Melco Announces Record Adjusted Property EBITDA in the First Quarter 2018 and Declares Quarterly Dividend
MACAU, May 03, 2018 (GLOBE NEWSWIRE) -- 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 2018.
Net revenue for the first quarter of 2018 was US$1,313.1 million, representing an increase of approximately 3% from US$1,277.2 million for the comparable period in 2017. The increase in net revenue was primarily attributable to higher group-wide gross gaming revenues in all gaming segments, partially offset by 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”). The Company adopted the New Revenue Standard using the modified retrospective method from January 1, 2018. Results for the period beginning 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 first quarter of 2018 would have been US$1,412.9 million, which would have represented an increase of approximately 11% from the US$1,277.2 million for the comparable period in 2017.
Operating income for the first quarter of 2018 was US$221.1 million, compared with operating income of US$158.5 million in the first quarter of 2017, representing an increase of 40%.
Adjusted property EBITDA(1) was US$401.8 million for the first quarter of 2018, as compared to Adjusted property EBITDA of US$353.3 million in the first quarter of 2017, representing an increase of 14%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to the higher contribution from Studio City and Altira Macau driven by increased gross gaming revenues in all gaming segments.
Net income attributable to Melco Resorts & Entertainment Limited for the first quarter of 2018 was US$156.6 million, or US$0.32 per ADS, compared with US$113.4 million, or US$0.23 per ADS, in the first quarter of 2017. The net income attributable to noncontrolling interests during the first quarter of 2018 of US$6.7 million was related to Studio City and City of Dreams Manila.
Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented “Macau has had a strong start to the year with year-to-date gaming revenue growth at approximately 22% compared to the same period in 2017. We continue to be optimistic on the outlook of the Macau market as the city’s gaming and entertainment markets continue to benefit from the improving demand environment, the anticipated completion of the Hong Kong-Zhuhai-Macau Bridge and the ongoing build-out of Cotai.
“Despite multiple new resorts opening, Melco remains the leader in Macau’s premium mass market with our dedication to quality recognized by the 2018 Michelin Guide Hong Kong Macau and Forbes Travel Guide, which awarded Melco with 7 Stars and 83 Stars, respectively, making us the integrated resort operator with the most Michelin-starred restaurants and Forbes Star awards in Asia. With the eagerly awaited opening of Morpheus, we expect to further solidify our leadership position in this important market segment as we will deliver a genuine landmark for all of Macau.
“At Studio City, we are embarking on a series of property upgrades to refine the entertainment offerings and improve accessibility into the resort, which we believe will facilitate the continuing ramp up that the property has experienced over the past several quarters. As previously announced, the Macau government has recently granted an extension of the development period under the Studio City land concession contract to July 2021, enabling us to continue to develop our construction plan for the phase 2 expansion of Studio City, which we believe will augment the existing room inventory and entertainment offerings, as well as contribute to the continued growth and development of this property.
“In the Philippines, City of Dreams Manila delivered another strong quarter, despite new supply coming on stream within Entertainment City. The 44% year-over-year increase in mass table gross gaming revenue in the first quarter was particularly encouraging and highlights our commitment to drive high quality earnings growth.
“Aimed at optimizing our operating excellence, we announced the redeployment of our senior operating management in January. I am pleased to report that we have started seeing early signs of improvement, with City of Dreams’ mass hold rate trending up to over 32% and its mass table gross gaming revenue increasing over 8% sequentially in the first quarter of 2018.
“As also previously announced, the Board has recently approved a new US$500 million share repurchase program, which is consistent with our strategy of, where appropriate, returning excess capital to shareholders.
“Lastly, Japan continues to be a core focus for us. With the anticipated passage of the Integrated Resorts (IR) implementation bill later this year, the country will take a major step forward toward the development of the next generation of integrated resorts that will operate in this incredibly exciting, yet currently underpenetrated, tourism destination. With our focus on the premium end of the market, 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 unique Japanese touches.” City of Dreams First Quarter Results
For the quarter ended March 31, 2018, net revenue at City of Dreams was US$640.5 million compared to US$693.2 million in the first quarter of 2017. City of Dreams generated Adjusted EBITDA of US$208.0 million in the first quarter of 2018 compared with Adjusted EBITDA of US$213.5 million in the first quarter of 2017.
Rolling chip volume totaled US$11.1 billion for the first quarter of 2018 versus US$12.6 billion in the first quarter of 2017. The rolling chip win rate was 3.0% in the first quarter of 2018 versus 2.7% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.
Mass market table games drop increased to US$1,182.2 million compared with US$1,059.8 million in the first quarter of 2017. The mass market table games hold percentage was 32.1% in the first quarter of 2018 compared to 36.9% in the first quarter of 2017.
Gaming machine handle for the first quarter of 2018 was US$1,000.7 million, compared with US$1,025.9 million in the first quarter of 2017. The gaming machine win rate was 5.0% in the first quarter of 2018 versus 3.4% in the first quarter of 2017.
Total non-gaming revenue at City of Dreams in the first quarter of 2018 was US$72.8 million, compared with US$77.8 million in the first quarter of 2017.
Altira Macau First Quarter Results
For the quarter ended March 31, 2018, net revenue at Altira Macau was US$120.4 million compared to US$109.1 million in the first quarter of 2017. Altira Macau generated Adjusted EBITDA of US$18.0 million in the first quarter of 2018 compared with Adjusted EBITDA of US$3.7 million in the first quarter of 2017. The year-on-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments.
Rolling chip volume totaled US$5.6 billion in the first quarter of 2018 versus US$4.1 billion in the first quarter of 2017. The rolling chip win rate was 3.0% in the first quarter of 2018 versus 3.1% in the first 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$139.3 million in the first quarter of 2018, representing an increase from US$99.7 million generated in the comparable period in 2017. The mass market table games hold percentage was 19.4% in the first quarter of 2018 compared with 20.6% in the first quarter of 2017.
Gaming machine handle for the first quarter of 2018 was US$26.0 million, compared with US$8.0 million in the first quarter of 2017. The gaming machine win rate was 5.4% in the first quarter of 2018 versus 5.8% in the first quarter of 2017.
Total non-gaming revenue at Altira Macau in the first quarter of 2018 was US$6.7 million, compared with US$6.6 million in the first quarter of 2017.
Mocha Clubs First Quarter Results
Net revenue from Mocha Clubs totaled US$30.4 million in the first quarter of 2018 as compared to US$31.1 million in the first quarter of 2017. Mocha Clubs generated US$6.9 million of Adjusted EBITDA in the first quarter of 2018 compared with US$7.1 million in the same period in 2017.
Gaming machine handle for the first quarter of 2018 was US$654.6 million, compared with US$603.1 million in the first quarter of 2017. The gaming machine win rate was 4.6% in the first quarter of 2018 versus 5.0% in the first quarter of 2017.
Studio City First Quarter Results
For the quarter ended March 31, 2018, net revenue at Studio City was US$368.4 million compared to US$277.9 million in the first quarter of 2017. Studio City generated Adjusted EBITDA of US$110.1 million in the first quarter of 2018 compared with Adjusted EBITDA of US$67.8 million in the first quarter of 2017. The year-on-year improvement in Adjusted EBITDA was primarily a result of better performances in all gaming segments.
Rolling chip volume totaled US$6.6 billion for the first quarter of 2018 versus US$3.6 billion in the first quarter of 2017. The rolling chip win rate was 2.7% in the first quarter of 2018 versus 2.4% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.
Mass market table games drop increased to US$825.2 million in the first quarter of 2018 compared with US$656.3 million in the first quarter of 2017. The mass market table games hold percentage was 27.4% in the first quarter of 2018 compared to 26.4% in the first quarter of 2017.
Gaming machine handle for the first quarter of 2018 was US$581.6 million, compared with US$497.4 million in the first quarter of 2017. The gaming machine win rate was 3.7% for both quarters ended March 31, 2018 and 2017.
Total non-gaming revenue at Studio City in the first quarter of 2018 was US$48.2 million, compared with US$50.8 million in the first quarter of 2017.
City of Dreams Manila First Quarter Results
For the quarter ended March 31, 2018, net revenue at City of Dreams Manila was US$142.2 million compared to US$157.4 million in the first quarter of 2017. City of Dreams Manila generated Adjusted EBITDA of US$58.8 million in the first quarter of 2018 compared to US$61.1 million in the comparable period of 2017.
Rolling chip volume totaled US$2.8 billion for the first quarter of 2018 versus US$2.4 billion in the first quarter of 2017. The rolling chip win rate was 2.9% in the first quarter of 2018 versus 3.4% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.
Mass market table games drop increased to US$188.2 million for the first quarter of 2018, compared with US$153.9 million in the first quarter of 2017. The mass market table games hold percentage was 33.8% in the first quarter of 2018 compared to 28.7% in the first quarter of 2017.
Gaming machine handle for the first quarter of 2018 was US$820.9 million, compared with US$729.9 million in the first quarter of 2017. The gaming machine win rate was 5.6% in the first quarter of 2018 versus 6.2% in the first quarter of 2017.
Total non-gaming revenue at City of Dreams Manila in the first quarter of 2018 was US$29.6 million, compared with US$27.6 million in the first quarter of 2017. Other Factors Affecting Earnings
Total net non-operating expenses for the first quarter of 2018 were US$55.9 million, which mainly included interest expenses, net of capitalized interest, of US$58.7 million. We recorded US$11.2 million of capitalized interest during the first quarter of 2018 relating to the development of Morpheus at City of Dreams.
Depreciation and amortization costs of US$129.7 million were recorded in the first 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 March 31, 2018 were US$1.4 billion, including US$5.0 million of bank deposits with original maturities over three months and US$84.4 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the first quarter of 2018, was US$3.5 billion.
Capital expenditures for the first quarter of 2018 were US$89.9 million, which predominantly related to Morpheus and other various projects at City of Dreams.
Dividend Declaration
On May 3, 2018, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.045 per ordinary share (equivalent to US$0.135 per ADS) for the first quarter of 2018 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about May 23, 2018 to our shareholders whose names appear on the register of members of the Company at the close of business on May 14, 2018, 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 2018 financial results on Thursday, May 3, 2018 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 US Toll / International HK Toll HK Toll FreeJapan Toll Japan Toll Free UK Toll FreeAustralia TollAustralia Toll FreePhilippines Toll FreePasscode | 1 866 519 40041 845 675 0437852 3018 6771800 906 60181 3 4503 6012012 092 5376080 8234 664661 290 833 2121 800 411 6231 800 1651 0607MLCO |
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 FreeUS Toll / InternationalHK Toll Free Japan Toll Japan Toll Free Philippines Toll FreeConference ID | 1 855 452 56961 646 254 3697800 963 11781 3 4580 6717012 095 90341 800 1612 01666692958 |
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, 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: [email protected]
For media enquiries, please contact:Chimmy LeungExecutive Director, Corporate Communications Tel: +852 3151 3765Email: [email protected]
| 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, | ||||||||
| 2018 | 2017 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| OPERATING REVENUES | ||||||||
| Casino | $ | 1,153,753 | $ | 1,189,009 | ||||
| Rooms | 67,571 | 66,437 | ||||||
| Food and beverage | 48,248 | 44,826 | ||||||
| Entertainment, retail and other | 43,576 | 52,882 | ||||||
| Gross revenues | 1,313,148 | 1,353,154 | ||||||
| Less: promotional allowances | - | (75,934 | ) | |||||
| Net revenues | 1,313,148 | 1,277,220 | ||||||
| OPERATING COSTS AND EXPENSES | ||||||||
| Casino | (754,049 | ) | (802,733 | ) | ||||
| Rooms | (15,826 | ) | (8,190 | ) | ||||
| Food and beverage | (37,087 | ) | (14,620 | ) | ||||
| Entertainment, retail and other | (22,962 | ) | (22,408 | ) | ||||
| General and administrative | (108,226 | ) | (110,795 | ) | ||||
| Payments to the Philippine Parties | (11,377 | ) | (15,439 | ) | ||||
| Pre-opening costs | (2,348 | ) | (475 | ) | ||||
| Development costs | (3,889 | ) | (1,017 | ) | ||||
| Amortization of gaming subconcession | (14,309 | ) | (14,309 | ) | ||||
| Amortization of land use rights | (5,704 | ) | (5,704 | ) | ||||
| Depreciation and amortization | (109,687 | ) | (117,569 | ) | ||||
| Property charges and other | (6,546 | ) | (5,464 | ) | ||||
| Total operating costs and expenses | (1,092,010 | ) | (1,118,723 | ) | ||||
| OPERATING INCOME | 221,138 | 158,497 | ||||||
| NON-OPERATING INCOME (EXPENSES) | ||||||||
| Interest income | 1,409 | 557 | ||||||
| Interest expenses, net of capitalized interest | (58,736 | ) | (65,843 | ) | ||||
| Other finance costs | (1,377 | ) | (1,501 | ) | ||||
| Foreign exchange gains, net | 4,624 | 8,709 | ||||||
| Other (expenses) income, net | (1,806 | ) | 659 | |||||
| Total non-operating expenses, net | (55,886 | ) | (57,419 | ) | ||||
| INCOME BEFORE INCOME TAX | 165,252 | 101,078 | ||||||
| INCOME TAX (EXPENSE) CREDIT | (1,938 | ) | 1,753 | |||||
| NET INCOME | 163,314 | 102,831 | ||||||
| NET (INCOME) LOSS ATTRIBUTABLE TO | ||||||||
| NONCONTROLLING INTERESTS | (6,681 | ) | 10,615 | |||||
| NET INCOME ATTRIBUTABLE TO | ||||||||
| MELCO RESORTS & ENTERTAINMENT LIMITED | $ | 156,633 | $ | 113,446 | ||||
| NET INCOME ATTRIBUTABLE TO | ||||||||
| MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE: | ||||||||
| Basic | $ | 0.107 | $ | 0.077 | ||||
| Diluted | $ | 0.106 | $ | 0.077 | ||||
| NET INCOME ATTRIBUTABLE TO | ||||||||
| MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS: | ||||||||
| Basic | $ | 0.320 | $ | 0.232 | ||||
| Diluted | $ | 0.317 | $ | 0.231 | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
| USED IN NET INCOME ATTRIBUTABLE TO | ||||||||
| MELCO RESORTS & ENTERTAINMENT LIMITED | ||||||||
| PER SHARE CALCULATION: | ||||||||
| Basic | 1,469,739,909 | 1,465,423,013 | ||||||
| Diluted | 1,483,754,520 | 1,476,279,580 | ||||||
| Note The Company adopted the New Revenue Standard using the modified retrospective method from January 1, 2018. Results for the period beginning 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. | ||||||||
| Melco Resorts & Entertainment Limited and Subsidiaries | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (In thousands of U.S. dollars) | |||||||
| March 31, | December 31, | ||||||
| 2018 | 2017 | ||||||
| (Unaudited) | (Audited) | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 1,328,289 | $ | 1,408,211 | |||
| Investment securities | 94,090 | 89,874 | |||||
| Bank deposits with original maturities over three months | 4,987 | 9,884 | |||||
| Restricted cash | 84,232 | 45,412 | |||||
| Accounts receivable, net | 195,557 | 176,544 | |||||
| Amounts due from affiliated companies | 3,459 | 2,377 | |||||
| Inventories | 34,612 | 34,988 | |||||
| Prepaid expenses and other current assets | 75,404 | 77,503 | |||||
| Total current assets | 1,820,630 | 1,844,793 | |||||
| PROPERTY AND EQUIPMENT, NET | 5,692,165 | 5,730,760 | |||||
| GAMING SUBCONCESSION, NET | 241,774 | 256,083 | |||||
| INTANGIBLE ASSETS | 4,220 | 4,220 | |||||
| GOODWILL | 81,915 | 81,915 | |||||
| LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS | 199,296 | 189,645 | |||||
| RESTRICTED CASH | 130 | 130 | |||||
| DEFERRED TAX ASSETS | 6 | 11 | |||||
| LAND USE RIGHTS, NET | 781,795 | 787,499 | |||||
| TOTAL ASSETS | $ | 8,821,931 | $ | 8,895,056 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable | $ | 18,143 | $ | 16,041 | |||
| Accrued expenses and other current liabilities | 1,442,394 | 1,563,585 | |||||
| Income tax payable | 4,464 | 3,179 | |||||
| Capital lease obligations, due within one year | 32,707 | 33,387 | |||||
| Current portion of long-term debt, net | 194,179 | 51,032 | |||||
| Amounts due to affiliated companies | 12,930 | 16,790 | |||||
| Total current liabilities | 1,704,817 | 1,684,014 | |||||
| LONG-TERM DEBT, NET | 3,347,442 | 3,506,530 | |||||
| OTHER LONG-TERM LIABILITIES | 39,594 | 48,087 | |||||
| DEFERRED TAX LIABILITIES | 54,392 | 53,994 | |||||
| CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR | 254,651 | 265,896 | |||||
| AMOUNTS DUE TO AFFILIATED COMPANIES | 919 | 919 | |||||
| SHAREHOLDERS' EQUITY | |||||||
| Ordinary shares | 14,830 | 14,784 | |||||
| Treasury shares | (117 | ) | (90 | ) | |||
| Additional paid-in capital | 3,677,324 | 3,671,805 | |||||
| Accumulated other comprehensive losses | (28,195 | ) | (26,610 | ) | |||
| Accumulated losses | (694,267 | ) | (772,338 | ) | |||
| Total Melco Resorts & Entertainment Limited shareholders’ equity | 2,969,575 | 2,887,551 | |||||
| Noncontrolling interests | 450,541 | 448,065 | |||||
| Total equity | 3,420,116 | 3,335,616 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 8,821,931 | $ | 8,895,056 | |||
| 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, | ||||||||
| 2018 | 2017 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net Income Attributable to Melco Resorts & Entertainment Limited | $ | 156,633 | $ | 113,446 | ||||
| Pre-opening Costs | 2,348 | 475 | ||||||
| Development Costs | 3,889 | 1,017 | ||||||
| Property Charges and Other | 6,546 | 5,464 | ||||||
| Income Tax Impact on Adjustments | - | (259 | ) | |||||
| Noncontrolling Interests Impact on Adjustments | (962 | ) | 8 | |||||
| Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited | $ | 168,454 | $ | 120,151 | ||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO | ||||||||
| MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE: | ||||||||
| Basic | $ | 0.115 | $ | 0.082 | ||||
| Diluted | $ | 0.113 | $ | 0.081 | ||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO | ||||||||
| MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS: | ||||||||
| Basic | $ | 0.344 | $ | 0.246 | ||||
| Diluted | $ | 0.340 | $ | 0.244 | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING USED IN | ||||||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO | ||||||||
| MELCO RESORTS & ENTERTAINMENT LIMITED | ||||||||
| PER SHARE CALCULATION: | ||||||||
| Basic | 1,469,739,909 | 1,465,423,013 | ||||||
| Diluted | 1,483,754,520 | 1,476,279,580 | ||||||
| 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, 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) | $ | 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 | |||||||||||
| Three Months Ended March 31, 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 (Loss) Income | $ | (2,073 | ) | $ | 4,863 | $ | 164,399 | $ | 21,555 | $ | 23,497 | $ | (53,744 | ) | $ | 158,497 | |||||||||
| Payments to the Philippine Parties | - | - | - | - | 15,439 | - | 15,439 | ||||||||||||||||||
| Land Rent to Belle Corporation | - | - | - | - | 791 | - | 791 | ||||||||||||||||||
| Pre-opening Costs | - | - | 494 | (19 | ) | - | - | 475 | |||||||||||||||||
| Development Costs | - | - | - | - | - | 1,017 | 1,017 | ||||||||||||||||||
| Depreciation and Amortization | 5,689 | 2,187 | 44,779 | 45,976 | 21,498 | 17,453 | 137,582 | ||||||||||||||||||
| Share-based Compensation | 42 | (6 | ) | 526 | 286 | (87 | ) | 826 | 1,587 | ||||||||||||||||
| Property Charges and Other | 57 | 62 | 3,343 | - | - | 2,002 | 5,464 | ||||||||||||||||||
| Adjusted EBITDA | 3,715 | 7,106 | 213,541 | 67,798 | 61,138 | (32,446 | ) | 320,852 | |||||||||||||||||
| Corporate and Other Expenses | - | - | - | - | - | 32,446 | 32,446 | ||||||||||||||||||
| Adjusted Property EBITDA | $ | 3,715 | $ | 7,106 | $ | 213,541 | $ | 67,798 | $ | 61,138 | $ | - | $ | 353,298 | |||||||||||
| 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, | |||||||
| 2018 | 2017 | ||||||
| (Unaudited) | (Unaudited) | ||||||
| Net Income Attributable to Melco Resorts & Entertainment Limited | $ | 156,633 | $ | 113,446 | |||
| Net Income (Loss) Attributable to Noncontrolling Interests | 6,681 | (10,615 | ) | ||||
| Net Income | 163,314 | 102,831 | |||||
| Income Tax Expense (Credit) | 1,938 | (1,753 | ) | ||||
| Interest and Other Non-Operating Expenses, Net | 55,886 | 57,419 | |||||
| Property Charges and Other | 6,546 | 5,464 | |||||
| Share-based Compensation | 4,518 | 1,587 | |||||
| Depreciation and Amortization | 129,700 | 137,582 | |||||
| Development Costs | 3,889 | 1,017 | |||||
| Pre-opening Costs | 2,348 | 475 | |||||
| Land Rent to Belle Corporation | 764 | 791 | |||||
| Payments to the Philippine Parties | 11,377 | 15,439 | |||||
| Adjusted EBITDA | 380,280 | 320,852 | |||||
| Corporate and Other Expenses | 21,563 | 32,446 | |||||
| Adjusted Property EBITDA | $ | 401,843 | $ | 353,298 | |||
| Melco Resorts & Entertainment Limited and Subsidiaries | ||||||||||||
| Supplemental Data Schedule | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
| Room Statistics: | ||||||||||||
| Altira Macau | ||||||||||||
| Average daily rate (3) | $ | 195 | $ | 207 | ||||||||
| Occupancy per available room | 99 | % | 92 | % | ||||||||
| Revenue per available room (4) | $ | 194 | $ | 190 | ||||||||
| City of Dreams | ||||||||||||
| Average daily rate (3) | $ | 204 | $ | 200 | ||||||||
| Occupancy per available room | 98 | % | 97 | % | ||||||||
| Revenue per available room (4) | $ | 201 | $ | 194 | ||||||||
| Studio City | ||||||||||||
| Average daily rate (3) | $ | 139 | $ | 139 | ||||||||
| Occupancy per available room | 100 | % | 99 | % | ||||||||
| Revenue per available room (4) | $ | 139 | $ | 138 | ||||||||
| City of Dreams Manila | ||||||||||||
| Average daily rate (3) | $ | 158 | $ | 154 | ||||||||
| Occupancy per available room | 98 | % | 98 | % | ||||||||
| Revenue per available room (4) | $ | 156 | $ | 150 | ||||||||
| Other Information: | ||||||||||||
| Altira Macau | ||||||||||||
| Average number of table games | 104 | 114 | ||||||||||
| Average number of gaming machines | 122 | 56 | ||||||||||
| Table games win per unit per day (5) | $ | 21,120 | $ | 14,304 | ||||||||
| Gaming machines win per unit per day (6) | $ | 129 | $ | 93 | ||||||||
| City of Dreams | ||||||||||||
| Average number of table games | 478 | 480 | ||||||||||
| Average number of gaming machines | 665 | 839 | ||||||||||
| Table games win per unit per day (5) | $ | 16,616 | $ | 17,003 | ||||||||
| Gaming machines win per unit per day (6) | $ | 833 | $ | 467 | ||||||||
| Studio City | ||||||||||||
| Average number of table games | 294 | 282 | ||||||||||
| Average number of gaming machines | 943 | 972 | ||||||||||
| Table games win per unit per day (5) | $ | 15,296 | $ | 10,179 | ||||||||
| Gaming machines win per unit per day (6) | $ | 250 | $ | 211 | ||||||||
| City of Dreams Manila | ||||||||||||
| Average number of table games | 294 | 270 | ||||||||||
| Average number of gaming machines | 1,836 | 1,773 | ||||||||||
| Table games win per unit per day (5) | $ | 5,419 | $ | 5,193 | ||||||||
| Gaming machines win per unit per day (6) | $ | 280 | $ | 285 | ||||||||
| (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 and commissions | ||||||||||||
| (6) Gaming machines win per unit per day is shown before deducting cost for slot points | ||||||||||||