MGM Resorts International Reports Fourth Quarter And Full Year 2020 Financial And Operating Results

LAS VEGAS – MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter and year ended December 31, 2020.

“We remain confident in the long-term recovery of our business. We have strengthened our operational foundation through cost efficiencies that position us for sustainable growth, as solutions to the public health crisis accelerate and restrictions continue to ease.” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. “Our fourth quarter results delivered Adjusted Property EBITDAR improvements over the third quarter and our regional operations continued to generate margin growth.”

“We are engaged on pandemic response while staying focused on the future. This includes maintaining a strong balance sheet to seize opportunities and continuing to drive BetMGM, our U.S. sports betting and iGaming venture. BetMGM gained significant market share throughout 2020 while successfully launching in seven new states. We expect to be in 20 markets by the end of the year, and are very pleased with the January launches in Iowa, Michigan, and Virginia.”

“I look to the future with hope and gratitude for the strength and determination of our teams and communities, and the continued loyalty of our guests. Safety and well-being remain our highest, unwavering priorities.”

“I’m thrilled to play a role in the recovery and long-term growth of one of the most iconic global gaming entertainment brands,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International. “We remain focused on executing our strategic plan to drive margin expansion, deliver profitable growth and maximize shareholder value.”

Fourth Quarter 2020 Financial Highlights:

Consolidated Results

  • Consolidated net revenues decreased 53% compared to the prior year quarter to $1.5 billion, driven by lower business volume and travel activity due to the pandemic, hotel and other closures at certain properties, travel restrictions to our Macau resorts, and ongoing operating restrictions;
  • Consolidated operating loss was $364 million compared to consolidated operating income of $3.0 billion in the prior year quarter, which included a $2.7 billion gain related to the Bellagio real estate transaction;
  • Net loss attributable to MGM Resorts of $448 million compared to net income attributable to MGM Resorts of $2.0 billion in the prior year quarter, which included the $2.7 billion gain discussed above;
  • Diluted loss per share of $0.92 in the current quarter compared to diluted earnings per share of $3.91 in the prior year quarter;
  • Adjusted diluted earnings per share (“Adjusted EPS”)(1) was a loss per share of $0.90 in the current quarter compared to Adjusted EPS of $0.08 in the prior year quarter; and
  • Consolidated Adjusted EBITDAR(2) of $97 million in the current quarter.

Financial Position & Liquidity

  • Cash and cash equivalents balance as of December 31, 2020 was $5.1 billion, which included $626 million at the MGP Operating Partnership and $345 million at MGM China;
  • Total liquidity at December 31, 2020 was $8.8 billion, which included $2.0 billion at the MGP Operating Partnership and $1.2 billion at MGM China, and was comprised of cash and cash equivalents and available capacity under the revolving credit facilities at the Company, MGP Operating Partnership and MGM China;
  • At December 31, 2020, principal amount of indebtedness outstanding was $12.5 billion, including $4.2 billion outstanding at the MGP Operating Partnership and $2.8 billion outstanding at MGM China; and
  • In December 2020, the MGP Operating Partnership redeemed approximately 23.5 million of MGP Operating Partnership units from MGM Resorts for $700 million, which represents the remaining amount under the agreement with MGP to purchase up to $1.4 billion of the MGP Operating Partnership units owned by MGM Resorts for cash.

Las Vegas Strip Resorts

  • Net revenues decreased 66% compared to the prior year quarter to $480 million due to the pandemic and related operational restrictions as well as mid-week hotel closures at Mandalay Bay, The Mirage, and Park MGM for a portion of the current quarter;
  • Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) decreased 67% compared to the prior year quarter to $483 million;
  • Adjusted Property EBITDAR decreased 86% compared to the prior year quarter to $54 million;
  • Adjusted Property EBITDAR margin of 11.2% in the current quarter, compared to 26.6% in the prior year quarter; and
  • Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) decreased 85% compared to the prior year quarter to $57 million.

Regional Operations

  • Net revenues decreased 34% compared to the prior year quarter to $595 million due to the pandemic and related operational restrictions including a partial quarter of operations at MGM Grand Detroit;
  • Adjusted Property EBITDAR decreased 30% to $159 million compared to $228 million in the prior year quarter; and
  • Adjusted Property EBITDAR margin of 26.6% in the current quarter, a 129 basis point increase compared to the prior year quarter.

MGM China

  • Net revenues decreased 58% compared to the prior year quarter to $305 million;
  • VIP Table Games Hold Adjusted MGM China Net Revenues(3) decreased 57% compared to the prior year quarter to $303 million;
  • Adjusted Property EBITDAR decreased 78% compared to the prior year quarter to $41 million; and
  • VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR(2) decreased 76% compared to the prior year quarter to $43 million.

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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.

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