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 21, 2004— MGM MIRAGE (NYSE: MGG) today reported its first quarter 2004 financial results. Adjusted earnings from continuing operations per diluted share (“Adjusted EPS”) increased to an all-time record $0.70 in the first quarter of 2004 from $0.38 in the 2003 quarter. The increase resulted from strong visitor levels and customer spending in all areas, highlighted by a significant 11% increase in REVPAR (revenue per available room) at the Company’s Las Vegas Strip resorts.

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 more than doubled to $0.66 for the first quarter of 2004 from $0.32 in the 2003 quarter. GAAP diluted EPS, including the results of discontinued operations, was $0.72 in the 2004 period versus $0.33 in 2003.

“Our first quarter was satisfying in many regards and we achieved several milestones, including record EPS and EBITDA. This was our most profitable quarter ever, with the highest EBITDA margin since the formation of MGM MIRAGE four years ago,” said Terry Lanni, MGM MIRAGE’s Chairman and CEO. “These results further validate our strategy of operating the premier resorts on the Las Vegas Strip. Bellagio and MGM Grand, for example, each had their most profitable quarter ever. We expect to build momentum throughout 2004 as we continue to roll out new and exciting guest amenities at several of our resorts.”

First Quarter 2004 Company Highlights

• Generated net revenues of $1.07 billion, up 12% from 2003;

• Produced property-level EBITDA² of $370.5 million, up 29% over prior year and an all-time Company record for any quarter, and operating income of $255 million, up 60% over 2003;

• Invested $174 million of capital in the Company’s resorts, including theBellagioroom remodel and expansion project, and the new theatre for a Cirque du Soleil show scheduled to open atMGM Grand Las Vegasin 2004;

• Reduced debt by $139 million in the quarter, including the repurchase of $49 million of the Company’s publicly-traded debt securities;

• Repurchased 2.9 million shares of Company common stock for $121 million. The Company is authorized to repurchase 5.1 million shares as of March 31, 2004;

• Issued $525 million of 5.875% Senior Notes due 2014;

• Closed the sale of the Golden Nugget resorts in Las Vegas and Laughlin for $215 million;

• Announced the proposed sale of MGM Grand Australia to SKYCITY Entertainment Group Limited for A$195 million (approximately $143 million), expected to close by the third quarter.

Detailed Financial Results

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

	Three months ended
	March 31,
	2004		2003
	(In millions)
Casino revenue	$	558.7	$	496.2
Non-casino revenue, net		507.7		455.7
Net revenue		1,066.4		951.9
Operating income		254.7		159.5
Income from continuing operations		97.1		48.8
Discontinued operations, net		8.7		2.2
Net income		105.8		51.0
Property-level EBITDA2	$	370.5	$	287.7
EBITDA (after corporate expense)2		354.8		274.0
Adjusted Earnings		102.4		57.9

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, MGM Grand Australia and MGM MIRAGE Online for all periods presented. The results of these operations are classified as discontinued operations.

Net revenue in the first quarter increased 12% from the 2003 first quarter. Results were strong in all operating departments. A solid convention calendar and increased visitation to Las Vegas yielded significant gains in room rates and considerable increases in gaming volumes.

Casino revenue increased by 13% in the 2004 quarter. Table games volume, including baccarat, was up 12% from the prior year’s quarter, with a 15% increase at the Company’s Las Vegas Strip resorts, resulting from strong Chinese New Year and Super Bowl events and continued improvement in the United States economy. Table games hold percentages were within a normal range for both periods. The Company had previously announced that table games hold percentages were below normal through Chinese New Year, but results for the remainder of the quarter, subsequent to Chinese New Year, were more favorable. Company-wide slot revenue in the quarter was up 10% from 2003, led by double-digit increases atMGM Grand Las Vegas,New York-New York,The Mirage andMGM Grand Detroit.

Non-casino revenue was up 11% in the quarter. Hotel revenue was up 10%, with occupancy of 90% in the first quarter of 2004, consistent with 2003, and a higher average daily room rate

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(“ADR”) of $138 versus $127 in 2003. This is the highest quarterly ADR in the Company’s history. As a result, REVPAR was $124, up 9% over REVPAR of $114 in 2003. REVPAR at the Company’s Las Vegas Strip resorts increased 11%, impacted positively by strong conference and group business and higher rates across all segments.

Food and beverage revenue increased 16%, as new restaurants such as the Nine Fine Irishmen Pub atNew York-New York, and Fiamma Trattoria and SeaBlue atMGM Grand Las Vegashave allowed guests to spend a greater share of their dining budget at the Company’s resorts. Entertainment revenues were up slightly in the 2004 quarter despite the closure of the Siegfried & Roy show in October 2003 and fewer performances by Danny Gans atThe Mirage.Zumanity, which debuted in August 2003, continues to perform exceptionally well atNew York-New York.Retail revenues were up 10%, driven by new retail outlets and increased spending by guests.

EBITDA was up 29% for the quarter, reflecting the operating trends described above and the benefit of the results fromBorgata. The percentage increase in EBITDA was higher than the percentage increase in net revenue due to the enhanced pricing power in non-gaming amenities, which largely flows through to profit. The Company’s property-level EBITDA margin was 35% in 2004 versus 30% in the 2003 quarter. Operating income increased 60% over the 2003 quarter, and the Company’s operating margin improved to 24% from 17% in 2003. The higher percentage increase in operating income than EBITDA was due to lower preopening and start-up expenses and lower property transactions in 2004.

First quarter Adjusted Earnings increased by 77% compared to 2003 due to the higher operating income. Net interest expense increased over the 2003 quarter due to higher average borrowings and the cessation of interest capitalization on the Company’s investment inBorgata, which opened on July 3, 2003. For the first quarter of 2004, Adjusted Earnings excluded $8.0 million ($5.2 million, net of tax) of items as follows:

• Net property transactions of $1.7 million ($1.1 million, net of tax), including $0.9 million of demolition costs, primarily atBellagioin connection with the room remodel and expansion projects, and other net losses on disposal of assets;

• Restructuring costs of $0.4 million ($0.3 million, net of tax);

• Preopening and start-up expenses of $0.4 million ($0.2 million, net of tax);

• 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, classified within “Other, net”.

In the first quarter of 2003, items excluded in the determination of Adjusted Earnings included $6.5 million ($4.3 million, net of tax) of preopening and start-up expenses, primarily related toBorgataand Players Club; restructuring costs of $0.6 million ($0.4 million, net of tax); and property transactions of $6.8 million ($4.4 million, net of tax) related to assets abandoned or replaced in connection with construction projects and demolition costs atMGM Grand Las Vegas.

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Income from discontinued operations includes the results ofGolden Nugget Las Vegas,Golden Nugget Laughlin,MGM Grand Australia,andMGM MIRAGE Online. Pretax income from discontinued operations was $14 million in the 2004 quarter compared to $5 million in the 2003 quarter. The current year quarter includes the $8 million gain on the sale of the Golden Nugget resorts. The prior year quarter included significant expenses related toMGM MIRAGE Online’s start-up efforts. Interest allocated to discontinued operations was $1 million for the first quarter of 2004 and $3 million for the 2003 period.

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, including the $215 million received from the sale of the Golden Nugget resorts and $71 million of proceeds upon exercise of employee stock options, to repay $139 million of net debt, invest $174 million in capital projects, repurchase $49 million of the Company’s publicly-traded debt securities, and repurchase $121 million of the Company’s common stock.

First quarter capital investments of $174 million included $58 million for theBellagioexpansion, $43 million for construction of the new theatre for Cirque du Soleil atMGM Grand Las Vegas, costs related to theBellagioandNew York-New Yorkroom remodel projects and other routine capital expenditures.

In order to take advantage of historically low interest rates and ensure maximum flexibility for future growth prospects, the Company issued $525 million of 5.875% Senior Notes due 2014, the proceeds from which were used to repay amounts outstanding under the Company’s senior credit facility. As of March 31, 2004, the Company had $1.5 billion available under its senior credit facility.

In November 2003, the Company’s Board of Directors approved a 10 million share repurchase program. During the first quarter of 2004, the Company repurchased 2.9 million shares of common stock for $121 million under this authorization, leaving 5.1 million shares available for future purchase as of March 31, 2004.

“Our strong operating results and financing transactions in the first quarter have further strengthened our balance sheet and enhanced our ability to profitably grow our company,” said Jim Murren, MGM MIRAGE President and CFO. “We are pleased with the operating performance of our existing resorts and are excited about the prospects of globally expanding our portfolio.”

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Outlook

“Our extraordinary first quarter demonstrates the tremendous operating leverage inherent in our market-leading resorts. If current trends continue, we expect to produce year-over-year gains in earnings throughout 2004. At this early stage, we believe the current earnings estimate consensus of $0.51 per share for the second quarter of 2004, as reported on First Call on April 20, 2004, is reasonable,” Mr. Murren said. “Our current forecast indicates that company-wide REVPAR for the second quarter will be up approximately 7% over last year, with REVPAR at our Las Vegas Strip resorts up a vibrant 9%.” The Company’s guidance includes the impact of business interruption of approximately $0.01 per share, net of our preliminary estimates of insurance recoveries, resulting from the recent power outage atBellagio.

MGM MIRAGE will hold a conference call to discuss its earnings results and outlook for the first quarter of 2004 at 11:00 a.m. Eastern Daylight 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 1-706-634-6528 (international). A complete replay of the conference call will be made available at www.mgmmirage.com.

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.

*     *     *

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MGM MIRAGE (NYSE: MGG), one of the world’s leading and most respected hotel and gaming companies, owns and operates 12 casino resorts located in Nevada, Mississippi, Michigan and Australia, and has investments in two other casino resorts in Nevada and New Jersey. The company is headquartered in Las Vegas, Nevada, and offers an unmatched collection of casino resorts with a limitless range of choices for guests. Guest satisfaction is paramount, and the company has approximately 40,000 employees committed to that result. Its portfolio of brands include AAA Five Diamond award-winner Bellagio, MGM Grand Las Vegas - The City of Entertainment, The Mirage, Treasure Island (“TI”), New York - New York, Boardwalk Hotel and Casino and 50 percent of Monte Carlo, all located on the Las Vegas Strip; Whiskey Pete’s, Buffalo Bill’s, Primm Valley Resort and two championship golf courses at the California/Nevada state line; the exclusive Shadow Creek golf course in North Las Vegas; Beau Rivage on the Mississippi Gulf Coast; and MGM Grand Detroit Casino in Detroit, Michigan. The Company is a 50-percent owner of Borgata, a destination casino resort at Renaissance Pointe in Atlantic City, New Jersey. Internationally, MGM MIRAGE also owns a 25 percent interest in Triangle Casino, a local casino in Bristol, United Kingdom. The Company has entered an agreement to sell MGM Grand Australia in Darwin, Australia, pending finalization. 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,
	2004			2003
Revenues:
Casino	$	558,723		$	496,221
Rooms		234,961			213,298
Food and beverage		217,764			188,077
Entertainment		67,242			65,143
Retail		45,098			41,090
Other		51,086			52,349
		1,174,874			1,056,178
Less: Promotional allowances		108,438			104,304
		1,066,436			951,874
Expenses:
Casino		277,603			262,016
Rooms		61,832			57,906
Food and beverage		119,549			105,252
Entertainment		46,579			46,733
Retail		28,512			26,586
Other		32,884			30,485
Provision for doubtful accounts		6,877			7,636
General and administrative		146,281			138,300
Corporate expense		15,738			13,746
Preopening and start-up expenses		381			6,547
Restructuring costs		414			605
Property transactions, net		1,739			6,816
Depreciation and amortization		97,553			100,550
		835,942			803,178
Income from unconsolidated affiliates		24,172			10,789
Operating income		254,666			159,485
Non-operating income (expense):
Interest income		903			1,708
Interest expense, net		(89,810	)		(82,798	)
Non-operating items from unconsolidated affiliates		(6,205	)		(151	)
Other, net		(7,154	)		768
		(102,266	)		(80,473	)
Income from continuing operations before income taxes		152,400			79,012
Provision for income taxes		(55,260	)		(30,236	)
Income from continuing operations		97,140			48,776
Discontinued operations
Income from discontinued operations, including gain on disposal of $8,186 (three months 2004)		13,869			4,732
Provision for income taxes		(5,161	)		(2,505	)
		8,708			2,227
Net income	$	105,848		$	51,003
Per share of common stock:
Basic:
Income from continuing operations	$	0.68		$	0.32
Discontinued operations		0.06			0.02
Net income per share	$	0.74		$	0.34
Weighted average shares outstanding		142,115			152,110
Diluted:
Income from continuing operations	$	0.66		$	0.32
Discontinued operations		0.06			0.01
Net income per share	$	0.72		$	0.33
Weighted average shares outstanding		146,847			153,549

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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,
	2004		2003
Income from continuing operations	$	97,140	$	48,776
Preopening and start-up expenses, net		248		4,256
Restructuring costs, net		269		393
Property transactions, net		1,130		4,430
Loss on debt retirements, net		3,593		—
Adjusted earnings	$	102,380	$	57,855
Per diluted share of common stock:
Income from continuing operations	$	0.66	$	0.32
Preopening and start-up expenses, net		—		0.03
Restructuring costs, net		—		—
Property transactions, net		0.01		0.03
Loss on debt retirements, net		0.03		—
Adjusted EPS	$	0.70	$	0.38
Weighted average diluted shares outstanding		146,847		153,549

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

	Three Months Ended
	March 31,		March 31,
	2004		2003
Bellagio	$	278,634	$	240,364
MGM Grand Las Vegas		223,020		184,143
The Mirage		139,054		150,107
Treasure Island		99,796		89,942
New York-New York		82,793		61,911
MGM Grand Detroit		103,917		94,769
Beau Rivage		72,986		70,411
Other operations		66,236		60,227
	$	1,066,436	$	951,874

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

	Three Months Ended
	March 31,		March 31,
	2004		2003
Bellagio	$	99,019	$	68,163
MGM Grand Las Vegas		75,829		54,014
The Mirage		40,128		42,360
Treasure Island		31,303		26,223
New York-New York		32,124		25,515
MGM Grand Detroit		38,562		36,934
Beau Rivage		16,789		14,849
Other operations		12,565		8,902
Income from unconsolidated affiliates		24,172		10,789
	$	370,491	$	287,749

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

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
Three Months Ended March 31, 2003
				Depreciation		Preopening					Property
	Operating			and		and start-up			Restructuring		transactions,
	income			amortization		expenses			costs		net			EBITDA
Bellagio	$	40,281		$	27,872	$	—		$	—	$	10		$	68,163
MGM Grand Las Vegas		26,879			20,188		591			25		6,331			54,014
The Mirage		29,694			12,435		—			300		(69	)		42,360
Treasure Island		18,081			8,219		—			—		(77	)		26,223
New York-New York		19,471			5,950		52			—		42			25,515
MGM Grand Detroit		28,197			8,581		—			—		156			36,934
Beau Rivage		10,002			4,641		—			—		206			14,849
Other operations		3,905			4,997		—			—		—			8,902
Unconsolidated affiliates		6,716			—		4,073			—		—			10,789
		183,226			92,883		4,716			325		6,599			287,749
Corporate and other		(23,741	)		7,667		1,831			280		217			(13,746	)
	$	159,485		$	100,550	$	6,547		$	605	$	6,816		$	274,003

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

	Three Months Ended
	March 31,			March 31,
	2004			2003
Bellagio
Occupancy %		95.4	%		92.7	%
Average daily rate (ADR)	$	255		$	238
Revenue per available room (REVPAR)	$	243		$	221
MGM Grand Las Vegas
Occupancy %		92.2	%		92.7	%
Average daily rate (ADR)	$	139		$	119
Revenue per available room (REVPAR)	$	128		$	110
The Mirage
Occupancy %		94.2	%		92.5	%
Average daily rate (ADR)	$	156		$	148
Revenue per available room (REVPAR)	$	147		$	137
Treasure Island
Occupancy %		96.5	%		96.0	%
Average daily rate (ADR)	$	123		$	110
Revenue per available room (REVPAR)	$	118		$	106
New York-New York
Occupancy %		97.5	%		98.4	%
Average daily rate (ADR)	$	119		$	102
Revenue per available room (REVPAR)	$	116		$	100
Beau Rivage
Occupancy %		86.1	%		91.0	%
Average daily rate (ADR)	$	91		$	87
Revenue per available room (REVPAR)	$	78		$	79
Other operations
Occupancy %		69.2	%		68.9	%
Average daily rate (ADR)	$	43		$	44
Revenue per available room (REVPAR)	$	30		$	30

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

	March 31,			December 31,
	2004			2003
ASSETS
Current assets:
Cash and cash equivalents	$	196,413		$	178,047
Accounts receivable, net		161,883			139,475
Inventories		63,230			65,189
Income tax receivable		—			9,901
Deferred income taxes		48,498			49,286
Prepaid expenses and other		88,516			89,641
Assets held for sale		86,516			226,082
Total current assets		645,056			757,621
Property and equipment, net		8,718,333			8,681,339
Other assets:
Investments in unconsolidated affiliates		772,976			756,012
Goodwill and other intangible assets, net		232,671			267,668
Deposits and other assets, net		277,383			247,070
Total other assets		1,283,030			1,270,750
	$	10,646,419		$	10,709,710
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	95,229		$	85,439
Income taxes payable		58,605			—
Current portion of long-term debt		9,687			9,008
Accrued interest on long-term debt		76,808			87,711
Other accrued liabilities		525,122			559,445
Liabilities related to assets held for sale		7,235			23,456
Total current liabilities		772,686			765,059
Deferred income taxes		1,732,256			1,765,426
Long-term debt		5,394,989			5,521,890
Other long-term obligations		135,544			123,547
Stockholders’ equity:
Common stock ($.01 par value: authorized 300,000,000 shares, issued 171,194,901 and 168,268,213 shares and outstanding 143,143,001 and 143,096,213 shares)		1,712			1,683
Capital in excess of par value		2,261,525			2,171,625
Deferred compensation		(16,795	)		(19,174	)
Treasury stock, at cost (28,051,900 and 25,172,000 shares)		(882,378	)		(760,594	)
Retained earnings		1,239,751			1,133,903
Accumulated other comprehensive income		7,129			6,345
Total stockholders’ equity		2,610,944			2,533,788
	$	10,646,419		$	10,709,710

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