Table of Contents
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of August 2011
Commission File Number: 001-33178
MELCO CROWN ENTERTAINMENT LIMITED
36th Floor, The Centrium
60 Wyndham Street
Central
Hong Kong
(Address of principal executive offices)
60 Wyndham Street
Central
Hong Kong
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form
20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant
is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82- N/A
Table of Contents
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MELCO CROWN ENTERTAINMENT LIMITED |
||||
| By: | Geoffrey Davis | |||
| Name: | Geoffrey Davis, CFA | |||
| Title: | Chief Financial Officer | |||
Date: August 23 , 2011
3
Exhibit 99.1
FOR IMMEDIATE RELEASE
Melco Crown Entertainment Announces Second Quarter 2011 Earnings
NEW YORK, August 23, 2011 — Melco Crown Entertainment Limited (Nasdaq:MPEL), a developer and owner
of casino gaming and entertainment resort facilities focused on the Macau market, today reported
its unaudited financial results for the second quarter of 2011.
Net revenue for the second quarter of 2011 was US$960.0 million, representing an increase of
approximately 67% from US$573.6 million for the comparable period in 2010. The significant increase
in net revenue in the second quarter of 2011 from the same period in 2010 was mainly attributable to improved rolling chip
volumes, normalized rolling chip win rates at City of Dreams, continued strong growth in
mass market and hotel operations at City of Dreams, as well as contributions from other non-gaming
amenities such as The House of Dancing Water and Club Cubic.
Adjusted EBITDA<1> was US$216.3 million for the second quarter of 2011, as compared to
Adjusted EBITDA of US$73.4 million in the second quarter of 2010. The 195% year-over-year increase
was primarily as a result of the substantial growth in gaming volumes, a sustainably improved mass
market hold percentage at City of Dreams and a more normalized blended rolling chip win rate
across both City of Dreams and Altira Macau, combined with the Company’s continued focus on
operating margins.
On a U.S. GAAP basis, Melco Crown Entertainment recorded net income for the second quarter of 2011
of US$66.7 million, or US$0.13 per ADS, compared with a net loss of US$30.1 million, or a loss of
US$0.06 per ADS, in the second quarter of 2010. The year-on-year improvement in net income
primarily resulted from the significant improvement in operating fundamentals at both City of
Dreams and Altira Macau, partially offset by
increased interest costs from the high yield and RMB denominated bond as well as higher
depreciation expense associated with The House of Dancing Water, one-off charges relating to the
refinancing of the City of Dreams Project Facility, and transaction costs related to the Studio
City acquisition.
Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented,
“These results represent another strong quarter for our Company, driven by significantly improved
operating performance across all areas of the business. Our second quarter results reflect record
consolidated EBITDA on record setting gaming volumes for our Company. Our overall profitability
continues to reflect our various cost containment initiatives that help drive strong operating
leverage.
“The House of Dancing Water is soon to
celebrate its first anniversary in September. Since its grand opening last September, this spectacular extravaganza has
become a phenomenal attraction and has earned plaudits from audiences and critics alike. The show has entertained
over 700,000 guests with occupancy levels above 90% on average per show. The House of Dancing Water has significantly
reinforced City of Dreams entertainment proposition and has generated meaningful positive ripple effects throughout the business,
including higher property visitation, hotel occupancy rates, and gaming spend.
“We continue to deliver on our objective of profitably expanding our mass market business,
particularly the premium mass segment, while delivering solid rolling chip volume growth without
compromising our disciplined approach in this segment.
“As recently announced, we have successfully completed the acquisition of a 60% interest in the
Studio City project on Cotai. This project is another significant milestone for the Company, and we
believe its completion will complement and expand our current portfolio of gaming assets in Macau.
Our interest in Studio City represents a unique and attractive opportunity for our shareholders and
employees that further demonstrates our long term commitment to Macau. We continue to work on our
design plans and are currently evaluating financing plans, including a bank loan and other debt
financing, to fund this project. We look forward to working closely with the Macau government to
bring this project to completion.
“We are also excited about the recently
announced dual listing proposal. Upon completion of our Hong Kong initial public offering, our dual listing will
provide our existing shareholders with much enhanced liquidity and will also broaden the
Company’s investor universe. We believe the dual listing will make a major contribution towards
the dynamic development and growth of the Company in the long term.”
City of Dreams 2Q Results
For the quarter ended June 30, 2011, net revenue at City of Dreams was US$607.9 million compared to
US$309.3 million in the second quarter of 2010. City of Dreams generated Adjusted EBITDA of
US$151.3 million in the second quarter of 2011, an increase of 253% when compared to US$42.9
million in the second quarter of 2010.
The year-over-year improvements were driven by substantial growth in both rolling chip and mass
market volumes, improvements in mass market hold
percentages and rolling chip win rates, as well as increased hotel sales and contributions from The House of Dancing Water and
Club Cubic.
2
Rolling chip volume for the second quarter of 2011 totaled US$19.3 billion, an increase of 59% from
US$12.2 billion from the comparable period in 2010. The rolling chip win rate was 2.8% in
the second quarter of 2011, in-line with the expected rolling chip win rate range of 2.7% -
3.0%. The rolling chip win rate for the comparable quarter in 2010 was 2.2%.
Mass market table games drop for the second quarter of 2011 totaled US$750.5 million, an increase
of 55% from US$483.7 million for the comparable period in 2010. The mass market hold percentage was
23.6% in the second quarter of 2011, an increase from 22.0% in the second quarter of 2010. At City
of Dreams, we expect our mass market table games hold percentage to range from 22%-25%.
Slot handle for the quarter ended June 30, 2011 was US$568.9 million, up 24% from US$458.2 million
generated in the same period of 2010.
Total non-gaming revenue at City of Dreams in the second quarter of 2011 was US$54.1 million, an
increase of 69% from US$32.1 million for the second quarter of 2010. Occupancy per available room
in the first quarter of 2011 was 90% versus 81% in the second quarter of 2010. The average daily
rate (ADR) in the second quarter of 2011 was US$170 per occupied room, which compares with US$152
in the comparable quarter of 2010, an increase of 12%.
Altira Macau 2Q Results
For the quarter ended June 30, 2011, net revenue at Altira Macau was US$311.5 million compared to
US$230.6 million in the second quarter of 2010. Altira Macau generated Adjusted EBITDA of US$73.1
million in the second quarter of 2011, an increase of 99% when compared to Adjusted EBITDA of
US$36.7 million in the second quarter of 2010. The significant year-over-year improvements in net
revenues and Adjusted EBITDA were driven by strong rolling chip volume growth and substantially
improved operating margins.
3
Rolling chip volume totaled US$13.2 billion in the second quarter of 2011, an increase of 39% from
US$9.5 billion for the second quarter of 2010. The rolling chip win rate was 3.1%, compared
to a win rate of 3.2% for the same period in 2010. The expected rolling chip win rate range is 2.7%-3.0%.
Mass market table games drop totaled US$147.7 million in the second quarter of 2011, an increase of
93% from US$76.5 million generated for the comparable period in 2010. The mass market hold percentage was
15.8% in the second quarter of 2011 compared with 18.2% in the second quarter of last year. At
Altira Macau, we expect our mass market table games hold percentage to range from 15.0%-17.0%.
Total non-gaming revenue at Altira Macau in the second quarter of 2011 was US$7.8 million, up
slightly from the second quarter of 2010. Occupancy per available room in the second quarter of
2011 was 97% compared to 93% in the second quarter of 2010. ADR was US$200 per occupied room for the second quarter of 2011,
compared to US$166 in the same period of 2010, an increase of 21%.
Mocha Clubs 2Q Results
Net revenue from Mocha Clubs totaled US$32.4 million in the second quarter of 2011, up from US$26.9
million in the second quarter of 2010. Mocha Clubs generated US$10.1 million of Adjusted EBITDA in
the second quarter of 2011, an increase of 42% when compared to Adjusted EBTDA of US$7.1 million in
the same period in 2010.
The number of gaming machines in operation at Mocha Clubs averaged approximately 1,600 in the
second quarters of 2011 and 2010. The net win per gaming machine per day was US$226 in the quarter
ended June 30, 2011, as compared with US$184 in the same period in 2010, an increase of 23%.
Other Factors Affecting Earnings
Total non-operating expense for the second quarter of 2011 totaled US$60.8 million, which included
US$27.4 million in net interest expense, other finance costs of US$4.5 million, a US$4.3 million
charge relating to a change in fair value of an existing interest rate swap arrangement as well as
a one-off expense of US$25.2 million associated with
the recent refinancing of the City of Dreams Project Facility. There was no capitalized interest
during the second quarter of 2011.
4
Depreciation and amortization costs of US$83.6 million were recorded in the second quarter of 2011,
of which US$14.3 million was related to the amortization of our gaming sub-concession and US$4.9
million was related to the amortization of land use rights. The year-over-year increase in
depreciation and amortization costs is primarily related to the opening of The House of Dancing
Water in the third quarter of 2010 and Club Cubic at the beginning of the second quarter of 2011.
Financial Position and Capital Expenditure
Cash and cash equivalents as at June 30, 2011 totaled US$1,395.3 million, including US$368.4 million
of restricted cash. Total debt at the end of the second quarter of 2011 was US$2.4 billion,
and total net debt to shareholders’ equity as of June 30, 2011 was 40%.
Capital expenditures for the second quarter of 2011 were US$8.5 million, predominantly related to
various projects at City of Dreams and Altira Macau.
Six Months’ Results
For the six months ending June 30, 2011, Melco Crown Entertainment reported net revenue of
US$1,766.5 million versus US$1,141.2 million in the six months ending June 30, 2010. The
year-over-year increase in net revenue was driven by the significant improvements in operating
performance at City of Dreams and Altira Macau, as well as contributions from The House of Dancing
Water and Club Cubic.
Adjusted EBITDA for the first six months of 2011 was US$337.6 million, as compared with an Adjusted
EBITDA of US$160.3 million in the first six months of 2010. The year-over-year improvements in net
revenue and Adjusted EBITDA were primarily attributable to the increase in operating revenues,
improvements in mass market hold percentages, as well as through a committed cost control focus at all
business units.
5
On a U.S. GAAP basis, Melco Crown Entertainment reported net income of US$73.8 million, or US$0.14
per ADS, for the first six months of 2011, compared to a net loss of US$42.6 million, or a loss of
US$0.08 per ADS, for the first six months of 2010.
Conference Call Information
Melco Crown Entertainment will hold a conference call to discuss its second quarter 2011 financial
results on August 23, 2011 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 |
1 866 730 5763 | |
US Toll/International |
1 857 350 1587 | |
HK Toll |
852 3002 1672 | |
HK Toll Free |
800 96 3844 | |
UK Toll Free |
080 823 47616 | |
Australia Toll Free |
1 800 002 971 | |
Passcode |
MPEL |
An audio webcast will also be available at 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 |
93519621 |
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. Melco Crown 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, 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. A number of factors could cause actual results to differ
materially from those contained in any forward-looking statement, including but not limited to the
following: growth of the gaming market and visitation in
6
Macau; increased competition and other planned casino hotel and resort projects in Macau and
elsewhere in Asia; the completion of infrastructure projects in Macau; government regulation of the
casino industry; our ability to raise additional financing; the formal grant of occupancy permits
for areas of City of Dreams undergoing construction and/or development; our anticipated growth
strategies; and our future business development, results of operations and financial condition.
Further information regarding these and other risks is included in our Annual Report on Form 20-F
filed on April 1, 2011 and other documents filed with the Securities and Exchange Commission. The
Company does not undertake any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this press release is as of the date of
this 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 others, share-based compensation, 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 others,
share-based compensation, corporate and other expenses and other non-operating income and
expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as a
supplemental disclosure because management believes that 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. generally accepted accounting
principles (“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 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 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 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
GAAP are provided herein immediately following the financial statements included in this
press release. |
7
| (2) | “Adjusted net income (loss)” is net income (loss) before pre-opening costs, development costs and
property charges and others. 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 Melco Crown Entertainment Limited
Melco Crown Entertainment Limited (the “Company”), is a developer, owner and through a Macau
subsidiary which holds a gaming sub-concession, an operator of casino gaming and entertainment
casino resort facilities. The Company currently operates Altira Macau (www.altiramacau.com)
(formerly Crown Macau), a casino hotel located at Taipa, Macau and City of Dreams
(www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. The
Company’s business also includes the Mocha Clubs (www.mochaclubs.com), which feature a total of
approximately 1,600 gaming machines in eight locations and comprise the largest non-casino based
operations of electronic gaming machines in Macau. For more information about the Company, please
visit www.melco-crown.com.
The Company has strong support from both of its major shareholders, Melco International Development
Limited (“Melco”) and Crown Limited (“Crown”). Melco is a listed company on the Hong Kong Stock
Exchange and is substantially owned and led by Mr. Lawrence Ho, who is Co-Chairman, a Director and
the CEO of the Company. Crown is a top-50 company listed on the Australian Stock Exchange and led
by Executive Chairman Mr. James Packer, who is also Co-Chairman and a Director of the Company.
Investment Community, please contact:
Ross Dunwoody
Vice President, Investor Relations
Tel: +853 8868 8833 or +852 2598 3689
Email: rossdunwoody@melco-crown.com
Vice President, Investor Relations
Tel: +853 8868 8833 or +852 2598 3689
Email: rossdunwoody@melco-crown.com
For media enquiry, please contact:
Maggie Ma
Head of Corporate Communications
Tel: +852 3151 3767
Email: maggiema@melco-crown.com
Head of Corporate Communications
Tel: +852 3151 3767
Email: maggiema@melco-crown.com
8
Melco Crown Entertainment Limited
Condensed Consolidated Statements of Operations
(In thousands of U.S. dollars, except share and per share data)
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, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
OPERATING REVENUES |
||||||||||||||||
Casino |
$ | 921,488 | $ | 555,571 | $ | 1,692,361 | $ | 1,104,839 | ||||||||
Rooms |
25,341 | 20,325 | 49,323 | 39,335 | ||||||||||||
Food and beverage |
14,486 | 14,201 | 29,329 | 27,406 | ||||||||||||
Entertainment, retail and others |
22,954 | 5,391 | 41,179 | 10,761 | ||||||||||||
Gross revenues |
984,269 | 595,488 | 1,812,192 | 1,182,341 | ||||||||||||
Less: promotional allowances |
(24,314 | ) | (21,848 | ) | (45,650 | ) | (41,096 | ) | ||||||||
Net revenues |
959,955 | 573,640 | 1,766,542 | 1,141,245 | ||||||||||||
OPERATING COSTS AND EXPENSES |
||||||||||||||||
Casino |
(662,594 | ) | (442,925 | ) | (1,273,763 | ) | (865,830 | ) | ||||||||
Rooms |
(4,439 | ) | (3,455 | ) | (9,024 | ) | (6,767 | ) | ||||||||
Food and beverage |
(7,536 | ) | (5,841 | ) | (16,543 | ) | (15,330 | ) | ||||||||
Entertainment, retail and others |
(16,124 | ) | (2,047 | ) | (29,158 | ) | (4,143 | ) | ||||||||
General and administrative |
(55,558 | ) | (47,377 | ) | (104,314 | ) | (91,349 | ) | ||||||||
Pre-opening costs |
(682 | ) | (2,910 | ) | (1,285 | ) | (6,982 | ) | ||||||||
Development costs |
(1,110 | ) | — | (1,110 | ) | — | ||||||||||
Amortization of gaming subconcession |
(14,310 | ) | (14,310 | ) | (28,619 | ) | (28,619 | ) | ||||||||
Amortization of land use rights |
(4,882 | ) | (4,880 | ) | (9,763 | ) | (9,760 | ) | ||||||||
Depreciation and amortization |
(64,363 | ) | (56,824 | ) | (128,136 | ) | (113,733 | ) | ||||||||
Property charges and others |
(1,000 | ) | (474 | ) | (1,025 | ) | 34 | |||||||||
Total operating costs and expenses |
(832,598 | ) | (581,043 | ) | (1,602,740 | ) | (1,142,479 | ) | ||||||||
OPERATING INCOME (LOSS) |
127,357 | (7,403 | ) | 163,802 | (1,234 | ) | ||||||||||
NON-OPERATING EXPENSES |
||||||||||||||||
Interest expenses, net |
(27,390 | ) | (21,283 | ) | (53,996 | ) | (36,766 | ) | ||||||||
Other finance costs |
(4,525 | ) | 780 | (8,681 | ) | (2,620 | ) | |||||||||
Change in fair value of interest rate swap agreements |
(4,310 | ) | — | (4,310 | ) | — | ||||||||||
Foreign exchange gain, net |
35 | 428 | 191 | 17 | ||||||||||||
Other income, net |
600 | 551 | 2,064 | 1,041 | ||||||||||||
Loss on extinguishment of debt |
(25,193 | ) | — | (25,193 | ) | — | ||||||||||
Costs associated with debt modification |
— | (3,156 | ) | — | (3,156 | ) | ||||||||||
Total non-operating expenses |
(60,783 | ) | (22,680 | ) | (89,925 | ) | (41,484 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAX |
66,574 | (30,083 | ) | 73,877 | (42,718 | ) | ||||||||||
INCOME TAX CREDIT (EXPENSE) |
82 | (18 | ) | (69 | ) | 143 | ||||||||||
NET INCOME (LOSS) |
$ | 66,656 | $ | (30,101 | ) | $ | 73,808 | $ | (42,575 | ) | ||||||
INCOME (LOSS) PER SHARE: |
||||||||||||||||
Basic |
$ | 0.042 | $ | (0.019 | ) | $ | 0.046 | $ | (0.027 | ) | ||||||
Diluted |
$ | 0.041 | $ | (0.019 | ) | $ | 0.046 | $ | (0.027 | ) | ||||||
INCOME (LOSS) PER ADS: |
||||||||||||||||
Basic |
$ | 0.125 | $ | (0.057 | ) | $ | 0.138 | $ | (0.080 | ) | ||||||
Diluted |
$ | 0.124 | $ | (0.057 | ) | $ | 0.137 | $ | (0.080 | ) | ||||||
WEIGHTED AVERAGE SHARES USED IN
INCOME (LOSS) PER SHARE
CALCULATION: |
||||||||||||||||
Basic |
1,600,828,700 | 1,595,385,813 | 1,599,631,942 | 1,595,281,416 | ||||||||||||
Diluted |
1,615,246,974 | 1,595,385,813 | 1,611,770,624 | 1,595,281,416 | ||||||||||||
9
Melco Crown Entertainment Limited
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
| June 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | (Audited) (3) | |||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 1,026,851 | $ | 441,923 | ||||
Restricted cash |
12,499 | 167,286 | ||||||
Accounts receivable, net |
241,413 | 259,521 | ||||||
Amounts due from affiliated companies |
1,949 | 1,528 | ||||||
Income tax receivable |
— | 198 | ||||||
Inventories |
14,192 | 14,990 | ||||||
Prepaid expenses and other current assets |
20,873 | 15,026 | ||||||
Total current assets |
1,317,777 | 900,472 | ||||||
PROPERTY AND EQUIPMENT, NET |
2,562,896 | 2,671,895 | ||||||
GAMING SUBCONCESSION, NET |
628,123 | 656,742 | ||||||
INTANGIBLE ASSETS, NET |
4,220 | 4,220 | ||||||
GOODWILL |
81,915 | 81,915 | ||||||
LONG-TERM PREPAYMENT, DEPOSITS AND OTHER ASSETS |
74,290 | 95,629 | ||||||
RESTRICTED CASH |
355,938 | — | ||||||
DEFERRED TAX ASSETS |
— | 25 | ||||||
DEFERRED FINANCING COSTS |
46,460 | 45,387 | ||||||
DEPOSIT FOR ACQUISITION OF SUBSIDIARIES |
65,000 | — | ||||||
LAND USE RIGHTS, NET |
418,392 | 428,155 | ||||||
TOTAL |
$ | 5,555,011 | $ | 4,884,440 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 9,676 | $ | 8,880 | ||||
Accrued expenses and other current liabilities |
457,869 | 462,084 | ||||||
Income tax payable |
1,277 | 934 | ||||||
Current portion of long-term debt |
— | 202,997 | ||||||
Amounts due to affiliated companies |
748 | 673 | ||||||
Amounts due to shareholders |
32 | 36 | ||||||
Total current liabilities |
469,602 | 675,604 | ||||||
LONG-TERM DEBT |
2,316,741 | 1,521,251 | ||||||
OTHER LONG-TERM LIABILITIES |
4,510 | 6,496 | ||||||
DEFERRED TAX LIABILITIES |
17,325 | 18,010 | ||||||
LOANS FROM SHAREHOLDERS |
115,647 | 115,647 | ||||||
LAND USE RIGHT PAYABLE |
16,359 | 24,241 | ||||||
SHAREHOLDERS’ EQUITY |
||||||||
Ordinary shares |
16,069 | 16,056 | ||||||
Treasury shares |
(58 | ) | (84 | ) | ||||
Additional paid-in capital |
3,103,092 | 3,095,730 | ||||||
Accumulated other comprehensive losses |
(918 | ) | (11,345 | ) | ||||
Accumulated losses |
(503,358 | ) | (577,166 | ) | ||||
Total shareholders’ equity |
2,614,827 | 2,523,191 | ||||||
TOTAL |
$ | 5,555,011 | $ | 4,884,440 | ||||
| (3) | The condensed consolidated financial statements for 2010 reflect certain reclassifications,
which have no effect on previously reported net loss, to conform to the current period
presentation. |
10
Melco Crown Entertainment Limited
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
(In thousands of U.S. dollars, except share and per share data)
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
(In thousands of U.S. dollars, except share and per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Net Income (Loss) |
$ | 66,656 | $ | (30,101 | ) | $ | 73,808 | $ | (42,575 | ) | ||||||
Pre-opening Costs |
682 | 2,910 | 1,285 | 6,982 | ||||||||||||
Development Costs |
1,110 | — | 1,110 | — | ||||||||||||
Property Charges and Others |
1,000 | 474 | 1,025 | (34 | ) | |||||||||||
Adjusted Net Income (Loss) |
$ | 69,448 | $ | (26,717 | ) | $ | 77,228 | $ | (35,627 | ) | ||||||
ADJUSTED NET INCOME (LOSS) PER SHARE: |
||||||||||||||||
Basic |
$ | 0.043 | $ | (0.017 | ) | $ | 0.048 | $ | (0.022 | ) | ||||||
Diluted |
$ | 0.043 | $ | (0.017 | ) | $ | 0.048 | $ | (0.022 | ) | ||||||
ADJUSTED NET INCOME (LOSS) PER ADS: |
||||||||||||||||
Basic |
$ | 0.130 | $ | (0.050 | ) | $ | 0.145 | $ | (0.067 | ) | ||||||
Diluted |
$ | 0.129 | $ | (0.050 | ) | $ | 0.144 | $ | (0.067 | ) | ||||||
WEIGHTED AVERAGE SHARES USED IN ADJUSTED
NET INCOME (LOSS) PER SHARE CALCULATION: |
||||||||||||||||
Basic |
1,600,828,700 | 1,595,385,813 | 1,599,631,942 | 1,595,281,416 | ||||||||||||
Diluted |
1,615,246,974 | 1,595,385,813 | 1,611,770,624 | 1,595,281,416 | ||||||||||||
11
Melco Crown Entertainment Limited
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
| Three Months Ended June 30, 2011 | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating Income (Loss) |
$ | 63,373 | $ | 7,540 | $ | 94,488 | $ | (38,044 | ) | $ | 127,357 | |||||||||
Pre-opening Costs |
— | — | 682 | — | 682 | |||||||||||||||
Development Costs |
— | — | — | 1,110 | 1,110 | |||||||||||||||
Depreciation and Amortization |
9,634 | 2,542 | 55,970 | 15,409 | 83,555 | |||||||||||||||
Share-based Compensation |
60 | 51 | 187 | 2,338 | 2,636 | |||||||||||||||
Property Charges and Others |
— | — | — | 1,000 | 1,000 | |||||||||||||||
Adjusted EBITDA |
73,067 | 10,133 | 151,327 | (18,187 | ) | 216,340 | ||||||||||||||
Corporate and Other Expenses |
— | — | — | 18,187 | 18,187 | |||||||||||||||
Adjusted Property EBITDA |
$ | 73,067 | $ | 10,133 | $ | 151,327 | $ | — | $ | 234,527 | ||||||||||
| Three Months Ended June 30, 2010 | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating Income (Loss) |
$ | 26,745 | $ | 3,262 | $ | (7,531 | ) | $ | (29,879 | ) | $ | (7,403 | ) | |||||||
Pre-opening Costs |
— | — | 2,910 | — | 2,910 | |||||||||||||||
Depreciation and Amortization |
9,881 | 3,838 | 47,015 | 15,280 | 76,014 | |||||||||||||||
Share-based Compensation |
15 | 31 | 191 | 1,160 | 1,397 | |||||||||||||||
Property Charges and Others |
34 | 12 | 324 | 104 | 474 | |||||||||||||||
Adjusted EBITDA |
36,675 | 7,143 | 42,909 | (13,335 | ) | 73,392 | ||||||||||||||
Corporate and Other Expenses |
— | — | — | 13,335 | 13,335 | |||||||||||||||
Adjusted Property EBITDA |
$ | 36,675 | $ | 7,143 | $ | 42,909 | $ | — | $ | 86,727 | ||||||||||
12
Melco Crown Entertainment Limited
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income (Loss)
(In thousands of U.S. dollars)
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income (Loss)
(In thousands of U.S. dollars)
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2011 | 2010 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Adjusted Property EBITDA |
$ | 234,527 | $ | 86,727 | ||||
Corporate and Other Expenses |
(18,187 | ) | (13,335 | ) | ||||
Adjusted EBITDA |
216,340 | 73,392 | ||||||
Pre-opening Costs |
(682 | ) | (2,910 | ) | ||||
Development Costs |
(1,110 | ) | — | |||||
Depreciation and Amortization |
(83,555 | ) | (76,014 | ) | ||||
Share-based Compensation |
(2,636 | ) | (1,397 | ) | ||||
Property Charges and Others |
(1,000 | ) | (474 | ) | ||||
Interest and Other Non-Operating Expenses, Net |
(60,783 | ) | (22,680 | ) | ||||
Income Tax Credit (Expense) |
82 | (18 | ) | |||||
Net Income (Loss) |
$ | 66,656 | $ | (30,101 | ) | |||
13
Melco Crown Entertainment Limited
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
| Six Months Ended June 30, 2011 | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating Income (Loss) |
$ | 94,759 | $ | 15,985 | $ | 124,702 | $ | (71,644 | ) | $ | 163,802 | |||||||||
Pre-opening Costs |
35 | — | 1,250 | — | 1,285 | |||||||||||||||
Development Costs |
— | — | — | 1,110 | 1,110 | |||||||||||||||
Depreciation and Amortization |
19,238 | 5,298 | 111,027 | 30,955 | 166,518 | |||||||||||||||
Share-based Compensation |
100 | 81 | 373 | 3,302 | 3,856 | |||||||||||||||
Property Charges and Others |
— | 25 | — | 1,000 | 1,025 | |||||||||||||||
Adjusted EBITDA |
114,132 | 21,389 | 237,352 | (35,277 | ) | 337,596 | ||||||||||||||
Corporate and Other Expenses |
— | — | — | 35,277 | 35,277 | |||||||||||||||
Adjusted Property EBITDA |
$ | 114,132 | $ | 21,389 | $ | 237,352 | $ | — | $ | 372,873 | ||||||||||
| Six Months Ended June 30, 2010 | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating Income (Loss) |
$ | 38,942 | $ | 5,576 | $ | 12,738 | $ | (58,490 | ) | $ | (1,234 | ) | ||||||||
Pre-opening Costs |
— | — | 6,982 | — | 6,982 | |||||||||||||||
Depreciation and Amortization |
20,104 | 7,968 | 93,414 | 30,626 | 152,112 | |||||||||||||||
Share-based Compensation |
(71 | ) | 60 | 349 | 2,165 | 2,503 | ||||||||||||||
Property Charges and Others |
(474 | ) | 12 | 324 | 104 | (34 | ) | |||||||||||||
Adjusted EBITDA |
58,501 | 13,616 | 113,807 | (25,595 | ) | 160,329 | ||||||||||||||
Corporate and Other Expenses |
— | — | — | 25,595 | 25,595 | |||||||||||||||
Adjusted Property EBITDA |
$ | 58,501 | $ | 13,616 | $ | 113,807 | $ | — | $ | 185,924 | ||||||||||
14
Melco Crown Entertainment Limited
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income (Loss)
(In thousands of U.S. dollars)
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income (Loss)
(In thousands of U.S. dollars)
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2011 | 2010 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Adjusted Property EBITDA |
$ | 372,873 | $ | 185,924 | ||||
Corporate and Other Expenses |
(35,277 | ) | (25,595 | ) | ||||
Adjusted EBITDA |
337,596 | 160,329 | ||||||
Pre-opening Costs |
(1,285 | ) | (6,982 | ) | ||||
Development Costs |
(1,110 | ) | — | |||||
Depreciation and Amortization |
(166,518 | ) | (152,112 | ) | ||||
Share-based Compensation |
(3,856 | ) | (2,503 | ) | ||||
Property Charges and Others |
(1,025 | ) | 34 | |||||
Interest and Other Non-Operating Expense, Net |
(89,925 | ) | (41,484 | ) | ||||
Income Tax (Expense) Credit |
(69 | ) | 143 | |||||
Net Income (Loss) |
$ | 73,808 | $ | (42,575 | ) | |||
15
Melco Crown Entertainment Limited
Supplemental Data Schedule
Supplemental Data Schedule
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Room Statistics: |
||||||||||||||||
Altira Macau |
||||||||||||||||
Average daily rate (4) |
$ | 200 | $ | 166 | $ | 198 | $ | 166 | ||||||||
Occupancy per available room |
97 | % | 93 | % | 97 | % | 92 | % | ||||||||
Revenue per available room (5) |
$ | 195 | $ | 153 | $ | 192 | $ | 153 | ||||||||
City of Dreams |
||||||||||||||||
Average daily rate (4) |
$ | 170 | $ | 152 | $ | 170 | $ | 152 | ||||||||
Occupancy per available room |
90 | % | 81 | % | 89 | % | 78 | % | ||||||||
Revenue per available room (5) |
$ | 153 | $ | 123 | $ | 151 | $ | 118 | ||||||||
Other Information: |
||||||||||||||||
Altira Macau |
||||||||||||||||
Average number of table games |
206 | 212 | 206 | 214 | ||||||||||||
Table games win per unit per day (6) |
$ | 23,026 | $ | 16,590 | $ | 21,843 | $ | 15,647 | ||||||||
City of Dreams |
||||||||||||||||
Average number of table games |
420 | 412 | 417 | 410 | ||||||||||||
Average number of gaming machines |
1,290 | 1,317 | 1,292 | 1,311 | ||||||||||||
Table games win per unit per day (6) |
$ | 18,991 | $ | 10,257 | $ | 17,844 | $ | 10,451 | ||||||||
Gaming machines win per unit per day (7) |
$ | 298 | $ | 224 | $ | 286 | $ | 206 | ||||||||
| (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 |
16