MLCO Melco Resorts and Entertainment Ltd

Melco Crown Entertainment Limited (Nasdaq:MPEL) (“Melco Crown Entertainment” or the “Company” or “we”), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia, today reported its unaudited financial results for the second quarter of 2016.

Net revenue for the second quarter of 2016 was US$1,070.4 million, representing an increase of approximately 17% from US$916.8 million for the comparable period in 2015. The increase in net revenue was primarily attributable to the net revenue generated by Studio City, which started operations in October 2015, and the increase in casino revenues at City of Dreams Manila, partially offset by lower casino revenues at City of Dreams and Altira Macau.

On a U.S. GAAP basis, operating income for the second quarter of 2016 was US$72.4 million compared with operating income of US$22.0 million in the second quarter of 2015, representing an increase of 230%.

Adjusted property EBITDA(1) was US$245.3 million for the second quarter of 2016, as compared to Adjusted property EBITDA of US$204.9 million in the second quarter of 2015, representing an increase of 20%. The 20% year-over-year improvement in Adjusted property EBITDA was mainly attributable to the contribution from newly-opened Studio City and fully-operating City of Dreams Manila.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the second quarter of 2016 was US$30.8 million, or US$0.06 per ADS, compared with net income attributable to Melco Crown Entertainment of US$24.3 million, or US$0.05 per ADS, in the second quarter of 2015. The net loss attributable to noncontrolling interests during the second quarter of 2016 of US$28.8 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “We delivered a 20% year-over-year increase in Adjusted property EBITDA during the second quarter of 2016 as a result of our commitment to controlling costs and increased exposure to the higher margin mass market segment in Macau, together with a strong performance at our integrated resort in Manila.”

“Studio City, our second integrated resort in Cotai, Macau, which opened in late 2015, is still in its ramp-up phrase and positioned for further increased revenues and profitability in the future as the property builds a strong customer database through its unique entertainment offerings which attract an increasingly Cotai-based mass market customer.

“Macau continues to face challenges in gaming demand. However, we believe that revenue trends, particularly in the mass market segments, will improve as Macau further evolves in to a multi-faceted, mass market-focused destination, deserving the accolade of being the most exciting gaming and entertainment destination in Asia.

“Our Company is well positioned to cater to these evolving trends in Macau, with a unique array of non-gaming, mass market-focused amenities across multiple properties that provide an ideal platform to deliver a compelling lodging, entertainment and retail offering to our customers.

“In Manila, City of Dreams delivered impressive improvements in all gaming segments which, together with a strong focus on managing reinvestment costs and other operating expenses, resulted in an increase in Adjusted property EBITDA of approximately 190% on a year-over-year basis. City of Dreams Manila provides us with a strong and diversified earnings stream to complement our operations in Macau.

“We believe that the Philippines gaming market will continue to show robust growth as the country’s economy rapidly expands, infrastructure continues to improve and the Government retains its strong commitment to supporting domestic and international tourism.”  

City of Dreams Second Quarter Results

For the quarter ended June 30, 2016, net revenue at City of Dreams was US$629.9 million compared to US$654.2 million in the second quarter of 2015. City of Dreams generated Adjusted EBITDA of US$177.7 million in the second quarter of 2016, broadly flat as compared to US$179.0 million in the comparable period of 2015.

Rolling chip volume totaled US$9.9 billion for the second quarter of 2016 versus US$11.1 billion in the second quarter of 2015. The rolling chip win rate was 3.0% in the second quarter of 2016 versus 2.7% in the second quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop decreased to US$1,027.7 million compared with US$1,198.8 million in the second quarter of 2015. The mass market table games hold percentage was 35.7% in the second quarter of 2016 compared to 32.4% in the second quarter of 2015.

Gaming machine handle for the second quarter of 2016 was US$1,003.5 million, compared with US$1,116.7 million in the second quarter of 2015. The gaming machine win rate was 3.2% in the second quarter of 2016 versus 4.1% in the second quarter of 2015.

Total non-gaming revenue at City of Dreams in the second quarter of 2016 was US$62.8 million, compared with US$63.8 million in the second quarter of 2015.

Altira Macau Second Quarter Results

For the quarter ended June 30, 2016, net revenue at Altira Macau was US$98.7 million compared to US$143.9 million in the second quarter of 2015. Altira Macau generated Adjusted EBITDA of US$1.7 million in the second quarter of 2016 compared with Adjusted EBITDA of US$6.5 million in the second quarter of 2015. The year-over-year decrease in Adjusted EBITDA was primarily a result of lower rolling chip revenues.

Rolling chip volume totaled US$4.2 billion in the second quarter of 2016 versus US$6.5 billion in the second quarter of 2015. The rolling chip win rate was 2.7% in both quarters ended June 30, 2016 and 2015. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$124.2 million in the second quarter of 2016, a decrease from US$166.7 million generated in the comparable period in 2015. The mass market table games hold percentage was 18.5% in the second quarter of 2016 compared with 15.9% in the second quarter of 2015.

Gaming machine handle for the second quarter of 2016 was US$7.3 million, compared with US$7.7 million in the second quarter of 2015. The gaming machine win rate was 6.5% in the second quarter of 2016 versus 5.9% in the second quarter of 2015.

Total non-gaming revenue at Altira Macau in the second quarter of 2016 was US$6.8 million compared with US$8.2 million in the second quarter of 2015.

Mocha Clubs Second Quarter Results

Net revenue from Mocha Clubs totaled US$28.0 million in the second quarter of 2016 as compared to US$33.2 million in the second quarter of 2015. Mocha Clubs generated US$4.8 million of Adjusted EBITDA in the second quarter of 2016 compared with US$7.1 million in the same period in 2015.

Gaming machine handle for the second quarter of 2016 was US$595.8 million, compared with US$720.6 million in the second quarter of 2015. The gaming machine win rate was 4.6% in the second quarter of 2016 versus 4.5% in the second quarter of 2015.

Studio City Second Quarter Results

Studio City started operations on October 27, 2015. For the quarter ended June 30, 2016, net revenue at Studio City was US$183.8 million. Studio City generated Adjusted EBITDA of US$24.6 million in the second quarter of 2016. This Adjusted EBITDA for Studio City operations is different from “Consolidated EBITDA” as defined in the US$1.4 billion Studio City senior secured facility agreement (“Studio City Loan Agreement”) for financial covenant testing purposes.  For the first quarter of 2016, the Adjusted EBITDA for Studio City operations was US$22.1 million and the Consolidated EBITDA (as defined the Studio City loan agreement) was US$18.0 million.  

The Studio City Loan Agreement requires compliance with various minimum financial condition requirements, all of which are based on the Consolidated EBITDA or Cashflow (both as defined in the Studio City Loan Agreement).  The first period for which compliance with these minimum financial conditions will be tested is the twelve-month period ending on March 31, 2017.  In order for Studio City Company Limited, the borrower under the Studio City Loan Agreement, to meet such financial condition requirements for the twelve-month period ending on March 31, 2017, the ramp-up of Studio City operations must be significantly accelerated by March 31, 2017. The Company is not a guarantor under the Studio City Loan Agreement or the 8.50% senior notes due 2020 issued by Studio City Finance Limited.  

Mass market table games drop was US$592.2 million and the mass market table games hold percentage was 22.8% in the second quarter of 2016. 

Gaming machine handle was US$485.3 million and the gaming machine win rate was 3.6% in the second quarter of 2016.

Total non-gaming revenue at Studio City in the second quarter of 2016 was US$51.1 million.

City of Dreams Manila Second Quarter Results

For the quarter ended June 30, 2016, net revenue at City of Dreams Manila was US$120.2 million compared to US$75.0 million in the second quarter of 2015. City of Dreams Manila generated Adjusted EBITDA of US$36.5 million in the second quarter of 2016 compared to US$12.6 million in the comparable period of 2015. The year-over-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues, including from the junket operations which began in the middle of 2015.

Rolling chip volume totaled US$1.7 billion for the second quarter of 2016 versus US$495.8 million in the second quarter of 2015. The rolling chip win rate was 3.4% in the second quarter of 2016 versus 2.4% in the second quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$134.3 million compared with US$116.6 million in the second quarter of 2015. The mass market table games hold percentage was 29.9% in the second quarter of 2016 compared to 25.4% in the second quarter of 2015.

Gaming machine handle for the second quarter of 2016 was US$515.4 million, compared with US$465.1 million in the second quarter of 2015. The gaming machine win rate was 5.8% in the second quarter of 2016 versus 6.1% in the second quarter of 2015.

Total non-gaming revenue at City of Dreams Manila in the second quarter of 2016 was US$26.2 million, compared with US$28.6 million in the second quarter of 2015.

Other Factors Affecting Earnings

Total net non-operating expenses for the second quarter of 2016 were US$69.0 million, which mainly included interest expenses, net of capitalized interest, of US$58.5 million and US$14.1 million of other finance costs. We recorded US$4.3 million of capitalized interest during the second quarter of 2016, primarily relating to the development of the fifth hotel tower at City of Dreams.

The year-on-year increase of US$41.1 million in net non-operating expenses was primarily due to lower capitalized interest in the current quarter.

Depreciation and amortization costs of US$137.7 million were recorded in the second quarter of 2016, 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 June 30, 2016 totaled US$1.6 billion, including US$49.4 million of bank deposits with original maturity over three months and US$212.0 million of restricted cash, primarily related to Studio City. Total debt, net of deferred financing costs, at the end of the second quarter of 2016 was US$3.8 billion.

Capital expenditures for the second quarter of 2016 were US$116.8 million, which predominantly related to various projects at City of Dreams, including the fifth hotel tower development.

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 second quarter of 2016. The shareholders and potential investors of the Company are advised to exercise caution in dealing in the securities of the Company.

Dividend Declaration

On August 4, 2016, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.0063 per share (equivalent to US$0.0189 per ADS) for the second quarter of 2016 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about Wednesday, August 31, 2016 to our shareholders whose names appear on the register of members of the Company at the close of business on Tuesday, August 16, 2016, being the record date for determination of entitlements to the Quarterly Dividend.

Other Information

We previously reported that, in October 2015, the prosecutor appealed the Taipei District Court’s not guilty judgment in favour of our subsidiary’s Taiwan branch office and its employees. In mid-June 2016, the Taiwan High Court dismissed the prosecutor’s appeal, and affirmed the not guilty verdict in favor of the Taiwan branch office and its employees. Following the Taiwan High Court’s decision, the prosecutor has not filed a further appeal, and we understand that the deadline for such appeal has since lapsed under the relevant local statute.

Conference Call Information

Melco Crown Entertainment will hold a conference call to discuss its second quarter 2016 financial results on Thursday, August 4, 2016 at 8:30 a.m. Eastern Time (8:30 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			61 290 833 212
Australia Toll Free			1 800 411 623
Philippines Toll Free			1 800 1651 0607
Passcode			MPEL

An audio webcast will also be available at http://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			52173375

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.

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, net gain on disposal of property and equipment to Belle Corporation and other non-operating income and expenses. "Adjusted property EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, net gain on disposal of property and equipment to Belle Corporation, Corporate and Others expenses and other non-operating income and expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as 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” is net income before net gain on disposal of property and equipment to Belle Corporation, pre-opening costs, development costs, property charges and others, loss on extinguishment of debt and costs associated with debt modification. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income 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 attributable to Melco Crown Entertainment and adjusted net income 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 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.

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 is strongly supported by its single largest shareholder, Melco International Development Limited (“Melco”) and its other major shareholder, 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 the Chairman, Executive Director and Chief Executive Officer of Melco Crown Entertainment. Crown is a top-100 company listed on the Australian Securities Exchange and led by Mr. James Packer, who is the Deputy Chairman and a Non-executive Director of Melco Crown Entertainment.

For investment community, please contact:

Ross DunwoodyVice President, Investor RelationsTel: +853 8868 7575 or +852 2598 3689Email: rossdunwoody@melco-crown.com

For media enquires, please contact:

Maggie MaSenior Vice President, Corporate Communications and Public RelationsTel: +853 8868 3767 or +852 3151 3767Email: maggiema@melco-crown.com

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									Six Months Ended
	June 30,									June 30,
		2016			2015					2016					2015
	(Unaudited)					(Unaudited)					(Unaudited)					(Unaudited)
OPERATING REVENUES
Casino	$	994,530			$		874,460			$		2,016,788			$		1,885,702
Rooms		64,417					48,451					127,869					93,014
Food and beverage		41,387					29,382					82,371					58,889
Entertainment, retail and others		42,853					24,486					91,055					47,703
Gross revenues		1,143,187					976,779					2,318,083					2,085,308
Less: promotional allowances		(72,789	)				(59,991	)				(144,118	)				(114,268	)
Net revenues		1,070,398					916,788					2,173,965					1,971,040
OPERATING COSTS AND EXPENSES
Casino		(696,444	)				(624,027	)				(1,420,027	)				(1,340,821	)
Rooms		(7,885	)				(4,611	)				(16,421	)				(9,866	)
Food and beverage		(16,422	)				(7,684	)				(34,495	)				(15,685	)
Entertainment, retail and others		(25,551	)				(18,169	)				(54,626	)				(33,291	)
General and administrative		(103,697	)				(88,930	)				(214,016	)				(182,360	)
Payments to the Philippine Parties		(8,249	)				(4,137	)				(15,409	)				(7,273	)
Pre-opening costs		(88	)				(28,005	)				(723	)				(69,283	)
Development costs		(1	)				(1	)				(7	)				(21	)
Amortization of gaming subconcession		(14,310	)				(14,310	)				(28,619	)				(28,619	)
Amortization of land use rights		(5,704	)				(16,118	)				(11,408	)				(32,236	)
Depreciation and amortization		(117,674	)				(85,290	)				(237,645	)				(165,567	)
Property charges and others		(1,954	)				(3,538	)				(2,358	)				(3,839	)
Total operating costs and expenses		(997,979	)				(894,820	)				(2,035,754	)				(1,888,861	)
OPERATING INCOME		72,419					21,968					138,211					82,179
NON-OPERATING INCOME (EXPENSES)
Interest income		199					4,714					3,003					6,534
Interest expenses, net of capitalized interest		(58,529	)				(23,931	)				(111,019	)				(50,970	)
Other finance costs		(14,065	)				(9,910	)				(27,903	)				(22,292	)
Foreign exchange gain, net		2,474					1,665					5,030					2,919
Other income, net		877					533					1,719					1,081
Loss on extinguishment of debt		-					(481	)				-					(481	)
Costs associated with debt modification		-					(545	)				-					(545	)
Total non-operating expenses, net		(69,044	)				(27,955	)				(129,170	)				(63,754	)
INCOME (LOSS) BEFORE INCOME TAX		3,375					(5,987	)				9,041					18,425
INCOME TAX (EXPENSE) CREDIT		(1,416	)				196					(2,354	)				(378	)
NET INCOME (LOSS)		1,959					(5,791	)				6,687					18,047
NET LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS		28,832					30,045					63,900					66,836
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED	$	30,791			$		24,254			$		70,587			$		84,883
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:
Basic	$	0.020			$		0.015			$		0.045			$		0.053
Diluted	$	0.020			$		0.015			$		0.045			$		0.052
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER ADS:
Basic	$	0.061			$		0.045			$		0.135			$		0.158
Diluted	$	0.060			$		0.045			$		0.134			$		0.156
WEIGHTED AVERAGE SHARES USED IN
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic		1,522,898,329					1,617,144,022					1,570,457,116					1,616,590,943
Diluted		1,531,076,031					1,627,148,496					1,578,594,809					1,627,319,469

 

Melco Crown Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
	June 30,					December 31,
	2016					2015
		(Unaudited)					(Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$		1,291,398			$		1,611,026
Bank deposits with original maturity over three months			49,357					724,736
Restricted cash			211,979					317,118
Accounts receivable, net			223,732					271,627
Amounts due from affiliated companies			1,421					1,175
Deferred tax assets			-					19
Income tax receivable			-					62
Inventories			33,227					33,074
Prepaid expenses and other current assets			75,589					61,324
Total current assets			1,886,703					3,020,161
PROPERTY AND EQUIPMENT, NET			5,734,096					5,760,229
GAMING SUBCONCESSION, NET			341,938					370,557
INTANGIBLE ASSETS			4,220					4,220
GOODWILL			81,915					81,915
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS			173,140					192,012
DEFERRED TAX ASSETS			70					83
LAND USE RIGHTS, NET			821,724					833,132
TOTAL ASSETS	$		9,043,806			$		10,262,309
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$		15,191			$		15,588
Accrued expenses and other current liabilities			940,329					1,056,850
Income tax payable			3,595					3,487
Capital lease obligations, due within one year			31,217					29,792
Current portion of long-term debt, net			201,163					102,836
Amounts due to affiliated companies			2,544					2,464
Total current liabilities			1,194,039					1,211,017
LONG-TERM DEBT, NET			3,633,381					3,712,396
OTHER LONG-TERM LIABILITIES			100,735					80,962
DEFERRED TAX LIABILITIES			54,912					55,598
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR			274,798					270,477
SHAREHOLDERS' EQUITY
Ordinary shares			14,759					16,309
Treasury shares			(125	)				(275	)
Additional paid-in capital			2,771,923					3,075,459
Accumulated other comprehensive losses			(21,617	)				(21,934	)
Retained earnings			493,267					1,270,074
Total Melco Crown Entertainment Limited shareholders’ equity			3,258,207					4,339,633
Noncontrolling interests			527,734					592,226
Total equity			3,785,941					4,931,859
TOTAL LIABILITIES AND EQUITY	$		9,043,806			$		10,262,309
Note: The Company adopted the new guidance on simplifying the presentation of debt issuance costs issued by Financial Accounting Standards Board on a retrospective basis.  As a result, debt issuance costs of $143,804 related to the Company’s non-current portion of long-term debt (excluding revolving credit facilities) were reclassified from deferred financing costs, net to a direct reduction of the long-term debt, net; debt issuance costs of $3,669 related to the Company’s current portion of long-term debt (excluding revolving credit facilities) were reclassified from deferred financing costs, net to a direct reduction of the current portion of long-term debt, net; and debt issuance costs of $32,335 related to the Company’s revolving credit facilities were reclassified from deferred financing costs, net to long-term prepayments, deposits and other assets in the accompanying condensed consolidated balance sheet as of December 31, 2015.

 

Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Net 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								Six Months Ended
	June 30,								June 30,
	2016					2015			2016					2015
	(Unaudited)					(Unaudited)			(Unaudited)					(Unaudited)
Net Income Attributable to
Melco Crown Entertainment Limited	$		30,791			$	24,254		$		70,587			$	84,883
Net Gain on Disposal of Property and Equipment to Belle Corporation, Net			(5,908	)			-				(5,908	)			-
Pre-opening Costs, Net			146				15,417				442				41,574
Development Costs, Net			1				1				7				21
Property Charges and Others, Net			1,534				3,538				1,938				3,839
Loss on Extinguishment of Debt, Net			-				481				-				481
Costs Associated with Debt Modification, Net			-				545				-				545
Adjusted Net Income Attributable to
Melco Crown Entertainment Limited	$		26,564			$	44,236		$		67,066			$	131,343
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:
Basic	$		0.017			$	0.027		$		0.043			$	0.081
Diluted	$		0.017			$	0.027		$		0.042			$	0.081
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER ADS:
Basic	$		0.052			$	0.082		$		0.128			$	0.244
Diluted	$		0.052			$	0.082		$		0.127			$	0.242
WEIGHTED AVERAGE SHARES USED IN
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic			1,522,898,329				1,617,144,022				1,570,457,116				1,616,590,943
Diluted			1,531,076,031				1,627,148,496				1,578,594,809				1,627,319,469

 

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 June 30, 2016
		Altira Macau					Mocha			City of Dreams			Studio City					City of Dreams Manila					Corporate and Others					Total
		(Unaudited)					(Unaudited)			(Unaudited)			(Unaudited)					(Unaudited)					(Unaudited)					(Unaudited)
Operating (Loss) Income		$		(4,064	)		$	1,792		$	133,876		$		(21,056	)		$		11,127			$		(49,256	)		$	72,419
Payments to the Philippine Parties				-				-			-				-					8,249					-				8,249
Land Rent to Belle Corporation				-				-			-				-					846					-				846
Net Gain on Disposal of
Property and Equipment to Belle Corporation				-				-			-				-					(8,134	)				-				(8,134	)
Pre-opening Costs				-				-			225				(137	)				-					-				88
Development Costs				-				-			-				-					-					1				1
Depreciation and Amortization				5,754				3,007			42,982				44,758					23,633					17,554				137,688
Share-based Compensation				52				48			568				318					256					3,505				4,747
Property Charges and Others				-				-			-				682					534					738				1,954
Adjusted EBITDA				1,742				4,847			177,651				24,565					36,511					(27,458	)			217,858
Corporate and Others Expenses				-				-			-				-					-					27,458				27,458
Adjusted Property EBITDA		$		1,742			$	4,847		$	177,651		$		24,565			$		36,511			$		-			$	245,316
		Three Months Ended June 30, 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 (Loss) Income		$		(1,287	)		$	3,923		$	126,774		$		(32,781	)		$		(21,334	)		$		(53,327	)		$	21,968
Payments to the Philippine Parties				-				-			-				-					4,137					-				4,137
Land Rent to Belle Corporation				-				-			-				-					886					-				886
Pre-opening Costs				-				-			18				21,556					1,851					4,580				28,005
Development Costs				-				-			-				-					-					1				1
Depreciation and Amortization				7,726				3,144			51,585				10,899					25,415					16,949				115,718
Share-based Compensation				29				21			606				73					1,681					2,560				4,970
Property Charges and Others				-				-			-				-					-					3,538				3,538
Adjusted EBITDA				6,468				7,088			178,983				(253	)				12,636					(25,699	)			179,223
Corporate and Others Expenses				-				-			-				-					-					25,699				25,699
Adjusted Property EBITDA		$		6,468			$	7,088		$	178,983		$		(253	)		$		12,636			$		-			$	204,922

 

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)
							Three Months Ended
							June 30,
							2016					2015
							(Unaudited)					(Unaudited)
Adjusted Property EBITDA							$		245,316			$		204,922
Corporate and Others Expenses									(27,458	)				(25,699	)
Adjusted EBITDA									217,858					179,223
Payments to the Philippine Parties									(8,249	)				(4,137	)
Land Rent to Belle Corporation									(846	)				(886	)
Net Gain on Disposal of Property and Equipment to Belle Corporation									8,134					-
Pre-opening Costs									(88	)				(28,005	)
Development Costs									(1	)				(1	)
Depreciation and Amortization									(137,688	)				(115,718	)
Share-based Compensation									(4,747	)				(4,970	)
Property Charges and Others									(1,954	)				(3,538	)
Interest and Other Non-Operating Expenses, Net									(69,044	)				(27,955	)
Income Tax (Expense) Credit									(1,416	)				196
Net Income (Loss)									1,959					(5,791	)
Net Loss Attributable to Noncontrolling Interests									28,832					30,045
Net Income Attributable to Melco Crown Entertainment Limited							$		30,791			$		24,254

 

Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
	Six Months Ended June 30, 2016
	Altira Macau					Mocha			City of Dreams			Studio City					City of Dreams Manila					Corporate and Others					Total
	(Unaudited)					(Unaudited)			(Unaudited)			(Unaudited)					(Unaudited)					(Unaudited)					(Unaudited)
Operating (Loss) Income	$		(23,965	)		$	5,153		$	294,438		$		(44,385	)		$		5,690			$		(98,720	)		$	138,211
Payments to the Philippine Parties			-				-			-				-					15,409					-				15,409
Land Rent to Belle Corporation			-				-			-				-					1,686					-				1,686
Net Gain on Disposal of Property and Equipment to Belle Corporation			-				-			-				-					(8,134	)				-				(8,134	)
Pre-opening Costs			-				-			302				421					-					-				723
Development Costs			-				-			-				-					-					7				7
Depreciation and Amortization			11,580				6,086			87,283				89,465					47,908					35,350				277,672
Share-based Compensation			(30	)			82			1,041				442					2,031					6,718				10,284
Property Charges and Others			197				-			191				682					534					754				2,358
Adjusted EBITDA			(12,218	)			11,321			383,255				46,625					65,124					(55,891	)			438,216
Corporate and Others Expenses			-				-			-				-					-					55,891				55,891
Adjusted Property EBITDA	$		(12,218	)		$	11,321		$	383,255		$		46,625			$		65,124			$		-			$	494,107
	Six Months Ended June 30, 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 (Loss) Income	$		(1,346	)		$	9,051		$	309,493		$		(56,499	)		$		(71,697	)		$		(106,823	)		$	82,179
Payments to the Philippine Parties			-				-			-				-					7,273					-				7,273
Land Rent to Belle Corporation			-				-			-				-					1,780					-				1,780
Pre-opening Costs			-				-			379				33,890					28,052					6,962				69,283
Development Costs			-				-			-				-					-					21				21
Depreciation and Amortization			14,588				6,276			103,741				21,792					46,720					33,305				226,422
Share-based Compensation			59				42			868				102					3,384					5,326				9,781
Property Charges and Others			-				-			301				-					-					3,538				3,839
Adjusted EBITDA			13,301				15,369			414,782				(715	)				15,512					(57,671	)			400,578
Corporate and Others Expenses			-				-			-				-					-					57,671				57,671
Adjusted Property EBITDA	$		13,301			$	15,369		$	414,782		$		(715	)		$		15,512			$		-			$	458,249

 

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)
							Six Months Ended
							June 30,
							2016					2015
							(Unaudited)					(Unaudited)
Adjusted Property EBITDA							$		494,107			$		458,249
Corporate and Others Expenses									(55,891	)				(57,671	)
Adjusted EBITDA									438,216					400,578
Payments to the Philippine Parties									(15,409	)				(7,273	)
Land Rent to Belle Corporation									(1,686	)				(1,780	)
Net Gain on Disposal of Property and Equipment to Belle Corporation									8,134					-
Pre-opening Costs									(723	)				(69,283	)
Development Costs									(7	)				(21	)
Depreciation and Amortization									(277,672	)				(226,422	)
Share-based Compensation									(10,284	)				(9,781	)
Property Charges and Others									(2,358	)				(3,839	)
Interest and Other Non-Operating Expenses, Net									(129,170	)				(63,754	)
Income Tax Expense									(2,354	)				(378	)
Net Income									6,687					18,047
Net Loss Attributable to Noncontrolling Interests									63,900					66,836
Net Income Attributable to Melco Crown Entertainment Limited							$		70,587			$		84,883

 

Melco Crown Entertainment Limited and Subsidiaries
Supplemental Data Schedule
				Three Months Ended								Six Months Ended
				June 30,								June 30,
					2016				2015				2016				2015
Room Statistics:
Altira Macau
Average daily rate (3)				$	203			$	208			$	206			$	218
Occupancy per available room					92	%			99	%			93	%			99	%
Revenue per available room (4)				$	187			$	206			$	192			$	215
City of Dreams
Average daily rate (3)				$	200			$	198			$	198			$	202
Occupancy per available room					94	%			99	%			94	%			99	%
Revenue per available room (4)				$	189			$	196			$	187			$	200
Studio City
Average daily rate (3)				$	133				N/A			$	135				N/A
Occupancy per available room					96	%			N/A				96	%			N/A
Revenue per available room (4)				$	127				N/A			$	129				N/A
City of Dreams Manila
Average daily rate (3)				$	167			$	215			$	162			$	219
Occupancy per available room					91	%			89	%			88	%			83	%
Revenue per available room (4)				$	152			$	191			$	143			$	183
Other Information:
Altira Macau
Average number of table games					126				123				127				122
Average number of gaming machines					62				56				62				58
Table games win per unit per day (5)				$	11,918			$	17,915			$	12,374			$	18,682
Gaming machines win per unit per day (6)				$	84			$	89			$	88				85
City of Dreams
Average number of table games					498				496				499				501
Average number of gaming machines					1,053				1,082				1,062				1,173
Table games win per unit per day (5)				$	14,667			$	15,192			$	15,158			$	17,117
Gaming machines win per unit per day (6)				$	338			$	460			$	351			$	417
Studio City
Average number of table games					245				N/A				246				N/A
Average number of gaming machines					1,073				N/A				1,093				N/A
Table games win per unit per day (5)				$	6,059				N/A			$	5,809				N/A
Gaming machines win per unit per day (6)				$	181				N/A			$	164				N/A
City of Dreams Manila
Average number of table games					268				258				273				247
Average number of gaming machines					1,626				1,713				1,641				1,729
Table games win per unit per day (5)				$	4,006			$	1,773			$	3,473			$	1,532
Gaming machines win per unit per day (6)				$	202			$	183			$	192			$	164
(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