Join        Login             Stock Quote

MGM Resorts (MGM) Posts Wider 4Q Loss On Impairment Charges

 February 20, 2013 10:09 AM

(By Balaseshan) MGM Resorts International (NYSE: MGM) reported a wider quarterly loss due to Las Vegas Strip land and Atlantic City land impairment charges, as well as loss on retirement of long-term debt.

Loss for the fourth quarter widened to $1.22 billion or $2.50 per share from $113.69 million or $0.23 per share in the previous year quarter. The latest quarter results included a loss on retirement of long-term debt.

The results included a $366 million impairment charge related to its land holdings on the north end of the Las Vegas Strip and a $167 million impairment charge related to land holdings in Atlantic City.

[Related -Stock Upgrades And Downgrades: AWK, BLK, ICUI, MGM, RAX, TSLA, VSAT]

Revenue marginally declined 0.1% to $2.295 billion.

Analysts, on average, polled by Thomson Reuters had expected a loss of $0.22 per share on revenue of $2.31 billion for the fourth quarter.

Casino revenue related to wholly owned domestic resorts was up 1%. Rooms revenue increased 2% with Las Vegas Strip REVPAR up 1%.

MGM China earned net revenue of $731 million, a 2% increase over the prior year quarter driven by increases in volume for main floor table games and slots of 13% and 37%, respectively.

The company's cash balance at December 31, 2012 was $1.5 billion, which included about $952 million of cash and cash equivalents related to MGM China.

On February 20, MGM China's board announced a special dividend of $500 million, which will be paid to shareholders of record as of March 11 and distributed on or about March 18. MGM Resorts International will receive $255 million, representing its 51% share of the dividend.

[Related -Mad Dash For Yelp Options As Shares Soar]

MGM is trading up 1.88% at $12.98 on Wednesday. The stock has been trading between $8.83 and $14.85 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageHas Warren Buffett Found The Best Investment In Oil?

Shares of oil stocks plunged again as the price of West Texas Intermediate wiped out nearly half of its read on...

article imageDemand For Safe-Haven Bonds Surged Last Week

The crowd piled into investment-grade bonds last week as economic worries triggered an exodus out of risky read on...

article imageThoughts on MetLife and AIG

In some ways, this is a boring time in insurance investing.  A lot of companies seem cheap on a book and/or read on...

article imageA 2016 Recession Would Be Different

If the US or the Eurozone entered a recession this year, a few macroeconomic variables would look very read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Melco Crown: Keep Gambling On Macau
More Articles on: China

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.