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In preparation for MGM's 2Q earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary

YOUTUBE FROM 1Q CONFERENCE CALL

LAS VEGAS

  • "It is clear that the underlying trends remain positive."
  •  "We expect convention mix to increase YoY during 2Q [at least +1%], and most notably our convention pace is up significantly in 2013 and 2014. Based on our current booking trends, we expect a mid single digit RevPAR growth in the second quarter."
  • "We expect convention mix to be flat to slightly up year-on-year this year."
  • "We continue to believe that RevPAR growth for the year will be at least mid-single digit with potential upside coming from the in the year, for the year convention bookings and retail segment strength."
  • "The 2012 forecast for the entire company, including ARIA, we expect to exceed 2007 convention room nights [similar to 2011]."
  • "Our MGM Grand room remodel program continues to progress nicely with roughly 2,300 rooms completed and that project is on budget and on time to be completed by September of this year."
  • "Looking out for the next two quarters, room bookings [at Aria] are significantly outpacing last year."
  • "We expect occupancy in the second quarter to be the highest ever for ARIA driven by continued growth in convention business as our world-class convention space continues to gain traction in the marketplace. Convention business is also robust for 2013."
  • [2012 Revpar growth] "It's a combination of both, slightly more occupancy."
  • "We are not anticipating adding any FTE's to any material nature at all for the entire year."
  • [CityCenter margin] "You can expect the margin to be about 25%."

MACAU

  • "Our expansion project on our Level II is underway, and upon completion, we'll have 40 gaming tables which are available from our existing table inventory of 427 units."
  • [Cotai financing]  "We'll look to probably do a $2 billion to $2.5 billion financing package at the MGM China level."
  • ["Normal hold"] "We're seeing that the market is starting to stabilize to the – closer towards that 3%."
  • [New junkets] "We'd like to think that we might be able to accommodate one or maybe two going forward in the next two quarters."
  • "The peninsula is still really strong and most importantly, it yields strong as well."

OTHER

  • 2Q Guidance:
    • Stock comp: $9-10MM
    • Depreciation exp: $230-235MM
    • Interest exp: $275-285MM ($6MM MGM China, $23MM in non-cash amortization).
    • Effective tax rate: 3%