MGM Resorts International 8K MGM Mirage Reports Record Third Quarter Results | MGM 2 Nov 06

Exhibit 99


PRESS RELEASE		FOR IMMEDIATE RELEASE


Contacts:
	Investment Community	News Media

	JAMES J. MURREN	ALAN M. FELDMAN
	President, Chief Financial Officer &	Senior Vice President
	Treasurer	Public Affairs
	(702) 693-8877	(702) 891-7147

MGM MIRAGE REPORTS RECORD THIRD QUARTER RESULTS

Las Vegas, Nevada, November 2, 2006— MGM MIRAGE (NYSE: MGM) today reported its third quarter 2006 financial results, achieving record third quarter revenues and earnings. Diluted earnings per share was $0.54, a 74% increase over the $0.31 per share earned in 2005, driven by strong top-line performance — 5% increase in net revenues — and higher operating margins.

Highlights from the quarter include:

	•		5% increase in gaming revenues, with strong high-end table games volume and a solid 5% increase in slots revenue;

	•		3% increase in hotel revenues, led by a 6% increase in Las Vegas Strip REVPAR;¹

	•		Property EBITDA² of $637 million, a 19% increase over the prior year;

	•		Property EBITDA margins increased to 33% versus 30% in the 2005 third quarter;

	•		Beau Rivage, which was open for 33 days in the quarter, earned Property EBITDA of $16 million, versus $12 million in the 2005 quarter, when it was open for two months;³

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


Three months ended September 30,	2006			2005

Profits from The Signature at MGM Grand	$	0.06		$	—
Incremental stock compensation — adoption of SFAS 123(R)		(0.04	)		—
Preopening and start-up expenses		(0.01	)		(0.01	)
Property transactions, net		—			(0.05	)
Tax adjustments		0.02			(0.01	)

“The third quarter once again demonstrated our Company’s ability to grow organically and generate meaningful increases in cash flow,” said Terry Lanni, MGM MIRAGE’s Chairman and CEO. “We are extremely pleased with the record performances turned in by several resorts, and especially proud of the recently re-opened Beau Rivage. Our valued employees are excited to be back to work, and we are glad to be a part of the revival of the Gulf Coast.”

Net revenue of $1.9 billion is an all-time Company record for the third quarter. Results in most operating areas were consistent with this trend, as strong gaming results were accompanied by higher customer volumes at restaurants and shows and contributions from new amenities such as theLoveshow and new restaurants at Mirage.

The 5% increase in gaming revenue was led by double-digit increases in slot revenues at several resorts, including Bellagio, MGM Grand Las Vegas, Mandalay Bay, TI, MGM Grand Detroit and Gold Strike Tunica. Baccarat volume was also particularly impressive, up 22%, continuing the trend from the second quarter. Table games hold percentages were near the mid-point of the normal 18-22% range in both periods, though higher in the 2006 period.

Non-gaming results were strong, with new shows and restaurants contributing positively to results and continued strength in room rates. The 6% increase in Las Vegas Strip REVPAR represents the Company’s thirteenth consecutive quarter of year-over-year REVPAR growth. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:


	Three Months Ended
	September 30,			September 30,
	2006			2005
Occupancy %		96	%		97	%
Average Daily Rate (ADR)	$	140		$	133
Revenue per Available Room (REVPAR)	$	135		$	128

Revenue growth carried through to the profit line, as the Company was able to increase its margins, leading to increases in operating income, EBITDA and Property EBITDA. The Company’s operating income increased 26% to $428 million, which includes $27 million of profit from closings on the final units of Tower 1 of the Signature at MGM Grand. The operating margin was 22% in the current quarter versus 19% in the 2005 quarter.

Detailed Discussion of Certain Charges

In the third quarter of 2006, the Company incurred minimal property transactions. In the 2005 period, net property transactions of $23 million largely related to the write-off of assets replaced in connection with expansion and remodel projects at Bellagio, Mirage and TI.

Preopening and start-up expenses of $6 million in the 2006 quarter related primarily to CityCenter, MGM Grand Macau, the permanent facility at MGM Grand Detroit and The Signature at MGM Grand. Preopening and start-up expenses in 2005 — $6 million — related primarily to CityCenter, as well as new restaurants at MGM Grand Las Vegas and The Signature at MGM Grand.

Positive tax adjustments of $6 million in the 2006 third quarter related to a reduction in reserves required for certain complimentary costs. The IRS had historically challenged the deductibility of certain complimentaries provided to customers, but recent IRS guidance indicated that they would no longer challenge the deductions.

Earnings per share for the 2006 third quarter include the impact of implementing SFAS 123(R) on January 1, 2006. Under this new standard, the cost of employee stock awards are required to be recognized as an expense. The Company classified the incremental expense of $17 million as a result of implementing the standard as follows:


Three months ended September 30,	2006

	*(In thousands)*
Casino	$	3,845
Other operating departments		1,589
General and administrative		4,836
Corporate expense and other		7,117

	$	17,387

Financial Position

Third quarter capital investments totaled $610 million, which included $198 million for CityCenter, $70 million for the permanent MGM Grand Detroit hotel and casino, $164 million for rebuilding efforts at Beau Rivage, $45 million for a new corporate aircraft and $31 million of additional investments in MGM Grand Macau. Remaining capital expenditures of $102 million included spending on the new theatre and new restaurants at Mirage, new amenities at Mandalay Bay, and other routine capital expenditures.

During the third quarter of 2006, the Company repurchased 3 million shares of its common stock for $106 million, leaving 8 million shares available under the Company’s current authorization. At September 30, 2006, the Company had $2.1 billion of available borrowings under its senior credit facility. Subsequent to quarter-end, the Company announced that it had amended its credit facility. The total capacity remains at $7 billion, the term loan component was increased from $1.5 billion to $2.5 billion, the pricing was reduced and the maturity was extended to October 2011. In addition, the Company has the ability to solicit additional lender commitments to increase the facility’s capacity to $8 billion.

“Our financial strength continues to be the foundation for future growth at MGM MIRAGE, and the continued confidence of our stakeholders is proof that our strategies are sound,” said Jim Murren, MGM MIRAGE President, CFO and Treasurer. “With the amended credit facility and our resorts’ success in generating cash flows, we will continue to have financial flexibility for our growth initiatives while still being able to re-invest in our market leading resorts.”

Outlook

“We are looking forward to another successful quarter in the fourth quarter, as our resorts continue to attract high quality visitors from all segments. We expect higher Property EBITDA and our fourteenth consecutive quarter of REVPAR growth, resulting in an estimate of GAAP diluted EPS from continuing operations of approximately $0.40 to $0.45 per share in the fourth quarter of 2006, compared to $0.33 per share in the prior year,” Mr. Murren said.

The Company expects to recognize approximately $40-45 million of profits in the fourth quarter related to sales of Tower 2 at The Signature at MGM Grand. The Company expects to recognize the remaining profits on Tower 2, approximately $30-35 million, in the first quarter of 2007. In addition, the Company’s Laughlin operations — Colorado Belle and Edgewater — and the Primm Valley Resorts will be classified as discontinued operations beginning in the fourth quarter as a result of the Company’s agreement to sell these properties.

The Company’s EPS estimate incorporates the impact of the following significant items (EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):


	2006			2005
Three months ended December 31,	estimate			actual

Profits from The Signature at MGM Grand	$	0.09-0.10		$	—
Incremental stock compensation — adoption of SFAS 123(R)		(0.03	)		—
Preopening, property transactions and other		(0.02	)		(0.03	)
Tax adjustments		—			0.01

MGM MIRAGE will hold a conference call to discuss its third quarter earnings results and outlook for the fourth quarter at 11:00 a.m. Eastern Standard 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 November 16, 2006, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 8744175. 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.

³		Beau Rivage earned operating income of $10 million and $5 million in the third quarters of 2006 and 2005, respectively, with depreciation and amortization of $6 million and $7 million in the corresponding periods.

* * *

MGM MIRAGE (NYSE:MGM), one of the world’s leading and most respected hotel and gaming companies, owns and operates 23 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. The Company has entered into agreements to sell its three Primm Valley Resort properties located in Primm, Nevada and its Colorado Belle and Edgewater properties located in Laughlin, Nevada. In addition, the Company has major new developments under construction in Nevada, Michigan and Macau S.A.R. CityCenter is a multi-billion dollar mixed-use urban development in the heart of the Las Vegas Strip; a new MGM Grand hotel and casino complex is being built in downtown Detroit; and the Company has a 50% interest in MGM Grand Macau, a hotel-casino resort currently under construction in Macau S.A.R. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association’s Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE also has been the recipient of 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.

MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

2006

2005

2006

2005

Revenues:

Casino

844,644

805,277

2,487,982

2,184,468

Rooms

491,511

478,462

1,535,808

1,208,277

Food and beverage

387,029

368,186

1,161,295

963,848

Entertainment

125,702

114,904

330,812

318,762

Retail

75,384

75,248

214,287

189,590

Other

142,110

127,291

398,983

295,099

2,066,380

1,969,368

6,129,167

5,160,044

Less: Promotional allowances

(164,405

)

(161,125

)

(481,476

)

(431,710

)

1,901,975

1,808,243

5,647,691

4,728,334

Expenses:

Casino

426,194

415,236

1,283,983

1,115,792

Rooms

141,537

143,065

420,148

337,949

Food and beverage

239,078

239,581

699,459

594,358

Entertainment

91,450

82,839

241,720

227,705

Retail

48,001

48,475

140,888

123,292

Other

86,671

76,853

232,575

180,835

General and administrative

302,430

288,728

849,036

696,805

Corporate expense

35,184

32,112

110,415

90,554

Preopening and start-up expenses

6,083

6,147

27,308

12,568

Restructuring costs (credit)

—

1,035

(59

)

Property transactions, net

282

22,637

36,326

28,633

Depreciation and amortization

163,536

161,566

483,793

423,734

1,540,446

1,517,250

4,526,686

3,832,166

Income from unconsolidated affiliates

66,138

49,006

158,773

114,936

Operating income

427,667

339,999

1,279,778

1,011,104

Non-operating income (expense):

Interest income

2,650

3,156

8,422

10,172

Interest expense, net

(193,899

)

(193,150

)

(586,630

)

(461,966

)

Non-operating items from unconsolidated affiliates

(4,627

)

(4,344

)

(11,563

)

(11,535

)

Other, net

(1,654

)

1,894

(8,031

)

(15,578

)

(197,530

)

(192,444

)

(597,802

)

(478,907

)

Income before income taxes

230,137

147,555

681,976

532,197

Provision for income taxes

(73,875

)

(54,345

)

(235,283

)

(186,740

)

Net income

156,262

93,210

446,693

345,457

Per share of common stock:

Basic:

Net income per share

0.55

0.33

1.58

1.21

Weighted average shares outstanding

281,836

286,752

283,423

284,938

Diluted:

Net income per share

0.54

0.31

1.53

1.16

Weighted average shares outstanding

289,258

298,885

291,744

296,753

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

Three Months Ended

Nine Months Ended

September 30,

2006

2005

2006

2005

Las Vegas Strip

1,543,101

1,452,235

4,671,092

3,766,319

Other Nevada

159,745

163,802

469,034

353,674

MGM Grand Detroit

116,141

107,652

345,142

331,054

Mississippi

82,988

84,554

162,423

277,287

1,901,975

1,808,243

5,647,691

4,728,334

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

Three Months Ended

Nine Months Ended

September 30,

2006

2005

2006

2005

Las Vegas Strip

486,621

404,828

1,528,117

1,172,828

Other Nevada

21,971

26,183

71,756

56,922

MGM Grand Detroit

38,421

36,814

114,020

114,450

Mississippi

25,011

15,416

42,401

67,456

Unconsolidated resorts

64,814

50,436

154,154

113,959

636,838

533,677

1,910,448

1,525,615

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

Three Months Ended September 30, 2006


	Preopening				Property
	and start-up		Restructuring		transactions,
	expenses		costs		net			Total
Las Vegas Strip	$	3,998	$	—	$	69		$	4,067
Other Nevada		—		—		(21	)		(21	)
MGM Grand Detroit		647		—		—			647
Mississippi		—		—		167			167
Unconsolidated resorts		1,324		—		—			1,324

		5,969		—		215			6,184
Corporate and other		114		—		67			181

	$	6,083	$	—	$	282		$	6,365

Three Months Ended September 30, 2005


	Preopening					Property
	and start-up			Restructuring		transactions,
	expenses			costs		net		Total
Las Vegas Strip	$	7,313		$	11	$	22,361	$	29,685
Other Nevada		—			—		—		—
MGM Grand Detroit		4			—		—		4
Mississippi		260			—		276		536
Unconsolidated resorts		(1,430	)		—		—		(1,430	)

		6,147			11		22,637		28,795
Corporate and other		—			—		—		—

	$	6,147		$	11	$	22,637	$	28,795

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

Nine Months Ended September 30, 2006

Preopening

Property

and start-up

Restructuring

transactions,

expenses

costs

net

Total

Las Vegas Strip

19,024

1,035

32,635

52,694

Other Nevada

—

(171

)

(171

)

MGM Grand Detroit

1,924

—

1,925

Mississippi

—

177

Unconsolidated resorts

5,969

—

5,969

26,917

1,035

32,642

60,594

Corporate and other

391

—

3,684

4,075

27,308

1,035

36,326

64,669

Nine Months Ended September 30, 2005

Preopening

Property

and start-up

Restructuring

transactions,

expenses

costs (credit)

net

Total

Las Vegas Strip

11,252

27,787

39,046

Other Nevada

—

(63

)

(63

)

MGM Grand Detroit

—

304

308

Mississippi

335

—

316

651

Unconsolidated resorts

977

—

977

12,568

28,344

40,919

Corporate and other

—

(66

)

289

223

12,568

(59

)

28,633

41,142

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

Three Months Ended

Nine Months Ended

September 30,

2006

2005

2006

2005

EBITDA

591,203

501,565

1,763,571

1,434,838

Depreciation and amortization

(163,536

)

(161,566

)

(483,793

)

(423,734

)

Operating income

427,667

339,999

1,279,778

1,011,104

Non-operating income (expense):

Interest expense, net

(193,899

)

(193,150

)

(586,630

)

(461,966

)

Other

(3,631

)

706

(11,172

)

(16,941

)

(197,530

)

(192,444

)

(597,802

)

(478,907

)

Income before income taxes

230,137

147,555

681,976

532,197

Provision for income taxes

(73,875

)

(54,345

)

(235,283

)

(186,740

)

Net income

156,262

93,210

446,693

345,457

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

Three Months Ended September 30, 2006

Depreciation

Operating

and

income

amortization

EBITDA

Las Vegas Strip

355,282

131,339

486,621

Other Nevada

12,493

9,478

21,971

MGM Grand Detroit

33,865

4,556

38,421

Mississippi

16,353

8,658

25,011

Unconsolidated resorts

64,814

—

64,814

482,807

154,031

636,838

Stock compensation

(17,387

)

Corporate and other

(28,248

)

591,203

Three Months Ended September 30, 2005

Depreciation

Operating

and

income

amortization

EBITDA

Las Vegas Strip

275,464

129,364

404,828

Other Nevada

16,452

9,731

26,183

MGM Grand Detroit

30,327

6,487

36,814

Mississippi

6,313

9,103

15,416

Unconsolidated resorts

50,436

—

50,436

378,992

154,685

533,677

Stock compensation

—

Corporate and other

(32,112

)

501,565

Nine Months Ended September 30, 2006

Depreciation

Operating

and

income

amortization

EBITDA

Las Vegas Strip

1,131,278

396,839

1,528,117

Other Nevada

42,466

29,290

71,756

MGM Grand Detroit

103,310

10,710

114,020

Mississippi

22,746

19,655

42,401

Unconsolidated resorts

154,154

—

154,154

1,453,954

456,494

1,910,448

Stock compensation

(55,093

)

Corporate and other

(91,784

)

1,763,571

Nine Months Ended September 30, 2005

Depreciation

Operating

and

income

amortization

EBITDA

Las Vegas Strip

835,422

337,406

1,172,828

Other Nevada

32,107

24,815

56,922

MGM Grand Detroit

94,551

19,899

114,450

Mississippi

45,725

21,731

67,456

Unconsolidated resorts

113,959

—

113,959

1,121,764

403,851

1,525,615

Stock compensation

—

Corporate and other

(90,777

)

1,434,838

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


	September 30,			December 31,
	2006			2005
ASSETS
Current assets:
Cash and cash equivalents	$	343,716		$	377,933
Accounts receivable, net		343,491			352,673
Inventories		117,335			111,825
Deferred income taxes		63,693			65,518
Prepaid expenses and other		134,298			110,634

Total current assets		1,002,533			1,018,583


Real estate under development		128,116			—

Property and equipment, net		17,227,810			16,541,651

Other assets:
Investments in unconsolidated affiliates		1,082,664			931,154
Goodwill		1,307,118			1,314,561
Other intangible assets, net		375,115			377,479
Deposits and other assets, net		521,244			515,992

Total other assets		3,286,141			3,139,186

	$	21,644,600		$	20,699,420


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	439,782		$	265,601
Income taxes payable		25,503			125,503
Current portion of long-term debt		—			14
Accrued interest on long-term debt		196,022			229,930
Other accrued liabilities		892,849			913,520

Total current liabilities		1,554,156			1,534,568


Deferred income taxes		3,377,594			3,378,371
Long-term debt		12,955,822			12,355,433
Other long-term obligations		215,617			195,976
Stockholders’ equity:
Common stock ($.01 par value: authorized 600,000,000 shares, issued 359,554,443 and 357,262,405 shares and outstanding 280,580,590 and 285,069,516 shares)		3,596			3,573
Capital in excess of par value		2,700,768			2,586,587
Deferred compensation		(360	)		(3,618	)
Treasury stock, at cost (78,973,853 and 72,192,889 shares)		(1,596,984	)		(1,338,394	)
Retained earnings		2,434,418			1,987,725
Accumulated other comprehensive loss		(27	)		(801	)

Total stockholders’ equity		3,541,411			3,235,072

	$	21,644,600		$	20,699,420

MGM Resorts International (MGM) 8-KMGM Mirage Reports Record Third Quarter Results