MGM Resorts Post Sharply Wider Q4 Loss On Tax Provision Charge

(RTTNews) - Casino operator MGM Resorts International (MGM) reported Tuesday a loss for the fourth quarter that sharply widened from last year, reflecting a hefty provision for income tax and a drop in casino revenues.

Further, MGM China's board said it will recommend a regular final dividend, and also declared a special dividend.

"MGM Resorts International reported its best fourth quarter EBITDA since the peak in 2007 and its best full year in six years at its wholly owned domestic resorts. For the full year, CityCenter resort operations and MGM China each achieved record performances," Chairman and CEO Jim Murren said.

Las Vegas, Nevada-based MGM Resorts reported a net loss of $342.26 million or $0.70 per share for the fourth quarter, sharply wider than $56.81 million or $0.12 per share in the prior-year quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude one-time items.

Results for the latest quarter include an income tax provision of $0.67 per share related to an unfavorable impact by a non-cash charge due to an increase in valuation allowance recorded against the company's foreign tax credit deferred tax asset.

Net revenue for the quarter declined 5 percent to $2.39 billion from $2.51 billion in the same quarter last year, but missed sixteen Wall Street analysts' consensus estimate of $2.41 billion.

Net revenue at the company's wholly owned domestic resorts grew 5 percent to $1.55 billion from last year, with rooms revenue increasing 6 percent.

MGM China revenues declined 22 percent to $719 million from last year's $926 million, with VIP table games revenue decreasing 39 percent. However, main floor table games revenue increased 19 percent.

MGM China's board announced it will recommend a regular final dividend of $120 million, subject to approval at the MGM China 2015 annual shareholders meeting. Following approval, MGM Resorts will also receive $61 million, a 51 percent share of the dividend.

MGM China Board also announced a $400 million special dividend, payable on or about March 19 to shareholders of record as of March 10, 2015. MGM Resorts will receive $204 million as its 51 percent share of the special dividend.

Consolidated casino revenue declined 11 percent to $1.40 billion, with casino revenue related to wholly owned domestic resorts increasing 5 percent. Meanwhile, food and beverage revenue increased 5 percent to $366 million, and rooms revenue grew 6 percent to $419 million from last year.

CityCenter Holdings, LLC's net revenue from resort operations decreased 6 percent to $296 million from the prior-year quarter, with Aria revenues declining 7 percent to $233 million from a year ago.

CityCenter reported an operating loss of $58 million for the fourth quarter, compared to operating income of $26 million last year, due to decreased operating results at Aria and a property transaction charge of $39 million.

The company recorded a provision for income taxes of $328.11 million for the quarter, compared to a tax provision of $3.88 million last year.

"When I reflect on this year, I am extremely proud of the accomplishments of the MGM Resorts International team and believe that 2015 will be another great year. In fact, we are already off to a good start with strong January results in the U.S.," Murren added.

MGM closed Friday's regular trading session at $21.46, up $0.10 on a volume of 15.43 million shares. In the past 52-week period, the stock has been trading in a range of $17.25 to $28.75.