n January 1, 2018, MGM Resorts International adopted the new revenue recognition accounting standard (ASC 606). As such, certain previously reported 2017 numbers have been retrospectively adjusted under the new standard to assist with comparability to the prior period.
Fourth Quarter 2018 Financial and Strategic Highlights:
- Consolidated net revenues increased 18% compared to the prior year quarter to $3.1 billion;
- Consolidated operating income increased 50% compared to the prior year quarter to $336 million;
- Net loss attributable to MGM Resorts of $23 million, compared to net income of $1.4 billion in the prior year quarter;
- Diluted loss per share of $0.06 in the current quarter compared to diluted earnings per share of $2.39 in the prior year quarter;
- The current quarter included a non-recurring, non-cash income tax expense of $92 million, $0.17 per share on a diluted basis, primarily resulting from recently issued guidance on certain international provisions of the U.S. Tax Cut and Jobs Act ("Tax Act"), including the treatment of foreign tax credits resulting from Global Intangible Low-Taxed Income and other provisions impacting foreign tax credit utilization. The prior year quarter included a non-recurring, non-cash income tax benefit of $2.50 per share on a diluted basis, due to enactment of the Tax Act at the end of 2017; and
- Consolidated Adjusted Property EBITDA increased 21% compared to the prior year quarter to $821 million.
- Distributed $63 million to shareholders via the Company's quarterly dividend of $0.12 per share; and
- Repurchased $150 million of the Company's common stock in the fourth quarter.
"We had a strong finish to the year, driving growth across all Las Vegas segments in the fourth quarter. Our fourth quarter consolidated net revenues grew by 18% and our consolidated Adjusted EBITDA by 21%, before certain one-time benefits," said Jim Murren, Chairman and CEO of MGM Resorts International. "Our Las Vegas Strip Resorts achieved the best fourth quarter Adjusted Property EBITDA since 2007. We also continued to gain share within our regional markets and realized record fourth quarter revenues and Adjusted Property EBITDA performance at MGM Grand Detroit, MGM National Harbor, Beau Rivage, and Gold Strike Tunica. Additionally, we closed out the year with the official openings of Park MGM and NoMad Las Vegas, both of which have received overwhelmingly positive responses.
"Looking ahead, we remain highly focused on our strategic priorities, including maximizing the performance of our premier properties, driving consolidated free cash flow growth and successfully executing MGM 2020 – our recently announced plan dedicated to improving efficiencies, reducing costs, and investing in key technologies to position the Company for further profitability. Through MGM 2020, we are reinvesting in our business and we expect to begin to see the financial benefits in the back half of 2019," Mr. Murren continued. "We also remain committed to targeted growth opportunities such as sports betting and the pursuit of an Integrated Resort in Japan. Importantly, we will continue to prudently allocate capital, with a focus of returning excess cash to shareholders."
Full Year 2018 Financial and Strategic Highlights:
- Consolidated net revenues for 2018 of $11.8 billion, an increase of 9% compared to the prior year; with Las Vegas Strip Resorts net revenues decreasing 1%, Regional Operations net revenues increasing 8%, and MGM China net revenues increasing 32%;
- Consolidated operating income of $1.5 billion in 2018 compared to $1.7 billion in 2017;
- Net income attributable to MGM Resorts of $467 million, compared to $2.0 billion in the prior year;
- The current year included non-recurring, non-cash income tax expense of $20 million for Tax Act adjustments, including the impact of recently issued guidance on certain international provisions mentioned above. The prior year included a non-recurring, non-cash income tax benefit of $1.4 billion due to enactment of the Tax Act;
- Consolidated Adjusted Property EBITDA increased 1% compared to the prior year to $3.3 billion;
Las Vegas Strip Resorts Adjusted Property EBITDA of $1.7 billion, a 4% decrease compared to the prior year;
- Regional Operations Adjusted Property EBITDA of $759 million, a 4% increase over the prior year;
- MGM China Adjusted Property EBITDA of $568 million, a 6% increase over the prior year;
- Distributed $261 million to shareholders during 2018 via the Company's quarterly dividend of $0.12 per share; and
- Repurchased $1.3 billion of the Company's common stock during 2018.