MGM Resorts Q4 Loss Sharply Narrows

(RTTNews) - Casino operator MGM Resorts International (MGM) reported Wednesday a loss for the fourth quarter that sharply narrowed from last year, which was weighed down by hefty property transactions impairment charges and loss on retirement of long-term debt.

"The fourth quarter finished strong, with 6% Adjusted EBITDA growth at our wholly owned domestic resorts and record quarters at MGM China and CityCenter," Chairman and CEO Jim Murren said.

Las Vegas, Nevada-based MGM Resorts reported a net loss of $38.34 million or $0.08 per share for the fourth quarter, sharply narrower than $1.22 billion or $2.50 per share in the prior-year quarter.

On average, 22 analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenue for the quarter grew 10 percent to $2.51 billion from $2.29 billion in the same quarter last year, and topped twenty Wall Street analysts' consensus estimate of $2.46 billion.

Consolidated casino revenue increased 13 percent to $1.57 billion from last year. MGM China revenues increased 27 percent to $926 million from last year's $731 million.

MGM China's board announced a special dividend of $500 million, payable on or about March 17 to shareholders of record as of March 10, 2014. MGM Resorts will receive $255 million, representing its 51 percent share of the special dividend.

Additionally, MGM China's board said it will recommend a $128 million final 2013 dividend to MGM China shareholders subject to approval at the 2014 annual shareholders meeting. MGM Resorts will receive $65 million of that.

CityCenter Holdings, LLC's net revenue from resort operations increased 11 percent to $301 million from the prior-year quarter, with Aria revenues growing to $250 million from $224 million a year ago.

Total expenses for the quarter declined to $2.20 billion from $2.72 billion last year, as property transactions expenses plunged to $2.01 million from $610.86 million a year ago.

For fiscal 2013, the company reported a net loss of $156.61 million or $0.32 per share, sharply narrower than $1.77 billion or $3.62 per share in the prior year. Net revenue for the full year grew 7 percent to $9.81 billion from $9.16 billion in the previous year.

Analysts expected the company to report full-year 2013 loss of $0.22 per share on annual revenues of $9.76 billion.

"In 2014, we expect our Las Vegas properties to continue to improve, driven by a strong convention calendar and the completion of several capital initiatives on the Las Vegas Strip. In Macau, we continue to yield our existing resort and are well underway in more than doubling our footprint in the world's largest gaming market with MGM Cotai set to open early 2016," Murren added.

In Wednesday's regular trading session, MGM is currently trading at $25.77, down $0.08 or 0.30% on a volume of 0.64 million shares. In the past 52-week period, the stock has been trading in a range of $11.72 to $26.70.