LAS VEGAS, NV – February 10, 2022 – MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter and year ended December 31, 2021.
“Our record fourth quarter results are a testament to our talented team across the globe, our sharpened focus on operational efficiency and the proven resiliency of demand for the service and experiences that we provide at MGM Resorts,” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. “The strategic milestones we achieved in 2021 position us for further success in 2022, and we remain excited about our long-term opportunities including: leading the U.S. sports betting and iGaming market through BetMGM, pursuing disciplined geographic expansion such as the Japan integrated resort, and reinvesting in our core business to drive sustainable growth. As part of these efforts, we are proud to have recently launched our new loyalty program, MGM Rewards, which offers an enhanced and further streamlined experience to millions of our members worldwide.”
“In 2021, we further bolstered our liquidity position while returning $1.75 billion to shareholders via share repurchases and making strategic investments that align with our vision to be the world’s premier gaming entertainment company,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International. “We remain committed to maximizing long-term shareholder value and our capital allocation strategy continues to be anchored in three key priorities: maintaining a strong balance sheet, programmatically returning cash to shareholders, and investing in targeted growth opportunities.”
Fourth Quarter 2021 Financial Highlights:
Consolidated Results
- Consolidated net revenues of $3.1 billion which included a full quarter of operating results from Aria and Vdara (collectively, “Aria”), an increase of 105% compared to the prior year quarter. While the current quarter benefited from the removal of mandated operational and capacity restrictions as well as an increase in travel, the prior year quarter was negatively affected by temporary closures at certain properties and operational restrictions due to the COVID-19 pandemic;
- Net income attributable to MGM Resorts of $131 million compared to net loss attributable to MGM Resorts of $448 million in the prior year quarter;
- Diluted earnings per share of $0.23 in the current quarter compared to diluted loss per share of $0.92 in the prior year quarter;
- Adjusted diluted earnings per share (“Adjusted EPS”)(1) of $0.12 in the current quarter compared to an Adjusted EPS loss per share of $0.90 in the prior year quarter; and
- Consolidated Adjusted EBITDAR(2) of $821 million in the current quarter.
Las Vegas Strip Resorts
- Net revenues of $1.8 billion, an increase of 277% compared to the prior year quarter, an increase of 26% compared to the fourth quarter of 2019, and an increase of 5% compared to the fourth quarter of 2019 when excluding Aria in 2021 and excluding Circus Circus Las Vegas in 2019(5). While the current quarter benefited from the removal of mandated operational and capacity restrictions as well as an increase in travel, the prior year quarter was negatively affected by temporary hotel tower closures at certain properties and operational restrictions;
- Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) of $1.8 billion, an increase of 272% compared to the prior year quarter, an increase of 24% compared to the fourth quarter of 2019, and an increase of 4% compared to the fourth quarter of 2019 when excluding Aria in 2021 and excluding Circus Circus Las Vegas in 2019;
- Adjusted Property EBITDAR(2) of $699 million, an increase of 1,196% compared to the prior year quarter, an increase of 84% compared to the fourth quarter of 2019, and an increase of 43% compared to the fourth quarter of 2019 when excluding Aria in 2021 and excluding Circus Circus Las Vegas in 2019;
- Adjusted Property EBITDAR margin(2) of 38.7% in the current quarter, an increase of 2,744 basis points compared to the prior year quarter, an increase of 1,209 basis points compared to the fourth quarter of 2019, and an increase of 986 basis points compared to the fourth quarter of 2019 when excluding Aria in 2021 and excluding Circus Circus Las Vegas in 2019, due primarily to an increase in net revenues and realized benefits of the Company’s cost savings initiatives; and
- Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) of $690 million, an increase of 1,112% compared to the prior year quarter, an increase of 76% compared to the fourth quarter of 2019, and an increase of 36% compared to the fourth quarter of 2019 when excluding Aria in 2021 and excluding Circus Circus Las Vegas in 2019.
Regional Operations
- Net revenues of $900 million, an increase of 51% compared to the prior year quarter and flat compared to the fourth quarter of 2019. While the current quarter benefited from the removal of mandated operational and capacity restrictions as well as an increase in travel, the prior year quarter was negatively affected by temporary property closures at certain properties and operational restrictions;
- Adjusted Property EBITDAR of $309 million, an increase of 95% compared to the prior year quarter, and an increase of 36% compared to the fourth quarter of 2019; and
- Adjusted Property EBITDAR margin of 34.4% in the current quarter, an increase of 774 basis points compared to the prior year quarter, and an increase of 902 basis points compared to the fourth quarter of 2019 due primarily to realized benefits of the Company’s cost savings initiatives.
MGM China
- Net revenues of $315 million, an increase of 3% compared to the prior year quarter and a decrease of 57% compared to the fourth quarter of 2019. The current and prior year quarters were negatively affected by travel and entry restrictions in Macau due to the COVID-19 pandemic;
- VIP Table Games Hold Adjusted MGM China Net Revenues(3) of $313 million, an increase of 3% compared to the prior year quarter and a decrease of 55% compared to the fourth quarter of 2019;
- Adjusted Property EBITDAR of $5 million, a decrease of 88% compared to the prior year quarter due primarily to a $23 million bonus reversal in the prior year quarter and a $13 million increase in bad debt expense, and a decrease of 97% compared to the fourth quarter of 2019; and
- VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR(2) of $2 million, a decrease of 96% compared to the prior year, and a decrease of 99% compared to the fourth quarter of 2019.
Recent Developments
On December 13, 2021, the Company entered into an agreement to sell 100% of the equity interests of The Mirage to an affiliate of Seminole Hard Rock Entertainment, Inc. (“Hard Rock”) for cash consideration of $1.075 billion, subject to certain purchase price adjustments. The transaction is expected to close during the second half of 2022, subject to certain closing conditions, including, but not limited to, the consummation or termination of the VICI Transaction and receipt of regulatory approvals. Upon closing, the master lease between the Company and VICI (or MGP, in the event that the VICI Transaction is terminated) will be amended and restated to reflect a $90 million reduction in annual cash rent.
View full results here.
