MGM Resorts International (MGM) on Wednesday reported a loss for the fourth quarter that narrowed from last year. The results reflect strong revenue growth in addition to an income tax benefit.
MGM Resorts has been reporting improved results in recent quarters as more tourists flock to the company's Las Vegas casino resorts and in Macau, amid an improvement in the economy.
The company witnessed an increase in visitor volume as well as room rates at the Las Vegas strip in the fourth quarter. Rooms revenue at wholly owned domestic resorts rose 10 percent in the quarter.
Revenue per available room or REVPAR increased 13 percent at the company's Las Vegas Strip resorts. Investors consider revenue per available room as a key gauge of a hotel or casino resort operator's performance. Occupancy at the company's Las Vegas Strip improved to 87 percent from 84 percent in the same period last year.
The company's fourth-quarter net loss narrowed to $113.69 million or $0.23 per share from $139.19 million or $0.29 in the year-ago period.
On average, analysts polled by Thomson Reuters expected the company to report a loss of $0.19 per share.
The latest quarter's results include MGM China Holdings Ltd, which the company began consolidating as of June 3, 2011. The results also include a net $0.09 per share increase in income tax benefit resulting from a decrease in the Macau net deferred tax liability, partially offset by an increase in the Michigan net deferred tax liability.
The company also said that in the latest quarter, it recorded an impairment charge of $0.07 per share related to its investment in Borgata and a $0.03 per share impairment charge on its investment in Silver Legacy.
Consolidated net revenue for the quarter grew 55 percent to $2.30 billion from $1.48 billion in the same period last year. Analysts had a consensus estimate of $2.21 billion.
Excluding MGM China's revenue contribution of $719 million, net revenue increased 7 percent compared to the prior-year quarter.
MGM Resorts said it is seeking amendments to its aggregate $3.5 billion senior credit facility to extend the maturity of loans held by consenting lenders from February 21, 2014 to February 23, 2015.
The company noted that lenders holding about 62 percent or $2.2 billion aggregate principal amount of the credit facility have elected to extend the maturity dates of their commitments.
MGM Resorts also said that on Wednesday, MGM China's board of directors announced a dividend of about $400 million.
The dividend will be paid to shareholders of record as of March 9 and distributed on or about March 20. MGM Resorts International will receive about $204 million, representing 51 percent of such dividend.
MGM closed Tuesday's trading at $14.19. In Wednesday's pre-market, the stock is losing $0.45 or 3.17 percent to $13.74.
by RTT Staff Writer
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