Mgm Resorts International · NYSE:MGM
Mgm Resorts International — Q1 2020 Earnings Presentation
29 slides from Mgm Resorts International's earnings presentation, Apr 30, 2020
Slide 1: First Quarter 2020 Earnings
MGM RESORTS INTERNATIONAL FIRST QUARTER 2020 EARNINGS APRIL 30, 2020 MGM RESORTS I NTERNATIONAL
Slide 2: Forward-Looking Statements
F O R WA R D - L O O KI 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
• COVID-19 Update TABLE OF • 1Q 2020 Financial Results CONTENTS • Appendix MGM RESORTS I NTERNATIONAL 3
Slide 4: Key Takeaways
KEY TAKEAWAYS 1Q 2020 Results: • U.S. – Strong performance during January and February driven by healthy topline performance and MGM 2020 efficiency gains, followed by property closures in mid-March • Macau – Earlier timing of COVID-19 cases in the region had a greater impact on 1Q 2020 performance,
Slide 5: COVID-19 Support | U.S.
COVID-19 SUPPORT | U.S. People First The Company, our employees and our partners collectively raised $12.8 million $12.8 MILLION for the Employee Emergency Grant Fund to provide relief for employees and Raised for immediate families in need employee relief fund Food and Product Donations 500,000+ eq
Slide 6: COVID-19 Support | Macau
COVID-19 SUPPORT | MACAU Cash Donation to Hubei, China • Association of Parents of the People with Intellectual Disabilities of Macau USD $2.5 million • • Caritas Macau Concordia School for Special 2020 Donation Education • Federation of Trade Unions of Macau • Fuhong Society of Macau • General Unio
Slide 7: Caring for One Another
CARING FOR ONE ANOTHER MGM RESORTS I NTERNATIONAL 7
Slide 8: COVID-19 Situation Overview | U.S.
COVID-19 SITUATION OVERVIEW | U.S. MARCH 11 MARCH 13 MARCH 14 MARCH 15 MARCH 16 MARCH 17 The WHO declares MGM Northfield Empire City MGM Springfield, MGM Grand Detroit All Mississippi COVID-19 a global Park closes Casino closes and MGM National and Borgata close and Las Vegas pandemic Harbor close p
Slide 9: COVID-19 Situation Overview | Macau
COVID-19 SITUATION OVERVIEW | MACAU LATE JANUARY FEBRUARY 4 FEBRUARY 5-19 FEBRUARY 20 MARCH 6 MID MARCH China implements Hong Kong SAR Macau casinos MGM Macau and MGM Macau discharges Macau, Hong Kong and temporary suspension of government are closed for Cotai reopen, with social last patient, No ne
Slide 10: 1Q 2020 Monthly Trends
1Q 2020 MONTHLY TRENDS ($ in millions) January February March Total Las Vegas Strip Resorts Net Revenue $474 $462 $198 $1,134 Adjusted Property EBITDAR $149 $148 ($29) $268 Adjusted Property EBITDAR Margin 31% 32% NM 24% Regional Operations Net Revenue $294 $302 $130 $726 Adjusted Property EBITDAR $
Slide 11: Managing Our Cash Outflows
MANAGING OUR CASH OUTFLOWS DOMESTIC OPERATIONS: MGM RESORTS CASH OUTFLOW1,2 (EXCLUDING MGM CHINA AND MGP) • With our U.S. properties currently closed, excluding MGM China and MGP, the Company’s monthly net cash outflow is estimated to be approximately $270 million1 ($ in millions) Per month • Reduce
Slide 12: Our Liquidity Position Is Strong
OUR LIQUIDITY POSITION IS STRONG Excluding MGM China and MGP, the Company has $4.6 billion1 of liquidity, adjusted for our recent senior notes offering (implying well over 1 year of cushion during closure scenario) MGM Resorts MGM Resorts ($ in millions) (Ex. MGM China and MGP) MGM China MGP Consoli
Slide 13: Solid Debt Profile
SOLID DEBT PROFILE Excluding MGM China and MGP, the Company has approximately $6.2 billion1 of debt, adjusted for our recent senior notes offering, with no near term maturities MGM RESORTS (EXCLUDING MGM CHINA AND MGP) – DEBT MATURITY PROFILE CONSOLIDATED DEBT OVERVIEW1,2 $ in millions ($ in million
Slide 14: Focused on Reopening Strategy
FOCUSED ON REOPENING STRATEGY • We cannot predict the timing of our opening dates, and will reopen when it is prudent. Opening is also subject to government approval • We are working with government authorities and health experts in establishing the reopening criteria and methodologies • Once opened
Slide 15: Our Long-Term Strategic Objectives
OUR LONG-TERM STRATEGIC OBJECTIVES MAXIMIZE OPERATING DISCIPLINED CAPITAL FUTURE GROWTH REAL ESTATE STRATEGY EFFICIENCIES ALLOCATION OPPORTUNITIES Focus Areas: Focus Areas: Focus Areas: Focus Areas: Monetize real estate and MGM 2020 Phase I and other holdings at attractive Strengthen balance sheet J
Slide 16: Table of Contents
• COVID-19 Update TABLE OF • 1Q 2020 Financial Results CONTENTS • Appendix MGM RESORTS I NTERNATIONAL 16
Slide 17: 1Q 2020 Financial Highlights
1Q 2020 FINANCIAL HIGHLIGHTS $ in U.S. millions, except per share information 1Q19 1Q20 $ Change % Change Consolidated Net Revenue $3,177 $2,253 ($924) (29%) Las Vegas Strip Resorts $1,428 $1,134 ($294) (21%) Regional Operations $804 $726 ($78) (10%) MGM China $734 $272 ($462) (63%) Net Income (Loss
Slide 18: First Quarter 2020 – Las Vegas Strip
FIRST QUARTER 2020 – LAS VEGAS STRIP LAS VEGAS STRIP1 Actual YoY Change Hold Adjusted YoY Change Net Revenues $1.13 billion (21%) $1.14 billion (20%) Adjusted Property EBITDAR $ $268 million (34%) $273 million (33%) Adjusted Property EBITDAR Margin 23.6% (466 bps) 24.0% (450 bps) RevPAR2 $160 3% • R
Slide 19: First Quarter 2020 – Regional
FIRST QUARTER 2020 – REGIONAL REGIONAL YoY Change Net Revenues $726 million (10%) Adjusted Property EBITDAR $ $152 million (28%) Adjusted Property EBITDAR Margin 20.9% (544 bps) • Results were primarily impacted by year over year declines in March, which offset year over year net revenue and Adjuste
Slide 20: First Quarter 2020 – CityCenter
FIRST QUARTER 2020 – CITYCENTER CITYCENTER 1 . S T R UC T UR 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 50% owned by MGM Resorts YoY Change Net Revenues $265 million (23%) Adjusted EBITDA $ $79 million (31%) Adjusted EBITDA Margin 29.6% (367 bps) • RevPAR was $24
Slide 21: First Quarter 2020 – MGM China
FIRST QUARTER 2020 – MGM CHINA MGM CHINA 1 . S T R UC T UR 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 56% owned by MGM Resorts YoY Change Net Revenues $272 million (63%) Adjusted Property EBITDAR $ ($22 million) NM • VIP table games: 66% decrease in turnover year
Slide 22: Table of Contents
• COVID-19 Update TABLE OF • 1Q 2020 Financial Results CONTENTS • Appendix MGM RESORTS I NTERNATIONAL 22
Slide 23: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors. Three Months Ended March 31 2020 2019 HK$'000 HK$'000 (unaudited) (unaudited) Rev
Slide 24: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors. Three Months Ended March 31 2020 2019 HK$'000 HK$'000 MGM Macau (unaudited) (unau
Slide 25: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors. Three Months Ended March 31 2020 2019 HK$'000 HK$'000 MGM Cotai (unaudited) (unau
Slide 26: MGM Resorts Domestic Net Leverage
MGM RESORTS DOMESTIC NET LEVERAGE CONSOLIDATED DOMESTIC NET DOMESTIC NET ($ in millions) NET LEVERAGE LEVERAGE LEVERAGE ($ in millions) 3/31/2020 ADJUSTMENTS 3/31/2020 Total Cash1 $6,016 ($2,144) $3,873 LTM Adjusted EBITDAR related to: LV Strip 2 $1,472 $-- $1,472 Regional $910 -- 910 Management and
Slide 27: Noteworthy Changes to Financial Reporting
NOTEWORTHY CHANGES TO FINANCIAL REPORTING PRESENTATION OF EBITDAR UNDER “SUPPLEMENTAL DATA – ADJUSTED PROPERTY EBITDAR AND ADJUSTED EBITDAR” • As a result of the recent transactions, the Company has elected to transition to an Adjusted EBITDAR presentation beginning in 4Q19. Triple net operating lea
Slide 28: Noteworthy Changes to Financial Reporting
NOTEWORTHY CHANGES TO FINANCIAL REPORTING BELLAGIO TRANSACTION • Transaction closed on November 15, 2019 • MGM’s 5% equity stake recognized as an equity method investment • Income statement ➢ Lease payments recorded on a straight-line basis as rent expense ➢ Share of operating income from JV recogni
Slide 29: CARES Act
CARES ACT On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act provides opportunities for additional liquidity, loan guarantees, and other government programs to support companies affected by the COVID-19 pandemic and their em
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