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MCE_2015 Q1 Earnings Release 547 KB
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Net revenue for the first quarter of 2015 was
Adjusted property EBITDA(1) was
On a U.S. GAAP basis, net income attributable to
Mr.
"While the demand environment in
"With a market-leading array of premium non-gaming amenities,
"We have always strived to offer visitors a multi-faceted experience and have consistently supported the Macau Government's long term vision for
"
"
"We remain firm believers in
"City of Dreams Manila continues to build on its early success, with its mass market gaming operations and non-gaming attractions delivering robust growth since its opening in
"City of Dreams Manila represents an important milestone for
Community Support and Investment
As an employer of choice with a strong and deep heritage in
- We recently announced the "Foundation Acceleration Program," a new management development program for our local employees. It aims to enhance preparedness for management responsibilities through a structured program.
-
In 2009, we established
Macau's first "In-house Learning Academy ," offering over 200 courses each year to all our employees who are wanting to expand their education and widen their career path. These programs will now be offered to employees of local business and SMEs as a commitment to developing a longer term sustainable economic model inMacau .
-
Our "Back-to-School" program, which started in 2010 in partnership with the
Department of Education , isMacau's first and only in-house high school diploma program, giving our employees a chance to complete high school education.
-
Our "Dare to Dream" series, which began in 2012, offered
Macau youths a once-in-a-lifetime opportunity to study with international maestros includingFranco Dragone , the creator ofThe House of Dancing Water show, legendary piano masterYundi Li , and DameZaha Hadid , the world-renowned architect.
City of Dreams First Quarter Results
For the quarter ended
Rolling chip volume totaled
Mass market table games drop decreased to
Gaming machine handle for the first quarter of 2015 was
Total non-gaming revenue at City of Dreams in the first quarter of 2015 was
Altira Macau First Quarter Results
For the quarter ended
Rolling chip volume totaled
In the mass market table games segment, drop totaled
Gaming machine handle for the first quarter of 2015 was
Total non-gaming revenue at Altira Macau in the first quarter of 2015 was
Mocha Clubs First Quarter Results
Net revenue from
The number of gaming machines in operation at
City of Dreams Manila First Quarter Results
City of Dreams Manila started operations on
Rolling chip volume totaled
Mass market table games drop was
Gaming machine handle for the first quarter of 2015 was
Total non-gaming revenue at City of Dreams Manila in the first quarter of 2015 was
Other Factors Affecting Earnings
Total net non-operating expenses for the first quarter of 2015 were
Depreciation and amortization costs of
Financial Position and Capital Expenditure
Total cash and bank balances as of
Capital expenditures for the first quarter of 2015 were
Conference Call Information
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 | 080 823 46646 |
Australia Toll Free | 1 800 457 076 |
Philippines Toll Free | 1 800 165 10607 |
Passcode | MPEL |
An audio webcast will also be available at 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 | 1 800 161 20166 |
Conference ID | 27003361 |
Safe Harbor Statement
This 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
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 , gain on disposal of assets held for sale 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 toBelle Corporation , gain on disposal of assets held for sale, corporate and others expenses and other non-operating income and expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as a supplemental disclosure because management believes that 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 and property charges and others. Adjusted net income attributable to
Melco Crown Entertainment and adjusted net income attributable toMelco Crown Entertainment per share ("EPS") are presented as supplemental disclosures because management believes that 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 toMelco Crown Entertainment and adjusted net income attributable toMelco 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 toMelco 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
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 enquiry, please contact: |
Maggie Ma |
Head of Corporate Communications |
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 March 31, |
||
2015 | 2014 | |
(Unaudited) | (Unaudited) | |
OPERATING REVENUES | ||
Casino | $ 1,011,242 | $ 1,320,139 |
Rooms | 44,563 | 33,434 |
Food and beverage | 29,507 | 21,344 |
Entertainment, retail and others | 23,217 | 27,315 |
Gross revenues | 1,108,529 | 1,402,232 |
Less: promotional allowances | (54,277) | (44,913) |
Net revenues | 1,054,252 | 1,357,319 |
OPERATING COSTS AND EXPENSES | ||
Casino | (716,794) | (913,630) |
Rooms | (5,255) | (3,126) |
Food and beverage | (8,001) | (5,732) |
Entertainment, retail and others | (15,122) | (14,294) |
General and administrative | (93,430) | (66,465) |
Payments to the Philippine Parties | (3,136) | -- |
Pre-opening costs | (41,278) | (8,531) |
Development costs | (20) | (1,525) |
Amortization of gaming subconcession | (14,309) | (14,309) |
Amortization of land use rights | (16,118) | (16,118) |
Depreciation and amortization | (80,277) | (64,402) |
Property charges and others | (301) | (1,692) |
Gain on disposal of assets held for sale | -- | 22,072 |
Total operating costs and expenses | (994,041) | (1,087,752) |
OPERATING INCOME | 60,211 | 269,567 |
NON-OPERATING INCOME (EXPENSES) | ||
Interest income | 1,820 | 3,875 |
Interest expenses, net of capitalized interest | (27,039) | (31,868) |
Other finance costs | (12,382) | (11,657) |
Foreign exchange gain (loss), net | 1,254 | (2,228) |
Other income, net | 548 | 558 |
Total non-operating expenses, net | (35,799) | (41,320) |
INCOME BEFORE INCOME TAX | 24,412 | 228,247 |
INCOME TAX EXPENSE | (574) | (2,689) |
NET INCOME | 23,838 | 225,558 |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 36,791 | 13,985 |
NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED | $ 60,629 | $ 239,543 |
NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE: | ||
Basic | $ 0.038 | $ 0.145 |
Diluted | $ 0.037 | $ 0.144 |
NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS: | ||
Basic | $ 0.113 | $ 0.435 |
Diluted | $ 0.112 | $ 0.431 |
WEIGHTED AVERAGE SHARES USED IN NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE CALCULATION: | ||
Basic | 1,616,031,719 | 1,651,289,415 |
Diluted | 1,627,484,296 | 1,666,365,474 |
Melco Crown Entertainment Limited and Subsidiaries | ||
Condensed Consolidated Balance Sheets | ||
(In thousands of U.S. dollars) | ||
March 31, 2015 |
December 31, 2014 |
|
(Unaudited) | (Audited) | |
ASSETS | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,498,907 | $ 1,597,655 |
Bank deposits with original maturity over three months | 123,469 | 110,616 |
Restricted cash | 1,201,307 | 1,447,034 |
Accounts receivable, net | 235,346 | 253,665 |
Amounts due from affiliated companies | 927 | 1,079 |
Deferred tax assets | 8 | 532 |
Income tax receivable | 4 | 15 |
Inventories | 22,293 | 23,111 |
Prepaid expenses and other current assets | 65,292 | 69,254 |
Total current assets | 3,147,553 | 3,502,961 |
PROPERTY AND EQUIPMENT, NET | 5,071,043 | 4,696,391 |
GAMING SUBCONCESSION, NET | 413,485 | 427,794 |
INTANGIBLE ASSETS, NET | 4,220 | 4,220 |
GOODWILL | 81,915 | 81,915 |
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS | 237,752 | 287,558 |
RESTRICTED CASH | 360,785 | 369,549 |
DEFERRED TAX ASSETS | 92 | 115 |
DEFERRED FINANCING COSTS, NET | 163,875 | 174,872 |
LAND USE RIGHTS, NET | 871,070 | 887,188 |
TOTAL ASSETS | $ 10,351,790 | $ 10,432,563 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
CURRENT LIABILITIES | ||
Accounts payable | $ 15,737 | $ 14,428 |
Accrued expenses and other current liabilities | 977,050 | 1,005,720 |
Income tax payable | 4,871 | 6,621 |
Capital lease obligations, due within one year | 25,865 | 23,512 |
Current portion of long-term debt | 301,659 | 262,750 |
Amounts due to affiliated companies | 1,759 | 3,626 |
Total current liabilities | 1,326,941 | 1,316,657 |
LONG-TERM DEBT | 3,534,101 | 3,640,031 |
OTHER LONG-TERM LIABILITIES | 112,288 | 93,441 |
DEFERRED TAX LIABILITIES | 57,917 | 58,949 |
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR | 278,412 | 278,027 |
LAND USE RIGHTS PAYABLE | -- | 3,788 |
SHAREHOLDERS' EQUITY | ||
Ordinary shares | 16,309 | 16,337 |
Treasury shares | (1,083) | (33,167) |
Additional paid-in capital | 3,064,343 | 3,092,943 |
Accumulated other comprehensive losses | (17,399) | (17,149) |
Retained earnings | 1,260,172 | 1,227,177 |
Total Melco Crown Entertainment Limited shareholders' equity | 4,322,342 | 4,286,141 |
Noncontrolling interests | 719,789 | 755,529 |
Total equity | 5,042,131 | 5,041,670 |
TOTAL LIABILITIES AND EQUITY | $ 10,351,790 | $ 10,432,563 |
Melco Crown Entertainment Limited and Subsidiaries | ||
Reconciliation of Net Income 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 March 31, |
||
2015 | 2014 | |
(Unaudited) | (Unaudited) | |
Net Income Attributable to Melco Crown Entertainment Limited | $ 60,629 | $ 239,543 |
Pre-opening Costs, Net | 26,157 | 6,548 |
Development Costs, Net | 20 | 1,525 |
Property Charges and Others, Net | 301 | 1,692 |
Adjusted Net Income Attributable to Melco Crown Entertainment Limited | $ 87,107 | $ 249,308 |
ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE: | ||
Basic | $ 0.054 | $ 0.151 |
Diluted | $ 0.054 | $ 0.150 |
ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS: | ||
Basic | $ 0.162 | $ 0.453 |
Diluted | $ 0.161 | $ 0.449 |
WEIGHTED AVERAGE SHARES USED IN ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE CALCULATION: | ||
Basic | 1,616,031,719 | 1,651,289,415 |
Diluted | 1,627,484,296 | 1,666,365,474 |
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 March 31, 2015 | |||||||
City of | |||||||
Altira | City of | Dreams | Corporate | ||||
Macau | Mocha | Dreams | Studio City | Manila | and Others | Total | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Operating (Loss) Income | $ (59) | $ 5,128 | $ 182,719 | $ (23,718) | $ (50,363) | $ (53,496) | $ 60,211 |
Payments to the Philippine Parties | -- | -- | -- | -- | 3,136 | -- | 3,136 |
Land Rent to Belle Corporation | -- | -- | -- | -- | 894 | -- | 894 |
Pre-opening Costs | -- | -- | 361 | 12,334 | 26,201 | 2,382 | 41,278 |
Development Costs | -- | -- | -- | -- | -- | 20 | 20 |
Depreciation and Amortization | 6,862 | 3,132 | 52,156 | 10,893 | 21,305 | 16,356 | 110,704 |
Share-based Compensation | 30 | 21 | 262 | 29 | 1,703 | 2,766 | 4,811 |
Property Charges and Others | -- | -- | 301 | -- | -- | -- | 301 |
Adjusted EBITDA | 6,833 | 8,281 | 235,799 | (462) | 2,876 | (31,972) | 221,355 |
Corporate and Others Expenses | -- | -- | -- | -- | -- | 31,972 | 31,972 |
Adjusted Property EBITDA | $ 6,833 | $ 8,281 | $ 235,799 | $ (462) | $ 2,876 | $ -- | $ 253,327 |
Three Months Ended March 31, 2014 | |||||||
City of | |||||||
Altira | City of | Dreams | Corporate | ||||
Macau | Mocha | Dreams | Studio City | Manila | and Others | Total | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Operating Income (Loss) | $ 26,915 | $ 6,727 | $ 283,415 | $ (12,039) | $ (8,794) | $ (26,657) | $ 269,567 |
Land Rent to Belle Corporation | -- | -- | -- | -- | 880 | -- | 880 |
Pre-opening Costs | -- | 614 | 117 | 855 | 6,065 | -- | 7,651 |
Development Costs | -- | -- | -- | -- | -- | 1,525 | 1,525 |
Depreciation and Amortization | 7,820 | 2,959 | 56,848 | 10,883 | 446 | 15,873 | 94,829 |
Share-based Compensation | 32 | 46 | 228 | -- | 1,792 | 2,567 | 4,665 |
Property Charges and Others | -- | 935 | 757 | -- | -- | -- | 1,692 |
Gain on Disposal of Assets Held For Sale | -- | -- | -- | -- | -- | (22,072) | (22,072) |
Adjusted EBITDA | 34,767 | 11,281 | 341,365 | (301) | 389 | (28,764) | 358,737 |
Corporate and Others Expenses | -- | -- | -- | -- | -- | 28,764 | 28,764 |
Adjusted Property EBITDA | $ 34,767 | $ 11,281 | $ 341,365 | $ (301) | $ 389 | $ -- | $ 387,501 |
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) | ||
Three Months Ended March 31, |
||
2015 | 2014 | |
(Unaudited) | (Unaudited) | |
Adjusted Property EBITDA | $ 253,327 | $ 387,501 |
Corporate and Others Expenses | (31,972) | (28,764) |
Adjusted EBITDA | 221,355 | 358,737 |
Payments to the Philippine Parties | (3,136) | -- |
Land Rent to Belle Corporation | (894) | (880) |
Pre-opening Costs | (41,278) | (7,651) |
Development Costs | (20) | (1,525) |
Depreciation and Amortization | (110,704) | (94,829) |
Share-based Compensation | (4,811) | (4,665) |
Property Charges and Others | (301) | (1,692) |
Gain on Disposal of Assets Held For Sale | -- | 22,072 |
Interest and Other Non-Operating Expenses, Net | (35,799) | (41,320) |
Income Tax Expense | (574) | (2,689) |
Net Income | 23,838 | 225,558 |
Net Loss Attributable to Noncontrolling Interests | 36,791 | 13,985 |
Net Income Attributable to Melco Crown Entertainment Limited | $ 60,629 | $ 239,543 |
Melco Crown Entertainment Limited and Subsidiaries | ||
Supplemental Data Schedule | ||
Three Months Ended March 31, |
||
2015 | 2014 | |
Room Statistics: | ||
Altira Macau | ||
Average daily rate (3) | $ 228 | $ 236 |
Occupancy per available room | 99% | 99% |
Revenue per available room (4) | $ 225 | $ 233 |
City of Dreams | ||
Average daily rate (3) | $ 206 | $ 197 |
Occupancy per available room | 99% | 98% |
Revenue per available room (4) | $ 203 | $ 194 |
City of Dreams Manila | ||
Average daily rate (3) | $ 227 | N/A |
Occupancy per available room | 76% | N/A |
Revenue per available room (4) | $ 173 | N/A |
Other Information: | ||
Altira Macau | ||
Average number of table games | 121 | 142 |
Average number of gaming machines | 59 | N/A |
Table games win per unit per day (5) | $ 19,470 | $ 25,217 |
Gaming machines win per unit per day (6) | $ 81 | N/A |
City of Dreams | ||
Average number of table games | 506 | 484 |
Average number of gaming machines | 1,265 | 1,183 |
Table games win per unit per day (5) | $ 19,021 | $ 28,244 |
Gaming machines win per unit per day (6) | $ 380 | $ 536 |
City of Dreams Manila | ||
Average number of table games | 231 | N/A |
Average number of gaming machines | 1,745 | N/A |
Table games win per unit per day (5) | $ 1,241 | N/A |
Gaming machines win per unit per day (6) | $ 145 | N/A |
(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 |