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Melco Announces Unaudited Third Quarter 2018 Earnings and Declares Quarterly Dividend

MACAU, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq:MLCO) (“Melco” or the “Company”), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia, today reported its unaudited financial results for the third quarter of 2018.

Net revenue for the third quarter of 2018 was US$1,220.3 million, representing a decrease of approximately 11% from US$1,376.8 million for the comparable period in 2017. The decrease in net revenue was primarily attributable to higher commissions reported as a reduction in revenue upon the Company’s adoption of a new revenue recognition standard issued by the Financial Accounting Standards Board (the “New Revenue Standard”) and lower group-wide rolling chip gross gaming revenues, partially offset by higher group-wide mass market table games and gaming machines gross gaming revenues. The Company adopted the New Revenue Standard using the modified retrospective method from January 1, 2018. Results for the periods beginning on or after January 1, 2018 are presented under the New Revenue Standard, while prior year amounts are not adjusted and continue to be reported in accordance with the previous basis. Under the previous basis, before the adoption of the New Revenue Standard, net revenue for the third quarter of 2018 would have been US$1,311.6 million, which would have represented a decrease of approximately 5% from the US$1,376.8 million for the comparable period in 2017.

Operating income for the third quarter of 2018 was US$83.6 million, compared with operating income of US$192.7 million in the third quarter of 2017, representing a decrease of 57%.

Adjusted property EBITDA(1) was US$295.4 million for the third quarter of 2018, as compared to Adjusted property EBITDA of US$400.2 million in the third quarter of 2017, representing a decrease of 26%. The decline in Adjusted property EBITDA was mainly attributable to poorer performance in the group-wide rolling chip segment and a one-time special gift granted to non-management employees.

Net income attributable to Melco Resorts & Entertainment Limited for the third quarter of 2018 was US$9.6 million, or US$0.02 per ADS, compared with US$115.9 million, or US$0.24 per ADS, in the third quarter of 2017. The net loss attributable to noncontrolling interests during the third quarter of 2018 and 2017 were US$2.4 million and US$3.3 million, respectively, which were related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “I am incredibly thrilled that just two months after the grand opening, Morpheus at City of Dreams made the list of TIME magazine’s ‘World’s Greatest Places 2018,’ being the only Macau entry on the list.”

“Designed by the late Pritzker Prize-winning architect Dame Zaha Hadid, Morpheus has been described as “The Icon of the New Macau” and is the first hotel brand to be wholly developed and created by Melco. It sets a new benchmark for ultra-luxury hospitality in Macau, and features a spectacular collection of “world’s first” including the world’s first free-form exoskeleton high-rise architectural structure, the first spa concept in the world to feature a Snow Garden with real snow and the world’s first hotel to feature an entire floor dedicated to legendary chef Alain Ducasse, with two Ducasse restaurants and a bar.”

“The opening of Morpheus only marks the beginning of the relaunch of City of Dreams. On top of that, we are upgrading our VIP gaming spaces that are expected to open over the next six months. We will also commence the rolling refurbishment of the Nüwa after Chinese New Year 2019 and the redevelopment of the Count:Down in the second half of 2019 into a new, luxurious, ultra-cool hotel – Libertine.”

“At Studio City, we are embarking on a series of property upgrades to refine the entertainment offerings, which include the world’s most electrifying stunt show – Elekron, Asia’s largest Virtual Reality zone and a fantastic new street of food and beverage.”

“In the Philippines, City of Dreams Manila delivered another solid quarter underpinned by robust mass gaming revenue growth.”

“The Board has, after evaluating the Company’s current liquidity position and future expected capital needs, decided to declare another quarterly dividend of US$0.14505 per ADS. In addition, the Board has also approved a new US$500 million share repurchase program, which is effective immediately. Year to date, the Company has also repurchased approximately 23 million ADSs, worth approximately US$490 million, under the US$500 million share repurchase program the Company announced in March 2018.”

“Lastly, Japan continues to be a core focus for us. We expect development of the next generation of integrated resorts to soon commence in this incredibly exciting, yet currently underpenetrated, tourism destination. With our focus on the Asian premium segment, high quality assets, dedication to world-class entertainment offerings, market-leading social safeguards and compliance culture, and our commitment to being an ideal partner to local governments and communities alike, we believe Melco is in a strong position to help Japan realize the vision for integrated resort development with a unique Japanese touch.”

City of Dreams Third Quarter Results

For the quarter ended September 30, 2018, net revenue at City of Dreams was US$600.9 million compared to US$715.9 million in the third quarter of 2017. City of Dreams generated Adjusted EBITDA of US$147.1 million in the third quarter of 2018 compared with Adjusted EBITDA of US$246.4 million in the third quarter of 2017. The decline in Adjusted EBITDA was primarily a result of poorer performance in the rolling chip segment and a one-time special gift granted to non-management employees.

Rolling chip volume totaled US$12.3 billion for the third quarter of 2018 versus US$11.2 billion in the third quarter of 2017. The rolling chip win rate was 2.4% in the third quarter of 2018 versus 3.5% in the third quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$1,337.6 million in the third quarter of 2018 compared with US$1,145.0 million in the third quarter of 2017. The mass market table games hold percentage was 27.8% in the third quarter of 2018 compared to 32.3% in the third quarter of 2017.

Gaming machine handle for the third quarter of 2018 was US$1,122.2 million, compared with US$981.7 million in the third quarter of 2017. The gaming machine win rate was 4.3% in the third quarter of 2018 versus 3.2% in the third quarter of 2017.

Total non-gaming revenue at City of Dreams in the third quarter of 2018 was US$98.9 million, compared with US$81.4 million in the third quarter of 2017.

Altira Macau Third Quarter Results

For the quarter ended September 30, 2018, net revenue at Altira Macau was US$90.2 million compared to US$89.3 million in the third quarter of 2017. Altira Macau generated negative Adjusted EBITDA of US$1.0 million in the third quarter of 2018 compared with negative Adjusted EBITDA of US$5.6 million in the third quarter of 2017.

Rolling chip volume totaled US$5.5 billion in the third quarter of 2018 versus US$4.2 billion in the third quarter of 2017. The rolling chip win rate was 2.4% in the third quarter of 2018 versus 2.6% in the third quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$130.8 million in the third quarter of 2018, representing an increase from US$112.4 million generated in the comparable period in 2017. The mass market table games hold percentage was 18.2% in the third quarter of 2018 compared with 15.7% in the third quarter of 2017.

Gaming machine handle for the third quarter of 2018 was US$33.7 million, compared with US$11.3 million in the third quarter of 2017. The increase was primarily due to an increase in average number of gaming machines to 128 in the third quarter of 2018, compared to 61 in the third quarter of 2017. The gaming machine win rate was 5.6% in the third quarter of 2018 versus 6.1% in the third quarter of 2017.

Total non-gaming revenue at Altira Macau in the third quarter of 2018 was US$6.9 million, compared with US$6.8 million in the third quarter of 2017.

Mocha Clubs Third Quarter Results

Net revenue from Mocha Clubs totaled US$28.5 million in the third quarter of 2018 as compared to US$30.2 million in the third quarter of 2017. Mocha Clubs generated US$4.6 million of Adjusted EBITDA in the third quarter of 2018 compared with US$6.5 million in the same period in 2017.

Gaming machine handle for the third quarter of 2018 was US$616.9 million, compared with US$628.1 million in the third quarter of 2017. The gaming machine win rate was 4.7% for both quarters ended September 30, 2018 and 2017.

Studio City Third Quarter Results

For the quarter ended September 30, 2018, net revenue at Studio City was US$345.2 million compared to US$384.5 million in the third quarter of 2017. Studio City generated Adjusted EBITDA of US$89.4 million in the third quarter of 2018 compared with Adjusted EBITDA of US$95.6 million in the third quarter of 2017. The decline in Adjusted EBITDA was primarily a result of a one-time special gift granted to non-management employees.

Rolling chip volume totaled US$5.1 billion for both quarters ended September 30, 2018 and 2017. The rolling chip win rate was 3.1% in the third quarter of 2018 versus 4.0% in the third quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$807.9 million in the third quarter of 2018 compared with US$747.1 million in the third quarter of 2017. The mass market table games hold percentage was 27.2% in the third quarter of 2018 compared to 25.0% in the third quarter of 2017.

Gaming machine handle for the third quarter of 2018 was US$641.6 million, compared with US$581.2 million in the third quarter of 2017. The gaming machine win rate was 2.9% in the third quarter of 2018 versus 3.3% in the third quarter of 2017.

Total non-gaming revenue at Studio City in the third quarter of 2018 was US$50.1 million, compared with US$51.9 million in the third quarter of 2017.

City of Dreams Manila Third Quarter Results

For the quarter ended September 30, 2018, net revenue at City of Dreams Manila was US$141.7 million compared to US$148.2 million in the third quarter of 2017. City of Dreams Manila generated Adjusted EBITDA of US$55.2 million in the third quarter of 2018 compared to US$57.3 million in the comparable period of 2017.

Rolling chip volume totaled US$3.0 billion for both quarters ended September 30, 2018 and 2017. The rolling chip win rate was 2.7% in the third quarter of 2018 versus 2.5% in the third quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$204.9 million for the third quarter of 2018, compared with US$174.1 million in the third quarter of 2017. The mass market table games hold percentage was 32.4% in the third quarter of 2018 compared to 29.9% in the third quarter of 2017.

Gaming machine handle for the third quarter of 2018 was US$935.0 million, compared with US$757.3 million in the third quarter of 2017. The gaming machine win rate was 5.3% in the third quarter of 2018 versus 5.6% in the third quarter of 2017.

Total non-gaming revenue at City of Dreams Manila in the third quarter of 2018 was US$28.9 million, compared with US$29.2 million in the third quarter of 2017.
           
Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2018 were US$75.1 million, which mainly included interest expenses of US$70.8 million.

Depreciation and amortization costs of US$152.9 million were recorded in the third quarter of 2018 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.

Financial Position and Capital Expenditures

Total cash and bank balances as of September 30, 2018 aggregated US$1.3 billion, including US$20.0 million on a bank deposit with an original maturity over three months and US$87.2 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the third quarter of 2018, was US$3.8 billion.

Capital expenditures for the third quarter of 2018 were US$140.0 million, which predominantly related to Morpheus and other various projects at City of Dreams as well as Corporate and Other.

Dividend Declaration

On November 8, 2018, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.04835 per ordinary share (equivalent to US$0.14505 per ADS) for the third quarter of 2018 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about November 29, 2018 to our shareholders whose names appear on the register of members of the Company at the close of business on November 19, 2018, being the record date for determination of entitlements to the Quarterly Dividend.

Share Repurchase Program

Our Board has also approved a new US$500 million share repurchase program. The program is effective immediately and is in addition to the program that was announced in March 2018, which has nearly been exhausted. The new program permits the Company to purchase up to US$500 million of its ordinary shares and/or American depositary shares over a three-year period commencing from November 8, 2018. Purchases under this authorization may be made from time to time on the open market at prevailing market prices, including pursuant to a trading plan in accordance with Rule 10b-18 and/or Rule 10b5-1 of the Securities Exchange Act, and/or in privately-negotiated transactions. The timing of the purchases and the amount of shares and/or ADSs purchased will be determined by the Company’s management based on its evaluation of market conditions, trading prices, applicable securities laws and other factors. The share repurchase program may be suspended, modified or terminated at any time, and the Company has no obligation to repurchase any amounts under the program.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2018 financial results on Thursday, November 8, 2018 at 8:30 a.m. Eastern Time (9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

  US Toll Free                       1 866 519 4004
  US Toll / International         1 845 675 0437
  HK Toll                                852 3018 6771
  HK Toll Free                       800 906 601
  Japan Toll                           81 3 4503 6012
  Japan Toll Free                   012 092 5376
  UK Toll Free                       080 8234 6646
  Australia Toll                       61 290 833 212
  Australia Toll Free               1 800 411 623
  Philippines Toll Free           1 800 1612 0306

  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
  Japan Toll                           81 3 4580 6717
  Japan Toll Free                   012 095 9034
  Philippines Toll Free           1 800 1612 0166

  Conference ID                    3134616

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.

Non-GAAP Financial Measures

  1. “Adjusted EBITDA” is earnings 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 earnings 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 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.
  1. “Adjusted net income” is net income 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 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.

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:

Richard Huang
Director, Investor Relations
Tel: +852 2598 3619
Email: richardlshuang@melco-resorts.com

For media enquiries, please contact:

Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com

                         
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   Nine Months Ended  
  September 30,   September 30,  
  2018     2017     2018     2017    
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
                         
OPERATING REVENUES                        
Casino  $    1,029,861      $    1,285,107      $    3,253,139      $    3,688,084    
Rooms     86,149         68,310         221,515         200,336    
Food and beverage     53,282         45,196         148,112         133,706    
Entertainment, retail and other     50,985         57,357         139,289         159,839    
Gross revenues     1,220,277         1,455,970         3,762,055         4,181,965    
Less: promotional allowances     -          (79,143 )       -          (229,698 )  
Net revenues     1,220,277         1,376,827         3,762,055         3,952,267    
                         
OPERATING COSTS AND EXPENSES                        
Casino     (724,391 )       (861,518 )       (2,189,105 )       (2,508,949 )  
Rooms     (22,819 )       (8,037 )       (55,787 )       (24,252 )  
Food and beverage     (42,134 )       (13,629 )       (116,171 )       (41,871 )  
Entertainment, retail and other     (25,470 )       (22,604 )       (70,836 )       (66,656 )  
General and administrative     (146,559 )       (110,924 )       (381,376 )       (344,505 )  
Payments to the Philippine Parties     (10,754 )       (13,288 )       (45,748 )       (42,549 )  
Pre-opening costs     (1,974 )       (177 )       (33,087 )       (1,177 )  
Development costs     (4,821 )       (14,054 )       (11,728 )       (18,139 )  
Amortization of gaming subconcession     (14,309 )       (14,310 )       (42,928 )       (42,928 )  
Amortization of land use rights     (5,704 )       (5,704 )       (17,112 )       (17,112 )  
Depreciation and amortization     (132,926 )       (113,991 )       (354,360 )       (347,070 )  
Property charges and other     (4,774 )       (5,874 )       (20,957 )       (18,401 )  
Total operating costs and expenses     (1,136,635 )       (1,184,110 )       (3,339,195 )       (3,473,609 )  
OPERATING INCOME     83,642         192,717         422,860         478,658    
NON-OPERATING INCOME (EXPENSES)                        
Interest income     1,354         1,025         4,049         2,497    
Interest expenses, net of capitalized interest     (70,769 )       (63,853 )       (190,888 )       (195,073 )  
Other finance costs     (1,299 )       (1,567 )       (4,066 )       (4,504 )  
Foreign exchange (losses) gains, net     (5,730 )       2,793         (5,359 )       12,191    
Other income, net     1,561         870         3,012         2,258    
Loss on extinguishment of debt     (213 )       (16,939 )       (213 )       (48,398 )  
Costs associated with debt modification     -          (881 )       -          (2,793 )  
Total non-operating expenses, net     (75,096 )       (78,552 )       (193,465 )       (233,822 )  
INCOME BEFORE INCOME TAX     8,546         114,165         229,395         244,836    
INCOME TAX EXPENSE     (1,319 )       (1,552 )       (5,715 )       (935 )  
NET INCOME     7,227         112,613         223,680         243,901    
NET LOSS (INCOME) ATTRIBUTABLE TO                         
  NONCONTROLLING INTERESTS     2,375         3,294         (172 )       21,929    
NET INCOME ATTRIBUTABLE TO                         
  MELCO RESORTS & ENTERTAINMENT LIMITED  $    9,602      $    115,907      $    223,508      $    265,830    
                         
NET INCOME ATTRIBUTABLE TO                         
  MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:                        
  Basic  $   0.007     $   0.079     $   0.152     $   0.181    
  Diluted $   0.007     $   0.078     $   0.151     $   0.180    
                         
NET INCOME ATTRIBUTABLE TO                         
  MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:                        
  Basic  $   0.020     $   0.237     $   0.457     $   0.544    
  Diluted $   0.020     $   0.235     $   0.453     $   0.539    
                         
WEIGHTED AVERAGE SHARES OUTSTANDING                         
  USED IN NET INCOME ATTRIBUTABLE TO                         
  MELCO RESORTS & ENTERTAINMENT LIMITED                        
  PER SHARE CALCULATION:                        
  Basic      1,458,911,371         1,468,293,998         1,468,530,346         1,467,083,364    
  Diluted     1,466,184,293         1,479,677,417         1,480,000,417         1,478,440,011    
                         
                         
Note The Company adopted the New Revenue Standard using the modified retrospective method from January 1, 2018. Results for the periods beginning on or after January 1, 2018 are presented under the New Revenue Standard, while prior year amounts are not adjusted and continue to be reported in accordance with the previous basis. 
                         


           
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
           
           
  September 30,   December 31,
  2018     2017  
    (Unaudited)     (Audited)
           
ASSETS          
           
CURRENT ASSETS          
Cash and cash equivalents  $    1,226,504      $    1,408,211  
Investment securities     92,827         89,874  
Bank deposits with original maturities over three months     20,000         9,884  
Restricted cash     87,089         45,412  
Accounts receivable, net     198,900         176,544  
Amounts due from affiliated companies     7,129         2,377  
Inventories     40,086         34,988  
Prepaid expenses and other current assets     82,657         77,503  
Total current assets     1,755,192         1,844,793  
           
PROPERTY AND EQUIPMENT, NET     5,740,402         5,730,760  
GAMING SUBCONCESSION, NET     213,155         256,083  
INTANGIBLE ASSETS     4,220         4,220  
GOODWILL     81,915         81,915  
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS     200,620         189,645  
RESTRICTED CASH     130         130  
DEFERRED TAX ASSETS     143         11  
LAND USE RIGHTS, NET     770,387         787,499  
TOTAL ASSETS  $    8,766,164      $    8,895,056  
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
CURRENT LIABILITIES          
Accounts payable  $    24,290      $    16,041  
Accrued expenses and other current liabilities     1,643,290         1,563,585  
Income tax payable     7,859         3,179  
Capital lease obligations, due within one year      32,916         33,387  
Current portion of long-term debt, net     86,588         51,032  
Amounts due to affiliated companies     7,890         16,790  
Total current liabilities     1,802,833         1,684,014  
           
LONG-TERM DEBT, NET     3,720,981         3,506,530  
OTHER LONG-TERM LIABILITIES     28,503         48,087  
DEFERRED TAX LIABILITIES     54,742         53,994  
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR     245,835         265,896  
AMOUNTS DUE TO AFFILIATED COMPANIES     -          919  
           
SHAREHOLDERS' EQUITY          
Ordinary shares     14,830         14,784  
Treasury shares     (441,028 )       (90 )
Additional paid-in capital     3,692,379         3,671,805  
Accumulated other comprehensive losses      (31,046 )       (26,610 )
Accumulated losses     (763,783 )       (772,338 )
Total Melco Resorts & Entertainment Limited shareholders’ equity     2,471,352         2,887,551  
Noncontrolling interests     441,918         448,065  
Total equity     2,913,270         3,335,616  
TOTAL LIABILITIES AND EQUITY  $    8,766,164     $   8,895,056  
           


                       
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   Nine Months Ended
  September 30,   September 30,
  2018     2017     2018     2017  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                       
Net Income Attributable to                       
  Melco Resorts & Entertainment Limited $   9,602     $   115,907     $   223,508     $   265,830  
Pre-opening Costs     1,974         177         33,087         1,177  
  Development Costs     4,821         14,054         11,728         18,139  
Property Charges and Other     4,774         5,874         20,957         18,401  
  Loss on Extinguishment of Debt     213         16,939         213         48,398  
  Costs Associated with Debt Modification     -          881         -          2,793  
  Income Tax Impact on Adjustments     -          86         (179 )       (262 )
Noncontrolling Interests Impact on Adjustments     (430 )       (922 )       (1,870 )       (2,674 )
Adjusted Net Income Attributable to                       
  Melco Resorts & Entertainment Limited $   20,954     $   152,996     $   287,444     $   351,802  
                       
ADJUSTED NET INCOME ATTRIBUTABLE TO                      
  MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:                  
  Basic  $   0.014     $   0.104     $   0.196     $   0.240  
  Diluted $   0.014     $   0.103     $   0.194     $   0.238  
                       
ADJUSTED NET INCOME ATTRIBUTABLE TO                      
  MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:                      
  Basic  $   0.043     $   0.313     $   0.587     $   0.719  
  Diluted $   0.043     $   0.310     $   0.582     $   0.714  
                       
WEIGHTED AVERAGE SHARES OUTSTANDING                       
  USED IN ADJUSTED NET INCOME ATTRIBUTABLE TO                       
  MELCO RESORTS & ENTERTAINMENT LIMITED                      
  PER SHARE CALCULATION:                      
  Basic      1,458,911,371         1,468,293,998         1,468,530,346         1,467,083,364  
  Diluted     1,466,184,293         1,479,677,417         1,480,000,417         1,478,440,011  
                       


                                           
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 September 30, 2018  
  Altira Macau   Mocha   City of Dreams   Studio City   City of
Dreams
Manila
  Corporate
and Other
  Total  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                                           
Operating Income (Loss) $   (5,993 )   $   2,445     $   76,044   $   43,153   $   24,760   $   (56,767 )   $   83,642  
  Payments to the Philippine Parties     -          -          -        -        10,754       -          10,754  
  Land Rent to Belle Corporation     -          -          -        -        739       -          739  
  Pre-opening Costs     -          -          1,597       357       20       -          1,974  
  Development Costs     -          -          -        -        -        4,821         4,821  
  Depreciation and Amortization     4,951         2,124         63,624       44,892       18,618       18,730         152,939  
  Share-based Compensation     107         36         903       388       342       5,263         7,039  
  Property Charges and Other     (21 )       -          4,975       563       -        (743 )       4,774  
Adjusted EBITDA     (956 )       4,605         147,143       89,353       55,233       (28,696 )       266,682  
  Corporate and Other Expenses     -          -          -        -        -        28,696         28,696  
Adjusted Property EBITDA $   (956 )    $    4,605      $    147,143    $    89,353    $    55,233    $    -       $    295,378  
                                           
                                           
  Three Months Ended September 30, 2017  
  Altira Macau   Mocha   City of Dreams   Studio City   City of
Dreams
Manila
  Corporate
and Other
  Total  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                                           
Operating Income (Loss) $   (10,973 )   $   4,752     $   200,729   $   46,006   $   22,266   $   (70,063 )   $ 192,717  
  Payments to the Philippine Parties     -          -          -        -        13,288       -          13,288  
  Land Rent to Belle Corporation     -          -          -        -        778       -          778  
  Pre-opening Costs     -          -          152       25       -        -        177  
  Development Costs     -          -          -        -        -        14,054         14,054  
  Depreciation and Amortization     5,101         1,990         42,082       46,077       20,722       18,033       134,005  
  Share-based Compensation     68         49         822       322       196       3,817       5,274  
  Property Charges and Other     197         (270 )       2,586       3,207       -        154         5,874  
Adjusted EBITDA     (5,607 )       6,521         246,371       95,637       57,250       (34,005 )       366,167  
  Corporate and Other Expenses     -          -          -        -        -        34,005         34,005  
Adjusted Property EBITDA $   (5,607 )    $    6,521      $    246,371    $    95,637    $    57,250    $    -       $    400,172  
                                           


                                         
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
                                         
                                         
  Nine Months Ended September 30, 2018
  Altira Macau   Mocha   City of Dreams   Studio City   City of
Dreams
Manila
  Corporate
and Other
  Total
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                                         
Operating Income (Loss) $   20,198     $   10,847     $   334,417   $   132,510     $   97,084     $   (172,196 )   $   422,860
  Payments to the Philippine Parties     -          -          -        -          45,748         -          45,748
  Land Rent to Belle Corporation     -          -          -        -          2,254         -          2,254
  Pre-opening Costs     -          -          32,657       410         20         -          33,087
  Development Costs     -          -          -        -          -          11,728         11,728
  Depreciation and Amortization     14,470         6,232         146,447       134,437         56,594         56,220         414,400
  Share-based Compensation     278         111         2,599       1,154         (399 )       14,475         18,218
  Property Charges and Other     440         (432 )       10,517       4,094         28         6,310         20,957
Adjusted EBITDA   35,386       16,758         526,637     272,605       201,329         (83,463 )       969,252
  Corporate and Other Expenses     -          -          -        -          -          83,463         83,463
Adjusted Property EBITDA $   35,386      $    16,758      $    526,637    $    272,605      $    201,329      $    -       $    1,052,715
                                         
                                         
  Nine Months Ended September 30, 2017
  Altira Macau   Mocha   City of Dreams   Studio City   City of
Dreams
Manila
  Corporate
and Other
  Total
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                                         
Operating Income (Loss) $   (13,188 )   $   13,092     $   492,973   $   97,332     $   72,664     $   (184,215 )   $   478,658
  Payments to the Philippine Parties     -          -          -        -          42,549         -          42,549
  Land Rent to Belle Corporation     -          -          -        -          2,361         -          2,361
  Pre-opening Costs     -          -          967       (15 )       225         -          1,177
  Development Costs     -          -          -        -          -          18,139         18,139
  Depreciation and Amortization     15,998         6,222         130,434       138,375         63,158         52,923         407,110
  Share-based Compensation     150         97         2,106       927         269         8,546         12,095
  Property Charges and Other     254         (208 )       8,715       7,474         -          2,166         18,401
Adjusted EBITDA     3,214       19,203         635,195     244,093       181,226       (102,441 )       980,490
  Corporate and Other Expenses     -          -          -        -          -          102,441         102,441
Adjusted Property EBITDA $   3,214      $    19,203      $    635,195    $    244,093      $    181,226      $    -       $    1,082,931
                                         


                         
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   Nine Months Ended  
  September 30,   September 30,  
  2018     2017     2018   2017    
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                         
Net Income Attributable to Melco Resorts & Entertainment Limited $   9,602     $ 115,907     $   223,508   $   265,830    
Net (Loss) Income Attributable to Noncontrolling Interests     (2,375 )       (3,294 )       172       (21,929 )  
Net Income     7,227         112,613         223,680       243,901    
Income Tax Expense      1,319         1,552         5,715       935    
Interest and Other Non-Operating Expenses, Net     75,096         78,552         193,465       233,822    
Property Charges and Other     4,774         5,874         20,957       18,401    
Share-based Compensation     7,039         5,274         18,218       12,095    
Depreciation and Amortization     152,939         134,005         414,400       407,110    
Development Costs     4,821         14,054         11,728       18,139    
Pre-opening Costs     1,974         177         33,087       1,177    
Land Rent to Belle Corporation     739         778         2,254       2,361    
Payments to the Philippine Parties     10,754         13,288         45,748       42,549    
Adjusted EBITDA     266,682         366,167         969,252       980,490    
Corporate and Other Expenses   28,696       34,005         83,463       102,441    
Adjusted Property EBITDA $   295,378     $   400,172     $   1,052,715   $   1,082,931    
                         


  

Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule 
 
            Three Months Ended   Nine Months Ended
            September 30,    September 30, 
              2018       2017       2018       2017  
Room Statistics:                    
                         
  Altira Macau                    
    Average daily rate (3)     $   187     $   201     $   190     $   203  
    Occupancy per available room       99 %     98 %     99 %     95 %
    Revenue per available room (4)     $   186     $   197     $   188     $   193  
                         
  City of Dreams                    
    Average daily rate (3)     $   215     $   201     $   208     $   200  
    Occupancy per available room       96 %     97 %     97 %     97 %
    Revenue per available room (4)     $   208     $   195     $   202     $   194  
                         
  Studio City                    
    Average daily rate (3)     $   141     $   142     $   138     $   139  
    Occupancy per available room       100 %     98 %     100 %     98 %
    Revenue per available room (4)     $   141     $   139     $   138     $   137  
                         
  City of Dreams Manila                  
    Average daily rate (3)     $   158     $   158     $   158     $   156  
    Occupancy per available room       98 %     96 %     98 %     96 %
    Revenue per available room (4)     $   155     $   151     $   155     $   150  
                         
Other Information:                    
  Altira Macau                    
    Average number of table games       106         101         104         108  
    Average number of gaming machines       128         61         127         58  
    Table games win per unit per day (5)   $   15,873     $   13,707     $   19,440     $   14,225  
    Gaming machines win per unit per day (6)   $   160     $   123     $   150     $   103  
                         
  City of Dreams                    
    Average number of table games       467         476         476         479  
    Average number of gaming machines       765         673         707         758  
    Table games win per unit per day (5)   $   15,678     $   17,459     $   15,605     $   16,878  
    Gaming machines win per unit per day (6)   $   691     $   506     $   807     $   504  
                         
  Studio City                    
    Average number of table games       288         291         292         287  
    Average number of gaming machines       938         970         947         974  
    Table games win per unit per day (5)   $   14,287     $   14,535     $   14,361     $   12,521  
    Gaming machines win per unit per day (6)   $   219     $   214     $   235     $   211  
                         
  City of Dreams Manila                  
    Average number of table games       307         290         300         280  
    Average number of gaming machines       1,920         1,792         1,885         1,781  
    Table games win per unit per day (5)   $   5,165     $   4,705     $   5,579     $   5,417  
    Gaming machines win per unit per day (6)   $   280     $   256     $   284     $   272  
                         
    (3) Average daily rate is calculated by dividing total room revenues including the retail value of complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms
    (4) Revenue per available room is calculated by dividing total room revenues including the retail value of complimentary rooms (less service charges, if any) by total rooms available
    (5) 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 
    (6) 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 

01_Melco_Horizontal_S_RGB.jpg

Melco Resorts & Entertainment Limited