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MGM Mirage Inc., Reports 1st Qtr Net Income of
$111 million, Up 5% Over Prior Year; 
Room Rates, Gaming Volume Surge Up
Hotel Statistics

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LAS VEGAS, April 19, 2005 - MGM MIRAGE (NYSE: MGG) today reported its first quarter 2005 financial results. Adjusted earnings from continuing operations per diluted share ("Adjusted EPS") increased to an all-time record $0.87 in the first quarter of 2005, eclipsing the Company's previous best of $0.74 earned in the second quarter of 2004; the Company earned $0.70 in the 2004 first quarter. The strong earnings resulted from several positive factors, including strong gaming volumes and continued strength in hotel and other non-gaming results, driven by a strong convention calendar and increased room rates as well as new amenities at several resorts.

REVPAR (revenue per available room) at the Company's Las Vegas Strip resorts was $167, an impressive year-over-year increase of 15%, on top of last year's 11% first quarter increase over 2003. Table games volume, including baccarat, increased 9% in the quarter and slot revenue increased 13%.

Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, property transactions, and loss on early retirement of debt.(1) On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations increased to $0.75 in the 2005 quarter from $0.66 in the first quarter of 2004. GAAP diluted EPS, including the results of discontinued operations, was $0.75 in the 2005 period versus $0.72 in 2004.

"The excellent operating results of the first quarter continue to demonstrate the power of our focused strategy, and we continue to build momentum leading up to the combination with Mandalay Resort Group," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "Our ongoing investments in our premium portfolio of resorts will allow us to further raise the bar when it comes to generating superior results among gaming companies, and the addition of Mandalay's properties and people will further solidify our competitive position."

First Quarter 2005 Company Highlights

     *  Generated net revenues of $1.2 billion, up 13% from 2004;

     *  Produced property-level EBITDA(2) of $437 million, up 18% over prior
        year and an all-time Company record for any quarter; operating income
        of $293 million was up 15% over 2004;

     *  The addition of the Spa Tower at Bellagio propelled that resort to
        an all-time record quarterly profit;

     *  MGM Grand Las Vegas reported record results on several fronts as it
        successfully continued its repositioning of the resort, debuting the
        West Wing, newly renovated rooms offering modern style and amenities;

     *  Invested $105 million of capital in the Company's resorts, with new
        amenities including a poker room, a relocated race and sports book and
        a lounge -- Centrifuge -- at MGM Grand Las Vegas and the world-famous
        Carnegie Deli at The Mirage;

     *  Reduced debt by $124 million;

     *  Announced the sale of Mandalay's interest in MotorCity Casino in
        Detroit;

     *  Announced a 2-for-1 stock split, subject to stockholder approval of an
        increase in the number of authorized shares at the Company's annual
        meeting of stockholders on May 3, 2005.

Detailed Financial Results

The following table shows key financial results on a Company-wide basis
for the first quarter:
 

Three months ended March 31,
                                                  -------------------------
                                                  2005                 2004
                                                  ----                 ----
                                                        (In millions)
     Casino revenue                          $   614.8             $   558.7
     Non-casino revenue, net                     589.3                 507.7
     Net revenue                               1,204.1               1,066.4
     Operating income                            293.2                 254.7
     Income from continuing operations           111.1                  97.1
     Discontinued operations, net                   --                   8.7
     Net income                                  111.1                 105.8

     ------------------------------------------------------------------------

     Property-level EBITDA(2)                $   437.1             $   370.5
     EBITDA (after corporate expense)(2)         410.3                 354.8
     Adjusted Earnings                           128.1                 102.4

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 and MGM Grand Australia for all periods presented. The results of these operations are classified as discontinued operations.

Net revenue in the first quarter increased 13% from prior year. Results were strong in all operating departments. A solid convention calendar and increased visitation to Las Vegas yielded significant gains in room rates and the Company experienced excellent levels of customer play during the key Super Bowl and Chinese New Year periods.

Casino revenue increased 10% in the 2005 quarter. Table games volume, including baccarat, was up 9% from the prior year's quarter, with a 39% increase in baccarat volume, continuing the trend from the latter half of 2004. Table games hold percentages were at the mid-point of the Company's normal range for both the 2005 and 2004 first quarters. Company-wide slot revenue in the quarter was up 13% from 2004, on top of a 10% increase in 2004 over 2003. Bellagio's slot revenue increased over 30% due to the additional customers from the Spa Tower expansion, and other strong performances were turned in at Beau Rivage, MGM Grand Detroit and New York-New York.

Non-casino revenue was up 16% in the quarter. Hotel revenue was up 17%, with occupancy of 92% in the first quarter of 2005, versus 90% in 2004, and a higher average daily room rate ("ADR") of $155 versus $138 in 2004. This is the highest quarterly ADR in the Company's history. As a result, REVPAR was $143, up 15% over REVPAR of $124 in 2004. We had significantly more rooms available with the Bellagio expansion and a full complement of rooms available at New York-New York, which was remodeling its rooms in the prior year, partially offset by room remodel activity at MGM Grand Las Vegas.

Food and beverage revenue increased 12%, as the addition of several restaurants and lounges since the first quarter of 2004 as well as overall strong customer volumes generated increased utilization at our restaurants, lounges and nightclubs. The addition of the Spa Tower led to an 18% increase in food and beverage revenue at Bellagio. Entertainment revenues were up significantly, 31%, over the prior year quarter as a result of the contribution from KA.

EBITDA increased 16% for the quarter, reflecting the operating trends described above and the benefit of the results from Borgata, which led to a 45% increase in income from unconsolidated affiliates. The Company's property-level EBITDA margin was 36% in 2005 versus 35% in the 2004 first quarter, a record margin for the Company. Operating income increased 15% over prior year.

First quarter 2005 Adjusted Earnings increased by 25% compared to 2004 due primarily to the higher operating income, offset by higher interest expense from fixed rate borrowings. Non-operating income (expense) includes a $19.5 million ($0.09 per share, net of tax) loss on early retirement of debt, which is excluded from Adjusted Earnings, and $6.7 million ($0.03 per share, net of tax) of income from the favorable resolution of a pre-acquisition contingency related to the Mirage Resorts acquisition, which is included in Adjusted Earnings. For the first quarter of 2005, Adjusted Earnings excluded $26.2 million ($17.0 million, net of tax) of items as follows:

     *  Net property transactions of $4.2 million ($2.7 million, net of tax),
        including $3.1 million of demolition costs, primarily at MGM Grand
        Las Vegas in connection with room remodel activity and at The Mirage
        in connection with the showroom remodel, and other net losses on
        disposal of assets;

     *  Preopening and start-up expenses of $2.5 million ($1.6 million, net of
        tax), related to the Spa Tower, Residences at MGM Grand and other
        projects at MGM Grand Las Vegas, such as the new poker room and new
        restaurants;

     *  Loss on early retirement of debt of $19.5 million ($12.7 million, net
        of tax) related to the early redemption of the Company's 6.875% Senior
        Notes due February 2008, classified within "Other, net."

In the first quarter of 2004, items excluded in the determination of Adjusted Earnings included minor amounts of preopening and start-up expenses and restructuring costs, property transactions of $1.7 million ($1.1 million, net of tax) related primarily to the Bellagio expansion and room remodel projects, and a loss on early retirement of debt of $5.5 million ($3.6 million, net of tax) related to the repurchase and retirement of the Company's publicly-traded debt securities.

Income from discontinued operations includes the results of Golden Nugget Las Vegas, Golden Nugget Laughlin and MGM Grand Australia. Pretax income from discontinued operations was $14 million in the 2004 first quarter which included the $8 million gain on the sale of the Golden Nugget resorts.

Financial Position

The Company generated significant operating cash flow in the first quarter as a result of its positive operating results. The Company utilized available cash flow in part to repay $124 million of net debt and invest $105 million in capital projects.

First quarter capital investments included the costs for the completion of the Bellagio expansion, construction of the new theatre for Cirque du Soleil at The Mirage, the new golf course at Beau Rivage, room remodel and casino expansion activity at MGM Grand Las Vegas and other routine capital expenditures.

"We expect that tremendous cash flow generated by our resorts, along with the addition of Mandalay Resort Group, will fuel significant debt reduction through the remainder of 2005," said Jim Murren, MGM MIRAGE President, CFO and Treasurer. "We are also planning on continuing our targeted capital investments, with plans for several new restaurants and other amenities at The Mirage and MGM Grand Las Vegas, and we are working at a rapid pace on the design phase of Project CityCenter."

Outlook

The Company expects same-store REVPAR growth of approximately 10% for the second quarter, after an 11% increase in the prior year. "Our trends remain vibrant and strong room pricing should once again lead to a year-over-year increase in EBITDA," Mr. Murren said. "We believe our Adjusted Earnings, on a same store basis, will be in the range of $0.70 to $0.75 per share, excluding any impact from the Mandalay merger and before adjusting for our proposed 2-for-1 stock split."
 

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.

                               *      *      *
 

MGM MIRAGE, headquartered in Las Vegas, Nevada, is one of the world's leading and most respected hotel and gaming companies. The Company owns and operates 11 casino resorts located in Nevada, Mississippi and Michigan, and has investments in three other casino resorts in Nevada, New Jersey and the United Kingdom. 

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: MGM Mirage Reports Lower 4th Qtr Net Income of $67.9 million, Down from $91.7 million the Year Earlier / 2004 Most Profitable Year Ever, Driven by Record Operating performances at Bellagio, MGM Grand Las Vegas and Beau Rivage / February 2005
MGM MIRAGE Reports 1st Qtr 2004 Net Profit of $105.8 million Double from 2003; Most Profitable Quarter Ever / April 2004
MGM Mirage Posts 38% Drop in 1st Qtr Net Income, $51 million vs 82 Million / Hotel Operating Statistics / April 2003


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