"The year started strong with results ahead of expectations, however the COVID-19 pandemic resulted in the closure of our properties which had a material negative impact on our first quarter results," said Bill Hornbuckle, Acting CEO and President of MGM Resorts.
MGM announced in March it would close its properties in response to the coronavirus outbreak. That decision came before Gov. Steve Sisolak's order closing all gaming venues in Nevada, and the company says it has to spend about $270 million per month while its U.S. resorts stay closed.
"It is still premature to predict the opening dates of our domestic properties," acting Hornbuckle said in a release. "In the meantime, we are collaborating with public health officials, experts in epidemiology and biosafety, and both state and federal government to come up with a set of protocols that will help deliver a safe, secure environment for our employees and guests."
First Quarter 2020 Financial Highlights:
"During this unprecedented crisis MGM Resorts maintains a strong liquidity position. We have benefitted from the Bellagio, MGM Grand Las Vegas, and Circus Circus Las Vegas real estate transactions, which generated approximately $6.9 billion of cash. In addition to $4.6 billion of cash on the balance sheet as of March 31, 2020, excluding MGP and MGM China and adjusted for the recent bond offering, the Company also has access to $1.4 billion of additional liquidity upon the redemption of its operating partnership units in MGP," said Paul Salem, Chairman of MGM Resorts.
Las Vegas Strip Resorts
Net revenues decreased 10% compared to the prior year quarter to $726 million, the current quarter included $57 million in net revenues from MGM Northfield Park's operations, which were acquired from MGP on April 1, 2019;
Adjusted Property EBITDAR decreased 28% compared the prior year quarter to $152 million;
Adjusted Property EBITDAR increased 42% for the first two months of the quarter compared to the same period in the prior year quarter, and when excluding Empire City and MGM Northfield Park, increased 26% for the first two months of the quarter compared to the same period in the prior year quarter; and
Adjusted Property EBITDAR margin of 20.9% in the current quarter, a 544 basis point decrease compared to the prior year quarter.