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

PRESS RELEASE FOR IMMEDIATE RELEASE

MGM MIRAGE REPORTS FIRST QUARTER RESULTS

Las Vegas, Nevada, May 6, 2008— MGM MIRAGE (NYSE: MGM) today reported its first quarter 2008 financial results. The Company earned $0.40 per diluted share from continuing operations in the first quarter, compared to $0.55 in the prior year. The Company experienced low-single digit percentage decreases in both gaming and non-gaming revenues on a quarter-over-quarter basis, while earnings were also negatively impacted by the temporary closure of Monte Carlo and ramp-up costs related to the recent opening of two major resorts.

Key results for the quarter:

• Net revenue decreased 2% to $1.9 billion;

• Las Vegas Strip REVPAR¹ decreased 4%;

• Casino revenue decreased 3%, mainly as result of lower table games volume at the Company’s Las Vegas Strip resorts;

• Property EBITDA² was $575 million, a 12% decrease from the 2007 quarter;

• Monte Carlo earned Property EBITDA of $14 million compared to $34 million in prior year quarter; the resort was closed from January 25, 2008 through February 14, 2008 due to a rooftop fire, and approximately 20% of its rooms and suites remained out of service at quarter-end;

• Completed a joint tender offer with Dubai World for the purchase of 15 million shares of common stock, of which the Company purchased 8.5 million shares at a total cost of $680 million;

• Repurchased an additional 7 million shares of common stock in the open market for $427 million.

The following table lists certain items which affect the comparability of the current year and prior year quarterly results (earnings per share impact shown, net of tax, per diluted share; negative amounts represent charges to income):

Three months ended March 31,	2008			2007
Profits from The Signature at MGM Grand	$	—		$	0.02
Preopening and start-up expenses		(0.01	)		(0.03	)

“Our business should be evaluated in the context of the state of the economy,” said Terry Lanni, MGM MIRAGE’s Chairman and CEO. “The gaming industry and our company have seen considerable growth within the last several years, and even with near-term weaker economic conditions our resorts are still attracting premium customers and generating tremendous cash flow. We are focused on our fundamental strategies which have consistently produced positive results.”

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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Detailed Discussion of First Quarter Operating Results

Casino revenue decreased 3%, mainly due to a decrease in table games volume of 4%. The overall table games hold percentage was near the high-end of the normal 18% to 22% range in the current quarter and slightly higher than in the 2007 quarter. Slots revenue decreased 1% compared to the prior year. Several of the Company’s Las Vegas Strip resorts reported increases in slots revenue including Bellagio, The Mirage, and Mandalay Bay, which all reported mid-single digit percentage increases. Excluding Monte Carlo, Las Vegas Strip slots revenue was consistent with the prior year. Additionally, slots revenue at MGM Grand Detroit increased 9% as a result of increased capacity in the permanent casino.

Rooms revenue decreased 6%, with a 4% decrease in Las Vegas Strip REVPAR. Average room rates were down 2% at the Company’s Las Vegas Strip resorts. Las Vegas Strip occupancy also decreased, and the Company had approximately 60,000 less rooms available, mainly due to the Monte Carlo fire. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:

Three months ended March 31,	2008			2007
Occupancy %		93	%		96	%
Average Daily Rate (ADR)	$	165		$	169
Revenue per Available Room (REVPAR)	$	155		$	162

Food and beverage revenue decreased 4% as the Company’s restaurants and nightclubs were also impacted by the decrease in occupancy and the slowdown in consumer spending. Entertainment revenues held steady, despite fewer concerts and sporting events, led by strength in the Company’s Cirque du Soleil production shows.

The Monte Carlo was closed from January 25, 2008 through February 14, 2008 due to a rooftop fire and a significant portion of its rooms and suites remained out of service through the end of the quarter. The Company maintains substantial property and business interruption insurance and to date has received a total of $50 million of insurance recoveries, including $22 million received as of the end of the first quarter. The Company recorded recoveries of costs incurred during the period, but will not record recoveries for lost profits until all contingencies with the insurance claim have been resolved. Monte Carlo earned Property EBITDA of $14 million compared to $34 million in the prior year quarter.

MGM Grand Macau, of which the Company owns 50%, was open for its first full quarter of operations and produced Property EBITDA of $43 million and operating income of $23 million. The Company recognized its share of MGM Grand Macau’s results as follows: $10 million of income in the “Income from unconsolidated affiliates” line, and $5 million of expense in the “Non-operating items from unconsolidated affiliates” line for the Company’s share of MGM Grand Macau’s interest expense and other non-operating expenses.

Operating income decreased 23% for the quarter to $341 million as a result of the decrease in revenue described above, and the increased costs of operating the larger MGM Grand Detroit. The Company’s operating margin was 18% and Property EBITDA margin was 31% in the quarter versus 23% and 34%, respectively, in the 2007 quarter. Preopening and start-up expenses were lower during the current quarter and mainly related to the Company’s share of preopening expenses at CityCenter. Additionally, the prior year quarter included $8 million of profit from closings on units of The Signature at MGM Grand Las Vegas.

“We must continue to concentrate on our customers and the celebrated experiences we provide at our resorts,” said Jim Murren, MGM MIRAGE President and Chief Operating Officer. “Additionally, we have always been committed to operating our resorts at maximum efficiency. Over the past several months we have been implementing various new revenue enhancement and cost savings initiatives. We will continue to make substantial long-term investments in our people and resorts.”

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

First quarter capital investments totaled $236 million which included $61 million on room and suite remodel projects, primarily at The Mirage, TI, and Excalibur; expenditures of $10 million for remediation efforts at Monte Carlo; $19 million of trailing payments for MGM Grand Detroit; and $28 million for corporate aircraft. The remaining $118 million was for other routine capital expenditures and various new and upgraded amenities at the Company’s resorts.

During the quarter, the Company repaid $180 million of its senior notes at maturity, and the Company and Dubai World each funded $200 million of construction costs for CityCenter. The Company and Dubai World are currently in discussions with several financial institutions with regard to bank financing for the project.

The Company purchased 8.5 million shares upon completion of its joint tender offer with Dubai World for a total cost of $680 million. Additionally, the Company repurchased 7 million shares in the open market for $427 million during the first quarter, leaving 2.6 million shares available under the Company’s share repurchase authorization. Available borrowing capacity under the Company’s senior credit facility was $1.9 billion as of March 31, 2008.

“Our company continues to generate strong cash flow and has significant debt capacity under our credit facilities,” said Dan D’Arrigo, MGM MIRAGE Executive Vice President and Chief Financial Officer. “This combination provides ample capital flexibility to meet all of our strategic growth initiatives and maintain our strategic focus during a difficult time in the credit markets.”

MGM MIRAGE will hold a conference call to discuss its first quarter earnings results and outlook for the second quarter of 2008 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). Until Tuesday, May 13, 2008, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 42415451. A complete replay of the call will also be made available atwww.mgmmirage.com. Supplemental detailed earnings information will also be available on the Company’s website.

1

REVPAR is hotel Revenue per Available Room.

2

“EBITDA” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization. “Property EBITDA” is EBITDA before corporate expense and stock compensation expense. EBITDA information 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. In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Management uses Property EBITDA 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 consolidated EBITDA to net income and of operating income to Property EBITDA are included in the financial schedules accompanying this release.

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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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MGM MIRAGE (NYSE: MGM), one of the world’s leading and most respected development companies with significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. MGM MIRAGE is developing major casino and non-casino resorts, separately and with partners in Las Vegas, Atlantic City, the People’s Republic of China and Abu Dhabi, U.A.E. 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 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.

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

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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,
	2008			2007
Revenues:
Casino	$	790,464		$	811,939
Rooms		518,741			549,004
Food and beverage		402,392			417,449
Entertainment		134,838			134,248
Retail		64,037			68,250
Other		147,973			122,070
		2,058,445			2,102,960
Less: Promotional allowances		(174,812	)		(173,525	)
		1,883,633			1,929,435
Expenses:
Casino		416,563			411,792
Rooms		136,797			135,185
Food and beverage		236,272			235,704
Entertainment		95,664			97,243
Retail		43,164			43,744
Other		92,564			68,808
General and administrative		320,374			311,674
Corporate expense		32,450			33,955
Preopening and start-up expenses		5,164			14,276
Restructuring costs		329			—
Property transactions, net		2,776			5,019
Depreciation and amortization		194,339			168,277
		1,576,456			1,525,677
Income from unconsolidated affiliates		34,111			41,375
Operating income		341,288			445,133
Non-operating income (expense):
Interest income		3,466			2,657
Interest expense, net		(149,789	)		(184,011	)
Non-operating items from unconsolidated affiliates		(9,891	)		(5,106	)
Other, net		230			(2,728	)
		(155,984	)		(189,188	)
Income from continuing operations before income taxes		185,304			255,945
Provision for income taxes		(66,958	)		(92,935	)
Income from continuing operations		118,346			163,010
Discontinued operations:
Income from discontinued operations		—			7,846
Provision for income taxes		—			(2,683	)
		—			5,163
Net income	$	118,346		$	168,173
Per share of common stock:
Basic:
Income from continuing operations	$	0.41		$	0.57
Discontinued operations		—			0.02
Net income per share	$	0.41		$	0.59
Weighted average shares outstanding		288,943			284,021
Diluted:
Income from continuing operations	$	0.40		$	0.55
Discontinued operations		—			0.02
Net income per share	$	0.40		$	0.57
Weighted average shares outstanding		298,400			295,577

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

	Three Months Ended
	March 31,		March 31,
	2008		2007
Las Vegas Strip	$	1,548,057	$	1,626,343
Other Nevada		36,850		44,432
MGM Grand Detroit		144,780		116,134
Mississippi		134,222		142,526
Other		19,724		—
	$	1,883,633	$	1,929,435

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

	Three Months Ended
	March 31,			March 31,
	2008			2007
Las Vegas Strip	$	479,496		$	548,842
Other Nevada		(685	)		(1,996	)
MGM Grand Detroit		34,412			34,826
Mississippi		27,370			35,403
Other		4,579			—
Unconsolidated resorts		29,367			38,142
	$	574,539		$	655,217

MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
(In thousands)
(Unaudited)

	Three Months Ended March 31, 2008
	Preopening				Property
	and start-up		Restructuring		transactions,
	expenses		costs		net			Total
Las Vegas Strip	$	226	$	329	$	2,789		$	3,344
Other Nevada		—		—		—			—
MGM Grand Detroit		194		—		8			202
Mississippi		—		—		5			5
Unconsolidated resorts		4,744		—		—			4,744
		5,164		329		2,802			8,295
Corporate and other		—		—		(26	)		(26	)
	$	5,164	$	329	$	2,776		$	8,269

	Three Months Ended March 31, 2007
	Preopening				Property
	and start-up		Restructuring		transactions,
	expenses		costs		net			Total
Las Vegas Strip	$	8,472	$	—	$	278		$	8,750
Other Nevada		—		—		4,630			4,630
MGM Grand Detroit		2,379		—		—			2,379
Mississippi		—		—		(2	)		(2	)
Unconsolidated resorts		3,233		—		—			3,233
		14,084		—		4,906			18,990
Corporate and other		192		—		113			305
	$	14,276	$	—	$	5,019		$	19,295

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

	Three Months Ended
	March 31,			March 31,
	2008			2007
EBITDA	$	535,627		$	613,410
Depreciation and amortization		(194,339	)		(168,277	)
Operating income		341,288			445,133
Non-operating income (expense):
Interest expense, net		(149,789	)		(184,011	)
Other		(6,195	)		(5,177	)
		(155,984	)		(189,188	)
Income from continuing operations before income taxes		185,304			255,945
Provision for income taxes		(66,958	)		(92,935	)
Income from continuing operations	$	118,346		$	163,010

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

	Three Months Ended March 31, 2008
				Depreciation and
	Operating income			amortization		EBITDA
Las Vegas Strip	$	333,297		$	146,199	$	479,496
Other Nevada		(2,186	)		1,501		(685	)
MGM Grand Detroit		20,061			14,351		34,412
Mississippi		11,813			15,557		27,370
Other		2,581			1,998		4,579
Unconsolidated resorts		29,367			—		29,367
		394,933			179,606		574,539
Stock compensation							(11,203	)
Corporate and other							(27,709	)
						$	535,627

	Three Months Ended March 31, 2007
				Depreciation and
	Operating income			amortization		EBITDA
Las Vegas Strip	$	414,945		$	133,897	$	548,842
Other Nevada		(3,871	)		1,875		(1,996	)
MGM Grand Detroit		28,864			5,962		34,826
Mississippi		20,237			15,166		35,403
Unconsolidated resorts		38,142			—		38,142
		498,317			156,900		655,217
Stock compensation							(13,580	)
Corporate and other							(28,227	)
						$	613,410

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

	March 31,			December 31,
	2008			2007
ASSETS
Current assets:
Cash and cash equivalents	$	327,745		$	412,390
Accounts receivable, net		390,452			412,345
Inventories		124,190			126,116
Deferred income taxes		56,464			63,453
Prepaid expenses and other		135,269			105,412
Assets held for sale		54,435			55,670
Total current assets		1,088,555			1,175,386
Property and equipment, net		16,845,320			16,823,704
Other assets:
Investments in unconsolidated affiliates		2,487,363			2,482,727
Goodwill		1,262,922			1,262,922
Other intangible assets, net		358,987			359,770
Deposits and other assets, net		852,732			623,177
Total other assets		4,962,004			4,728,596
	$	22,895,879		$	22,727,686
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	169,419		$	219,556
Construction payable		67,546			76,524
Income taxes payable		20,034			284,075
Accrued interest on long-term debt		152,096			211,228
Other accrued liabilities		855,067			929,424
Liabilities related to assets held for sale		3,761			3,880
Total current liabilities		1,267,923			1,724,687
Deferred income taxes		3,406,120			3,416,660
Long-term debt		12,777,215			11,175,229
Other long-term obligations		348,903			350,407
Stockholders’ equity:
Common stock, $.01 par value: authorized 600,000,000 shares, issued 368,865,942 and 368,395,926 shares and outstanding 278,721,429 and 293,768,899 shares		3,689			3,684
Capital in excess of par value		3,978,213			3,951,162
Treasury stock, at cost: 90,144,513 and 74,627,027 shares		(3,222,272	)		(2,115,107	)
Retained earnings		4,338,754			4,220,408
Accumulated other comprehensive income (loss)		(2,666	)		556
Total stockholders’ equity		5,095,718			6,060,703
	$	22,895,879		$	22,727,686

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