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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of May 2008
Commission File Number: 001-33178
MELCO PBL ENTERTAINMENT (MACAU) LIMITED
36th Floor, The Centrium
60 Wyndham Street
Central
Hong Kong
(Address of principal executive offices)
60 Wyndham Street
Central
Hong Kong
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the
registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection
with Rule 12g3-2(b):
82- N/A
MELCO PBL ENTERTAINMENT (MACAU) LIMITED
Form 6-K
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Form 6-K
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MELCO PBL ENTERTAINMENT (MACAU) LIMITED |
||||
| By: | /s/ Simon Dewhurst | |||
| Name: | Simon Dewhurst | |||
| Title: | Executive Vice President and Chief Financial Officer | |||
Date: May 15, 2008
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Exhibit 99.1
FOR IMMEDIATE RELEASE
MPEL First Quarter 2008 Earnings
New
York, May 15, 2008 — Melco PBL Entertainment (Macau)
Limited (NASDAQ: MPEL) ("MPEL''), a developer and
owner of casino gaming and entertainment resort facilities, today reported unaudited financial
results for the first quarter ended March 31, 2008.
Net revenue for the first quarter of 2008 was US$482.9 million, up from US$179.8 million in the
fourth quarter of 2007(1). The revenue increase was driven almost entirely by the
substantial improvement in the operating performance of Crown Macau.
Adjusted EBITDA(2) was US$77.4 million for the first quarter of 2008, up from a loss of
US$1.6 million in the fourth quarter of 2007.
Net income for the quarter was US$43.2 million, or US$0.10 per ADS, compared to a net loss of
US$36.5 million or US$0.09 per ADS in the fourth quarter of 2007. Net income margin based on net revenue
was 9.0% in the quarter under review.
Commentary
Lawrence Ho, Chief Executive Officer and co-Chairman of MPEL, commented, “We are delighted to report our first full quarter of profitability since listing at the end of 2006. The dramatic improvement in the core rolling chip business at Crown Macau in the first quarter of 2008 has been maintained into the second quarter of 2008, and this has led to a rapid acceleration in profitability at both the property level and for MPEL as a whole. We see this as validation of our decision taken over nine months ago to sharpen our focus at Crown Macau on
Lawrence Ho, Chief Executive Officer and co-Chairman of MPEL, commented, “We are delighted to report our first full quarter of profitability since listing at the end of 2006. The dramatic improvement in the core rolling chip business at Crown Macau in the first quarter of 2008 has been maintained into the second quarter of 2008, and this has led to a rapid acceleration in profitability at both the property level and for MPEL as a whole. We see this as validation of our decision taken over nine months ago to sharpen our focus at Crown Macau on
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the rapidly growing rolling chip segment.
“In the span of a few short months, Crown Macau has become the busiest casino in the world in terms
of gaming volume, impressive given the physical size of the property compared with many of its
competitors, and the relatively modest capital investment cost of US$382 million (excluding land
value). This is a testament to the award-winning design of the property and the quality of the
guest experience delivered by our highly-trained staff. We are the only gaming operator in Macau
successfully combining local expertise with International standards. We believe that our insight
into the customer profile and our long established and close
relationships with our approved junket operators provide MPEL with a distinct competitive advantage.
“We experienced a substantial improvement in rolling chip table games hold percentage in the first
quarter of 2008; up from 2.4% in the last quarter of 2007 to 3.1% in the reporting quarter. This
is above our expected long term hold percentage of 2.7%.
“We are encouraged by the success we have enjoyed at Crown Macau, and we are equally excited about
City of Dreams, our ongoing development in Cotai. We held the topping out ceremony on schedule at
the end of the first quarter 2008. We will continue to work diligently over the coming year to
deliver an integrated urban destination resort with compelling entertainment and world-class
amenities, designed to broaden the appeal of Macau to a growing population of visitors.
“We believe the recent announcement by the Macau government regarding the regulation of the gaming
industry is a major positive for the industry and MPEL. We applaud the continued leadership the
government has demonstrated on these important issues, and we are proud that our development pipeline
delivers what Macau needs to become the entertainment capital of Asia. Our accomplishments are
directly attributable not only to our vision and execution, but to the hard work and support of our
staff. Upon completion of City of Dreams, MPEL will
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employ
approximately 16,000 individuals in Macau. We are proud to add to the growing prosperity
of the city and the ongoing improvement in the lives of its citizens.”
Crown Macau 1Q Results
For the quarter ended March 31, 2008, Crown Macau generated Adjusted EBITDA of US$76.7 million (a 16.7% Adjusted EBITDA margin on net revenue) compared with US$4.2 million in the fourth quarter of 2007. Net revenue achieved a near threefold sequential increase to US$459.9 million in the first quarter 2008, as compared with the last quarter of 2007.
For the quarter ended March 31, 2008, Crown Macau generated Adjusted EBITDA of US$76.7 million (a 16.7% Adjusted EBITDA margin on net revenue) compared with US$4.2 million in the fourth quarter of 2007. Net revenue achieved a near threefold sequential increase to US$459.9 million in the first quarter 2008, as compared with the last quarter of 2007.
Rolling chip volume totaled US$19.4 billion for the first quarter of 2008, up from US$8.5 billion
in the preceding quarter. Actual rolling chip table games hold percentage in the first quarter of
2008 (calculated before discounts and commissions) was 3.1%, above our expected level of 2.7% and
substantially above the level of 2.4% achieved in the preceding quarter.
In the mass market table games segment, drop (non rolling chip) totaled US$95.5 million, a 9.6%
volume improvement on the preceding quarter. Mass market table games hold percentage was 15.8% in
the reporting quarter, at the bottom end of our expected range for mass market table games hold
percentage of 16% - 18%. Sequentially, mass market table games hold fell from 17.5% reported in
the preceding period.
Gaming machine handle (volume) was US$42.4 million and gaming machine revenue was US$3.8 million in
the first quarter of 2008, flat on a sequential basis with the preceding quarter.
Total
non-gaming revenue at Crown Macau in the first quarter of 2008 was
US$9.4 million, up US$1.8 million
or 23.7% as compared with the preceding quarter. Occupancy in the
first quarter of 2008 was 92% (78% in the fourth quarter 2007) and the average daily rate was US$233 per occupied room (US$221
in the fourth quarter 2007).
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Mocha Clubs 1Q Results
Net operating revenue from the Mocha Clubs totaled US$22.9 million in the first quarter of 2008, representing a 12.8% increase from the corresponding quarter in 2007, and a 6% sequential improvement over the fourth quarter 2007.
Net operating revenue from the Mocha Clubs totaled US$22.9 million in the first quarter of 2008, representing a 12.8% increase from the corresponding quarter in 2007, and a 6% sequential improvement over the fourth quarter 2007.
Mocha
Clubs generated US$6.5 million of Adjusted EBITDA in the first quarter of 2008, which compares with
US$6.9 million in the first quarter of 2007. First quarter 2008 margins improved from 22.0%
reported in the fourth quarter of 2007 to 28.4% in the current reporting quarter, but remain below
the 34% reported in the first quarter of 2007 due to the alignment of labor costs with the market
during the past year, as well as higher rental expense at several locations.
In the first quarter of 2008, the number of gaming machines in operation at the Mocha Clubs
averaged approximately 1,045 across six locations. Average net win per gaming machine per day
increased to US$241 from US$230, when compared with the same period in 2007, and a significant
improvement over US$215 reported in the last quarter of 2007.
The seventh Mocha Club opened on October 3, 2007 at Mocha Square, a prime location in central
Macau, adding approximately 130 gaming machines. The site was temporarily closed on December 31,
2007 for remedial renovation works and is currently scheduled to resume operations in June 2008.
An expansion of the Hotel Royal Mocha outlet was completed and opened on February 5, 2008.
City of Dreams Update
On April 1, 2008, a major milestone for the development of City of Dreams was reached with the topping out of the main podium superstructure and the Hard Rock hotel. The first phase of City of Dreams is expected to open roughly one year from the topping out ceremony, with the date of the grand opening to be set early next year.
On April 1, 2008, a major milestone for the development of City of Dreams was reached with the topping out of the main podium superstructure and the Hard Rock hotel. The first phase of City of Dreams is expected to open roughly one year from the topping out ceremony, with the date of the grand opening to be set early next year.
Upon completion, City of Dreams will feature a 420,000 square foot casino, numerous restaurants,
retail boutiques, nightclubs, an iconic audio visual attraction, a spectacular Dragone show in a
purpose built theater, as well as the Crown Towers, Hard Rock and twin-towered Grand Hyatt hotels
plus an apartment hotel complex
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which, in aggregate, will deliver a diverse mix of approximately 2,200 guest rooms, suites and
villas.
We estimate that approximately 83% of the hard costs associated with phases one and two of the
project have now been let out to sub-contractors.
Macau Peninsula Project Update
The Company continues to review and develop its plans for the development of the Macau Peninsula project. Those plans are subject to completing the acquisition of the site and certain conditions including meeting applicable Macau regulatory requirements. We do not believe that the government’s recent policy announcements affect this project.
The Company continues to review and develop its plans for the development of the Macau Peninsula project. Those plans are subject to completing the acquisition of the site and certain conditions including meeting applicable Macau regulatory requirements. We do not believe that the government’s recent policy announcements affect this project.
Other Factors Affecting Earnings
Total non-operating income for the first quarter of 2008 was US$0.6 million, which includes US$4.3 million in interest income, less other finance costs of US$3.5 million and US$0.2 million in net foreign exchange losses. Capitalized interest during the first quarter of 2008 totaled US$9.8 million. Pre-opening expenses, which are related to the development of City of Dreams, were US$2.0 million for the first quarter of 2008. Corporate expenses and other costs totaled US$7.0 million in the first quarter 2008. Total stock based compensation costs for MPEL were US$1.3 million in the current quarter. Depreciation and amortization costs of US$32.1 million were booked in the first quarter 2008, of which US$14.3 million relates to the amortization of our gaming sub-concession.
Total non-operating income for the first quarter of 2008 was US$0.6 million, which includes US$4.3 million in interest income, less other finance costs of US$3.5 million and US$0.2 million in net foreign exchange losses. Capitalized interest during the first quarter of 2008 totaled US$9.8 million. Pre-opening expenses, which are related to the development of City of Dreams, were US$2.0 million for the first quarter of 2008. Corporate expenses and other costs totaled US$7.0 million in the first quarter 2008. Total stock based compensation costs for MPEL were US$1.3 million in the current quarter. Depreciation and amortization costs of US$32.1 million were booked in the first quarter 2008, of which US$14.3 million relates to the amortization of our gaming sub-concession.
Financial Position and Capital Expenditure
Cash and cash equivalents as of March 31, 2008, including restricted cash, totaled US$949.1 million. Total outstanding debt at the end of the first quarter was US$615.8 million, consisting of approximately US$500.2 million from the draw down of the first tranche of our US$1.75 billion bank facility and US$115.6 million in loans from MPEL’s two major shareholders. Total debt to shareholders’ equity ratio as of March 31, 2008 was 25.0%.
Cash and cash equivalents as of March 31, 2008, including restricted cash, totaled US$949.1 million. Total outstanding debt at the end of the first quarter was US$615.8 million, consisting of approximately US$500.2 million from the draw down of the first tranche of our US$1.75 billion bank facility and US$115.6 million in loans from MPEL’s two major shareholders. Total debt to shareholders’ equity ratio as of March 31, 2008 was 25.0%.
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Capital expenditures for the first quarter 2008 were US$189.1 million, essentially all of which is
attributable to the development of City of Dreams.
Conference Call Information
MPEL will hold a conference call to discuss its first quarter 2008 financial results on Thursday, May 15, 2008, at 8:30 a.m. Eastern Standard Time (or 8:30 p.m. Hong Kong time). To join the conference call, please use the dial-in details below:
MPEL will hold a conference call to discuss its first quarter 2008 financial results on Thursday, May 15, 2008, at 8:30 a.m. Eastern Standard Time (or 8:30 p.m. Hong Kong time). To join the conference call, please use the dial-in details below:
US Toll Free Number: |
1.866.761.0749 | |
US Toll Number: (for international callers) |
1.617.614.2707 | |
Hong Kong Toll Free Number: |
852.3002.1672 | |
Australia Toll Free Number: |
1.800.002.971 | |
UK Toll Free Number: |
00.800.280.02002 | |
Passcode: |
MPEL |
An audio webcast will also be available at http://www.melco-pbl.com.
A replay of the call will be available on the same day at 10:30 a.m. Eastern Standard Time (or
10:30 p.m. Hong Kong Time) until June 2, 2008. To listen to the replay, please use the dial in
details below:
US Toll Free Number: |
1.888.286.8010 | |
US Toll Number: (for international callers) |
1.617.801.6888 | |
Passcode: |
68666482 |
About Melco PBL Entertainment (Macau) Limited
Melco PBL Entertainment (Macau) Limited is a developer, owner and through its subsidiary, Melco PBL
Gaming (Macau) Limited, an operator of casino gaming and entertainment casino resort facilities.
MPBL Gaming is one of six companies granted concessions or sub-concessions to operate casinos in
Macau. Its first property, Crown Macau (www.crown-macau.com), opened on May 12, 2007. Other
development projects include City of Dreams, an integrated casino resort located in Cotai. MPEL’s
business also includes the Mocha Clubs (www.mochaclubs.com), which feature a total of approximately
1,100 gaming machines in seven locations and comprise the largest non-casino based operations of
electronic gaming machines in Macau. MPEL has entered into an agreement, subject to certain
conditions, to acquire a third development site on the Macau Peninsula. For more information about
MPEL, please visit www.melco-pbl.com.
MPEL has strong support from both of its major shareholders, Melco International Development
Limited (“Melco”) and Crown Limited (“Crown”). Melco is a listed company on the Hong Kong Stock
Exchange and is substantially owned and led by Mr.
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Lawrence Ho, who is also a Co-Chairman and the CEO of MPEL. Crown is a top-50 company listed on the
Australian Stock Exchange and led by Executive Chairman James Packer, who is also a Co-Chairman and
a Director of MPEL.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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. MPEL may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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 MPEL’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: growth of the gaming market and visitation in Macau; finalization of credit facilities to finance construction of projects; the completion of the construction of our hotel casino resort projects; our acquisition and development of the Macau Peninsula site; increased competition and other planned casino hotel and resort projects in Macau and elsewhere in Asia; the completion of infrastructure projects in Macau; government regulation of the casino industry; our ability to raise additional financing; the formal grant of a land concession for the City of Dreams site on terms that are acceptable to us and obtaining approval from the Macau government for an increase in the developable gross floor area of the City of Dreams site; the formal grant of an occupancy permit for City of Dreams; our anticipated growth strategies; and our future business development, results of operations and financial condition. Further information regarding these and other risks is included in our Annual Report on Form 20-F filed on April 9, 2008 and other documents filed with the Securities and Exchange Commission. MPEL does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date of this release, and MPEL undertakes no duty to update such information, except as required under applicable law.
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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. MPEL may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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 MPEL’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: growth of the gaming market and visitation in Macau; finalization of credit facilities to finance construction of projects; the completion of the construction of our hotel casino resort projects; our acquisition and development of the Macau Peninsula site; increased competition and other planned casino hotel and resort projects in Macau and elsewhere in Asia; the completion of infrastructure projects in Macau; government regulation of the casino industry; our ability to raise additional financing; the formal grant of a land concession for the City of Dreams site on terms that are acceptable to us and obtaining approval from the Macau government for an increase in the developable gross floor area of the City of Dreams site; the formal grant of an occupancy permit for City of Dreams; our anticipated growth strategies; and our future business development, results of operations and financial condition. Further information regarding these and other risks is included in our Annual Report on Form 20-F filed on April 9, 2008 and other documents filed with the Securities and Exchange Commission. MPEL does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date of this release, and MPEL undertakes no duty to update such information, except as required under applicable law.
Prior Period Comparative Figures
(1) Crown Macau, which generated in excess of 95% of MPEL’s consolidated revenue in the first quarter of 2008, did not commence operations until the second quarter of 2007. As such, it is management’s opinion that a comparative analysis to first quarter 2007 financial data (which would in accordance with convention be provided), is meaningless. Instead, and where appropriate, management has provided comparative analysis of first quarter 2008 performance on a sequential quarterly basis by reference to the fourth quarter of 2007, which management believes is more useful to the reader.
(1) Crown Macau, which generated in excess of 95% of MPEL’s consolidated revenue in the first quarter of 2008, did not commence operations until the second quarter of 2007. As such, it is management’s opinion that a comparative analysis to first quarter 2007 financial data (which would in accordance with convention be provided), is meaningless. Instead, and where appropriate, management has provided comparative analysis of first quarter 2008 performance on a sequential quarterly basis by reference to the fourth quarter of 2007, which management believes is more useful to the reader.
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Non-GAAP Financial Measure
(2) “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, stock-based compensation costs, and other non-operating income and expenses. Adjusted EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. MPEL also presents Adjusted EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported Adjusted EBITDA as a supplement to financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”). However, Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of MPEL’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, Adjusted EBITDA does not include depreciation and amortization or interest expense and therefore does not reflect current or future capital expenditure or the cost of capital. MPEL compensates for these limitations by using Adjusted EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income (loss), net income (loss), cash flows from operations and cash flow data. MPEL has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted EBITDA. Also, MPEL’s calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
(2) “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, stock-based compensation costs, and other non-operating income and expenses. Adjusted EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. MPEL also presents Adjusted EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported Adjusted EBITDA as a supplement to financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”). However, Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of MPEL’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, Adjusted EBITDA does not include depreciation and amortization or interest expense and therefore does not reflect current or future capital expenditure or the cost of capital. MPEL compensates for these limitations by using Adjusted EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income (loss), net income (loss), cash flows from operations and cash flow data. MPEL has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted EBITDA. Also, MPEL’s calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
MPEL has included schedules in the tables that accompany this release that reconcile operating
income (loss) to Adjusted EBITDA and Adjusted EBITDA to net income (loss).
Contact:
Geoffrey Davis, CFA
Senior Vice President — Corporate Finance
Tel: 212.671.1936
Email: geoffreydavis@melco-pbl.com
Senior Vice President — Corporate Finance
Tel: 212.671.1936
Email: geoffreydavis@melco-pbl.com
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Melco PBL Entertainment (Macau) Limited
Condensed Consolidated Statements of Operations
(In Thousands of U.S. dollars, except share and per share data)
Condensed Consolidated Statements of Operations
(In Thousands of U.S. dollars, except share and per share data)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
| (Unaudited) | (Unaudited) (3) | |||||||
OPERATING REVENUES |
||||||||
Casino |
$ | 479,690 | $ | 20,125 | ||||
Rooms |
4,081 | — | ||||||
Food and beverage |
4,474 | 269 | ||||||
Entertainment, retail and other |
1,277 | — | ||||||
Gross revenues |
489,522 | 20,394 | ||||||
Less: promotional allowances |
(6,654 | ) | (102 | ) | ||||
Net revenues |
482,868 | 20,292 | ||||||
OPERATING COSTS AND EXPENSES |
||||||||
Casino |
(375,630 | ) | (11,205 | ) | ||||
Rooms |
(507 | ) | — | |||||
Food and beverage |
(3,356 | ) | (200 | ) | ||||
Entertainment, retail and other |
(295 | ) | — | |||||
General and administrative |
(26,918 | ) | (8,905 | ) | ||||
Pre-opening costs |
(1,974 | ) | (14,240 | ) | ||||
Amortization of gaming subconcession |
(14,309 | ) | (14,309 | ) | ||||
Amortization of land use rights |
(4,601 | ) | (4,255 | ) | ||||
Depreciation and amortization |
(13,184 | ) | (3,027 | ) | ||||
Total operating costs and expenses |
(440,774 | ) | (56,141 | ) | ||||
OPERATING INCOME (LOSS) |
42,094 | (35,849 | ) | |||||
NON-OPERATING INCOME (EXPENSES) |
||||||||
Interest income, net |
4,289 | 7,440 | ||||||
Other finance costs |
(3,476 | ) | — | |||||
Foreign exchange (loss) gain, net |
(185 | ) | 892 | |||||
Other, net |
15 | 62 | ||||||
Total non-operating income (expenses) |
643 | 8,394 | ||||||
INCOME (LOSS) BEFORE INCOME TAX |
42,737 | (27,455 | ) | |||||
INCOME TAX CREDIT |
496 | 263 | ||||||
NET INCOME (LOSS) |
$ | 43,233 | $ | (27,192 | ) | |||
EARNINGS (LOSS) PER SHARE: |
||||||||
Basic |
$ | 0.033 | $ | (0.023 | ) | |||
Diluted |
$ | 0.033 | $ | (0.023 | ) | |||
EARNINGS (LOSS) PER ADS: |
||||||||
Basic |
$ | 0.098 | $ | (0.068 | ) | |||
Diluted |
$ | 0.098 | $ | (0.068 | ) | |||
| WEIGHTED AVERAGE SHARES USED IN EARNINGS (LOSS) PER SHARE CALCULATION: | ||||||||
Basic |
1,320,938,904 | 1,205,934,896 | ||||||
Diluted |
1,323,027,629 | 1,208,474,806 | ||||||
| (3) | The unaudited condensed consolidated financial statements for 2007 reflect certain reclassifications, which have no effect on previously reported net loss, to conform to current period presentation. |
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Melco PBL Entertainment (Macau) Limited
Condensed Consolidated Balance Sheet
(In Thousands of U.S. dollars)
Condensed Consolidated Balance Sheet
(In Thousands of U.S. dollars)
| March 31, | December 31, | |||||||
| 2008 | 2007 | |||||||
| (Unaudited) | (Audited) | |||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 822,786 | $ | 835,419 | ||||
Restricted cash |
126,273 | 298,983 | ||||||
Accounts receivable |
46,139 | 49,390 | ||||||
Amounts due from affiliated companies |
128 | — | ||||||
Inventories |
1,640 | 1,484 | ||||||
Prepaid expenses and other current assets |
15,905 | 15,715 | ||||||
Total current assets |
1,012,871 | 1,200,991 | ||||||
PROPERTY AND EQUIPMENT, NET |
1,155,852 | 980,241 | ||||||
GAMING SUB-CONCESSION |
814,144 | 828,453 | ||||||
INTANGIBLE ASSETS, NET |
4,220 | 4,220 | ||||||
GOODWILL |
81,915 | 81,915 | ||||||
LONG-TERM PREPAYMENT AND DEPOSITS |
20,009 | 15,832 | ||||||
DEFERRED FINANCING COST |
46,542 | 48,295 | ||||||
DEPOSIT FOR ACQUISITION OF LAND INTEREST |
12,853 | 12,853 | ||||||
LAND USE RIGHTS, NET |
442,867 | 447,468 | ||||||
TOTAL |
$ | 3,591,273 | $ | 3,620,268 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 4,621 | $ | 5,736 | ||||
Accrued expenses and other current liabilities |
399,861 | 468,236 | ||||||
Income tax payable |
1,519 | 1,560 | ||||||
Amounts due to affiliated companies |
3,157 | 6,602 | ||||||
Amounts due to shareholders |
329 | 1,551 | ||||||
Total current liabilities |
409,487 | 483,685 | ||||||
LONG-TERM DEBT |
500,209 | 500,209 | ||||||
OTHER LONG-TERM LIABILITIES |
20,862 | 11,074 | ||||||
DEFERRED TAX LIABILITIES |
20,832 | 21,286 | ||||||
LOANS FROM SHAREHOLDERS |
115,647 | 114,616 | ||||||
LAND USE RIGHTS PAYABLE |
60,857 | 60,857 | ||||||
SHAREHOLDERS’ EQUITY |
||||||||
Ordinary shares |
13,209 | 13,209 | ||||||
Additional paid-in capital |
2,683,408 | 2,682,125 | ||||||
Accumulated other comprehensive losses |
(20,754 | ) | (11,076 | ) | ||||
Accumulated losses |
(212,484 | ) | (255,717 | ) | ||||
Total shareholders’ equity |
2,463,379 | 2,428,541 | ||||||
TOTAL |
$ | 3,591,273 | $ | 3,620,268 | ||||
Table of Contents
Melco PBL Entertainment (Macau) Limited
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(In Thousands of U.S. dollars)
Reconciliation of Operating Income (Loss) to Adjusted EBITDA
(In Thousands of U.S. dollars)
| Three Months Ended March 31, 2008 | ||||||||||||||||
| Corporate | ||||||||||||||||
| Crown | Mocha | and Other | Total | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Operating Income (Loss) |
$ | 66,339 | $ | 3,198 | $ | (27,443 | ) | $ | 42,094 | |||||||
Pre-opening Costs |
— | — | 1,974 | 1,974 | ||||||||||||
Depreciation and Amortization |
10,271 | 3,256 | 18,567 | 32,094 | ||||||||||||
Stock-based Compensation |
80 | 31 | 1,147 | 1,258 | ||||||||||||
Adjusted EBITDA |
$ | 76,690 | $ | 6,485 | $ | (5,755 | ) | $ | 77,420 | |||||||
| Three Months Ended March 31, 2007 | ||||||||||||||||
| Corporate | ||||||||||||||||
| Crown | Mocha | and Other | Total | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Operating (Loss) Income |
$ | (16,675 | ) | $ | 4,253 | $ | (23,427 | ) | $ | (35,849 | ) | |||||
Pre-opening Costs |
13,825 | — | 415 | 14,240 | ||||||||||||
Depreciation and Amortization |
1,574 | 2,656 | 17,361 | 21,591 | ||||||||||||
Stock-based Compensation |
— | — | 1,650 | 1,650 | ||||||||||||
Adjusted EBITDA |
$ | (1,276 | ) | $ | 6,909 | $ | (4,001 | ) | $ | 1,632 | ||||||
Table of Contents
Melco PBL Entertainment (Macau) Limited
Reconciliation of Adjusted EBITDA to Net Income (Loss)
(In Thousands of U.S. dollars)
Reconciliation of Adjusted EBITDA to Net Income (Loss)
(In Thousands of U.S. dollars)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Adjusted EBITDA |
$ | 77,420 | $ | 1,632 | ||||
Pre-opening Costs |
(1,974 | ) | (14,240 | ) | ||||
Depreciation and Amortization |
(32,094 | ) | (21,591 | ) | ||||
Stock-based Compensation |
(1,258 | ) | (1,650 | ) | ||||
Interest and Other Non-Operating Income, Net |
643 | 8,394 | ||||||
Income Tax Credit |
496 | 263 | ||||||
Net Income (Loss) |
$ | 43,233 | $ | (27,192 | ) | |||
Table of Contents
Melco PBL Entertainment (Macau) Limited
Supplemental Data Schedule
Supplemental Data Schedule
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
Crown Macau |
||||||||
Average number of table games |
243 | NA | ||||||
Average number of gaming machines |
240 | NA | ||||||
Period end number of table games |
246 | NA | ||||||
Period end number of gaming machines |
212 | NA | ||||||
Table games win per unit per day (4) |
$ | 28,038 | NA | |||||
Gaming machines win per unit per day (5) |
$ | 174 | NA | |||||
Average daily rate (6) |
$ | 233 | NA | |||||
Occupancy |
92 | % | NA | |||||
Revenue per available room (7) |
$ | 213 | NA | |||||
| (4) | Table games win per unit per day is shown before discounts and commissions | |
| (5) | Gaming machines win per unit per day is shown before deducting cost for slot points | |
| (6) | Average daily rate is calculated by dividing total room revenue by total occupied rooms | |
| (7) | Revenue per available room is calculated by dividing total room revenue by total rooms available |