MGM Resorts International Reports Third Quarter Financial And Operating Results
LAS VEGAS - MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended September 30, 2020.
"Our domestic liquidity, excluding MGP and MGM China, remained substantial at $4.5 billion as the Company worked diligently to significantly reduce our cash outflows during the third quarter," said Corey Sanders, Chief Financial Officer and Treasurer of MGM Resorts. "In October, we opportunistically issued an additional $750 million in aggregate principal amount of senior notes at an attractive rate to further fortify our financial position."
Third Quarter 2020 Financial Highlights:
- Consolidated net revenues decreased 66% compared to the prior year quarter to $1.1 billion, primarily driven by a partial quarter of operations at certain of the Company's domestic properties and restrictions related to the pandemic as further discussed below;
- Consolidated operating loss was $495 million compared to consolidated operating income of $238 million in the prior year quarter;
- Net loss attributable to MGM Resorts of $535 million compared to net loss attributable to MGM Resorts of $37 million in the prior year quarter;
- Diluted loss per share of $1.08 in the current quarter compared to diluted loss per share of $0.08 in the prior year quarter;
- Adjusted diluted earnings per share ("Adjusted EPS")(1) was a loss per share of $1.08 in the current quarter compared to Adjusted EPS of $0.31 in the prior year quarter; and
- Consolidated Adjusted EBITDAR(2) loss of $49 million in the current quarter.
Financial Position & Liquidity
- Cash and cash equivalents balance as of September 30, 2020 was $4.6 billion, which included $655 million at the MGP Operating Partnership and $396 million at MGM China;
- Total liquidity at September 30, 2020 was $7.8 billion, which included $1.9 billion at the MGP Operating Partnership and $1.4 billion at MGM China, which was comprised of cash and cash equivalents and capacity under the revolving credit facilities at the Company, MGP Operating Partnership and MGM China;
- At September 30, 2020, principal amount of indebtedness outstanding was $11.5 billion, including $3.6 billion outstanding at the MGP Operating Partnership and $2.7 billion outstanding at MGM China; and
- MGM Resorts has $700 million remaining under its agreement with MGP to purchase up to $1.4 billion of the MGP Operating Partnership units owned by MGM Resorts for cash through February 2022.
Las Vegas Strip Resorts
- Net revenues decreased 68% compared to the prior year quarter to $481 million as a result of operational restrictions related to the pandemic and a partial quarter of operations at The Mirage and Park MGM;
- Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) decreased 67% compared to the prior year quarter to $489 million;
- Adjusted Property EBITDAR decreased 97% to $15 million compared to $441 million in the prior year quarter; and
- Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) decreased 95% to $21 million compared to $438 million in the prior year quarter.
- Net revenues decreased 40% compared to the prior year quarter to $557 million as a result of a partial quarter of operations at certain of the Company's Regional Operations properties and a decrease in non-gaming revenues as a result of operational restrictions related to the pandemic;
- Adjusted Property EBITDAR decreased 46% to $146 million compared to $269 million the prior year quarter;
- Adjusted Property EBITDAR margin of 26.2% in the current quarter, a 261 basis point decrease compared to the prior year quarter; and
- The following provides a comparison of the Company's Regional Operations properties with operations during the entirety of the current and prior year quarters, which included Gold Strike, Beau Rivage, MGM Northfield Park, and MGM National Harbor:
- Net revenues decreased 15% compared to the prior year quarter, due primarily to a decrease in non-gaming revenues;
- Adjusted Property EBITDAR increased 7% compared to the prior year quarter; and
- Adjusted Property EBITDAR margin increased 768 basis points compared to the prior year quarter.
- Net revenues decreased 94% compared to the prior year quarter to $47 million;
- VIP Table Games Hold Adjusted MGM China Net Revenues(3) decreased 92% compared to the prior year quarter to $54 million;
- Adjusted Property EBITDAR loss of $96 million compared to Adjusted Property EBITDAR of $184 million in the prior year quarter; and
- VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR(2) loss of $93 million compared to VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR of $170 million in the prior year quarter.
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About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 29 unique hotel and destination gaming offerings in the United States and Macau, including some of the most recognizable resort brands in the industry such as Bellagio, MGM Grand, ARIA and Park MGM. The Company's 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" initiative, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com . Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram.
Statements in this release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has based these statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the steps it is taking to mitigate the spread of the virus.A number of important factors could cause actual results to differ materially from those indicated in such forward-looking statements, including the continued impact of the COVID-19 pandemic on the Company's business, effects of economic and market conditions in the markets in which the Company operates, competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, and risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) filed with the Securities and Exchange Commission. 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.