MGM Grand, Inc. (NYSE: MGG) today
reported its ninth consecutive increase in quarterly net income and earnings
per share (on a fully taxed adjusted basis and before one-time charges) on a
year-over-year basis. The Company reported basic earnings per share for the
fourth quarter of 1997 of 58 cents, compared with the prior year`s fourth
quarter of 51 cents (before one-time charges), representing an increase of
14%. For the year ended December 31, 1997, basic earnings per share (on a
fully taxed adjusted basis and before one-time charges) soared to a record
$2.33, an increase of 25% when compared with $1.86 in the prior year, despite
a 9% increase in outstanding shares.
Net revenues for the 1997 fourth quarter reached an all-time record high
of $212.6 million, compared with $205.6 million for the same period in 1996.
Operating cash flow (EBITDA) for the three months ended December 31, 1997,
increased 11% to $72.6 million, versus $65.6 million in the prior year`s
fourth quarter (before one-time charges). Net income for the quarter was
$33.4 million, an increase of 15% when compared with $29.1 million for the
1996 fourth quarter (before one-time charges).
“This has been an outstanding year for our Company, with the enhanced
Master Plan transforming our flagship property, MGM Grand Las Vegas, into `The
City of Entertainment,` the enormously successful first year of New York-New
York Hotel and Casino, the strategic alliances formed with Marriott and Metro-
Goldwyn-Mayer, and the selection of our Company as a finalist to develop, own
and operate a hotel/casino and entertainment complex in Detroit,” said
J. Terrence Lanni, Chairman and Chief Executive Officer of MGM Grand, Inc.
MGM Grand has a $1.25 billion unused credit facility as of December 31,
1997. On January 26, 1998, the Company completed a public offering of
$300 million of 6.95% Senior Collateralized Notes due 2005, and its investment
grade rating was confirmed by both Moody`s and Standard and Poor`s.
“Our Company`s strong earnings and cash flows, as well as our conservative
capital structure, are the foundation of the financial stability necessary to
execute our disciplined growth strategy,” said Alex Yemenidjian, President and
Chief Operating Officer.