Melco Crown Entertainment Announces Unaudited Results for the Fourth Quarter and Full Year Ended December 31, 2016 and Declares Quarterly Dividend

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| Source: Melco Crown Entertainment Limited

MACAU, Feb. 16, 2017 (GLOBE NEWSWIRE) -- Melco Crown Entertainment Limited (Nasdaq:MPEL) (“Melco Crown Entertainment” or the “Company” or “we”), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2016.

Net revenue for the fourth quarter of 2016 was US$1,192.9 million, representing an increase of approximately 13% from US$1,058.0 million for the comparable period in 2015. The increase in net revenue was primarily attributable to the net revenue generated by a fully-operating Studio City, which started operations in October 2015, and the increase in casino revenues at City of Dreams Manila, partially offset by lower casino revenues at City of Dreams in Macau and Altira Macau.

On a U.S. GAAP basis, operating income for the fourth quarter of 2016 was US$116.0 million, compared with operating loss of US$17.8 million in the fourth quarter of 2015.

Adjusted property EBITDA(1) was US$304.3 million for the fourth quarter of 2016, as compared to Adjusted property EBITDA of US$236.4 million in the fourth quarter of 2015, representing an increase of 29%. This year-on-year improvement in Adjusted property EBITDA was mainly attributable to the contribution from a fully-operating Studio City and increase in casino revenues at City of Dreams Manila, partially offset by lower contribution from Altira Macau.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the fourth quarter of 2016 was US$43.3 million, or US$0.09 per ADS, compared with a net loss attributable to Melco Crown Entertainment of US$12.3 million, or US$0.02 per ADS, in the fourth quarter of 2015. The net loss attributable to noncontrolling interests during the fourth quarter of 2016 of US$26.8 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “We delivered a strong set of results in the fourth quarter of 2016, highlighted by record mass table gross gaming revenues in Macau and a 29% year-on-year increase in group-wide Adjusted property EBITDA.

“Our Flagship property in Macau, City of Dreams, generated Adjusted property EBITDA of approximately US$190 million, an increase of over 10% compared to the prior quarter, despite an increase in supply in Macau, highlighting the property’s ongoing position as a leader in the premium gaming segments in Macau.

“Studio City’s mass table games revenues continued to expand, increasing almost 10% from the prior quarter which, combined with the rolling chip operations that began in November 2016, delivered a strong improvement in underlying earnings. While the recently opened rolling chip operations broaden the property’s gaming proposition, Studio City’s core focus remains on its mass market offerings which are ideally aligned to the demand landscape in Macau.

“Macau continues to show signs of a broader recovery, with January 2017 representing the sixth month in a row of year-on-year increases in Macau’s gross gaming revenues. We believe that Macau’s long term success relies on its ability to cater to the rapidly evolving demands of leisure and entertainment seekers from around the region, most notably from Mainland China. Our world-class portfolio of properties in Macau gives us a unique ability to cater to a wider spectrum of gaming customers, including mainstream mass, premium mass, junket and direct VIP customers, while also offering tourists a vast non-gaming and entertainment proposition which is unrivalled in Macau.

“City of Dreams Manila, our integrated resort in the fast growing gaming market of the Philippines, continues to increase its gaming market share by delivering another strong quarter fueled by revenue growth across all gaming segments. The improvement in gaming operations together with cost efficiencies identified through our company-wide focus on managing reinvestment and other operating expenses, resulted in our Adjusted property EBITDA in Manila increasing by 224% on a year-on-year basis.

“As previously announced, we have changed our ordinary dividend policy to one targeting a quarterly cash dividend payment of US$0.03 per ordinary share (equivalent to US$0.09 per American depositary share (“ADS”), each representing three ordinary shares) of the Company, providing a larger, stable and more predictable ordinary dividend payout. In addition, we recently announced and paid an approximately US$650 million special dividend to shareholders, highlighting our continued commitment to returning surplus capital to shareholders, while retaining significant financial flexibility to pursue other value-accretive development opportunities.

“Our Company has undergone an exciting transformation over the past several months. Melco International Development Limited, a company of which I am Chairman and Chief Executive Officer, has completed the acquisition of an additional 13.4% of the shares of Melco Crown Entertainment earlier today, increasing its ownership in the Company to approximately 51.3%. This transaction highlights the steadfast confidence and commitment I have in the markets where we operate, the development and expansion opportunities that are available to our Company, the positioning of our world-class properties and, most importantly, our tremendous employees and current management team that continue to deliver a level of service and experience which underpins our Company’s success.”

City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2016, net revenue at City of Dreams was US$661.1 million compared to US$669.0 million in the fourth quarter of 2015. City of Dreams generated Adjusted EBITDA of US$188.7 million in the fourth quarter of 2016, representing a decrease of 2% compared to US$192.2 million in the comparable period of 2015. The decline in Adjusted EBITDA was primarily a result of lower mass market table games revenues and rolling chip revenues, partially offset by an increase in non-gaming revenue mainly driven by the opening of the new retail precinct in 2016.

Rolling chip volume totaled US$11.1 billion for the fourth quarter of 2016 versus US$10.2 billion in the fourth quarter of 2015. The rolling chip win rate was 2.6% in the fourth quarter of 2016 versus 2.8% in the fourth quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop decreased to US$1,109.9 million compared with US$1,124.9 million in the fourth quarter of 2015. The mass market table games hold percentage was 36.3% in the fourth quarter of 2016 compared to 37.1% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2016 was US$1,051.8 million, compared with US$1,071.1 million in the fourth quarter of 2015. The gaming machine win rate was 3.9% in the fourth quarter of 2016 versus 3.4% in the fourth quarter of 2015.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2016 was US$79.2 million, compared with US$67.6 million in the fourth quarter of 2015.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2016, net revenue at Altira Macau was US$103.3 million compared to US$142.0 million in the fourth quarter of 2015. Altira Macau generated Adjusted EBITDA of US$3.3 million in the fourth quarter of 2016 compared with Adjusted EBITDA of US$9.7 million in the fourth quarter of 2015. The year-on-year decrease in Adjusted EBITDA was primarily a result of lower rolling chip revenues.

Rolling chip volume totaled US$4.4 billion in the fourth quarter of 2016 versus US$4.8 billion in the fourth quarter of 2015. The rolling chip win rate was 2.7% in the fourth quarter of 2016 versus 3.3% in the fourth quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$112.8 million in the fourth quarter of 2016, a decrease from US$133.4 million generated in the comparable period in 2015. The mass market table games hold percentage was 19.2% in the fourth quarter of 2016 compared with 19.4% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2016 was US$7.9 million, compared with US$7.7 million in the fourth quarter of 2015. The gaming machine win rate was 6.8% in the fourth quarter of 2016 versus 5.8% in the fourth quarter of 2015.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2016 was US$7.1 million compared with US$7.6 million in the fourth quarter of 2015.

Mocha Clubs Fourth Quarter Results

Net revenue from Mocha Clubs totaled US$28.9 million in the fourth quarter of 2016 as compared to US$32.0 million in the fourth quarter of 2015. Mocha Clubs generated US$5.4 million of Adjusted EBITDA in the fourth quarter of 2016 compared with US$6.4 million in the same period in 2015.

Gaming machine handle for the fourth quarter of 2016 was US$614.4 million, compared with US$669.6 million in the fourth quarter of 2015. The gaming machine win rate was 4.6% in the fourth quarter of 2016 versus 4.7% in the fourth quarter of 2015.

Studio City Fourth Quarter Results

For the quarter ended December 31, 2016, net revenue at Studio City was US$246.2 million compared to US$123.2 million in the fourth quarter of 2015. Studio City generated Adjusted EBITDA of US$56.7 million in the fourth quarter of 2016 compared with Adjusted EBITDA of US$12.6 million in the fourth quarter of 2015. The year-on-year improvement in Adjusted EBITDA was primarily a result of having full operations in the fourth quarter of 2016, since Studio City started operations on October 27, 2015 and began rolling chip operations in November 2016.

Rolling chip volume totaled US$1.3 billion for the fourth quarter of 2016. The rolling chip win rate was 1.4% in the fourth quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$683.2 million compared with US$365.3 million in the fourth quarter of 2015. The mass market table games hold percentage was 26.9% in the fourth quarter of 2016 compared to 22.4% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2016 was US$519.3 million, compared with US$264.9 million in the fourth quarter of 2015. The gaming machine win rate was 3.9% in the fourth quarter of 2016 versus 4.9% in the fourth quarter of 2015.

Total non-gaming revenue at Studio City in the fourth quarter of 2016 was US$53.3 million, compared with US$37.8 million in the fourth quarter of 2015.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2016, net revenue at City of Dreams Manila was US$144.7 million compared to US$80.9 million in the fourth quarter of 2015. City of Dreams Manila generated Adjusted EBITDA of US$50.2 million in the fourth quarter of 2016 compared to US$15.5 million in the comparable period of 2015. The year-on-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues.

Rolling chip volume totaled US$2.1 billion for the fourth quarter of 2016 versus US$1.3 billion in the fourth quarter of 2015. The rolling chip win rate was 3.5% in the fourth quarter of 2016 versus 2.1% in the fourth quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$149.0 million for the fourth quarter of 2016, compared with US$106.3 million in the fourth quarter of 2015. The mass market table games hold percentage was 27.8% in the fourth quarter of 2016 compared to 27.5% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2016 was US$671.3 million, compared with US$420.9 million in the fourth quarter of 2015. The gaming machine win rate was 5.9% in the fourth quarter of 2016 versus 6.2% in the fourth quarter of 2015.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2016 was US$28.1 million, compared with US$25.0 million in the fourth quarter of 2015.

Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2016 were US$95.3 million, which mainly included interest expenses, net of capitalized interest, of US$56.2 million, loss on extinguishment of debt of US$17.4 million, other finance costs of US$13.3 million and costs associated with debt modification of US$8.1 million. We recorded US$7.7 million of capitalized interest during the fourth quarter of 2016, primarily relating to the development of Morpheus at City of Dreams.

The year-on-year increase of US$35.4 million in net non-operating expenses was primarily a result of loss on extinguishment of debt arising from the refinancing of the Studio City project facility and lower capitalized interest in the current quarter.

Depreciation and amortization costs of US$137.5 million were recorded in the fourth quarter of 2016, of which US$14.3 million was related to the amortization of our gaming subconcession and US$5.7 million was related to the amortization of land use rights.

Financial Position and Capital Expenditure

Total cash and bank balances as of December 31, 2016 totaled US$2.0 billion, including US$210.8 million of bank deposits with original maturities over three months and US$39.3 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the fourth quarter of 2016 was US$3.7 billion.

Capital expenditures for the fourth quarter of 2016 were US$78.9 million, which predominantly related to various projects at City of Dreams, including Morpheus.

Full Year Results

For the year ended December 31, 2016, Melco Crown Entertainment reported net revenue of US$4.5 billion versus US$4.0 billion in the prior year. The year-on-year increase in net revenue was primarily attributable to the net revenue generated by a fully-operating Studio City and the increase in casino revenues at City of Dreams Manila, partially offset by lower casino revenues at City of Dreams in Macau and Altira Macau.

On a U.S. GAAP basis, operating income for 2016 was US$363.1 million, compared with operating income of US$98.4 million for 2015.

Adjusted property EBITDA for the year ended December 31, 2016 was US$1,087.5 million, as compared with Adjusted property EBITDA of US$932.0 million in 2015. The 17% year-on-year improvement in Adjusted property EBITDA was mainly attributable to the contribution from a fully-operating Studio City and increase in casino revenues at City of Dreams Manila, partially offset by lower contribution from City of Dreams in Macau and Altira Macau. 

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for 2016 was US$175.9 million, or US$0.35 per ADS, compared with a net income attributable to Melco Crown Entertainment of US$105.7 million, or US$0.20 per ADS, for 2015. The net loss attributable to noncontrolling interests for 2016 of US$109.0 million was related to Studio City and City of Dream Manila.

Shareholders and potential investors in Melco Crown Entertainment are advised not to place undue reliance on the unaudited earnings and financial information of the Company for the fourth quarter and year ended December 31, 2016. Shareholders and potential investors of the Company are advised to exercise caution in dealing in the securities of the Company.

Dividend Declaration

On February 16, 2017, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.03 per share (equivalent to US$0.09 per ADS) for the fourth quarter of 2016 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about Wednesday, March 15, 2017 to our shareholders whose names appear on the register of members of the Company at the close of business on Monday, February 27, 2017, being the record date for determination of entitlements to the Quarterly Dividend.

Conference Call Information

Melco Crown Entertainment will hold a conference call to discuss its fourth quarter 2016 financial results on Thursday, February 16, 2017 at 8:30 a.m. Eastern Time (9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

US Toll Free 1 866 519 4004
US Toll / International 1 845 675 0437
HK Toll 852 3018 6771
HK Toll Free 800 906 601
UK Toll Free 080 8234 6646
Australia Toll 61 290 833 212
Australia Toll Free 1 800 411 623
Philippines Toll Free 1 800 1651 0607 
   
Passcode MPEL

An audio webcast will also be available at http://www.melco-crown.com.

To access the replay, please use the dial-in details below:

US Toll Free 1 855 452 5696
US Toll / International 1 646 254 3697
HK Toll Free 800 963 117
Philippines Toll Free 1 800 1612 0166
   
Conference ID 69738317

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) growth of the gaming markets and visitations in Macau and the Philippines, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and other governmental approvals and regulations, and (vi) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

(1) "Adjusted EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation, net gain on disposal of property and equipment to Belle Corporation and other non-operating income and expenses. "Adjusted property EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, net gain on disposal of property and equipment to Belle Corporation, Corporate and Others expenses and other non-operating income and expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted EBITDA and adjusted property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents adjusted EBITDA and adjusted property EBITDA because they are used by some investors as ways to measure a company's ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported adjusted EBITDA and adjusted property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, adjusted EBITDA and adjusted property EBITDA should not be considered as alternatives to operating income as indicators of the Company's performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income, adjusted EBITDA and adjusted property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using adjusted EBITDA and adjusted property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.

Such U.S. GAAP measurements include operating income, net income, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in adjusted EBITDA or adjusted property EBITDA. Also, the Company's calculation of adjusted EBITDA and adjusted property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted EBITDA and adjusted property EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

(2) “Adjusted net  income” is net income before net gain on disposal of property and equipment to Belle Corporation, pre-opening costs,  development costs, property charges and others, loss on extinguishment of debt and costs associated with debt modification, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment per share (EPS”) are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income attributable to Melco Crown Entertainment with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

About Melco Crown Entertainment Limited

Melco Crown Entertainment, with its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ:MPEL), is a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia. Melco Crown Entertainment currently operates Altira Macau (www.altiramacau.com), a casino hotel located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. Melco Crown Entertainment’s business also includes the Mocha Clubs (www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City (www.studiocity-macau.com), a cinematically-themed integrated entertainment, retail and gaming resort in Cotai, Macau. In the Philippines, Melco Crown (Philippines) Resorts Corporation’s subsidiary, MCE Leisure (Philippines) Corporation, currently operates and manages City of Dreams Manila (www.cityofdreams.com.ph), a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. For more information about Melco Crown Entertainment, please visit www.melco-crown.com.

Melco Crown Entertainment is strongly supported by its single largest shareholder, Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited and is substantially owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of Melco Crown Entertainment.

For investment community, please contact:

Ross Dunwoody
Vice President, Investor Relations
Tel: +853 8868 7575 or +852 2598 3689
Email: rossdunwoody@melco-crown.com

For media enquiries, please contact:

Maggie Ma
Chief Corporate Communications and Corporate Affairs Officer
Tel: +853 8868 3767 or +852 3151 3767
Email: maggiema@melco-crown.com


             
Melco Crown Entertainment Limited and Subsidiaries 
Condensed Consolidated Statements of Operations 
(In thousands of U.S. dollars, except share and per share data) 
             
 Three Months Ended Year Ended 
 December 31, December 31, 
 2016  2015  2016  2015  
 (Unaudited) (Unaudited) (Unaudited) (Audited) 
OPERATING REVENUES            
Casino $   1,099,844   $   981,121   $   4,176,667   $   3,767,291  
Rooms   69,338     61,136     265,289     199,727  
Food and beverage   47,904     37,635     177,515     126,848  
Entertainment, retail and others   51,893     41,480     197,011     117,543  
Gross revenues   1,268,979     1,121,372     4,816,482     4,211,409  
Less: promotional allowances   (76,101)    (63,342)    (297,086)    (236,609) 
Net revenues   1,192,878     1,058,030     4,519,396     3,974,800  
OPERATING COSTS AND EXPENSES            
Casino   (750,898)    (692,606)    (2,904,922)    (2,654,760) 
Rooms   (8,260)    (8,078)    (33,218)    (23,419) 
Food and beverage   (18,212)    (19,271)    (65,781)    (43,295) 
Entertainment, retail and others   (27,326)    (25,978)    (109,817)    (77,506) 
General and administrative   (120,510)    (110,141)    (446,591)    (383,874) 
Payments to the Philippine Parties   (9,928)    (4,553)    (34,403)    (16,547) 
Pre-opening costs   (1,671)    (52,501)    (3,883)    (168,172) 
Development costs   (88)    (53)    (95)    (110) 
Amortization of gaming subconcession   (14,309)    (14,309)    (57,237)    (57,237) 
Amortization of land use rights   (5,704)    (5,703)    (22,816)    (54,056) 
Depreciation and amortization   (117,515)    (109,941)    (472,219)    (359,341) 
Property charges and others   (2,489)    (32,729)    (5,298)    (38,068) 
Total operating costs and expenses   (1,076,910)    (1,075,863)    (4,156,280)    (3,876,385) 
OPERATING INCOME (LOSS)   115,968     (17,833)    363,116     98,415  
NON-OPERATING INCOME (EXPENSES)            
Interest income   1,738     3,129     5,951     13,900  
Interest expenses, net of capitalized interest   (56,170)    (44,116)    (223,567)    (118,330) 
Other finance costs   (13,344)    (14,000)    (55,796)    (45,839) 
Foreign exchange (loss) gain, net   (2,919)    1,381     7,356     (2,156) 
Other income, net   936     735     3,572     2,317  
Loss on extinguishment of debt   (17,435)  -     (17,435)    (481) 
Costs associated with debt modification   (8,101)    (7,011)    (8,101)    (7,603) 
Total non-operating expenses, net   (95,295)    (59,882)    (288,020)    (158,192) 
INCOME (LOSS) BEFORE INCOME TAX   20,673     (77,715)    75,096     (59,777) 
INCOME TAX EXPENSE   (4,162)    (266)    (8,178)    (1,031) 
NET INCOME (LOSS)   16,511     (77,981)    66,918     (60,808) 
NET LOSS ATTRIBUTABLE TO             
  NONCONTROLLING INTERESTS   26,765     65,642     108,988     166,555  
NET INCOME (LOSS) ATTRIBUTABLE TO             
  MELCO CROWN ENTERTAINMENT LIMITED $   43,276   $   (12,339)  $   175,906   $   105,747  
NET INCOME (LOSS) ATTRIBUTABLE TO             
  MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:          
Basic$  0.030  $  (0.008) $  0.116  $  0.065  
Diluted$  0.029  $  (0.008) $  0.115  $  0.065  
NET INCOME (LOSS) ATTRIBUTABLE TO             
  MELCO CROWN ENTERTAINMENT LIMITED PER ADS:          
Basic$  0.089  $  (0.023) $  0.348  $  0.196  
Diluted$  0.088  $  (0.023) $  0.346  $  0.195  
WEIGHTED AVERAGE SHARES USED IN             
  NET INCOME (LOSS) ATTRIBUTABLE TO             
  MELCO CROWN ENTERTAINMENT LIMITED           
  PER SHARE CALCULATION:            
Basic   1,463,660,679     1,617,943,012     1,516,714,277     1,617,263,041  
Diluted   1,473,600,609     1,617,943,012     1,525,284,272     1,627,108,770  
             


        
Melco Crown Entertainment Limited and Subsidiaries  
Condensed Consolidated Balance Sheets  
(In thousands of U.S. dollars)  
        
        
 December 31, December 31,  
 2016 2015  
 (Unaudited) (Audited)(1)  
ASSETS       
        
CURRENT ASSETS       
Cash and cash equivalents$1,702,310  $1,611,026   
Bank deposits with original maturities over three months 210,840   724,736   
Restricted cash 39,152   317,118   
Accounts receivable, net 225,438   271,627   
Amounts due from affiliated companies 1,103   1,175   
Deferred tax assets -   19   
Income tax receivable 52   62   
Inventories 32,600   33,074   
Prepaid expenses and other current assets 68,059   61,324   
Total current assets 2,279,554   3,020,161   
PROPERTY AND EQUIPMENT, NET 5,655,823   5,760,229   
GAMING SUBCONCESSION, NET 313,320   370,557   
INTANGIBLE ASSETS 4,220   4,220   
GOODWILL 81,915   81,915   
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS 194,911   192,012   
RESTRICTED CASH 130   -   
DEFERRED TAX ASSETS 152   83   
LAND USE RIGHTS, NET 810,316   833,132   
TOTAL ASSETS$9,340,341  $10,262,309   
        
LIABILITIES AND SHAREHOLDERS' EQUITY       
        
CURRENT LIABILITIES       
Accounts payable$17,434  $15,588   
Accrued expenses and other current liabilities 1,369,943   1,056,850   
Income tax payable 7,422   3,487   
Capital lease obligations, due within one year  30,730   29,792   
Current portion of long-term debt, net 50,583   102,836   
Amounts due to affiliated companies 3,028   2,464   
Total current liabilities 1,479,140   1,211,017   
LONG-TERM DEBT, NET 3,669,692   3,712,396   
OTHER LONG-TERM LIABILITIES 49,287   80,962   
DEFERRED TAX LIABILITIES 56,451   55,598   
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR 262,357   270,477   
        
SHAREHOLDERS' EQUITY       
Ordinary shares 14,759   16,309   
Treasury shares (108)  (275)  
Additional paid-in capital 2,783,062   3,075,459   
Accumulated other comprehensive losses  (24,768)  (21,934)  
Retained earnings 570,925   1,270,074   
Total Melco Crown Entertainment Limited shareholders’ equity 3,343,870   4,339,633   
Noncontrolling interests 479,544   592,226   
Total equity 3,823,414   4,931,859   
TOTAL LIABILITIES AND EQUITY$9,340,341  $10,262,309   
        
(1) The condensed consolidated balance sheets as of December 31, 2015 have been adjusted for the retrospective application of the authoritative guidance on the presentation of debt issuance costs which was adopted by the Company in 2016. The consolidated financial statements as of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015, retrospectively adjusted to reflect retrospective adoption of such new guidance was included in the form 6-K furnished to the SEC on December 14, 2016.  
  
  
  
        


             
Melco Crown Entertainment Limited and Subsidiaries 
Reconciliation of Net Income (Loss) Attributable to Melco Crown Entertainment Limited to  
Adjusted Net Income Attributable to Melco Crown Entertainment Limited 
(In thousands of U.S. dollars, except share and per share data) 
             
 Three Months Ended Year Ended 
 December 31, December 31, 
 2016  2015  2016  2015  
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) 
Net Income (Loss) Attributable to             
  Melco Crown Entertainment Limited$  43,276  $  (12,339) $  175,906  $  105,747  
Net Gain on Disposal of Property and Equipment            
  to Belle Corporation -   -     (8,134)  -  
Pre-opening Costs   1,671     52,501     3,883     168,172  
  Development Costs   88     53     95     110  
Property Charges and Others   2,489     32,729     5,298     38,068  
  Loss on Extinguishment of Debt   17,435   -     17,435     481  
  Costs Associated with Debt Modification   8,101     7,011     8,101     7,603  
  Income Tax Impact on Adjustments   392     (4)    378     (254) 
Noncontrolling Interests Impact on Adjustments   (10,291)    (33,269)    (9,947)    (82,143) 
Adjusted Net Income Attributable to             
  Melco Crown Entertainment Limited$  63,161  $  46,682  $  193,015  $  237,784  
ADJUSTED NET INCOME ATTRIBUTABLE TO            
  MELCO CROWN ENTERTAINMENT            
  LIMITED PER SHARE:            
Basic$  0.043  $  0.029  $  0.127  $  0.147  
Diluted$  0.043  $  0.029  $  0.127  $  0.146  
ADJUSTED NET INCOME ATTRIBUTABLE TO            
  MELCO CROWN ENTERTAINMENT            
 LIMITED PER ADS:            
Basic$  0.129  $  0.087  $  0.382  $  0.441  
Diluted$  0.129  $  0.086  $  0.380  $  0.438  
WEIGHTED AVERAGE SHARES USED IN             
  ADJUSTED NET INCOME ATTRIBUTABLE             
  TO MELCO CROWN ENTERTAINMENT            
  LIMITED PER SHARE CALCULATION:            
Basic   1,463,660,679     1,617,943,012     1,516,714,277     1,617,263,041  
Diluted   1,473,600,609     1,626,677,872     1,525,284,272     1,627,108,770  
             


                      
Melco Crown Entertainment Limited and Subsidiaries 
Reconciliation of Operating Income (Loss) to 
Adjusted EBITDA and Adjusted Property EBITDA 
(In thousands of U.S. dollars) 
                      
 Three Months Ended December 31, 2016 
 Altira
Macau
 Mocha City of
Dreams
 Studio
City
 City of
Dreams
Manila
 Corporate
and Others
 Total 
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 
Operating (Loss) Income$  (2,410) $  2,593 $  139,279 $  9,373  $19,917  $  (52,784) $  115,968  
  Payments to the Philippine Parties -   -  -  -   9,928   -     9,928  
  Land Rent to Belle Corporation -   -  -  -   803   -     803  
  Pre-opening Costs -   -    1,047    624   -   -     1,671  
  Development Costs -   -  -  -   -     88     88  
  Depreciation and Amortization   5,652     2,797    44,505    45,646   21,443     17,485     137,528  
  Share-based Compensation   45     45    601    80   117     2,851     3,739  
  Property Charges and Others -   -    3,245    931   (2,008)    321     2,489  
Adjusted EBITDA   3,287     5,435    188,677    56,654   50,200     (32,039)    272,214  
  Corporate and Others Expenses -   -  -  -   -     32,039     32,039  
Adjusted Property EBITDA$ 3,287   $  5,435  $   188,677  $  56,654  $50,200   $ -   $   304,253  
                      
                      
 Three Months Ended December 31, 2015 
 Altira
Macau
 Mocha City of
Dreams
 Studio
City
 City of
Dreams
Manila
 Corporate
and Others
 Total 
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 
Operating Income (Loss) $  3,569  $  3,361 $146,393 $  (73,381) $  (47,534) $(50,241) $(17,833) 
  Payments to the Philippine Parties -   -  -  -     4,553   -     4,553  
  Land Rent to Belle Corporation -   -  -  -     842   -     842  
  Pre-opening Costs -   -    7    52,036     458   -   52,501  
  Development Costs -   -  -  -   -     53     53  
  Depreciation and Amortization   6,020     3,025    45,141    33,765     24,128     17,874   129,953  
  Share-based Compensation   29     23    447    90     1,816     2,798   5,203  
  Property Charges and Others   51   -    244    126     31,217     1,091     32,729  
Adjusted EBITDA   9,669     6,409    192,232    12,636     15,480     (28,425)    208,001  
  Corporate and Others Expenses -   -  -  -   -     28,425     28,425  
Adjusted Property EBITDA$  9,669   $   6,409  $   192,232  $   12,636   $   15,480   $ -   $   236,426  
                      


             
Melco Crown Entertainment Limited and Subsidiaries 
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to  
Net Income (Loss) Attributable to Melco Crown Entertainment Limited 
(In thousands of U.S. dollars) 
             
   Three Months Ended 
   December 31, 
     2016 2015 
     (Unaudited) (Unaudited) 
Adjusted Property EBITDA      $  304,253  $236,426  
Corporate and Others Expenses         (32,039)  (28,425) 
Adjusted EBITDA         272,214   208,001  
Payments to the Philippine Parties         (9,928)    (4,553) 
Land Rent to Belle Corporation         (803)    (842) 
Pre-opening Costs         (1,671)  (52,501) 
Development Costs         (88)  (53) 
Depreciation and Amortization         (137,528)  (129,953) 
Share-based Compensation         (3,739)  (5,203) 
Property Charges and Others         (2,489)  (32,729) 
Interest and Other Non-Operating Expenses, Net         (95,295)  (59,882) 
Income Tax Expense         (4,162)    (266) 
Net Income (Loss)        16,511   (77,981) 
Net Loss Attributable to Noncontrolling Interests         26,765     65,642  
Net Income (Loss) Attributable to Melco Crown Entertainment Limited    $43,276  $(12,339) 
             


                     
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to
Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
                     
  Year Ended December 31, 2016
 Altira
Macau
 Mocha City of
Dreams
 Studio
City
 City of
Dreams
Manila
 Corporate
and Others
 Total
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating (Loss) Income$  (18,091) $  11,694 $  559,470 $  (29,099) $  38,705  $  (199,563) $  363,116 
  Payments to the Philippine Parties -   -  -  -     34,403   -     34,403 
  Land Rent to Belle Corporation -   -  -  -     3,327   -     3,327 
  Net Gain on Disposal of Property and Equipment                  
to Belle Corporation -   -  -  -     (8,134)  -     (8,134)
  Pre-opening Costs -   -    1,355    2,528   -   -     3,883 
  Development Costs -   -  -  -   -     95     95 
  Depreciation and Amortization   22,950     11,921    175,676    179,905     91,389     70,431     552,272 
  Share-based Compensation   60     174    2,354    826     2,087     12,986     18,487 
  Property Charges and Others   197   -    3,436    1,825     (1,441)    1,281     5,298 
Adjusted EBITDA   5,116     23,789    742,291    155,985     160,336     (114,770)    972,747 
  Corporate and Others Expenses -   -  -  -   -    114,770     114,770 
Adjusted Property EBITDA$ 5,116   $  23,789  $  742,291  $   155,985   $  160,336   $ -   $   1,087,517 
                     
                     
  Year Ended December 31, 2015
 Altira
Macau
 Mocha City of
Dreams
 Studio
City
 City of
Dreams
Manila
 Corporate
and Others
 Total
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating Income (Loss)$  7,877  $  17,835 $  595,330 $  (187,665) $  (126,360) $  (208,602) $  98,415 
  Payments to the Philippine Parties -   -  -  -     16,547   -     16,547 
  Land Rent to Belle Corporation -   -  -  -     3,476   -     3,476 
  Pre-opening Costs -   -  395    131,321     28,365     8,091     168,172 
  Development Costs -   -  -  -   -     110     110 
  Depreciation and Amortization   28,216     12,337    200,373    66,503     95,021     68,184     470,634 
  Share-based Compensation   117     87    1,861    293     7,100     11,369     20,827 
  Property Charges and Others   51   -    545    1,142     31,217     5,113     38,068 
Adjusted EBITDA   36,261     30,259    798,504    11,594     55,366     (115,735)    816,249 
  Corporate and Others Expenses -   -  -  -   -     115,735     115,735 
Adjusted Property EBITDA$  36,261   $   30,259  $   798,504  $   11,594   $   55,366   $ -   $   931,984 
                     


             
Melco Crown Entertainment Limited and Subsidiaries 
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to 
Net Income Attributable to Melco Crown Entertainment Limited 
(In thousands of U.S. dollars) 
             
   Year Ended 
   December 31, 
     2016 2015 
     (Unaudited) (Unaudited) 
Adjusted Property EBITDA      $  1,087,517  $  931,984  
Corporate and Others Expenses         (114,770)    (115,735) 
Adjusted EBITDA         972,747     816,249  
Payments to the Philippine Parties         (34,403)    (16,547) 
Land Rent to Belle Corporation         (3,327)    (3,476) 
Net Gain on Disposal of Property and Equipment            
  to Belle Corporation         8,134   -  
Pre-opening Costs         (3,883)    (168,172) 
Development Costs         (95)    (110) 
Depreciation and Amortization         (552,272)    (470,634) 
Share-based Compensation         (18,487)    (20,827) 
Property Charges and Others         (5,298)    (38,068) 
Interest and Other Non-Operating Expenses, Net         (288,020)    (158,192) 
Income Tax Expense         (8,178)    (1,031) 
Net Income (Loss)         66,918     (60,808) 
Net Loss Attributable to Noncontrolling Interests         108,988     166,555  
Net Income Attributable to Melco Crown Entertainment Limited     $  175,906  $  105,747  
             


              
 Melco Crown Entertainment Limited and Subsidiaries  
 Supplemental Data Schedule 
              
      Three Months Ended Year Ended 
      December 31, December 31, 
       2016   2015   2016   2015  
Room Statistics:           
 Altira Macau           
  Average daily rate (3)  $  210  $  213  $  205  $  212  
  Occupancy per available room   94%  97%  94%  98% 
  Revenue per available room (4)  $  197  $  206  $  193  $  209  
              
 City of Dreams           
  Average daily rate (3)  $  205  $  205  $  200  $  201  
  Occupancy per available room   98%  97%  96%  99% 
  Revenue per available room (4)  $  199  $  200  $  192  $  198  
              
 Studio City           
  Average daily rate (3)  $  138  $  136  $  136  $  136  
  Occupancy per available room   99%  98%  98%  98% 
  Revenue per available room (4)  $  137  $  133  $  133  $  133  
              
 City of Dreams Manila          
  Average daily rate (3)  $  156  $  168  $  159  $  191  
  Occupancy per available room   96%  88%  91%  86% 
  Revenue per available room (4)  $  149  $  148  $  145  $  164  
              
              
Other Information:           
 Altira Macau           
  Average number of table games    114     131     121     126  
  Average number of gaming machines    62     55     62     56  
  Table games win per unit per day (5) $  13,447  $  15,374  $  13,448  $  17,079  
  Gaming machines win per unit per day (6) $  94  $  89  $  93   $  98  
              
 City of Dreams           
  Average number of table games    488     494     494     497  
  Average number of gaming machines    956     1,090     1,029     1,146  
  Table games win per unit per day (5) $  15,319  $  15,435  $  15,027  $  16,176  
  Gaming machines win per unit per day (6) $  466  $  363  $  381  $  404  
              
 Studio City           
  Average number of table games    266     196     251     196  
  Average number of gaming machines    1,103     1,165     1,097     1,165  
  Table games win per unit per day (5) $  8,282  $  6,326  $  6,871  $  6,326  
  Gaming machines win per unit per day (6) $  200  $  168  $  189  $  168  
              
 City of Dreams Manila          
  Average number of table games    272     276     270     263  
  Average number of gaming machines    1,686     1,660     1,656     1,709  
  Table games win per unit per day (5) $  4,576  $  2,268  $  3,939  $  2,033  
  Gaming machines win per unit per day (6) $  255  $  170  $  217  $  170  
              
              
  (3) Average daily rate is calculated by dividing total room revenue including the retail value of promotional allowances by total occupied rooms including complimentary rooms 
  (4) Revenue per available room is calculated by dividing total room revenue including the retail value of promotional allowances by total rooms available 
  (5) Table games win per unit per day is shown before discounts and commissions     
  (6) Gaming machines win per unit per day is shown before deducting cost for slot points