MGM Resorts International Reports Third Quarter 2021 Financial and Operating Results

  • Las Vegas Strip Resorts and Regional Operations Adjusted Property EBITDAR increased 21% and 29%, respectively, compared to the third quarter of 2019
  • Record Regional Operations Adjusted Property EBITDAR margins
  • Repurchased $1 billion of shares of common stock through September 2021
  • The Company remains focused and well-positioned to maximize long-term shareholder value through its recently announced transactions and selection as Osaka’s integrated resort partner in Japan

LAS VEGAS – MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter ended September 30, 2021.

“We delivered another strong quarter led by our domestic operations resulting in new historical Adjusted Property EBITDAR records for our Las Vegas Strip and U.S. regional segments. These results demonstrate the continued robust demand for our gaming entertainment offerings across the U.S. and the effectiveness of our operating model,” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. “The completion of our asset light strategy will allow us to simplify our corporate structure and bolster our liquidity. I am also excited about our long-term growth prospects, including: BetMGM, which continues to establish itself as a clear leader in U.S. sports betting and iGaming; our selection as Osaka’s partner to build and operate a large-scale integrated resort in Japan; and the announcement of our agreement to acquire the operations of The Cosmopolitan of Las Vegas. The Company remains 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 third quarter, reaching over $1 billion of share repurchases since beginning the program this year,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International. “As we navigate future uses of our capital, we will remain disciplined in maintaining a strong balance sheet, pursuing targeted growth opportunities and returning cash to shareholders.”

Third Quarter 2021 Financial Highlights:

Consolidated Results

  • Consolidated net revenues of $2.7 billion, an increase of 140% compared to the prior year quarter. While the current quarter benefited from the removal of mandated operational and capacity restrictions as well as an increase in travel, the prior year quarter was negatively affected by temporary closures at certain properties and operational restrictions due to the COVID-19 pandemic;
  • Consolidated operating income was $1.9 billion compared to consolidated operating loss of $495 million in the prior year quarter;
  • Net income attributable to MGM Resorts of $1.4 billion compared to net loss attributable to MGM Resorts of $535 million in the prior year quarter;
  • Diluted earnings per share of $2.77 in the current quarter compared to diluted loss per share of $1.08 in the prior year quarter;
  • Adjusted diluted earnings per share (“Adjusted EPS”)(1) of $0.03 in the current quarter compared to an Adjusted EPS loss per share of $1.08 in the prior year quarter; and
  • Consolidated Adjusted EBITDAR(2) of $765 million in the current quarter.

Financial Position & Liquidity

  • Consolidated cash and cash equivalents balance as of September 30, 2021 was $5.6 billion, which included $320 million at the MGP Operating Partnership and $331 million at MGM China;
  • Total liquidity at September 30, 2021 was $9.8 billion, which included $1.7 billion at the MGP Operating Partnership and $1.7 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; and
  • At September 30, 2021, principal amount of consolidated indebtedness was $12.7 billion, including $4.2 billion at the MGP Operating Partnership and $3.0 billion at MGM China.

Las Vegas Strip Resorts

  • Net revenues of $1.4 billion, an increase of 187% compared to the prior year quarter and a decrease of 8% compared to the third quarter of 2019. While the current quarter benefited from the removal of mandated operational and capacity restrictions as well as an increase in travel, the prior year quarter was negatively affected by temporary property closures at certain properties and operational restrictions;
  • Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) of $1.4 billion, an increase of 178% compared to the prior year quarter and a decrease of 10% compared to the third quarter of 2019;
  • Adjusted Property EBITDAR(2) of $535 million compared to $15 million in the prior year quarter, and an increase of 21% compared to the third quarter of 2019;
  • Adjusted Property EBITDAR margin(2) of 38.7% in the current quarter, an increase of 943 basis points compared to the third quarter of 2019 due primarily to an increase in net revenues and realized benefits of the Company’s cost savings initiatives; and
  • Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) of $514 million compared to $21 million in the prior year quarter, and an increase of 17% compared to the third quarter of 2019.

Regional Operations

  • Net revenues of $925 million, an increase of 66% compared to the prior year quarter and a decrease of 1% compared to the third quarter of 2019. While the current quarter benefited from the removal of mandated operational and capacity restrictions as well as an increase in travel, the prior year quarter was negatively affected by temporary property closures at certain properties and operational restrictions;
  • Adjusted Property EBITDAR of $348 million, an increase of 139% compared to the prior year quarter, and an increase of 29% compared to the third quarter of 2019; and
  • Adjusted Property EBITDAR margin of 37.6% in the current quarter, an increase of 886 basis points compared to the third 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 $289 million, an increase of 517% compared to the prior year quarter and a decrease of 61% compared to the third quarter of 2019. The prior year quarter was more significantly impacted by travel and entry restrictions in Macau as well as other operational restrictions related to the pandemic than in the current quarter;
  • VIP Table Games Hold Adjusted MGM China Net Revenues(3) of $272 million, an increase of 403% compared to the prior year quarter and a decrease of 61% compared to the third quarter of 2019;
  • Adjusted Property EBITDAR of $7 million compared to a loss of $96 million in the prior year quarter, and a decrease of 96% compared to the third quarter of 2019; and
  • VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR(2) loss of $2 million compared to a loss of $93 million in the prior year quarter, and $170 million in the third quarter of 2019.

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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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