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 first quarter of 2019.
Total operating revenues for the first quarter
of 2019 were US$1,362.0 million, representing an increase of
approximately 4% from US$1,313.1 million for the comparable period
in 2018. The increase in total operating revenues was primarily
attributable to a better performance in the mass market table games
segment and higher non-gaming revenue as a result of the opening of
Morpheus in June 2018.
Operating income for the first quarter of 2019
was US$188.0 million, compared with operating income of US$221.1
million in the first quarter of 2018, representing a decrease of
15%.
Adjusted property EBITDA(1) was
US$406.8 million for the first quarter of 2019, as compared to
Adjusted property EBITDA of US$401.8 million in the first quarter
of 2018, representing an increase of 1%.
Net income attributable to Melco Resorts &
Entertainment Limited for the first quarter of 2019 was US$117.4
million, or US$0.26 per ADS, compared with US$156.6 million, or
US$0.32 per ADS, in the first quarter of 2018. The net income
attributable to noncontrolling interests during the first quarter
of 2019 and 2018 were US$1.0 million and US$6.7 million,
respectively, which were related to Studio City and City of Dreams
Manila.
Mr. Lawrence Ho, our Chairman and Chief
Executive Officer, commented, “During the first quarter of 2019,
Melco had another quarter of solid EBITDA delivery despite
volatility experienced by the Macau VIP market.
“Melco’s dedication to excellence has been
widely recognized, most recently by the 2019 Forbes Travel Guide
(FTG) with the Company remaining as Asia’s leading integrated
resort operator with the most Forbes Star Awards. We are extremely
proud to achieve a record-breaking milestone with Melco’s
integrated resorts receiving a collective total of 85 Stars. This
is the tenth consecutive year for Altira Macau to achieve the FTG
Five-Star recognition. Notably, Nüwa Macau at City of Dreams
remains the first and only property in Asia to receive FTG
Five-Star across its entire portfolio of hotel, spa and dining
facilities; while Studio City is honored for the first time as a
triple category FTG Five Star property. City of Dreams’ Jade Dragon
has once again been named as the top ranking restaurant in Macau
among Asia’s 50 Best Restaurants 2019. Moreover, with less than a
year since its grand opening, Morpheus won ArchDaily’s 2019
Building of the Year Award, Hospitality Architecture Category.
These recognitions have positioned Melco as a leading integrated
resort operator in Asia.
“The opening of Morpheus only marks the
beginning of the relaunch of City of Dreams. On top of that, we
have recently unveiled the significantly upgraded VIP gaming spaces
on the second floor of City of Dreams.
“At Studio City, we continue to enhance the
entertainment offerings with a series of property upgrades, which
include the recent launch of Elēkrŏn. Earlier in January, we also
opened the pop-up ‘Legend Heroes Park’, paving way for the opening
of the permanent venue later in the year. Lastly, the ‘Flip Out’
Trampoline Park is also expected to open later in the year.
“In the Philippines, City of Dreams Manila
delivered EBITDA growth of 3% year-over-year. With increased
competition in and around Entertainment City, we are more cautious
about 2019 and beyond.
“The Board has, after evaluating the Company’s
current liquidity position and future expected capital needs,
decided to declare another quarterly dividend of US$0.1551 per
ADS.
“Being responsible and accountable to all its
guests, colleagues and stakeholders has always been central to
Melco’s business philosophy. Melco has recently launched its new
Sustainability Report for 2018 to further elevate its commitment
through its new “Above & Beyond” strategy. The report outlines
ambitious goals, actionable targets and further enhances its
disclosure around key environmental, social, and governance (ESG)
issues that are critical to Melco’s business.
“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 a vision for an
integrated resort development with a unique Japanese touch.”
City of Dreams First Quarter
Results
For the quarter ended March 31, 2019, total
operating revenues at City of Dreams were US$713.3 million compared
to US$640.5 million in the first quarter of 2018. City of Dreams
generated Adjusted EBITDA of US$228.6 million in the first quarter
of 2019 compared with Adjusted EBITDA of US$208.0 million in the
first quarter of 2018. The year-on-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 totaled US$10.2 billion for
the first quarter of 2019 versus US$11.1 billion in the first
quarter of 2018. The rolling chip win rate was 3.4% in the first
quarter of 2019 versus 3.0% in the first quarter of 2018. The
expected rolling chip win rate range is 2.7%-3.0%.
Mass market table games drop increased to
US$1,317.8 million in the first quarter of 2019 compared with
US$1,182.2 million in the first quarter of 2018. The mass market
table games hold percentage was 31.5% in the first quarter of 2019
compared to 32.1% in the first quarter of 2018.
Gaming machine handle for the first quarter of
2019 was US$980.4 million, compared with US$1,000.7 million in the
first quarter of 2018. The gaming machine win rate was 4.0% in the
first quarter of 2019 versus 5.0% in the first quarter of 2018.
Total non-gaming revenue at City of Dreams in
the first quarter of 2019 was US$96.2 million, compared with
US$72.8 million in the first quarter of 2018.
Altira Macau First Quarter
Results
For the quarter ended March 31, 2019, total
operating revenues at Altira Macau were US$133.0 million compared
to US$120.4 million in the first quarter of 2018. Altira Macau
generated Adjusted EBITDA of US$15.3 million in the first quarter
of 2019 compared with Adjusted EBITDA of US$18.0 million in the
first quarter of 2018.
Rolling chip volume totaled US$5.0 billion in
the first quarter of 2019 versus US$5.6 billion in the first
quarter of 2018. The rolling chip win rate was 3.8% in the first
quarter of 2019 versus 3.0% in the first quarter of 2018. The
expected rolling chip win rate range is 2.7%-3.0%.
In the mass market table games segment, drop
totaled US$139.2 million in the first quarter of 2019 versus
US$139.3 million in the first quarter of 2018. The mass market
table games hold percentage was 22.4% in the first quarter of 2019
compared with 19.4% in the first quarter of 2018.
Gaming machine handle for the first quarter of
2019 was US$60.7 million, compared with US$26.0 million in the
first quarter of 2018. The increase was primarily due to an
increase in average number of gaming machines to 169 in the first
quarter of 2019, compared to 122 in the first quarter of
2018. The gaming machine win rate was 5.1% in the first
quarter of 2019 versus 5.4% in the first quarter of 2018.
Total non-gaming revenue at Altira Macau was
US$6.7 million for both quarters ended March 31, 2019 and 2018.
Mocha Clubs First Quarter
Results
Total operating revenues from Mocha Clubs
totaled US$31.1 million in the first quarter of 2019 as compared to
US$30.4 million in the first quarter of 2018. Mocha Clubs generated
US$6.0 million of Adjusted EBITDA in the first quarter of 2019
compared with US$6.9 million in the same period in 2018.
Gaming machine handle for the first quarter of
2019 was US$664.3 million, compared with US$654.6 million in the
first quarter of 2018. The gaming machine win rate was 4.7% in the
first quarter of 2019 versus 4.6% in the first quarter of 2018.
Studio City First Quarter
Results
For the quarter ended March 31, 2019, total
operating revenues at Studio City were US$330.4 million compared to
US$368.4 million in the first quarter of 2018. Studio City
generated Adjusted EBITDA of US$96.4 million in the first quarter
of 2019 compared with Adjusted EBITDA of US$110.1 million in the
first quarter of 2018. The decline in Adjusted EBITDA was primarily
a result of softer performance in the rolling chip segment.
Affected by the Macau market-wide VIP weakness,
and by increasing competition in and around Cotai, Studio City’s
rolling chip volume totaled US$2.7 billion in the first quarter of
2019 versus US$6.6 billion in the first quarter of 2018. The
rolling chip win rate was 3.3% in the first quarter of 2019 versus
2.7% in the first quarter of 2018. The expected rolling chip win
rate range is 2.7%-3.0%.
Mass market table games drop increased to
US$851.4 million in the first quarter of 2019 compared with
US$825.2 million in the first quarter of 2018. The mass market
table games hold percentage was 28.4% in the first quarter of 2019
compared to 27.4% in the first quarter of 2018.
Gaming machine handle for the first quarter of
2019 was US$560.6 million, compared with US$581.6 million in the
first quarter of 2018. The gaming machine win rate was 3.3% in the
first quarter of 2019 versus 3.7% in the first quarter of 2018.
Total non-gaming revenue at Studio City in the
first quarter of 2019 was US$50.9 million, compared with US$48.2
million in the first quarter of 2018.
The Company is aware that New Cotai, LLC (“New
Cotai”), a shareholder of Studio City International Holdings
Limited (“SCIHL”), and certain of New Cotai’s affiliates have
commenced a voluntary Chapter 11 bankruptcy petition in the
Southern District of New York. The Company does not anticipate that
the bankruptcy of New Cotai will have any material impact on the
business or operations of SCIHL or the funding or the timing of the
development and construction of SCIHL’s Phase II expansion. Melco
continues to remain the majority shareholder of SCIHL.
City of Dreams Manila First Quarter
Results
For the quarter ended March 31, 2019, total
operating revenues at City of Dreams Manila were US$142.4 million
compared to US$142.2 million in the first quarter of 2018. City of
Dreams Manila generated Adjusted EBITDA of US$60.5 million in the
first quarter of 2019 compared to US$58.8 million in the comparable
period of 2018.
With increased competition in and around
Entertainment City, City of Dreams Manila’s rolling chip volume
totaled US$2.3 billion in the first quarter of 2019 versus US$2.8
billion in the first quarter of 2018. The rolling chip win rate was
3.2% in the first quarter of 2019 versus 2.9% in the first quarter
of 2018. The expected rolling chip win rate range is 2.7%-3.0%.
Mass market table games drop decreased to
US$184.3 million for the first quarter of 2019, compared with
US$188.2 million in the first quarter of 2018. The mass market
table games hold percentage was 30.6% in the first quarter of 2019
compared to 33.8% in the first quarter of 2018.
Gaming machine handle for the first quarter of
2019 was US$907.5 million, compared with US$820.9 million in the
first quarter of 2018. The gaming machine win rate was 5.8% in the
first quarter of 2019 versus 5.6% in the first quarter of 2018.
Total non-gaming revenue at City of Dreams
Manila in the first quarter of 2019 was US$28.6 million, compared
with US$29.6 million in the first quarter of
2018. Other Factors Affecting
Earnings
Total net non-operating expenses for the first
quarter of 2019 were US$65.9 million, which mainly included
interest expenses of US$69.6 million, partially offset by other net
non-operating income of US$6.7 million.
Depreciation and amortization costs of US$156.3
million were recorded in the first 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 March 31, 2019 referred to in this report is
US$12.2 million more than the Adjusted EBITDA of Studio City
contained in the earnings release for SCIHL dated May 7, 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 report. Such intercompany charges
include, among other items, fees and shared service charges billed
between SCIHL and its subsidiaries and certain subsidiaries of
Melco. Also, Adjusted EBITDA of Studio City included in this report
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 March 31,
2019 aggregated US$1.6 billion, including US$63.2 million of
restricted cash which was primarily related to Studio City. Total
debt, net of unamortized deferred financing costs at the end of the
first quarter of 2019, was US$4.2 billion.
Capital expenditures for the first quarter of
2019 were US$63.4 million, which predominantly related to various
projects at City of Dreams and Studio City.
Dividend Declaration
On May 7, 2019, our Board considered and
approved the declaration and payment of a quarterly dividend of
US$0.0517 per ordinary share (equivalent to US$0.1551 per ADS) for
the first quarter of 2019 (the “Quarterly Dividend”). The Quarterly
Dividend will be paid on or about May 30, 2019 to our shareholders
whose names appear on the register of members of the Company at the
close of business on May 20, 2019, being the record date for
determination of entitlements to the Quarterly Dividend.
Conference Call Information
Melco Resorts & Entertainment Limited will
hold a conference call to discuss its first quarter 2019 financial
results on Tuesday, May 7, 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 |
2695418 |
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.
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. |
|
|
(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 HuangDirector, Investor RelationsTel:
+852 2598 3619Email: richardlshuang@melco-resorts.com
For media enquiries, please
contact:Chimmy LeungExecutive Director, Corporate
CommunicationsTel: +852 3151 3765Email:
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 |
|
|
March 31, |
|
|
2019 |
|
|
2018 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
OPERATING REVENUES |
|
|
|
|
|
|
Casino |
$ |
1,176,649 |
|
|
$ |
1,153,753 |
|
|
Rooms |
|
84,069 |
|
|
|
67,571 |
|
|
Food and beverage |
|
56,173 |
|
|
|
48,248 |
|
|
Entertainment, retail
and other |
|
45,155 |
|
|
|
43,576 |
|
|
Total operating
revenues |
|
1,362,046 |
|
|
|
1,313,148 |
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND
EXPENSES |
|
|
|
|
|
|
Casino |
|
(771,011 |
) |
|
|
(754,049 |
) |
|
Rooms |
|
(22,493 |
) |
|
|
(15,826 |
) |
|
Food and beverage |
|
(44,878 |
) |
|
|
(37,087 |
) |
|
Entertainment, retail
and other |
|
(21,808 |
) |
|
|
(22,962 |
) |
|
General and
administrative |
|
(127,988 |
) |
|
|
(108,226 |
) |
|
Payments to the
Philippine Parties |
|
(14,052 |
) |
|
|
(11,377 |
) |
|
Pre-opening costs |
|
(2,565 |
) |
|
|
(2,348 |
) |
|
Development costs |
|
(5,520 |
) |
|
|
(3,889 |
) |
|
Amortization of gaming
subconcession |
|
(14,186 |
) |
|
|
(14,309 |
) |
|
Amortization of land
use rights |
|
(5,655 |
) |
|
|
(5,704 |
) |
|
Depreciation and
amortization |
|
(136,502 |
) |
|
|
(109,687 |
) |
|
Property charges and
other |
|
(7,432 |
) |
|
|
(6,546 |
) |
|
Total operating costs
and expenses |
|
(1,174,090 |
) |
|
|
(1,092,010 |
) |
|
OPERATING INCOME |
|
187,956 |
|
|
|
221,138 |
|
|
NON-OPERATING INCOME
(EXPENSES) |
|
|
|
|
|
|
Interest income |
|
2,124 |
|
|
|
1,409 |
|
|
Interest expenses, net
of capitalized interest |
|
(69,623 |
) |
|
|
(58,736 |
) |
|
Other finance
costs |
|
(283 |
) |
|
|
(1,377 |
) |
|
Foreign exchange
(losses) gains, net |
|
(495 |
) |
|
|
4,624 |
|
|
Other income
(expenses), net |
|
6,711 |
|
|
|
(1,806 |
) |
|
Loss on extinguishment
of debt |
|
(3,721 |
) |
|
|
- |
|
|
Costs associated with
debt modification |
|
(579 |
) |
|
|
- |
|
|
Total non-operating
expenses, net |
|
(65,866 |
) |
|
|
(55,886 |
) |
|
INCOME BEFORE INCOME
TAX |
|
122,090 |
|
|
|
165,252 |
|
|
INCOME TAX EXPENSE |
|
(3,691 |
) |
|
|
(1,938 |
) |
|
NET INCOME |
|
118,399 |
|
|
|
163,314 |
|
|
NET INCOME ATTRIBUTABLE
TO |
|
|
|
|
|
|
NONCONTROLLING
INTERESTS |
|
(1,044 |
) |
|
|
(6,681 |
) |
|
NET INCOME ATTRIBUTABLE
TO |
|
|
|
|
|
|
MELCO RESORTS
& ENTERTAINMENT LIMITED |
$ |
117,355 |
|
|
$ |
156,633 |
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE
TO |
|
|
|
|
|
|
MELCO RESORTS
& ENTERTAINMENT LIMITED PER SHARE: |
|
|
|
|
|
|
Basic |
$ |
0.085 |
|
|
$ |
0.107 |
|
|
Diluted |
$ |
0.085 |
|
|
$ |
0.106 |
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE
TO |
|
|
|
|
|
|
MELCO RESORTS
& ENTERTAINMENT LIMITED PER ADS: |
|
|
|
|
|
|
Basic |
$ |
0.255 |
|
|
$ |
0.320 |
|
|
Diluted |
$ |
0.254 |
|
|
$ |
0.317 |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING |
|
|
|
|
|
|
USED IN NET
INCOME ATTRIBUTABLE TO |
|
|
|
|
|
|
MELCO RESORTS
& ENTERTAINMENT LIMITED |
|
|
|
|
|
|
PER SHARE
CALCULATION: |
|
|
|
|
|
|
Basic |
|
1,380,052,114 |
|
|
|
1,469,739,909 |
|
|
Diluted |
|
1,386,310,676 |
|
|
|
1,483,754,520 |
|
|
|
|
|
|
|
|
|
Melco Resorts & Entertainment Limited and
Subsidiaries |
|
|
Condensed Consolidated Balance
Sheets |
|
|
(In thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
1,539,268 |
|
|
$ |
1,436,558 |
|
|
|
Investment
securities |
|
71,029 |
|
|
|
91,598 |
|
|
|
Restricted cash |
|
63,093 |
|
|
|
48,037 |
|
|
|
Accounts receivable,
net |
|
225,933 |
|
|
|
242,089 |
|
|
|
Amounts due from
affiliated companies |
|
8,276 |
|
|
|
7,603 |
|
|
|
Inventories |
|
44,264 |
|
|
|
40,828 |
|
|
|
Prepaid expenses and
other current assets |
|
117,669 |
|
|
|
90,749 |
|
|
|
Total current
assets |
|
2,069,532 |
|
|
|
1,957,462 |
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET |
|
5,577,418 |
|
|
|
5,661,653 |
|
|
|
GAMING SUBCONCESSION,
NET |
|
182,887 |
|
|
|
197,533 |
|
|
|
INTANGIBLE ASSETS,
NET |
|
29,653 |
|
|
|
30,072 |
|
|
|
GOODWILL |
|
81,185 |
|
|
|
81,376 |
|
|
|
LONG-TERM PREPAYMENTS,
DEPOSITS AND OTHER ASSETS |
|
183,409 |
|
|
|
186,515 |
|
|
|
RESTRICTED CASH |
|
129 |
|
|
|
129 |
|
|
|
DEFERRED TAX
ASSETS |
|
2,806 |
|
|
|
2,992 |
|
|
|
OPERATING LEASE
RIGHT-OF-USE ASSETS |
|
154,234 |
|
|
|
- |
|
|
|
LAND USE RIGHTS,
NET |
|
752,213 |
|
|
|
759,651 |
|
|
|
TOTAL ASSETS |
$ |
9,033,466 |
|
|
$ |
8,877,383 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
|
Accounts payable |
$ |
27,396 |
|
|
$ |
24,879 |
|
|
|
Accrued expenses and
other current liabilities |
|
1,463,159 |
|
|
|
1,658,550 |
|
|
|
Income tax payable |
|
3,036 |
|
|
|
4,903 |
|
|
|
Operating lease
liabilities, current |
|
38,011 |
|
|
|
- |
|
|
|
Finance lease
liabilities, current |
|
35,429 |
|
|
|
34,659 |
|
|
|
Current portion of
long-term debt, net |
|
394,356 |
|
|
|
395,547 |
|
|
|
Amounts due to
affiliated companies |
|
10,142 |
|
|
|
11,469 |
|
|
|
Total current
liabilities |
|
1,971,529 |
|
|
|
2,130,007 |
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT,
NET |
|
3,822,302 |
|
|
|
3,665,370 |
|
|
|
OTHER LONG-TERM
LIABILITIES |
|
10,234 |
|
|
|
28,866 |
|
|
|
DEFERRED TAX
LIABILITIES |
|
56,240 |
|
|
|
54,063 |
|
|
|
OPERATING LEASE
LIABILITIES, NON-CURRENT |
|
132,961 |
|
|
|
- |
|
|
|
FINANCE LEASE
LIABILITIES, NON-CURRENT |
|
252,714 |
|
|
|
253,374 |
|
|
|
AMOUNT DUE TO AN
AFFILIATED COMPANY |
|
216 |
|
|
|
- |
|
|
|
TOTAL LIABILITIES |
|
6,246,196 |
|
|
|
6,131,680 |
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
Ordinary shares |
|
14,830 |
|
|
|
14,830 |
|
|
|
Treasury shares |
|
(651,638 |
) |
|
|
(657,389 |
) |
|
|
Additional paid-in
capital |
|
3,524,837 |
|
|
|
3,523,275 |
|
|
|
Accumulated other
comprehensive losses |
|
(59,148 |
) |
|
|
(49,804 |
) |
|
|
Accumulated losses |
|
(657,620 |
) |
|
|
(703,576 |
) |
|
|
Total Melco Resorts
& Entertainment Limited shareholders’ equity |
|
2,171,261 |
|
|
|
2,127,336 |
|
|
|
Noncontrolling
interests |
|
616,009 |
|
|
|
618,367 |
|
|
|
Total equity |
|
2,787,270 |
|
|
|
2,745,703 |
|
|
|
TOTAL LIABILITIES AND
EQUITY |
$ |
9,033,466 |
|
|
$ |
8,877,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
March 31, |
|
|
2019 |
|
|
2018 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
Net Income Attributable
to |
|
|
|
|
|
|
Melco Resorts
& Entertainment Limited |
$ |
117,355 |
|
|
$ |
156,633 |
|
|
Pre-opening Costs |
|
2,565 |
|
|
|
2,348 |
|
|
Development Costs |
|
5,520 |
|
|
|
3,889 |
|
|
Property
Charges and Other |
|
7,432 |
|
|
|
6,546 |
|
|
Loss on
Extinguishment of Debt |
|
3,721 |
|
|
|
- |
|
|
Costs
Associated with Debt Modification |
|
579 |
|
|
|
- |
|
|
Income
Tax Impact on Adjustments |
|
(1,069 |
) |
|
|
- |
|
|
Noncontrolling Interests Impact on Adjustments |
|
(2,909 |
) |
|
|
(962 |
) |
|
Adjusted Net Income
Attributable to |
|
|
|
|
|
|
Melco Resorts
& Entertainment Limited |
$ |
133,194 |
|
|
$ |
168,454 |
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME
ATTRIBUTABLE TO |
|
|
|
|
|
|
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE: |
|
|
|
|
Basic |
$ |
0.097 |
|
|
$ |
0.115 |
|
|
Diluted |
$ |
0.096 |
|
|
$ |
0.113 |
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME
ATTRIBUTABLE TO |
|
|
|
|
|
|
MELCO RESORTS
& ENTERTAINMENT LIMITED PER ADS: |
|
|
|
|
|
|
Basic |
$ |
0.290 |
|
|
$ |
0.344 |
|
|
Diluted |
$ |
0.288 |
|
|
$ |
0.340 |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING |
|
|
|
|
|
|
USED IN ADJUSTED
NET INCOME ATTRIBUTABLE TO |
|
|
|
|
|
|
MELCO RESORTS
& ENTERTAINMENT LIMITED |
|
|
|
|
|
|
PER SHARE
CALCULATION: |
|
|
|
|
|
|
Basic |
|
1,380,052,114 |
|
|
|
1,469,739,909 |
|
|
Diluted |
|
1,386,310,676 |
|
|
|
1,483,754,520 |
|
|
|
|
|
|
|
|
|
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 March 31,
2019 |
|
|
Altira Macau |
|
Mocha |
|
City of Dreams |
|
Studio City |
|
City of DreamsManila |
|
Corporateand Other |
|
Total |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
$ |
9,704 |
|
$ |
3,916 |
|
|
$ |
158,220 |
|
$ |
48,479 |
|
$ |
23,005 |
|
|
$ |
(55,368 |
) |
|
$ |
187,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments to the
Philippine Parties |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
14,052 |
|
|
|
- |
|
|
|
14,052 |
|
Land Rent to
Belle Corporation |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
756 |
|
|
|
- |
|
|
|
756 |
|
Pre-opening
Costs |
|
25 |
|
|
- |
|
|
|
51 |
|
|
2,489 |
|
|
- |
|
|
|
- |
|
|
|
2,565 |
|
Development
Costs |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
5,520 |
|
|
|
5,520 |
|
Depreciation and
Amortization |
|
5,424 |
|
|
2,002 |
|
|
|
65,702 |
|
|
45,159 |
|
|
19,127 |
|
|
|
18,929 |
|
|
|
156,343 |
|
Share-based
Compensation |
|
100 |
|
|
43 |
|
|
|
646 |
|
|
184 |
|
|
282 |
|
|
|
5,168 |
|
|
|
6,423 |
|
Property Charges
and Other |
|
27 |
|
|
28 |
|
|
|
3,943 |
|
|
129 |
|
|
3,305 |
|
|
|
- |
|
|
|
7,432 |
|
Adjusted EBITDA |
|
15,280 |
|
|
5,989 |
|
|
|
228,562 |
|
|
96,440 |
|
|
60,527 |
|
|
|
(25,751 |
) |
|
|
381,047 |
|
Corporate and
Other Expenses |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
25,751 |
|
|
|
25,751 |
|
Adjusted Property
EBITDA |
$ |
15,280 |
|
$ |
5,989 |
|
|
$ |
228,562 |
|
$ |
96,440 |
|
$ |
60,527 |
|
|
$ |
- |
|
|
$ |
406,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2018 |
|
|
Altira Macau |
|
Mocha |
|
City of Dreams |
|
Studio City |
|
City of DreamsManila |
|
Corporate and Other |
|
Total |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
$ |
12,649 |
|
$ |
5,320 |
|
|
$ |
161,947 |
|
$ |
62,764 |
|
$ |
28,107 |
|
|
$ |
(49,649 |
) |
|
$ |
221,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments to the
Philippine Parties |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
11,377 |
|
|
|
- |
|
|
|
11,377 |
|
Land Rent to
Belle Corporation |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
764 |
|
|
|
- |
|
|
|
764 |
|
Pre-opening
Costs |
|
- |
|
|
- |
|
|
|
2,306 |
|
|
42 |
|
|
- |
|
|
|
- |
|
|
|
2,348 |
|
Development
Costs |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
3,889 |
|
|
|
3,889 |
|
Depreciation and
Amortization |
|
4,846 |
|
|
2,083 |
|
|
|
40,163 |
|
|
44,541 |
|
|
19,173 |
|
|
|
18,894 |
|
|
|
129,700 |
|
Share-based
Compensation |
|
71 |
|
|
27 |
|
|
|
858 |
|
|
336 |
|
|
(610 |
) |
|
|
3,836 |
|
|
|
4,518 |
|
Property Charges
and Other |
|
461 |
|
|
(490 |
) |
|
|
2,741 |
|
|
2,367 |
|
|
- |
|
|
|
1,467 |
|
|
|
6,546 |
|
Adjusted EBITDA |
|
18,027 |
|
|
6,940 |
|
|
|
208,015 |
|
|
110,050 |
|
|
58,811 |
|
|
|
(21,563 |
) |
|
|
380,280 |
|
Corporate and
Other Expenses |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
21,563 |
|
|
|
21,563 |
|
Adjusted Property
EBITDA |
$ |
18,027 |
|
$ |
6,940 |
|
|
$ |
208,015 |
|
$ |
110,050 |
|
$ |
58,811 |
|
|
$ |
- |
|
|
$ |
401,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
March 31, |
|
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
Net Income Attributable
to Melco Resorts & Entertainment Limited |
$ |
117,355 |
|
$ |
156,633 |
|
Net Income Attributable
to Noncontrolling Interests |
|
1,044 |
|
|
6,681 |
|
Net Income |
|
118,399 |
|
|
163,314 |
|
Income
Tax Expense |
|
3,691 |
|
|
1,938 |
|
Interest
and Other Non-Operating Expenses, Net |
|
65,866 |
|
|
55,886 |
|
Property
Charges and Other |
|
7,432 |
|
|
6,546 |
|
Share-based Compensation |
|
6,423 |
|
|
4,518 |
|
Depreciation and Amortization |
|
156,343 |
|
|
129,700 |
|
Development Costs |
|
5,520 |
|
|
3,889 |
|
Pre-opening Costs |
|
2,565 |
|
|
2,348 |
|
Land Rent
to Belle Corporation |
|
756 |
|
|
764 |
|
Payments
to the Philippine Parties |
|
14,052 |
|
|
11,377 |
|
Adjusted EBITDA |
|
381,047 |
|
|
380,280 |
|
Corporate
and Other Expenses |
|
25,751 |
|
|
21,563 |
|
Adjusted Property
EBITDA |
$ |
406,798 |
|
$ |
401,843 |
|
|
|
|
|
|
|
|
|
|
|
|
Melco Resorts & Entertainment Limited and
Subsidiaries |
Supplemental Data Schedule |
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
|
2019 |
|
|
2018 |
Room Statistics: |
|
|
|
Altira Macau |
|
|
|
Average
daily rate (3) |
$ |
179 |
|
$ |
195 |
Occupancy
per available room |
|
99% |
|
|
99% |
Revenue
per available room (4) |
$ |
178 |
|
$ |
194 |
|
|
|
|
City of Dreams |
|
|
|
Average
daily rate (3) |
$ |
206 |
|
$ |
204 |
Occupancy
per available room |
|
97% |
|
|
98% |
Revenue
per available room (4) |
$ |
200 |
|
$ |
201 |
|
|
|
|
Studio City |
|
|
|
Average
daily rate (3) |
$ |
134 |
|
$ |
139 |
Occupancy
per available room |
|
100% |
|
|
100% |
Revenue
per available room (4) |
$ |
133 |
|
$ |
139 |
|
|
|
|
City of Dreams Manila |
|
|
|
Average
daily rate (3) |
$ |
164 |
|
$ |
158 |
Occupancy
per available room |
|
98% |
|
|
98% |
Revenue
per available room (4) |
$ |
161 |
|
$ |
156 |
|
|
|
|
Other Information: |
|
|
|
Altira Macau |
|
|
|
Average
number of table games |
|
105 |
|
|
104 |
Average
number of gaming machines |
|
169 |
|
|
122 |
Table
games win per unit per day (5) |
$ |
23,308 |
|
$ |
21,120 |
Gaming
machines win per unit per day (6) |
$ |
204 |
|
$ |
129 |
|
|
|
|
City of Dreams |
|
|
|
Average
number of table games |
|
518 |
|
|
478 |
Average
number of gaming machines |
|
820 |
|
|
665 |
Table
games win per unit per day (5) |
$ |
16,424 |
|
$ |
16,616 |
Gaming
machines win per unit per day (6) |
$ |
529 |
|
$ |
833 |
|
|
|
|
Studio City |
|
|
|
Average
number of table games |
|
294 |
|
|
294 |
Average
number of gaming machines |
|
974 |
|
|
943 |
Table
games win per unit per day (5) |
$ |
12,507 |
|
$ |
15,296 |
Gaming
machines win per unit per day (6) |
$ |
211 |
|
$ |
250 |
|
|
|
|
City of Dreams Manila |
|
|
|
Average
number of table games |
|
302 |
|
|
294 |
Average
number of gaming machines |
|
2,242 |
|
|
1,836 |
Table
games win per unit per day (5) |
$ |
4,752 |
|
$ |
5,419 |
Gaming
machines win per unit per day (6) |
$ |
261 |
|
$ |
280 |
|
|
|
|
(3) 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 |
(4) Revenue per available room is calculated by dividing total room
revenues including 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 |
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