MGM Beats EPS Estimates (MGM)

MGM Resorts International MGM today reported financial results for the first quarter ended March 31, 2011. Key results for the first quarter included the following: MGM Resorts Reports EPS of $(0.18) vs. $(0.19) Estimate; Revenues $1.5B vs. $1.5B Estimate Net revenue was $1.5 billion, an increase of 3% compared to the prior year quarter; Rooms revenue grew by 13% led by a 16% increase in Las Vegas Strip REVPAR; Casino revenue decreased 5% mainly as a result of a lower than normal table games hold percentage; Net loss was $90 million, or $0.18 per share, compared to a net loss of $97 million, or $0.22 per share, in the prior year quarter. The prior year results include a gain on extinguishment of debt of $142 million (or $0.21 per share) and a pre-tax non-cash charge of approximately $86 million (or $0.13 per share) representing the Company's share of a residential inventory impairment charge at CityCenter; Adjusted Property EBITDA was $364 million, an increase of 95% from the prior year quarter; Adjusted Property EBITDA attributable to wholly-owned operations was $301 million, a 12% increase from the prior year quarter; CityCenter reported Adjusted Property EBITDA related to its resort operations of $64 million; and MGM Macau reported a record quarter with operating income of $126 million, including depreciation expense of $20 million. This represents a 158% increase in operating income from the first quarter of 2010. The Company received approximately $31 million in distributions from MGM Macau during the first quarter of 2011. “Our improved results are broadly based throughout our resort portfolio. Performance at our Las Vegas properties was driven by increased hotel occupancy and room rates. MGM Grand Detroit had another impressive quarter and remains the market leader. Results from joint ventures reflected record quarters at both MGM Macau and CityCenter,” said Jim Murren, MGM Resorts International Chairman and CEO. “Our belief that the Las Vegas recovery is underway is supported by our first quarter operating results and our positive early second quarter trends.”