MGM GRAND REPORTS FIRST QUARTER 1992 RESULTS
MGM GRAND REPORTS FIRST QUARTER 1992 RESULTS BEVERLY HILLS, Calif., April 22 /PRNewswire/ -- MGM Grand, Inc.
(NYSE: MGG) today reported its operating results for the first quarter ended March 31, 1992.
The company realized net income of $44,000 compared to a net loss of $6.2 million for the first quarter of 1991. 1992 results exclude the operations of Desert Inn, which was sold in December 1991 to Tracinda Corporation, the company's principal shareholder. The operations of the company's airline subsidiary, MGM Grand Air, improved from 1991. Total revenues rose to $14.2 million compared to $11.5 million in 1991, and charter revenues more than doubled. However, scheduled revenues declined by about 4 percent due to the continuing effects of the recession. Consolidated interest income improved during the quarter. The company is proceeding with the construction of the MGM Grand Hotel and Theme Park in Las Vegas which is scheduled to open in early 1994. The MGM Grand Hotel and Theme Park will be the largest hotel in the U.S. and the first Las Vegas theme park. As previously announced on April 3, the company has filed amended terms with the SEC for its public offering of First Mortgage Notes by its subsidiary, MGM Grand Hotel Finance Corp., and has accepted a letter of commitment from Bank of America for a $60 million working capital loan. The obligation to lend is subject to the fulfillment of certain conditions, including execution of definitive agreements. The company also will seek $50 million in capital leases for hotel and casino equipment. An aggregate of $430 million in First Mortgage Notes, comprised of $200 million of Notes due 1999 and $230 million of Notes due 2002, with expected terms of seven and ten years, will be offered to the public. Bear Stearns & Co. Inc. is the lead manager, and Donaldson, Lufkin & Jenrette; B.T. Securities Corporation (a subsidiary of Bankers Trust Company); and Oppenheimer & Co. Inc., are co-managers. In addition, the company's principal shareholder, Tracinda Corporation, has agreed to purchase up to $100 million of additional equity by means of a rights offering to MGM Grand common stockholders. The rights offering (the terms of which have yet to be determined) will be completed before Feb. 15, 1993. Infusion of the additional equity will be assured by a $100 million letter of credit from Tracinda. The rights offering will be made only by means of a prospectus. A registration statement relating to the First Mortgage Notes has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities' laws of any such state. MGM Grand, Inc. is an entertainment, hotel and travel company headquartered in Beverly Hills. MGM GRAND, INC. & SUBSIDIARIES Summary of Results (in thousands of dollars, except share data -- unaudited) Periods ended Three months March 31 1992 1991(A) Revenues: Hotel/Casino $ --- $ 23,925 Airline 14,194 11,506 Total 14,194 35,431 Expenses: Cost of sales 9,570 28,904 Selling, general & admin. 4,918 9,097 Depreciation & amortization 1,740 3,643 Total 16,228 41,644 Operating income (loss) (2,034) (6,213) Non-operating income (expense): Interest income & other, net 2,101 56 Interest expense --- (3) Income (loss) before income taxes 67 (6,160) Provision for income taxes 23 --- Net income (loss) $ 44 $ (6,160) Per share of common stock: Net income (loss) $ --- $ (.25) Avg. shares outstanding 41,017,353 24,983,335 (A) The 1991 period includes operations of the Desert Inn which was sold in December 1991. -0- 4/22/92 /CONTACT: Joseph Murphy, 310-271-3793, or Shari Nakakura, 213-629-4974, for the MGM Grand/ (MGG) CO: MGM Grand Inc. ST: California IN: LEI SU: ERN
SH -- NY027 -- 1127 04/22/92 09:57 EDT
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|Date:||Apr 22, 1992|
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