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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 October 2019
Commission File Number: 001-33178
MELCO RESORTS & ENTERTAINMENT LIMITED
36th Floor, The Centrium
60 Wyndham Street
Central
Hong Kong
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20–F or Form 40–F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3–2(b) under the Securities Exchange Act of 1934. Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3–2(b): 82– N/A
Table of Contents
Table of Contents
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MELCO RESORTS & ENTERTAINMENT LIMITED | ||
| By: | /s/ Geoffrey Davis | |
| Name: | Geoffrey Davis, CFA | |
| Title: | Chief Financial Officer | |
Date: October 30, 2019
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Table of Contents
EXHIBIT INDEX
| Exhibit No. |
Description | |
| Exhibit 99.1 | Unaudited Results for Third Quarter of 2019 and Quarterly Dividend Declaration | |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Melco Announces Unaudited Third Quarter 2019 Earnings and Declares Quarterly Dividend
Macau, Wednesday, October 30, 2019 – Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia and Europe, today reported its unaudited financial results for the third quarter of 2019.
In connection with the Company’s acquisition of a 75% interest in ICR Cyprus Holdings Limited (“ICR Cyprus”) from its parent company, Melco International Development Limited, on July 31, 2019, all periods presented in this press release have been restated to include the assets and liabilities and financial results of the ICR Cyprus group in accordance with applicable accounting standards.
Total operating revenues for the third quarter of 2019 were US$1.44 billion, representing an increase of approximately 16% from US$1.24 billion for the comparable period in 2018. The increase in total operating revenues was primarily attributable to better performance in the rolling chip and mass market table games segments.
Operating income for the third quarter of 2019 was US$175.2 million, compared with operating income of US$85.9 million in the third quarter of 2018, representing an increase of 104%.
Adjusted Property EBITDA(1) was US$418.2 million for the third quarter of 2019 compared to Adjusted Property EBITDA of US$301.4 million in the third quarter of 2018, representing an increase of 39%.
Net income attributable to Melco Resorts & Entertainment Limited for the third quarter of 2019 was US$83.2 million, or US$0.17 per ADS, compared with US$11.3 million, or US$0.02 per ADS, in the third quarter of 2018. The net income attributable to noncontrolling interests during the third quarter of 2019 was US$8.9 million and the net loss attributable to noncontrolling interests during the third quarter of 2018 was US$1.8 million, all of which related to Studio City, City of Dreams Manila and the Cyprus Operations.
Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “During the third quarter of 2019, all of Melco’s Macau integrated resorts continued to deliver strong mass table games revenue growth, which drove group-wide Property EBITDA to expand approximately 39% year-over-year to US$418 million.
MELCO RESORTS & ENTERTAINMENT LIMITED
Incorporated in the Cayman Islands with limited liability
新濠博亞娛樂有限公司
於開曼群島註冊成立的有限公司
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“During the third quarter of 2019, Melco’s mass market table games drop and gaming machine handle both reached all-time-record-highs. The third quarter of 2019 also marked the 16th consecutive quarter of positive year-over-year growth in mass market table games drop, highlighting the strength in Macau’s mass gaming market and Melco’s leadership position in the city’s mass and premium mass gaming segments.
“Melco’s portfolio of award-winning integrated resorts, commitment to excellence, and determination to push boundaries have been widely recognized, most recently by National Geographic Traveller with Morpheus being named as the winner of the Design Den category of the 2019 Big Sleep Awards.
“At Studio City, we continue to enhance our entertainment offerings with a series of property upgrades, which include the opening of the ‘Show House’ Night Club in February, the ‘Flip Out’ Trampoline Park in May, and the newly opened 50,000 square foot Legend Heroes VR Park in August.
“The Board has, after evaluating the Company’s current liquidity position and future expected capital needs, decided to declare another quarterly dividend of US$0.16512 per ADS.
“Melco remains committed to managing its balance sheet in a prudent manner. As of September 30, 2019, net debt to last twelve months EBITDA remained modest at approximately 2x, enabling us to continue with our regular dividend program, while retaining ample financial flexibility to reinvest in our existing properties and to pursue new development opportunities.
“Lastly, Japan continues to be a core focus for us. Melco has been a long-time supporter of Yokohama’s suitability to host one of Japan’s first integrated resorts. We have demonstrated our commitment and support to Yokohama through a series of local events across the city throughout 2019 and signed a lease on our Yokohama office late last year.
“In July, we announced our partnership with the Yokohama F. Marinos and the Manchester City Football Club. In September, we announced our ‘Yokohama First’ policy as we focus our Japan team on bringing to Yokohama the best IR the world has ever seen. We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and commitment to employee development puts Melco in a strong position to help Yokohama realize the vision of developing a world-leading IR with a unique, Japanese touch.”
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City of Dreams Third Quarter Results
For the quarter ended September 30, 2019, total operating revenues at City of Dreams were US$787.3 million compared to US$600.9 million in the third quarter of 2018. City of Dreams generated Adjusted EBITDA of US$233.0 million in the third quarter of 2019 compared with Adjusted EBITDA of US$147.1 million in the third quarter of 2018. The year-over-year increase in Adjusted EBITDA was primarily a result of better performances in the rolling chip and mass market table games segments.
Rolling chip volume aggregated US$17.2 billion for the third quarter of 2019 versus US$12.3 billion in the third quarter of 2018. The rolling chip win rate was 2.69% in the third quarter of 2019 versus 2.45% in the third quarter of 2018. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop increased to US$1.41 billion in the third quarter of 2019 compared with US$1.34 billion in the third quarter of 2018. The mass market table games hold percentage was 33.2% in the third quarter of 2019 compared to 27.8% in the third quarter of 2018.
Gaming machine handle for the third quarter of 2019 was US$1.21 billion, compared with US$1.12 billion in the third quarter of 2018. The gaming machine win rate was 3.1% in the third quarter of 2019 versus 4.3% in the third quarter of 2018.
Total non-gaming revenue at City of Dreams in the third quarter of 2019 was US$104.2 million, compared with US$98.9 million in the third quarter of 2018.
Altira Macau Third Quarter Results
For the quarter ended September 30, 2019, total operating revenues at Altira Macau were US$113.9 million compared to US$90.2 million in the third quarter of 2018. Altira Macau generated Adjusted EBITDA of US$14.1 million in the third quarter of 2019 compared with negative Adjusted EBITDA of US$1.0 million in the third quarter of 2018. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments.
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Rolling chip volume totaled US$4.05 billion in the third quarter of 2019 versus US$5.48 billion in the third quarter of 2018. The rolling chip win rate was 3.62% in the third quarter of 2019 versus 2.39% in the third quarter of 2018. The expected rolling chip win rate range is 2.85% - 3.15%.
In the mass market table games segment, drop aggregated US$154.2 million in the third quarter of 2019 versus US$130.8 million in the third quarter of 2018. The mass market table games hold percentage was 21.6% in the third quarter of 2019 compared with 18.2% in the third quarter of 2018.
Gaming machine handle for the third quarter of 2019 was US$79.4 million, compared with US$33.7 million in the third quarter of 2018. The increase was primarily due to an increase in the average number of gaming machines to 178 in the third quarter of 2019, compared to 128 in the third quarter of 2018. The gaming machine win rate was 4.2% in the third quarter of 2019 versus 5.6% in the third quarter of 2018.
Total non-gaming revenue at Altira Macau in the third quarter of 2019 was US$6.8 million, compared with US$6.9 million in the third quarter of 2018.
Mocha Clubs Third Quarter Results
Total operating revenues from Mocha Clubs totaled US$29.5 million in the third quarter of 2019 compared to US$28.5 million in the third quarter of 2018. Mocha Clubs generated US$6.3 million of Adjusted EBITDA in the third quarter of 2019 compared with US$4.6 million in the same period in 2018.
Gaming machine handle for the third quarter of 2019 was US$633.6 million, compared with US$616.9 million in the third quarter of 2018. The gaming machine win rate was 4.7% for both quarters ended September 30, 2019 and 2018.
Studio City Third Quarter Results
For the quarter ended September 30, 2019, total operating revenues at Studio City were US$337.7 million compared to US$345.2 million in the third quarter of 2018. Studio City generated Adjusted EBITDA of US$106.4 million in the third quarter of 2019 compared with Adjusted EBITDA of US$89.4 million in the third quarter of 2018. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in the mass market table games segment, partially offset by a softer performance in the rolling chip segment.
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Studio City’s rolling chip volume aggregated US$2.77 billion in the third quarter of 2019 versus US$5.09 billion in the third quarter of 2018. The rolling chip win rate was 2.71% in the third quarter of 2019 versus 3.12% in the third quarter of 2018. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop increased to US$880.6 million in the third quarter of 2019 compared with US$807.9 million in the third quarter of 2018. The mass market table games hold percentage was 28.4% in the third quarter of 2019 compared to 27.2% in the third quarter of 2018.
Gaming machine handle for the third quarter of 2019 was US$711.2 million, compared with US$641.6 million in the third quarter of 2018. The gaming machine win rate was 2.8% in the third quarter of 2019 versus 2.9% in the third quarter of 2018.
Total non-gaming revenue at Studio City in the third quarter of 2019 was US$49.4 million, compared with US$50.1 million in the third quarter of 2018.
City of Dreams Manila Third Quarter Results
For the quarter ended September 30, 2019, total operating revenues at City of Dreams Manila were US$130.5 million compared to US$141.7 million in the third quarter of 2018. City of Dreams Manila generated Adjusted EBITDA of US$49.9 million in the third quarter of 2019 compared to US$55.2 million in the comparable period of 2018.
With increased competition in the market, City of Dreams Manila’s rolling chip volume aggregated US$2.44 billion in the third quarter of 2019 versus US$2.98 billion in the third quarter of 2018. The rolling chip win rate was 0.89% in the third quarter of 2019 versus 2.67% in the third quarter of 2018. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop decreased to US$202.1 million for the third quarter of 2019, compared with US$204.9 million in the third quarter of 2018. The mass market table games hold percentage was 31.3% in the third quarter of 2019 compared to 32.4% in the third quarter of 2018.
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Gaming machine handle for the third quarter of 2019 was US$1.02 billion, compared with US$0.93 billion in the third quarter of 2018. The gaming machine win rate was 5.3% for both quarters ended September 30, 2019 and 2018.
Total non-gaming revenue at City of Dreams Manila in the third quarter of 2019 was US$32.3 million, compared with US$28.9 million in the third quarter of 2018.
Cyprus Operations Third Quarter Results
The Company is currently operating a temporary casino, the first casino in the Republic of Cyprus, and three satellite casinos with a fourth satellite casino scheduled to open in the coming months (“Cyprus Casinos”). Upon the opening of City of Dreams Mediterranean in 2021, the Company will also continue to operate the four satellite casinos while operation of the temporary casino will cease.
For the quarter ended September 30, 2019, total operating revenues at Cyprus Casinos were US$26.7 million compared to US$16.9 million in the third quarter of 2018. Cyprus Casinos generated Adjusted EBITDA of US$8.5 million in the third quarter of 2019 compared with Adjusted EBITDA of US$6.0 million in the third quarter of 2018.
Rolling chip volume totaled US$38.9 million for the third quarter of 2019. The rolling chip win rate was 8.66% in the third quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop aggregated US$36.2 million in the third quarter of 2019 versus US$37.9 million in the third quarter of 2018. The mass market table games hold percentage was 21.9% in the third quarter of 2019 compared to 21.2% in the third quarter of 2018.
Gaming machine handle for the third quarter of 2019 was US$311.5 million, compared with US$158.8 million in the third quarter of 2018. The gaming machine win rate was 5.0% in the third quarter of 2019 versus 5.6% in the third quarter of 2018.
Other Factors Affecting Earnings
Total net non-operating expenses for the third quarter of 2019 were US$81.3 million, which mainly included interest expenses of US$80.1 million.
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Depreciation and amortization costs of US$160.5 million were recorded in the third quarter of 2019 of which US$14.2 million was related to the amortization expense for our gaming subconcession and US$5.7 million was related to the amortization expense for the land use rights.
The Adjusted EBITDA for Studio City for the three months ended September 30, 2019 referred to in this press release is US$15.5 million more than the Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated October 30, 2019 (the “Studio City earnings release”). The Adjusted EBITDA of Studio City contained in the Studio City earnings release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain costs related to the VIP operations at Studio City Casino.
Financial Position and Capital Expenditures
Total cash and bank balances as of September 30, 2019 aggregated US$1.74 billion, including US$66.2 million of restricted cash, which was primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the third quarter of 2019 was US$4.74 billion.
Capital expenditures for the third quarter of 2019 were US$79.3 million, which primarily related to various projects at City of Dreams, City of Dreams Manila and Studio City as well as developments at City of Dreams Mediterranean.
Dividend Declaration
On October 30, 2019, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.05504 per ordinary share (equivalent to US$0.16512 per ADS) for the third quarter of 2019 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about November 22, 2019 to our shareholders whose names appear on the register of members of the Company at the close of business on November 12, 2019, being the record date for determination of entitlements to the Quarterly Dividend.
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Conference Call Information
Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2019 financial results on Wednesday, October 30, 2019 at 8:30 a.m. Eastern Time (8:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:
| US Toll Free |
1 866 519 4004 | |
| US Toll / International |
1 845 675 0437 | |
| HK Toll |
852 3018 6771 | |
| HK Toll Free |
800 906 601 | |
| Japan Toll |
81 3 4503 6012 | |
| Japan Toll Free |
012 092 5376 | |
| UK Toll Free |
080 8234 6646 | |
| Australia Toll |
61 290 833 212 | |
| Australia Toll Free |
1 800 411 623 | |
| Philippines Toll Free |
1 800 1612 0306 | |
| Passcode |
MLCO | |
An audio webcast will also be available at http://www.melco-resorts.com.
To access the replay, please use the dial-in details below:
| US Toll Free |
1 855 452 5696 | |
| US Toll / International |
1 646 254 3697 | |
| HK Toll Free |
800 963 117 | |
| Japan Toll |
81 3 4580 6717 | |
| Japan Toll Free |
012 095 9034 | |
| Philippines Toll Free |
1 800 1612 0166 | |
| Conference ID |
3988122 | |
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the “Company”) may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) growth of the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and other governmental approvals and regulations, and (vi) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.
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Non-GAAP Financial Measures
| (1) | “Adjusted 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 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 other, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses. Adjusted EBITDA and Adjusted Property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA and Adjusted Property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported Adjusted EBITDA and Adjusted Property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income as indicators of the Company’s performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income, Adjusted EBITDA and Adjusted Property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using Adjusted EBITDA and Adjusted Property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. |
Such U.S. GAAP measurements include operating income, net income, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, the Company’s calculation of Adjusted EBITDA and Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted EBITDA and Adjusted Property EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.
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| (2) | “Adjusted net income” is net income before pre-opening costs, development costs, property charges and other, loss on extinguishment of debt and costs associated with debt modification, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income attributable to Melco Resorts & Entertainment Limited and adjusted net income attributable to Melco Resorts & Entertainment Limited per share (“EPS”) are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Melco Resorts & Entertainment Limited and adjusted net income attributable to Melco Resorts & Entertainment Limited per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income attributable to Melco Resorts & Entertainment Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release. |
About Melco Resorts & Entertainment Limited
The Company, with its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ: MLCO), is a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), a casino hotel located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. Its business also includes the Mocha Clubs (www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City (www.studiocity-macau.com), a cinematically-themed integrated entertainment, retail and gaming resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. In Europe, the Company is currently developing City of Dreams Mediterranean (www.cityofdreamsmed.com.cy) in the Republic of Cyprus, which is scheduled to open in 2021 and expected to be the largest and premier integrated destination resort in Europe. The Company is currently operating a temporary casino, the first casino in the Republic of Cyprus, and three satellite casinos with a fourth satellite casino scheduled to open in the coming months (“Cyprus Casinos”). Upon the opening of City of Dreams Mediterranean, the Company will also continue to operate the four satellite casinos while operation of the temporary casino will cease. The Company also holds equity interests in Crown Resorts Limited (“Crown”), a company listed on the Australian Securities Exchange and which operates two of Australia’s leading integrated resorts, Crown Melbourne Entertainment Complex and Crown Perth Entertainment Complex. In the United Kingdom, Crown operates Crown Aspinalls, a high-end licensed casino in London. Crown’s development projects include the Crown Sydney Hotel Resort at Barangaroo on Sydney Harbour. Crown also holds equity interests in the Aspers Group and Nobu and has interests in various digital businesses. For more information about the Company, please visit www.melco-resorts.com.
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The Company is strongly supported by its single largest shareholder, Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited and is substantially owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of the Company.
For investment community, please contact:
Richard Huang
Director, Investor Relations
Tel: +852 2598 3619
Email: richardlshuang@melco-resorts.com
For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com
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Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands of U.S. dollars, except share and per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Restated)(3) | (Unaudited) | (Restated)(3) | |||||||||||||
| OPERATING REVENUES |
||||||||||||||||
| Casino |
$ | 1,242,192 | $ | 1,046,723 | $ | 3,727,770 | $ | 3,270,432 | ||||||||
| Rooms |
88,438 | 86,149 | 258,918 | 221,515 | ||||||||||||
| Food and beverage |
59,081 | 53,284 | 172,745 | 148,114 | ||||||||||||
| Entertainment, retail and other |
48,945 | 50,181 | 126,727 | 136,895 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating revenues |
1,438,656 | 1,236,337 | 4,286,160 | 3,776,956 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING COSTS AND EXPENSES |
||||||||||||||||
| Casino |
(823,115 | ) | (731,600 | ) | (2,423,186 | ) | (2,196,464 | ) | ||||||||
| Rooms |
(22,887 | ) | (22,819 | ) | (67,225 | ) | (55,787 | ) | ||||||||
| Food and beverage |
(44,966 | ) | (42,938 | ) | (133,452 | ) | (116,994 | ) | ||||||||
| Entertainment, retail and other |
(24,792 | ) | (25,470 | ) | (73,039 | ) | (70,836 | ) | ||||||||
| General and administrative |
(145,123 | ) | (148,589 | ) | (423,000 | ) | (381,898 | ) | ||||||||
| Payments to the Philippine Parties |
(8,740 | ) | (10,754 | ) | (45,995 | ) | (45,748 | ) | ||||||||
| Pre-opening costs |
(525 | ) | (4,078 | ) | (4,638 | ) | (50,392 | ) | ||||||||
| Development costs |
(30,433 | ) | (4,821 | ) | (39,873 | ) | (11,728 | ) | ||||||||
| Amortization of gaming subconcession |
(14,206 | ) | (14,309 | ) | (42,601 | ) | (42,928 | ) | ||||||||
| Amortization of land use rights |
(5,663 | ) | (5,704 | ) | (16,982 | ) | (17,112 | ) | ||||||||
| Depreciation and amortization |
(140,640 | ) | (134,559 | ) | (422,362 | ) | (355,993 | ) | ||||||||
| Property charges and other |
(2,372 | ) | (4,774 | ) | (19,578 | ) | (20,957 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating costs and expenses |
(1,263,462 | ) | (1,150,415 | ) | (3,711,931 | ) | (3,366,837 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING INCOME |
175,194 | 85,922 | 574,229 | 410,119 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NON-OPERATING INCOME (EXPENSES) |
||||||||||||||||
| Interest income |
3,597 | 1,354 | 7,169 | 4,049 | ||||||||||||
| Interest expenses, net of capitalized interest |
(80,123 | ) | (70,769 | ) | (225,668 | ) | (190,888 | ) | ||||||||
| Other finance costs |
(883 | ) | (1,299 | ) | (1,673 | ) | (4,066 | ) | ||||||||
| Foreign exchange losses, net |
(79 | ) | (5,736 | ) | (9,409 | ) | (5,674 | ) | ||||||||
| Other (expenses) income, net |
(3,815 | ) | 1,561 | (20,166 | ) | 3,012 | ||||||||||
| Loss on extinguishment of debt |
— | (213 | ) | (3,721 | ) | (213 | ) | |||||||||
| Costs associated with debt modification |
— | — | (579 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total non-operating expenses, net |
(81,303 | ) | (75,102 | ) | (254,047 | ) | (193,780 | ) | ||||||||
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|
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|
|
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|
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|||||||||
| INCOME BEFORE INCOME TAX |
93,891 | 10,820 | 320,182 | 216,339 | ||||||||||||
| INCOME TAX EXPENSE |
(1,788 | ) | (1,319 | ) | (6,777 | ) | (5,715 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME |
92,103 | 9,501 | 313,405 | 210,624 | ||||||||||||
| NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
(8,913 | ) | 1,806 | (8,371 | ) | 3,092 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED |
$ | 83,190 | $ | 11,307 | $ | 305,034 | $ | 213,716 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE: |
||||||||||||||||
| Basic |
$ | 0.058 | $ | 0.007 | $ | 0.212 | $ | 0.140 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.058 | $ | 0.007 | $ | 0.211 | $ | 0.139 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS: |
||||||||||||||||
| Basic |
$ | 0.174 | $ | 0.022 | $ | 0.637 | $ | 0.421 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.173 | $ | 0.022 | $ | 0.634 | $ | 0.417 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING USED IN NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE CALCULATION: |
||||||||||||||||
| Basic |
1,436,810,952 | 1,514,412,109 | 1,436,357,772 | 1,524,031,084 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
1,443,031,676 | 1,521,685,031 | 1,443,251,443 | 1,535,501,155 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (3) | In connection with the Company’s acquisition of a 75% interest in ICR Cyprus Holdings Limited (“ICR Cyprus”) from its parent company, Melco International Development Limited, on July 31, 2019, all periods presented in these financial statements have been restated to include the assets and liabilities and financial results of the ICR Cyprus group in accordance with applicable accounting standards. |
12
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
| September 30, | December 31, | |||||||
| 2019 | 2018 | |||||||
| (Unaudited) | (Restated)(3) | |||||||
| ASSETS |
||||||||
| CURRENT ASSETS |
||||||||
| Cash and cash equivalents |
$ | 1,669,309 | $ | 1,472,423 | ||||
| Investment securities |
74,107 | 91,598 | ||||||
| Restricted cash |
66,037 | 48,037 | ||||||
| Accounts receivable, net |
319,935 | 242,089 | ||||||
| Amounts due from affiliated companies |
409 | 87,394 | ||||||
| Inventories |
42,239 | 41,093 | ||||||
| Prepaid expenses and other current assets |
89,273 | 95,176 | ||||||
|
|
|
|
|
|||||
| Total current assets |
2,261,309 | 2,077,810 | ||||||
|
|
|
|
|
|||||
| PROPERTY AND EQUIPMENT, NET |
5,695,451 | 5,784,343 | ||||||
| GAMING SUBCONCESSION, NET |
154,701 | 197,533 | ||||||
| INTANGIBLE ASSETS, NET |
32,380 | 31,454 | ||||||
| GOODWILL |
81,278 | 81,376 | ||||||
| LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS |
180,303 | 186,708 | ||||||
| INVESTMENT SECURITIES |
551,551 | — | ||||||
| RESTRICTED CASH |
129 | 129 | ||||||
| DEFERRED TAX ASSETS |
4,580 | 2,992 | ||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS |
145,500 | — | ||||||
| LAND USE RIGHTS, NET |
741,756 | 759,651 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 9,848,938 | $ | 9,121,996 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES |
||||||||
| Accounts payable |
$ | 25,161 | $ | 25,003 | ||||
| Accrued expenses and other current liabilities |
1,485,735 | 1,671,630 | ||||||
| Income tax payable |
7,552 | 4,903 | ||||||
| Operating lease liabilities, current |
36,812 | — | ||||||
| Finance lease liabilities, current |
37,706 | 34,659 | ||||||
| Current portion of long-term debt, net |
933,756 | 395,547 | ||||||
| Amounts due to affiliated companies |
6,368 | 15,186 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
2,533,090 | 2,146,928 | ||||||
|
|
|
|
|
|||||
| LONG-TERM DEBT, NET |
3,804,089 | 3,665,370 | ||||||
| OTHER LONG-TERM LIABILITIES |
17,068 | 29,286 | ||||||
| DEFERRED TAX LIABILITIES |
57,266 | 54,746 | ||||||
| OPERATING LEASE LIABILITIES, NON-CURRENT |
125,308 | — | ||||||
| FINANCE LEASE LIABILITIES, NON-CURRENT |
255,494 | 253,374 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES |
6,792,315 | 6,149,704 | ||||||
|
|
|
|
|
|||||
| SHAREHOLDERS’ EQUITY |
||||||||
| Ordinary shares |
14,565 | 15,385 | ||||||
| Treasury shares |
(91,413 | ) | (657,389 | ) | ||||
| Additional paid-in capital |
3,169,623 | 3,715,579 | ||||||
| Accumulated other comprehensive losses |
(81,557 | ) | (59,332 | ) | ||||
| Accumulated losses |
(633,825 | ) | (716,966 | ) | ||||
|
|
|
|
|
|||||
| Total Melco Resorts & Entertainment Limited shareholders’ equity |
2,377,393 | 2,297,277 | ||||||
| Noncontrolling interests |
679,230 | 675,015 | ||||||
|
|
|
|
|
|||||
| Total equity |
3,056,623 | 2,972,292 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND EQUITY |
$ | 9,848,938 | $ | 9,121,996 | ||||
|
|
|
|
|
|||||
13
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net Income Attributable to Melco Resorts & Entertainment Limited to
Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited
(In thousands of U.S. dollars, except share and per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Restated)(3) | (Unaudited) | (Restated)(3) | |||||||||||||
| Net Income Attributable to Melco Resorts & Entertainment Limited |
$ | 83,190 | $ | 11,307 | $ | 305,034 | $ | 213,716 | ||||||||
| Pre-opening Costs |
525 | 4,078 | 4,638 | 50,392 | ||||||||||||
| Development Costs |
30,433 | 4,821 | 39,873 | 11,728 | ||||||||||||
| Property Charges and Other |
2,372 | 4,774 | 19,578 | 20,957 | ||||||||||||
| Loss on Extinguishment of Debt |
— | 213 | 3,721 | 213 | ||||||||||||
| Costs Associated with Debt Modification |
— | — | 579 | — | ||||||||||||
| Income Tax Impact on Adjustments |
(1,934 | ) | — | (4,216 | ) | (179 | ) | |||||||||
| Noncontrolling Interests Impact on Adjustments |
(99 | ) | (956 | ) | (7,183 | ) | (6,196 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited |
$ | 114,487 | $ | 24,237 | $ | 362,024 | $ | 290,631 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE: |
||||||||||||||||
| Basic |
$ | 0.080 | $ | 0.016 | $ | 0.252 | $ | 0.191 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.079 | $ | 0.016 | $ | 0.251 | $ | 0.189 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS: |
||||||||||||||||
| Basic |
$ | 0.239 | $ | 0.048 | $ | 0.756 | $ | 0.572 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.238 | $ | 0.048 | $ | 0.752 | $ | 0.567 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING USED IN ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE CALCULATION: |
||||||||||||||||
| Basic |
1,436,810,952 | 1,514,412,109 | 1,436,357,772 | 1,524,031,084 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
1,443,031,676 | 1,521,685,031 | 1,443,251,443 | 1,535,501,155 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
14
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
| Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Cyprus Operations |
Corporate and Other |
Total | |||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
| Operating Income (Loss) |
$ | 7,797 | $ | 4,584 | $ | 167,828 | $ | 60,424 | $ | 19,788 | $ | 5,452 | $ | (90,679 | ) | $ | 175,194 | |||||||||||||||
| Payments to the Philippine Parties |
— | — | — | — | 8,740 | — | — | 8,740 | ||||||||||||||||||||||||
| Land Rent to Belle Corporation |
— | — | — | — | 765 | — | — | 765 | ||||||||||||||||||||||||
| Pre-opening Costs |
— | — | 24 | 6 | — | 495 | — | 525 | ||||||||||||||||||||||||
| Development Costs |
— | — | — | — | — | — | 30,433 | 30,433 | ||||||||||||||||||||||||
| Depreciation and Amortization |
6,173 | 1,618 | 63,135 | 45,592 | 19,381 | 2,541 | 22,069 | 160,509 | ||||||||||||||||||||||||
| Share-based Compensation |
54 | 39 | 1,124 | 421 | 371 | 52 | 5,774 | 7,835 | ||||||||||||||||||||||||
| Property Charges and Other |
31 | 33 | 889 | (7 | ) | 826 | — | 600 | 2,372 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted EBITDA |
14,055 | 6,274 | 233,000 | 106,436 | 49,871 | 8,540 | (31,803 | ) | 386,373 | |||||||||||||||||||||||
| Corporate and Other Expenses |
— | — | — | — | — | — | 31,803 | 31,803 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted Property EBITDA |
$ | 14,055 | $ | 6,274 | $ | 233,000 | $ | 106,436 | $ | 49,871 | $ | 8,540 | $ | — | $ | 418,176 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Cyprus Operations |
Corporate and Other |
Total | |||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Restated)(3) | (Restated)(3) | (Restated)(3) | |||||||||||||||||||||||||
| Operating Income (Loss) |
$ | (5,993 | ) | $ | 2,445 | $ | 76,044 | $ | 43,153 | $ | 24,760 | $ | 2,254 | $ | (56,741 | ) | $ | 85,922 | ||||||||||||||
| Payments to the Philippine Parties |
— | — | — | — | 10,754 | — | — | 10,754 | ||||||||||||||||||||||||
| Land Rent to Belle Corporation |
— | — | — | — | 739 | — | — | 739 | ||||||||||||||||||||||||
| Pre-opening Costs |
— | — | 1,597 | 357 | 20 | 2,104 | — | 4,078 | ||||||||||||||||||||||||
| Development Costs |
— | — | — | — | — | — | 4,821 | 4,821 | ||||||||||||||||||||||||
| Depreciation and Amortization |
4,951 | 2,124 | 63,624 | 44,892 | 18,618 | 1,633 | 18,730 | 154,572 | ||||||||||||||||||||||||
| Share-based Compensation |
107 | 36 | 903 | 388 | 342 | 26 | 5,237 | 7,039 | ||||||||||||||||||||||||
| Property Charges and Other |
(21 | ) | — | 4,975 | 563 | — | — | (743 | ) | 4,774 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted EBITDA |
(956 | ) | 4,605 | 147,143 | 89,353 | 55,233 | 6,017 | (28,696 | ) | 272,699 | ||||||||||||||||||||||
| Corporate and Other Expenses |
— | — | — | — | — | — | 28,696 | 28,696 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted Property EBITDA |
$ | (956 | ) | $ | 4,605 | $ | 147,143 | $ | 89,353 | $ | 55,233 | $ | 6,017 | $ | — | $ | 301,395 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
15
Melco Resorts & 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, 2019 | ||||||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Cyprus Operations |
Corporate and Other |
Total | |||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
| Operating Income (Loss) |
$ | 19,985 | $ | 12,150 | $ | 509,575 | $ | 148,088 | $ | 82,244 | $ | 11,145 | $ | (208,958 | ) | $ | 574,229 | |||||||||||||||
| Payments to the Philippine Parties |
— | — | — | — | 45,995 | — | — | 45,995 | ||||||||||||||||||||||||
| Land Rent to Belle Corporation |
— | — | — | — | 2,283 | — | — | 2,283 | ||||||||||||||||||||||||
| Pre-opening Costs |
25 | — | 29 | 2,555 | (7 | ) | 2,036 | — | 4,638 | |||||||||||||||||||||||
| Development Costs |
— | — | — | — | — | — | 39,873 | 39,873 | ||||||||||||||||||||||||
| Depreciation and Amortization |
17,480 | 5,609 | 195,130 | 137,361 | 57,531 | 7,806 | 61,028 | 481,945 | ||||||||||||||||||||||||
| Share-based Compensation |
258 | 120 | 2,835 | 1,113 | 1,001 | 128 | 17,059 | 22,514 | ||||||||||||||||||||||||
| Property Charges and Other |
73 | (328 | ) | 4,766 | 8,535 | 4,182 | — | 2,350 | 19,578 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted EBITDA |
37,821 | 17,551 | 712,335 | 297,652 | 193,229 | 21,115 | (88,648 | ) | 1,191,055 | |||||||||||||||||||||||
| Corporate and Other Expenses |
— | — | — | — | — | — | 88,648 | 88,648 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted Property EBITDA |
$ | 37,821 | $ | 17,551 | $ | 712,335 | $ | 297,652 | $ | 193,229 | $ | 21,115 | $ | — | $ | 1,279,703 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Cyprus Operations |
Corporate and Other |
Total | |||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Restated)(3) | (Unaudited) | (Unaudited) | (Restated)(3) | (Restated)(3) | (Restated)(3) | |||||||||||||||||||||||||
| Operating Income (Loss) |
$ | 20,198 | $ | 10,847 | $ | 334,414 | $ | 132,510 | $ | 97,084 | $ | (12,791 | ) | $ | (172,143 | ) | $ | 410,119 | ||||||||||||||
| Payments to the Philippine Parties |
— | — | — | — | 45,748 | — | — | 45,748 | ||||||||||||||||||||||||
| Land Rent to Belle Corporation |
— | — | — | — | 2,254 | — | — | 2,254 | ||||||||||||||||||||||||
| Pre-opening Costs |
— | — | 32,657 | 410 | 20 | 17,305 | — | 50,392 | ||||||||||||||||||||||||
| Development Costs |
— | — | — | — | — | — | 11,728 | 11,728 | ||||||||||||||||||||||||
| Depreciation and Amortization |
14,470 | 6,232 | 146,447 | 134,437 | 56,594 | 1,633 | 56,220 | 416,033 | ||||||||||||||||||||||||
| Share-based Compensation |
278 | 111 | 2,599 | 1,154 | (399 | ) | 53 | 14,422 | 18,218 | |||||||||||||||||||||||
| Property Charges and Other |
440 | (432 | ) | 10,517 | 4,094 | 28 | — | 6,310 | 20,957 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted EBITDA |
35,386 | 16,758 | 526,634 | 272,605 | 201,329 | 6,200 | (83,463 | ) | 975,449 | |||||||||||||||||||||||
| Corporate and Other Expenses |
— | — | — | — | — | — | 83,463 | 83,463 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted Property EBITDA |
$ | 35,386 | $ | 16,758 | $ | 526,634 | $ | 272,605 | $ | 201,329 | $ | 6,200 | $ | — | $ | 1,058,912 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
16
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net Income Attributable to Melco Resorts & Entertainment Limited to
Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Restated)(3) | (Unaudited) | (Restated)(3) | |||||||||||||
| Net Income Attributable to Melco Resorts & Entertainment Limited |
$ | 83,190 | $ | 11,307 | $ | 305,034 | $ | 213,716 | ||||||||
| Net Income (Loss) Attributable to Noncontrolling Interests |
8,913 | (1,806 | ) | 8,371 | (3,092 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Income |
92,103 | 9,501 | 313,405 | 210,624 | ||||||||||||
| Income Tax Expense |
1,788 | 1,319 | 6,777 | 5,715 | ||||||||||||
| Interest and Other Non-Operating Expenses, Net |
81,303 | 75,102 | 254,047 | 193,780 | ||||||||||||
| Property Charges and Other |
2,372 | 4,774 | 19,578 | 20,957 | ||||||||||||
| Share-based Compensation |
7,835 | 7,039 | 22,514 | 18,218 | ||||||||||||
| Depreciation and Amortization |
160,509 | 154,572 | 481,945 | 416,033 | ||||||||||||
| Development Costs |
30,433 | 4,821 | 39,873 | 11,728 | ||||||||||||
| Pre-opening Costs |
525 | 4,078 | 4,638 | 50,392 | ||||||||||||
| Land Rent to Belle Corporation |
765 | 739 | 2,283 | 2,254 | ||||||||||||
| Payments to the Philippine Parties |
8,740 | 10,754 | 45,995 | 45,748 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
386,373 | 272,699 | 1,191,055 | 975,449 | ||||||||||||
| Corporate and Other Expenses |
31,803 | 28,696 | 88,648 | 83,463 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted Property EBITDA |
$ | 418,176 | $ | 301,395 | $ | 1,279,703 | $ | 1,058,912 | ||||||||
|
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17
Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Room Statistics: |
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| Altira Macau |
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| Average daily rate (4) |
$ | 175 | $ | 187 | $ | 177 | $ | 190 | ||||||||
| Occupancy per available room |
99 | % | 99 | % | 99 | % | 99 | % | ||||||||
| Revenue per available room (5) |
$ | 173 | $ | 186 | $ | 175 | $ | 188 | ||||||||
| City of Dreams |
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| Average daily rate (4) |
$ | 208 | $ | 215 | $ | 207 | $ | 208 | ||||||||
| Occupancy per available room |
98 | % | 96 | % | 98 | % | 97 | % | ||||||||
| Revenue per available room (5) |
$ | 204 | $ | 208 | $ | 202 | $ | 202 | ||||||||
| Studio City |
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| Average daily rate (4) |
$ | 135 | $ | 141 | $ | 134 | $ | 138 | ||||||||
| Occupancy per available room |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
| Revenue per available room (5) |
$ | 135 | $ | 141 | $ | 134 | $ | 138 | ||||||||
| City of Dreams Manila |
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| Average daily rate (4) |
$ | 179 | $ | 158 | $ | 175 | $ | 158 | ||||||||
| Occupancy per available room |
98 | % | 98 | % | 98 | % | 98 | % | ||||||||
| Revenue per available room (5) |
$ | 176 | $ | 155 | $ | 172 | $ | 155 | ||||||||
| Other Information: |
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| Altira Macau |
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| Average number of table games |
102 | 106 | 104 | 104 | ||||||||||||
| Average number of gaming machines |
178 | 128 | 173 | 127 | ||||||||||||
| Table games win per unit per day (6) |
$ | 19,152 | $ | 15,873 | $ | 19,858 | $ | 19,440 | ||||||||
| Gaming machines win per unit per day (7) |
$ | 202 | $ | 160 | $ | 214 | $ | 150 | ||||||||
| City of Dreams |
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| Average number of table games |
517 | 467 | 517 | 476 | ||||||||||||
| Average number of gaming machines |
863 | 765 | 836 | 707 | ||||||||||||
| Table games win per unit per day (6) |
$ | 19,520 | $ | 15,678 | $ | 18,387 | $ | 15,605 | ||||||||
| Gaming machines win per unit per day (7) |
$ | 478 | $ | 691 | $ | 511 | $ | 807 | ||||||||
| Studio City |
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| Average number of table games |
292 | 288 | 293 | 292 | ||||||||||||
| Average number of gaming machines |
896 | 938 | 952 | 947 | ||||||||||||
| Table games win per unit per day (6) |
$ | 12,126 | $ | 14,287 | $ | 12,481 | $ | 14,361 | ||||||||
| Gaming machines win per unit per day (7) |
$ | 243 | $ | 219 | $ | 226 | $ | 235 | ||||||||
| City of Dreams Manila |
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| Average number of table games |
311 | 307 | 306 | 300 | ||||||||||||
| Average number of gaming machines |
2,267 | 1,920 | 2,260 | 1,885 | ||||||||||||
| Table games win per unit per day (6) |
$ | 2,975 | $ | 5,165 | $ | 4,451 | $ | 5,579 | ||||||||
| Gaming machines win per unit per day (7) |
$ | 259 | $ | 280 | $ | 256 | $ | 284 | ||||||||
| Cyprus Operations |
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| Average number of table games |
38 | 33 | 38 | 33 | ||||||||||||
| Average number of gaming machines |
409 | 254 | 372 | 254 | ||||||||||||
| Table games win per unit per day (6) |
$ | 3,256 | $ | 2,649 | $ | 2,562 | $ | 2,626 | ||||||||
| Gaming machines win per unit per day (7) |
$ | 416 | $ | 380 | $ | 432 | $ | 379 | ||||||||
| (4) | Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms |
| (5) | Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available |
| (6) | Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis |
| (7) | Gaming machines win per unit per day is shown before non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis |
18