MGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies with a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The company? owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, Illinois and Macau.
MGM was no exception to the negative impact of the recession on the overall casino industry as consumers pulled back on entertainment spending and travel. MGM previously labeled 2010 as a transitional year in regards to its balance sheet and liquidity, in which the company placed a tighter focus on its new customer loyalty program, M life, to drive continued business.
MGM chairman and CEO Jim Murren said the company is encouraged by the 2011 business activity thus far, and that bookings are ahead of last year.
The company significantly improved its financial position by extending the maturity of its $3.5 billion credit facility to 2014 and raising an additional $3?billion of debt and equity capital during 2010. In addition, MGM Macau, which is 50% owned by the company, entered into a new $950 million senior secured credit facility in August?2010 and CityCenter Holdings LLC, which is also 50% owned by the company, recently extended the maturity of $500?million of its credit facility and raised $1.5?billion of senior secured first lien and second lien notes.
"We made significant improvements to our balance sheet during the year, raising capital and extending our debt maturities at MGM Resorts, MGM Macau and CityCenter, providing us with a strong liquidity profile," Dan D'Arrigo, MGM executive vice president and CFO stated in an earlier press release. "We remain focused on continuing to strengthen our balance sheet, growing our cash flows and positioning our resort portfolio for future growth."
For the fourth quarter 2010, the company reported a net loss of $(139.19 million) or $(0.29) per share from $(433.9! 2 millio n) or $(0.98) per share in the year-ago period. The latest quarter’s results include a reduction of $0.07 per share in the company’s income tax benefit as a result of providing reserves for certain state-level deferred tax assets. The last year’s results include impairment charges totaling $548 million or $0.73 per share related to the company’s undeveloped land holdings in Atlantic City.
The company reported quarterly revenues of $1.47 billion, an increase from $1.45 billion last year. The net revenues excluding reimbursed costs decreased 1% year-over-year.? The Casino revenues stood at $608.80 million, a decrease of 3% with slots revenue increasing 2% and table games revenue down 11%. The Rooms revenue decreased 5% to $309.74 million, excluding the impact of resort fees. The Las Vegas Strip occupancy was down to 84% from 86%, while average daily rate or ADR was flat with the year-ago period at $110. The revenue per available room or REVPAR was down 2%.
For the full year, the company reported net loss of $1.44 billion, again an increase from $1.29 billion in the previous year. On a per share basis, loss reduced to $3.19 as compared to $3.41 in the prior year mainly due to higher number of weighted average shares outstanding. The net revenues for the year were $6.02 billion, an increase from $5.98 billion last year.
MGM Resorts International stock is currently trading at $12.96. The stock is down 0.92% from its previous close. MGM Resorts International stock touched the high of $12.99 and lowest price in today's session is $12.84.
The company stock has traded in the range of $8.92 and $16.94 during the past 52 weeks. The company's market cap is $6.33 billion.
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