LAS VEGAS, Oct. 30. 2001 - MGM MIRAGE (NYSE:
MGG) today reported earnings before nonrecurring expenses of 19 cents per
diluted share for the 2001 third quarter, compared with 45 cents per diluted
share in the 2000 quarter. Consolidated net revenue was down 5.3%
to $993 million in the 2001 quarter compared with $1.05 billion in the
comparable 2000 quarter. For the three months ended September 30,
2001, operating cash flow (�EBITDA�) was $236.5 million when compared with
$336 million in the prior year�s quarter. Net income before nonrecurring
expenses during the 2001 quarter was $30.1 million compared with $73.2
million in the prior year�s quarter.
These results reflect a substantial decline in business volumes at
the Company�s hotel and casino resorts immediately after the terrorist
attacks of September 11, 2001. The Company�s hotels on the Las Vegas
Strip averaged an unprecedented low 64% occupancy level from September
11th through September 30th. This reduction in customer traffic also
resulted in lower casino, food and beverage and retail revenue. Mid-week
occupancy levels have now significantly improved, and weekend occupancy
has nearly returned to pre-attack levels, albeit at reduced rates.
Accordingly, casino and non-casino revenue continue to rebound.
�Prior to the events of September 11th, our Company was on track to
achieve another strong quarterly operating performance. Obviously
the result of the terrorist attacks had a profound impact on the hotel
and travel industry and our business,� said Terry Lanni, Chairman and Chief
Executive Officer of MGM MIRAGE. �Our management team undertook a
detailed analysis of our current operations in terms of the impact of September
11th. To respond to these historic challenges, we implemented cost
containment strategies which included a significant reduction in payroll
and a refocusing of several of our marketing programs. The objective
of this approach is to rebuild revenue and profitability in order to bring
back as many of our displaced employees as possible. Current trends
indicate our initiatives are working, as we are once again profitable and
we have recalled many of our employees. We expect to be profitable
throughout the fourth quarter, the degree of which will depend on business
volumes which have continued to improve since late September.
Based on early indications, we are optimistic that this recovery will
accelerate into 2002.�
Layoffs and terminations related to the payroll deductions resulted
in an after-tax restructuring charge of $12.9 million (8 cents per share).
The Company has achieved reductions in most operating expense categories,
including payroll and purchasing, and has restructured several corporate
functions. Management also reassessed the carrying value of certain
assets and accordingly recognized an after-tax impairment loss of $30.8
million (19 cents per share) for the three months ended September 30, 2001.
Including these nonrecurring items, the Company reported a loss of 9 cents
per share for the three months ended September 30, 2001 compared with earnings
of 42 cents per share during the prior year�s quarter.
During the three months ended September 30, 2001, the Company�s free
cash flow enabled it to reduce debt by $103 million. Since the acquisition
of Mirage Resorts on May 31, 2000, the Company has reduced its outstanding
debt balance by $947 million.
�Despite the events of September 11th, our Company remains financially
strong. We currently have over $730 million of available liquidity
with no public debt maturities until 2005. During the quarter we
utilized free cash flow to repurchase approximately 2.2 million shares
under our 10 million share repurchase program at an average cost of $20.47
per share,� said Jim Murren, President and CFO of MGM MIRAGE. �The
Company has completed several important cost saving programs and has significant
flexibility in its capital requirements over the next few years.
Our overall business objectives remain the same. We will continue
to grow our business, manage our cost structure and maximize free cash
flow for debt reductions, internal growth, acquisitions and share repurchases.�
MGM MIRAGE
AND SUBSIDIARIES
SUPPLEMENTAL DATA - PROPERTY
OPERATING RESULTS
(in thousands)
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30 Sept. 30
Sept. 30
2001 2000
2001 2000
NET REVENUES:
Bellagio (1)
$ 233,390 $ 248,007 $ 734,096 $ 314,626
MGM Grand Las Vegas
171,334 178,997 558,314
566,059
The Mirage (1)
144,842 151,210 478,286
199,423
Treasure Island
(1) 86,274
94,194 276,940 122,752
New York-New York
53,141 55,342 161,952
163,184
Primm Properties
54,702 63,084 159,756
186,539
Golden Nugget Las
Vegas(1) 40,081 42,412
133,209 56,006
Golden Nugget Laughlin
(1) 11,463 10,844
35,722 14,307
MGM Grand Detroit
87,351 103,496 264,040
302,580
Beau Rivage (1)
83,312 80,986 227,168
106,136
Income from Unconsolidated
Affiliate
(1)
8,909 9,014
30,269 11,754
Boardwalk (1)
8,356 --
26,669 --
MGM Grand Australia
8,635 9,830
23,428 28,077
MGM Grand South
Africa 1,099
1,280 3,488
4,048
$992,889 $1,048,696 $3,113,337 $2,075,491
EBITDA:
Bellagio (1)
$ 62,334 $ 86,711 $ 232,166 $
103,689
MGM Grand Las Vegas
30,779 50,275 138,879
167,339
The Mirage (1)
26,855 40,429 129,068
52,678
Treasure Island
(1) 18,541
27,831 77,086
35,582
New York-New York
18,000 24,543
65,276 73,774
Primm Properties
11,245 19,737
34,137 60,411
Golden Nugget Las
Vegas (1) 3,981 7,481
25,108 9,700
Golden Nugget Laughlin
(1) 82
908 2,909
1,267
MGM Grand Detroit
33,201 43,147 103,928
122,574
Beau Rivage (1)
16,866 20,277
48,561 25,685
Income from Unconsolidated
Affiliate
(1)
8,909 9,014
30,269 11,754
Boardwalk (1)
859 --
4,232 --
MGM Grand Australia
3,766 4,346
9,877 11,323
MGM Grand South
Africa 1,083
1,258 3,442
3,974
$ 236,501 $ 335,957 $ 904,938 $ 679,750
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 Nine Months Ended
Sept. 30 Sept. 30 Sept. 30
Sept. 30
2001 2000(1)
2001 2000(1)
NET REVENUES:
Bellagio
$ 233,390 $ 248,007 $ 734,096 $ 703,742
MGM Grand Las Vegas
171,334 178,997 558,314
566,059
The Mirage
144,842 151,210 478,286
468,173
Treasure Island
86,274 94,194 276,940
280,282
New York-New York
53,141 55,342 161,952
163,184
Primm Properties
54,702 63,084 159,756
186,539
Golden Nugget Las
Vegas 40,081 42,412
133,209 132,337
Golden Nugget Laughlin
11,463 10,844
35,722 35,032
MGM Grand Detroit
87,351 103,496 264,040
302,580
Beau Rivage
83,312 80,986 227,168
233,959
Income from Unconsolidated
Affiliate
8,909 9,014
30,269 28,316
Boardwalk
8,356 9,612
26,669 28,895
MGM Grand Australia
8,635 9,830
23,428 28,077
MGM Grand South
Africa 1,099
1,280 3,488
4,048
$992,889 $1,058,308 $3,113,337 $3,161,223
EBITDA:
Bellagio
$ 62,334 $ 86,711 $ 232,166 $
206,527
MGM Grand Las Vegas
30,779 50,275 138,879
167,339
The Mirage
26,855 40,429 129,068
131,862
Treasure Island
18,541 27,831
77,086 83,332
New York-New York
18,000 24,543
65,276 73,774
Primm Properties
11,245 19,737
34,137 60,411
Golden Nugget Las
Vegas 3,981 7,481
25,108 27,045
Golden Nugget Laughlin
82 908
2,909 5,146
MGM Grand Detroit
33,201 43,147 103,928
122,574
Beau Rivage
16,866 20,277
48,561 55,679
Income from Unconsolidated
Affiliate
8,909 9,014
30,269 28,316
Boardwalk
859 1,559
4,232 5,071
MGM Grand Australia
3,766 4,346
9,877 11,323
MGM Grand South
Africa 1,083
1,258 3,442
3,974
$236,501 $ 337,516 $ 904,938
$ 982,373 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 Nine Months Ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30
2001 2000
2001 2000
ROOM STATISTICS:
Bellagio (1) (3,005 Rooms)
Occupancy %
90.0% 98.8% 95.0%
98.7%
Average Daily Rate (ADR) $159
$157 $179
$166
Revenue per Available Room
(REVPAR)
$143 $155
$170 $164
MGM Grand Las Vegas
(5,034 Rooms)
Occupancy %
90.0% 99.2% 94.5%
98.5%
Average Daily Rate (ADR) $105
$103 $114
$108
Revenue per Available Room
(REVPAR)
$ 94 $103
$108 $106
The Mirage (1) (3,044 Rooms)
Occupancy %
91.7% 98.7% 95.7%
97.8%
Average Daily Rate (ADR) $109
$112 $123
$117
Revenue per Available Room
(REVPAR)
$100 $110
$118 $114
Treasure Island (1) (2,885 Rooms)
Occupancy %
92.5% 99.3% 95.6%
99.3%
Average Daily Rate (ADR) $ 88
$ 88 $ 99
$ 94
Revenue per Available Room
(REVPAR)
$ 81 $ 88
$ 95 $ 93
New York-New York (2,024 Rooms)
Occupancy %
92.2% 98.6% 96.2%
97.3%
Average Daily Rate (ADR) $ 80
$ 84 $ 87
$ 87
Revenue per Available Room
(REVPAR)
$ 73 $ 83
$ 84 $ 85
Primm Properties (2,642 Rooms)
Occupancy %
62.0% 65.3% 60.2%
66.0%
Average Daily Rate (ADR) $ 38
$ 39 $ 38
$ 38
Revenue per Available Room
(REVPAR)
$ 24 $ 26
$ 23 $ 25
Golden Nugget Las Vegas (1)
(1,907 Rooms)
Occupancy %
92.0% 98.2% 96.4%
98.0%
Average Daily Rate (ADR) $ 59
$ 54 $ 62
$ 57
Revenue per Available Room
(REVPAR)
$ 54 $ 53
$ 60 $ 56
Golden Nugget Laughlin (1)
(300 Rooms)
Occupancy %
92.3% 91.9% 94.0%
93.9%
Average Daily Rate (ADR) $ 34
$ 35 $ 33
$ 36
Revenue per Available Room
(REVPAR)
$ 32 $ 32
$ 31 $ 33
Beau Rivage (1) (1,780 Rooms)
Occupancy %
95.2% 98.5% 95.5%
97.5%
Average Daily Rate (ADR) $ 85
$ 89 $ 81
$ 84
Revenue per Available Room
(REVPAR)
$ 81 $ 88
$ 78 $ 82
Boardwalk (1) (654 Rooms)
Occupancy %
81.4% 93.3% 87.7%
92.7%
Average Daily Rate (ADR) $ 59
$ 62 $ 65
$ 65
Revenue per Available Room
(REVPAR)
$ 48 $ 58
$ 57 $ 61
MGM Grand Australia (96 Rooms)
Occupancy %
91.0% 92.2% 75.0%
81.6%
Average Daily Rate (ADR) $ 62
$ 66 $ 59
$ 64
Revenue per Available Room
(REVPAR)
$ 56 $ 61
$ 44 $ 52
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 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.
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