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 November 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

Signature

 

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 CROWN ENTERTAINMENT LIMITED
By:  

/s/ Geoffrey Davis

Name:   Geoffrey Davis, CFA
Title:   Chief Financial Officer

Date: November 6, 2014

 

3


Table of Contents

EXHIBIT INDEX

 

Exhibit No.

      

Description

Exhibit 99.1

   

Unaudited Results for The Third Quarter of 2014, dated November 6, 2014

UNAUDITED RESULTS FOR THE THIRD QUARTER OF 2014, DATED NOVEMBER 6, 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.

 

 

LOGO

(Incorporated in the Cayman Islands with limited liability)

(SEHK Stock Code: 6883)

UNAUDITED RESULTS FOR THE THIRD 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 third 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 third quarter of 2014 was US$1,124.1 million, representing a decrease of approximately 10% from US$1,252.7 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 group-wide mass market table games revenues.

Adjusted property EBITDA(1) was US$305.7 million for the third quarter of 2014, as compared to Adjusted property EBITDA of US$339.0 million in the third quarter of 2013. The 10% 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.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the third quarter of 2014 was US$132.2 million, or US$0.24 per ADS, compared with net income attributable to Melco Crown Entertainment of US$179.4 million, or US$0.33 per ADS, in the third quarter of 2013. The net loss attributable to noncontrolling interests during the third quarter of 2014 of US$23.6 million related to Studio City and City of Dreams Manila.

 

1


Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “In the third quarter of 2014, we delivered solid operating and financial metrics, despite a challenging rolling chip environment in Macau, driven by a strong performance in our mass market operations at City of Dreams in Macau.

“City of Dreams continued to gain market share in the mass table games segment in Macau, with the property’s mass market table games revenues in the third quarter of 2014 increasing 24.0% on a year-over-year basis, outpacing the market which grew 16.2% during the same period. We believe City of Dreams’ diverse mix of first-class gaming and non-gaming amenities ensures the property will remain the leading premium integrated resort in the region.

“We have made significant progress on our exciting and truly unique development pipeline. The expansion of the luxury retail offering and the Dame Zaha Hadid-inspired fifth hotel tower at City of Dreams in Macau, which are expected to open in 2016 and the first half of 2017, respectively, will substantially expand City of Dreams gaming, hotel, food and beverage and retail offerings.

“Studio City remains firmly on track for a mid-2015 grand opening, representing the next standalone integrated resort to open in Macau. This entertainment-focused, cinematically-themed property will bring a vast array of non-gaming attractions not yet seen in the region, which will help broaden Macau’s appeal to a more diverse and continually evolving customer base.

“We are excited that our first expansion out of Macau is due to open its doors to customers in December, with a grand opening planned in the first quarter of 2015. This integrated resort in Entertainment City in Manila, with its collection of international brands and diverse array of gaming and entertainment attractions, will help put the Philippines on the map as a leading leisure and entertainment destination in Asia.

“We remain committed to driving long term shareholder value. In addition to the ongoing optimization of our current operating portfolio, we continue to evaluate and pursue value-accretive development opportunities, both in Macau and across the region, while at the same time returning surplus capital to shareholders through a combination of dividends and/or share repurchases.

“Macau remains the leading and most exciting gaming destination in the world. As the only legal casino gaming destination in China, Macau is ideally positioned to cater to one of the fastest growing consumer markets in the world, with a burgeoning middle and upper class which, together with a forward-thinking development and infrastructure blueprint for the region, will ensure Macau’s long term success.”

 

2


City of Dreams Third Quarter Results

For the third quarter of 2014, net revenue at City of Dreams was US$911.6 million compared to US$958.3 million in the third quarter of 2013. City of Dreams generated Adjusted EBITDA of US$276.0 million in the third quarter of 2014, representing a decrease of 8% compared to US$298.4 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$17.3 billion for the third quarter of 2014 versus US$22.8 billion in the third quarter of 2013. The rolling chip win rate was 2.7% in the third quarter of 2014 versus 3.0% in the third quarter of 2013. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased 10% to US$1,340.4 million compared with US$1,213.2 million in the third quarter of 2013. The mass market table games hold percentage was 38.9% in the third quarter of 2014, an increase from 34.8% in the third quarter of 2013.

Gaming machine handle for the third quarter of 2014 was US$1,551.7 million, up 25% from US$1,242.5 million generated in the third quarter of 2013.

Total non-gaming revenue at City of Dreams in the third quarter of 2014 was US$74.2 million, up from US$70.9 million in the third quarter of 2013.

Altira Macau Third Quarter Results

For the quarter ended September 30, 2014, net revenue at Altira Macau was US$160.4 million compared to US$242.4 million in the third quarter of 2013. Altira Macau generated Adjusted EBITDA of US$20.3 million in the third quarter of 2014 compared with Adjusted EBITDA of US$29.8 million in the third quarter of 2013. The year-over-year decrease in Adjusted EBITDA was primarily a result of lower rolling chip revenues and mass market table games drop, partially offset by higher mass market table games hold percentage.

Rolling chip volume totaled US$7.2 billion in the third quarter of 2014 versus US$10.8 billion in the third quarter of 2013. The rolling chip win rate was 2.7% in the third quarter of 2014 versus 2.9% in the third 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$181.4 million in the third quarter of 2014, a slight decrease from US$181.9 million generated in the comparable period in 2013. The mass market table games hold percentage was 16.2% in the third quarter of 2014 compared with 14.9% in the third quarter of 2013.

 

3


Total non-gaming revenue at Altira Macau in the third quarter of 2014 was US$9.0 million, essentially flat from US$9.2 million in the third quarter of 2013.

Mocha Clubs Third Quarter Results

Net revenue from Mocha Clubs totaled US$38.5 million in the third quarter of 2014 as compared to US$38.6 million in the third quarter of 2013. Mocha Clubs generated US$9.9 million of Adjusted EBITDA in the third quarter of 2014, a decline of 11% when compared to Adjusted EBITDA of US$11.2 million in the same period in 2013.

The number of gaming machines in operation at Mocha Clubs averaged approximately 1,300 in the third quarter of 2014, compared to approximately 2,000 in the comparable period in 2013. The reduction in gaming machines was primarily due to the closure of four clubs, partially offset by the opening of two new clubs in late 2013 and in 2014, respectively. The net win per gaming machine per day was US$306 in the quarter ended September 30, 2014, as compared with US$218 in the comparable period in 2013, an increase of 40%.

City of Dreams Manila Third Quarter Results

On a fully consolidated basis, we incurred approximately US$29.8 million of operating expenses in the third quarter of 2014 at City of Dreams Manila, which primarily relate to pre-opening costs, property charges and others as well as share based compensation cost, which, together with approximately US$5.3 million of interest expense on the PHP15 billion senior notes and US$6.4 million of capital lease charges relating to building lease payments, net of capitalized interest, resulted in a net loss of approximately US$40.5 million during the third quarter of 2014.

Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2014 were US$38.8 million, which mainly included interest income of US$6.1 million and interest expenses, net of capitalized interest, of US$34.1 million and other finance costs of US$11.3 million. We recorded US$25.7 million of capitalized interest during the third 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$5.7 million in net non-operating expenses was primarily due to higher interest income and higher capitalized interest in the current quarter, partially offset by higher interest expenses arisen from the draw down of the entire delayed draw term loan facility under the Studio City Project Facility on July 28, 2014 and the issuance of Philippine Notes on January 24, 2014.

Depreciation and amortization costs of US$89.1 million were recorded in the third 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 September 30, 2014 totaled US$4.2 billion, including US$0.1 billion of bank deposits with original maturity over three months and US$2.2 billion of restricted cash, primarily related to Studio City. Total debt at the end of the third quarter of 2014 was US$4.0 billion.

 

4


Capital expenditures for the third quarter of 2014 were US$466.2 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.

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 third quarter of 2014 and for the nine months ended September 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 third quarter 2014 financial results on November 6, 2014 at 8:30 a.m. Eastern Time (9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

 

US Toll Free    1 800 742 9301
US Toll/International    1 845 507 1610
HK Toll    852 3051 2792
HK Toll Free    800 906 648
UK Toll Free    080 823 41369
Australia Toll Free    1 800 725 000
Philippines Toll Free    1 800 161 20170
Passcode    MPEL

An audio webcast will also be available at www.melco-crown.com.

To access the replay, please use the dial-in details below:

 

US Toll Free    1 855 452 5696
US Toll/International    1 646 254 3697
HK Toll Free    800 963 117
Conference ID    23310485

 

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 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 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, is developing and will solely operate and manage 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 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, November 6, 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

September 30,

   

Nine Months Ended

September 30,

 
    2014     2013     2014     2013  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

OPERATING REVENUES

       

Casino

  $ 1,083,955      $ 1,211,933      $ 3,569,443      $ 3,585,712   

Rooms

    33,901        31,766        100,900        94,114   

Food and beverage

    20,931        20,060        61,564        57,948   

Entertainment, retail and others

    30,178        30,065        83,169        75,995   
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross revenues

    1,168,965        1,293,824        3,815,076        3,813,769   

Less: promotional allowances

    (44,895     (41,158     (134,152     (121,151
 

 

 

   

 

 

   

 

 

   

 

 

 

Net revenues

    1,124,070        1,252,666        3,680,924        3,692,618   
 

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING COSTS AND EXPENSES

       

Casino

    (740,925     (846,859     (2,478,005     (2,519,605

Rooms

    (3,148     (3,240     (9,290     (9,249

Food and beverage

    (6,603     (6,544     (17,062     (20,424

Entertainment, retail and others

    (17,372     (16,169     (46,809     (47,237

General and administrative

    (84,717     (69,648     (224,783     (187,481

Pre-opening costs

    (28,589     (4,122     (57,183     (10,768

Development costs

    (2,154     (1,019     (8,454     (21,004

Amortization of gaming subconcession

    (14,309     (14,309     (42,928     (42,928

Amortization of land use rights

    (16,117     (16,116     (48,353     (48,156

Depreciation and amortization

    (58,707     (65,245     (184,378     (195,950

Property charges and others

    (3,742     (1,853     (5,689     (5,550

Gain on disposal of assets held for sale

    —          —          22,072        —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

    (976,383     (1,045,124     (3,100,862     (3,108,352
 

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

    147,687        207,542        580,062        584,266   
 

 

 

   

 

 

   

 

 

   

 

 

 

NON-OPERATING INCOME (EXPENSES)

       

Interest income

    6,098        2,344        13,750        4,398   

Interest expenses, net of capitalized interest

    (34,146     (36,989     (94,539     (119,521

Other finance costs

    (11,330     (11,435     (35,198     (32,228

Foreign exchange gain (loss), net

    71        920        (1,680     (8,902

Other income, net

    549        743        1,765        1,103   

Loss on extinguishment of debt

    —          —          —          (50,935

Costs associated with debt modification

    —          —          —          (10,538
 

 

 

   

 

 

   

 

 

   

 

 

 

Total non-operating expenses, net

    (38,758     (44,417     (115,902     (216,623
 

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAX

    108,929        163,125        464,160        367,643   

INCOME TAX (EXPENSE) CREDIT

    (379     686        (3,372     2,042   
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

    108,550        163,811        460,788        369,685   

NET LOSS ATTRIBUTABLE TO NONCONTROLLING
INTERESTS

    23,605        15,585        54,548        44,532   
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED

  $ 132,155      $ 179,396      $ 515,336      $ 414,217   
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:

       

Basic

  $ 0.080      $ 0.109      $ 0.312      $ 0.251   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

  $ 0.079      $ 0.108      $ 0.309      $ 0.249   
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS:

       

Basic

  $ 0.240      $ 0.326      $ 0.936      $ 0.753   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

  $ 0.238      $ 0.323      $ 0.928      $ 0.747   
 

 

 

   

 

 

   

 

 

   

 

 

 

WEIGHTED AVERAGE SHARES USED IN NET INCOME
ATTRIBUTABLE TO MELCO CROWN
ENTERTAINMENT LIMITED PER SHARE
CALCULATION:

       

Basic

    1,652,484,854        1,650,444,726        1,652,090,303        1,649,220,823   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

    1,664,642,439        1,664,843,488        1,665,490,874        1,663,597,935   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

9


Melco Crown Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

     September 30,
2014
    December 31,
2013
 
     (Unaudited)     (Audited)  

ASSETS

    

CURRENT ASSETS

    

Cash and cash equivalents

   $ 1,881,538      $ 1,381,757   

Bank deposits with original maturity over three months

     110,616        626,940   

Restricted cash

     1,603,739        770,294   

Accounts receivable, net

     247,031        287,880   

Amounts due from affiliated companies

     43        23   

Deferred tax assets

     441        —     

Income tax receivable

     42        18   

Inventories

     19,948        18,169   

Prepaid expenses and other current assets

     89,371        54,898   

Assets held for sale

     —          8,468   
  

 

 

   

 

 

 

Total current assets

     3,952,769        3,148,447   
  

 

 

   

 

 

 

PROPERTY AND EQUIPMENT, NET

     4,154,428        3,308,846   

GAMING SUBCONCESSION, NET

     442,103        485,031   

INTANGIBLE ASSETS, NET

     4,220        4,220   

GOODWILL

     81,915        81,915   

LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS

     325,130        345,667   

RESTRICTED CASH

     560,577        373,371   

DEFERRED TAX ASSETS

     110        93   

DEFERRED FINANCING COSTS

     185,643        114,431   

LAND USE RIGHTS, NET

     903,306        951,618   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 10,610,201      $ 8,813,639   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

CURRENT LIABILITIES

    

Accounts payable

   $ 12,843      $ 9,825   

Accrued expenses and other current liabilities

     992,330        928,751   

Income tax payable

     7,026        6,584   

Capital lease obligations, due within one year

     28,317        27,265   

Current portion of long-term debt

     262,704        262,566   

Amounts due to affiliated companies

     1,741        2,900   

Amount due to a shareholder

     —          79   
  

 

 

   

 

 

 

Total current liabilities

     1,304,961        1,237,970   
  

 

 

   

 

 

 

LONG-TERM DEBT

     3,703,126        2,270,894   

OTHER LONG-TERM LIABILITIES

     67,260        28,492   

DEFERRED TAX LIABILITIES

     60,108        62,806   

CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR

     262,405        253,029   

LAND USE RIGHTS PAYABLE

     3,788        35,466   

SHAREHOLDERS’ EQUITY

    

Ordinary shares

     16,612        16,667   

Treasury shares

     (52,330     (5,960

Additional paid-in capital

     3,309,232        3,479,399   

Accumulated other comprehensive losses

     (18,700     (15,592

Retained earnings

     1,173,470        772,156   
  

 

 

   

 

 

 

Total Melco Crown Entertainment Limited shareholders’ equity

     4,428,284        4,246,670   

Noncontrolling interests

     780,269        678,312   
  

 

 

   

 

 

 

Total equity

     5,208,553        4,924,982   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 10,610,201      $ 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

September 30,

   

Nine Months Ended

September 30,

 
    2014     2013     2014     2013  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Net Income Attributable to Melco Crown Entertainment Limited

  $ 132,155      $ 179,396      $ 515,336      $ 414,217   

Pre-opening Costs, Net

    19,925        3,024        41,516        8,258   

Development Costs, Net

    2,154        1,019        8,454        20,731   

Property Charges and Others, Net

    2,666        1,853        4,613        5,550   

Loss on Extinguishment of Debt, Net

    —          —          —          50,935   

Costs Associated with Debt Modification, Net

    —          —          —          10,538   
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net Income Attributable to Melco Crown
Entertainment Limited

  $ 156,900      $ 185,292      $ 569,919      $ 510,229   
 

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT
LIMITED PER SHARE:

       

Basic

  $ 0.095      $ 0.112      $ 0.345      $ 0.309   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

  $ 0.094      $ 0.111      $ 0.342      $ 0.307   
 

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT
LIMITED PER ADS:

       

Basic

  $ 0.285      $ 0.337      $ 1.035      $ 0.928   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

  $ 0.283      $ 0.334      $ 1.027      $ 0.920   
 

 

 

   

 

 

   

 

 

   

 

 

 

WEIGHTED AVERAGE SHARES USED IN
ADJUSTED NET INCOME ATTRIBUTABLE
TO MELCO CROWN ENTERTAINMENT
LIMITED PER SHARE CALCULATION:

       

Basic

    1,652,484,854        1,650,444,726        1,652,090,303        1,649,220,823   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

    1,664,642,439        1,664,843,488        1,665,490,874        1,663,597,935   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

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 September 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)

   $ 14,155       $ 6,646       $ 222,298       $ (15,024   $ (29,812   $ (50,576   $ 147,687   

Pre-opening Costs

     —            4         1,584         3,609        23,392        —           28,589   

Development Costs

     —            —            —            —           —           2,154        2,154   

Depreciation and Amortization

     6,097         3,184         51,842         10,897        872        16,241        89,133   

Share-based Compensation

     11         29         324         21        2,124        2,943        5,452   

Property Charges and Others

     —            41         —            —           3,451        250        3,742   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     20,263         9,904         276,048         (497     27        (28,988     276,757   

Corporate and Others Expenses

     —            —            —            —           —           28,988        28,988   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 20,263       $ 9,904       $ 276,048       $ (497   $ 27      $ —         $ 305,745   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended September 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)

   $ 21,915       $ 7,932       $ 239,494       $ (11,881   $ (5,714   $ (44,204   $ 207,542   

Pre-opening Costs

     —            —            —            688        3,417        17        4,122   

Development Costs

     —            —            —            —           —           1,019        1,019   

Depreciation and Amortization

     7,845         2,980         57,071         10,883        299        16,592        95,670   

Share-based Compensation

     45         40         245         —           1,925        2,774        5,029   

Property Charges and Others

     —            223         1,630         —           —           —           1,853   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     29,805         11,175         298,440         (310     (73     (23,802     315,235   

Corporate and Others Expenses

     —            —            —            —           —           23,802        23,802   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 29,805       $ 11,175       $ 298,440       $ (310   $ (73   $ —         $ 339,037   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

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
September 30,
 
     2014     2013  
     (Unaudited)     (Unaudited)  

Adjusted Property EBITDA

   $ 305,745      $ 339,037   

Corporate and Others Expenses

     (28,988     (23,802
  

 

 

   

 

 

 

Adjusted EBITDA

     276,757        315,235   

Pre-opening Costs

     (28,589     (4,122

Development Costs

     (2,154     (1,019

Depreciation and Amortization

     (89,133     (95,670

Share-based Compensation

     (5,452     (5,029

Property Charges and Others

     (3,742     (1,853

Interest and Other Non-Operating Expenses, Net

     (38,758     (44,417

Income Tax (Expense) Credit

     (379     686   
  

 

 

   

 

 

 

Net Income

     108,550        163,811   

Net Loss Attributable to Noncontrolling Interests

     23,605        15,585   
  

 

 

   

 

 

 

Net Income Attributable to Melco Crown Entertainment Limited

   $ 132,155      $ 179,396   
  

 

 

   

 

 

 

 

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)

 

     Nine Months Ended September 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)

   $ 49,921       $ 18,443       $ 739,455       $ (42,435   $ (55,554   $ (129,768   $ 580,062   

Pre-opening Costs

     —            1,082         3,315         8,657        44,129        —           57,183   

Development Costs

     —            —            —            —           —           8,454        8,454   

Depreciation and Amortization

     20,596         8,963         163,218         32,665        1,971        48,246        275,659   

Share-based Compensation

     77         113         902         28        5,902        8,347        15,369   

Property Charges and Others

     —            1,231         757         —           3,451        250        5,689   

Gain on Disposal of Assets Held For Sale

     —            —            —            —           —           (22,072     (22,072
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     70,594         29,832         907,647         (1,085     (101     (86,543     920,344   

Corporate and Others Expenses

     —            —            —            —           —           86,543        86,543   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 70,594       $ 29,832       $ 907,647       $ (1,085   $ (101   $ —         $ 1,006,887   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     Nine Months Ended September 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)

   $ 87,614       $ 19,771       $ 668,595       $ (35,587   $ (28,940   $ (127,187   $ 584,266   

Pre-opening Costs

     —            —            369         2,059        8,301        39        10,768   

Development Costs

     —            —            —            —           17,216        3,788        21,004   

Depreciation and Amortization

     23,599         8,915         171,287         32,649        711        49,873        287,034   

Share-based Compensation

     112         99         643         —           1,988        7,327        10,169   

Property Charges and Others

     —            671         4,630         —           —           249        5,550   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     111,325         29,456         845,524         (879     (724     (65,911     918,791   

Corporate and Others Expenses

     —            —            —            —           —           65,911        65,911   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 111,325       $ 29,456       $ 845,524       $ (879   $ (724   $ —         $ 984,702   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

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)

 

     Nine Months Ended
September 30,
 
     2014     2013  
     (Unaudited)     (Unaudited)  

Adjusted Property EBITDA

   $ 1,006,887      $ 984,702   

Corporate and Others Expenses

     (86,543     (65,911
  

 

 

   

 

 

 

Adjusted EBITDA

     920,344        918,791   

Pre-opening Costs

     (57,183     (10,768

Development Costs

     (8,454     (21,004

Depreciation and Amortization

     (275,659     (287,034

Share-based Compensation

     (15,369     (10,169

Property Charges and Others

     (5,689     (5,550

Gain on Disposal of Assets Held For Sale

     22,072        —     

Interest and Other Non-Operating Expenses, Net

     (115,902     (216,623

Income Tax (Expense) Credit

     (3,372     2,042   
  

 

 

   

 

 

 

Net Income

     460,788        369,685   

Net Loss Attributable to Noncontrolling Interests

     54,548        44,532   
  

 

 

   

 

 

 

Net Income Attributable to Melco Crown Entertainment Limited

   $ 515,336      $ 414,217   
  

 

 

   

 

 

 

 

15


Melco Crown Entertainment Limited and Subsidiaries

Supplemental Data Schedule

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2014     2013     2014     2013  

Room Statistics:

        

Altira Macau

        

Average daily rate(3)

   $ 224      $ 223      $ 230      $ 228   

Occupancy per available room

     99     99     99     99

Revenue per available room(4)

   $ 222      $ 220      $ 228      $ 225   

City of Dreams

        

Average daily rate(3)

   $ 194      $ 185      $ 196      $ 188   

Occupancy per available room

     100     97     99     96

Revenue per available room(4)

   $ 193      $ 180      $ 193      $ 181   

Other Information:

        

Altira Macau

        

Average number of table games

     126        165        135        169   

Table games win per unit per day(5)

   $ 19,057      $ 22,413      $ 21,758      $ 23,781   

City of Dreams

        

Average number of table games

     495        456        490        454   

Average number of gaming machines

     1,417        1,441        1,325        1,501   

Table games win per unit per day(5)

   $ 21,709      $ 26,293      $ 24,805      $ 25,897   

Gaming machines win per unit per day(6)

   $ 449      $ 362      $ 477      $ 344   

 

(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

 

16