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
For the month of May 2017
Commission File Number: 001-33178
MELCO RESORTS & ENTERTAINMENT LIMITED
36th Floor, The Centrium
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 ☒ Form 40-F ☐
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): ☐
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): ☐
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 ☐ No ☒
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
MELCO RESORTS & ENTERTAINMENT LIMITED
Form 6–K
TABLE OF CONTENTS
| Exhibit 99.1 |
Table of Contents
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 RESORTS & ENTERTAINMENT LIMITED | ||
| By: | /s/ Geoffrey Davis | |
| Name: | Geoffrey Davis, CFA | |
| Title: | Chief Financial Officer | |
Date: May 4, 2017
3
Table of Contents
EXHIBIT INDEX
| Exhibit No. |
Description | |
| Exhibit 99.1 |
Unaudited Results for First Quarter of 2017 and Quarterly Dividend Declaration | |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Melco Announces Unaudited First Quarter 2017 Earnings and Declares Quarterly Dividend
Macau, Thursday, May 4, 2017 – Melco Resorts & Entertainment Limited (Nasdaq: MLCO), 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 2017.
Net revenue for the first quarter of 2017 was US$1,277.2 million, representing an increase of approximately 16% from US$1,103.6 million for the comparable period in 2016. The increase in net revenue was primarily attributable to improved group-wide rolling chip and mass market table games revenues.
On a U.S. GAAP basis, operating income for the first quarter of 2017 was US$158.5 million, compared with operating income of US$65.8 million in the first quarter of 2016, representing an increase of 141%.
Adjusted property EBITDA(1) was US$353.3 million for the first quarter of 2017, as compared to Adjusted property EBITDA of US$248.8 million in the first quarter of 2016, representing an increase of 42%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to better performance in group-wide rolling chip and mass market table games segments.
On a U.S. GAAP basis, net income attributable to Melco Resorts & Entertainment Limited for the first quarter of 2017 was US$113.4 million, or US$0.23 per ADS, compared with net income attributable to Melco Resorts & Entertainment Limited of US$39.8 million, or US$0.07 per ADS, in the first quarter of 2016. The net loss attributable to noncontrolling interests during the first quarter of 2017 of US$10.6 million was related to Studio City and City of Dreams Manila.
1
Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “In the first quarter of 2017, we delivered a strong set of results as highlighted by a 42% year-on-year increase in group-wide Adjusted property EBITDA, driven by expanding revenues across both Macau and the Philippines.
“City of Dreams delivered Adjusted property EBITDA of approximately US$214 million, a sequential increase of over 13% compared to the prior quarter, despite an increase in supply in Macau. We recently announced a range of exciting enhancements to City of Dreams, our flagship integrated resort in Macau, which we believe will help us continue to be one of the leaders of the market in the premium segments in Macau.
“We will replace the Hard Rock hotel brand at City of Dreams with a temporary hotel brand, “The Countdown”, beginning in July 2017. The Countdown Hotel will operate until March 31, 2018, at which time we will open Morpheus, an approximately 780 room, luxury hotel that will change the landscape in Macau with what we believe is a truly iconic design. Upon the opening of Morpheus, The Countdown will be rebranded and redeveloped into a new hotel concept which we believe will enhance the integrated resort’s premium positioning.
“Studio City generated a year-over-year increase in Adjusted property EBITDA of approximately 207%, driven by a 39% year-over-year increase in mass table games revenue and contribution from the rolling chip operations which continues to ramp up following its introduction in November 2016.
“City of Dreams Manila delivered a fifth quarter of record Adjusted property EBITDA as a result of improvements across all gaming segments. Our investment in the Philippines gaming market provides our company with ongoing diversification of earnings and has enabled us to participate in, and contribute to, one of the world’s fastest growing gaming and tourism markets. Our entry into the Philippine gaming market highlights our dedication to investing in development opportunities that create long term value for our shareholders.
“Early this year, we received shareholder approval to change our company’s name to Melco Resorts & Entertainment Limited, reflecting a corporate identity which is more closely aligned to our long term vision of building the world’s leading luxury gaming, entertainment and hospitality company.”
2
City of Dreams First Quarter Results
For the quarter ended March 31, 2017, net revenue at City of Dreams was US$693.2 million compared to US$678.6 million in the first quarter of 2016. City of Dreams generated Adjusted EBITDA of US$213.5 million in the first quarter of 2017, representing an increase of 4% compared to US$205.6 million in the comparable period of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of greater rolling chip gross gaming revenues and increased non-gaming revenue.
Rolling chip volume totaled US$12.6 billion for the first quarter of 2017 versus US$9.8 billion in the first quarter of 2016. The rolling chip win rate was 2.7% in the first quarter of 2017 versus 3.2% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.
Mass market table games drop decreased to US$1,059.8 million compared with US$1,073.5 million in the first quarter of 2016. The mass market table games hold percentage was 36.9% in the first quarter of 2017 compared to 36.7% in the first quarter of 2016.
Gaming machine handle for the first quarter of 2017 was US$1,025.9 million, compared with US$1,044.5 million in the first quarter of 2016. The gaming machine win rate was 3.4% for both quarters ended March 31, 2017 and 2016.
Total non-gaming revenue at City of Dreams in the first quarter of 2017 was US$77.8 million, compared with US$62.0 million in the first quarter of 2016.
Altira Macau First Quarter Results
For the quarter ended March 31, 2017, net revenue at Altira Macau was US$109.1 million compared to US$108.4 million in the first quarter of 2016. Altira Macau generated Adjusted EBITDA of US$3.7 million in the first quarter of 2017 compared with negative Adjusted EBITDA of US$14.0 million in the first quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of a lower provision for doubtful debt.
Rolling chip volume totaled US$4.1 billion in the first quarter of 2017 versus US$4.6 billion in the first quarter of 2016. The rolling chip win rate was 3.1% in the first quarter of 2017 versus 2.8% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.
In the mass market table games segment, drop totaled US$99.7 million in the first quarter of 2017, a decrease from US$135.2 million generated in the comparable period in 2016. The mass market table games hold percentage was 20.6% in the first quarter of 2017 compared with 17.0% in the first quarter of 2016.
Gaming machine handle for the first quarter of 2017 was US$8.0 million, compared with US$8.7 million in the first quarter of 2016. The gaming machine win rate was 5.8% in the first quarter of 2017 versus 5.9% in the first quarter of 2016.
Total non-gaming revenue at Altira Macau in the first quarter of 2017 was US$6.6 million compared with US$6.9 million in the first quarter of 2016.
3
Mocha Clubs First Quarter Results
Net revenue from Mocha Clubs totaled US$31.1 million in the first quarter of 2017 as compared to US$31.8 million in the first quarter of 2016. Mocha Clubs generated US$7.1 million of Adjusted EBITDA in the first quarter of 2017 compared with US$6.5 million in the same period in 2016.
Gaming machine handle for the first quarter of 2017 was US$603.1 million, compared with US$670.7 million in the first quarter of 2016. The gaming machine win rate was 5.0% in the first quarter of 2017 versus 4.6% in the first quarter of 2016.
Studio City First Quarter Results
For the quarter ended March 31, 2017, net revenue at Studio City was US$277.9 million compared to US$178.7 million in the first quarter of 2016. Studio City generated Adjusted EBITDA of US$67.8 million in the first quarter of 2017 compared with Adjusted EBITDA of US$22.1 million in the first quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of commencement of rolling chip operations in November 2016 and better performance in mass market table games segment.
Rolling chip volume totaled US$3.6 billion for the first quarter of 2017. The rolling chip win rate was 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$656.3 million compared with US$547.0 million in the first quarter of 2016. The mass market table games hold percentage was 26.4% in the first quarter of 2017 compared to 22.8% in the first quarter of 2016.
Gaming machine handle for the first quarter of 2017 was US$497.4 million, compared with US$409.7 million in the first quarter of 2016. The gaming machine win rate was 3.7% in the first quarter of 2017 versus 3.6% in the first quarter of 2016.
Total non-gaming revenue at Studio City in the first quarter of 2017 was US$50.8 million, compared with US$58.2 million in the first quarter of 2016.
4
City of Dreams Manila First Quarter Results
For the quarter ended March 31, 2017, net revenue at City of Dreams Manila was US$157.4 million compared to US$95.4 million in the first quarter of 2016. City of Dreams Manila generated Adjusted EBITDA of US$61.1 million in the first quarter of 2017 compared to US$28.6 million in the comparable period of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues.
Rolling chip volume totaled US$2.4 billion for the first quarter of 2017 versus US$1.5 billion in the first quarter of 2016. The rolling chip win rate was 3.4% in the first quarter of 2017 versus 2.8% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.
Mass market table games drop increased to US$153.9 million for the first quarter of 2017, compared with US$120.4 million in the first quarter of 2016. The mass market table games hold percentage was 28.7% in the first quarter of 2017 compared to 27.5% in the first quarter of 2016.
Gaming machine handle for the first quarter of 2017 was US$729.9 million, compared with US$451.4 million in the first quarter of 2016. The gaming machine win rate was 6.2% in the first quarter of 2017 versus 6.1% in the first quarter of 2016.
Total non-gaming revenue at City of Dreams Manila in the first quarter of 2017 was US$27.6 million, compared with US$24.1 million in the first quarter of 2016.
Other Factors Affecting Earnings
Total net non-operating expenses for the first quarter of 2017 were US$57.4 million, which mainly included interest expenses, net of capitalized interest, of US$58.6 million, other finance costs of US$8.8 million and a net foreign exchange gain of US$8.7 million. We recorded US$8.9 million of capitalized interest during the first quarter of 2017, primarily relating to the development of Morpheus at City of Dreams.
The year-on-year decrease of US$2.7 million in net non-operating expenses was primarily a result of higher net foreign exchange gain in the current quarter.
Depreciation and amortization costs of US$137.6 million were recorded in the first quarter of 2017, 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.
5
Financial Position and Capital Expenditure
Total cash and bank balances as of March 31, 2017 were US$1.5 billion, including US$20.0 million of bank deposits with original maturities over three months and US$78.7 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 2017, was US$3.7 billion.
Capital expenditures for the first quarter of 2017 were US$93.9 million, which predominantly related to various projects at City of Dreams, including Morpheus.
Dividend Declaration
On May 4, 2017, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.03 per share (equivalent to US$0.09 per ADS) for the first quarter of 2017 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about Wednesday, May 31, 2017 to our shareholders whose names appear on the register of members of the Company at the close of business on Tuesday, May 16, 2017, being the record date for determination of entitlements to the Quarterly Dividend.
6
Conference Call Information
Melco Resorts & Entertainment Limited will hold a conference call to discuss its first quarter 2017 financial results on Thursday, May 4, 2017 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 | 1 866 519 4004 | |
| US Toll / International | 1 845 675 0437 | |
| HK Toll | 852 3018 6771 | |
| HK Toll Free | 800 906 601 | |
| UK Toll Free | 080 8234 6646 | |
| Australia Toll | 61 290 833 212 | |
| Australia Toll Free | 1 800 411 623 | |
| Philippines Toll Free | 1 800 1651 0607 | |
| Passcode | 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 | 1 855 452 5696 | |
| US Toll / International | 1 646 254 3697 | |
| HK Toll Free | 800 963 117 | |
| Philippines Toll Free | 1 800 1612 0166 | |
| Conference ID | 11046686 | |
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.
7
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, 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 others, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Others 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 and property charges and others, 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. |
8
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:
Ross Dunwoody
Vice President, Development & Investor Relations
Tel: +853 8868 7575 or +852 2598 3689
Email: rossdunwoody@melco-resorts.com
For media enquiries, please contact:
Maggie Ma
Chief Corporate Communications and Corporate Affairs Officer
Tel: +853 8868 3767 or +852 3151 3767
Email: maggiema@melco-resorts.com
9
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, | ||||||||
| 2017 | 2016 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| OPERATING REVENUES |
||||||||
| Casino |
$ | 1,189,009 | $ | 1,022,258 | ||||
| Rooms |
66,437 | 63,452 | ||||||
| Food and beverage |
44,826 | 40,984 | ||||||
| Entertainment, retail and others |
52,882 | 48,202 | ||||||
|
|
|
|
|
|||||
| Gross revenues |
1,353,154 | 1,174,896 | ||||||
| Less: promotional allowances |
(75,934 | ) | (71,329 | ) | ||||
|
|
|
|
|
|||||
| Net revenues |
1,277,220 | 1,103,567 | ||||||
|
|
|
|
|
|||||
| OPERATING COSTS AND EXPENSES |
||||||||
| Casino |
(802,733 | ) | (723,583 | ) | ||||
| Rooms |
(8,190 | ) | (8,536 | ) | ||||
| Food and beverage |
(14,620 | ) | (18,073 | ) | ||||
| Entertainment, retail and others |
(22,408 | ) | (29,075 | ) | ||||
| General and administrative |
(110,795 | ) | (110,319 | ) | ||||
| Payments to the Philippine Parties |
(15,439 | ) | (7,160 | ) | ||||
| Pre-opening costs |
(475 | ) | (635 | ) | ||||
| Development costs |
(1,017 | ) | (6 | ) | ||||
| Amortization of gaming subconcession |
(14,309 | ) | (14,309 | ) | ||||
| Amortization of land use rights |
(5,704 | ) | (5,704 | ) | ||||
| Depreciation and amortization |
(117,569 | ) | (119,971 | ) | ||||
| Property charges and others |
(5,464 | ) | (404 | ) | ||||
|
|
|
|
|
|||||
| Total operating costs and expenses |
(1,118,723 | ) | (1,037,775 | ) | ||||
|
|
|
|
|
|||||
| OPERATING INCOME |
158,497 | 65,792 | ||||||
|
|
|
|
|
|||||
| NON-OPERATING INCOME (EXPENSES) |
||||||||
| Interest income |
557 | 2,804 | ||||||
| Interest expenses, net of capitalized interest |
(58,556 | ) | (52,490 | ) | ||||
| Other finance costs |
(8,788 | ) | (13,838 | ) | ||||
| Foreign exchange gains, net |
8,709 | 2,556 | ||||||
| Other income, net |
659 | 842 | ||||||
|
|
|
|
|
|||||
| Total non-operating expenses, net |
(57,419 | ) | (60,126 | ) | ||||
|
|
|
|
|
|||||
| INCOME BEFORE INCOME TAX |
101,078 | 5,666 | ||||||
| INCOME TAX CREDIT (EXPENSE) |
1,753 | (938 | ) | |||||
|
|
|
|
|
|||||
| NET INCOME |
102,831 | 4,728 | ||||||
| NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
10,615 |
|
35,068 |
| ||||
|
|
|
|
|
|||||
| NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED |
$ |
113,446 |
|
$ |
39,796 |
| ||
|
|
|
|
|
|||||
| NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED |
||||||||
| Basic |
$ | 0.077 | $ | 0.025 | ||||
|
|
|
|
|
|||||
| Diluted |
$ | 0.077 | $ | 0.024 | ||||
|
|
|
|
|
|||||
| NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED |
||||||||
| Basic |
$ | 0.232 | $ | 0.074 | ||||
|
|
|
|
|
|||||
| Diluted |
$ | 0.231 | $ | 0.073 | ||||
|
|
|
|
|
|||||
| WEIGHTED AVERAGE SHARES OUTSTANDING USED IN NET INCOME ATTRIBUTABLE TO |
||||||||
| Basic |
1,465,423,013 | 1,618,015,902 | ||||||
|
|
|
|
|
|||||
| Diluted |
1,476,279,580 | 1,626,113,586 | ||||||
|
|
|
|
|
|||||
10
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
| March 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS |
||||||||
| CURRENT ASSETS |
||||||||
| Cash and cash equivalents |
$ | 1,356,136 | $ | 1,702,310 | ||||
| Bank deposits with original maturities over three months |
20,000 | 210,840 | ||||||
| Restricted cash |
78,583 | 39,152 | ||||||
| Accounts receivable, net |
179,731 | 225,438 | ||||||
| Amounts due from affiliated companies |
551 | 1,103 | ||||||
| Inventories |
32,392 | 32,600 | ||||||
| Prepaid expenses and other current assets |
81,465 | 68,111 | ||||||
|
|
|
|
|
|||||
| Total current assets |
1,748,858 | 2,279,554 | ||||||
|
|
|
|
|
|||||
| PROPERTY AND EQUIPMENT, NET |
5,626,651 | 5,655,823 | ||||||
| GAMING SUBCONCESSION, NET |
299,011 | 313,320 | ||||||
| INTANGIBLE ASSETS |
4,220 | 4,220 | ||||||
| GOODWILL |
81,915 | 81,915 | ||||||
| LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS |
193,708 | 194,911 | ||||||
| RESTRICTED CASH |
130 | 130 | ||||||
| DEFERRED TAX ASSETS |
187 | 152 | ||||||
| LAND USE RIGHTS, NET |
804,612 | 810,316 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 8,759,292 | $ | 9,340,341 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES |
||||||||
| Accounts payable |
$ | 19,039 | $ | 17,434 | ||||
| Accrued expenses and other current liabilities |
1,385,951 | 1,369,943 | ||||||
| Income tax payable |
3,299 | 7,422 | ||||||
| Capital lease obligations, due within one year |
31,163 | 30,730 | ||||||
| Current portion of long-term debt, net |
50,699 | 50,583 | ||||||
| Amounts due to affiliated companies |
926 | 3,028 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
1,491,077 | 1,479,140 | ||||||
|
|
|
|
|
|||||
| LONG-TERM DEBT, NET |
3,660,102 | 3,669,692 | ||||||
| OTHER LONG-TERM LIABILITIES |
50,431 | 49,287 | ||||||
| DEFERRED TAX LIABILITIES |
56,030 | 56,451 | ||||||
| CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR |
261,239 | 262,357 | ||||||
| SHAREHOLDERS’ EQUITY |
||||||||
| Ordinary shares |
14,759 | 14,759 | ||||||
| Treasury shares |
(89 | ) | (108 | ) | ||||
| Additional paid-in capital |
2,787,277 | 2,783,062 | ||||||
| Accumulated other comprehensive losses |
(25,232 | ) | (24,768 | ) | ||||
| (Accumulated losses) retained earnings |
(4,814 | ) | 570,925 | |||||
|
|
|
|
|
|||||
| Total Melco Resorts & Entertainment Limited shareholders’ equity |
2,771,901 | 3,343,870 | ||||||
| Noncontrolling interests |
468,512 | 479,544 | ||||||
|
|
|
|
|
|||||
| Total equity |
3,240,413 | 3,823,414 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND EQUITY |
$ | 8,759,292 | $ | 9,340,341 | ||||
|
|
|
|
|
|||||
11
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, | ||||||||
| 2017 | 2016 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net Income Attributable to Melco Resorts & Entertainment Limited |
$ | 113,446 | $ | 39,796 | ||||
| Pre-opening Costs |
475 | 635 | ||||||
| Development Costs |
1,017 | 6 | ||||||
| Property Charges and Others |
5,464 | 404 | ||||||
| Income Tax Impact on Adjustments |
(259 | ) | (2 | ) | ||||
| Noncontrolling Interests Impact on Adjustments |
8 | (339 | ) | |||||
|
|
|
|
|
|||||
| Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited |
$ | 120,151 | $ | 40,500 | ||||
|
|
|
|
|
|||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO |
||||||||
| Basic |
$ | 0.082 | $ | 0.025 | ||||
|
|
|
|
|
|||||
| Diluted |
$ | 0.081 | $ | 0.025 | ||||
|
|
|
|
|
|||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO |
||||||||
| Basic |
$ | 0.246 | $ | 0.075 | ||||
|
|
|
|
|
|||||
| Diluted |
$ | 0.244 | $ | 0.075 | ||||
|
|
|
|
|
|||||
| WEIGHTED AVERAGE SHARES OUTSTANDING USED IN |
||||||||
| Basic |
1,465,423,013 | 1,618,015,902 | ||||||
|
|
|
|
|
|||||
| Diluted |
1,476,279,580 | 1,626,113,586 | ||||||
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|
|
|
|||||
12
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, 2017 | ||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Corporate and Others |
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 Others |
57 | 62 | 3,343 | — | — | 2,002 | 5,464 | |||||||||||||||||||||
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|
|||||||||||||||
| Adjusted EBITDA |
3,715 | 7,106 | 213,541 | 67,798 | 61,138 | (32,446 | ) | 320,852 | ||||||||||||||||||||
| Corporate and Others Expenses |
— | — | — | — | — | 32,446 | 32,446 | |||||||||||||||||||||
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|
|||||||||||||||
| Adjusted Property EBITDA |
$ | 3,715 | $ | 7,106 | $ | 213,541 | $ | 67,798 | $ | 61,138 | $ | — | $ | 353,298 | ||||||||||||||
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|
|||||||||||||||
|
Three Months Ended March 31, 2016 |
||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Corporate and Others |
Total | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| Operating (Loss) Income |
$ | (19,901 | ) | $ | 3,361 | $ | 160,562 | $ | (23,329 | ) | $ | (5,437 | ) | $ | (49,464 | ) | $ | 65,792 | ||||||||||
| Payments to the Philippine Parties |
— | — | — | — | 7,160 | — | 7,160 | |||||||||||||||||||||
| Land Rent to Belle Corporation |
— | — | — | — | 840 | — | 840 | |||||||||||||||||||||
| Pre-opening Costs |
— | — | 77 | 558 | — | — | 635 | |||||||||||||||||||||
| Development Costs |
— | — | — | — | — | 6 | 6 | |||||||||||||||||||||
| Depreciation and Amortization |
5,826 | 3,079 | 44,301 | 44,707 | 24,275 | 17,796 | 139,984 | |||||||||||||||||||||
| Share-based Compensation |
(82 | ) | 34 | 473 | 124 | 1,775 | 3,213 | 5,537 | ||||||||||||||||||||
| Property Charges and Others |
197 | — | 191 | — | — | 16 | 404 | |||||||||||||||||||||
|
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|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
(13,960 | ) | 6,474 | 205,604 | 22,060 | 28,613 | (28,433 | ) | 220,358 | |||||||||||||||||||
| Corporate and Others Expenses |
— | — | — | — | — | 28,433 | 28,433 | |||||||||||||||||||||
|
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|
|
|
|
|
|
|
|||||||||||||||
| Adjusted Property EBITDA |
$ | (13,960 | ) | $ | 6,474 | $ | 205,604 | $ | 22,060 | $ | 28,613 | $ | — | $ | 248,791 | |||||||||||||
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|||||||||||||||
13
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, | ||||||||
| 2017 | 2016 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net Income Attributable to Melco Resorts & Entertainment Limited |
$ | 113,446 | $ | 39,796 | ||||
| Net Loss Attributable to Noncontrolling Interests |
(10,615 | ) | (35,068 | ) | ||||
|
|
|
|
|
|||||
| Net Income |
102,831 | 4,728 | ||||||
| Income Tax (Credit) Expense |
(1,753 | ) | 938 | |||||
| Interest and Other Non-Operating Expenses, Net |
57,419 | 60,126 | ||||||
| Property Charges and Others |
5,464 | 404 | ||||||
| Share-based Compensation |
1,587 | 5,537 | ||||||
| Depreciation and Amortization |
137,582 | 139,984 | ||||||
| Development Costs |
1,017 | 6 | ||||||
| Pre-opening Costs |
475 | 635 | ||||||
| Land Rent to Belle Corporation |
791 | 840 | ||||||
| Payments to the Philippine Parties |
15,439 | 7,160 | ||||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
320,852 | 220,358 | ||||||
| Corporate and Others Expenses |
32,446 | 28,433 | ||||||
|
|
|
|
|
|||||
| Adjusted Property EBITDA |
$ | 353,298 | $ | 248,791 | ||||
|
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|
|
|
|||||
14
Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2017 | 2016 | |||||||
| Room Statistics: |
||||||||
| Altira Macau |
||||||||
| Average daily rate (3) |
$ | 207 | $ | 208 | ||||
| Occupancy per available room |
92 | % | 95 | % | ||||
| Revenue per available room (4) |
$ | 190 | $ | 197 | ||||
| City of Dreams |
||||||||
| Average daily rate (3) |
$ | 200 | $ | 197 | ||||
| Occupancy per available room |
97 | % | 94 | % | ||||
| Revenue per available room (4) |
$ | 194 | $ | 185 | ||||
| Studio City |
||||||||
| Average daily rate (3) |
$ | 139 | $ | 137 | ||||
| Occupancy per available room |
99 | % | 96 | % | ||||
| Revenue per available room (4) |
$ | 138 | $ | 131 | ||||
| City of Dreams Manila |
||||||||
| Average daily rate (3) |
$ | 154 | $ | 157 | ||||
| Occupancy per available room |
98 | % | 86 | % | ||||
| Revenue per available room (4) |
$ | 150 | $ | 135 | ||||
| Other Information: |
||||||||
| Altira Macau |
||||||||
| Average number of table games |
114 | 127 | ||||||
| Average number of gaming machines |
56 | 62 | ||||||
| Table games win per unit per day (5) |
$ | 14,304 | $ | 12,823 | ||||
| Gaming machines win per unit per day (6) |
$ | 93 | $ | 91 | ||||
| City of Dreams |
||||||||
| Average number of table games |
480 | 500 | ||||||
| Average number of gaming machines |
839 | 1,072 | ||||||
| Table games win per unit per day (5) |
$ | 17,003 | $ | 15,648 | ||||
| Gaming machines win per unit per day (6) |
$ | 467 | $ | 364 | ||||
| Studio City |
||||||||
| Average number of table games |
282 | 246 | ||||||
| Average number of gaming machines |
972 | 1,113 | ||||||
| Table games win per unit per day (5) |
$ | 10,179 | $ | 5,561 | ||||
| Gaming machines win per unit per day (6) |
$ | 211 | $ | 146 | ||||
| City of Dreams Manila |
||||||||
| Average number of table games |
270 | 277 | ||||||
| Average number of gaming machines |
1,773 | 1,656 | ||||||
| Table games win per unit per day (5) |
$ | 5,193 | $ | 2,959 | ||||
| Gaming machines win per unit per day (6) |
$ | 285 | $ | 183 | ||||
| (3) | Average daily rate is calculated by dividing total room revenue including the retail value of promotional allowances by total occupied rooms including complimentary rooms |
| (4) | Revenue per available room is calculated by dividing total room revenue including the retail value of promotional allowances 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 |
15