While many Las Vegas companies, and gambling institutions are noticeably weary about the economic conditions that surround them today, MGM Resorts International Chairman Jim Murren said on Tuesday that the company is in the strongest financial position that they have been, since the financial crisis in 2008. You also went on to say that he hoped that this trend would improve, and that the company could begin to see the profits that they saw before the financial collapse.
The comment does seem to be a little bit odd given the recent announcement. The company recently announced that they lost $145.5 million in the second quarter of this year. The losses were twice that per-share of what had been estimated by Wall Street analysis, and by analysis throughout the world. However, on the heels of the announcement by the chairman, shares for the company saw the largest increase that they had seen in the last year. The company reportedly has a cash balance of $1.7 million at this time, with a total long-term debt of more than 13.4 billion. Although this may seem like a lot, the chairman did say that they seem to be a level that they were not concerned with, and was actually lower than many points they have been at throughout the company’s history.
The chief financial officer for the company,, Dan D-Arrigo also stated that they were looking to refinance more debt at lower rates. The improved balance sheet would do a lot for the company, and would allow them to make investments in other areas of the company in an effort to increase their revenue, and further the decrease of their debt.
In a conference call with investors, as well as analyst, the company said that they were looking to renovate a number of restaurants and their locations, and generally make changes that they see as beneficial in the future. MGM overall as seen in net income of $3.44 billion, for a total of $6.22 per share. Many of their earnings came from placing funds in the Macau stock exchange, and seeing excellent returns on those investments.