MPEL [Melco Resorts & Entertainment] 6-K: Melco Announces Unaudited Third Quarter 2018 Earnings and

Ticker: MPEL, Company: Melco Resorts & Entertainment LTD, Type: 6-K, Date: 2018-11-08
Original SEC Filing: Click here


Webplus: MPEL/20181108/6-K_1/2_EX-99.1/000.htm SEC Original: d617535dex991.htm
Melco Announces Unaudited Third Quarter 2018 Earnings and Declares Quarterly Dividend M a c a u , Thursday, November 8, 2018 Net revenue for the third quarter of 2018 was US$1,220.3 million, representing a decrease of approximately 11% from US$1,376.8 million for the comparable period in 2017. The decrease in net revenue was primarily attributable to higher commissions reported as



s:207207:" EX-99.1 2 d617535dex991.htm UNAUDITED RESULTS FOR THIRD QUARTER OF 2018 AND QUARTERLY DIVIDEND DECLARATION

Exhibit 99.1

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FOR IMMEDIATE RELEASE

Melco Announces Unaudited Third Quarter 2018 Earnings and Declares Quarterly Dividend

Macau, Thursday, November 8, 2018– 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, today reported its unaudited financial results for the third quarter of 2018.

Net revenue for the third quarter of 2018 was US$1,220.3 million, representing a decrease of approximately 11% from US$1,376.8 million for the comparable period in 2017. The decrease in net revenue was primarily attributable to higher commissions reported as a reduction in revenue upon the Company’s adoption of a new revenue recognition standard issued by the Financial Accounting Standards Board (the “New Revenue Standard”) and lower group-wide rolling chip gross gaming revenues, partially offset by higher group-wide mass market table games and gaming machines gross gaming revenues. The Company adopted the New Revenue Standard using the modified retrospective method from January 1, 2018. Results for the periods beginning on or after January 1, 2018 are presented under the New Revenue Standard, while prior year amounts are not adjusted and continue to be reported in accordance with the previous basis. Under the previous basis, before the adoption of the New Revenue Standard, net revenue for the third quarter of 2018 would have been US$1,311.6 million, which would have represented a decrease of approximately 5% from the US$1,376.8 million for the comparable period in 2017.

Operating income for the third quarter of 2018 was US$83.6 million, compared with operating income of US$192.7 million in the third quarter of 2017, representing a decrease of 57%.

Adjusted property EBITDA(1) was US$295.4 million for the third quarter of 2018, as compared to Adjusted property EBITDA of US$400.2 million in the third quarter of 2017, representing a decrease of 26%. The decline in Adjusted property EBITDA was mainly attributable to poorer performance in the group-wide rolling chip segment and a one-time special gift granted tonon-management employees.

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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Net income attributable to Melco Resorts & Entertainment Limited for the third quarter of 2018 was US$9.6 million, or US$0.02 per ADS, compared with US$115.9 million, or US$0.24 per ADS, in the third quarter of 2017. The net loss attributable to noncontrolling interests during the third quarter of 2018 and 2017 were US$2.4 million and US$3.3 million, respectively, which were related to Studio City and City of Dreams Manila.

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Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “I am incredibly thrilled that just two months after the grand opening, Morpheus at City of Dreams made the list of TIME magazine’s “World’s Greatest Places 2018,” being the only Macau entry on the list.

“Designed by the late PritzkerPrize-winning architect Dame Zaha Hadid, Morpheus has been described as “The Icon of the New Macau” and is the first hotel brand to be wholly developed and created by Melco. It sets a new benchmark for ultra-luxury hospitality in Macau, and features a spectacular collection of “world’s first” including the world’s first free-form exoskeleton high-rise architectural structure, the first spa concept in the world to feature a Snow Garden with real snow and the world’s first hotel to feature an entire floor dedicated to legendary chef Alain Ducasse, with two Ducasse restaurants and a bar.

“The opening of Morpheus only marks the beginning of the relaunch of City of Dreams. On top of that, we are upgrading our VIP gaming spaces that are expected to open over the next six months. We will also commence the rolling refurbishment of the Nüwa after Chinese New Year 2019 and the redevelopment of the Count:Down in the second half of 2019 into a new, luxurious, ultra-cool hotel – Libertine.

“At Studio City, we are embarking on a series of property upgrades to refine the entertainment offerings, which include the world’s most electrifying stunt show – Elekron, Asia’s largest Virtual Reality zone and a fantastic new street of food and beverage.

“In the Philippines, City of Dreams Manila delivered another solid quarter underpinned by robust mass gaming revenue growth.

“The Board has, after evaluating the Company’s current liquidity position and future expected capital needs, decided to declare another quarterly dividend of US$0.14505 per ADS. In addition, the Board has also approved a new US$500 million share repurchase program, which is effective immediately. Year to date, the Company has also repurchased approximately 23 million ADSs, worth approximately US$490 million, under the US$500 million share repurchase program the Company announced in March 2018.

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“Lastly, Japan continues to be a core focus for us. We expect development of the next generation of integrated resorts to soon commence in this incredibly exciting, yet currently underpenetrated, tourism destination. With our focus on the Asian premium segment, high quality assets, dedication to world-class entertainment offerings, market-leading social safeguards and compliance culture, and our commitment to being an ideal partner to local governments and communities alike, we believe Melco is in a strong position to help Japan realize the vision for integrated resort development with a unique Japanese touch.”

City of Dreams Third Quarter Results

For the quarter ended September 30, 2018, net revenue at City of Dreams was US$600.9 million compared to US$715.9 million in the third quarter of 2017. City of Dreams generated Adjusted EBITDA of US$147.1 million in the third quarter of 2018 compared with Adjusted EBITDA of US$246.4 million in the third quarter of 2017. The decline in Adjusted EBITDA was primarily a result of poorer performance in the rolling chip segment and a one-time special gift granted tonon-management employees.

Rolling chip volume totaled US$12.3 billion for the third quarter of 2018 versus US$11.2 billion in the third quarter of 2017. The rolling chip win rate was 2.4% in the third quarter of 2018 versus 3.5% in the third quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$1,337.6 million in the third quarter of 2018 compared with US$1,145.0 million in the third quarter of 2017. The mass market table games hold percentage was 27.8% in the third quarter of 2018 compared to 32.3% in the third quarter of 2017.

Gaming machine handle for the third quarter of 2018 was US$1,122.2 million, compared with US$981.7 million in the third quarter of 2017. The gaming machine win rate was 4.3% in the third quarter of 2018 versus 3.2% in the third quarter of 2017.

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Totalnon-gaming revenue at City of Dreams in the third quarter of 2018 was US$98.9 million, compared with US$81.4 million in the third quarter of 2017.

Altira Macau Third Quarter Results

For the quarter ended September 30, 2018, net revenue at Altira Macau was US$90.2 million compared to US$89.3 million in the third quarter of 2017. Altira Macau generated negative Adjusted EBITDA of US$1.0 million in the third quarter of 2018 compared with negative Adjusted EBITDA of US$5.6 million in the third quarter of 2017.

Rolling chip volume totaled US$5.5 billion in the third quarter of 2018 versus US$4.2 billion in the third quarter of 2017. The rolling chip win rate was 2.4% in the third quarter of 2018 versus 2.6% in the third quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$130.8 million in the third quarter of 2018, representing an increase from US$112.4 million generated in the comparable period in 2017. The mass market table games hold percentage was 18.2% in the third quarter of 2018 compared with 15.7% in the third quarter of 2017.

Gaming machine handle for the third quarter of 2018 was US$33.7 million, compared with US$11.3 million in the third quarter of 2017. The increase was primarily due to an increase in average number of gaming machines to 128 in the third quarter of 2018, compared to 61 in the third quarter of 2017. The gaming machine win rate was 5.6% in the third quarter of 2018 versus 6.1% in the third quarter of 2017.

Total non-gaming revenue at Altira Macau in the third quarter of 2018 was US$6.9 million, compared with US$6.8 million in the third quarter of 2017.

Mocha Clubs Third Quarter Results

Net revenue from Mocha Clubs totaled US$28.5 million in the third quarter of 2018 as compared to US$30.2 million in the third quarter of 2017. Mocha Clubs generated US$4.6 million of Adjusted EBITDA in the third quarter of 2018 compared with US$6.5 million in the same period in 2017.

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Gaming machine handle for the third quarter of 2018 was US$616.9 million, compared with US$628.1 million in the third quarter of 2017. The gaming machine win rate was 4.7% for both quarters ended September 30, 2018 and 2017.

Studio City Third Quarter Results

For the quarter ended September 30, 2018, net revenue at Studio City was US$345.2 million compared to US$384.5 million in the third quarter of 2017. Studio City generated Adjusted EBITDA of US$89.4 million in the third quarter of 2018 compared with Adjusted EBITDA of US$95.6 million in the third quarter of 2017. The decline in Adjusted EBITDA was primarily a result of a one-time special gift granted tonon-management employees.

Rolling chip volume totaled US$5.1 billion for both quarters ended September 30, 2018 and 2017. The rolling chip win rate was 3.1% in the third quarter of 2018 versus 4.0% in the third quarter of 2017. The expected rolling chip win rate range is2.7%-3.0%.

Mass market table games drop increased to US$807.9 million in the third quarter of 2018 compared with US$747.1 million in the third quarter of 2017. The mass market table games hold percentage was 27.2% in the third quarter of 2018 compared to 25.0% in the third quarter of 2017.

Gaming machine handle for the third quarter of 2018 was US$641.6 million, compared with US$581.2 million in the third quarter of 2017. The gaming machine win rate was 2.9% in the third quarter of 2018 versus 3.3% in the third quarter of 2017.

Total non-gaming revenue at Studio City in the third quarter of 2018 was US$50.1 million, compared with US$51.9 million in the third quarter of 2017.

City of Dreams Manila Third Quarter Results

For the quarter ended September 30, 2018, net revenue at City of Dreams Manila was US$141.7 million compared to US$148.2 million in the third quarter of 2017. City of Dreams Manila generated Adjusted EBITDA of US$55.2 million in the third quarter of 2018 compared to US$57.3 million in the comparable period of 2017.

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Rolling chip volume totaled US$3.0 billion for both quarters ended September 30, 2018 and 2017. The rolling chip win rate was 2.7% in the third quarter of 2018 versus 2.5% in the third quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$204.9 million for the third quarter of 2018, compared with US$174.1 million in the third quarter of 2017. The mass market table games hold percentage was 32.4% in the third quarter of 2018 compared to 29.9% in the third quarter of 2017.

Gaming machine handle for the third quarter of 2018 was US$935.0 million, compared with US$757.3 million in the third quarter of 2017. The gaming machine win rate was 5.3% in the third quarter of 2018 versus 5.6% in the third quarter of 2017.

Totalnon-gaming revenue at City of Dreams Manila in the third quarter of 2018 was US$28.9 million, compared with US$29.2 million in the third quarter of 2017.

Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2018 were US$75.1 million, which mainly included interest expenses of US$70.8 million.

Depreciation and amortization costs of US$152.9 million were recorded in the third quarter of 2018 of which US$14.3 million was related to the amortization of our gaming subconcession and US$5.7 million was related to the amortization of land use rights.

Financial Position and Capital Expenditures

Total cash and bank balances as of September 30, 2018 aggregated US$1.3 billion, including US$20.0 million on a bank deposit with an original maturity over three months and US$87.2 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the third quarter of 2018, was US$3.8 billion.

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Capital expenditures for the third quarter of 2018 were US$140.0 million, which predominantly related to Morpheus and other various projects at City of Dreams as well as Corporate and Other.

Dividend Declaration

On November 8, 2018, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.04835 per ordinary share (equivalent to US$0.14505 per ADS) for the third quarter of 2018 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about November 29, 2018 to our shareholders whose names appear on the register of members of the Company at the close of business on November 19, 2018, being the record date for determination of entitlements to the Quarterly Dividend.

Share Repurchase Program

Our Board has also approved a new US$500 million share repurchase program. The program is effective immediately and is in addition to the program that was announced in March 2018, which has nearly been exhausted. The new program permits the Company to purchase up to US$500 million of its ordinary shares and/or American depositary shares over a three-year period commencing from November 8, 2018. Purchases under this authorization may be made from time to time on the open market at prevailing market prices, including pursuant to a trading plan in accordance with Rule 10b-18 and/or Rule 10b5-1 of the Securities Exchange Act, and/or in privately-negotiated transactions. The timing of the purchases and the amount of shares and/or ADSs purchased will be determined by the Company’s management based on its evaluation of market conditions, trading prices, applicable securities laws and other factors. The share repurchase program may be suspended, modified or terminated at any time, and the Company has no obligation to repurchase any amounts under the program.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2018 financial results on Thursday, November 8, 2018 at 8:30 a.m. Eastern Time (9:30 p.m. Hong Kong Time). To join the conference call, please use thedial-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.

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To access the replay, please use thedial-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 3134616

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 and the Philippines, (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. 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.cityofdreams.com.ph), a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. For more information about the Company, please visit www.melco-resorts.com.

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
September 30,
Nine Months Ended
September 30,
2018 2017 2018 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

OPERATING REVENUES

Casino

$ 1,029,861 $ 1,285,107 $ 3,253,139 $ 3,688,084

Rooms

86,149 68,310 221,515 200,336

Food and beverage

53,282 45,196 148,112 133,706

Entertainment, retail and other

50,985 57,357 139,289 159,839

Gross revenues

1,220,277 1,455,970 3,762,055 4,181,965

Less: promotional allowances

(79,143 ) (229,698 )

Net revenues

1,220,277 1,376,827 3,762,055 3,952,267

OPERATING COSTS AND EXPENSES

Casino

(724,391 ) (861,518 ) (2,189,105 ) (2,508,949 )

Rooms

(22,819 ) (8,037 ) (55,787 ) (24,252 )

Food and beverage

(42,134 ) (13,629 ) (116,171 ) (41,871 )

Entertainment, retail and other

(25,470 ) (22,604 ) (70,836 ) (66,656 )

General and administrative

(146,559 ) (110,924 ) (381,376 ) (344,505 )

Payments to the Philippine Parties

(10,754 ) (13,288 ) (45,748 ) (42,549 )

Pre-opening costs

(1,974 ) (177 ) (33,087 ) (1,177 )

Development costs

(4,821 ) (14,054 ) (11,728 ) (18,139 )

Amortization of gaming subconcession

(14,309 ) (14,310 ) (42,928 ) (42,928 )

Amortization of land use rights

(5,704 ) (5,704 ) (17,112 ) (17,112 )

Depreciation and amortization

(132,926 ) (113,991 ) (354,360 ) (347,070 )

Property charges and other

(4,774 ) (5,874 ) (20,957 ) (18,401 )

Total operating costs and expenses

(1,136,635 ) (1,184,110 ) (3,339,195 ) (3,473,609 )

OPERATING INCOME

83,642 192,717 422,860 478,658

NON-OPERATING INCOME (EXPENSES)

Interest income

1,354 1,025 4,049 2,497

Interest expenses, net of capitalized interest

(70,769 ) (63,853 ) (190,888 ) (195,073 )

Other finance costs

(1,299 ) (1,567 ) (4,066 ) (4,504 )

Foreign exchange (losses) gains, net

(5,730 ) 2,793 (5,359 ) 12,191

Other income, net

1,561 870 3,012 2,258

Loss on extinguishment of debt

(213 ) (16,939 ) (213 ) (48,398 )

Costs associated with debt modification

(881 ) (2,793 )

Totalnon-operating expenses, net

(75,096 ) (78,552 ) (193,465 ) (233,822 )

INCOME BEFORE INCOME TAX

8,546 114,165 229,395 244,836

INCOME TAX EXPENSE

(1,319 ) (1,552 ) (5,715 ) (935 )

NET INCOME

7,227 112,613 223,680 243,901

NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

2,375 3,294 (172 ) 21,929

NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED

$ 9,602 $ 115,907 $ 223,508 $ 265,830

NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:

Basic

$ 0.007 $ 0.079 $ 0.152 $ 0.181

Diluted

$ 0.007 $ 0.078 $ 0.151 $ 0.180

NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:

Basic

$ 0.020 $ 0.237 $ 0.457 $ 0.544

Diluted

$ 0.020 $ 0.235 $ 0.453 $ 0.539

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

Basic

1,458,911,371 1,468,293,998 1,468,530,346 1,467,083,364

Diluted

1,466,184,293 1,479,677,417 1,480,000,417 1,478,440,011

Note The Company adopted the New Revenue Standard using the modified retrospective method from January 1, 2018. Results for the periods beginning on or after January 1, 2018 are presented under the New Revenue Standard, while prior year amounts are not adjusted and continue to be reported in accordance with the previous basis.

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Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars)

September 30,
2018
December 31,
2017
(Unaudited) (Audited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$ 1,226,504 $ 1,408,211

Investment securities

92,827 89,874

Bank deposits with original maturities over three months

20,000 9,884

Restricted cash

87,089 45,412

Accounts receivable, net

198,900 176,544

Amounts due from affiliated companies

7,129 2,377

Inventories

40,086 34,988

Prepaid expenses and other current assets

82,657 77,503

Total current assets

1,755,192 1,844,793

PROPERTY AND EQUIPMENT, NET

5,740,402 5,730,760

GAMING SUBCONCESSION, NET

213,155 256,083

INTANGIBLE ASSETS

4,220 4,220

GOODWILL

81,915 81,915

LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS

200,620 189,645

RESTRICTED CASH

130 130

DEFERRED TAX ASSETS

143 11

LAND USE RIGHTS, NET

770,387 787,499

TOTAL ASSETS

$ 8,766,164 $ 8,895,056

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable

$ 24,290 $ 16,041

Accrued expenses and other current liabilities

1,643,290 1,563,585

Income tax payable

7,859 3,179

Capital lease obligations, due within one year

32,916 33,387

Current portion of long-term debt, net

86,588 51,032

Amounts due to affiliated companies

7,890 16,790

Total current liabilities

1,802,833 1,684,014

LONG-TERM DEBT, NET

3,720,981 3,506,530

OTHER LONG-TERM LIABILITIES

28,503 48,087

DEFERRED TAX LIABILITIES

54,742 53,994

CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR

245,835 265,896

AMOUNTS DUE TO AFFILIATED COMPANIES

919

SHAREHOLDERS’ EQUITY

Ordinary shares

14,830 14,784

Treasury shares

(441,028 ) (90 )

Additionalpaid-in capital

3,692,379 3,671,805

Accumulated other comprehensive losses

(31,046 ) (26,610 )

Accumulated losses

(763,783 ) (772,338 )

Total Melco Resorts & Entertainment Limited shareholders’ equity

2,471,352 2,887,551

Noncontrolling interests

441,918 448,065

Total equity

2,913,270 3,335,616

TOTAL LIABILITIES AND EQUITY

$ 8,766,164 $ 8,895,056

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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
September 30,
Nine Months Ended
September 30,
2018 2017 2018 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Net Income Attributable to Melco Resorts & Entertainment Limited

$ 9,602 $ 115,907 $ 223,508 $ 265,830

Pre-opening Costs

1,974 177 33,087 1,177

Development Costs

4,821 14,054 11,728 18,139

Property Charges and Other

4,774 5,874 20,957 18,401

Loss on Extinguishment of Debt

213 16,939 213 48,398

Costs Associated with Debt Modification

881 2,793

Income Tax Impact on Adjustments

86 (179 ) (262 )

Noncontrolling Interests Impact on Adjustments

(430 ) (922 ) (1,870 ) (2,674 )

Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited

$ 20,954 $ 152,996 $ 287,444 $ 351,802

ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:

Basic

$ 0.014 $ 0.104 $ 0.196 $ 0.240

Diluted

$ 0.014 $ 0.103 $ 0.194 $ 0.238

ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:

Basic

$ 0.043 $ 0.313 $ 0.587 $ 0.719

Diluted

$ 0.043 $ 0.310 $ 0.582 $ 0.714

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

Basic

1,458,911,371 1,468,293,998 1,468,530,346 1,467,083,364

Diluted

1,466,184,293 1,479,677,417 1,480,000,417 1,478,440,011

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, 2018
Altira
Macau
Mocha City of
Dreams
Studio
City
City of
Dreams
Manila
Corporate
and Other
Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Operating Income (Loss)

$ (5,993 ) $ 2,445 $ 76,044 $ 43,153 $ 24,760 $ (56,767 ) $ 83,642

Payments to the Philippine Parties

10,754 10,754

Land Rent to Belle Corporation

739 739

Pre-opening Costs

1,597 357 20 1,974

Development Costs

4,821 4,821

Depreciation and Amortization

4,951 2,124 63,624 44,892 18,618 18,730 152,939

Share-based Compensation

107 36 903 388 342 5,263 7,039

Property Charges and Other

(21 ) 4,975 563 (743 ) 4,774

Adjusted EBITDA

(956 ) 4,605 147,143 89,353 55,233 (28,696 ) 266,682

Corporate and Other Expenses

28,696 28,696

Adjusted Property EBITDA

$ (956 ) $ 4,605 $ 147,143 $ 89,353 $ 55,233 $ $ 295,378

Three Months Ended September 30, 2017
Altira
Macau
Mocha City of
Dreams
Studio
City
City of
Dreams
Manila
Corporate
and Other
Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Operating Income (Loss)

$ (10,973 ) $ 4,752 $ 200,729 $ 46,006 $ 22,266 $ (70,063 ) $ 192,717

Payments to the Philippine Parties

13,288 13,288

Land Rent to Belle Corporation

778 778

Pre-opening Costs

152 25 177

Development Costs

14,054 14,054

Depreciation and Amortization

5,101 1,990 42,082 46,077 20,722 18,033 134,005

Share-based Compensation

68 49 822 322 196 3,817 5,274

Property Charges and Other

197 (270 ) 2,586 3,207 154 5,874

Adjusted EBITDA

(5,607 ) 6,521 246,371 95,637 57,250 (34,005 ) 366,167

Corporate and Other Expenses

34,005 34,005

Adjusted Property EBITDA

$ (5,607 ) $ 6,521 $ 246,371 $ 95,637 $ 57,250 $ $ 400,172

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, 2018
Altira
Macau
Mocha City of
Dreams
Studio
City
City of
Dreams
Manila
Corporate
and Other
Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Operating Income (Loss)

$ 20,198 $ 10,847 $ 334,417 $ 132,510 $ 97,084 $ (172,196 ) $ 422,860

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 33,087

Development Costs

11,728 11,728

Depreciation and Amortization

14,470 6,232 146,447 134,437 56,594 56,220 414,400

Share-based Compensation

278 111 2,599 1,154 (399 ) 14,475 18,218

Property Charges and Other

440 (432 ) 10,517 4,094 28 6,310 20,957

Adjusted EBITDA

35,386 16,758 526,637 272,605 201,329 (83,463 ) 969,252

Corporate and Other Expenses

83,463 83,463

Adjusted Property EBITDA

$ 35,386 $ 16,758 $ 526,637 $ 272,605 $ 201,329 $ $ 1,052,715

Nine Months Ended September 30, 2017
Altira
Macau
Mocha City of
Dreams
Studio
City
City of
Dreams
Manila
Corporate
and Other
Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Operating Income (Loss)

$ (13,188 ) $ 13,092 $ 492,973 $ 97,332 $ 72,664 $ (184,215 ) $ 478,658

Payments to the Philippine Parties

42,549 42,549

Land Rent to Belle Corporation

2,361 2,361

Pre-opening Costs

967 (15 ) 225 1,177

Development Costs

18,139 18,139

Depreciation and Amortization

15,998 6,222 130,434 138,375 63,158 52,923 407,110

Share-based Compensation

150 97 2,106 927 269 8,546 12,095

Property Charges and Other

254 (208 ) 8,715 7,474 2,166 18,401

Adjusted EBITDA

3,214 19,203 635,195 244,093 181,226 (102,441 ) 980,490

Corporate and Other Expenses

102,441 102,441

Adjusted Property EBITDA

$ 3,214 $ 19,203 $ 635,195 $ 244,093 $ 181,226 $ $ 1,082,931

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
September 30,
Nine Months Ended
September 30,
2018 2017 2018 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Net Income Attributable to Melco Resorts & Entertainment Limited

$ 9,602 $ 115,907 $ 223,508 $ 265,830

Net (Loss) Income Attributable to Noncontrolling Interests

(2,375 ) (3,294 ) 172 (21,929 )

Net Income

7,227 112,613 223,680 243,901

Income Tax Expense

1,319 1,552 5,715 935

Interest and OtherNon-Operating Expenses, Net

75,096 78,552 193,465 233,822

Property Charges and Other

4,774 5,874 20,957 18,401

Share-based Compensation

7,039 5,274 18,218 12,095

Depreciation and Amortization

152,939 134,005 414,400 407,110

Development Costs

4,821 14,054 11,728 18,139

Pre-opening Costs

1,974 177 33,087 1,177

Land Rent to Belle Corporation

739 778 2,254 2,361

Payments to the Philippine Parties

10,754 13,288 45,748 42,549

Adjusted EBITDA

266,682 366,167 969,252 980,490

Corporate and Other Expenses

28,696 34,005 83,463 102,441

Adjusted Property EBITDA

$ 295,378 $ 400,172 $ 1,052,715 $ 1,082,931

17


Melco Resorts & Entertainment Limited and Subsidiaries

Supplemental Data Schedule

Three Months Ended
September 30,
Nine Months Ended
September 30,
2018 2017 2018 2017

Room Statistics:

Altira Macau

Average daily rate(3)

$ 187 $ 201 $ 190 $ 203

Occupancy per available room

99 % 98 % 99 % 95 %

Revenue per available room(4)

$ 186 $ 197 $ 188 $ 193

City of Dreams

Average daily rate(3)

$ 215 $ 201 $ 208 $ 200

Occupancy per available room

96 % 97 % 97 % 97 %

Revenue per available room(4)

$ 208 $ 195 $ 202 $ 194

Studio City

Average daily rate(3)

$ 141 $ 142 $ 138 $ 139

Occupancy per available room

100 % 98 % 100 % 98 %

Revenue per available room(4)

$ 141 $ 139 $ 138 $ 137

City of Dreams Manila

Average daily rate(3)

$ 158 $ 158 $ 158 $ 156

Occupancy per available room

98 % 96 % 98 % 96 %

Revenue per available room(4)

$ 155 $ 151 $ 155 $ 150

Other Information:

Altira Macau

Average number of table games

106 101 104 108

Average number of gaming machines

128 61 127 58

Table games win per unit per day(5)

$ 15,873 $ 13,707 $ 19,440 $ 14,225

Gaming machines win per unit per day(6)

$ 160 $ 123 $ 150 $ 103

City of Dreams

Average number of table games

467 476 476 479

Average number of gaming machines

765 673 707 758

Table games win per unit per day(5)

$ 15,678 $ 17,459 $ 15,605 $ 16,878

Gaming machines win per unit per day(6)

$ 691 $ 506 $ 807 $ 504

Studio City

Average number of table games

288 291 292 287

Average number of gaming machines

938 970 947 974

Table games win per unit per day(5)

$ 14,287 $ 14,535 $ 14,361 $ 12,521

Gaming machines win per unit per day(6)

$ 219 $ 214 $ 235 $ 211

City of Dreams Manila

Average number of table games

307 290 300 280

Average number of gaming machines

1,920 1,792 1,885 1,781

Table games win per unit per day(5)

$ 5,165 $ 4,705 $ 5,579 $ 5,417

Gaming machines win per unit per day(6)

$ 280 $ 256 $ 284 $ 272

(3)

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

(4)

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

(5)

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

(6)

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

";


Webplus: MPEL/20181108/6-K_1/1/000.htm SEC Original: d617535d6k.htm
MELCO RESORTS & ENTERTAINMENT LIMITED Form 6–K 3 MELCO RESORTS & ENTERTAINMENT LIMITED Geoffrey Davis, CFA Chief Financial Officer 3 Description



s:3353:" 6-K 1 d617535d6k.htm FORM 6-K
Table of Contents


Table of Contents

MELCO RESORTS & ENTERTAINMENT LIMITED

Form 6–K

TABLE OF CONTENTS

Signature

3

Exhibit 99.1


Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MELCO RESORTS & ENTERTAINMENT

LIMITED

By: /s/ Geoffrey Davis
Name: Geoffrey Davis, CFA
Title: Chief Financial Officer

Date: November 8, 2018

3


Table of Contents

EXHIBIT INDEX

Exhibit No.

Description

Exhibit 99.1 Unaudited Results for Third Quarter of 2018 and Quarterly Dividend Declaration
";

Company Info:

Ticker: MPEL, Company: Melco Resorts & Entertainment LTD, Type: 6-K, Date: 2018-11-08CIK: 0001381640, Location: K3, SIC: 7011, SIC Desc: HOTELS & MOTELS
Business Phone & Address:
36TH FLOOR, THE CENTRIUM., 60 WYNDHAM STREET, CENTRAL
HONG KONG., K3

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