Melco Announces Record Adjusted Property EBITDA in the Third Quarter 2017 and Declares Quarterly Dividend

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| Source: Melco Resorts & Entertainment Limited

MACAU, Nov. 02, 2017 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq:MLCO), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia, today reported its unaudited financial results for the third quarter of 2017.

Net revenue for the third quarter of 2017 was US$1,376.8 million, representing an increase of approximately 19% from US$1,152.6 million for the comparable period in 2016. The increase in net revenue was primarily attributable to higher rolling chip revenues at City of Dreams and the commencement of rolling chip operations at Studio City in November 2016.

On a U.S. GAAP basis, operating income for the third quarter of 2017 was US$192.7 million, compared with operating income of US$108.9 million in the third quarter of 2016, representing an increase of 77%.

Adjusted property EBITDA(1) was US$400.2 million for the third quarter of 2017, as compared to Adjusted property EBITDA of US$289.2 million in the third quarter of 2016, representing an increase of 38%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to better performance in the group-wide rolling chip segment.

On a U.S. GAAP basis, net income attributable to Melco Resorts & Entertainment Limited for the third quarter of 2017 was US$115.9 million, or US$0.24 per ADS, compared with US$62.0 million, or US$0.13 per ADS, in the third quarter of 2016. The net loss attributable to noncontrolling interests during the third quarter of 2017 of US$3.3 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “A strong contribution from all gaming segments, aided by a sustained recovery in Macau and ongoing strength in the fast growing Philippines gaming market, continues to drive our Company's overall profitability which enabled us to deliver our all-time record Adjusted property EBITDA of US$400.2 million in the third quarter of 2017.

“Gaming revenue growth momentum in Macau has remained strong, with October 2017 marking the fifteenth consecutive month of positive year-over-year growth. Looking out, we believe there are multiple drivers of long term growth for Macau, powered by ongoing expansion of the increasingly consumption driven middle-to-upper class in China, improving accessibility into and mobility around Macau, and the continuing build-out of non-gaming amenities, which we believe support an increase in the number of tourists and length of stay.

“Melco continues to pursue quality, sustainable earnings growth by remaining focused on the mass market gaming segment, while remaining committed to managing costs, which is evident in the improvement in EBITDA and EBITDA margins in the third quarter of 2017.

“City of Dreams has once again proven itself to be the unequivocal leader in the premium end of the market, with ongoing improvements in mass table yields despite an increase in new supply in the market. We aim to further solidify our leadership position in the premium segment by embarking on a range of exciting enhancements as part of phase three at City of Dreams, including the opening of Morpheus, which remains on budget and on track to open in the first half of 2018. This ultra-luxury, groundbreaking concept will add approximately 780 luxury hotel rooms, suites and villas as well as incredible food and beverage and other non-gaming amenities. When Morpheus opens, we will also commence the rebranding and redevelopment of The Count:Down, which we believe will seamlessly complement the integrated resort’s already market-leading premium mass and direct VIP gaming amenities and other non-gaming offerings.

“Studio City continues to ramp by delivering improvements in the mass market and rolling chip segments. Going forward, we will continue to refine our product offerings at Studio City with a range of extensive property upgrades planned over the next twelve months, including the planned redevelopment of the House of Magic and enhancements in the accessibility to the property.

“In The Philippines, City of Dreams Manila continues to enjoy strong year-on-year growth across all gaming segments, which enabled the property to deliver over 27% year-over-year growth in Adjusted property EBITDA, despite new supply in the Philippines.

“We continue to focus on new expansion opportunities to deliver long term value for our shareholders, which include the transformational integrated resort opportunity in Japan. We believe that our track record of delivering high quality and unique integrated resorts, our market-leading social safeguard systems, and commitment to being an ideal partner to local governments and communities alike places us in a strong position to compete for a license in this exciting market.

“Lastly, I would want to take this opportunity to express our sympathy to all those who were affected by Typhoon Hato in late August. I send my deepest sympathies to the families who have lost loved ones during the Typhoon. I would also like to express my sincere appreciation to my colleagues who have risen to the challenge of rebuilding our community after Typhoon Hato.”
  
City of Dreams Third Quarter Results

For the quarter ended September 30, 2017, net revenue at City of Dreams was US$715.9 million compared to US$621.2 million in the third quarter of 2016. City of Dreams generated Adjusted EBITDA of US$246.4 million in the third quarter of 2017 compared with Adjusted EBITDA of US$170.4 million in the third quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of higher rolling chip revenues and recovery of previously provided doubtful debt, partially offset by lower mass market table games revenues. 

Rolling chip volume totaled US$11.2 billion for the third quarter of 2017 versus US$10.6 billion in the third quarter of 2016. The rolling chip win rate was 3.5% in the third quarter of 2017 versus 2.6% in the third quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$1,145.0 million compared with US$1,096.5 million in the third quarter of 2016. The mass market table games hold percentage was 32.3% in the third quarter of 2017 compared to 34.5% in the third quarter of 2016.

Gaming machine handle for the third quarter of 2017 was US$981.7 million, compared with US$1,002.5 million in the third quarter of 2016. The gaming machine win rate was 3.2% in the third quarter of 2017 versus 3.5% in the third quarter of 2016.

Total non-gaming revenue at City of Dreams in the third quarter of 2017 was US$81.4 million, compared with US$75.6 million in the third quarter of 2016.

Altira Macau Third Quarter Results

For the quarter ended September 30, 2017, net revenue at Altira Macau was US$89.3 million compared to US$128.8 million in the third quarter of 2016. Altira Macau generated negative Adjusted EBITDA of US$5.6 million in the third quarter of 2017 compared with Adjusted EBITDA of US$14.0 million in the third quarter of 2016. The year-on-year decrease in Adjusted EBITDA was primarily a result of decreased casino revenues. 

Rolling chip volume totaled US$4.2 billion in the third quarter of 2017 versus US$4.5 billion in the third quarter of 2016. The rolling chip win rate was 2.6% in the third quarter of 2017 versus 3.2% in the third quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$112.4 million in the third quarter of 2017, a decrease from US$122.6 million generated in the comparable period in 2016. The mass market table games hold percentage was 15.7% in the third quarter of 2017 compared with 19.8% in the third quarter of 2016.

Gaming machine handle for the third quarter of 2017 was US$11.3 million, compared with US$8.5 million in the third quarter of 2016. The gaming machine win rate was 6.1% in the third quarter of 2017 versus 6.9% in the third quarter of 2016.

Total non-gaming revenue at Altira Macau in the third quarter of 2017 was US$6.8 million compared with US$7.3 million in the third quarter of 2016.

Mocha Clubs Third Quarter Results

Net revenue from Mocha Clubs totaled US$30.2 million in the third quarter of 2017 as compared to US$31.8 million in the third quarter of 2016. Mocha Clubs generated US$6.5 million of Adjusted EBITDA in the third quarter of 2017 compared with US$7.0 million in the same period in 2016.

Gaming machine handle for the third quarter of 2017 was US$628.1 million, compared with US$673.4 million in the third quarter of 2016. The gaming machine win rate was 4.7% in the third quarter of 2017 versus 4.6% in the third quarter of 2016.

Studio City Third Quarter Results

For the quarter ended September 30, 2017, net revenue at Studio City was US$384.5 million compared to US$229.5 million in the third quarter of 2016. Studio City generated Adjusted EBITDA of US$95.6 million in the third quarter of 2017 compared with Adjusted EBITDA of US$52.7 million in the third quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of the commencement of rolling chip operations in November 2016 and better performance in the mass market table games segment.

Rolling chip volume totaled US$5.1 billion for the third quarter of 2017. The rolling chip win rate was 4.0% in the third quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$747.1 million compared with US$657.6 million in the third quarter of 2016. The mass market table games hold percentage was 25.0% in the third quarter of 2017 compared to 25.5% in the third quarter of 2016.

Gaming machine handle for the third quarter of 2017 was US$581.2 million, compared with US$587.9 million in the third quarter of 2016. The gaming machine win rate was 3.3% in the third quarter of 2017 versus 3.9% in the third quarter of 2016.

Total non-gaming revenue at Studio City in the third quarter of 2017 was US$51.9 million, compared with US$58.5 million in the third quarter of 2016.

City of Dreams Manila Third Quarter Results

For the quarter ended September 30, 2017, net revenue at City of Dreams Manila was US$148.2 million compared to US$131.0 million in the third quarter of 2016. City of Dreams Manila generated Adjusted EBITDA of US$57.3 million in the third quarter of 2017 compared to US$45.0 million in the comparable period of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues.

Rolling chip volume totaled US$3.0 billion for the third quarter of 2017 versus US$1.6 billion in the third quarter of 2016. The rolling chip win rate was 2.5% in the third quarter of 2017 versus 4.0% in the third quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$174.1 million for the third quarter of 2017, compared with US$146.8 million in the third quarter of 2016. The mass market table games hold percentage was 29.9% in the third quarter of 2017 compared to 26.9% in the third quarter of 2016.

Gaming machine handle for the third quarter of 2017 was US$757.3 million, compared with US$597.0 million in the third quarter of 2016. The gaming machine win rate was 5.6% in the third quarter of 2017 versus 5.8% in the third quarter of 2016.

Total non-gaming revenue at City of Dreams Manila in the third quarter of 2017 was US$29.2 million, compared with US$26.3 million in the third quarter of 2016.

Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2017 were US$78.6 million, which mainly included interest expenses, net of capitalized interest of US$57.7 million, other finance costs of US$7.7 million, loss on extinguishment of debt of US$16.9 million and costs associated with debt modification of US$0.9 million. We recorded US$9.1 million of capitalized interest during the third quarter of 2017, relating to the development of Morpheus at City of Dreams.

The year-on-year increase of US$15.0 million in net non-operating expenses was primarily a result of the loss on extinguishment of debt arising from the issuance of the additional US$350.0 million 4.875% senior notes in July 2017 for the refinancing of the US$1 billion Senior Notes issued in 2013 by Melco Resorts Finance Limited.

Depreciation and amortization costs of US$134.0 million were recorded in the third quarter of 2017 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 September 30, 2017 were US$1.7 billion, including US$35.6 million of bank deposits with original maturities over three months and US$81.9 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the third quarter of 2017, was US$3.7 billion. 

Capital expenditures for the third quarter of 2017 were US$176.0 million, which predominantly related to various projects at City of Dreams, primarily Morpheus. 

Dividend Declaration

On November 2, 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 third quarter of 2017 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about November 30, 2017 to our shareholders whose names appear on the register of members of the Company at the close of business on November 14, 2017 being the record date for determination of entitlements to the Quarterly Dividend.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2017 financial results on Thursday, November 2, 2017 at 8:30 a.m. Eastern Time (8:30 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
   
PasscodeMLCO 

An audio webcast will also be available at http://www.melco-resorts.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     2799329

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. Melco Resorts & Entertainment Limited (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 market 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 other, 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 other, 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 other, 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 Resorts & Entertainment Limited and adjusted net income attributable to Melco Resorts & Entertainment Limited 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 Resorts & Entertainment Limited and adjusted net income attributable to Melco Resorts & Entertainment Limited 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 Resorts & Entertainment Limited 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 Resorts & Entertainment Limited

The Company, with its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ:MLCO), is a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia. The Company 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. Its 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, a Philippine subsidiary of the Company 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 the Company, please visit www.melco-resorts.com.

The Company 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 the Company. 

 
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands of U.S. dollars, except share and per share data)
 
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2017
 2016 2017
 2016
  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
            
OPERATING REVENUES           
Casino$1,285,107  $1,060,035  $3,688,084  $3,076,823 
Rooms 68,310   68,082   200,336   195,951 
Food and beverage 45,196   47,240   133,706   129,611 
Entertainment, retail and other 57,357   54,063   159,839   145,118 
Gross revenues 1,455,970   1,229,420   4,181,965   3,547,503 
Less: promotional allowances (79,143)  (76,867)  (229,698)  (220,985)
Net revenues 1,376,827   1,152,553   3,952,267   3,326,518 
            
OPERATING COSTS AND EXPENSES           
Casino (861,518)  (733,997)  (2,508,949)  (2,154,024)
Rooms (8,037)  (8,537)  (24,252)  (24,958)
Food and beverage (13,629)  (13,074)  (41,871)  (47,569)
Entertainment, retail and other (22,604)  (27,865)  (66,656)  (82,491)
General and administrative (110,924)  (112,065)  (344,505)  (326,081)
Payments to the Philippine Parties (13,288)  (9,066)  (42,549)  (24,475)
Pre-opening costs (177)  (1,489)  (1,177)  (2,212)
Development costs (14,054)  -   (18,139)  (7)
Amortization of gaming subconcession (14,310)  (14,309)  (42,928)  (42,928)
Amortization of land use rights (5,704)  (5,704)  (17,112)  (17,112)
Depreciation and amortization (113,991)  (117,059)  (347,070)  (354,704)
Property charges and other (5,874)  (451)  (18,401)  (2,809)
Total operating costs and expenses (1,184,110)  (1,043,616)  (3,473,609)  (3,079,370)
OPERATING INCOME 192,717   108,937   478,658   247,148 
NON-OPERATING INCOME (EXPENSES)           
Interest income 1,025   1,210   2,497   4,213 
Interest expenses, net of capitalized interest (57,744)  (56,378)  (174,849)  (167,397)
Other finance costs (7,676)  (14,549)  (24,728)  (42,452)
Foreign exchange gains, net 2,793   5,245   12,191   10,275 
Other income, net 870   917   2,258   2,636 
Loss on extinguishment of debt (16,939)  -   (48,398)  - 
Costs associated with debt modification (881)  -   (2,793)  - 
Total non-operating expenses, net (78,552)  (63,555)  (233,822)  (192,725)
INCOME BEFORE INCOME TAX 114,165   45,382   244,836   54,423 
INCOME TAX EXPENSE (1,552)  (1,662)  (935)  (4,016)
NET INCOME 112,613   43,720   243,901   50,407 
NET LOSS ATTRIBUTABLE TO           
NONCONTROLLING INTERESTS 3,294   18,323   21,929   82,223 
NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED$115,907  $62,043  $265,830  $132,630 
            
NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:          
Basic$0.079  $0.042  $0.181  $0.086 
Diluted$0.078  $0.042  $0.180  $0.086 
            
NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:           
Basic$0.237  $0.127  $0.544  $0.259 
Diluted$0.235  $0.126  $0.539  $0.258 
            
WEIGHTED AVERAGE SHARES OUTSTANDING           
USED IN NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED           
PER SHARE CALCULATION:           
Basic 1,468,293,998   1,463,450,519   1,467,083,364   1,534,527,893 
Diluted 1,479,677,417   1,471,515,182   1,478,440,011   1,542,641,243 
            

 

 
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
 
 
 September 30, December 31,
 2017 2016
  (Unaudited)  (Audited)
      
ASSETS     
      
CURRENT ASSETS     
Cash and cash equivalents$1,576,898  $1,702,310 
Bank deposits with original maturities over three months 35,591   210,840 
Restricted cash 81,735   39,152 
Accounts receivable, net 137,731   225,438 
Amounts due from affiliated companies 373   1,103 
Inventories 33,646   32,600 
Prepaid expenses and other current assets 62,971   68,111 
Total current assets 1,928,945   2,279,554 
      
PROPERTY AND EQUIPMENT, NET 5,685,386   5,655,823 
GAMING SUBCONCESSION, NET 270,392   313,320 
INTANGIBLE ASSETS 4,220   4,220 
GOODWILL 81,915   81,915 
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS 188,447   194,911 
RESTRICTED CASH 130   130 
DEFERRED TAX ASSETS 246   152 
LAND USE RIGHTS, NET 793,204   810,316 
TOTAL ASSETS$8,952,885  $9,340,341 
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
CURRENT LIABILITIES     
Accounts payable$17,267  $17,434 
Accrued expenses and other current liabilities 1,514,948   1,369,943 
Income tax payable 5,868   7,422 
Capital lease obligations, due within one year 32,042   30,730 
Current portion of long-term debt, net 196,788   50,583 
Amounts due to affiliated companies 11,831   3,028 
Total current liabilities 1,778,744   1,479,140 
      
LONG-TERM DEBT, NET 3,512,524   3,669,692 
OTHER LONG-TERM LIABILITIES 44,276   49,287 
DEFERRED TAX LIABILITIES 56,104   56,451 
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR 258,675   262,357 
AMOUNT DUE TO AN AFFILIATED COMPANY 910   - 
      
SHAREHOLDERS' EQUITY     
Ordinary shares 14,784   14,759 
Treasury shares (92)  (108)
Additional paid-in capital 3,666,393   2,783,062 
Accumulated other comprehensive losses (26,506)  (24,768)
(Accumulated losses) retained earnings (809,430)  570,925 
Total Melco Resorts & Entertainment Limited shareholders’ equity 2,845,149   3,343,870 
Noncontrolling interests 456,503   479,544 
Total equity 3,301,652   3,823,414 
TOTAL LIABILITIES AND EQUITY$8,952,885  $9,340,341 
      

 

Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net Income Attributable to Melco Resorts & Entertainment Limited to 
Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited
(In thousands of U.S. dollars, except share and per share data)
            
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2017 2016 2017 2016
 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
            
Net Income Attributable to           
Melco Resorts & Entertainment Limited$115,907  $62,043  $265,830  $132,630 
Net Gain on Disposal of Property and Equipment           
to Belle Corporation -   -   -   (8,134)
Pre-opening Costs 177   1,489   1,177   2,212 
Development Costs 14,054   -   18,139   7 
Property Charges and Other 5,874   451   18,401   2,809 
Loss on Extinguishment of Debt 16,939   -   48,398   - 
Costs Associated with Debt Modification 881   -   2,793   - 
Income Tax Impact on Adjustments 86   -   (262)  (14)
Noncontrolling Interests Impact on Adjustments (922)  (1,181)  (2,674)  344 
Adjusted Net Income Attributable to           
Melco Resorts & Entertainment Limited$152,996  $62,802  $351,802  $129,854 
            
ADJUSTED NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:         
Basic$0.104  $0.043  $0.240  $0.085 
Diluted$0.103  $0.043  $0.238  $0.084 
            
ADJUSTED NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:           
Basic$0.313  $0.129  $0.719  $0.254 
Diluted$0.310  $0.128  $0.714  $0.253 
            
WEIGHTED AVERAGE SHARES OUTSTANDING           
USED IN ADJUSTED NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED           
PER SHARE CALCULATION:           
Basic 1,468,293,998   1,463,450,519   1,467,083,364   1,534,527,893 
Diluted 1,479,677,417   1,471,515,182   1,478,440,011   1,542,641,243 
            

 

                     
Melco Resorts & 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 September 30, 2017
 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$(10,973) $4,752  $200,729 $46,006 $22,266  $(70,063) $192,717
                     
Payments to the Philippine Parties -   -   -  -  13,288   -   13,288
Land Rent to Belle Corporation -   -   -  -  778   -   778
Pre-opening Costs -   -   152  25  -   -   177
Development Costs -   -   -  -  -   14,054   14,054
Depreciation and Amortization 5,101   1,990   42,082  46,077  20,722   18,033   134,005
Share-based Compensation 68   49   822  322  196   3,817   5,274
Property Charges and Other 197   (270)  2,586  3,207  -   154   5,874
Adjusted EBITDA (5,607)  6,521   246,371  95,637  57,250   (34,005)  366,167
Corporate and Others Expenses -   -   -  -  -   34,005   34,005
Adjusted Property EBITDA$(5,607) $6,521  $246,371 $95,637 $57,250  $-  $400,172
                     
                     
 Three Months Ended September 30, 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 Income (Loss)$8,284  $3,948  $125,753 $5,913 $13,098  $(48,059) $108,937
                     
Payments to the Philippine Parties -   -   -  -  9,066   -   9,066
Land Rent to Belle Corporation -   -   -  -  838   -   838
Pre-opening Costs -   -   6  1,483  -   -   1,489
Depreciation and Amortization 5,718   3,038   43,888  44,794  22,038   17,596   137,072
Share-based Compensation 45   47   712  304  (61)  3,417   4,464
Property Charges and Other -   -   -  212  33   206   451
Adjusted EBITDA 14,047   7,033   170,359  52,706  45,012   (26,840)  262,317
Corporate and Others Expenses -   -   -  -  -   26,840   26,840
Adjusted Property EBITDA$14,047  $7,033  $170,359 $52,706 $45,012  $-  $289,157
                     

 

Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
                     
                     
 Nine Months Ended September 30, 2017
 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$(13,188) $13,092  $492,973 $97,332  $72,664  $(184,215) $478,658 
                     
Payments to the Philippine Parties -   -   -  -   42,549   -   42,549 
Land Rent to Belle Corporation -   -   -  -   2,361   -   2,361 
Pre-opening Costs -   -   967  (15)  225   -   1,177 
Development Costs -   -   -  -   -   18,139   18,139 
Depreciation and Amortization 15,998   6,222   130,434  138,375   63,158   52,923   407,110 
Share-based Compensation 150   97   2,106  927   269   8,546   12,095 
Property Charges and Other 254   (208)  8,715  7,474   -   2,166   18,401 
Adjusted EBITDA 3,214   19,203   635,195  244,093   181,226   (102,441)  980,490 
Corporate and Others Expenses -   -   -  -   -   102,441   102,441 
Adjusted Property EBITDA$3,214  $19,203  $635,195 $244,093  $181,226  $-  $1,082,931 
                     
                     
 Nine Months Ended September 30, 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$(15,681) $9,101  $420,191 $(38,472) $18,788  $(146,779) $247,148 
                     
Payments to the Philippine Parties -   -   -  -   24,475   -   24,475 
Land Rent to Belle Corporation -   -   -  -   2,524   -   2,524 
Net Gain on Disposal of Property and Equipment                     
to Belle Corporation -   -   -  -   (8,134)  -   (8,134)
Pre-opening Costs -   -   308  1,904   -   -   2,212 
Development Costs -   -   -  -   -   7   7 
Depreciation and Amortization 17,298   9,124   131,171  134,259   69,946   52,946   414,744 
Share-based Compensation 15   129   1,753  746   1,970   10,135   14,748 
Property Charges and Other 197   -   191  894   567   960   2,809 
Adjusted EBITDA 1,829   18,354   553,614  99,331   110,136   (82,731)  700,533 
Corporate and Others Expenses -   -   -  -   -   82,731   82,731 
Adjusted Property EBITDA$1,829  $18,354  $553,614 $99,331  $110,136  $-  $783,264 
                     


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net Income Attributable to Melco Resorts & Entertainment Limited to
Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
 
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2017 2016 2017 2016
 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
            
Net Income Attributable to Melco Resorts & Entertainment Limited$115,907  $62,043  $265,830  $132,630 
Net Loss Attributable to Noncontrolling Interests (3,294)  (18,323)  (21,929)  (82,223)
Net Income 112,613   43,720   243,901   50,407 
Income Tax Expense 1,552   1,662   935   4,016 
Interest and Other Non-Operating Expenses, Net 78,552   63,555   233,822   192,725 
Property Charges and Other 5,874   451   18,401   2,809 
Share-based Compensation 5,274   4,464   12,095   14,748 
Depreciation and Amortization 134,005   137,072   407,110   414,744 
Development Costs 14,054   -   18,139   7 
Pre-opening Costs 177   1,489   1,177   2,212 
Net Gain on Disposal of Property and Equipment           
to Belle Corporation -   -   -   (8,134)
Land Rent to Belle Corporation 778   838   2,361   2,524 
Payments to the Philippine Parties 13,288   9,066   42,549   24,475 
Adjusted EBITDA 366,167   262,317   980,490   700,533 
Corporate and Others Expenses 34,005   26,840   102,441   82,731 
Adjusted Property EBITDA$400,172  $289,157  $1,082,931  $783,264 


             
Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
         
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2017 2016 2017 2016
Room Statistics:        
Altira Macau
        
Average daily rate (3) $201  $200  $203  $204 
Occupancy per available room  98%  96%  95%  94%
Revenue per available room (4) $197  $192  $193  $192 
         
City of Dreams        
Average daily rate (3) $201  $199  $200  $198 
Occupancy per available room  97%  97%  97%  95%
Revenue per available room (4) $195  $193  $194  $189 
         
Studio City
        
Average daily rate (3) $142  $137  $139  $135 
Occupancy per available room  98%  99%  98%  97%
Revenue per available room (4) $139  $136  $137  $131 
         
City of Dreams Manila        
Average daily rate (3) $158  $158  $156  $161 
Occupancy per available room  96%  92%  96%  90%
Revenue per available room (4) $151  $146  $150  $144 
         
Other Information:        
Altira Macau        
Average number of table games  101   117   108   123 
Average number of gaming machines  61   61   58   62 
Table games win per unit per day (5) $13,707  $15,745  $14,225  $13,448 
Gaming machines win per unit per day (6) $123  $104  $103  $93 
         
City of Dreams        
Average number of table games  476   489   479   496 
Average number of gaming machines  673   1,037   758   1,054 
Table games win per unit per day (5) $17,459  $14,471  $16,878  $14,931 
Gaming machines win per unit per day (6) $506  $363  $504  $355 
         
Studio City        
Average number of table games  291   245   287   245 
Average number of gaming machines  970   1,098   974   1,095 
Table games win per unit per day (5) $14,535  $7,446  $12,521  $6,358 
Gaming machines win per unit per day (6) $214  $229  $211  $186 
         
City of Dreams Manila        
Average number of table games  290   262   280   269 
Average number of gaming machines  1,792   1,656   1,781   1,646 
Table games win per unit per day (5) $4,705  $4,237  $5,417  $3,723 
Gaming machines win per unit per day (6) $256  $226  $272  $204 
         
         
(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

For investment community, please contact:
Ross Dunwoody
Vice President, Development & Investor Relations
Tel: +853 8868 7575 or +852 2598 3689
Email: rossdunwoody@melco-resorts.com

Richard Huang
Director, Investor Relations
Tel: +852 2598 3619
Email: richardlshuang@melco-resorts.com

For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com