MACAU, Feb. 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 fourth quarter and full year ended December 31, 2017.

Net revenue for the fourth quarter of 2017 was US$1,332.6 million, representing an increase of approximately 12% from US$1,192.9 million for the comparable period in 2016. The increase in net revenue was primarily attributable to higher rolling chip revenues across all properties and higher mass market table games revenues in Studio City and City of Dreams Manila, partially offset by lower mass market table games revenues in City of Dreams in Macau.

Operating income for the fourth quarter of 2017 was US$129.0 million, compared with operating income of US$116.0 million in the fourth quarter of 2016, representing an increase of 11%.

Adjusted property EBITDA(1) was US$339.8 million for the fourth quarter of 2017, as compared to Adjusted property EBITDA of US$304.3 million in the fourth quarter of 2016, representing an increase of 12%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to the higher contribution from Studio City and Altira Macau driven by increased casino revenues, partially offset by lower contribution from City of Dreams in Macau.

Net income attributable to Melco Resorts & Entertainment Limited for the fourth quarter of 2017 was US$81.2 million, or US$0.17 per ADS, compared with US$43.3 million, or US$0.09 per ADS, in the fourth quarter of 2016. The net loss attributable to noncontrolling interests during the fourth quarter of 2017 of US$9.8 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “After three consecutive years of decline, Macau’s gaming revenue rebounded strongly in 2017 with approximately 20% growth compared to 2016 on a year-on-year basis. In 2018, we expect another year of robust growth for Macau, as the market benefits from the improving demand environment, the anticipated completion of the Hong Kong-Zhuhai-Macau Bridge, and the ongoing build-out of Cotai.

“Mass and Premium Mass gaming should remain the primary drivers of Macau’s future growth, which is consistent with our long-held vision for the evolution of the market. Our first mover advantage and our strong determination to offer the best integrated resort experience have enabled City of Dreams to remain a leader in Macau’s premium mass gaming market, despite multiple new resorts opening. To further solidify our leadership position in this important market segment, we have executed on an extensive upgrade to our flagship property, City of Dreams, which includes the announced launch of the Forbes 5-star “NÜWA” hotel, the rebranding and redevelopment of The Count:Down, and the eagerly awaited opening of Morpheus, the cornerstone of the final phase of development for City of Dreams, which is set to be a true landmark for all of Macau.

“At Studio City, we are embarking on a series of property upgrades to refine the entertainment offerings and improve accessibility into the resort, which we believe will facilitate the continuing ramp up that Studio City has experienced over the past several quarters. We will also continue to explore the phase 2 expansion of Studio City which we believe will augment the existing room inventory and entertainment offerings and contribute to the continued growth and development of this property.

“In The Philippines, City of Dreams Manila delivered another strong quarter with all gaming segments continuing to enjoy robust year-on-year growth, despite new supply within Entertainment City.

“Aiming at optimizing our operating excellence, we have announced the redeployment of our senior operating management with David Sisk appointed as the Property President of City of Dreams Macau and Geoff Andres appointed as Property President of Studio City. Both of them have demonstrated their innovative spirit and their expertise in delivering strong growth. We believe the cross-pollination of new ideas and management initiatives will provide an opportunity for all our integrated resorts to benefit from performance improvements.

“The board has, after evaluating the company’s current liquidity position and future expected capital needs, decided to increase the quarterly cash dividend by 50% to US$0.045 per ordinary share, which is equivalent to US$0.135 per ADS, from the previous quarterly dividend of US$0.03 per ordinary share.

“Lastly, Japan continues to be a core focus of ours. With the passage of the Integrated Resorts (IR) implementation bill, the country will take a major step forward toward the development of the next generation of integrated resorts that will operate in this incredibly exciting, yet currently underpenetrated, tourism destination. With our high quality assets, dedication to world-class entertainment offerings, market-leading social safeguards and compliance culture, and 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 unique Japanese touch.”
  
City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2017, net revenue at City of Dreams was US$612.6 million compared to US$661.1 million in the fourth quarter of 2016. City of Dreams generated Adjusted EBITDA of US$169.7 million in the fourth quarter of 2017 compared with Adjusted EBITDA of US$188.7 million in the fourth quarter of 2016. The year-on-year decrease in Adjusted EBITDA was primarily a result of lower mass market table games revenues, partially offset by higher rolling chip revenues and recovery of previously provided doubtful debt.  

Rolling chip volume totaled US$11.4 billion for the fourth quarter of 2017 versus US$11.1 billion in the fourth quarter of 2016. The rolling chip win rate was 2.7% in the fourth quarter of 2017 versus 2.6% in the fourth quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$1,226.0 million compared with US$1,109.9 million in the fourth quarter of 2016. The mass market table games hold percentage was 28.6% in the fourth quarter of 2017 compared to 36.3% in the fourth quarter of 2016.

Gaming machine handle for the fourth quarter of 2017 was US$1,122.0 million, compared with US$1,051.8 million in the fourth quarter of 2016. The gaming machine win rate was 4.2% in the fourth quarter of 2017 versus 3.9% in the fourth quarter of 2016.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2017 was US$71.9 million, compared with US$79.2 million in the fourth quarter of 2016.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2017, net revenue at Altira Macau was US$140.2 million compared to US$103.3 million in the fourth quarter of 2016. Altira Macau generated Adjusted EBITDA of US$17.5 million in the fourth quarter of 2017 compared with Adjusted EBITDA of US$3.3 million in the fourth quarter of 2016. The year-on-year increase in Adjusted EBITDA was primarily a result of higher rolling chip revenues and recovery of previously provided doubtful debt.  

Rolling chip volume totaled US$4.9 billion in the fourth quarter of 2017 versus US$4.4 billion in the fourth quarter of 2016. The rolling chip win rate was 3.3% in the fourth quarter of 2017 versus 2.7% in the fourth quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$125.2 million in the fourth quarter of 2017, representing an increase from US$112.8 million generated in the comparable period in 2016.  The mass market table games hold percentage was 18.4% in the fourth quarter of 2017 compared with 19.2% in the fourth quarter of 2016.

Gaming machine handle for the fourth quarter of 2017 was US$20.6 million, compared with US$7.9 million in the fourth quarter of 2016. The gaming machine win rate was 6.0% in the fourth quarter of 2017 versus 6.8% in the fourth quarter of 2016.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2017 was US$7.0 million compared with US$7.1 million in the fourth quarter of 2016.

Mocha Clubs Fourth Quarter Results

Net revenue from Mocha Clubs totaled US$30.7 million in the fourth quarter of 2017 as compared to US$28.9 million in the fourth quarter of 2016. Mocha Clubs generated US$7.4 million of Adjusted EBITDA in the fourth quarter of 2017 compared with US$5.4 million in the same period in 2016.

Gaming machine handle for the fourth quarter of 2017 was US$622.7 million, compared with US$614.4 million in the fourth quarter of 2016. The gaming machine win rate was 4.8% in the fourth quarter of 2017 versus 4.6% in the fourth quarter of 2016.

Studio City Fourth Quarter Results

For the quarter ended December 31, 2017, net revenue at Studio City was US$369.0 million compared to US$246.2 million in the fourth quarter of 2016. Studio City generated Adjusted EBITDA of US$91.5 million in the fourth quarter of 2017 compared with Adjusted EBITDA of US$56.7 million in the fourth quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of the commencement of rolling chip operations in November 2016 and better performance in the mass market table games segment.

Rolling chip volume totaled US$5.7 billion for the fourth quarter of 2017 versus US$1.3 billion in the fourth quarter of 2016. The rolling chip win rate was 2.8% in the fourth quarter of 2017 versus 1.4% in the fourth quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$848.2 million compared with US$683.2 million in the fourth quarter of 2016. The mass market table games hold percentage was 26.1% in the fourth quarter of 2017 compared to 26.9% in the fourth quarter of 2016.

Gaming machine handle for the fourth quarter of 2017 was US$539.0 million, compared with US$519.3 million in the fourth quarter of 2016. The gaming machine win rate was 4.1% in the fourth quarter of 2017 versus 3.9% in the fourth quarter of 2016.

Total non-gaming revenue at Studio City in the fourth quarter of 2017 was US$52.2 million, compared with US$53.3 million in the fourth quarter of 2016.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2017, net revenue at City of Dreams Manila was US$167.5 million compared to US$144.7 million in the fourth quarter of 2016.  City of Dreams Manila generated Adjusted EBITDA of US$53.8 million in the fourth quarter of 2017 compared to US$50.2 million in the comparable period of 2016.

Rolling chip volume totaled US$2.9 billion for the fourth quarter of 2017 versus US$2.1 billion in the fourth quarter of 2016. The rolling chip win rate was 3.1% in the fourth quarter of 2017 versus 3.5% in the fourth quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$189.2 million for the fourth quarter of 2017, compared with US$149.0 million in the fourth quarter of 2016. The mass market table games hold percentage was 30.9% in the fourth quarter of 2017 compared to 27.8% in the fourth quarter of 2016.

Gaming machine handle for the fourth quarter of 2017 was US$793.3 million, compared with US$671.3 million in the fourth quarter of 2016. The gaming machine win rate was 5.5% in the fourth quarter of 2017 versus 5.9% in the fourth quarter of 2016.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2017 was US$31.4 million, compared with US$28.1 million in the fourth quarter of 2016.

Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2017 were US$58.5 million, which mainly included interest expenses, net of capitalized interest, of US$54.7 million and other finance costs of US$7.5 million. We recorded US$10.5 million of capitalized interest during the fourth quarter of 2017 relating to the development of Morpheus at City of Dreams.

The year-on-year decrease of US$36.8 million in net non-operating expenses was primarily a result of the loss on extinguishment of debt and costs associated with debt modification arising from the refinancing of the Studio City project facility in the fourth quarter of 2016, as well as lower other finance costs in the fourth quarter of 2017.

Depreciation and amortization costs of US$133.5 million were recorded in the fourth quarter of 2017 of which US$14.3 million was related to the amortization of our gaming subconcession and US$5.7 million was related to the amortization of land use rights.

Financial Position and Capital Expenditure

Total cash and bank balances as of December 31, 2017 were US$1.5 billion, including US$9.9 million of bank deposits with original maturities over three months and US$45.5 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the fourth quarter of 2017, was US$3.6 billion.

Capital expenditures for the fourth quarter of 2017 were US$167.8 million, which predominantly related to Morpheus and other various projects at City of Dreams. In January 2018, the development period of the land on which City of Dreams is located was extended to June 11, 2018.

Full Year Results

For the year ended December 31, 2017, Melco Resorts & Entertainment Limited reported net revenue of US$5.3 billion versus $4.5 billion in the prior year. The year-on-year increase in net revenue was primarily attributable to better group-wide performance in all gaming segments, especially the performance in rolling chip segment including the fully-operating rolling chip operations in Studio City in the current year.

Operating income for 2017 was US$607.6 million, compared with operating income of US$363.1 million for 2016, representing an increase of 67%.

Adjusted property EBITDA for the year ended December 31, 2017 was US$1,422.8 million, as compared to Adjusted property EBITDA of US$1,087.5 million in 2016, representing an increase of 31%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to better group-wide performance in all gaming segments.

Net income attributable to Melco Resorts & Entertainment Limited for 2017 was US$347.0 million, or US$0.71 per ADS, compared with US$175.9 million, or US$0.35 per ADS, for 2016. The net loss attributable to noncontrolling interests for 2017 of US$31.7 million was related to Studio City and City of Dreams Manila.

Amendment of Dividend Policy

To reaffirm Melco’s commitment to returning surplus capital to shareholders, our Board, after evaluating Melco’s current liquidity position and future expected capital needs, has amended our quarterly dividend policy from one targeting a quarterly cash dividend payment of US$0.03 per ordinary share (equivalent to US$0.09 per ADS, each representing three ordinary shares) of the Company, to one targeting a quarterly cash dividend payment of US$0.045 per ordinary share (equivalent to US$0.135 per ADS) of the Company.

The new dividend policy will take effect beginning with any dividends declared by our Board for the fourth quarter of 2017 and continue until amended or otherwise determined by our Board. Distribution of dividends under this new dividend policy is subject to the Company’s accumulated and future earnings, cash availability and future commitments.

Our Board will continue to review from time to time our dividend policy as part of our commitment to maximizing shareholder value, taking into consideration our financial performance and market conditions.

Dividend Declaration

On February 8, 2018, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.045 per ordinary share (equivalent to US$0.135 per ADS) for the fourth quarter of 2017 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about March 7, 2018 to our shareholders whose names appear on the register of members of the Company at the close of business on February 20, 2018, being the record date for determination of entitlements to the Quarterly Dividend.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its fourth quarter 2017 financial results on Thursday, February 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 Free1 866 519 4004
US Toll / International1 845 675 0437
HK Toll852 3018 6771
HK Toll Free800 906 601
Japan Toll81 3 4503 6012
Japan Toll Free012 092 5376
UK Toll Free080 8234 6646
Australia Toll61 290 833 212
Australia Toll Free1 800 411 623
Philippines Toll Free1 800 1651 0607
  
PasscodeMLCO

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 Free1 855 452 5696
US Toll / International 1 646 254 3697
HK Toll Free800 963 117
Japan Toll81 3 4580 6717
Japan Toll Free012 095 9034
Philippines Toll Free1 800 1612 0166
  
Conference ID2589138
  

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, net gain on disposal of property and equipment 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, net gain on disposal of property and equipment to Belle Corporation, Corporate and Others expenses and other non-operating income and expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted EBITDA and adjusted property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents adjusted EBITDA and adjusted property EBITDA because they are used by some investors as ways to measure a company's ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported adjusted EBITDA and adjusted property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, adjusted EBITDA and adjusted property EBITDA should not be considered as alternatives to operating income as indicators of the Company's performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income, adjusted EBITDA and adjusted property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using adjusted EBITDA and adjusted property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. 

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

(2) “Adjusted net income” is net income before net gain on disposal of property and equipment to Belle Corporation, 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:
Ross Dunwoody
Vice President, Development & Investor Relations
Tel: +853 8868 7575 or +852 2598 3689
Email: rossdunwoody@melco-resorts.com  

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 Year Ended
 December 31, December 31,
 2017   2016   2017   2016
 (Unaudited) (Unaudited) (Unaudited) (Audited)
            
OPERATING REVENUES           
Casino$1,249,513  $1,099,844  $4,937,597  $4,176,667 
Rooms 71,164   69,338   271,500   265,289 
Food and beverage 51,273   47,904   184,979   177,515 
Entertainment, retail and other 43,924   51,893   203,763   197,011 
Gross revenues 1,415,874   1,268,979   5,597,839   4,816,482 
Less: promotional allowances (83,318)  (76,101)  (313,016)  (297,086)
Net revenues 1,332,556   1,192,878   5,284,823   4,519,396 
            
OPERATING COSTS AND EXPENSES                                          
Casino (865,064)  (750,898)  (3,374,013)  (2,904,922)
Rooms (8,389)  (8,260)  (32,641)  (33,218)
Food and beverage (16,056)  (18,212)  (57,927)  (65,781)
Entertainment, retail and other (21,612)  (27,326)  (88,268)  (109,817)
General and administrative (122,616)  (120,510)  (467,121)  (446,591)
Payments to the Philippine Parties (9,112)  (9,928)  (51,661)  (34,403)
Pre-opening costs (1,097)  (1,671)  (2,274)  (3,883)
Development costs (12,976)  (88)  (31,115)  (95)
Amortization of gaming subconcession (14,309)  (14,309)  (57,237)  (57,237)
Amortization of land use rights (5,705)  (5,704)  (22,817)  (22,816)
Depreciation and amortization (113,451)  (117,515)  (460,521)  (472,219)
Property charges and other (13,215)  (2,489)  (31,616)  (5,298)
Total operating costs and expenses (1,203,602)  (1,076,910)  (4,677,211)  (4,156,280)
OPERATING INCOME 128,954   115,968   607,612   363,116 
NON-OPERATING INCOME (EXPENSES)           
Interest income 1,082   1,738   3,579   5,951 
Interest expenses, net of capitalized interest (54,733)  (56,170)  (229,582)  (223,567)
Other finance costs (7,533)  (13,344)  (32,261)  (55,796)
Foreign exchange gains (losses), net 592   (2,919)  12,783   7,356 
Other income, net 3,024   936   5,282   3,572 
Loss on extinguishment of debt (939)  (17,435)  (49,337)  (17,435)
Costs associated with debt modification -   (8,101)  (2,793)  (8,101)
Total non-operating expenses, net (58,507)  (95,295)  (292,329)  (288,020)
INCOME BEFORE INCOME TAX 70,447   20,673   315,283   75,096 
INCOME TAX CREDIT (EXPENSE) 945   (4,162)  10   (8,178)
NET INCOME 71,392   16,511   315,293   66,918 
NET LOSS ATTRIBUTABLE TO           
NONCONTROLLING INTERESTS 9,780   26,765   31,709   108,988 
NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED$81,172  $43,276  $347,002  $175,906 
            
NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:         
Basic$0.055  $0.030  $0.236  $0.116 
Diluted$0.055  $0.029  $0.235  $0.115 
            
NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:         
Basic$0.166  $0.089  $0.709  $0.348 
Diluted$0.164  $0.088  $0.704  $0.346 
            
WEIGHTED AVERAGE SHARES OUTSTANDING         
USED IN NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED         
PER SHARE CALCULATION:           
Basic 1,469,344,163   1,463,660,679   1,467,653,209   1,516,714,277 
Diluted 1,482,030,219   1,473,600,609   1,479,342,209   1,525,284,272 
            

  

      
      
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
      
      
 December 31,   December 31,
 2017 2016
 (Unaudited) (Audited)
      
ASSETS     
      
CURRENT ASSETS     
Cash and cash equivalents$1,408,211  $1,702,310 
Investment securities 89,874   - 
Bank deposits with original maturities over three months                              9,884   210,840 
Restricted cash        45,412   39,152 
Accounts receivable, net 176,544   225,438 
Amounts due from affiliated companies 2,377   1,103 
Inventories 34,988   32,600 
Prepaid expenses and other current assets 77,503   68,111 
Total current assets 1,844,793   2,279,554 
      
PROPERTY AND EQUIPMENT, NET 5,730,760   5,655,823 
GAMING SUBCONCESSION, NET 256,083   313,320 
INTANGIBLE ASSETS 4,220   4,220 
GOODWILL 81,915   81,915 
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS 189,645   194,911 
RESTRICTED CASH 130   130 
DEFERRED TAX ASSETS 11   152 
LAND USE RIGHTS, NET 787,499   810,316 
TOTAL ASSETS$8,895,056  $9,340,341 
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
CURRENT LIABILITIES     
Accounts payable$16,041  $17,434 
Accrued expenses and other current liabilities 1,563,585   1,369,943 
Income tax payable 3,179   7,422 
Capital lease obligations, due within one year 33,387   30,730 
Current portion of long-term debt, net 51,032   50,583 
Amounts due to affiliated companies 16,790   3,028 
Total current liabilities 1,684,014   1,479,140 
      
LONG-TERM DEBT, NET 3,506,530   3,669,692 
OTHER LONG-TERM LIABILITIES 48,087   49,287 
DEFERRED TAX LIABILITIES 53,994   56,451 
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR 265,896   262,357 
AMOUNT DUE TO AN AFFILIATED COMPANY 919   - 
      
SHAREHOLDERS' EQUITY     
Ordinary shares 14,784   14,759 
Treasury shares (90)  (108)
Additional paid-in capital 3,671,805   2,783,062 
Accumulated other comprehensive losses (26,610)  (24,768)
(Accumulated losses) retained earnings (772,338)  570,925 
Total Melco Resorts & Entertainment Limited shareholders’ equity 2,887,551   3,343,870 
Noncontrolling interests 448,065   479,544 
Total equity 3,335,616   3,823,414 
TOTAL LIABILITIES AND EQUITY$8,895,056  $9,340,341 
      

  

            
            
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 Year Ended
 December 31, December 31,
 2017   2016     2017 2016
 (Unaudited) (Unaudited) (Unaudited)   (Unaudited)
            
Net Income Attributable to           
Melco Resorts & Entertainment Limited$81,172  $43,276  $347,002  $175,906 
Net Gain on Disposal of Property and Equipment           
to Belle Corporation -   -   -   (8,134)
Pre-opening Costs 1,097   1,671   2,274   3,883 
Development Costs 12,976   88   31,115   95 
Property Charges and Other 13,215   2,489   31,616   5,298 
Loss on Extinguishment of Debt 939   17,435   49,337   17,435 
Costs Associated with Debt Modification -   8,101   2,793   8,101 
Income Tax Impact on Adjustments (98)  392   (360)  378 
Noncontrolling Interests Impact on Adjustments (7,932)  (10,291)  (10,606)  (9,947)
Adjusted Net Income Attributable to           
Melco Resorts & Entertainment Limited$101,369  $63,161  $453,171  $193,015 
            
ADJUSTED NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:         
Basic$0.069  $0.043  $0.309  $0.127 
Diluted$0.068  $0.043  $0.306  $0.127 
            
ADJUSTED NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:                                        
Basic$0.207  $0.129  $0.926  $0.382 
Diluted$0.205  $0.129  $0.919  $0.380 
            
WEIGHTED AVERAGE SHARES OUTSTANDING           
USED IN ADJUSTED NET INCOME ATTRIBUTABLE TO           
MELCO RESORTS & ENTERTAINMENT LIMITED           
PER SHARE CALCULATION:           
Basic 1,469,344,163   1,463,660,679   1,467,653,209   1,516,714,277 
Diluted 1,482,030,219   1,473,600,609   1,479,342,209   1,525,284,272 
            

  

                     
                     
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 December 31, 2017
 Altira Macau Mocha City of Dreams   Studio City City of
Dreams
Manila
 Corporate
and Others
 Total
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                     
Operating Income (Loss)$13,039  $5,114  $132,793  $28,915 $19,972  $(70,879) $128,954
                     
Payments to the Philippine Parties -   -   -   -  9,112   -   9,112
Land Rent to Belle Corporation -   -   -   -  782   -   782
Pre-opening Costs -   -   966   131  -   -   1,097
Development Costs -   -   -   -  -   12,976   12,976
Depreciation and Amortization 4,975   2,090   40,782   46,081  21,042   18,495   133,465
Share-based Compensation 54   (73)  828   367  247   3,787   5,210
Property Charges and Other (611)  305   (5,692)  15,981  2,638   594   13,215
Adjusted EBITDA 17,457   7,436   169,677   91,475  53,793   (35,027)  304,811
Corporate and Others Expenses            -   -   -   -  -   35,027   35,027
Adjusted Property EBITDA$17,457  $7,436  $169,677  $91,475 $53,793  $-  $339,838
                     
                     
 Three Months Ended December 31, 2016
 Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
 Corporate
and Others
 Total
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                     
Operating (Loss) Income$(2,410) $2,593  $139,279  $9,373 $19,917  $(52,784) $115,968
                     
Payments to the Philippine Parties -   -   -   -  9,928   -   9,928
Land Rent to Belle Corporation -   -   -   -  803   -   803
Pre-opening Costs -   -   1,047   624  -   -   1,671
Development Costs -   -   -   -  -   88   88
Depreciation and Amortization 5,652   2,797   44,505   45,646  21,443   17,485   137,528
Share-based Compensation 45   45   601   80  117   2,851   3,739
Property Charges and Other -   -   3,245   931  (2,008)  321   2,489
Adjusted EBITDA 3,287   5,435   188,677   56,654  50,200   (32,039)  272,214
Corporate and Others Expenses -   -   -   -  -   32,039   32,039
Adjusted Property EBITDA$3,287  $5,435  $188,677  $56,654 $50,200  $-  $304,253
                     

  

                     
                     
Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to 
Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
                     
                             
 Year Ended December 31, 2017
 Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
 Corporate
and Others
 Total
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                     
Operating (Loss) Income$(149) $18,206 $625,766 $126,247  $92,636  $(255,094) $607,612 
                     
Payments to the Philippine Parties      -   -  -  -   51,661   -   51,661 
Land Rent to Belle Corporation -   -  -  -   3,143   -   3,143 
Pre-opening Costs -   -  1,933  116   225   -   2,274 
Development Costs -   -  -  -   -   31,115   31,115 
Depreciation and Amortization 20,973   8,312  171,216  184,456   84,200   71,418   540,575 
Share-based Compensation 204   24  2,934  1,294   516   12,333   17,305 
Property Charges and Other (357)  97  3,023  23,455   2,638   2,760   31,616 
Adjusted EBITDA 20,671   26,639  804,872  335,568   235,019   (137,468)  1,285,301 
Corporate and Others Expenses -   -  -  -   -   137,468   137,468 
Adjusted Property EBITDA$20,671  $26,639 $804,872 $335,568  $235,019  $-  $1,422,769 
                     
                     
 Year Ended December 31, 2016
 Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
 Corporate
and Others
 Total
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                     
Operating (Loss) Income$(18,091) $11,694 $559,470 $(29,099) $38,705  $(199,563) $363,116 
                     
Payments to the Philippine Parties -   -  -  -   34,403   -   34,403 
Land Rent to Belle Corporation -   -  -  -   3,327   -   3,327 
Net Gain on Disposal of Property and Equipment                  
to Belle Corporation -   -  -  -   (8,134)  -   (8,134)
Pre-opening Costs -   -  1,355  2,528   -   -   3,883 
Development Costs -   -  -  -   -   95   95 
Depreciation and Amortization 22,950   11,921  175,676  179,905   91,389   70,431   552,272 
Share-based Compensation 60   174  2,354  826   2,087   12,986   18,487 
Property Charges and Other 197   -  3,436  1,825   (1,441)  1,281   5,298 
Adjusted EBITDA 5,116   23,789  742,291  155,985   160,336   (114,770)  972,747 
Corporate and Others Expenses -   -  -  -   -   114,770   114,770 
Adjusted Property EBITDA$5,116  $23,789 $742,291 $155,985  $160,336  $-  $1,087,517 
                     

  

            
            
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 Year Ended
 December 31, December 31,
 2017 2016 2017 2016
 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
            
Net Income Attributable to Melco Resorts & Entertainment Limited   $81,172  $43,276  $347,002  $175,906 
Net Loss Attributable to Noncontrolling Interests (9,780)  (26,765)  (31,709)  (108,988)
Net Income 71,392   16,511   315,293   66,918 
Income Tax (Credit) Expense (945)  4,162   (10)  8,178 
Interest and Other Non-Operating Expenses, Net 58,507   95,295   292,329   288,020 
Property Charges and Other 13,215   2,489   31,616   5,298 
Share-based Compensation 5,210   3,739   17,305   18,487 
Depreciation and Amortization 133,465   137,528   540,575   552,272 
Development Costs 12,976   88   31,115   95 
Pre-opening Costs 1,097   1,671   2,274   3,883 
Net Gain on Disposal of Property and Equipment           
to Belle Corporation -   -   -   (8,134)
Land Rent to Belle Corporation 782   803   3,143   3,327 
Payments to the Philippine Parties 9,112   9,928   51,661   34,403 
Adjusted EBITDA 304,811   272,214   1,285,301   972,747 
Corporate and Others Expenses 35,027   32,039   137,468   114,770 
Adjusted Property EBITDA$339,838  $304,253  $1,422,769  $1,087,517 
            

  

             
             
Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
             
      Three Months Ended Year Ended
      December 31, December 31,
      2017 2016 2017 2016
Room Statistics:          
 Altira Macau          
             
  Average daily rate (3)  $209  $210  $204  $205 
             
  Occupancy per available room   99%  94%  96%  94%
             
  Revenue per available room (4)  $207  $197  $196  $193 
             
 City of Dreams          
             
  Average daily rate (3)  $209  $205  $202  $200 
                                                                 
  Occupancy per available room   97%  98%  97%  96%
             
  Revenue per available room (4)  $202  $199  $196  $192 
             
             
 Studio City          
             
  Average daily rate (3)  $145  $138  $140  $136 
             
  Occupancy per available room   99%  99%  99%  98%
             
  Revenue per available room (4)  $144  $137  $138  $133 
             
             
 City of Dreams Manila         
             
  Average daily rate (3)  $163  $156  $158  $159 
             
  Occupancy per available room   97%  96%  96%  91%
             
  Revenue per available room (4)  $158  $149  $152  $145 
             
             
Other Information:          
 Altira Macau          
             
  Average number of table games  103   114   107   121 
             
  Average number of gaming machines  120   62   73   62 
             
  Table games win per unit per day (5) $19,358  $13,447  $15,478  $13,448 
             
  Gaming machines win per unit per day (6) $112  $94  $106  $93 
             
 City of Dreams          
             
  Average number of table games  479   488   479   494 
             
  Average number of gaming machines  712   956   746   1,029 
             
  Table games win per unit per day (5) $15,013  $15,319  $16,408  $15,027 
             
  Gaming machines win per unit per day (6) $726  $466  $557  $381 
             
 Studio City          
             
  Average number of table games  293   266   288   251 
             
  Average number of gaming machines  883   1,103   951   1,097 
             
  Table games win per unit per day (5) $14,123  $8,282  $12,932  $6,871 
             
  Gaming machines win per unit per day (6) $272  $200  $225  $189 
             
 City of Dreams Manila         
             
  Average number of table games  291   272   283   270 
             
  Average number of gaming machines  1,800   1,686   1,786   1,656 
             
  Table games win per unit per day (5) $5,473  $4,576  $5,432  $3,939 
             
  Gaming machines win per unit per day (6) $265  $255  $271  $217 
             
             
  (3) Average daily rate is calculated by dividing total room revenue including the retail value of promotional allowances by total occupied rooms including complimentary rooms
  (4) Revenue per available room is calculated by dividing total room revenue including the retail value of promotional allowances by total rooms available
  (5) Table games win per unit per day is shown before discounts and commissions
  (6) Gaming machines win per unit per day is shown before deducting cost for slot points

 

Primary Logo