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 May 2017

Commission File Number: 001-33178

 

 

MELCO RESORTS & 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  ☒    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  ☒

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 RESORTS & 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 RESORTS & ENTERTAINMENT LIMITED
By:  

/s/ Geoffrey Davis

Name:   Geoffrey Davis, CFA
Title:   Chief Financial Officer

Date: May 4, 2017

 

3


Table of Contents

EXHIBIT INDEX

 

Exhibit No.

 

Description

Exhibit 99.1

 

Unaudited Results for First Quarter of 2017 and Quarterly Dividend Declaration

Unaudited Results for First Quarter of 2017 and Quarterly Dividend Declaration

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Melco Announces Unaudited First Quarter 2017 Earnings and Declares Quarterly Dividend

Macau, Thursday, May 4, 2017 – Melco Resorts & Entertainment Limited (Nasdaq: MLCO), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia, today reported its unaudited financial results for the first quarter of 2017.

Net revenue for the first quarter of 2017 was US$1,277.2 million, representing an increase of approximately 16% from US$1,103.6 million for the comparable period in 2016. The increase in net revenue was primarily attributable to improved group-wide rolling chip and mass market table games revenues.

On a U.S. GAAP basis, operating income for the first quarter of 2017 was US$158.5 million, compared with operating income of US$65.8 million in the first quarter of 2016, representing an increase of 141%.

Adjusted property EBITDA(1) was US$353.3 million for the first quarter of 2017, as compared to Adjusted property EBITDA of US$248.8 million in the first quarter of 2016, representing an increase of 42%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to better performance in group-wide rolling chip and mass market table games segments.

On a U.S. GAAP basis, net income attributable to Melco Resorts & Entertainment Limited for the first quarter of 2017 was US$113.4 million, or US$0.23 per ADS, compared with net income attributable to Melco Resorts & Entertainment Limited of US$39.8 million, or US$0.07 per ADS, in the first quarter of 2016. The net loss attributable to noncontrolling interests during the first quarter of 2017 of US$10.6 million was related to Studio City and City of Dreams Manila.

 

LOGO

 

1


Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “In the first quarter of 2017, we delivered a strong set of results as highlighted by a 42% year-on-year increase in group-wide Adjusted property EBITDA, driven by expanding revenues across both Macau and the Philippines.

“City of Dreams delivered Adjusted property EBITDA of approximately US$214 million, a sequential increase of over 13% compared to the prior quarter, despite an increase in supply in Macau. We recently announced a range of exciting enhancements to City of Dreams, our flagship integrated resort in Macau, which we believe will help us continue to be one of the leaders of the market in the premium segments in Macau.

“We will replace the Hard Rock hotel brand at City of Dreams with a temporary hotel brand, “The Countdown”, beginning in July 2017. The Countdown Hotel will operate until March 31, 2018, at which time we will open Morpheus, an approximately 780 room, luxury hotel that will change the landscape in Macau with what we believe is a truly iconic design. Upon the opening of Morpheus, The Countdown will be rebranded and redeveloped into a new hotel concept which we believe will enhance the integrated resort’s premium positioning.

“Studio City generated a year-over-year increase in Adjusted property EBITDA of approximately 207%, driven by a 39% year-over-year increase in mass table games revenue and contribution from the rolling chip operations which continues to ramp up following its introduction in November 2016.

“City of Dreams Manila delivered a fifth quarter of record Adjusted property EBITDA as a result of improvements across all gaming segments. Our investment in the Philippines gaming market provides our company with ongoing diversification of earnings and has enabled us to participate in, and contribute to, one of the world’s fastest growing gaming and tourism markets. Our entry into the Philippine gaming market highlights our dedication to investing in development opportunities that create long term value for our shareholders.

“Early this year, we received shareholder approval to change our company’s name to Melco Resorts & Entertainment Limited, reflecting a corporate identity which is more closely aligned to our long term vision of building the world’s leading luxury gaming, entertainment and hospitality company.”

 

2


City of Dreams First Quarter Results

For the quarter ended March 31, 2017, net revenue at City of Dreams was US$693.2 million compared to US$678.6 million in the first quarter of 2016. City of Dreams generated Adjusted EBITDA of US$213.5 million in the first quarter of 2017, representing an increase of 4% compared to US$205.6 million in the comparable period of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of greater rolling chip gross gaming revenues and increased non-gaming revenue.

Rolling chip volume totaled US$12.6 billion for the first quarter of 2017 versus US$9.8 billion in the first quarter of 2016. The rolling chip win rate was 2.7% in the first quarter of 2017 versus 3.2% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop decreased to US$1,059.8 million compared with US$1,073.5 million in the first quarter of 2016. The mass market table games hold percentage was 36.9% in the first quarter of 2017 compared to 36.7% in the first quarter of 2016.

Gaming machine handle for the first quarter of 2017 was US$1,025.9 million, compared with US$1,044.5 million in the first quarter of 2016. The gaming machine win rate was 3.4% for both quarters ended March 31, 2017 and 2016.

Total non-gaming revenue at City of Dreams in the first quarter of 2017 was US$77.8 million, compared with US$62.0 million in the first quarter of 2016.

Altira Macau First Quarter Results

For the quarter ended March 31, 2017, net revenue at Altira Macau was US$109.1 million compared to US$108.4 million in the first quarter of 2016. Altira Macau generated Adjusted EBITDA of US$3.7 million in the first quarter of 2017 compared with negative Adjusted EBITDA of US$14.0 million in the first quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of a lower provision for doubtful debt.

Rolling chip volume totaled US$4.1 billion in the first quarter of 2017 versus US$4.6 billion in the first quarter of 2016. The rolling chip win rate was 3.1% in the first quarter of 2017 versus 2.8% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$99.7 million in the first quarter of 2017, a decrease from US$135.2 million generated in the comparable period in 2016. The mass market table games hold percentage was 20.6% in the first quarter of 2017 compared with 17.0% in the first quarter of 2016.

Gaming machine handle for the first quarter of 2017 was US$8.0 million, compared with US$8.7 million in the first quarter of 2016. The gaming machine win rate was 5.8% in the first quarter of 2017 versus 5.9% in the first quarter of 2016.

Total non-gaming revenue at Altira Macau in the first quarter of 2017 was US$6.6 million compared with US$6.9 million in the first quarter of 2016.

 

3


Mocha Clubs First Quarter Results

Net revenue from Mocha Clubs totaled US$31.1 million in the first quarter of 2017 as compared to US$31.8 million in the first quarter of 2016. Mocha Clubs generated US$7.1 million of Adjusted EBITDA in the first quarter of 2017 compared with US$6.5 million in the same period in 2016.

Gaming machine handle for the first quarter of 2017 was US$603.1 million, compared with US$670.7 million in the first quarter of 2016. The gaming machine win rate was 5.0% in the first quarter of 2017 versus 4.6% in the first quarter of 2016.

Studio City First Quarter Results

For the quarter ended March 31, 2017, net revenue at Studio City was US$277.9 million compared to US$178.7 million in the first quarter of 2016. Studio City generated Adjusted EBITDA of US$67.8 million in the first quarter of 2017 compared with Adjusted EBITDA of US$22.1 million in the first quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of commencement of rolling chip operations in November 2016 and better performance in mass market table games segment.

Rolling chip volume totaled US$3.6 billion for the first quarter of 2017. The rolling chip win rate was 2.4% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$656.3 million compared with US$547.0 million in the first quarter of 2016. The mass market table games hold percentage was 26.4% in the first quarter of 2017 compared to 22.8% in the first quarter of 2016.

Gaming machine handle for the first quarter of 2017 was US$497.4 million, compared with US$409.7 million in the first quarter of 2016. The gaming machine win rate was 3.7% in the first quarter of 2017 versus 3.6% in the first quarter of 2016.

Total non-gaming revenue at Studio City in the first quarter of 2017 was US$50.8 million, compared with US$58.2 million in the first quarter of 2016.

 

4


City of Dreams Manila First Quarter Results

For the quarter ended March 31, 2017, net revenue at City of Dreams Manila was US$157.4 million compared to US$95.4 million in the first quarter of 2016. City of Dreams Manila generated Adjusted EBITDA of US$61.1 million in the first quarter of 2017 compared to US$28.6 million in the comparable period of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues.

Rolling chip volume totaled US$2.4 billion for the first quarter of 2017 versus US$1.5 billion in the first quarter of 2016. The rolling chip win rate was 3.4% in the first quarter of 2017 versus 2.8% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$153.9 million for the first quarter of 2017, compared with US$120.4 million in the first quarter of 2016. The mass market table games hold percentage was 28.7% in the first quarter of 2017 compared to 27.5% in the first quarter of 2016.

Gaming machine handle for the first quarter of 2017 was US$729.9 million, compared with US$451.4 million in the first quarter of 2016. The gaming machine win rate was 6.2% in the first quarter of 2017 versus 6.1% in the first quarter of 2016.

Total non-gaming revenue at City of Dreams Manila in the first quarter of 2017 was US$27.6 million, compared with US$24.1 million in the first quarter of 2016.

Other Factors Affecting Earnings

Total net non-operating expenses for the first quarter of 2017 were US$57.4 million, which mainly included interest expenses, net of capitalized interest, of US$58.6 million, other finance costs of US$8.8 million and a net foreign exchange gain of US$8.7 million. We recorded US$8.9 million of capitalized interest during the first quarter of 2017, primarily relating to the development of Morpheus at City of Dreams.

The year-on-year decrease of US$2.7 million in net non-operating expenses was primarily a result of higher net foreign exchange gain in the current quarter.

Depreciation and amortization costs of US$137.6 million were recorded in the first quarter of 2017, of which US$14.3 million was related to the amortization of our gaming subconcession and US$5.7 million was related to the amortization of land use rights.

 

5


Financial Position and Capital Expenditure

Total cash and bank balances as of March 31, 2017 were US$1.5 billion, including US$20.0 million of bank deposits with original maturities over three months and US$78.7 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the first quarter of 2017, was US$3.7 billion.

Capital expenditures for the first quarter of 2017 were US$93.9 million, which predominantly related to various projects at City of Dreams, including Morpheus.

Dividend Declaration

On May 4, 2017, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.03 per share (equivalent to US$0.09 per ADS) for the first quarter of 2017 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about Wednesday, May 31, 2017 to our shareholders whose names appear on the register of members of the Company at the close of business on Tuesday, May 16, 2017, being the record date for determination of entitlements to the Quarterly Dividend.

 

6


Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its first quarter 2017 financial results on Thursday, May 4, 2017 at 8:30 a.m. Eastern Time (8:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

 

US Toll Free    1 866 519 4004
US Toll / International    1 845 675 0437
HK Toll    852 3018 6771
HK Toll Free    800 906 601
UK Toll Free    080 8234 6646
Australia Toll    61 290 833 212
Australia Toll Free    1 800 411 623
Philippines Toll Free    1 800 1651 0607
Passcode    MLCO

An audio webcast will also be available at http://www.melco-resorts.com.

To access the replay, please use the dial-in details below:

 

US Toll Free   1 855 452 5696
US Toll / International   1 646 254 3697
HK Toll Free   800 963 117
Philippines Toll Free   1 800 1612 0166
Conference ID   11046686

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the “Company”) may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) growth of the gaming market and visitations in Macau and the Philippines, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and other governmental approvals and regulations, and (vi) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

 

7


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, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses. “Adjusted property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Others expenses and other non-operating income and expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted EBITDA and adjusted property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents adjusted EBITDA and adjusted property EBITDA because they are used by some investors as ways to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported adjusted EBITDA and adjusted property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, adjusted EBITDA and adjusted property EBITDA should not be considered as alternatives to operating income as indicators of the Company’s performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income, adjusted EBITDA and adjusted property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using adjusted EBITDA and adjusted property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.

Such U.S. GAAP measurements include operating income, net income, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in adjusted EBITDA or adjusted property EBITDA. Also, the Company’s calculation of adjusted EBITDA and adjusted property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted EBITDA and adjusted property EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

 

(2) “Adjusted net income” is net income before pre-opening costs, development costs and property charges and others, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income attributable to Melco Resorts & Entertainment Limited and adjusted net income attributable to Melco Resorts & Entertainment Limited per share (“EPS”) are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Melco Resorts & Entertainment Limited and adjusted net income attributable to Melco Resorts & Entertainment Limited per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income attributable to Melco Resorts & Entertainment Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

 

8


About Melco Resorts & Entertainment Limited

The Company, with its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ: MLCO), is a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia. The Company currently operates Altira Macau (www.altiramacau.com), a casino hotel located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. Its business also includes the Mocha Clubs (www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City (www.studiocity-macau.com), a cinematically-themed integrated entertainment, retail and gaming resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreams.com.ph), a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. For more information about the Company, please visit www.melco-resorts.com.

The Company is strongly supported by its single largest shareholder, Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited and is substantially owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of the Company.

For investment community, please contact:

Ross Dunwoody

Vice President, Development & Investor Relations

Tel: +853 8868 7575 or +852 2598 3689

Email: rossdunwoody@melco-resorts.com

For media enquiries, please contact:

Maggie Ma

Chief Corporate Communications and Corporate Affairs Officer

Tel: +853 8868 3767 or +852 3151 3767

Email: maggiema@melco-resorts.com

 

9


Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations

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

 

    Three Months Ended  
    March 31,  
    2017     2016  
    (Unaudited)     (Unaudited)  

OPERATING REVENUES

   

Casino

  $ 1,189,009     $ 1,022,258  

Rooms

    66,437       63,452  

Food and beverage

    44,826       40,984  

Entertainment, retail and others

    52,882       48,202  
 

 

 

   

 

 

 

Gross revenues

    1,353,154       1,174,896  

Less: promotional allowances

    (75,934     (71,329
 

 

 

   

 

 

 

Net revenues

    1,277,220       1,103,567  
 

 

 

   

 

 

 

OPERATING COSTS AND EXPENSES

   

Casino

    (802,733     (723,583

Rooms

    (8,190     (8,536

Food and beverage

    (14,620     (18,073

Entertainment, retail and others

    (22,408     (29,075

General and administrative

    (110,795     (110,319

Payments to the Philippine Parties

    (15,439     (7,160

Pre-opening costs

    (475     (635

Development costs

    (1,017     (6

Amortization of gaming subconcession

    (14,309     (14,309

Amortization of land use rights

    (5,704     (5,704

Depreciation and amortization

    (117,569     (119,971

Property charges and others

    (5,464     (404
 

 

 

   

 

 

 

Total operating costs and expenses

    (1,118,723     (1,037,775
 

 

 

   

 

 

 

OPERATING INCOME

    158,497       65,792  
 

 

 

   

 

 

 

NON-OPERATING INCOME (EXPENSES)

   

Interest income

    557       2,804  

Interest expenses, net of capitalized interest

    (58,556     (52,490

Other finance costs

    (8,788     (13,838

Foreign exchange gains, net

    8,709       2,556  

Other income, net

    659       842  
 

 

 

   

 

 

 

Total non-operating expenses, net

    (57,419     (60,126
 

 

 

   

 

 

 

INCOME BEFORE INCOME TAX

    101,078       5,666  

INCOME TAX CREDIT (EXPENSE)

    1,753       (938
 

 

 

   

 

 

 

NET INCOME

    102,831       4,728  

NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS

    10,615    

 

35,068

 

 

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED

 

$

113,446

 

 

$

39,796

 

 

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED
PER SHARE:

   

Basic

  $ 0.077     $ 0.025  
 

 

 

   

 

 

 

Diluted

  $ 0.077     $ 0.024  
 

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO MELCO RESORTS & ENTERTAINMENT LIMITED
PER ADS:

   

Basic

  $ 0.232     $ 0.074  
 

 

 

   

 

 

 

Diluted

  $ 0.231     $ 0.073  
 

 

 

   

 

 

 

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

   

Basic

    1,465,423,013       1,618,015,902  
 

 

 

   

 

 

 

Diluted

    1,476,279,580       1,626,113,586  
 

 

 

   

 

 

 

 

10


Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

     March 31,     December 31,  
     2017     2016  
     (Unaudited)     (Audited)  

ASSETS

    

CURRENT ASSETS

    

Cash and cash equivalents

   $ 1,356,136     $ 1,702,310  

Bank deposits with original maturities over three months

     20,000       210,840  

Restricted cash

     78,583       39,152  

Accounts receivable, net

     179,731       225,438  

Amounts due from affiliated companies

     551       1,103  

Inventories

     32,392       32,600  

Prepaid expenses and other current assets

     81,465       68,111  
  

 

 

   

 

 

 

Total current assets

     1,748,858       2,279,554  
  

 

 

   

 

 

 

PROPERTY AND EQUIPMENT, NET

     5,626,651       5,655,823  

GAMING SUBCONCESSION, NET

     299,011       313,320  

INTANGIBLE ASSETS

     4,220       4,220  

GOODWILL

     81,915       81,915  

LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS

     193,708       194,911  

RESTRICTED CASH

     130       130  

DEFERRED TAX ASSETS

     187       152  

LAND USE RIGHTS, NET

     804,612       810,316  
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 8,759,292     $ 9,340,341  
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

CURRENT LIABILITIES

    

Accounts payable

   $ 19,039     $ 17,434  

Accrued expenses and other current liabilities

     1,385,951       1,369,943  

Income tax payable

     3,299       7,422  

Capital lease obligations, due within one year

     31,163       30,730  

Current portion of long-term debt, net

     50,699       50,583  

Amounts due to affiliated companies

     926       3,028  
  

 

 

   

 

 

 

Total current liabilities

     1,491,077       1,479,140  
  

 

 

   

 

 

 

LONG-TERM DEBT, NET

     3,660,102       3,669,692  

OTHER LONG-TERM LIABILITIES

     50,431       49,287  

DEFERRED TAX LIABILITIES

     56,030       56,451  

CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR

     261,239       262,357  

SHAREHOLDERS’ EQUITY

    

Ordinary shares

     14,759       14,759  

Treasury shares

     (89     (108

Additional paid-in capital

     2,787,277       2,783,062  

Accumulated other comprehensive losses

     (25,232     (24,768

(Accumulated losses) retained earnings

     (4,814     570,925  
  

 

 

   

 

 

 

Total Melco Resorts & Entertainment Limited shareholders’ equity

     2,771,901       3,343,870  

Noncontrolling interests

     468,512       479,544  
  

 

 

   

 

 

 

Total equity

     3,240,413       3,823,414  
  

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 8,759,292     $ 9,340,341  
  

 

 

   

 

 

 

 

11


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Income Attributable to Melco Resorts & Entertainment Limited to

Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited

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

 

     Three Months Ended  
     March 31,  
     2017     2016  
     (Unaudited)     (Unaudited)  

Net Income Attributable to Melco Resorts & Entertainment Limited

   $ 113,446     $ 39,796  

Pre-opening Costs

     475       635  

Development Costs

     1,017       6  

Property Charges and Others

     5,464       404  

Income Tax Impact on Adjustments

     (259     (2

Noncontrolling Interests Impact on Adjustments

     8       (339
  

 

 

   

 

 

 

Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited

   $ 120,151     $ 40,500  
  

 

 

   

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED
PER SHARE:

    
    

Basic

   $ 0.082     $ 0.025  
  

 

 

   

 

 

 

Diluted

   $ 0.081     $ 0.025  
  

 

 

   

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED
PER ADS:

    

Basic

   $ 0.246     $ 0.075  
  

 

 

   

 

 

 

Diluted

   $ 0.244     $ 0.075  
  

 

 

   

 

 

 

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

    

Basic

     1,465,423,013       1,618,015,902  
  

 

 

   

 

 

 

Diluted

     1,476,279,580       1,626,113,586  
  

 

 

   

 

 

 

 

12


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA

(In thousands of U.S. dollars)

 

     Three Months Ended March 31, 2017  
     Altira
Macau
    Mocha     City of
Dreams
     Studio
City
    City of
Dreams
Manila
    Corporate
and Others
    Total  
     (Unaudited)     (Unaudited)     (Unaudited)      (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Operating (Loss) Income

   $ (2,073   $ 4,863     $ 164,399      $ 21,555     $ 23,497     $ (53,744   $ 158,497  

Payments to the Philippine Parties

     —         —         —          —         15,439       —         15,439  

Land Rent to Belle Corporation

     —         —         —          —         791       —         791  

Pre-opening Costs

     —         —         494        (19     —         —         475  

Development Costs

     —         —         —          —         —         1,017       1,017  

Depreciation and Amortization

     5,689       2,187       44,779        45,976       21,498       17,453       137,582  

Share-based Compensation

     42       (6     526        286       (87     826       1,587  

Property Charges and Others

     57       62       3,343        —         —         2,002       5,464  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     3,715       7,106       213,541        67,798       61,138       (32,446     320,852  

Corporate and Others Expenses

     —         —         —          —         —         32,446       32,446  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 3,715     $ 7,106     $ 213,541      $ 67,798     $ 61,138     $ —       $ 353,298  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
    

 

Three Months Ended March 31, 2016

 
     Altira
Macau
    Mocha     City of
Dreams
     Studio
City
    City of
Dreams
Manila
    Corporate
and Others
    Total  
     (Unaudited)     (Unaudited)     (Unaudited)      (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Operating (Loss) Income

   $ (19,901   $ 3,361     $ 160,562      $ (23,329   $ (5,437   $ (49,464   $ 65,792  

Payments to the Philippine Parties

     —         —         —          —         7,160       —         7,160  

Land Rent to Belle Corporation

     —         —         —          —         840       —         840  

Pre-opening Costs

     —         —         77        558       —         —         635  

Development Costs

     —         —         —          —         —         6       6  

Depreciation and Amortization

     5,826       3,079       44,301        44,707       24,275       17,796       139,984  

Share-based Compensation

     (82     34       473        124       1,775       3,213       5,537  

Property Charges and Others

     197       —         191        —         —         16       404  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (13,960     6,474       205,604        22,060       28,613       (28,433     220,358  

Corporate and Others Expenses

     —         —         —          —         —         28,433       28,433  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ (13,960   $ 6,474     $ 205,604      $ 22,060     $ 28,613     $ —       $ 248,791  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

13


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Income Attributable to Melco Resorts & Entertainment Limited to

Adjusted EBITDA and Adjusted Property EBITDA

(In thousands of U.S. dollars)

 

     Three Months Ended  
     March 31,  
     2017     2016  
     (Unaudited)     (Unaudited)  

Net Income Attributable to Melco Resorts & Entertainment Limited

   $ 113,446     $ 39,796  

Net Loss Attributable to Noncontrolling Interests

     (10,615     (35,068
  

 

 

   

 

 

 

Net Income

     102,831       4,728  

Income Tax (Credit) Expense

     (1,753     938  

Interest and Other Non-Operating Expenses, Net

     57,419       60,126  

Property Charges and Others

     5,464       404  

Share-based Compensation

     1,587       5,537  

Depreciation and Amortization

     137,582       139,984  

Development Costs

     1,017       6  

Pre-opening Costs

     475       635  

Land Rent to Belle Corporation

     791       840  

Payments to the Philippine Parties

     15,439       7,160  
  

 

 

   

 

 

 

Adjusted EBITDA

     320,852       220,358  

Corporate and Others Expenses

     32,446       28,433  
  

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 353,298     $ 248,791  
  

 

 

   

 

 

 

 

14


Melco Resorts & Entertainment Limited and Subsidiaries

Supplemental Data Schedule

 

     Three Months Ended  
     March 31,  
     2017     2016  

Room Statistics:

    

Altira Macau

    

Average daily rate (3)

   $ 207     $ 208  

Occupancy per available room

     92     95

Revenue per available room (4)

   $ 190     $ 197  

City of Dreams

    

Average daily rate (3)

   $ 200     $ 197  

Occupancy per available room

     97     94

Revenue per available room (4)

   $ 194     $ 185  

Studio City

    

Average daily rate (3)

   $ 139     $ 137  

Occupancy per available room

     99     96

Revenue per available room (4)

   $ 138     $ 131  

City of Dreams Manila

    

Average daily rate (3)

   $ 154     $ 157  

Occupancy per available room

     98     86

Revenue per available room (4)

   $ 150     $ 135  

Other Information:

    

Altira Macau

    

Average number of table games

     114       127  

Average number of gaming machines

     56       62  

Table games win per unit per day (5)

   $ 14,304     $ 12,823  

Gaming machines win per unit per day (6)

   $ 93     $ 91  

City of Dreams

    

Average number of table games

     480       500  

Average number of gaming machines

     839       1,072  

Table games win per unit per day (5)

   $ 17,003     $ 15,648  

Gaming machines win per unit per day (6)

   $ 467     $ 364  

Studio City

    

Average number of table games

     282       246  

Average number of gaming machines

     972       1,113  

Table games win per unit per day (5)

   $ 10,179     $ 5,561  

Gaming machines win per unit per day (6)

   $ 211     $ 146  

City of Dreams Manila

    

Average number of table games

     270       277  

Average number of gaming machines

     1,773       1,656  

Table games win per unit per day (5)

   $ 5,193     $ 2,959  

Gaming machines win per unit per day (6)

   $ 285     $ 183  

 

(3)  Average daily rate is calculated by dividing total room revenue including the retail value of promotional allowances by total occupied rooms including complimentary rooms
(4)  Revenue per available room is calculated by dividing total room revenue including the retail value of promotional allowances 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

 

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