MGM Mirage Reports Record Second Quarter Results

28 Jul 2005

LAS VEGAS, Nevada -- (PRESS RELEASE) -- MGM MIRAGE (NYSE: MGM ) today reported its second quarter 2005 financial results.

Adjusted earnings from continuing operations per diluted share ("Adjusted EPS") increased to $0.46 in the second quarter of 2005, the Company's highest quarterly Adjusted EPS ever, and significantly better than the $0.37 earned in the second quarter of 2004.(1) The strong earnings reflect the April 25, 2005 addition of Mandalay Resort Group's ("Mandalay") portfolio of resorts, which had an immediate positive impact on earnings, and continued strength in core hotel and gaming operations. Net revenues increased 60% to $1.7 billion for the quarter. Same-store net revenues were $1.2 billion for the quarter, up 11% over prior year. References in this release to "same-store" results reflect the Company's operations excluding the newly acquired Mandalay resorts.

Second quarter REVPAR (revenue per available room) at the Company's Las Vegas Strip resorts increased 15% over the prior year on a same-store basis, marking the sixth straight quarter of double-digit REVPAR growth. On a same-store basis, table games volume, including baccarat, increased 3% in the quarter and slot revenue increased 7%.

Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, property transactions, tax adjustments and gains or losses on early retirement of debt.(2) On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations increased to $0.48 in the 2005 quarter from $0.35 in the second quarter of 2004. GAAP diluted EPS, including the results of discontinued operations, was $0.48 in the 2005 period versus $0.36 in 2004.

"We are very pleased with the early results from the Mandalay resorts and the continued positive momentum across all of our operations," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We continue to work on integration initiatives and growth plans for our resorts, all with the intent of continuing the revenue and profit growth trends we've experienced over the past several quarters."

Second Quarter 2005 Company Highlights

* Generated net revenues of $1.7 billion; on a same-store basis, net revenues were $1.2 billion, up 11% from 2004;

* Produced property-level EBITDA(3) of $567 million, an all-time Company record for any quarter; on a same-store basis, property-level EBITDA (excluding Monte Carlo when 50%-owned) was $394 million, up 6% over prior year; operating income was $378 million in the quarter versus $261 million in 2004;

* Closed the Mandalay merger on April 25, 2005, with total consideration of $7.3 billion;

* Reduced debt by $513 million since the close of the Mandalay merger;

* Invested $121 million of capital in the Company's resorts;

* Invested an additional $177 million in MGM Grand Paradise, of which the Company owns 50%, which broke ground on the $975 million MGM Grand

Macau hotel and casino;

* Entered into a definitive management agreement with the New York Racing Association ("NYRA") under which the Company will develop and manage a 4,500-unit video lottery terminal ("VLT") facility at NYRA's Aqueduct racetrack;

* Completed a 2-for-1 stock split, effected in the form of a 100% stock dividend, in May 2005.

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	MGM Mirage Reports Record Second Quarter Results 28 Jul 2005 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> LAS VEGAS, Nevada -- (PRESS RELEASE) -- MGM MIRAGE (NYSE: MGM ) today reported its second quarter 2005 financial results. Adjusted earnings from continuing operations per diluted share ("Adjusted EPS") increased to $0.46 in the second quarter of 2005, the Company's highest quarterly Adjusted EPS ever, and significantly better than the $0.37 earned in the second quarter of 2004.(1) The strong earnings reflect the April 25, 2005 addition of Mandalay Resort Group's ("Mandalay") portfolio of resorts, which had an immediate positive impact on earnings, and continued strength in core hotel and gaming operations. Net revenues increased 60% to $1.7 billion for the quarter. Same-store net revenues were $1.2 billion for the quarter, up 11% over prior year. References in this release to "same-store" results reflect the Company's operations excluding the newly acquired Mandalay resorts. Second quarter REVPAR (revenue per available room) at the Company's Las Vegas Strip resorts increased 15% over the prior year on a same-store basis, marking the sixth straight quarter of double-digit REVPAR growth. On a same-store basis, table games volume, including baccarat, increased 3% in the quarter and slot revenue increased 7%. Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, property transactions, tax adjustments and gains or losses on early retirement of debt.(2) On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations increased to $0.48 in the 2005 quarter from $0.35 in the second quarter of 2004. GAAP diluted EPS, including the results of discontinued operations, was $0.48 in the 2005 period versus $0.36 in 2004. "We are very pleased with the early results from the Mandalay resorts and the continued positive momentum across all of our operations," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We continue to work on integration initiatives and growth plans for our resorts, all with the intent of continuing the revenue and profit growth trends we've experienced over the past several quarters." Second Quarter 2005 Company Highlights * Generated net revenues of $1.7 billion; on a same-store basis, net revenues were $1.2 billion, up 11% from 2004; * Produced property-level EBITDA(3) of $567 million, an all-time Company record for any quarter; on a same-store basis, property-level EBITDA (excluding Monte Carlo when 50%-owned) was $394 million, up 6% over prior year; operating income was $378 million in the quarter versus $261 million in 2004; * Closed the Mandalay merger on April 25, 2005, with total consideration of $7.3 billion; * Reduced debt by $513 million since the close of the Mandalay merger; * Invested $121 million of capital in the Company's resorts; * Invested an additional $177 million in MGM Grand Paradise, of which the Company owns 50%, which broke ground on the $975 million MGM Grand Macau hotel and casino; * Entered into a definitive management agreement with the New York Racing Association ("NYRA") under which the Company will develop and manage a 4,500-unit video lottery terminal ("VLT") facility at NYRA's Aqueduct racetrack; * Completed a 2-for-1 stock split, effected in the form of a 100% stock dividend, in May 2005.