MACAU, May 03, 2018 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq:MLCO) (“Melco” or the “Company”), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia, today reported its unaudited financial results for the first quarter of 2018.

Net revenue for the first quarter of 2018 was US$1,313.1 million, representing an increase of approximately 3% from US$1,277.2 million for the comparable period in 2017. The increase in net revenue was primarily attributable to higher group-wide gross gaming revenues in all gaming segments, partially offset by higher commissions reported as a reduction in revenue upon the Company’s adoption of a new revenue recognition standard issued by the Financial Accounting Standards Board (the “New Revenue Standard”). The Company adopted the New Revenue Standard using the modified retrospective method from January 1, 2018.  Results for the period beginning after January 1, 2018 are presented under the New Revenue Standard, while prior year amounts are not adjusted and continue to be reported in accordance with the previous basis. Under the previous basis, before the adoption of the New Revenue Standard, net revenue for the first quarter of 2018 would have been US$1,412.9 million, which would have represented an increase of approximately 11% from the US$1,277.2 million for the comparable period in 2017. 

Operating income for the first quarter of 2018 was US$221.1 million, compared with operating income of US$158.5 million in the first quarter of 2017, representing an increase of 40%.    

Adjusted property EBITDA(1) was US$401.8 million for the first quarter of 2018, as compared to Adjusted property EBITDA of US$353.3 million in the first quarter of 2017, representing an increase of 14%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to the higher contribution from Studio City and Altira Macau driven by increased gross gaming revenues in all gaming segments.

Net income attributable to Melco Resorts & Entertainment Limited for the first quarter of 2018 was US$156.6 million, or US$0.32 per ADS, compared with US$113.4 million, or US$0.23 per ADS, in the first quarter of 2017. The net income attributable to noncontrolling interests during the first quarter of 2018 of US$6.7 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented “Macau has had a strong start to the year with year-to-date gaming revenue growth at approximately 22% compared to the same period in 2017. We continue to be optimistic on the outlook of the Macau market as the city’s gaming and entertainment markets continue to benefit from the improving demand environment, the anticipated completion of the Hong Kong-Zhuhai-Macau Bridge and the ongoing build-out of Cotai.

“Despite multiple new resorts opening, Melco remains the leader in Macau’s premium mass market with our dedication to quality recognized by the 2018 Michelin Guide Hong Kong Macau and Forbes Travel Guide, which awarded Melco with 7 Stars and 83 Stars, respectively, making us the integrated resort operator with the most Michelin-starred restaurants and Forbes Star awards in Asia. With the eagerly awaited opening of Morpheus, we expect to further solidify our leadership position in this important market segment as we will deliver a genuine landmark for all of Macau.

“At Studio City, we are embarking on a series of property upgrades to refine the entertainment offerings and improve accessibility into the resort, which we believe will facilitate the continuing ramp up that the property has experienced over the past several quarters. As previously announced, the Macau government has recently granted an extension of the development period under the Studio City land concession contract to July 2021, enabling us to continue to develop our construction plan for the phase 2 expansion of Studio City, which we believe will augment the existing room inventory and entertainment offerings, as well as contribute to the continued growth and development of this property.  

“In the Philippines, City of Dreams Manila delivered another strong quarter, despite new supply coming on stream within Entertainment City. The 44% year-over-year increase in mass table gross gaming revenue in the first quarter was particularly encouraging and highlights our commitment to drive high quality earnings growth.

“Aimed at optimizing our operating excellence, we announced the redeployment of our senior operating management in January. I am pleased to report that we have started seeing early signs of improvement, with City of Dreams’ mass hold rate trending up to over 32% and its mass table gross gaming revenue increasing over 8% sequentially in the first quarter of 2018.

“As also previously announced, the Board has recently approved a new US$500 million share repurchase program, which is consistent with our strategy of, where appropriate, returning excess capital to shareholders.

“Lastly, Japan continues to be a core focus for us. With the anticipated passage of the Integrated Resorts (IR) implementation bill later this year, the country will take a major step forward toward the development of the next generation of integrated resorts that will operate in this incredibly exciting, yet currently underpenetrated, tourism destination. With our focus on the premium end of the market, high quality assets, dedication to world-class entertainment offerings, market-leading social safeguards and compliance culture, and our commitment to being an ideal partner to local governments and communities alike, we believe Melco is in a strong position to help Japan realize the vision for integrated resort development with unique Japanese touches.”
  
City of Dreams First Quarter Results

For the quarter ended March 31, 2018, net revenue at City of Dreams was US$640.5 million compared to US$693.2 million in the first quarter of 2017. City of Dreams generated Adjusted EBITDA of US$208.0 million in the first quarter of 2018 compared with Adjusted EBITDA of US$213.5 million in the first quarter of 2017.

Rolling chip volume totaled US$11.1 billion for the first quarter of 2018 versus US$12.6 billion in the first quarter of 2017. The rolling chip win rate was 3.0% in the first quarter of 2018 versus 2.7% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$1,182.2 million compared with US$1,059.8 million in the first quarter of 2017. The mass market table games hold percentage was 32.1% in the first quarter of 2018 compared to 36.9% in the first quarter of 2017.

Gaming machine handle for the first quarter of 2018 was US$1,000.7 million, compared with US$1,025.9 million in the first quarter of 2017. The gaming machine win rate was 5.0% in the first quarter of 2018 versus 3.4% in the first quarter of 2017.

Total non-gaming revenue at City of Dreams in the first quarter of 2018 was US$72.8 million, compared with US$77.8 million in the first quarter of 2017.

Altira Macau First Quarter Results

For the quarter ended March 31, 2018, net revenue at Altira Macau was US$120.4 million compared to US$109.1 million in the first quarter of 2017. Altira Macau generated Adjusted EBITDA of US$18.0 million in the first quarter of 2018 compared with Adjusted EBITDA of US$3.7 million in the first quarter of 2017. The year-on-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments.

Rolling chip volume totaled US$5.6 billion in the first quarter of 2018 versus US$4.1 billion in the first quarter of 2017. The rolling chip win rate was 3.0% in the first quarter of 2018 versus 3.1% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$139.3 million in the first quarter of 2018, representing an increase from US$99.7 million generated in the comparable period in 2017. The mass market table games hold percentage was 19.4% in the first quarter of 2018 compared with 20.6% in the first quarter of 2017.

Gaming machine handle for the first quarter of 2018 was US$26.0 million, compared with US$8.0 million in the first quarter of 2017. The gaming machine win rate was 5.4% in the first quarter of 2018 versus 5.8% in the first quarter of 2017.

Total non-gaming revenue at Altira Macau in the first quarter of 2018 was US$6.7 million, compared with US$6.6 million in the first quarter of 2017.

Mocha Clubs First Quarter Results

Net revenue from Mocha Clubs totaled US$30.4 million in the first quarter of 2018 as compared to US$31.1 million in the first quarter of 2017. Mocha Clubs generated US$6.9 million of Adjusted EBITDA in the first quarter of 2018 compared with US$7.1 million in the same period in 2017.

Gaming machine handle for the first quarter of 2018 was US$654.6 million, compared with US$603.1 million in the first quarter of 2017. The gaming machine win rate was 4.6% in the first quarter of 2018 versus 5.0% in the first quarter of 2017.

Studio City First Quarter Results

For the quarter ended March 31, 2018, net revenue at Studio City was US$368.4 million compared to US$277.9 million in the first quarter of 2017. Studio City generated Adjusted EBITDA of US$110.1 million in the first quarter of 2018 compared with Adjusted EBITDA of US$67.8 million in the first quarter of 2017. The year-on-year improvement in Adjusted EBITDA was primarily a result of better performances in all gaming segments.

Rolling chip volume totaled US$6.6 billion for the first quarter of 2018 versus US$3.6 billion in the first quarter of 2017. The rolling chip win rate was 2.7% in the first quarter of 2018 versus 2.4% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$825.2 million in the first quarter of 2018 compared with US$656.3 million in the first quarter of 2017. The mass market table games hold percentage was 27.4% in the first quarter of 2018 compared to 26.4% in the first quarter of 2017.

Gaming machine handle for the first quarter of 2018 was US$581.6 million, compared with US$497.4 million in the first quarter of 2017. The gaming machine win rate was 3.7% for both quarters ended March 31, 2018 and 2017.

Total non-gaming revenue at Studio City in the first quarter of 2018 was US$48.2 million, compared with US$50.8 million in the first quarter of 2017.

City of Dreams Manila First Quarter Results

For the quarter ended March 31, 2018, net revenue at City of Dreams Manila was US$142.2 million compared to US$157.4 million in the first quarter of 2017. City of Dreams Manila generated Adjusted EBITDA of US$58.8 million in the first quarter of 2018 compared to US$61.1 million in the comparable period of 2017.

Rolling chip volume totaled US$2.8 billion for the first quarter of 2018 versus US$2.4 billion in the first quarter of 2017. The rolling chip win rate was 2.9% in the first quarter of 2018 versus 3.4% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$188.2 million for the first quarter of 2018, compared with US$153.9 million in the first quarter of 2017. The mass market table games hold percentage was 33.8% in the first quarter of 2018 compared to 28.7% in the first quarter of 2017.

Gaming machine handle for the first quarter of 2018 was US$820.9 million, compared with US$729.9 million in the first quarter of 2017. The gaming machine win rate was 5.6% in the first quarter of 2018 versus 6.2% in the first quarter of 2017.

Total non-gaming revenue at City of Dreams Manila in the first quarter of 2018 was US$29.6 million, compared with US$27.6 million in the first quarter of 2017.
                             
Other Factors Affecting Earnings

Total net non-operating expenses for the first quarter of 2018 were US$55.9 million, which mainly included interest expenses, net of capitalized interest, of US$58.7 million. We recorded US$11.2 million of capitalized interest during the first quarter of 2018 relating to the development of Morpheus at City of Dreams.

Depreciation and amortization costs of US$129.7 million were recorded in the first quarter of 2018 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 Expenditures

Total cash and bank balances as of March 31, 2018 were US$1.4 billion, including US$5.0 million of bank deposits with original maturities over three months and US$84.4 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the first quarter of 2018, was US$3.5 billion.

Capital expenditures for the first quarter of 2018 were US$89.9 million, which predominantly related to Morpheus and other various projects at City of Dreams.

Dividend Declaration

On May 3, 2018, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.045 per ordinary share (equivalent to US$0.135 per ADS) for the first quarter of 2018 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about May 23, 2018 to our shareholders whose names appear on the register of members of the Company at the close of business on May 14, 2018, 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 first quarter 2018 financial results on Thursday, May 3, 2018 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 

US Toll / International 

HK Toll 

HK Toll Free

Japan Toll 

Japan Toll Free     

UK Toll Free

Australia Toll

Australia Toll Free

Philippines Toll Free

Passcode 
1 866 519 4004

1 845 675 0437

852 3018 6771

800 906 601

81 3 4503 6012

012 092 5376

080 8234 6646

61 290 833 212

1 800 411 623

1 800 1651 0607

MLCO
  

 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

US Toll / International

HK Toll Free 

Japan Toll 

Japan Toll Free 

Philippines Toll Free

Conference ID
1 855 452 5696

1 646 254 3697

800 963 117

81 3 4580 6717

012 095 9034

1 800 1612 0166

6692958
                      


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 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, Corporate and Other 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 pre-opening costs, development costs, property charges and other, 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. 

For investment community, please contact:
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

       
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 
 March 31, 
  2018   2017  
  (Unaudited)  (Unaudited) 
       
OPERATING REVENUES      
Casino $   1,153,753   $   1,189,009  
Rooms   67,571     66,437  
Food and beverage   48,248     44,826  
Entertainment, retail and other   43,576     52,882  
Gross revenues   1,313,148     1,353,154  
Less: promotional allowances   -      (75,934) 
Net revenues   1,313,148     1,277,220  
       
OPERATING COSTS AND EXPENSES      
Casino   (754,049)    (802,733) 
Rooms   (15,826)    (8,190) 
Food and beverage   (37,087)    (14,620) 
Entertainment, retail and other   (22,962)    (22,408) 
General and administrative   (108,226)    (110,795) 
Payments to the Philippine Parties   (11,377)    (15,439) 
Pre-opening costs   (2,348)    (475) 
Development costs   (3,889)    (1,017) 
Amortization of gaming subconcession   (14,309)    (14,309) 
Amortization of land use rights   (5,704)    (5,704) 
Depreciation and amortization   (109,687)    (117,569) 
Property charges and other   (6,546)    (5,464) 
Total operating costs and expenses   (1,092,010)    (1,118,723) 
OPERATING INCOME   221,138     158,497  
NON-OPERATING INCOME (EXPENSES)      
Interest income   1,409     557  
Interest expenses, net of capitalized interest   (58,736)    (65,843) 
Other finance costs   (1,377)    (1,501) 
Foreign exchange gains, net   4,624     8,709  
Other (expenses) income, net   (1,806)    659  
Total non-operating expenses, net   (55,886)    (57,419) 
INCOME BEFORE INCOME TAX   165,252     101,078  
INCOME TAX (EXPENSE) CREDIT    (1,938)    1,753  
NET INCOME   163,314     102,831  
NET (INCOME) LOSS ATTRIBUTABLE TO       
  NONCONTROLLING INTERESTS   (6,681)    10,615  
NET INCOME ATTRIBUTABLE TO       
  MELCO RESORTS & ENTERTAINMENT LIMITED $   156,633   $   113,446  
       
NET INCOME ATTRIBUTABLE TO       
  MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:    
  Basic $  0.107  $  0.077  
  Diluted$  0.106  $  0.077  
       
NET INCOME ATTRIBUTABLE TO       
  MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:    
  Basic $  0.320  $  0.232  
  Diluted$  0.317  $  0.231  
       
WEIGHTED AVERAGE SHARES OUTSTANDING      
  USED IN NET INCOME ATTRIBUTABLE TO       
  MELCO RESORTS & ENTERTAINMENT LIMITED     
  PER SHARE CALCULATION:      
  Basic    1,469,739,909     1,465,423,013  
  Diluted   1,483,754,520     1,476,279,580  
       
       
Note The Company adopted the New Revenue Standard using the modified retrospective method from January 1, 2018. Results for the period beginning after January 1, 2018 are presented under the New Revenue Standard, while prior year amounts are not adjusted and continue to be reported in accordance with the previous basis. 
       

 

      
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
      
      
 March 31, December 31,
 2018  2017 
  (Unaudited)  (Audited)
      
ASSETS     
      
CURRENT ASSETS     
Cash and cash equivalents $   1,328,289   $   1,408,211 
Investment securities   94,090     89,874 
Bank deposits with original maturities over three months   4,987     9,884 
Restricted cash   84,232     45,412 
Accounts receivable, net   195,557     176,544 
Amounts due from affiliated companies   3,459     2,377 
Inventories   34,612     34,988 
Prepaid expenses and other current assets   75,404     77,503 
Total current assets   1,820,630     1,844,793 
      
PROPERTY AND EQUIPMENT, NET   5,692,165     5,730,760 
GAMING SUBCONCESSION, NET   241,774     256,083 
INTANGIBLE ASSETS   4,220     4,220 
GOODWILL   81,915     81,915 
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS   199,296     189,645 
RESTRICTED CASH   130     130 
DEFERRED TAX ASSETS   6     11 
LAND USE RIGHTS, NET   781,795     787,499 
TOTAL ASSETS $   8,821,931   $   8,895,056 
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
CURRENT LIABILITIES     
Accounts payable $   18,143   $   16,041 
Accrued expenses and other current liabilities   1,442,394     1,563,585 
Income tax payable   4,464     3,179 
Capital lease obligations, due within one year    32,707     33,387 
Current portion of long-term debt, net   194,179     51,032 
Amounts due to affiliated companies   12,930     16,790 
Total current liabilities   1,704,817     1,684,014 
      
LONG-TERM DEBT, NET   3,347,442     3,506,530 
OTHER LONG-TERM LIABILITIES   39,594     48,087 
DEFERRED TAX LIABILITIES   54,392     53,994 
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR   254,651     265,896 
AMOUNTS DUE TO AFFILIATED COMPANIES   919     919 
      
SHAREHOLDERS' EQUITY     
Ordinary shares   14,830     14,784 
Treasury shares   (117)    (90)
Additional paid-in capital   3,677,324     3,671,805 
Accumulated other comprehensive losses    (28,195)    (26,610)
Accumulated losses   (694,267)    (772,338)
Total Melco Resorts & Entertainment Limited shareholders’ equity   2,969,575     2,887,551 
Noncontrolling interests   450,541     448,065 
Total equity   3,420,116     3,335,616 
TOTAL LIABILITIES AND EQUITY $   8,821,931  $  8,895,056 
        

 

       
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 
 March 31, 
 2018  2017  
 (Unaudited) (Unaudited) 
       
 Net Income Attributable to Melco Resorts & Entertainment Limited$  156,633  $  113,446  
Pre-opening Costs   2,348     475  
  Development Costs   3,889     1,017  
Property Charges and Other   6,546     5,464  
  Income Tax Impact on Adjustments   -      (259) 
Noncontrolling Interests Impact on Adjustments   (962)    8  
Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited$  168,454  $  120,151  
       
ADJUSTED NET INCOME ATTRIBUTABLE TO      
  MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:      
  Basic $  0.115  $  0.082  
  Diluted$  0.113  $  0.081  
       
ADJUSTED NET INCOME ATTRIBUTABLE TO      
  MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:      
  Basic $  0.344  $  0.246  
  Diluted$  0.340  $  0.244  
       
WEIGHTED AVERAGE SHARES OUTSTANDING USED IN       
  ADJUSTED NET INCOME ATTRIBUTABLE TO       
  MELCO RESORTS & ENTERTAINMENT LIMITED      
  PER SHARE CALCULATION:      
  Basic    1,469,739,909     1,465,423,013  
  Diluted   1,483,754,520     1,476,279,580  
       

 

                     
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 March 31, 2018 
 Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
 Corporate
and Other
Total 
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)(Unaudited) 
                     
Operating Income (Loss) $  12,649  $  5,320  $  161,947 $  62,764  $  28,107  $  (49,649)$  221,138 
                     
  Payments to the Philippine Parties   -      -      -     -      11,377     -     11,377 
  Land Rent to Belle Corporation   -      -      -     -      764     -     764 
  Pre-opening Costs   -      -      2,306    42     -      -     2,348 
  Development Costs   -      -      -     -      -      3,889    3,889 
  Depreciation and Amortization   4,846     2,083     40,163    44,541     19,173     18,894    129,700 
  Share-based Compensation   71     27     858    336     (610)    3,836    4,518 
  Property Charges and Other   461     (490)    2,741    2,367     -      1,467    6,546 
Adjusted EBITDA   18,027     6,940     208,015    110,050     58,811     (21,563)   380,280 
  Corporate and Other Expenses   -      -      -     -      -      21,563    21,563 
Adjusted Property EBITDA$  18,027   $   6,940   $   208,015  $   110,050   $   58,811   $   -   $   401,843 
                     
                     
 Three Months Ended March 31, 2017 
 Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
 Corporate
and Other
Total 
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)(Unaudited) 
                     
Operating (Loss) Income$  (2,073) $  4,863  $  164,399 $  21,555  $  23,497  $  (53,744)$  158,497 
                     
  Payments to the Philippine Parties   -      -      -     -      15,439     -     15,439 
  Land Rent to Belle Corporation   -      -      -     -      791     -     791 
  Pre-opening Costs   -      -      494    (19)    -      -     475 
  Development Costs   -      -      -     -      -      1,017    1,017 
  Depreciation and Amortization   5,689     2,187     44,779    45,976     21,498     17,453    137,582 
  Share-based Compensation   42     (6)    526    286     (87)    826    1,587 
  Property Charges and Other   57     62     3,343    -      -      2,002    5,464 
Adjusted EBITDA   3,715     7,106     213,541    67,798     61,138     (32,446)   320,852 
  Corporate and Other Expenses   -      -      -     -      -      32,446    32,446 
Adjusted Property EBITDA$  3,715   $   7,106   $   213,541  $   67,798   $   61,138   $   -   $   353,298 
                     

 

       
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 
 March 31, 
 2018 2017  
 (Unaudited) (Unaudited) 
       
Net Income Attributable to Melco Resorts & Entertainment Limited$  156,633 $  113,446  
Net Income (Loss) Attributable to Noncontrolling Interests   6,681    (10,615) 
Net Income   163,314    102,831  
Income Tax Expense (Credit)   1,938    (1,753) 
Interest and Other Non-Operating Expenses, Net   55,886    57,419  
Property Charges and Other   6,546    5,464  
Share-based Compensation   4,518    1,587  
Depreciation and Amortization   129,700    137,582  
Development Costs   3,889    1,017  
Pre-opening Costs   2,348    475  
Land Rent to Belle Corporation   764    791  
Payments to the Philippine Parties   11,377    15,439  
Adjusted EBITDA   380,280    320,852  
Corporate and Other Expenses   21,563    32,446  
Adjusted Property EBITDA$  401,843 $  353,298  
       

 

         
 Melco Resorts & Entertainment Limited and Subsidiaries
 Supplemental Data Schedule
         
      Three Months Ended
      March 31,
       2018   2017 
Room Statistics:      
         
 Altira Macau      
  Average daily rate (3)  $  195  $  207 
  Occupancy per available room   99%  92%
  Revenue per available room (4)  $  194  $  190 
         
 City of Dreams      
  Average daily rate (3)  $  204  $  200 
  Occupancy per available room   98%  97%
  Revenue per available room (4)  $  201  $  194 
         
 Studio City      
         
  Average daily rate (3)  $  139  $  139 
  Occupancy per available room   100%  99%
  Revenue per available room (4)  $  139  $  138 
         
         
 City of Dreams Manila     
  Average daily rate (3)  $  158  $  154 
  Occupancy per available room   98%  98%
  Revenue per available room (4)  $  156  $  150 
         
         
         
Other Information:      
 Altira Macau      
  Average number of table games    104     114 
  Average number of gaming machines    122     56 
  Table games win per unit per day (5) $  21,120  $  14,304 
  Gaming machines win per unit per day (6) $  129  $  93 
         
 City of Dreams      
  Average number of table games    478     480 
  Average number of gaming machines    665     839 
  Table games win per unit per day (5) $  16,616  $  17,003 
  Gaming machines win per unit per day (6) $  833  $  467 
         
 Studio City      
  Average number of table games    294     282 
  Average number of gaming machines    943     972 
  Table games win per unit per day (5) $  15,296  $  10,179 
  Gaming machines win per unit per day (6) $  250  $  211 
         
 City of Dreams Manila     
  Average number of table games    294     270 
  Average number of gaming machines    1,836     1,773 
  Table games win per unit per day (5) $  5,419  $  5,193 
  Gaming machines win per unit per day (6) $  280  $  285 
         
         
  (3) Average daily rate is calculated by dividing total room revenues including the retail value of complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms
  (4) Revenue per available room is calculated by dividing total room revenues including the retail value of complimentary rooms (less service charges, if any) 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