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 fourth quarter and full year ended December 31, 2016.

Net revenue for the fourth quarter of 2016 was US$1,192.9 million, representing an increase of approximately 13% from US$1,058.0 million for the comparable period in 2015. The increase in net revenue was primarily attributable to the net revenue generated by a fully-operating 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 in Macau and Altira Macau.

On a U.S. GAAP basis, operating income for the fourth quarter of 2016 was US$116.0 million, compared with operating loss of US$17.8 million in the fourth quarter of 2015.

Adjusted property EBITDA(1) was US$304.3 million for the fourth quarter of 2016, as compared to Adjusted property EBITDA of US$236.4 million in the fourth quarter of 2015, representing an increase of 29%. This year-on-year improvement in Adjusted property EBITDA was mainly attributable to the contribution from a fully-operating Studio City and increase in casino revenues at City of Dreams Manila, partially offset by lower contribution from Altira Macau.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the fourth quarter of 2016 was US$43.3 million, or US$0.09 per ADS, compared with a net loss attributable to Melco Crown Entertainment of US$12.3 million, or US$0.02 per ADS, in the fourth quarter of 2015. The net loss attributable to noncontrolling interests during the fourth quarter of 2016 of US$26.8 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 strong set of results in the fourth quarter of 2016, highlighted by record mass table gross gaming revenues in Macau and a 29% year-on-year increase in group-wide Adjusted property EBITDA.

“Our Flagship property in Macau, City of Dreams, generated Adjusted property EBITDA of approximately US$190 million, an increase of over 10% compared to the prior quarter, despite an increase in supply in Macau, highlighting the property’s ongoing position as a leader in the premium gaming segments in Macau.

“Studio City’s mass table games revenues continued to expand, increasing almost 10% from the prior quarter which, combined with the rolling chip operations that began in November 2016, delivered a strong improvement in underlying earnings. While the recently opened rolling chip operations broaden the property’s gaming proposition, Studio City’s core focus remains on its mass market offerings which are ideally aligned to the demand landscape in Macau.

“Macau continues to show signs of a broader recovery, with January 2017 representing the sixth month in a row of year-on-year increases in Macau’s gross gaming revenues. We believe that Macau’s long term success relies on its ability to cater to the rapidly evolving demands of leisure and entertainment seekers from around the region, most notably from Mainland China. Our world-class portfolio of properties in Macau gives us a unique ability to cater to a wider spectrum of gaming customers, including mainstream mass, premium mass, junket and direct VIP customers, while also offering tourists a vast non-gaming and entertainment proposition which is unrivalled in Macau.

“City of Dreams Manila, our integrated resort in the fast growing gaming market of the Philippines, continues to increase its gaming market share by delivering another strong quarter fueled by revenue growth across all gaming segments. The improvement in gaming operations together with cost efficiencies identified through our company-wide focus on managing reinvestment and other operating expenses, resulted in our Adjusted property EBITDA in Manila increasing by 224% on a year-on-year basis.

“As previously announced, we have changed our ordinary dividend policy to one targeting a quarterly cash dividend payment of US$0.03 per ordinary share (equivalent to US$0.09 per American depositary share (“ADS”), each representing three ordinary shares) of the Company, providing a larger, stable and more predictable ordinary dividend payout. In addition, we recently announced and paid an approximately US$650 million special dividend to shareholders, highlighting our continued commitment to returning surplus capital to shareholders, while retaining significant financial flexibility to pursue other value-accretive development opportunities.

“Our Company has undergone an exciting transformation over the past several months. Melco International Development Limited, a company of which I am Chairman and Chief Executive Officer, has completed the acquisition of an additional 13.4% of the shares of Melco Crown Entertainment earlier today, increasing its ownership in the Company to approximately 51.3%. This transaction highlights the steadfast confidence and commitment I have in the markets where we operate, the development and expansion opportunities that are available to our Company, the positioning of our world-class properties and, most importantly, our tremendous employees and current management team that continue to deliver a level of service and experience which underpins our Company’s success.”

City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2016, net revenue at City of Dreams was US$661.1 million compared to US$669.0 million in the fourth quarter of 2015. City of Dreams generated Adjusted EBITDA of US$188.7 million in the fourth quarter of 2016, representing a decrease of 2% compared to US$192.2 million in the comparable period of 2015. The decline in Adjusted EBITDA was primarily a result of lower mass market table games revenues and rolling chip revenues, partially offset by an increase in non-gaming revenue mainly driven by the opening of the new retail precinct in 2016.

Rolling chip volume totaled US$11.1 billion for the fourth quarter of 2016 versus US$10.2 billion in the fourth quarter of 2015. The rolling chip win rate was 2.6% in the fourth quarter of 2016 versus 2.8% in the fourth quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop decreased to US$1,109.9 million compared with US$1,124.9 million in the fourth quarter of 2015. The mass market table games hold percentage was 36.3% in the fourth quarter of 2016 compared to 37.1% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2016 was US$1,051.8 million, compared with US$1,071.1 million in the fourth quarter of 2015. The gaming machine win rate was 3.9% in the fourth quarter of 2016 versus 3.4% in the fourth quarter of 2015.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2016 was US$79.2 million, compared with US$67.6 million in the fourth quarter of 2015.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2016, net revenue at Altira Macau was US$103.3 million compared to US$142.0 million in the fourth quarter of 2015. Altira Macau generated Adjusted EBITDA of US$3.3 million in the fourth quarter of 2016 compared with Adjusted EBITDA of US$9.7 million in the fourth quarter of 2015. The year-on-year decrease in Adjusted EBITDA was primarily a result of lower rolling chip revenues.

Rolling chip volume totaled US$4.4 billion in the fourth quarter of 2016 versus US$4.8 billion in the fourth quarter of 2015. The rolling chip win rate was 2.7% in the fourth quarter of 2016 versus 3.3% in the fourth quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$112.8 million in the fourth quarter of 2016, a decrease from US$133.4 million generated in the comparable period in 2015. The mass market table games hold percentage was 19.2% in the fourth quarter of 2016 compared with 19.4% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2016 was US$7.9 million, compared with US$7.7 million in the fourth quarter of 2015. The gaming machine win rate was 6.8% in the fourth quarter of 2016 versus 5.8% in the fourth quarter of 2015.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2016 was US$7.1 million compared with US$7.6 million in the fourth quarter of 2015.

Mocha Clubs Fourth Quarter Results

Net revenue from Mocha Clubs totaled US$28.9 million in the fourth quarter of 2016 as compared to US$32.0 million in the fourth quarter of 2015. Mocha Clubs generated US$5.4 million of Adjusted EBITDA in the fourth quarter of 2016 compared with US$6.4 million in the same period in 2015.

Gaming machine handle for the fourth quarter of 2016 was US$614.4 million, compared with US$669.6 million in the fourth quarter of 2015. The gaming machine win rate was 4.6% in the fourth quarter of 2016 versus 4.7% in the fourth quarter of 2015.

Studio City Fourth Quarter Results

For the quarter ended December 31, 2016, net revenue at Studio City was US$246.2 million compared to US$123.2 million in the fourth quarter of 2015. Studio City generated Adjusted EBITDA of US$56.7 million in the fourth quarter of 2016 compared with Adjusted EBITDA of US$12.6 million in the fourth quarter of 2015. The year-on-year improvement in Adjusted EBITDA was primarily a result of having full operations in the fourth quarter of 2016, since Studio City started operations on October 27, 2015 and began rolling chip operations in November 2016.

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

Mass market table games drop increased to US$683.2 million compared with US$365.3 million in the fourth quarter of 2015. The mass market table games hold percentage was 26.9% in the fourth quarter of 2016 compared to 22.4% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2016 was US$519.3 million, compared with US$264.9 million in the fourth quarter of 2015. The gaming machine win rate was 3.9% in the fourth quarter of 2016 versus 4.9% in the fourth quarter of 2015.

Total non-gaming revenue at Studio City in the fourth quarter of 2016 was US$53.3 million, compared with US$37.8 million in the fourth quarter of 2015.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2016, net revenue at City of Dreams Manila was US$144.7 million compared to US$80.9 million in the fourth quarter of 2015. City of Dreams Manila generated Adjusted EBITDA of US$50.2 million in the fourth quarter of 2016 compared to US$15.5 million in the comparable period of 2015. The year-on-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues.

Rolling chip volume totaled US$2.1 billion for the fourth quarter of 2016 versus US$1.3 billion in the fourth quarter of 2015. The rolling chip win rate was 3.5% in the fourth quarter of 2016 versus 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 increased to US$149.0 million for the fourth quarter of 2016, compared with US$106.3 million in the fourth quarter of 2015. The mass market table games hold percentage was 27.8% in the fourth quarter of 2016 compared to 27.5% in the fourth quarter of 2015.

Gaming machine handle for the fourth quarter of 2016 was US$671.3 million, compared with US$420.9 million in the fourth quarter of 2015. The gaming machine win rate was 5.9% in the fourth quarter of 2016 versus 6.2% in the fourth quarter of 2015.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2016 was US$28.1 million, compared with US$25.0 million in the fourth quarter of 2015.

Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2016 were US$95.3 million, which mainly included interest expenses, net of capitalized interest, of US$56.2 million, loss on extinguishment of debt of US$17.4 million, other finance costs of US$13.3 million and costs associated with debt modification of US$8.1 million. We recorded US$7.7 million of capitalized interest during the fourth quarter of 2016, primarily relating to the development of Morpheus at City of Dreams.

The year-on-year increase of US$35.4 million in net non-operating expenses was primarily a result of loss on extinguishment of debt arising from the refinancing of the Studio City project facility and lower capitalized interest in the current quarter.

Depreciation and amortization costs of US$137.5 million were recorded in the fourth 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 December 31, 2016 totaled US$2.0 billion, including US$210.8 million of bank deposits with original maturities over three months and US$39.3 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the fourth quarter of 2016 was US$3.7 billion.

Capital expenditures for the fourth quarter of 2016 were US$78.9 million, which predominantly related to various projects at City of Dreams, including Morpheus.

Full Year Results

For the year ended December 31, 2016, Melco Crown Entertainment reported net revenue of US$4.5 billion versus US$4.0 billion in the prior year. The year-on-year increase in net revenue was primarily attributable to the net revenue generated by a fully-operating Studio City and the increase in casino revenues at City of Dreams Manila, partially offset by lower casino revenues at City of Dreams in Macau and Altira Macau.

On a U.S. GAAP basis, operating income for 2016 was US$363.1 million, compared with operating income of US$98.4 million for 2015.

Adjusted property EBITDA for the year ended December 31, 2016 was US$1,087.5 million, as compared with Adjusted property EBITDA of US$932.0 million in 2015. The 17% year-on-year improvement in Adjusted property EBITDA was mainly attributable to the contribution from a fully-operating Studio City and increase in casino revenues at City of Dreams Manila, partially offset by lower contribution from City of Dreams in Macau and Altira Macau. 

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for 2016 was US$175.9 million, or US$0.35 per ADS, compared with a net income attributable to Melco Crown Entertainment of US$105.7 million, or US$0.20 per ADS, for 2015. The net loss attributable to noncontrolling interests for 2016 of US$109.0 million was related to Studio City and City of Dream Manila.

Shareholders and potential investors in 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, 2016. Shareholders and potential investors of the Company are advised to exercise caution in dealing in the securities of the Company.

Dividend Declaration

On February 16, 2017, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.03 per share (equivalent to US$0.09 per ADS) for the fourth quarter of 2016 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about Wednesday, March 15, 2017 to our shareholders whose names appear on the register of members of the Company at the close of business on Monday, February 27, 2017, being the record date for determination of entitlements to the Quarterly Dividend.

Conference Call Information

Melco Crown Entertainment will hold a conference call to discuss its fourth quarter 2016 financial results on Thursday, February 16, 2017 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		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		69738317

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

Non-GAAP Financial Measures

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

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

(2) “Adjusted net  income” is net income before net gain on disposal of property and equipment to Belle Corporation, pre-opening costs,  development costs, property charges and others, loss on extinguishment of debt and costs associated with debt modification, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment per share (“EPS”) are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Melco 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, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited and is substantially owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of 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 enquiries, please contact:

Maggie MaChief Corporate Communications and Corporate Affairs OfficerTel: +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								Year Ended
	December 31,								December 31,
	2016				2015				2016				2015
	(Unaudited)				(Unaudited)				(Unaudited)				(Audited)
OPERATING REVENUES
Casino	$	1,099,844			$	981,121			$	4,176,667			$	3,767,291
Rooms		69,338				61,136				265,289				199,727
Food and beverage		47,904				37,635				177,515				126,848
Entertainment, retail and others		51,893				41,480				197,011				117,543
Gross revenues		1,268,979				1,121,372				4,816,482				4,211,409
Less: promotional allowances		(76,101	)			(63,342	)			(297,086	)			(236,609	)
Net revenues		1,192,878				1,058,030				4,519,396				3,974,800
OPERATING COSTS AND EXPENSES
Casino		(750,898	)			(692,606	)			(2,904,922	)			(2,654,760	)
Rooms		(8,260	)			(8,078	)			(33,218	)			(23,419	)
Food and beverage		(18,212	)			(19,271	)			(65,781	)			(43,295	)
Entertainment, retail and others		(27,326	)			(25,978	)			(109,817	)			(77,506	)
General and administrative		(120,510	)			(110,141	)			(446,591	)			(383,874	)
Payments to the Philippine Parties		(9,928	)			(4,553	)			(34,403	)			(16,547	)
Pre-opening costs		(1,671	)			(52,501	)			(3,883	)			(168,172	)
Development costs		(88	)			(53	)			(95	)			(110	)
Amortization of gaming subconcession		(14,309	)			(14,309	)			(57,237	)			(57,237	)
Amortization of land use rights		(5,704	)			(5,703	)			(22,816	)			(54,056	)
Depreciation and amortization		(117,515	)			(109,941	)			(472,219	)			(359,341	)
Property charges and others		(2,489	)			(32,729	)			(5,298	)			(38,068	)
Total operating costs and expenses		(1,076,910	)			(1,075,863	)			(4,156,280	)			(3,876,385	)
OPERATING INCOME (LOSS)		115,968				(17,833	)			363,116				98,415
NON-OPERATING INCOME (EXPENSES)
Interest income		1,738				3,129				5,951				13,900
Interest expenses, net of capitalized interest		(56,170	)			(44,116	)			(223,567	)			(118,330	)
Other finance costs		(13,344	)			(14,000	)			(55,796	)			(45,839	)
Foreign exchange (loss) gain, net		(2,919	)			1,381				7,356				(2,156	)
Other income, net		936				735				3,572				2,317
Loss on extinguishment of debt		(17,435	)			-				(17,435	)			(481	)
Costs associated with debt modification		(8,101	)			(7,011	)			(8,101	)			(7,603	)
Total non-operating expenses, net		(95,295	)			(59,882	)			(288,020	)			(158,192	)
INCOME (LOSS) BEFORE INCOME TAX		20,673				(77,715	)			75,096				(59,777	)
INCOME TAX EXPENSE		(4,162	)			(266	)			(8,178	)			(1,031	)
NET INCOME (LOSS)		16,511				(77,981	)			66,918				(60,808	)
NET LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS		26,765				65,642				108,988				166,555
NET INCOME (LOSS) ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED	$	43,276			$	(12,339	)		$	175,906			$	105,747
NET INCOME (LOSS) ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:
Basic	$	0.030			$	(0.008	)		$	0.116			$	0.065
Diluted	$	0.029			$	(0.008	)		$	0.115			$	0.065
NET INCOME (LOSS) ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER ADS:
Basic	$	0.089			$	(0.023	)		$	0.348			$	0.196
Diluted	$	0.088			$	(0.023	)		$	0.346			$	0.195
WEIGHTED AVERAGE SHARES USED IN
NET INCOME (LOSS) ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic		1,463,660,679				1,617,943,012				1,516,714,277				1,617,263,041
Diluted		1,473,600,609				1,617,943,012				1,525,284,272				1,627,108,770

Melco Crown Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
	December 31,				December 31,
	2016				2015
	(Unaudited)				(Audited)(1)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,702,310			$	1,611,026
Bank deposits with original maturities over three months		210,840				724,736
Restricted cash		39,152				317,118
Accounts receivable, net		225,438				271,627
Amounts due from affiliated companies		1,103				1,175
Deferred tax assets		-				19
Income tax receivable		52				62
Inventories		32,600				33,074
Prepaid expenses and other current assets		68,059				61,324
Total current assets		2,279,554				3,020,161
PROPERTY AND EQUIPMENT, NET		5,655,823				5,760,229
GAMING SUBCONCESSION, NET		313,320				370,557
INTANGIBLE ASSETS		4,220				4,220
GOODWILL		81,915				81,915
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS		194,911				192,012
RESTRICTED CASH		130				-
DEFERRED TAX ASSETS		152				83
LAND USE RIGHTS, NET		810,316				833,132
TOTAL ASSETS	$	9,340,341			$	10,262,309
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	17,434			$	15,588
Accrued expenses and other current liabilities		1,369,943				1,056,850
Income tax payable		7,422				3,487
Capital lease obligations, due within one year		30,730				29,792
Current portion of long-term debt, net		50,583				102,836
Amounts due to affiliated companies		3,028				2,464
Total current liabilities		1,479,140				1,211,017
LONG-TERM DEBT, NET		3,669,692				3,712,396
OTHER LONG-TERM LIABILITIES		49,287				80,962
DEFERRED TAX LIABILITIES		56,451				55,598
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR		262,357				270,477
SHAREHOLDERS' EQUITY
Ordinary shares		14,759				16,309
Treasury shares		(108	)			(275	)
Additional paid-in capital		2,783,062				3,075,459
Accumulated other comprehensive losses		(24,768	)			(21,934	)
Retained earnings		570,925				1,270,074
Total Melco Crown Entertainment Limited shareholders’ equity		3,343,870				4,339,633
Noncontrolling interests		479,544				592,226
Total equity		3,823,414				4,931,859
TOTAL LIABILITIES AND EQUITY	$	9,340,341			$	10,262,309
(1) The condensed consolidated balance sheets as of December 31, 2015 have been adjusted for the retrospective application of the authoritative guidance on the presentation of debt issuance costs which was adopted by the Company in 2016. The consolidated financial statements as of December 31, 2014 and 2015 and for the years ended December 31, 2013, 2014 and 2015, retrospectively adjusted to reflect retrospective adoption of such new guidance was included in the form 6-K furnished to the SEC on December 14, 2016.

Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Net Income (Loss) 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,
	2016				2015				2016				2015
	(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Net Income (Loss) Attributable to
Melco Crown Entertainment Limited	$	43,276			$	(12,339	)		$	175,906			$	105,747
Net Gain on Disposal of Property and Equipment
to Belle Corporation		-				-				(8,134	)			-
Pre-opening Costs		1,671				52,501				3,883				168,172
Development Costs		88				53				95				110
Property Charges and Others		2,489				32,729				5,298				38,068
Loss on Extinguishment of Debt		17,435				-				17,435				481
Costs Associated with Debt Modification		8,101				7,011				8,101				7,603
Income Tax Impact on Adjustments		392				(4	)			378				(254	)
Noncontrolling Interests Impact on Adjustments		(10,291	)			(33,269	)			(9,947	)			(82,143	)
Adjusted Net Income Attributable to
Melco Crown Entertainment Limited	$	63,161			$	46,682			$	193,015			$	237,784
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT
LIMITED PER SHARE:
Basic	$	0.043			$	0.029			$	0.127			$	0.147
Diluted	$	0.043			$	0.029			$	0.127			$	0.146
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT
LIMITED PER ADS:
Basic	$	0.129			$	0.087			$	0.382			$	0.441
Diluted	$	0.129			$	0.086			$	0.380			$	0.438
WEIGHTED AVERAGE SHARES USED IN
ADJUSTED NET INCOME ATTRIBUTABLE
TO MELCO CROWN ENTERTAINMENT
LIMITED PER SHARE CALCULATION:
Basic		1,463,660,679				1,617,943,012				1,516,714,277				1,617,263,041
Diluted		1,473,600,609				1,626,677,872				1,525,284,272				1,627,108,770

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, 2016
	AltiraMacau				Mocha			City ofDreams			StudioCity				City ofDreamsManila				Corporateand Others				Total
	(Unaudited)				(Unaudited)			(Unaudited)			(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Operating (Loss) Income	$	(2,410	)		$	2,593		$	139,279		$	9,373			$	19,917			$	(52,784	)		$	115,968
Payments to the Philippine Parties		-				-			-			-				9,928				-				9,928
Land Rent to Belle Corporation		-				-			-			-				803				-				803
Pre-opening Costs		-				-			1,047			624				-				-				1,671
Development Costs		-				-			-			-				-				88				88
Depreciation and Amortization		5,652				2,797			44,505			45,646				21,443				17,485				137,528
Share-based Compensation		45				45			601			80				117				2,851				3,739
Property Charges and Others		-				-			3,245			931				(2,008	)			321				2,489
Adjusted EBITDA		3,287				5,435			188,677			56,654				50,200				(32,039	)			272,214
Corporate and Others Expenses		-				-			-			-				-				32,039				32,039
Adjusted Property EBITDA	$	3,287			$	5,435		$	188,677		$	56,654			$	50,200			$	-			$	304,253
	Three Months Ended December 31, 2015
	AltiraMacau				Mocha			City ofDreams			StudioCity				City ofDreamsManila				Corporateand 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

Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to
Net Income (Loss) Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars)
							Three Months Ended
							December 31,
							2016				2015
							(Unaudited)				(Unaudited)
Adjusted Property EBITDA							$	304,253			$	236,426
Corporate and Others Expenses								(32,039	)			(28,425	)
Adjusted EBITDA								272,214				208,001
Payments to the Philippine Parties								(9,928	)			(4,553	)
Land Rent to Belle Corporation								(803	)			(842	)
Pre-opening Costs								(1,671	)			(52,501	)
Development Costs								(88	)			(53	)
Depreciation and Amortization								(137,528	)			(129,953	)
Share-based Compensation								(3,739	)			(5,203	)
Property Charges and Others								(2,489	)			(32,729	)
Interest and Other Non-Operating Expenses, Net								(95,295	)			(59,882	)
Income Tax Expense								(4,162	)			(266	)
Net Income (Loss)								16,511				(77,981	)
Net Loss Attributable to Noncontrolling Interests								26,765				65,642
Net Income (Loss) Attributable to Melco Crown Entertainment Limited							$	43,276			$	(12,339	)

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, 2016
	AltiraMacau				Mocha			City ofDreams			StudioCity				City of Dreams Manila				Corporateand Others				Total
	(Unaudited)				(Unaudited)			(Unaudited)			(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Operating (Loss) Income	$	(18,091	)		$	11,694		$	559,470		$	(29,099	)		$	38,705			$	(199,563	)		$	363,116
Payments to the Philippine Parties		-				-			-			-				34,403				-				34,403
Land Rent to Belle Corporation		-				-			-			-				3,327				-				3,327
Net Gain on Disposal of Property and Equipment
to Belle Corporation		-				-			-			-				(8,134	)			-				(8,134	)
Pre-opening Costs		-				-			1,355			2,528				-				-				3,883
Development Costs		-				-			-			-				-				95				95
Depreciation and Amortization		22,950				11,921			175,676			179,905				91,389				70,431				552,272
Share-based Compensation		60				174			2,354			826				2,087				12,986				18,487
Property Charges and Others		197				-			3,436			1,825				(1,441	)			1,281				5,298
Adjusted EBITDA		5,116				23,789			742,291			155,985				160,336				(114,770	)			972,747
Corporate and Others Expenses		-				-			-			-				-				114,770				114,770
Adjusted Property EBITDA	$	5,116			$	23,789		$	742,291		$	155,985			$	160,336			$	-			$	1,087,517
	Year Ended December 31, 2015
	AltiraMacau				Mocha			City ofDreams			StudioCity				City ofDreamsManila				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

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,
							2016				2015
							(Unaudited)				(Unaudited)
Adjusted Property EBITDA							$	1,087,517			$	931,984
Corporate and Others Expenses								(114,770	)			(115,735	)
Adjusted EBITDA								972,747				816,249
Payments to the Philippine Parties								(34,403	)			(16,547	)
Land Rent to Belle Corporation								(3,327	)			(3,476	)
Net Gain on Disposal of Property and Equipment
to Belle Corporation								8,134				-
Pre-opening Costs								(3,883	)			(168,172	)
Development Costs								(95	)			(110	)
Depreciation and Amortization								(552,272	)			(470,634	)
Share-based Compensation								(18,487	)			(20,827	)
Property Charges and Others								(5,298	)			(38,068	)
Interest and Other Non-Operating Expenses, Net								(288,020	)			(158,192	)
Income Tax Expense								(8,178	)			(1,031	)
Net Income (Loss)								66,918				(60,808	)
Net Loss Attributable to Noncontrolling Interests								108,988				166,555
Net Income Attributable to Melco Crown Entertainment Limited							$	175,906			$	105,747

	Melco Crown Entertainment Limited and Subsidiaries
	Supplemental Data Schedule
						Three Months Ended								Year Ended
						December 31,								December 31,
							2016				2015				2016				2015
Room Statistics:
	Altira Macau
		Average daily rate (3)				$	210			$	213			$	205			$	212
		Occupancy per available room					94	%			97	%			94	%			98	%
		Revenue per available room (4)				$	197			$	206			$	193			$	209
	City of Dreams
		Average daily rate (3)				$	205			$	205			$	200			$	201
		Occupancy per available room					98	%			97	%			96	%			99	%
		Revenue per available room (4)				$	199			$	200			$	192			$	198
	Studio City
		Average daily rate (3)				$	138			$	136			$	136			$	136
		Occupancy per available room					99	%			98	%			98	%			98	%
		Revenue per available room (4)				$	137			$	133			$	133			$	133
	City of Dreams Manila
		Average daily rate (3)				$	156			$	168			$	159			$	191
		Occupancy per available room					96	%			88	%			91	%			86	%
		Revenue per available room (4)				$	149			$	148			$	145			$	164
Other Information:
	Altira Macau
		Average number of table games					114				131				121				126
		Average number of gaming machines					62				55				62				56
		Table games win per unit per day (5)				$	13,447			$	15,374			$	13,448			$	17,079
		Gaming machines win per unit per day (6)				$	94			$	89			$	93			$	98
	City of Dreams
		Average number of table games					488				494				494				497
		Average number of gaming machines					956				1,090				1,029				1,146
		Table games win per unit per day (5)				$	15,319			$	15,435			$	15,027			$	16,176
		Gaming machines win per unit per day (6)				$	466			$	363			$	381			$	404
	Studio City
		Average number of table games					266				196				251				196
		Average number of gaming machines					1,103				1,165				1,097				1,165
		Table games win per unit per day (5)				$	8,282			$	6,326			$	6,871			$	6,326
		Gaming machines win per unit per day (6)				$	200			$	168			$	189			$	168
	City of Dreams Manila
		Average number of table games					272				276				270				263
		Average number of gaming machines					1,686				1,660				1,656				1,709
		Table games win per unit per day (5)				$	4,576			$	2,268			$	3,939			$	2,033
		Gaming machines win per unit per day (6)				$	255			$	170			$	217			$	170
		(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