LAS VEGAS, Aug. 5 NV-MGM-MIRAGE-earns
LAS VEGAS, Aug. 5 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE: MGM) today
reported its second quarter 2008 financial results. The Company achieved 97%
occupancy at its Las Vegas Strip resorts, while company-wide net revenue
declined 2%. The Company earned $0.40 per diluted share from continuing
operations in the 2008 second quarter, compared to $0.62 in the prior year
second quarter. The 2007 quarter included $63 million, or $0.14 per diluted
share net of tax, of residential sales at The Signature at MGM Grand. The
2008 quarter includes $19 million, or $0.04 per diluted share net of tax, of
insurance recovery income related to the Monte Carlo fire.
Overall trends were similar to those experienced in the first quarter of
2008 -- guests continued to visit the Company's resorts in high numbers, but
at lower room rates, and current economic conditions led to lower visitor
spending. Gaming revenues were impacted slightly more than non-gaming
revenues, with the Company experiencing a 4% decline in gaming revenues on a
quarter-over-quarter basis. Net non-gaming revenues were flat as relative
strength in food and beverage and entertainment revenue offset lower revenue
in rooms and retail. The Company also notes that results at its regional
properties in Mississippi and Michigan improved compared to first quarter
performance and exceeded 2007 results.
Key results for the quarter include:
-- Net revenue decreased 2% to $1.9 billion;
-- Las Vegas Strip REVPAR(1) decreased 5%; occupancy was 97% at the
Company's Las Vegas Strip resorts versus 98% a year ago;
-- Casino revenue decreased 4%, mainly as result of lower table games
volume at the Company's Las Vegas Strip resorts and a 10% decline in
Las Vegas Strip slots revenue, offset by increased slots revenue at
the larger MGM Grand Detroit and increases at Beau Rivage and Gold
Strike Tunica;
-- Property EBITDA(2) decreased 12% on a comparable basis, after removing
the impact of the prior year residential profits and current year
insurance recoveries. On an absolute basis, Property EBITDA was $564
million in the 2008 quarter, an 18% decrease from the prior year;
-- Bellagio and Mandalay Bay reported increases in Property EBITDA, with
Bellagio reporting its highest ever quarterly hotel revenue and
leading the Las Vegas market in Property EBITDA; Mandalay Bay produced
a record for second quarter EBITDA.
The following table lists certain items which affect the comparability of
the current year and prior year quarterly results (earnings per share impact
shown, net of tax, per diluted share; negative amounts represent charges to
income):
Three months ended June 30,2008 2007
--------------------------- ------------
Profits from The Signature at MGM Grand $- $ 0.14
Preopening and start-up expenses (0.02)(0.03)
Monte Carlo fire business interruption
(recorded as a reduction of general
and administrative expenses) 0.02 -
Property transactions, net:
Monte Carlo fire property damage insurance0.02 -
Other property transactions (0.02)(0.01)
"Our resorts were near capacity and we believe our market share increased,
as discriminating customers seek the best resort and entertainment
experiences," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "Our track
record of successfully navigating through changing economic conditions is
solid and is reinforced by our results this quarter."
Detailed Discussion of Second Quarter Operating Results
Casino revenue decreased 4%, mainly due to a decrease in table games
volume of 7%. The table games hold percentage was at the mid-point of the
normal 18% to 22% range in the current quarter and slightly higher than in the
2007 quarter. Slots revenue decreased 2% in the quarter, with the Company's
Las Vegas Strip resorts posting a 10% decrease. However, slots revenue
increased in the high single digits at Beau Rivage and Gold Strike Tunica and
18% at MGM Grand Detroit. MGM Grand Detroit continues to gain market share as
a result of its upgraded amenities.
Rooms revenue decreased 6%, with a 5% decline in Las Vegas Strip REVPAR.
Average room rates were down 5% at the Company's Las Vegas Strip resorts. Las
Vegas Strip occupancy decreased slightly, and the Company had approximately
32,000 less rooms available at its Las Vegas Strip resorts, mainly due to the
lower room count at Monte Carlo. The following table shows key hotel
statistics for the Company's Las Vegas Strip resorts:
Three months ended June 30, 2008 2007
--------------------------- ------------
Occupancy % 97% 98%
Average Daily Rate (ADR) $155 $162
Revenue per Available Room (REVPAR) $150 $159
These trends are largely in line with the Company's experience in the
first quarter, when Las Vegas Strip REVPAR decreased 4%. In the second
quarter, the Company strategically managed its room rates to ensure that
occupancy was maximized in line with historical levels.
Food and beverage revenue increased 2% and entertainment revenues also
performed well, only down 4% despite a difficult comparison as the second
quarter of 2007 featured the Oscar de la Hoya-Floyd Mayweather fight. The
Company's Cirque du Soleil production shows generated a combined 3% increase
in revenue. The Company believes its restaurants, nightclubs and shows
continue to attract guests seeking the highest quality experience, and the
Company has continued to introduce new venues such as the recently opened
Brand Steakhouse at Monte Carlo, Tender Steakhouse at Luxor, BLT Burger at The
Mirage, and Yellowtail sushi restaurant at Bellagio; and the soon-to-open
RokVegas nightclub at New York-New York. In addition, the new production show
from Cirque du Soleil and Criss Angel, Believe, will open in the fall.
The Company recorded $19 million of insurance recovery income in the
quarter related to the January 2008 Monte Carlo fire -- $9 million related to
business interruption recorded as a reduction of general and administrative
expenses, and $10 million related to property damage recorded as property
transactions. Through June 30, 2008, the Company had received $50 million from
its insurers. Excluding the insurance recovery income, Monte Carlo earned
Property EBITDA of $17 million in the 2008 second quarter compared to $32
million reported in the 2007 second quarter; the property is still without
nearly 200 rooms, mostly suites, as a result of the fire.
Corporate expense decreased from $44 million in the 2007 quarter to $27
million in 2008, due to the impact of cost reduction measures implemented
during the quarter and lower accruals for profit-based bonuses.
MGM Grand Macau, of which the Company owns 50%, recorded Property EBITDA
of $23 million and an operating loss of $5 million. The Company recognized
its share of MGM Grand Macau's results as follows: $4 million of loss in the
"Income from unconsolidated affiliates" line and $3 million of expense in
"Non-operating items from unconsolidated affiliates."
"As these results represent only our second full quarter of operations at
MGM Grand Macau, we believe we are still in the early stages of realizing the
potential of this resort," said Mr. Lanni. "We have taken several steps to
improve our operating performance over the past several months and based on
our results in June and July, we believe these measures are having the desired
impact as evidenced by our increased market share."
Operating income decreased 29% for the quarter to $334 million, a larger
percentage decrease than the 18% drop in Property EBITDA as a result of higher
depreciation expense, including the larger MGM Grand Detroit. Year-over-year
comparisons for both Property EBITDA and operating income were impacted by the
prior year Signature profits of $63 million and the other items described
earlier in the release. On a comparable basis excluding these items in both
quarterly periods, Property EBITDA decreased 12% with a margin of 30% in 2008
versus 33% in 2007; and operating income decreased 21% with a margin of 17%
versus 22%.
Net income, including discontinued operations, decreased to $113 million,
or $0.40 per diluted share, from $360 million, or $1.22 per diluted share. In
addition to the factors described above, the decrease resulted from the $264
million of pre-tax gains recorded in the prior year quarter from the sale of
discontinued operations (the Primm Valley Resorts and Laughlin Properties).
"Our resorts are clearly positioned to be the standard of quality in our
industry, and our results reflect that competitive position," said Jim Murren,
President and Chief Operating Officer of MGM MIRAGE. "While we had mixed
results, some of our properties generated increases in cash flow in this
challenging environment, and our cost reduction efforts continue to gain
traction without impacting guest service; we expect these initiatives will
benefit us well into the future. We believe in the durability of the Las
Vegas market and that over time it will continue to grow in line with
historical trends. Our own forward booking trends show improvement in the
fourth quarter of 2008 and into 2009."
Financial Position
Second quarter capital investments totaled $221 million which included $73
million on room and suite remodel projects, primarily at The Mirage and TI; $7
million for the theatre at Luxor; expenditures of $9 million for remediation
efforts at Monte Carlo; and $23 million for the people mover joining
CityCenter, Monte Carlo and Bellagio, and Monte Carlo's share of a parking
garage being constructed for both Monte Carlo and CityCenter. The remaining
$109 million was for other capital expenditures, including various new and
upgraded amenities at the Company's resorts.
The Company repurchased 2.6 million shares of its common stock in the open
market for $134 million during the second quarter, completing the Company's
December 2007 share repurchase authorization. In May 2008, the Company's Board
of Directors approved a new 20 million share repurchase program; however, the
Company has not repurchased any shares under this authorization. Available
borrowing capacity under the Company's senior credit facility was $1.7 billion
as of June 30, 2008; after giving effect to the repayment of $196 million of
senior notes in August 2008, such availability is $1.5 billion.
During the quarter, the Company and Dubai World each funded $300 million
of construction costs for CityCenter. The Company and Dubai World are
currently working with several relationship lenders regarding a $3 billion
financing package for the joint venture. To date, CityCenter has received
commitments totaling $1.65 billion from the lead banks -- Bank of America,
Royal Bank of Scotland, UBS, BNP Paribas, and Sumitomo Mitsui. In addition,
CityCenter has received commitments from Deutsche Bank, Morgan Stanley, and
the Bank of Nova Scotia.
"In an unprecedented credit market, CityCenter has received to date well
over half of the financing committed from these institutions and anticipates
finalizing its bank financing this quarter," said Executive Vice President and
Chief Financial Officer of MGM MIRAGE, Dan D'Arrigo. Related to MGM MIRAGE
capital spending, Mr. D'Arrigo noted, "Over the past several years, we have
invested significant capital in our resorts in the form of new restaurants,
entertainment venues and upgraded rooms, and we maintain them at the highest
level. As a result, our required capital spending for the remainder of this
year and into 2009 will be lower than in the recent past, enhancing our
available free cash flow."
MGM MIRAGE will hold a conference call to discuss its second quarter
earnings results and outlook for the third quarter of 2008 at 11:00 a.m.
Eastern Daylight Time today. The call can be accessed live at
http://www.companyboardroom.com or http://www.mgmmirage.com, or by calling
1-800-526-8531 (domestic) or 1-706-634-6528 (international). Until August 12,
2008, a complete replay of the conference call can be accessed by dialing
1-706-645-9291, access code 54787690. A complete replay of the call will also
be made available at http://www.mgmmirage.com. Supplemental detailed earnings
information will also be available on the Company's website.
(1) REVPAR is hotel Revenue per Available Room.
(2) "EBITDA" is earnings before interest and other non-operating income
(expense), taxes, depreciation and amortization. "Property EBITDA"
is EBITDA before corporate expense and stock compensation expense.
EBITDA information is presented solely as a supplemental disclosure
because management believes that it is 1) a widely used measure of
operating performance in the gaming industry, and 2) a principal
basis for valuation of gaming companies. In addition, capital
allocation, tax planning, financing and stock compensation awards are
all managed at the corporate level. Management uses Property EBITDA
as the primary measure of the Company's operating resorts'
performance, including the evaluation of operating personnel. EBITDA
should not be construed as an alternative to operating income, as an
indicator of the Company's operating performance; or as an
alternative to cash flows from operating activities, as a measure of
liquidity; or as any other measure determined in accordance with
generally accepted accounting principles. The Company has
significant uses of cash flows, including capital expenditures,
interest payments, taxes and debt principal repayments, which are not
reflected in EBITDA. Also, other gaming companies that report EBITDA
information may calculate EBITDA in a different manner than the
Company. Reconciliations of consolidated EBITDA to net income and of
operating income to Property EBITDA are included in the financial
schedules accompanying this release.
MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected
development companies with significant holdings in gaming, hospitality and
entertainment, owns and operates 17 properties located in Nevada, Mississippi
and Michigan, and has 50% investments in four other properties in Nevada, New
Jersey, Illinois and Macau. MGM MIRAGE is developing major casino and
non-casino resorts, separately and with partners in Las Vegas, Atlantic City,
the People's Republic of China and Abu Dhabi, U.A.E. MGM MIRAGE supports
responsible gaming and has implemented the American Gaming Association's Code
of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received
numerous awards and recognitions for its industry-leading Diversity Initiative
and its community philanthropy programs. For more information about MGM
MIRAGE, please visit the company's website at http://www.mgmmirage.com.
Statements in this release which are not historical facts are "forward
looking" statements and "safe harbor statements" under the Private Securities
Litigation Reform Act of 1995 that involve risks and/or uncertainties,
including risks and/or uncertainties as described in the company's public
filings with the Securities and Exchange Commission.
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
June 30,June 30, June 30,June 30,
20082007 20082007
---------- ---------- ---------- ----------
Revenues:
Casino $ 742,183 $ 773,931 $1,532,647 $1,585,870
Rooms 523,530 555,107 1,042,271 1,104,111
Food and beverage 431,563 424,717 833,955 842,166
Entertainment 138,030 143,237 272,868 277,485
Retail 68,818 79,072 132,855 147,322
Other 155,984 134,760 303,957 256,830
---------- ---------- ---------- ----------
2,060,108 2,110,824 4,118,553 4,213,784
Less: Promotional
allowances (164,389) (174,408) (339,201) (347,933)
---------- ---------- ---------- ----------
1,895,719 1,936,416 3,779,352 3,865,851
---------- ---------- ---------- ----------
Expenses:
Casino400,979 401,342 817,542 813,134
Rooms 139,736 137,078 276,533 272,263
Food and beverage 246,799 240,701 483,071 476,405
Entertainment 98,286 103,389 193,950 200,632
Retail 42,495 48,830 85,659 92,574
Other 96,196 75,252 188,760 144,060
General and
administrative 323,811 329,711 644,185 641,385
Corporate expense 26,621 43,668 59,071 77,623
Preopening and start-up
expenses 6,957 14,148 12,121 28,424
Restructuring costs - - 329 -
Property transactions, net (118) 2,407 2,658 7,426
Depreciation and
amortization 197,218 167,509 391,557 335,786
---------- ---------- ---------- ----------
1,578,980 1,564,035 3,155,436 3,089,712
---------- ---------- ---------- ----------
Income from
unconsolidated
affiliates 17,045 96,592 51,156 137,967
---------- ---------- ---------- ----------
Operating income333,784 468,973 675,072 914,106
---------- ---------- ---------- ----------
Non-operating income
(expense):
Interest income 3,680 5,509 7,146 8,166
Interest expense, net(145,304) (183,429) (295,093) (367,440)
Non-operating items
from unconsolidated
affiliates(7,288) (4,714)(17,179) (9,820)
Other, net (1,564) (804) (1,334) (3,532)
---------- ---------- ---------- ----------
(150,476) (183,438) (306,460) (372,626)
---------- ---------- ---------- ----------
Income from continuing
operations before income
taxes 183,308 285,535 368,612 541,480
Provision for income
taxes(70,207) (102,637) (137,165) (195,572)
---------- ---------- ---------- ----------
Income from continuing
operations 113,101 182,898 231,447 345,908
---------- ---------- ---------- ----------
Discontinued operations:
Income from discontinued
operations - 2,615 -10,461
Gain on disposal of
discontinued operations - 263,881 - 263,881
Provision for income
taxes- (89,222)- (91,905)
---------- ---------- ---------- ----------
- 177,274 - 182,437
---------- ---------- ---------- ----------
Net income $ 113,101 $ 360,172 $ 231,447 $ 528,345
========== ========== ========== ==========
Per share of common stock:
Basic:
Income from continuing
operations$ 0.41 $ 0.64 $ 0.82 $ 1.22
Discontinued operations - 0.63 - 0.64
---------- ---------- ---------- ----------
Net income per share$ 0.41 $ 1.27 $ 0.82 $ 1.86
========== ========== ========== ==========
Weighted average shares
outstanding 277,468 283,849 283,205 283,933
========== ========== ========== ==========
Diluted:
Income from continuing
operations$ 0.40 $ 0.62 $ 0.79 $ 1.17
Discontinued operations - 0.60 - 0.62
---------- ---------- ---------- ----------
Net income per share$ 0.40 $ 1.22 $ 0.79 $ 1.79
========== ========== ========== ==========
Weighted average shares
outstanding 284,615 295,232 291,508 295,402
========== ========== ========== ==========
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Las Vegas Strip $ 1,551,148 $ 1,640,648 $ 3,099,205 $ 3,266,991
Other Nevada 38,82147,05875,671 91,490
MGM Grand Detroit 145,428 110,470 290,208 226,604
Mississippi 139,401 138,240 273,623 280,766
Other20,921 - 40,645 -
----------- ----------- ----------- -----------
$ 1,895,719 $ 1,936,416 $ 3,779,352 $ 3,865,851
=========== =========== =========== ===========
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
------------------------- ------------------------
June 30, June 30, June 30,June 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Las Vegas Strip $ 482,744 $ 531,224 $ 962,240 $ 1,080,066
Other Nevada (735)6,080(1,420) 4,084
MGM Grand Detroit38,52428,11672,936 62,942
Mississippi 28,61627,90755,986 63,310
Other 4,170 - 8,749 -
Unconsolidated
resorts 10,63492,95240,001 131,094
----------- ----------- ----------- -----------
$ 563,953 $ 686,279 $ 1,138,492 $ 1,341,496
=========== =========== =========== ===========
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
(In thousands)
(Unaudited)
Three Months Ended June 30, 2008
--------------------------------
Preopening
and Property
start-upRestructuring transactions,
expenses costs netTotal
----------- ----------- ----------- -----------
Las Vegas Strip $ 394 $-$(3,628) $(3,234)
Other Nevada - - 2,1872,187
MGM Grand Detroit (59) --(59)
Mississippi - - (3) (3)
Unconsolidated
resorts6,575-- 6,575
----------- ----------- ----------- -----------
6,910- (1,444) 5,466
Corporate and other47- 1,3261,373
----------- ----------- ----------- -----------
$ 6,957 $-$ (118) $ 6,839
=========== =========== =========== ===========
Three Months Ended June 30, 2007
--------------------------------
Preopening
and Property
start-up Restructuring transactions,
expenses costs net Total
----------- ----------- ----------- -----------
Las Vegas Strip $ 7,131 $-$ 2,587 $ 9,718
Other Nevada--(20) (20)
MGM Grand Detroit 3,205- -3,205
Mississippi --603 603
Unconsolidated
resorts3,640- -3,640
----------- ----------- ----------- -----------
13,976- 3,170 17,146
Corporate and
other172- (763)(591)
----------- ----------- ----------- -----------
$14,148 $-$ 2,407 $16,555
=========== =========== =========== ===========
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
(continued)
(In thousands)
(Unaudited)
Six Months Ended June 30, 2008
------------------------------
Preopening
and Property
start-up Restructuring transactions,
expensescosts net Total
----------- ----------- ----------- -----------
Las Vegas Strip $ 620 $ 329 $ (839) $ 110
Other Nevada- - 2,1872,187
MGM Grand Detroit 135 - 8 143
Mississippi - - 22
Unconsolidated
resorts 11,319 - - 11,319
----------- ----------- ----------- -----------
12,074 329 1,358 13,761
Corporate and other 47 - 1,3001,347
----------- ----------- ----------- -----------
$12,121 $ 329 $ 2,658 $15,108
=========== =========== =========== ===========
Six Months Ended June 30, 2007
------------------------------
Preopening
and Property
start-up Restructuring transactions,
expenses costsnetTotal
----------- ----------- ----------- -----------
Las Vegas Strip $15,603 $-$ 2,865 $18,468
Other Nevada-- 4,6104,610
MGM Grand Detroit 5,584 -- 5,584
Mississippi --601 601
Unconsolidated
resorts 6,873 -- 6,873
----------- ----------- ----------- -----------
28,060 - 8,076 36,136
Corporate and other 364 - (650)(286)
----------- ----------- ----------- -----------
$28,424 $-$ 7,426 $35,850
=========== =========== =========== ===========
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING
OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30,June 30,
2008 2007 20082007
---------- ---------- ---------- ----------
EBITDA $ 531,002 $ 636,482 $1,066,629 $1,249,892
Depreciation and
amortization (197,218) (167,509) (391,557) (335,786)
---------- ---------- ---------- ----------
Operating income 333,784 468,973675,072 914,106
---------- ---------- ---------- ----------
Non-operating income
(expense):
Interest expense, net (145,304) (183,429) (295,093) (367,440)
Other(5,172) (9) (11,367) (5,186)
---------- ---------- ---------- ----------
(150,476) (183,438) (306,460) (372,626)
---------- ---------- ---------- ----------
Income from continuing
operations before
income taxes 183,308 285,535368,612 541,480
Provision for income taxes (70,207) (102,637) (137,165) (195,572)
---------- ---------- ---------- ----------
Income from continuing
operations$ 113,101 $ 182,898 $ 231,447 $ 345,908
========== ========== ========== ==========
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended June 30, 2008
--------------------------------
Depreciation
Operating and
income amortization EBITDA
------------ ------------ ------------
Las Vegas Strip$334,457 $148,287 $482,744
Other Nevada (2,220)1,485 (735)
MGM Grand Detroit24,22714,29738,524
Mississippi 13,14815,46828,616
Other 2,091 2,079 4,170
Unconsolidated resorts 10,634 - 10,634
------------ ------------ ------------
382,337 181,616 563,953
Stock compensation (9,592)
Corporate and other (23,359)
------------
$531,002
============
Three Months Ended June 30, 2007
--------------------------------
Depreciation
Operating and
income amortization EBITDA
------------ ------------ -----------
Las Vegas Strip $397,731 $133,493 $ 531,224
Other Nevada 4,490 1,5906,080
MGM Grand Detroit 22,204 5,912 28,116
Mississippi 12,78115,126 27,907
Unconsolidated resorts92,952 - 92,952
------------ ------------ -----------
530,158 156,121 686,279
Stock compensation (11,060)
Corporate and other (38,737)
-----------
$ 636,482
===========
Six Months Ended June 30, 2008
------------------------------
Depreciation
Operating and
income amortization EBITDA
------------ ------------ -----------
Las Vegas Strip $667,754 $294,486 $ 962,240
Other Nevada (4,406)2,986 (1,420)
MGM Grand Detroit 44,28828,648 72,936
Mississippi 24,96131,025 55,986
Other 4,672 4,0778,749
Unconsolidated resorts40,001 - 40,001
------------ ------------ -----------
777,270 361,2221,138,492
Stock compensation (20,795)
Corporate and other (51,068)
-----------
$ 1,066,629
===========
Six Months Ended June 30, 2007
------------------------------
Depreciation
Operating and
income amortizationEBITDA
------------ ------------ -----------
Las Vegas Strip $812,676 $267,390 $ 1,080,066
Other Nevada 619 3,4654,084
MGM Grand Detroit 51,06811,874 62,942
Mississippi 33,01830,292 63,310
Unconsolidated resorts 131,094 -131,094
------------ ------------ -----------
1,028,475 313,0211,341,496
Stock compensation (24,640)
Corporate and other (66,964)
-----------
$ 1,249,892
===========
MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
June 30, December 31,
2008 2007
----------------------
ASSETS
Current assets:
Cash and cash equivalents $ 279,995$ 416,124
Accounts receivable, net 366,133412,933
Inventories125,781126,941
Income tax receivable1,752-
Deferred income taxes 72,437 63,453
Prepaid expenses and other 95,723106,364
----------------------
Total current assets 941,821 1,125,815
----------------------
Property and equipment, net 16,924,342 16,870,898
Other assets:
Investments in unconsolidated
affiliates 2,504,529 2,482,727
Goodwill 1,262,922 1,262,922
Other intangible assets, net 360,502362,098
Deposits and other assets, net 1,136,995623,226
----------------------
Total other assets 5,264,948 4,730,973
----------------------
$23,131,111$22,727,686
======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 164,055$ 220,495
Construction payable57,658 76,524
Income taxes payable - 284,075
Accrued interest on long-term
debt 190,322211,228
Other accrued liabilities 875,226932,365
----------------------
Total current liabilities 1,287,261 1,724,687
----------------------
Deferred income taxes3,375,204 3,416,660
Long-term debt 13,010,813 11,175,229
Other long-term obligations371,518350,407
Stockholders' equity:
Common stock, $.01 par value:
authorized 600,000,000 shares,
issued 369,110,366 and
368,395,926 shares and
outstanding 276,333,339
and 293,768,899 shares 3,691 3,684
Capital in excess of par value 3,996,481 3,951,162
Treasury stock, at cost:
92,777,027 and 74,627,027
shares (3,355,963)(2,115,107)
Retained earnings4,451,855 4,220,408
Accumulated other comprehensive
income (loss) (9,749) 556
----------------------
Total stockholders' equity 5,086,315 6,060,703
----------------------
$23,131,111$22,727,686
======================
SOURCE MGM MIRAGE
