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 August 2014
Commission File Number: 001-33178
MELCO CROWN 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 x 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 x
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 CROWN ENTERTAINMENT LIMITED
Form 6–K
TABLE OF CONTENTS
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 CROWN ENTERTAINMENT LIMITED | ||
| By: | /s/ Geoffrey Davis | |
| Name: | Geoffrey Davis, CFA | |
| Title: | Chief Financial Officer | |
Date: August 7, 2014
3
Table of Contents
| Exhibit No. |
Description | |||
| Exhibit 99.1 |
Unaudited Results for The Second Quarter of 2014, dated August 7, 2014 | |||
Exhibit 99.1
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Incorporated in the Cayman Islands with limited liability)
(SEHK Stock Code: 6883)
UNAUDITED RESULTS FOR THE SECOND QUARTER OF 2014
|
This announcement is issued pursuant to Rule 13.09 of the Rules Governing the Listing of the Securities of The Stock Exchange of Hong Kong Limited.
Melco Crown Entertainment Limited (“Melco Crown Entertainment” or “the Company” or “we”) (SEHK: 6883) (NASDAQ: MPEL), a developer, owner and operator of casino gaming and entertainment resort facilities in Asia, today released its unaudited financial results for the second quarter of 2014, as part of its regular earnings disclosure practices for the Company’s American depository shares (“ADSs”), which are listed on the NASDAQ Global Select Market in the United States.
These unaudited results have been prepared in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”) which differ in certain respects from the International Financial Reporting Standards (“IFRS”).
|
Net revenue for the second quarter of 2014 was US$1,199.5 million, representing a decrease of approximately 7% from US$1,295.0 million for the comparable period in 2013. The decline in net revenue was primarily attributable to lower group-wide rolling chip revenues, partially offset by improved mass market table games revenues.
Adjusted property EBITDA(1) was US$313.6 million for the second quarter of 2014, as compared to Adjusted property EBITDA of US$350.8 million in the second quarter of 2013. The 11% year-over-year decline in Adjusted property EBITDA was attributable to lower group-wide rolling chip volumes and rolling chip win rate, partially offset by growth in the mass market table games segment.
1
On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the second quarter of 2014 was US$143.6 million, or US$0.26 per ADS, compared with net income attributable to Melco Crown Entertainment of US$181.0 million, or US$0.33 per ADS, in the second quarter of 2013. The net loss attributable to noncontrolling interests during the second quarter of 2014 of US$17.0 million related to Studio City and City of Dreams Manila.
Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “In the second quarter of 2014 we delivered solid underlying financial performance, driven primarily by our mass market table games business at City of Dreams where revenues increased approximately 38% on a year-over-year basis.
“To ensure our properties are well positioned for the future, we continue with our market leading table and room optimization process, which has resulted in a further shift of tables in to the mass market segments at City of Dreams, while also making substantive improvements in the positioning and, in the case of City of Dreams, amenities available to visitors to Macau who continually seek a more diverse entertainment offering.
“We continue to make meaningful enhancements to the amenities at City of Dreams, including the recently opened lifestyle entertainment and dining precinct, called SOHO, located on the second floor of City of Dreams, together with a substantial expansion of the property’s luxury retail offering which is anticipated to be operational in 2016, expanding the integrated resort’s appeal to a wider array of customers.
“Our unique and exciting development pipeline moves closer to realization. City of Dreams Manila is due to open later this year, marking Melco Crown Entertainment’s evolution into a regional player in the gaming and entertainment industry. Studio City, our second large-scale resort in Cotai, remains on track to open in mid-2015, representing the next standalone integrated property to open in Macau, delivering an entertainment proposition not yet available in the region.
“The Company’s Board of Directors has approved the implementation of a US$500 million stock repurchase program, complementing our ordinary dividend policy announced earlier this year. We believe this capital management strategy provides us with the mechanism to return surplus capital opportunistically and efficiently, while maintaining flexibility to fund our current operations and future development pipeline.
“We believe that Macau remains the most exciting gaming destination in the world. The city’s location directly adjacent to Mainland China provides Macau with a vast and increasingly consumer-focused feeder market. With ongoing support from local and Mainland Chinese governments, we expect Macau to continue to evolve into the leading gaming and entertainment destination in Asia.”
2
City of Dreams Second Quarter Results
For the quarter ended June 30, 2014, net revenue at City of Dreams was US$967.5 million compared to US$967.0 million in the second quarter of 2013. City of Dreams generated Adjusted EBITDA of US$290.2 million in the second quarter of 2014, representing a decrease of 3% compared to US$300.2 million in the comparable period of 2013. The decline in Adjusted EBITDA was primarily a result of lower rolling chip volume and rolling chip win rate, partially offset by growth in mass market table games drop and an improved mass market table games hold percentage.
Rolling chip volume totaled US$22.1 billion for the second quarter of 2014 versus US$24.8 billion in the second quarter of 2013. The rolling chip win rate was 2.7% in the second quarter of 2014 versus 3.1% in the second quarter of 2013. The expected rolling chip win rate range is 2.7%–3.0%.
Mass market table games drop increased 20% to US$1,330.8 million compared with US$1,109.9 million in the second quarter of 2013. The mass market table games hold percentage was 37.4% in the second quarter of 2014, an increase from 32.8% in the second quarter of 2013.
Slot handle for the second quarter of 2014 was US$1,511.4 million, up 26% from US$1,196.2 million generated in the second quarter of 2013.
Total non-gaming revenue at City of Dreams in the second quarter of 2014 was US$67.2 million, up from US$62.2 million in the second quarter of 2013.
Altira Macau Second Quarter Results
For the quarter ended June 30, 2014, net revenue at Altira Macau was US$181.6 million compared to US$278.8 million in the second quarter of 2013. Altira Macau generated Adjusted EBITDA of US$15.6 million in the second quarter of 2014 compared with Adjusted EBITDA of US$41.4 million in the second quarter of 2013. The year-over-year decrease in Adjusted EBITDA was primarily a result of lower rolling chip volume and rolling chip win rate, partially offset by higher mass market table games revenues.
Rolling chip volume totaled US$8.3 billion in the second quarter of 2014 versus US$11.8 billion in the second quarter of 2013. The rolling chip win rate was 2.7% in the second quarter of 2014 versus 3.0% in the second quarter of 2013. The expected rolling chip win rate range is 2.7%–3.0%.
In the mass market table games segment, drop totaled US$196.8 million in the second quarter of 2014, an increase of 14% from US$172.1 million generated in the comparable period in 2013. The mass market table games hold percentage was 15.9% in the second quarter of 2014 compared with 15.5% in the second quarter of 2013.
Total non-gaming revenue at Altira Macau in the second quarter of 2014 was US$9.1 million, essentially flat from US$9.2 million in the second quarter of 2013.
3
Mocha Clubs Second Quarter Results
Net revenue from Mocha Clubs totaled US$36.5 million in the second quarter of 2014, a decline of 2% from US$37.2 million in the second quarter of 2013. Mocha Clubs generated US$8.6 million of Adjusted EBITDA in the second quarter of 2014, a decline of 11% when compared to Adjusted EBITDA of US$9.8 million in the same period in 2013.
The number of gaming machines in operation at Mocha Clubs averaged approximately 1,200 in the second quarter of 2014, compared to approximately 2,000 in the comparable period in 2013 due to the closure of four clubs partially offset by the opening of two new clubs in late 2013 and 2014, respectively. The net win per gaming machine per day was US$331 in the quarter ended June 30, 2014, as compared with US$207 in the comparable period in 2013, an increase of 60%.
City of Dreams Manila Second Quarter Results
On a fully consolidated basis, we incurred approximately US$16.9 million of operating expenses in the second quarter of 2014 at City of Dreams Manila, which primarily relate to pre-opening costs as well as share based compensation cost, and recorded a net loss of approximately US$32.2 million, as a result of approximately US$5.2 million interest expense on the PHP15 billion senior notes and US$7.5 million of capital lease charges relating to building lease payments, net of capitalized interest, incurred during the second quarter of 2014.
Other Factors Affecting Earnings
Total net non-operating expenses for the second quarter of 2014 were US$35.8 million, which mainly included interest income of US$3.8 million and interest expenses, net of capitalized interest, of US$28.7 million and other finance costs of US$12.0 million. We recorded US$20.6 million of capitalized interest during the second quarter of 2014, primarily relating to Studio City, City of Dreams Manila and the fifth hotel tower at City of Dreams. The year-on-year decrease of US$19.7 million in net non-operating expenses was primarily due to higher capitalized interest in the current quarter.
Depreciation and amortization costs of US$91.7 million were recorded in the second quarter of 2014, of which US$14.3 million was related to the amortization of our gaming subconcession and US$16.1 million was related to the amortization of land use rights.
Financial Position and Capital Expenditure
Total cash and bank balances as of June 30, 2014 totaled US$3.2 billion, including US$0.9 billion of restricted cash, primarily related to Studio City. Total debt at the end of the second quarter of 2014 was US$2.7 billion.
Capital expenditures for the second quarter of 2014 were US$318.8 million, which predominantly related to Studio City and City of Dreams Manila, as well as various projects at City of Dreams, including the fifth hotel tower.
Other Information
We received information today that, the Taipei District Prosecutors Office has indicted our Taiwan branch office and certain of its employees, for alleged violations of certain local banking and foreign exchange legislation. We have yet to receive the formal indictment document. We will defend vigorously any indictment brought against us, as based on Taiwan legal advice received, we believe our operations in Taiwan are in compliance with Taiwan laws. Whilst we believe the indictment will not have any immediate material impact on our business operations or financial position, we will monitor this case closely and will make further disclosure, as and when appropriate, as this case develops.
4
The shareholders and potential investors of Melco Crown Entertainment are advised not to place undue reliance on the unaudited earnings and financial information of the Company for the second quarter of 2014 and for the six months ended June 30, 2014 and are reminded that such financial information presented herein have been prepared in accordance with U.S. GAAP which may differ in certain respects from IFRS and has not been audited. Consequently, the shareholders and potential investors of the Company are advised to exercise caution in dealing in the securities of the Company.
Conference Call Information
Melco Crown Entertainment will hold a conference call to discuss its second quarter 2014 financial results on August 7, 2014 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 2475 0994 | |
| HK Toll Free | 800 930 346 | |
| UK Toll Free | 080 823 46646 | |
| Australia Toll Free | 1 800 457 076 | |
| Philippines Toll Free | 1 800 165 10607 | |
| Passcode | MPEL | |
An audio webcast will also be available at http://www.melco-crown.com.
To access the replay, please use the dial-in details below:
| US Toll Free | 1 855 452 5696 | |
| US Toll/International | 1 646 254 3697 | |
| HK Toll Free | 800 963 117 | |
| Conference ID | 74534582 | |
5
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. 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 visitation in Macau and the Philippines, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, and (v) 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 announcement is as of the date of this announcement, 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, gain on disposal of assets held for sale 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, gain on disposal of assets held for sale, corporate and others 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. 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. |
6
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 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 U.S. GAAP are provided herein immediately following the financial statements included in this announcement.
| (2) | “Adjusted net income” is net income before pre-opening costs, development costs, property charges and others, loss on extinguishment of debt and costs associated with debt modification. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment 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 U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment 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 Crown Entertainment 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 announcement. |
About Melco Crown Entertainment Limited
Melco Crown Entertainment, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) (SEHK: 6883) and its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ: MPEL), is a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia. Melco Crown Entertainment 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. Melco Crown Entertainment’s 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 is also developing the planned Studio City Project, a cinematically-themed integrated entertainment, retail and gaming resort in Cotai, Macau. In the Philippines, Melco Crown (Philippines) Resorts Corporation’s subsidiary, MCE Leisure (Philippines) Corporation, has been cooperating with SM Group’s Belle Corporation to develop and operate City of Dreams Manila, a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. For more information about Melco Crown Entertainment, please visit www.melco-crown.com.
7
Melco Crown Entertainment has strong support from both of its major shareholders, Melco International Development Limited (“Melco”) and Crown Resorts 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, an Executive Director and the Chief Executive Officer of Melco Crown Entertainment. Crown is a top-50 company listed on the Australian Securities Exchange and led by Chairman Mr. James Packer, who is also Co-Chairman and a Non-executive Director of Melco Crown Entertainment.
For investment community, please contact:
Ross Dunwoody
Vice President, Investor Relations
Tel: +853 8868 7575 or +852 2598 3689
Email: rossdunwoody@melco-crown.com
For media enquiry, please contact:
Maggie Ma
Head of Corporate Communications
Tel: +853 8868 3767 or +852 3151 3767
Email: maggiema@melco-crown.com
| By order of the Board |
| Melco Crown Entertainment Limited Lawrence Yau Lung Ho |
| Co-Chairman and Chief Executive Officer |
Macau, August 7, 2014
As at the date of this announcement, the board of directors comprises one executive director, namely Mr. Lawrence Yau Lung Ho (Co-Chairman and Chief Executive Officer); five non-executive directors, namely Mr. James Douglas Packer (Co-Chairman), Mr. John Peter Ben Wang, Mr. Clarence Yuk Man Chung, Mr. William Todd Nisbet, and Mr. Rowen Bruce Craigie; and four independent non-executive directors, namely Mr. James Andrew Charles MacKenzie, Mr. Thomas Jefferson Wu, Mr. Alec Yiu Wa Tsui, and Mr. Robert Wason Mactier.
This announcement is prepared in both English and Chinese and in the event of inconsistency, the English text of this announcement shall prevail over the Chinese text.
8
Melco Crown Entertainment Limited and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands of U.S. dollars, except share and per share data)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| OPERATING REVENUES |
||||||||||||||||
| Casino |
$ | 1,165,349 | $ | 1,263,336 | $ | 2,485,488 | $ | 2,373,779 | ||||||||
| Rooms |
33,565 | 31,414 | 66,999 | 62,348 | ||||||||||||
| Food and beverage |
19,289 | 18,024 | 40,633 | 37,888 | ||||||||||||
| Entertainment, retail and others |
25,676 | 23,118 | 52,991 | 45,930 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross revenues |
1,243,879 | 1,335,892 | 2,646,111 | 2,519,945 | ||||||||||||
| Less: promotional allowances |
(44,344 | ) | (40,881 | ) | (89,257 | ) | (79,993 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
1,199,535 | 1,295,011 | 2,556,854 | 2,439,952 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING COSTS AND EXPENSES |
||||||||||||||||
| Casino |
(823,450 | ) | (882,651 | ) | (1,737,080 | ) | (1,672,746 | ) | ||||||||
| Rooms |
(3,016 | ) | (2,881 | ) | (6,142 | ) | (6,009 | ) | ||||||||
| Food and beverage |
(4,727 | ) | (5,863 | ) | (10,459 | ) | (13,880 | ) | ||||||||
| Entertainment, retail and others |
(15,143 | ) | (15,089 | ) | (29,437 | ) | (31,068 | ) | ||||||||
| General and administrative |
(73,601 | ) | (61,256 | ) | (140,066 | ) | (117,833 | ) | ||||||||
| Pre-opening costs |
(20,063 | ) | (4,716 | ) | (28,594 | ) | (6,646 | ) | ||||||||
| Development costs |
(4,775 | ) | (2,888 | ) | (6,300 | ) | (19,985 | ) | ||||||||
| Amortization of gaming subconcession |
(14,310 | ) | (14,310 | ) | (28,619 | ) | (28,619 | ) | ||||||||
| Amortization of land use rights |
(16,118 | ) | (16,115 | ) | (32,236 | ) | (32,040 | ) | ||||||||
| Depreciation and amortization |
(61,269 | ) | (66,105 | ) | (125,671 | ) | (130,705 | ) | ||||||||
| Property charges and others |
(255 | ) | (3,473 | ) | (1,947 | ) | (3,697 | ) | ||||||||
| Gain on disposal of assets held for sale |
— | — | 22,072 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating costs and expenses |
(1,036,727 | ) | (1,075,347 | ) | (2,124,479 | ) | (2,063,228 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING INCOME |
162,808 | 219,664 | 432,375 | 376,724 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-OPERATING INCOME (EXPENSES) |
||||||||||||||||
| Interest income |
3,777 | 1,303 | 7,652 | 2,054 | ||||||||||||
| Interest expenses, net of capitalized interest |
(28,722 | ) | (40,396 | ) | (60,393 | ) | (82,532 | ) | ||||||||
| Other finance costs |
(12,014 | ) | (11,436 | ) | (23,868 | ) | (20,793 | ) | ||||||||
| Foreign exchange gain (loss), net |
477 | (5,399 | ) | (1,751 | ) | (9,822 | ) | |||||||||
| Other income, net |
658 | 360 | 1,216 | 360 | ||||||||||||
| Loss on extinguishment of debt |
— | — | — | (50,935 | ) | |||||||||||
| Costs associated with debt modification |
— | — | — | (10,538 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total non-operating expenses, net |
(35,824 | ) | (55,568 | ) | (77,144 | ) | (172,206 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| INCOME BEFORE INCOME TAX |
126,984 | 164,096 | 355,231 | 204,518 | ||||||||||||
| INCOME TAX (EXPENSE) CREDIT |
(304 | ) | 392 | (2,993 | ) | 1,356 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME |
126,680 | 164,488 | 352,238 | 205,874 | ||||||||||||
| NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
16,958 | 16,557 | 30,943 | 28,947 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED |
$ | 143,638 | $ | 181,045 | $ | 383,181 | $ | 234,821 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE: |
||||||||||||||||
| Basic |
$ | 0.087 | $ | 0.110 | $ | 0.232 | $ | 0.142 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.086 | $ | 0.109 | $ | 0.230 | $ | 0.141 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS: |
||||||||||||||||
| Basic |
$ | 0.261 | $ | 0.329 | $ | 0.696 | $ | 0.427 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.259 | $ | 0.327 | $ | 0.690 | $ | 0.424 | ||||||||
|
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|
|
|
|
|
|
|
|||||||||
| WEIGHTED AVERAGE SHARES USED IN NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE CALCULATION: |
||||||||||||||||
| Basic |
1,652,483,503 | 1,649,707,709 | 1,651,889,758 | 1,648,598,729 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
1,665,451,572 | 1,663,010,423 | 1,665,911,822 | 1,662,965,016 | ||||||||||||
|
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|
|
|
|
|
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|
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9
Melco Crown Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
| June 30, 2014 |
December 31, 2013 |
|||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS |
||||||||
| CURRENT ASSETS |
||||||||
| Cash and cash equivalents |
$ | 2,346,764 | $ | 1,381,757 | ||||
| Bank deposits with original maturity over three months |
— | 626,940 | ||||||
| Restricted cash |
424,369 | 770,294 | ||||||
| Accounts receivable, net |
248,830 | 287,880 | ||||||
| Amounts due from affiliated companies |
66 | 23 | ||||||
| Amount due from a shareholder |
51 | — | ||||||
| Deferred tax assets |
294 | — | ||||||
| Income tax receivable |
— | 18 | ||||||
| Inventories |
17,380 | 18,169 | ||||||
| Prepaid expenses and other current assets |
69,972 | 54,898 | ||||||
| Assets held for sale |
— | 8,468 | ||||||
|
|
|
|
|
|||||
| Total current assets |
3,107,726 | 3,148,447 | ||||||
|
|
|
|
|
|||||
| PROPERTY AND EQUIPMENT, NET |
3,765,532 | 3,308,846 | ||||||
| GAMING SUBCONCESSION, NET |
456,412 | 485,031 | ||||||
| INTANGIBLE ASSETS, NET |
4,220 | 4,220 | ||||||
| GOODWILL |
81,915 | 81,915 | ||||||
| LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS |
376,675 | 345,667 | ||||||
| RESTRICTED CASH |
438,312 | 373,371 | ||||||
| DEFERRED TAX ASSETS |
100 | 93 | ||||||
| DEFERRED FINANCING COSTS |
112,985 | 114,431 | ||||||
| LAND USE RIGHTS, NET |
919,423 | 951,618 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 9,263,300 | $ | 8,813,639 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES |
||||||||
| Accounts payable |
$ | 10,467 | $ | 9,825 | ||||
| Accrued expenses and other current liabilities |
940,298 | 928,751 | ||||||
| Income tax payable |
5,799 | 6,584 | ||||||
| Capital lease obligations, due within one year |
29,475 | 27,265 | ||||||
| Current portion of long-term debt |
262,660 | 262,566 | ||||||
| Amounts due to affiliated companies |
1,164 | 2,900 | ||||||
| Amount due to a shareholder |
39 | 79 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
1,249,902 | 1,237,970 | ||||||
|
|
|
|
|
|||||
| LONG-TERM DEBT |
2,482,158 | 2,270,894 | ||||||
| OTHER LONG-TERM LIABILITIES |
42,718 | 28,492 | ||||||
| DEFERRED TAX LIABILITIES |
60,870 | 62,806 | ||||||
| CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR |
264,818 | 253,029 | ||||||
| LAND USE RIGHTS PAYABLE |
7,484 | 35,466 | ||||||
| SHAREHOLDERS’ EQUITY |
||||||||
| Ordinary shares |
16,667 | 16,667 | ||||||
| Treasury shares |
(2,295 | ) | (5,960 | ) | ||||
| Additional paid-in capital |
3,354,447 | 3,479,399 | ||||||
| Accumulated other comprehensive losses |
(12,535 | ) | (15,592 | ) | ||||
| Retained earnings |
1,084,120 | 772,156 | ||||||
|
|
|
|
|
|||||
| Total Melco Crown Entertainment Limited shareholders’ equity |
4,440,404 | 4,246,670 | ||||||
| Noncontrolling interests |
714,946 | 678,312 | ||||||
|
|
|
|
|
|||||
| Total equity |
5,155,350 | 4,924,982 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND EQUITY |
$ | 9,263,300 | $ | 8,813,639 | ||||
|
|
|
|
|
|||||
10
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Net Income Attributable to Melco Crown Entertainment Limited to
Adjusted Net Income Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars, except share and per share data)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Net Income Attributable to Melco Crown |
$ | 143,638 | $ | 181,045 | $ | 383,181 | $ | 234,821 | ||||||||
| Pre-opening Costs |
20,063 | 4,716 | 28,594 | 6,646 | ||||||||||||
| Development Costs |
4,775 | 2,888 | 6,300 | 19,985 | ||||||||||||
| Property Charges and Others |
255 | 3,473 | 1,947 | 3,697 | ||||||||||||
| Loss on Extinguishment of Debt |
— | — | — | 50,935 | ||||||||||||
| Costs Associated with Debt Modification |
— | — | — | 10,538 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted Net Income Attributable to Melco Crown Entertainment Limited |
$ | 168,731 | $ | 192,122 | $ | 420,022 | $ | 326,622 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO |
||||||||||||||||
| Basic |
$ | 0.102 | $ | 0.116 | $ | 0.254 | $ | 0.198 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.101 | $ | 0.116 | $ | 0.252 | $ | 0.196 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO |
||||||||||||||||
| Basic |
$ | 0.306 | $ | 0.349 | $ | 0.763 | $ | 0.594 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.304 | $ | 0.347 | $ | 0.756 | $ | 0.589 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| WEIGHTED AVERAGE SHARES USED IN |
||||||||||||||||
| Basic |
1,652,483,503 | 1,649,707,709 | 1,651,889,758 | 1,648,598,729 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
1,665,451,572 | 1,663,010,423 | 1,665,911,822 | 1,662,965,016 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
11
Melco Crown 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 June 30, 2014 | ||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City | City of Dreams Manila |
Corporate and Others |
Total | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| Operating Income (Loss) |
$ | 8,851 | $ | 5,070 | $ | 233,742 | $ | (15,372 | ) | $ | (16,948 | ) | $ | (52,535 | ) | $ | 162,808 | |||||||||||
| Pre-opening Costs |
— | 464 | 1,614 | 4,193 | 13,792 | — | 20,063 | |||||||||||||||||||||
| Development Costs |
— | — | — | — | — | 4,775 | 4,775 | |||||||||||||||||||||
| Depreciation and Amortization |
6,679 | 2,820 | 54,528 | 10,885 | 653 | 16,132 | 91,697 | |||||||||||||||||||||
| Share-based Compensation |
34 | 38 | 350 | 7 | 1,986 | 2,837 | 5,252 | |||||||||||||||||||||
| Property Charges and Others |
— | 255 | — | — | — | — | 255 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
15,564 | 8,647 | 290,234 | (287 | ) | (517 | ) | (28,791 | ) | 284,850 | ||||||||||||||||||
| Corporate and Others Expenses |
— | — | — | — | — | 28,791 | 28,791 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted Property EBITDA |
$ | 15,564 | $ | 8,647 | $ | 290,234 | $ | (287 | ) | $ | (517 | ) | $ | — | $ | 313,641 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City | City of Dreams Manila |
Corporate and Others |
Total | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| Operating Income (Loss) |
$ | 33,444 | $ | 6,570 | $ | 238,690 | $ | (11,946 | ) | $ | (6,302 | ) | $ | (40,792 | ) | $ | 219,664 | |||||||||||
| Pre-opening Costs |
— | — | 369 | 748 | 3,581 | 18 | 4,716 | |||||||||||||||||||||
| Development Costs |
— | — | — | — | 2,127 | 761 | 2,888 | |||||||||||||||||||||
| Depreciation and Amortization |
7,891 | 2,946 | 57,871 | 10,883 | 306 | 16,633 | 96,530 | |||||||||||||||||||||
| Share-based Compensation |
37 | 22 | 243 | — | 63 | 2,454 | 2,819 | |||||||||||||||||||||
| Property Charges and Others |
— | 224 | 3,000 | — | — | 249 | 3,473 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
41,372 | 9,762 | 300,173 | (315 | ) | (225 | ) | (20,677 | ) | 330,090 | ||||||||||||||||||
| Corporate and Others Expenses |
— | — | — | — | — | 20,677 | 20,677 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted Property EBITDA |
$ | 41,372 | $ | 9,762 | $ | 300,173 | $ | (315 | ) | $ | (225 | ) | $ | — | $ | 350,767 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
12
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income
Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars)
| Three Months Ended June 30, |
||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Adjusted Property EBITDA |
$ | 313,641 | $ | 350,767 | ||||
| Corporate and Others Expenses |
(28,791 | ) | (20,677 | ) | ||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
284,850 | 330,090 | ||||||
| Pre-opening Costs |
(20,063 | ) | (4,716 | ) | ||||
| Development Costs |
(4,775 | ) | (2,888 | ) | ||||
| Depreciation and Amortization |
(91,697 | ) | (96,530 | ) | ||||
| Share-based Compensation |
(5,252 | ) | (2,819 | ) | ||||
| Property Charges and Others |
(255 | ) | (3,473 | ) | ||||
| Interest and Other Non-Operating Expenses, Net |
(35,824 | ) | (55,568 | ) | ||||
| Income Tax (Expense) Credit |
(304 | ) | 392 | |||||
|
|
|
|
|
|||||
| Net Income |
126,680 | 164,488 | ||||||
| Net Loss Attributable to Noncontrolling Interests |
16,958 | 16,557 | ||||||
|
|
|
|
|
|||||
| Net Income Attributable to Melco Crown Entertainment Limited |
$ | 143,638 | $ | 181,045 | ||||
|
|
|
|
|
|||||
13
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and
Adjusted Property EBITDA
(In thousands of U.S. dollars)
| Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City | City of Dreams Manila |
Corporate and Others |
Total | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| Operating Income (Loss) |
$ | 35,766 | $ | 11,797 | $ | 517,157 | $ | (27,411 | ) | $ | (25,742 | ) | $ | (79,192 | ) | $ | 432,375 | |||||||||||
| Pre-opening Costs |
— | 1,078 | 1,731 | 5,048 | 20,737 | — | 28,594 | |||||||||||||||||||||
| Development Costs |
— | — | — | — | — | 6,300 | 6,300 | |||||||||||||||||||||
| Depreciation and Amortization |
14,499 | 5,779 | 111,376 | 21,768 | 1,099 | 32,005 | 186,526 | |||||||||||||||||||||
| Share-based Compensation |
66 | 84 | 578 | 7 | 3,778 | 5,404 | 9,917 | |||||||||||||||||||||
| Property Charges and Others |
— | 1,190 | 757 | — | — | — | 1,947 | |||||||||||||||||||||
| Gain on Disposal of Assets Held For Sale |
— | — | — | — | — | (22,072 | ) | (22,072 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
50,331 | 19,928 | 631,599 | (588 | ) | (128 | ) | (57,555 | ) | 643,587 | ||||||||||||||||||
| Corporate and Others Expenses |
— | — | — | — | — | 57,555 | 57,555 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted Property EBITDA |
$ | 50,331 | $ | 19,928 | $ | 631,599 | $ | (588 | ) | $ | (128 | ) | $ | — | $ | 701,142 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City | City of Dreams Manila |
Corporate and Others |
Total | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| Operating Income (Loss) |
$ | 65,699 | $ | 11,839 | $ | 429,101 | $ | (23,706 | ) | $ | (23,226 | ) | $ | (82,983 | ) | $ | 376,724 | |||||||||||
| Pre-opening Costs |
— | — | 369 | 1,371 | 4,884 | 22 | 6,646 | |||||||||||||||||||||
| Development Costs |
— | — | — | — | 17,216 | 2,769 | 19,985 | |||||||||||||||||||||
| Depreciation and Amortization |
15,754 | 5,935 | 114,216 | 21,766 | 412 | 33,281 | 191,364 | |||||||||||||||||||||
| Share-based Compensation |
67 | 59 | 398 | — | 63 | 4,553 | 5,140 | |||||||||||||||||||||
| Property Charges and Others |
— | 448 | 3,000 | — | — | 249 | 3,697 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
81,520 | 18,281 | 547,084 | (569 | ) | (651 | ) | (42,109 | ) | 603,556 | ||||||||||||||||||
| Corporate and Others Expenses |
— | — | — | — | — | 42,109 | 42,109 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted Property EBITDA |
$ | 81,520 | $ | 18,281 | $ | 547,084 | $ | (569 | ) | $ | (651 | ) | $ | — | $ | 645,665 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
14
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income
Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars)
| Six Months Ended June 30, |
||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Adjusted Property EBITDA |
$ | 701,142 | $ | 645,665 | ||||
| Corporate and Others Expenses |
(57,555 | ) | (42,109 | ) | ||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
643,587 | 603,556 | ||||||
| Pre-opening Costs |
(28,594 | ) | (6,646 | ) | ||||
| Development Costs |
(6,300 | ) | (19,985 | ) | ||||
| Depreciation and Amortization |
(186,526 | ) | (191,364 | ) | ||||
| Share-based Compensation |
(9,917 | ) | (5,140 | ) | ||||
| Property Charges and Others |
(1,947 | ) | (3,697 | ) | ||||
| Gain on Disposal of Assets Held For Sale |
22,072 | — | ||||||
| Interest and Other Non-Operating Expenses, Net |
(77,144 | ) | (172,206 | ) | ||||
| Income Tax (Expense) Credit |
(2,993 | ) | 1,356 | |||||
|
|
|
|
|
|||||
| Net Income |
352,238 | 205,874 | ||||||
| Net Loss Attributable to Noncontrolling Interests |
30,943 | 28,947 | ||||||
|
|
|
|
|
|||||
| Net Income Attributable to Melco Crown Entertainment Limited |
$ | 383,181 | $ | 234,821 | ||||
|
|
|
|
|
|||||
15
Melco Crown Entertainment Limited and Subsidiaries
Supplemental Data Schedule
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Room Statistics: |
||||||||||||||||
| Altira Macau |
||||||||||||||||
| Average daily rate(3) |
$ | 232 | $ | 229 | $ | 234 | $ | 231 | ||||||||
| Occupancy per available room |
99 | % | 98 | % | 99 | % | 99 | % | ||||||||
| Revenue per available room(4) |
$ | 229 | $ | 226 | $ | 231 | $ | 227 | ||||||||
| City of Dreams |
||||||||||||||||
| Average daily rate(3) |
$ | 196 | $ | 188 | $ | 197 | $ | 190 | ||||||||
| Occupancy per available room |
99 | % | 97 | % | 99 | % | 96 | % | ||||||||
| Revenue per available room(4) |
$ | 194 | $ | 182 | $ | 194 | $ | 182 | ||||||||
| Other Information: |
||||||||||||||||
| Altira Macau |
||||||||||||||||
| Average number of table games |
136 | 169 | 139 | 171 | ||||||||||||
| Table games win per unit per day(5) |
$ | 20,714 | $ | 25,011 | $ | 22,998 | $ | 24,452 | ||||||||
| City of Dreams |
||||||||||||||||
| Average number of table games |
489 | 453 | 487 | 453 | ||||||||||||
| Average number of gaming machines |
1,373 | 1,584 | 1,278 | 1,532 | ||||||||||||
| Table games win per unit per day(5) |
$ | 24,608 | $ | 27,417 | $ | 26,406 | $ | 25,694 | ||||||||
| Gaming machines win per unit per day(6) |
$ | 457 | $ | 328 | $ | 494 | $ | 335 | ||||||||
| (3) | Average daily rate is calculated by dividing total room revenue by total occupied rooms |
| (4) | Revenue per available room is calculated by dividing total room revenue 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 |
16