MGM Resorts International Reports Second Quarter 2021 Financial And Operating Results
MGM Resorts International (NYSE: MGM) reported strong financial results for Q2 2021, with consolidated net revenues of $2.3 billion, a 683% increase year-over-year, driven by increased travel demand and easing pandemic-related restrictions. The company achieved an operating income of $264 million, recovering from a $1 billion loss in the prior year. Notable highlights include record EBITDAR margins for both Las Vegas and Regional operations. MGM also entered strategic transactions, including a $4.4 billion cash agreement with VICI Properties, enhancing liquidity and positioning for future growth.
- Consolidated net revenues of $2.3 billion, a 683% increase YoY.
- Operating income of $264 million compared to a $1 billion loss last year.
- Record Adjusted Property EBITDAR margins for U.S. operations.
- Strategic agreement with VICI Properties for $4.4 billion in cash.
- Las Vegas Strip net revenues decreased by 31% compared to Q2 2019.
- MGM China net revenues down 56% compared to Q2 2019.
LAS VEGAS, Aug. 4, 2021 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended June 30, 2021.
"We delivered a strong second quarter, driven by robust demand and productivity efforts across our domestic portfolio. Our Las Vegas Strip and Regional Operations Adjusted Property EBITDAR margins reached all-time records and our Regional Operations also delivered an all-time quarterly record in Adjusted Property EBITDAR. Our U.S. sports betting and iGaming venture, BetMGM, continues to outperform as the number two operator nationwide," said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. "We also recently announced several strategic transactions that furthered our goal of becoming a more streamlined, focused organization with stronger liquidity. We continued to advance that goal today with our announced agreement with VICI and MGM Growth Properties to monetize our MGP Operating Partnership units for
"Our robust liquidity position provides us with significant flexibility as our business continues to improve and stabilize. As such, we have returned capital to shareholders through share repurchases during the second quarter and expect to remain programmatic in our approach through the rest of the year," said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts. "As we navigate future uses of our capital, we will remain disciplined in maintaining a strong balance sheet, pursuing targeted growth opportunities and returning cash to shareholders."
Second Quarter 2021 Financial Highlights:
Consolidated Results
- Consolidated net revenues of
$2.3 billion , an increase of683% compared to the prior year quarter. While the current quarter benefited from the easing of operational and capacity restrictions and an increase in travel, the prior year quarter was negatively affected by temporary closures at our properties due to the COVID-19 pandemic; - Consolidated operating income was
$264 million compared to consolidated operating loss of$1.0 billion in the prior year quarter; - Net income attributable to MGM Resorts of
$105 million compared to net loss attributable to MGM Resorts of$857 million in the prior year quarter; - Diluted earnings per share of
$0.14 in the current quarter compared to diluted loss per share of$1.67 in the prior year quarter; - Adjusted diluted earnings per share ("Adjusted EPS")(1) was a loss per share of
$0.13 in the current quarter compared to an Adjusted EPS loss per share of$1.52 in the prior year quarter; and - Consolidated Adjusted EBITDAR(2) of
$617 million in the current quarter.
Financial Position & Liquidity
- Cash and cash equivalents balance as of June 30, 2021 was
$5.6 billion , which included$298 million at the MGP Operating Partnership and$331 million at MGM China; - Total liquidity at June 30, 2021 was
$9.9 billion , which included$1.6 billion at the MGP Operating Partnership and$1.8 billion at MGM China, which was comprised of cash and cash equivalents and capacity under the revolving credit facilities at the Company, MGP Operating Partnership and MGM China; and - At June 30, 2021, principal amount of indebtedness was
$12.7 billion , including$4.2 billion at the MGP Operating Partnership and$3.0 billion at MGM China.
Las Vegas Strip Resorts
- Net revenues of
$1.0 billion , an increase of566% compared to the prior year quarter and a decrease of31% compared to the second quarter of 2019. While the current quarter benefited from the easing of operational and capacity restrictions and an increase in travel, the prior year quarter was negatively affected by temporary property closures; - Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) of
$1 billion , an increase of613% compared to the prior year quarter and a decrease of32% compared to the second quarter of 2019; - Adjusted Property EBITDAR(2) of
$397 million compared to a loss of$104 million in the prior year quarter, and a decrease of5% compared to the second quarter of 2019; - Adjusted Property EBITDAR margin(2) of
39.5% in the current quarter, an increase of 1,097 basis points compared to the second quarter of 2019 due primarily to realized benefits of the Company's cost savings initiatives; and - Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) of
$403 million compared to a loss of$112 million in the prior year quarter, and a decrease of6% compared to the second quarter of 2019.
Regional Operations
- Net revenues of
$856 million , an increase of859% compared to the prior year quarter and a decrease of6% compared to the second quarter of 2019. While the current quarter benefited from the easing of operational and capacity restrictions and an increase in travel, the prior year quarter was negatively affected by temporary property closures; - Adjusted Property EBITDAR of
$318 million compared to a loss of$112 million in the prior year quarter, and an increase of22% compared to the second quarter of 2019; and - Adjusted Property EBITDAR margin of
37% in the current quarter, an increase of 855 basis points compared to the second quarter of 2019 due primarily to realized benefits of the Company's costs savings initiatives.
MGM China
- Net revenues of
$311 million , an increase of836% compared to the prior year quarter and a decrease of56% compared to the second quarter of 2019. The prior year quarter was more significantly impacted by travel and entry restrictions in Macau as well as other operational restrictions related to the pandemic than in the current quarter; - VIP Table Games Hold Adjusted MGM China Net Revenues(3) of
$317 million , an increase of895% compared to the prior year quarter and a decrease of57% compared to the second quarter of 2019; - Adjusted Property EBITDAR of
$9 million compared to a loss of$116 million in the prior year quarter, and a decrease of95% compared to the second quarter of 2019; and - VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR(2) of
$13 million compared to a loss of$118 million in the prior year quarter, and a decrease of93% compared to the second quarter of 2019.
Recent Developments
In August 2021, the Company entered into an agreement with VICI Properties, Inc. ("VICI") and MGP whereby VICI will acquire MGP. Pursuant to the agreement, MGP Class A shareholders will receive 1.366x shares of newly issued VICI stock in exchange for each Class A share of MGP. The fixed exchange ratio represents an agreed upon price of
In June 2021, the Company entered into an agreement pursuant to which the Company will purchase the
In May 2021, the Company entered into an agreement with MGP whereby MGP will acquire the real estate assets of MGM Springfield from the Company for
Adjusted Diluted Earnings Per Share
The following table reconciles diluted earnings (loss) per share ("EPS") to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):
Three Months Ended June 30, | 2021 | 2020 | ||||||||
Diluted earnings (loss) per share | $ | 0.14 | $ | (1.67) | ||||||
Property transactions, net | (0.06) | 0.05 | ||||||||
October 1 litigation settlement | — | 0.10 | ||||||||
Restructuring | — | 0.04 | ||||||||
Non-operating items: | ||||||||||
Gain related to equity instrument | (0.17) | — | ||||||||
Change in fair value of MGP swaps | 0.01 | — | ||||||||
Unconsolidated affiliate items: | ||||||||||
Gain related to sale of Harmon land | (0.10) | — | ||||||||
Income tax impact on net income adjustments (1) | 0.05 | (0.04) | ||||||||
Adjusted diluted loss per share | $ | (0.13) | $ | (1.52) | ||||||
(1) | The income tax impact includes current and deferred income tax expense based upon the nature of the adjustment and the jurisdiction in which it occurs. |
Las Vegas Strip Resorts
Casino revenue was
The following table shows key gaming statistics for Las Vegas Strip Resorts:
Three Months Ended June 30, | 2021 | 2020 | ||||
(Dollars in millions) | ||||||
Table Games Drop | $ | 777 | $ | 149 | ||
Table Games Win | $ | 173 | $ | 48 | ||
Table Games Win % | ||||||
Slots Handle | $ | 3,641 | $ | 524 | ||
Slots Win | $ | 351 | $ | 49 | ||
Slots Win % | ||||||
Rooms revenue was
The following table shows key hotel statistics for Las Vegas Strip Resorts:
Three Months Ended June 30, | 2021 | 2020 | ||||
Occupancy %(1) | ||||||
Average Daily Rate (ADR) | $ | 149 | $ | 154 | ||
Revenue per Available Room (REVPAR)(1) | $ | 115 | $ | 66 | ||
(1) | Rooms that were out of service during the three months ended June 30, 2020 due to the COVID-19 pandemic were excluded from the available room count when calculating hotel occupancy and REVPAR. |
Regional Operations
Casino revenue was
The following table shows key gaming statistics for Regional Operations:
Three Months Ended June 30, | 2021 | 2020 | ||||
(Dollars in millions) | ||||||
Table Games Drop | $ | 972 | $ | 58 | ||
Table Games Win | $ | 203 | $ | 13 | ||
Table Games Win % | ||||||
Slots Handle | $ | 6,514 | $ | 485 | ||
Slots Win | $ | 622 | $ | 48 | ||
Slots Win % | ||||||
MGM China
Key second quarter results for MGM China include:
- Net revenues of
$311 million , an increase of836% compared to the prior year quarter and a decrease of56% compared to the second quarter of 2019; - Main floor table games win of
$252 million compared to$12 million , an increase of 2,093% compared to the prior year quarter; - VIP table games win of
$71 million compared to$12 million , an increase of505% compared to the prior year quarter; and - Adjusted Property EBITDAR of
$9 million compared to a loss of$116 million in the prior year quarter. License fee expense was$5 million in the current quarter and$1 million in the prior year quarter.
The following table shows key gaming statistics for MGM China:
Three Months Ended June 30, | 2021 | 2020 | ||||
(Dollars in millions) | ||||||
VIP Table Games Turnover | $ | 2,590 | $ | 450 | ||
VIP Table Games Win | $ | 71 | $ | 12 | ||
VIP Table Games Win % | ||||||
Main Floor Table Games Drop | $ | 1,258 | $ | 66 | ||
Main floor Table Games Win | $ | 252 | $ | 12 | ||
Main Floor Table Games Win % | ||||||
Corporate Expense
Corporate expense, including share-based compensation for corporate employees, decreased to
Unconsolidated Affiliates
The following table summarizes information related to the Company's share of operating income (loss) from unconsolidated affiliates:
Three Months Ended June 30, | 2021 | 2020 | ||||||
(In thousands) | ||||||||
CityCenter | $ | 90,212 | $ | (39,113) | ||||
MGP BREIT Venture | 38,954 | 38,861 | ||||||
BetMGM | (45,979) | (5,241) | ||||||
Other | 151 | (2,860) | ||||||
$ | 83,338 | $ | (8,353) | |||||
On June 8, 2021, CityCenter Holdings, LLC ("CityCenter") closed the sale of its Harmon land for
For the three months ended June 30, 2021, CityCenter's net income was
MGM Growth Properties
During the second quarter of 2021, the Company made rent payments to MGM Growth Properties Operating Partnership LP ("MGP Operating Partnership") in the amount of
MGM Resorts Dividend and Share Repurchases
On August 4, 2021, the Company's Board of Directors approved a quarterly dividend of
During the second quarter of 2021, the Company repurchased approximately 5.6 million shares of its common stock at an average price of
Conference Call Details
MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today, which will include a brief discussion of the results followed by a question and answer session. In addition, supplemental slides will be posted prior to the start of the call on MGM's Investor Relations website at http://investors.mgmresorts.com.
The call will be accessible via the Internet through https://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 9674546.
A replay of the call will be available through August 11, 2021. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10157792. The call will be archived at https://investors.mgmresorts.com.
1. "Adjusted EPS" is diluted earnings or loss per share adjusted to exclude preopening and start-up expenses, property transactions, net, gain on REIT transactions, net, October 1 litigation settlement, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 plan), gain related to equity instrument, foreign currency gain or loss related to MGM China's U.S. dollar-denominated debt, mark-to-market adjustments related to MGP's unhedged interest rate swaps, gain related to CityCenter's sale of Harmon land recorded within income from unconsolidated affiliates, and mark-to-market adjustments related to CityCenter's unhedged interest rate swaps recorded within non-operating items from unconsolidated affiliates.
Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing period-to-period comparisons of the results of the Company's continuing operations to assist investors in reviewing the Company's operating performance over time. Management believes that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company's earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, such as restructuring costs and items further discussed in footnote 2 below, may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company's performance. In addition, Adjusted EPS may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. A reconciliation of Adjusted EPS to diluted earnings per share can be found under "Adjusted Diluted Earnings Per Share" included in this release.
2. "Adjusted EBITDAR" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, gain on REIT transactions, net, CEO transition expense, October 1 litigation settlement, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 plan), gain related to CityCenter's sale of Harmon land recorded within income from unconsolidated affiliates, rent expense associated with triple net operating and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, and property transactions, net.
"Adjusted Property EBITDAR" is the Company's reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. Adjusted Property EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, gain on REIT transactions, net, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 plan), rent expense associated with triple net operating and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, property transactions, net, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment, and rent expense related to the master lease with MGM Growth Properties that eliminates in consolidation. The Company manages capital allocation, tax planning, stock compensation, and financing decisions at the corporate level. "Adjusted Property EBITDAR margin" is Adjusted Property EBITDAR divided by related segment net revenues.
"Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR" and "VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR" are supplemental non-GAAP financial measures, that, in addition to the reasons described above for the presentation of Adjusted Property EBITDAR, are presented to adjust for the impact of certain variances in table games and VIP table games' win percentages compared to the mid-point of the expected ranges. Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR is calculated by applying a win percentage of
Adjusted EBITDAR information is a valuation metric, should not be used as an operating metric, and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is widely used by analysts, lenders, financial institutions, and investors as a principal basis for the valuation of gaming companies. Management believes that while items excluded from Adjusted EBITDAR may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends. Also, management believes excluded items may not relate specifically to current trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company's resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, management excludes rent expense associated with triple net operating leases and ground leases. Management believes excluding rent expense associated with triple net operating leases and ground leases provides useful information to analysts, lenders, financial institutions, and investors when valuing the Company, as well as comparing the Company's results to other gaming companies, without regard to differences in capital structure and leasing arrangements since the operations of other gaming companies may or may not include triple net operating leases or ground leases. However, as discussed herein, Adjusted EBITDAR should not be viewed as a measure of overall operating performance, considered in isolation, or as an alternative to net income, because this measure is not presented on a GAAP basis and excludes certain expenses, including the rent expense associated with the Company's triple net operating and ground leases, and are provided for the limited purposes discussed herein.
Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR should not be construed as alternatives to operating income or net income, as indicators of the Company's performance; or as alternatives to cash flows from operating activities, as measures 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, real estate triple net lease and ground lease payments, and debt principal repayments, which are not reflected in Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR information may calculate Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR in a different manner and such differences may be material.
A reconciliation of GAAP net income (loss) to Adjusted EBITDAR is included in the financial schedules in this release.
3. "Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues" and "VIP Table Games Hold Adjusted MGM China Net Revenues" are additional supplemental non-GAAP financial measures that are presented to adjust Las Vegas Strip Resorts net revenues and MGM China net revenues for the impact of certain variances in table games and VIP table games' win percentages compared to the mid-point of the expected ranges, as described in footnote 2 above. Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues are also adjusted for the VIP commissions, discounts and other incentives that would have been incurred or avoided when applying the win percentages noted in footnote 2 above to the respective gaming volumes. Management believes Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues present consistent measures in providing period-to-period comparisons and are useful measures in assisting investors evaluating the Company's operating performance. Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues should not be construed as alternatives to GAAP net revenues, as indicators of the Company's performance, or as any other measure determined in accordance with generally accepted accounting principles. Reconciliations of GAAP net revenues to Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues are included in the financial schedules in this release.
4. REVPAR is hotel revenue per available room.
5. CityCenter non-GAAP Measure
"Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 plan) and property transactions, net. Management utilizes Adjusted EBITDA as the primary profit measure for CityCenter. Adjusted EBITDA is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures. Management believes that while certain items excluded from Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluating CityCenter's earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, such as restructuring costs and items further discussed above, may not relate specifically to current operating trends or be indicative of future results. Adjusted EBITDA should not be construed as alternatives to operating income or net income, as indicators of CityCenter's performance; or as alternatives to cash flows from operating activities, as a measure of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. A reconciliation of GAAP net income (loss) to Adjusted EBITDA is included in the financial schedules in this release.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram.
Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the closing of its recently announced transactions and any benefits expected to be received from such transactions, future results, including the continued impact of COVID-19 on its results of operations and the duration of such impact, expectations regarding the benefits to be achieved from the changes to the Company's operating model (including any projected cost savings), expectations regarding the Company's liquidity position, the Company's ability to execute on its strategic plans, including the development of an integrated resort in Japan and positioning BetMGM as a leader in sports betting and iGaming, and the Company's ability to return capital to shareholders (including the timing and amount of any share repurchases or dividends). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the continued impact of the COVID-19 pandemic on the Company's business, the effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.
MGM RESORTS CONTACTS:
Investment Community | |
CATHERINE PARK | |
Executive Director of Investor Relations | |
(702) 693-8711 or cpark@mgmresorts.com | |
News Media | |
BRIAN AHERN | |
Director of Communications | |
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | |||||||||||||||
Casino | $ | 1,336,124 | $ | 163,649 | $ | 2,434,757 | $ | 1,217,675 | |||||||
Rooms | 365,028 | 31,623 | 563,447 | 465,574 | |||||||||||
Food and beverage | 302,666 | 29,771 | 460,078 | 426,480 | |||||||||||
Entertainment, retail and other | 189,011 | 48,569 | 324,233 | 318,514 | |||||||||||
Reimbursed costs | 75,133 | 16,197 | 133,194 | 114,383 | |||||||||||
2,267,962 | 289,809 | 3,915,709 | 2,542,626 | ||||||||||||
Expenses: | |||||||||||||||
Casino | 616,903 | 200,393 | 1,168,808 | 829,063 | |||||||||||
Rooms | 137,287 | 41,251 | 241,500 | 213,860 | |||||||||||
Food and beverage | 214,159 | 60,306 | 349,386 | 399,942 | |||||||||||
Entertainment, retail and other | 102,170 | 56,223 | 180,551 | 255,286 | |||||||||||
Reimbursed costs | 75,133 | 16,197 | 133,194 | 114,383 | |||||||||||
General and administrative | 590,209 | 473,564 | 1,136,616 | 1,047,870 | |||||||||||
Corporate expense | 96,870 | 142,578 | 174,907 | 286,386 | |||||||||||
Preopening and start-up expenses | 90 | (82) | 95 | 40 | |||||||||||
Property transactions, net | (28,906) | 26,349 | (2,835) | 81,324 | |||||||||||
Gain on REIT transactions, net | - | - | - | (1,491,945) | |||||||||||
Depreciation and amortization | 283,625 | 299,206 | 574,176 | 617,496 | |||||||||||
2,087,540 | 1,315,985 | 3,956,398 | 2,353,705 | ||||||||||||
Income (loss) from unconsolidated affiliates | 83,338 | (8,353) | 57,759 | 27,395 | |||||||||||
Operating income (loss) | 263,760 | (1,034,529) | 17,070 | 216,316 | |||||||||||
Non-operating income (expense): | |||||||||||||||
Interest expense, net of amounts capitalized | (202,772) | (156,756) | (398,067) | (313,893) | |||||||||||
Non-operating items from unconsolidated affiliates | (23,216) | (23,761) | (44,052) | (56,382) | |||||||||||
Other, net | 87,358 | 8,321 | 119,543 | (115,943) | |||||||||||
(138,630) | (172,196) | (322,576) | (486,218) | ||||||||||||
Income (loss) before income taxes | 125,130 | (1,206,725) | (305,506) | (269,902) | |||||||||||
Benefit (provision) for income taxes | (34,826) | 270,238 | 59,872 | 7,934 | |||||||||||
Net income (loss) | 90,304 | (936,487) | (245,634) | (261,968) | |||||||||||
Less: Net loss attributable to noncontrolling interests | 14,449 | 79,230 | 18,558 | 211,580 | |||||||||||
Net income (loss) attributable to MGM Resorts International | $ | 104,753 | $ | (857,257) | $ | (227,076) | $ | (50,388) | |||||||
Earnings (loss) per share: | |||||||||||||||
Basic | $ | 0.14 | $ | (1.67) | $ | (0.56) | $ | (0.02) | |||||||
Diluted | $ | 0.14 | $ | (1.67) | $ | (0.56) | $ | (0.02) | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 489,459 | 493,456 | 491,785 | 494,434 | |||||||||||
Diluted | 495,302 | 493,456 | 491,785 | 494,434 | |||||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(In thousands, except share data) | ||||||||||
(Unaudited) | ||||||||||
June 30, | December 31, | |||||||||
2021 | 2020 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 5,626,232 | $ | 5,101,637 | ||||||
Accounts receivable, net | 430,841 | 316,502 | ||||||||
Inventories | 79,019 | 88,323 | ||||||||
Income tax receivable | 226,193 | 243,415 | ||||||||
Prepaid expenses and other | 212,258 | 200,782 | ||||||||
Total current assets | 6,574,543 | 5,950,659 | ||||||||
Property and equipment, net | 14,344,684 | 14,632,091 | ||||||||
Other assets: | ||||||||||
Investments in and advances to unconsolidated affiliates | 1,484,717 | 1,447,043 | ||||||||
Goodwill | 2,089,212 | 2,091,278 | ||||||||
Other intangible assets, net | 3,545,815 | 3,643,748 | ||||||||
Operating lease right-of-use assets, net | 8,208,972 | 8,286,694 | ||||||||
Other long-term assets, net | 528,435 | 443,421 | ||||||||
Total other assets | 15,857,151 | 15,912,184 | ||||||||
$ | 36,776,378 | $ | 36,494,934 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 210,654 | $ | 142,523 | ||||||
Construction payable | 21,740 | 30,149 | ||||||||
Accrued interest on long-term debt | 161,568 | 138,832 | ||||||||
Other accrued liabilities | 1,642,409 | 1,545,079 | ||||||||
Total current liabilities | 2,036,371 | 1,856,583 | ||||||||
Deferred income taxes, net | 2,170,945 | 2,153,016 | ||||||||
Long-term debt, net | 12,574,939 | 12,376,684 | ||||||||
Other long-term obligations | 375,615 | 472,084 | ||||||||
Operating lease liabilities | 8,403,862 | 8,390,117 | ||||||||
Redeemable noncontrolling interest | 110,524 | 66,542 | ||||||||
Stockholders' equity: | ||||||||||
Common stock, $.01 par value: authorized 1,000,000,000 shares, | ||||||||||
issued and outstanding 486,529,984 and 494,317,865 shares | 4,865 | 4,943 | ||||||||
Capital in excess of par value | 3,335,015 | 3,439,453 | ||||||||
Retained earnings | 2,861,474 | 3,091,007 | ||||||||
Accumulated other comprehensive loss | (21,173) | (30,677) | ||||||||
Total MGM Resorts International stockholders' equity | 6,180,181 | 6,504,726 | ||||||||
Noncontrolling interests | 4,923,941 | 4,675,182 | ||||||||
Total stockholders' equity | 11,104,122 | 11,179,908 | ||||||||
$ | 36,776,378 | $ | 36,494,934 | |||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||||||||
SUPPLEMENTAL DATA - NET REVENUES | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Las Vegas Strip Resorts | $ | 1,004,568 | $ | 150,811 | $ | 1,549,532 | $ | 1,284,617 | ||||||||
Regional Operations | 856,282 | 89,264 | 1,567,633 | 814,924 | ||||||||||||
MGM China | 310,631 | 33,198 | 606,985 | 305,085 | ||||||||||||
Management and other operations | 96,481 | 16,536 | 191,559 | 138,000 | ||||||||||||
$ | 2,267,962 | $ | 289,809 | $ | 3,915,709 | $ | 2,542,626 | |||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||||||||
SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDAR and ADJUSTED EBITDAR | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Las Vegas Strip Resorts | $ | 396,805 | $ | (104,447) | $ | 504,924 | $ | 163,152 | ||||||||
Regional Operations | 318,348 | (112,085) | 560,330 | 39,635 | ||||||||||||
MGM China | 8,581 | (116,288) | 13,356 | (138,278) | ||||||||||||
Unconsolidated affiliates (1) | (8,082) | (49,302) | (75,333) | (37,068) | ||||||||||||
Management and other operations | 1,880 | (15,984) | 15,466 | (22,846) | ||||||||||||
Stock compensation | (10,509) | (14,735) | (26,538) | (31,666) | ||||||||||||
Corporate | (90,266) | (79,321) | (157,563) | (169,999) | ||||||||||||
$ | 616,757 | $ | 834,642 | |||||||||||||
(1) Represents the Company's share of operating income (loss) excluding investments in real estate ventures, adjusted for the effect of certain basis differences and excluding impact of gain on sale of Harmon land. | ||||||||||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO ADJUSTED EBITDAR | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) attributable to MGM Resorts International | $ | 104,753 | $ | (857,257) | $ | (227,076) | $ | (50,388) | ||||||||
Plus: Net loss attributable to noncontrolling interests | (14,449) | (79,230) | (18,558) | (211,580) | ||||||||||||
Net income (loss) | 90,304 | (936,487) | (245,634) | (261,968) | ||||||||||||
(Benefit) provision for income taxes | 34,826 | (270,238) | (59,872) | (7,934) | ||||||||||||
Income (loss) before income taxes | 125,130 | (1,206,725) | (305,506) | (269,902) | ||||||||||||
Non-operating (income) expense: | ||||||||||||||||
Interest expense, net of amounts capitalized | 202,772 | 156,756 | 398,067 | 313,893 | ||||||||||||
Other, net | (64,142) | 15,440 | (75,491) | 172,325 | ||||||||||||
138,630 | 172,196 | 322,576 | 486,218 | |||||||||||||
Operating income (loss) | 263,760 | (1,034,529) | 17,070 | 216,316 | ||||||||||||
Preopening and start-up expenses | 90 | (82) | 95 | 40 | ||||||||||||
Property transactions, net | (28,906) | 26,349 | (2,835) | 81,324 | ||||||||||||
Gain on REIT transactions, net | - | - | - | (1,491,945) | ||||||||||||
Depreciation and amortization | 283,625 | 299,206 | 574,176 | 617,496 | ||||||||||||
CEO transition expense | - | - | - | 44,401 | ||||||||||||
October 1 litigation settlement | - | 49,000 | - | 49,000 | ||||||||||||
Restructuring | - | 19,882 | - | 19,882 | ||||||||||||
Triple net operating lease and ground lease rent expense | 189,609 | 189,567 | 379,229 | 331,485 | ||||||||||||
Gain related to sale of Harmon land - unconsolidated affiliate | (49,755) | - | (49,755) | - | ||||||||||||
Income from unconsolidated affiliates related to real estate ventures | (41,666) | (41,555) | (83,338) | (65,069) | ||||||||||||
Adjusted EBITDAR | $ | 616,757 | $ | 834,642 | ||||||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATIONS OF LAS VEGAS STRIP RESORTS NET REVENUES AND LAS VEGAS STRIP RESORTS ADJUSTED PROPERTY EBITDAR TO TABLE GAMES HOLD ADJUSTED | ||||||||||||||||
LAS VEGAS STRIP RESORTS NET REVENUES AND TABLE GAMES HOLD ADJUSTED LAS VEGAS STRIP RESORTS ADJUSTED PROPERTY EBITDAR | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Las Vegas Strip Resorts net revenues | $ | 1,004,568 | $ | 150,811 | $ | 1,549,532 | $ | 1,284,617 | ||||||||
Hold adjustment (1) | 6,985 | (9,015) | 5,914 | (2,289) | ||||||||||||
Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues | $ | 1,011,553 | $ | 141,796 | $ | 1,555,446 | $ | 1,282,328 | ||||||||
Las Vegas Strip Resorts Adjusted Property EBITDAR | $ | 396,805 | $ | (104,447) | $ | 504,924 | $ | 163,152 | ||||||||
Hold adjustment (2) | 5,967 | (7,722) | 5,022 | (2,024) | ||||||||||||
Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR | $ | 402,772 | $ | (112,169) | $ | 509,946 | $ | 161,128 | ||||||||
(1) For the Las Vegas Strip Resorts, hold adjustment represents the estimated incremental table games win or loss had the Company's win percentage equaled the mid-point of the expected normal range of | ||||||||||||||||
(2) These amounts include estimated incremental expenses (gaming taxes and bad debt expense) that would have been incurred or avoided on the incremental table games win or loss calculated in (1) above. | ||||||||||||||||
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATIONS OF MGM CHINA NET REVENUES AND MGM CHINA ADJUSTED PROPERTY EBITDAR TO VIP TABLE GAMES HOLD ADJUSTED MGM CHINA NET REVENUES | ||||||||||||||||
AND VIP TABLE GAMES HOLD ADJUSTED MGM CHINA ADJUSTED PROPERTY EBITDAR | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
MGM China net revenues | $ | 310,631 | $ | 33,198 | $ | 606,985 | $ | 305,085 | ||||||||
Hold adjustment (3) | 6,470 | (1,341) | 3,729 | 1,561 | ||||||||||||
VIP Table Games Hold Adjusted MGM China Net Revenues | $ | 317,101 | $ | 31,857 | $ | 610,714 | $ | 306,646 | ||||||||
MGM China Adjusted Property EBITDAR | $ | 8,581 | $ | (116,288) | $ | 13,356 | $ | (138,278) | ||||||||
Hold adjustment (4) | 4,188 | (1,778) | 4,480 | 3,498 | ||||||||||||
VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR | $ | 12,769 | $ | (118,066) | $ | 17,836 | $ | (134,780) | ||||||||
(3) For MGM China, hold adjustment represents the estimated incremental VIP table games win or loss related to VIP Rolling Chip volume play had the Company's win percentage equaled the mid-point of the expected normal range of | ||||||||||||||||
(4) These amounts include estimated incremental expenses (gaming taxes and bad debt expense) that would have been incurred or avoided on the incremental VIP table games win or loss calculated in (3) above. |
CITYCENTER HOLDINGS, LLC | ||||||||||||||||||
SUPPLEMENTAL DATA - NET REVENUES AND ADJUSTED EBITDA | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||
Net revenues | $ | 259,482 | $ | 3,185 | $ | 393,569 | $ | 268,316 | ||||||||||
Adjusted EBITDA | $ | 119,948 | $ | (37,422) | $ | 153,193 | $ | 41,130 | ||||||||||
CITYCENTER HOLDINGS, LLC | ||||||||||||||||||
SUPPLEMENTAL DATA - HOTEL STATISTICS | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||
Occupancy % | N/A | |||||||||||||||||
ADR (1) | N/A | |||||||||||||||||
REVPAR (1) | N/A | |||||||||||||||||
(1) Rooms that were out of service, including full and midweek closures, during the three and six months ended June 30, 2020 due to the COVID-19 pandemic were excluded from the available room count when calculating hotel occupancy and REVPAR. | ||||||||||||||||||
CITYCENTER HOLDINGS, LLC | ||||||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||
Net income (loss) | $ | 78,901 | $ | (112,444) | $ | 43,505 | $ | (133,321) | ||||||||||
Non-operating (income) expense: | ||||||||||||||||||
Interest expense, net of amounts capitalized | 19,264 | 18,534 | 38,356 | 39,891 | ||||||||||||||
Other, net | (4,223) | (1,487) | (10,753) | 22,193 | ||||||||||||||
15,041 | 17,047 | 27,603 | 62,084 | |||||||||||||||
Operating income (loss) | 93,942 | (95,397) | 71,108 | (71,237) | ||||||||||||||
Property transactions, net | (30,213) | 20 | (30,057) | (2,478) | ||||||||||||||
Depreciation and amortization | 56,219 | 56,744 | 112,142 | 113,634 | ||||||||||||||
Restructuring | - | 1,211 | - | 1,211 | ||||||||||||||
Adjusted EBITDA | $ | 119,948 | $ | (37,422) | $ | 153,193 | $ | 41,130 | ||||||||||
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SOURCE MGM Resorts International
