Melco Resorts & Entertainment LTD 6-K, filed Nov 10, 2021
Melco Resorts & Entertainment LTD (MLCO)
About this 6-K
Melco Resorts & Entertainment LTD filed this 6-K on November 10, 2021.
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 2021
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): ☐
Table of Contents
Table of Contents
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: November 10, 2021
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Table of Contents
EXHIBIT INDEX
| Exhibit No. |
Description | |
| Exhibit 99.1 | Unaudited Results for Third Quarter of 2021 | |
Exhibit 99.1
Melco Announces Unaudited Third Quarter 2021 Earnings
MACAU, Nov. 09, 2021 (GLOBE NEWSWIRE) –
Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the third quarter of 2021.
Total operating revenues for the third quarter of 2021 were US$446.4 million, representing an increase of approximately 110% from US$212.9 million for the comparable period in 2020. The increase in total operating revenues was primarily attributable to improved performance in all gaming segments and non-gaming operations as a result of a year-over-year increase in inbound tourism in Macau.
Operating loss for the third quarter of 2021 was US$182.2 million, compared with operating loss of US$275.0 million in the third quarter of 2020.
Melco generated Adjusted Property EBITDA(1) of US$31.9 million in the third quarter of 2021, compared with negative Adjusted Property EBITDA of US$76.7 million in the third quarter of 2020.
Net loss attributable to Melco Resorts & Entertainment Limited for the third quarter of 2021 was US$233.2 million, or US$0.49 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$331.6 million, or US$0.70 per ADS, in the third quarter of 2020. The net loss attributable to noncontrolling interests was US$35.3 million and US$55.3 million during the third quarters of 2021 and 2020, respectively, all of which were related to Studio City, City of Dreams Manila, and the Cyprus Operations.
Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “Continued travel restrictions and quarantine measures in Macau and the region negatively impacted our third quarter operating and financial performance. To preserve our cash and liquidity, we continue to enforce strong cost control discipline in respect to both operating expenses and capital expenditures.
“Macau remains one of the safest regions in the world thanks to the government’s careful handling of the global pandemic, and we applaud the government’s effort to further increase vaccination rates towards the goal of increasing immunity in Macau. At Melco, we continue to encourage vaccination uptake as a key company objective that will help to ensure a safe environment for colleagues, guests, and the community at large. Thanks to strong participation in our “Get the Jab” vaccination incentive campaign, Melco’s vaccination rate in Macau has reached close to 95%. We look forward to further travel integration between mainland China and Macau, once Macau achieves an acceptable vaccination rate, and we remain fully committed to doing our part for the betterment of the community.
“Looking forward, we remain confident that pent-up demand for Macau remains intact and strong.
“Meanwhile, Melco remains steadfast to its investment commitments in Macau, where we are a leader in driving the growth and diversification of the Macau economy. The construction of Studio City Phase 2 is progressing on track for completion before December 27, 2022. This expansion will offer approximately 900 additional luxury hotel rooms and suites, an additional indoor/outdoor water park which is expected to be one of the largest in the world, a Cineplex, multiple fine-dining restaurants, and state-of-the-art MICE space.
“In Europe, the development of City of Dreams Mediterranean continues and is on track with our target opening date in the second half of 2022. The project represents Europe’s largest integrated resort with approximately 500 luxury hotel rooms, approximately 100,000 square feet of MICE space, an outdoor amphitheater, a family adventure park, a variety of fine-dining outlets, and luxury retail.
“We have discontinued our pursuit of an integrated resort development in Japan and will close our offices there in the coming months.
“Additionally, we have recently repurchased approximately 3.1 million ADSs for approximately US$31 million. These share repurchases reflect the confidence we have in our company, our long-term strategy, and our future growth prospects.
“Last, we are proud of our achievements in sustainability at Melco. In the third quarter, we were awarded the PATA Gold Awards 2021 in the “Climate Change Initiative” category, while International Gaming Awards 2021 named us “Sustainable Resort of the Year” in City of Dreams Macau. Through our initiatives, we have significantly reduced food waste, greenhouse gas emissions, the usage of harmful chemicals, and the consumption of single use plastics across our properties.”
City of Dreams Third Quarter Results
For the quarter ended September 30, 2021, total operating revenues at City of Dreams were US$252.0 million, compared to US$91.4 million in the third quarter of 2020. City of Dreams generated Adjusted EBITDA of US$32.7 million in the third quarter of 2021, compared with negative Adjusted EBITDA of US$49.2 million in the third quarter of 2020. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments and non-gaming operations.
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Rolling chip volume was US$2.79 billion for the third quarter of 2021 versus US$1.86 billion in the third quarter of 2020. The rolling chip win rate was 3.46% in the third quarter of 2021 versus 3.34% in the third quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop increased to US$617.7 million in the third quarter of 2021, compared with US$90.1 million in the third quarter of 2020. The mass market table games hold percentage was 28.6% in the third quarter of 2021, compared to 38.1% in the third quarter of 2020.
Gaming machine handle for the third quarter of 2021 was US$376.9 million, compared with US$109.7 million in the third quarter of 2020.
The gaming machine win rate was 3.1% in the third quarter of 2021 versus 3.4% in the third quarter of 2020.
Total non-gaming revenue at City of Dreams in the third quarter of 2021 was US$39.5 million, compared with US$18.0 million in the third quarter of 2020.
Altira Macau Third Quarter Results
For the quarter ended September 30, 2021, total operating revenues at Altira Macau were US$10.2 million, compared to US$11.0 million in the third quarter of 2020. Altira Macau generated negative Adjusted EBITDA of US$6.9 million in the third quarter of 2021, compared with negative Adjusted EBITDA of US$16.8 million in the third quarter of 2020.
Starting in the third quarter of 2021, Altira Macau has strategically repositioned to cater to the premium mass segment and has shut down VIP operations. In the third quarter of 2020, rolling chip volume was US$335.8 million and the rolling chip win rate was 3.06%. The expected rolling chip win rate range is 2.85% - 3.15%.
In the mass market table games segment, drop was US$28.7 million in the third quarter of 2021 versus US$15.7 million in the third quarter of 2020. The mass market table games hold percentage was 25.8% in the third quarter of 2021, compared with 16.9% in the third quarter of 2020.
Gaming machine handle for the third quarter of 2021 was US$59.1 million, compared with US$42.6 million in the third quarter of 2020. The gaming machine win rate was 3.6% in the third quarter of 2021 versus 2.3% in the third quarter of 2020.
Total non-gaming revenue at Altira Macau in the third quarter of 2021 was US$2.0 million, compared with US$2.2 million in the third quarter of 2020.
Mocha Clubs Third Quarter Results
Total operating revenues from Mocha Clubs were US$22.2 million in the third quarter of 2021, compared to US$11.3 million in the third quarter of 2020. Mocha Clubs generated Adjusted EBITDA of US$4.8 million in the third quarter of 2021, compared with negative Adjusted EBITDA of US$0.5 million in the same period in 2020.
Gaming machine handle for the third quarter of 2021 was US$491.3 million, compared with US$279.6 million in the third quarter of 2020. The gaming machine win rate was 4.5% in the third quarter of 2021 versus 4.0% in the third quarter of 2020.
Studio City Third Quarter Results
For the quarter ended September 30, 2021, total operating revenues at Studio City were US$81.8 million, compared to US$30.8 million in the third quarter of 2020. Studio City generated negative Adjusted EBITDA of US$14.0 million in the third quarter of 2021, compared with negative Adjusted EBITDA of US$21.7 million in the third quarter of 2020. The year-over-year change in Adjusted EBITDA was primarily a result of better performance in overall gaming and non-gaming operations.
Studio City’s rolling chip volume was US$472.4 million in the third quarter of 2021 versus US$148.8 million in the third quarter of 2020. The rolling chip win rate was 2.35% in the third quarter of 2021 versus 3.41% in the third quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop increased to US$250.5 million in the third quarter of 2021, compared with US$49.7 million in the third quarter of 2020. The mass market table games hold percentage was 26.4% in the third quarter of 2021, compared to 31.5% in the third quarter of 2020.
Gaming machine handle for the third quarter of 2021 was US$271.5 million, compared with US$99.2 million in the third quarter of 2020. The gaming machine win rate was 2.9% in the third quarter of 2021, compared to 2.7% in the third quarter of 2020.
Total non-gaming revenue at Studio City in the third quarter of 2021 was US$19.6 million, compared with US$11.5 million in the third quarter of 2020.
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City of Dreams Manila Third Quarter Results
For the quarter ended September 30, 2021, total operating revenues at City of Dreams Manila were US$52.5 million, compared to US$43.4 million in the third quarter of 2020. City of Dreams Manila generated Adjusted EBITDA of US$11.7 million in the third quarter of 2021, compared with Adjusted EBITDA of US$5.2 million in the comparable period of 2020. The year-over-year increase in Adjusted EBITDA was primarily due to better performance in the mass market table games and gaming machine segments, partially offset by softer performance in the rolling chip segment.
City of Dreams Manila’s rolling chip volume was US$25.3 million in the third quarter of 2021 versus US$561.3 million in the third quarter of 2020. The rolling chip win rate was 6.75% in the third quarter of 2021 versus 2.68% in the third quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop increased to US$82.0 million in the third quarter of 2021, compared with US$63.8 million in the third quarter of 2020. The mass market table games hold percentage was 28.1% in the third quarter of 2021, compared to 29.0% in the third quarter of 2020.
Gaming machine handle for the third quarter of 2021 was US$527.8 million, compared with US$287.9 million in the third quarter of 2020. The gaming machine win rate was 5.5% in the third quarter of 2021 versus 5.8% in the third quarter of 2020.
Total non-gaming revenue at City of Dreams Manila in the third quarter of 2021 was US$9.8 million, compared with US$8.7 million in the third quarter of 2020.
Cyprus Operations Third Quarter Results
The Company is licensed to operate a temporary casino, the first casino in the Republic of Cyprus, and four satellite casinos. Upon the completion and opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease.
For the quarter ended September 30, 2021, total operating revenues at Cyprus Casinos were US$20.2 million, compared to US$20.5 million in the third quarter of 2020. Cyprus Casinos generated Adjusted EBITDA of US$3.6 million in the third quarter of 2021, compared with Adjusted EBITDA of US$6.3 million in the third quarter of 2020.
Rolling chip volume was US$2.7 million for the third quarter of 2021 versus US$0.2 million in the third quarter of 2020. The rolling chip win rate was 22.33% in the third quarter of 2021 versus negative 36.03% in the third quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop was US$31.3 million in the third quarter of 2021, compared with US$23.3 million in the third quarter of 2020. The mass market table games hold percentage was 17.0% in the third quarter of 2021, compared to 20.6% in the third quarter of 2020.
Gaming machine handle for the third quarter of 2021 was US$293.1 million, compared with US$307.5 million in the third quarter of 2020. The gaming machine win rate was 5.0% in the third quarter of 2021 versus 5.1% in the third quarter of 2020.
Other Factors Affecting Earnings
Total net non-operating expenses for the third quarter of 2021 were US$87.1 million, which mainly included interest expenses of US$87.4 million, net of amounts capitalized.
Depreciation and amortization costs of US$147.7 million were recorded in the third quarter of 2021, of which US$14.3 million related to the amortization expense for our gaming subconcession and US$5.7 million related to the amortization expense for the land use rights.
The negative Adjusted EBITDA for Studio City for the three months ended September 30, 2021 referred to above was US$9.1 million less than the negative Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated November 9, 2021 (the “Studio City earnings release”). The Adjusted EBITDA of Studio City contained in the Studio City earnings release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain intercompany costs related to the table games operations at Studio City Casino.
Financial Position and Capital Expenditures
Total cash and bank balances as of September 30, 2021 aggregated to US$1.52 billion, including US$0.4 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$6.16 billion at the end of the third quarter of 2021.
Capital expenditures for the third quarter of 2021 were US$221.3 million, which primarily related to various construction projects at Studio City Phase 2 and City of Dreams Mediterranean.
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On November 5, 2021, MCO Nominee One Limited (“MCO Nominee One”), a subsidiary of Melco, received confirmation that the majority of lenders of the senior facilities agreement dated April 29, 2020, entered into between, among others, MCO Nominee One, as borrower, and Bank of China Limited, Macau Branch, Bank of Communications Co., Ltd. Macau Branch and Morgan Stanley Senior Funding, Inc., as joint global coordinators, under which lenders have made available HK$14.85 billion (equivalent to US$1.92 billion) in a revolving credit facility for a term of five years (the “2020 Credit Facilities”) have consented and agreed to a waiver extension of the following financial condition covenants contained in the revolving credit facility under the 2020 Credit Facilities (the “Facility Agreement”): (i) meet or exceed the interest cover ratio (ratio of consolidated EBITDA to consolidated net finance charges as such terms are defined in the Facility Agreement) of 2.50 to 1.00; (ii) not exceed the senior leverage ratio (ratio of consolidated total debt to consolidated EBITDA as such terms are defined in the Facility Agreement) of 3.50 to 1.00; and (iii) not exceed the total leverage ratio (ratio of consolidated total debt to consolidated EBITDA as such terms are defined in the Facility Agreement) of 4.50 to 1.00, in each case in respect of the relevant periods ending on the following applicable test dates: (a) March 31, 2022; (b) June 30, 2022; (c) September 30, 2022; and (d) December 31, 2022. MCO Nominee One has paid a customary fee to all consenting lenders in relation to such consent and such consent has become effective upon receipt of the consent fee by the facility agent of the lenders to the 2020 Credit Facilities.
Recent Developments
COVID-19 outbreaks continue to have a material effect on our operations, financial position, and future prospects in the fourth quarter of 2021.
In Macau, our operations have been impacted by on-and-off travel restrictions and quarantine requirements as imposed by the governments of Macau, Hong Kong, and China in response to isolated cases. The appearance of COVID-19 cases in early August 2021 led to city-wide mandatory testing, mandatory closure of most entertainment and leisure venues (casinos and gaming areas excluded), and strict travel restrictions and requirements being implemented to enter and exit Macau. Similarly in late September 2021, the identification of additional COVID-19 cases again led to a repeat of testing, closure, and travel restrictions, which led to reduced turnout for October Golden Week holiday. Since October 19, 2021, authorities have eased pandemic prevention measures such that travelers no longer require a 14-day quarantine on arrival in Zhuhai, and the validity of negative nucleic acid tests were extended from 24 hours to 48 hours or seven days. As a result, our visitation has been gradually recovering.
In the Philippines, City of Dreams Manilla was operating at limited capacity since the beginning of the quarter until August 5, 2021, when Manila was put into lockdown on August 6, 2021 due to a surge in COVID-19 cases. On September 17, 2021, City of Dreams Manila reopened operations with capacity limited at 50% under the new Alert Level 4 classification. Hotels were not open to the general public, but indoor F&B operations were allowed to take customers who had been vaccinated. On October 16, 2021, the Philippines downgraded to Alert Level 3, allowing hotels to take vaccinated local guests on staycation packages. Most recently in the fourth quarter, this was further downgraded to Alert Level 2 on November 5, 2021 allowing hotels to take leisure guests. Meanwhile, from a business development front, City of Dreams Manila commenced operating online gaming, namely, live-dealer table games on August 10, 2021 and slot machines on September 15, 2021 after receiving the required approvals from PAGCOR. Such online gaming offerings are only available to registered patrons of City of Dreams Manila inside the Philippines.
In Cyprus, our casinos were fully opened throughout the third quarter and we saw sequential improvement versus the second quarter thanks to progressively higher permitted capacities and increased visitation over the summer months, although with permitted capacity limited at 50%. Certain other COVID-19 restrictions continue to remain in force, such as wearing of masks on the casino floor and smoking only in designated areas.
The pace of recovery from COVID-19 will depend on future events, including duration of travel and visa restrictions, the pace of vaccination progress, development of new medicine for COVID-19, the impact of potentially higher unemployment rates, declines in income levels, and loss of personal wealth resulting from the COVID-19 outbreak affecting discretionary spending and travel, all of which remain highly uncertain.
Conference Call Information
Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2021 financial results on Tuesday, November 9, 2021 at 8:30 a.m. Eastern Time (or 9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:
| US Toll Free | 1 833 239 5575 | |
| US Toll / International | 1 332 208 9458 | |
| HK Toll | 852 3018 8307 | |
| HK Toll Free | 800 906 613 | |
| Japan Toll | 81 3 4577 4717 | |
| Japan Toll Free | 012 092 5482 | |
| UK Toll Free | 080 0279 8053 | |
| Australia Toll | 61 290 833 216 | |
| Australia Toll Free | 1 800 754 642 | |
| Philippines Toll Free | 1 800 1888 0892 | |
| Passcode | 9266657 | |
An audio webcast will also be available at http://www.melco-resorts.com.
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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 | 852 3051 2780 | |
| HK Toll Free | 800 963 117 | |
| Japan Toll | 81 3 4580 6717 | |
| Japan Toll Free | 012 095 9034 | |
| Philippines Toll Free | 1 800 1612 0166 | |
| Conference ID | 9266657 | |
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 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) the global pandemic of COVID-19, caused by a novel strain of the coronavirus, and the continued impact of its consequences on our business, our industry and the global economy, (ii) growth of the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iii) capital and credit market volatility, (iv) local and global economic conditions, (v) our anticipated growth strategies, (vi) gaming authority and other governmental approvals and regulations, and (vii) 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.
Non-GAAP Financial Measures
(1) “Adjusted EBITDA” is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, 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 net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Other 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/loss 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/loss, 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/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 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.
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(2) “Adjusted net income/loss” is net income/loss before pre-opening costs, development costs, property charges and other, loss on extinguishment of debt and costs associated with debt modification, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss 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/loss 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/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss 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/loss 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.
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 integrated resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), an integrated resort located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated 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 resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), an integrated resort in the Entertainment City complex in Manila. In Europe, the Company is currently developing City of Dreams Mediterranean (www.cityofdreamsmed.com.cy) in the Republic of Cyprus, which is expected to be the largest and premier integrated destination resort in Europe. The Company is currently operating a temporary casino, the first authorized casino in the Republic of Cyprus, and is licensed to operate four satellite casinos (“Cyprus Casinos”). Upon the opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease. 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 the investment community, please contact:
Robin Yuen
Director, Investor Relations
Tel: +852 2598 3619
Email: robinyuen@melco-resorts.com
For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com
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Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands of U.S. dollars, except share and per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating revenues: |
||||||||||||||||
| Casino |
$ | 373,170 | $ | 170,775 | $ | 1,285,604 | $ | 1,030,914 | ||||||||
| Rooms |
33,428 | 15,184 | 112,835 | 67,228 | ||||||||||||
| Food and beverage |
20,529 | 13,385 | 72,024 | 48,047 | ||||||||||||
| Entertainment, retail and other |
19,259 | 13,552 | 61,285 | 53,732 | ||||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Total operating revenues |
446,386 | 212,896 | 1,531,748 | 1,199,921 | ||||||||||||
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|
|
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|
|
|
|
|
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| Operating costs and expenses: |
||||||||||||||||
| Casino |
(297,847 | ) | (207,188 | ) | (1,034,602 | ) | (986,818 | ) | ||||||||
| Rooms |
(11,592 | ) | (8,573 | ) | (37,270 | ) | (34,897 | ) | ||||||||
| Food and beverage |
(20,967 | ) | (14,822 | ) | (68,775 | ) | (62,482 | ) | ||||||||
| Entertainment, retail and other |
(7,110 | ) | (9,378 | ) | (23,108 | ) | (44,915 | ) | ||||||||
| General and administrative |
(112,011 | ) | (80,985 | ) | (326,401 | ) | (326,214 | ) | ||||||||
| Payments to the Philippine Parties |
(3,176 | ) | (2,743 | ) | (20,269 | ) | (7,678 | ) | ||||||||
| Pre-opening costs |
(650 | ) | (428 | ) | (2,774 | ) | (1,049 | ) | ||||||||
| Development costs |
(24,648 | ) | (2,831 | ) | (31,979 | ) | (22,633 | ) | ||||||||
| Amortization of gaming subconcession |
(14,307 | ) | (14,364 | ) | (42,990 | ) | (43,050 | ) | ||||||||
| Amortization of land use rights |
(5,703 | ) | (5,726 | ) | (17,137 | ) | (17,161 | ) | ||||||||
| Depreciation and amortization |
(127,663 | ) | (133,439 | ) | (375,592 | ) | (410,757 | ) | ||||||||
| Property charges and other |
(2,945 | ) | (7,426 | ) | (23,937 | ) | (37,990 | ) | ||||||||
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|
|
|
|
|
|
|
|||||||||
| Total operating costs and expenses |
(628,619 | ) | (487,903 | ) | (2,004,834 | ) | (1,995,644 | ) | ||||||||
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|
|
|
|
|
|
|||||||||
| Operating loss |
(182,233 | ) | (275,007 | ) | (473,086 | ) | (795,723 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-operating income (expenses): |
||||||||||||||||
| Interest income |
1,580 | 1,437 | 5,161 | 3,732 | ||||||||||||
| Interest expenses, net of amounts capitalized |
(87,387 | ) | (91,864 | ) | (265,096 | ) | (250,288 | ) | ||||||||
| Other financing costs |
(3,473 | ) | (2,471 | ) | (9,953 | ) | (5,644 | ) | ||||||||
| Foreign exchange gains (losses), net |
1,441 | 1,101 | 3,050 | (5,117 | ) | |||||||||||
| Other income (expenses), net |
741 | (50 | ) | 2,372 | (151,857 | ) | ||||||||||
| Loss on extinguishment of debt |
— | (18,497 | ) | (28,817 | ) | (19,733 | ) | |||||||||
| Costs associated with debt modification |
— | — | — | (310 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total non-operating expenses, net |
(87,098 | ) | (110,344 | ) | (293,283 | ) | (429,217 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss before income tax |
(269,331 | ) | (385,351 | ) | (766,369 | ) | (1,224,940 | ) | ||||||||
| Income tax credit (expense) |
837 | (1,560 | ) | (154 | ) | 5,166 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss |
(268,494 | ) | (386,911 | ) | (766,523 | ) | (1,219,774 | ) | ||||||||
| Net loss attributable to noncontrolling interests |
35,273 | 55,330 | 114,709 | 156,016 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited |
$ | (233,221 | ) | $ | (331,581 | ) | $ | (651,814 | ) | $ | (1,063,758 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited per share: |
||||||||||||||||
| Basic |
$ | (0.162 | ) | $ | (0.232 | ) | $ | (0.454 | ) | $ | (0.743 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | (0.162 | ) | $ | (0.232 | ) | $ | (0.454 | ) | $ | (0.743 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited per ADS: |
||||||||||||||||
| Basic |
$ | (0.487 | ) | $ | (0.695 | ) | $ | (1.362 | ) | $ | (2.228 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | (0.487 | ) | $ | (0.696 | ) | $ | (1.362 | ) | $ | (2.230 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding used in net loss attributable to Melco Resorts & Entertainment Limited per share calculation: |
||||||||||||||||
| Basic |
1,437,651,448 | 1,430,817,899 | 1,435,941,037 | 1,432,437,101 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
1,437,651,448 | 1,430,817,899 | 1,435,941,037 | 1,432,437,101 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
7
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars, except share and per share data)
| September 30, 2021 |
December 31, 2020 |
|||||||
| (Unaudited) | ||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 1,521,562 | $ | 1,755,351 | ||||
| Restricted cash |
274 | 13 | ||||||
| Accounts receivable, net |
52,168 | 129,619 | ||||||
| Amounts due from affiliated companies |
280 | 765 | ||||||
| Inventories |
35,572 | 37,277 | ||||||
| Prepaid expenses and other current assets |
119,019 | 85,798 | ||||||
| Assets held for sales |
3,287 | — | ||||||
|
|
|
|
|
|||||
| Total current assets |
1,732,162 | 2,008,823 | ||||||
|
|
|
|
|
|||||
| Property and equipment, net |
5,821,612 | 5,681,268 | ||||||
| Gaming subconcession, net |
41,409 | 84,663 | ||||||
| Intangible assets, net |
53,782 | 58,833 | ||||||
| Goodwill |
81,858 | 82,203 | ||||||
| Long-term prepayments, deposits and other assets |
187,424 | 284,608 | ||||||
| Restricted cash |
131 | 406 | ||||||
| Deferred tax assets, net |
6,701 | 6,376 | ||||||
| Operating lease right-of-use assets |
74,527 | 92,213 | ||||||
| Land use rights, net |
701,442 | 721,574 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 8,701,048 | $ | 9,020,967 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 6,882 | $ | 9,483 | ||||
| Accrued expenses and other current liabilities |
914,616 | 983,865 | ||||||
| Income tax payable |
12,847 | 14,164 | ||||||
| Operating lease liabilities, current |
21,107 | 27,066 | ||||||
| Finance lease liabilities, current |
41,120 | 80,004 | ||||||
| Current portion of long-term debt, net |
128 | — | ||||||
| Amounts due to affiliated companies |
1,443 | 1,668 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
998,143 | 1,116,250 | ||||||
|
|
|
|
|
|||||
| Long-term debt, net |
6,157,476 | 5,645,391 | ||||||
| Other long-term liabilities |
41,750 | 29,213 | ||||||
| Deferred tax liabilities, net |
44,450 | 45,952 | ||||||
| Operating lease liabilities, non-current |
64,480 | 75,867 | ||||||
| Finance lease liabilities, non-current |
351,456 | 270,223 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
7,657,755 | 7,182,896 | ||||||
|
|
|
|
|
|||||
| Shareholders’ equity: |
||||||||
| Ordinary shares, par value $0.01; 7,300,000,000 shares authorized; 1,456,547,942 and 1,456,547,942 shares issued; 1,431,608,590 and 1,430,965,312 shares outstanding, respectively |
14,565 | 14,565 | ||||||
| Treasury shares, at cost; 24,939,352 and 25,582,630 shares, respectively |
(109,184 | ) | (121,028 | ) | ||||
| Additional paid-in capital |
3,227,235 | 3,207,312 | ||||||
| Accumulated other comprehensive losses |
(59,399 | ) | (11,332 | ) | ||||
| Accumulated losses |
(2,639,276 | ) | (1,987,396 | ) | ||||
|
|
|
|
|
|||||
| Total Melco Resorts & Entertainment Limited shareholders’ equity |
433,941 | 1,102,121 | ||||||
| Noncontrolling interests |
609,352 | 735,950 | ||||||
|
|
|
|
|
|||||
| Total shareholders’ equity |
1,043,293 | 1,838,071 | ||||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
$ | 8,701,048 | $ | 9,020,967 | ||||
|
|
|
|
|
|||||
8
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net Loss Attributable to Melco Resorts & Entertainment Limited to
Adjusted Net Loss Attributable to Melco Resorts & Entertainment Limited (Unaudited)
(In thousands of U.S. dollars, except share and per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited |
$ | (233,221 | ) | $ | (331,581 | ) | $ | (651,814 | ) | $ | (1,063,758 | ) | ||||
| Pre-opening costs |
650 | 428 | 2,774 | 1,049 | ||||||||||||
| Development costs |
24,648 | 2,831 | 31,979 | 22,633 | ||||||||||||
| Property charges and other |
2,945 | 7,426 | 23,937 | 37,990 | ||||||||||||
| Loss on extinguishment of debt |
— | 18,497 | 28,817 | 19,733 | ||||||||||||
| Costs associated with debt modification |
— | — | — | 310 | ||||||||||||
| Income tax impact on adjustments |
(739 | ) | (355 | ) | (2,133 | ) | (4,178 | ) | ||||||||
| Noncontrolling interests impact on adjustments |
(440 | ) | (8,321 | ) | (16,185 | ) | (10,677 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited |
$ | (206,157 | ) | $ | (311,075 | ) | $ | (582,625 | ) | $ | (996,898 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited per share: |
||||||||||||||||
| Basic |
$ | (0.143 | ) | $ | (0.217 | ) | $ | (0.406 | ) | $ | (0.696 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | (0.143 | ) | $ | (0.218 | ) | $ | (0.406 | ) | $ | (0.697 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited per ADS: |
||||||||||||||||
| Basic |
$ | (0.430 | ) | $ | (0.652 | ) | $ | (1.217 | ) | $ | (2.088 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | (0.430 | ) | $ | (0.654 | ) | $ | (1.217 | ) | $ | (2.091 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding used in adjusted net loss attributable to Melco Resorts & Entertainment Limited per share calculation: |
||||||||||||||||
| Basic |
1,437,651,448 | 1,430,817,899 | 1,435,941,037 | 1,432,437,101 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
1,437,651,448 | 1,430,817,899 | 1,435,941,037 | 1,432,437,101 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
9
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Loss to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands of U.S. dollars)
| Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Cyprus Operations |
Corporate and Other |
Total | |||||||||||||||||||||||||
| Operating (loss) income |
$ | (12,725 | ) | $ | 3,296 | $ | (35,542 | ) | $ | (49,810 | ) | $ | (12,639 | ) | $ | 541 | $ | (75,354 | ) | $ | (182,233 | ) | ||||||||||
| Payments to the Philippine Parties |
— | — | — | — | 3,176 | — | — | 3,176 | ||||||||||||||||||||||||
| Land rent to Belle Corporation |
— | — | — | — | 672 | — | — | 672 | ||||||||||||||||||||||||
| Pre-opening costs |
— | — | — | 6 | — | 644 | — | 650 | ||||||||||||||||||||||||
| Development costs |
— | — | — | — | — | — | 24,648 | 24,648 | ||||||||||||||||||||||||
| Depreciation and amortization |
5,542 | 1,420 | 62,736 | 34,327 | 19,844 | 2,205 | 21,599 | 147,673 | ||||||||||||||||||||||||
| Share-based compensation |
365 | 115 | 4,307 | 1,137 | 517 | 238 | 10,840 | 17,519 | ||||||||||||||||||||||||
| Property charges and other |
(128 | ) | 15 | 1,212 | 347 | 130 | — | 1,369 | 2,945 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted EBITDA |
(6,946 | ) | 4,846 | 32,713 | (13,993 | ) | 11,700 | 3,628 | (16,898 | ) | 15,050 | |||||||||||||||||||||
| Corporate and Other expenses |
— | — | — | — | — | — | 16,898 | 16,898 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted Property EBITDA |
$ | (6,946 | ) | $ | 4,846 | $ | 32,713 | $ | (13,993 | ) | $ | 11,700 | $ | 3,628 | $ | — | $ | 31,948 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Cyprus Operations |
Corporate and Other |
Total | |||||||||||||||||||||||||
| Operating (loss) income |
$ | (22,653 | ) | $ | (2,367 | ) | $ | (111,994 | ) | $ | (66,769 | ) | $ | (20,982 | ) | $ | 2,447 | $ | (52,689 | ) | $ | (275,007 | ) | |||||||||
| Payments to the Philippine Parties |
— | — | — | — | 2,743 | — | — | 2,743 | ||||||||||||||||||||||||
| Land rent to Belle Corporation |
— | — | — | — | 812 | — | — | 812 | ||||||||||||||||||||||||
| Pre-opening costs |
— | — | 29 | 77 | — | 322 | — | 428 | ||||||||||||||||||||||||
| Development costs |
— | — | — | — | — | — | 2,831 | 2,831 | ||||||||||||||||||||||||
| Depreciation and amortization |
5,407 | 1,850 | 59,743 | 44,399 | 16,733 | 3,470 | 21,927 | 153,529 | ||||||||||||||||||||||||
| Share-based compensation |
140 | 36 | 1,512 | 484 | 340 | 54 | 8,526 | 11,092 | ||||||||||||||||||||||||
| Property charges and other |
261 | 30 | 1,517 | 71 | 5,550 | (3 | ) | — | 7,426 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted EBITDA |
(16,845 | ) | (451 | ) | (49,193 | ) | (21,738 | ) | 5,196 | 6,290 | (19,405 | ) | (96,146 | ) | ||||||||||||||||||
| Corporate and Other expenses |
— | — | — | — | — | — | 19,405 | 19,405 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted Property EBITDA |
$ | (16,845 | ) | $ | (451 | ) | $ | (49,193 | ) | $ | (21,738 | ) | $ | 5,196 | $ | 6,290 | $ | — | $ | (76,741 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
10
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Loss to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands of U.S. dollars)
| Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Cyprus Operations |
Corporate and Other |
Total | |||||||||||||||||||||||||
| Operating (loss) income |
$ | (72,608 | ) | $ | 7,241 | $ | (52,024 | ) | $ | (129,172 | ) | $ | (28,303 | ) | $ | (14,375 | ) | $ | (183,845 | ) | $ | (473,086 | ) | |||||||||
| Payments to the Philippine Parties |
— | — | — | — | 20,269 | — | — | 20,269 | ||||||||||||||||||||||||
| Land rent to Belle Corporation |
— | — | — | — | 2,179 | — | — | 2,179 | ||||||||||||||||||||||||
| Pre-opening costs |
— | — | 195 | 739 | — | 1,840 | — | 2,774 | ||||||||||||||||||||||||
| Development costs |
— | — | — | — | — | — | 31,979 | 31,979 | ||||||||||||||||||||||||
| Depreciation and amortization |
16,518 | 4,641 | 186,130 | 101,893 | 53,187 | 8,586 | 64,764 | 435,719 | ||||||||||||||||||||||||
| Share-based compensation |
618 | 187 | 7,217 | 1,974 | 1,298 | 350 | 28,262 | 39,906 | ||||||||||||||||||||||||
| Property charges and other |
1,630 | 203 | 10,769 | 4,212 | 5,732 | — | 1,391 | 23,937 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted EBITDA |
(53,842 | ) | 12,272 | 152,287 | (20,354 | ) | 54,362 | (3,599 | ) | (57,449 | ) | 83,677 | ||||||||||||||||||||
| Corporate and Other expenses |
— | — | — | — | — | — | 57,449 | 57,449 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted Property EBITDA |
$ | (53,842 | ) | $ | 12,272 | $ | 152,287 | $ | (20,354 | ) | $ | 54,362 | $ | (3,599 | ) | $ | — | $ | 141,126 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
| Altira Macau |
Mocha | City of Dreams |
Studio City |
City of Dreams Manila |
Cyprus Operations |
Corporate and Other |
Total | |||||||||||||||||||||||||
| Operating (loss) income |
$ | (62,735 | ) | $ | (1,515 | ) | $ | (260,100 | ) | $ | (210,500 | ) | $ | (54,233 | ) | $ | (6,808 | ) | $ | (199,832 | ) | $ | (795,723 | ) | ||||||||
| Payments to the Philippine Parties |
— | — | — | — | 7,678 | — | — | 7,678 | ||||||||||||||||||||||||
| Land rent to Belle Corporation |
— | — | — | — | 2,374 | — | — | 2,374 | ||||||||||||||||||||||||
| Pre-opening costs |
37 | — | (21 | ) | 133 | — | 900 | — | 1,049 | |||||||||||||||||||||||
| Development costs |
— | — | — | — | — | — | 22,633 | 22,633 | ||||||||||||||||||||||||
| Depreciation and amortization |
16,086 | 5,459 | 186,253 | 131,043 | 49,553 | 9,128 | 73,446 | 470,968 | ||||||||||||||||||||||||
| Share-based compensation |
366 | 41 | 3,960 | 1,416 | 1,066 | 155 | 25,172 | 32,176 | ||||||||||||||||||||||||
| Property charges and other |
897 | 56 | 11,325 | 4,414 | 5,753 | 129 | 15,416 | 37,990 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted EBITDA |
(45,349 | ) | 4,041 | (58,583 | ) | (73,494 | ) | 12,191 | 3,504 | (63,165 | ) | (220,855 | ) | |||||||||||||||||||
| Corporate and Other expenses |
— | — | — | — | — | — | 63,165 | 63,165 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Adjusted Property EBITDA |
$ | (45,349 | ) | $ | 4,041 | $ | (58,583 | ) | $ | (73,494 | ) | $ | 12,191 | $ | 3,504 | $ | — | $ | (157,690 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
11
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net Loss Attributable to Melco Resorts & Entertainment Limited to
Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands of U.S. dollars)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited |
$ | (233,221 | ) | $ | (331,581 | ) | $ | (651,814 | ) | $ | (1,063,758 | ) | ||||
| Net loss attributable to noncontrolling interests |
(35,273 | ) | (55,330 | ) | (114,709 | ) | (156,016 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss |
(268,494 | ) | (386,911 | ) | (766,523 | ) | (1,219,774 | ) | ||||||||
| Income tax (credit) expense |
(837 | ) | 1,560 | 154 | (5,166 | ) | ||||||||||
| Interest and other non-operating expenses, net |
87,098 | 110,344 | 293,283 | 429,217 | ||||||||||||
| Property charges and other |
2,945 | 7,426 | 23,937 | 37,990 | ||||||||||||
| Share-based compensation |
17,519 | 11,092 | 39,906 | 32,176 | ||||||||||||
| Depreciation and amortization |
147,673 | 153,529 | 435,719 | 470,968 | ||||||||||||
| Development costs |
24,648 | 2,831 | 31,979 | 22,633 | ||||||||||||
| Pre-opening costs |
650 | 428 | 2,774 | 1,049 | ||||||||||||
| Land rent to Belle Corporation |
672 | 812 | 2,179 | 2,374 | ||||||||||||
| Payments to the Philippine Parties |
3,176 | 2,743 | 20,269 | 7,678 | ||||||||||||
|
|
|
|
|
|
|
|
|
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| Adjusted EBITDA |
15,050 | (96,146 | ) | 83,677 | (220,855 | ) | ||||||||||
| Corporate and Other expenses |
16,898 | 19,405 | 57,449 | 63,165 | ||||||||||||
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| Adjusted Property EBITDA |
$ | 31,948 | $ | (76,741 | ) | $ | 141,126 | $ | (157,690 | ) | ||||||
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12
Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Room Statistics(3): |
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| Altira Macau |
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| Average daily rate (4) |
$ | 104 | $ | 152 | $ | 110 | $ | 171 | ||||||||
| Occupancy per available room |
46 | % | 19 | % | 51 | % | 32 | % | ||||||||
| Revenue per available room (5) |
$ | 48 | $ | 29 | $ | 56 | $ | 54 | ||||||||
| City of Dreams |
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| Average daily rate (4) |
$ | 211 | $ | 208 | $ | 203 | $ | 230 | ||||||||
| Occupancy per available room |
46 | % | 15 | % | 55 | % | 24 | % | ||||||||
| Revenue per available room (5) |
$ | 96 | $ | 31 | $ | 113 | $ | 54 | ||||||||
| Studio City |
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| Average daily rate (4) |
$ | 123 | $ | 119 | $ | 122 | $ | 134 | ||||||||
| Occupancy per available room |
52 | % | 13 | % | 54 | % | 20 | % | ||||||||
| Revenue per available room (5) |
$ | 64 | $ | 16 | $ | 66 | $ | 27 | ||||||||
| City of Dreams Manila |
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| Average daily rate (4) |
$ | 117 | $ | 291 | $ | 110 | $ | 222 | ||||||||
| Occupancy per available room |
75 | % | 26 | % | 69 | % | 58 | % | ||||||||
| Revenue per available room (5) |
$ | 88 | $ | 77 | $ | 76 | $ | 129 | ||||||||
| Other Information(6): |
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| Altira Macau |
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| Average number of table games |
100 | 101 | 101 | 96 | ||||||||||||
| Average number of gaming machines |
128 | 101 | 119 | 109 | ||||||||||||
| Table games win per unit per day (7) |
$ | 804 | $ | 1,390 | $ | 2,188 | $ | 4,813 | ||||||||
| Gaming machines win per unit per day (8) |
$ | 181 | $ | 104 | $ | 202 | $ | 123 | ||||||||
| City of Dreams |
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| Average number of table games |
514 | 515 | 511 | 489 | ||||||||||||
| Average number of gaming machines |
607 | 482 | 536 | 476 | ||||||||||||
| Table games win per unit per day (7) |
$ | 5,782 | $ | 2,033 | $ | 7,090 | $ | 6,149 | ||||||||
| Gaming machines win per unit per day (8) |
$ | 212 | $ | 85 | $ | 297 | $ | 202 | ||||||||
| Studio City |
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| Average number of table games |
291 | 291 | 291 | 279 | ||||||||||||
| Average number of gaming machines |
656 | 595 | 623 | 579 | ||||||||||||
| Table games win per unit per day (7) |
$ | 2,883 | $ | 774 | $ | 3,354 | $ | 2,234 | ||||||||
| Gaming machines win per unit per day (8) |
$ | 131 | $ | 48 | $ | 135 | $ | 96 | ||||||||
| City of Dreams Manila |
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| Average number of table games |
302 | 301 | 297 | 300 | ||||||||||||
| Average number of gaming machines |
2,377 | 2,256 | 2,304 | 2,274 | ||||||||||||
| Table games win per unit per day (7) |
$ | 1,638 | $ | 1,450 | $ | 1,926 | $ | 2,712 | ||||||||
| Gaming machines win per unit per day (8) |
$ | 251 | $ | 96 | $ | 190 | $ | 143 | ||||||||
| Cyprus Operations |
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| Average number of table games |
32 | 25 | 32 | 30 | ||||||||||||
| Average number of gaming machines |
457 | 304 | 440 | 362 | ||||||||||||
| Table games win per unit per day (7) |
$ | 2,007 | $ | 2,041 | $ | 1,844 | $ | 1,901 | ||||||||
| Gaming machines win per unit per day (8) |
$ | 346 | $ | 565 | $ | 372 | $ | 483 | ||||||||
| (3) | Room statistics exclude rooms that were temporarily closed or provided to staff members due to the COVID-19 outbreak |
| (4) | Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms |
| (5) | Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available |
| (6) | Table games and gaming machines that were not in operation due to government mandated closures or social distancing measures in relation to the COVID-19 outbreak have been excluded |
| (7) | Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis |
| (8) | Gaming machines win per unit per day is shown before non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis |
13