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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 March 2018

Commission File Number: 001-33178

 

 

MELCO RESORTS & ENTERTAINMENT LIMITED

 

 

36^th Floor, The Centrium

60 Wyndham Street

Central

Hong Kong

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20–F or Form 40–F. Form 20-F  ☒ Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3–2(b) under the Securities Exchange Act of 1934. Yes  ☐ No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3–2(b): 82– N/A

 

 

 

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MELCO RESORTS & ENTERTAINMENT LIMITED

Form 6–K

TABLE OF CONTENTS

 

Signature			4
Exhibit 99.1

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Explanatory Note

The supplemental information regarding Melco Resorts & Entertainment Limited furnished under this Form 6-K is included in an announcement, dated March 29, 2018, provided by Melco International Development Limited, a company whose shares are listed on The Stock Exchange of Hong Kong Limited, to its shareholders.

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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.

 

Date: March 29, 2018

 

4

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EXHIBIT INDEX

 

Exhibit No.		Description
Exhibit 99.1		Supplemental Information Regarding Melco Resorts & Entertainment Limited

Exhibit 99.1

Supplemental Information Regarding Melco Resorts & Entertainment Limited

City of Dreams

City of Dreams operated approximately 475 gaming tables and 670 gaming machines as of December 31, 2017.

City of Dreams generated Adjusted property EBITDA¹ of US$804.9 million in 2017, representing an increase of 8% compared to US$742.3 million in 2016. The year-over-year improvement in Adjusted property EBITDA was primarily a result of higher rolling chip revenues and recovery of previously provided doubtful debt, partially offset by lower mass market table games revenues.

  

 

1

“Adjusted property EBITDA” is earnings 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, net gain on disposal of property and equipment to Belle Corporation, Corporate and Others expenses and other non-operating income and expenses. Adjusted property EBITDA is presented exclusively as supplemental disclosures because management believes it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted property EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. Melco Resorts & Entertainment Limited (the “Company”) also presents adjusted property EBITDA because it is used by some investors as a way 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 property EBITDA as a supplement to financial measures in accordance with U.S. GAAP. However, adjusted property EBITDA should not be considered as an alternative to operating income as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income, adjusted property EBITDA does not include depreciation and amortization or interest expense and, therefore, does not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using adjusted property EBITDA as only a comparative tool, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. The Company’s calculation of adjusted property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

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Altira Macau

As of December 31, 2017, Altira Macau operated approximately 100 gaming tables and 119 gaming machines operated as a Mocha Club at Altira Macau.

Altira Macau generated Adjusted property EBITDA of US$20.7 million in 2017 compared with Adjusted property EBITDA of US$5.1 million in 2016. The year-over-year improvement in Adjusted property EBITDA was primarily a result of higher rolling chip revenues and recovery of previously provided doubtful debt, partially offset by lower mass market table games revenues.

Mocha Clubs

As of December 31, 2017, Mocha Clubs operated eight clubs with a total of 1,319 gaming machines (including 119 gaming machines at Altira Macau).

Studio City

As of December 31, 2017, Studio City operated approximately 290 gaming tables and 970 gaming machines.

Studio City generated Adjusted property EBITDA of US$335.6 million in 2017 compared with Adjusted property EBITDA of US$156.0 million in 2016. The year-on-year improvement in Adjusted property EBITDA was primarily a result of the commencement of rolling chip operations in November 2016 and better performance in the mass market table games segment.

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City of Dreams Manila

As of December 31, 2017, City of Dreams Manila operated approximately 293 gaming tables, 1,635 slot machines and 172 electronic gaming tables.

City of Dreams Manila generated Adjusted property EBITDA of US$235.0 million in 2017 compared with US$160.3 million in 2016. The year-over-year improvement in Adjusted property EBITDA was primarily a result of increased casino revenues.

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Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Income (Loss) to

Adjusted Property EBITDA

(In thousands of U.S. dollars)

 

		Year Ended December 31, 2017
		Altira Macau				City of Dreams				Studio City				City of Dreams Manila
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Operating (Loss) Income		$	(149	)		$	625,766			$	126,247			$	92,636
Payments to the Philippine Parties			—				—				—				51,661
Land Rent to Belle Corporation			—				—				—				3,143
Pre-opening Costs			—				1,933				116				225
Depreciation and Amortization			20,973				171,216				184,456				84,200
Share-based Compensation			204				2,934				1,294				516
Property Charges and Other			(357	)			3,023				23,455				2,638
Adjusted Property EBITDA		$	20,671			$	804,872			$	335,568			$	235,019
		Year Ended December 31, 2016
		Altira Macau				City of Dreams				Studio City				City of Dreams Manila
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Operating (Loss) Income		$	(18,091	)		$	559,470			$	(29,099	)		$	38,705
Payments to the Philippine Parties			—				—				—				34,403
Land Rent to Belle Corporation			—				—				—				3,327
Net Gain on Disposal of Property and Equipment to Belle Corporation			—				—				—				(8,134	)
Pre-opening Costs			—				1,355				2,528				—
Depreciation and Amortization			22,950				175,676				179,905				91,389
Share-based Compensation			60				2,354				826				2,087
Property Charges and Other			197				3,436				1,825				(1,441	)
Adjusted Property EBITDA		$	5,116			$	742,291			$	155,985			$	160,336