Form 6-K
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 April 2021

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):  ☐

 

 

 


Table of Contents

MELCO RESORTS & ENTERTAINMENT LIMITED

Form 6–K

TABLE OF CONTENTS

 

Signature

     3  

Exhibit 99.1

  


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 RESORTS & ENTERTAINMENT
LIMITED
By:  

/s/ Geoffrey Davis

Name:   Geoffrey Davis, CFA
Title:   Chief Financial Officer

Date: April 28, 2021

 

 

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Table of Contents

EXHIBIT INDEX

 

Exhibit No.

  

Description

Exhibit 99.1   

Unaudited Results for First Quarter of 2021

UNAUDITED RESULTS FOR FIRST QUARTER OF 2021

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Melco Announces Unaudited First Quarter 2021 Earnings

Macau, Wednesday, April 28, 2021 – Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the first quarter of 2021.

Total operating revenues for the first quarter of 2021 were US$0.52 billion, representing a decrease of approximately 36% from US$0.81 billion for the comparable period in 2020. The decrease in total operating revenues was primarily attributable to a year-over-year decline in inbound tourism in the first quarter of 2021, compared to the first quarter of 2020, which was only partially impacted by the restrictions from the COVID-19 pandemic.

Operating loss for the first quarter of 2021 was US$162.8 million, compared with operating loss of US$149.9 million in the first quarter of 2020.

Melco generated Adjusted Property EBITDA(1) of US$30.1 million in the first quarter of 2021, compared with Adjusted Property EBITDA of US$75.3 million in the first quarter of 2020.

Net loss attributable to Melco Resorts & Entertainment Limited for the first quarter of 2021 was US$232.9 million, or US$0.49 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$364.0 million, or US$0.76 per ADS, in the first quarter of 2020. The net loss attributable to noncontrolling interests was US$44.6 million and US$42.0 million during the first quarters of 2021 and 2020, respectively, all of which were related to Studio City, City of Dreams Manila and the Cyprus Operations.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “COVID-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance. Despite these challenges, our integrated resorts experienced a moderate recovery in business levels during the first quarter.

“We commend the Macau government’s measured approach to reopening the border and schemes to boost the economy and support local jobs. In this regard, we continue to prioritize epidemic prevention measures to keep our colleagues and customers safe, while working collaboratively with small and medium enterprise (SME) partners to contribute to Macau’s sustainable development and economic recovery.

MELCO RESORTS & ENTERTAINMENT LIMITED

Incorporated in the Cayman Islands with limited liability

新濠博亞娛樂有限公司

於開曼群島註冊成立的有限公司

 

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“While impacted by COVID-19, Melco remains committed to its global development program. In Macau, construction on the expansion of Studio City is progressing. Upon completion, Studio City will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE space. The expansion of the current water park at Studio City Phase 1 is complete and will open on May 22, 2021. Also in Macau, our facility upgrade works at City of Dreams are ongoing, where the fully renovated Nüwa hotel re-opened at the end of March 2021, while the Countdown closed down at the end of March 2021 to undergo a full renovation. In Europe, we are developing City of Dreams Mediterranean which, upon completion, will be Europe’s largest integrated resort with approximately 500 luxury hotel rooms, approximately 10,000 square meters of MICE space, an outdoor amphitheater, a family adventure park, and a variety of fine-dining outlets and luxury retail.

“Additionally, in recognition of the Company’s commitment to sustainable building design and development as part of its Above and Beyond sustainability strategy, Studio City Phase 2 was named winner of the BREEAM Awards’ 2021 ‘Regional Award, Asia’. Both Studio City Phase 2 and City of Dreams Mediterranean have attained BREEAM’s “Excellent” rating at the Design Stage where the highest sustainability standards in development have been incorporated into the building’s design.

“Turning to Japan, we remain committed to bringing to the country a world-leading IR. We continue to believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and a continuing commitment to employee development puts Melco in a strong position to help Japan realize the vision of developing an exceptional IR with a uniquely Japanese touch. Due to COVID, the process in Japan has been delayed and remains complex but has continued to progress forward. Melco is currently actively engaged with multiple potential partners. We will continue to be patient as we navigate the landscape to ensure that Melco pursues the right opportunity that takes advantage of Melco’s core strengths to drive strong value creation.”

 

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City of Dreams First Quarter Results

For the quarter ended March 31, 2021, the total operating revenues at City of Dreams were US$302.5 million, compared to US$467.6 million in the first quarter of 2020. City of Dreams generated Adjusted EBITDA of US$40.0 million in the first quarter of 2021, compared with Adjusted EBITDA of US$61.0 million in the first quarter of 2020. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in the rolling chip segment, partially offset by lower operating costs as a result of lower business volumes and our cost containment efforts.

Rolling chip volume was US$4.13 billion for the first quarter of 2021 versus US$8.65 billion in the first quarter of 2020. The rolling chip win rate was 2.36% in the first quarter of 2021 versus 4.11% in the first quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$0.73 billion in the first quarter of 2021, compared with US$0.57 billion in the first quarter of 2020. The mass market table games hold percentage was 31.7% in the first quarter of 2021, compared to 33.7% in the first quarter of 2020.

Gaming machine handle for the first quarter of 2021 was US$510.2 million, compared with US$509.6 million in the first quarter of 2020. The gaming machine win rate was 3.3% in the first quarter of 2021 versus 3.9% in the first quarter of 2020.

Total non-gaming revenue at City of Dreams in the first quarter of 2021 was US$47.1 million, compared with US$47.0 million in the first quarter of 2020.

Altira Macau First Quarter Results

For the quarter ended March 31, 2021, the total operating revenues at Altira Macau were US$14.3 million, compared to US$52.9 million in the first quarter of 2020. Altira Macau generated negative Adjusted EBITDA of US$29.6 million in the first quarter of 2021, compared with negative Adjusted EBITDA of US$9.1 million in the first quarter of 2020. The change in Adjusted EBITDA was primarily a result of softer performance in the rolling chip and mass market table games segments, partially offset by lower operating costs as a result of lower business volumes and our cost containment efforts.

Rolling chip volume was US$1.10 billion in the first quarter of 2021, versus US$1.38 billion in the first quarter of 2020. The rolling chip win rate was 1.60% in the first quarter of 2021 versus 4.48% in the first quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

 

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In the mass market table games segment, drop was US$51.4 million in the first quarter of 2021 versus US$64.4 million in the first quarter of 2020. The mass market table games hold percentage was 19.1% in the first quarter of 2021, compared with 30.4% in the first quarter of 2020.

Gaming machine handle for the first quarter of 2021 was US$60.2 million, compared with US$39.1 million in the first quarter of 2020. The gaming machine win rate was 3.9% in the first quarter of 2021 versus 2.5% in the first quarter of 2020.

Total non-gaming revenue at Altira Macau in the first quarter of 2021 was US$3.1 million, compared with US$3.0 million in the first quarter of 2020.

Mocha Clubs First Quarter Results

Total operating revenues from Mocha Clubs were US$17.8 million in the first quarter of 2021, compared to US$18.0 million in the first quarter of 2020. Mocha Clubs generated Adjusted EBITDA of US$1.8 million in the first quarter of 2021, compared with Adjusted EBITDA of US$0.1 million in the same period in 2020.

Gaming machine handle for the first quarter of 2021 was US$415.2 million, compared with US$385.9 million in the first quarter of 2020. The gaming machine win rate was 4.3% in the first quarter of 2021 versus 4.7% in the first quarter of 2020.

Studio City First Quarter Results

For the quarter ended March 31, 2021, the total operating revenues at Studio City were US$97.9 million, compared to US$136.6 million in the first quarter of 2020. Studio City generated negative Adjusted EBITDA of US$5.2 million in the first quarter of 2021, compared with negative Adjusted EBITDA of US$9.4 million in the first quarter of 2020. The year-over-year change in Adjusted EBITDA was primarily due to lower operating costs as a result of lower business volumes and our cost containment efforts.

Studio City’s rolling chip volume was US$0.50 billion in the first quarter of 2021 versus US$1.38 billion in the first quarter of 2020. The rolling chip win rate was 0.29% in the first quarter of 2021 versus 3.31% in the first quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

 

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Mass market table games drop decreased to US$309.3 million in the first quarter of 2021, compared with US$352.8 million in the first quarter of 2020. The mass market table games hold percentage was 29.1% in the first quarter of 2021, compared to 25.9% in the first quarter of 2020.

Gaming machine handle for the first quarter of 2021 was US$278.3 million, compared with US$311.1 million in the first quarter of 2020. The gaming machine win rate was 2.5% in the first quarter of 2021 versus 3.2% in the first quarter of 2020.

Total non-gaming revenue at Studio City in the first quarter of 2021 was US$19.4 million, compared with US$21.0 million in the first quarter of 2020.

City of Dreams Manila First Quarter Results

For the quarter ended March 31, 2021, the total operating revenues at City of Dreams Manila were US$79.5 million, compared to US$110.3 million in the first quarter of 2020. City of Dreams Manila generated Adjusted EBITDA of US$29.4 million in the first quarter of 2021, compared with Adjusted EBITDA of US$29.6 million in the comparable period of 2020.

City of Dreams Manila’s rolling chip volume was US$0.27 billion in the first quarter of 2021 versus US$1.16 billion in the first quarter of 2020. The rolling chip win rate was 7.00% in the first quarter of 2021 versus 3.72% in the first quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$100.0 million in the first quarter of 2021, compared with US$156.9 million in the first quarter of 2020. The mass market table games hold percentage was 34.0% in the first quarter of 2021, compared to 33.5% in the first quarter of 2020.

Gaming machine handle for the first quarter of 2021 was US$568.9 million, compared with US$859.2 million in the first quarter of 2020. The gaming machine win rate was 5.7% in the first quarter of 2021 versus 4.1% in the first quarter of 2020.

Total non-gaming revenue at City of Dreams Manila in the first quarter of 2021 was US$14.2 million, compared with US$25.6 million in the first quarter of 2020.

 

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Cyprus Operations First Quarter Results

The Company is licensed to operate a temporary casino, the first casino in the Republic of Cyprus, and four satellite casinos, of which the temporary casino and three satellite casinos are planned to resume operation after the current government restrictions are lifted. Upon the completion and opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease.

For the quarter ended March 31, 2021, the total operating revenues at Cyprus Casinos were insignificant, compared to US$18.8 million in the first quarter of 2020. Cyprus Casinos generated negative Adjusted EBITDA of US$6.4 million in the first quarter of 2021, compared with Adjusted EBITDA of US$3.2 million in the first quarter of 2020. The year-over-year decrease in Adjusted EBITDA was primarily a result of temporary government-mandated casino closures during the entire first quarter of 2021.

Other Factors Affecting Earnings

Total net non-operating expenses for the first quarter of 2021 were US$114.0 million, which mainly included interest expenses of US$90.6 million, net of amounts capitalized, and loss on extinguishment of debt of US$28.8 million.

Depreciation and amortization costs of US$141.1 million were recorded in the first quarter of 2021, of which US$14.3 million related to the amortization expense for our Macau gaming subconcession and US$5.7 million related to the amortization expense for the land use rights.

The negative Adjusted EBITDA for Studio City for the three months ended March 31, 2021 referred to in this press release was US$8.2 million less than the negative Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated April 28, 2021 (the “Studio City earnings release”). The Adjusted EBITDA of Studio City contained in the Studio City earnings release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain intercompany costs related to the table games operations at Studio City Casino.

 

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Financial Position and Capital Expenditures

Total cash and bank balances as of March 31, 2021 aggregated to US$1.58 billion, including US$0.4 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$5.80 billion at the end of the first quarter of 2021.

Capital expenditures for the first quarter of 2021 were US$157.4 million, which primarily related to various construction projects at City of Dreams, Studio City Phase 2, and City of Dreams Mediterranean.

Recent Developments

The COVID-19 outbreak continues to have a material effect on our operations, financial position, and prospects during the second quarter of 2021.

Despite the nationwide resumption of issuance of Individual Visit Scheme visas by China in September 2020, our operations in Macau continue to be impacted by significant travel bans, restrictions, and quarantine requirements imposed by the governments in Macau, Hong Kong and China, and such bans, restrictions and requirements have been, and may continue to be, modified by the relevant authorities from time to time as COVID-19 developments unfold. Additionally, health-related precautionary measures remain in place at our properties in Macau, which continue to impact visitation and customer spending.

Our Philippines casino gaming operations were closed due to the enhanced community quarantine for the entire island of Luzon, including Metro Manila, which began in March 2020. Despite the general closure, in June 2020, City of Dreams Manila was able to conduct a dry run of its gaming and hospitality operations with a limited number of participants, strictly adhering to the new guidelines on social distancing and hygiene and sanitation procedures imposed by the government of the Philippines and as permitted by PAGCOR. The PAGCOR-sanctioned dry run aimed at addressing all potential operational concerns to achieve a seamless re-opening for City of Dreams Manila. The dry run was expected to continue until PAGCOR issued a formal notice that City of Dreams Manila could resume operations again on a regular basis in the future.

The dry run was suspended for more than two weeks in early August 2020 due to the rising number of COVID-19 cases, before resuming in late August 2020. However, due to a recent resurgence in COVID-19 cases, on April 12, 2021, the government placed Metro Manila under a modified enhanced community quarantine, which is expected to be in effect until April 30, 2021. City of Dreams Manila was temporarily closed beginning on March 29, 2021, and will remain closed while such quarantine measures remain in place.

 

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In Cyprus, on November 12, 2020, as part of a regional lockdown, our casino operations in Limassol and Paphos were suspended until November 30, 2020. Thereafter, the government of Cyprus has announced a series of nationwide measures in an effort to prevent the spread of COVID-19 which included, among others, curfews, restrictions on gatherings, sports activities and operation of food and beverage and retail businesses and closure of various other businesses, including our casino operations in Cyprus. As a result, our operations in Cyprus are currently closed and will remain closed while such measures remain in place.

The COVID-19 outbreak has also impacted the construction of the Studio City Phase 2 project and the progress of construction work at the City of Dreams Mediterranean project. We currently expect additional time will be needed to complete the construction of these projects.

As the disruptions from the COVID-19 outbreak are ongoing, any recovery from such disruptions will depend on future events, such as the successful production, distribution and widespread acceptance of safe and effective vaccines, the development of effective treatments for COVID-19, including for new strains of COVID-19, the duration of travel and visa restrictions as well as customer sentiment and behavior, including the length of time before customers resume traveling and participating in entertainment and leisure activities at high-density venues and the impact of potential higher unemployment rates, declines in income levels and loss of personal wealth resulting from the COVID-19 outbreak on consumer behavior related to discretionary spending and traveling, all of which are highly uncertain.

 

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Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its first quarter 2021 financial results on Wednesday, April 28, 2021 at 8:30 a.m. Eastern Time (or 8:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

 

US Toll Free    1 844 760 0770
US Toll / International    1 347 549 4094
HK Toll    852 3018 8307
HK Toll Free    800 906 613
Japan Toll    81 3 4503 6004
Japan Toll Free    012 092 5482
UK Toll Free    080 0051 4241
Australia Toll    61 290 833 216
Australia Toll Free    1 800 754 642
Philippines Toll Free    1 800 1612 0312
Passcode    5767758

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    852 3051 2780
HK Toll Free    800 963 117
Japan Toll    81 3 4580 6717
Japan Toll Free    012 095 9034
Philippines Toll Free    1 800 1612 0166
Conference ID    5767758

 

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Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the “Company”) may also make 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) the global pandemic of COVID-19, caused by a novel strain of the coronavirus, and the continued impact of its consequences on our business, our industry and the global economy, (ii) growth of the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iii) capital and credit market volatility, (iv) local and global economic conditions, (v) our anticipated growth strategies, (vi) gaming authority and other governmental approvals and regulations, and (vii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

 

(1)

“Adjusted EBITDA” is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses. “Adjusted Property EBITDA” is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses. Adjusted EBITDA and Adjusted Property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA and Adjusted Property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors.

The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported Adjusted EBITDA and Adjusted Property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income/loss 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/loss, 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.

 

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Such U.S. 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 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/loss” is net income/loss before pre-opening costs, development costs, property charges and other and loss on extinguishment of debt, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss 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/loss 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/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss 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/loss attributable to Melco Resorts & Entertainment Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

About Melco Resorts & Entertainment Limited

The Company, with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO), is a developer, owner and operator of integrated resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), an integrated resort located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated 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 resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), an integrated resort in the Entertainment City complex in Manila. In Europe, the Company is currently developing City of Dreams Mediterranean (www.cityofdreamsmed.com.cy) in the Republic of Cyprus, which is expected to be the largest and premier integrated destination resort in Europe. The Company is currently operating a temporary casino, the first authorized casino in the Republic of Cyprus, and is licensed to operate four satellite casinos (“Cyprus Casinos”). Upon the opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease. For more information about the Company, please visit www.melco-resorts.com.

 

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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 the investment community, please contact:

Robin Yuen

Director, Investor Relations

Tel: +852 2598 3619

Email: robinyuen@melco-resorts.com

For media enquiries, please contact:

Chimmy Leung

Executive Director, Corporate Communications

Tel: +852 3151 3765

Email: chimmyleung@melco-resorts.com

 

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Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands of U.S. dollars, except share and per share data)

 

     Three Months Ended  
     March 31,  
     2021     2020  

Operating revenues:

    

Casino

   $ 433,796     $ 712,555  

Rooms

     39,680       44,821  

Food and beverage

     26,051       28,943  

Entertainment, retail and other

     19,395       24,856  
  

 

 

   

 

 

 

Total operating revenues

     518,922       811,175  
  

 

 

   

 

 

 

Operating costs and expenses:

    

Casino

     (366,929     (563,841

Rooms

     (12,839     (17,941

Food and beverage

     (24,122     (32,230

Entertainment, retail and other

     (7,704     (20,324

General and administrative

     (108,160     (131,297

Payments to the Philippine Parties

     (10,625     (7,706

Pre-opening costs

     (997     (395

Development costs

     (3,519     (13,430

Amortization of gaming subconcession

     (14,342     (14,323

Amortization of land use rights

     (5,717     (5,709

Depreciation and amortization

     (121,040     (142,233

Property charges and other

     (5,724     (11,672
  

 

 

   

 

 

 

Total operating costs and expenses

     (681,718     (961,101
  

 

 

   

 

 

 

Operating loss

     (162,796     (149,926
  

 

 

   

 

 

 

Non-operating income (expenses):

    

Interest income

     2,025       1,142  

Interest expenses, net of amounts capitalized

     (90,642     (78,155

Other financing costs

     (2,487     (1,244

Foreign exchange gains (losses), net

     5,199       (3,311

Other income (expenses), net

     673       (179,397

Loss on extinguishment of debt

     (28,817     —    
  

 

 

   

 

 

 

Total non-operating expenses, net

     (114,049     (260,965
  

 

 

   

 

 

 

Loss before income tax

     (276,845     (410,891

Income tax (expense) credit

     (664     4,840  
  

 

 

   

 

 

 

Net loss

     (277,509     (406,051

Net loss attributable to noncontrolling interests

     44,601       42,003  
  

 

 

   

 

 

 

Net loss attributable to Melco Resorts & Entertainment Limited

   $ (232,908   $ (364,048
  

 

 

   

 

 

 

Net loss attributable to Melco Resorts & Entertainment Limited per share:

    

Basic

   $ (0.163   $ (0.254
  

 

 

   

 

 

 

Diluted

   $ (0.163   $ (0.254
  

 

 

   

 

 

 

Net loss attributable to Melco Resorts & Entertainment Limited per ADS:

    

Basic

   $ (0.488   $ (0.761
  

 

 

   

 

 

 

Diluted

   $ (0.488   $ (0.761
  

 

 

   

 

 

 

Weighted average shares outstanding used in net loss attributable to Melco Resorts & Entertainment Limited per share calculation:

    

Basic

     1,432,289,789       1,435,762,261  
  

 

 

   

 

 

 

Diluted

     1,432,289,789       1,435,762,261  
  

 

 

   

 

 

 

 

13


Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars, except share and per share data)

 

     March 31,     December 31,  
     2021     2020  
     (Unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 1,580,648     $ 1,755,351  

Restricted cash

     13       13  

Accounts receivable, net

     111,398       129,619  

Amounts due from affiliated companies

     281       765  

Inventories

     35,890       37,277  

Prepaid expenses and other current assets

     84,832       85,798  

Assets held for sales

     3,321       —    
  

 

 

   

 

 

 

Total current assets

     1,816,383       2,008,823  
  

 

 

   

 

 

 

Property and equipment, net

     5,729,003       5,681,268  

Gaming subconcession, net

     70,093       84,663  

Intangible assets, net

     57,303       58,833  

Goodwill

     81,958       82,203  

Long-term prepayments, deposits and other assets

     280,951       284,608  

Restricted cash

     404       406  

Deferred tax assets, net

     6,381       6,376  

Operating lease right-of-use assets

     90,624       92,213  

Land use rights, net

     713,713       721,574  
  

 

 

   

 

 

 

Total assets

   $ 8,846,813     $ 9,020,967  
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 11,976     $ 9,483  

Accrued expenses and other current liabilities

     881,443       983,865  

Income tax payable

     11,784       14,164  

Operating lease liabilities, current

     28,879       27,066  

Finance lease liabilities, current

     24,435       80,004  

Amounts due to affiliated companies

     1,604       1,668  
  

 

 

   

 

 

 

Total current liabilities

     960,121       1,116,250  
  

 

 

   

 

 

 

Long-term debt, net

     5,801,344       5,645,391  

Other long-term liabilities

     38,563       29,213  

Deferred tax liabilities, net

     46,079       45,952  

Operating lease liabilities, non-current

     74,329       75,867  

Finance lease liabilities, non-current

     379,801       270,223  
  

 

 

   

 

 

 

Total liabilities

     7,300,237       7,182,896  
  

 

 

   

 

 

 

Shareholders’ equity:

    

Ordinary shares, par value $0.01; 7,300,000,000 shares authorized; 1,456,547,942 and 1,456,547,942 shares issued; 1,436,245,498 and 1,430,965,312 shares outstanding, respectively

     14,565       14,565  

Treasury shares, at cost; 20,302,444 and 25,582,630 shares, respectively

     (96,142     (121,028

Additional paid-in capital

     3,212,294       3,207,312  

Accumulated other comprehensive losses

     (46,452     (11,332

Accumulated losses

     (2,220,304     (1,987,396
  

 

 

   

 

 

 

Total Melco Resorts & Entertainment Limited shareholders’ equity

     863,961       1,102,121  

Noncontrolling interests

     682,615       735,950  
  

 

 

   

 

 

 

Total shareholders’ equity

     1,546,576       1,838,071  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 8,846,813     $ 9,020,967  
  

 

 

   

 

 

 

 

14


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Loss Attributable to Melco Resorts & Entertainment Limited to

Adjusted Net Loss Attributable to Melco Resorts & Entertainment Limited (Unaudited)

(In thousands of U.S. dollars, except share and per share data)

 

     Three Months Ended  
     March 31,  
     2021     2020  

Net loss attributable to Melco Resorts & Entertainment Limited

   $ (232,908   $ (364,048

Pre-opening costs

     997       395  

Development costs

     3,519       13,430  

Property charges and other

     5,724       11,672  

Loss on extinguishment of debt

     28,817       —    

Income tax impact on adjustments

     (706     (2,332

Noncontrolling interests impact on adjustments

     (13,449     (2,227
  

 

 

   

 

 

 

Adjusted net loss attributable to Melco Resorts & Entertainment Limited

   $ (208,006   $ (343,110
  

 

 

   

 

 

 

Adjusted net loss attributable to Melco Resorts & Entertainment Limited per share:

    

Basic

   $ (0.145   $ (0.239
  

 

 

   

 

 

 

Diluted

   $ (0.145   $ (0.239
  

 

 

   

 

 

 

Adjusted net loss attributable to Melco Resorts & Entertainment Limited per ADS:

    

Basic

   $ (0.436   $ (0.717
  

 

 

   

 

 

 

Diluted

   $ (0.436   $ (0.717
  

 

 

   

 

 

 

Weighted average shares outstanding used in adjusted net loss attributable to Melco Resorts & Entertainment Limited per share calculation:

    

Basic

     1,432,289,789       1,435,762,261  
  

 

 

   

 

 

 

Diluted

     1,432,289,789       1,435,762,261  
  

 

 

   

 

 

 

 

15


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Loss to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands of U.S. dollars)

 

     Three Months Ended March 31, 2021  
     Altira
Macau
    Mocha      City of
Dreams
    Studio
City
    City of
Dreams
Manila
    Cyprus
Operations
    Corporate
and Other
    Total  

Operating (loss) income

   $ (35,224   $ 163      $ (21,579   $ (39,341   $ (3,247   $ (10,267   $ (53,301   $ (162,796

Payments to the Philippine Parties

     —         —          —         —         10,625       —         —         10,625  

Land rent to Belle Corporation

     —         —          —         —         805       —         —         805  

Pre-opening costs

     —         —          193       243       —         561       —         997  

Development costs

     —         —          —         —         —         —         3,519       3,519  

Depreciation and amortization

     5,475       1,629        59,278       33,617       16,390       3,207       21,503       141,099  

Share-based compensation

     120       35        858       352       466       69       8,117       10,017  

Property charges and other

     71       17        1,298       (60     4,373       —         25       5,724  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (29,558     1,844        40,048       (5,189     29,412       (6,430     (20,137     9,990  

Corporate and Other expenses

     —         —          —         —         —         —         20,137       20,137  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ (29,558   $ 1,844      $ 40,048     $ (5,189   $ 29,412     $ (6,430   $ —          $ 30,127  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three Months Ended March 31, 2020  
     Altira
Macau
    Mocha     City of
Dreams
    Studio
City
    City of
Dreams
Manila
     Cyprus
Operations
    Corporate
and Other
    Total  

Operating (loss) income

   $ (14,700   $ (1,691   $ (6,877   $ (57,110   $ 4,288      $ (42   $ (73,794   $ (149,926

Payments to the Philippine Parties

     —         —         —         —         7,706        —         —         7,706  

Land rent to Belle Corporation

     —         —         —         —         777        —         —         777  

Pre-opening costs

     37       —         —         28       —          330       —         395  

Development costs

     —         —         —         —         —          —         13,430       13,430  

Depreciation and amortization

     5,410       1,776       63,351       42,833       16,466        2,837       29,592       162,265  

Share-based compensation

     115       (31     1,057       393       318        79       6,677       8,608  

Property charges and other

     72       26       3,421       4,442       —          —         3,711       11,672  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (9,066     80       60,952       (9,414     29,555        3,204       (20,384     54,927  

Corporate and Other expenses

     —         —         —         —         —          —         20,384       20,384  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ (9,066   $ 80     $ 60,952     $ (9,414   $ 29,555      $ 3,204     $ —          $ 75,311  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

16


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Loss Attributable to Melco Resorts & Entertainment Limited to

Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands of U.S. dollars)

 

     Three Months Ended  
     March 31,  
     2021     2020  

Net loss attributable to Melco Resorts & Entertainment Limited

   $ (232,908   $ (364,048

Net loss attributable to noncontrolling interests

     (44,601     (42,003
  

 

 

   

 

 

 

Net loss

     (277,509     (406,051

Income tax expense (credit)

     664       (4,840

Interest and other non-operating expenses, net

     114,049       260,965  

Property charges and other

     5,724       11,672  

Share-based compensation

     10,017       8,608  

Depreciation and amortization

     141,099       162,265  

Development costs

     3,519       13,430  

Pre-opening costs

     997       395  

Land rent to Belle Corporation

     805       777  

Payments to the Philippine Parties

     10,625       7,706  
  

 

 

   

 

 

 

Adjusted EBITDA

     9,990       54,927  

Corporate and Other expenses

     20,137       20,384  
  

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 30,127     $ 75,311  
  

 

 

   

 

 

 

 

17


Melco Resorts & Entertainment Limited and Subsidiaries

Supplemental Data Schedule

 

     Three Months
Ended
 
     March 31,  
     2021     2020  

Room Statistics(3):

    

Altira Macau

    

Average daily rate (4)

   $ 121     $ 181  

Occupancy per available room

     46     58

Revenue per available room (5)

   $ 56     $ 105  

City of Dreams

    

Average daily rate (4)

   $ 195     $ 231  

Occupancy per available room

     58     47

Revenue per available room (5)

   $ 112     $ 109  

Studio City

    

Average daily rate (4)

   $ 121     $ 137  

Occupancy per available room

     50     43

Revenue per available room (5)

   $ 60     $ 58  

City of Dreams Manila

    

Average daily rate (4)

   $ 130     $ 200  

Occupancy per available room

     70     93

Revenue per available room (5)

   $ 90     $ 185  

Other Information(6):

    

Altira Macau

    

Average number of table games

     102       85  

Average number of gaming machines

     114       141  

Table games win per unit per day (7)

   $ 2,992     $ 13,145  

Gaming machines win per unit per day (8)

   $ 229     $ 91  

City of Dreams

    

Average number of table games

     508       427  

Average number of gaming machines

     509       562  

Table games win per unit per day (7)

   $ 7,205     $ 16,650  

Gaming machines win per unit per day (8)

   $ 366     $ 458  

Studio City

    

Average number of table games

     292       252  

Average number of gaming machines

     604       747  

Table games win per unit per day (7)

   $ 3,476     $ 7,051  

Gaming machines win per unit per day (8)

   $ 130     $ 174  

City of Dreams Manila

    

Average number of table games

     294       299  

Average number of gaming machines

     2,162       2,292  

Table games win per unit per day (7)

   $ 2,076     $ 4,255  

Gaming machines win per unit per day (8)

   $ 172     $ 207  

Cyprus Operations

    

Average number of table games

     —         37  

Average number of gaming machines

     —         452  

Table games win per unit per day (7)

   $ —       $ 1,929  

Gaming machines win per unit per day (8)

   $ —       $ 398  

 

(3)

Room statistics exclude rooms that were temporarily closed or provided to staff members due to the COVID-19 outbreak

(4)

Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms

(5)

Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available

(6)

Table games and gaming machines that were not in operation due to government mandated closures or social distancing measures in relation to the COVID-19 outbreak have been excluded

(7)

Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

(8)

Gaming machines win per unit per day is shown before non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

 

18