MACAU, Nov. 07, 2023 (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 2023.
Total operating revenues for the third quarter of 2023 were US$1.02 billion, representing an increase of approximately 321% from US$241.8 million for the comparable period in 2022. The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations following the relaxation of COVID-19 related restrictions in Macau in January 2023 and the opening of Studio City Phase 2.
Operating income for the third quarter of 2023 was US$94.7 million, compared with operating loss of US$198.5 million in the third quarter of 2022.
Melco generated Adjusted Property EBITDA(1) of US$280.6 million in the third quarter of 2023, compared with negative Adjusted Property EBITDA of US$34.9 million in the third quarter of 2022.
Net loss attributable to Melco Resorts & Entertainment Limited for the third quarter of 2023 was US$16.3 million, or US$0.04 per ADS, compared with US$243.8 million, or US$0.53 per ADS, in the third quarter of 2022. The net loss attributable to noncontrolling interests was US$20.5 million and US$42.8 million during the third quarters of 2023 and 2022, respectively, all of which were related to Studio City, City of Dreams Manila, and City of Dreams Mediterranean and Other.
Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “Macau’s recovery continued to grow from strength to strength into the third quarter of 2023, especially during the summer months, with our property visitation and casino player hours benefiting from this growth. We had solid performance over the October Golden Week and we saw a robust recovery during the remainder of October. Both gaming and non-gaming segment revenues improved, reinforced by our commitment to invest in world class entertainment and enhance our non-gaming amenities. Our market leading design standards were recognized by Prix Versailles with Morpheus being the only hotel in Macau to have the honor of being included as one of the World’s Most Beautiful Hotels.
“City of Dreams Manila continues to generate solid earnings with a strong margin profile. On the other hand, after a successful opening, City of Dreams Mediterranean has been impacted by the conflict in Israel. Our teams are working on re-aligning our marketing strategy.
“Food waste reduction continues to be a key focus of our sustainability strategy with plate waste being the most challenging area to address. With clean plate awareness campaigns taking place almost daily in our staff dining areas at City of Dreams Manila and the implementation of AI technology, plate waste per cover has reduced by more than 60%.”
City of Dreams Third Quarter Results
For the quarter ended September 30, 2023, total operating revenues at City of Dreams were US$506.2 million, compared with US$66.4 million in the third quarter of 2022. City of Dreams generated Adjusted EBITDA of US$153.9 million in the third quarter of 2023, compared with negative Adjusted EBITDA of US$40.2 million in the third quarter of 2022. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments and non-gaming operations.
Rolling chip volume was US$4.43 billion for the third quarter of 2023 versus US$332.2 million in the third quarter of 2022. The rolling chip win rate was 2.48% in the third quarter of 2023 versus 4.53% in the third quarter of 2022. The expected rolling chip win rate range is 2.85%-3.15%.
Mass market table games drop increased to US$1.32 billion in the third quarter of 2023, compared with US$133.5 million in the third quarter of 2022. The mass market table games hold percentage was 32.1% in the third quarter of 2023, compared with 28.6% in the third quarter of 2022.
Gaming machine handle for the third quarter of 2023 was US$807.5 million, compared with US$137.4 million in the third quarter of 2022. The gaming machine win rate was 3.6% in the third quarter of 2023 versus 4.3% in the third quarter of 2022.
Total non-gaming revenue at City of Dreams in the third quarter of 2023 was US$73.6 million, compared with US$19.3 million in the third quarter of 2022.
Altira Macau Third Quarter Results
For the quarter ended September 30, 2023, total operating revenues at Altira Macau were US$24.2 million, compared with US$2.4 million in the third quarter of 2022. Altira Macau generated negative Adjusted EBITDA of US$3.8 million in the third quarter of 2023, compared with negative Adjusted EBITDA of US$12.9 million in the third quarter of 2022. The year-over-year decrease in negative Adjusted EBITDA was primarily a result of better performance in the mass market segment and non-gaming operations.
In the mass market table games segment, drop was US$140.0 million in the third quarter of 2023 versus US$18.4 million in the third quarter of 2022. The mass market table games hold percentage was 18.9% in the third quarter of 2023, compared with 4.8% in the third quarter of 2022.
Gaming machine handle for the third quarter of 2023 was US$86.5 million, compared with US$33.2 million in the third quarter of 2022. The gaming machine win rate was 3.9% in the third quarter of 2023 versus 2.9% in the third quarter of 2022.
Total non-gaming revenue at Altira Macau in the third quarter of 2023 was US$5.3 million, compared with US$1.3 million in the third quarter of 2022.
Mocha and Other Third Quarter Results
Total operating revenues from Mocha and Other were US$30.1 million in the third quarter of 2023, compared with US$18.8 million in the third quarter of 2022. Mocha and Other generated Adjusted EBITDA of US$6.9 million in the third quarter of 2023, compared with Adjusted EBITDA of US$1.7 million in the third quarter of 2022.
Mass market table games drop was US$47.3 million in the third quarter of 2023 versus US$17.8 million in the third quarter of 2022. The mass market table games hold percentage was 18.6% in the third quarter of 2023 versus 20.3% in the third quarter of 2022.
Gaming machine handle for the third quarter of 2023 was US$515.8 million, compared with US$327.6 million in the third quarter of 2022. The gaming machine win rate was 4.5% in the third quarter of 2023 versus 4.7% in the third quarter of 2022.
Studio City Third Quarter Results
For the quarter ended September 30, 2023, total operating revenues at Studio City were US$277.7 million, compared with US$25.6 million in the third quarter of 2022. Studio City generated Adjusted EBITDA of US$67.7 million in the third quarter of 2023, compared with negative Adjusted EBITDA of US$31.5 million in the third quarter of 2022. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments and non-gaming operations.
Studio City’s rolling chip volume was US$713.6 million in the third quarter of 2023 versus US$42.1 million in the third quarter of 2022. The rolling chip win rate was 1.78% in the third quarter of 2023 versus 4.18% in the third quarter of 2022. The expected rolling chip win rate range is 2.85%- 3.15%.
Mass market table games drop increased to US$809.1 million in the third quarter of 2023, compared with US$61.9 million in the third quarter of 2022. The mass market table games hold percentage was 27.5% in the third quarter of 2023, compared with 25.6% in the third quarter of 2022.
Gaming machine handle for the third quarter of 2023 was US$673.9 million, compared with US$98.2 million in the third quarter of 2022. The gaming machine win rate was 3.2% in the third quarter of 2023, compared with 3.1% in the third quarter of 2022.
Total non-gaming revenue at Studio City in the third quarter of 2023 was US$79.0 million, compared with US$9.0 million in the third quarter of 2022.
City of Dreams Manila Third Quarter Results
For the quarter ended September 30, 2023, total operating revenues at City of Dreams Manila were US$124.9 million, compared with US$102.6 million in the third quarter of 2022. City of Dreams Manila generated Adjusted EBITDA of US$48.7 million in the third quarter of 2023, compared with Adjusted EBITDA of US$41.4 million in the comparable period of 2022.
City of Dreams Manila’s rolling chip volume was US$374.6 million in the third quarter of 2023 versus US$513.2 million in the third quarter of 2022. The rolling chip win rate was 6.48% in the third quarter of 2023 versus 2.91% in the third quarter of 2022. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop increased to US$214.1 million in the third quarter of 2023, compared with US$153.3 million in the third quarter of 2022. The mass market table games hold percentage was 29.7% in the third quarter of 2023, compared with 33.1% in the third quarter of 2022.
Gaming machine handle for the third quarter of 2023 was US$1.03 billion, compared with US$930.8 million in the third quarter of 2022. The gaming machine win rate was 4.9% in the third quarter of 2023 versus 5.2% in the third quarter of 2022.
Total non-gaming revenue at City of Dreams Manila in the third quarter of 2023 was US$29.0 million, compared with US$28.5 million in the third quarter of 2022.
City of Dreams Mediterranean and Other Third Quarter Results
City of Dreams Mediterranean officially opened to the public on July 10, 2023, after a soft opening in June. The Company continues to operate three satellite casinos in Cyprus in conjunction with City of Dreams Mediterranean (collectively, the “Cyprus Casinos”).
Total operating revenues at the Cyprus Casinos for the quarter ended September 30, 2023 were US$53.4 million, compared with US$24.8 million in the third quarter of 2022. The Cyprus Casinos generated Adjusted EBITDA of US$7.2 million in the third quarter of 2023, compared with Adjusted EBITDA of US$6.7 million in the third quarter of 2022.
Rolling chip volume was US$3.9 million for the third quarter of 2023 versus US$1.7 million in the third quarter of 2022. The rolling chip win rate was negative 7.05% in the third quarter of 2023, compared with 14.19% in the third quarter of 2022. The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop was US$97.2 million in the third quarter of 2023, compared with US$39.0 million in the third quarter of 2022. The mass market table games hold percentage was 20.6% in the third quarter of 2023, compared with 19.8% in the third quarter of 2022.
Gaming machine handle for the third quarter of 2023 was US$466.5 million, compared with US$346.2 million in the third quarter of 2022. The gaming machine win rate was 5.2% in the third quarter of 2023 versus 5.1% in the third quarter of 2022.
Total non-gaming revenue at City of Dreams Mediterranean and Other in the third quarter of 2023 was US$16.8 million, compared with US$0.2 million in the third quarter of 2022.
Other Factors Affecting Earnings
Total net non-operating expenses for the third quarter of 2023 were US$129.5 million, which mainly included interest expenses of US$131.1 million, partially offset by interest income of US$6.1 million.
Depreciation and amortization costs of US$140.7 million were recorded in the third quarter of 2023, of which US$5.7 million related to the amortization expense for land use rights.
The Adjusted EBITDA for Studio City for the three months ended September 30, 2023 referred to above is US$11.5 million more than the Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated November 7, 2023 (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 gaming concession related costs and 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, 2023 aggregated to US$1.54 billion, including US$124.8 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$7.77 billion at the end of the third quarter of 2023, a reduction of US$100 million compared to the total debt balance as of June 30, 2023. Available liquidity, including cash and undrawn revolving credit facilities, as of September 30, 2023, was US$2.26 billion.
Capital expenditures for the third quarter of 2023 were US$61.1 million, which included costs related to the construction of the City of Dreams Mediterranean in Cyprus, Studio City Phase 2 and enhancement projects at City of Dreams in Macau.
Conference Call Information
Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2023 financial results on Tuesday, November 7, 2023 at 8:30 a.m. Eastern Time (or 9:30 p.m. Singapore Time).
To join the conference call, please register in advance using the below Online Registration Link. Upon registering, each participant will receive the dial-in numbers and a unique Personal PIN which can be used to join the conference.
Online Registration Link:
https://register.vevent.com/register/BI530c8e115be14d1789750179df1b8422
An audio webcast and replay of the conference call will also be available at http://www.melco-resorts.com.
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) COVID-19 outbreaks, and the impact of its consequences on our business, our industry and the global economy, (ii) risks associated with the newly adopted gaming law in Macau and its implementation by the Macau government, (iii) changes in the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iv) capital and credit market volatility, (v) local and global economic conditions, (vi) our anticipated growth strategies, (vii) gaming authority and other governmental approvals and regulations, and (viii) 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, 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, 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 recognizes these limitations and uses 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.
|
| (2) |
“Adjusted net income/loss” is net income/loss before pre-opening costs, property charges and other and gain on extinguishment of debt, 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 operates City of Dreams Mediterranean in Limassol in the Republic of Cyprus (www.cityofdreamsmed.com.cy).The Company also continues to operate three satellite casinos in other cities in Cyprus (the "Cyprus Casinos”). For more information about the Company, please visit www.melco-resorts.com.
The Company is majority owned by Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited, which is in turn majority 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:
Jeanny Kim
Senior Vice President, Group Treasurer
Tel: +852 2598 3698
Email: jeannykim@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, except share and per share data) |
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Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
| Casino |
$ |
812,086 |
|
|
$ |
181,962 |
|
|
$ |
2,179,536 |
|
|
$ |
808,930 |
|
| Rooms |
|
96,113 |
|
|
|
25,976 |
|
|
|
234,776 |
|
|
|
89,277 |
|
| Food and beverage |
|
60,370 |
|
|
|
17,973 |
|
|
|
143,668 |
|
|
|
62,238 |
|
| Entertainment, retail and other |
|
48,646 |
|
|
|
15,926 |
|
|
|
123,654 |
|
|
|
52,444 |
|
| Total operating revenues |
|
1,017,215 |
|
|
|
241,837 |
|
|
|
2,681,634 |
|
|
|
1,012,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Casino |
|
(533,311 |
) |
|
|
(173,805 |
) |
|
|
(1,437,761 |
) |
|
|
(685,591 |
) |
| Rooms |
|
(25,345 |
) |
|
|
(10,863 |
) |
|
|
(59,567 |
) |
|
|
(35,057 |
) |
| Food and beverage |
|
(48,251 |
) |
|
|
(17,279 |
) |
|
|
(111,669 |
) |
|
|
(61,091 |
) |
| Entertainment, retail and other |
|
(25,770 |
) |
|
|
(5,145 |
) |
|
|
(68,336 |
) |
|
|
(16,836 |
) |
| General and administrative |
|
(130,447 |
) |
|
|
(98,819 |
) |
|
|
(358,776 |
) |
|
|
(302,483 |
) |
| Payments to the Philippine Parties |
|
(9,979 |
) |
|
|
(8,417 |
) |
|
|
(32,638 |
) |
|
|
(26,878 |
) |
| Pre-opening costs |
|
(10,184 |
) |
|
|
(3,313 |
) |
|
|
(40,444 |
) |
|
|
(8,915 |
) |
| Amortization of gaming subconcession |
|
- |
|
|
|
(2,844 |
) |
|
|
- |
|
|
|
(29,932 |
) |
| Amortization of land use rights |
|
(5,672 |
) |
|
|
(5,653 |
) |
|
|
(16,990 |
) |
|
|
(16,990 |
) |
| Depreciation and amortization |
|
(134,996 |
) |
|
|
(113,549 |
) |
|
|
(381,666 |
) |
|
|
(353,142 |
) |
| Property charges and other |
|
1,442 |
|
|
|
(696 |
) |
|
|
(14,445 |
) |
|
|
(19,595 |
) |
| Total operating costs and expenses |
|
(922,513 |
) |
|
|
(440,383 |
) |
|
|
(2,522,292 |
) |
|
|
(1,556,510 |
) |
| Operating income (loss) |
|
94,702 |
|
|
|
(198,546 |
) |
|
|
159,342 |
|
|
|
(543,621 |
) |
| Non-operating income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
6,064 |
|
|
|
8,814 |
|
|
|
17,837 |
|
|
|
17,025 |
|
| Interest expenses, net of amounts capitalized |
|
(131,128 |
) |
|
|
(93,747 |
) |
|
|
(363,597 |
) |
|
|
(272,055 |
) |
| Other financing costs |
|
(1,097 |
) |
|
|
(1,755 |
) |
|
|
(3,021 |
) |
|
|
(5,439 |
) |
| Foreign exchange (losses) gains, net |
|
(3,833 |
) |
|
|
(505 |
) |
|
|
(2,292 |
) |
|
|
2,857 |
|
| Other income, net |
|
438 |
|
|
|
1,145 |
|
|
|
1,756 |
|
|
|
2,713 |
|
| Gain on extinguishment of debt |
|
80 |
|
|
|
- |
|
|
|
80 |
|
|
|
- |
|
| Total non-operating expenses, net |
|
(129,476 |
) |
|
|
(86,048 |
) |
|
|
(349,237 |
) |
|
|
(254,899 |
) |
| Loss before income tax |
|
(34,774 |
) |
|
|
(284,594 |
) |
|
|
(189,895 |
) |
|
|
(798,520 |
) |
| Income tax (expense) benefit |
|
(2,021 |
) |
|
|
(2,028 |
) |
|
|
1,295 |
|
|
|
(4,618 |
) |
| Net loss |
|
(36,795 |
) |
|
|
(286,622 |
) |
|
|
(188,600 |
) |
|
|
(803,138 |
) |
| Net loss attributable to noncontrolling interests |
|
20,492 |
|
|
|
42,780 |
|
|
|
67,568 |
|
|
|
124,553 |
|
| Net loss attributable to Melco Resorts & Entertainment Limited |
$ |
(16,303 |
) |
|
$ |
(243,842 |
) |
|
$ |
(121,032 |
) |
|
$ |
(678,585 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to Melco Resorts & Entertainment Limited per share: |
|
|
|
|
|
|
|
|
|
|
| Basic |
$ |
(0.012 |
) |
|
$ |
(0.176 |
) |
|
$ |
(0.092 |
) |
|
$ |
(0.481 |
) |
| Diluted |
$ |
(0.012 |
) |
|
$ |
(0.176 |
) |
|
$ |
(0.092 |
) |
|
$ |
(0.482 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to Melco Resorts & Entertainment Limited per ADS: |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
$ |
(0.037 |
) |
|
$ |
(0.528 |
) |
|
$ |
(0.276 |
) |
|
$ |
(1.444 |
) |
| Diluted |
$ |
(0.037 |
) |
|
$ |
(0.528 |
) |
|
$ |
(0.276 |
) |
|
$ |
(1.446 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding used in net loss attributable to Melco Resorts & Entertainment Limited per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
1,311,270,775 |
|
|
|
1,386,720,527 |
|
|
|
1,315,728,852 |
|
|
|
1,409,983,323 |
|
| Diluted |
|
1,311,270,775 |
|
|
|
1,386,720,527 |
|
|
|
1,315,728,852 |
|
|
|
1,409,983,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Melco Resorts & Entertainment Limited and Subsidiaries
|
Condensed Consolidated Balance Sheets
|
(In thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2023
|
|
2022
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
| Cash and cash equivalents |
$ |
1,417,998 |
|
|
$ |
1,812,729 |
|
| Restricted cash |
|
26 |
|
|
|
50,992 |
|
| Accounts receivable, net |
|
95,716 |
|
|
|
55,992 |
|
| Receivables from affiliated companies |
|
1,001 |
|
|
|
630 |
|
| Inventories |
|
28,106 |
|
|
|
26,416 |
|
| Prepaid expenses and other current assets |
|
130,977 |
|
|
|
119,410 |
|
| Assets held for sale |
|
- |
|
|
|
8,503 |
|
| Total current assets |
|
1,673,824 |
|
|
|
2,074,672 |
|
|
|
|
|
|
|
|
| Property and equipment, net(3) |
|
5,690,991 |
|
|
|
5,870,905 |
|
| Intangible assets, net(3) (4) |
|
339,493 |
|
|
|
43,610 |
|
| Goodwill |
|
81,385 |
|
|
|
81,606 |
|
| Long-term prepayments, deposits and other assets |
|
84,042 |
|
|
|
159,697 |
|
| Receivables from an affiliated company |
|
- |
|
|
|
216,333 |
|
| Restricted cash |
|
124,773 |
|
|
|
124,736 |
|
| Deferred tax assets, net |
|
- |
|
|
|
638 |
|
| Operating lease right-of-use assets |
|
67,290 |
|
|
|
58,715 |
|
| Land use rights, net |
|
652,052 |
|
|
|
670,872 |
|
| Total assets |
$ |
8,713,850 |
|
|
$ |
9,301,784 |
|
|
|
|
|
|
|
|
| LIABILITIES AND DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
| Accounts payable |
$ |
12,458 |
|
|
$ |
6,730 |
|
| Accrued expenses and other current liabilities(3)(4) |
|
933,688 |
|
|
|
809,305 |
|
| Income tax payable |
|
11,345 |
|
|
|
11,610 |
|
| Operating lease liabilities, current |
|
19,431 |
|
|
|
12,761 |
|
| Finance lease liabilities, current |
|
34,442 |
|
|
|
34,959 |
|
| Current portion of long-term debt, net |
|
- |
|
|
|
322,500 |
|
| Payables to affiliated companies |
|
253 |
|
|
|
761 |
|
| Total current liabilities |
|
1,011,617 |
|
|
|
1,198,626 |
|
|
|
|
|
|
|
|
| Long-term debt, net |
|
7,768,815 |
|
|
|
8,090,008 |
|
| Other long-term liabilities(3) (4) |
|
312,622 |
|
|
|
33,712 |
|
| Deferred tax liabilities, net |
|
36,980 |
|
|
|
39,677 |
|
| Operating lease liabilities, non-current |
|
56,225 |
|
|
|
55,832 |
|
| Finance lease liabilities, non-current |
|
186,131 |
|
|
|
198,291 |
|
| Total liabilities |
|
9,372,390 |
|
|
|
9,616,146 |
|
|
|
|
|
|
|
|
| Deficit: |
|
|
|
|
|
| Ordinary shares, par value $0.01; 7,300,000,000 shares authorized; |
|
|
|
|
|
| 1,404,679,067 and 1,445,052,143 shares issued; |
|
|
|
|
|
| 1,311,270,775 and 1,335,307,327 shares outstanding, respectively |
|
14,047 |
|
|
|
14,451 |
|
| Treasury shares, at cost; 93,408,292 and 109,744,816 shares, respectively |
(255,068 |
) |
|
|
(241,750 |
) |
| Additional paid-in capital |
|
3,100,820 |
|
|
|
3,218,895 |
|
| Accumulated other comprehensive losses |
|
(130,469 |
) |
|
|
(111,969 |
) |
| Accumulated losses |
|
(3,850,984 |
) |
|
|
(3,729,952 |
) |
| Total Melco Resorts & Entertainment Limited shareholders’ deficit |
|
(1,121,654 |
) |
|
|
(850,325 |
) |
| Noncontrolling interests |
|
463,114 |
|
|
|
535,963 |
|
| Total deficit |
|
(658,540 |
) |
|
|
(314,362 |
) |
| Total liabilities and deficit |
$ |
8,713,850 |
|
|
$ |
9,301,784 |
|
|
|
|
|
|
|
|
| (3) |
On December 16, 2022, the Macau government awarded a ten-year concession to operate games of fortune and chance in casinos in Macau (the “Concession”) to Melco Resorts (Macau) Limited (“Melco Resorts Macau”), a subsidiary of Melco. The term of the Concession commenced on January 1, 2023 and ends on December 31, 2032 and Melco Resorts Macau is authorized to operate the Altira Casino, the City of Dreams Casino and the Studio City Casino as well as the Grand Dragon Casino and the Mocha Clubs. Under the Concession, Melco Resorts Macau is obligated to pay the Macau government a fixed annual premium of Macau Patacas (“MOP”) 30,000 (equivalent to $3,719) plus a variable annual premium calculated in accordance with the number and type of gaming tables (subject to a minimum of 500 tables) and electronic gaming machines (subject to a minimum of 1,000 machines) operated by Melco Resorts Macau. The variable annual premium is MOP300 (equivalent to $37) for each gaming table reserved exclusively to certain kinds of games or players, MOP150 (equivalent to $19) for each gaming table not so exclusively reserved and MOP1 (equivalent to $0.1) for each electronic gaming machine.
On December 30, 2022, in accordance with the obligations under the letters of undertakings dated June 23, 2022, Melco Resorts Macau and certain subsidiaries of Melco, which hold the land lease rights for the properties on which the Altira Casino, City of Dreams Casino and Studio City Casino are located, executed a public deed pursuant to which the gaming and gaming support areas comprising the Altira Casino, City of Dreams Casino and Studio City Casino with an area of 17,128.8 square meters, 31,227.3 square meters and 28,784.3 square meters, respectively, and related gaming equipment and utensils (collectively as referred to the “Reversion Assets”), reverted to the Macau government, without compensation and free and clear from any charges or encumbrances, at the expiration of the previous subconcession in accordance with the Macau gaming law. The Reversion Assets that reverted to the Macau government at the expiration of the previous subconcession are owned by the Macau government. Under the terms of the Macau gaming law and the Concession, effective as of January 1, 2023, the Reversion Assets have been transferred by the Macau government to Melco Resorts Macau for use in its operations during the Concession for a fee of MOP0.75 (equivalent to $0.09) per square meter of the casino for years 1 to 3 of the Concession, subject to a consumer price index increase in years 2 and 3 of the Concession and such fee will increase to MOP2.5 (equivalent to $0.3) per square meter of the casino for years 4 to 10 of the Concession, subject to a consumer price index increase in years 5 to 10 of the Concession (the “Fee”). As Melco Resorts Macau continues to operate the Reversion Assets in the same manner as under the previous subconcession, obtains substantially all of the economic benefits and bears all of the risks arising from the use of these assets, as well as assuming it will be successful in the awarding of a new concession upon expiry of the Concession, the Company continues to recognize these Reversion Assets as property and equipment over their remaining estimated useful lives.
|
|
On January 1, 2023, the Company recognized an intangible asset and financial liability of $239,588, representing the right to operate the Reversion Assets, the right to conduct games of fortunes and chance in Macau and the unconditional obligation to make payments under the Concession. This intangible asset comprises the contractually obligated annual payments of fixed premium and variable premiums, as well as the Fee without considering the consumer price index under the Concession. The contractually obligated annual variable premium payments associated with the intangible asset were determined using the total number of gaming tables and the total number of electronic gaming machines that Melco Resorts Macau is currently approved to operate by the Macau government. In the accompanying condensed consolidated balance sheet, the noncurrent portion of the financial liability is included in “Other long-term liabilities” and the current portion is included in “Accrued expenses and other current liabilities”. The intangible asset is being amortized on a straight-line basis over the period of the Concession, being 10 years.
|
| (4) |
On June 26, 2017, the Cyprus government granted a gaming license (the “Cyprus License”) to an affiliate of Melco in Cyprus (the “Cyprus Subsidiary”) to develop, operate and maintain an integrated casino resort in Limassol, Cyprus (and, up until completion and opening of the integrated casino resort, a temporary casino facility) and up to four satellite casino premises in Cyprus for a term of 30 years, the first 15 years of which are exclusive. Pursuant to the Cyprus License agreement, the Cyprus Subsidiary is obligated to pay the Cyprus government an annual license fee for the integrated casino resort (and prior to opening of the integrated casino resort, the temporary casino) and any operating satellite casinos. The Cyprus License required the integrated casino resort to open by the extended deadline of June 30, 2023 as approved by the Cyprus government (the “Cyprus License Requirement”), failing which the Cyprus government would have been entitled to terminate the Cyprus License.
On June 28, 2023, upon fulfillment of the Cyprus License Requirement, the Company recognized an intangible asset of $73,928 and financial liability of $73,059, representing the right under the Cyprus License and the unconditional obligation to pay i) a minimum annual license fee for City of Dreams Mediterranean of Euros (“EUR”) 5,000 (equivalent to $5,281) per year; and ii) an aggregate annual license fee for three operating satellite casinos of EUR2,000 (equivalent to $2,112), during the term of the Cyprus License from June 28, 2023. In the accompanying condensed consolidated balance sheet, the noncurrent portion of the financial liability of the Cyprus License is included in “Other long-term liabilities” and the current portion is included in “Accrued expenses and other current liabilities”. The intangible asset is being amortized on a straight-line basis over the remaining period of the Cyprus License until June 2047. |
| 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, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
| Net loss attributable to Melco Resorts & Entertainment Limited |
$ |
(16,303 |
) |
|
$ |
(243,842 |
) |
|
$ |
(121,032 |
) |
|
$ |
(678,585 |
) |
| Pre-opening costs |
|
10,184 |
|
|
|
3,313 |
|
|
|
40,444 |
|
|
|
8,915 |
|
| Property charges and other |
|
(1,442 |
) |
|
|
696 |
|
|
|
14,445 |
|
|
|
19,595 |
|
| Gain on extinguishment of debt |
|
(80 |
) |
|
|
- |
|
|
|
(80 |
) |
|
|
- |
|
| Income tax impact on adjustments |
|
584 |
|
|
|
(210 |
) |
|
|
- |
|
|
|
(598 |
) |
| Noncontrolling interests impact on adjustments |
|
(4,028 |
) |
|
|
(1,275 |
) |
|
|
(14,136 |
) |
|
|
(4,781 |
) |
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited |
$ |
(11,085 |
) |
|
$ |
(241,318 |
) |
|
$ |
(80,359 |
) |
|
$ |
(655,454 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited per share: |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
$ |
(0.008 |
) |
|
$ |
(0.174 |
) |
|
$ |
(0.061 |
) |
|
$ |
(0.465 |
) |
| Diluted |
$ |
(0.008 |
) |
|
$ |
(0.174 |
) |
|
$ |
(0.061 |
) |
|
$ |
(0.465 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited per ADS: |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
$ |
(0.025 |
) |
|
$ |
(0.522 |
) |
|
$ |
(0.183 |
) |
|
$ |
(1.395 |
) |
| Diluted |
$ |
(0.025 |
) |
|
$ |
(0.522 |
) |
|
$ |
(0.183 |
) |
|
$ |
(1.396 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding used in adjusted net loss attributable to Melco Resorts & Entertainment Limited per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
1,311,270,775 |
|
|
|
1,386,720,527 |
|
|
|
1,315,728,852 |
|
|
|
1,409,983,323 |
|
| Diluted |
|
1,311,270,775 |
|
|
|
1,386,720,527 |
|
|
|
1,315,728,852 |
|
|
|
1,409,983,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Melco Resorts & Entertainment Limited and Subsidiaries |
| Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited) |
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 |
|
Altira
Macau |
|
Mocha
and Other |
|
City of
Dreams |
|
Studio
City |
|
City of Dreams
Manila |
|
City of Dreams
Mediterranean
and Other(5) |
|
Corporate
and Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
$ |
(9,784 |
) |
|
$ |
5,981 |
|
|
$ |
95,238 |
|
|
$ |
10,074 |
|
|
$ |
25,681 |
|
|
$ |
(7,794 |
) |
|
$ |
(24,694 |
) |
|
$ |
94,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payments to the Philippine Parties |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,979 |
|
|
|
- |
|
|
|
- |
|
|
|
9,979 |
|
| Land rent to Belle Corporation |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
474 |
|
|
|
- |
|
|
|
- |
|
|
|
474 |
|
| Pre-opening costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,564 |
|
|
|
- |
|
|
|
2,620 |
|
|
|
- |
|
|
|
10,184 |
|
| Depreciation and amortization |
|
5,838 |
|
|
|
884 |
|
|
|
54,865 |
|
|
|
49,647 |
|
|
|
12,297 |
|
|
|
12,249 |
|
|
|
4,888 |
|
|
|
140,668 |
|
| Share-based compensation |
|
119 |
|
|
|
(33 |
) |
|
|
1,091 |
|
|
|
390 |
|
|
|
303 |
|
|
|
125 |
|
|
|
5,560 |
|
|
|
7,555 |
|
| Property charges and other |
|
- |
|
|
|
46 |
|
|
|
2,752 |
|
|
|
57 |
|
|
|
3 |
|
|
|
(28 |
) |
|
|
(4,272 |
) |
|
|
(1,442 |
) |
| Adjusted EBITDA |
|
(3,827 |
) |
|
|
6,878 |
|
|
|
153,946 |
|
|
|
67,732 |
|
|
|
48,737 |
|
|
|
7,172 |
|
|
|
(18,518 |
) |
|
|
262,120 |
|
| Corporate and Other expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
18,518 |
|
|
|
18,518 |
|
| Adjusted Property EBITDA |
$ |
(3,827 |
) |
|
$ |
6,878 |
|
|
$ |
153,946 |
|
|
$ |
67,732 |
|
|
$ |
48,737 |
|
|
$ |
7,172 |
|
|
$ |
- |
|
|
$ |
280,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022 |
|
Altira
Macau |
|
Mocha
and Other |
|
City of
Dreams |
|
Studio
City |
|
City of Dreams
Manila |
|
Cyprus Operations |
|
Corporate
and Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
$ |
(18,401 |
) |
|
$ |
359 |
|
|
$ |
(105,943 |
) |
|
$ |
(66,752 |
) |
|
$ |
18,649 |
|
|
$ |
2,715 |
|
|
$ |
(29,173 |
) |
|
$ |
(198,546 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payments to the Philippine Parties |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,417 |
|
|
|
- |
|
|
|
- |
|
|
|
8,417 |
|
| Land rent to Belle Corporation |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
555 |
|
|
|
- |
|
|
|
- |
|
|
|
555 |
|
| Pre-opening costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
699 |
|
|
|
- |
|
|
|
2,614 |
|
|
|
- |
|
|
|
3,313 |
|
| Depreciation and amortization |
|
5,202 |
|
|
|
1,305 |
|
|
|
59,362 |
|
|
|
33,800 |
|
|
|
13,417 |
|
|
|
1,379 |
|
|
|
7,581 |
|
|
|
122,046 |
|
| Share-based compensation |
|
136 |
|
|
|
(90 |
) |
|
|
3,787 |
|
|
|
425 |
|
|
|
288 |
|
|
|
16 |
|
|
|
5,419 |
|
|
|
9,981 |
|
| Property charges and other |
|
145 |
|
|
|
85 |
|
|
|
2,558 |
|
|
|
370 |
|
|
|
43 |
|
|
|
(1 |
) |
|
|
(2,504 |
) |
|
|
696 |
|
| Adjusted EBITDA |
|
(12,918 |
) |
|
|
1,659 |
|
|
|
(40,236 |
) |
|
|
(31,458 |
) |
|
|
41,369 |
|
|
|
6,723 |
|
|
|
(18,677 |
) |
|
- |
(53,538 |
) |
| Corporate and Other expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
18,677 |
|
|
|
18,677 |
|
| Adjusted Property EBITDA |
$ |
(12,918 |
) |
|
$ |
1,659 |
|
|
$ |
(40,236 |
) |
|
$ |
(31,458 |
) |
|
$ |
41,369 |
|
|
$ |
6,723 |
|
|
$ |
- |
|
|
$ |
(34,861 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (5) |
Effective from June 12, 2023, with the soft opening of City of Dreams Mediterranean, the Cyprus Operations segment which previously included the operation of the temporary casino before its closure on June 9, 2023 and the licensed satellite casinos in Cyprus, has been renamed to City of Dreams Mediterranean and Other segment which included the operation of City of Dreams Mediterranean and the licensed satellite casinos in Cyprus. |
| Melco Resorts & Entertainment Limited and Subsidiaries |
| Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited) |
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
Altira
Macau |
|
Mocha
and Other (6) |
|
City of
Dreams |
|
Studio
City |
|
City of Dreams
Manila |
|
City of Dreams
Mediterranean
and Other(5) |
|
Corporate
and Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
$ |
(20,014 |
) |
|
$ |
18,097 |
|
|
$ |
210,446 |
|
|
$ |
(20,286 |
) |
|
$ |
84,131 |
|
|
$ |
(17,222 |
) |
|
$ |
(95,810 |
) |
|
$ |
159,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payments to the Philippine Parties |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
32,638 |
|
|
|
- |
|
|
|
- |
|
|
|
32,638 |
|
| Land rent to Belle Corporation |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,436 |
|
|
|
- |
|
|
|
- |
|
|
|
1,436 |
|
| Pre-opening costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
17,348 |
|
|
|
- |
|
|
|
23,096 |
|
|
|
- |
|
|
|
40,444 |
|
| Depreciation and amortization |
|
17,755 |
|
|
|
3,044 |
|
|
|
176,751 |
|
|
|
130,768 |
|
|
|
37,922 |
|
|
|
16,545 |
|
|
|
15,871 |
|
|
|
398,656 |
|
| Share-based compensation |
|
180 |
|
|
|
50 |
|
|
|
5,248 |
|
|
|
1,081 |
|
|
|
881 |
|
|
|
356 |
|
|
|
19,432 |
|
|
|
27,228 |
|
| Property charges and other |
|
511 |
|
|
|
76 |
|
|
|
17,670 |
|
|
|
544 |
|
|
|
(397 |
) |
|
|
(11 |
) |
|
|
(3,948 |
) |
|
|
14,445 |
|
| Adjusted EBITDA |
|
(1,568 |
) |
|
|
21,267 |
|
|
|
410,115 |
|
|
|
129,455 |
|
|
|
156,611 |
|
|
|
22,764 |
|
|
|
(64,455 |
) |
|
|
674,189 |
|
| Corporate and Other expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
64,455 |
|
|
|
64,455 |
|
| Adjusted Property EBITDA |
$ |
(1,568 |
) |
|
$ |
21,267 |
|
|
$ |
410,115 |
|
|
$ |
129,455 |
|
|
$ |
156,611 |
|
|
$ |
22,764 |
|
|
$ |
- |
|
|
$ |
738,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2022 |
|
Altira
Macau |
|
Mocha
and Other (6) |
|
City of
Dreams |
|
Studio
City |
|
City of Dreams
Manila |
|
Cyprus Operations |
|
Corporate
and Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
$ |
(51,146 |
) |
|
$ |
4,476 |
|
|
$ |
(221,971 |
) |
|
$ |
(188,603 |
) |
|
$ |
47,745 |
|
|
$ |
402 |
|
|
$ |
(134,524 |
) |
|
$ |
(543,621 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payments to the Philippine Parties |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26,878 |
|
|
|
- |
|
|
|
- |
|
|
|
26,878 |
|
| Land rent to Belle Corporation |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,851 |
|
|
|
- |
|
|
|
- |
|
|
|
1,851 |
|
| Pre-opening costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,512 |
|
|
|
- |
|
|
|
7,403 |
|
|
|
- |
|
|
|
8,915 |
|
| Depreciation and amortization |
|
16,037 |
|
|
|
3,813 |
|
|
|
179,486 |
|
|
|
101,228 |
|
|
|
45,387 |
|
|
|
4,865 |
|
|
|
49,248 |
|
|
|
400,064 |
|
| Share-based compensation |
|
845 |
|
|
|
153 |
|
|
|
12,075 |
|
|
|
2,229 |
|
|
|
1,256 |
|
|
|
527 |
|
|
|
26,775 |
|
|
|
43,860 |
|
| Property charges and other |
|
744 |
|
|
|
40 |
|
|
|
6,060 |
|
|
|
3,794 |
|
|
|
257 |
|
|
|
3 |
|
|
|
8,697 |
|
|
|
19,595 |
|
| Adjusted EBITDA |
|
(33,520 |
) |
|
|
8,482 |
|
|
|
(24,350 |
) |
|
|
(79,840 |
) |
|
|
123,374 |
|
|
|
13,200 |
|
|
|
(49,804 |
) |
|
|
(42,458 |
) |
| Corporate and Other expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
49,804 |
|
|
|
49,804 |
|
| Adjusted Property EBITDA |
$ |
(33,520 |
) |
|
$ |
8,482 |
|
|
$ |
(24,350 |
) |
|
$ |
(79,840 |
) |
|
$ |
123,374 |
|
|
$ |
13,200 |
|
|
$ |
- |
|
|
$ |
7,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (6) |
Effective from June 27, 2022, the Grand Dragon Casino, which focuses on mass market table games and was previously reported under the Corporate and Other segment, has been included in the Mocha and Other segment. |
| 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to Melco Resorts & Entertainment Limited |
$ |
(16,303 |
) |
|
$ |
(243,842 |
) |
|
$ |
(121,032 |
) |
|
$ |
(678,585 |
) |
| Net loss attributable to noncontrolling interests |
|
(20,492 |
) |
|
|
(42,780 |
) |
|
|
(67,568 |
) |
|
|
(124,553 |
) |
| Net loss |
|
(36,795 |
) |
|
|
(286,622 |
) |
|
|
(188,600 |
) |
|
|
(803,138 |
) |
| Income tax expense (benefit) |
|
2,021 |
|
|
|
2,028 |
|
|
|
(1,295 |
) |
|
|
4,618 |
|
| Interest and other non-operating expenses, net |
|
129,476 |
|
|
|
86,048 |
|
|
|
349,237 |
|
|
|
254,899 |
|
| Depreciation and amortization |
|
140,668 |
|
|
|
122,046 |
|
|
|
398,656 |
|
|
|
400,064 |
|
| Property charges and other |
|
(1,442 |
) |
|
|
696 |
|
|
|
14,445 |
|
|
|
19,595 |
|
| Share-based compensation |
|
7,555 |
|
|
|
9,981 |
|
|
|
27,228 |
|
|
|
43,860 |
|
| Pre-opening costs |
|
10,184 |
|
|
|
3,313 |
|
|
|
40,444 |
|
|
|
8,915 |
|
| Land rent to Belle Corporation |
|
474 |
|
|
|
555 |
|
|
|
1,436 |
|
|
|
1,851 |
|
| Payments to the Philippine Parties |
|
9,979 |
|
|
|
8,417 |
|
|
|
32,638 |
|
|
|
26,878 |
|
| Adjusted EBITDA |
|
262,120 |
|
|
|
(53,538 |
) |
|
|
674,189 |
|
|
|
(42,458 |
) |
| Corporate and Other expenses |
|
18,518 |
|
|
|
18,677 |
|
|
|
64,455 |
|
|
|
49,804 |
|
| Adjusted Property EBITDA |
$ |
280,638 |
|
|
$ |
(34,861 |
) |
|
$ |
738,644 |
|
|
$ |
7,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Melco Resorts & Entertainment Limited and Subsidiaries |
| Supplemental Data Schedule |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| Room Statistics(7): |
|
|
|
|
|
|
|
|
Altira Macau |
|
|
|
|
|
|
|
|
|
Average daily rate (8) |
$ |
138 |
|
|
$ |
91 |
|
|
$ |
136 |
|
|
$ |
97 |
|
|
|
Occupancy per available room |
|
95 |
% |
|
|
37 |
% |
|
|
85 |
% |
|
|
40 |
% |
|
|
Revenue per available room (9) |
$ |
131 |
|
|
$ |
34 |
|
|
$ |
116 |
|
|
$ |
39 |
|
|
|
|
|
|
|
|
|
|
|
|
City of Dreams |
|
|
|
|
|
|
|
|
|
Average daily rate (8) |
$ |
193 |
|
|
$ |
192 |
|
|
$ |
202 |
|
|
$ |
203 |
|
|
|
Occupancy per available room |
|
91 |
% |
|
|
20 |
% |
|
|
83 |
% |
|
|
27 |
% |
|
|
Revenue per available room (9) |
$ |
176 |
|
|
$ |
38 |
|
|
$ |
168 |
|
|
$ |
55 |
|
|
|
|
|
|
|
|
|
|
|
|
Studio City |
|
|
|
|
|
|
|
|
|
Average daily rate (8) |
$ |
167 |
|
|
$ |
107 |
|
|
$ |
148 |
|
|
$ |
114 |
|
|
|
Occupancy per available room |
|
92 |
% |
|
|
25 |
% |
|
|
88 |
% |
|
|
27 |
% |
|
|
Revenue per available room (9) |
$ |
155 |
|
|
$ |
27 |
|
|
$ |
129 |
|
|
$ |
31 |
|
|
|
|
|
|
|
|
|
|
|
|
City of Dreams Manila |
|
|
|
|
|
|
|
|
|
Average daily rate (8) |
$ |
173 |
|
|
$ |
195 |
|
|
$ |
180 |
|
|
$ |
190 |
|
|
|
Occupancy per available room |
|
97 |
% |
|
|
95 |
% |
|
|
96 |
% |
|
|
94 |
% |
|
|
Revenue per available room (9) |
$ |
168 |
|
|
$ |
186 |
|
|
$ |
173 |
|
|
$ |
179 |
|
|
|
|
|
|
|
|
|
|
|
|
City of Dreams Mediterranean and Other(5) |
|
|
|
|
|
|
|
|
|
Average daily rate (8) |
$ |
375 |
|
|
N/A |
|
$ |
371 |
|
|
N/A |
|
|
Occupancy per available room |
|
63 |
% |
|
N/A |
|
|
62 |
% |
|
N/A |
|
|
Revenue per available room (9) |
$ |
236 |
|
|
N/A |
|
$ |
231 |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
| Other Information(10): |
|
|
|
|
|
|
|
|
Altira Macau |
|
|
|
|
|
|
|
|
|
Average number of table games |
|
43 |
|
|
|
92 |
|
|
|
44 |
|
|
|
94 |
|
|
|
Average number of gaming machines |
|
125 |
|
|
|
144 |
|
|
|
143 |
|
|
|
139 |
|
|
|
Table games win per unit per day (11) |
$ |
6,686 |
|
|
$ |
121 |
|
|
$ |
6,218 |
|
|
$ |
722 |
|
|
|
Gaming machines win per unit per day (12) |
$ |
291 |
|
|
$ |
85 |
|
|
$ |
223 |
|
|
$ |
131 |
|
|
|
|
|
|
|
|
|
|
|
|
Mocha and Other(6) |
|
|
|
|
|
|
|
|
|
Average number of table games |
|
18 |
|
|
|
25 |
|
|
|
17 |
|
|
|
25 |
|
|
|
Average number of gaming machines |
|
892 |
|
|
|
952 |
|
|
|
880 |
|
|
|
949 |
|
|
|
Table games win per unit per day (11) |
$ |
5,306 |
|
|
$ |
1,806 |
|
|
$ |
5,000 |
|
|
$ |
1,776 |
|
|
|
Gaming machines win per unit per day (12) |
$ |
282 |
|
|
$ |
203 |
|
|
$ |
292 |
|
|
$ |
216 |
|
|
|
|
|
|
|
|
|
|
|
|
City of Dreams |
|
|
|
|
|
|
|
|
|
Average number of table games |
|
430 |
|
|
|
443 |
|
|
|
430 |
|
|
|
449 |
|
|
|
Average number of gaming machines |
|
629 |
|
|
|
649 |
|
|
|
635 |
|
|
|
678 |
|
|
|
Table games win per unit per day (11) |
$ |
13,437 |
|
|
$ |
1,503 |
|
|
$ |
12,496 |
|
|
$ |
3,474 |
|
|
|
Gaming machines win per unit per day (12) |
$ |
505 |
|
|
$ |
113 |
|
|
$ |
441 |
|
|
$ |
139 |
|
|
|
|
|
|
|
|
|
|
|
|
Studio City |
|
|
|
|
|
|
|
|
|
Average number of table games |
|
246 |
|
|
|
277 |
|
|
|
246 |
|
|
|
277 |
|
|
|
Average number of gaming machines |
|
661 |
|
|
|
702 |
|
|
|
667 |
|
|
|
711 |
|
|
|
Table games win per unit per day (11) |
$ |
10,380 |
|
|
$ |
794 |
|
|
$ |
8,331 |
|
|
$ |
1,592 |
|
|
|
Gaming machines win per unit per day (12) |
$ |
352 |
|
|
$ |
54 |
|
|
$ |
319 |
|
|
$ |
82 |
|
|
|
|
|
|
|
|
|
|
|
|
City of Dreams Manila |
|
|
|
|
|
|
|
|
|
Average number of table games |
|
266 |
|
|
|
260 |
|
|
|
267 |
|
|
|
278 |
|
|
|
Average number of gaming machines |
|
2,295 |
|
|
|
2,317 |
|
|
|
2,297 |
|
|
|
2,283 |
|
|
|
Table games win per unit per day (11) |
$ |
3,585 |
|
|
$ |
2,750 |
|
|
$ |
3,513 |
|
|
$ |
2,436 |
|
|
|
Gaming machines win per unit per day (12) |
$ |
238 |
|
|
$ |
228 |
|
|
$ |
241 |
|
|
$ |
231 |
|
|
|
|
|
|
|
|
|
|
|
|
City of Dreams Mediterranean and Other(5) |
|
|
|
|
|
|
|
|
|
Average number of table games |
|
103 |
|
|
|
35 |
|
|
|
60 |
|
|
|
35 |
|
|
|
Average number of gaming machines |
|
896 |
|
|
|
451 |
|
|
|
616 |
|
|
|
455 |
|
|
|
Table games win per unit per day (11) |
$ |
2,080 |
|
|
$ |
2,465 |
|
|
$ |
2,409 |
|
|
$ |
1,925 |
|
|
|
Gaming machines win per unit per day (12) |
$ |
294 |
|
|
$ |
427 |
|
|
$ |
376 |
|
|
$ |
368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (7) |
Room statistics exclude rooms that were temporarily closed or provided to staff members due to the COVID-19 outbreak |
| (8) |
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 |
| (9) |
Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available |
| (10) |
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 |
| (11) |
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 |
| (12) |
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 |
|
|
|
|
|
|
|
|
|
|
