LAS VEGAS, April 29, 2014 -- MGM Resorts International (NYSE: MGM) today reported financial results for the quarter ended March 31, 2014. Diluted earnings per share for the first quarter of 2014 was $0.21, an improvement compared to diluted earnings per share of $0.01 in the prior year first quarter.
"We are off to a strong start in 2014, with double digit Adjusted EBITDA growth at our wholly owned domestic resorts and record results at MGM China and CityCenter," said Jim Murren, Chairman and CEO. "In the U.S., we are executing on our strategy to drive customer loyalty by increasing incremental convention business to our properties mid-week, hosting the best events on the weekends, and continually bringing new and exciting capital initiatives to our properties. Our development projects are well underway as MGM Cotai, our second Macau property, is on schedule to open in early 2016 and we are preparing to break ground on MGM National Harbor, in Maryland this summer, where we expect to open in 2016."
Key results for the first quarter of 2014 include the following:
Consolidated net revenue was $2.6 billion, a 12% increase over the prior year first quarter;
Consolidated casino revenue increased 13% compared to the prior year quarter;
Rooms revenue at wholly owned domestic resorts increased 13% with a 14% increase in REVPAR(1) at the Company's Las Vegas Strip resorts compared to the prior year quarter;
Adjusted Property EBITDA(2) was $682 million compared to $574 million, a 19% increase compared to the prior year quarter;
The Company's wholly owned domestic resorts earned Adjusted Property EBITDA of $403 million, a 12% increase compared to the prior year quarter;
MGM China's Adjusted EBITDA was a record $241 million, a 33% increase compared to the prior year quarter, including $16 million of branding fee expense in the current quarter versus $13 million in the prior year quarter;
CityCenter earned record Adjusted EBITDA related to resort operations of $95 million; and
Consolidated operating income was $413 million compared to $302 million in the prior year quarter.
The following table lists items that affect the comparability of the current and prior year quarterly results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):
Casino revenue related to wholly owned domestic resorts decreased 2% compared to the prior year quarter, due to a decrease in table games hold percentage and a small decrease in slots revenue. Table games hold percentage in the first quarter of 2014 was 20.8% compared to 21.9% for the prior year quarter. Slots revenue increased 1% compared to the prior year quarter at the Company's Las Vegas Strip resorts, but decreased 5% at the Company's other wholly owned domestic resorts.
Rooms revenue increased 13% with Las Vegas Strip REVPAR up 14%. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:
Food and beverage revenue increased 6% as a result of increased convention and banquet business and the opening of several new outlets. Operating income for the Company's wholly owned domestic resorts increased 20% for the first quarter of 2014 compared to the prior year quarter due primarily to the increase in rooms revenues and improved rooms margins.
Key first quarter results for MGM China include the following:
MGM China earned net revenue of $941 million, a 26% increase compared to the prior year quarter;
VIP table games turnover increased 12% from the prior year quarter and hold percentage was 3.0% in the current year quarter compared to 2.8% in the prior year quarter;
Main floor table games revenue increased 45% compared to the prior year quarter;
MGM China's Adjusted EBITDA was a record $241 million, a 33% increase compared to the prior year quarter, including $16 million of branding fee expense in the current quarter versus $13 million in the prior year quarter; and
Operating income was $165 million compared to $99 million in the prior year quarter.
MGM China paid a $499 million dividend in March 2014, of which $254 million was distributed to MGM Resorts and $245 million was distributed to noncontrolling interests.
The following table summarizes information related to the Company's share of income from unconsolidated affiliates:
Results for CityCenter Holdings, LLC for the first quarter of 2014 include the following (see schedules accompanying this release for further detail on CityCenter's first quarter results):
Net revenue from resort operations increased by 2% to $313 million compared to $308 million in the prior year quarter;
Adjusted EBITDA from resort operations was $95 million, an increase of 2% compared to the prior year quarter;
Aria's table games hold percentage was 26.8% compared to 28.3% in the prior year quarter;
Aria's occupancy percentage was 92% and its ADR was $229, resulting in record REVPAR of $211, a 14% increase compared to the prior year quarter;
Vdara reported record REVPAR of $165, an increase of 21% compared to the prior year quarter; and
Crystals reported Adjusted EBITDA of $11 million, an increase of 30% from the prior year quarter.
CityCenter's operating income increased to $5 million for the first quarter of 2014 primarily due to increased revenues and strong margins related to its hotel operations.
"Our continued focus on driving revenue growth and maximizing margins is reflected in our strong flow through at our Las Vegas resorts," said Dan D'Arrigo, Executive Vice President, CFO and Treasurer. "These factors along with continued strength at MGM China and CityCenter contributed to significant year over year growth in net income and earnings per share."
The Company's cash balance at March 31, 2014 was $1.1 billion, which included $556 million at MGM China. At March 31, 2014 the Company had $2.8 billion of borrowings outstanding under its $4.0 billion senior secured credit facility and $553 million outstanding under the $2.0 billion MGM China credit facility.
MGM Resorts International will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the Investors section or by calling 1-877-355-2280 for domestic callers and 1-706-634-6528 for international callers. The conference call access code is 20455736. A replay of the call will be available through Tuesday, May 6, 2014. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 20455736. The call will be archived at www.mgmresorts.com.
To view corresponding tables associated to this release please visit:
MGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company also owns 51% of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, and 50% of CityCenter in Las Vegas, which features ARIA resort and casino. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
Contact: Investment Community, SARAH ROGERS, Vice President Investor Relations