http://www.morningstar.com/earnings/41895491-mgm-resorts-international-mgm-q2-2012.aspx

MGM Resorts International MGM
Q2 2012 Earnings Call Transcript

Transcript Call Date 08/07/2012

Operator: Good morning, and welcome to the MGM Resorts International Second Quarter 2012 Earnings 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; Grant Bowie, Chief Executive Officer of MGM China Holdings Limited. Participants are in a listen-only mode. After the Company's 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, Mackenzie, and good morning everyone, and welcome to our second quarter earnings call. This call is being broadcast live on the Internet at www.mgmresorts.com, and a replay of the call will be available later on today on our website. This morning, we furnished our press release on Form 8-K with the SEC as well.

Before turning it over to Jim, on this call we will make forward-looking statements under the safe harbor provisions of the federal securities laws. Actual results might differ materially from those projected in the forward looking statements. Additional information concerning factors that could cause actual results to materially differ from those in these forward looking statements is contained in today's press release and in our periodic filings with the SEC including our most recent Form 10-K.

During the call, we will also discuss non-GAAP financial measures and talking about the Company's performance. You can find the reconciliation of these measures to GAAP financial measures in our press release, which is available on our website. Finally, please note that the presentation is being recorded.

With that, I'll now turn it over to Jim.

James J. Murren - Chairman and CEO: Thanks, Dan and good morning everyone. This morning we reported a solid second quarter results led by wholly-owned domestic resorts adjusted property EBITDA growth of 4% and record EBITDA for both CityCenter and Macau. These results were achieved despite the economic headwinds. All companies are facing in these volatile times. Our operating teams remained quite focused on maximizing our revenue and keeping cost in check to drive cash flows throughout our portfolio of properties. And at the same time, we continue to reinvest in our properties for the future and constantly introduce new and exciting offerings for the guests.

During the quarter, we observed a pocket of softness in the U. S. consumer beginning in mid-May. This was reflected in spend particularly in domestic table games, entertainment and in retail. We also experienced slower than anticipated in the year for the year convention bookings during that brief period. Based on these current trends, we expect RevPAR in the third quarter will be slightly down, but despite these headwinds we were able to grow our EBITDA, our RevPAR and our market share during the second quarter. The softness we experienced during the second quarter for convention bookings in the year -- for the year has not impacted long-term bookings.

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