MGM cuts 3Q loss by nearly two-thirds

MGM Resorts International reported improved financial results for the third quarter ended September 30, 2011. Diluted earnings per share attributable to MGM Resorts International was a loss of $0.25 per share compared to a loss of $0.72 per share in the prior year third quarter. The current quarter included an impairment charge of $0.11 per share compared to impairment charges of $0.51 in the prior year period. The current quarter results also include a full quarter of results related to MGM China Holdings Limited (MGM China), which the company began consolidating as of June 3, 2011.

Key results for the third quarter of 2011 included the following:

• Consolidated net revenue was $2.2 billion compared to $1.6 billion in the prior year quarter; excluding MGM China, consolidated net revenues increased 3 percent compared to the prior year quarter;

• Rooms revenue from wholly owned domestic resorts increased 11 percent with a 13 percent increase in REVPAR at the Company’s Las Vegas Strip resorts;

• Consolidated operating income was $113 million compared to an operating loss of $206 million in the third quarter of 2010;

• Consolidated Adjusted EBITDA was $444 million in the 2011 quarter compared to $280 million in the 2010 quarter;

• The company’s wholly-owned domestic resorts earned Adjusted Property EBITDA of $348 million, up 10 percent compared to the prior year quarter;

• MGM China’s Adjusted Property EBITDA was $139 million ($150 million before branding fees) compared to $84 million in the prior year quarter; and

• CityCenter’s Adjusted Property EBITDA related to resort operations increased 26 percent to $50 million.

“ Our results show the inherent operating leverage in our business as this quarter represents the third consecutive quarter of year-over-year revenue, Adjusted Property EBITDA and Adjusted Property EBITDA margin growth for our wholly owned domestic resorts. Our forward booking trends remain strong both for our consumer retail segments and corporate events,” said Jim Murren, MGM Resorts International chairman and CEO. “MGM China’s operating trends continue to improve with cash flow before branding fees increasing approximately 80 percent year-over-year. We are extremely pleased with our Cotai development plans while at the same time have some exciting expansion opportunities within our existing MGM Macau property.”