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For the first quarter of 2009, net revenue was
Adjusted EBITDA(1) was
The Company recorded a net loss for the first quarter of 2009 of
"We are less than two weeks away from the realization of many years of hard work and determination. Our aim was to meaningfully raise the bar for gaming entertainment in Asia, particularly for the emerging premium mass market customer, and to profitably diversify our portfolio of assets into the most attractive market segment in
Mr. Ho continued, "Our financial position remains strong and our balance sheet is one of the best in the gaming industry. We held approximately
"Subsequent to the end of the first quarter of 2009, we completed a follow on offering that injected approximately
Altira
For the quarter ending
Mr. Ho added, "Although we had a difficult comparison for Altira Macau in the first quarter, we are pleased with the property's results. Despite an 11% decline in rolling chip volume and a lower hold percentage, our sequential EBITDA performance remained solid due to strong cost containment programs."
Rolling chip volume totaled
In the mass market table games segment, drop (non rolling chip) totaled
Total non-gaming revenue at Altira Macau in the first quarter of 2009 was
Mocha Clubs 1Q Results
Net operating revenue from Mocha Clubs totaled
Mocha Clubs generated
The number of gaming machines in operation at the Mocha Clubs averaged 1,273 in the first quarter of 2009, an increase from 1,045 in the first quarter of 2008. Average net win per gaming machine per day was
On
Other Factors Affecting Earnings
Total non-operating expenses for the first quarter of 2009 were
Depreciation and amortization costs of
Financial Position and Capital Expenditure
Cash and cash equivalents as of
Capital expenditures for the first quarter of 2009 were
Conference Call Information
U.S. Toll Free Number: 1 800 659 2056 U.S. Toll Number (for international callers): 1 617 614 2714 Hong Kong Toll Number: 852 3002 1672 Hong Kong Toll Free Number: 800 96 3844 UK Toll Free Number: 00 800 280 02002 Australia Toll Free Number: 1 800 002 971 Passcode:MPEL
An audio webcast will also be available at http://www.melco-crown.com.
A replay of the call will be available on the same day at
U.S. Toll Free Number: 1 888 286 8010 U.S. Toll Number (for international callers): 1 617 801 6888 Passcode: 2404023
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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.
Non-GAAP Financial Measure
(1) "Adjusted EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, stock-based compensation costs, and other non-operating income and expenses. Adjusted EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted EBITDA as a measure 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 because it is used by some investors as a way 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 as a supplement to financial measures in accordance with U.S. generally accepted accounting principles ("GAAP"). However, adjusted EBITDA should not be considered as an alternative to operating income as an indicator of the Company's performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, adjusted EBITDA does not include depreciation and amortization or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using adjusted EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income (loss), net income (loss), 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 non-recurring charges, which are not reflected in adjusted EBITDA. Also, the Company's calculation of adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
About
The Company has strong support from both of its major shareholders,
Melco Crown Entertainment Limited Condensed Consolidated Statements of Operations (In Thousands of U.S. dollars, except share and per share data) Three Months Ended March 31, 2009 2008 ------------- ------------- (Unaudited) (Unaudited) OPERATING REVENUES Casino $ 213,001 $ 479,690 Rooms 4,451 4,081 Food and beverage 3,574 4,474 Entertainment, retail and others 2,323 1,277 ------------- ------------- Gross revenues 223,349 489,522 Less: promotional allowances (6,858) (6,654) ------------- ------------- Net revenues 216,491 482,868 ------------- ------------- OPERATING COSTS AND EXPENSES Casino (172,575) (375,630) Rooms (511) (507) Food and beverage (2,659) (3,356) Entertainment, retail and others (179) (295) General and administrative (22,293) (26,918) Pre-opening costs (18,286) (1,974) Amortization of gaming subconcession (14,309) (14,309) Amortization of land use rights (4,543) (4,601) Depreciation and amortization (14,709) (13,184) ------------- ------------- Total operating costs and expenses (250,064) (440,774) ------------- ------------- OPERATING (LOSS) INCOME (33,573) 42,094 ------------- ------------- NON-OPERATING (EXPENSES) INCOME Interest income, net 121 4,289 Other finance costs (1,196) (3,476) Foreign exchange loss, net (453) (185) Other income, net -- 15 ------------- ------------- Total non-operating (expenses) income (1,528) 643 ------------- ------------- (LOSS) INCOME BEFORE INCOME TAX (35,101) 42,737 INCOME TAX (EXPENSE) CREDIT (222) 496 ------------- ------------- NET (LOSS) INCOME $ (35,323) $ 43,233 ============= ============= (LOSS) INCOME PER SHARE: Basic $ (0.027) $ 0.033 ============= ============= Diluted $ (0.027) $ 0.033 ============= ============= (LOSS) INCOME PER ADS: Basic $ (0.080) $ 0.098 ============= ============= Diluted $ (0.080) $ 0.098 ============= ============= WEIGHTED AVERAGE SHARES USED IN (LOSS) INCOME PER SHARE CALCULATION: Basic 1,322,512,422 1,320,938,904 ============= ============= Diluted 1,322,512,422 1,323,027,629 ============= ============= Melco Crown Entertainment Limited Condensed Consolidated Balance Sheets (In Thousands of U.S. dollars) March 31, December 31, 2009 2008 ------------- ------------- (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 798,508 $ 815,144 Restricted cash -- 67,977 Accounts receivable, net 74,367 72,755 Amounts due from affiliated companies 7 650 Inventories 2,192 2,170 Prepaid expenses and other current assets 24,274 17,556 ------------- ------------- Total current assets 899,348 976,252 ------------- ------------- PROPERTY AND EQUIPMENT, NET 2,386,697 2,107,722 GAMING SUBCONCESSION, NET 756,906 771,216 INTANGIBLE ASSETS, NET 4,220 4,220 GOODWILL 81,915 81,915 LONG-TERM PREPAYMENT AND DEPOSITS 78,768 60,894 DEFERRED TAX ASSET -- 28 DEFERRED FINANCING COST 46,512 49,336 DEPOSIT FOR ACQUISITION OF LAND INTEREST 12,853 12,853 LAND USE RIGHTS, NET 429,310 433,853 ------------- ------------- TOTAL $ 4,696,529 $ 4,498,289 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 2,573 $ 2,494 Accrued expenses and other current liabilities 402,621 442,671 Income tax payable 274 1,954 Amounts due to affiliated companies 3,589 1,985 Amounts due to shareholders 1,085 1,032 ------------- ------------- Total current liabilities 410,142 450,136 ------------- ------------- LONG-TERM DEBT 1,683,205 1,412,516 OTHER LONG-TERM LIABILITIES 38,877 38,304 DEFERRED TAX LIABILITIES 19,025 19,191 LOANS FROM SHAREHOLDERS 115,647 115,647 LAND USE RIGHTS PAYABLE 46,751 53,891 SHAREHOLDERS' EQUITY Ordinary shares 13,308 13,216 Treasury shares (25) (4) Additional paid-in capital 2,699,277 2,689,257 Accumulated other comprehensive losses (36,175) (35,685) Accumulated losses (293,503) (258,180) ------------- ------------- Total shareholders' equity 2,382,882 2,408,604 ------------- ------------- TOTAL $ 4,696,529 $ 4,498,289 ============= ============= Melco Crown Entertainment Limited Reconciliation of Operating Income (Loss) to Adjusted EBITDA (In Thousands of U.S. dollars) Three Months Ended March 31, 2009 Altira Corporate Macau Mocha and Other Total --------- --------- ---------- --------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating Income (Loss) $ 8,934 $ 2,641 $ (45,148) $ (33,573) Pre-opening Costs -- -- 18,286 18,286 Depreciation and Amortization 11,005 4,033 18,523 33,561 Stock-based Compensation 267 100 2,649 3,016 --------- --------- ---------- --------- Adjusted EBITDA $ 20,206 $ 6,774 $ (5,690) $ 21,290 ========= ========= ========== ========= Three Months Ended March 31, 2008 Altira Corporate Macau Mocha and Other Total --------- --------- ---------- --------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating Income (Loss) $ 66,339 $ 3,198 $ (27,443) $ 42,094 Pre-opening Costs -- -- 1,974 1,974 Depreciation and Amortization 10,271 3,256 18,567 32,094 Stock-based Compensation 80 31 1,147 1,258 --------- --------- ---------- --------- Adjusted EBITDA $ 76,690 $ 6,485 $ (5,755) $ 77,420 ========= ========= ========== ========= Melco Crown Entertainment Limited Reconciliation of Adjusted EBITDA to Net (Loss) Income (In Thousands of U.S. dollars) Three Months Ended March 31, 2009 2008 ---------- ----------- (Unaudited) (Unaudited) Adjusted EBITDA $ 21,290 $ 77,420 Pre-opening Costs (18,286) (1,974) Depreciation and Amortization (33,561) (32,094) Stock-based Compensation (3,016) (1,258) Interest and Other Non-Operating (Expenses) Income, Net (1,528) 643 Income Tax (Expense) Credit (222) 496 ---------- ----------- Net (Loss) Income $ (35,323) $ 43,233 ========== =========== Melco Crown Entertainment Limited Supplemental Data Schedule Three months ended March 31, 2009 2008 -------- -------- AltiraMacau Average number of table games 254 243 Average number of gaming machines -- 240 Period end number of table games 255 246 Period end number of gaming machines -- 212 Table games win per unit per day (2) $ 11,555 $ 28,123 Gaming machines win per unit per day (3) $ -- $ 174 Average daily rate (4) $ 234 $ 233 Occupancy per available room 89% 92% Revenue per available room (5) $ 208 $ 213 (2) Table games win per unit per day is shown before discounts and commissions (3) Gaming machines win per unit per day is shown before deducting cost for slot points (4) Average daily rate is calculated by dividing total room revenue by total occupied rooms (5) Revenue per available room is calculated by dividing total room revenue by total rooms available
CONTACT:Melco Crown Entertainment Limited Investor Inquiries:Geoffrey Davis , CFA, Senior Vice President, Corporate Finance +1 212 671 1936 geoffreydavis@melco-crown.com