MGM - Earnings call transcript Q1 2020 | MGM Resorts International

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Operator

Good afternoon, and welcome to the MGM Resorts International First Quarter 2020 Earnings Conference Call.

Joining the call from the company today are Bill Hornbuckle, Acting Chief Executive Officer and President; Corey Sanders, Treasurer and Chief Financial Officer; Grant Bowie, CEO and Executive Director of MGM China Holdings Limited; and Aaron Fischer, Chief Strategy Officer.

Participants are in a listen-only mode. After the company’s remarks, there will be a question-and-answer session. In fairness to all participants, please limit yourself to one question and one follow-up. is conference this note being recorded. Please

would Aaron Fischer. I like to to over conference the Please turn Now, go ahead.

Aaron Fischer

Good This broadcast the XXXX at to afternoon, MGM Resorts Form release also the we’ve International to and furnished X-K first investors.mgmresorts.com, our and earnings call on live call. being is the Internet SEC. on welcome press quarter

these Actual On statements. those of the provisions the Safe this Harbor from call, we materially securities will results laws. make contemplated differ forward-looking in statements under may federal

factors today’s Additional actual with to otherwise. in of concerning to required cause information that statements these obligation results no as filings update materially result could new forward-looking by statements these information is our undertake a law, the Except or differ press from SEC. contained we in release as

discuss we non-GAAP measures call, performance. in our the will talking financial about During also

financial You in are on can our measures website. presentation, our press to the which reconciliation and investor available find GAAP release

recorded. Finally, being this presentation is

I’ll now turn it over to Bill Hornbuckle.

Bill Hornbuckle

we defined the has X/XX, taking our unprecedented. COVID-XX the pandemic response sustainable I’m Resorts afternoon is recovery. with One the global industry is are fire, the for MGM but that XX. over good you many over been position October, as I’ve and Resorts, MGM in seen to original and truly Aaron years time, periods and know, that XX everyone. in necessary difficult most MGM disciple I’ve proud crisis, financial but earnings you, my confident call I’m company focus the Acting of This for a Thank of the actions of to CEO as including crisis the the first for

but seen outlook. like first on quarter our calls we and longer-term last and quarter our have of our our I business, walk impacts these you communities many through then start COVID-XX since usually week, and you the employees our with I’ll the the numbers disclosed the address of to results, We already

Equity the acknowledge background council of we company’s expertise return would partnership and for valuable work like allocations we Chairman, and on Before the our do, enhance stewardship I’m Paul’s to of manage current directors Providence the board to the of I together overall and environment. provides I Partners. of grateful our investment. the Salem through capital as Paul

The individual to to COVID-XX COVID-XX offer tremendous pandemic as a a like has of hospitality global ours, whole challenge level, which economy, course imposed suffering represents and guests society and the by the On been world-class company an to experiences. exists entertainment a to enormous.

and who hearts have Our colleagues. those friends members, lost to all go family of

our also have lost XX We at own of MGM.

the also on to to reporting to grateful to first safe keeping properties responders extremely the all We’re work who and medical like pandemic of front-line are and employees MGM who serving the secure. our personnel and day recognize and essential are every the are

nonessential spending, mid-March, know, have million our we we new past to all all our our closed decisive measures amended minimizing our out take the At and dividend, we business you raised deferred U.S. began reduced credit few protect our and maximizing As liquidity of properties. by In cut XXX weeks, in bonds. that flows. agreement cash our time, to in

actively them The back. was and This a make, employees. it’s furlough hard most was difficult day and we but can welcome decision nearly however we step painful to are to for XX,XXX preparing the

on we estate month closed. As cash MGM XXX outflow while sheet, transactions, estimated of a X.X balance MGP, an actions excluding per MGM result these real of its million are China, cash has of billion domestic approximately and and our

has the health been we top During and be we priority. focused operate. the to guests on have employees continues strengthening which committees This this safety and international our crisis, our and of in in

confirmed again of and employees providing have to to experience we while committed health benefits impacted has and our our our strength such, difficult, the values culture. continue As this

company, our million Nevada XXX,XXX provide over and emergency of to communities, provided for X million XX.X COVID-XX logistics grant The products and immediate and the test employees for employee raised in and million food PPE. local partners fund given have We’ve donated units relief X also for to collectively families our employees, over in need. in

community. $X.X significant China support, Province or donating the supporting MGM means of XX providing its has the made MOP also Hubei PPE the otherwise efforts region to million and to to crisis, other including to local approximately or million

poised operations. Although as public this are extremely begin to Because COVID-XX and culturally, financially, the normal now and well-positioned lifts presents regain restore taking, health we we of are crisis. operationally to as strength momentum soon the actions are unique handle to we to the we challenges, and danger can

of briefly to always going forefront are will key when going the of but and that and strategic they play forward. our role that mean While we put some a walk major new and have a questions imperatives. the now, how do, you do intensely at does on we safely? few, safety reopen are we what I’m in performance to through we focused all health gather Right it

is building public strategies recovery This vital take confidence a are key to trust. seriously. to is Consumer we economic and reopening extremely responsibility thoughtful that

we So, briefly our let the outline how question thinking about me reopen. of

are ability a through this and welcome areas two number our working safety in are people to make now in key to expect work build the We next to to safely know weeks. there put and public are guests. our public back confidence essential and that of protect We the right plan

come a sanitation more. with and environment. experts deliver protocols, cleanliness will a physical in include of measures collaborating help secure protocols crowd governments of distancing, PPE, stringent provisions with health officials, the will are that public These and biosafety state like both and epidemiology set and to federal management, We and up

touchless across improve We’re and protection overall overall also their the experience in developing confidence hospitality digital to create experience. innovations for the and interactions greater guest environment

to evaluate when will and We evolve our the we data, us as driven by to by will reopen interactions. continue guest question, to able and properties. guidelines science public operating second and be our we domestic practices This brings by health

Governors In open Ultimately, Ohio case, that various dates to Due MGM's New depend elected means conditions reopening New phases. in officials and Mississippi, York. health precise public we public States, Maryland, are preparing consulting decisions in of to Massachusetts, the authorities. health Jersey, the Nevada, Michigan, by properties these on with

Given meaningful Macau's the stabilization market summer. we of cases show and early in Asia Executive, comments anticipate may this Chief by recent the this recovery

Mississippi states markets, made likely rebound the economics are also the states consumer Vegas we and faster Las impacted sooner of those stakeholders. to about have our we U.S., than heavily allowed properties needs will than will individual drive certain on more as obviously, decisions In and Casinos open openings will our destinations. that regulators, balance and anticipate regional employees, property Once key of fly-in such other open based demand will local

In our safety highest we open is guests must I a that all cases, priority. our our will of employees again and stress the health in way and and protects that

Now, a few our I’ll spend minutes over results. looking back QX

XXX million the was to to income due gain million XX period, X.X relating transactions. and pre-tax net prior in the billion versus Mandalay Grand Our Bay MGM

a These in property As Phase adjusted growth were XXXX basis. its Las XX%, our were our stronger operations up X of on working EBITDAR than we full adjusted up was EBITDAR Strip force. property strong both even first announced, and by previously driven results same-store and XX% MGM two was Vegas robust internal regional projections, months our organic

in our we March to deteriorated domestic performance As expected, when properties. close dramatically required all of

an XXX a loss MGM down As of QX and our Las to XX XX EBITDA and EBITDA adjusted down regional was recording Vegas China result, consolidated XX% million. million down XX with our

our simplify discipline, Looking as our goals: ahead, our commitment model, and strategic strict a focus being driven is planning to to operating intense on three executing MGM by maintain bringing initiatives such XXXX. overriding current capital

of on these areas. touch me a few Let

reducing expenses and by achieving This all across significantly recovery. is operating are crucial We our expenses long-term cutting departments. to corporate properties

and costs freezing quickly nonessential moved as as positions, eliminating to reduce expenditures. We well operating furloughs through

initiate the program with are to improving compensation receive efficiently effectively eye executives model and a while our XXXX to adjust directors in also to current been in environment. operating more of taking stock and to allow has a an response actions senior form we core margins philosophy We operating units aggressive restricted the towards further and

to time historically. at and opportunistic doing we’ve all things that is in been a We operate moment believe a look this very to take

financial also cash protect carefully our managing to company's position. the We’re

approximately We our expected reduced million. have or domestic deferred, XXX XXXX XX% capital by at least expenditures

MGP have approximately announced of board per dividend the $X.XX that million XX will to Blackstone. savings continue our We we and share reduced our to obligations in quarterly rental importantly annually to meet and resulting

to MGP our redeem our our balance domestic also today we have billion bond X.X cash in liquidity and for the OP agreed in of position on has of units X.X the cash should strengthened elect also them have to redeemed. adjusted addition sheet to billion offering, We

our CityCenter liquidity asset China. remaining We stake the and our have in in additional levers MGP, stake ROFO including MGM XX%

to China Macau look We also want our continue future presence in have although the forward to continue of be believe there. we MGM to continuing and a to to – invest and in clear, XX% stake to in we

to credit flexibility agreement covenants. providing no yesterday our have additional prior and debt maturing on We just and XXXX then on closed financial our

liquidity further China down this as its with month well. covenant for additional drawn liquidity. amended XXX also million of MGM earlier MGP additional to on revolver credit and financial it has provide our is also its well-positioned relief agreement for

our advance to initiatives. continuing also are We long-term strategic

that continuing by will expenses and for in higher returns progress our margins capital drive will to once allow recovers. We business pursue projects XXXX and reduce fully MGM

and I continue our fully as to sports We world-class time Osaka. betting to strategy particular, over a Oryx real in we with opportunities want online our develop will in emphasize resort to partnership execute continue and integrated to And we to gaming. in Japan, remain estate such committed Macau, growth on invest

currently recently am I Chairman today XX moment first I once believe spend by earned of Co-Chair. will which X.X years about be properties. obviously Macau the China Visa day, are restriction, visited. scheme just We Ho operating China on on – was rapidly as me the MGM's cash personally amount I with was as and other Let million our properties expenses Pansy a other excessive those to an I market per when alongside rebound restrictions ago Macau. approximately about of as MGM is incurring elected loosened. being excited

to on non-gaming current and within I forward current for administration more support more our our to look offerings, footprint, While strategies on driving the and new expand focused and Macau efficiencies with Executive room and especially in properties will we managing Chief Macau. our development invest with in the we further situation are in continue in the sweets this to working product. currently

were In outlook initiatives implemented. back as such over business the MGM the of with margins year, remain strong start success recently had points in which number that and of XXXX was long-term our of Las the XX%. to summary, encouraging confident a we a Vegas, of In our we

assets We in which our our leading have a further markets, healthy recover to support business. will most of

will We for and we areas continue the to resources the create we our shareholders. focus value way operate simplify that most into

up, The striving a efforts outlined as to lead of being of my this organization. honored personal in note industry, with speak On MGM this a someone be and like great Resorts. disciplined in four to experience all being for company things focused more leadership in wrap the to to clear intent by to my opportunity I’m of transparent I’ve today decades and

for Hopefully, want to the company and stands hallmarks I forward. of become going what stand what they will this for

strength current I the in of in operating and for experience, While our playbook long-term faith expertise in our challenges plan, no safely proven this our the have is our we public managing face, deep gatherings, business. tenure there

of so that, before. I soon, that will Resorts say, And look as have to many world world. entertain we than and of partners the day men this amount and MGM let’s forward the on a rise will to challenge women the confidence the around occasions they have once tremendous again more I and our

up you, and open that it with Thank I’ll for questions.

Operator

And our Joe with will first Please from go come Instructions] today JPMorgan. [Operator ahead. question you. Thank Greff

Joe Greff

was you you Good start I say afternoon afternoon might I be specifically pretty kind with what Bill then to doing thought his did laid Good differently ask it but in of eloquently. out Bill. you everybody. going tenure, Jim and of you

one So, take of will my questions. two that I as not

it maybe can So, starting about you on how just reopen and Strip? I about you it’s think on you with with think question How the opens would and can many know particularly large properties could this of by I do on the the properties properties – properties, much before you you summer the year? phase visitors. percentage Excalibur, to end CNBC, Las on about talk higher that you traditionally views number If by business? by you of be this realistically will that of when domestic start your just And how middle properties opened at in the year price you those optimally not be in Las end for are nor talked Strip your of many maybe group maybe will have point airline Vegas much how the to said the like reaction start how international the it would anticipate back? the year, that so, of timing how – of hosted it, depended Vegas is be talk premature next you capacity know to one, about coming a of

Bill Hornbuckle

on one. Thank the you, and of a Joe. question first I appreciate focusing backing simple

on you here. is Macau that maybe the early that and So, see to in are for three Corey in to open the and but buckets and summer all begin at market to in will things extent of phone will indicators itself this can additional let me got some hopeful Grant chime given speaks the – and end obviously we I China this ask to this the want questions, we that up. have

the there is are predicated note, know, opportunity prepared happening I better government loads you back summer. is down, think and to early regional although the we but comments order said be forth in what’s which feeling Guangdong on of is magnitude feel all it these there we of says. be are to us critical places as as case what significantly and province goes in to better, of and are properties going The about like – there going obviously some my of

about we have saying which like Empire see year, We be Mississippi, off to are markets Governors fly we to begin potentially news mandate The down first, run, determined. with the What drive the regulators. is obviously that their Maryland potentially is note does the at later given of see baseline our XXX least regionals programs BAW, and in we see potentially some those good and places do there but rollout. the time to the keys Mississippi exception our capacity and of road those then the

in in so we’re the what’s that all on You’ve going of Michigan, seen obviously midst Detroit. all of

to the and has So, process one take like is know we in to in now businesses at – trying Vegas cetera, exactly go to don't things those He looking up to Las most that specific governors on speaking daily will courses of bucket. in open been your like More time. small the three-phased step question a a have the when, Then at you et we Governor golf almost happens respect. understand next community open. what with when

a will of we Southern to time we when know. chance there deemed open Nevada In just the are all believed will it’s in Maryland that next some some in like of Again, we potentially same but note, have areas, gaming don't universally areas of gaming in and third bucket, in be may safe. Nevada activity, meaning bucket in that it’s open

two offerings We’re or three at probably initially. looking

set. lean into Obviously, a value to something New We York. of tend

rooms. New it’s one to because York of places it’s run, simpler our XXXX

We’re wanting context probably at in sure sands. the ensure, I'm they end. the looking because the to in to set one at open going down of only other the Bellagio have street competitors when is I'm

to then will go about will in at And there responsive any in we of and, other we from the should the what economics open look time we’ll properties if business. So, to some be and be know point in slow, want high-end we’re responsible, you it. talking that

not of and going generate closed. properties kind is any these that from i.e. be backwards between to being meaningful to Most cash XX% XX% of meaning need

the we're And going how see market to responds. so

with mention relatively them time Americans, the may were over Las other the on the hub The to? think these President conversation value. here, activity challenges will did airlines; won't some point-to-point in bullish is a team. this but presents here its we in think because You want last but see hubs I Deltas of as Vegas you’ll guys, They of deal leadership remaining in the the week circumstances, And obviously Southwest, Las have first. still thing start I with market carriers its United, interesting and the come the first, Vegas. that great bullish. Southwest if always world on restrict Corey, focus you They a are feels

Corey Sanders

like I think any avoid the key and is mean, hit We things want thing. numbers a all points and I key to you Bill. obviously safety that. spikes

deal and driven. will it will we So, with in it lot demand a cautiously general be of

automobiles, the think Las and from properties about, XX% do cash Just the we definitely opportunity is up of comes as our some we’ll maximize about a as there be traffic flow. and demand up to coming reminder, Vegas into will pent open

Bill Hornbuckle

on Grant, anything to Macau? Grant? add

Grant Bowie

again. actually somewhat I reiterate seen. Bill, where think I significantly first. of expect for The looking will the challenge we're traffic that's to. restricted. we thank the that back is that will what guess opening just the We come because That's have is think, and as up, volumes market we we be you. Bill, a I positive, large us you've see about by of it's premium strength that that, critical obviously that that and point as

do information. China be some their that I hope that within Kong heard extended to time has probably that just X, through everybody Hong waiting we're there June quarantining adjustments that also that and that think requirements with we might get

Thank for. demands to for as they're our their travel very the but very to is positive. we manage with thing the best can, comfortable we're customers, opportunity only you. we're looking them from We're that discussions trying the So, there, importantly, most

Joe Greff

Grant. That to Great. you was question my

guys. it. answer Thank much, very you You

Bill Hornbuckle

Thanks, Joe.

Grant Bowie

you. Thank

Operator

Bank. ahead. comes Carlo Deutsche from Please with go Next question Santarelli

Carlo Santarelli

you for taking Bill. Hi, my Thank question.

Bill Hornbuckle

Carlo. Hi,

Carlo Santarelli

actually together framework putting several of more spent have you and top – years whatnot. guys guys to run a quarters, last the business kind of how the So, efficiently down

having the to from expense in driven an where low almost questions from the kind rationale how expenses this, firm demand and much of was, that now, a ability sit starting more environment way? bring you of your and you're expenses I had consolidated on does thinking very like kind help a perspective One baseline of lines, those that back those in you as along

Bill Hornbuckle

immensely kick it and it's Look, Yes. I think been I'll off Corey. valuable.

became that PGP, Corey? call If what you started March in or lines. do actually along last recall, I with something XXXX we Operating it, XXXX, obviously, Officer we Chief

ability so various what at whether at frankly, we was lens level, most very was or we operating, to – every were on. a value, and bringing really things the doing of centers understand, we regions, the And our were doing, it what why we were excellence, corporate, clear how have properties,

said structure we it's a And now are be things serve. ramp efficient we business and organization and think going to customer how environment we're and truly of the to those to places on to state, things have as that organization, going lens it's we focused terms normal take, do but there, that the priority, have and much in those believe our day-to-day experience we're post-COVID in all another that the so done, we the a about that going in return a in to we work some we into back all more to re-launching driving matter when

Corey Sanders

evolved less This to COEs the we a closing centralized of efficient. add since as than has And opportunities rethink it, us even there's then. What stood is I is, really we And really allowed XXXX think to become old. that. more and Carlo year up MGM we've would components

that MGM thing our us business and on give staffing labor volume. the variable on XXXX to is discipline The other

a very time is we've which this. helping out So, become in disciplined, like tremendously

Carlo Santarelli

in just the you six, of the earlier, and respect follow-up. or And of kind Great. months nimble plenty sheet on $X.X and road? billion that you included, what I paradigm nine to available could that's valuation $X.X Thank it if is down as mentioned myself billion today it’s advantageous decision balance in pull the with guys. one situation you kind with obviously, Bill, its evolves reflect that the that there there. runway that event string think be more kind this the of you the of Is that the of you the to liquidity. saw you, you guys how then kind Clearly, on are structured of to would worth? Or thought that more dependent fairly

Corey Sanders

transact take – especially really you we feel I'll that. agreement think the the it did not week, to When on I it's gives do about would us Corey. I most believe based it’s it time we as we it our the think big last right what manner point have we transact give rush. be does and in really Carlo, long-dated we and right to for the a position when the we'll whatever with ability liquidity us have the We, us. – good efficient Look, any MGP, is and in – option. mentioned,

So, us. MGP and reminder, pretty stock is just important for a as a

in over have $X MGP. of billion We value

Carlo Santarelli

Understood. Thank you, guys.

Bill Hornbuckle

Thank you, Carlo.

Operator

question next ahead. Please Stephen The go Goldman Grambling with from Sachs. comes

Stephen Grambling

Thanks.

opening remarks size you just evolved? Any the the mentioned still Can should timing the update think being to on investors an returns? be milestones provide investment color and How watching? committed Japan. have unexpected may in I you

Bill Hornbuckle

literally see has in days COVID-XX, up as been Sure. early you impacted may like be places another rumored discussed. as think most what being to it – is Abe I world to What is additional by restrictions today, Japan the XX stick

as of end we sits currently definitively the an July. RFP due process that it slow it of think the and have Osaka is, are the that I we is sure will By for are not this. RFP way, we impact in ready submission down, although,

which I but gets the of fine lone us. process appropriate worked is year, what has there, is the team whole as and know, by that we applicant hard on we’re the pushed I closer would and you think happen Our to may think this, the submit, standing end

is has see see for time actually We interest others through Asia process Japan, industry. expressed its build as In still to and – terms working of tell its in and and you whether way now a scale, the joined. upside Yokohama in huge the sincere own of a company, for frankly, terms its huge opportunities is other

absolutely We're the run very bullish long long Japan the we're in on bullish on run. and Macau in

You're still they're portfolio that the we to to significant they as And regs. zone returns billion at we all and we in that get company how the the be would overall and we balance determined significant have. its investment. our everything through once $XX But on be earnings look

so, we bullish. And remain

think my really, I it we're not get final it guess, and delayed if I ready will point. does is

Stephen Grambling

then follow-up Great, is thanks. And my related to Joe's earlier question.

mentioned I occupancies be XX% needing was had cash meaningful XX% You to generate around, and think, to it flow.

with typically the on maximize occupancies either and Given are increase model property to or Thanks? tackle as think alleviate has you that the the the biggest been of high segment run business? flow distance different that crowds, help very about the strip, you what in parts cash can bottlenecks

Bill Hornbuckle

critical of Yes. large final help and with are back the There's the air of a which and there's that to to amount will in and this. There's mean, – see gatherings recovery. because Corey group ultimate me regionally obviously pent-up summer, demand. believe we getting drive-in We aspects substantial Obviously, couple getting spikes a I traffic, different do it. drive-in. particularly

they happened of beaches the California a open saw for weekend. in You when what

you'll is But want I be they're to to which to demand. what think I going not again, leisure think clear. close do see we

it'll you'll from been happens drive I always think, push traffic, The that what casino active. see and perspective. has

still have They well They're next are as They back. come balance and people of this into to there, want pent-up demand out the and anxious. remains already. here that in set booking year Macau. offer into Our

on with way to would come a large-scale obviously, of the will irrespective so about think XX,XXX segment And I this think, last. back. championship tell Group, be people, fight anxious the Casino events, as to I hosted you group it. is

We next half months. than Half have less our has already of that little because of the XX rebooked lost the over a of group pandemic. business

you but back. And macro, large is particularly has the tech if in encouraging come group and it about business our company for we're really think so that XX%, about thing formats there down

who not do there's a market a the this change come so, come it how in mindset and around the to of And the want of gather will way. and back future people world to Microsoft's from meaningful into

And scale is that then AEG. Live to and down with that that with partnership So, the time. encouraged going lot host a Getting really do to obviously, by longer-term. We back an ultimately, protocols major we're event have events Nation. we requires to get of a

be simply you think to to the and want probably the Corey, going to I heal. last talk cure the and that to cost? inside is maybe environment

Corey Sanders

need, time think, general, following sizing a the have to lot supplies, going competitors distancing we'll we're gear the our of the like need, I protocols many in We’ll are. that up right open be of we're what next idea We in by jurisdictions. that we'll all talk. we good is, a now on have that mean would should how the the of we fairly

like our casino in decent the The at customer. other area, some of any high-end play, high-end I see Las property or think Vegas where Bellagio, we're probably a going to especially is

contact to the will have mentioned, closed we have a Bill them feeling down. open. in been were back them we the day they I leave when last with we of As and some be

to quite have our as year. get a that group we still margins be positive, in the rooms on us the of for returns that's books business the I will up what's back-half back think key is for So, few but the strange

to the convention as very room strong. for best nights. was And by booking in more way, comparing our it time we in the where year And looking at particular, year, year were apples-to-apples, is at last next and has in which XXXX, mentioned, which same Bill XXXX been

more the XXXX. in do rooms for same now the We XXXX have time we – on than XXXX at books we for did

Stephen Grambling

so you much. Great. Thank

Operator

comes question from Allen ahead. with Please go next Thomas The Stanley. Morgan

Thomas Allen

regional? still trying you like do just distancing you're between working of in your reopen us difference a give rough properties they're sense to respecting space what machines, percentage Will going versus to it any comments, XX%, like, and measures, kind kind sense keep be Corey, last between online to a Hi, of can you figure of when this. XX%, just XX%, the clear social like, out, positions you rough these Vegas be of get and history? through having back slot can I'm

Corey Sanders

and those of We're ago. still impact. that to is have We'll you probably little proper be regionals more be size And this in more quarter. to The right the give about on XX, an I tell years ideas. will numbers. we'll a working positioning. more could effort, it XX chance The built will you to able Las the good distancing bit were Vegas them the take with talk in regionals some next floors able and our

Bill Hornbuckle

MGM in we're Park, do it. ARIA, particularly time actually, we’re a putting two casino And to – of now is Tom, new carpet, those at good and places, at down

And reconfiguring for mind so with in those the floors distancing. space we're

And environment little different in day feel so, will one. a the walk people when from

Corey Sanders

only that would of limits add I number floor people the have to adjusted some for And the building. might format would of our And in be jurisdictions the would if is, thing these other that. be case,

Thomas Allen

going Helpful. have a your thought a offense? Thank liquidity than you. then, any but And of lot long some be about shot, may on peers, position given this the look, you're you in better

Bill Hornbuckle

like sports long a always very focused. to that in stay Bill. don't this, ultimately, – we've give continuation if principle. of come But an of this thought. on given, the We you to It’s defined Yes, know look, very how Macau, hopefully, we a in and of take. is We we've going course, out Japan, going extension license projects betting, we're

focus. our not say, to never; be never that's You going but

do operating not decades look, And the strong. our the sheet what knowing in company We're takes it's it's many, been, now, how many all think, right ever this to and anyways. of balance long again, and does it and than I and be stronger up history of

again, that in are so, just fortunate but don't we And respect, know. we

Thomas Allen

Thank you. Helpful.

Operator

The Bank America. go Shaun ahead. Please question from of will Kelley be next with

Shaun Kelley

Hi, Bill. Hi, good afternoon.

Bill Hornbuckle

Shaun. Hi,

Shaun Kelley

you position and – to prior wanted in Just have your some sports of your spent these I events, roles group of and unique know larger some some a in lot of whatnot. bigger on relationships scale these time Bill, – of you a and

entertainment of are convention, there? your the and kind take of maybe So, you to which Just here. group the may I the mean, of things? specifically thoughts come be like piece, good isn't any event anymore obviously, some sports back, let's but some insights key they pieces said it time call on what

you the think more of color the hearing? moment? to and the little us Because of world important at people... this Just saying vendors some Could are many is is there? so just a Nation what you those I are What bit Live give

Bill Hornbuckle

is I perspective. obviously, Yes. this mean, coming from our

want I this. don't So, speak I say Live Nation AEG, would but for or

a to here, a show you entertainment we events, first we I'll proper something to remember, mindset protections, showrooms can open open can scale smaller et relatively provide of the intimate cetera. with we're one Obviously, example our we not Vegas. get that will like the small get person when or and that's then have square fortunate space and begins little some the when million it's simplistically, side, give you relates Top Las big differently easy, but a feet Cirque in to to bit convention that X.X Carrot it we on and be of simple have a and As

all, out unique. And so not more than most, things stretch if our ability to is

And able so be least will pig, of an And at host yes, host a but to a we we'll be bit space the it event. can event.

so we how unique have that we have we're we do but up capacity. to different protocols can organizations, do already and that. going protocols, health set definitive, And to get safety we all and the not to planners various Until meeting as with be

hockey, but to obviously, this Raiders before with few is Vegas As Raiders started will for recover. it and us backyard, games the talking seen this long-term about our see we stadium our people. what and we with relates you how with this a may remember year the sports Las were in we've Long-term,

be bridge XX,XXX. Luxor, our special, a and party. to pre-game game on over if won't walk A can be you because go put able view that be back environment fans, large were creating outside see the real were which Mandalay hold, general pretty we the of to tailgate simple and come fortunate that it to to example, We it's to it enough

probably like that see stuff spring. so And we'll

MMA, We an can NBA, and events, leagues think sporting have boxing, been activities and I we some cetera, dialogue NHL, around host of et ongoing other with televised-only that.

diligently anytime a is idea concert year T-Mobile going do in get working I to the with XX,XXX are those that but probably for this to people stretch. a that, think we're We

Shaun Kelley

I one and that for is MGP covenant the so That's the this in helpful. technical, came pledged my collateral just, the on shares through a then bit as waiver follow-up, as think apologies, And but some little yesterday my of were credit facility.

so in ability And restrictions down the future? unit sell to if MGP wondering either maybe could was you that means specifically, I just elaborate OP the what shares the on repurchase of kind or for

Corey Sanders

to though, restrictions did Corey. revolver to the ability our Yes. did to pledge for Shaun, under units collateral Yes, our our facility. units, as We agree credit not any cash. it’s monetize on OP we so agree

future So, example, of sales. ability pursue, $X.X not we billion limited for the are redemption up to other cash or to in our

There incremental the commitments to reduce of units we used amendment, period. as proceeds long it provide a – would to this under have certain falling XX%, be does sell waiver then that in as level the we're if in below

Shaun Kelley

that, Thanks for Great. Corey.

Operator

The ahead. next Please with question will come from go Instinet. Curtis Harry

Harry Curtis

first. ask Hi, chair such CapEx long a And now CEO you've for Bill. been to question a about that I the in period… wanted

Bill Hornbuckle

Thanks, Harry.

Harry Curtis

your as CapEx maybe projects core potential at And you opportunities? their can or not Grant returns look feel best XX in well. once maybe the this the you X down? on in globally how but What months, business and CapEx next do chime … settles are prioritize or as

Bill Hornbuckle

Bellagio opening reduced CapEx, up. and Maybe my that ongoing Look, think we've and things in There and essential do. we've things remarks be Grant half be they ought remodels, a year. going condition be to to this can room general our in to are seen others costs, to then we're like going that in simple clean just maintenance things the that to we maintain stores are think, want overview that going pre Corey be mentioned will I I – and to that clearly the

more of the We on disciplined will projects. some become

accomplished Domestically, of focused is just New will terms of focus around day-to-day CapEx the primary for what's be it Asia. more stuff. mindset a to real We with I become and margin in why be on think exception our to with York, going maybe the

And the government, around COVID-XX, which for. us but to and a ultimately, a and we're way time it's hopeful Grant putting this work be the think, magnificent renewal, in team our about then large through And And license all have job extent, and done would activity that the for so, good priority. can a to in tell, us, very we Macau there Asia frankly, stead Japan. with it's all a still

something our generate a mean, I talking doubt, needle. would at and EBITDA the of without chance in a company EBITDA XX-odd to percent put about we're move represents EBITDA. roughly total boost the the XX% in that to Japan terms range our percentage Asia

focused on we're So, that.

Corey Sanders

be To investment. open big. we there. everything in start the there's of main on on Bill's especially seeing – York, from New components if Grant, mentioned, know about environment, to benefits future a our Bill as increasing up think this And digital that. think, Asia. bit want little we as a will I point, don't still I growth you'll you talk Domestically, return And outside have technology focus, become our

Grant Bowie

important. what accommodation south coming on, us issue, we've is critical More I'll what We've the suites just important. got the said think for that's I've I really really and repeat – previously.

to we're is, have, the we of In terms don't kitty. allocation sake to prepared spending. existing want and capital those we also left actually of all we've pulling want in have We spend what reviewed back be items money to critically ones, the because the we want for on some

actually monies So, we would then we're reopened. make, some need adjustments and we when maybe to things. There some allocated be may food identified and we beverage have taking

then do we're So, rather back. spending back pulling and and than again, to it having come

plans said Chief we – that Executive And strategies to what different putting – to but need is the earlier to opportunities respond about the a that that about about are. discussed the be forward. we aside expectations renewal. Bill in develop, is have he for focus well, the also the is views. is be does what of funds And putting we're mindful all we And he we've we're to concession excited Reiterating obviously us position what as of all he have significant diversification and will

Bill Hornbuckle

the of in talking And this is dollars opportunity. we're was but then, some Harry, a real respect to it's reading things huge piece. I betting, not other Morgan Stanley's sports capital about, morning, just iGaming

it's think market I $XX whatever billion, real. is it $X.X – becoming billion the is

corner, Michigan iGaming, what we this alone, it's in New $XXX weeks million business us. is the is the the Jersey, did In around for we paced corner…. last Pennsylvania if of out month couple around

Corey Sanders

Colorado.

Bill Hornbuckle

later. and the things in does and of a couple it potentially and before corner …and not valuation, corner. something of unlocked without And it this, really because states hundreds but that's in our doubt, dollars, we Colorado not turn in been of be is around time. run what's I can COVID, our it million over make extensive a hundred the stress think, will but the is one of that'll value the we open – happening the than think well sooner given And capital of it

Harry Curtis

leading broad it I that. a satisfy appreciate question, this one Grant, leave can enough very at Chief Executive? the and more is that. I'll for to And maybe but do you

Grant Bowie

positioned made We're confident. in very what's very we the We're is clearly, of concessionaires all I necessary. think, are Macau, the I clearly, it and do will well that focus has clear. think This positive. company. are very Bill

keep we're as need everything to is, I by the people. think we saying do do right keep simple to need the better. to doing We – things We do doing have the just thing, well. I the thing

single think, during of a think think I I at. just that's It's always concessionaires demonstrated the Macau. commitment our guy day And that's and One ourselves We're I about people future true to what at and all we're confidence. good difficult a this not And building need we decision. Macau, time, on. all it's cumulative Macau effort. time, focus of the a have to the how

for hopefully then and flow. respect building We’re the rewards us, will

Harry Curtis

and Bill. Grant Thanks. Thanks,

Bill Hornbuckle

sir. Thanks,

Operator

from Barclays. ahead. with comes Please Felicia question next go Hendrix The

Felicia Hendrix

thanks Hi, so much.

know So you news, of selling there, now, to you assets stands make out Blackstone, of open Vegas M&A. talk Bill, would there's – about further are to assets? seen that acknowledging decision the you not be kind might We've buyers have there you Las a

Bill Hornbuckle

horizon. immediately on It's the not

not something plan. it's suspect, but we've to got in that our assets, always I open be You would strategic selling

We side got in lot are which but over go Springfield, today, the that other an We're opportunity. city in obviously of we center, time, not to way, of we've a front where ROFO looking have us. is given acquire the

Grant Bowie

we're Look, I or that we got get the could for good think position, in don't and think we today. value a really I MGM Bellagio

Bill Hornbuckle

Yes.

Grant Bowie

And build we'll up. back if business So opportune we'll that there's look that. for time, at an

Felicia Hendrix

Guangdong and Kong Hong And just recovery Grant, we the to your Kong in all to how of just and about Macau? adding thoughts that that ability important is that are, you you into Hong kind thanks. just to And and there? Okay, talked travel from are picture, watching about the about in quarantine had as thinking how

Grant Bowie

Executive Hong even you border. here the he in happening be is coming the and market. dialogue the acknowledged Bay be that's Even the know clear they I is sitting that it's the is via China Hong if We on are from not already we hoping a Zhuhai cannot lifted or Well, Guangdong pretty of Kong, to at important think that Macau, obviously and June of some Kong but know, Hong relaxation many Greater some Kong progressive will see always that as Xth come the Kong linked. earliest. up of Guangdong, side customers in there opening China it, requirements with quarantining and possibility, other our Area, Chief Hong feeder inextricably all until in an the in of

the still coming China, some that know date review. for in Kong We're opportunities Hong we be we multi-step. positive it'll see So, expected for up and somewhat May and may

the and once releasing then will of IDF And critical first objective quarantining the months out that's us system. ultimate comes really back. be weeks return is the to China point the in we The see coming and the removal that for obvious the the of the next

I have I'm steps. the timings. are sorry, So Those don't the Felicia, specific

they're travel. are here sitting take just us they're As earlier, of of positive, sure we to the customers, I it's confident can to that them. all make confident, to They're waiting safe said talking care that

been very that. at good communicating we've think I

And we're very all to get after time, – you to as it's anxious imagine. frankly, go. we're So started ready this can

Felicia Hendrix

Yes.

you. Thank Okay.

Operator

with from John come The will ahead. Decree next Union question Gaming. Please go

John Decree

the for my and everyone, question far. taking all thanks details Hi, so

in on slide if Act about one you've insight quantum you you, to give CARES what a what there might wanted to thoughts that your up. could deck what get just us for might back. payroll some for sized that kind some initial be as tax backs, too to you the of be possible and the some that Just and was wondering maybe that carry talked for Corey. me benefits if company? might early it little related of – I Is your I of means it carry meaningful but for those your Last

Bill Hornbuckle

a I'm each I'll projections our carry one through back the our numbers be them will not file on income could dependent federal in are. I our but on not XXXX and play where because number go which will That Yes. from all, good sure knowing obviously, XXXX. to are that quantify that five-year that, we'll where refund the on return, based be going be pretty would of tax

we'll able few it the haven't yet, – be months, over we'll quantified but We next to. hopefully,

benefit little the in since of bit a On benefits, XXXX, also tax limitation we we’ll our but more carrying expense of XXXX for expect interest deduction to see in that income most loss. be back

furlough two in on of There's the benefits. actually actually provisions. payroll One payment health is

We significant that now. had right we're a regulations receive credit. Those it. will right will we payment Actually We getting are receiving XX% that deduction that pretty receive now, component. on written a

XXXX the deferral the those there's of and deferred payments would to the portion, finally, XXXX. FICA employer of any then tax be of And

yet months. out We'll the some next try that and around So, amount put numbers there. get few that quantified the over haven't to we

John Decree

That's helpful. you. Thank I appreciate the color, Corey.

Unidentified Company Representative

the And please. question, take last we'll

Operator

be The last question Please Katz David Sure. will from Jefferies. go from ahead.

David Katz

business change. lay they the hoping some are you detail. the out question of ongoing could to you're for taking those and more appropriately which I at thrust Have ongoing talk my a net efforts Does bit you the what the still same – moment – where because there's Thank have about pre-crisis well. Look, all sort side-by-side? bigger? and of was a it the that day? as is, I a my Last. to that appreciate size it solve about, I that seriously, question. you bit is dissonance time, ultimately, talked of to suppose I reopening end positive of I be come costs had the may Is ultimately you hoping to for? And incremental one bear of At the

Bill Hornbuckle

the There talked be the me up. net Yes, some protocols they're can clearly answer it offset a the kick have extensive. going be about, wants then it cleaning off, costs, efficiency clean of simple could additional environment be would this given around a in altered. otherwise And that argue it and Corey to or room to is, we've room but positive. credits and course, is whether will Let idea that you with be to notion. it going therefore, a clean I to to are Protocol

clean guestroom I in. other would go And service pristine during in I'm the side and not argue other know of guest any would is room Bellagio, I let I my simply towels, or probably a attendant in my that that, to going stay, want room. I'm my personnel to if need which say, want unless when a I

first, pick service, full varying will, and be some, it there Bellagio beverage. see up, pick you'll a talking opportunities food all And like offsets, go, degree we're think and for pick restaurants, things opening you be if so though potentially won't restaurants, I of there'll for will even about up be

Corey the going protocols, until we the but, We moves we're terms a maybe prepared … in of in the why they that's bit the to then you I Corey, all be about said And around state of take by put costs. working comments, team difficult. but my diligently and we're And health in to structure, mind are it's weeks talking through get could some current of then we so, two in definitely of think offset kind his will

Corey Sanders

side we open and what the we'll the way, are have a ramp them. would up to those say, that. end David, of We we properties Yes. And is by costs What do decent the on I be. better understanding of think going

think to – more in able occupancies. We particular, we that. to low offset most should we be of component fairly will we costs manage And should be of these able at

big determine open of will that. properties component be the that the be town we and a for – demand as will So, that,

Aaron Fischer

it’s Aaron. Yes, David,

to Just clarify something.

in disclosures be giving are lower not but that occupancy our up. our we're recognize we ramp terms obviously, So, utilization points, break-even naturally, we to as rates of going and

aiming cost-cutting points. what do through we're the So, lower to our break-even is

David Katz

much. Thank you it. appreciate I very it. Got

Bill Hornbuckle

I if couple could offer Maybe time Okay. and appreciate just of up a closing thoughts I everyone's today.

doing and it in is First both our getting for priority employees guests one. and and me manner, company, these our up foremost, a for and operating, safe properties the

we're in Nevada. we again, the think, organization the do And environment. candidly, the I positioned Well, particularly responsibility, We to understand understand that. well. ideally feel here Southern we

employer largest state. is than we the and industry than most Our industry to are California. And are in important this more the state in autos any Michigan, largest country, is state the payer in to more the tax tech to

So, you are we but keenly on safely. we reopen, I can will to focused assure it only do wanting

as before. and be never we more a experienced Obviously, on make forward, will mine. you and know We are We are our do this it this effective to efficient to commitment going out, how organization moving there going this and can be things better we we'll do be. have as as we've that to roll that

we'll of collectively, the thing. out come I this with assure downs, a more fully some organization side we’ll can and ups other you end up but we when have So, of efficient

going our it, long-term to of all lose Despite we of not track are strategic initiatives.

and hopefully in strategies timeframe. fall fortress unfold today, real our Sports and There in keenly balance in this estate are to particularly again, begin will iGaming a and money, sheet on real We this yet particularly focused, critical. creating Sports are sooner. iGaming And is

win asset-light push a in in Board it's there. to our present license if of meaningfully fortunate is forward by notion The my Japan know enough in moving is desire, goal, my both be ever we're Macau larger and and hopefully and critical. ultimately, and to involved my I more And Asia, shared

Everyone next you you. be your thank And to talking So, again to I look and you forward well. I be for Thank safe trip. time.

Operator

you you, today's has sir. The concluded. now presentation. attending thank for Thank And conference

You may now disconnect.

MGM Resorts International (MGM) 30 Apr 202020 Q1 Earnings call transcript