MGM Resorts International [MGM] Filings

10-Q 1 mgm-20220630.htm 10-Q mgm-20220630

UNITED STATES

SECURITIES & EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-10362

MGM Resorts International

(Exact name of registrant as specified in its charter)


Delaware			88-0215232
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

3600 Las Vegas Boulevard South, Las Vegas, Nevada 89109

(Address of principal executive offices)

(702) 693-7120

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock (Par Value $0.01)	MGM	New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class						Outstanding at August 1, 2022
Common Stock, $0.01 par value						393,102,147 shares

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

FORM 10-Q

I N D E X


		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets at June 30, 2022 and December 31, 2021	1
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and June 30, 2021	2
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2022 and June 30, 2021	3
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and June 30, 2021	4
	Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2022 and June 30, 2021	5
	Condensed Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	48
Item 4.	Controls and Procedures	48
PART II.	OTHER INFORMATION	49
Item 1.	Legal Proceedings	49
Item 1A.	Risk Factors	49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 6.	Exhibits	50
SIGNATURES		51

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)


	June 30, 2022		December 31, 2021
ASSETS
Current assets
Cash and cash equivalents	$	5,784,173	$	4,703,059
Restricted cash	—		500,000
Accounts receivable, net	668,919		583,915
Inventories	115,100		96,374
Income tax receivable	232,621		273,862
Prepaid expenses and other	337,701		258,972
Assets held for sale	2,028,267		—
Total current assets	9,166,781		6,416,182

Property and equipment, net	5,027,668		14,435,493

Other assets
Investments in and advances to unconsolidated affiliates	155,600		967,044
Goodwill	4,705,842		3,480,997
Other intangible assets, net	3,598,127		3,616,385
Operating lease right-of-use assets, net	24,773,652		11,492,805
Other long-term assets, net	1,004,468		490,210
Total other assets	34,237,689		20,047,441
	$	48,432,138	$	40,899,116
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	359,258	$	263,097
Construction payable	21,029		23,099
Current portion of long-term debt	1,250,000		1,000,000
Accrued interest on long-term debt	82,214		172,624
Other accrued liabilities	1,874,659		1,983,444
Liabilities related to assets held for sale	1,957,420		—
Total current liabilities	5,544,580		3,442,264

Deferred income taxes, net	2,983,457		2,439,364
Long-term debt, net	7,107,155		11,770,797
Operating lease liabilities	25,135,947		11,802,464
Other long-term obligations	320,407		319,914
Commitments and contingencies (Note 10)
Redeemable noncontrolling interests	142,909		147,547
Stockholders’ equity
Common stock, $0.01 par value: authorized 1,000,000,000 shares, issued and outstanding 398,418,158 and 453,803,759 shares	3,984		4,538
Capital in excess of par value	—		1,750,135
Retained earnings	5,746,532		4,340,588
Accumulated other comprehensive loss	(16,942)		(24,616)
Total MGM Resorts International stockholders’ equity	5,733,574		6,070,645
Noncontrolling interests	1,464,109		4,906,121
Total stockholders’ equity	7,197,683		10,976,766
	$	48,432,138	$	40,899,116

The accompanying notes are an integral part of these consolidated financial statements.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues
Casino	$	1,357,134	$	1,336,124	$	2,778,044	$	2,434,757
Rooms	774,732		365,028		1,331,805		563,447
Food and beverage	677,756		302,666		1,170,610		460,078
Entertainment, retail and other	445,342		189,011		816,908		324,233
Reimbursed costs	9,924		75,133		21,830		133,194
	3,264,888		2,267,962		6,119,197		3,915,709
Expenses
Casino	622,166		616,903		1,296,531		1,168,808
Rooms	232,429		137,287		428,542		241,500
Food and beverage	480,121		214,159		848,783		349,386
Entertainment, retail and other	265,184		102,170		483,933		180,551
Reimbursed costs	9,924		75,133		21,830		133,194
General and administrative	1,028,765		590,209		1,805,602		1,136,616
Corporate expense	119,610		96,870		230,851		174,907
Preopening and start-up expenses	542		90		976		95
Property transactions, net	(19,395)		(28,906)		35,343		(2,835)
Gain on REIT transactions, net	(2,277,747)		—		(2,277,747)		—
Depreciation and amortization	366,255		283,625		654,893		574,176
	827,854		2,087,540		3,529,537		3,956,398
Income (loss) from unconsolidated affiliates	(55,583)		83,338		(102,421)		57,759
Operating income	2,381,451		263,760		2,487,239		17,070
Non-operating income (expense)
Interest expense, net of amounts capitalized	(136,559)		(202,772)		(332,650)		(398,067)
Non-operating items from unconsolidated affiliates	(6,120)		(23,216)		(21,253)		(44,052)
Other, net	(43,308)		87,358		(9,006)		119,543
	(185,987)		(138,630)		(362,909)		(322,576)
Income (loss) before income taxes	2,195,464		125,130		2,124,330		(305,506)
Benefit (provision) for income taxes	(572,839)		(34,826)		(536,498)		59,872
Net income (loss)	1,622,625		90,304		1,587,832		(245,634)
Less: Net loss attributable to noncontrolling interests	161,312		14,449		178,089		18,558
Net income (loss) attributable to MGM Resorts International	$	1,783,937	$	104,753	$	1,765,921	$	(227,076)
Earnings (loss) per share
Basic	$	4.24	$	0.14	$	4.06	$	(0.56)
Diluted	$	4.20	$	0.14	$	4.02	$	(0.56)
Weighted average common shares outstanding
Basic	417,393		489,459		430,084		491,785
Diluted	421,303		495,302		434,336		491,785

The accompanying notes are an integral part of these consolidated financial statements.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income (loss)	$	1,622,625	$	90,304	$	1,587,832	$	(245,634)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(9,828)		5,811		(27,794)		(7,211)
Unrealized gain on cash flow hedges	1,661		2,090		37,692		17,388
Other comprehensive income (loss)	(8,167)		7,901		9,898		10,177
Comprehensive income (loss)	1,614,458		98,205		1,597,730		(235,457)
Less: Comprehensive loss attributable to noncontrolling interests	163,460		10,213		164,781		11,792
Comprehensive income (loss) attributable to MGM Resorts International	$	1,777,918	$	108,418	$	1,762,511	$	(223,665)

The accompanying notes are an integral part of these consolidated financial statements.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Six Months Ended June 30,
	2022		2021
Cash flows from operating activities
Net income (loss)	$	1,587,832	$	(245,634)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	654,893		574,176
Amortization of debt discounts, premiums and issuance costs	18,271		19,938
Loss on early retirement of debt	—		37
Provision for credit losses	292		3,724
Stock-based compensation	38,723		27,407
Property transactions, net	35,343		(2,835)
Gain on REIT transactions, net	(2,277,747)		—
Noncash lease expense	168,022		88,029
Other investment losses (gains)	7,974		(86,183)
Loss (income) from unconsolidated affiliates	123,674		(13,707)
Distributions from unconsolidated affiliates	34,830		49,625
Deferred income taxes	542,642		(68,821)
Change in operating assets and liabilities:
Accounts receivable	(48,176)		(138,153)
Inventories	(13,419)		9,267
Income taxes receivable and payable, net	35,757		17,222
Prepaid expenses and other	30,814		(11,835)
Accounts payable and accrued liabilities	(13,969)		187,500
Other	6,957		(41,341)
Net cash provided by operating activities	932,713		368,416
Cash flows from investing activities
Capital expenditures	(236,844)		(183,392)
Dispositions of property and equipment	8,980		9,370
Investments in unconsolidated affiliates	(167,181)		(101,845)
Proceeds from real estate transactions	4,373,820		—
Acquisitions, net of cash acquired	(1,597,739)		—
Distributions from unconsolidated affiliates	925		803
Investments and other	(155,280)		1,342
Net cash provided by (used in) investing activities	2,226,681		(273,722)
Cash flows from financing activities
Net borrowings (repayments) under bank credit facilities - maturities of 90 days or less	837,662		(551,600)
Issuance of long-term debt	—		749,775
Retirement of senior notes	(1,000,000)		—
Debt issuance costs	(1,367)		(11,346)
Issuance of MGM Growth Properties Class A shares, net	—		792,569
Dividends paid to common shareholders	(2,111)		(2,457)
Distributions to noncontrolling interest owners	(206,254)		(155,576)
Purchases of common stock	(2,116,055)		(339,661)
Other	(51,306)		(51,718)
Net cash provided by (used in) financing activities	(2,539,431)		429,986
Effect of exchange rate on cash, cash equivalents, and restricted cash	(1,617)		(85)
Change in cash and cash equivalents classified as assets held for sale	(37,232)		—
Cash, cash equivalents, and restricted cash
Net change for the period	581,114		524,595
Balance, beginning of period	5,203,059		5,101,637
Balance, end of period	$	5,784,173	$	5,626,232
Supplemental cash flow disclosures
Interest paid, net of amounts capitalized	$	329,621	$	347,551
Federal, state and foreign income taxes paid (refunds received), net	(32,736)		1,898

The accompanying notes are an integral part of these consolidated financial statements.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)


	Common Stock
	Shares	Par Value		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total MGM Resorts International Stockholders’ Equity		Noncontrolling Interests		Total Stockholders’ Equity
Balances, April 1, 2022	430,562	$	4,306	$	761,559	$	4,321,482	$	(22,007)	$	5,065,340	$	4,814,284	$	9,879,624
Net income (loss)	—	—		—		1,783,937		—		1,783,937		(163,596)		1,620,341
Currency translation adjustment	—	—		—		—		(6,709)		(6,709)		(3,119)		(9,828)
Cash flow hedges	—	—		—		—		690		690		971		1,661
Stock-based compensation	—	—		12,075		—		—		12,075		3,304		15,379
Issuance of common stock pursuant to stock-based compensation awards	225	2		(5,406)		—		—		(5,404)		—		(5,404)
Cash distributions to noncontrolling interest owners	—	—		—		—		—		—		(2,448)		(2,448)
Dividends declared and paid to common shareholders ($0.0025 per share)	—	—		—		(1,021)		—		(1,021)		—		(1,021)
Repurchases of common stock	(32,369)	(324)		(755,893)		(357,866)		—		(1,114,083)		—		(1,114,083)
Adjustment of redeemable noncontrolling interest to redemption value	—	—		(12,412)		—		—		(12,412)		—		(12,412)
Deconsolidation of MGP	—	—		—		—		11,084		11,084		(3,184,710)		(3,173,626)
Other	—	—		77		—		—		77		(577)		(500)
Balances, June 30, 2022	398,418	$	3,984	$	—	$	5,746,532	$	(16,942)	$	5,733,574	$	1,464,109	$	7,197,683

Balances, January 1, 2022	453,804	$	4,538	$	1,750,135	$	4,340,588	$	(24,616)	$	6,070,645	$	4,906,121	$	10,976,766
Net income (loss)	—	—		—		1,765,921		—		1,765,921		(182,642)		1,583,279
Currency translation adjustment	—	—		—		—		(16,893)		(16,893)		(10,901)		(27,794)
Cash flow hedges	—	—		—		—		13,483		13,483		24,209		37,692
Stock-based compensation	—	—		34,456		—		—		34,456		4,267		38,723
Issuance of common stock pursuant to stock-based compensation awards	329	3		(7,718)		—		—		(7,715)		—		(7,715)
Cash distributions to noncontrolling interest owners	—	—		—		—		—		—		(91,289)		(91,289)
Dividends declared and paid to common shareholders ($0.005 per share)	—	—		—		(2,111)		—		(2,111)		—		(2,111)
Issuance of restricted stock units	—	—		1,941		—		—		1,941		186		2,127
Repurchases of common stock	(55,715)	(557)		(1,757,632)		(357,866)		—		(2,116,055)		—		(2,116,055)
Adjustment of redeemable noncontrolling interest to redemption value	—	—		(21,398)		—		—		(21,398)		—		(21,398)
Deconsolidation of MGP	—	—		—		—		11,084		11,084		(3,184,710)		(3,173,626)
Other	—	—		216		—		—		216		(1,132)		(916)
Balances, June 30, 2022	398,418	$	3,984	$	—	$	5,746,532	$	(16,942)	$	5,733,574	$	1,464,109	$	7,197,683

The accompanying notes are an integral part of these consolidated financial statements.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)


	Common Stock
	Shares	Par Value		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total MGM Resorts International Stockholders’ Equity		Noncontrolling Interests		Total Stockholders’ Equity
Balances, April 1, 2021	491,874	$	4,919	$	3,569,186	$	2,757,941	$	(25,218)	$	6,306,828	$	4,925,691	$	11,232,519
Net income (loss)	—	—		—		104,753		—		104,753		(16,953)		87,800
Currency translation adjustment	—	—		—		—		3,233		3,233		2,578		5,811
Cash flow hedges	—	—		—		—		432		432		1,658		2,090
Stock-based compensation	—	—		9,684		—		—		9,684		1,174		10,858
Issuance of common stock pursuant to stock-based compensation awards	238	2		(2,316)		—		—		(2,314)		—		(2,314)
Cash distributions to noncontrolling interest owners	—	—		—		—		—		—		(3,290)		(3,290)
Dividends declared and paid to common shareholders ($0.0025 per share)	—	—		—		(1,220)		—		(1,220)		—		(1,220)
MGP dividend payable to Class A shareholders	—	—		—		—		—		—		(80,673)		(80,673)
Repurchases of common stock	(5,582)	(56)		(220,336)		—		—		(220,392)		—		(220,392)
Adjustment of redeemable noncontrolling interest to redemption value	—	—		(37,011)		—		—		(37,011)		—		(37,011)
MGP Class A share issuances	—	—		16,752		—		371		17,123		94,387		111,510
Other	—	—		(944)		—		9		(935)		(631)		(1,566)
Balances, June 30, 2021	486,530	$	4,865	$	3,335,015	$	2,861,474	$	(21,173)	$	6,180,181	$	4,923,941	$	11,104,122

Balances, January 1, 2021	494,318	$	4,943	$	3,439,453	$	3,091,007	$	(30,677)	$	6,504,726	$	4,675,182	$	11,179,908
Net loss	—	—		—		(227,076)		—		(227,076)		(23,207)		(250,283)
Currency translation adjustment	—	—		—		—		(4,120)		(4,120)		(3,091)		(7,211)
Cash flow hedges	—	—		—		—		7,531		7,531		9,857		17,388
Stock-based compensation	—	—		25,187		—		—		25,187		2,220		27,407
Issuance of common stock pursuant to stock-based compensation awards	944	9		(11,667)		—		—		(11,658)		—		(11,658)
Cash distributions to noncontrolling interest owners	—	—		—		—		—		—		(82,297)		(82,297)
Dividends declared and paid to common shareholders ($0.005 per share)	—	—		—		(2,457)		—		(2,457)		—		(2,457)
MGP dividend payable to Class A shareholders	—	—		—		—		—		—		(80,673)		(80,673)
Repurchases of common stock	(8,732)	(87)		(339,574)		—		—		(339,661)		—		(339,661)
Adjustment of redeemable noncontrolling interest to redemption value	—	—		(46,439)		—		—		(46,439)		—		(46,439)
MGP Class A share issuances	—	—		99,894		—		3,239		103,133		656,131		759,264
Redemption of Operating Partnership units	—	—		171,332		—		5,327		176,659		(227,487)		(50,828)
Other	—	—		(3,171)

MGM Resorts International [MGM] Filings
10-Q	[2022-08-03]
10-Q	[2022-05-02]
10-K	[2022-02-25]
10-Q	[2021-11-03]
10-Q	[2021-08-06]
10-Q	[2021-05-03]
10-K	[2021-02-26]
10-Q	[2020-11-03]
10-Q	[2020-08-03]
10-Q	[2020-05-01]
10-K	[2020-02-27]
10-Q	[2019-11-05]
10-Q	[2019-08-08]
10-Q	[2019-05-07]
10-K	[2019-02-27]
10-Q	[2018-11-07]
10-Q	[2018-08-03]
10-Q	[2018-05-07]
10-K	[2018-03-01]
10-Q	[2017-11-09]
10-Q	[2017-08-08]
10-Q	[2017-05-09]
10-K	[2017-03-01]
10-Q	[2016-11-09]
10-Q	[2016-08-08]
10-Q	[2016-05-06]
10-K	[2016-02-29]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-08]
10-K	[2015-03-02]
10-Q	[2014-11-07]
10-Q	[2014-08-11]
10-Q	[2014-05-08]
10-K	[2014-03-03]
10-Q	[2013-11-07]
10-Q	[2013-08-08]
10-Q	[2013-05-08]
10-K	[2013-03-01]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-08]
10-K	[2012-02-29]