January 31, 2002 - MGM MIRAGE today reported earnings before nonrecurring
expenses of 18 cents per diluted share for the 2001 fourth quarter, compared
with 43 cents per diluted share in the 2000 quarter. Consolidated net revenue
was down 13% to $896.3 million in the 2001 quarter compared with $1.03
billion in the comparable 2000 quarter. For the three months ended December
31, 2001, operating cash flow ("EBITDA") was $228.2 million when compared
with $317.3 million in the prior year's quarter. Net income before nonrecurring
expenses during the 2001 quarter was $27.9 million compared with $69.2
million in the prior year's quarter. Including nonrecurring expenses, the
Company reported net income of $23.7 million, or 15 cents per diluted share
compared with $68 million, or 42 cents per diluted share in the prior year's
quarter.
While these results reflect a substantial decline in business activity
at the Las Vegas resorts following September 11, 2001, the Company's hotel
and casino volumes steadily improved throughout the fourth quarter. During
the 2001 fourth quarter, weekend occupancy quickly rebounded to prior year
levels, while comparative trends improved during the mid-week timeframe.
Improved occupancy was achieved in part through a comprehensive marketing
strategy designed to maximize business volumes in our resorts. This recovery
in customer traffic enabled the Company to continue to improve its casino,
food and beverage and retail revenue.
"Revenue and cost strategies deployed in the weeks following September
11th have had the desired results. Our focus on rebuilding our business
while keeping a keen eye on costs was intended to return our operations
to previous levels as quickly as possible," said Terry Lanni, Chairman
and Chief Executive Officer of MGM MIRAGE. "While mindful of the challenges
inherent in a global economic slowdown and continued consumer sensitivity
to travel, current trends in our resorts indicate that casino and non-casino
business should continue to improve throughout 2002."
2001 Company Highlights
-
Revenues grew to $4.01 billion, up 29%
-
EBITDA increased 14% to $1.13 billion
-
Bellagio became the largest hotel ever awarded the AAA Five Diamond Award
-
Reduced debt by $422 million, bringing the total debt reduction to $949
million since the acquisition of Mirage Resorts
-
Successfully amended and extended our $800 million 364-Day Credit Facility
in April
-
Issued $400 million Senior Subordinated 10-year Notes at 8.375% in February
-
Extinguished the $1.3 billion Term Loan using free cash flow and bond proceeds
-
Purchased 2.2 million shares of Company common stock at an average cost
of $20.47 per share
-
Sold $27 million in non-strategic assets, bringing the total assets sold
since the Mirage acquisition to $256 million
-
Completed the integration of the Mirage acquisition
-
Awarded Internet Gaming license from the Isle of Man
-
Successfully opened the Mirage Events Center at The Mirage, ESPNZone and
Coyote Ugly at New YorkNew York, Kahunaville at Treasure Island, NOBHILL
and Pearl at the MGM Grand and Nectar and Light at Bellagio
-
Continued the development of our player affinity program scheduled to debut
in 2002
-
Construction of Borgata, our 50% owned resort, continues to be on time
and on budget
For the twelve months ended December 31, 2001, the Company reported earnings
before nonrecurring expenses of $1.37 per diluted share compared with $1.70
per diluted share in the prior year. Consolidated net revenue increased
29% from $3.11 billion in 2000 to $4.01 billion in 2001. EBITDA for the
twelve months ended December 31, 2001 was $1.13 billion, up 14% when compared
with $997.1 million in 2000. Net income before nonrecurring expenses was
$220.5 million during 2001 compared with $251.6 million in the prior year.
Including nonrecurring expenses, the Company reported net income of $169.8
million, or $1.06 per diluted share compared with $160.7 million, or $1.09
per diluted share in the prior year. The 2001 operating results reflect
the full year impact of the Mirage acquisition, which was completed in
May 2000.
"It now seems clear that no city in the United States has rebounded
as quickly and profoundly as Las Vegas. We own the resorts of choice in
that marketplace," said Jim Murren, President and CFO of MGM MIRAGE. "Our
financial condition is solid. We have dramatically reduced debt over the
past year and a half, including $100 million this month alone. Our cost
containment strategies are aimed at improving margins throughout the year.
We intend to utilize our free cash flow to further deleverage throughout
2002."
As of December 31, 2001, the Company had approximately $727 million
of available liquidity under its various lines of credit. The Company has
no public debt maturities until 2005.
"Our business has been far more resilient than anyone expected," said
Mr. Lanni. "We will continue to capitalize on our competitive advantages
and lead the recovery currently underway in Las Vegas, while not losing
sight of the myriad of growth opportunities afforded our Company both nationally
and internationally."
MGM MIRAGE AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(in thousands)
(Unaudited)
Three Months Ended Twelve Months
Ended
December 31, December 31, December 31, December 31,
2001 2000
2001 2000
Revenues:
Casino
$487,677 $574,139 $2,163,808
$1,785,978
Rooms
183,603 216,366
846,215 614,707
Food
and beverage 167,359
178,364 723,745
511,180
Entertainment,
retail and other 149,146
152,016 646,105
457,898
Income
from
unconsolidated
affiliate
6,547 10,314
36,816 22,068
994,332 1,131,199 4,416,689
3,391,831
Less:
promotional
allowances 98,051
101,202 407,071
286,343
896,281 1,029,997 4,009,618
3,105,488
Expenses:
Casino
267,457 292,932
1,127,065 859,305
Rooms
53,377 61,558
239,725 183,760
Food
and beverage 95,076
101,232 415,015
297,602
Entertainment,
retail and other 96,573
98,856 425,536
287,665
Provision
for
doubtful accounts 12,499
18,109 71,244
42,016
General
and
administrative 143,103
140,002 597,899
438,082
Preopening
expenses and other 2,035
1,816 5,106
5,624
Restructuring
costs 3,825
-- 23,721
23,519
Write-Downs
and
Impairments
571
-- 47,955
102,225
Depreciation
and
amortization 98,692
96,085 390,726
293,181
773,208 810,590
3,343,992 2,532,979
Operating Profit
123,073 219,407
665,626 572,509
Corporate Expense
8,117 10,158
37,724 34,793
Operating Income
114,956 209,249
627,902 537,716
Non-Operating Income
(Expense):
Interest
income 918
2,686 6,106
12,964
Interest expense,
net (75,281)
(98,520) (349,478) (272,856)
Interest
expense
from unconsolidated
affiliate
(378) (849)
(2,370) (2,043)
Other,
net (1,660)
(47) (4,571)
(741)
(76,401) (96,730)
(350,313) (262,676)
Income Before Income
Taxes and
Extraordinary
Item 38,555
112,519 277,589
275,040 Provision for income taxes
(14,867) (44,517)
(106,996) (108,880)
Income Before
Extraordinary
Item 23,688
68,002 170,593
166,160
Extraordinary Item:
Loss
on Early
Extinguishment
of Debt, net
--
-- (778)
(5,416)
Net Income
$ 23,688 $ 68,002 $
169,815 $ 160,744
Income Before
Preopening
and Other,
Restructuring,
Write-Downs
and
Impairments
and
Extraordinary
Item
$ 27,868 $ 69,183 $
220,501 $ 251,550
|
MGM MIRAGE
AND SUBSIDIARIES
SUPPLEMENTAL DATA - PROPERTY
OPERATING RESULTS
(in thousands)
Three Months Ended Twelve Months
Ended
December 31, December 31, December 31, December 31,
2001 2000
2001 2000
NET REVENUES:
Bellagio
(1) $202,183
$ 252,474 $ 936,279 $ 567,100
MGM
Grand
Las Vegas 156,545
198,039 714,859
764,098
The
Mirage (1) 124,280
152,340 602,566
351,763
Treasure
Island (1) 78,012
90,120 354,952
212,872
New
York-New York 47,360
52,570 209,312
215,754
Primm
Properties 46,920
53,012 206,676
239,551
Golden
Nugget
Las Vegas (1) 43,033
44,218 176,242
100,224
Golden
Nugget
Laughlin (1) 11,018
10,686 46,740
24,993
MGM
Grand Detroit 96,294
91,678 360,334
394,258
Beau
Rivage (1) 67,375
64,868 294,543
171,004
Income
from
Unconsolidated
Affiliate (1) 6,547
10,314 36,816
22,068
Boardwalk
(1) 7,577
-- 34,246
--
MGM
Grand Australia 8,356
8,564 31,784
36,641
MGM
Grand
South Africa
781 1,114
4,269 5,162
$896,281 $1,029,997 $4,009,618
$3,105,488
EBITDA:
Bellagio
(1) $ 56,186
$ 88,118 $ 288,352 $
191,807
MGM
Grand
Las Vegas 35,387
54,026 174,266
221,365
The
Mirage (1) 26,175
41,261 155,243
93,939
Treasure
Island (1) 17,074
26,818 94,160
62,400
New
York-New York 17,251
22,579 82,527
96,353
Primm
Properties 8,172
14,644 42,309
75,055
Golden
Nugget
Las Vegas (1) 7,563
8,053 32,671
17,753
Golden
Nugget
Laughlin (1)
704 636
3,613 1,903
MGM
Grand Detroit 40,418
34,109 144,346
156,683
Beau
Rivage (1) 7,811
11,450 56,372
37,135
Income
from
Unconsolidated
Affiliate (1) 6,547
10,314 36,816
22,068
Boardwalk
(1) 307
-- 4,539
--
MGM
Grand Australia 3,838
4,209 13,715
15,532
MGM
Grand
South Africa
763 1,091
4,205 5,065
$228,196 $ 317,308 $1,133,134
$ 997,058
Note:
(1) The Company
acquired Mirage Resorts, Incorporated on May 31, 2000, thereby acquiring
the Mirage Properties and 50% ownership in the Monte Carlo Resort &
Casino.
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - PRO FORMA
PROPERTY OPERATING RESULTS
(in thousands)
Three Months Ended Twelve
Months Ended
December 31, December 31, December 31, December 31,
2001 2000
2001 2000 (1)
NET REVENUES:
Bellagio
$202,183 $ 252,474 $ 936,279
$ 956,216
MGM
Grand
Las Vegas 156,545
198,039 714,859
764,098
The
Mirage 124,280
152,340 602,566
620,513
Treasure
Island 78,012
90,120 354,952
370,402
New
York-New York 47,360
52,570 209,312
215,754
Primm
Properties 46,920
53,012 206,676
239,551
Golden
Nugget
Las Vegas 43,033
44,218 176,242
176,555
Golden
Nugget
Laughlin
11,018 10,686
46,740 45,718
MGM
Grand Detroit 96,294
91,678 360,334
394,258
Beau
Rivage 67,375
64,868 294,543
298,827
Income
from
Unconsolidated
Affiliate
6,547 10,314
36,816 38,630
Boardwalk
7,577 9,367
34,246 38,262
MGM
Grand Australia 8,356
8,564 31,784
36,641
MGM
Grand
South Africa
781 1,114
4,269 5,162
$896,281 $1,039,364 $4,009,618
$4,200,587
EBITDA:
Bellagio
$ 56,186 $ 88,118 $
288,352 $ 294,645
MGM
Grand
Las Vegas 35,387
54,026 174,266
221,365
The
Mirage 26,175
41,261 155,243
173,123
Treasure
Island 17,074
26,818 94,160
110,150
New
York-New York 17,251
22,579 82,527
96,353
Primm
Properties 8,172
14,644 42,309
75,055
Golden
Nugget
Las Vegas
7,563 8,053
32,671 35,098
Golden
Nugget
Laughlin
704 636
3,613 5,782
MGM
Grand Detroit 40,418
34,109 144,346
156,683
Beau
Rivage 7,811
11,450 56,372
67,129
Income
from
Unconsolidated
Affiliate
6,547 10,314
36,816 38,630
Boardwalk
307 1,400
4,539 6,471
MGM
Grand Australia 3,838
4,209 13,715
15,532
MGM
Grand
South Africa
763 1,091
4,205 5,065
$228,196 $ 318,708 $ 1,133,134
$1,301,081
Note:
(1) Pro forma
amounts for 2000 include Mirage results for the period prior to the acquisition.
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL INFORMATION
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2001
2000
2001 2000
ROOM STATISTICS:
Bellagio
(1)
Occupancy %
91.3% 94.9%
94.1% 97.7%
Average Daily Rate
(ADR)
$156 $179
$174 $169
Revenue per
Available Room
(REVPAR)
$143 $170
$163 $165
MGM
Grand Las Vegas
Occupancy %
81.7% 92.1%
91.2% 96.8%
Average Daily Rate
(ADR)
$107 $115
$112 $110
Revenue per
Available Room
(REVPAR)
$87 $106
$103 $106
The
Mirage (1)
Occupancy %
89.7% 95.6%
94.3% 97.2%
Average Daily Rate
(ADR)
$105 $123
$119 $118
Revenue per
Available Room
(REVPAR)
$94 $117
$112 $115
Treasure
Island (1)
Occupancy %
90.5% 93.5%
94.3% 97.9%
Average Daily Rate
(ADR)
$84 $102
$95 $96
Revenue per
Available Room
(REVPAR)
$76 $96
$90 $94
New
York-New York
Occupancy %
89.8% 94.2%
94.6% 96.5%
Average Daily Rate
(ADR)
$81 $89
$86 $88
Revenue per
Available Room
(REVPAR)
$72 $84
$81 $84
Primm
Properties
Occupancy %
51.2% 56.5%
57.9% 63.6%
Average Daily Rate
(ADR)
$38 $39
$38 $38
Revenue per
Available Room
(REVPAR)
$19 $22
$22 $24
Golden
Nugget
Las Vegas (1)
Occupancy %
88.4% 95.5%
94.2% 97.4%
Average Daily Rate
(ADR)
$61 $62
$62 $59
Revenue per
Available Room
(REVPAR)
$53 $59
$58 $57
Golden
Nugget
Laughlin (1)
Occupancy %
81.4% 81.7%
90.8% 90.8%
Average Daily Rate
(ADR)
$34 $38
$33 $36
Revenue per
Available Room
(REVPAR)
$28 $31
$30 $33
Beau
Rivage (1)
Occupancy %
89.2% 87.6%
93.9% 95.0%
Average Daily Rate
(ADR)
$73 $71
$79 $81
Revenue per
Available Room
(REVPAR)
$65 $62
$75 $77
Boardwalk
(1)
Occupancy %
73.4% 87.5%
84.1% 91.4%
Average Daily Rate
(ADR)
$58 $69
$64 $66
Revenue per
Available Room
(REVPAR)
$43 $60
$53 $61
MGM
Grand Australia
Occupancy %
70.7% 64.2%
74.1% 77.2%
Average Daily Rate
(ADR)
$55 $56
$58 $62
Revenue per
Available Room
(REVPAR)
$39 $36
$43 $48
Note:
(1) The Company
acquired Mirage Resorts, Incorporated on May 31, 2000 thereby acquiring
the Mirage Properties and 50% ownership in the Monte Carlo Resort &
Casino. Information for 2000 includes Mirage results for the period
prior to the acquisition. |
MGM MIRAGE AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share data)
(Unaudited)
ASSETS
December 31, December 31,
2001 2000
CURRENT ASSETS:
Cash
and cash equivalents
$ 208,971 $ 227,968
Accounts
receivable, net
144,374 236,650
Inventories
78,037 86,279
Income
tax receivable
12,077 11,264
Deferred
income taxes
235,820 162,934
Prepaid
expenses
69,623 70,549
Total current assets
748,902 795,644
PROPERTY AND EQUIPMENT,
NET 8,891,645
9,064,233
OTHER ASSETS:
Investment
in unconsolidated affiliates 633,688
522,422
Goodwill,
net
103,059 54,281
Deposits
and other assets, net
207,124 298,021
Total other assets
943,871 874,724
$10,584,418 $10,734,601
LIABILITIES AND S
CURRENT LIABILITIES:
Accounts
payable
$ 75,787 $ 65,317
Current
portion of long-term debt
168,079 521,308
Accrued
interest on long-term debt
78,938 77,738
Other
accrued liabilities
565,106 568,842
Total current liabilities
887,910 1,233,205
DEFERRED INCOME
TAXES
1,833,247 1,730,158
LONG-TERM DEBT
5,295,313 5,348,320
OTHER LONG-TERM
OBLIGATIONS
57,248 40,473
S
Common stock ($.01 par value: authorized
300,000,000 shares, issued 163,685,876
and 163,189,205 shares and outstanding
157,396,176 and 159,130,205 shares)
1,637 1,632
Capital
in excess of par value
2,049,841 2,041,820
Treasury
stock, at cost
(6,289,700
and 4,059,000 shares)
(129,399) (83,683)
Retained
earnings
597,771 427,956
Other
comprehensive loss
(9,150) (5,280)
Total stockholders' equity
2,510,700 2,382,445
$10,584,418 $10,734,601 |
MGM MIRAGE is an entertainment, hotel and gaming company headquartered
in Las Vegas, Nevada, which owns and/or operates through subsidiaries 19
casino properties on three continents.
Statements in this release which are not historical facts are "forward
looking" statements and "safe harbor statements" under the Private Securities
Litigation Reform Act of 1995 that involve risks and/or uncertainties,
including risks and/or uncertainties as described in the company's public
filings with the Securities and Exchange Commission. |
