Form 6-K
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

For the month of November 2012

Commission File Number: 001-33178

 

 

MELCO CROWN ENTERTAINMENT LIMITED

 

 

36th Floor, The Centrium

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  x    Form 40-F  ¨

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  ¨    No  x

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

MELCO CROWN ENTERTAINMENT LIMITED

Form 6–K

TABLE OF CONTENTS

Signature

Exhibit 99.1


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/ Geoffrey Davis

Name:   Geoffrey Davis, CFA
Title:   Chief Financial Officer

Date: November 7, 2012

 

3


Table of Contents

EXHIBIT INDEX

 

Exhibit
No.

 

Description

99.1  

Unaudited Results for The Third Quarter of 2012, dated November 7, 2012

Unaudited Results for The Third Quarter of 2012, dated November 7, 2012

Exhibit 99.1

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

 

LOGO

Melco Crown Entertainment Limited

LOGO

(Incorporated in the Cayman Islands with limited liability)

(SEHK stock code: 6883)

UNAUDITED RESULTS FOR THE THIRD QUARTER OF 2012

This announcement is issued pursuant to Rule 13.09 of the Rules Governing the Listing of the Securities of The Stock Exchange of Hong Kong Limited.

Melco Crown Entertainment Limited (“Melco Crown Entertainment” or “the Company”) (SEHK: 6883) (NASDAQ: MPEL), a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, today released its unaudited financial results for the third quarter of 2012, as part of its regular earnings disclosure practices for the Company’s American depository shares (“ADSs”), which are listed on the NASDAQ Global Select Market in the United States.

These unaudited results have been prepared in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”) – which differ in certain respects from the International Financial Reporting Standards (“IFRS”).

Net revenue for the third quarter of 2012 was US$1,010.8 million, representing a decrease of approximately 4% from US$1,056.0 million for the comparable period in 2011. The decline in net revenue was primarily attributable to lower group-wide rolling chip volumes, partially offset by a significant increase in revenues in the mass market segments at City of Dreams.

Adjusted EBITDA(1) was US$226.4 million for the third quarter of 2012, as compared to Adjusted EBITDA of US$240.3 million in the third quarter of 2011. The 6% year-over-year decline in Adjusted EBITDA in the third quarter of 2012 was driven by lower group-wide rolling chip volumes together with a lower blended rolling chip win rate, partially offset by strong improvements in our mass market table games and gaming machine segments together with our ongoing commitment to control costs.

 

1


On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the third quarter of 2012 was US$104.9 million, or US$0.19 per ADS, compared with net income attributable to Melco Crown Entertainment of US$113.3 million, or US$0.21 per ADS, in the third quarter of 2011. The year-over-year decline in net income was primarily a result of the amortization of land use right at Studio City, development costs for the Philippines project, as well as lower group-wide rolling chip volumes and win rate, partially offset by improvements within the mass market gaming segments and reduced non-operating expenses, including lower net interest costs and one-off listing expenses for the Hong Kong dual listing. The net loss attributable to non-controlling interests during the third quarter of 2012 of US$4.4 million was related to Studio City, as compared to US$2.1 million in the third quarter of 2011.

Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “We have delivered yet another impressive quarter of operating results, with strong year-over-year improvements in operating metrics in our mass market segments at City of Dreams providing us with greater earnings stability, particularly during a period of slowing market growth in the rolling chip segment.

“Altira Macau’s underlying operating performance has stabilized following the implementation of our successful table optimization strategy. We are focused on fully leveraging this unique and luxurious property, ensuring we maximize its strong potential and drive long term value.

“We also continue to make meaningful progress on our pipeline of development opportunities. In relation to Studio City, we have made significant construction progress, with our piling and foundation work nearly completed, and we have now engaged our main contractor on a fixed price contract basis, giving us greater certainty and control over the project’s cost. We also reached a major milestone in relation to the funding for Studio City, with our senior secured credit facilities now in syndication following the recent signing of a commitment letter. We anticipate that our debt financing package, once finalized, together with cash equity contributions from the shareholders of Studio City, will provide us a fully funded project.

“We also recently signed a cooperation agreement regarding the development and operation of an integrated entertainment and casino complex in the Philippines, further solidifying the key terms and conditions of this exciting development. We believe the Philippines market offers a unique opportunity to generate an incremental and diversified earnings stream while also providing us a platform for further expansion throughout Asia, allowing us to capitalize on future opportunities to drive long term shareholder value.

“To ensure we have maximum flexibility as it relates to our funding options, we recently completed a consent solicitation on our existing senior notes which enabled us to, among other things, release an additional US$400 million from the restricted payments basket, giving us the ability to more efficiently use our available cash to fund our impressive development opportunities.

“We believe that Macau will continue to benefit and be supported by long term growth in China. The leisure and tourism industry in Macau is expected to benefit from the anticipated increase in discretionary spending, as China continues its shift to a more consumer-led and focused economy. In light of the anticipated growth in Macau and strong support for this industry from the Macau Government, including those in the form of substantial improvements in infrastructure and a measured and sustainable approach to future growth, our confidence in Macau remains strongly intact.”

 

2


City of Dreams Third Quarter Results

For the third quarter of 2012, net revenue at City of Dreams was US$747.4 million compared to US$687.2 million in the third quarter of 2011. City of Dreams generated Adjusted EBITDA of US$204.0 million in the third quarter of 2012, representing an increase of 20% compared to US$170.5 million in the comparable period of 2011.

The year-over-year improvement in Adjusted EBITDA was primarily a result of strong improvements in the mass market segments, including a 30% year-over-year increase in mass table games gross gaming revenue, partially offset by a decline in rolling chip volumes.

Rolling chip volume for the third quarter of 2012 was US$19.5 billion, representing a decrease of 4% when compared to rolling chip volume of US$20.3 billion for the comparable period of 2011. The rolling chip win rate was 3.2% in the third quarter of 2012 versus 3.1% in the third quarter of 2011. The expected rolling chip win rate range is 2.7%–3.0%.

Mass market table games drop increased 22% to US$889.8 million compared with US$730.8 million in the third quarter of 2011. The mass market table games hold percentage was 27.4% in the third quarter of 2012 compared to 25.5% in the third quarter of 2011. At City of Dreams, we expect our mass market table games hold percentage to range from 25%–30%.

Slot handle for the third quarter of 2012 was US$816.3 million, up 54% from US$530.2 million generated in the quarter ended September 30, 2011.

Total non-gaming revenue at City of Dreams in the third quarter of 2012 was US$63.6 million, an increase of 15% from US$55.1 million in the third quarter of 2011. Occupancy per available room in the third quarter of 2012 was 95%, versus 93% in the third quarter of 2011. The average daily rate (“ADR”) in the third quarter of 2012 was US$180 per occupied room, an increase of 6% when compared with US$170 in the third quarter of 2011.

Altira Macau Third Quarter Results

For the quarter ended September 30, 2012, net revenue at Altira Macau was US$215.7 million compared to US$329.0 million in the third quarter of 2011. Altira Macau generated Adjusted EBITDA of US$29.8 million in the third quarter of 2012 compared with Adjusted EBITDA of US$78.9 million in the third quarter of 2011, a decline of 62%. The decrease in Adjusted EBITDA was driven by a lower rolling chip win rate together with reduced rolling chip volumes.

Rolling chip volume totaled US$11.0 billion in the third quarter of 2012 versus US$13.2 billion in the third quarter of 2011. In the third quarter of 2012, the rolling chip win rate was 2.6%, as compared to 3.2% for the comparable period in 2011. The expected rolling chip win rate range is 2.7%–3.0%.

In the mass market table games segment, drop totaled US$153.8 million in the third quarter of 2012, an increase of 3% from US$149.9 million generated in the comparable period in 2011. The mass market table games hold percentage was 15.8% in the third quarter of 2012 compared with 15.7% in the third quarter of last year. At Altira Macau, we expect our mass market table games hold percentage to range from 15%–17%.

 

3


Total non-gaming revenue at Altira Macau in the third quarter of 2012 was US$8.4 million, up from US$7.9 million in the third quarter of 2011. Occupancy per available room in the third quarter of 2012 was 98%, in-line with the comparable period in 2011. ADR was US$215 per occupied room, compared to US$192 in the third quarter of 2011, an increase of 12%.

Mocha Clubs Third Quarter Results

Net revenue from Mocha Clubs totaled US$35.5 million in the third quarter of 2012, up 13% from US$31.3 million in the third quarter of 2011. Mocha Clubs generated US$9.4 million of Adjusted EBITDA in the third quarter of 2012, an increase of 5% when compared to Adjusted EBITDA of US$8.9 million in the same period in 2011.

The number of gaming machines in operation at Mocha Clubs averaged approximately 2,000 in the third quarter of 2012, compared to approximately 1,600 in the comparable period in 2011. The net win per gaming machine per day was US$188 in the quarter ended September 30, 2012, as compared with US$208 in the comparable period in 2011, a decrease of 9%.

Other Factors Affecting Earnings

Total non-operating expense for the third quarter of 2012 was US$24.9 million, which included US$23.7 million in net interest expense and other finance costs of US$3.4 million. There was US$2.6 million of capitalized interest during the third quarter of 2012. The year-on-year decrease in non-operating expenses of US$12.1 million was predominantly due to one-off listing expenses of US$4.2 million for the Hong Kong dual listing recorded in the third quarter of 2011, as well as a US$6.9 million reduction in net interest expense due to lower interest rate swap charges and a lower margin compared to the same period in 2011.

Depreciation and amortization costs of US$94.1 million were recorded in the third quarter of 2012, of which US$14.3 million was related to the amortization of our gaming sub-concession and US$15.8 million was related to the amortization of land use rights. The year-over-year increase in depreciation and amortization costs is primarily a result of increased amortization of Studio City’s land use rights.

Financial Position and Capital Expenditure

Cash and cash equivalents as of September 30, 2012 totaled US$2.1 billion, including US$364.9 million of restricted cash. Total debt at the end of the third quarter of 2012 was US$2.4 billion, and total net debt to shareholders’ equity as of September 30, 2012 was 7%.

Capital expenditures for the third quarter of 2012 were US$106.9 million, which primarily related to the acquisition of corporate assets and various projects at City of Dreams, as well as design and preliminary costs associated with Studio City.

 

4


Nine Months’ Results

For the nine months ended September 30, 2012, Melco Crown Entertainment reported net revenue of US$2,976.2 million versus US$2,822.5 million in the nine months ended September 30, 2011. The year-over-year increase in net revenue was driven by substantially improved mass table games volumes and blended hold percentages, as well as increased volumes in the gaming machines segment, partially offset by lower group-wide rolling chip volumes.

Adjusted EBITDA for the first nine months of 2012 was US$672.7 million, as compared with an Adjusted EBITDA of US$577.9 million in the first nine months of 2011. The year-over-year improvements in Adjusted EBITDA was primarily attributable to substantially improved mass table games and gaming machine revenues together with strict cost control focus, partially offset by lower group-wide rolling chip revenue.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the nine months of 2012 was US$309.2 million, or US$0.56 per ADS, compared with net income attributable to Melco Crown Entertainment of US$187.1 million, or US$0.35 per ADS, in the comparable period of 2011.

The shareholders and potential investors of Melco Crown Entertainment are advised not to place undue reliance on the unaudited earnings and financial information of the Company for the third quarter of 2012 and are reminded that such financial information presented herein have been prepared in accordance with U.S. GAAP which differ in certain aspects from IFRS and has not been audited. Consequently, the shareholders and potential investors of the Company are advised to exercise caution in dealing in the securities of the Company.

Conference Call Information

Melco Crown Entertainment will hold a conference call to discuss its third quarter 2012 financial results on November 7, 2012 at 8:30 a.m. Eastern Time (9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

 

US Toll Free   1 866 519 4004  
US Toll/International   1 718 354 1231  
HK Toll   852 2475 0994  
HK Toll Free   800 930 346  
UK Toll Free   080 823 46646  
Australia Toll Free   1 800 457 076  
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   1 855 452 5696  
US Toll/International   1 646 254 3697  
HK Toll Free   800 963 117  
Conference ID   63860593  

 

5


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. 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 visitation in Macau, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, and (v) 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 announcement 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 Measures

 

(1) 

“Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, other non-operating income and expenses and net loss attributable to non-controlling interests. “Adjusted property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, corporate and other expenses, other non-operating income and expenses and net loss attributable to non-controlling interests. 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 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. 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 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 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 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 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 GAAP are provided herein immediately following the financial statements included in this announcement.

 

6


(2) 

“Adjusted net income” is net income before pre-opening costs, development costs, property charges and others, change in fair value of interest rate swap agreements, reclassification of accumulated losses of interest rate swap agreements from accumulated other comprehensive losses and loss on extinguishment of debt. Adjusted net income and adjusted net 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 income may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net 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 announcement.

About Melco Crown Entertainment Limited

Melco Crown Entertainment, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) (SEHK: 6883) and its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ: MPEL), 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 focused on the Macau market. Melco Crown Entertainment 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. Melco Crown Entertainment’s 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 is also developing the planned Studio City Project, a large integrated entertainment, retail and gaming resort in Cotai, Macau. For more information about Melco Crown Entertainment, please visit www.melco-crown.com.

Melco Crown Entertainment 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, an Executive Director and the CEO of Melco Crown Entertainment. Crown is a top-50 company listed on the Australian Securities Exchange and led by Executive Chairman Mr. James Packer, who is also Co-Chairman and a Non-executive Director of Melco Crown Entertainment.

 

7


Investment Community, please contact:

Ross Dunwoody

Vice President, Investor Relations

Tel: +853 8868 7575 or +852 2598 3689

Email: rossdunwoody@melco-crown.com

For media enquiry, please contact:

Maggie Ma

Head of Corporate Communications

Tel: +853 8868 3767 or +852 3151 3767

Email: maggiema@melco-crown.com

Macau, November 7, 2012

As of the date of this announcement, the executive director of the Company is Lawrence Yau Lung Ho; the non-executive directors are James Douglas Packer, John Peter Ben Wang, Yuk Man Chung, William Todd Nisbet, and Rowen Bruce Craigie and the independent non-executive directors are James Andrew Charles MacKenzie, Thomas Jefferson Wu, Yiu Wa Alec Tsui, and Robert Wason Mactier.

This announcement is prepared in both English and Chinese and in the event of inconsistency, the English text of this announcement shall prevail over the Chinese text.

 

8


Melco Crown Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands of U.S. dollars, except share and per share data)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2012     2011     2012     2011  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

OPERATING REVENUES

        

Casino

   $ 972,530      $ 1,017,780      $ 2,869,364      $ 2,710,141   

Rooms

     29,379        26,491        86,847        75,814   

Food and beverage

     18,767        15,221        51,463        44,550   

Entertainment, retail and others

     25,571        22,207        68,598        63,386   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross revenues

     1,046,247        1,081,699        3,076,272        2,893,891   

Less: promotional allowances

     (35,415     (25,742     (100,070     (71,392
  

 

 

   

 

 

   

 

 

   

 

 

 

Net revenues

     1,010,832        1,055,957        2,976,202        2,822,499   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING COSTS AND EXPENSES

        

Casino

     (705,967     (733,333     (2,067,665     (2,007,096

Rooms

     (3,669     (4,857     (11,255     (13,881

Food and beverage

     (6,633     (8,470     (20,998     (25,013

Entertainment, retail and others

     (15,133     (14,378     (45,897     (43,536

General and administrative

     (55,518     (57,221     (164,149     (161,535

Pre-opening costs

     (1,551     (207     (4,851     (1,492

Development costs

     (3,345     —          (3,913     (1,110

Amortization of gaming subconcession

     (14,309     (14,309     (42,928     (42,928

Amortization of land use rights

     (15,797     (10,743     (44,115     (20,506

Depreciation and amortization

     (63,966     (65,106     (196,094     (193,242

Property charges and others

     (426     —          (4,042     (1,025
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     (886,314     (908,624     (2,605,907     (2,511,364
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

   $ 124,518      $ 147,333      $ 370,295      $ 311,135   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

9


     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2012     2011     2012     2011  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

NON-OPERATING EXPENSES

        

Interest expenses, net

   $ (23,725   $ (30,656   $ (69,787   $ (84,652

Other finance costs

     (3,368     (3,386     (10,350     (12,067

Reclassification of accumulated losses of interest rate swap agreements from accumulated other comprehensive losses

     —          —          —          (4,310

Change in fair value of interest rate swap agreements

     —          3,294        363        3,294   

Foreign exchange gain (loss), net

     1,710        (2,747     3,349        (2,556

Listing expenses

     —          (4,160     —          (4,160

Other income, net

     510        725        1,644        2,789   

Loss on extinguishment of debt

     —          —          —          (25,193
  

 

 

   

 

 

   

 

 

   

 

 

 

Total non-operating expenses

     (24,873     (36,930     (74,781     (126,855
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAX

     99,645        110,403        295,514        184,280   
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME TAX CREDIT

     823        799        1,865        730   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

     100,468        111,202        297,379        185,010   

NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS

     4,401        2,100        11,843        2,100   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED

   $ 104,869      $ 113,302      $ 309,222      $ 187,110   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:

        

Basic

   $ 0.064      $ 0.071      $ 0.188      $ 0.117   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.063      $ 0.070      $ 0.187      $ 0.116   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2012      2011      2012      2011  
     (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)  

NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS:

           

Basic

   $ 0.191       $ 0.212       $ 0.564       $ 0.351   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.190       $ 0.210       $ 0.560       $ 0.348   
  

 

 

    

 

 

    

 

 

    

 

 

 

WEIGHTED AVERAGE SHARES USED IN NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE CALCULATION:

           

Basic

     1,646,073,794         1,601,261,780         1,644,954,427         1,600,181,191   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

     1,658,032,982         1,615,555,907         1,657,593,494         1,613,038,355   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

11


Melco Crown Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

     September 30,      December 31,  
     2012      2011  
     (Unaudited)      (Audited)  

ASSETS

     

CURRENT ASSETS

     

Cash and cash equivalents

   $ 1,737,132       $ 1,158,024   

Restricted cash

     364,896         —     

Accounts receivable, net

     273,348         306,500   

Amounts due from affiliated companies

     349         1,846   

Amount due from a shareholder

     1         6   

Income tax receivable

     7         —     

Inventories

     15,346         15,258   

Prepaid expenses and other current assets

     33,031         23,882   
  

 

 

    

 

 

 

Total current assets

     2,424,110         1,505,516   
  

 

 

    

 

 

 

PROPERTY AND EQUIPMENT, NET

     2,670,921         2,655,429   

GAMING SUBCONCESSION, NET

     556,577         599,505   

INTANGIBLE ASSETS, NET

     4,220         4,220   

GOODWILL

     81,915         81,915   

LONG-TERM PREPAYMENT, DEPOSITS AND OTHER ASSETS

     70,912         72,858   

RESTRICTED CASH

     —           364,807   

DEFERRED TAX ASSETS

     97         24   

DEFERRED FINANCING COSTS

     33,379         42,738   

LAND USE RIGHTS, NET

     1,005,780         942,968   
  

 

 

    

 

 

 

TOTAL

   $ 6,847,911       $ 6,269,980   
  

 

 

    

 

 

 

 

12


     September 30,     December 31,  
     2012     2011  
     (Unaudited)     (Audited)  

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

CURRENT LIABILITIES

    

Accounts payable

   $ 11,324      $ 12,023   

Accrued expenses and other current liabilities

     766,247        588,719   

Income tax payable

     2,011        1,240   

Current portion of long-term debt

     787,949        —     

Amounts due to affiliated companies

     971        1,137   
  

 

 

   

 

 

 

Total current liabilities

     1,568,502        603,119   
  

 

 

   

 

 

 

LONG-TERM DEBT

     1,580,345        2,325,980   

OTHER LONG-TERM LIABILITIES

     6,168        27,900   

DEFERRED TAX LIABILITIES

     67,158        70,028   

LAND USE RIGHTS PAYABLE

     71,358        55,301   

SHAREHOLDERS’ EQUITY

    

Ordinary shares

     16,581        16,531   

Treasury shares

     (119     (106

Additional paid-in capital

     3,232,566        3,223,274   

Accumulated other comprehensive losses

     (1,014     (1,034

Retained earnings (accumulated losses)

     26,712        (282,510
  

 

 

   

 

 

 

Total Melco Crown Entertainment Limited shareholders’ equity

     3,274,726        2,956,155   

Noncontrolling interests

     279,654        231,497   
  

 

 

   

 

 

 

Total equity

     3,554,380        3,187,652   
  

 

 

   

 

 

 

TOTAL

   $ 6,847,911      $ 6,269,980   
  

 

 

   

 

 

 

 

13


Melco Crown Entertainment Limited and Subsidiaries

Reconciliation of Net Income Attributable to Melco Crown Entertainment Limited to

Adjusted Net Income Attributable to Melco Crown Entertainment Limited

(In thousands of U.S. dollars, except share and per share data)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2012      2011     2012     2011  
     (Unaudited)      (Unaudited)     (Unaudited)     (Unaudited)  

Net Income Attributable to MelcoCrown Entertainment Limited

   $ 104,869       $ 113,302      $ 309,222      $ 187,110   

Pre-opening Costs

     1,551         207        4,851        1,492   

Development Costs

     3,345         —          3,913        1,110   

Property Charges and Others

     426         —          4,042        1,025   

Reclassification of accumulated losses of interest rate swap agreements from accumulated other comprehensive losses

     —           —          —          4,310   

Change in fair value of interest rate swap agreements

     —           (3,294     (363     (3,294

Loss on extinguishment of debt

     —           —          —          25,193   
  

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted Net Income Attributable to MelcoCrown Entertainment Limited

   $ 110,191       $ 110,215      $ 321,665      $ 216,946   
  

 

 

    

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:

         

Basic

   $ 0.067       $ 0.069      $ 0.196      $ 0.136   
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.066       $ 0.068      $ 0.194      $ 0.134   
  

 

 

    

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS:

         

Basic

   $ 0.201       $ 0.206      $ 0.587      $ 0.407   
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.199       $ 0.205      $ 0.582      $ 0.403   
  

 

 

    

 

 

   

 

 

   

 

 

 

WEIGHTED AVERAGE SHARES USED IN ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE CALCULATION:

         

Basic

     1,646,073,794         1,601,261,780        1,644,954,427        1,600,181,191   
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted

     1,658,032,982         1,615,555,907        1,657,593,494        1,613,038,355   
  

 

 

    

 

 

   

 

 

   

 

 

 

 

14


Melco Crown 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 September 30, 2012  
     Altira
Macau
     Mocha      City of
Dreams
     Studio City     Corporate
and Other
    Total  
     (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)     (Unaudited)     (Unaudited)  

Operating Income (Loss)

   $ 21,674       $ 5,865       $ 147,757       $ (11,912   $ (38,866   $ 124,518   

Pre-opening Costs

     —           —           715         836        —          1,551   

Development Costs

     —           —           —           —          3,345        3,345   

Depreciation and Amortization

     8,118         3,224         55,141         10,883        16,706        94,072   

Share-based Compensation

     28         38         150         —          2,254        2,470   

Property Charges and Others

     —           224         202         —          —          426   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     29,820         9,351         203,965         (193     (16,561     226,382   

Corporate and Other Expenses

     —           —           —           —          16,561        16,561   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 29,820       $ 9,351       $ 203,965       $ (193   $ —        $ 242,943   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 
     Three Months Ended September 30, 2011  
     Altira
Macau
     Mocha      City of
Dreams
     Studio City     Corporate
and Other
    Total  
     (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)     (Unaudited)     (Unaudited)  

Operating Income (Loss)

   $ 69,342       $ 6,127       $ 113,581       $ (5,999   $ (35,718   $ 147,333   

Pre-opening Costs

     —           197         10         —          —          207   

Depreciation and Amortization

     9,525         2,554         56,663         5,862        15,554        90,158   

Share-based Compensation

     81         47         215         —          2,218        2,561   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     78,948         8,925         170,469         (137     (17,946     240,259   

Corporate and Other Expenses

     —           —           —           —          17,946        17,946   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 78,948       $ 8,925       $ 170,469       $ (137   $ —        $ 258,205   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

15


Melco Crown Entertainment Limited and Subsidiaries

Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income

Attributable to Melco Crown Entertainment Limited

(In thousands of U.S. dollars)

 

     Three Months Ended
September 30,
 
     2012     2011  
     (Unaudited)     (Unaudited)  

Adjusted Property EBITDA

   $ 242,943      $ 258,205   

Corporate and Other Expenses

     (16,561     (17,946
  

 

 

   

 

 

 

Adjusted EBITDA

     226,382        240,259   

Pre-opening Costs

     (1,551     (207

Development Costs

     (3,345     —     

Depreciation and Amortization

     (94,072     (90,158

Share-based Compensation

     (2,470     (2,561

Property Charges and Others

     (426     —     

Interest and Other Non-Operating Expenses, Net

     (24,873     (36,930

Income Tax Credit

     823        799   
  

 

 

   

 

 

 

Net Income

     100,468        111,202   

Net Loss Attributable to Noncontrolling Interests

     4,401        2,100   
  

 

 

   

 

 

 

Net Income Attributable to Melco Crown
Entertainment Limited

   $ 104,869      $ 113,302   
  

 

 

   

 

 

 

 

16


Melco Crown Entertainment Limited and Subsidiaries

Reconciliation of Operating Income (Loss) to Adjusted EBITDA and

Adjusted Property EBITDA

(In thousands of U.S. dollars)

 

     Nine Months Ended September 30, 2012  
     Altira
Macau
(Unaudited)
     Mocha
(Unaudited)
     City of
Dreams
(Unaudited)
     Studio City
(Unaudited)
    Corporate
and Other
(Unaudited)
    Total
(Unaudited)
 

Operating Income (Loss)

   $ 84,059       $ 17,480       $ 412,344       $ (31,760   $ (111,828   $ 370,295   

Pre-opening Costs

     —           16         2,845         1,990        —          4,851   

Development Costs

     —           —           —           —          3,913        3,913   

Depreciation and Amortization

     26,749         9,730         169,725         29,375        47,558        283,137   

Share-based Compensation

     76         100         376         —          5,950        6,502   

Property Charges and Others

     —           671         957         —          2,414        4,042   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     110,884         27,997         586,247         (395     (51,993     672,740   

Corporate and Other Expenses

     —           —           —           —          51,993        51,993   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 110,884       $ 27,997       $ 586,247       $ (395   $ —        $ 724,733   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 
     Nine Months Ended September 30, 2011  
     Altira
Macau
(Unaudited)
     Mocha
(Unaudited)
     City of
Dreams
(Unaudited)
     Studio City
(Unaudited)
    Corporate
and Other
(Unaudited)
    Total
(Unaudited)
 

Operating Income (Loss)

   $ 164,101       $ 22,112       $ 238,283       $ (5,999   $ (107,362   $ 311,135   

Pre-opening Costs

     35         197         1,260         —          —          1,492   

Development Costs

     —           —           —           —          1,110        1,110   

Depreciation and Amortization

     28,763         7,852         167,690         5,862        46,509        256,676   

Share-based Compensation

     181         128         588         —          5,520        6,417   

Property Charges and Others

     —           25         —           —          1,000        1,025   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     193,080         30,314         407,821         (137     (53,223     577,855   

Corporate and Other Expenses

     —           —           —           —          53,223        53,223   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 193,080       $ 30,314       $ 407,821       $ (137   $ —        $ 631,078   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

17


Melco Crown Entertainment Limited and Subsidiaries

Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income

Attributable to Melco Crown Entertainment Limited

(In thousands of U.S. dollars)

 

     Nine Months Ended  
     September 30,  
     2012     2011  
     (Unaudited)     (Unaudited)  

Adjusted Property EBITDA

   $ 724,733      $ 631,078   

Corporate and Other Expenses

     (51,993     (53,223
  

 

 

   

 

 

 

Adjusted EBITDA

     672,740        577,855   

Pre-opening Costs

     (4,851     (1,492

Development Costs

     (3,913     (1,110

Depreciation and Amortization

     (283,137     (256,676

Share-based Compensation

     (6,502     (6,417

Property Charges and Others

     (4,042     (1,025

Interest and Other Non-Operating Expense, Net

     (74,781     (126,855

Income Tax Credit

     1,865        730   
  

 

 

   

 

 

 

Net Income

     297,379        185,010   

Net Loss Attributable to Noncontrolling Interests

     11,843        2,100   
  

 

 

   

 

 

 

Net Income Attributable to Melco Crown
Entertainment Limited

   $ 309,222      $ 187,110   
  

 

 

   

 

 

 

 

18


Melco Crown Entertainment Limited and Subsidiaries

Supplemental Data Schedule

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2012     2011     2012     2011  

Room Statistics:

        

Altira Macau

        

Average daily rate (3)

   $ 215      $ 192      $ 219      $ 196   

Occupancy per available room

     98     98     97     97

Revenue per available room (4)

   $ 210      $ 188      $ 213      $ 191   

City of Dreams

        

Average daily rate (3)

   $ 180      $ 170      $ 183      $ 170   

Occupancy per available room

     95     93     92     90

Revenue per available room (4)

   $ 171      $ 159      $ 168      $ 154   

Other Information:

        

Altira Macau

        

Average number of table games

     172        200        182        204   

Table games win per unit per day (5)

   $ 19,895      $ 24,621      $ 19,645      $ 22,759   

City of Dreams

        

Average number of table games

     447        424        443        419   

Average number of gaming machines

     1,475        1,435        1,410        1,340   

Table games win per unit per day (5)

   $ 21,094      $ 20,962      $ 20,636      $ 18,907   

Gaming machines win per unit per day (6)

   $ 278      $ 260      $ 305      $ 277   

 

(3) 

Average daily rate is calculated by dividing total room revenue by total occupied rooms

(4) 

Revenue per available room is calculated by dividing total room revenue 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

 

19