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MGM Mirage Reports 2009 1st Qtr Revenue Down 19.3%
and Earnings Off 12.5% Compared with Prior Year

Results Include $190 million Pre-tax Gain on the Treasure Island Sale
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LAS VEGAS, May 4, 2009 - MGM MIRAGE (NYSE: MGM) today announced its financial results for the first quarter of 2009. The Company reported first quarter diluted earnings per share (EPS) of $0.38 compared to $0.40 per share in the prior year first quarter. The current year results include a gain of $0.44, net of tax, related to the sale of the Treasure Island hotel and casino. 

Operating Results and Outlook

Net revenue decreased 20% to $1.5 billion in the first quarter of 2009. Revenues were negatively impacted by increased convention cancellations - particularly in January and February and at the Company's Las Vegas Strip resorts - and a continued decline in discretionary spending due to the weakened economy. Occupancy at the Company's Las Vegas Strip resorts was unusually low in January, improved in February, and returned to a normalized level of approximately 95% in March. The convention cancellations forced the Company to shift hotel business to the leisure segment at lower room rates. As a result of these factors, Las Vegas Strip REVPAR(1) decreased by 34%, to $102 for the first quarter of 2009 compared to $154 in the first quarter of 2008.

Total casino revenue declined 16%, with slots revenue down 12% for the quarter. The Company's table games volume, excluding baccarat, was down 20% in the quarter, but the high-end of the gaming segment was more resilient, with baccarat volume only down 1% in the 2009 quarter. The overall table games hold percentage was slightly lower in 2009 than the prior year quarter and near the top end of the Company's normal 18% to 22% range in both periods. 

Operating income for the first quarter of 2009 was $355 million compared to $341 million in the first quarter of 2008. The current year results include the pre-tax gain on the TI sale - $190 million - as well as $15 million of Monte Carlo business interruption insurance recovery income (recorded as a reduction to SG&A expense) and $7 million of Monte Carlo property damage insurance recovery income (recorded as property transactions, net). Property EBITDA(2), which does not include the TI gain, was approximately $372 million in the 2009 quarter, down 35% from $575 million. Property EBITDA, excluding the Monte Carlo insurance recovery income and other items affecting comparability (preopening expenses and other property transactions, net), declined 38% on a comparable basis with a margin of 24% versus 31% in the prior year quarter. Consolidated EBITDA was $532 million in the 2009 quarter, which includes the $190 million pre-tax gain on the TI sale, compared to $536 million in the prior year period.

The Company's regional properties reported strong results with MGM Grand Detroit's EBITDA up 18% to $41 million in the 2009 quarter, and the combined EBITDA of Beau Rivage and Gold Strike Tunica up 15% to $31 million. Corporate expense declined 25% to $24 million, despite increased costs for legal and other corporate finance costs. The Company has continued to implement cost savings initiatives on a company-wide basis, which positively impacted results in the quarter.

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

       Three months ended March 31,                  2009       2008
       Preopening and start-up expenses            $ (0.02)   $ (0.01)
       Monte Carlo fire business
        interruption income (recorded as a
        reduction of general and
        administrative expenses)                      0.04          -
       Property transactions net:
         Gain on the sale of TI                       0.44          -
         Monte Carlo fire property damage income      0.02          -
         Other property transactions, net                -      (0.01)

"While we experienced significant group cancellations early in the quarter and experienced a continuation of negative consumer spending trends from the fourth quarter, cancellations have tapered off and we see signs that business levels seem to be stabilizing," said Jim Murren, MGM MIRAGE Chairman and Chief Executive Officer. "Our resorts have seen sequential increases in occupancy levels through the first quarter and into April, and our forward booking pace is improving. This is allowing us the opportunity to better yield our room pricing. Additionally, world-class events at our resorts continue to drive revenue and we have an exceptionally strong event calendar in the second and third quarters, with recent events such as the Pacquiao vs. Hatton fight; and numerous other premier concerts and events in the summer months."

Financial Position

At March 31, 2009, the Company had approximately $14.4 billion of borrowings outstanding and its cash balance was approximately $1.4 billion. These balances included the results of the following transactions:

In March 2009, the Company closed on the TI sale. The Company received cash of $600 million and a note receivable of $175 million at closing from the purchaser, Ruffin Acquisition, LLC.
During the quarter, the Company drew down the remainder of unused borrowing capacity available under its $7.0 billion senior credit facility. 
During the quarter, capital expenditures were $56 million.
On March 16, 2009, the Company obtained a waiver through May 15, 2009 of the requirement that the Company comply with the financial covenants in its senior credit facility as of March 31, 2009. As part of the amendment, the Company repaid $300 million of the outstanding borrowings under the facility. 
During the first quarter, the Company funded $437 million of equity contributions to CityCenter, which included $100 million that should have been funded by Dubai World.

On April 17, 2009, the Company made an additional investment of $70 million in CityCenter, which included $35 million that should have been funded by Dubai World. As announced separately on April 29, 2009, the Company, Dubai World and the CityCenter lenders entered into a series of agreements, including an amendment to the CityCenter joint venture agreement and the CityCenter senior secured credit facility, resulting in a comprehensive plan to fully fund the completion of CityCenter for its scheduled opening later this year.

On April 29, 2009, the Company received $155 million, plus accrued interest, from Ruffin Acquisition, LLC in full payment of the note receivable referred to above, with a $20 million discount for early payment.

Also as separately announced, the Company reached an agreement with its senior lenders for a further waiver of noncompliance (as of March 31, 2009) with financial covenants under its senior credit facility through June 30, 2009. As part of these agreements and amendments, the Company funded the remaining $224 million of its required equity contributions for CityCenter through the issuance of a letter of credit.

"We continue to work constructively with our advisors and senior lenders to find a comprehensive long-term solution to improve our financial position," said Dan D'Arrigo, MGM MIRAGE Executive Vice President and Chief Financial Officer. "We are evaluating a variety of options - which may include asset sales, new capital, and modifying or extending our existing debt - to address our liquidity needs and strengthen our balance sheet."

The Company intends to further formulate its plans to address near-term liquidity issues and its overall levels of outstanding borrowings and leverage, and to work with its lenders to approve and implement such solutions and to obtain additional waivers or amendments prior to June 30, 2009 to address future noncompliance with the senior credit facility; however, the Company can provide no assurance that it will be able to secure such waivers or amendments. Following expiration of the waiver referred to above on June 30, 2009, the Company will be subject to an event of default related to noncompliance with financial covenants under the senior credit facility at March 31, 2009. Under the terms of the senior credit facility, noncompliance with financial covenants is an event of default, under which the lenders (with a vote of more than 50% of the lenders) may exercise any or all of their remedies, including demanding immediate repayment of all outstanding borrowings under the senior credit facility.

In addition, there are provisions in the indentures governing the Company's senior and senior subordinated notes under which a) the event of default under the senior credit facility, or b) the remedies under an event of default under the senior credit facility, would cause an event of default under the relevant senior and senior subordinated notes, which would also allow holders of the senior and senior subordinated notes to demand immediate repayment and decline to release subsidiary guarantees. If the lenders exercise any or all such rights, the Company may determine to seek relief through a filing under the U.S. Bankruptcy Code. 

As a result of the short-term nature of the waiver under the senior credit facility and potential cross-defaults under the indentures, the Company has classified all of its outstanding borrowings as current liabilities as of March 31, 2009 in the accompanying consolidated balance sheet. 
 
 

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

                                                       Three Months Ended
                                                      --------------------
                                                      March 31,  March 31,
                                                        2009       2008
                                                      ---------  ---------
    Revenues:
      Casino                                          $ 664,727  $ 790,464
      Rooms                                             355,044    518,741
      Food and beverage                                 338,397    402,392
      Entertainment                                     118,057    134,838
      Retail                                             47,949     64,037
      Other                                             137,373    147,973
                                                      ---------  ---------
                                                      1,661,547  2,058,445
      Less:
       Promotional allowances                          (162,752)  (174,812)
                                                      ---------  ---------
                                                      1,498,795  1,883,633
                                                      ---------  ---------
    Expenses:
      Casino                                            375,517    416,563
      Rooms                                             110,827    136,797
      Food and beverage                                 194,327    236,272
      Entertainment                                      87,742     95,664
      Retail                                             31,621     43,164
      Other                                              83,806     92,564
      General and administrative                        260,797    320,374
      Corporate expense                                  24,361     32,450
      Preopening and start-up expenses                    8,071      5,164
      Restructuring costs                                   443        329
      Property transactions, net                       (195,125)     2,776
      Depreciation and amortization                     176,858    194,339
                                                      ---------  ---------
                                                      1,159,245  1,576,456
                                                      ---------  ---------

    Income from unconsolidated affiliates                15,549     34,111
                                                      ---------  ---------

    Operating income                                    355,099    341,288
                                                      ---------  ---------

    Non-operating income (expense):
      Interest income                                     4,382      3,466
      Interest expense, net                            (171,636)  (149,789)
      Non-operating items from
       unconsolidated affiliates                        (11,131)    (9,891)
      Other, net                                         (1,338)       230
                                                      ---------  ---------
                                                       (179,723)  (155,984)
                                                      ---------  ---------

    Income before income taxes                          175,376    185,304
      Provision for income taxes                        (70,177)   (66,958)
                                                      ---------  ---------

    Net income                                        $ 105,199  $ 118,346
                                                      =========  =========

    Per share of common stock:
      Basic:
      Net income per share                            $    0.38  $    0.41
                                                      =========  =========

      Weighted average shares outstanding               276,556    288,943
                                                      =========  =========

      Diluted:
      Net income per share                            $    0.38  $    0.40
                                                      =========  =========

      Weighted average shares outstanding               276,770    298,400
                                                      =========  =========
 

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

                                        Three Months Ended
                                   ----------------------------
                                    March 31,         March 31,
                                      2009              2008
                                   ----------        ----------
      Las Vegas Strip              $1,187,994        $1,548,057
      Other Nevada                     28,537            36,850
      MGM Grand Detroit               136,515           144,780
      Mississippi                     123,845           134,222
      Other                            21,904            19,724
                                   ----------        ----------
                                   $1,498,795        $1,883,633
                                   ==========        ==========
 
 

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

                                        Three Months Ended
                                   ----------------------------
                                    March 31,         March 31,
                                      2009              2008
                                   ----------        ----------
      Las Vegas Strip              $  288,716        $  479,496
      Other Nevada                     (1,517)             (685)
      MGM Grand Detroit                40,552            34,412
      Mississippi                      31,414            27,370
      Other                             4,864             4,579
      Unconsolidated resorts            7,837            29,367
                                   ----------        ----------
                                   $  371,866        $  574,539
                                   ==========        ==========

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

                          Three Months Ended March 31, 2009
                          ---------------------------------

                          Preopening                   Property
                         and start-up Restructuring  transactions,
                           expenses       costs          net        Total
                         ------------ -------------  ------------ ---------
      Las Vegas Strip    $        190 $         443  $   (5,427)  $  (4,794)
      Other Nevada                  -             -           -           -
      MGM Grand Detroit             -             -           -           -
      Mississippi                   -             -           -           -
      Unconsolidated
       resorts                  7,881             -           -       7,881
                         ------------ -------------  ----------   ---------
                                8,071           443      (5,427)      3,087
      Corporate and
       other                        -             -    (189,698)   (189,698)
                         ------------ -------------  ----------   ---------
                         $      8,071 $         443  $ (195,125)  $(186,611)
                         ============ =============  ==========   =========
 
 

                          Three Months Ended March 31, 2008
                          ---------------------------------
                          Preopening                   Property
                         and start-up Restructuring  transactions,
                           expenses       costs          net         Total
                         ------------ -------------  ------------  ---------
      Las Vegas Strip    $        226 $         329  $      2,789  $   3,344
      Other Nevada                  -             -             -          -
      MGM Grand Detroit           194             -             8        202
      Mississippi                   -             -             5          5
      Unconsolidated
       resorts                  4,744             -             -      4,744
                         ------------ -------------  ------------  ---------
                                5,164           329         2,802      8,295
      Corporate and
       other                        -             -           (26)       (26)
                         ------------ -------------  ------------  ---------
                         $      5,164 $         329  $      2,776  $   8,269
                         ============ =============  ============  =========
 

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

                                             Three Months Ended
                                         --------------------------
                                         March 31,        March 31,
                                           2009             2008
                                         ---------        ---------

    EBITDA                               $ 531,957        $ 535,627
      Depreciation and amortization       (176,858)        (194,339)
                                         ---------        ---------
    Operating income                       355,099          341,288
                                         ---------        ---------

    Non-operating income (expense):
      Interest expense, net               (171,636)        (149,789)
      Other                                 (8,087)          (6,195)
                                         ---------        ---------
                                          (179,723)        (155,984)
                                         ---------        ---------

    Income before income taxes             175,376          185,304
      Provision for income taxes           (70,177)         (66,958)
                                         ---------        ---------
    Net income                           $ 105,199        $ 118,346
                                         =========        =========
 

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

                          Three Months Ended March 31, 2009
                          ---------------------------------

                                                    Depreciation
                                 Operating              and
                                income (loss)       amortization     EBITDA
                               ----------------   ----------------  --------
      Las Vegas Strip          $        159,983   $        128,733  $288,716
      Other Nevada                       (3,065)             1,548    (1,517)
      MGM Grand Detroit                  29,841             10,711    40,552
      Mississippi                        14,626             16,788    31,414
      Other                               2,271              2,593     4,864
      Unconsolidated resorts              7,837                  -     7,837
                               ----------------   ----------------  --------
                                        211,493            160,373   371,866
      Stock compensation                                              (8,734)
      Corporate and other                                            168,825
                                                                    --------
                                                                    $531,957
                                                                    ========

                          Three Months Ended March 31, 2008
                          ---------------------------------

                                                    Depreciation
                                 Operating              and
                                income (loss)       amortization     EBITDA
                               ----------------   ----------------  --------
      Las Vegas Strip          $        333,297   $        146,199  $479,496
      Other Nevada                       (2,186)             1,501      (685)
      MGM Grand Detroit                  20,061             14,351    34,412
      Mississippi                        11,813             15,557    27,370
      Other                               2,581              1,998     4,579
      Unconsolidated resorts             29,367                  -    29,367
                               ----------------   ----------------  --------
                                        394,933            179,606   574,539
      Stock compensation                                             (11,203)
      Corporate and other                                            (27,709)
                                                                    --------
                                                                    $535,627
                                                                    ========

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

                                                     March 31,    December 31,
                                                       2009          2008
                                                    -----------   -----------

                          ASSETS
    Current assets:
      Cash and cash equivalents                     $ 1,365,581   $   295,644
      Accounts receivable, net                          449,468       303,416
      Inventories                                       102,828       111,505
      Income tax receivable                                   -        64,685
      Deferred income taxes                              53,424        63,153
      Prepaid expenses and other                        119,563       155,652
      Assets held for sale                                    -       538,975
                                                    -----------   -----------
        Total current assets                          2,090,864     1,533,030
                                                    -----------   -----------

    Property and equipment, net                      16,067,874    16,289,154

    Other assets:
      Investments in and advances to
       unconsolidated affiliates                      4,689,120     4,642,865
      Goodwill                                           86,353        86,353
      Other intangible assets, net                      346,441       347,209
      Deposits and other assets, net                    560,997       376,105
                                                    -----------   -----------
        Total other assets                            5,682,911     5,452,532
                                                    -----------   -----------
                                                    $23,841,649   $23,274,716
                                                    ===========   ===========
 

           LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Accounts payable                              $   113,237   $   142,693
      Construction payable                               26,880        45,103
      Income taxes payable                              177,400             -
      Current portion of long-term debt              14,356,492     1,047,614
      Accrued interest on long-term debt                176,049       187,597
      Other accrued liabilities                       1,165,070     1,549,296
      Liabilities related to assets held for sale             -        30,273
                                                    -----------   -----------
        Total current liabilities                    16,015,128     3,002,576
                                                    -----------   -----------

    Deferred income taxes                             3,340,759     3,441,198
    Long-term debt                                        3,990    12,416,552
    Other long-term obligations                         391,606       440,029
    Stockholders' equity:
      Common stock, $.01 par value: authorized
       600,000,000 shares, issued 369,334,372
       and 369,283,995 shares and outstanding
       276,557,345 and 276,506,968 shares                 3,693         3,693
      Capital in excess of par value                  4,027,260     4,018,410
      Treasury stock, at cost: 92,777,027 shares     (3,355,963)   (3,355,963)
      Retained earnings                               3,470,321     3,365,122
      Accumulated other comprehensive income (loss)     (55,145)      (56,901)
                                                    -----------   -----------
        Total stockholders' equity                    4,090,166     3,974,361
                                                    -----------   -----------
                                                    $23,841,649   $23,274,716
                                                    ===========   ===========
 

      
SOURCE MGM MIRAGE

MGM MIRAGE will hold a conference call to discuss its first quarter earnings results at 5:00 p.m. Eastern Daylight Savings Time today. The call can be accessed live at www.companyboardroom.com or www.mgmmirage.com, or by calling 1-800-526-8531 (domestic) or 1-706-758-3659 (international). Until May 11, 2009, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 98130554. A complete replay of the call will also be made available at www.mgmmirage.com. Supplemental detailed earnings information will also be available on the Company's website. 

    (1) REVPAR is hotel Revenue per Available Room.

    (2) "EBITDA" is earnings before interest and other non-operating income
        (expense), taxes, depreciation and amortization.  "Property EBITDA" is
        EBITDA before corporate expense and stock compensation expense.
        EBITDA information is presented solely as a supplemental disclosure
        because management believes that it is 1) a widely used measure of
        operating performance in the gaming industry, and 2) a principal basis
        for valuation of gaming companies.  In addition, capital allocation,
        tax planning, financing and stock compensation awards are all managed
        at the corporate level.  Management uses Property EBITDA as the
        primary measure of the Company's operating resorts' performance,
        including the evaluation of operating personnel.  EBITDA should not be
        construed as an alternative to operating income, as an indicator of
        the Company's operating performance; or as an alternative to cash
        flows from operating activities, as a measure of liquidity; or as any
        other measure determined in accordance with generally accepted
        accounting principles.  The Company has significant uses of cash
        flows, including capital expenditures, interest payments, taxes and
        debt principal repayments, which are not reflected in EBITDA.  Also,
        other gaming companies that report EBITDA information may calculate
        EBITDA in a different manner than the Company.  Reconciliations of
        consolidated EBITDA to net income and of operating income to Property
        EBITDA are included in the financial schedules accompanying this
        release.

MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected companies with significant holdings in gaming, hospitality and entertainment, owns and operates 16 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. CityCenter, an unprecedented urban metropolis on the Las Vegas Strip scheduled to open in late 2009, is a joint venture between MGM MIRAGE and Infinity World Development Corp., a subsidiary of Dubai World. MGM MIRAGE Hospitality has entered into management agreements for future casino and non-casino resorts in the People's Republic of China, Abu Dhabi, U.A.E. and Vietnam. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com.

Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.

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Contact:

MGM MIRAGE

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Also See: MGM Mirage Loses $1.15 billion in 4th Qtr 2008; Vegas Strip Hotels 2008 Full Year REVPAR Falls to $114 from $145, Long Term Debt Totals $13.47 billion / March 2009
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