MGM Resorts International Reports First Quarter 2022 Financial and Operating Results
MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended March 31, 2022.
- Las Vegas Strip Resorts and Regional Operations Adjusted Property EBITDAR increased 47% and 48%, respectively, compared to the first quarter of 2019 and maintained margin growth over 2019 in both the Las Vegas and Regional markets
- Announced offer to acquire global online gaming company LeoVegas for a total tender value of approximately $607 million
- Repurchased $2.8 billion of shares of common stock since January 2021
- Closed transaction with MGP to VICI and continue to pursue a commercial gaming license in New York and development of an Integrated Resort in Osaka, Japan
LAS VEGAS - MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended March 31, 2022.
"We delivered a strong first quarter in our domestic operations driven by weekend demand and a better mix of business. Our midweek business is improving with each quarter and our group base is growing after a tough January. The results demonstrate the robust demand for our gaming entertainment offerings with the backdrop of increased sports and entertainment programming in the Las Vegas market," said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. "We reached another milestone in the completion of our asset light strategy with the closing of the VICI transaction, allowing us to simplify our corporate structure and bolster our liquidity while deploying capital into growth projects with the highest shareholder return. We announced this morning the tender offer for 100% of the shares of LeoVegas which will allow us to expand into international online gaming with a world class management team, strong IT platform and growth prospects. We remain focused on achieving our vision to be the world's premier gaming entertainment company."
"Our strong liquidity position, coupled with our confidence in the long-term recovery of our core business, has allowed us to continue to focus on maximizing long-term shareholder value. To that end, we continued to repurchase our stock in the first quarter, reaching over $1.0 billion during the first quarter of 2022 and we repaid $1.0 billion of notes in March," said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International. "We are disciplined in our approach to capital deployment and are focused on maintaining a strong balance sheet with adequate liquidity, while at the same time pursuing growth opportunities with the greatest return to shareholders."
First Quarter 2022 Financial Highlights:
Consolidated Results
- Consolidated net revenues of $2.9 billion compared to $1.6 billion in the prior year quarter, an increase of 73%. The current quarter benefited from the inclusion of the operating results of Aria and Vdara (collectively "Aria") due to its consolidation in September 2021 and was negatively affected by a decrease in business volume and travel due to the spread of the omicron variant in the early part of the quarter; however, results improved over the prior year quarter which was negatively affected by midweek property and hotel closures, lower business volume and travel activity, and operational restrictions due to the COVID-19 pandemic primarily at the Las Vegas Strip Resorts;
- Net loss attributable to MGM Resorts of $18 million compared to net loss attributable to MGM Resorts of $332 million in the prior year quarter, and net income attributable to MGM Resorts of $31 million in the first quarter of 2019;
- Diluted loss per share of $0.06 in the current quarter compared to diluted loss per share of $0.69 in the prior year quarter;
- Adjusted diluted earnings per share ("Adjusted EPS")(1) of $0.01 in the current quarter compared to an Adjusted EPS loss per share of $0.68 in the prior year quarter; and
- Consolidated Adjusted EBITDAR(2) of $670 million and Consolidated Adjusted EBITDAR margin(2) of 23.5% in the current quarter.
Las Vegas Strip Resorts
- Net revenues of $1.7 billion in the current quarter compared to $545 million in the prior year quarter, an increase of 205%. The current quarter benefited from the inclusion of Aria and was negatively affected by a decrease in business volume and travel due to the spread of the omicron variant in the early part of the quarter; however, the prior year quarter was negatively affected by midweek property and hotel closures at certain properties, lower business volume and travel activity, and operational restrictions due to the COVID-19 pandemic;
- Same-store net revenues (adjusted for acquisitions/dispositions, as further described in our discussion of non-GAAP measures in footnote 2 below) of $1.4 billion in the current quarter, a decrease of 1% compared to the first quarter of 2019;
- Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) of $1.7 billion compared to $544 million in the prior year quarter, an increase of 204%;
- Table Games Hold Adjusted Las Vegas Strip Resorts Same-Store Net Revenues(3) of $1.3 billion compared to $1.4 billion in the first quarter of 2019, a decrease of 2%;
- Adjusted Property EBITDAR(2) of $594 million in the current quarter compared to $108 million in the prior year quarter, an increase of 449%;
- Same-Store Adjusted Property EBITDAR(2) of $472 million in the current quarter compared to $391 million in the first quarter of 2019, an increase of 21%;
- Adjusted Property EBITDAR margin(2) of 35.7% in the current quarter compared to 19.8% in the prior year quarter, an increase of 1,586 basis points;
- Same-Store Adjusted Property EBITDAR margin(2) of 35.0% in the current quarter compared to 28.6% in the first quarter of 2019, an increase of 638 basis points;
- Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) of $587 million in the current quarter compared to $107 million in the prior year quarter, an increase of 448%; and
- Table Games Hold Adjusted Las Vegas Strip Resorts Same-Store Adjusted Property EBITDAR(2) of $464 million compared to $396 million in the first quarter of 2019, an increase of 17%.
Regional Operations
- Net revenues of $891 million in the current quarter compared to $711 million in the prior year quarter, an increase of 25%, and an increase of 11% compared to $804 million in the first quarter of 2019. The prior year quarter was negatively affected by midweek hotel closures at certain properties and operational restrictions;
- Adjusted Property EBITDAR of $313 million in the current quarter compared to $242 million in the prior year quarter, an increase of 29%, and an increase of 48% compared to $212 million in the first quarter of 2019; and
- Adjusted Property EBITDAR margin of 35.2% in the current quarter compared to 34.0% in the prior year quarter, an increase of 115 basis points, and an increase of 882 basis points compared to 26.3% in the first quarter of 2019 due primarily to an increase in revenues and realized benefits of the Company's costs savings initiatives.
MGM China
- Net revenues of $268 million in the current quarter compared to $296 million in the prior year quarter, a decrease of 9%, and a decrease of 63% compared to $734 million in the first quarter of 2019. The current and prior year quarter were significantly impacted by travel and entry restrictions in Macau; and
- Adjusted Property EBITDAR loss of $26 million in the current quarter compared to Adjusted Property EBITDAR of $5 million in the prior year quarter, and $193 million in the first quarter of 2019. The current quarter included a charge of $18 million related to litigation reserves.
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