Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing period-to-period comparisons of the results of the Company’s continuing operations to assist investors in reviewing the Company’s operating performance over time. Management believes that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company’s earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, and items further discussed in footnote 2 above, may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company’s performance. In addition, Adjusted EPS may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies.
- MGM Resorts International exceeded expectations in international and digital ventures, while facing challenges in Las Vegas casino revenue.
- With a commitment to sustainability and LEED Gold certification, it provides a clean, modern, and sophisticated atmosphere for guests seeking refuge from the typical Vegas hustle.
- This modern and sleek resort that boasts a high-tech casino, a spa and salon, and a pool deck with cabanas and lounges.
- The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
- Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company’s performance.
- (2) Three months ended September 30, 2024 includes amounts related to MGM China of $17 million, global development of $3 million, and transaction costs of $3 million.
- Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company’s properties, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period.
- Luxor is a South-Strip resort that resembles an ancient Egyptian pyramid, complete with a sphinx, an obelisk, and a light beam.
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In addition, other companies in the gaming and hospitality industries that report Adjusted EBITDAR may calculate Adjusted EBITDAR in a different manner and such differences may be material. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes, real estate triple-net lease and ground lease payments, and debt principal repayments, which are not reflected in Adjusted EBITDAR. A reconciliation of GAAP net income to Adjusted EBITDAR is included in the financial schedules in this release. “Adjusted Property EBITDAR” is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments.
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Free Cash Flow should not be construed as an alternative to net cash provided by operating activities as a measure of liquidity. The Company’s definition of Free Cash Flow is limited in that it does not represent residual cash flows for discretionary expenditures due to the fact that it does not deduct payments for debt service or other obligations and does not reflect the total movement of cash as detailed in the Company’s consolidated statements of cash flows. In addition, Free Cash Flow may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly titled non-GAAP measures of other companies. A reconciliation of GAAP net cash provided by operating activities to Free Cash Flow is included in the financial schedules in this release.
MGM Grand
This 5-star MGM Resort property is ideal for travelers who appreciate upscale elegance and sophistication.
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This reflects stable operations outside the Las Vegas Strip, contributing to a balanced revenue mix across the company. A massive and iconic resort that showcases a variety of entertainment options, including Cirque du Soleil’s KÀ, the longstanding David Copperfield magic show, a massive pool complex with a lazy river, and the Wet Republic Ultra Pool. A good choice for travelers who want to be in the middle of all the action and experience everything Las Vegas has to offer. (2) Three months ended September 30, 2024 includes amounts related to MGM China of $17 million, global development of $3 million, and transaction costs of $3 million.
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Focused on luxurious experiences and non-gaming amenities, MGM is expanding its global footprint through integrated resorts. 1.”Free Cash Flow” is net cash flow provided by operating activities less capital expenditures. However, casino revenue dipped by 13% amidst competitive pressures and decreased table games performance, partially offset by gains in non-gaming revenues. These dynamics illustrate the evolving landscape of Las Vegas beyond traditional gambling-centric revenue. The regional operations of MGM recorded a steady 3% revenue increase, totaling $952 million, with slight improvements in casino revenue and EBITDAR.
Staff and management
Known as the luxury arm of Mandalay Bay, Delano Las Vegas features minimalist beach-meets-desert decor, trendy and spacious suite-style rooms, an absence of on-site gaming, and access to all of Mandalay Bay’s amenities. (1) The income tax impact includes current and deferred income tax expense based upon the nature of the adjustment and the jurisdiction in which it occurs. MGM repurchased $300 million in shares during Q3, totaling $1.3 billion for the year, effectively reducing shares outstanding by 40% since 2021. The Excalibur Hotel and Casino is a budget-friendly and kid-friendly resort that resembles a medieval castle, featuring a casino, Thunder From Down Under, the Tournament of Kings show, lots of kid-friendly shows, and a Fun Dungeon arcade.
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- Luxor is a South-Strip resort that resembles an ancient Egyptian pyramid, complete with a sphinx, an obelisk, and a light beam.
- Management believes that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company’s earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events.
- Easily accessible via a complimentary elevated tram, the hotel offers an affordable stay with a very kid-friendly atmosphere.
- It reduces ownership of real estate, such as through triple-net leases, allowing capital to be used for growth and shareholder returns.
- The remaining availability under the November 2023 stock repurchase plan was approximately $946 million as of September 30, 2024.
Nine months ended September 30, 2024 includes amounts related to MGM China of $41 million, global development of $7 million, and transaction costs of $7 million.Three months ended September 30, 2023 includes amounts related to MGM China of $9 million, global development of $15 million, and transaction costs of $1 million. Nine months ended September 30, 2023 includes amounts related to MGM China of $24 million, global development of $27 million, and transaction costs of $3 million. During the third quarter of 2024, the Company repurchased approximately 8 million shares of its common stock for an aggregate amount of $326 million, pursuant to its repurchase plan. The remaining availability under the November 2023 stock repurchase plan was approximately $946 million as of September 30, 2024. Luxor is a South-Strip resort that resembles an ancient Egyptian pyramid, complete with a sphinx, an obelisk, and a light beam.
Complete List Of All The MGM Resort Hotels In Las Vegas
“MGM Resorts is well positioned for long-term growth driven by the positive inflection to come in our digital investments alongside the enviable integrated resorts pipeline of development that we have in Japan as well as opportunities in New York and beyond.” MGM Resorts International exceeded expectations in international and digital ventures, while facing challenges in Las Vegas casino revenue. This quarter, MGM China’s revenues soared by 14% to $929 million due to relaxed post-COVID restrictions. Benefiting from a recovering tourism sector, it achieved a 5% growth in adjusted property EBITDAR — a measure indicating earnings before interest, taxes, depreciation, amortization, and rent costs. Investors are encouraged to watch MGM’s movements in the digital market as it capitalizes on new ventures.
Cautious Outlook on MGM Resorts Amid Mixed Regional Performance and Macau Challenges
Easily accessible via a complimentary elevated tram, the hotel offers an affordable stay with a very kid-friendly atmosphere. The Luxor is a unique choice for budget travelers and families who are fascinated by history and mystery. This modern and sleek resort that boasts a high-tech casino, a spa and salon, and a pool deck with cabanas and lounges. Perfect for travelers who enjoy hotels that prioritize sustainability, innovation, and public art. Situated on the same resort as Mandalay Bay, the Delano is an all-suite hotel that offers a rooftop pool and a lounge with panoramic views of the Strip.
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A reconciliation of Adjusted EPS to diluted earnings per share can be found under “Adjusted EPS” included in this release. 2.”Adjusted EBITDAR” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, rent expense related to triple-net operating leases and ground leases, and income from unconsolidated affiliates related to investments in real estate ventures. Shaun Kelley has given his Hold rating due to a combination of factors surrounding MGM Resorts’ performance. In the latest quarter, MGM’s results in Las Vegas were in line with Bank of America’s expectations but fell short of broader market expectations. While Las Vegas showed some positive trends that could improve future outcomes, such as solid October and December trends, the outlook remains cautious.Macau’s performance was notably weaker, with EBITDA missing expectations due to increased operating expenses to support non-gaming activities.
With ongoing projects in Japan and New York’s gaming markets, expansion continues to focus on digital and international developments. It reduces ownership of real estate, such as through triple-net leases, allowing capital to be used for growth and shareholder returns. Expansion plans target both international markets, like Japan, and online spaces, particularly through partnerships such as BetMGM. “During the quarter, we returned over $300 million to shareholders through share repurchases, bringing our year-to-date total to approximately $1.3 billion,” said Jonathan Halkyard, CFO and Treasurer of MGM Resorts International. “Since 2021, we have consistently demonstrated our commitment to returning cash to shareholders, reducing overall shares outstanding by 40%. Our balance sheet, characterized by low net debt and significant liquidity, positions us exceptionally well for strategic investments and sustained growth.” “We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China. In Las Vegas, we drove sequential improvement throughout the quarter and many key metrics are demonstrating strength including growth in ADR and occupancy,” said Bill Hornbuckle, CEO and President of MGM Resorts International.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. This is a classy choice for travelers who prefer MGM Resort a refined and serene atmosphere with no presence of a casino (the casino is technically at Mandalay Bay). A Southeast Asian tropical-themed resort at the southern end of the Strip that features a beach, a shark reef aquarium, and a wave pool.
- In addition, Free Cash Flow may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly titled non-GAAP measures of other companies.
- The company operates iconic properties such as Bellagio and MGM Grand on the Las Vegas Strip.
- While Las Vegas showed some positive trends that could improve future outcomes, such as solid October and December trends, the outlook remains cautious.Macau’s performance was notably weaker, with EBITDA missing expectations due to increased operating expenses to support non-gaming activities.
- 1.”Free Cash Flow” is net cash flow provided by operating activities less capital expenditures.
- A reconciliation of Adjusted EPS to diluted earnings per share can be found under “Adjusted EPS” included in this release.
- Vdara is an all-suite, non-gaming, and smoke-free hotel that offers a tranquil retreat with a spa, a pool, and a bar.
- Perfect for travelers who enjoy hotels that prioritize sustainability, innovation, and public art.
MGM Resorts: Mixed Q3 Earnings Reveal
- With ongoing projects in Japan and New York’s gaming markets, expansion continues to focus on digital and international developments.
- Also, management believes certain excluded items, and items further discussed in footnote 2 above, may not relate specifically to current operating trends or be indicative of future results.
- BetMGM’s growth is part of its broader digital strategy underscored by recent global partnerships and acquisitions.
- The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes, real estate triple-net lease and ground lease payments, and debt principal repayments, which are not reflected in Adjusted EBITDAR.
- Shaun Kelley has given his Hold rating due to a combination of factors surrounding MGM Resorts’ performance.
- A reconciliation of GAAP net cash provided by operating activities to Free Cash Flow is included in the financial schedules in this release.
- Expansion plans target both international markets, like Japan, and online spaces, particularly through partnerships such as BetMGM.
Excalibur is a family-friendly choice for travelers who are looking for adventure and fantasy. A budget-friendly hotel resort that recreates the skyline and landmarks of New York City, such as the Statue of Liberty, the Brooklyn Bridge, and the Empire State Building. It’s also home to the Mad Apple Cirque du Soleil show, the Big Apple roller coaster, a pretty sizable arcade, a casino, and a dueling piano bar. Vdara is an all-suite, non-gaming, and smoke-free hotel that offers a tranquil retreat with a spa, a pool, and a bar. With a commitment to sustainability and LEED Gold certification, it provides a clean, modern, and sophisticated atmosphere for guests seeking refuge from the typical Vegas hustle. A boutique hotel that occupies the top floors of the Park MGM, offering stylish and cozy rooms, a library, and a restaurant by Daniel Humm.
NYSE: MGM
Adjusted EBITDAR information is a non-GAAP measure that is a valuation metric, should not be used as an operating metric, and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is widely used by analysts, lenders, financial institutions, and investors as a principal basis for the valuation of gaming companies. Management believes that while items excluded from Adjusted EBITDAR may be recurring in nature and should not be disregarded in evaluation of the Company’s earnings performance, it is useful to exclude such items when analyzing current results and trends. Also, management believes excluded items may not relate specifically to current trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company’s properties, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, management excludes rent expense related to triple-net operating leases and ground leases.
MGM RESORTS INTERNATIONAL AND MARRIOTT INTERNATIONAL SIGN AGREEMENT TO LAUNCH W LAS VEGAS
Although regional and online segments performed above expectations, they were not enough to offset the challenges faced in Las Vegas and Macau. The overall outlook for MGM includes a downgrade in 2025’s EBITDA projections due to anticipated lower margins and slower growth in key areas, leading to the decision to maintain a neutral Hold rating. (1) Represents the Company’s share of operating income (loss) excluding investments in real estate ventures, adjusted for the effect of certain basis differences.
Forward guidance suggests continued strategic buybacks supported by substantial liquidity and proactive risk management. Expansion in international markets and planned high-profile projects are poised to fortify MGM’s long-term standing. Digital ventures, highlighted by the performance of BetMGM, surged with a nearly 20% increase in revenue. BetMGM’s growth is part of its broader digital strategy underscored by recent global partnerships and acquisitions. MGM Resorts International is a powerhouse in the hospitality, gaming, and entertainment sectors. The company operates iconic properties such as Bellagio and MGM Grand on the Las Vegas Strip.
NoMad is a hip, trendy, and intimate choice for travelers who enjoy a European flair and a more boutique hotel vibe. As a condo-hotel, it stands out with fully equipped kitchens, balconies, and a serene, non-gaming, smoke-free environment. Guests enjoy the quiet ambiance, private pool access, and the convenience of being part of the MGM Resorts brand. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
