MGM Resorts · Earnings release

MGM Resorts International

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Twelve Months Ended

Revenues

Casino

$

$

$

$

Rooms

Food and beverage

Entertainment, retail and other

Expenses

Casino

Rooms

Food and beverage

Entertainment, retail and other

General and administrative

Corporate expense

Preopening and start-up expenses

Property transactions, net

Goodwill impairment

—

—

Depreciation and amortization

Income (loss) from unconsolidated affiliates

)

)

Operating income

Non-operating income (expense)

Interest expense, net of amounts capitalized

)

)

)

)

Non-operating items from unconsolidated

affiliates

)

)

)

Other, net

)

)

)

)

)

)

Income before income taxes

Benefit (provision) for income taxes

)

Net income

Less: Net income attributable to noncontrolling interests

)

)

)

)

Net income attributable to MGM Resorts International

$

$

$

$

Earnings per share

Basic

$

$

$

$

Diluted

$

$

$

$

Weighted average common share outstanding

Basic

Diluted

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

$

Accounts receivable, net

Inventories

Income tax receivable

Prepaid expenses and other

Assets held for sale

—

Total current assets

Property and equipment, net

Investments in and advances to unconsolidated affiliates

Goodwill

Other intangible assets, net

Operating leaseright-of-use assets, net

Deferred income taxes

Other long-term assets, net

$

$

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts and construction payable

$

$

Accrued interest on long-term debt

Other accrued liabilities

Liabilities related to assets held for sale

—

Total current liabilities

Deferred income taxes

Long-term debt, net

Operating lease liabilities

Other long-term obligations

Total liabilities

Redeemable noncontrolling interests

Stockholders’ equity

Capital in excess of par value

—

—

Retained earnings

Accumulated other comprehensive income (loss)

)

Total MGM Resorts International stockholders’ equity

Noncontrolling interests

Total stockholders’ equity

$

$

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

Las Vegas Strip Resorts

$

$

$

$

Regional Operations

MGM China

MGM Digital

Management and other operations

$

$

$

$

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - SEGMENT ADJUSTED EBITDAR and CONSOLIDATED ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

Las Vegas Strip Resorts

$

$

$

$

Regional Operations

MGM China

MGM Digital (1)

)

)

)

)

Unconsolidated affiliates - BetMGM and other(2)

)

)

Management and other operations

)

Stock compensation

)

)

)

)

Triple net lease rent expense

)

)

)

)

Corporate (3)

)

)

)

)

Consolidated Adjusted EBITDA

$

$

Additional Information:

Non-cash rent (4)

$

$

$

$

(1)

MGM Digital consists of LeoVegas and other consolidated subsidiaries that offer interactive gaming.

(2)

Represents the Company’s share of operating income (loss) of unconsolidated affiliates.

(3)

Includes amounts related to MGM China of $29 million and $65 million for current quarter and current

year, respectively, and of $9 million and $50 million for prior year quarter and prior year, respectively.

(4)

Represents the excess of expense over cash paid related to triple net operating and ground leases.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO CONSOLIDATED ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

Net income attributable to MGM Resorts International

$

$

$

$

Plus: Net income attributable to noncontrolling interests

Net income

Provision (benefit) for income taxes

)

)

)

Income before income taxes

Non-operating (income) expense:

Interest expense, net of amounts capitalized

Other, net

)

)

Operating income

Preopening and start-up expenses

Property transactions, net

Goodwill impairment

—

—

Depreciation and amortization

Consolidated Adjusted EBITDA

$

$

$

$

Non-GAAP Financial Information

“Segment Adjusted EBITDAR” is our reportable segment GAAP measure, which we utilize as the primary profit measure for our reportable segments and

underlying operating segments. Segment Adjusted EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, triple net lease rent expense, income (loss) from unconsolidated affiliates, goodwill impairment, and also excludes corporate expense and stock compensation expense,

which are not allocated to each operating segment. Triple net lease rent expense is the expense for rent to landlords under triple net operating leases for its domestic properties, the ground subleases of Beau Rivage and MGM National Harbor, and the

land concessions at MGM China.

“Consolidated Adjusted EBITDA” is earnings before interest and othernon-operating income (expense), income taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, and goodwill impairment.

Consolidated Adjusted EBITDA information is a non-GAAP measure that is presented solely as a supplemental disclosure to reported GAAP measures because it is among the measures used by management to evaluate

our operating performance, and because we believe this measure is widely used by analysts, lenders, financial institutions, and investors as a measure of operating performance in the gaming industry and as a principal basis for the valuation of

gaming companies. We believe that while items excluded from Consolidated Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluation of our earnings performance, it is useful to exclude such items when analyzing current

results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, we believe excluded items may not

relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when we are developing and

constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses

on sales of assets related to specific assets within our properties, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated

affiliates, which may not be comparable period over period. However, Consolidated Adjusted EBITDA has limitations as an analytical tool, and should not be construed as an alternative or substitute to any measure determined in accordance with

generally accepted accounting principles. For example, we have significant uses of cash flows, including capital expenditures, interest payments, income taxes, and debt principal repayments, which are not reflected in Consolidated Adjusted EBITDA.

Accordingly, while we believe that Consolidated Adjusted EBITDA is a relevant measure of performance, Consolidated Adjusted EBITDA should not be construed as an alternative to or substitute for operating income or net income as an indicator of our

performance, or as an alternative to or substitute for cash flows from operating activities as a measure of liquidity. In addition, other companies in the gaming and hospitality industries that report Consolidated Adjusted EBITDA may calculate

Consolidated Adjusted EBITDA in a different manner and such differences may be material. A reconciliation of GAAP net income to Consolidated Adjusted EBITDA is included in the financial schedules in this release.