MGM GRAND REPORTS YEAR 1991 RESULTS
MGM GRAND REPORTS YEAR 1991 RESULTS BEVERLY HILLS, Calif., March 4 /PRNewswire/ -- MGM Grand, Inc.
(NYSE: MGG) today reported its operating results for the year ending Dec. 31, 1991.
For the year ended Dec. 31, 1991, the net loss was reduced to $12.2 million ($.40 per share) from $23.6 million ($.93 per share). Operating cash flow (operating income before interest, taxes and depreciation) improved by $22.2 million. The operating results exclude the net gain of $11.7 million on the sale of the Desert Inn which was sold in December 1991 for $130 million to Tracinda Corporation, the principal stockholder of the company. The continuing economic recession impacted the results of both the hotel/casino and airline operations. Although Desert Inn 1991 revenues declined to $99.5 million from $114.1 million in 1990, operating cash flow improved by $13.6 million because of cost reductions initiated in early 1991, including a significant reduction in bad debt expenses. Total hotel/casino revenues in 1990 were $141.9 million and included the Marina Hotel which was closed in November 1990 to allow for site preparation of the new MGM Grand Hotel and Theme Park. MGM Grand Air's revenues were $47.3 million for the year, compared to $34.6 million in 1990. Revenue increases reflect a full year of expanded upscale coach service and charter revenues which more than doubled. Operating cash flow improved by $9.5 million, and was positive for the year. The company is proceeding with the construction of the MGM Grand Hotel and Theme Park in Las Vegas. Formal ground breaking occurred in October 1991 and completion is expected in early 1994. The net proceeds from the sale of the Desert Inn will be applied to the cost of the project. In January 1992, MGM Grand Air became a partner in the United Airlines Mileage Plus frequent flyer program. Mileage Plus members can now earn travel awards on United Airlines while flying on MGM Grand Air. The company will hold its Annual Meeting on May 14, 1992 at the Desert Inn in Las Vegas. The date of record for shareholders is March 20, 1992. MGM Grand, Inc. is an entertainment, hotel and travel company headquartered in Beverly Hills. The company owns and operates MGM Grand Air and MGM Grand Hotel which is developing the new hotel and theme park. MGM GRAND, INC. & SUBSIDIARIES Summary of results (In thousands, except per share data) Year ended Dec. 31: 1991 1990(A) Revenues Hotel/Casino $99,546 $141,906 Airline 47,317 34,640 Total 146,863 176,546 Expenses Cost of sales 101,871 141,283 Selling, general & admin. 45,549 55,704 Depreciation & amortization 14,353 13,714 Total 161,773 210,701 Operating income (loss) (14,910) (34,155) Non-operating income (expense) Interest income & other, net 2,712 484 Interest expense, net (22) (939) Total 2,690 (455) Income (loss) before income taxes (12,220) (34,610) Provision (benefit) for income taxes -- (11,050) Net income (loss) ($12,220) ($23,560) Per share of common stock: Net income (loss) ($0.40) ($0.93) Average number of shares 30,516 25,419 (A) -- Includes operations of the Marina Hotel from Jan. 5, 1990, the date of acquisition, until Nov. 30, 1990, when it was closed to allow preparation for construction of the new MGM Grand Hotel and Theme Park. Three months ended Dec. 31: 1991 1990 Revenues Hotel/Casino $20,183 $30,734(A) Airline 14,203 11,704 Total 34,386 42,438 Expenses Cost of sales 18,458 34,658 Selling, general & admin. 18,887 20,601 Depreciation & amortization 3,435 4,136 Total 40,780 59,395 Operating income (loss) (6,394) (16,957) Non-operating income (expense) Interest income & other, net 1,730 (232) Interest expense, net (9) (737) Total 1,721 (969) Income (loss) before income taxes (4,673) (17,926) Provision (benefit) for income taxes -- (5,211) Net income (loss) ($4,673) ($12,715) Per share of common stock: Net income (loss) ($0.10) ($0.50) Average number of shares 41,017 25,253 (A) -- Includes operations of the Marina Hotel until it was closed to allow preparation for the construction of the new MGM Grand Hotel and Theme Park. -0- 3/4/92 /CONTACT: Joseph Murphy of MGM Grand, 213-271-3793, or Nancy Fletcher for MGM Grand, 213-629-4974/ (MGG) CO: MGM Grand Inc. ST: California IN: CNO LEI SU: ERN
TS -- NY048 -- 4922 03/04/92 11:35 EST
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|Date:||Mar 4, 1992|
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