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MGM MIRAGE Reports Third Quarter Results

The Company is Effectively Managing its Cost Structure to Maximize Cash Flow and Making Significant Strides to Increase Liquidity

LAS VEGAS, Oct. 29 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE: MGM) today reported its third quarter 2008 financial results. The Company earned $0.22 per diluted share from continuing operations for the 2008 third quarter compared to $0.62 in the prior year third quarter. Results for the 2008 quarter included a non-cash write-down of $30 million, or $0.07 per diluted share, related to the 36-hole Primm Valley Golf Club and underlying land. Results for the third quarter of 2007 included $135 million, or $0.30 per diluted share, of income related to insurance proceeds received for Hurricane Katrina. These and several other items impacted comparability of quarterly results as shown in the following table (earnings per share impact, net of tax, per diluted share; negative amounts represent charges to income):



    Three months ended September 30,                    2008           2007
    -----------------------------------------------------------------------

    Profits from The Signature at MGM Grand           $   -          $ 0.03
    Preopening and start-up expenses                   (0.01)         (0.06)
    Hurricane Katrina business interruption income
     (recorded as a reduction of general and
     administrative expenses)                             -            0.06
    Property transactions, net:
      Hurricane Katrina property damage income            -            0.24
      Other property transactions                      (0.08)         (0.04)


The Company's net revenue decreased 6% to $1.8 billion. Las Vegas Strip REVPAR(1) decreased 10%; casino revenue decreased 8%, while food and beverage revenue and entertainment revenue were down 3% and 4%, respectively.

Property EBITDA(2) was $502 million in the quarter compared to $705 million in 2007. The comparison was affected by the items noted above, and a $15 million impact from the reversal of bonus accruals in the 2008 quarter due to the Company not meeting its internal profit targets. On a comparable basis, excluding these items, Property EBITDA declined 18%, with a margin of 28% versus 32% in the prior year.

Consolidated EBITDA was $442 million compared to $635 million in 2007. Adjusting for items affecting comparability, including a total company-wide bonus accrual reversal of $22 million, EBITDA declined 14%. This decline is less than the Property EBITDA decline due to significantly lower corporate expense.

Bellagio reported extremely strong results for the third quarter with a 3% increase in net revenue and Property EBITDA of $90 million, an 8% increase over the prior year third quarter. Bellagio's average room rate increased 1% to $247 and occupancy was 96%, leading to an increase in REVPAR to $238 and an all-time high in terms of third quarter hotel revenues.

"We continue to manage our resorts to achieve maximum performance across all our businesses, and achieved occupancy of 95% at our Las Vegas Strip resorts for the third quarter," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "Our performance was impacted by the global economic environment, a trend that is not unique to our industry, but we continue to generate strong cash flows. Bellagio, our flagship resort, continues to outperform the market as evidenced by its third quarter performance."

Detailed Discussion of Third Quarter Operating Results

Casino revenue decreased 8%, mainly due to a decrease in table games volume of 13% at the Company's Las Vegas Strip resorts. The table games hold percentage was within the Company's normal 18% to 22% range in the current quarter and slightly higher than in the 2007 quarter. Slots revenue decreased 6% in the quarter, with the Company's Las Vegas Strip resorts reporting a 13% decrease, partially offset by double digit increases at Gold Strike Tunica and MGM Grand Detroit.

Rooms revenue decreased 10%. Average room rates were down 9% at the Company's Las Vegas Strip resorts, with Las Vegas Strip occupancy at 95% compared to 97% in the prior year quarter. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:




    Three months ended September 30,                    2008           2007
    -----------------------------------------------------------------------
    Occupancy %                                          95%            97%
    Average Daily Rate (ADR)                            $135           $147
    Revenue per Available Room (REVPAR)                 $128           $143


Other non-gaming revenues were relatively strong in light of current market conditions. Food and beverage revenues were down 3%. Entertainment revenues were down 4%, largely due to fewer events at the Company's arenas. The Company's market-leading Cirque du Soleil production shows continue to attract large audiences, with revenues consistent with the prior year quarter. In addition, Believe starring Criss Angel is currently playing preview performances at Luxor and will perform its grand-opening show on October 31.

Corporate expense decreased from $63 million in the 2007 quarter to $24 million in 2008. The current quarter includes the impact of cost reduction measures implemented throughout 2008 as well as the reversal of bonus accruals. Additionally, the 2007 quarter included $18 million of costs related to severance, development initiatives, and the CityCenter joint venture transaction.

MGM Grand Macau, of which the Company owns 50%, recorded Property EBITDA of $35 million, a 52% increase over the $23 million earned in the second quarter. The Company recognized its share of MGM Grand Macau's results as follows: $8 million of income in the "Income from unconsolidated affiliates" line and $3 million of expense in "Non-operating items from unconsolidated affiliates."

On a comparable basis, the Company's operating margin was 14% versus 19% in the prior year quarter, and operating income declined 29%. These year-over- year comparisons exclude the impact from the reversal of bonus accruals during the current quarter and the other items listed in the table earlier in the release.

"While our margins have held up well in a difficult environment, we continue to make permanent improvements to our cost structure which will benefit us now and into the future," said Jim Murren, President and Chief Operating Officer of MGM MIRAGE. "We continue to mobilize the unmatched talents of our management team to identify opportunities for margin improvement and remain focused on providing the highest levels of guest service. We believe we have plentiful opportunities to further reduce costs and we are dedicated to maximizing our cash flows."

Projects Update

In October 2007, the Company announced the development of MGM Grand Atlantic City, to be located adjacent to the Borgata on a 72-acre site in Renaissance Point in Atlantic City, New Jersey. The Company has made extensive progress on design and other pre-development activities. Current economic conditions and the impact of the credit market environment have caused the Company to reassess timing for the project. Accordingly, the Company has postponed additional development activities.

"We continue to believe that Atlantic City represents an important market for further development," said Mr. Lanni. "We intend to resume development at such time as economic conditions and capital markets are sufficiently improved to enable us to go forward on a reasonable basis. Likewise, with respect to our joint venture with Kerzner International and Istithmar announced in September 2007 for the development of a major resort complex on the southwest corner of the Las Vegas Strip and Sahara Avenue in Las Vegas, we have agreed with our joint venture partners that we should defer additional design and pre-construction activities and have amended our joint venture agreement accordingly. These actions reflect the Company's commitment to maximize our financial resources in this environment."

Financial Position

In September, the Company entered into an amendment to its $7.0 billion senior credit facility. The amendment increases the maximum total leverage ratio, modifies drawn and undrawn pricing levels as well as revises certain definitions and limitations on secured indebtedness. Available borrowing capacity under the Company's senior credit facility was $1.2 billion as of September 30, 2008.

In early October, CityCenter successfully completed the first phase of its financing by securing a $1.8 billion senior bank credit facility. CityCenter has received additional signed commitment letters totaling in excess of $500 million, and the Company and Dubai World continue to work with lenders to obtain additional financing, up to a total of $3.0 billion, for CityCenter. During the third quarter, the Company and Dubai World each provided CityCenter with additional loans of $300 million to fund construction.

"Securing $1.8 billion of financing at CityCenter and amending our $7.0 billion senior credit facility provide the Company with significant additional financial flexibility," said Executive Vice President and Chief Financial Officer of MGM MIRAGE, Dan D'Arrigo. "We intend to further access the capital markets, and aggressively manage our liquidity and financial position."

Third quarter capital investments totaled $181 million, which included $73 million for room and suite remodel projects, primarily at The Mirage and TI; and $19 million for projects related to CityCenter, including the people mover connecting Bellagio, CityCenter, and Monte Carlo, as well as expenditures for Monte Carlo's share of a new parking garage. The remaining $89 million was for other capital expenditures, including various new and upgraded amenities at the Company's resorts.

Goodwill and Indefinite-lived Intangible Assets

The Company reviews goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter and between annual test dates in certain circumstances. The majority of the Company's goodwill and indefinite- lived intangible assets (mainly trademarks and license rights) relate to the Mandalay Resort Group acquisition in April 2005. The Company does not believe a triggering event requiring the Company to conduct an interim impairment test had occurred as of September 30, 2008 and will perform the annual test during the fourth quarter. The Company notes that its market capitalization as of September 30, 2008 exceeded its net book value by 53%, or $2.7 billion, and its net book value per share was $18.61. However, due to a subsequent decline in the Company's market capitalization, the Company believes it is reasonably possible that its fourth quarter analysis will result in a non-cash impairment charge, but cannot reasonably estimate the amount of such charge until it completes its annual evaluation later in the fourth quarter. As of September 30, 2008, the balances of the Company's goodwill and indefinite-lived intangible assets were $1.3 billion and $345 million, respectively.

MGM MIRAGE will hold a conference call to discuss its third quarter earnings results and outlook for the fourth quarter of 2008 at 11:00 a.m. Eastern Daylight Time today. The call can be accessed live at http://www.companyboardroom.com or http://www.mgmmirage.com, or by calling 1-800-526-8531 (domestic) or 1-706-634-6528 (international). Until November 5, 2008, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 69045664. A complete replay of the call will also be made available at http://www.mgmmirage.com. Supplemental detailed earnings information will also be available on the Company's website.

    (1) REVPAR is hotel Revenue per Available Room.

    (2) "EBITDA" is earnings before interest and other non-operating income
        (expense), taxes, depreciation and amortization.  "Property EBITDA" is
        EBITDA before corporate expense and stock compensation expense.
        EBITDA information is presented solely as a supplemental disclosure
        because management believes that it is 1) a widely used measure of
        operating performance in the gaming industry, and 2) a principal basis
        for valuation of gaming companies.  In addition, capital allocation,
        tax planning, financing and stock compensation awards are all managed
        at the corporate level.  Management uses Property EBITDA as the
        primary measure of the Company's operating resorts' performance,
        including the evaluation of operating personnel.  EBITDA should not be
        construed as an alternative to operating income, as an indicator of
        the Company's operating performance; or as an alternative to cash
        flows from operating activities, as a measure of liquidity; or as any
        other measure determined in accordance with generally accepted
        accounting principles.  The Company has significant uses of cash
        flows, including capital expenditures, interest payments, taxes and
        debt principal repayments, which are not reflected in EBITDA.  Also,
        other gaming companies that report EBITDA information may calculate
        EBITDA in a different manner than the Company.  Reconciliations of
        consolidated EBITDA to net income and of operating income to Property
        EBITDA are included in the financial schedules accompanying this
        release.

                                *     *      *

MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected development companies with significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. MGM MIRAGE is developing major casino and non- casino resorts, separately and with partners in Las Vegas, Atlantic City, the People's Republic of China and Abu Dhabi, U.A.E. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com.

Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.



                         MGM MIRAGE AND SUBSIDIARIES
                        CONSOLIDATED INCOME STATEMENT
                    (In thousands, except per share data)
                                 (Unaudited)

                         Three Months Ended            Nine Months Ended
                   ----------------------------- -----------------------------
                    September 30,  September 30,  September 30,  September 30,
                        2008           2007           2008           2007
                   -------------- -------------- -------------- --------------
    Revenues:
      Casino        $   739,331    $   803,834    $ 2,271,978    $ 2,389,704
      Rooms             458,051        510,795      1,500,322      1,614,906
      Food and
       beverage         395,090        406,620      1,229,045      1,248,786
      Entertainment     135,673        141,093        408,541        418,578
      Retail             69,205         75,608        202,060        222,930
      Other             155,335        132,061        478,664        388,891
                   -------------- -------------- -------------- --------------
                      1,952,685      2,070,011      6,090,610      6,283,795
      Less:
       Promotional
        allowances     (167,154)      (172,941)      (506,355)      (520,874)
                   -------------- -------------- -------------- --------------
                      1,785,531      1,897,070      5,584,255      5,762,921
                   -------------- -------------- -------------- --------------
    Expenses:
      Casino            383,406        404,509      1,200,948      1,217,643
      Rooms             136,313        135,550        412,846        407,813
      Food and
       beverage         237,130        232,829        720,201        709,234
      Entertainment      94,667        100,281        288,617        300,913
      Retail             42,411         47,211        128,070        139,785
      Other              99,389         81,256        307,521        225,316
      General and
       administrative   326,831        314,625        971,016        956,010
      Corporate expense  24,466         63,050         83,537        140,673
      Preopening and
       start-up
       expenses           5,505         25,851         17,626         54,275
      Restructuring
       costs                -              -              329            -
      Property
       transactions,
       net               32,326        (89,225)        34,984        (81,799)
      Depreciation
       and
       amortization     200,102        170,780        591,659        506,566
                   -------------- -------------- -------------- --------------
                      1,582,546      1,486,717      4,757,354      4,576,429
                   -------------- -------------- -------------- --------------

    Income from
     unconsolidated
     affiliates          38,572         54,260         89,728        192,227
                   -------------- -------------- -------------- --------------
    Operating
     income             241,557        464,613        916,629      1,378,719
                   -------------- -------------- -------------- --------------

    Non-operating
     income
     (expense):
      Interest income     5,910          4,770         13,056         12,936
      Interest
       expense, net    (144,751)      (180,033)      (439,844)      (547,473)
      Non-operating
       items from
       unconsolidated
       affiliates        (9,552)        (4,599)       (26,731)       (14,419)
      Other, net          2,125         (1,152)           791         (4,684)
                   -------------- -------------- -------------- --------------
                       (146,268)      (181,014)      (452,728)      (553,640)
                   -------------- -------------- -------------- --------------
    Income from
     continuing
     operations
     before income
     taxes               95,289        283,599        463,901        825,079
      Provision for
       income
       taxes            (34,011)       (99,736)      (171,176)      (295,308)
    Income from    -------------- -------------- -------------- --------------
     continuing
     operations          61,278        183,863        292,725        529,771
                   -------------- -------------- -------------- --------------
    Discontinued
     operations:
      Income from
       discontinued
       operations           -              -              -           10,461
      Gain on
       disposal of
       discontinued
       operations           -              -              -          263,881
      Provision for
       income taxes         -              -              -          (91,905)
                   -------------- -------------- -------------- --------------
                            -              -              -          182,437
                   -------------- -------------- -------------- --------------
    Net income      $    61,278    $   183,863    $   292,725    $   712,208
                   ============== ============== ============== ==============

    Per share of
     common stock:
      Basic:
      Income from
       continuing
       operations   $      0.22    $      0.65    $      1.04    $      1.86
      Discontinued
       operations           -              -              -             0.65
      Net income   -------------- -------------- -------------- --------------
       per share    $      0.22    $      0.65    $      1.04    $      2.51
                   ============== ============== ============== ==============

      Weighted
       average
       shares
       outstanding      276,417        284,730        280,926        284,201
                   ============== ============== ============== ==============
      Diluted:
      Income from
       continuing
       operations   $      0.22    $      0.62    $      1.02    $      1.79
      Discontinued
       operations           -              -              -             0.62
      Net income   -------------- -------------- -------------- --------------
       per share    $      0.22    $      0.62    $      1.02    $      2.41
                   ============== ============== ============== ==============
      Weighted
       average
       shares
       outstanding      279,846        296,248        287,604        295,687
                   ============== ============== ============== ==============



                         MGM MIRAGE AND SUBSIDIARIES
                       SUPPLEMENTAL DATA - NET REVENUES
                                (In thousands)
                                 (Unaudited)

                         Three Months Ended            Nine Months Ended
                   ----------------------------- -----------------------------
                    September 30,  September 30,  September 30,  September 30,
                        2008           2007           2008           2007
                   -------------- -------------- -------------- --------------
    Las Vegas Strip $ 1,450,899    $ 1,598,237    $ 4,569,476    $ 4,865,228
    Other Nevada         41,334         46,177        117,005        137,667
    MGM Grand
     Detroit            139,859        110,445        430,067        337,049
    Mississippi         135,357        142,211        408,980        422,977
    Other                18,082            -           58,727            -
                   -------------- -------------- -------------- --------------
                    $ 1,785,531    $ 1,897,070    $ 5,584,255    $ 5,762,921
                   ============== ============== ============== ==============



                         MGM MIRAGE AND SUBSIDIARIES
                     SUPPLEMENTAL DATA - PROPERTY EBITDA
                                (In thousands)
                                 (Unaudited)

                         Three Months Ended            Nine Months Ended
                   ----------------------------- -----------------------------
                    September 30,  September 30,  September 30,  September 30,
                        2008           2007           2008           2007
                   -------------- -------------- -------------- --------------
    Las Vegas Strip $   398,998    $   469,598    $ 1,361,238    $ 1,549,664
    Other Nevada          3,226          5,808          1,806          9,892
    MGM Grand
     Detroit             33,849         17,305        106,785         80,247
    Mississippi          26,208        164,285         82,194        227,595
    Other                 5,066            -           13,815            -
    Unconsolidated
     resorts             34,535         47,746         74,536        178,840
                   -------------- -------------- -------------- --------------
                    $   501,882    $   704,742    $ 1,640,374    $ 2,046,238
                   ============== ============== ============== ==============



                         MGM MIRAGE AND SUBSIDIARIES
        DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
                                (In thousands)
                                 (Unaudited)

                    Three Months Ended September 30, 2008
                    -------------------------------------

                   Preopening and                   Property
                      start-up     Restructuring  transactions,
                      expenses         costs           net           Total
                   -------------- -------------- -------------- --------------
    Las Vegas Strip $     1,494    $       -      $     1,765    $     3,259
    Other Nevada            -              -               20             20
    MGM Grand
     Detroit                -              -              -              -
    Mississippi             -              -               71             71
    Unconsolidated
     resorts              3,957            -              -            3,957
                   -------------- -------------- -------------- --------------
                          5,451            -            1,856          7,307
    Corporate and
     other                   54            -           30,470         30,524
                   -------------- -------------- -------------- --------------
                    $     5,505    $       -      $    32,326    $    37,831
                   ============== ============== ============== ==============



                    Three Months Ended September 30, 2007
                    -------------------------------------

                   Preopening and                   Property
                      start-up     Restructuring  transactions,
                      expenses         costs           net           Total
                   -------------- -------------- -------------- --------------
    Las Vegas Strip $     5,642    $       -      $    17,735    $    23,377
    Other Nevada            -              -               20             20
    MGM Grand
     Detroit             13,554            -              -           13,554
    Mississippi             -              -         (107,035)      (107,035)
    Unconsolidated
     resorts              6,514            -              -            6,514
                   -------------- -------------- -------------- --------------
                         25,710            -          (89,280)       (63,570)
    Corporate and
     other                  141            -               55            196
                   -------------- -------------- -------------- --------------
                    $    25,851    $       -      $   (89,225)   $   (63,374)
                   ============== ============== ============== ==============



                         MGM MIRAGE AND SUBSIDIARIES
  DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA (continued)
                                (In thousands)
                                 (Unaudited)

                     Nine Months Ended September 30, 2008
                     ------------------------------------

                   Preopening and                   Property
                      start-up     Restructuring  transactions,
                      expenses         costs           net           Total
                   -------------- -------------- -------------- --------------

    Las Vegas Strip $     2,114    $       329    $       926    $     3,369
    Other Nevada            -              -            2,207          2,207
    MGM Grand
     Detroit                135            -                8            143
    Mississippi             -              -               73             73
    Unconsolidated
     resorts             15,276            -              -           15,276
                   -------------- -------------- -------------- --------------
                         17,525            329          3,214         21,068
    Corporate and
     other                  101            -           31,770         31,871
                   -------------- -------------- -------------- --------------
                    $    17,626    $       329    $    34,984    $    52,939
                   ============== ============== ============== ==============



                     Nine Months Ended September 30, 2007
                     ------------------------------------

                   Preopening and                   Property
                      start-up     Restructuring  transactions,
                      expenses         costs           net           Total
                   -------------- -------------- -------------- --------------
    Las Vegas Strip $    21,245    $       -      $    20,600    $    41,845
    Other Nevada            -              -            4,630          4,630
    MGM Grand
     Detroit             19,138            -              -           19,138
    Mississippi             -              -         (106,434)      (106,434)
    Unconsolidated
     resorts             13,387            -              -           13,387
                   -------------- -------------- -------------- --------------
                         53,770            -          (81,204)       (27,434)
    Corporate and
     other                  505            -             (595)           (90)
                   -------------- -------------- -------------- --------------
                    $    54,275    $       -      $   (81,799)   $   (27,524)
                   ============== ============== ============== ==============



                           MGM MIRAGE AND SUBSIDIARIES
         RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING
                                   OPERATIONS
                                 (In thousands)
                                   (Unaudited)

                         Three Months Ended            Nine Months Ended
                   ----------------------------- -----------------------------
                    September 30,  September 30,  September 30,  September 30,
                        2008           2007           2008           2007
                   -------------- -------------- -------------- --------------
    EBITDA          $   441,659    $   635,393    $ 1,508,288    $ 1,885,285
      Depreciation
       and
       amortization    (200,102)      (170,780)      (591,659)      (506,566)
                   -------------- -------------- -------------- --------------
    Operating
     income             241,557        464,613        916,629      1,378,719
                   -------------- -------------- -------------- --------------
    Non-operating
     income
     (expense):
      Interest
       expense, net    (144,751)      (180,033)      (439,844)      (547,473)
      Other              (1,517)          (981)       (12,884)        (6,167)
                   -------------- -------------- -------------- --------------
                       (146,268)      (181,014)      (452,728)      (553,640)
                   -------------- -------------- -------------- --------------
    Income from
     continuing
     operations
      before income
       taxes             95,289        283,599        463,901        825,079
      Provision for
       income taxes     (34,011)       (99,736)      (171,176)      (295,308)
                   -------------- -------------- -------------- --------------
    Income from
     continuing
     operations     $    61,278    $   183,863    $   292,725    $   529,771
                   ============== ============== ============== ==============



                         MGM MIRAGE AND SUBSIDIARIES
            RECONCILIATION OF OPERATING INCOME TO PROPERTY EBITDA
                                (In thousands)
                                 (Unaudited)

                    Three Months Ended September 30, 2008
                    -------------------------------------

                                                  Depreciation
                                    Operating         and
                                      income      amortization       EBITDA
                                  -------------- -------------- --------------
    Las Vegas Strip                $   249,481    $   149,517    $   398,998
    Other Nevada                         1,588          1,638          3,226
    MGM Grand Detroit                   19,587         14,262         33,849
    Mississippi                         10,480         15,728         26,208
    Other                                2,531          2,535          5,066
    Unconsolidated resorts              34,535            -           34,535
                                  -------------- -------------- --------------
                                       318,202        183,680        501,882
    Stock compensation                                                (8,870)
    Corporate and other                                              (51,353)
                                                                --------------
                                                                 $   441,659
                                                                ==============



                    Three Months Ended September 30, 2007
                    -------------------------------------

                                                  Depreciation
                                    Operating         and
                                      income      amortization       EBITDA
                                  -------------- -------------- --------------
    Las Vegas Strip                $   334,218    $   135,380    $   469,598
    Other Nevada                         4,304          1,504          5,808
    MGM Grand Detroit                   11,343          5,962         17,305
    Mississippi                        148,974         15,311        164,285
    Unconsolidated resorts              47,746            -           47,746
                                  -------------- -------------- --------------
                                       546,585        158,157        704,742
    Stock compensation                                               (10,710)
    Corporate and other                                              (58,639)
                                                                --------------
                                                                 $   635,393
                                                                ==============



                     Nine Months Ended September 30, 2008
                     ------------------------------------

                                                  Depreciation
                                    Operating         and
                                      income      amortization       EBITDA
                                  -------------- -------------- --------------
    Las Vegas Strip                $   917,235    $   444,003    $ 1,361,238
    Other Nevada                        (2,818)         4,624          1,806
    MGM Grand Detroit                   63,875         42,910        106,785
    Mississippi                         35,441         46,753         82,194
    Other                                7,203          6,612         13,815
    Unconsolidated resorts              74,536            -           74,536
                                  -------------- -------------- --------------
                                     1,095,472        544,902      1,640,374
    Stock compensation                                               (29,665)
    Corporate and other                                             (102,421)
                                                                --------------
                                                                 $ 1,508,288
                                                                ==============



                     Nine Months Ended September 30, 2007
                     ------------------------------------

                                                  Depreciation
                                    Operating         and
                                      income      amortization       EBITDA
                                  -------------- -------------- --------------
    Las Vegas Strip                $ 1,146,894    $   402,770    $ 1,549,664
    Other Nevada                         4,923          4,969          9,892
    MGM Grand Detroit                   62,411         17,836         80,247
    Mississippi                        181,992         45,603        227,595
    Unconsolidated resorts             178,840            -          178,840
                                  -------------- -------------- --------------
                                     1,575,060        471,178      2,046,238
    Stock compensation                                               (35,350)
    Corporate and other                                             (125,603)
                                                                --------------
                                                                 $ 1,885,285
                                                                ==============



                         MGM MIRAGE AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                      (In thousands, except share data)
                                 (Unaudited)

                                                 September 30,   December 31,
                                                     2008           2007
                                                -------------- --------------
                                    ASSETS
    Current assets:
        Cash and cash equivalents                $    250,087   $    416,124
        Accounts receivable, net                      322,821        412,933
        Inventories                                   125,423        126,941
        Income tax receivable                          51,201            -
        Deferred income taxes                          46,347         63,453
        Prepaid expenses and other                    117,333        106,364
                                                -------------- --------------
              Total current assets                    913,212      1,125,815
                                                -------------- --------------

    Property and equipment, net                    16,889,955     16,870,898

    Other assets:
        Investments in unconsolidated affiliates    2,536,193      2,482,727
        Goodwill                                    1,262,922      1,262,922
        Other intangible assets, net                  359,711        362,098
        Deposits and other assets, net              1,428,735        623,226
                                                -------------- --------------
              Total other assets                    5,587,561      4,730,973
                                                -------------- --------------
                                                 $ 23,390,728   $ 22,727,686
                                                ============== ==============


                     LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
        Accounts payable                         $    155,183   $    220,495
        Construction payable                           46,861         76,524
        Income taxes payable                              -          284,075
        Accrued interest on long-term debt            147,593        211,228
        Other accrued liabilities                     822,868        932,365
                                                -------------- --------------
              Total current liabilities             1,172,505      1,724,687
                                                -------------- --------------

    Deferred income taxes                           3,420,190      3,416,660
    Long-term debt                                 13,288,306     11,175,229
    Other long-term obligations                       365,267        350,407
    Stockholders' equity:
        Common stock, $.01 par value: authorized
         600,000,000 shares, issued 369,275,641
         and 368,395,926 shares and outstanding
         276,498,614 and 293,768,899 shares             3,693          3,684
        Capital in excess of par value              4,010,114      3,951,162
        Treasury stock, at cost: 92,777,027 and
         74,627,027 shares                         (3,355,963)    (2,115,107)
        Retained earnings                           4,513,133      4,220,408
        Accumulated other comprehensive income
         (loss)                                       (26,517)           556
                                                -------------- --------------
              Total stockholders' equity            5,144,460      6,060,703
                                                -------------- --------------
                                                 $ 23,390,728   $ 22,727,686
                                                ============== ==============

SOURCE MGM MIRAGE

CONTACT: Investment Community, Daniel J. D'arrigo, Executive Vice
President, Chief Financial Officer, +1-702-693-8895, or News Media, Alan M.
Feldman, Senior Vice President Public Affairs, +1-702-650-6947, both of MGM
MIRAGE
Web site: http://www.mgmmirage.com

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