MGM MIRAGE AND SUBSIDIARIES
SOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31, March 31,
2005 2004
Revenues:
Casino
$ 614,813 $ 558,723
Rooms
274,054 234,961
Food and beverage
243,478 217,764
Entertainment
88,147 67,242
Retail
44,879 45,098
Other
60,835 51,086
1,326,206 1,174,874
Less: Promotional
allowances
(122,071) (108,438)
1,204,135 1,066,436
Expenses:
Casino
310,789 283,920
Rooms
69,479 62,211
Food and beverage
134,311 119,620
Entertainment
60,065 46,633
Retail
29,584 28,546
Other
39,465 32,889
General and
administrative
158,364 146,298
Corporate
expense
26,791 15,738
Preopening
and start-up expenses
2,524
381
Restructuring
costs (credit)
(66) 414
Property transactions,
net
4,203 1,739
Depreciation
and amortization
110,495 97,553
946,004 835,942
Income from unconsolidated affiliates
35,045 24,172
Operating income
293,176 254,666
Non-operating income (expense):
Interest income
1,697
903
Interest expense,
net
(101,468) (89,810)
Non-operating
items from
unconsolidated
affiliates
(2,787) (6,205)
Other, net
(15,691) (7,154)
(118,249) (102,266)
Income from continuing operations
before income taxes
174,927 152,400
Provision
for income taxes
(63,848) (55,260)
Income from continuing operations
111,079 97,140
Discontinued operations
Income from
discontinued operations,
including
gain on disposal of $8,186
(three
months 2004)
-- 13,869
Provision
for income taxes
-- (5,161)
-- 8,708
Net income
$ 111,079 $ 105,848
Per share of common stock:
Basic:
Income from
continuing operations $
0.79 $ 0.68
Discontinued
operations
-- 0.06
Net income
per share
$ 0.79 $
0.74
Weighted average
shares outstanding
141,258 142,115
Diluted:
Income from
continuing operations $
0.75 $ 0.66
Discontinued
operations
-- 0.06
Net income
per share
$ 0.75 $
0.72
Weighted average
shares outstanding
147,323 146,847
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
March 31, March 31,
2005 2004
Income from continuing operations
$ 111,079 $ 97,140
Preopening and start-up expenses,
net
1,641
248
Restructuring costs (credit),
net
(43) 269
Property transactions, net
2,732 1,130
Loss on debt retirements, net
12,675 3,593
Adjusted earnings
$ 128,084 $ 102,380
Per diluted share of common stock:
Income from
continuing operations $
0.75 $ 0.66
Preopening
and start-up expenses, net
0.01
--
Restructuring
costs (credit), net
--
--
Property transactions,
net
0.02 0.01
Loss on debt
retirements, net
0.09 0.03
Adjusted EPS
$ 0.87 $
0.70
Weighted average
diluted shares outstanding 147,323
146,847
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME
FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended
March 31, March 31,
2005 2004
EBITDA
$ 410,332 $ 354,753
Preopening and start-up
expenses
(2,524) (381)
Restructuring costs (credit)
66 (414)
Property transactions,
net
(4,203) (1,739)
Depreciation and amortization
(110,495) (97,553)
Operating income
293,176 254,666
Non-operating income (expense):
Interest expense, net
(101,468) (89,810)
Other
(16,781) (12,456)
(118,249) (102,266)
Income from continuing operations
before income taxes
174,927 152,400
Provision for income
taxes
(63,848) (55,260)
Income from continuing operations
$ 111,079 $ 97,140
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES BY RESORT
(In thousands)
(Unaudited)
Three Months Ended
March 31, March 31,
2005 2004
Bellagio
$ 331,861 $ 278,634
MGM Grand Las Vegas
254,242 223,020
The Mirage
160,912 139,054
Treasure Island
100,337 99,796
New York-New York
91,148 82,793
MGM Grand Detroit
113,700 103,917
Beau Rivage
79,476 72,986
Other operations
72,459 66,236
$ 1,204,135 $ 1,066,436
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - EBITDA BY RESORT
(In thousands)
(Unaudited)
Three Months Ended
March 31, March 31,
2005 2004
Bellagio
$ 118,019 $ 99,019
MGM Grand Las Vegas
88,317 75,829
The Mirage
54,977 40,128
Treasure Island
30,331 31,303
New York-New York
38,554 32,124
MGM Grand Detroit
38,882 38,562
Beau Rivage
20,701 16,789
Other operations
12,297 12,565
Income from unconsolidated affiliates
35,045 24,172
$ 437,123 $ 370,491
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO EBITDA BY RESORT
(In thousands)
(Unaudited)
Three Months Ended March 31, 2005
Depreci- Pre-
ation opening Restruc- Property
and and turing
trans-
Operating amorti- start-up costs actions,
income zation expenses (credit)
net EBITDA
Bellagio
$ 85,175 $ 31,443 $ 665 $
-- $ 736 $ 118,019
MGM Grand
Las Vegas
60,182 25,196 1,609
-- 1,330 88,317
The Mirage
40,673 12,533 62
-- 1,709 54,977
Treasure Island
22,332 8,000 --
-- (1) 30,331
New York-New York 29,945
8,609 --
-- --
38,554
MGM Grand Detroit 31,865
7,015 --
-- 2
38,882
Beau Rivage
15,308 5,313 13
-- 67
20,701
Other operations
6,041 6,317 --
-- (61) 12,297
Unconsolidated
affiliates
34,976 --
69 --
-- 35,045
326,497 104,426 2,418
-- 3,782 437,123
Corporate and
other
(33,321) 6,069 106
(66) 421 (26,791)
$ 293,176 $ 110,495 $ 2,524 $ (66) $ 4,203
$ 410,332
Three Months Ended March 31, 2004
Depreci- Pre-
ation opening
Property
and and Restruc-
trans-
Operating amorti- start-up turing actions,
income zation expenses costs
net EBITDA
Bellagio
$ 77,091 $ 20,352 $ --
$ -- $ 1,576 $ 99,019
MGM Grand
Las Vegas
51,977 23,518 338
-- (4) 75,829
The Mirage
27,411 12,657 --
-- 60
40,128
Treasure Island
22,651 8,660 --
-- (8) 31,303
New York-New York 24,757
7,453 (86) --
-- 32,124
MGM Grand Detroit 30,699
7,474 --
-- 389 38,562
Beau Rivage
11,674 5,304 --
-- (189) 16,789
Other operations
8,265 4,385 --
-- (85) 12,565
Unconsolidated
affiliates
24,172 --
-- --
-- 24,172
278,697 89,803 252
-- 1,739 370,491
Corporate and
other
(24,031) 7,750 129
414 -- (15,738)
$ 254,666 $ 97,553 $ 381 $ 414
$ 1,739 $ 354,753
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - HOTEL STATISTICS
(Unaudited)
Three Months Ended
March 31, March 31,
2005 2004
Bellagio
Occupancy %
96.1% 95.4%
Average daily rate (ADR)
$247 $255
Revenue per available
room (REVPAR)
$237 $243
MGM Grand Las Vegas
Occupancy %
95.2% 92.2%
Average daily rate (ADR)
$159 $139
Revenue per available
room (REVPAR)
$152 $128
The Mirage
Occupancy %
97.9% 94.2%
Average daily rate (ADR)
$170 $156
Revenue per available
room (REVPAR)
$167 $147
Treasure Island
Occupancy %
98.2% 96.5%
Average daily rate (ADR)
$136 $123
Revenue per available
room (REVPAR)
$134 $118
New York-New York
Occupancy %
99.2% 97.5%
Average daily rate (ADR)
$140 $119
Revenue per available
room (REVPAR)
$139 $116
Beau Rivage
Occupancy %
89.2% 86.1%
Average daily rate (ADR)
$99 $91
Revenue per available
room (REVPAR)
$88 $78
Other operations
Occupancy %
70.3% 69.2%
Average daily rate (ADR)
$50 $43
Revenue per available
room (REVPAR)
$35 $30
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
March 31, December 31,
2005 2004
ASSETS
Current assets:
Cash and cash equivalents
$ 395,746 $ 435,128
Accounts receivable, net
218,360 204,151
Inventories
70,553 70,333
Deferred income taxes
39,670 28,928
Prepaid expenses and other
85,299 81,662
Total current assets
809,628 820,202
Property and equipment, net
8,909,721 8,914,142
Other assets:
Investments in unconsolidated
affiliates
856,241 842,640
Goodwill and other intangible
assets, net
232,902 233,335
Deposits and other assets, net
322,806 304,710
Total other assets
1,411,949 1,380,685
$ 11,131,298 $ 11,115,029
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 123,342 $ 198,050
Income taxes payable
15,762 4,991
Current portion of long-term debt
14
14
Accrued interest on long-term debt
82,828 116,997
Other accrued liabilities
586,340 607,925
Total current liabilities
808,286 927,977
Deferred income taxes
1,802,297 1,802,008
Long-term debt
5,334,650 5,458,848
Other long-term obligations
163,269 154,492
Stockholders' equity:
Common stock ($.01 par value:
authorized 300,000,000 shares,
issued 176,606,918 and 173,573,934
shares and outstanding 143,402,918
and 140,369,934 shares)
1,766 1,736
Capital in excess of par value
2,484,121 2,346,329
Deferred compensation
(8,978) (10,878)
Treasury stock, at cost
(33,204,000 and 33,204,000 shares) (1,110,551)
(1,110,551)
Retained earnings
1,657,314 1,546,235
Accumulated other comprehensive loss
(876) (1,167)
Total stockholders' equity 3,022,796
2,771,704
$ 11,131,298 $ 11,115,029
(1) Adjusted Earnings (and Adjusted
EPS) is presented solely as a
supplemental
disclosure because management believes that it is 1) a
widely
used measure of performance, and 2) a principal basis for
valuation
of gaming companies, as this measure is considered by many
to be
a better measure on which to base expectations of future
results
than income from continuing operations computed in accordance
with
generally accepted accounting principles ("GAAP").
Reconciliations
of GAAP income from continuing operations and EPS to
Adjusted
Earnings and EPS are included in the financial schedules
accompanying
this release.
(2) EBITDA is earnings before
interest and other non-operating income
(expense),
taxes, depreciation and amortization, restructuring,
preopening
and start-up expenses, and property transactions, net.
EBITDA
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. Management uses property-level EBITDA
(EBITDA
before corporate expense) 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 operating
income
to EBITDA are included in the financial schedules accompanying
this
release.
* * *
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