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For the second quarter of 2009, net revenue was
Adjusted EBITDA(1) was a loss of
Adjusted net loss(2) for the second quarter of 2009 was
On a GAAP basis, the Company recorded a net loss for the second quarter of 2009 of
"We are still in the early stages of ramping up our business and believe that we have additional room for growth as we execute on our various marketing and yield management initiatives. The Grand Hyatt Macau is on track to open by the end of the current quarter, which should be a significant driver of gaming revenue and market share. As we reported on
Mr. Ho continued, "We held approximately
"With a construction program nearing completion, a stable management team, and a strong balance sheet, we will continue to focus our management attention on the continued execution of our operating plans for City of Dreams, against a macro environment in the mass market which is, in our assessment, likely to materially improve during the remainder of this year."
City of Dreams 2Q Results
City of Dreams opened on
For the quarter ending
Rolling chip volume totaled
In the mass market table games segment, drop (non rolling chip) totaled
Total non-gaming revenue at City of Dreams in the second quarter of 2009 was
Altira
For the quarter ending
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 second quarter of 2009 was
An incremental one-off specific bad debt provision totaling
Mocha Clubs 2Q Results
Net operating revenue from Mocha Clubs totaled
Mocha Clubs generated
The number of gaming machines in operation at the Mocha Clubs averaged approximately 1,440 in the second quarter of 2009, an increase from an average of 1,070 in the second quarter of 2008. The net win per gaming machine per day was
Other Factors Affecting Earnings
Total non-operating expenses for the second quarter of 2009 were
Depreciation and amortization costs of
Financial Position and Capital Expenditure
Cash and cash equivalents as of
Capital expenditures for the second quarter of 2009 were
Six Month Results
For the six months ending
The Company reported a net loss of
Conference Call Information
US Toll Free 1.800.884.5695 US Toll / International 1.617.786.2960 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 98500194
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 Six Months Ended
June 30, June 30,
2009 2008 2009 2008
------------- ------------- ------------- -------------
(Unaudited) (Unaudited)(3) (Unaudited) (Unaudited)(3)
OPERATING
REVENUES
Casino $ 211,408 $ 382,357 $ 424,409 $ 862,047
Rooms 6,997 4,160 11,448 8,241
Food and
beverage 4,817 4,347 8,391 8,821
Enter-
tainment,
retail and
others 1,508 1,349 3,831 2,626
------------- ------------- ------------- -------------
Gross
revenues 224,730 392,213 448,079 881,735
Less:
promotional
allowances (8,893) (7,599) (15,751) (14,253)
------------- ------------- ------------- -------------
Net
revenues 215,837 384,614 432,328 867,482
------------- ------------- ------------- -------------
OPERATING
COSTS AND
EXPENSES
Casino (197,807) (319,534) (370,382) (695,164)
Rooms (1,355) (191) (1,866) (698)
Food and
beverage (3,679) (3,459) (6,338) (6,815)
Enter-
tainment,
retail and
others (811) (302) (990) (597)
General and
adminis-
trative (39,196) (26,569) (61,489) (53,487)
Pre-opening
costs (61,277) (3,735) (79,563) (5,709)
Amor-
tization
of gaming
sub-
concession (14,310) (14,310) (28,619) (28,619)
Amor-
tization
of land
use rights (4,542) (4,573) (9,085) (9,174)
Depre-
ciation and
amor-
tization (29,128) (15,798) (43,837) (28,982)
Property
charges
and other (4,134) (289) (4,134) (289)
------------- ------------- ------------- -------------
Total
operating
costs and
expenses (356,239) (388,760) (606,303) (829,534)
------------- ------------- ------------- -------------
OPERATING
(LOSS)
INCOME (140,402) (4,146) (173,975) 37,948
------------- ------------- ------------- -------------
NON-
OPERATING
EXPENSES
Interest
(expenses)
income, net (3,851) 769 (3,730) 5,058
Other
finance
costs (1,424) (3,475) (2,620) (6,951)
Foreign
exchange
gain, net 628 493 175 308
Other
income, net 1,000 598 1,000 613
------------- ------------- ------------- -------------
Total non-
operating
expenses (3,647) (1,615) (5,175) (972)
------------- ------------- ------------- -------------
(LOSS)
INCOME
BEFORE
INCOME
TAX (144,049) (5,761) (179,150) 36,976
INCOME TAX
CREDIT
(EXPENSE) 88 75 (134) 571
------------- ------------- ------------- -------------
NET (LOSS)
INCOME $ (143,961) $ (5,686) $ (179,284) $ 37,547
============= ============= ============= =============
(LOSS)
INCOME PER
SHARE:
Basic $ (0.101) $ (0.004) $ (0.131) $ 0.028
============= ============= ============= =============
Diluted $ (0.101) $ (0.004) $ (0.131) $ 0.028
============= ============= ============= =============
(LOSS)
INCOME PER
ADS:
Basic $ (0.304) $ (0.013) $ (0.392) $ 0.085
============= ============= ============= =============
Diluted $ (0.304) $ (0.013) $ (0.392) $ 0.085
============= ============= ============= =============
WEIGHTED
AVERAGE
SHARES
USED IN
(LOSS)
INCOME
PER SHARE
CALCULATION:
Basic 1,418,841,637 1,320,938,904 1,370,943,132 1,320,938,904
============= ============= ============= =============
Diluted 1,418,841,637 1,320,938,904 1,370,943,132 1,323,269,450
============= ============= ============= =============
(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)
June 30, December 31,
2009 2008
----------- -----------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 655,632 $ 815,144
Restricted cash -- 67,977
Accounts receivable, net 167,428 72,755
Amounts due from affiliated companies 2 650
Inventories 4,379 2,170
Prepaid expenses and other current assets 41,870 17,556
----------- -----------
Total current assets 869,311 976,252
----------- -----------
PROPERTY AND EQUIPMENT, NET 2,726,872 2,107,722
GAMING SUBCONCESSION, NET 742,597 771,216
INTANGIBLE ASSETS, NET 4,220 4,220
GOODWILL 81,915 81,915
LONG-TERM PREPAYMENT AND DEPOSITS 37,456 60,894
DEFERRED TAX ASSETS -- 28
DEFERRED FINANCING COST 43,848 49,336
DEPOSIT FOR ACQUISITION OF LAND INTEREST -- 12,853
LAND USE RIGHTS, NET 424,768 433,853
----------- -----------
TOTAL $ 4,930,987 $ 4,498,289
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 6,560 $ 2,494
Accrued expenses and other current
liabilities 592,167 442,671
Income tax payable 580 1,954
Amounts due to affiliated companies 11,687 1,985
Amounts due to shareholders 74 1,032
----------- -----------
Total current liabilities 611,068 450,136
----------- -----------
LONG-TERM DEBT 1,683,207 1,412,516
OTHER LONG-TERM LIABILITIES 35,503 38,304
DEFERRED TAX LIABILITIES 18,630 19,191
LOANS FROM SHAREHOLDERS 115,647 115,647
LAND USE RIGHT PAYABLE 46,751 53,891
SHAREHOLDERS' EQUITY
Ordinary shares 14,664 13,216
Treasury shares (21) (4)
Additional paid-in capital 2,875,744 2,689,257
Accumulated other comprehensive losses (32,742) (35,685)
Accumulated losses (437,464) (258,180)
----------- -----------
Total shareholders' equity 2,420,181 2,408,604
----------- -----------
TOTAL $ 4,930,987 $ 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 Six Months Ended
June 30, June 30,
2009 2008 2009 2008
--------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net (Loss) Income $(143,961) $ (5,686) $(179,284) $ 37,547
Pre-opening Costs 61,277 3,735 79,563 5,709
Property Charges
and Other 4,134 289 4,134 289
--------- --------- --------- ---------
Adjusted Net
(Loss) Income $ (78,550) $ (1,662) $ (95,587) $ 43,545
========= ========= ========= =========
ADJUSTED (LOSS)
INCOME PER ADS:
Basic $ (0.166) $ (0.004) $ (0.209) $ 0.099
========= ========= ========= =========
Diluted $ (0.166) $ (0.004) $ (0.209) $ 0.099
========= ========= ========= =========
Melco Crown Entertainment Limited
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(In Thousands of U.S. dollars)
Three Months Ended June 30, 2009
Altira City of Corporate
Macau Mocha Dreams and Other Total
-------- -------- -------- -------- ---------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating
(Loss)
Income $(18,345) $ 1,878 $(91,715) $(32,220) $(140,402)
Pre-opening
Costs -- -- 60,823 454 61,277
Depreciation
and Amorti-
zation 10,466 4,155 18,047 15,312 47,980
Stock-based
Compensation 190 86 666 2,242 3,184
Property
Charges
and Other 1,279 -- -- 2,855 4,134
-------- -------- -------- -------- ---------
Adjusted
EBITDA $ (6,410) $ 6,119 $(12,179) $(11,357) $ (23,827)
======== ======== ======== ======== =========
Three Months Ended June 30, 2008
Altira City of Corporate
Macau Mocha Dreams and Other Total
-------- -------- -------- -------- ---------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating
Income
(Loss) $ 27,807 $ 2,197 $ (8,220) $(25,930) $ (4,146)
Pre-opening
Costs -- -- 3,735 -- 3,735
Depreciation
and Amorti-
zation 12,203 3,634 4,059 14,785 34,681
Stock-based
Compensation 86 34 121 1,558 1,799
Property
Charges
and Other (482) -- -- 771 289
-------- -------- -------- -------- ---------
Adjusted
EBITDA $ 39,614 $ 5,865 $ (305) $ (8,816) $ 36,358
======== ======== ======== ======== =========
Melco Crown Entertainment Limited
Reconciliation of Adjusted EBITDA to Net Loss
(In Thousands of U.S. dollars)
Three Months Ended
June 30,
2009 2008
---------- ----------
(Unaudited) (Unaudited)
Adjusted EBITDA $ (23,827) $ 36,358
Pre-opening Costs (61,277) (3,735)
Depreciation and Amortization (47,980) (34,681)
Stock-based Compensation (3,184) (1,799)
Property Charges and Other (4,134) (289)
Interest and Other Non-Operating
Expenses, Net (3,647) (1,615)
Income Tax Credit 88 75
---------- ----------
Net Loss $ (143,961) $ (5,686)
========== ==========
Melco Crown Entertainment Limited
Reconciliation of Operating (Loss) Income to Adjusted EBITDA
(In Thousands of U.S. dollars)
Six Months Ended June 30, 2009
Corporate
Altira City of and
Macau Mocha Dreams Other Total
--------- --------- --------- --------- ---------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating
(Loss)
Income $ (9,411) $ 4,519 $(113,321) $ (55,762) $(173,975)
Pre-opening
Costs -- -- 78,383 1,180 79,563
Depreciation
and
Amorti-
zation 21,471 8,188 21,378 30,504 81,541
Stock-based
Compen-
sation 457 186 1,381 4,176 6,200
Property
Charges
and Other 1,279 -- -- 2,855 4,134
--------- --------- --------- --------- ---------
Adjusted
EBITDA $ 13,796 $ 12,893 $ (12,179) $ (17,047) $ (2,537)
========= ========= ========= ========= =========
Six Months Ended June 30, 2008
Corporate
Altira City of and
Macau Mocha Dreams Other Total
--------- --------- --------- --------- ---------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating
Income
(Loss) $ 94,146 $ 5,395 $ (14,305) $ (47,288) $ 37,948
Pre-opening
Costs -- -- 5,709 -- 5,709
Depreciation
and
Amorti-
zation 22,474 6,890 8,089 29,322 66,775
Stock-based
Compen-
sation 166 65 121 2,705 3,057
Property
Charges
and Other (482) -- -- 771 289
--------- --------- --------- --------- ---------
Adjusted
EBITDA $ 116,304 $ 12,350 $ (386) $ (14,490) $ 113,778
========= ========= ========= ========= =========
Melco Crown Entertainment Limited
Reconciliation of Adjusted EBITDA to Net (Loss) Income
(In Thousands of U.S. dollars)
Six Months Ended
June 30,
2009 2008
--------- ---------
(Unaudited) (Unaudited)
Adjusted EBITDA $ (2,537) $ 113,778
Pre-opening Costs (79,563) (5,709)
Depreciation and Amortization (81,541) (66,775)
Stock-based Compensation (6,200) (3,057)
Property Charges and Other (4,134) (289)
Interest and Other Non-Operating
Expense, Net (5,175) (972)
Income Tax Credit (134) 571
--------- ---------
Net (Loss) Income $(179,284) $ 37,547
========= =========
Melco Crown Entertainment Limited
Supplemental Data Schedule
Three months ended Six months ended
June 30, June 30,
2009 2008 2009 2008
------- ------- ------- -------
Room Statistics:
Altira Macau
Average daily rate(4) $ 232 $ 236 $ 233 $ 234
Occupancy per
available room 90% 97% 90% 94%
Revenue per
available room(5) $ 210 $ 229 $ 209 $ 221
City of Dreams
Average daily rate(4) $ 176 $ -- $ 176 $ --
Occupancy per
available room 78% -- 78% --
Revenue per
available room(5) $ 138 $ -- $ 138 $ --
Other Information:
Altira Macau
Average number of
table games 252 250 253 246
Average number of
gaming machines -- 187 -- 214
Table games win per unit
per day(6) $10,808 $22,662 $11,181 $25,314
Gaming machines win
per unit per day(7) $ -- $ 240 $ -- $ 203
City of Dreams
Average number of
table games 503 -- 503 --
Average number of
gaming machines 1,320 -- 1,320 --
Table games win per unit
per day(6) $ 2,095 $ -- $ 2,095 $ --
Gaming machines win per
unit per day(7) $ 117 $ -- $ 117 $ --
(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