MGM Resorts International releases its 2022 financial reports

(PRESS RELEASE) -- MGM Resorts International reported its financial results earlier this week for the quarter and year ended 31 December 2022.

"We achieved our fifth consecutive quarter of record-breaking Las Vegas Strip Resorts Adjusted Property EBITDAR in the fourth quarter," said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts. "What we accomplished in 2022 is nothing short of remarkable, and is a testament to our strategic plan, scale, brand strength, talented team, loyalty program, and the diverse geographies and channels in which we operate. We believe that there is strong momentum in our business and our 2023 outlook remains bright, driven by a robust events calendar domestically, MGM China's rapid year-to-date return to profitability and BetMGM's ongoing improvement in 2023."

"We achieved exceptional results in the fourth quarter and remain optimistic in our outlook for this year. We are also focused on free cash flow and believe our company presents a compelling yield, especially when taking into account the value in our share price for excess cash, our ownership value of MGM China and BetMGM," said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts. "Our share buyback program continues to return capital to shareholders as we have already repurchased 4 million shares for $164 million year-to-date, adding to the 76 million shares we repurchased in 2022 and totaling approximately $4.7 billion since 2021. Beyond this, our Board of Directors authorized an additional $2 billion for share buybacks."

Fourth Quarter 2022 Financial Highlights:

Consolidated Results:

• Consolidated net revenues of $3.6 billion, an increase of 18% compared to the prior year quarter. The current quarter benefited from the inclusion of the operating results of The Cosmopolitan of Las Vegas ("The Cosmopolitan"), which was acquired in May 2022, partially offset by the disposition of The Mirage in December 2022. Additionally, results improved over the prior year quarter due to an increase in business volume and travel activity primarily at the Las Vegas Strip Resorts and Regional Operations


• Operating loss was $2 million compared to operating income of $369 million in the prior year quarter due primarily to a $1.2 billion increase in noncash amortization expense relating to the MGM Grand Paradise gaming subconcession and an increase of $338 million of rent expense recorded within general & administrative expense related to the VICI and The Cosmopolitan leases, which commenced in April 2022 and May 2022, respectively, partially offset by a $1.1 billion gain on the disposition of The Mirage in the current quarter


• Net income attributable to MGM Resorts of $284 million, which was impacted by the items affecting operating loss discussed above, compared to $131 million in the prior year quarter


• Diluted earnings per share of $0.69 in the current quarter compared to $0.23 in the prior year quarter


• Adjusted diluted earnings per share ("Adjusted EPS") was a loss of $1.53 in the current quarter compared to Adjusted EPS of $0.12 in the prior year quarter


• Consolidated Adjusted EBITDAR of $957 million in the current quarter

Las Vegas Strip Resorts:

• Net revenues of $2.3 billion in the current quarter compared to $1.8 billion in the prior year quarter, an increase of 27%. The current quarter benefited from the inclusion of The Cosmopolitan and an increase in business volume and travel activity compared to the prior year quarter, partially offset by the disposition of The Mirage

Same-store net revenues (adjusted for acquisitions and dispositions) of $1.8 billion in the current quarter compared to $1.7 billion in the prior year quarter, an increase of 11%

• Adjusted Property EBITDAR of $877 million in the current quarter compared to $699 million in the prior year quarter, an increase of 26%


• Same-Store Adjusted Property EBITDAR of $691 million in the current quarter compared to $651 million in the prior year quarter, an increase of 6%


• Adjusted Property EBITDAR margin of 38.2% in the current quarter compared to 38.7% in the prior year quarter, a decrease of 50 basis points due primarily to an increase in contribution from lower-margin non-gaming outlets and venues

Regional Operations:

• Net revenues of $991 million in the current quarter compared to $900 million in the prior year quarter, an increase of 10% due to an increase in business volume


• Adjusted Property EBITDAR of $320 million in the current quarter compared to $309 million in the prior year quarter, an increase of 3%


• Adjusted Property EBITDAR margin of 32.2% in the current quarter compared to 34.4% in the prior year quarter, a decrease of 215 basis points compared to the prior year quarter due to an increase in contribution from lower-margin non-gaming outlets and venues and an increase in general and administrative expenses as the prior year quarter included a benefit of $16 million for insurance recoveries related to Hurricane Zeta

MGM China:

• Net revenues of $175 million in the current quarter compared to $315 million in the prior year quarter, a decrease of 44%. The current quarter was negatively affected by a three-day COVID-19 related property closure at MGM Cotai and was more significantly impacted by travel and entry restrictions in Macau compared to the prior year quarter


• Adjusted Property EBITDAR loss of $55 million compared to Adjusted Property EBITDAR of $5 million in the prior year quarter

Full Year 2022 Financial Highlights:

Consolidated Results:

• Consolidated net revenues of $13.1 billion in the current year compared to $9.7 billion in the prior year, an increase of 36%. The current year includes the operating results of The Cosmopolitan upon its acquisition in May 2022, a full year of Aria and Vdara (collectively "Aria") due to its acquisition in September 2021, and the results of The Mirage until its disposition in December 2022


• Operating income was $1.4 billion compared to $2.3 billion in the prior year, due to a $2.5 billion increase in noncash amortization expense of the MGM Grand Paradise gaming subconcession and an increase of $1.1 billion of rent expense related to triple-net operating leases and ground leases due primarily to The Cosmopolitan lease, the Aria lease, and VICI lease, partially offset by the $2.3 billion gain on REIT transactions, net and the $1.1 billion gain on the disposition of The Mirage in the current year, and also due to the prior year results including the $1.6 billion gain on consolidation of CityCenter, net


• Net income attributable to MGM Resorts of $1.5 billion in 2022, which was impacted by the items affecting operating income discussed above, compared to $1.3 billion in the prior year


• Diluted earnings per share of $3.49 in 2022 compared to $2.41 in 2021


• Adjusted EPS loss of $2.74 in 2022, compared to Adjusted EPS loss of $0.67 in 2021


• Consolidated Adjusted EBITDAR of $3.5 billion in 2022.

Las Vegas Strip Resorts:

• Net revenues of $8.4 billion in the current year compared to $4.7 billion in the prior year, an increase of 77%


• Same-store net revenues (adjusted for acquisitions and dispositions) of $5.6 billion in the current year compared to $4.0 billion in the prior year, an increase of 42%


• Adjusted Property EBITDAR of $3.1 billion in the current year compared to $1.7 billion in the prior year, an increase of 81%


• Same-Store Adjusted Property EBITDAR of $2.1 billion in the current year compared to $1.5 billion in the prior year, an increase of 42%


• Adjusted Property EBITDAR margin of 37.4% in the current year compared to 36.7% in the prior year, an increase of 72 basis points

Regional Operations:

• Net revenues of $3.8 billion in the current year compared to $3.4 billion in the prior year, an increase of 12%


• Adjusted Property EBITDAR of $1.3 billion in the current year compared to $1.2 billion in the prior year, an increase of 6%


• Adjusted Property EBITDAR margin of 33.9% in the current year compared to 35.9% in the prior year, a decrease of 197 basis points due primarily to an increase in contribution from lower-margin non-gaming outlets and venues

MGM China:

• Net revenues of $674 million in the current year compared to $1.2 billion in the prior year, a decrease of 44%


• MGM China Adjusted Property EBITDAR loss of $203 million in the current year compared to Adjusted Property EBITDAR of $25 million in the prior year

MGM Resorts Share Repurchases

• During the fourth quarter of 2022, the Company repurchased approximately 11 million shares of its common stock at an average price of $32.96 per share for an aggregate amount of $352 million, pursuant to the March 2022 repurchase plan. The remaining availability under the March 2022 repurchase plan was $475 million as of December 31, 2022. All shares repurchased under the Company's program have been retired


• On 8 February 2023, the Company announced that its Board of Directors had authorized a new $2.0 billion share repurchase plan. Furthermore, the Company announced that our Board of Directors had determined to suspend our ongoing regular dividends in order to focus on our preferred method of returning value to shareholders through our share repurchase plan. To the extent the Company determines to reinstate the dividend in the future, the amount, declaration and payment of any future dividends will be subject to the discretion of the Board of Directors who will evaluate the Company's dividend policy from time to time based on factors it deems relevant, and contractual limitations