News Source: www.hospitalitynet.org
MGM Resorts International Reports First Quarter 2021 Financial and Operating Results
News Source/Courtesy: www.hospitalitynet.org

Best quarterly operating results in Las Vegas since reopening

U.S. Regionals achieved record 1Q Adjusted Property EBITDAR and Adjusted Property EBITDAR margins

BetMGM delivered market share gains in the growing U.S. sports betting and iGaming market

LAS VEGAS - MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended March 31, 2021.

"We are pleased with the meaningful progress we've made on multiple fronts this quarter," said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. "Consumer demand strengthened at our domestic properties, and the significant changes we've made to our operating model have positioned us to capitalize on the recovery. Our regional properties achieved record first quarter Adjusted Property EBITDAR and Adjusted Property EBITDAR margins. Las Vegas operating results improved sequentially, leisure demand is improving, and we now have a tangible path to bring conventions and entertainment back at scale. MGM China continued to outperform the broader Macau market's gradual pace of recovery."

"We are also deeply focused on our long-term goals including investing in digital to drive deeper customer engagement and BetMGM, our U.S. sports betting and iGaming venture, which continues to impress as the leading operator in U.S. iGaming and the top three operator in U.S. online sports betting. Our future is bright."

"Our robust liquidity position provides us with significant flexibility amid an improving operational backdrop. As such, we have begun to return capital to shareholders through share repurchases during the first quarter," said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts. "Going forward, we will be disciplined in allocating our capital by maintaining a strong balance sheet, pursuing targeted growth opportunities and returning cash to shareholders."

First Quarter 2021 Financial Highlights:

Consolidated Results

Consolidated net revenues of $1.6 billion, a decrease of 27% compared to the prior year quarter. While the prior year quarter was negatively affected by property closures for a portion of the quarter, the current quarter was negatively affected by midweek property and hotel closures, lower business volume and travel activity and ongoing operational restrictions due to the pandemic primarily at its Las Vegas Strip Resorts;

Consolidated operating loss was $247 million compared to consolidated operating income of $1.3 billion in the prior year quarter, which included a $1.5 billion gain related to the MGM Grand Las Vegas and Mandalay Bay real estate transaction;

Net loss attributable to MGM Resorts of $332 million compared to net income attributable to MGM Resorts of $807 million in the prior year quarter, which included the $1.5 billion gain discussed above;

Diluted loss per share of $0.69 in the current quarter compared to diluted earnings per share of $1.64 in the prior year quarter;

Adjusted diluted earnings per share ("Adjusted EPS")(1) was a loss per share of $0.68 in the current quarter compared to an Adjusted EPS loss per share of $0.45 in the prior year quarter; and

Consolidated Adjusted EBITDAR(2) of $218 million in the current quarter.

Financial Position & Liquidity

Cash and cash equivalents balance as of March 31, 2021 was $6.2 billion, which included $143 million at the MGP Operating Partnership and $1.1 billion at MGM China;

Total liquidity at March 31, 2021 was $9.7 billion, which included $1.5 billion at the MGP Operating Partnership and $1.8 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 March 31, 2021, principal amount of indebtedness was $13.4 billion, including $4.2 billion outstanding at the MGP Operating Partnership, and $3.7 billion outstanding at MGM China; and

In March 2021, the Company exercised its right to require the MGP Operating Partnership to redeem approximately 37 million Operating Partnership units that the Company held for aggregate cash proceeds of $1.2 billion.

Las Vegas Strip Resorts

Net revenues of $545 million, a decrease of 52% compared to the prior year quarter due to the pandemic and related operational restrictions as well as midweek property and hotel closures at certain properties;

Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) of $544 million, a decrease of 52% compared to the prior year quarter;

Adjusted Property EBITDAR(2) of $108 million compared to $268 million in the prior year quarter, a 60% decline;

Adjusted Property EBITDAR margin(2) of 19.8% in the current quarter, compared to 23.6% in the prior year quarter; and

Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) decreased 61% to $107 million compared to $273 million in the prior year quarter.

Regional Operations

Net revenues of $711 million, a decrease of 2% compared to the prior year quarter due to the pandemic and related operational restrictions as well as hotel closures at certain properties;

Adjusted Property EBITDAR of $242 million compared to $152 million in the prior year quarter, an increase of 59%, due to an increase in casino revenues and realized benefits of the Company's cost saving initiatives; and

Adjusted Property EBITDAR margin of 34% in the current quarter, a 1,311 basis point increase compared to the prior year quarter.

MGM China

Net revenues of $296 million, an increase of 9% compared to the prior year quarter as the prior year quarter was negatively affected by property closures and was more significantly impacted by travel restrictions to Macau than in the current quarter;

VIP Table Games Hold Adjusted MGM China Net Revenues(3) of $294 million, an increase of 7% compared to the prior year quarter;

Adjusted Property EBITDAR of $5 million compared to Adjusted Property EBITDAR loss of $22 million in the prior year quarter; and

VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR(2) of $5 million compared to VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR loss of $17 million in the prior year quarter.

Click here to view the full release.

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.

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