013 | ) | | | (23,059 | ) |
| Property transactions, net | | | (549,358 | ) | | | (1,175,765 | ) | | | (1,328,689 | ) | | | (1,210,749 | ) |
| Depreciation and amortization | | | (167,396 | ) | | | (186,577 | ) | | | (689,273 | ) | | | (778,236 | ) |
| | | | | | | | | | | | | |
| Operating loss | | | (486,655 | ) | | | (1,046,232 | ) | | | (963,876 | ) | | | (129,603 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Non-operating income (expense): | | | | | | | | | | | | | | | | |
| Interest expense, net | | | (220,609 | ) | | | (169,442 | ) | | | (775,431 | ) | | | (609,286 | ) |
| Other | | | (12,070 | ) | | | 82,785 | | | | (273,286 | ) | | | 69,901 | |
| | | | | | | | | | | | | |
| | | | (232,679 | ) | | | (86,657 | ) | | | (1,048,717 | ) | | | (539,385 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Loss before income taxes | | | (719,334 | ) | | | (1,132,889 | ) | | | (2,012,593 | ) | | | (668,988 | ) |
| Benefit (provision) for income taxes | | | 285,416 | | | | (15,122 | ) | | | 720,911 | | | | (186,298 | ) |
| | | | | | | | | | | | | |
| Net loss | | $ | (433,918 | ) | | $ | (1,148,011 | ) | | $ | (1,291,682 | ) | | $ | (855,286 | ) |
| | | | | | | | | | | | | |
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA — HOTEL STATISTICS — LAS VEGAS STRIP
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Twelve Months Ended |
| | | December 31, | | December 31, | | December 31, | | December 31, |
| | | 2009 | | 2008 | | 2009 | | 2008 |
| Bellagio | | | | | | | | | | | | | | | | |
| Occupancy % | | | 91.9 | % | | | 93.0 | % | | | 94.2 | % | | | 95.0 | % |
| Average daily rate (ADR) | | $ | 206 | | | $ | 243 | | | $ | 204 | | | $ | 261 | |
| Revenue per available room (REVPAR) | | $ | 189 | | | $ | 226 | | | $ | 192 | | | $ | 248 | |
| |
| MGM Grand Las Vegas | | | | | | | | | | | | | | | | |
| Occupancy % | | | 89.8 | % | | | 89.4 | % | | | 94.2 | % | | | 95.5 | % |
| ADR | | $ | 112 | | | $ | 131 | | | $ | 113 | | | $ | 147 | |
| REVPAR | | $ | 101 | | | $ | 117 | | | $ | 106 | | | $ | 141 | |
| |
| Mandalay Bay | | | | | | | | | | | | | | | | |
| Occupancy % | | | 85.5 | % | | | 79.2 | % | | | 89.1 | % | | | 90.2 | % |
| ADR | | $ | 153 | | | $ | 199 | | | $ | 159 | | | $ | 214 | |
| REVPAR | | $ | 131 | | | $ | 158 | | | $ | 142 | | | $ | 193 | |
| |
| The Mirage | | | | | | | | | | | | | | | | |
| Occupancy % | | | 89.5 | % | | | 91.9 | % | | | 93.6 | % | | | 95.8 | % |
| ADR | | $ | 125 | | | $ | 145 | | | $ | 126 | | | $ | 163 | |
| REVPAR | | $ | 112 | | | $ | 133 | | | $ | 118 | | | $ | 156 | |
| |
| Luxor | | | | | | | | | | | | | | | | |
| Occupancy % | | | 84.3 | % | | | 85.4 | % | | | 89.8 | % | | | 94.6 | % |
| ADR | | $ | 80 | | | $ | 103 | | | $ | 80 | | | $ | 116 | |
| REVPAR | | $ | 67 | | | $ | 88 | | | $ | 72 | | | $ | 110 | |
| |
| New York-New York | | | | | | | | | | | | | | | | |
| Occupancy % | | | 90.8 | % | | | 91.6 | % | | | 93.2 | % | | | 95.9 | % |
| ADR | | $ | 98 | | | $ | 114 | | | $ | 97 | | | $ | 128 | |
| REVPAR | | $ | 89 | | | $ | 104 | | | $ | 90 | | | $ | 123 | |
| |
| Excalibur | | | | | | | | | | | | | | | | |
| Occupancy % | | | 81.2 | % | | | 76.9 | % | | | 87.4 | % | | | 87.9 | % |
| ADR | | $ | 61 | | | $ | 80 | | | $ | 61 | | | $ | 90 | |
| REVPAR | | $ | 50 | | | $ | 61 | | | $ | 54 | | | $ | 79 | |
| |
| Monte Carlo | | | | | | | | | | | | | | | | |
| Occupancy % | | | 83.5 | % | | | 89.1 | % | | | 90.0 | % | | | 93.9 | % |
| ADR | | $ | 87 | | | $ | 96 | | | $ | 85 | | | $ | 109 | |
| REVPAR | | $ | 73 | | | $ | 85 | | | $ | 76 | | | $ | 103 | |
| |
| Circus Circus Las Vegas | | | | | | | | | | | | | | | | |
| Occupancy % | | | 76.3 | % | | | 71.6 | % | | | 83.2 | % | | | 84.0 | % |
| ADR | | $ | 44 | | | $ | 59 | | | $ | 44 | | | $ | 64 | |
| REVPAR | | $ | 34 | | | $ | 42 | | | $ | 37 | | | $ | 53 | |
10
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
| | | | | | | | | |
| | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | |
ASSETS
|
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 2,056,207 | | | $ | 295,644 | |
| Accounts receivable, net | | | 368,474 | | | | 303,416 | |
| Inventories | | | 101,809 | | | | 111,505 | |
| Income tax receivable | | | 384,555 | | | | 64,685 | |
| Deferred income taxes | | | 38,487 | | | | 63,153 | |
| Prepaid expenses and other | | | 103,969 | | | | 155,652 | |
| Assets held for sale | | | — | | | | 538,975 | |
| | | | | | | |
| Total current assets | | | 3,053,501 | | | | 1,533,030 | |
| | | | | | | |
| | | | | | | | | |
| Property and equipment, net | | | 15,069,952 | | | | 16,289,154 | |
| | | | | | | | | |
| Other assets: | | | | | | | | |
| Investments in and advances to unconsolidated affiliates | | | 3,611,799 | | | | 4,642,865 | |
| Goodwill | | | 86,353 | | | | 86,353 | |
| Other intangible assets, net | | | 344,253 | | | | 347,209 | |
| Deposits and other assets, net | | | 352,352 | | | | 376,105 | |
| | | | | | | |
| Total other assets | | | 4,394,757 | | | | 5,452,532 | |
| | | | | | | |
| | | $ | 22,518,210 | | | $ | 23,274,716 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 155,796 | | | $ | 142,693 | |
| Construction payable | | | 17,923 | | | | 45,103 | |
| Current portion of long-term debt | | | 1,079,824 | | | | 1,047,614 | |
| Accrued interest on long-term debt | | | 206,357 | | | | 187,597 | |
| Other accrued liabilities | | | 923,701 | | | | 1,549,296 | |
| Liabilities related to assets held for sale | | | — | | | | 30,273 | |
| | | | | | | |
| Total current liabilities | | | 2,383,601 | | | | 3,002,576 | |
| | | | | | | |
| | | | | | | | | |
| Deferred income taxes | | | 3,031,303 | | | | 3,441,198 | |
| Long-term debt | | | 12,976,037 | | | | 12,416,552 | |
| Other long-term obligations | | | 256,837 | | | | 440,029 | |
| Stockholders’ equity: | | | | | | | | |
| Common stock, $.01 par value: authorized 600,000,000 shares, issued 441,222,251 and 369,283,995 shares and outstanding 441,222,251 and 276,506,968 shares | | | 4,412 | | | | 3,693 | |
| Capital in excess of par value | | | 3,497,425 | | | | 4,018,410 | |
| Treasury stock, at cost: 0 and 92,777,027 shares | | | — | | | | (3,355,963 | ) |
| Retained earnings | | | 370,532 | | | | 3,365,122 | |
| Accumulated other comprehensive loss | | | (1,937 | ) | | | (56,901 | ) |
| | | | | | | |
| Total stockholders’ equity | | | 3,870,432 | | | | 3,974,361 | |
| | | | | | | |
| | | $ | 22,518,210 | | | $ | 23,274,716 | |
| | | | | | | |
11
