MGM Resorts Reports

Fourth Quarter Consolidated Results
Diluted loss per share for the fourth quarter of 2014 was $­­­0.70 compared to diluted loss per share of $0.12 in the prior year fourth quarter.  The current year fourth quarter income tax provision was unfavorably impacted by a non-cash charge due to an increase in valuation allowance recorded against the Company's foreign tax credit deferred tax asset. The Company's income tax provision per diluted share was $0.67 for the quarter.  Absent the impact of the valuation allowance, a small tax benefit would have been recorded in the quarter.
The following table lists certain other items that affect the comparability of the current and prior year quarterly results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):

Three months ended December 31,	2014	2013
Preopening and start-up expenses	$    (0.02)	$
Income (loss) from unconsolidated affiliates:
Harmon-related property transactions, net	(0.02)
Non-operating items from unconsolidated affiliates:
CityCenter loss on retirement of long-term debt		(0.09)
Silver Legacy gain on retirement of long-term debt		0.02

Wholly Owned Domestic Resorts
Casino revenue related to wholly owned domestic resorts increased 5% compared to the prior year quarter due to increases in both table games volume and hold percentage. Table games hold percentage in the fourth quarter of 2014 was 21.8% compared to 20.2% in the prior year quarter. Slots revenue increased 5% compared to the prior year quarter, due to slightly higher win along with a reduction in the Company's accrual for slot points based on a change in estimated point redemption.
Rooms revenue increased 6% with Las Vegas Strip REVPAR⁽²⁾ up 7%.  The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

Three months ended December 31,	2014	2013
Occupancy %	88%	85%
Average Daily Rate (ADR)	$    138	$   133
Revenue per Available Room (REVPAR)	$    121	$   114

Food and beverage revenue increased 6% as a result of increased convention and banquet business and the opening of several new outlets. Operating income for the Company's wholly owned domestic resorts increased 10% for the fourth quarter of 2014 compared to the prior year quarter.
MGM China
On February 17, 2015, as part of its regular dividend policy, MGM China's Board of Directors announced it will recommend a final dividend for 2014 of $120 million to MGM China shareholders subject to approval at the MGM China 2015 annual shareholders meeting. If approved, MGM Resorts International will receive $61 million, its 51% share of this dividend. In addition, MGM China's Board of Directors announced a special dividend of $400 million, which will be paid to shareholders of record as of March 10, 2015 and distributed on or about March 19, 2015.  MGM Resorts International will receive $204 million, its 51% share of the special dividend. 
Key fourth quarter results for MGM China include the following:

• MGM China earned net revenue of $719 million, a 22% decrease compared to the prior year quarter;
• Main floor table games revenue increased 19% compared to the prior year quarter. Main floor table games volume decreased 4% and hold percentage was 27.2% in the current year quarter compared to 22.2% in the prior year quarter;
• VIP table games revenue decreased 39% due to lower VIP table games turnover of 32% compared to the prior year quarter, as well as hold percentage of 2.6% in the current year quarter compared to 2.8% in the prior year quarter;
• MGM China's Adjusted EBITDA was $185 million, a 22% decrease compared to the prior year quarter;
• MGM China's Adjusted EBITDA margin increased by 10 basis points compared to the prior year quarter to 25.8% as a result of an increase in main floor table games mix; and
• Operating income was $109 million compared to $162 million in the prior year quarter.

Income (Loss) from Unconsolidated Affiliates
The following table summarizes information related to the Company's share of income from unconsolidated affiliates:

Three months ended December 31,	2014		2013
	(In thousands)
CityCenter	$    (18,114)		$       12,037
Borgata	11,304		(196)
Other	4,683		4,069
	$    (2,127)		$       15,910

In September 2014, the Company was relicensed in the state of New Jersey.  As a result, the Company resumed accounting for its 50% interest in Borgata under the equity method and has adjusted its prior period financial statements retroactively as required by generally accepted accounting principles. 
Results for CityCenter Holdings, LLC ("CityCenter") for the fourth quarter of 2014 include the following (see schedules accompanying this release for further detail on CityCenter's fourth quarter results):

• Net revenue from resort operations decreased by 4% to $289 million compared to $301 million in the prior year quarter, due to lower table games hold and volume at Aria;
• Adjusted EBITDA from resort operations was $78 million, a decrease of 16% compared to the prior year quarter;
• Adjusted EBITDA at Aria decreased by 22% year over year driven primarily by a decrease in table games volume and hold;
• Aria's table games hold percentage was 21.5% compared to 26.0% in the prior year quarter;
• Aria's occupancy percentage was 91.1% and its ADR was $217, resulting in REVPAR of $198, a 9% increase compared to the prior year quarter;
• Vdara reported record fourth quarter EBITDA led by a 13% increase in REVPAR; and
• Crystals reported Adjusted EBITDA of $11 million, an increase of 2% from the prior year quarter.

CityCenter reported an operating loss of $58 million for the fourth quarter of 2014 compared to operating income of $26 million in the prior year quarter.  The lower fourth quarter result was due to decreased operating results at Aria as discussed above and a property transaction charge of $39 million.  The property transaction charge primarily relates to a settlement with an insurer participating in CityCenter's Owner Controlled Insurance Program in conjunction with the global settlement discussed below. In addition, the prior year quarter included $26 million of income related to property transactions, net, primarily related to a $33 million gain associated with the settlement of insurance claims for errors and omissions with respect to the original construction of CityCenter.
As previously announced, in December 2014, the Company and CityCenter entered into a settlement agreement with Perini Building Company, Inc. ("Perini"), general contractor for CityCenter, the remaining Perini subcontractors and relevant insurers to resolve all outstanding project lien claims and CityCenter's counterclaims relating to the Harmon Hotel and Spa. The settlement was subject to execution of a global settlement agreement among the parties described above, which was subsequently executed, and CityCenter's procurement of replacement general liability insurance covering construction of the CityCenter development (which was obtained in January 2015). The proceeds pursuant to such global settlement agreement, combined with certain prior Harmon-related insurance settlement proceeds, will result in a gain of approximately $160 million to be recorded by CityCenter during the first quarter of 2015.
Full Year 2014 Results
Consolidated net revenue for 2014 was $10.1 billion, a 3% increase over 2013, and Adjusted Property EBITDA increased 5% compared to the prior year to $2.5 billion. Net revenue from wholly owned domestic resorts was $6.3 billion, a 5% increase compared to the prior year.  Adjusted Property EBITDA from wholly owned domestic resorts increased 5% to $1.5 billion for 2014.
MGM China net revenue was $3.3 billion for 2014, a 1% decrease from 2013, and Adjusted EBITDA was a record $850 million compared to $814 million in the prior year. CityCenter reported net revenue from resort operations of a record $1.2 billion, a 3% increase compared to the prior year, and Adjusted EBITDA related to resort operations of $317 million compared to $316 million in the prior year.
Diluted loss per share attributable to the Company for 2014 was $0.31 compared to diluted loss per share of $0.35 in 2013. The following table lists items that affect the comparability of the current year and prior year annual results (approximate EPS impact shown, net of tax, per share; negative amounts represent charges to income):

Year ended December 31,	2014	2013
Preopening and start-up expenses	$      (0.05)	$   (0.02)
Property transactions, net	(0.05)	(0.17)
Income (loss) from unconsolidated affiliates:
Harmon-related property transactions, net	(0.02)
Non-operating items from unconsolidated affiliates:
CityCenter loss on retirement of long-term debt		(0.09)
Silver Legacy gain on retirement of long-term debt		0.02

The tax provision in 2014 increased $263 million compared to 2013 primarily as a result of an increase in valuation allowance recorded against the Company's foreign tax credit deferred tax asset in 2014 and realization of deferred tax assets in 2013 that were previously offset by valuation allowance, partially offset by tax expense recognized in 2013 as a result of re-measuring net deferred tax liabilities in Macau.
Financial Position
"As a result of a successful year and our continued focus on our balance sheet, we improved leverage and raised significant capital in 2014," said Dan D'Arrigo, Executive Vice President, CFO and Treasurer of MGM Resorts International. "We believe that our improved cash flows, the announced dividends from MGM China, $1.25 billion in capital raised in the fourth quarter, along with revolver availability provides us with adequate liquidity to fund our 2015 maturities and growth initiatives."
The Company's cash balance at December 31, 2014 was $2.3 billion, which included $546 million at MGM China.  At December 31, 2014, the Company had $2.7 billion of borrowings outstanding under its $3.9 billion senior secured credit facility and $553 million outstanding under the $2.0 billion MGM China credit facility.