MGM Resorts ends Q3 with $1.8 billion of cash, $12.8 billion of debt

By Lisa Kerner

Charlotte, N.C., Oct. 29 – MGM Resorts International continues to remain focused on deleveraging its balance sheet “through a combination of reducing debt and increasing cash flows,” according to executive vice president and chief financial officer Dan D’Arrigo, speaking on the company’s third-quarter conference call.

The company ended its third quarter on Sept. 30 with cash and cash equivalents of $1.8 billion, which included $808 million at MGM China, and long-term debt of $12.8 billion.

MGM had $2.7 billion of borrowings outstanding under its $3.9 billion senior secured credit facility and $1.6 billion outstanding under the $3 billion MGM China credit facility, according to the Las Vegas-based gaming and lodging company’s earnings news release.

In July, MGM repaid its $875 million 6.625% senior notes at maturity with cash on hand.

Financial highlights

Third-quarter net revenue at MGM’s wholly owned domestic resorts was up 4% year over year at $1.6 billion, and the resorts earned adjusted property EBITDA of $411 million, a 25% increase over the prior-year period.

MGM China’s net revenue was $529 million and adjusted EBITDA was $128 million, decreases of 33% and 40%, respectively, compared to the prior-year quarter.

The company had diluted earnings per share for the third quarter of $0.12, compared to a diluted loss per share of $0.04 in the year-ago quarter.

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