Table of Contents

 

 

FORM 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a–16 OR 15d–16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2016

Commission File Number: 001-33178

 

 

MELCO CROWN ENTERTAINMENT LIMITED

 

 

36th Floor, The Centrium

60 Wyndham Street

Central

Hong Kong

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20–F or Form 40–F.    Form 20-F  x    Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3–2(b) under the Securities Exchange Act of 1934.    Yes  ¨    No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3–2(b): 82– N/A

 

 

 


Table of Contents

MELCO CROWN ENTERTAINMENT LIMITED

Form 6–K

TABLE OF CONTENTS

Signature

 

Exhibit 99.1

   


Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

MELCO CROWN ENTERTAINMENT LIMITED
By:  

/s/ Geoffrey Davis

Name:   Geoffrey Davis, CFA
Title:   Chief Financial Officer

Date: February 18, 2016

 

3


Table of Contents

EXHIBIT INDEX

 

Exhibit No.

      

Description

Exhibit 99.1

   

Unaudited Results for Fourth Quarter of 2015 and Special Dividend Declaration



Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Melco Crown Entertainment Declares Special Dividend and Announces Unaudited Results for the Fourth Quarter and Full Year Ended December 31, 2015

Macau, Thursday, February 18, 2016 – Melco Crown Entertainment Limited (Nasdaq: MPEL) (“Melco Crown Entertainment” or the “Company” or “we”), a developer, owner and operator of casino gaming and entertainment resort facilities in Asia, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2015.

Net revenue for the fourth quarter of 2015 was US$1,058.0 million, representing a decrease of approximately 6% from US$1,121.4 million for the comparable period in 2014. The decline in net revenue was primarily attributable to lower rolling chip revenues and mass market table games revenues in City of Dreams and Altira Macau, partially offset by the net revenue generated by Studio City and City of Dreams Manila, which started operations in October 2015 and December 2014, respectively.

Adjusted property EBITDA(1) was US$236.4 million for the fourth quarter of 2015, as compared to Adjusted property EBITDA of US$278.6 million in the fourth quarter of 2014. The 15% year-over-year decline in Adjusted property EBITDA was attributable to lower contribution from the group-wide rolling chip segment.

On a U.S. GAAP basis, net loss attributable to Melco Crown Entertainment for the fourth quarter of 2015 was US$12.3 million, or US$0.02 per ADS, compared with net income attributable to Melco Crown Entertainment of US$92.9 million, or US$0.17 per ADS, in the fourth quarter of 2014. The net loss attributable to noncontrolling interests during the fourth quarter of 2015 of US$65.6 million was related to Studio City and City of Dreams Manila.

Adjusted net income(2) attributable to Melco Crown Entertainment for the fourth quarter of 2015 was US$46.7 million, or US$0.09 per ADS, compared with adjusted net income attributable to Melco Crown Entertainment of US$123.3 million, or US$0.23 per ADS, in the fourth quarter of 2014.

Melco Crown Entertainment Limited LOGO

Incorporated in the Cayman Islands with limited liability

LOGO

 

1


Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “We delivered a strong set of operating and financial metrics in what is a still challenging environment in Macau, with our Macau-wide mass market table games revenues increasing on both a sequential and year-over-year basis in the fourth quarter of 2015.

“With the successful opening of our latest integrated resort, Studio City, we have further expanded our market share in Macau and increased our exposure to the more resilient and profitable mass market segments, a forward thinking strategy which we embarked on several years ago with the design and development of our flagship integrated resort, City of Dreams in Macau.

“Studio City’s unique Hollywood-theme and entertainment centric offering provides an ideal complement to our current portfolio of assets in Macau, particularly the premium-focused integrated resort, City of Dreams, enabling us to cater to a greater breadth of customers seeking a multi-dimensional leisure and tourism experience.

“Our position of leadership in developing Macau’s mass market and non-gaming amenities highlights our commitment to the ongoing evolution of Macau into the region’s leading destination for leisure and entertainment seekers, ensuring economic and employment diversification for Macau.

“In the Philippines, City of Dreams Manila continues to grow a more diversified revenue stream, with the continuing ramp of the rolling chip business complementing its mass market gaming and non-gaming segments. We remain confident in the long term success of the Philippines’ gaming market given the country’s anticipated economic growth and supportive demographics, together with an expanding and Government-supported inbound tourism market.

“Although we have not declared a quarterly dividend for the fourth quarter of 2015, on behalf of the Board, I am delighted to announce a special dividend of US$350 million, demonstrating the impressive cash flow generation from our high quality properties and our strong balance sheet, which has enabled us to return surplus capital to shareholders while continuing to invest in value accretive opportunities. Furthermore, as visibility regarding our operating and regulatory environment continues to improve, we remain committed to maximizing cash distributions to shareholders, which includes a review of our current dividend payout ratio of 30% of net income attributable to Melco Crown Entertainment.”

 

2


City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2015, net revenue at City of Dreams was US$669.0 million compared to US$895.5 million in the fourth quarter of 2014. City of Dreams generated Adjusted EBITDA of US$192.2 million in the fourth quarter of 2015, representing a decrease of 25% compared to US$258.0 million in the comparable period of 2014. The decline in Adjusted EBITDA was primarily a result of lower rolling chip revenues and mass market table games revenues.

Rolling chip volume totaled US$10.2 billion for the fourth quarter of 2015 versus US$18.0 billion in the fourth quarter of 2014. The rolling chip win rate was 2.8% in both quarters ended December 31, 2015 and 2014. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop decreased to US$1,124.9 million compared with US$1,315.4 million in the fourth quarter of 2014. The mass market table games hold percentage was 37.1% in the fourth quarter of 2015 compared to 36.4% in the fourth quarter of 2014.

Gaming machine handle for the fourth quarter of 2015 was US$1,071.1 million, compared with US$1,351.1 million in the fourth quarter of 2014.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2015 was US$67.6 million, compared with US$71.5 million in the fourth quarter of 2014.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2015, net revenue at Altira Macau was US$142.0 million compared to US$173.1 million in the fourth quarter of 2014. Altira Macau generated Adjusted EBITDA of US$9.7 million in the fourth quarter of 2015 compared with Adjusted EBITDA of US$14.2 million in the fourth quarter of 2014. The year-over-year decrease in Adjusted EBITDA was primarily a result of lower rolling chip revenues and mass market table games revenues.

Rolling chip volume totaled US$4.8 billion in the fourth quarter of 2015 versus US$8.1 billion in the fourth quarter of 2014. The rolling chip win rate was 3.3% in the fourth quarter of 2015 versus 2.6% in the fourth quarter of 2014. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$133.4 million in the fourth quarter of 2015, a decrease from US$174.7 million generated in the comparable period in 2014. The mass market table games hold percentage was 19.4% in the fourth quarter of 2015 compared with 18.4% in the fourth quarter of 2014.

Gaming machine handle for the fourth quarter of 2015 was US$7.7 million.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2015 was US$7.6 million compared with US$9.3 million in the fourth quarter of 2014.

 

3


Mocha Clubs Fourth Quarter Results

Net revenue from Mocha Clubs totaled US$32.0 million in the fourth quarter of 2015 as compared to US$32.8 million in the fourth quarter of 2014. Mocha Clubs generated US$6.4 million of Adjusted EBITDA in the fourth quarter of 2015 compared with US$6.5 million in the same period in 2014.

The number of gaming machines in operation at Mocha Clubs averaged approximately 1,200 in the fourth quarter of 2015, compared to approximately 1,300 in the comparable period in 2014. The reduction in gaming machines reported by Mocha Clubs was primarily due to the transfer of the reporting of one club to Altira Macau in 2015. The net win per gaming machine per day was US$281 in the fourth quarter of 2015, as compared with US$261 in the comparable period in 2014.

Studio City Fourth Quarter Results

Studio City started operations on October 27, 2015. For the quarter ended December 31, 2015, net revenue at Studio City was US$123.2 million. Studio City generated Adjusted EBITDA of US$12.6 million in the fourth quarter of 2015.

Mass market table games drop was US$365.3 million and the mass market table games hold percentage was 22.4% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2015 was US$264.9 million.

Total non-gaming revenue at Studio City in the fourth quarter of 2015 was US$37.8 million.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2015, net revenue at City of Dreams Manila was US$80.9 million compared to US$7.6 million in the fourth quarter of 2014. City of Dreams Manila generated Adjusted EBITDA of US$15.5 million in the fourth quarter of 2015 compared to US$0.1 million in the comparable period of 2014. The year-over-year improvement in Adjusted EBITDA was primarily a result of full operation in the fourth quarter of 2015, since City of Dreams Manila started operations on December 14, 2014.

Rolling chip volume totaled US$1.3 billion for the fourth quarter of 2015. The rolling chip win rate was 2.1% in the fourth quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop was US$106.3 million and the mass market table games hold percentage was 27.5% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2015 was US$420.9 million. The number of gaming machines in operation at City of Dreams Manila averaged approximately 1,700 in the fourth quarter of 2015.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2015 was US$25.0 million, compared with US$1.7 million in the fourth quarter of 2014.

 

4


Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2015 were US$59.9 million, which mainly included interest income of US$3.1 million and interest expenses, net of capitalized interest, of US$44.1 million, US$14.0 million of other finance costs and US$7.0 million of costs associated with debt modification. We recorded US$19.2 million of capitalized interest during the fourth quarter of 2015, primarily relating to Studio City and the development of the fifth hotel tower at City of Dreams.

The year-on-year increase of US$20.8 million in net non-operating expenses was primarily due to lower capitalized interest in the current quarter and costs associated with debt modification arisen from the amendment of Studio City Project Facility.

Depreciation and amortization costs of US$130.0 million were recorded in the fourth quarter of 2015, 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, 2015 totaled US$2.7 billion, including US$0.7 billion of bank deposits with original maturity over three months and US$0.3 billion of restricted cash, primarily related to Studio City. Total debt at the end of the fourth quarter of 2015 was US$4.0 billion.

Capital expenditure for the fourth quarter of 2015 were US$198.2 million, which predominantly related to Studio City and various projects at City of Dreams, including the fifth hotel tower development.

Full Year Results

For the year ended December 31, 2015, Melco Crown Entertainment reported net revenue of US$4.0 billion versus US$4.8 billion in the prior year. The year-over-year decline in net revenue was primarily attributable to lower rolling chip revenues and mass market table games revenues in City of Dreams and Altira Macau, partially offset by the net revenue generated by Studio City and City of Dreams Manila, which started operations in October 2015 and December 2014, respectively.

Adjusted property EBITDA for the year ended December 31, 2015 was US$932.0 million, as compared with Adjusted property EBITDA of US$1,285.5 million in 2014. The year-over-year decline in Adjusted property EBITDA was primarily attributable to lower group-wide rolling chip revenues and mass market table games revenues.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for 2015 was US$105.7 million, or US$0.20 per ADS, compared with a net income attributable to Melco Crown Entertainment of US$608.3 million, or US$1.11 per ADS, for 2014.

The shareholders and potential investors of Melco Crown Entertainment are advised not to place undue reliance on the unaudited earnings and financial information of the Company for the fourth quarter and year ended December 31, 2015. The shareholders and potential investors of the Company are advised to exercise caution in dealing in the securities of the Company.

 

5


Special Dividend Declaration

On February 18, 2016, our Board considered and approved the declaration and payment of a special dividend of US$0.2146 per share (equivalent to US$0.6438 per ADS) (the “Special Dividend”), highlighting our Company’s strong cash position and cash flow generating ability which has enabled us to return surplus capital to shareholders while still investing in our business.

The Special Dividend will be paid on or about Wednesday, March 16, 2016 to our shareholders whose names appear on the register of members of the Company at the close of business on Tuesday, March 1, 2016, being the record date for determination of entitlements to the Special Dividend.

 

6


Conference Call Information

Melco Crown Entertainment will hold a conference call to discuss its fourth quarter 2015 financial results on Thursday, February 18, 2016 at 8:30 a.m. Eastern Time (9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

 

US Toll Free    1 866 519 4004
US Toll/International    1 845 675 0437
HK Toll    852 3018 6771
HK Toll Free    800 906 601
UK Toll Free    080 8234 6646
Australia Toll    612 9083 3212
Australia Toll Free    1 800 411 623
Philippines Toll Free    1 800 1651 0607
Passcode    MPEL

An audio webcast will also be available at www.melco-crown.com.

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

 

US Toll Free    1 855 452 5696
US Toll/International    1 646 254 3697
HK Toll Free    800 963 117
Philippines Toll Free    1 800 1612 0166
Conference ID    34876274

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. 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 visitation in Macau and the Philippines, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and other governmental approvals and regulations, and (vi) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

 

7


Non-GAAP Financial Measures

 

(1) “Adjusted EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation, gain on disposal of assets held for sale and other non-operating income and expenses. “Adjusted property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, gain on disposal of assets held for sale, corporate and others expenses and other non-operating income and expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as a supplemental disclosure because management believes that 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 (loss)” is net income (loss) before pre-opening costs, development costs, property charges and others, loss on extinguishment of debt and costs associated with debt modification. Adjusted net income (loss) attributable to Melco Crown Entertainment and adjusted net income (loss) attributable to Melco Crown Entertainment per share (“EPS”) are presented as supplemental disclosures because management believes that 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 (loss) attributable to Melco Crown Entertainment and adjusted net income (loss) attributable to Melco Crown Entertainment 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 Crown Entertainment with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

 

8


About Melco Crown Entertainment Limited

Melco Crown Entertainment, with its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ: MPEL), is a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia. Melco Crown Entertainment 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. Melco Crown Entertainment’s 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, Melco Crown (Philippines) Resorts Corporation’s subsidiary, MCE Leisure (Philippines) Corporation, 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 Melco Crown Entertainment, please visit www.melco-crown.com.

Melco Crown Entertainment has strong support from both of its major shareholders, Melco International Development Limited (“Melco”) and Crown Resorts Limited (“Crown”). Melco is a listed company on the Main Board of The Stock Exchange of Hong Kong Limited and is substantially owned and led by Mr. Lawrence Ho, who is Co-Chairman, an Executive Director and the Chief Executive Officer of Melco Crown Entertainment. Crown is a top-50 company listed on the Australian Securities Exchange and led by Mr. James Packer, who is also Co-Chairman and a Non-executive Director of Melco Crown Entertainment.

For investment community, please contact:

Ross Dunwoody

Vice President, Investor Relations

Tel: +853 8868 7575 or +852 2598 3689

Email: rossdunwoody@melco-crown.com

For media enquiry, please contact:

Maggie Ma

Senior Vice President, Corporate Communications and Public Relations

Tel: +853 8868 3767 or +852 3151 3767

Email: maggiema@melco-crown.com

 

9


Melco Crown Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations

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

 

    

Three Months Ended

December 31,

   

Year Ended

December 31,

 
     2015     2014     2015     2014  
     (Unaudited)     (Unaudited)     (Unaudited)     (Audited)  

OPERATING REVENUES

        

Casino

   $ 981,121      $ 1,084,741      $ 3,767,291      $ 4,654,184   

Rooms

     61,136        35,527        199,727        136,427   

Food and beverage

     37,635        23,331        126,848        84,895   

Entertainment, retail and others

     41,480        25,248        117,543        108,417   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross revenues

     1,121,372        1,168,847        4,211,409        4,983,923   

Less: promotional allowances

     (63,342     (47,462     (236,609     (181,614
  

 

 

   

 

 

   

 

 

   

 

 

 

Net revenues

     1,058,030        1,121,385        3,974,800        4,802,309   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING COSTS AND EXPENSES

        

Casino

     (692,606     (768,399     (2,654,760     (3,246,404

Rooms

     (8,078     (3,379     (23,419     (12,669

Food and beverage

     (19,271     (6,451     (43,295     (23,513

Entertainment, retail and others

     (25,978     (15,264     (77,506     (62,073

General and administrative

     (110,141     (86,913     (383,874     (311,696

Payments to the Philippine Parties

     (4,553     (870     (16,547     (870

Pre-opening costs

     (52,501     (36,787     (168,172     (93,970

Development costs

     (53     (2,280     (110     (10,734

Amortization of gaming subconcession

     (14,309     (14,309     (57,237     (57,237

Amortization of land use rights

     (5,703     (16,118     (54,056     (64,471

Depreciation and amortization

     (109,941     (62,308     (359,341     (246,686

Property charges and others

     (32,729     (3,009     (38,068     (8,698

Gain on disposal of assets held for sale

     —          —          —          22,072   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     (1,075,863     (1,016,087     (3,876,385     (4,116,949
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING (LOSS) INCOME

     (17,833     105,298        98,415        685,360   
  

 

 

   

 

 

   

 

 

   

 

 

 

NON-OPERATING INCOME (EXPENSES)

        

Interest income

     3,129        6,275        13,900        20,025   

Interest expenses, net of capitalized interest

     (44,116     (29,551     (118,330     (124,090

Other finance costs

     (14,000     (11,833     (45,839     (47,031

Foreign exchange gain (loss), net

     1,381        (4,475     (2,156     (6,155

Other income, net

     735        548        2,317        2,313   

Loss on extinguishment of debt

     —          —          (481     —     

Costs associated with debt modification

     (7,011     —          (7,603     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total non-operating expenses, net

     (59,882     (39,036     (158,192     (154,938
  

 

 

   

 

 

   

 

 

   

 

 

 

(LOSS) INCOME BEFORE INCOME TAX

     (77,715     66,262        (59,777     530,422   

INCOME TAX (EXPENSE) CREDIT

     (266     336        (1,031     (3,036
  

 

 

   

 

 

   

 

 

   

 

 

 

NET (LOSS) INCOME

     (77,981     66,598        (60,808     527,386   

NET LOSS ATTRIBUTABLE TO NONCONTROLLING
INTERESTS

     65,642        26,346        166,555        80,894   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED

   $ (12,339   $ 92,944      $ 105,747      $ 608,280   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:

        

Basic

   $ (0.008   $ 0.057      $ 0.065      $ 0.369   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.008   $ 0.056      $ 0.065      $ 0.366   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS:

        

Basic

   $ (0.023   $ 0.170      $ 0.196      $ 1.108   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.023   $ 0.169      $ 0.195      $ 1.099   
  

 

 

   

 

 

   

 

 

   

 

 

 

WEIGHTED AVERAGE SHARES USED IN NET (LOSS) INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE CALCULATION:

        

Basic

     1,617,943,012        1,636,531,029        1,617,263,041        1,647,571,547   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     1,617,943,012        1,648,055,645        1,627,108,770        1,660,503,130   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


Melco Crown Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

     December 31,
2015
    December 31,
2014
 
     (Unaudited)     (Audited)  

ASSETS

    

CURRENT ASSETS

    

Cash and cash equivalents

   $ 1,611,026      $ 1,597,655   

Bank deposits with original maturity over three months

     724,736        110,616   

Restricted cash

     317,118        1,447,034   

Accounts receivable, net

     271,627        253,665   

Amounts due from affiliated companies

     1,175        1,079   

Deferred tax assets

     19        532   

Income tax receivable

     62        15   

Inventories

     33,074        23,111   

Prepaid expenses and other current assets

     61,324        69,254   
  

 

 

   

 

 

 

Total current assets

     3,020,161        3,502,961   
  

 

 

   

 

 

 

PROPERTY AND EQUIPMENT, NET

     5,760,229        4,696,391   

GAMING SUBCONCESSION, NET

     370,557        427,794   

INTANGIBLE ASSETS, NET

     4,220        4,220   

GOODWILL

     81,915        81,915   

LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS

     159,677        287,558   

RESTRICTED CASH

     —          369,549   

DEFERRED TAX ASSETS

     83        115   

DEFERRED FINANCING COSTS, NET

     179,808        174,872   

LAND USE RIGHTS, NET

     833,132        887,188   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 10,409,782      $ 10,432,563   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

CURRENT LIABILITIES

    

Accounts payable

   $ 15,588      $ 14,428   

Accrued expenses and other current liabilities

     1,056,850        1,005,720   

Income tax payable

     3,487        6,621   

Capital lease obligations, due within one year

     29,792        23,512   

Current portion of long-term debt

     106,505        262,750   

Amounts due to affiliated companies

     2,464        3,626   
  

 

 

   

 

 

 

Total current liabilities

     1,214,686        1,316,657   
  

 

 

   

 

 

 

LONG-TERM DEBT

     3,856,200        3,640,031   

OTHER LONG-TERM LIABILITIES

     80,962        93,441   

DEFERRED TAX LIABILITIES

     55,598        58,949   

CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR

     270,477        278,027   

LAND USE RIGHTS PAYABLE

     —          3,788   

SHAREHOLDERS’ EQUITY

    

Ordinary shares

     16,309        16,337   

Treasury shares

     (275     (33,167

Additional paid-in capital

     3,072,026        3,092,943   

Accumulated other comprehensive losses

     (18,501     (17,149

Retained earnings

     1,270,074        1,227,177   
  

 

 

   

 

 

 

Total Melco Crown Entertainment Limited shareholders’ equity

     4,339,633        4,286,141   

Noncontrolling interests

     592,226        755,529   
  

 

 

   

 

 

 

Total equity

     4,931,859        5,041,670   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 10,409,782      $ 10,432,563   
  

 

 

   

 

 

 

 

11


Melco Crown Entertainment Limited and Subsidiaries

Reconciliation of Net (Loss) Income Attributable to Melco Crown Entertainment Limited to

Adjusted Net Income Attributable to Melco Crown Entertainment Limited

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

 

    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Net (Loss) Income Attributable to Melco Crown Entertainment Limited

  $ (12,339   $ 92,944      $ 105,747      $ 608,280   

Pre-opening Costs, Net

    30,761        25,086        97,964        66,602   

Development Costs, Net

    53        2,280        110        10,734   

Property Charges and Others, Net

    24,004        2,992        28,937        7,605   

Loss on Extinguishment of Debt, Net

    —          —          481        —     

Costs Associated with Debt Modification, Net

    4,207        —          4,799        —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net Income Attributable to Melco Crown Entertainment Limited

  $ 46,686      $ 123,302      $ 238,038      $ 693,221   
 

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT
LIMITED PER SHARE:

       

Basic

  $ 0.029      $ 0.075      $ 0.147      $ 0.421   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

  $ 0.029      $ 0.075      $ 0.146      $ 0.417   
 

 

 

   

 

 

   

 

 

   

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT
LIMITED PER ADS:

       

Basic

  $ 0.087      $ 0.226      $ 0.442      $ 1.262   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

  $ 0.086      $ 0.224      $ 0.439      $ 1.252   
 

 

 

   

 

 

   

 

 

   

 

 

 

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

       

Basic

    1,617,943,012        1,636,531,029        1,617,263,041        1,647,571,547   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

    1,626,677,872        1,648,055,645        1,627,108,770        1,660,503,130   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

12


Melco Crown 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, 2015  
     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)

   $ 3,569       $ 3,361      $ 146,393       $ (73,381   $ (47,534   $ (50,241   $ (17,833

Payments to the Philippine Parties

     —           —          —           —          4,553        —          4,553   

Land Rent to Belle Corporation

     —           —          —           —          842        —          842   

Pre-opening Costs

     —           —          7         52,036        458        —          52,501   

Development Costs

     —           —          —           —          —          53        53   

Depreciation and Amortization

     6,020         3,025        45,141         33,765        24,128        17,874        129,953   

Share-based Compensation

     29         23        447         90        1,816        2,798        5,203   

Property Charges and Others

     51         —          244         126        31,217        1,091        32,729   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     9,669         6,409        192,232         12,636        15,480        (28,425     208,001   

Corporate and Others Expenses

     —           —          —           —          —          28,425        28,425   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 9,669       $ 6,409      $ 192,232       $ 12,636      $ 15,480      $ —        $ 236,426   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended December 31, 2014  
     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)

   $ 7,538       $ 3,315      $ 203,073       $ (18,240   $ (36,634   $ (53,754   $ 105,298   

Payments to the Philippine Parties

     —           —          —           —          870        —          870   

Land Rent to Belle Corporation

     —           —          —           —          884        —          884   

Pre-opening Costs

     —           —          367         7,114        28,570        —          36,051   

Development Costs

     —           —          —           —          —          2,280        2,280   

Depreciation and Amortization

     6,646         3,215        51,274         10,893        4,396        16,311        92,735   

Share-based Compensation

     17         6        287         22        1,965        2,735        5,032   

Property Charges and Others

     —           (31     2,984         —          56        —          3,009   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     14,201         6,505        257,985         (211     107        (32,428     246,159   

Corporate and Others Expenses

     —           —          —           —          —          32,428        32,428   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

   $ 14,201       $ 6,505      $ 257,985       $ (211   $ 107      $ —        $ 278,587   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

13


Melco Crown Entertainment Limited and Subsidiaries

Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to

Net (Loss) Income Attributable to Melco Crown Entertainment Limited

(In thousands of U.S. dollars)

 

    

Three Months Ended

December 31,

 
     2015     2014  
     (Unaudited)     (Unaudited)  

Adjusted Property EBITDA

   $ 236,426      $ 278,587   

Corporate and Others Expenses

     (28,425     (32,428
  

 

 

   

 

 

 

Adjusted EBITDA

     208,001        246,159   

Payments to the Philippine Parties

     (4,553     (870

Land Rent to Belle Corporation

     (842     (884

Pre-opening Costs

     (52,501     (36,051

Development Costs

     (53     (2,280

Depreciation and Amortization

     (129,953      (92,735

Share-based Compensation

     (5,203     (5,032

Property Charges and Others

     (32,729     (3,009

Interest and Other Non-Operating Expenses, Net

     (59,882     (39,036

Income Tax (Expense) Credit

     (266     336   
  

 

 

   

 

 

 

Net (Loss) Income

     (77,981     66,598   

Net Loss Attributable to Noncontrolling Interests

     65,642        26,346   
  

 

 

   

 

 

 

Net (Loss) Income Attributable to Melco Crown Entertainment Limited

   $ (12,339   $ 92,944   
  

 

 

   

 

 

 

 

14


Melco Crown 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, 2015  
    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)

  $ 7,877      $ 17,835      $ 595,330      $ (187,665   $ (126,360   $ (208,602   $ 98,415   

Payments to the Philippine Parties

    —          —          —          —          16,547        —          16,547   

Land Rent to Belle Corporation

    —          —          —          —          3,476        —          3,476   

Pre-opening Costs

    —          —          395        131,321        28,365        8,091        168,172   

Development Costs

    —          —          —          —          —          110        110   

Depreciation and Amortization

    28,216        12,337        200,373        66,503        95,021        68,184        470,634   

Share-based Compensation

    117        87        1,861        293        7,100        11,369        20,827   

Property Charges and Others

    51        —          545        1,142        31,217        5,113        38,068   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    36,261        30,259        798,504        11,594        55,366        (115,735     816,249   

Corporate and Others Expenses

    —          —          —          —          —             115,735        115,735   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

  $ 36,261      $ 30,259      $ 798,504      $      11,594      $ 55,366      $ —        $ 931,984   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    Year Ended December 31, 2014  
    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)

  $ 57,459      $ 21,758      $ 942,528      $ (60,675   $ (92,188   $ (183,522   $ 685,360   

Payments to the Philippine Parties

    —          —          —          —          870        —          870   

Land Rent to Belle Corporation

    —          —          —          —          3,562        —          3,562   

Pre-opening Costs

    —          1,082        3,682        15,771        70,021        —          90,556   

Development Costs

    —          —          —          —          —          10,734        10,734   

Depreciation and Amortization

    27,242        12,178        214,492        43,558        6,367        64,557        368,394   

Share-based Compensation

    94        119        1,189        50        7,867        11,082        20,401   

Property Charges and Others

    —          1,200        3,741        —          3,507        250        8,698   

Gain on Disposal of Assets Held For Sale

    —          —          —          —          —          (22,072     (22,072
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    84,795        36,337        1,165,632        (1,296     6        (118,971     1,166,503   

Corporate and Others Expenses

    —          —          —          —          —          118,971        118,971   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Property EBITDA

  $      84,795      $      36,337      $ 1,165,632      $ (1,296   $ 6      $ —        $ 1,285,474   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

15


Melco Crown Entertainment Limited and Subsidiaries

Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to

Net Income Attributable to Melco Crown Entertainment Limited

(In thousands of U.S. dollars)

 

    

Year Ended

December 31,

 
     2015     2014  
     (Unaudited)     (Unaudited)  

Adjusted Property EBITDA

   $ 931,984      $ 1,285,474   

Corporate and Others Expenses

     (115,735     (118,971
  

 

 

   

 

 

 

Adjusted EBITDA

     816,249        1,166,503   

Payments to the Philippine Parties

     (16,547     (870

Land Rent to Belle Corporation

     (3,476     (3,562

Pre-opening Costs

     (168,172     (90,556

Development Costs

     (110     (10,734

Depreciation and Amortization

       (470,634     (368,394

Share-based Compensation

     (20,827     (20,401

Property Charges and Others

     (38,068     (8,698

Gain on Disposal of Assets Held For Sale

     —          22,072   

Interest and Other Non-Operating Expenses, Net

     (158,192     (154,938

Income Tax Expense

     (1,031     (3,036
  

 

 

   

 

 

 

Net (Loss) Income

     (60,808     527,386   

Net Loss Attributable to Noncontrolling Interests

     166,555        80,894   
  

 

 

   

 

 

 

Net Income Attributable to Melco Crown Entertainment Limited

   $ 105,747      $ 608,280   
  

 

 

   

 

 

 

 

16


Melco Crown Entertainment Limited and Subsidiaries

Supplemental Data Schedule

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2015     2014     2015     2014  

Room Statistics:

        

Altira Macau

        

Average daily rate (3)

   $ 213      $ 235      $ 212      $ 232   

Occupancy per available room

     97     99     98     99

Revenue per available room (4)

   $ 206      $ 233      $ 209      $ 229   

City of Dreams

        

Average daily rate (3)

   $ 205      $ 200      $ 201      $ 197   

Occupancy per available room

     97     100     99     99

Revenue per available room (4)

   $ 200      $ 200      $ 198      $ 195   

Studio City

        

Average daily rate (3)

   $ 136        N/A      $ 136        N/A   

Occupancy per available room

     98     N/A        98     N/A   

Revenue per available room (4)

   $ 133        N/A      $ 133        N/A   

City of Dreams Manila

        

Average daily rate (3)

   $ 168      $ 207      $ 191      $ 207   

Occupancy per available room

     88     63     86     63

Revenue per available room (4)

   $ 148      $ 130      $ 164      $ 130   

Other Information:

        

Altira Macau

        

Average number of table games

     131        122        126        131   

Average number of gaming machines

     55        N/A        56        N/A   

Table games win per unit per day (5)

   $ 15,374      $ 21,983      $ 17,079      $ 21,810   

Gaming machines win per unit per day (6)

   $ 89        N/A      $ 98        N/A   

City of Dreams

        

Average number of table games

     494        501        497        493   

Average number of gaming machines

     1,090        1,350        1,146        1,331   

Table games win per unit per day (5)

   $ 15,435      $ 21,487      $ 16,176      $ 23,955   

Gaming machines win per unit per day (6)

   $ 363      $ 427      $ 404      $ 464   

Studio City

        

Average number of table games

     196        N/A        196        N/A   

Average number of gaming machines

     1,165        N/A        1,165        N/A   

Table games win per unit per day (5)

   $ 6,326        N/A      $ 6,326        N/A   

Gaming machines win per unit per day (6)

   $ 168        N/A      $ 168        N/A   

City of Dreams Manila

        

Average number of table games

     276        174        263        174   

Average number of gaming machines

     1,660        1,505        1,709        1,505   

Table games win per unit per day (5)

   $ 2,268      $ 1,125      $ 2,033      $ 1,125   

Gaming machines win per unit per day (6)

   $ 170      $ 122      $ 170      $ 122   

 

(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

 

17

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