Form 20-F þ | Form 40-F o |
Yes o | No þ |
MELCO CROWN ENTERTAINMENT LIMITED |
||||
By: | /s/ Geoffrey Davis | |||
Name: | Geoffrey Davis, CFA | |||
Title: | Deputy Chief Financial Officer |
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US Toll Free |
1 866 700 7441 | |||
US Toll/International |
1 617 213 8839 | |||
HK Toll |
852 3002 1672 | |||
HK Toll Free |
800 96 3844 | |||
UK Toll Free |
08082347616 | |||
Australia Toll Free |
1 800 002 971 | |||
Passcode |
MPEL |
US Toll Free |
1 888 286 8010 | |||
US Toll/International |
1 617 801 6888 | |||
Passcode |
82415411 |
5
(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 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 companys
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. generally
accepted accounting principles (GAAP). However, adjusted EBITDA and adjusted property
EBITDA should not be considered as alternatives to operating income as indicators of the
Companys performance, as alternatives to cash flows from operating activities as measures
of liquidity, or as alternatives 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 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, |
6
(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. |
7
8
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
OPERATING REVENUES |
||||||||||||||||
Casino |
$ | 738,827 | $ | 388,977 | $ | 2,550,542 | $ | 1,304,634 | ||||||||
Rooms |
23,971 | 16,358 | 83,718 | 41,215 | ||||||||||||
Food and beverage |
16,726 | 10,946 | 56,679 | 28,180 | ||||||||||||
Entertainment, retail and others |
15,227 | 3,653 | 32,679 | 11,877 | ||||||||||||
Gross revenues |
794,751 | 419,934 | 2,723,618 | 1,385,906 | ||||||||||||
Less: promotional allowances |
(21,002 | ) | (19,717 | ) | (81,642 | ) | (53,033 | ) | ||||||||
Net revenues |
773,749 | 400,217 | 2,641,976 | 1,332,873 | ||||||||||||
OPERATING COSTS AND EXPENSES |
||||||||||||||||
Casino |
(561,999 | ) | (350,231 | ) | (1,949,024 | ) | (1,130,302 | ) | ||||||||
Rooms |
(5,587 | ) | (2,103 | ) | (16,132 | ) | (6,357 | ) | ||||||||
Food and beverage |
(6,344 | ) | (4,564 | ) | (32,898 | ) | (16,853 | ) | ||||||||
Entertainment, retail and others |
(10,535 | ) | (582 | ) | (19,776 | ) | (4,004 | ) | ||||||||
General and administrative |
(56,679 | ) | (42,406 | ) | (199,830 | ) | (130,986 | ) | ||||||||
Pre-opening costs |
(2,449 | ) | 242 | (18,648 | ) | (91,882 | ) | |||||||||
Amortization of gaming subconcession |
(14,309 | ) | (14,309 | ) | (57,237 | ) | (57,237 | ) | ||||||||
Amortization of land use rights |
(4,881 | ) | (4,767 | ) | (19,522 | ) | (18,395 | ) | ||||||||
Depreciation and amortization |
(63,713 | ) | (52,139 | ) | (236,306 | ) | (141,864 | ) | ||||||||
Property charges and others |
| (2,894 | ) | (91 | ) | (7,040 | ) | |||||||||
Total operating costs and expenses |
(726,496 | ) | (473,753 | ) | (2,549,464 | ) | (1,604,920 | ) | ||||||||
OPERATING INCOME (LOSS) |
47,253 | (73,536 | ) | 92,512 | (272,047 | ) | ||||||||||
NON-OPERATING EXPENSES |
||||||||||||||||
Interest expenses, net |
(27,905 | ) | (15,366 | ) | (92,953 | ) | (31,326 | ) | ||||||||
Other finance costs |
(4,050 | ) | (2,568 | ) | (10,491 | ) | (8,227 | ) | ||||||||
Foreign exchange gain, net |
2,760 | 605 | 3,563 | 491 | ||||||||||||
Other (expense) income, net |
(519 | ) | 658 | 1,074 | 2,516 | |||||||||||
Costs associated with debt modification |
(154 | ) | | (3,310 | ) | | ||||||||||
Total non-operating expenses |
(29,868 | ) | (16,671 | ) | (102,117 | ) | (36,546 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAX |
17,385 | (90,207 | ) | (9,605 | ) | (308,593 | ) | |||||||||
INCOME TAX (EXPENSE) CREDIT |
(1,113 | ) | 518 | (920 | ) | 132 | ||||||||||
NET INCOME (LOSS) |
$ | 16,272 | $ | (89,689 | ) | $ | (10,525 | ) | $ | (308,461 | ) | |||||
INCOME (LOSS) PER SHARE: |
||||||||||||||||
Basic |
$ | 0.010 | $ | (0.056 | ) | $ | (0.007 | ) | $ | (0.210 | ) | |||||
Diluted |
$ | 0.010 | $ | (0.056 | ) | $ | (0.007 | ) | $ | (0.210 | ) | |||||
INCOME (LOSS) PER ADS: |
||||||||||||||||
Basic |
$ | 0.031 | $ | (0.169 | ) | $ | (0.020 | ) | $ | (0.631 | ) | |||||
Diluted |
$ | 0.030 | $ | (0.169 | ) | $ | (0.020 | ) | $ | (0.631 | ) | |||||
WEIGHTED AVERAGE SHARES USED IN
INCOME (LOSS) PER SHARE
CALCULATION: |
||||||||||||||||
Basic |
1,596,247,553 | 1,593,360,060 | 1,595,552,022 | 1,465,974,019 | ||||||||||||
Diluted |
1,605,102,993 | 1,593,360,060 | 1,595,552,022 | 1,465,974,019 | ||||||||||||
9
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | (Audited)(1) | |||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 441,923 | $ | 212,598 | ||||
Restricted cash |
167,286 | 236,119 | ||||||
Accounts receivable, net |
259,521 | 262,176 | ||||||
Amounts due from affiliated companies |
1,528 | 1 | ||||||
Income tax receivable |
198 | | ||||||
Inventories |
10,228 | 6,534 | ||||||
Prepaid expenses and other current assets |
19,788 | 19,768 | ||||||
Total current assets |
900,472 | 737,196 | ||||||
PROPERTY AND EQUIPMENT, NET |
2,671,895 | 2,786,646 | ||||||
GAMING SUBCONCESSION, NET |
656,742 | 713,979 | ||||||
INTANGIBLE ASSETS, NET |
4,220 | 4,220 | ||||||
GOODWILL |
81,915 | 81,915 | ||||||
LONG-TERM PREPAYMENT, DEPOSITS AND OTHER ASSETS |
95,629 | 52,365 | ||||||
DEFERRED TAX ASSETS |
25 | | ||||||
DEFERRED FINANCING COSTS |
45,387 | 38,948 | ||||||
LAND USE RIGHTS, NET |
428,155 | 447,576 | ||||||
TOTAL |
$ | 4,884,440 | $ | 4,862,845 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 8,880 | $ | 8,719 | ||||
Accrued expenses and other current liabilities |
462,084 | 460,243 | ||||||
Income tax payable |
934 | 768 | ||||||
Current portion of long-term debt |
202,997 | 44,504 | ||||||
Amounts due to affiliated companies |
673 | 7,384 | ||||||
Amounts due to shareholders |
36 | 25 | ||||||
Total current liabilities |
675,604 | 521,643 | ||||||
LONG-TERM DEBT |
1,521,251 | 1,638,703 | ||||||
OTHER LONG-TERM LIABILITIES |
6,496 | 20,619 | ||||||
DEFERRED TAX LIABILITIES |
18,010 | 17,757 | ||||||
LOANS FROM SHAREHOLDERS |
115,647 | 115,647 | ||||||
LAND USE RIGHT PAYABLE |
24,241 | 39,432 | ||||||
SHAREHOLDERS EQUITY |
||||||||
Ordinary shares |
16,056 | 15,956 | ||||||
Treasury shares |
(84 | ) | (5 | ) | ||||
Additional paid-in capital |
3,095,730 | 3,088,768 | ||||||
Accumulated other comprehensive losses |
(11,345 | ) | (29,034 | ) | ||||
Accumulated losses |
(577,166 | ) | (566,641 | ) | ||||
Total shareholders equity |
2,523,191 | 2,509,044 | ||||||
TOTAL |
$ | 4,884,440 | $ | 4,862,845 | ||||
(1) | The condensed consolidated financial statements for 2009 reflect certain reclassifications,
which have no effect on previously reported net loss, to conform to the current year
presentation. |
10
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Net Income (Loss) |
$ | 16,272 | $ | (89,689 | ) | $ | (10,525 | ) | $ | (308,461 | ) | |||||
Pre-opening Costs |
2,449 | (242 | ) | 18,648 | 91,882 | |||||||||||
Property Charges and Others |
| 2,894 | 91 | 7,040 | ||||||||||||
Adjusted Net Income (Loss) |
$ | 18,721 | $ | (87,037 | ) | $ | 8,214 | $ | (209,539 | ) | ||||||
ADJUSTED NET INCOME (LOSS) PER ADS: |
||||||||||||||||
Basic |
$ | 0.035 | $ | (0.164 | ) | $ | 0.015 | $ | (0.429 | ) | ||||||
Diluted |
$ | 0.035 | $ | (0.164 | ) | $ | 0.015 | $ | (0.429 | ) | ||||||
WEIGHTED AVERAGE SHARES USED IN ADJUSTED
NET INCOME (LOSS) PER SHARE CALCULATION: |
||||||||||||||||
Basic |
1,596,247,553 | 1,593,360,060 | 1,595,552,022 | 1,465,974,019 | ||||||||||||
Diluted |
1,605,102,993 | 1,593,360,060 | 1,604,929,531 | 1,465,974,019 | ||||||||||||
11
Three Months Ended December 31, 2010 | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating Income (Loss) |
$ | 36,930 | $ | 5,318 | $ | 40,278 | $ | (35,273 | ) | $ | 47,253 | |||||||||
Pre-opening Costs |
| | 2,449 | | 2,449 | |||||||||||||||
Depreciation and Amortization |
9,390 | 3,261 | 54,866 | 15,386 | 82,903 | |||||||||||||||
Share-based Compensation |
45 | 31 | 72 | 1,002 | 1,150 | |||||||||||||||
Property Charges and Others |
| | | | | |||||||||||||||
Adjusted EBITDA |
46,365 | 8,610 | 97,665 | (18,885 | ) | 133,755 | ||||||||||||||
Corporate and Other Expenses |
| | | 18,885 | 18,885 | |||||||||||||||
Adjusted Property EBITDA |
$ | 46,365 | $ | 8,610 | $ | 97,665 | $ | | $ | 152,640 | ||||||||||
Three Months Ended December 31, 2009 | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating (Loss) Income |
$ | (27,325 | ) | $ | 1,982 | $ | (19,058 | ) | $ | (29,135 | ) | $ | (73,536 | ) | ||||||
Pre-opening Costs |
| | (287 | ) | 45 | (242 | ) | |||||||||||||
Depreciation and Amortization |
10,413 | 4,212 | 41,197 | 15,393 | 71,215 | |||||||||||||||
Share-based Compensation |
53 | 47 | 349 | 1,889 | 2,338 | |||||||||||||||
Property Charges and Others |
2,890 | | | 4 | 2,894 | |||||||||||||||
Adjusted EBITDA |
(13,969 | ) | 6,241 | 22,201 | (11,804 | ) | 2,669 | |||||||||||||
Corporate and Other Expenses |
| | | 11,804 | 11,804 | |||||||||||||||
Adjusted Property EBITDA |
$ | (13,969 | ) | $ | 6,241 | $ | 22,201 | $ | | $ | 14,473 | |||||||||
12
Three Months Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
(Unaudited) | (Unaudited) | |||||||
Adjusted Property EBITDA |
$ | 152,640 | $ | 14,473 | ||||
Corporate and Other Expenses |
(18,885 | ) | (11,804 | ) | ||||
Adjusted EBITDA |
133,755 | 2,669 | ||||||
Pre-opening Costs |
(2,449 | ) | 242 | |||||
Depreciation and Amortization |
(82,903 | ) | (71,215 | ) | ||||
Share-based Compensation |
(1,150 | ) | (2,338 | ) | ||||
Property Charges and Others |
| (2,894 | ) | |||||
Interest and Other Non-Operating Expenses, Net |
(29,868 | ) | (16,671 | ) | ||||
Income Tax (Expense) Credit |
(1,113 | ) | 518 | |||||
Net Income (Loss) |
$ | 16,272 | $ | (89,689 | ) | |||
13
Year Ended December 31, 2010 | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating Income (Loss) |
$ | 95,127 | $ | 15,072 | $ | 108,638 | $ | (126,325 | ) | $ | 92,512 | |||||||||
Pre-opening Costs |
| | 18,648 | | 18,648 | |||||||||||||||
Depreciation and Amortization |
39,006 | 14,625 | 198,126 | 61,308 | 313,065 | |||||||||||||||
Share-based Compensation |
20 | 122 | 602 | 5,299 | 6,043 | |||||||||||||||
Property Charges and Others |
(474 | ) | 12 | 324 | 229 | 91 | ||||||||||||||
Adjusted EBITDA |
133,679 | 29,831 | 326,338 | (59,489 | ) | 430,359 | ||||||||||||||
Corporate and Other Expenses |
| | | 59,489 | 59,489 | |||||||||||||||
Adjusted Property EBITDA |
$ | 133,679 | $ | 29,831 | $ | 326,338 | $ | | $ | 489,848 | ||||||||||
Year Ended December 31, 2009 | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
Altira Macau | Mocha | City of Dreams | and Other | Total | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Operating (Loss) Income |
$ | (33,064 | ) | $ | 8,610 | $ | (133,320 | ) | $ | (114,273 | ) | $ | (272,047 | ) | ||||||
Pre-opening Costs |
| | 90,122 | 1,760 | 91,882 | |||||||||||||||
Depreciation and Amortization |
41,981 | 16,490 | 97,708 | 61,317 | 217,496 | |||||||||||||||
Share-based Compensation |
616 | 316 | 2,156 | 8,297 | 11,385 | |||||||||||||||
Property Charges and Others |
4,169 | | | 2,871 | 7,040 | |||||||||||||||
Adjusted EBITDA |
13,702 | 25,416 | 56,666 | (40,028 | ) | 55,756 | ||||||||||||||
Corporate and Other Expenses |
| | | 40,028 | 40,028 | |||||||||||||||
Adjusted Property EBITDA |
$ | 13,702 | $ | 25,416 | $ | 56,666 | $ | | $ | 95,784 | ||||||||||
14
Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
(Unaudited) | (Unaudited) | |||||||
Adjusted Property EBITDA |
$ | 489,848 | $ | 95,784 | ||||
Corporate and Other Expenses |
(59,489 | ) | (40,028 | ) | ||||
Adjusted EBITDA |
430,359 | 55,756 | ||||||
Pre-opening Costs |
(18,648 | ) | (91,882 | ) | ||||
Depreciation and Amortization |
(313,065 | ) | (217,496 | ) | ||||
Share-based Compensation |
(6,043 | ) | (11,385 | ) | ||||
Property Charges and Others |
(91 | ) | (7,040 | ) | ||||
Interest and Other Non-Operating Expense,
Net |
(102,117 | ) | (36,546 | ) | ||||
Income Tax (Expense) Credit |
(920 | ) | 132 | |||||
Net Loss |
$ | (10,525 | ) | $ | (308,461 | ) | ||
15
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Room Statistics: |
||||||||||||||||
Altira Macau |
||||||||||||||||
Average daily rate (4) |
$ | 170 | $ | 196 | $ | 166 | $ | 219 | ||||||||
Occupancy per available room |
97 | % | 94 | % | 94 | % | 92 | % | ||||||||
Revenue per available room (5) |
$ | 164 | $ | 184 | $ | 156 | $ | 201 | ||||||||
City of Dreams |
||||||||||||||||
Average daily rate (4) |
$ | 166 | $ | 152 | $ | 157 | $ | 159 | ||||||||
Occupancy per available room |
87 | % | 79 | % | 80 | % | 84 | % | ||||||||
Revenue per available room (5) |
$ | 145 | $ | 120 | $ | 126 | $ | 133 | ||||||||
Other Information: |
||||||||||||||||
Altira Macau |
||||||||||||||||
Average number of table games |
212 | 235 | 212 | 248 | ||||||||||||
Table games win per unit per day (6) |
$ | 18,017 | $ | 9,970 | $ | 15,896 | $ | 11,052 | ||||||||
City of Dreams |
||||||||||||||||
Average number of table games |
406 | 445 | 408 | 463 | ||||||||||||
Average number of gaming machines |
1,300 | 1,255 | 1,301 | 1,280 | ||||||||||||
Table games win per unit per day (6) |
$ | 15,481 | $ | 7,276 | $ | 13,139 | $ | 6,935 | ||||||||
Gaming machines win per unit per day (7) |
$ | 250 | $ | 174 | $ | 219 | $ | 137 |
(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 |
16