UNCASVILLE, Conn., July 29, 2015 /PRNewswire/ -- The Mohegan Tribal Gaming Authority, or the Authority, the owner and operator of Mohegan Sun in Uncasville, Connecticut, and Mohegan Sun Pocono in Wilkes-Barre, Pennsylvania, announced today the operating results for its third fiscal quarter ended June 30, 2015.

"Our third quarter operating results speak for themselves and reflect a sustained and tremendous effort by all of our employees," said Robert J. Soper, President of the Authority. "Our financial position is strong as our total leverage has declined to its lowest level since March 2008, and we anticipate that this trend will continue given the recent expiration of relinquishment payments and our ongoing proactive cost saving initiatives. At the same time, we have many exciting projects coming on line over the next few years, including the Cowlitz casino and the new Earth Hotel and other non-gaming master planning projects in Connecticut. Furthermore, we continue to pursue diversification efforts both domestically and internationally."

Consolidated operating results for the third quarter ended June 30, 2015 (unaudited):

  • Net revenues of $325.0 million, relatively flat compared to the third quarter of fiscal 2014
  • Gaming revenues of $284.7 million, relatively flat compared to the third quarter of fiscal 2014
  • Gross slot revenues of $203.7 million, a 1.9% increase over the third quarter of fiscal 2014
  • Table game revenues of $79.3 million, a 3.2% decrease from the third quarter of fiscal 2014
  • Non-gaming revenues of $65.5 million, a 2.1% decrease from the third quarter of fiscal 2014
  • Adjusted EBITDA, a non-GAAP measure described below, of $81.1 million, a 17.3% increase over the third quarter of fiscal 2014
  • Adjusted EBITDA margin of 24.9%, a 370 basis point increase over the third quarter of fiscal 2014
  • Income from operations of $61.5 million, a 25.6% increase over the third quarter of fiscal 2014
  • Net income attributable to the Authority of $28.1 million, a 102.5% increase over the third quarter of fiscal 2014

The increases in Adjusted EBITDA, income from operations and net income attributable to the Authority primarily resulted from improved slot results at Mohegan Sun and table game results at Mohegan Sun Pocono, combined with an overall reduction in operating and corporate costs and expenses.

 

Mohegan Sun










Operating results (in thousands, unaudited): 









For the Three Months Ended 

June 30,

June 30,


Percentage

2015

2014

Variance

 Variance








Adjusted EBITDA

$     70,657

$     63,746

$     6,911

10.8%

Income from operations

$     54,557

$     47,088

$     7,469

15.9%

Operating costs and expenses

$   192,283

$   201,778

$   (9,495)

(4.7%)

Net revenues

$   246,840

$   248,866

$   (2,026)

(0.8%)

Gaming revenues

$   213,199

$   213,600

$      (401)

(0.2%)

Non-gaming revenues

$     53,751

$     55,186

$   (1,435)

(2.6%)








 

The growth in Adjusted EBITDA and income from operations primarily resulted from improved slot results and lower operating costs and expenses. Slot revenues benefited from higher year over year slot volumes and hold percentage, while the reduction in operating costs and expenses reflected various strategic operational and marketing changes designed to enhance operating efficiency and improve profitability resulting in reduced payroll costs and casino marketing and promotional expenses. As a result, Adjusted EBITDA margin increased 300 basis points to 28.6% for the quarter ended June 30, 2015 from 25.6% in the third quarter of fiscal 2014. These results were partially offset by lower table game and entertainment revenues. The decline in table game revenues was primarily driven by lower year over year hold percentage.

 

Selected gaming data (in thousands, except where noted, unaudited):









For the Three Months Ended 

June 30,

June 30,


Percentage

2015

2014

Variance

 Variance








Slots:






  Handle

$  1,786,356

$  1,783,186

$      3,170

0.2%

  Gross revenues

$     147,906

$     143,698

$      4,208

2.9%

  Net revenues

$     142,178

$     138,304

$      3,874

2.8%

  Free promotional slot plays (1)

$       14,463

$       18,279

$    (3,816)

(20.9%)

  Weighted average number of machines (in units)

5,249

5,448

(199)

(3.7%)

  Hold percentage (gross)

8.3%

8.1%

0.2%

2.5%

  Win per unit per day (gross) (in dollars)

$            310

$            290

$           20

6.9%








Table games:






  Drop

$     432,156

$     437,992

$    (5,836)

(1.3%)

  Revenues

$       67,520

$       71,384

$    (3,864)

(5.4%)

  Weighted average number of games (in units)

283

292

(9)

(3.1%)

  Hold percentage (2)

15.6%

16.3%

(0.7%)

(4.3%)

  Win per unit per day (in dollars)

$         2,625

$         2,685

$         (60)

(2.2%)








Poker:






  Revenues

$         2,336

$         2,262

$           74

3.3%

  Weighted average number of tables (in units)

42

42

-

-

  Revenue per unit per day (in dollars)

$            611

$            592

$           19

3.2%

_______________________________________






(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.

(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.








 

Non-gaming data (in thousands, except where noted, unaudited):










For the Three Months Ended 

June 30,

June 30,


Percentage

2015

2014

Variance

 Variance








Food and beverage:






  Revenues

$  15,653

$  15,799

$     (146)

(0.9%)

  Meals served

743

767

(24)

(3.1%)

  Average price per meal served (in dollars)

$    15.95

$    15.75

$      0.20

1.3%








Hotel:






  Revenues

$  11,222

$  10,855

$      367

3.4%

  Rooms occupied

105

104

1

1.0%

  Occupancy rate

97.8%

97.8%

-

-

  Average daily room rate (in dollars)

$       101

$         97

$          4

4.1%

  Revenue per available room (in dollars)

$         98

$         95

$          3

3.2%








Retail, entertainment and other:






  Revenues

$  26,876

$  28,532

$  (1,656)

(5.8%)

  Arena events (in events)

31

29

2

6.9%

  Arena tickets

173

178

(5)

(2.8%)

  Average price per Arena ticket (in dollars)

$    58.68

$    55.28

$     3.40

6.2%








 

Mohegan Sun Pocono










 Operating results (in thousands, unaudited):









For the Three Months Ended 

June 30,

June 30,


Percentage

2015

2014

Variance

 Variance








Adjusted EBITDA

$  15,810

$  13,012

$    2,798

21.5%

Income from operations

$  12,842

$    9,936

$    2,906

29.2%

Operating costs and expenses

$  65,090

$  67,258

$  (2,168)

(3.2%)

Net revenues

$  77,932

$  77,194

$       738

1.0%

Gaming revenues

$  71,514

$  71,201

$       313

0.4%

Non-gaming revenues

$  11,508

$  11,487

$         21

0.2%








 

The increases in Adjusted EBITDA and income from operations primarily resulted from higher table game revenues and reduced operating costs and expenses. Table game revenues benefited from increased volumes driven by the addition of our hotel and convention center and higher year over year hold percentage. The reduction in operating costs and expenses resulted from various strategic operational and marketing changes designed to enhance operating efficiency and improve profitability. As a result, Adjusted EBITDA margin increased 340 basis points to 20.3% for the quarter ended June 30, 2015 from 16.9% in the third quarter of fiscal 2014.   

 

Selected gaming data (in thousands, except where noted, unaudited):   












For the Three Months Ended 

June 30,

June 30,


Percentage

2015

2014

Variance

 Variance








Slots:






  Handle

$  673,523

$   693,303

$  (19,780)

(2.9%)

  Gross revenues

$    55,781

$     56,235

$       (454)

(0.8%)

  Net revenues

$    55,728

$     56,237

$       (509)

(0.9%)

  Free promotional slot plays (1)

$    11,909

$     13,502

$    (1,593)

(11.8%)

  Weighted average number of machines (in units)

2,330

2,330

-

-

  Hold percentage (gross)

8.3%

8.1%

0.2%

2.5%

  Win per unit per day (gross) (in dollars)

$         263

$          265

$           (2)

(0.8%)








Table games:






  Drop

$    56,668

$     55,751

$         917

1.6%

  Revenues

$    11,758

$     10,514

$      1,244

11.8%

  Weighted average number of games (in units)

73

69

4

5.8%

  Hold percentage (2)

20.7%

18.9%

1.8%

9.5%

  Win per unit per day (in dollars)

$      1,768

$       1,675

$           93

5.6%








Poker:






  Revenues

$         738

$          870

$       (132)

(15.2%)

  Weighted average number of tables (in units)

18

18

-

-

  Revenue per unit per day (in dollars)

$         451

$          531

$         (80)

(15.1%)

______________________________________






(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.

(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.








 

Non-gaming revenues (in thousands, except where noted, unaudited):











For the Three Months Ended 

June 30,

June 30,


Percentage

2015

2014

Variance

 Variance








Food and beverage:






  Revenues

$   7,368

$   7,474

$    (106)

(1.4%)

  Meals served

192

207

(15)

(7.2%)

  Average price per meal served (in dollars)

$   17.27

$   16.54

$    0.73

4.4%








Hotel:






  Revenues

$   1,478

$   1,305

$     173

13.3%

  Rooms occupied

21

20

1

5.0%

  Occupancy rate

96.1%

94.9%

1.2%

1.3%

  Average daily room rate (in dollars)

$        66

$        62

$         4

6.5%

  Revenue per available room (in dollars)

$        63

$        58

$         5

8.6%








Retail, entertainment and other:  






  Revenues

$   2,662

$   2,708

$      (46)

(1.7%)








  

Corporate














Operating results (in thousands, unaudited):












For the Three Months Ended 

June 30,

June 30,


Percentage

2015

2014

Variance

 Variance








Adjusted EBITDA

$  (5,417)

$  (7,640)

$    2,223

29.1%

Loss from operations

$  (5,900)

$  (8,042)

$  (2,142)

(26.6%)

Operating costs and expenses

$    7,440

$    9,591

$  (2,151)

(22.4%)

Net revenues

$    1,540

$    1,549

$         (9)

(0.6%)








 

The decrease in loss from operations was primarily attributable to the decline in operating costs and expenses which resulted from reduced expenditures associated with our pursuit of a Massachusetts casino license, partially offset by additional expenditures related to our pursuit of a casino license in South Korea.

 

Mohegan Tribal Gaming Authority Property Information












Adjusted EBITDA

Income (Loss) from Operations

Net Revenues

(in thousands, unaudited)

For the Three Months Ended

For the Three Months Ended

      For the Three Months Ended



June 30,

June 30,

June 30,

June 30,

June 30,

June 30,



2015

2014

2015

2014

2015

2014

Mohegan Sun

$    70,657

$   63,746

$    54,557

$    47,088

$  246,840

$  248,866

Mohegan Sun Pocono

15,810

13,012

12,842

9,936

77,932

77,194

Corporate

(5,417)

(7,640)

(5,900)

(8,042)

1,540

1,549

Inter-segment revenues

-

-

-

-

(1,273)

(1,273)














Total

$    81,050

$   69,118

$    61,499

$    48,982

$  325,039

$  326,336





























Adjusted EBITDA

Income (Loss) from Operations

Net Revenues



For the Nine Months Ended

For the Nine Months Ended

      For the Nine Months Ended



June 30,

June 30,

June 30,

June 30,

June 30,

June 30,



2015

2014

2015

2014

2015

2014

Mohegan Sun

$  204,419

$  177,489

$  148,573

$  127,459

$  732,903

$  734,277

Mohegan Sun Pocono

40,640

37,042

31,423

26,555

218,456

220,863

Corporate

(18,325)

(25,530)

(19,717)

(26,676)

4,654

3,780

Inter-segment revenues

-

-

-

-

(3,819)

(3,078)














Total

$  226,734

$  189,001

$  160,279

$  127,338

$  952,194

$  955,842














 

Other Information

Liquidity
As of June 30, 2015, the Authority held cash and cash equivalents of $­70.2 million compared to $49.1 million as of September 30, 2014. As of June 30, 2015, $8.0 million was drawn on the Authority's $100 million revolving credit facility, while no amounts were drawn on the Authority's $16.5 million line of credit. As of June 30, 2015, letters of credit issued under the Authority's revolving credit facility totaled $3.0 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the Authority's revolving credit facility, and after taking into account restrictive financial covenant requirements, the Authority had approximately $89.0 million of borrowing capacity under its revolving credit facility and line of credit as of June 30, 2015.

 

Long-term Debt


Long-term debt consisted of the following (in thousands, including current maturities):



June 30,

September 30,

2015

2014

Senior Secured Credit Facility - Revolving

$        8,000

$          37,000

Senior Secured Credit Facility - Term Loan A, net of discount of $408 and $523, respectively

113,654

119,789

Senior Secured Credit Facility - Term Loan B, net of discount of $6,780 and $8,337, respectively

712,270

716,188

2013 9 3/4% Senior Unsecured Notes

500,000

500,000

2005 6 7/8% Senior Subordinated Notes

-

9,654

2012 11 % Senior Subordinated Notes, net of discount of $2,957 and $3,506, respectively

272,233

271,684

Line of Credit

-

3,041

2009 Mohegan Tribe Promissory Note

875

1,750

2012 Mohegan Tribe Minor's Trust Promissory Note

16,500

16,500

2013 Mohegan Tribe Promissory Note

7,420

7,420

Downs Lodging Credit Facility

45,000

45,000

Other

3,497

2,910

Long-term debt, excluding capital leases

1,679,449

1,730,936

Less: current portion of long-term debt

(25,241)

(31,558)

Long-term debt, net of current portion

$ 1,654,208

$     1,699,378




 

Interest Expense
Interest expense decreased by $766,000, or 2.1%, to $35.7 million for the quarter ended June 30, 2015 compared to $36.4 million in the third quarter of fiscal 2014. The reduction in interest expense was primarily attributable to lower weighted average outstanding debt. Weighted average outstanding debt was $1.72 billion for the quarter ended June 30, 2015 compared to $1.78 billion in the third quarter of fiscal 2014. Weighted average interest rate was 8.3% for the quarter ended June 30, 2015 compared to 8.2% in the third quarter of fiscal 2014.

 

Capital Expenditures

The following table presents data related to capital expenditures (in millions):







Capital Expenditures

Nine Months Ended

Remaining Forecasted

Forecasted

June 30, 2015

Fiscal Year 2015

Fiscal Year 2015






Mohegan Sun:




    Maintenance

$                     6.6

$                       23.4

$                30.0

    Development

0.3

-

0.3

           Subtotal

6.9

23.4

30.3

Mohegan Sun Pocono:




    Maintenance

1.8

3.2

5.0

    Development

0.2

-

0.2

           Subtotal

2.0

3.2

5.2

Corporate:




    Expansion - Project Sunlight

0.1

-

0.1

           Subtotal

0.1

-

0.1

           Total

$                     9.0

$                       26.6

$                  35.6






 

Distributions to the Tribe
Distributions to the Tribe totaled $12.5 million for each of the quarters ended June 30, 2015 and 2014. Distributions to the Tribe are anticipated to total $50.0 million for fiscal 2015.

Conference Call
The Authority will host a conference call and simultaneous webcast regarding its third quarter fiscal 2015 operating results on Wednesday, July 29, 2015 at 11:00 a.m. (Eastern Daylight Time).

Those interested in participating in the call should dial as follows:

­­­­­­­­­­­­­­(877) 756-4274
(706) 643-0107 (International)

Conference ID: 85028360

Please call five minutes in advance to ensure that you are connected prior to the initiation of the call. Questions and answers will be reserved for call-in analysts and investors.

Parties who want to listen to the live conference call on the Internet may do so through a web link on the Authority's website at www.mtga.com, under the "Investor Relations/Financial News" section. Interested parties also may listen to a taped replay of the entire conference call commencing two hours after the call's completion on Wednesday, July 29, 2015. This replay will run through August 12, 2015. 

The access number for a taped replay of the conference call is as follows:

(855) 859-2056
(404) 537-3406 (International)

Conference ID: 85028360

A transcript will be available on the Authority's website for a period of 90 days following the conference call.

About the Authority
 The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 544-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania.

The Tribe's gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the 1,200-room luxury Sky Hotel Tower. Mohegan Sun Pocono operates in an approximately 400,000 square-foot facility, offering traditional slot machines and table games, live harness racing and simulcast and off-track wagering, a 238-room hotel, 20,000 square feet of meeting and convention space, several dining and retail options and a bus passenger lounge. More information about the Authority and its properties can be obtained by visiting www.mohegansun.com, www.mohegansunpocono.com or www.mtga.com.

Special Note Regarding Forward-Looking Statements
Some information included in this press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can sometimes be identified by the use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect" or "intend" and similar expressions. Such forward-looking information may involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority. Information concerning potential factors that could affect the Authority's financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2014, as well as in the Authority's other reports and filings with the Securities and Exchange Commission. Any forward-looking statements included in this press release are made only as of the date of this release. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

 

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands)

(unaudited)



For the

For the

For the

For the


Three Months Ended

Three Months Ended

Nine Months Ended

Nine Months Ended


June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Revenues:







   Gaming

$                      284,713

$                   284,801

$                 837,463

$                837,954

   Food and beverage

23,021

23,273

66,811

68,605

   Hotel

12,700

12,160

37,199

34,763

   Retail, entertainment and other

29,825

31,542

82,231

87,065

   Gross revenues

350,259

351,776

1,023,704

1,028,387

   Less - Promotional allowances

(25,220)

(25,440)

(71,510)

(72,545)

Net revenues

325,039

326,336

952,194

955,842

Operating costs and expenses:







   Gaming

164,229

171,533

485,994

513,574

   Food and beverage

10,323

10,359

31,363

31,207

   Hotel

3,788

3,950

10,767

11,744

   Retail, entertainment and other

12,447

13,318

34,268

37,446

   Advertising, general and administrative

46,522

48,929

140,946

143,740

   Corporate

7,119

9,259

23,400

29,551

   Depreciation and amortization

19,086

20,070

58,703

60,067

   (Gain) loss on disposition of assets

26

(64)

845

(12)

   Severance

-

-

3,370

-

   Pre-opening

-

-

-

1,187

   Impairment of Project Horizon

-

-

2,502

-

   Relinquishment liability reassessment

-

-

(243)

-

Total operating costs and expenses

263,540

277,354

791,915

828,504

Income from operations

61,499

48,982

160,279

127,338

Other income (expense):







   Accretion of discount to the relinquishment liability

-

(552)

(227)

(1,654)

   Interest income

1,906

1,701

5,554

4,947

   Interest expense, net of capitalized interest

(35,660)

(36,426)

(107,692)

(111,692)

   Loss on early extinguishment of debt

-

(2)

-

(62,277)

   Other income (expense), net

(50)

59

(1,260)

(819)

Total other expense

(33,804)

(35,220)

(103,625)

(171,495)

Net income (loss)

27,695

13,762

56,654

(44,157)

Loss attributable to non-controlling interests

439

130

1,278

421

Net income (loss) attributable to Mohegan Tribal Gaming Authority

$                        28,134

$                     13,892

$                   57,932

$                (43,736)









 

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)

















For the Three Months Ended

For the Nine Months Ended





June 30,

June 30,

June 30,

June 30,





2015

2014

2015

2014

Operating Results:









   Gross revenues

$           350,259

$           351,776

$         1,023,704

$          1,028,387

   Net revenues

$           325,039

$           326,336

$            952,194

$             955,842

   Income from operations

$             61,499

$             48,982

$            160,279

$             127,338













Other Data:









   Adjusted EBITDA

$             81,050

$             69,118

$            226,734

$             189,001

   Capital expenditures

$               6,234

$               7,823

$                9,038

$               26,984

   Cash interest paid

$             14,453

$             13,391

$              80,600

$               97,197

   Distributions to the Tribe

$             12,500

$             12,500

$              32,500

$               32,500













































June 30,

September 30,

Balance Sheet Data:





2015

2014

   Cash and cash equivalents




$              70,160

$               49,108

   Relinquishment liability





$                       -

$               25,194

   Capital leases





$                2,546

$                 3,138

   Long-term debt, including current portion



$         1,679,449

$          1,730,936












MOHEGAN SUN

SUPPLEMENTAL DATA

(unaudited)

















For the Three Months Ended

For the Nine Months Ended





June 30,

June 30,

June 30,

June 30,





2015

2014

2015

2014

Operating results:










Gross revenues (in thousands)

$           266,950

$           268,786

$            789,481

$             791,400


Net revenues (in thousands)

$           246,840

$           248,866

$            732,903

$             734,277


Income from operations (in thousands)

$             54,557

$             47,088

$            148,573

$             127,459


Operating margin

22.1%

18.9%

20.3%

17.4%













Adjusted EBITDA:










Adjusted EBITDA (in thousands)

$             70,657

$             63,746

$            204,419

$             177,489


Adjusted EBITDA margin

28.6%

25.6%

27.9%

24.2%













Capital expenditures (in thousands)

$               5,069

$               6,986

$                6,899

$               15,204

Weighted average number of units:








Slot machines

5,249

5,448

5,313

5,483


Table games

283

292

283

288


Poker tables

42

42

42

42

Win per unit per day:










Slot machines (gross)

$                  310

$                  290

$                   297

$                    285


Table games

$               2,625

$               2,685

$                2,724

$                 2,657


Poker tables

$                  611

$                  592

$                   654

$                    644













Hold percentage:










Slot machines (gross)

8.3%

8.1%

8.3%

8.1%


Table games

15.6%

16.3%

16.1%

15.2%













Food and beverage statistics:









Meals served (in thousands)

743

767

2,154

2,210


Average price per meal served

$               15.95

$               15.75

$                15.94

$                 16.03













Hotel statistics:










Rooms occupied (in thousands)

105

104

314

311


Occupancy rate

97.8%

97.8%

97.8%

97.0%


Average daily room rate

$                  101

$                    97

$                     99

$                      97


Revenue per available room

$                    98

$                    95

$                     97

$                      94













Entertainment statistics:










Arena events (in events)

31

29

85

78


Arena tickets (in thousands)

173

178

492

484


Average price per Arena ticket

$               58.68

$               55.28

$                53.61

$                 57.08












 

MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)



















For the Three Months Ended

For the Nine Months Ended






June 30,

June 30,

June 30,

June 30,






2015

2014

2015

2014

Operating results:











Gross revenues (in thousands)

$              83,022

$            82,688

$          233,338

$          236,215


Net revenues (in thousands)

$              77,932

$            77,194

$          218,456

$          220,863


Income from operations (in thousands)

$              12,842

$              9,936

$            31,423

$            26,555


Operating margin


16.5%

12.9%

14.4%

12.0%














Adjusted EBITDA:











Adjusted EBITDA (in thousands)

$              15,810

$            13,012

$            40,640

$            37,042


Adjusted EBITDA margin

20.3%

16.9%

18.6%

16.8%














Capital expenditures (in thousands)

$                1,186

$                 814

$              2,087

$              2,808














Weighted average number of units:









Slot machines


2,330

2,330

2,331

2,331


Table games


73

69

73

67


Poker tables


18

18

18

18














Win per unit per day:











Slot machines (gross)

$                   263

$                 265

$                 248

$                 258


Table games


$                1,768

$              1,675

$              1,738

$              1,655


Poker tables


$                   451

$                 531

$                 474

$                 536














Hold percentage:











Slot machines (gross)

8.3%

8.1%

8.3%

8.3%


Table games


20.7%

18.9%

20.1%

19.6%














Food and beverage statistics:









Meals served (in thousands)

192

207

509

573


Average price per meal served

$                17.27

$              16.54

$              18.13

$              17.19














Hotel statistics (1):











Rooms occupied (in thousands)

21

20

61

47


Occupancy rate


96.1%

94.9%

94.0%

90.4%


Average daily room rate

$                     66

$                   62

$                   62

$                   59


Revenue per available room

$                     63

$                   58

$                   58

$                   53

_________________________________







(1) Hotel operations commenced on November 15, 2013.


CORPORATE

SUPPLEMENTAL DATA

(unaudited)



















For the Three Months Ended

For the Nine Months Ended






June 30,

June 30,

June 30,

June 30,






2015

2014

2015

2014

Capital expenditures (in thousands)

$                   (21)

$                   23

$                   52

$              8,972


Capitalized interest (in thousands)

$                       -

$                     -

$                     -

$                 735

MOHEGAN TRIBAL GAMING AUTHORITY

ADJUSTED EBITDA RECONCILIATIONS

(unaudited)














Reconciliations of Adjusted EBITDA to Net Income (Loss):


















Reconciliations of Adjusted EBITDA to net income (loss), a financial measure determined in accordance with accounting principles generally

accepted in the United States of America, or GAAP, are shown below (in thousands):



































For the Three Months Ended

For the Nine Months Ended






June 30,

June 30,

June 30,

June 30,






2015

2014

2015

2014














Adjusted EBITDA


$              81,050

$            69,118

$          226,734

$          189,001

Depreciation and amortization


(19,086)

(20,070)

(58,703)

(60,067)

Gain (loss) on disposition of assets

(26)

64

(845)

12

Severance


-

-

(3,370)

-

Pre-opening


-

-

-

(1,187)

Impairment of Project Horizon


-

-

(2,502)

-

Relinquishment liability reassessment

-

-

243

-

Loss attributable to non-controlling interests

(439)

(130)

(1,278)

(421)

Income from operations

61,499

48,982

160,279

127,338














Accretion of discount to the relinquishment liability

-

(552)

(227)

(1,654)

Interest income


1,906

1,701

5,554

4,947

Interest expense, net of capitalized interest

(35,660)

(36,426)

(107,692)

(111,692)

Loss on early extinguishment of debt

-

(2)

-

(62,277)

Other income (expense), net

(50)

59

(1,260)

(819)

Net income (loss)


$              27,695

$            13,762

$            56,654

$           (44,157)













 

Reconciliations of Income (Loss) from Operations to Adjusted EBITDA (unaudited):





























Reconciliations of income (loss) from operations, a financial measure determined in accordance with GAAP, to Adjusted EBITDA, are shown below (in thousands):


























For the Three Months Ended June 30, 2015



Income (Loss)

Depreciation

(Gain) Loss




Impairment

Relinquishment

(Gain) Loss Attributable




from

and

on Disposition of




of

Liability

to Non-controlling

Adjusted



Operations

Amortization

Assets

Severance

Pre-opening

Project Horizon

Reassessment

Interests

EBITDA

Mohegan Sun

$           54,557

$            15,857

$                  26

$                   -

$                     -

$                     -

$                       -

$                                    217

$          70,657

Mohegan Sun Pocono

12,842

2,968

-

-

-

-

-

-

15,810

Corporate

(5,900)

261

-

-

-

-

-

222

(5,417)

Total

$           61,499

$            19,086

$                  26

$                   -

$                     -

$                     -

$                       -

$                                    439

$          81,050























For the Three Months Ended June 30, 2014



Income (Loss)

Depreciation

(Gain) Loss




Impairment

Relinquishment

(Gain) Loss Attributable




from

and

on Disposition of




of

Liability

to Non-controlling

Adjusted



Operations

Amortization

Assets

Severance

Pre-opening

Project Horizon

Reassessment

Interests

EBITDA

Mohegan Sun

$           47,088

$            16,722

$                (64)

$                   -

$                     -

$                     -

$                       -

$                                       -

$          63,746

Mohegan Sun Pocono

9,936

3,076

-

-

-

-

-

-

13,012

Corporate

(8,042)

272

-

-

-

-

-

130

(7,640)

Total

$           48,982

$            20,070

$                (64)

$                   -

$                     -

$                     -

$                       -

$                                    130

$          69,118











































For the Nine Months Ended June 30, 2015



Income (Loss)

Depreciation

(Gain) loss on




Impairment

Relinquishment

(Gain) loss attributable to




from

and

Disposition of




of

Liability

Non-controlling

Adjusted



Operations

Amortization

Assets

Severance

Pre-opening

Project Horizon

Reassessment

Interests

EBITDA

Mohegan Sun

$         148,573

$            48,823

$                843

$             3,244

$                     -

$               2,502

$                   (243)

$                                    677

$        204,419

Mohegan Sun Pocono

31,423

9,089

2

126

-

-

-

-

40,640

Corporate

(19,717)

791

-

-

-

-

-

601

(18,325)

Total

$         160,279

$            58,703

$                845

$             3,370

$                     -

$               2,502

$                   (243)

$                                 1,278

$        226,734























For the Nine Months Ended June 30, 2014



Income (Loss)

Depreciation

(Gain) loss on




Impairment

Relinquishment

(Gain) loss attributable to




from

and

Disposition of




of

Liability

Non-controlling

Adjusted



Operations

Amortization

Assets

Severance

Pre-opening

Project Horizon

Reassessment

Interests

EBITDA

Mohegan Sun

$         127,459

$            50,043

$                (13)

$                   -

$                     -

$                     -

$                       -

$                                       -

$        177,489

Mohegan Sun Pocono

26,555

9,299

1

-

1,187

-

-

-

37,042

Corporate

(26,676)

725

-

-

-

-

-

421

(25,530)

Total

$         127,338

$            60,067

$                (12)

$                   -

$               1,187

$                     -

$                       -

$                                    421

$        189,001




















 

Adjusted EBITDA Explanation:
 Net income (loss) before interest, income taxes, depreciation and amortization, or EBITDA, is a commonly used measure of performance in the casino and hospitality industry. EBITDA is not a measure of performance calculated in accordance with GAAP. The Authority historically has evaluated its operating performance with the non-GAAP measure, Adjusted EBITDA, which as used in this press release, represents net income (loss) before interest, depreciation and amortization, gain or loss on disposition of assets, workforce reduction severance, pre-opening costs and expenses, impairment of Project Horizon, reassessment and accretion of discount to a relinquishment liability, loss on early extinguishment of debt, other non-operating income and expense and loss attributable to non-controlling interests.

Adjusted EBITDA provides an additional way to evaluate the Authority's operations and, when viewed with both the Authority's GAAP results and the reconciliations provided, the Authority believes that it provides a more complete understanding of its business than could be otherwise obtained absent this disclosure. Adjusted EBITDA is presented solely as a supplemental disclosure because: (1) the Authority believes it enhances an overall understanding of the Authority's past and current financial performance; (2) the Authority believes it is a useful tool for investors to assess the operating performance of the business in comparison to other operators within the casino and hospitality industry since Adjusted EBITDA excludes certain items that may not be indicative of the Authority's operating results; (3) measures that are comparable to Adjusted EBITDA are often used as an important basis for the valuation of casino and hospitality companies; and (4) the Authority uses Adjusted EBITDA internally to evaluate the performance of its operating personnel and management and as a benchmark to evaluate its operating performance in comparison to its competitors.

The use of Adjusted EBITDA has certain limitations. Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, any GAAP financial measure including net income (loss) (as an indicator of the Authority's performance) or cash flows provided by operating activities (as an indicator of the Authority's liquidity), nor should it be considered as an indicator of the Authority's overall financial performance. The Authority's calculation of Adjusted EBITDA is likely to be different from the calculation of Adjusted EBITDA or other similarly titled measurements used by other casino and hospitality companies, and therefore, comparability may be limited. Adjusted EBITDA eliminates certain items from net income (loss), such as interest and depreciation and amortization. Each of these items has been incurred in the past, will continue to be incurred in the future and should be considered in the overall evaluation of the Authority's results. The Authority compensates for these limitations by providing relevant disclosures of items excluded in the calculation of Adjusted EBITDA, both in its reconciliations to the GAAP financial measure of net income (loss) and in its consolidated financial statements, all of which should be considered when evaluating its results. The Authority strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

Contacts:
Robert J. Soper
President
Mohegan Tribal Gaming Authority
(860) 862-8000

Mario C. Kontomerkos
Chief Financial Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mohegan-tribal-gaming-authority-announces-third-quarter-fiscal-2015-operating-results-300120153.html

SOURCE Mohegan Tribal Gaming Authority

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