MGM MIRAGE Reports Record First Quarter Revenue, Cash Flow And Net Income

19th Apr 2001

MGM MIRAGE (NYSE: MGG) today reported
record earnings of 52 cents per diluted share for the 2001 first quarter,
compared with 38 cents per diluted share in the 2000 quarter.  Excluding
nonrecurring expenses, the Company reported a 26% increase in earnings per
share to an all-time record high of 53 cents per share for the three months
ended March 31, 2001, up from 42 cents per share in the prior year`s quarter.

Net income before nonrecurring expenses grew 76% to $85.2 million in the
2001 quarter from $48.5 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 152% and 137%, respectively, representing the ninth
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 was relatively flat at $1.07 billion while EBITDA increased
3% to $343.6 million in the 2001 first quarter.

“These strong results continue to confirm the tremendous value of
combining two powerful companies creating a diverse portfolio of properties,”
said Terry Lanni, Chairman and Chief Executive Officer of MGM MIRAGE.  “Our
overall earnings, which reflected a normal table games hold percentage,
exceeded expectations despite various challenges such as higher energy prices,
the national economic slowdown and stock market volatility.  Our major Las
Vegas properties all experienced significant room revenue growth in the
quarter and current booking trends remain positive.  The capital and
operational strategies already underway are intended to continue this positive

First Quarter Company Highlights:
—Experienced strong increases in revenue per available room (“REVPAR”)
    at every major Las Vegas property
—Produced significant free cash flow at all operating properties
—Sold $12 million in non-strategic assets during the quarter, bringing
    the total assets sold since the Mirage acquisition to $241 million
—Reduced debt by $123 million during the quarter, resulting in total
    debt reduction of $652 million since the acquisition of Mirage Resorts
—Construction of Borgata, our 50% owned resort, is on track and the
    design phase for a second wholly-owned resort in Atlantic City is


—Issued $400 million of Senior Subordinated Notes, maturing on
    February 1, 2011

—Extinguished the balance of the $1.3 billion Term Loan with proceeds
    from the note offering and free cash flow



Recommended for you

Follow Breaking Travel News

Travel Events Calendar

Media Partnerships

Global Restaurant Investment ForumThe Hospitality & Tourism SummitCATHIC
ITB AsiaChina Outbound Travel & Tourism MarketThe Travel Marketing Store
Serviced Apartment SummitWorld Travel MarketIMEX
AHICWTTCRoutes Online
UBM Aviation