MGM Resorts International (NYSE:MGM) Q2 2019 Earnings Conference Call Transcript

Jul 25, 2019 • 05:00 pm ET

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MGM Resorts International (NYSE:MGM) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the MGM Resorts International Second Quarter 2019 Earnings Conference Call. Joining the call from the Company today, are Jim Murren, Chairman and Chief Executive Officer; Corey Sanders, Treasurer and Chief Financial Officer; Bill Hornbuckle President and Chief Operating Officer; and Grant Bowie CEO and Executive Director of MGM China Holdings Limited.

[Operator Instructions] After the Company's remarks, there will be a question-and-answer session. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Catherine Park. Please go ahead.

Executive
Catherine Park

Thank you, Chad. Good afternoon and welcome to the MGM Resorts International Second Quarter 2019 Earnings Call. This call is being broadcast live on the Internet at investors.mgmresorts.com and we have also furnished our press release on Form 8-K to the SEC.

On this call, we'll make forward-looking statements under the Safe Harbor provisions of the federal securities laws. Actual results may differ materially from those contemplated in these statements. Additional information concerning factors that could cause actual results to materially differ from these forward-looking statements is contained in today's press release and in our periodic filings with the SEC. Except as required by law, we undertake no obligation to update these statements as a result of new information, or otherwise.

During the call, we will also discuss non-GAAP financial measures when talking about our performance. You can find the reconciliation to GAAP financial measures in our press release and investor presentation, which are available on our website.

Finally, this presentation is being recorded. I'll now turn it over to Jim Murren.

Executive
James J. Murren

Well, thank you, Cathy. And good afternoon everyone. We had a fairly straightforward quarter with minimal deviations one way or another. We are extremely busy on executing on our MGM 2020 Plan. Our operating model transition is complete and our headcount reductions as part of this transition, is now behind us. We continue to make progress with our real estate committee, and we hope to report back to you in the coming months.

As we look to the future, we expect to benefit from quite a few tailwinds with improving property earnings, strong Las Vegas macro trends, and MGM 2020 benefiting us in the back half of this year and into next year. This gives us the confidence in our ability to hit our financial targets next year. And as an example of this confidence, we bought back 11 million shares in the second quarter alone.

So let's get into the second quarter. Came in pretty much in line with our expectations, with consolidated net revenues, up 13% and adjusted EBITDA up 9% year-over-year to $756 million. We had lower hold at our Strip properties and some one-time items that totaled about $35 million. And I guess, to best help understand the earnings power of the business, you're probably going to want to add those two numbers together.

Here in Las Vegas, results were in line with expectations, as we saw strong demand across our hotel, food