NYSE$MGM

MGM Resorts International · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

MGM's financial performance significantly impacted by temporary suspensions and operational restrictions due to the COVID-19 pandemic.

MGM Resorts International reported a significant decrease in consolidated net revenues, a consolidated operating loss, and a net loss attributable to MGM Resorts, primarily due to the temporary suspension of domestic casino operations and travel restrictions in Macau. The company focused on bolstering its liquidity position and managing expenses during the re-opening process.

  • Consolidated net revenues decreased by 91% compared to the prior year quarter, totaling $290 million.
  • Consolidated operating loss was $1.0 billion, a stark contrast to the $371 million operating income in the prior year quarter.
  • Net loss attributable to MGM Resorts was $857 million, compared to a net income of $43 million in the prior year quarter.
  • Domestic liquidity, excluding MGM China and MGP, stood at $4.8 billion.

Headline financials

Total Revenue

$290M

Previous: $3.22B-91.0%
EPS (adj)

-$1.52

Previous: $0.23-760.9%
LV RevPAR

$66.00

Previous: $154.00-57.1%
LV ADR

$154.00

Previous: $163.00-5.5%
LV Occupancy

43.0%

Previous: 95.0%-54.7%
LV Table Games Drop

$149M

Previous: $851M-82.5%
LV Table Games Win %

32.5%

Previous: 21.1%+54.0%
LV Slot Handle

$524M

Previous: $3.13B-83.2%
LV Slot Win %

9.3%

Previous: 9.4%-1.1%
Regional Table Games Drop

$58M

Previous: $1.02B-94.3%
Regional Table Games Win %

21.9%

Previous: 19.9%+10.1%
Regional Slot Handle

$485M

Previous: $6.42B-92.4%
Regional Slot Win %

10.0%

Previous: 9.5%+5.3%
MGM China Main Floor Table Games Drop

$66M

Previous: $2.04B-96.8%
Capital Expenditures

-$140M

Previous: -$322M+56.4%
Free Cash Flow

-$997M

Previous: -$278M-258.5%
Net Income

-$857M

Previous: $43.4M-2075.0%
Operating Income

-$1.03B

Previous: $371M-378.5%
Gross Profit

-$84.6M

Previous: $1.32B-106.4%
Cash & Equivalents

$4.84B

Previous: $1.16B+316.6%
Total Assets

$37.5B

Previous: $30.8B+21.6%
Stock-Based Comp

$18.8M

Previous: $17.1M+10.4%

Revenue & EPS history

MGM · Revenue · Quarterly

$290M

Q2 2020-91%vs Q2 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

MGM · $290M total across 4 segments · Q2 2020

  • Las Vegas Strip Resorts
    $151M-89.7%
  • Regional Operations
    $89.3M-90.2%
  • MGM China
    $33.2M-95.3%
  • Management and Other Operations
    $16.5M

Forward guidance

MGM believes the long term fundamentals of the business and the broader industry remain intact. However, the near term operating environment will remain challenging and unpredictable as COVID-19 case trends, health and safety protocols, and travel restrictions continue to heavily impact our business.

Tailwinds

  • The Company’s liquidity position remains strong.
  • Domestic operations achieved better than expected results since opening, despite the challenging environment
  • MGM 2020 plan and modifications to our operating model have directly contributed to our margin improvements during the period in which our properties were open.
  • Integrated resort opportunity in Osaka
  • Expanding our footprint in Macau

Headwinds

  • The near term operating environment will remain challenging and unpredictable as COVID-19 case trends
  • Health and safety protocols continue to heavily impact our business.
  • Travel restrictions continue to heavily impact our business.
  • Temporary suspension of the Company’s domestic casino operations
  • Restrictions on the number of table games allowed to operate in Macau

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 Q2 2020

Historical avgQ2 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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