MGM Resorts International

Good afternoon and welcome to the MGM Resorts International Third Quarter 2024 Earnings Conference Call. Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President, Corey Sanders, Chief Operating Officer, Jonathan Helpyard, Chief Financial Officer and Treasurer, Kenneth Bang, Executive Director and President of MGM China Holdings, Hubert Wong, COO and President of MGM China Holdings, and Andrew Chapman, Director of Investor Relations. Participants are in listen-only mode. After the company's remarks, there will be a question and answer session. In fairness to all participants, please limit yourself to one question and one follow-up. Please note, this conference is being recorded. Now, I would like to turn the call over to Andrew Chapman. Please go ahead.

Good afternoon. Welcome to the MGM Resorts International third quarter 2024 earnings call. This call is being broadcast live on the internet at investors.mgmresorts.com. We've also furnished our press release on Form 8K to the SEC. On this call, we will 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 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 of GAAP financial measures in our press release and investor presentation, which are available on our website. Finally, this presentation is being recorded. I will now turn it over to Jonathan Alkert.

Thanks, Andrew. Good afternoon, and thanks, everyone, for joining us today. I'm happy to report that MGM Resorts posted record third quarter consolidated net revenues and record third quarter revenue and adjusted property EBITDA at MGM China. Additionally, we saw record ADRs in Las Vegas and record occupancy at our regional resorts. These outstanding results are a testament to our MGM Resorts colleagues worldwide who are committed to providing outstanding service to our guests every day. Thank you for our dedication, hard work, and commitment to operational excellence. All of us on the senior leadership team are proud of what we continue to achieve together. As a team, we continue to raise the bar here in Las Vegas and in our regional properties. In fact, MGM has nearly doubled its EBITDA in Las Vegas since 2019, and has grown regional EBITDA by almost 20% over that time period. We've improved our properties and operations to attract new sports and entertainment drivers, and as a result, our business is in a stronger position than ever. Turning to the details of our results first in Las Vegas, revenues were up 1%, while adjusted property EBITDA was up 2%. We grew month to month during the quarter, with many of our key metrics demonstrating strength, including a 3% increase in ADR, an occupancy increase of 250 basis points, and 4% growth in slot handle. The Las Vegas properties this quarter benefited from $37 million in business interruption proceeds related to the cybersecurity incident a year ago. In the fourth quarter here in Las Vegas, we're encouraged by the stability of demand that we're seeing. We're also gearing up for year two of F1, which, while not as large as last year's event, still brings significant economics to MGM's during what has historically been one of the slowest weekends of the year. No more. Within our operating model, our team is focused on driving organic growth through ongoing cost review and strategic customer pricing initiatives. These activities will combine to further bolster our organic growth story. Now moving to the regional properties, we grew revenues by 3%, while adjusted property EBITDA increased by 2%, driven by strong slot handle and growth in rated days, are best indicators of overall visitation to the properties. Our regional properties this quarter benefit from $15 million in business interruption insurance proceeds. The insurance proceeds we received in the quarter, totaling $52 million, we believe represent less than half of the funds we'll collect ultimately. In Macau, MGM China achieved a record-breaking third quarter with net revenues increasing 14% year-over-year and adjusted property EBITDA rising 5%, resulting in a 26% margin. Our market share for the quarter was 15%. Given our outstanding performance this year, MGM China announced a special dividend, bringing total dividends to MGM Resorts to approximately $200 million in 2024. In digital, I'm very encouraged by BetMGM's third quarter performance. During Q3, we achieved profitability again, record iGaming results, and a 70% increase in first-time depositors while stabilizing market share. I'll conclude, as always, with a few thoughts on our free cash flow algorithm. Through the first nine months of the year, our revenues have grown by 9%, generating $1.7 billion of cash from operations. With capital expenditures of approximately $750 million, this results in free cash flow of about $944 million. Looking ahead, we plan to build upon this strong foundation with organic growth from our resort operation, building on our longstanding track record of outpacing the escalators on our fixed rent, incremental value from a commercial gaming license in New York, significant value generation from our online operations, both in North America through BetMGM here in the U.S., and globally through MGM International Digital, fixed-rate interest with no near-term maturities, and relatively flat maintenance capital, all augmented by opportunistic repurchasing of our shares. Bill, over to you.