MGM Resorts International (MGM) 8-K MGM Mirage Reports Record First Quarter Results

Exhibit 99

FOR IMMEDIATE RELEASE

CONTACTS:	Investment Community	Media
	James J. Murren	Alan Feldman
	President, Chief Financial Officer	Senior Vice President
	and Treasurer	Public Affairs
	(702) 693-8877	(702) 891-7147

MGM MIRAGE REPORTS RECORD FIRST QUARTER RESULTS

Las Vegas, Nevada, April 19, 2005— MGM MIRAGE (NYSE: MGG) today reported its first quarter 2005 financial results. Adjusted earnings from continuing operations per diluted share (“Adjusted EPS”) increased to an all-time record $0.87 in the first quarter of 2005, eclipsing the Company’s previous best of $0.74 earned in the second quarter of 2004; the Company earned $0.70 in the 2004 first quarter. The strong earnings resulted from several positive factors, including strong gaming volumes and continued strength in hotel and other non-gaming results, driven by a strong convention calendar and increased room rates as well as new amenities at several resorts.

REVPAR (revenue per available room) at the Company’s Las Vegas Strip resorts was $167, an impressive year-over-year increase of 15%, on top of last year’s 11% first quarter increase over 2003. Table games volume, including baccarat, increased 9% in the quarter and slot revenue increased 13%.

Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, property transactions, and loss on early retirement of debt.¹ On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations increased to $0.75 in the 2005 quarter from $0.66 in the first quarter of 2004. GAAP diluted EPS, including the results of discontinued operations, was $0.75 in the 2005 period versus $0.72 in 2004.

“The excellent operating results of the first quarter continue to demonstrate the power of our focused strategy, and we continue to build momentum leading up to the combination with Mandalay Resort Group,” said Terry Lanni, MGM MIRAGE’s Chairman and CEO. “Our ongoing investments in our premium portfolio of resorts will allow us to further raise the bar when it comes to generating superior results among gaming companies, and the addition of Mandalay’s properties and people will further solidify our competitive position.”

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First Quarter 2005 Company Highlights

•   Generated net revenues of $1.2 billion, up 13% from 2004;

•   Produced property-level EBITDA² of $437 million, up 18% over prior year and an all-time Company record for any quarter; operating income of $293 million was up 15% over 2004;

•   The addition of the Spa Tower atBellagiopropelled that resort to an all-time record quarterly profit;

•   MGM Grand Las Vegasreported record results on several fronts as it successfully continued its repositioning of the resort, debuting the West Wing, newly renovated rooms offering modern style and amenities;

•   Invested $105 million of capital in the Company’s resorts, with new amenities including a poker room, a relocated race and sports book and a lounge – Centrifuge – atMGM Grand Las Vegasand the world-famous Carnegie Deli atThe Mirage;

•   Reduced debt by $124 million;

•   Announced the sale of Mandalay’s interest in MotorCity Casino in Detroit;

•   Announced a 2-for-1 stock split, subject to stockholder approval of an increase in the number of authorized shares at the Company’s annual meeting of stockholders on May 3, 2005.

Detailed Financial Results

The following table shows key financial results on a Company-wide basis for the first quarter:

	Three months ended
	March 31,
	2005		2004
	(In millions)
Casino revenue	$	614.8	$	558.7
Non-casino revenue, net		589.3		507.7
Net revenue		1,204.1		1,066.4
Operating income		293.2		254.7
Income from continuing operations		111.1		97.1
Discontinued operations, net		—		8.7
Net income		111.1		105.8
Property-level EBITDA2	$	437.1	$	370.5
EBITDA (after corporate expense)2		410.3		354.8
Adjusted Earnings		128.1		102.4

Except where noted, all references in this release to operating results, including statistical information, exclude the results of Golden Nugget Las Vegas, Golden Nugget Laughlin and MGM Grand Australia for all periods presented. The results of these operations are classified as discontinued operations.

Net revenue in the first quarter increased 13% from prior year. Results were strong in all operating departments. A solid convention calendar and increased visitation to Las Vegas yielded significant gains in room rates and the Company experienced excellent levels of customer play during the key Super Bowl and Chinese New Year periods.

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Casino revenue increased 10% in the 2005 quarter. Table games volume, including baccarat, was up 9% from the prior year’s quarter, with a 39% increase in baccarat volume, continuing the trend from the latter half of 2004. Table games hold percentages were at the mid-point of the Company’s normal range for both the 2005 and 2004 first quarters. Company-wide slot revenue in the quarter was up 13% from 2004, on top of a 10% increase in 2004 over 2003. Bellagio’s slot revenue increased over 30% due to the additional customers from the Spa Tower expansion, and other strong performances were turned in atBeau Rivage,MGM Grand DetroitandNew York-New York.

Non-casino revenue was up 16% in the quarter. Hotel revenue was up 17%, with occupancy of 92% in the first quarter of 2005, versus 90% in 2004, and a higher average daily room rate (“ADR”) of $155 versus $138 in 2004. This is the highest quarterly ADR in the Company’s history. As a result, REVPAR was $143, up 15% over REVPAR of $124 in 2004. We had significantly more rooms available with theBellagioexpansion and a full complement of rooms available atNew York-New York, which was remodeling its rooms in the prior year, partially offset by room remodel activity atMGM Grand Las Vegas.

Food and beverage revenue increased 12%, as the addition of several restaurants and lounges since the first quarter of 2004 as well as overall strong customer volumes generated increased utilization at our restaurants, lounges and nightclubs. The addition of the Spa Tower led to an 18% increase in food and beverage revenue atBellagio. Entertainment revenues were up significantly, 31%, over the prior year quarter as a result of the contribution from KÀ.

EBITDA increased 16% for the quarter, reflecting the operating trends described above and the benefit of the results fromBorgata,which led to a 45% increase in income from unconsolidated affiliates. The Company’s property-level EBITDA margin was 36% in 2005 versus 35% in the 2004 first quarter, a record margin for the Company. Operating income increased 15% over prior year.

First quarter 2005 Adjusted Earnings increased by 25% compared to 2004 due primarily to the higher operating income, offset by higher interest expense from fixed rate borrowings. Non-operating income (expense) includes a $19.5 million ($0.09 per share, net of tax) loss on early retirement of debt, which is excluded from Adjusted Earnings, and $6.7 million ($0.03 per share, net of tax) of income from the favorable resolution of a pre-acquisition contingency related to the Mirage Resorts acquisition, which is included in Adjusted Earnings. For the first quarter of 2005, Adjusted Earnings excluded $26.2 million ($17.0 million, net of tax) of items as follows:

•   Net property transactions of $4.2 million ($2.7 million, net of tax), including $3.1 million of demolition costs, primarily atMGM Grand Las Vegasin connection with room remodel activity and atThe Miragein connection with the showroom remodel, and other net losses on disposal of assets;

•   Preopening and start-up expenses of $2.5 million ($1.6 million, net of tax), related to the Spa Tower, Residences at MGM Grand and other projects atMGM Grand Las Vegas, such as the new poker room and new restaurants;

•   Loss on early retirement of debt of $19.5 million ($12.7 million, net of tax) related to the early redemption of the Company’s 6.875% Senior Notes due February 2008, classified within “Other, net”.

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In the first quarter of 2004, items excluded in the determination of Adjusted Earnings included minor amounts of preopening and start-up expenses and restructuring costs, property transactions of $1.7 million ($1.1 million, net of tax) related primarily to theBellagioexpansion and room remodel projects, and a loss on early retirement of debt of $5.5 million ($3.6 million, net of tax) related to the repurchase and retirement of the Company’s publicly-traded debt securities.

Income from discontinued operations includes the results ofGolden Nugget Las Vegas,Golden Nugget LaughlinandMGM Grand Australia. Pretax income from discontinued operations was $14 million in the 2004 first quarter which included the $8 million gain on the sale of the Golden Nugget resorts.

Financial Position

The Company generated significant operating cash flow in the first quarter as a result of its positive operating results. The Company utilized available cash flow in part to repay $124 million of net debt and invest $105 million in capital projects.

First quarter capital investments included the costs for the completion of theBellagioexpansion, construction of the new theatre for Cirque du Soleil atThe Mirage, the new golf course atBeau Rivage, room remodel and casino expansion activity atMGM Grand Las Vegasand other routine capital expenditures.

“We expect that tremendous cash flow generated by our resorts, along with the addition of Mandalay Resort Group, will fuel significant debt reduction through the remainder of 2005,” said Jim Murren, MGM MIRAGE President, CFO and Treasurer. “We are also planning on continuing our targeted capital investments, with plans for several new restaurants and other amenities atThe MirageandMGM Grand Las Vegas, and we are working at a rapid pace on the design phase ofProject CityCenter.”

Outlook

The Company expects same-store REVPAR growth of approximately 10% for the second quarter, after an 11% increase in the prior year. “Our trends remain vibrant and strong room pricing should once again lead to a year-over-year increase in EBITDA,” Mr. Murren said. “We believe our Adjusted Earnings, on a same store basis, will be in the range of $0.70 to $0.75 per share, excluding any impact from the Mandalay merger and before adjusting for our proposed 2-for-1 stock split.”

MGM MIRAGE will hold a conference call to discuss its earnings results and outlook for the second quarter of 2005 at 11:00 a.m. Eastern Daylight Time today. The call can be accessed live atwww.companyboardroom.com orwww.mgmmirage.com, or by calling 1-800-526-8531 (domestic) or 1-706-634-6528 (international). A complete replay of the conference call will be made available atwww.mgmmirage.com.

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¹       Adjusted Earnings (and Adjusted EPS) is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of performance, and 2) a principal basis for valuation of gaming companies, as this measure is considered by many to be a better measure on which to base expectations of future results than income from continuing operations computed in accordance with generally accepted accounting principles (“GAAP”). Reconciliations of GAAP income from continuing operations and EPS to Adjusted Earnings and EPS are included in the financial schedules accompanying this release.

²       EBITDA is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, restructuring, preopening and start-up expenses, and property transactions, net. EBITDA is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. Management uses property-level EBITDA (EBITDA before corporate expense) as the primary measure of the Company’s operating resorts’ performance, including the evaluation of operating personnel. 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 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 EBITDA. Also, other gaming companies that report EBITDA information may calculate EBITDA in a different manner than the Company. Reconciliations of operating income to EBITDA are included in the financial schedules accompanying this release.

* * *

MGM MIRAGE (NYSE:MGG), headquartered in Las Vegas, Nevada, is one of the world’s leading and most respected hotel and gaming companies. The Company owns and operates 11 casino resorts located in Nevada, Mississippi and Michigan, and has investments in three other casino resorts in Nevada, New Jersey and the United Kingdom. For more information about MGM MIRAGE, please visit the company’s website 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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MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended
	March 31,			March 31,
	2005			2004
Revenues:
Casino	$	614,813		$	558,723
Rooms		274,054			234,961
Food and beverage		243,478			217,764
Entertainment		88,147			67,242
Retail		44,879			45,098
Other		60,835			51,086
		1,326,206			1,174,874
Less: Promotional allowances		(122,071	)		(108,438	)
		1,204,135			1,066,436
Expenses:
Casino		310,789			283,920
Rooms		69,479			62,211
Food and beverage		134,311			119,620
Entertainment		60,065			46,633
Retail		29,584			28,546
Other		39,465			32,889
General and administrative		158,364			146,298
Corporate expense		26,791			15,738
Preopening and start-up expenses		2,524			381
Restructuring costs (credit)		(66	)		414
Property transactions, net		4,203			1,739
Depreciation and amortization		110,495			97,553
		946,004			835,942
Income from unconsolidated affiliates		35,045			24,172
Operating income		293,176			254,666
Non-operating income (expense):
Interest income		1,697			903
Interest expense, net		(101,468	)		(89,810	)
Non-operating items from unconsolidated affiliates		(2,787	)		(6,205	)
Other, net		(15,691	)		(7,154	)
		(118,249	)		(102,266	)
Income from continuing operations before income taxes		174,927			152,400
Provision for income taxes		(63,848	)		(55,260	)
Income from continuing operations		111,079			97,140
Discontinued operations
Income from discontinued operations, including gain on disposal of $8,186 (three months 2004)		—			13,869
Provision for income taxes		—			(5,161	)
		—			8,708
Net income	$	111,079		$	105,848
Per share of common stock:
Basic:
Income from continuing operations	$	0.79		$	0.68
Discontinued operations		—			0.06
Net income per share	$	0.79		$	0.74
Weighted average shares outstanding		141,258			142,115
Diluted:
Income from continuing operations	$	0.75		$	0.66
Discontinued operations		—			0.06
Net income per share	$	0.75		$	0.72
Weighted average shares outstanding		147,323			146,847

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MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS
AND EPS TO ADJUSTED EARNINGS AND EPS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended
	March 31,			March 31,
	2005			2004
Income from continuing operations	$	111,079		$	97,140
Preopening and start-up expenses, net		1,641			248
Restructuring costs (credit), net		(43	)		269
Property transactions, net		2,732			1,130
Loss on debt retirements, net		12,675			3,593
Adjusted earnings	$	128,084		$	102,380
Per diluted share of common stock:
Income from continuing operations	$	0.75		$	0.66
Preopening and start-up expenses, net		0.01			—
Restructuring costs (credit), net		—			—
Property transactions, net		0.02			0.01
Loss on debt retirements, net		0.09			0.03
Adjusted EPS	$	0.87		$	0.70
Weighted average diluted shares outstanding		147,323			146,847

MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)

	Three Months Ended
	March 31,			March 31,
	2005			2004
EBITDA	$	410,332		$	354,753
Preopening and start-up expenses		(2,524	)		(381	)
Restructuring costs (credit)		66			(414	)
Property transactions, net		(4,203	)		(1,739	)
Depreciation and amortization		(110,495	)		(97,553	)
Operating income		293,176			254,666
Non-operating income (expense):
Interest expense, net		(101,468	)		(89,810	)
Other		(16,781	)		(12,456	)
		(118,249	)		(102,266	)
Income from continuing operations before income taxes		174,927			152,400
Provision for income taxes		(63,848	)		(55,260	)
Income from continuing operations	$	111,079		$	97,140

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MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA — NET REVENUES BY RESORT
(In thousands)
(Unaudited)

	Three Months Ended
	March 31,		March 31,
	2005		2004
Bellagio	$	331,861	$	278,634
MGM Grand Las Vegas		254,242		223,020
The Mirage		160,912		139,054
Treasure Island		100,337		99,796
New York-New York		91,148		82,793
MGM Grand Detroit		113,700		103,917
Beau Rivage		79,476		72,986
Other operations		72,459		66,236
	$	1,204,135	$	1,066,436

MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA — EBITDA BY RESORT
(In thousands)
(Unaudited)

	Three Months Ended
	March 31,		March 31,
	2005		2004
Bellagio	$	118,019	$	99,019
MGM Grand Las Vegas		88,317		75,829
The Mirage		54,977		40,128
Treasure Island		30,331		31,303
New York-New York		38,554		32,124
MGM Grand Detroit		38,882		38,562
Beau Rivage		20,701		16,789
Other operations		12,297		12,565
Income from unconsolidated affiliates		35,045		24,172
	$	437,123	$	370,491

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MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO EBITDA BY RESORT
(In thousands)
(Unaudited)

Three Months Ended March 31, 2005

				Depreciation		Preopening					Property
	Operating			and		and start-up		Restructuring			transactions,
	income			amortization		expenses		costs (credit)			net			EBITDA
Bellagio	$	85,175		$	31,443	$	665	$	—		$	736		$	118,019
MGM Grand Las Vegas		60,182			25,196		1,609		—			1,330			88,317
The Mirage		40,673			12,533		62		—			1,709			54,977
Treasure Island		22,332			8,000		—		—			(1	)		30,331
New York-New York		29,945			8,609		—		—			—			38,554
MGM Grand Detroit		31,865			7,015		—		—			2			38,882
Beau Rivage		15,308			5,313		13		—			67			20,701
Other operations		6,041			6,317		—		—			(61	)		12,297
Unconsolidated affiliates		34,976			—		69		—			—			35,045
		326,497			104,426		2,418		—			3,782			437,123
Corporate and other		(33,321	)		6,069		106		(66	)		421			(26,791	)
	$	293,176		$	110,495	$	2,524	$	(66	)	$	4,203		$	410,332

Three Months Ended March 31, 2004

				Depreciation		Preopening					Property
	Operating			and		and start-up			Restructuring		transactions,
	income			amortization		expenses			costs		net			EBITDA
Bellagio	$	77,091		$	20,352	$	—		$	—	$	1,576		$	99,019
MGM Grand Las Vegas		51,977			23,518		338			—		(4	)		75,829
The Mirage		27,411			12,657		—			—		60			40,128
Treasure Island		22,651			8,660		—			—		(8	)		31,303
New York-New York		24,757			7,453		(86	)		—		—			32,124
MGM Grand Detroit		30,699			7,474		—			—		389			38,562
Beau Rivage		11,674			5,304		—			—		(189	)		16,789
Other operations		8,265			4,385		—			—		(85	)		12,565
Unconsolidated affiliates		24,172			—		—			—		—			24,172
		278,697			89,803		252			—		1,739			370,491
Corporate and other		(24,031	)		7,750		129			414		—			(15,738	)
	$	254,666		$	97,553	$	381		$	414	$	1,739		$	354,753

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MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA — HOTEL STATISTICS
(Unaudited)

	Three Months Ended
	March 31,			March 31,
	2005				2004
Bellagio
Occupancy %		96.1	%			95.4	%
Average daily rate (ADR)	$	247			$	255
Revenue per available room (REVPAR)	$	237			$	243
MGM Grand Las Vegas
Occupancy %		95.2	%			92.2	%
Average daily rate (ADR)	$	159			$	139
Revenue per available room (REVPAR)	$	152			$	128
The Mirage
Occupancy %		97.9	%			94.2	%
Average daily rate (ADR)	$	170			$	156
Revenue per available room (REVPAR)	$	167			$	147
Treasure Island
Occupancy %		98.2	%			96.5	%
Average daily rate (ADR)	$	136			$	123
Revenue per available room (REVPAR)	$	134			$	118
New York-New York
Occupancy %		99.2	%			97.5	%
Average daily rate (ADR)	$	140			$	119
Revenue per available room (REVPAR)	$	139			$	116
Beau Rivage
Occupancy %		89.2	%			86.1	%
Average daily rate (ADR)	$	99			$	91
Revenue per available room (REVPAR)	$	88			$	78
Other operations
Occupancy %		70.3	%			69.2	%
Average daily rate (ADR)	$	50			$	43
Revenue per available room (REVPAR)	$	35			$	30

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MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

	March 31,			December 31,
	2005			2004
ASSETS
Current assets:
Cash and cash equivalents	$	395,746		$	435,128
Accounts receivable, net		218,360			204,151
Inventories		70,553			70,333
Deferred income taxes		39,670			28,928
Prepaid expenses and other		85,299			81,662
Total current assets		809,628			820,202
Property and equipment, net		8,909,721			8,914,142
Other assets:
Investments in unconsolidated affiliates		856,241			842,640
Goodwill and other intangible assets, net		232,902			233,335
Deposits and other assets, net		322,806			304,710
Total other assets		1,411,949			1,380,685
	$	11,131,298		$	11,115,029
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	123,342		$	198,050
Income taxes payable		15,762			4,991
Current portion of long-term debt		14			14
Accrued interest on long-term debt		82,828			116,997
Other accrued liabilities		586,340			607,925
Total current liabilities		808,286			927,977
Deferred income taxes		1,802,297			1,802,008
Long-term debt		5,334,650			5,458,848
Other long-term obligations		163,269			154,492
Stockholders’ equity:
Common stock ($.01 par value: authorized 300,000,000 shares, issued 176,606,918 and 173,573,934 shares and outstanding 143,402,918 and 140,369,934 shares)		1,766			1,736
Capital in excess of par value		2,484,121			2,346,329
Deferred compensation		(8,978	)		(10,878	)
Treasury stock, at cost (33,204,000 and 33,204,000 shares)		(1,110,551	)		(1,110,551	)
Retained earnings		1,657,314			1,546,235
Accumulated other comprehensive loss		(876	)		(1,167	)
Total stockholders’ equity		3,022,796			2,771,704
	$	11,131,298		$	11,115,029

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