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For the third quarter of 2009, net revenue was
Adjusted EBITDA (1) was
On a GAAP basis, the Company recorded a net loss for the third quarter of 2009 of
Mr.
"Our grind mass market business has demonstrated sequential volume improvements across the reporting quarter and this growth trend has continued into the fourth quarter of this year. We have not yet reached our full potential in this segment and the recent opening of the Grand Hyatt Macau is now having a positive impact on performance. We remain on target to complete and open a number of major new entertainment attractions at City of Dreams in the coming months as part of the second phase of development, which will culminate in the launch of the Dragone-inspired show at the Theater of Dreams in approximately six months' time.
"We remain confident in our outlook for
City of Dreams 3Q Results
For the quarter ending
Total non-gaming revenue at City of Dreams in the third quarter of 2009 was
Altira
For the quarter ending
Rolling chip volume totaled
Total non-gaming revenue at Altira Macau in the third quarter of 2009 was
The combined rolling chip table games hold percentage (calculated before discounts and commissions) across City of Dreams and Altira Macau in the third quarter of 2009 was within our expected rolling chip hold percentage range of 2.7% to 3.0%. The company-wide mass market table games hold percentage (non rolling chip) in the third quarter of 2009 was 15.7%, which is slightly below our target hold percentage range of 16.0% to 18.0%.
Mocha Clubs 3Q Results
Net operating revenue from Mocha Clubs totaled
Mocha Clubs generated
The number of gaming machines in operation at the Mocha Clubs averaged approximately 1,547 in the third quarter of 2009, an increase from an average of 1,029 in the third quarter of 2008. The net win per gaming machine per day was
Other Factors Affecting Earnings
Total non-operating expenses for the third quarter of 2009 were
Depreciation and amortization costs of
Financial Position and Capital Expenditure
Cash and cash equivalents as of
Capital expenditures for the third quarter of 2009 were
Nine Month Results
For the nine months ending
The Company reported a net loss of
Conference Call Information
US Toll Free 1 800 265 0241 US Toll / International 1 617 847 8704 HK Toll 852 3002 1672 HK Toll Free 800 96 3844 UK Toll Free 00 800 280 02002 Australia Toll Free 1 800 002 971 PasscodeMPEL An audio webcast will also be available at http://www.melco-crown.com. To access the replay, please use the dial-in details below: US Toll Free 1 888 286 8010 US Toll / International 1 617 801 6888 Passcode 48925908
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, property charges and other, 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. Reconciliations of adjusted EBITDA with the most comparable financial measures calculated and presented in accordance with GAAP are provided herein immediately following the financial statements included in this press release.
(2) "Adjusted net income (loss)" is net income (loss) before pre-opening costs, property charges and other. Adjusted net income (loss) and adjusted net income (loss) 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 GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income (loss) may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income (loss) with the most comparable financial measures calculated and presented in accordance with GAAP are provided herein immediately following the financial statements included in this press release.
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 Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ----------- ------------
(Unaudited) (Unaudited)(3) (Unaudited) (Unaudited)(3)
OPERATING
REVENUES
Casino $ 491,248 $ 292,477 $ 915,657 $ 1,154,524
Rooms 13,409 4,500 24,857 12,741
Food and
beverage 8,843 3,966 17,234 12,787
Entertain-
ment,
retail
and others 4,393 1,461 8,224 4,087
---------- ---------- ---------- -----------
Gross
revenues 517,893 302,404 965,972 1,184,139
Less:
promotional
allowances (17,565) (7,247) (33,316) (21,500)
---------- ---------- ---------- -----------
Net revenues 500,328 295,157 932,656 1,162,639
---------- ---------- ---------- -----------
OPERATING
COSTS AND
EXPENSES
Casino (396,944) (254,072) (780,071) (959,001)
Rooms (2,194) (377) (4,254) (1,246)
Food and
beverage (5,777) (2,922) (12,289) (9,887)
Entertain-
ment,
retail and
others (2,408) (309) (3,422) (906)
General and
administrative (40,228) (18,602) (88,580) (62,003)
Pre-opening
costs (12,561) (6,721) (92,124) (12,430)
Amortization
of gaming
subcon-
cession (14,309) (14,309) (42,928) (42,928)
Amortization
of land
use
rights (4,543) (4,593) (13,628) (13,767)
Depreciation
and
amortization (45,888) (13,226) (89,725) (42,208)
Property
charges
and
other (12) (1) (4,146) (290)
---------- ---------- ---------- -----------
Total
operating
costs and
expenses (524,864) (315,132) (1,131,167) (1,144,666)
---------- ---------- ---------- -----------
OPERATING
(LOSS)
INCOME (24,536) (19,975) (198,511) 17,973
---------- ---------- ---------- -----------
NON-
OPERATING
EXPENSES
Interest
(expenses)
income,
net (12,230) 1,210 (15,960) 6,268
Other
finance
costs (3,039) (3,334) (5,659) (10,285)
Foreign
exchange
(loss)
gain,
net (289) 194 (114) 502
Other
income,
net 858 335 1,858 948
---------- ---------- ---------- -----------
Total
non-
operating
expenses (14,700) (1,595) (19,875) (2,567)
---------- ---------- ---------- -----------
(LOSS)
INCOME
BEFORE
INCOME TAX (39,236) (21,570) (218,386) 15,406
INCOME TAX
(EXPENSE)
CREDIT (252) 445 (386) 1,016
---------- ---------- ---------- -----------
NET (LOSS)
INCOME $ (39,488) $ (21,125) $ (218,772) $ 16,422
========== ========== ========== ===========
(LOSS)
INCOME
PER SHARE:
Basic $ (0.026) $ (0.016) $ (0.154) $ 0.012
========== ========== ========== ===========
Diluted $ (0.026) $ (0.016) $ (0.154) $ 0.012
========== ========== ========== ===========
(LOSS)
INCOME
PER ADS:
Basic $ (0.078) $ (0.048) $ (0.461) $ 0.037
========== ========== ========== ===========
Diluted $ (0.078) $ (0.048) $ (0.461) $ 0.037
========== ========== ========== ===========
WEIGHTED
AVERAGE
SHARES
USED
IN (LOSS)
INCOME PER
SHARE
CALCULATION:
Basic 1,525,550,917 1,320,938,902 1,423,045,390 1,320,938,902
============= ============= ============= =============
Diluted 1,525,550,917 1,320,938,902 1,423,045,390 1,323,348,602
============= ============= ============= =============
(3) The unaudited condensed consolidated financial statements for
2008 reflect certain reclassifications, which have no effect on
previously reported net (loss) income, to conform to current
period presentation.
Melco Crown Entertainment Limited
Condensed Consolidated Balance Sheets
(In Thousands of U.S. dollars)
Sept. 30, Dec. 31,
2009 2008
----------- -----------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 435,343 $ 815,144
Restricted cash 250,157 67,977
Accounts receivable, net 201,742 72,755
Amounts due from affiliated companies 1 650
Inventories 5,444 2,170
Prepaid expenses and other
current assets 38,147 17,556
----------- -----------
Total current assets 930,834 976,252
----------- -----------
PROPERTY AND EQUIPMENT, NET 2,797,656 2,107,722
GAMING SUBCONCESSION, NET 728,288 771,216
INTANGIBLE ASSETS, NET 4,220 4,220
GOODWILL 81,915 81,915
LONG-TERM PREPAYMENT AND DEPOSITS 43,832 60,894
DEFERRED TAX ASSETS -- 28
DEFERRED FINANCING COST 41,163 49,336
DEPOSIT FOR ACQUISITION OF LAND
INTEREST -- 12,853
LAND USE RIGHTS, NET 420,225 433,853
----------- -----------
TOTAL $ 5,048,133 $ 4,498,289
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 6,939 $ 2,494
Accrued expenses and
other current liabilities 556,618 442,671
Income tax payable 1,149 1,954
Amounts due to affiliated
companies 8,871 1,985
Amounts due to shareholders 35 1,032
----------- -----------
Total current liabilities 573,612 450,136
----------- -----------
LONG-TERM DEBT 1,683,207 1,412,516
OTHER LONG-TERM LIABILITIES 25,113 38,304
DEFERRED TAX LIABILITIES 18,311 19,191
LOANS FROM SHAREHOLDERS 115,647 115,647
LAND USE RIGHT PAYABLE 39,432 53,891
SHAREHOLDERS' EQUITY
Ordinary shares 15,945 13,216
Treasury shares (13) (4)
Additional paid-in capital 3,086,534 2,689,257
Accumulated other comprehensive
losses (32,703) (35,685)
Accumulated losses (476,952) (258,180)
----------- -----------
Total shareholders' equity 2,592,811 2,408,604
----------- -----------
TOTAL $ 5,048,133 $ 4,498,289
=========== ===========
Melco Crown Entertainment Limited
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income
(In Thousands of U.S. dollars)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net (Loss)
Income $ (39,488) $ (21,125) $ (218,772) $ 16,422
Pre-opening
Costs 12,561 6,721 92,124 12,430
Property
Charges and
Other 12 1 4,146 290
--------- --------- ---------- ---------
Adjusted Net
(Loss) Income $ (26,915) $ (14,403) $ (122,502) $ 29,142
========= ========= ========== =========
ADJUSTED (LOSS)
INCOME PER ADS:
Basic $ (0.053) $ (0.033) $ (0.258) $ 0.066
========= ========= ========== =========
Diluted $ (0.053) $ (0.033) $ (0.258) $ 0.066
========= ========= ========== =========
Melco Crown Entertainment Limited
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(In Thousands of U.S. dollars)
Three Months Ended September 30, 2009
Altira City of Corporate
Macau Mocha Dreams and Other Total
--------- --------- --------- --------- ---------
(Unaudited)(Unaudited) (Unaudited)(Unaudited) (Unaudited)
Operating
Income
(Loss) $ 3,672 $ 2,109 $ (941) $(29,376) $ (24,536)
Pre-opening
Costs -- -- 12,026 535 12,561
Depreciation
and
Amortization 10,097 4,090 35,133 15,420 64,740
Stock-based
Compensation 106 83 426 2,232 2,847
Property
Charges
and Other -- -- -- 12 12
-------- ------- -------- -------- ---------
Adjusted
EBITDA $ 13,875 $ 6,282 $ 46,644 $(11,177) $ 55,624
======== ======= ======== ======== =========
Three Months Ended September 30, 2008
Altira City of Corporate
Macau Mocha Dreams and Other Total
--------- --------- --------- --------- ---------
(Unaudited)(Unaudited) (Unaudited)(Unaudited) (Unaudited)
Operating
Income
(Loss) $ 9,512 $ 3,130 $ (9,705) $(22,912) $ (19,975)
Pre-opening
Costs -- -- 6,720 1 6,721
Depreciation
and
Amortization 10,833 3,563 2,828 14,904 32,128
Stock-based
Compensation 139 44 146 1,601 1,930
Property
Charges and
Other -- -- -- 1 1
-------- ------- -------- -------- ---------
Adjusted
EBITDA $ 20,484 $ 6,737 $ (11) $ (6,405) $ 20,805
======== ======= ======== ======== =========
Melco Crown Entertainment Limited
Reconciliation of Adjusted EBITDA to Net Loss
(In Thousands of U.S. dollars)
Three Months Ended
September 30,
2009 2008
--------- ----------
(Unaudited) (Unaudited)
Adjusted EBITDA $ 55,624 $ 20,805
Pre-opening Costs (12,561) (6,721)
Depreciation and Amortization (64,740) (32,128)
Stock-based Compensation (2,847) (1,930)
Property Charges and Other (12) (1)
Interest and Other Non-Operating
Expenses, Net (14,700) (1,595)
Income Tax (Expense) Credit (252) 445
--------- ----------
Net Loss $ (39,488) $ (21,125)
========= ==========
Melco Crown Entertainment Limited
Reconciliation of Operating (Loss) Income to Adjusted EBITDA
(In Thousands of U.S. dollars)
Nine Months Ended September 30, 2009
Altira City of Corporate
Macau Mocha Dreams and Other Total
--------- --------- --------- --------- ---------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating
(Loss)
Income $ (5,739) $ 6,628 $(114,262) $ (85,138) $(198,511)
Pre-opening
Costs -- -- 90,409 1,715 92,124
Depreciation
and
Amorti-
zation 31,568 12,278 56,511 45,924 146,281
Stock-based
Compen-
sation 563 269 1,807 6,408 9,047
Property
Charges
and Other 1,279 -- -- 2,867 4,146
--------- --------- --------- --------- ---------
Adjusted
EBITDA $ 27,671 $ 19,175 $ 34,465 $ (28,224) $ 53,087
========= ========= ========= ========= =========
Nine Months Ended September 30, 2008
Altira City of Corporate
Macau Mocha Dreams and Other Total
--------- --------- --------- --------- ---------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating
Income
(Loss) $ 103,659 $ 8,525 $ (24,011) $ (70,200) $ 17,973
Pre-opening
Costs -- -- 12,429 1 12,430
Depreciation
and
Amorti-
zation 33,306 10,453 10,917 44,227 98,903
Stock-based
Compen-
sation 305 109 267 4,306 4,987
Property
Charges
and Other (482) -- -- 772 290
--------- --------- --------- --------- ---------
Adjusted
EBITDA $ 136,788 $ 19,087 $ (398) $ (20,894) $ 134,583
========= ========= ========= ========= =========
Melco Crown Entertainment Limited
Reconciliation of Adjusted EBITDA to Net (Loss) Income
(In Thousands of U.S. dollars)
Nine Months Ended
September 30,
2009 2008
----------- ----------
(Unaudited) (Unaudited)
Adjusted EBITDA $ 53,087 $ 134,583
Pre-opening Costs (92,124) (12,430)
Depreciation and Amortization (146,281) (98,903)
Stock-based Compensation (9,047) (4,987)
Property Charges and Other (4,146) (290)
Interest and Other Non-Operating
Expense, Net (19,875) (2,567)
Income Tax (Expense) Credit (386) 1,016
----------- ----------
Net (Loss) Income $ (218,772) $ 16,422
=========== ==========
Melco Crown Entertainment Limited
Supplemental Data Schedule
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
------- ------- ------- -------
Room Statistics:
Altira Macau
Average daily rate (4) $ 215 $ 238 $ 227 $ 236
Occupancy per available
room 93% 95% 91% 94%
Revenue per available
room (5) $ 201 $ 225 $ 206 $ 223
City of Dreams
Average daily rate (4) $ 166 $ -- $ 234 $ --
Occupancy per available
room 92% 0% 86% 0%
Revenue per available
room (5) $ 154 $ -- $ 201 $ --
Other Information:
Altira Macau
Average number of table
games 251 256 252 250
Average number of gaming
machines -- 173 -- 200
Table games win per unit
per day (6) $11,806 $16,266 $11,391 $22,228
Gaming machines win per
unit per day (7) $ -- $ 231 $ -- $ 211
City of Dreams
Average number of table
games 467 -- 476 --
Average number of gaming
machines 1,293 -- 1,300 --
Table games win per unit
per day (6) $ 8,311 $ -- $ 6,694 $ --
Gaming machines win per
unit per day (7) $ 108 $ -- $ 110 $ --
(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
(6) table games win per unit per day is shown before discounts and
commissions
(7) gaming machines win per unit per day is shown before deducting
cost for slot points
CONTACT:Melco Crown Entertainment Limited Geoffrey Davis , CFA, Senior Vice President - Corporate Finance +1 212 671 1936 geoffreydavis@melco-crown.com