NYSE$MGM

MGM Resorts International · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

MGM's financial performance was negatively impacted by the COVID-19 pandemic, leading to property closures and revenue decline.

MGM Resorts International reported a 29% decrease in consolidated net revenues to $2.3 billion for the first quarter of 2020, primarily due to the temporary suspension of casino operations and travel restrictions. Despite the revenue decline, consolidated operating income increased to $1.3 billion, driven by a $1.5 billion gain from real estate transactions. The company is focused on managing cash outflows and maintaining a strong liquidity position during the crisis.

  • Consolidated net revenues decreased by 29% year-over-year to $2.3 billion due to COVID-19 impacts.
  • Consolidated operating income increased to $1.3 billion, including a $1.5 billion gain from real estate transactions.
  • Net income attributable to MGM Resorts was $807 million, compared to $31 million in the prior year quarter.
  • Adjusted diluted earnings per share was a loss of $0.45, compared to earnings of $0.14 in the prior year quarter.

Headline financials

Total Revenue

$2.25B

Previous: $3.18B-29.1%
EPS (adj)

-$0.45

Previous: $0.12-475.0%
LV RevPAR

$160.00

No prior period
LV ADR

$183.00

No prior period
LV Occupancy

88.0%

No prior period
LV Table Games Drop

$841M

No prior period
LV Table Games Win %

23.2%

No prior period
LV Slot Handle

$2.46B

No prior period
LV Slot Win %

9.4%

No prior period
Regional Table Games Drop

$844M

No prior period
Regional Table Games Win %

19.4%

No prior period
Regional Slot Handle

$5.17B

No prior period
Regional Slot Win %

9.6%

No prior period
MGM China Main Floor Table Games Drop

$777M

No prior period
MGM China Main Floor Table Games Win %

24.1%

No prior period
Capital Expenditures

-$73.1M

Previous: -$183M+60.1%
Free Cash Flow

$734M

Previous: -$152M+582.9%
Net Income

$807M

Previous: $31.3M+2478.1%
Operating Income

$1.25B

Previous: $370M+237.8%
Gross Profit

$815M

Previous: $1.31B-38.0%
Cash & Equivalents

$6.02B

Previous: $1.22B+391.8%
Total Assets

$39.1B

Previous: $31.1B+25.6%
Stock-Based Comp

$36.9M

Previous: $32.1M+14.8%

Revenue & EPS history

MGM · Revenue · Quarterly

$2.25B

Q1 2020-29.1%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

MGM · $2.1B total across 3 segments · Q1 2020

  • Las Vegas Strip Resorts
    $1.1B
  • Regional Operations
    $726M
  • MGM China
    $272M

Forward guidance

MGM Resorts is focused on maintaining a strong liquidity position and managing cash outflows during the COVID-19 crisis. The company is proactively reducing cash outflows and has access to additional liquidity through various measures.

Tailwinds

  • Strong liquidity position maintained.
  • Proactive reduction of cash outflows to $270 million per month during closures.
  • Access to $1.4 billion of additional liquidity upon redemption of operating partnership units in MGP.
  • Recent $750 million senior notes offering to bolster liquidity.
  • Focus on long-term strategic initiatives, including Japan, Macau, and sports betting.

Headwinds

  • Uncertainty regarding the opening dates of domestic properties.
  • Material negative impact on first quarter results due to property closures.
  • Continued travel restrictions affecting operations.
  • Temporary reduction of dividend to preserve liquidity.
  • Decrease in consolidated net revenues by 29%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.2%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+17.5%

Q4 2024

Best reaction

-14.0%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%-3.5%+11.1%
Q4 2025-1.8%+1.2%-3.7%
Q3 2025-1.7%+2.1%+13.1%
Q1 2025-1.9%-0.1%+0.6%
Q4 2024+17.5%+10.8%-7.6%
Q3 2024-12.2%-13.3%-8.7%
Q2 2024-12.8%-20.4%-12.1%
Q1 2024+3.6%+4.0%+1.9%
Q4 2023-9.0%-9.5%-9.0%
Q3 2023-0.2%-0.9%+8.2%
Q2 2023-8.5%-8.7%-11.4%
Q1 2023+2.3%-4.0%-12.5%
Q4 2022+5.0%+5.1%+1.6%
Q3 2022-12.6%-4.9%+3.2%
Q2 2022+7.2%+4.4%-0.6%
Q1 2022-0.5%-6.7%-16.7%
Q4 2021-0.3%-5.4%-15.0%
Q3 2021-1.0%+1.4%-16.1%
Q2 2021+7.4%+6.1%+15.1%
Q1 2021-4.2%-2.2%+1.6%
Q4 2020-1.5%+0.3%+8.8%
Q3 2020+2.3%+8.2%+42.4%
Q2 2020-1.0%+2.9%+46.8%
Q1 2020-14.0%-18.3%-1.6%
Q4 2019-2.8%-3.6%-52.8%
Q3 2019-0.1%+4.3%+12.0%
Q2 2019+2.6%+2.8%-6.5%
Q1 2019-5.9%-8.2%-10.4%
Q4 2018-5.2%-2.3%-9.9%
Q3 2018+10.1%+16.3%+12.8%
Q2 2018+0.1%+3.9%+1.7%
Q1 2018-11.5%-11.1%-11.0%
Q4 2017-0.2%+2.6%+0.2%
Q3 2017+4.1%+5.1%+5.5%
Q2 2017-2.2%-4.3%-6.0%
Q1 2017+3.1%+3.9%+6.8%
Q4 2016-10.1%-9.0%-6.8%
Q3 2016+6.0%+4.1%+13.4%
Q2 2016+2.8%+4.7%+3.4%
Q1 2016+2.5%
Q4 2015-10.0%
Q3 2015+6.6%
Q2 2015+12.6%
Q1 2015-5.9%
Q4 2014+3.9%
Q3 2014+1.6%
Q2 2014-5.0%
Q1 2014+9.6%
Q4 2013+3.8%
Q3 2013-4.9%
Q2 2013+4.4%
Q1 2013+6.2%
Q4 2012-2.9%
Q3 2012-1.1%
Q2 2012+4.7%
Q1 2012+0.7%
Q4 2011-0.7%
Q3 2011-0.9%
Q2 2011-6.8%
Q1 2010+2.6%
Q1 2011+0.7%
Q4 2008-3.4%
Q4 2010-3.4%
Q3 2009+4.9%
Q3 2010+4.9%
Q4 2009+1.5%
Q2 2010+1.5%
Q2 2009+1.5%

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