MGM Resorts International MGM
Q1 2011 Earnings Call Transcript

Transcript Call Date 05/04/2011

Operator: Good morning, and welcome to the MGM Resorts International First Quarter of 2011 Conference Call. Joining the call from the Company today are Jim Murren, Chairman and Chief Executive Officer; Bobby Baldwin, Chief Design and Construction Officer of MGM Resorts International, and President and CEO of CityCenter; Dan D'Arrigo, Executive Vice President, Chief Financial Officer and Treasurer.

Participants are in a listen-only mode. After the Company remarks, there will be a question-and-answer session.

Now, I would like to turn the call over to Mr. Dan D'Arrigo.

Daniel J. D'arrigo - EVP, CFO and Treasurer: Thank you, Conchetta, and good morning everyone, and welcome to our first quarter earnings call. This call is being broadcast live on the Internet at and a replay of the call will also be made available on our website.

This morning we furnished our press release and Form 8-K to the SEC. Before turning it over to Jim, I'd like to just read the Safe Harbor real quickly. Information we present on this call may contain forward-looking statements, including statements regarding our expected future financial performance, results of operations and financial conditions.

Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from estimates. We have based these forward-looking statements on our current expectations and assumptions and not on historical facts. In providing these forward-looking statements we are not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.

You are cautioned not to place undue reliance on forward-looking statements. Listeners should also refer to our disclosures about risks and uncertainties made in our filings with the SEC including our most recent annual report on Form 10-K.

During the call we will also discuss non-GAAP financial measures in talking about the company’s performance. You can find the reconciliation of these measures to GAAP financial measures in our press release and on our website.

Now, I would like to turn the call over to Mr. Jim Murren.

James J. Murren - Chairman and CEO: Well, thank you, Dan. I am glad I don’t have to read all that, Dan. Good morning, everyone. MGM Resorts reported a solid first quarter today and we are seeing some positive trends here in the second quarter. If you exclude the impact of last year's write down our company wide property EBITDA was up 34% year-over-year. Property EBITDA attributed to the wholly-owned operations that was up 12% year-over-year; and had our whole percentage been in the mid-point of our range, that number would have been up 25% year-over-year.

On our last quarter call we had indicated that Strip REVPAR would be up as much as 10% in the first quarter of this year, it was actually up 16%. There are really several factors attributing to the success in the quarter, but I am going to take a moment to highlight four of them.

First, we're executing on the goals of building the base of our business in the convention segment, and that is driving flow-through to the bottom line. Convention room nights represented 20% of our room mix in the first quarter. That's an increase of 5 percentage points year-over-year and the best convention mix quarter we have had since the first quarter of 2007.

Read our Earnings Call Transcript disclaimer.
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