Mgm Resorts International · NYSE:MGM
Mgm Resorts International — Q2 2020 Earnings Presentation
43 slides from Mgm Resorts International's earnings presentation, Jul 30, 2020
Slide 1: Second Quarter 2020 Earnings
MGM RESORTS INTERNATIONAL SECOND QUARTER 2020 EARNINGS JULY 30, 2020 MGM RESORTS INTERNATIONAL
Slide 2: Forward-Looking Statements
F O R WA R D - L O O K I N G S T A T E M E N T S Statements in this presentation that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's
Slide 3: Table of Contents
• 2Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 2Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 3
Slide 4: Key 2Q 2020 Takeaways
KEY 2Q 2020 TAKEAWAYS U.S. property reopening and recovery • Health & safety remains our top priority; MGM Resorts continues to work closely with regulators and other stakeholders to reopen and operate properties • Results since opening have been better than expected, with significant domestic margi
Slide 5: Health & Safety Is Our Top Priority
HEALTH & SAFETY IS OUR TOP PRIORITY MGM Resorts’ “Seven-Point Safety Plan” puts our guests and employees at the center of all we do. It is a comprehensive, multi-layered approach resulting from months of consultations and guidance from public health experts SCREENING, MANDATORY MASKS HANDWASHING AND
Slide 6: Health & Safety Is Our Top Priority
HEALTH & SAFETY IS OUR TOP PRIORITY Social Distancing Indicators Plexiglass at Gaming Tables Throughout Resorts Sanitized Room Stickers on Guest Room Doors Temperature Testing Enhanced Sanitization Measures Hand Washing Stations on the Casino Floors MGM RESORTS INTERNATIONAL 6
Slide 7: Our Liquidity Position Remains Strong
OUR LIQUIDITY POSITION REMAINS STRONG As of June 30, 2020, the Company’s domestic operations had $4.8 billion of liquidity Domestic monthly cash outflows1 were slightly better than our targeted $270 million during April and May when our domestic properties were mostly closed. In June, we significant
Slide 8: Solid Debt Profile
SOLID DEBT PROFILE As of June 30, 2020, the Company’s domestic operations had $5.3 billion of debt, with no domestic maturities until 2022 MGM RESORTS (EXCLUDING MGM CHINA AND MGP) – DEBT MATURITY PROFILE CONSOLIDATED DEBT OVERVIEW $ in millions ($ in millions) Debt Revolving Credit Facility Outstan
Slide 9: We Began Reopening U.S. Properties in 2Q 2020
WE BEGAN REOPENING U.S. PROPERTIES IN 2Q 2020 U.S. REOPENING DATES1 % of • Health and safety remained top priority as we worked to execute a LAS VEGAS Date sustainable reopening process 2Q Open Bellagio 6/4/20 30% MGM Grand 6/4/20 30% • Better-than-expected 2Q 2020 domestic results driven by: New Yo
Slide 10: Demonstrating Operating Model Strength
DEMONSTRATING OPERATING MODEL STRENGTH MGM 2020 savings include initiatives launched at the end of 2019 that began yielding tangible results prior to the COVID-19 crisis Since the beginning of the COVID-19 crisis, the Company has fundamentally re-evaluated how it operates, with a focus on permanentl
Slide 11: Las Vegas: Better Than Expected 2Q 2020 Results
LAS VEGAS: BETTER THAN EXPECTED 2Q 2020 RESULTS LAS VEGAS STRIP YEAR-OVER-YEAR OPERATING PERFORMANCE FOR REOPENED PROPERTIES DURING THE PERIOD THEY WERE OPERATING IN 2Q 2020 Net Adjusted Property Adjusted Property Revenues EBITDAR EBITDAR Margin -50% -44% Approx. +450 bps 2Q 2019 2Q 2020 2Q 2019 2Q
Slide 12: Strong Regional Margins Since Reopening
STRONG REGIONAL MARGINS SINCE REOPENING Our regional operations include destinations that rely more on air travel and lodgers U.S. REGIONAL YEAR-OVER-YEAR OPERATING PERFORMANCE FOR REOPENED PROPERTIES DURING THE PERIOD THEY WERE OPERATING IN 2Q 2020 Net Adjusted Property Adjusted Property Revenues E
Slide 13: Macau Update
MACAU UPDATE APRIL 28 MAY - JUNE JULY 6 JULY 15 Hong Kong implements Macau and Zhuhai authorities Macau residents exempted Visitors crossing borders 14-day quarantine for begin easing the 14-day from quarantine when between Macau and arrivals from China (incl. quarantine for non-resident entering Zh
Slide 14: Table of Contents
• 2Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 2Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 14
Slide 15: BetMGM: Our Largest U.S. Growth Opportunity
BETMGM: OUR LARGEST U.S. GROWTH OPPORTUNITY • MGM Resorts and GVC Holdings collectively announced an additional $250 million commitment for BetMGM1 to capitalize on the rapidly growing U.S. sports betting and iGaming markets • Leading iGaming brand in New Jersey with ~19% market share2 • On track to
Slide 16: Stay-at-Home Orders Drove iGaming Growth, BetMGM Gaining Share
STAY-AT-HOME ORDERS HAVE RESULTED IN SIGNIFICANT IGAMING GROWTH, WITH BETMGM GAINING SHARE BETMGM NJ GROSS GAMING REVENUES (GGR) NJ IGAMING MARKET SHARE1 BetMGM June GGR in NJ up 32% vs. January, BetMGM has the leading market share in NJ iGaming1 with iGaming +66%, more than offsetting Sports declin
Slide 17: Key Pillars Position BetMGM for Success
KEY PILLARS POSITION BETMGM FOR SUCCESS BetMGM’s four key strategic pillars position it to become an industry leader with an efficient financial model KEY STRATEGIC PILLARS RECENT SUCCESSES • Access to 19 markets secured • Prime MGM Resorts brick & mortar assets in key states • Operational in 7 mark
Slide 18: Strategic Market Access Enables Day 1 Launch as More States Go Live
STRATEGIC MARKET ACCESS ENABLES DAY 1 LAUNCH AS MORE STATES GO LIVE To date, BetMGM has secured market access in 19 states1 and is live in seven states, with the expectation of being live in 11 states by year end 2020 ME WA VT Live States Retail Betting Online Betting Online Casino Online Poker NH
Slide 19: M life Integration into BetMGM Platform
M LIFE INTEGRATION INTO BETMGM PLATFORM BetMGM customers now receive an M life number, earn tier credits, and see their status within the BetMGM app Jane Doe Tier Status and M life Number Active Advertising Letting Users Now Appear within App Know They Earn Tier Credits MGM RESORTS INTERNATIONAL 19
Slide 20: Table of Contents
• 2Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 2Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 20
Slide 21: 2Q 2020 Financial Highlights
2Q 2020 FINANCIAL HIGHLIGHTS $ in U.S. millions, except per share information 2Q19 2Q20 $ Change % Change Consolidated Net Revenue $3,223 $290 ($2,933) (91%) Las Vegas Strip Resorts $1,466 $151 ($1,316) (90%) Regional Operations $911 $89 ($822) (90%) MGM China $706 $33 ($673) (95%) Net Income (Loss)
Slide 22: Financial Considerations
FINANCIAL CONSIDERATIONS 2Q 2020 consolidated income statement • $19.9 million of restructuring charges related the Company’s reorganization • $49.0 million related to the October 1 litigation settlement1 Health and safety / COVID-19 related • Domestic operating expenses: ➢ 2Q 2020: $10 million2 pri
Slide 23: Triple Net Operating and Ground Leases
TRIPLE NET OPERATING AND GROUND LEASES • In 2Q 2020, the Company recognized its first full quarter since the closing of both the Bellagio BREIT venture and MGP BREIT venture (Mandalay Bay and MGM Grand Las Vegas) • While MGP is consolidated within the Company’s financial statements, the BREIT ventur
Slide 24: 2Q 2020 – Las Vegas Strip
2Q 2020 – LAS VEGAS STRIP Net Revenues Adjusted Property EBITDAR ($ in U.S. millions) ($ in U.S. millions) Actual Hold Adjusted Actual Hold Adjusted $1,466 $1,481 $418 $431 2Q20 2Q20 $151 $142 2Q19 2Q19 2Q19 2Q20 2Q19 2Q20 ($104) ($112) • Casino revenue decreased 80% compared to the prior year quart
Slide 25: 2Q 2020 – Regional
2Q 2020 – REGIONAL ($ in U.S. millions) Net Revenue Adjusted Property EBITDAR $910 $261 $89 2Q20 2Q19 2Q20 2Q19 ($112) • Casino revenue decreased 88% compared to the prior year quarter ➢ Table games drop of $58 million compared to $1.0 billion in 2Q 2019 ➢ Table games win % of 21.9% compared to 19.9
Slide 26: 2Q 2020 – CityCenter
2Q 2020 – CITYCENTER ($ in U.S. millions) 1 . S T R U C T U R E T O D A Y ( 7 3 % O WN E R S H I P O F O P ) 3. MGM RESORTS LONG-TERM STRATEGY Net Revenue Adjusted Property EBITDA $329 $106 $3 2Q20 2Q19 2Q20 2Q19 ($37) • CityCenter was closed in the second quarter of 2020 • Key Balance Sheet Items (
Slide 27: 2Q 2020 – MGM China
2Q 2020 – MGM CHINA Net Revenues Adjusted Property EBITDAR ($ in U.S. millions) ($ in U.S. millions) Actual Hold Adjusted Actual Hold Adjusted 1 . S T R U C T U R E T O D A Y ( 7 3 % O WN E R S H I P O F O P ) 3. MGM RESORTS LONG-TERM STRATEGY $183 $730 $173 $706 2Q20 2Q20 2Q19 2Q19 $33 $32 ($116) (
Slide 28: Supplemental
• MGM CHINA PROPERTY DATA SUPPLEMENTAL • FOCUSED ON WHAT MATTERS • DIGITAL INNOVATIONS 28
Slide 29: MGM China Property Data
MGM CHINA PROPERTY DATA MGM RESORTS INTERNATIONAL 29
Slide 30: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Six Months Ended June 30 June 30 2020 2019 2020 2019 HK$'000 HK
Slide 31: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Six Months Ended June 30 June 30 2020 2019 2020 2019 HK$'000 HK
Slide 32: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Six Months Ended June 30 June 30 2020 2019 2020 2019 HK$'000 HK
Slide 33: Social Impact and Sustainability: Focused on What Matters
SOCIAL IMPACT AND SUSTAINABILITY: FOCUSED ON WHAT MATTERS MGM RESORTS INTERNATIONAL 33
Slide 34: Focused on What Matters Platform
FOCUSED ON WHAT MATTERS PLATFORM The MGM Resorts Social Impact & Sustainability platform Focused on What Matters: Embracing Humanity & Protecting the Planet articulates our purpose and establishes measurable goals that serve as a roadmap to making an enduring impact for local communities and our pla
Slide 35: Core Beliefs
CORE BELIEFS We know the importance of As a member of the We uphold our commitment to We believe that a greener respecting each other’s communities in which we the communities that have business is a better business differences. We endeavor to operate, we understand our welcomed us, by giving and en
Slide 36: 2025 Goals
2025 GOALS FOSTERING DIVERSITY INVESTING IN CARING FOR PROTECTING & INCLUSION COMMUNITY ONE ANOTHER THE PLANET Four goals announced 2019 Two goals announced 2019 Four goals announced 2019 Four goals announced 2018 Expand our support of nonprofit Ensure all employees have equal Surpass 1 million cumu
Slide 37: Progress Towards Achieving Our 2025 Goals
Progress Towards Achieving Our 2025 Goals U.S. data unless indicated FOSTERING DIVERSITY & INCLUSION 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Women in workforce (U.S. only 2011 - 2017, global 2018 - 2019), % Data not disclosed 2007 - 2010. 50.4% 50.3% 50.4% 50.6% 50.6% 51.1%
Slide 38: COVID-19 Response & Community Support
COVID-19 RESPONSE & COMMUNITY SUPPORT Beyond COVID-related donations in Las Vegas, across the U.S. and in Macau, of food, personal protective equipment and other cash and in-kind giving valued at over $3.5 million, MGM Resorts provided community support in the following ways*: Employee Emergency Gra
Slide 39: Recent Awards & Current Certifications
RECENT AWARDS & CURRENT CERTIFICATIONS FOSTERING DIVERSITY & INCLUSION PROTECTING THE PLANET • DiversityInc Top Regional Companies (ranked #2) Leadership in Energy & Environmental Design (LEED) • DiversityInc Top Regional Company for Supplier Diversity • MGM Springfield: LEED Platinum (Four Certific
Slide 40: Additional Resources at mgmresorts.com/focused
ADDITIONAL RESOURCES AT MGMRESORTS.COM/FOCUSED 2019 Social Impact & Sustainability Report Social Impact & Sustainability Goals & Metrics MGM RESORTS INTERNATIONAL 40
Slide 41: Digital Innovations
DIGITAL INNOVATIONS MGM RESORTS INTERNATIONAL 41
Slide 42: Digital Guest Experience: Hotel
DIGITAL GUEST EXPERIENCE: HOTEL MGM’S RESORTS ARE THE FIRST DESTINATIONS ON THE LAS VEGAS STRIP TO OFFER FULLY DIGITAL AND CONTACTLESS CHECK IN Step 1: Step 2: Guests can check in from their Guests can use their mobile device mobile device before setting as a digital key allowing 100% foot in the lo
Slide 43: Digital Guest Experience: F&B
DIGITAL GUEST EXPERIENCE: F&B VIRTUAL WAITLIST VIRTUAL MENU • Guests can add themselves to a virtual • Digital menus allow guests to view menus waitlist and receive a text message when on their personal mobile device simply by their table is ready at over ~81 locations scanning a QR code at over ~87
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