MGM Resorts International, operator of some of the largest casino resorts in the world, including Bellagio, Mandalay Bay, MGM Grand, and Park MGM, has today issued a financial impact statement in regards to the coronavirus pandemic amid closure of properties and downturn in business activity.
The firm has provided an update for its results for ‘the first two months of the year, the impact of COVID-19 on its operations and an overview of the steps it is taking to help minimize the financial impact’.
President of MGM Resorts Bill Hornbuckle commented:
“At MGM Resorts, we are committed to doing our part to mitigate the spread of COVID-19, including the closure of our properties across the United States.”
“While this will undoubtedly have a significant negative effect on our business in the near term, we are well-positioned to emerge from the current crisis in light of our strong liquidity position and valuable asset portfolio. With the continued execution of the MGM 2020 plan, as well as the implementation of aggressive cost savings initiatives, we believe the Company will be able to manage its expenses while navigating this unprecedented event. We are currently making very difficult decisions but believe these will be in the best interest of the Company long term.”
Business highlights in a statement released earlier today include:
- Top priority remains the health and safety of employees, guests and communities in which we operate.
- MGM Resorts is proactively managing expenses, other cash flow items and its balance sheet position, including fully drawing its revolving credit facility.
- Approximately $3.9 billion in operating cash and cash investments is available to support liquidity during closures.
- Strong January and February results of operations.
MGM Resorts added a statement directly in regards to the current and ongoing coronavirus pandemic:
‘Since March 16, 2020, all of the Company’s domestic properties have been temporarily closed to the public and the Company has also experienced very high group cancellations. This is an unprecedented public health crisis and the Company believes that it must do all it can to assist in mitigating the impact of the epidemic to protect the health and safety of its employees, guests and the communities in which it operates. The Company will continue to cooperate with local health officials to assist in accelerating the containment of the COVID-19 pandemic.’