MGM MIRAGE (NYSE: MGG) today reported
earnings of 42 cents per diluted share for the three months ended December 31,
2000, compared with 34 cents per diluted share in the 1999 fourth quarter.
Excluding preopening expenses, the company reported a 19% increase in earnings
per share to 43 cents per share for the 2000 fourth quarter, up from 36 cents
per share in the prior year`s quarter. For the twelve months ended December
31, 2000, earnings per share rose 51% to $1.09 from 72 cents in 1999.
Earnings per share during 2000, excluding non-recurring items, increased
44% to $1.70 from $1.18 in the prior year.
Net income before preopening expenses increased 66% to $69.2 million in
the 2000 quarter from $41.7 million in the prior year`s quarter. These
results reflect the continued strong performance from the company`s casino and
hotel operations and the impact of the historic acquisition of Mirage Resorts,
Incorporated (“Mirage Resorts”) on May 31, 2000. Revenue and operating cash
flow (“EBITDA”) soared 155% and 150%, respectively, representing the eighth
consecutive quarterly increase in revenue and EBITDA on a year-over-year
On a pro forma basis to account for the Mirage Resorts acquisition in both
periods, revenue grew 2% to $1.1 billion while EBITDA rose 10% to
$316.9 million in the 2000 quarter. For the twelve months ended December 31,
2000, pro forma same-store net revenue increased 4% while same-store EBITDA
grew an impressive 14%.
“We knew when we combined these two companies we had assembled an
unmatched portfolio of properties,” said Terry Lanni, Chairman of MGM MIRAGE.
“Our challenge was to leverage these resorts to achieve the type of returns
that would drive shareholder value. Our fourth quarter results were
particularly strong and we are off to a good start in the current quarter as
Fourth Quarter Company Highlights:
—Net revenue soared 155% to $1.1 billion
—Earnings rose 19% to 43 cents per diluted share before preopening
—EBITDA grew 150% to $316.9 million
—Produced significant free cash flow at all operating properties
—Operated the three most profitable resorts in the state of Nevada
—Sold approximately $69.2 million in non-strategic assets bringing the
total assets sold in 2000 to approximately $229 million
—Reduced debt by $168 million, resulting in total debt reduction during
2000 of $529 million since the acquisition of Mirage Resorts
—Achieved cost savings ahead of targeted results
—Completed $630 million in financing for the development and
construction of the Borgata resort in Atlantic City, a joint venture
with Boyd Gaming