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Melco Announces Record Adjusted Property EBITDA in the First Quarter 2018 and Declares Quarterly Dividend

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
     

 


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