EX-99 2 p74171exv99.htm EX-99 exv99
 

         
(MGM MIRAGE LOGO)
     
     PRESS RELEASE
  FOR IMMEDIATE RELEASE     
MGM MIRAGE REPORTS RECORD SECOND QUARTER RESULTS
Las Vegas, Nevada, August 2, 2007 — MGM MIRAGE (NYSE: MGM) today reported its second quarter 2007 financial results, achieving the Company’s highest ever second quarter diluted earnings per share from continuing operations of $0.62, a 27% increase over the $0.49 per share earned in 2006. Earnings benefited from strong revenue trends, solid operating margins, and profits from sales of Tower 3 of The Signature at MGM Grand.
Net income per share on a diluted basis, including discontinued operations, was $1.22 per share compared to $0.50 per share in 2006. During the second quarter, the Company recognized a pre-tax gain of $201 million on the sale of Primm Valley Resorts and a pre-tax gain of $63 million on the sale of its Laughlin Properties – Colorado Belle and Edgewater.
Net revenues for the second quarter increased 10% to $1.9 billion, an all-time record quarter for the Company. In addition to the incremental revenue from Beau Rivage, which reopened in August 2006, the Company benefited from strong hotel revenues and the impact of new amenities at many of its Las Vegas Strip resorts.
Key results from the quarter include:
    Las Vegas Strip REVPAR1 increased 7%, which represents the sixteenth consecutive quarter of year-over-year REVPAR increases for these resorts;
 
    Occupancy at the Company’s Las Vegas Strip resorts was 97.8%, the highest occupancy level achieved since 2000;
 
    Property EBITDA2 of $686 million was also a record for the second quarter, and represented a 9% increase over the prior year;
 
    MGM Grand Las Vegas earned Property EBITDA of $108 million, a 43% increase over prior year second quarter and its best quarter ever. TI and Excalibur also earned all-time record Property EBITDA of $34 million and $38 million, respectively;
 
    The Mirage achieved record Property EBITDA for the second quarter of $59 million, a 41% increase over prior year. New York–New York also had a record second quarter Property EBITDA performance, earning $37 million;
 
    Non-gaming revenues increased 13%, 10% excluding Beau Rivage, with continued strong results from non-gaming amenities;
 
    Gaming revenues increased 5%, but decreased 5% excluding Beau Rivage due to a lower table games hold percentage. Slot revenues increased 4% at the Company’s Las Vegas Strip resorts;
 
    Beau Rivage, which was closed in the prior year quarter, earned Property EBITDA of $23 million;3
 
    Earned $63 million of profit from closings on units of Tower 3 at The Signature at MGM Grand;
 
    Successfully issued $750 million of 7.5% senior notes maturing in 2016.
In June, the Company signed a letter of intent with Kerzner International to form a 50/50 joint venture to develop a multi-billion dollar integrated resort to be located on the corner of Las Vegas Boulevard and Sahara Avenue. The Company will provide 40 acres of land, which is being valued at $20 million per acre, and Kerzner International and one of its financial partners will contribute cash equity.
MGM MIRAGE 3600 LAS VEGAS BLVD SOUTH LAS VEGAS, NV 89109 PH: 702.693.7120 FX: 702.693.8626 WWW.MGMMIRAGE.COM

1


 

The following table lists significant items which affect the comparability of the current year and prior year results (EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):
                 
Three months ended June 30,   2007   2006
Profits from The Signature at MGM Grand
  $ 0.14     $ 0.06  
Preopening and start-up expenses
    (0.03 )     (0.03 )
Property transactions, net
    (0.01 )     (0.03 )
“Our targeted capital investments, particularly in our non-gaming operations, have led to strong returns and record earnings,” said Terry Lanni, MGM MIRAGE’s Chairman and CEO. “The opening of MGM Grand Detroit and MGM Grand Macau later this year, and our recently announced joint venture project with Kerzner International, further illustrate the powerful momentum created by our accelerated growth platform.”
Net revenues increased 10%; excluding Beau Rivage, net revenues were up 4%. As a result of its continued commitment to reinvest in its resorts, the Company generated significant increases in revenues from its non-gaming operations.
Recent and continuing upgrades at Mandalay Bay, including fully remodeled standard rooms, are expected to further enhance that property’s results. In addition, the Company continues to make investments across its portfolio of resorts, most notably at Luxor and Monte Carlo, targeted at driving increased customer visitation. The Company believes that these enhancements will positively impact the Company’s results in future periods.
The new MGM Grand Detroit is expected to open in October 2007 featuring Detroit’s most luxurious hotel and casino with 400 rooms. The new resort will have a larger casino, with 4,500 slot machines compared to 2,840 in the current interim casino and 98 table games (including an eight-table poker room) versus 72. MGM Grand Detroit will include a variety of exciting food and beverage and entertainment amenities, including restaurants from world-famous chefs Wolfgang Puck and Michael Mina.
Gaming revenues increased 5%, but decreased 5% excluding Beau Rivage. Slot revenues at the Company’s Las Vegas Strip resorts increased 4% with double-digit increases at Bellagio and MGM Grand Las Vegas. MGM Grand Detroit experienced a 4% decrease in slot revenues, as a competitor recently opened its expanded casino facility.
Table games volume excluding baccarat increased 15%, 5% excluding Beau Rivage. Baccarat volume decreased 13% against a tough prior year comparison – 2006 results were up 19% on same store basis over the 2005 quarter. The overall table games hold percentage was within the normal 18-22% range in both periods, but was near the low end of the range in the current year versus the high end of the range in the 2006 quarter. In particular, Bellagio and Mandalay Bay experienced hold percentages below the Company’s normal range in the current quarter.
Rooms revenues increased 9%, 5% excluding Beau Rivage, despite having 60,000 less available rooms due to room remodeling at Mandalay Bay and the closing of Nevada Landing in March 2007. Average room rates increased 5% at the Company’s Las Vegas Strip resorts. Las Vegas Strip REVPAR increased 7%, led by double-digit percentage increases at MGM Grand Las Vegas, Excalibur, and TI. The following table shows key hotel statistics for the Company’s Las Vegas Strip resorts:
MGM MIRAGE 3600 LAS VEGAS BLVD SOUTH LAS VEGAS, NV 89109 PH: 702.693.7120 FX: 702.693.8626 WWW.MGMMIRAGE.COM

2


 

                 
    Three Months Ended
    June 30,   June 30,
    2007   2006
Occupancy %
    98 %     97 %
Average Daily Rate (ADR)
  $ 162     $ 154  
Revenue per Available Room (REVPAR)
  $ 159     $ 148  
The Company’s operating income increased 12% to $469 million, which includes $63 million of profit from closings on units of Tower 3 of The Signature at MGM Grand and $11 million of operating income from Beau Rivage. The prior year quarter included $28 million of income from Tower 1 of The Signature at MGM Grand. Excluding these items, operating income increased slightly from prior year with a margin of 22% in both quarters. Property EBITDA increased 9% to a record $686 million; excluding the above items, Property EBITDA increased slightly compared to the prior year quarter with a 33% margin, slightly below the 34% margin in the 2006 quarter.
Detailed Discussion of Certain Charges
In the second quarter of 2007 the company had minimal property transactions. In the 2006 period, net property transactions of $13 million largely related to the write-off of assets in connection with expansion projects at MGM Grand Las Vegas and Mandalay Bay and the write-off of Luxor’s investment in the Hairspray show.
Preopening and start-up expenses of $14 million in 2007 primarily related to CityCenter, MGM Grand Detroit, and MGM Grand Macau. Preopening and start-up expenses of $15 million in the 2006 quarter related primarily to CityCenter, the Love show at The Mirage, The Signature at MGM Grand, and our share of preopening related to the Borgata expansion.
Financial Position
Second quarter capital investments totaled $1.3 billion, which included $441 million for CityCenter, $81 million for the permanent MGM Grand Detroit resort, and $23 million for trailing payments on the construction of Beau Rivage. Also during the quarter, the Company purchased 34 acres of land north of Circus Circus Las Vegas for $580 million, 26 acres of which are part of the land to be contributed to the joint venture with Kerzner International. Remaining capital expenditures included spending of $54 million on room and suite remodel projects, primarily at Mandalay Bay, expenditures for corporate aircraft of $27 million, and $90 million of other routine capital expenditures on various new and upgraded amenities at the Company’s resorts.
During the quarter the Company received an additional $19 million of insurance recoveries related to Hurricane Katrina. These amounts were not recognized as income pending the final settlement of the Company’s insurance claim. At June 30, 2007, the Company had $2.0 billion of available borrowings under its senior credit facility.
“Our operating results this quarter once again prove the power of our portfolio to generate consistent cash flows,” said Jim Murren, MGM MIRAGE President, CFO and Treasurer. “More exciting is the pace of future growth. We will continue to develop strategic relationships designed to create additional value from our significant real estate portfolio. Of course, CityCenter is at the heart of our growth strategy; we are very pleased with the quality of the development and the pace of residential sales, and we continue on track for a late 2009 opening.”
MGM MIRAGE 3600 LAS VEGAS BLVD SOUTH LAS VEGAS, NV 89109 PH: 702.693.7120 FX: 702.693.8626 WWW.MGMMIRAGE.COM

3


 

MGM MIRAGE will hold a conference call to discuss its second quarter earnings results and outlook for the third quarter at 11:00 a.m. Eastern Daylight Time today. The call can be accessed live at www.companyboardroom.com or www.mgmmirage.com, or by calling 1-800-526-8531 (domestic) or 1-706-634-6528 (international). Until Thursday, August 9, 2007, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 7007679. A complete replay of the call will also be made available at www.mgmmirage.com. Supplemental detailed earnings information will also be available on the Company’s website.
 
1 REVPAR is hotel Revenue per Available Room.
2 “EBITDA” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization. “Property EBITDA” is EBITDA before corporate expense and stock compensation expense. EBITDA information is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Management uses Property EBITDA as the primary measure of the Company’s operating resorts’ performance, including the evaluation of operating personnel. EBITDA should not be construed as an alternative to operating income, as an indicator of the Company’s operating performance; or as an alternative to cash flows from operating activities, as a measure of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in EBITDA. Also, other gaming companies that report EBITDA information may calculate EBITDA in a different manner than the Company. Reconciliations of consolidated EBITDA to net income and of operating income to Property EBITDA are included in the financial schedules accompanying this release.
3 Beau Rivage earned operating income of $11 million in the second quarter of 2007, with depreciation and amortization of $12 million. Beau Rivage was closed during the prior year second quarter as a result of Hurricane Katrina.
*      *       *
     MGM MIRAGE (NYSE: MGM), one of the world’s leading and most respected hotel and gaming companies, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. In addition, the Company has major new developments under construction in Nevada, Michigan and Macau S.A.R. CityCenter is a multi-billion dollar mixed-use urban development in the heart of the Las Vegas Strip; a new MGM Grand hotel and casino complex is being built in downtown Detroit; and the Company has a 50% interest in MGM Grand Macau, a hotel-casino resort currently under construction in Macau S.A.R. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association’s Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE also has been the recipient of numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company’s website at http://www.mgmmirage.com.
     Statements in this release which are not historical facts are “forward looking” statements and “safe harbor statements” under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company’s public filings with the Securities and Exchange Commission.
Contacts:
         
Investment Community
JAMES J. MURREN
President, Chief Financial Officer & Treasurer
(702) 693-8877
  News Media
ALAN M. FELDMAN
Senior Vice President  Public Affairs
(702) 891-7147
   
MGM MIRAGE 3600 LAS VEGAS BLVD SOUTH LAS VEGAS, NV 89109 PH: 702.693.7120 FX: 702.693.8626 WWW.MGMMIRAGE.COM

4


 

MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,     June 30,     June 30,  
    2007     2006     2007     2006  
Revenues:
                               
Casino
  $ 773,931     $ 734,694     $ 1,585,870     $ 1,514,952  
Rooms
    555,107       510,861       1,104,111       1,019,259  
Food and beverage
    424,717       369,734       842,166       738,778  
Entertainment
    143,237       104,853       277,485       203,833  
Retail
    79,072       70,022       147,322       134,508  
Other
    134,760       111,091       256,830       216,886  
 
                       
 
    2,110,824       1,901,255       4,213,784       3,828,216  
Less: Promotional allowances
    (174,408 )     (140,747 )     (347,933 )     (293,340 )
 
                       
 
    1,936,416       1,760,508       3,865,851       3,534,876  
 
                       
 
                               
Expenses:
                               
Casino
    410,168       381,509       828,276       792,541  
Rooms
    143,980       135,214       285,754       267,914  
Food and beverage
    249,699       222,248       494,081       438,619  
Entertainment
    104,249       76,104       202,394       148,996  
Retail
    49,499       45,696       93,890       89,582  
Other
    76,521       58,373       148,766       113,395  
General and administrative
    302,187       256,688       587,292       506,799  
Corporate expense
    43,668       38,579       77,623       75,231  
Preopening and start-up expenses
    14,148       15,044       28,424       21,225  
Restructuring costs
          231             1,035  
Property transactions, net
    2,407       12,688       7,426       36,173  
Depreciation and amortization
    167,509       157,793       335,786       305,226  
 
                       
 
    1,564,035       1,400,167       3,089,712       2,796,736  
 
                       
 
                               
Income from unconsolidated affiliates
    96,592       57,081       137,967       92,635  
 
                       
 
                               
Operating income
    468,973       417,422       914,106       830,775  
 
                       
 
                               
Non-operating income (expense):
                               
Interest income
    5,509       3,027       8,166       5,772  
Interest expense, net
    (183,429 )     (190,776 )     (367,440 )     (383,625 )
Non-operating items from unconsolidated affiliates
    (4,714 )     (3,341 )     (9,820 )     (6,936 )
Other,net
    (804 )     (2,174 )     (3,532 )     (5,218 )
 
                       
 
    (183,438 )     (193,264 )     (372,626 )     (390,007 )
 
                       
 
                               
Income from continuing operations before income taxes
    285,535       224,158       541,480       440,768  
Provision for income taxes
    (102,637 )     (80,817 )     (195,572 )     (157,665 )
 
                       
Income from continuing operations
    182,898       143,341       345,908       283,103  
 
                       
 
                               
Discontinued operations:
                               
Income from discontinued operations
    2,615       4,589       10,461       11,071  
Gain on disposal of discontinued operations
    263,881             263,881        
Provision for income taxes
    (89,222 )     (1,536 )     (91,905 )     (3,743 )
 
    177,274       3,053       182,437       7,328  
 
                       
Net income
  $ 360,172     $ 146,394     $ 528,345     $ 290,431  
 
                       
 
                               
Per share of common stock:
                               
 
                               
Basic:
                               
Income from continuing operations
  $ 0.64     $ 0.50     $ 1.22     $ 1.00  
Discontinued operations
    0.63       0.01       0.64       0.02  
 
                       
Net income per share
  $ 1.27     $ 0.51     $ 1.86     $ 1.02  
 
                       
 
                               
Weighted average shares outstanding
    283,849       284,285       283,933       284,239  
 
                       
 
                               
Diluted:
                               
Income from continuing operations
  $ 0.62     $ 0.49     $ 1.17     $ 0.97  
Discontinued operations
    0.60       0.01       0.62       0.02  
     
Net income per share
  $ 1.22     $ 0.50     $ 1.79     $ 0.99  
     
 
                               
Weighted average shares outstanding
    295,232       292,962       295,402       292,868  
 
                       

5


 

MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,     June 30,     June 30,  
    2007     2006     2007     2006  
Las Vegas Strip
  $ 1,640,648     $ 1,556,387     $ 3,266,991     $ 3,127,991  
Other Nevada
    47,058       51,650       91,490       98,449  
MGM Grand Detroit
    110,470       113,908       226,604       229,001  
Mississippi
    138,240       38,563       280,766       79,435  
 
                       
 
  $ 1,936,416     $ 1,760,508     $ 3,865,851     $ 3,534,876  
 
                       
MGM MIRAGE AND SUBSIDIARIES
SUPPLEMENTAL DATA - PROPERTY EBITDA
(In thousands)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,     June 30,     June 30,  
    2007     2006     2007     2006  
Las Vegas Strip
  $ 531,224     $ 518,115     $ 1,080,066     $ 1,041,496  
Other Nevada
    6,080       7,067       4,084       12,642  
MGM Grand Detroit
    28,116       38,499       62,942       75,599  
Mississippi
    27,907       8,031       63,310       17,390  
Unconsolidated resorts
    92,952       55,144       131,094       89,340  
 
                       
 
  $ 686,279     $ 626,856     $ 1,341,496     $ 1,236,467  
 
                       
MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
(In thousands)
(Unaudited)
Three Months Ended June 30, 2007
                                 
    Preopening                    
    and start-up     Restructuring     Property        
    expenses     costs     transactions, net     Total  
Las Vegas Strip
  $ 7,131     $     $ 2,587     $ 9,718  
OtherNevada
                (20 )     (20 )
MGM Grand Detroit
    3,205                   3,205  
Mississippi
                603       603  
Unconsolidated resorts
    3,640                   3,640  
 
                       
 
    13,976             3,170       17,146  
Corporate and other
    172             (763 )     (591 )
 
                       
 
  $ 14,148     $     $ 2,407     $ 16,555  
 
                       
Three Months Ended June 30, 2006
                                 
    Preopening             Property        
    and start-up     Restructuring     transactions,        
    expenses     costs     net     Total  
Las Vegas Strip
  $ 11,818     $ 231     $ 9,073     $ 21,122  
Other Nevada
                (18 )     (18 )
MGM Grand Detroit
    684             3       687  
Mississippi
                13       13  
Unconsolidated resorts
    2,424                   2,424  
 
                       
 
    14,926       231       9,071       24,228  
Corporate and other
    118             3,617       3,735  
 
                       
 
  $ 15,044     $ 231     $ 12,688     $ 27,963  
 
                       

6


 

MGM MIRAGE AND SUBSIDIARIES
DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA (continued)
(In thousands)
(Unaudited)
Six Months Ended June 30, 2007
                                 
    Preopening             Property        
    and start-up     Restructuring     transactions,        
    expenses     costs     net     Total  
Las Vegas Strip
  $ 15,603     $     $ 2,865     $ 18,468  
Other Nevada
                4,610       4,610  
MGM Grand Detroit
    5,584                   5,584  
Mississippi
                601       601  
Unconsolidated resorts
    6,873                   6,873  
 
                       
 
    28,060             8,076       36,136  
Corporate and other
    364             (650 )     (286 )
 
                       
 
  $ 28,424     $     $ 7,426     $ 35,850  
 
                       
Six Months Ended June 30, 2006
                                 
    Preopening             Property        
    and start-up     Restructuring     transactions,        
    expenses     costs (credit)     net     Total  
Las Vegas Strip
  $ 15,026     $ 1,035     $ 32,566     $ 48,627  
Other Nevada
                (21 )     (21 )
MGM Grand Detroit
    1,277             1       1,278  
Mississippi
                10       10  
Unconsolidated resorts
    4,645                   4,645  
 
                       
 
    20,948       1,035       32,556       54,539  
Corporate and other
    277             3,617       3,894  
 
                       
 
  $ 21,225     $ 1,035     $ 36,173     $ 58,433  
 
                       
MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,     June 30,     June 30,  
    2007     2006     2007     2006  
EBITDA
  $ 636,482     $ 575,215     $ 1,249,892     $ 1,136,001  
Depreciation and amortization
    (167,509 )     (157,793 )     (335,786 )     (305,226 )
 
                       
Operating income
    468,973       417,422       914,106       830,775  
 
                       
 
                               
Non-operating income (expense):
                               
Interest expense, net
    (183,429 )     (190,776 )     (367,440 )     (383,625 )
Other
    (9 )     (2,488 )     (5,186 )     (6,382 )
 
    (183,438 )     (193,264 )     (372,626 )     (390,007 )
 
                       
 
                               
Income from continuing operations before income taxes
    285,535       224,158       541,480       440,768  
Provision for income taxes
    (102,637 )     (80,817 )     (195,572 )     (157,665 )
 
                       
Income from continuing operations
  $ 182,898     $ 143,341     $ 345,908     $ 283,103  
 
                       

7


 

MGM MIRAGE AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO PROPERTY EBITDA
(In thousands)
(Unaudited)
Three Months Ended June 30, 2007
                         
            Depreciation        
    Operating     and        
    income     amortization     EBITDA  
Las Vegas Strip
  $ 397,731     $ 133,493     $ 531,224  
Other Nevada
    4,490       1,590       6,080  
MGM Grand Detroit
    22,204       5,912       28,116  
Mississippi
    12,781       15,126       27,907  
Unconsolidated resorts
    92,952             92,952  
 
                 
 
    530,158       156,121       686,279  
Stock compensation
                    (11,060 )
Corporate and other
                    (38,737 )
 
                     
 
                  $ 636,482  
 
                     
Three Months Ended June 30, 2006
                         
            Depreciation        
    Operating     and        
    income     amortization     EBITDA  
Las Vegas Strip
  $ 380,645     $ 137,470     $ 518,115  
Other Nevada
    4,642       2,425       7,067  
MGM Grand Detroit
    35,262       3,237       38,499  
Mississippi
    2,534       5,497       8,031  
Unconsolidated resorts
    55,144             55,144  
 
                 
 
    478,227       148,629       626,856  
Stock compensation
                    (15,835 )
Corporate and other
                    (35,806 )
 
                     
 
                  $ 575,215  
 
                     
Six Months Ended June 30, 2007
                         
            Depreciation        
    Operating     and        
    income     amortization     EBITDA  
Las Vegas Strip
  $ 812,676     $ 267,390     $ 1,080,066  
Other Nevada
    619       3,465       4,084  
MGM Grand Detroit
    51,068       11,874       62,942  
Mississippi
    33,018       30,292       63,310  
Unconsolidated resorts
    131,094             131,094  
 
                 
 
    1,028,475       313,021       1,341,496  
Stock compensation
                    (24,640 )
Corporate and other
                    (66,964 )
 
                     
 
                  $ 1,249,892  
 
                     
Six Months Ended June 30, 2006
                         
            Depreciation        
    Operating     and        
    income     amortization     EBITDA  
Las Vegas Strip
  $ 775,996     $ 265,500     $ 1,041,496  
Other Nevada
    7,861       4,781       12,642  
MGM Grand Detroit
    69,445       6,154       75,599  
Mississippi
    6,393       10,997       17,390  
Unconsolidated resorts
    89,340             89,340  
 
                 
 
    949,035       287,432       1,236,467  
Stock compensation
                    (36,931 )
Corporate and other
                    (63,535 )
 
                     
 
                  $ 1,136,001  
 
                     

8


 

MGM MIRAGE AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
                 
    June 30,     December 31,  
    2007     2006  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 294,609     $ 452,944  
Accounts receivable, net
    333,295       362,921  
Inventories
    125,485       118,459  
Income tax receivable
          18,619  
Deferred income taxes
    69,909       68,046  
Prepaid expenses and other
    103,564       124,414  
Assets held for sale
    55,068       369,348  
 
           
Total current assets
    981,930       1,514,751  
 
           
 
               
Real estate under development
    344,994       188,433  
 
               
Property and equipment, net
    18,755,673       17,241,860  
 
               
Other assets:
               
Investments in unconsolidated affiliates
    1,124,836       1,092,257  
Goodwill
    1,269,591       1,300,747  
Other intangible assets, net
    361,811       367,200  
Deposits and other assets, net
    659,336       440,990  
 
           
Total other assets
    3,415,574       3,201,194  
 
           
 
  $ 23,498,171     $ 22,146,238  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Current liabilities:
               
Accounts payable
  $ 149,868     $ 182,154  
Construction payable
    357,263       234,486  
Income taxes payable
    104,976        
Accrued interest on long-term debt
    250,212       232,957  
Other accrued liabilities
    960,037       958,244  
Liabilities related to assets held for sale
    3,456       40,259  
 
           
Total current liabilities
    1,825,812       1,648,100  
 
           
 
               
Deferred income taxes
    3,359,077       3,441,157  
Long-term debt
    13,560,785       12,994,869  
Other long-term obligations
    421,403       212,563  
Stockholders’ equity:
               
Common stock, $.01 par value: authorized 600,000,000 shares,
issued 365,720,069 and 362,886,027 shares and
outstanding 284,243,042 and 283,909,000 shares
    3,657       3,629  
Capital in excess of par value
    2,933,892       2,806,636  
Treasury stock, at cost: 81,477,027 and 78,977,027 shares
    (1,771,707 )     (1,597,120 )
Retained earnings
    3,164,334       2,635,989  
Accumulated other comprehensive income
    918       415  
 
           
Total stockholders’ equity
    4,331,094       3,849,549  
 
           
 
  $ 23,498,171     $ 22,146,238  
 
           

9