Table of Contents
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 July 2010
Commission File Number: 001-33178
MELCO CROWN ENTERTAINMENT 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): 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)(7): o
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
Table of Contents
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MELCO CROWN ENTERTAINMENT LIMITED |
||||
| By: | /s/ Simon Dewhurst | |||
| Name: | Simon Dewhurst | |||
| Title: | Executive Vice President and Chief Financial Officer |
|||
Date: July 28, 2010
Exhibit 99.1
FOR IMMEDIATE RELEASE
Melco Crown Entertainment Announces Second Quarter 2010 Earnings
New York, July 28, 2010 — Melco Crown Entertainment Limited (NASDAQ: MPEL), a developer and owner
of casino gaming and entertainment resort facilities focused on the Macau market, today reported
its unaudited financial results for the second quarter ended June 30, 2010.
For the second quarter of 2010, net revenue was US$573.6 million, representing an increase of
approximately 166% from US$215.8 million for the comparable period ended June 30, 2009. Adjusted
EBITDA‹1› was US$73.4 million for the second quarter of 2010, as compared with an
Adjusted EBITDA loss of US$23.8 million in the second quarter of 2009. The year-over-year
improvements in net revenue and Adjusted EBITDA resulted primarily from the opening of City of
Dreams in June 2009, providing only a limited contribution to the prior year comparable.
The combined rolling chip table games hold percentage (calculated before discounts and commissions)
across City of Dreams and Altira Macau in the second quarter of 2010 was 2.7%. On a theoretical
adjusted basis, using the mid-point in our expected rolling chip hold percentage range of 2.7% to
3.0%, sequential quarterly Adjusted EBITDA improved by 11% from US$80 million in the first quarter
of this year, to US$89 million in the second quarter of this year. The combined mass market (or
non rolling chip) table games hold percentage in the second quarter of 2010 improved further to
21.5%.
On a U.S. GAAP basis, Melco Crown Entertainment recorded a net loss for the second quarter of 2010
of US$30.1 million, or a loss of US$0.06 per ADS, compared with a net loss of US$144.0 million, or
a loss of US$0.30 per ADS, in the second quarter of 2009. The reduction in the net loss resulted
from a significant year-over-year improvement in the operating performance of Altira Macau and from
having a full quarter of earnings contribution from City of Dreams, partially offset by increased
depreciation and amortization expenses and lower capitalized interest expenses following the
opening of City of Dreams, together with certain non-recurring expenses related to the refinancing
of approximately US$600 million of bank debt through the issuance of a high yield bond completed in
the current reporting quarter. The second quarter 2009 net loss was also negatively affected by
non-recurring costs associated with the opening of City of Dreams.
Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment commented, “Good
progress has been made over the past quarter at City of Dreams, as we continue to derive benefits
from the growth in our patron database and as our various brand building initiatives build
momentum.
“Rolling chip volume at City of Dreams increased 24% quarter sequentially and we are pleased with
the continued improvement in the underlying fundamentals of this part of our business.
“We delivered a 9% sequential quarterly increase in mass market table games revenue in the second
quarter of 2010. We are seeing further modest improvement in our mass market business in the third
quarter of this year and target a more marked step-up in mass market gaming volumes in the fourth
quarter of this year on completion of the final planned phase of amenities at City of
Dreams, the highlight of which will be the opening of The House of Dancing Water on
September 17, 2010.
“Altira Macau continues to perform much better under the traditional VIP business model to which we
transitioned late last year. Profitability continues to benefit from the commission cap
implemented last December. A provision of US$9 million was taken in the reported quarter against
an amount due from a former contracting party. This
provision is considered to be non-recurring.”
2
Management Restructuring
Melco Crown Entertainment announces the resignation of Greg Hawkins, President of City of Dreams, after approximately 5 years in Macau. Mr. Ho commented, “On behalf of the entire company, I’d like to extend our
thanks to Greg for his contributions over the years and to wish him well in the next stage of his
career.”
In conjunction with the forthcoming departure of Mr. Hawkins, the Company has undertaken a
comprehensive review of its operating management structure. As a result, Melco Crown Entertainment is also
announcing the implementation, effective next month, of a new operating management structure
organized along functional as opposed to dedicated property responsibilities, to be led by newly
created Co-Chief Operating Officer positions.
Ted Chan, currently the President of Altira Macau, has been promoted to Co-COO, Gaming, overseeing
gaming activities across the entire organization. Mr. Chan has been a pioneer in the
transformation of the gaming industry in Macau in recent years and is uniquely qualified for this
position. He has broad experience across the various customer segments in Macau, reaching back to
2004 when he was the CEO of Mocha Clubs. He is currently recognized as one of the leading
experts in the VIP customer segment in Macau.
Nick Naples has joined Melco Crown Entertainment and has been named Co-COO, Operations. He will be
responsible for all non-gaming operating activities across the entire company. Mr. Naples has deep
experience in luxury hotel and gaming operations and has worked in Macau for the last four years.
Mr. Naples most recently held the position of Consulting Executive Vice President at Sands China
Ltd. and was previously the Chief Operating Officer at Macau Studio City. His prior experience
includes positions with Harrah’s Entertainment, Four Seasons, Ritz-Carlton and Hyatt.
Both Mr. Chan and Mr. Naples will report directly to Mr. Lawrence Ho.
3
Mr. Ho commented, “The time is right to implement a new operating management structure that
recognizes that we have evolved as an organization and reflects our more mature business model.
“This new structure will facilitate a more streamlined approach to managing the operations at our
three properties and will allow our senior executives to be more focused on their functional areas
of responsibility. I am confident that these changes will yield meaningful benefits to our
operations, both in terms of revenue generation and resource efficiency.”
City of Dreams 2Q Results
For the quarter ended June 30, 2010, net revenue at City of Dreams was US$309.3 million and
Adjusted EBITDA was US$42.9 million. Net revenue at City of Dreams in the second quarter of 2009
was US$26.8 million and the Adjusted EBITDA loss was US$12.2 million. The improvements in both net
revenue and Adjusted EBITDA were driven by an improved rolling chip hold percentage in the second
quarter of 2010 versus that in 2009, as well as a full quarter of operations this year.
Rolling chip volume totaled US$12.2 billion for the second quarter of 2010, up from US$1.9 billion
in the second quarter of 2009. Mass market (non rolling chip) table games drop totaled US$483.7
million versus US$100 million in the second quarter of 2009. Slot handle for the quarter ended
June 30, 2010 was US$458.1 million, up from US$80.9 million for the quarter ended June 30, 2009.
Total non-gaming revenue at City of Dreams in the second quarter of 2010 was US$32.1 million, up
from US$4.8 million in the second quarter of 2009. Occupancy per available room in the second
quarter of 2010 was 81% versus 78% in the second quarter of 2009. The average daily rate (ADR) in
the second quarter of 2010 was US$152 per occupied room, which compares with US$176 in the second
quarter of 2009.
4
Altira Macau 2Q Results
For the quarter ended June 30, 2010, net revenue at Altira Macau was US$230.6 million versus
US$159.2 million in the quarter ended June 30, 2009. Altira Macau generated Adjusted EBITDA of
US$36.7 million in the second quarter of 2010 compared with an Adjusted EBITDA loss of US$6.4
million in the second quarter of 2009.
Rolling chip volume totaled US$9.5 billion in the second quarter of 2010 versus US$9.7 billion in
the second quarter of 2009. In the mass market (non rolling chip) table games segment, drop
totaled US$76.5 million in the second quarter of 2010, up from US$73.6 million generated in the
comparable period in 2009.
Total non-gaming revenue at Altira Macau in the second quarter of 2010 was US$7.2 million, down
from US$8.3 million in the second quarter of 2009. Occupancy per available room in the second
quarter of 2010 was 93% and the ADR was US$166 per occupied room. This compares with occupancy and
ADR of 90% and US$232, respectively, in the second quarter of 2009.
Mocha Clubs 2Q Results
Net revenue from Mocha Clubs totaled US$26.9 million in the second quarter of 2010, up from US$23.8
million in the second quarter of 2009.
Mocha Clubs generated US$7.1 million of Adjusted EBITDA in the second quarter of 2010, which
compares with US$6.1 million in the second quarter of 2009.
The number of gaming machines in operation at the Mocha Clubs averaged approximately 1,570 in the
second quarter of 2010, an increase from an average of approximately 1,440 in the second quarter of
2009. The net win per gaming machine per day was US$184 in this period, as compared with US$178 in
the same period in 2009.
5
Other Factors Affecting Earnings
Total non-operating expenses for the second quarter of 2010 were US$22.7 million, which included
US$21.3 million in net interest expense and costs associated with debt modification of US$3.2
million. Capitalized interest during the second quarter of 2010 totaled US$4.5 million.
Depreciation and amortization costs of US$76.0 million were booked in the second quarter of 2010,
of which US$14.3 million was related to the amortization of our gaming sub-concession and US$4.9
million was related to the amortization of land use rights.
Financial Position and Capital Expenditure
Cash and cash equivalents as of June 30, 2010 totaled US$489.5 million, including US$194.3 million
of restricted cash. Total senior debt at the end of the second quarter of 2010 was US$1.831
billion. Total net debt to shareholders’ equity as of June 30, 2010 was 59%.
Capital expenditures for the second quarter of 2010 were US$28.1 million, primarily attributable to
City of Dreams.
Six Month Results
For the six months ending June 30, 2010, Melco Crown Entertainment reported net revenue of US$1.141 billion
versus US$432.3 million in the six months ending June 30, 2009. The year-over-year increase in net
revenue was driven by the opening of City of Dreams in June of 2009.
Adjusted EBITDA for the first six months of 2010 was US$160.3 million,
as compared with an Adjusted EBITDA loss of US$2.5 million in the first six months of 2009. The
year-over-year improvements in net revenue and Adjusted EBITDA were primarily attributable to the opening of City of
Dreams in June 2009 along with a significant improvement in the operating performance of Altira Macau.
Melco Crown Entertainment reported a net loss of US$42.6 million for the first six months of 2010, compared to a
net loss of US$179.3 million for the first six months of 2009. The net loss per ADS for the six
month period ending June 30, 2010 was US$0.08 compared to a net loss per ADS of US$0.39 for the
same period in 2009.
6
Conference Call Information
Melco Crown Entertainment will hold a conference call to discuss its second quarter 2010 financial
results on July 28, 2010 at 9:00 a.m. Eastern Time (9:00 p.m. Hong Kong Time). To join the
conference call, please use the dial-in details below:
US Toll Free
|
1 800 561 2718 | |
US Toll / International
|
1 617 614 3525 | |
HK Toll
|
852 3002 1672 | |
HK Toll Free
|
800 96 3844 | |
UK Toll Free
|
00 800 280 02002 | |
Australia Toll Free
|
1 800 002 971 | |
Passcode
|
MPEL |
An
audio webcast will also be available at www.melco-crown.com.
To access the replay, please use the dial-in details below:
US Toll Free
|
1 888 286 8010 | |||
US Toll / International
|
1 617 801 6888 | |||
Passcode
|
62445453 | |||
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. Melco Crown 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, 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. 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; increased competition and other
planned casino hotel and
7
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;
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 occupancy permits for areas of City of Dreams
undergoing construction and/or development; 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 March 31, 2010 and
other documents filed with the Securities and Exchange Commission. The Company 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 the Company
undertakes no duty to update such information, except as required under applicable law.
Non-GAAP Financial Measure
| (1) | “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization,
pre-opening costs, property charges and other, share-based compensation costs, and other
non-operating income and expenses. “Adjusted property EBITDA” is earnings before interest,
taxes, depreciation, amortization, pre-opening costs, property charges and other,
share-based compensation costs, corporate and other expenses and other non-operating
income and expenses. Adjusted EBITDA and adjusted property EBITDA are 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 and adjusted property 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. The Company also presents adjusted EBITDA and adjusted
property 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 and adjusted
property EBITDA as a supplement to financial measures in accordance with U.S. generally
accepted accounting principles (“GAAP”). However, adjusted EBITDA and adjusted property
EBITDA should not be considered as an alternative to operating income as an indicator of
the Company’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 and adjusted property EBITDA do not include
depreciation and amortization or interest expense and therefore does 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 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. The Company 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 and
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 GAAP are provided herein
immediately following the financial statements included in this press release. |
8
| (2) | “Adjusted net (loss) income” is net (loss) income before pre-opening costs, property
charges and other. Adjusted net (loss) income and adjusted net (loss) income per share
(“EPS”) are presented as supplemental disclosures because management believes that 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 GAAP, as an additional basis for
assessing period-to-period results of our business. Adjusted net (loss) income may be
different from the calculation methods used by other companies and, therefore,
comparability may be limited. Reconciliations of adjusted net (loss) income with the most
comparable financial measures calculated and presented in accordance with GAAP are
provided herein immediately following the financial statements included in this press
release. |
About Melco Crown Entertainment Limited
Melco Crown Entertainment Limited (the “Company”), is a developer, owner and through a Macau
subsidiary which holds a gaming sub-concession, an operator of casino gaming and entertainment
casino resort facilities. The Company currently operates Altira Macau (www.altiramacau.com)
(formerly Crown Macau), a casino hotel located at Taipa, Macau and City of Dreams
(www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. The
Company’s business also includes the Mocha Clubs (www.mochaclubs.com), which feature a total of
approximately 1,500 gaming machines in eight locations and comprise the largest non-casino based
operations of electronic gaming machines in Macau. For more information about the Company, please
visit www.melco-crown.com.
The Company 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. Lawrence Ho, who is Co-Chairman, a Director and
the CEO of the Company. Crown is a top-100 company listed on the Australian Stock Exchange and led
by Executive Chairman Mr. James Packer, who is also Co-Chairman and a Director of the Company.
For additional information, please contact:
Geoffrey Davis, CFA
Senior Vice President — Corporate Finance
Tel: +1 212 671 1936
Email: geoffreydavis@melco-crown.com
Senior Vice President — Corporate Finance
Tel: +1 212 671 1936
Email: geoffreydavis@melco-crown.com
9
Melco Crown Entertainment 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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (Unaudited) | (Unaudited)(3) | (Unaudited) | (Unaudited)(3) | |||||||||||||
OPERATING REVENUES |
||||||||||||||||
Casino |
$ | 555,571 | $ | 211,408 | $ | 1,104,839 | $ | 424,409 | ||||||||
Rooms |
20,325 | 6,997 | 39,335 | 11,448 | ||||||||||||
Food and beverage |
14,201 | 4,817 | 27,406 | 8,391 | ||||||||||||
Entertainment, retail and others |
5,391 | 1,508 | 10,761 | 3,831 | ||||||||||||
Gross revenues |
595,488 | 224,730 | 1,182,341 | 448,079 | ||||||||||||
Less: promotional allowances |
(21,848 | ) | (8,893 | ) | (41,096 | ) | (15,751 | ) | ||||||||
Net revenues |
573,640 | 215,837 | 1,141,245 | 432,328 | ||||||||||||
OPERATING COSTS AND EXPENSES |
||||||||||||||||
Casino |
(442,925 | ) | (206,602 | ) | (865,830 | ) | (383,127 | ) | ||||||||
Rooms |
(3,455 | ) | (1,473 | ) | (6,767 | ) | (2,060 | ) | ||||||||
Food and beverage |
(5,841 | ) | (3,787 | ) | (15,330 | ) | (6,512 | ) | ||||||||
Entertainment, retail and others |
(2,047 | ) | (835 | ) | (4,143 | ) | (1,014 | ) | ||||||||
General and administrative |
(47,377 | ) | (30,151 | ) | (91,349 | ) | (48,352 | ) | ||||||||
Pre-opening costs |
(2,910 | ) | (61,277 | ) | (6,982 | ) | (79,563 | ) | ||||||||
Amortization of gaming subconcession |
(14,310 | ) | (14,310 | ) | (28,619 | ) | (28,619 | ) | ||||||||
Amortization of land use rights |
(4,880 | ) | (4,542 | ) | (9,760 | ) | (9,085 | ) | ||||||||
Depreciation and amortization |
(56,824 | ) | (29,128 | ) | (113,733 | ) | (43,837 | ) | ||||||||
Property charges and others |
(474 | ) | (4,134 | ) | 34 | (4,134 | ) | |||||||||
Total operating costs and expenses |
(581,043 | ) | (356,239 | ) | (1,142,479 | ) | (606,303 | ) | ||||||||
OPERATING LOSS |
(7,403 | ) | (140,402 | ) | (1,234 | ) | (173,975 | ) | ||||||||
NON-OPERATING EXPENSES |
||||||||||||||||
Interest expenses, net |
(21,283 | ) | (3,851 | ) | (36,766 | ) | (3,730 | ) | ||||||||
Other finance costs |
780 | (1,424 | ) | (2,620 | ) | (2,620 | ) | |||||||||
Foreign exchange gain, net |
428 | 628 | 17 | 175 | ||||||||||||
Other income, net |
551 | 1,000 | 1,041 | 1,000 | ||||||||||||
Costs associated with debt modification |
(3,156 | ) | — | (3,156 | ) | — | ||||||||||
Total non-operating expenses |
(22,680 | ) | (3,647 | ) | (41,484 | ) | (5,175 | ) | ||||||||
LOSS BEFORE INCOME TAX |
(30,083 | ) | (144,049 | ) | (42,718 | ) | (179,150 | ) | ||||||||
INCOME TAX (EXPENSE) CREDIT |
(18 | ) | 88 | 143 | (134 | ) | ||||||||||
NET LOSS |
$ | (30,101 | ) | $ | (143,961 | ) | $ | (42,575 | ) | $ | (179,284 | ) | ||||
LOSS PER SHARE: |
||||||||||||||||
Basic and diluted |
$ | (0.019 | ) | $ | (0.101 | ) | $ | (0.027 | ) | $ | (0.131 | ) | ||||
LOSS PER ADS: |
||||||||||||||||
Basic and diluted |
$ | (0.057 | ) | $ | (0.304 | ) | $ | (0.080 | ) | $ | (0.392 | ) | ||||
WEIGHTED AVERAGE SHARES USED IN LOSS
PER SHARE CALCULATION: |
||||||||||||||||
Basic and diluted |
1,595,385,813 | 1,418,841,637 | 1,595,281,416 | 1,370,943,132 | ||||||||||||
| (3) | The unaudited condensed consolidated financial statements for 2009 reflect certain
reclassifications, which have no effect on previously reported net loss, to conform to current
period presentation. |
10
Melco Crown Entertainment Limited
Condensed Consolidated Balance Sheets
(In Thousands of U.S. dollars)
Condensed Consolidated Balance Sheets
(In Thousands of U.S. dollars)
| June 30, | December 31, | |||||||
| 2010 | 2009 | |||||||
| (Unaudited) | (Audited) | |||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 295,232 | $ | 212,598 | ||||
Restricted cash |
194,274 | 236,119 | ||||||
Accounts receivable, net |
327,109 | 299,700 | ||||||
Amounts due from an affiliated company |
— | 1 | ||||||
Amounts due from a shareholder |
8 | — | ||||||
Inventories |
7,881 | 6,534 | ||||||
Prepaid expenses and other current assets |
19,623 | 19,768 | ||||||
Total current assets |
844,127 | 774,720 | ||||||
PROPERTY AND EQUIPMENT, NET |
2,736,580 | 2,786,646 | ||||||
GAMING SUBCONCESSION, NET |
685,360 | 713,979 | ||||||
INTANGIBLE ASSETS, NET |
4,220 | 4,220 | ||||||
GOODWILL |
81,915 | 81,915 | ||||||
LONG-TERM PREPAYMENT AND DEPOSITS |
67,195 | 52,365 | ||||||
DEFERRED TAX ASSETS |
171 | — | ||||||
DEFERRED FINANCING COST |
52,389 | 38,948 | ||||||
LAND USE RIGHTS, NET |
437,816 | 447,576 | ||||||
TOTAL |
$ | 4,909,773 | $ | 4,900,369 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 9,273 | $ | 8,719 | ||||
Accrued expenses and other current liabilities |
402,995 | 497,767 | ||||||
Income tax payable |
989 | 768 | ||||||
Current portion of long-term debt |
130,873 | 44,504 | ||||||
Amounts due to affiliated companies |
3,009 | 7,384 | ||||||
Amounts due to shareholders |
11 | 25 | ||||||
Total current liabilities |
547,150 | 559,167 | ||||||
LONG-TERM DEBT |
1,700,376 | 1,638,703 | ||||||
OTHER LONG-TERM LIABILITIES |
18,715 | 20,619 | ||||||
DEFERRED TAX LIABILITIES |
17,430 | 17,757 | ||||||
LOANS FROM SHAREHOLDERS |
115,647 | 115,647 | ||||||
LAND USE RIGHT PAYABLE |
31,930 | 39,432 | ||||||
SHAREHOLDERS’ EQUITY |
||||||||
Ordinary shares |
15,968 | 15,956 | ||||||
Treasury shares |
(14 | ) | (5 | ) | ||||
Additional paid-in capital |
3,091,268 | 3,088,768 | ||||||
Accumulated other comprehensive losses |
(19,481 | ) | (29,034 | ) | ||||
Accumulated losses |
(609,216 | ) | (566,641 | ) | ||||
Total shareholders’ equity |
2,478,525 | 2,509,044 | ||||||
TOTAL |
$ | 4,909,773 | $ | 4,900,369 | ||||
11
Melco Crown Entertainment Limited
Reconciliation of Net Loss to Adjusted Net Loss
(In Thousands of U.S. dollars, except share and per share data)
Reconciliation of Net Loss to Adjusted Net Loss
(In Thousands of U.S. dollars, except share and per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Net Loss |
$ | (30,101 | ) | $ | (143,961 | ) | $ | (42,575 | ) | $ | (179,284 | ) | ||||
Pre-opening Costs |
2,910 | 61,277 | 6,982 | 79,563 | ||||||||||||
Property Charges and Others |
474 | 4,134 | (34 | ) | 4,134 | |||||||||||
Adjusted Net Loss |
$ | (26,717 | ) | $ | (78,550 | ) | $ | (35,627 | ) | $ | (95,587 | ) | ||||
ADJUSTED NET LOSS PER ADS: |
||||||||||||||||
Basic and diluted |
$ | (0.050 | ) | $ | (0.166 | ) | $ | (0.067 | ) | $ | (0.209 | ) | ||||
12
Melco Crown Entertainment Limited
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In Thousands of U.S. dollars)
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In Thousands of U.S. dollars)
| Three Months Ended June 30, 2010 | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating Income (Loss) |
$ | 26,745 | $ | 3,262 | $ | (7,531 | ) | $ | (29,879 | ) | $ | (7,403 | ) | |||||||
Pre-opening Costs |
— | — | 2,910 | — | 2,910 | |||||||||||||||
Depreciation and Amortization |
9,881 | 3,838 | 47,015 | 15,280 | 76,014 | |||||||||||||||
Stock-based Compensation |
15 | 31 | 191 | 1,160 | 1,397 | |||||||||||||||
Property Charges and Others |
34 | 12 | 324 | 104 | 474 | |||||||||||||||
Adjusted EBITDA |
36,675 | 7,143 | 42,909 | (13,335 | ) | 73,392 | ||||||||||||||
Corporate and Other Expenses |
— | — | — | 13,335 | 13,335 | |||||||||||||||
Adjusted Property EBITDA |
$ | 36,675 | $ | 7,143 | $ | 42,909 | $ | — | $ | 86,727 | ||||||||||
| Three Months Ended June 30, 2009 | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating (Loss) Income |
$ | (18,345 | ) | $ | 1,878 | $ | (91,715 | ) | $ | (32,220 | ) | $ | (140,402 | ) | ||||||
Pre-opening Costs |
— | — | 60,823 | 454 | 61,277 | |||||||||||||||
Depreciation and Amortization |
10,466 | 4,155 | 18,047 | 15,312 | 47,980 | |||||||||||||||
Stock-based Compensation |
190 | 86 | 666 | 2,242 | 3,184 | |||||||||||||||
Property Charges and Others |
1,279 | — | — | 2,855 | 4,134 | |||||||||||||||
Adjusted EBITDA |
(6,410 | ) | 6,119 | (12,179 | ) | (11,357 | ) | (23,827 | ) | |||||||||||
Corporate and Other Expenses |
— | — | — | 11,357 | 11,357 | |||||||||||||||
Adjusted Property EBITDA |
$ | (6,410 | ) | $ | 6,119 | $ | (12,179 | ) | $ | — | $ | (12,470 | ) | |||||||
13
Melco Crown Entertainment Limited
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Loss
(In Thousands of U.S. dollars)
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Loss
(In Thousands of U.S. dollars)
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2010 | 2009 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Adjusted Property EBITDA |
$ | 86,727 | $ | (12,470 | ) | |||
Corporate and Other Expenses |
(13,335 | ) | (11,357 | ) | ||||
Adjusted EBITDA |
73,392 | (23,827 | ) | |||||
Pre-opening Costs |
(2,910 | ) | (61,277 | ) | ||||
Depreciation and Amortization |
(76,014 | ) | (47,980 | ) | ||||
Stock-based Compensation |
(1,397 | ) | (3,184 | ) | ||||
Property Charges and Others |
(474 | ) | (4,134 | ) | ||||
Interest and Other Non-Operating Expenses, Net |
(22,680 | ) | (3,647 | ) | ||||
Income Tax (Expense) Credit |
(18 | ) | 88 | |||||
Net Loss |
$ | (30,101 | ) | $ | (143,961 | ) | ||
14
Melco Crown Entertainment Limited
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In Thousands of U.S. dollars)
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In Thousands of U.S. dollars)
| Six Months Ended June 30, 2010 | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating Income (Loss) |
$ | 38,942 | $ | 5,576 | $ | 12,738 | $ | (58,490 | ) | $ | (1,234 | ) | ||||||||
Pre-opening Costs |
— | — | 6,982 | — | 6,982 | |||||||||||||||
Depreciation and Amortization |
20,104 | 7,968 | 93,414 | 30,626 | 152,112 | |||||||||||||||
Stock-based Compensation |
(71 | ) | 60 | 349 | 2,165 | 2,503 | ||||||||||||||
Property Charges and Others |
(474 | ) | 12 | 324 | 104 | (34 | ) | |||||||||||||
Adjusted EBITDA |
58,501 | 13,616 | 113,807 | (25,595 | ) | 160,329 | ||||||||||||||
Corporate and Other Expenses |
— | — | — | 25,595 | 25,595 | |||||||||||||||
Adjusted Property EBITDA |
$ | 58,501 | $ | 13,616 | $ | 113,807 | $ | — | $ | 185,924 | ||||||||||
| Six Months Ended June 30, 2009 | ||||||||||||||||||||
| Corporate | ||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating (Loss) Income |
$ | (9,411 | ) | $ | 4,519 | $ | (113,321 | ) | $ | (55,762 | ) | $ | (173,975 | ) | ||||||
Pre-opening Costs |
— | — | 78,383 | 1,180 | 79,563 | |||||||||||||||
Depreciation and Amortization |
21,471 | 8,188 | 21,378 | 30,504 | 81,541 | |||||||||||||||
Stock-based Compensation |
457 | 186 | 1,381 | 4,176 | 6,200 | |||||||||||||||
Property Charges and Others |
1,279 | — | — | 2,855 | 4,134 | |||||||||||||||
Adjusted EBITDA |
13,796 | 12,893 | (12,179 | ) | (17,047 | ) | (2,537 | ) | ||||||||||||
Corporate and Other Expenses |
— | — | — | 17,047 | 17,047 | |||||||||||||||
Adjusted EBITDA |
$ | 13,796 | $ | 12,893 | $ | (12,179 | ) | $ | — | $ | 14,510 | |||||||||
15
Melco Crown Entertainment Limited
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Loss
(In Thousands of U.S. dollars)
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Loss
(In Thousands of U.S. dollars)
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2010 | 2009 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Adjusted Property EBITDA |
$ | 185,924 | $ | 14,510 | ||||
Corporate and Other Expenses |
(25,595 | ) | (17,047 | ) | ||||
Adjusted EBITDA |
160,329 | (2,537 | ) | |||||
Pre-opening Costs |
(6,982 | ) | (79,563 | ) | ||||
Depreciation and Amortization |
(152,112 | ) | (81,541 | ) | ||||
Stock-based Compensation |
(2,503 | ) | (6,200 | ) | ||||
Property Charges and Others |
34 | (4,134 | ) | |||||
Interest and Other Non-Operating Expense, Net |
(41,484 | ) | (5,175 | ) | ||||
Income Tax Credit (Expense) |
143 | (134 | ) | |||||
Net Loss |
$ | (42,575 | ) | $ | (179,284 | ) | ||
16
Melco Crown Entertainment Limited
Supplemental Data Schedule
Supplemental Data Schedule
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Room Statistics: |
||||||||||||||||
Altira Macau |
||||||||||||||||
Average daily rate (4) |
$ | 166 | $ | 232 | $ | 166 | $ | 233 | ||||||||
Occupancy per available room |
93 | % | 90 | % | 92 | % | 90 | % | ||||||||
Revenue per available room (5) |
$ | 153 | $ | 210 | $ | 153 | $ | 209 | ||||||||
City of Dreams |
||||||||||||||||
Average daily rate (4) |
$ | 152 | $ | 176 | $ | 152 | $ | 176 | ||||||||
Occupancy per available room |
81 | % | 78 | % | 78 | % | 78 | % | ||||||||
Revenue per available room (5) |
$ | 123 | $ | 138 | $ | 118 | $ | 138 | ||||||||
Other Information: |
||||||||||||||||
Altira Macau |
||||||||||||||||
Average number of table games |
212 | 252 | 214 | 253 | ||||||||||||
Table games win per unit per day (6) |
$ | 16,590 | $ | 10,808 | $ | 15,647 | $ | 11,181 | ||||||||
City of Dreams |
||||||||||||||||
Average number of table games |
412 | 503 | 410 | 503 | ||||||||||||
Average number of gaming machines |
1,317 | 1,320 | 1,311 | 1,320 | ||||||||||||
Table games win per unit per day (6) |
$ | 10,257 | $ | 2,095 | $ | 10,451 | $ | 2,095 | ||||||||
Gaming machines win per unit per day (7) |
$ | 224 | $ | 117 | $ | 206 | $ | 117 | ||||||||
| (4) | Average daily rate is
calculated by dividing total room revenue by total occupied rooms. |
|
| (5) | Revenue per available room
is calculated by dividing total room revenue by total rooms available. |
|
| (6) | Table games win per unit per
day is shown before discounts and commissions. |
|
| (7) | Gaming machines win per unit
per day is shown before deducting cost for slot points. |
17