MGM MIRAGE 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,
2004 2003
2004 2003
Revenues:
Casino
$ 551,691 $ 508,944 $1,110,414 $1,005,165
Rooms
232,304 212,689 467,265
425,987
Food and beverage
212,040 189,424 429,804
377,501
Entertainment
65,971 59,485 133,213
124,628
Retail
48,072 46,304 93,170
87,394
Other
66,015 55,008 117,101
107,357
1,176,093 1,071,854 2,350,967 2,128,032
Less: Promotional
allowances
(103,568) (97,737) (212,006) (202,041)
1,072,525 974,117 2,138,961 1,925,991
Expenses:
Casino
269,518 251,812 547,121
513,828
Rooms
62,468 58,910 124,300
116,816
Food and beverage
121,138 106,694 240,687
211,946
Entertainment
47,548 43,377 94,127
90,110
Retail
30,566 29,262 59,078
55,848
Other
38,328 33,284 71,212
63,769
Provision for doubtful
accounts
(2,915) 6,784
3,962 14,420
General and administrative
151,420 146,377 297,701
284,677
Corporate expense
18,458 15,022 34,196
28,768
Preopening and start-up
expenses
1,619 14,896
2,000 21,443
Restructuring costs
3,900 548
4,314 1,153
Property transactions,
net 1,938 3,094
3,677 9,910
Depreciation and
amortization
97,484 101,044 195,037
201,594
841,470 811,104 1,677,412 1,614,282
Income from unconsolidated
affiliates
29,542 8,547
53,714 19,336
Operating income
260,597 171,560 515,263
331,045
Non-operating income
(expense):
Interest income
1,116 734
2,019 2,442
Interest expense, net
(92,622) (80,181) (182,432) (162,979)
Non-operating items from
unconsolidated affiliates
(6,690) (73) (12,895)
(224)
Other, net
(2,573) (5,561) (9,727)
(4,793)
(100,769) (85,081) (203,035) (165,554)
Income from continuing
operations before income
taxes
159,828 86,479 312,228
165,491
Provision for income taxes
(58,165) (32,023) (113,425) (62,259)
Income from continuing
operations
101,663 54,456 198,803
103,232
Discontinued operations
Income (loss) from
discontinued operations,
including
gain (loss) on
disposal
of $8,186 (six
months
2004)
and ($7,357) (three
and six months 2003) 4,809
(6,321) 18,678 (1,589)
Benefit (provision) for
income taxes
(1,755) 5,615 (6,916)
3,110
3,054 (706)
11,762 1,521
Net income
$ 104,717 $ 53,750 $ 210,565 $ 104,753
Per share of common stock:
Basic:
Income from continuing
operations
$ 0.73 $ 0.36 $
1.41 $ 0.68
Discontinued operations
0.02 --
0.08 0.01
Net income per share
$ 0.75 $ 0.36 $
1.49 $ 0.69
Weighted average shares
outstanding
139,904 150,721 141,018
151,412
Diluted:
Income from continuing
operations
$ 0.70 $ 0.36 $
1.36 $ 0.67
Discontinued operations
0.02 (0.01)
0.08 0.01
Net income per share
$ 0.72 $ 0.35 $
1.44 $ 0.68
Weighted average shares
outstanding
144,748 153,052 145,806
153,241
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS
AND EPS TO ADJUSTED EARNINGS AND EPS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004
2003
Income from continuing operations
$101,663 $54,456 $198,803 $103,232
Preopening and start-up expenses,
net
1,052 9,683 1,300
13,938
Restructuring costs, net
2,535 356 2,804
749
Property transactions, net
1,260 2,011 2,390
6,442
Loss on debt retirements, net
-- -- 3,593
--
Adjusted earnings
$106,510 $66,506 $208,890 $124,361
Per diluted share of common stock:
Income from continuing
operations $ 0.70 $ 0.36 $ 1.36
$ 0.67
Preopening and start-up
expenses,
net
0.01 0.06 0.01
0.09
Restructuring costs, net
0.02 --
0.02 0.01
Property transactions,
net 0.01
0.01 0.02 0.04
Loss on debt retirements,
net --
-- 0.02
--
Adjusted EPS
$ 0.74 $ 0.43 $ 1.43 $
0.81
Weighted average diluted
shares
outstanding
144,748 153,052 145,806 153,241
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA
TO INCOME FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004
2003
EBITDA
$365,538 $291,142 $720,291 $565,145
Preopening and start-up
expenses (1,619) (14,896) (2,000) (21,443)
Restructuring costs
(3,900) (548) (4,314) (1,153)
Property transactions,
net (1,938)
(3,094) (3,677) (9,910)
Depreciation and amortization
(97,484) (101,044) (195,037) (201,594)
Operating income
260,597 171,560 515,263 331,045
Non-operating income (expense):
Interest expense, net
(92,622) (80,181) (182,432) (162,979)
Other
(8,147) (4,900) (20,603) (2,575)
(100,769) (85,081) (203,035) (165,554)
Income from continuing operations
before income taxes
159,828 86,479 312,228 165,491
Provision for income taxes
(58,165) (32,023) (113,425) (62,259)
Income from continuing operations
$101,663 $ 54,456 $198,803 $103,232
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES BY RESORT
(In thousands)
(Unaudited)
Three Months Ended Six Months
Ended
June 30, June 30, June 30,
June 30,
2004 2003
2004 2003
Bellagio
$ 261,857 $260,176 $ 540,491
$ 500,540
MGM Grand Las Vegas
217,398 180,333 440,418
364,476
The Mirage
149,204 145,268 288,258
295,375
Treasure Island
95,128 86,951
194,924 176,893
New York-New York
82,748 59,762
165,541 121,673
MGM Grand Detroit
112,067 102,478 215,984
197,247
Beau Rivage
82,192 76,862
155,178 147,273
Other operations
71,931 62,287
138,167 122,514
$1,072,525 $974,117 $2,138,961 $1,925,991
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - EBITDA BY RESORT
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003
2004 2003
Bellagio
$ 82,716 $ 93,505 $181,735 $161,668
MGM Grand Las Vegas
83,075 51,327 158,904
105,341
The Mirage
51,041 37,387 91,169
79,747
Treasure Island
26,312 23,119 57,615
49,342
New York-New York
31,248 22,782 63,372
48,297
MGM Grand Detroit
44,404 39,623 82,966
76,557
Beau Rivage
22,079 19,748 38,868
34,597
Other operations
13,579 10,126 26,144
19,028
Income from unconsolidated
affiliates
29,542 8,547
53,714 19,336
$383,996 $306,164 $754,487 $593,913
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO EBITDA BY RESORT
(In thousands)
(Unaudited)
Three Months Ended June 30, 2004
Depreci- Pre-
ation opening
Property
and and Restruc-
trans-
Operating amorti- start-up turing actions,
income zation expenses
costs net EBITDA
Bellagio
$ 58,232 $22,004 $ --
$3,000 $ (520) $ 82,716
MGM Grand
Las Vegas
55,752 22,170 1,501
900 2,752 83,075
The Mirage
38,149 12,903
-- --
(11) 51,041
Treasure
Island
17,312 8,886
118 --
(4) 26,312
New York-
New York
23,192 8,011
-- --
45 31,248
MGM Grand
Detroit
37,074 7,373
-- --
(43) 44,404
Beau Rivage
16,669 5,242
-- --
168 22,079
Other
operations
7,237 5,804
-- --
538 13,579
Unconsolidated
affiliates
29,542 --
-- --
-- 29,542
283,159 92,393 1,619
3,900 2,925 383,996
Corporate
and other
(22,562) 5,091
-- -- (987)
(18,458)
$260,597 $97,484 $1,619 $3,900
$1,938 $365,538
Three Months Ended June 30, 2003
Depreci- Pre-
ation opening
Property
and and Restruc-
trans-
Operating amorti- start-up turing
actions,
income zation expenses
costs net EBITDA
Bellagio
$ 66,267 $ 27,143 $ --
$ -- $ 95 $ 93,505
MGM Grand
Las Vegas
28,339 20,540
300 -- 2,148
51,327
The Mirage
25,131 12,332
-- -- (76)
37,387
Treasure
Island
14,397 8,600
-- 178 (56)
23,119
New York-
New York
14,847 5,938
2,015 -- (18)
22,782
MGM Grand
Detroit
30,480 8,543
300 -- 300
39,623
Beau Rivage
14,171 4,762
-- -- 815
19,748
Other
operations
5,483 4,783
-- -- (140)
10,126
Unconsolidated
affiliates
(3,281) --
11,828 -- --
8,547
195,834 92,641 14,443
178 3,068 306,164
Corporate
and other
(24,274) 8,403
453 370 26
(15,022)
$171,560 $101,044 $14,896 $548
$3,094 $291,142
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION
OF OPERATING INCOME TO EBITDA BY RESORT - continued
(In thousands)
(Unaudited)
Six Months Ended June 30, 2004
Depreci- Pre-
ation opening
Property
and and Restruc-
trans-
Operating amorti- start-up turing
actions,
income zation expenses
costs net EBITDA
Bellagio
$135,323 $ 42,356 $ --
$3,000 $1,056 $181,735
MGM Grand
Las Vegas
107,729 45,688 1,839
900 2,748 158,904
The Mirage
65,560 25,560
-- --
49 91,169
Treasure
Island
39,963 17,546
118 --
(12) 57,615
New York-
New York
47,949 15,464
(86) --
45 63,372
MGM Grand
Detroit
67,773 14,847
-- --
346 82,966
Beau Rivage
28,343 10,546
-- --
(21) 38,868
Other
operations
15,502 10,189
-- --
453 26,144
Unconsolidated
affiliates
53,714 --
-- --
-- 53,714
561,856 182,196 1,871
3,900 4,664 754,487
Corporate
and other
(46,593) 12,841 129
414 (987) (34,196)
$515,263 $195,037 $2,000 $4,314
$3,677 $720,291
Six Months Ended June 30, 2003
Depreci- Pre-
ation opening
Property
and and
Restruc- trans-
Operating amorti- start-up turing
actions,
income zation expenses
costs net EBITDA
Bellagio
$106,548 $ 55,015 $ --
$ -- $ 105 $161,668
MGM Grand
Las Vegas
55,218 40,728 891
25 8,479 105,341
The Mirage
54,825 24,767
-- 300 (145)
79,747
Treasure
Island
32,478 16,819
-- 178 (133)
49,342
New York-
New York
34,318 11,888 2,067
-- 24
48,297
MGM Grand
Detroit
58,677 17,124 300
-- 456 76,557
Beau Rivage
24,173 9,403
-- -- 1,021
34,597
Other
operations
9,388 9,780
-- -- (140)
19,028
Unconsolidated
affiliates
3,435 -- 15,901
-- --
19,336
379,060 185,524 19,159
503 9,667 593,913
Corporate
and other
(48,015) 16,070 2,284
650 243 (28,768)
$331,045 $201,594 $21,443 $1,153
$9,910 $565,145
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004
2003
Bellagio
Occupancy %
96.4% 96.3% 95.9%
94.5%
Average daily rate (ADR)
$240 $229 $247
$234
Revenue per available room
(REVPAR)
$231 $221 $237
$221
MGM Grand Las Vegas
Occupancy %
95.0% 94.9% 93.6%
93.8%
Average daily rate (ADR)
$131 $114 $135
$117
Revenue per available room
(REVPAR)
$124 $109 $126
$110
The Mirage
Occupancy %
98.6% 96.9% 96.4%
94.7%
Average daily rate (ADR)
$150 $134 $153
$141
Revenue per available room
(REVPAR)
$148 $130 $148
$134
Treasure Island
Occupancy %
99.0% 98.2% 97.8%
97.1%
Average daily rate (ADR)
$115 $99 $119
$104
Revenue per available room
(REVPAR)
$113 $97 $116
$101
New York-New York
Occupancy %
98.6% 98.8% 98.0%
98.6%
Average daily rate (ADR)
$116 $95 $118
$99
Revenue per available room
(REVPAR)
$115 $94 $115
$97
Beau Rivage
Occupancy %
94.9% 94.7% 90.5%
92.9%
Average daily rate (ADR)
$98 $98 $95
$93
Revenue per available room
(REVPAR)
$93 $93 $86
$86
Other operations
Occupancy %
75.5% 68.3% 72.3%
68.6%
Average daily rate (ADR)
$41 $42 $42
$43
Revenue per available room
(REVPAR)
$31 $29 $30
$30
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
(Unaudited)
June 30, December 31,
2004
2003
ASSETS Current assets:
Cash and cash
equivalents
$ 185,793 $
178,047
Accounts receivable,
net
166,166
139,475
Inventories
64,110
65,189
Income tax
receivable
--
9,901
Deferred income
taxes
48,458
49,286
Prepaid expenses
and other
77,189
89,641
Assets held
for sale
81,907
226,082
Total current assets
623,623
757,621
Property and equipment, net
8,790,673 8,681,339
Other assets:
Investments
in unconsolidated
affiliates
791,812
756,012
Goodwill and
other intangible
assets,
net
232,353
267,668
Deposits and
other assets, net
265,747
247,070
Total other assets
1,289,912 1,270,750
$10,704,208 $10,709,710
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 127,650 $
85,439
Income taxes
payable
38,118
--
Current portion
of long-term
debt
6,802
9,008
Accrued interest
on long-term
debt
95,629
87,711
Other accrued
liabilities
512,764
559,445
Liabilities
related to assets
held
for sale
7,207
23,456
Total current liabilities
788,170
765,059
Deferred income taxes
1,731,916 1,765,426
Long-term debt
5,526,728 5,521,890
Other long-term obligations
148,054
123,547
Stockholders' equity:
Common stock
($.01 par value:
authorized
300,000,000 shares,
issued 171,762,565
and
168,268,213
shares and
outstanding
138,684,079
and 143,096,213
shares)
1,718
1,683
Capital in
excess of par value
2,280,366 2,171,625
Deferred compensation
(14,871) (19,174)
Treasury stock,
at cost
(33,078,486
and 25,172,000
shares)
(1,105,189) (760,594)
Retained earnings
1,344,468 1,133,903
Accumulated
other comprehensive
income
2,848
6,345
Total stockholders' equity
2,509,340 2,533,788
$10,704,208 $10,709,710
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