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In preparation for MGM's F2Q 2013 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.


CITYCENTER

  • "CityCenter's overall leverage is just above 5 times. Tremendous progress in the improvement of the capital structure at that joint venture."

MGM COTAI OPENING

  • "Remains on schedule for opening in the first half of 2016."

MD/MA/TORONTO

  • "In Maryland, we have been preparing our RFP for Prince George's County, which we will submit by the end of next week." 
  • "In Massachusetts, we are honored by Mayor Sarno's confidence in selecting MGM to bring a world-class urban resort to Springfield. This is an important milestone in the process as the project now seeks City Council approval after which a referendum is possible as early as July, and then ultimately, we will compete at the state level for the Western Region license."
  • "In Toronto, we and our partner, Cadillac Fairview, believe in our vision for an integrated resort in Toronto and we continue to work towards that development opportunity."

STRIP TRENDS

  • "Visitation to Las Vegas remained strong and macro trends are improving here helping to drive the recovery."
  • "It appears to us that Las Vegas, the market hit hardest by the recession, is nicely recovering and that its performance will likely outstrip the existing regional markets for the foreseeable future."
  • "Our luxury properties continue to lead the way in the market, driven by increased convention room nights and the continued success of the high-end casino business."
  • "Organizational changes were made to streamline international and national marketing teams to better service our customers and drive profitability."

STRIP REVPAR

  • "Room revenues and ADRs increased by about 2% in the quarter. While occupancy was down slightly, occupied room nights increased by 1% at our Strip properties as the remodeled rooms at the MGM Grand are now on line."
  • "We are seeing strong returns on our room remodel investments as evidenced by Bellagio and MGM Grand where we were able to maintain high occupancy levels and drive increased room rates."
  • "We always knew the second quarter would be a little bit easier comp."

CONVENTION OUTLOOK

  •  "Looking forward at the second quarter, we expect a strong convention calendar, which will drive RevPAR to be up approximately 2% year over year."
  • "The convention business in Las Vegas this year will be okay. It won't be great citywide, but next year is a big year citywide. So, when you have the kind of citywides we're predicting in 2014, that will accrue to the benefit of, of course, Mandalay, but also to the properties that need Mandalay to have that business Luxor, Excalibur and also because of the LVCBA Circus Circus. So the cores this year are doing well, but I would expect next year with a better convention business citywide that they will do better."
  • "On the convention side, of course, our leisure properties with significant convention space mainly sold out in peak season have a much easier time at raising rates."

MGM CHINA DIVIDENDS

  • "MGM China also put in place a regular dividend distribution policy for up to 35% of its annual profits to be paid semi-annually. The board will also consider, going forward, special dividends from time to time."

CAPEX/CORP EXPENSE/INTEREST EXPENSE

  • "Our wholly-owned domestic CapEx guidance for the year remains at roughly $350 million, and that includes the amounts for this year of the recently announced projects at Monte Carlo and New York-New York.  We expect corporate expense to continue to be in the $40 million to $45 million range per quarter and our stock compensation and depreciation expense in the second quarter is estimated to be consistent with the first quarter. We estimate that our gross interest expense for the second quarter will be approximately $220 million, which includes about $7 million in interest at MGM China and $8 million in non-cash amortization expense."

ARIA

  • "We continue to see growth in the food and beverage with a very strong quarter in catering and banquets driven by growth in the convention segment and recent dining enhancements to the property such as Javier's Mexican restaurant."

VDARA

  • "Vdara's EBITDA continues to improve as occupancy grows and is now approximately 86%. We are also finalizing construction plans to convert the Silk Road restaurant space into approximately 5,000 square feet of additional meeting and convention space. And we expect this to drive both occupancy and rate with completion scheduled for the fourth quarter of this year."

MANDARIN

  • "We've actually seen in the last few months some pickup particularly in the remaining Mandarin inventory in terms of sales."

MGM CHINA MASS

  • "We're encouraged to see not only our premium area such as our supreme and platinum lounges continue to perform well but also our general main floor product produced record results."

LV SEAT CAPACITY

  • "The seat capacities and especially in the summer is going to be up a few percent, which is very positive for us. Anything looking beyond two to three months, it's really hard to look at since the airlines are constantly changing their programs."