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1Q'18 Melco Earnings Announcement 431.4 KB
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Net revenue for the first quarter of 2018 was
Operating income for the first quarter of 2018 was
Adjusted property EBITDA(1) was
Net income attributable to
Mr.
“Despite multiple new resorts opening,
“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
“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
“Lastly,
City of Dreams First Quarter Results
For the quarter ended
Rolling chip volume totaled
Mass market table games drop increased to
Gaming machine handle for the first quarter of 2018 was
Total non-gaming revenue at City of Dreams in the first quarter of 2018 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 2018 was
Total non-gaming revenue at Altira Macau in the first quarter of 2018 was
Mocha Clubs First Quarter Results
Net revenue from
Gaming machine handle for the first quarter of 2018 was
Studio City First Quarter Results
For the quarter ended
Rolling chip volume totaled
Mass market table games drop increased to
Gaming machine handle for the first quarter of 2018 was
Total non-gaming revenue at Studio City in the first quarter of 2018 was
City of Dreams Manila First Quarter Results
For the quarter ended
Rolling chip volume totaled
Mass market table games drop increased to
Gaming machine handle for the first quarter of 2018 was
Total non-gaming revenue at City of Dreams Manila in the first quarter of 2018 was
Other Factors Affecting Earnings
Total net non-operating expenses for the first quarter of 2018 were
Depreciation and amortization costs of
Financial Position and Capital Expenditures
Total cash and bank balances as of
Capital expenditures for the first quarter of 2018 were
Dividend Declaration
On
Conference Call Information
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 |
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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.
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
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
About
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
The Company is strongly supported by its single largest shareholder,
For investment community, please contact:
Director, Investor Relations
Tel: +852 2598 3619
Email: richardlshuang@melco-resorts.com
For media enquiries, please contact:
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 |
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Supplemental Data Schedule |
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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 | ||||||||||||