LAS VEGAS, Oct. 12 /PRNewswire-FirstCall/ -- MGM Resorts International today announced certain recent developments and its preliminary expectations of financial results for the third quarter of 2010. The operating results in this release reflect preliminary expectations of financial results for the third quarter of 2010, have not been reviewed by the Company's auditors, and are subject to change. The Company expects to report its full results for the quarter, and conduct a conference call to discuss its earnings, during the week of November 1, 2010.
Recent Developments -- The Company expects to receive approximately $125 million from MGM Macau during October 2010, which represents a partial repayment of principal and accrued interest on the Company's interest and non-interest bearing notes to that entity. -- The Company recently received an offer for its 50% economic interest in the Borgata Hotel Casino & Spa ("Borgata") based on an enterprise value of $1.35 billion for the entire asset. The Company's Board of Directors has authorized submission of this offer to Boyd Gaming Corporation, which owns the other 50% interest, in accordance with the right of first refusal provisions included in the joint venture agreement. Based on Borgata's September debt balances, the offer equates to slightly in excess of $250 million for the Company's 50% interest. This is less than the carrying value of the Company's investment in Borgata; therefore, the Company will record a pre-tax impairment charge of approximately $128 million in the third quarter of 2010. The consummation of any such transaction as a result of the offer is subject to negotiation of final documents, due diligence, and regulatory approval. -- The Company expects its previously announced sale of short-term land leases and associated real property parcels underlying Borgata to close in the fourth quarter of 2010, with net proceeds to the Company's New Jersey trust account of approximately $71 million. -- The Company's New Jersey trust account received a distribution of approximately $105 million from Borgata during the third quarter. The balance in the trust account was approximately $114 million at September 30, 2010. All amounts in the trust account, including the proceeds from the sale of the Company's Borgata interest and the underlying land parcels, will be distributed to the Company upon consummation of the sale of the Company's Borgata interest. -- As of September 30, 2010, the Company recognized an increase of $232 million in its total net obligation under its CityCenter completion guarantee, and a corresponding increase in its investment in CityCenter. The increase primarily reflects revisions to prior estimates based on the Company's assessment of the most current information derived from the CityCenter close-out and litigation processes. This accrual does not reflect certain potential recoveries that CityCenter is pursuing as part of the litigation process. The Company reviewed its investment in CityCenter due to such increase and expects to record a pre-tax impairment charge of approximately $182 million in the third quarter. Preliminary Earnings Results
The Company expects a third quarter diluted loss per share (EPS) of approximately $0.72 compared to a loss of $1.70 per share in the prior year third quarter. The current year results include expected pre-tax impairment charges totaling $357 million, or $0.51 per diluted share, net of tax, including the impairment charge related to the Company's investment in CityCenter, a pre-tax charge of $46 million related to impairment of CityCenter's residential real estate inventory, and the impairment charge related to the Company's Borgata investment. The prior year results include pre-tax impairment charges totaling $1.17 billion, or $1.72 loss per diluted share, net of tax, including a pre-tax impairment charge of $956 million related to the Company's investment in CityCenter and a pre-tax impairment charge of $203 million related to impairment of CityCenter's residential real estate under development.
The following table lists these and other items which affect the comparability of the current and prior year quarterly results (approximate EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):
Three months ended September 30, 2010 2009 -------------------------------- ---- ---- Preopening and start-up expenses $- $(0.01) Property transactions net: Investment in CityCenter impairment charge (0.27) (1.40) Investment in Borgata impairment charge (0.17) - Other property transactions, net (0.01) (0.02) Income (loss) from unconsolidated affiliates: CityCenter residential inventory impairment charge (0.07) (0.30) CityCenter forfeited residential deposits income 0.02 - Borgata insurance proceeds - 0.02 Preliminary Operating Results
Net revenue for the third quarter of 2010 is expected to be approximately $1.56 billion. Excluding reimbursed costs revenue mainly related to the Company's management of CityCenter (approximately $89 million in the 2010 third quarter and $16 million in the 2009 third quarter), net revenue is expected to be approximately $1.47 billion, a decrease of 3% from 2009. Reimbursed costs revenue represents reimbursement of costs, primarily payroll-related, incurred by the Company in connection with the provision of management services.
Las Vegas Strip REVPAR(1) was $97 for the third quarter of 2010, a decrease of 2% from the third quarter of 2009, with occupancy of 93% and an average daily rate of $105. Bellagio and Mandalay Bay both recorded REVPAR increases in the third quarter.
Third quarter total casino revenue was approximately 9% lower than the prior year, with slots revenue down approximately 3% for the quarter. The Company's table games volume, excluding baccarat, was down 7% in the quarter, while baccarat volume was down 6% compared to the prior year quarter. The overall table games hold percentage was lower in 2010 than the prior year quarter; in the current year third quarter the hold percentage was above the midpoint of the Company's normal 18% to 22%, while in the 2009 quarter it was above the high end of the range.
Operating loss for the third quarter of 2010 is expected to be approximately $206 million which includes the CityCenter investment impairment, the Borgata impairment and the Company's share of the CityCenter residential impairment charge discussed further below. Prior year operating loss was $963 million and included an impairment charge related to the Company's investment in CityCenter and the Company's share of a CityCenter residential impairment charge.
Adjusted Property EBITDA(2) attributable to wholly-owned operations is expected to be approximately $314 million in the 2010 quarter, down 13% compared to the prior year.
Income from Unconsolidated Affiliates
The Company expects a loss from unconsolidated affiliates of $7 million in the third quarter of 2010 compared to a loss of $133 million in the prior year third quarter.
MGM Macau is expected to earn operating income of $61 million in the third quarter of 2010 - including depreciation expense of $22 million - compared to operating income of $50 million in the 2009 third quarter - which included depreciation expense of $23 million.
Expected results for CityCenter for the third quarter of 2010 include the following (see schedules accompanying this release for further detail on CityCenter Holdings, LLC's third quarter and year-to-date 2010 results):
-- CityCenter expects net revenues of $413 million in the third quarter, including $166 million related to residential operations, of which $28 million related to forfeited residential deposits; -- Aria expects net revenue of $219 million and Adjusted EBITDA of $41 million. Aria's results were positively affected by a high table games hold percentage, which increased Adjusted EBITDA by approximately $26 million; -- Aria's occupancy percentage was 82% and its average daily rate was $175, resulting in REVPAR of $142; and -- CityCenter's recorded an approximately $93 million impairment charge related to its residential inventory due to an increase in estimated final costs of the residential components, and expects to record a $279 million impairment charge related to its Harmon Hotel & Spa component; the Harmon impairment did not affect the Company's loss from unconsolidated affiliates because the Company's 50% share of the impairment charge had been previously recognized by the Company in connection with prior impairments of its investment balance.
The Company recorded its share of CityCenter's results, including adjustments for recognition of basis differences as follows ((expense)/income):
Three months ended September 30, 2010 2009 -------------------------------- ---- ---- (In thousands) Preopening and start-up expenses $- $(10,671) Income (loss) from unconsolidated affiliates (46,420) (204,333) Non-operating items from unconsolidated affiliates (21,199) (758) Financial Position
At September 30, 2010, the Company had approximately $12.9 billion of indebtedness (with a carrying value of $12.6 billion), including $3.4 billion of borrowings outstanding under its senior credit facility, with available borrowing capacity under the senior credit facility of approximately $1.3 billion.
(1) REVPAR is hotel Revenue per Available Room.
(2) "Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, and property transactions, net. "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.
Management believes that while items excluded from Adjusted EBITDA and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company's 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, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, pre-opening and start-up expenses will be significantly different in periods when the Company is 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 resorts, 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.
In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance.
Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" within the meaning of Section 21E of the U.S. the Securities Exchange Act of 1934, as amended, and other related laws 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. We have based those forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding the Company's expectations to report the third quarter 2010 results described in this release. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the preliminary stage of our financial statement preparation for the third quarter of 2010 and the possibility of revisions to these results in connection with our, and our auditor's, final review and approval of such financial statements. In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise except as required by law.
MGM RESORTS INTERNATIONAL AND SUBSIDIARIES SUPPLEMENTAL DATA - NET REVENUES (In thousands) (Unaudited) Three Months Ended Nine Months Ended ------------------ ----------------- September 30, September 30, September 30, September 30, 2010 2009 2010 2009 ---- ---- ---- ---- Bellagio $269,370 $262,436 $766,973 $795,017 MGM Grand Las Vegas 231,626 266,349 708,061 737,108 Mandalay Bay 186,129 185,539 545,959 553,711 The Mirage 152,306 182,376 423,992 483,352 Luxor 81,514 88,609 238,900 263,038 Treasure Island (1) - - - 66,329 New York-New York 64,393 60,721 185,987 191,609 Excalibur 65,631 71,451 190,565 203,944 Monte Carlo 57,315 52,120 167,623 153,223 Circus Circus Las Vegas 52,038 54,962 141,721 155,768 MGM Grand Detroit 132,366 124,753 404,893 389,365 Beau Rivage 85,792 85,970 252,915 251,610 Gold Strike Tunica 40,389 39,493 114,879 118,057 Management operations 101,690 25,374 307,820 69,197 Other operations 38,480 33,070 103,838 94,845 ------ ------ ------- ------ $1,559,039 $1,533,223 $4,554,126 $4,526,173 ========== ========== ========== ========== MGM RESORTS INTERNATIONAL AND SUBSIDIARIES SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA (In thousands) (Unaudited) Three Months Ended Nine Months Ended ------------------ ----------------- September 30, September 30, September 30, September 30, 2010 2009 2010 2009 ---- ---- ---- ---- Bellagio $75,858 $61,876 $195,137 $206,336 MGM Grand Las Vegas 40,011 70,727 130,604 168,040 Mandalay Bay 30,435 36,222 96,177 128,059 The Mirage 31,980 54,513 80,624 116,611 Luxor 14,114 18,989 44,455 59,797 Treasure Island (1) - - - 12,729 New York-New York 21,943 17,990 59,561 61,587 Excalibur 15,881 19,176 49,158 57,140 Monte Carlo 7,930 3,930 24,038 32,172 Circus Circus Las Vegas 6,126 7,753 13,350 24,861 MGM Grand Detroit 40,466 32,729 118,436 106,898 Beau Rivage 17,637 18,046 51,040 52,905 Gold Strike Tunica 11,704 11,534 31,590 36,965 Management operations (1,554) 4,347 (9,120) 13,258 Other operations 1,893 1,704 2,032 3,412 ----- ----- ----- ----- Wholly-owned operations 314,424 359,536 887,082 1,080,770 CityCenter (50%) (46,420) (204,334) (220,593) (207,204) Macau (50%) 29,372 23,557 71,165 14,866 Other unconsolidated resorts 9,924 48,070 35,484 79,755 ----- ------ ------ ------ $307,300 $226,829 $773,138 $968,187 ======== ======== ======== ======== (1) Treasure Island was sold in March 2009. MGM RESORTS INTERNATIONAL AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA (In thousands) (Unaudited) Three Months Ended September 30, 2010 ------------------------------------- Operating Preopening and Property income start-up transactions, (loss) expenses net ------- -------- --- Bellagio $52,040 $- $(18) MGM Grand Las Vegas 20,855 - (45) Mandalay Bay 5,023 - 2,181 The Mirage 16,104 - 450 Luxor 3,666 - 11 New York-New York 14,307 - 763 Excalibur 10,300 - - Monte Carlo (1,954) - 3,765 Circus Circus Las Vegas 1,024 - 4 MGM Grand Detroit 30,724 - (484) Beau Rivage 4,950 - 348 Gold Strike Tunica 7,532 - 549 Management operations (4,986) - - Other operations (53) 30 (1) Wholly-owned operations 159,532 30 7,523 CityCenter (50%) (46,420) - - Macau (50%) 29,372 - - Other unconsolidated resorts 9,924 - - ----- --- --- 152,408 30 7,523 Stock compensation (8,599) - - Corporate (349,710) - 310,631 -------- --- ------- $(205,901) $30 $318,154 ========= === ======== Depreciation and Adjusted amortization EBITDA ------------ ------ Bellagio $23,836 $75,858 MGM Grand Las Vegas 19,201 40,011 Mandalay Bay 23,231 30,435 The Mirage 15,426 31,980 Luxor 10,437 14,114 New York-New York 6,873 21,943 Excalibur 5,581 15,881 Monte Carlo 6,119 7,930 Circus Circus Las Vegas 5,098 6,126 MGM Grand Detroit 10,226 40,466 Beau Rivage 12,339 17,637 Gold Strike Tunica 3,623 11,704 Management operations 3,432 (1,554) Other operations 1,917 1,893 Wholly-owned operations 147,339 314,424 CityCenter (50%) - (46,420) Macau (50%) - 29,372 Other unconsolidated resorts - 9,924 --- ----- 147,339 307,300 Stock compensation - (8,599) Corporate 11,518 (27,561) ------ ------- $158,857 $271,140 ======== ======== Three Months Ended September 30, 2009 ------------------------------------- Operating Preopening and Property income start-up transactions, (loss) expenses net ------- -------- --- Bellagio $29,495 $- $1,206 MGM Grand Las Vegas 50,634 - 5 Mandalay Bay 13,822 145 (73) The Mirage 37,368 - 17 Luxor 10,542 (759) (12) New York-New York 6,775 - 1,394 Excalibur 13,413 - (14) Monte Carlo (5,685) - 2,456 Circus Circus Las Vegas 1,910 - 80 MGM Grand Detroit 17,889 - 5,906 Beau Rivage 5,819 - - Gold Strike Tunica 7,774 - - Management operations 847 - 2,473 Other operations 238 - - Wholly-owned operations 190,841 (614) 13,438 CityCenter (50%) (215,006) 10,672 - Macau (50%) 23,557 - - Other unconsolidated resorts 48,070 - - ------ --- --- 47,462 10,058 13,438 Stock compensation (9,319) - - Corporate (1,001,562) - 957,770 ---------- --- ------- $(963,419) $10,058 $971,208 ========= ======= ======== Depreciation and Adjusted amortization EBITDA ------------ ------ Bellagio $31,175 $61,876 MGM Grand Las Vegas 20,088 70,727 Mandalay Bay 22,328 36,222 The Mirage 17,128 54,513 Luxor 9,218 18,989 New York-New York 9,821 17,990 Excalibur 5,777 19,176 Monte Carlo 7,159 3,930 Circus Circus Las Vegas 5,763 7,753 MGM Grand Detroit 8,934 32,729 Beau Rivage 12,227 18,046 Gold Strike Tunica 3,760 11,534 Management operations 1,027 4,347 Other operations 1,466 1,704 Wholly-owned operations 155,871 359,536 CityCenter (50%) - (204,334) Macau (50%) - 23,557 Other unconsolidated resorts - 48,070 --- ------ 155,871 226,829 Stock compensation - (9,319) Corporate 14,780 (29,012) ------ ------- $170,651 $188,498 ======== ======== MGM RESORTS INTERNATIONAL AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA (In thousands) (Unaudited) Nine Months Ended September 30, 2010 ------------------------------------ Operating Preopening and Property income start-up transactions, (loss) expenses net ------- -------- --- Bellagio $122,871 $- $(125) MGM Grand Las Vegas 72,134 - (45) Mandalay Bay 23,758 - 2,840 The Mirage 29,535 - 311 Luxor 12,237 - 1 New York-New York 31,737 - 6,858 Excalibur 31,103 - 784 Monte Carlo 1,928 - 3,765 Circus Circus Las Vegas (2,529) - 229 MGM Grand Detroit 88,391 - (484) Beau Rivage 13,768 - 351 Gold Strike Tunica 21,336 - (551) Management operations (19,453) - - Other operations (3,546) 567 4 ------ --- --- Wholly-owned operations 423,270 567 13,938 CityCenter (50%) (224,087) 3,494 - Macau (50%) 71,165 - - Other unconsolidated resorts 35,484 - - ------ --- --- 305,832 4,061 13,938 Stock compensation (26,156) - - Corporate (1,545,817) - 1,431,187 ---------- --- --------- $(1,266,141) $4,061 $1,445,125 =========== ====== ========== Depreciation and Adjusted amortization EBITDA ------------ ------ Bellagio $72,391 $195,137 MGM Grand Las Vegas 58,515 130,604 Mandalay Bay 69,579 96,177 The Mirage 50,778 80,624 Luxor 32,217 44,455 New York-New York 20,966 59,561 Excalibur 17,271 49,158 Monte Carlo 18,345 24,038 Circus Circus Las Vegas 15,650 13,350 MGM Grand Detroit 30,529 118,436 Beau Rivage 36,921 51,040 Gold Strike Tunica 10,805 31,590 Management operations 10,333 (9,120) Other operations 5,007 2,032 ----- ----- Wholly-owned operations 449,307 887,082 CityCenter (50%) - (220,593) Macau (50%) - 71,165 Other unconsolidated resorts - 35,484 --- ------ 449,307 773,138 Stock compensation - (26,156) Corporate 37,450 (77,180) ------ ------- $486,757 $669,802 ======== ======== Nine Months Ended September 30, 2009 ------------------------------------ Operating Preopening and Property income start-up transactions, (loss) expenses net ------- -------- --- Bellagio $115,925 $- $2,360 MGM Grand Las Vegas 99,022 - 81 Mandalay Bay 56,954 897 (70) The Mirage 66,158 - 313 Luxor 30,300 (759) 259 Treasure Island (1) 12,730 - (1) New York-New York 35,549 - 1,631 Excalibur 39,543 - (12) Monte Carlo 18,521 - (4,737) Circus Circus Las Vegas 7,413 - (35) MGM Grand Detroit 70,658 - 5,906 Beau Rivage 16,139 - 157 Gold Strike Tunica 24,636 - - Management operations 4,699 - 2,473 Other operations (1,131) - 6 ------ --- --- Wholly-owned operations 597,116 138 8,331 CityCenter (50%) (233,790) 26,586 - Macau (50%) 14,866 - - Other unconsolidated resorts 78,940 815 - ------ --- --- 457,132 27,539 8,331 Stock compensation (27,076) - - Corporate (907,277) - 771,000 -------- --- ------- $(477,221) $27,539 $779,331 ========= ======= ======== Depreciation and Adjusted amortization EBITDA ------------ ------ Bellagio $88,051 $206,336 MGM Grand Las Vegas 68,937 168,040 Mandalay Bay 70,278 128,059 The Mirage 50,140 116,611 Luxor 29,997 59,797 Treasure Island (1) - 12,729 New York-New York 24,407 61,587 Excalibur 17,609 57,140 Monte Carlo 18,388 32,172 Circus Circus Las Vegas 17,483 24,861 MGM Grand Detroit 30,334 106,898 Beau Rivage 36,609 52,905 Gold Strike Tunica 12,329 36,965 Management operations 6,086 13,258 Other operations 4,537 3,412 ----- ----- Wholly-owned operations 475,185 1,080,770 CityCenter (50%) - (207,204) Macau (50%) - 14,866 Other unconsolidated resorts - 79,755 --- ------ 475,185 968,187 Stock compensation - (27,076) Corporate 46,692 (89,585) ------ ------- $521,877 $851,526 ======== ======== (1) Treasure Island was sold in March 2009. MGM RESORTS INTERNATIONAL AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS (In thousands) (Unaudited) Three Months Ended Nine Months Ended ------------------ ----------------- September September September September 30, 2010 30, 2009 30, 2010 30, 2009 -------- --------- --------- --------- Adjusted EBITDA $271,140 $188,498 $669,802 $851,526 Preopening and start-up expenses (30) (10,058) (4,061) (27,539) Property transactions, net (318,154) (971,208) (1,445,125) (779,331) Depreciation and amortization (158,857) (170,651) (486,757) (521,877) -------- -------- -------- -------- Operating loss (205,901) (963,419) (1,266,141) (477,221) -------- -------- ---------- -------- Non-operating income (expense): Interest expense, net (285,139) (181,899) (840,483) (554,822) Other (19,887) (12,930) 75,633 (261,216) ------- ------- ------ -------- (305,026) (194,829) (764,850) (816,038) -------- -------- -------- -------- Loss before income taxes (510,927) (1,158,248) (2,030,991) (1,293,259) Benefit for income taxes 193,711 407,860 733,558 435,495 ------- ------- ------- ------- Net loss $(317,216) $(750,388) $(1,297,433) $(857,764) ========= ========= =========== ========= MGM RESORTS INTERNATIONAL AND SUBSIDIARIES SUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP (Unaudited) Three Months Ended Nine Months Ended ------------------ ----------------- September September September September 30, 2010 30, 2009 30, 2010 30, 2009 -------- --------- --------- --------- Bellagio Occupancy % 94.8% 95.7% 93.5% 95.0% Average daily rate (ADR) $200 $195 $203 $203 Revenue per available room (REVPAR) $190 $187 $190 $193 MGM Grand Las Vegas Occupancy % 94.6% 97.1% 94.1% 95.7% ADR $108 $109 $114 $113 REVPAR $102 $106 $107 $108 Mandalay Bay Occupancy % 91.2% 93.6% 90.0% 90.3% ADR $155 $147 $157 $161 REVPAR $142 $137 $141 $145 The Mirage Occupancy % 95.8% 97.1% 93.3% 95.0% ADR $117 $119 $122 $127 REVPAR $112 $115 $114 $120 Luxor Occupancy % 92.1% 94.4% 89.7% 91.7% ADR $73 $75 $76 $80 REVPAR $67 $71 $68 $74 New York-New York Occupancy % 93.2% 96.7% 92.1% 94.0% ADR $87 $92 $91 $96 REVPAR $81 $89 $84 $90 Excalibur Occupancy % 94.9% 95.0% 89.6% 89.6% ADR $54 $59 $57 $61 REVPAR $51 $56 $51 $55 Monte Carlo Occupancy % 95.5% 95.6% 91.4% 92.3% ADR $74 $82 $78 $84 REVPAR $71 $78 $71 $78 Circus Circus Las Vegas Occupancy % 86.8% 88.8% 78.9% 85.6% ADR $42 $43 $43 $44 REVPAR $37 $39 $34 $38 CITYCENTER HOLDINGS, LLC SUPPLEMENTAL DATA - NET REVENUES (In thousands) (Unaudited) Three Months Nine Months Ended Ended ----- ----- September 30, September 30, 2010 2010 ---- ---- Aria $219,418 $535,915 Vdara 10,859 28,629 Crystals 9,182 22,952 Mandarin Oriental 7,470 21,528 ----- ------ Resort operations 246,929 609,024 Residential operations 165,965 464,417 ------- ------- $412,894 $1,073,441 ======== ========== CITYCENTER HOLDINGS, LLC RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS (In thousands) (Unaudited) Three Months Nine Months Ended Ended ----- ----- September 30, September 30, 2010 2010 ---- ---- Adjusted EBITDA $52,357 $52,419 Preopening and start-up expenses - (6,202) Property transactions, net (372,035) (600,133) Depreciation and amortization (80,821) (230,004) ------- -------- Operating loss (400,499) (783,920) -------- -------- Non-operating income (expense): Interest expense, net (65,618) (174,342) Other (189) (4,910) ---- ------ (65,807) (179,252) ------- -------- Net loss $(466,306) $(963,172) ========= ========= CITYCENTER HOLDINGS, LLC RECONCILIATION OF OPERATING LOSS TO ADJUSTED EBITDA (In thousands) (Unaudited) Three Months Ended September 30, 2010 ------------------------------------- Preopening and Property Operating start-up transactions, loss expenses net ------- -------- --- Aria $(19,594) $- $- Vdara (9,646) - - Crystals (3,158) - - Mandarin Oriental (7,935) - - Resort operations (40,333) - - Residential operations (67,056) - 92,813 Development and administration (293,110) - 279,222 -------- --- ------- $(400,499) $- $372,035 ========= === ======== Depreciation and Adjusted amortization EBITDA ------------ ------ Aria $60,965 $41,371 Vdara 9,059 (587) Crystals 5,599 2,441 Mandarin Oriental 4,311 (3,624) Resort operations 79,934 39,601 Residential operations 308 26,065 Development and administration 579 (13,309) --- ------- $80,821 $52,357 ======= ======= Nine Months Ended September 30, 2010 ------------------------------------ Preopening and Property Operating start-up transactions, loss expenses net ------- -------- --- Aria $(160,725) $- $- Vdara (31,175) - - Crystals (10,405) - - Mandarin Oriental (23,629) - - Resort operations (225,934) - - Residential operations (244,648) - 320,911 Development and administration (313,338) 6,202 279,222 -------- ----- ------- $(783,920) $6,202 $600,133 ========= ====== ======== Depreciation and Adjusted amortization EBITDA ------------ ------ Aria $173,061 $12,336 Vdara 26,182 (4,993) Crystals 16,013 5,608 Mandarin Oriental 12,065 (11,564) Resort operations 227,321 1,387 Residential operations 914 77,177 Development and administration 1,769 (26,145) ----- ------- $230,004 $52,419 ======== =======
MGM Resorts International
CONTACT: Investment Community, DANIEL J. D'ARRIGO, Executive Vice
President, Chief Financial Officer, +1-702-693-8895, or News Media, ALAN M.
FELDMAN, Senior Vice President, Public Affairs, +1-702-650-6947, both of MGM
Resorts International
Web Site: http://www.mgmresorts.com/
