Hotel Online  Special Report

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MGM Mirage Third-Quarter Profit Nearly Triples, 
$126.9 million Compared to Last Year $47.2 million
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Planned Acquisition of Mandalay Resort Group
On Track to Close in the 1st Qtr of 2005
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Hotel Statistics

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LAS VEGAS, Oct. 20, 2004 - MGM MIRAGE (NYSE: MGG) today reported its third quarter 2004 financial results. Adjusted earnings from continuing operations per diluted share ("Adjusted EPS") rose 68% to $0.57 in the third quarter of 2004 from $0.34 in the 2003 quarter, representing the Company's best third quarter performance in its history and continuing a strong trend of year-over-year increases in earnings during 2004. The Company's targeted enhancements to its Las Vegas resorts led to increased customer spending, and Las Vegas visitation remains robust. REVPAR (revenue per available room) rose 10% at the Company's Las Vegas resorts in the 2004 quarter, on top of an 8% increase in 2003 compared to 2002. Other factors affecting current period results included table games hold percentage toward the low end of the Company's normal range, offset by the benefit of continued strong collections of casino receivables resulting in a lower bad debt provision than the prior year quarter. The lower bad debt provision equates to a benefit of approximately $0.07 per diluted share for the current quarter. Casino revenues increased 5% despite the low table games hold percentage, as slot revenues increased a solid 9%.

Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, net property transactions, tax adjustments and loss on early retirement of debt(1). On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations doubled to $0.54 for the third quarter of 2004 from $0.27 in the 2003 quarter. GAAP diluted EPS, including the results of discontinued operations, was $0.89 in the 2004 period versus $0.31 in 2003.

"All of our resorts continue to generate industry-leading results, with our success in the third quarter building upon the foundation we've established throughout 2004," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We believe these positive trends will continue into the fourth quarter and throughout 2005. All of our indicators point to continued success for the Las Vegas leisure and convention businesses in the foreseeable future, and our resorts are uniquely positioned to benefit from that success."

Third Quarter Company Highlights

  • Generated net revenues of $1.04 billion, up 6% over 2003;
  • Company-wide REVPAR of $117, up 9% over prior year's quarter;
  • Produced property-level EBITDA(2) of $348 million, up 20% over the 2003 quarter.  Operating income was up 40% over the prior year, to $222 million.  The Company's property-level EBITDA margin was 34%;
  • Opened several new restaurants and entertainment venues, including the remodeled Todd English's Olives and Michael Mina's signature restaurant at Bellagio, Shibuya at MGM Grand Las Vegas, and Tangerine, the new nightclub at TI;
  • Invested $173 million of capital in the Company's properties, including continued construction of the Bellagio expansion, continued enhancements at MGM Grand Las Vegas and the completion of the remodel of all the standard rooms at New York-New York;
  • Issued $1 billion of senior notes at favorable fixed interest rates in two separate transactions;
  • Obtained commitments to increase the borrowing capacity of the Company's senior credit facility to $7 billion, providing the necessary financing for the Mandalay acquisition at an attractive cost of capital.
Detailed Financial Results

The following table shows key financial results on a Company-wide basis for the third quarter and year to date.
 

                               Three months ended     Nine months ended
                                     September 30,         September 30,
                                    2004       2003       2004       2003
                                                (In millions)
     Casino revenue, net           $541.0     $514.0    $1,651.4   $1,519.2
     Non-casino revenue, net        495.4      462.9     1,524.0    1,383.6
     Net revenue                  1,036.4      976.9     3,175.4    2,902.8
     Operating income               222.4      158.5       737.6      489.6
     Income from continuing
      operations                     76.2       41.4       275.0      144.6
     Discontinued operations, net    50.7        5.8        62.4        7.4
     Net income                     126.9       47.2       337.4      152.0

     Property-level EBITDA(2)      $347.6     $289.4    $1,102.1     $883.3
     EBITDA (after corporate
      expense)(2)                   328.5      273.9     1,048.7      839.1
     Adjusted Earnings               81.0       52.6       289.9      176.9

Except where noted, all references in this release to operating results, including statistical information, exclude the results of Golden Nugget Las Vegas, Golden Nugget Laughlin, MGM Grand Australia and MGM MIRAGE Online for all periods presented. The results of these operations are classified as discontinued operations.

Net revenue in the third quarter increased 6% from the 2003 third quarter. This increase was due to strong casino and hotel volumes, continued increases in room rates and higher spending by our customers throughout our resorts.

Casino revenue increased 5% in the 2004 quarter. Table games volume, including baccarat, was consistent with prior year levels. The Company's table games hold percentage was toward the low end of the normal range in the September 2004 quarter, and was consistent with the hold percentage experienced in 2003. Company-wide slot revenue in the quarter was up 9% from 2003. Several resorts experienced double-digit increases in slot revenues, including New York-New York, TI, Beau Rivage, MGM Grand Detroit, and Primm Valley Resorts.

Non-casino revenue was up 7% in the quarter. Hotel revenue was up 8%, with a higher occupancy rate of 93% in the third quarter of 2004 versus 92% in 2003, and a higher average daily room rate ("ADR") of $125 versus $116 in 2003. As a result, revenue per available room ("REVPAR") was $117, an increase of 9% over 2003. REVPAR at the Company's Las Vegas resorts was up 10% over the prior year to $134.

Food and beverage, entertainment, retail and other revenues were up 5% in the 2004 quarter. The Company believes it is capturing a greater share of customer spending due to the exciting new restaurant, entertainment and other amenities introduced in the past year.

Consolidated EBITDA increased 20% for the quarter, reflecting the strong revenue results and operating leverage inherent with higher hotel room rates. The property-level EBITDA margin was 34% in 2004, up from 30% in the prior year quarter and the Company's highest third quarter margin since the 2000 merger of MGM Grand and Mirage Resorts. Additionally, the Company benefited from the increased contribution of Borgata, leading to an increase in income from unconsolidated affiliates of 75% over 2003. Operating income increased 40% due to the increased property-level EBITDA and lower preopening and restructuring expenses in the current year.

Third quarter Adjusted Earnings increased 54% compared to 2003 due to the increase in operating income described above. Net interest expense increased due to higher average borrowings, slightly higher variable market interest rates and the issuance of fixed rate debt in the quarter.

For the third quarter of 2004, Adjusted Earnings excluded a net $6.5 million ($4.7 million, net of tax) of items. These items included:

  • Preopening and start-up expenses of $1.6 million ($1.0 million, net of tax), primarily related to new restaurants and KA, the new Cirque duSoleil production scheduled to open in November 2004, at MGM Grand Las Vegas;
  • Restructuring costs of $1.6 million ($1.0 million, net of tax), the result of staffing reductions at MGM Grand Detroit as a result of the recent gaming tax increase in Michigan;
  • Net property transactions of $1.7 million ($1.1 million, net of tax), including demolition costs related to the Bellagio expansion, and other net losses on disposal of assets;
  • Tax adjustments of $1.6 million, representing additional state deferred taxes related to capital investments in New Jersey, partially offset by the reversal of reserves for prior year tax issues as the statutes of limitations on those years expired.
In the third quarter of 2003, items excluded in the determination of Adjusted Earnings totaled $17.1 million ($11.2 million, net of tax) and included preopening and start-up expenses of $7.3 million ($4.8 million, net of tax), primarily related to Borgata and New York-New York; restructuring costs of $4.0 million ($2.6 million, net of tax), primarily related to the termination of an operating lease at MGM Grand Las Vegas; property transactions, net of $2.6 million ($1.7 million, net of tax), primarily related to demolition costs for the Bellagio expansion and the KA theatre at MGM Grand Las Vegas; and loss on early retirement of debt of $3.2 million ($2.1 million, net of tax).

The Company's effective income tax rate was 37.4% in the third quarter versus 35.8% in the prior year's quarter. The net tax adjustments described above caused a portion of the increase in the effective rate. Additionally, the Company incurred higher-than-normal non-deductible costs related to funding support of ballot initiatives in Michigan.

Income from discontinued operations includes the results of the Golden Nugget Las Vegas and Golden Nugget Laughlin resorts, MGM MIRAGE Online and MGM Grand Australia. Pretax income from discontinued operations was $76 million in the third quarter of 2004, including a $74 million gain ($51 million, net of tax) on the sale of MGM Grand Australia. This compares to income of $9 million, including $3 million of allocated interest, in the 2003 period.

Financial Position

Third quarter capital investments of $173 million included $79 million for the Bellagio expansion and $15 million related to the renovation of the Emerald Tower and the 29th floor suites at MGM Grand Las Vegas. Other expenditures related to continued enhancements to dining and entertainment venues, as well as the completion of the standard room remodel project at New York-New York.

During the quarter, the Company issued $1.0 billion of fixed rate debt at favorable interest rates. In August 2004, the Company issued $550 million of 6 3/4% senior notes due 2012 at par and in September 2004, the Company issued $450 million of 6% Senior Notes due 2009 at a premium to yield 5.65%. Upon issuance, these proceeds were used to repay amounts outstanding under the Company's senior credit facility.

In addition, the Company has received sufficient commitments from its lenders to increase the capacity of its senior credit facility to $7 billion, providing the necessary financing for the pending Mandalay acquisition.

As of September 30, 2004, the Company had approximately $2.3 billion of available borrowings under its existing senior credit facility.

"We have created the financial foundation for the upcoming merger with Mandalay Resort Group with the recent issuances of Senior Notes and our commitments on a new senior credit facility," said MGM MIRAGE President, CFO and Treasurer, Jim Murren. "While the fixed rate issuances have a negative short-term impact on reported EPS, we believe our capital structure provides us the optimal post-acquisition financing at attractive rates. We expect to rapidly de-leverage our Company, utilizing the significant free cash flow generated by the combination of MGM MIRAGE and Mandalay," Mr. Murren said.

Outlook

The Company expects REVPAR growth to be in the 8-10% range in the fourth quarter of 2004, on top of a 5% year-over-year increase in the 2003 fourth quarter. Property-level EBITDA is expected to increase over the prior year, benefiting from strong customer activity, offset by several factors including increased gaming taxes in Detroit and 3% fewer room nights available. For the full year 2004, the Company will earn over $1.4 billion in property-level EBITDA, an all-time record and well in excess of the Company's original expectations. Taking into account the higher non-operating items, primarily higher interest expense, the Company expects to earn in the range of $0.35 to $0.45 in the fourth quarter on an Adjusted EPS basis, compared to $0.36 in the prior year.

"We are pleased with the continued positive REVPAR trends and ongoing strength across all operating areas, and expect such trends to continue into 2005," Mr. Murren said. "A significant contributor to fourth quarter profits is the New Year's holiday and the period leading up to New Year's, and it is difficult for us to predict results for that period at this early stage."
 
 

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

                            Three Months Ended         Nine Months Ended
                          Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                            2004         2003         2004         2003
    Revenues:
      Casino            $  540,957   $  513,994  $ 1,651,371  $ 1,519,159
      Rooms                223,001      206,039      690,266      632,026
      Food and beverage    205,262      190,126      635,066      567,627
      Entertainment         67,099       71,014      200,312      195,642
      Retail                46,023       48,257      139,193      135,651
      Other                 63,006       53,435      180,107      160,792
                         1,145,348    1,082,865    3,496,315    3,210,897
      Less: Promotional
       allowances         (108,952)    (106,023)    (320,958)    (308,064)
                         1,036,396      976,842    3,175,357    2,902,833
    Expenses:
      Casino               274,230      263,329      821,351      777,157
      Rooms                 60,329       59,702      184,629      176,518
      Food and beverage    120,156      111,221      360,843      323,167
      Entertainment         48,142       49,920      142,269      140,030
      Retail                29,867       30,378       88,945       86,226
      Other                 38,249       34,046      109,461       97,815
      Provision for
       doubtful accounts   (11,696)       3,847       (7,734)      18,267
      General and
       administrative      160,962      153,019      458,663      437,696
      Corporate expense     19,183       15,456       53,379       44,224
      Preopening and
       start-up expenses     1,584        7,316        3,584       28,759
      Restructuring costs    1,587        4,034        5,901        5,187
      Property
       transactions, net     1,677        2,600        5,354       12,510
      Depreciation and
       amortization        101,245      101,450      296,282      303,044
                           845,515      836,318    2,522,927    2,450,600

    Income from
     unconsolidated
     affiliates             31,476       18,018       85,190       37,354

    Operating income       222,357      158,542      737,620      489,587

    Non-operating income
     (expense):
      Interest income        1,421          790        3,440        3,232
      Interest expense,
       net                 (95,262)     (85,210)    (277,694)    (248,189)
      Non-operating
       items from
       unconsolidated
       affiliates           (6,419)      (3,998)     (19,314)      (4,222)
      Other, net              (435)      (5,670)     (10,162)     (10,463)
                          (100,695)     (94,088)    (303,730)    (259,642)

    Income from
     continuing
     operations before
     income taxes          121,662       64,454      433,890      229,945
      Provision for
       income taxes        (45,495)     (23,079)    (158,920)     (85,338)
    Income from
     continuing
     operations             76,167       41,375      274,970      144,607

    Discontinued
     operations
      Income from
       discontinued
       operations,
       including gain
       (loss) on
       disposal of
       $74,352 (three
       months 2004),
       $82,538 (nine
       months 2004) and
       ($7,357) (nine
       months 2003)         75,529        8,679       94,207        7,090
      Benefit
       (provision)
       for income
       taxes               (24,815)      (2,845)     (31,731)         265
                            50,714        5,834       62,476        7,355

    Net income          $  126,881   $   47,209  $   337,446  $   151,962
 

    Per share of
     common stock:
      Basic:
      Income from
       continuing
       operations       $     0.55   $     0.28  $      1.97  $      0.96
      Discontinued
       operations             0.37         0.04         0.44         0.05
      Net income
       per share        $     0.92   $     0.32  $      2.41  $      1.01

      Weighted
       average shares
       outstanding         137,786      149,051      139,933      150,616

      Diluted:
      Income from
       continuing
       operations       $     0.54   $     0.27  $      1.90  $      0.95
      Discontinued
       operations             0.35         0.04         0.43         0.04
      Net income
       per share        $     0.89   $     0.31  $      2.33  $      0.99

      Weighted average
       shares
       outstanding         142,260      152,740      144,616      152,994
 

                           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         Nine Months Ended
                          Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                            2004         2003         2004         2003
    Income from
     continuing
     operations         $   76,167   $   41,375   $  274,970   $  144,607
    Preopening and
     start-up expenses,
     net                     1,030        4,755        2,330       18,693
    Restructuring costs,
     net                     1,032        2,623        3,836        3,372
    Property transactions,
     net                     1,090        1,690        3,480        8,132
    Tax adjustments          1,643           --        1,643           --
    Loss on debt
     retirements, net           --        2,109        3,593        2,109
    Adjusted earnings   $   80,962   $   52,552   $  289,852   $  176,913

    Per diluted share
     of common stock:
      Income from
       continuing
       operations       $     0.54   $     0.27   $     1.90   $     0.95
      Preopening and
       start-up expenses,
       net                      --         0.03         0.02         0.13
      Restructuring
       costs,
       net                    0.01         0.02         0.03         0.02
      Property
       transactions,
       net                    0.01         0.01         0.02         0.05
      Tax adjustments         0.01           --         0.01           --
      Loss on debt
       retirements,
       net                      --         0.01         0.02         0.01
      Adjusted EPS      $     0.57   $     0.34   $     2.00   $     1.16

      Weighted average
       diluted shares
       outstanding         142,260      152,740      144,616      152,994
 

                           MGM MIRAGE AND SUBSIDIARIES
    RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING OPERATIONS
                                  (In thousands)
                                   (Unaudited)

                            Three Months Ended         Nine Months Ended
                          Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                            2004         2003         2004         2003

    EBITDA              $  328,450   $  273,942   $1,048,741   $  839,087
      Preopening and
       start-up expenses    (1,584)      (7,316)      (3,584)     (28,759)
      Restructuring costs   (1,587)      (4,034)      (5,901)      (5,187)
      Property
       transactions,
       net                  (1,677)      (2,600)      (5,354)     (12,510)
      Depreciation
       and amortization   (101,245)    (101,450)    (296,282)    (303,044)
    Operating income       222,357      158,542      737,620      489,587

    Non-operating
     income (expense):
      Interest expense,
       net                 (95,262)     (85,210)    (277,694)    (248,189)
      Other                 (5,433)      (8,878)     (26,036)     (11,453)
                          (100,695)     (94,088)    (303,730)    (259,642)

    Income from
     continuing
     operations before
     income taxes          121,662       64,454      433,890      229,945
      Provision for
       income taxes        (45,495)     (23,079)    (158,920)     (85,338)
    Income from
     continuing
     operations         $   76,167   $   41,375   $  274,970   $  144,607
 

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

                            Three Months Ended       Nine Months Ended
                          Sept. 30,   Sept. 30,   Sept. 30,    Sept. 30,
                             2004        2003        2004         2003
    Bellagio            $   247,745   $ 233,453 $   788,236  $   733,993
    MGM Grand Las Vegas     210,436     194,502     650,854      558,978
    The Mirage              137,031     148,481     425,289      443,856
    Treasure Island          92,997      87,243     287,921      264,136
    New York-New York        86,094      72,052     251,635      193,725
    MGM Grand Detroit       104,835      97,752     320,819      294,999
    Beau Rivage              79,990      79,081     235,168      226,354
    Other operations         77,268      64,278     215,435      186,792
                        $ 1,036,396   $ 976,842 $ 3,175,357  $ 2,902,833

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

                            Three Months Ended       Nine Months Ended
                          Sept. 30,   Sept. 30,   Sept. 30,    Sept. 30,
                             2004        2003        2004         2003
    Bellagio            $    77,126   $  62,004 $   258,861  $   223,672
    MGM Grand Las Vegas      69,483      58,729     228,387      164,070
    The Mirage               39,043      40,811     130,212      120,558
    Treasure Island          25,043      18,981      82,658       68,323
    New York-New York        32,845      26,014      96,217       74,311
    MGM Grand Detroit        35,604      35,335     118,570      111,892
    Beau Rivage              22,846      20,206      61,714       54,803
    Other operations         14,167       9,300      40,311       28,328
    Income from
     unconsolidated
     affiliates              31,476      18,018      85,190       37,354
                        $   347,633   $ 289,398 $ 1,102,120  $   883,311
 

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

                      Three Months Ended September 30, 2004

                               Depreci- Pre-
                               ation    opening            Property
                               and      and       Restruc- trans-
                    Operating  amorti-  start-up  turing   actions,
                    income     zation   expenses  costs    net       EBITDA
    Bellagio      $  53,041 $   22,257  $   288  $    --  $ 1,540 $  77,126
    MGM
     Grand
     Las
     Vegas           43,659     25,130    1,146       --     (452)   69,483
    The
     Mirage          24,930     13,423       --       --      690    39,043
    Treasure
     Island          17,097      7,967      143       --     (164)   25,043
    New York-
     New York        24,252      8,586        7       --       --    32,845
    MGM
     Grand
     Detroit         26,207      7,810       --    1,587       --    35,604
    Beau
     Rivage          17,504      5,219       --       --      123    22,846
    Other
     operations       8,540      5,632       --       --       (5)   14,167
    Unconsolidated
     affiliates      31,476         --       --       --       --    31,476
                    246,706     96,024    1,584    1,587    1,732   347,633
    Corporate
     and
     other          (24,349)     5,221       --       --      (55)  (19,183)
                 $  222,357 $  101,245  $ 1,584  $ 1,587  $ 1,677 $ 328,450
 

                      Three Months Ended September 30, 2003

                               Depreci- Pre-
                               ation    opening             Property
                               and      and        Restruc- trans-
                   Operating   amorti-  start-up   turing   actions,
                   income      zation   expenses   costs    net      EBITDA
    Bellagio     $   36,608 $   24,613  $    --  $    --  $   783 $  62,004
    MGM
     Grand
     Las
     Vegas           30,414     22,573      675    3,856    1,211    58,729
    The
     Mirage          27,928     12,366       --       --      517    40,811
    Treasure
     Island          10,449      8,521       --       --       11    18,981
    New York-
     New York        17,006      6,534    2,320      178      (24)   26,014
    MGM
     Grand
     Detroit         27,441      7,672      150       --       72    35,335
    Beau
     Rivage          14,815      5,237       --       --      154    20,206
    Other
     operations       4,702      4,723       --       --     (125)    9,300
    Unconsolidated
     affiliates      14,593         --    3,425       --       --    18,018
                    183,956     92,239    6,570    4,034    2,599   289,398
    Corporate
     and
     other          (25,414)     9,211      746       --        1   (15,456)
                 $  158,542 $  101,450  $ 7,316  $ 4,034  $ 2,600 $ 273,942
 

                           MGM MIRAGE AND SUBSIDIARIES
        RECONCILIATION OF OPERATING INCOME TO EBITDA BY RESORT - continued
                                  (In thousands)
                                   (Unaudited)

                       Nine Months Ended September 30, 2004

                              Depreci- Pre-
                              ation    opening            Property
                              and      and       Restruc- trans-
                   Operating  amorti-  start-up  turing   actions,
                   income     zation   expenses  costs    net        EBITDA
    Bellagio     $  188,364 $   64,613  $   288  $ 3,000 $ 2,596 $  258,861
    MGM
     Grand
     Las
     Vegas          151,388     70,818    2,985      900   2,296    228,387
    The
     Mirage          90,490     38,983       --       --     739    130,212
    Treasure
     Island          57,060     25,513      261       --    (176)    82,658
    New York-
     New York        72,201     24,050      (79)      --      45     96,217
    MGM
     Grand
     Detroit         93,980     22,657       --    1,587     346    118,570
    Beau
     Rivage          45,847     15,765       --       --     102     61,714
    Other
     operations      24,042     15,821       --       --     448     40,311
    Unconsolidated
     affiliates      85,190         --       --       --      --     85,190
                    808,562    278,220    3,455    5,487   6,396  1,102,120
    Corporate
     and
     other          (70,942)    18,062      129      414  (1,042)   (53,379)

                 $  737,620 $  296,282  $ 3,584  $ 5,901 $ 5,354 $1,048,741
 

                       Nine Months Ended September 30, 2003

                             Depreci-  Pre-
                             ation     opening            Property
                             and       and       Restruc- trans-
                   Operating amorti-   start-up  turing   actions,
                   income    zation    expenses  costs    net        EBITDA
    Bellagio     $  143,156 $   79,628 $     --  $    -- $   888 $  223,672
    MGM
     Grand
     Las
     Vegas           85,632     63,301    1,566    3,881   9,690    164,070
    The
     Mirage          82,753     37,133       --      300     372    120,558
    Treasure
     Island          42,927     25,340       --      178    (122)    68,323
    New York-
     New York        51,324     18,422    4,387      178      --     74,311
    MGM
     Grand
     Detroit         86,118     24,796      450       --     528    111,892
    Beau
     Rivage          38,988     14,640       --       --   1,175     54,803
    Other
     operations      14,090     14,503       --       --    (265)    28,328
    Unconsolidated
     affiliates      18,028         --   19,326       --      --     37,354
                    563,016    277,763   25,729    4,537  12,266    883,311
    Corporate
     and
     other          (73,429)    25,281    3,030      650     244    (44,224)

                 $  489,587 $  303,044 $ 28,759  $ 5,187 $12,510 $  839,087
 

MGM MIRAGE AND SUBSIDIARIES
                       SUPPLEMENTAL DATA - HOTEL STATISTICS
                                   (Unaudited)

                                  Three Months Ended       Nine Months Ended
                                Sept. 30,    Sept. 30,   Sept. 30, Sept. 30,
                                  2004         2003        2004      2003
    Bellagio
      Occupancy %                 97.3%       96.7%       96.4%      95.2%
      Average daily rate (ADR)     $224        $219        $239       $229
      Revenue per available
       room (REVPAR)               $218        $212        $231       $218

    MGM Grand Las Vegas
      Occupancy %                 95.9%       95.6%       94.3%      94.4%
      Average daily rate (ADR)     $121        $112        $131       $115
      Revenue per available
       room (REVPAR)               $116        $107        $123       $109

    The Mirage
      Occupancy %                 98.1%       98.2%       97.0%      95.9%
      Average daily rate (ADR)     $144        $129        $150       $137
      Revenue per available
       room (REVPAR)               $142        $126        $146       $131

    Treasure Island
      Occupancy %                 98.2%       97.8%       97.9%      97.4%
      Average daily rate (ADR)     $109         $98        $115       $102
      Revenue per available
       room (REVPAR)               $107         $96        $113       $100

    New York-New York
      Occupancy %                 98.5%       98.4%       98.2%      98.5%
      Average daily rate (ADR)     $109         $95        $115        $97
      Revenue per available
       room (REVPAR)               $108         $93        $113        $96

    Beau Rivage
      Occupancy %                 92.6%       94.0%       91.2%      93.3%
      Average daily rate (ADR)     $100         $97         $96        $94
      Revenue per available
       room (REVPAR)                $92         $91         $88        $88

    Other operations
      Occupancy %                 74.4%       68.7%       73.0%      68.6%
      Average daily rate (ADR)      $41         $42         $42        $43
      Revenue per available
       room (REVPAR)                $31         $29         $31        $29
 

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

                                                  September 30,   December 31,
                                                      2004           2003

                                      ASSETS
    Current assets:
      Cash and cash equivalents                $     355,632  $     178,047
      Accounts receivable, net                       172,408        139,475
      Inventories                                     64,173         65,189
      Income tax receivable                               --          9,901
      Deferred income taxes                           38,337         49,286
      Prepaid expenses and other                      88,651         89,641
      Assets held for sale                                --        226,082
        Total current assets                         719,201        757,621

    Property and equipment, net                    8,862,740      8,681,339

    Other assets:
      Investments in unconsolidated affiliates       805,046        756,012
      Goodwill and other intangible assets,
       net                                           233,059        267,668
      Deposits and other assets, net                 278,784        247,070
        Total other assets                         1,316,889      1,270,750
                                               $  10,898,830  $  10,709,710

                       LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Accounts payable                         $     101,584  $      85,439
      Income taxes payable                            46,572             --
      Current portion of long-term debt                   14          9,008
      Accrued interest on long-term debt              77,632         87,711
      Other accrued liabilities                      557,681        559,445
      Liabilities related to assets held for
       sale                                               --         23,456
        Total current liabilities                    783,483        765,059

    Deferred income taxes                          1,772,269      1,765,426
    Long-term debt                                 5,569,768      5,521,890
    Other long-term obligations                      141,925        123,547
    Stockholders' equity:
      Common stock ($.01 par value:
       authorized 300,000,000 shares, issued
       171,875,786 and 168,268,213 shares
       and outstanding 138,682,786 and
       143,096,213 shares)                             1,719          1,683
      Capital in excess of par value               2,284,353      2,171,625
      Deferred compensation                          (12,947)       (19,174)
      Treasury stock, at cost (33,193,000
       and 25,172,000 shares)                     (1,110,228)      (760,594)
      Retained earnings                            1,471,349      1,133,903
      Accumulated other comprehensive income
       (loss)                                         (2,861)         6,345
        Total stockholders' equity                 2,631,385      2,533,788
                                               $  10,898,830  $  10,709,710

MGM MIRAGE (NYSE: MGG), one of the world's leading and most respected hotel and gaming companies, owns and operates 11 casino resorts located in Nevada, Mississippi and Michigan, and has investments in two other casino resorts in Nevada and New Jersey. The company is headquartered in Las Vegas, Nevada, and offers an unmatched collection of casino resorts with a limitless range of choices for guests. Guest satisfaction is paramount, and the company has approximately 40,000 employees committed to that result. 

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.


 
Contact:
MGM MIRAGE
http://www.mgmmirage.com
Also See: Pansy Ho Chiu-king and MGM MIRAGE Will Co-own and Jointly Operate a Major Hotel Casino in Macau S.A.R. / June 2004
MGM MIRAGE Almost Doubles 2nd Qtr Profit, $104.7 million compared with $53.8 million Previous Year / Hotel Statistics / July 2004

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