Las Vegas Sun NewsMGM Resorts execs optimistic, despite $1.22 billion 4th-quarter loss
CEO Jim Murren says company open to selling Crystals mall at CityCenter
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20 February 2013
8:30 a.m.
Updated
20 Feb. 2013 11:11 a.m.
Executives at MGM Resorts International say that despite fourth-quarter losses reported today, the company has positioned itself to take advantage of a brightening economy this year and in 2014. “We’re off to a very solid start in 2013,” MGM CEO Jim Murren said in a conference call with investors this morning. “The Super Bowl was a great event for us in Las Vegas, and we’re still seeing people here celebrating Chinese New Year. The Year of the Snake appears to be a really good one for us.” Murren and his management team listed a series of projects and events in ...
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Once again, spin it 9 ways to Sunday...MGM will NOT overcome these losses. Macau, Singapore, Detroit, Backwater USA, whatever.
The debt is astronomical and the gambler of yesteryear is no longer around the $25 table. He's now playing $3 blackjack downtown or 25 cent roulette at the El Cortez.
That's $13 million PER DAY being lost. Explain to me how that gets turned around without shedding debt thru a reorganization (bankruptcy). In the meantime those ginormous executive salaries to Murren and Baldwin keep getting paid. I feel bad for investors.
Dump Baldwin. He is perpetuating this situation.
You can radiate sunshine and sing zip-a-dee-do-dah all day long about how great things are at Crystals and how you will "try new things" to better the situation. Baldwin, you've tried new things. Nothing is working. Time for you to go.
Read the articles in BusinessWeek about Macao gambling--it's different than LV. Apparently they are also planning some big luxury casinos in the Phillipines and Vietnam because the governments need the tax revenue. Good grief--MGM lost $1 Billion on revenues of $2 B--there's no way to spin that. It's a disaster.
http://www.businessweek.com/articles/201...
+1 artswanson
Correction, completely agree with all prior posts.
Have any of you ever read a balance sheet or 8K? MGM has continued to deleverage their debt. They recently reorganized their credit facility to net an interest expense savings of over $200M a year perpetually. All the while maintaining their commitment and not reorganizing (filing BK). Murren has guided that company through the toughest recession this country has seen. I believe the results will show soon. Try doing a little research and learn something before posting such comments.
You would think by the posts here that many of you run Billion Dollar Casino/Hotel companies. Have a feeling no one here has done either.
This company was around long before any of you posting here and will be around doing just fine long after you are gone.
Most of this was one time write downs. Not cash loses. MGM company will be just fine.
It doesn't matter what they "deleveraged". It doesn't matter that they saved 200m thru a credit facility. They are LOSING millions per day and no amount of "internal restructuring" will turn that into a profit. They simply have too much debt that cannot be satisfied thru revenues.
This company was around just fine until they decided to go on a spending spree buying up just about every strip casino and sinking 8+ billion into City Center. Kirk was an awesome visionary but he got burned by buying Mandalay and Mirage at a premium. Simply put, it's not sustainable. StationCasinos found out the hard way.
The bleeding will continue next Q, and next Q...and next Q.
When is anyone going to hold Murren accountable for the deplorable state he's got the company in?? Anyone who spends $9 billion on a project even the biggest MGM fan would call a failure, plunge the company into unbelievable debt and then fumble the company's China fortunes for 5 years should not be leading that company. It's like the US economy and bound to fail.