Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco”
or the “Company”), a developer, owner, and operator of integrated
resort facilities in Asia and Europe, today reported its unaudited
financial results for the first quarter of 2022.
Total operating revenues for the first quarter
of 2022 were US$474.9 million, representing a decrease of
approximately 8% from US$518.9 million for the comparable period in
2021. The decrease in total operating revenues was primarily
attributable to heightened border restrictions in Macau related to
COVID-19 which led to softer performance in the mass market table
games segment.
Operating loss for the first quarter of 2022 was
US$135.9 million, compared with operating loss of US$162.8 million
in the first quarter of 2021.
Melco generated Adjusted Property EBITDA(1) of
US$56.0 million in the first quarter of 2022, compared with
Adjusted Property EBITDA of US$30.1 million in the first quarter of
2021.
Net loss attributable to Melco Resorts &
Entertainment Limited for the first quarter of 2022 was US$183.3
million, or US$0.39 per ADS, compared with net loss attributable to
Melco Resorts & Entertainment Limited of US$232.9 million, or
US$0.49 per ADS, in the first quarter of 2021. The net loss
attributable to non-controlling interests was US$38.6 million and
US$44.6 million during the first quarters of 2022 and 2021,
respectively, all of which were related to Studio City, City of
Dreams Manila, and the Cyprus Operations.
Mr. Lawrence Ho, our Chairman and Chief
Executive Officer, commented, “Our results for the first quarter of
2022 continue to reflect the impact of the COVID pandemic. We saw a
solid performance in Macau through the Chinese New Year holiday
period, but COVID-related restrictions and tighter border controls
led to Macau GGR falling more than 50% from February to March 2022,
and negatively impacted our operating and financial performance for
the remainder of the first quarter. Disciplined liquidity
management remains a key area of focus. Total debt increased by
US$1.3 billion year-on-year as we increased available liquidity to
support our operations and ongoing development projects. We will be
prudent in managing our balance sheet and liquidity profile as we
manage the business through this challenging environment.
“We are pleased to see some easing of travel
restrictions with the validity period for negative COVID tests
increasing to 72 hours. We remain, as ever, confident in the
pent-up demand for Macau as an international tourism destination
and believe in a strong recovery once travel restrictions are
further relaxed.
“In the Philippines, COVID-related restrictions
have been relaxed under alert level 1, and we are starting to see
international travel return with meaningful volume growth in our
mass segment.
“We remain committed to our development plans in
Macau and Cyprus. Construction of Studio City Phase 2 is
progressing, and we continue our efforts to complete construction
by the deadline set in the land concession of December 27, 2022.
This project will complement Melco’s existing offering of
‘next-generation’ world-class entertainment and further enhance the
Studio City brand. In Cyprus, construction of City of Dreams
Mediterranean continues with a target to open by year-end. However,
we are encountering difficulties with our contractor who has
struggled with meeting its labor resourcing plans and maintaining
progress, which has led to delays. We are actively dealing with
these difficulties as we remain fully committed towards delivering
Europe’s first integrated resort in Cyprus.
“Turning back to Macau, we look forward to the
finalization of the new gaming law by the Macau Government and
fully support the Macau Government’s initiatives in relation to the
new legislation. We appreciate the Macau Government’s efforts to
maintain a streamlined and transparent process. We are committed to
participating in the public tender for the award of a new gaming
concession and are dedicated to the continued development and
diversification of Macau’s economy.
“Lastly, we remain steadfast in our efforts in
environmental sustainability with a focus on energy and waste
reduction. Melco’s 2021 Sustainability Report will be released in
May this year, with new ambitious environmental Group targets
included to align with our overarching 2030 goals. As our Scope 3
emissions comprise a significant portion of our impact, we have
been actively working to gain a deeper understanding of these
emissions and continue to refine our calculation methodology. This
year, we will be disclosing Scope 3 Downstream-leased Assets and
Fuel and Energy-related Activity (FERA). Moving forward, we are
also focusing on aligning with the recommendations of the Task
Force on Climate-related Financial Disclosure (TCFD).”
City of Dreams First Quarter
Results
For the quarter ended March 31, 2022, total
operating revenues at City of Dreams were US$256.7 million,
compared to US$302.5 million in the first quarter of 2021. City of
Dreams generated Adjusted EBITDA of US$44.4 million in the first
quarter of 2022, compared with Adjusted EBITDA of US$40.0 million
in the first quarter of 2021.
Rolling chip volume was US$2.45 billion for the
first quarter of 2022 versus US$4.13 billion in the first quarter
of 2021. The rolling chip win rate was 3.93% in the first quarter
of 2022 versus 2.36% in the first quarter of 2021. The expected
rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop decreased to
US$552.5 million in the first quarter of 2022, compared with
US$730.9 million in the first quarter of 2021. The mass market
table games hold percentage was 30.6% in the first quarter of 2022,
compared to 31.7% in the first quarter of 2021.
Gaming machine handle for the first quarter of
2022 was US$380.1 million, compared with US$510.2 million in the
first quarter of 2021. The gaming machine win rate was 3.4% in the
first quarter of 2022 versus 3.3% in the first quarter of 2021.
Total non-gaming revenue at City of Dreams in
the first quarter of 2022 was US$37.8 million, compared with
US$47.1 million in the first quarter of 2021.
Altira Macau First Quarter
Results
For the quarter ended March 31, 2022, total
operating revenues at Altira Macau were US$13.9 million, compared
to US$14.3 million in the first quarter of 2021. Altira Macau
generated negative Adjusted EBITDA of US$9.4 million in the first
quarter of 2022, compared with negative Adjusted EBITDA of US$29.6
million in the first quarter of 2021. The year-over-year
improvement in Adjusted EBITDA was primarily a result of the
repositioning of the property toward the premium mass segment and
the shutdown of VIP rolling chip operations since the third quarter
of 2021, as well as a reversal of bad debt provisions in the first
quarter of 2022.
In the first quarter of 2021, rolling chip
volume was US$1.10 billion and the rolling chip win rate was 1.60%.
The expected rolling chip win rate range is 2.85% - 3.15%.
In the mass market table games segment, drop was
US$44.4 million in the first quarter of 2022 versus US$51.4 million
in the first quarter of 2021. The mass market table games hold
percentage was 26.3% in the first quarter of 2022, compared with
19.1% in the first quarter of 2021. Gaming
machine handle for the first quarter of 2022 was US$50.5 million,
compared with US$60.2 million in the first quarter of 2021. The
gaming machine win rate was 4.1% in the first quarter of 2022
versus 3.9% in the first quarter of 2021.
Total non-gaming revenue at Altira Macau in the
first quarter of 2022 was US$2.4 million, compared with US$3.1
million in the first quarter of 2021.
Mocha Clubs First Quarter
Results
Total operating revenues from Mocha Clubs were
US$21.2 million in the first quarter of 2022, compared to US$17.8
million in the first quarter of 2021. Mocha Clubs generated
Adjusted EBITDA of US$4.4 million in the first quarter of 2022,
compared with Adjusted EBITDA of US$1.8 million in the first
quarter of 2021.
Gaming machine handle for the first quarter of
2022 was US$478.1 million, compared with US$415.2 million in the
first quarter of 2021. The gaming machine win rate was 4.4% in the
first quarter of 2022 versus 4.3% in the first quarter of 2021.
Studio City First Quarter
Results
For the quarter ended March 31, 2022, total
operating revenues at Studio City were US$71.1 million, compared to
US$97.9 million in the first quarter of 2021. Studio City generated
negative Adjusted EBITDA of US$17.3 million in the first quarter of
2022, compared with negative Adjusted EBITDA of US$5.2 million in
the first quarter of 2021. The year-over-year decline in Adjusted
EBITDA was primarily a result of softer performance in the mass
market table games segment and non-gaming operations.
Studio City’s rolling chip volume was US$439.3
million in the first quarter of 2022 versus US$505.0 million in the
first quarter of 2021. The rolling chip win rate was 1.66% in the
first quarter of 2022 versus 0.29% in the first quarter of 2021.
The expected rolling chip win rate range is 2.85% - 3.15%.
Mass market table games drop decreased to
US$191.8 million in the first quarter of 2022, compared with
US$309.3 million in the first quarter of 2021. The mass market
table games hold percentage was 31.6% in the first quarter of 2022,
compared to 29.1% in the first quarter of 2021.
Gaming machine handle for the first quarter of
2022 was US$233.0 million, compared with US$278.3 million in the
first quarter of 2021. The gaming machine win rate was 3.1% in the
first quarter of 2022, compared to 2.5% in the first quarter of
2021.
Total non-gaming revenue at Studio City in the
first quarter of 2022 was US$13.3 million, compared with US$19.4
million in the first quarter of 2021.
City of Dreams Manila First Quarter
Results
For the quarter ended March 31, 2022, total
operating revenues at City of Dreams Manila were US$86.9 million,
compared to US$79.5 million in the first quarter of 2021. City of
Dreams Manila generated Adjusted EBITDA of US$33.0 million in the
first quarter of 2022, compared with Adjusted EBITDA of US$29.4
million in the comparable period of 2021.
City of Dreams Manila’s rolling chip volume was
US$647.9 million in the first quarter of 2022 versus US$272.3
million in the first quarter of 2021. The rolling chip win rate was
1.09% in the first quarter of 2022 versus 7.00% in the first
quarter of 2021. The expected rolling chip win rate range is 2.85%
- 3.15%.
Mass market table games drop increased to
US$127.3 million in the first quarter of 2022, compared with
US$100.0 million in the first quarter of 2021. The mass market
table games hold percentage was 29.8% in the first quarter of 2022,
compared to 34.0% in the first quarter of 2021.
Gaming machine handle for the first quarter of
2022 was US$776.7 million, compared with US$568.9 million in the
first quarter of 2021. The gaming machine win rate was 6.0% in the
first quarter of 2022 versus 5.7% in the first quarter of 2021.
Total non-gaming revenue at City of Dreams
Manila in the first quarter of 2022 was US$22.3 million, compared
with US$14.2 million in the first quarter of 2021.
Cyprus Operations First Quarter
Results
The Company is licensed to operate a temporary
casino, the first casino in the Republic of Cyprus, and four
satellite casinos. Upon the completion and opening of City of
Dreams Mediterranean, the Company will continue to operate the
satellite casinos while operation of the temporary casino will
cease.
Our casinos remained open during the quarter
ended March 31, 2022, with total operating revenues at Cyprus
Casinos of US$16.1 million, compared to insignificant operating
revenues in the first quarter of 2021. Cyprus Casinos generated
Adjusted EBITDA of US$0.9 million in the first quarter of 2022,
compared with negative Adjusted EBITDA of US$6.4 million in the
first quarter of 2021. The year-over-year increase in Adjusted
EBITDA was primarily a result of the relaxation in COVID-19 related
restrictions while casinos were closed during the entire first
quarter of 2021 due to government mandated restrictions.
Rolling chip volume was US$2.2 million and the
rolling chip win rate was negative 3.40% in the first quarter of
2022. The expected rolling chip win rate range is 2.85% -
3.15%.
Mass market table games drop was US$26.8 million
and the mass market table games hold percentage was 16.5% in the
first quarter of 2022.
Gaming machine handle was US$247.1 million and
the gaming machine win rate was 4.9% in the first quarter of
2022.
Other Factors Affecting
Earnings
Total net non-operating expenses for the first
quarter of 2022 were US$84.0 million, which mainly included
interest expenses of US$87.1 million, net of amounts
capitalized.
Depreciation and amortization costs of US$141.3
million were recorded in the first quarter of 2022, of which
US$14.3 million related to the amortization expense for our gaming
subconcession and US$5.7 million related to the amortization
expense for the land use rights.
The negative Adjusted EBITDA for Studio City for
the three months ended March 31, 2022 referred to above is US$9.4
million less than the negative Adjusted EBITDA of Studio City
contained in the earnings release for Studio City International
Holdings Limited (“SCIHL”) dated May 5, 2022 (the “Studio City
Earnings Release”). The Adjusted EBITDA of Studio City contained in
the Studio City Earnings Release includes certain intercompany
charges that are not included in the Adjusted EBITDA for Studio
City contained in this press release. Such intercompany charges
include, among other items, fees and shared service charges billed
between SCIHL and its subsidiaries and certain subsidiaries of
Melco. Additionally, Adjusted EBITDA of Studio City included in
this press release does not reflect certain intercompany costs
related to the table games operations at Studio City Casino.
Financial Position and Capital
Expenditures
Total cash and bank balances as of March 31,
2022 aggregated to US$1.90 billion, including US$0.4 million of
restricted cash. Total debt, net of unamortized deferred financing
costs and original issue premiums, was US$7.07 billion at the end
of the first quarter of 2022.
Approximately 3.9 million ADSs were repurchased
in the first quarter of 2022, for a total consideration of US$27
million.
Capital expenditures for the first quarter of
2022 were US$151.5 million, which primarily related to the
construction projects at Studio City Phase 2 and City of Dreams
Mediterranean.
Recent Developments
Uncertainty around COVID-19 outbreaks and
related restrictions continue to have a material effect on our
operations, financial position, and future prospects into the
second quarter of 2022.
In Macau, our operations remain impacted by
travel restrictions and quarantine requirements. A stream of
COVID-19 outbreaks in China in mid-January 2022 led to a tightening
of border controls for entry from Guangdong province and a
reduction in the validity period of a negative COVID test from 7
days to 48 hours. Shortly thereafter, the validity period was
further reduced to 24 hours until the end of January. The validity
period increased to 48 hours until mid-March when it was reduced
back to 24 hours in response to increasing COVID-19 cases in China.
This restriction remained in place until April 20, 2022, when the
Macau government increased the negative COVID test validity period
for entry from Guangdong province back up to 48 hours, and then to
72 hours on April 25, 2022.
In the Philippines, the government announced a
re-opening of the Philippines’ borders to fully vaccinated
international tourists with a negative RT-PCR test taken within 48
hours of departure of their country of origin, effective February
10, 2022, and lowered COVID-19 restrictions to alert level 1
starting from March 1, 2022 which has allowed casinos to operate at
100% capacity, subject to certain guidelines.
In Cyprus, with a surge in COVID-19 cases,
authorities stepped up COVID-19 restrictions from the end of
December 2021 by reducing the capacity at certain venues and
increasing restrictions for unvaccinated people. However, such
restrictions were eased from February 21, 2022 and travel
restrictions into Cyprus were further eased on April 18, 2022. Our
casinos remained open during the period and are currently still
subject to certain COVID-19 health and safety measures.
Conference Call
InformationMelco Resorts & Entertainment Limited will
hold a conference call to discuss its first quarter 2022 financial
results on Thursday, May 5, 2022 at 8:30 a.m. Eastern Time (or 8:30
p.m. Hong Kong Time). To join the conference call, please use the
dial-in details below:
US Toll
Free |
1 833 239
5575 |
US Toll / International |
1 332 208 9458 |
HK Toll |
852 3018 8307 |
HK Toll Free |
800 906 613 |
UK Toll |
44 203 692 8123 |
Australia Toll |
61 290 833 216 |
Australia Toll Free |
1 800 754 642 |
|
|
Passcode |
8893598 |
An audio webcast will also be available at
http://www.melco-resorts.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 |
852 3051 2780 |
HK Toll Free |
800 963 117 |
Philippines Toll Free |
1 800 1612 0166 |
|
|
Conference ID |
8893598 |
Safe Harbor Statement
This press release contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Melco Resorts & Entertainment Limited (the “Company”) may
also make forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission (the “SEC”), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company’s beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties, and a number
of factors could cause actual results to differ materially from
those contained in any forward-looking statement. These factors
include, but are not limited to, (i) the global COVID-19 outbreak,
caused by a novel strain of the coronavirus, and the continued
impact of its consequences on our business, our industry and the
global economy, (ii) growth of the gaming market and visitations in
Macau, the Philippines and the Republic of Cyprus, (iii) capital
and credit market volatility, (iv) local and global economic
conditions, (v) our anticipated growth strategies, (vi) gaming
authority and other governmental approvals and regulations, (vii)
proposed amendments to the gaming law in Macau, the extension of
current gaming concessions and subconcessions and tender for new
gaming concessions, and (viii) our future business development,
results of operations and financial condition. In some cases,
forward-looking statements can be identified by words or phrases
such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”,
“estimate”, “intend”, “plan”, “believe”, “potential”, “continue”,
“is/are likely to” or other similar expressions. Further
information regarding these and other risks, uncertainties or
factors is included in the Company’s filings with the SEC. All
information provided in this press release is as of the date of
this press release, and the Company undertakes no duty to update
such information, except as required under applicable law.
Non-GAAP Financial Measures
(1) “Adjusted EBITDA” is net income/loss before
interest, taxes, depreciation, amortization, pre-opening costs,
development costs, property charges and other, share-based
compensation, payments to the Philippine parties under the
cooperative arrangement (the “Philippine Parties”), land rent to
Belle Corporation and other non-operating income and expenses.
“Adjusted Property EBITDA” is net income/loss before interest,
taxes, depreciation, amortization, pre-opening costs, development
costs, property charges and other, share-based compensation,
payments to the Philippine Parties, land rent to Belle Corporation,
Corporate and Other expenses and other non-operating income and
expenses. Adjusted EBITDA and Adjusted Property EBITDA are
presented exclusively as supplemental disclosures because
management believes they are widely used to measure the
performance, and as a basis for valuation, of gaming companies.
Management uses Adjusted EBITDA and Adjusted Property EBITDA as
measures of the operating performance of its segments and to
compare the operating performance of its properties with those of
its competitors.The Company also presents Adjusted EBITDA and
Adjusted Property EBITDA because they are used by some investors as
ways to measure a company’s ability to incur and service debt, make
capital expenditures, and meet working capital requirements. Gaming
companies have historically reported Adjusted EBITDA and Adjusted
Property EBITDA as supplements to financial measures in accordance
with U.S. GAAP. However, Adjusted EBITDA and Adjusted Property
EBITDA should not be considered as alternatives to operating
income/loss as indicators of the Company’s performance, as
alternatives to cash flows from operating activities as measures of
liquidity, or as alternatives to any other measure determined in
accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA
and Adjusted Property EBITDA do not include depreciation and
amortization or interest expense and, therefore, do not reflect
current or future capital expenditures or the cost of capital. The
Company 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/loss, net income/loss, cash flows from operations and cash
flow data. The Company has significant uses of cash flows,
including capital expenditures, interest payments, debt principal
repayments, taxes and other recurring and nonrecurring charges,
which are not reflected in Adjusted EBITDA or Adjusted Property
EBITDA. Also, the Company’s calculation of Adjusted EBITDA and
Adjusted Property EBITDA may be different from the calculation
methods used by other companies and, therefore, comparability may
be limited. Reconciliations of Adjusted EBITDA and Adjusted
Property EBITDA with the most comparable financial measures
calculated and presented in accordance with U.S. GAAP are provided
herein immediately following the financial statements included in
this press release.
(2) “Adjusted net income/loss” is net
income/loss before pre-opening costs, development costs, property
charges and other and loss on extinguishment of debt, net of
noncontrolling interests and taxes calculated using specific tax
treatments applicable to the adjustments based on their respective
jurisdictions. Adjusted net income/loss attributable to Melco
Resorts & Entertainment Limited and adjusted net income/loss
attributable to Melco Resorts & Entertainment Limited per share
(“EPS”) are presented as supplemental disclosures because
management believes they are widely used to measure the
performance, and as a basis for valuation, of gaming companies.
These measures are used by management and/or evaluated by some
investors, in addition to income/loss and EPS computed in
accordance with U.S. GAAP, as an additional basis for assessing
period-to-period results of our business. Adjusted net income/loss
attributable to Melco Resorts & Entertainment Limited and
adjusted net income/loss attributable to Melco Resorts &
Entertainment Limited per share may be different from the
calculation methods used by other companies and, therefore,
comparability may be limited. Reconciliations of adjusted net
income/loss attributable to Melco Resorts & Entertainment
Limited with the most comparable financial measures calculated and
presented in accordance with U.S. GAAP are provided herein
immediately following the financial statements included in this
press release.
About Melco Resorts & Entertainment
Limited
The Company, with its American depositary shares
listed on the Nasdaq Global Select Market (Nasdaq: MLCO), is a
developer, owner and operator of integrated resort facilities in
Asia and Europe. The Company currently operates Altira Macau
(www.altiramacau.com), an integrated resort located at Taipa, Macau
and City of Dreams (www.cityofdreamsmacau.com), an integrated
resort located in Cotai, Macau. Its business also includes the
Mocha Clubs (www.mochaclubs.com), which comprise the largest
non-casino based operations of electronic gaming machines in Macau.
The Company also majority owns and operates Studio City
(www.studiocity-macau.com), a cinematically-themed integrated
resort in Cotai, Macau. In the Philippines, a Philippine subsidiary
of the Company currently operates and manages City of Dreams Manila
(www.cityofdreamsmanila.com), an integrated resort in the
Entertainment City complex in Manila. In Europe, the Company is
currently developing City of Dreams Mediterranean
(www.cityofdreamsmed.com.cy) in the Republic of Cyprus, which is
expected to be the largest and premier integrated destination
resort in Europe. The Company is currently operating a temporary
casino, the first authorized casino in the Republic of Cyprus, and
is licensed to operate four satellite casinos (“Cyprus Casinos”).
Upon the opening of City of Dreams Mediterranean, the Company will
continue to operate the satellite casinos while operation of the
temporary casino will cease. For more information about the
Company, please visit www.melco-resorts.com.
The Company 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
the Company.
For the investment community, please
contact: Jeanny KimSenior Vice President, Group
TreasurerTel: +852 2598
3698Email: jeannykim@melco-resorts.com
For media enquiries, please
contact:Chimmy LeungExecutive Director, Corporate
CommunicationsTel: +852 3151 3765Email:
chimmyleung@melco-resorts.com
|
|
|
|
|
|
Melco Resorts & Entertainment Limited and
Subsidiaries |
Condensed Consolidated Statements of Operations
(Unaudited) |
(In thousands of U.S. dollars, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2022 |
|
2021 |
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
Casino |
$ |
395,075 |
|
|
$ |
433,796 |
|
Rooms |
|
36,509 |
|
|
|
39,680 |
|
Food and beverage |
|
24,328 |
|
|
|
26,051 |
|
Entertainment, retail and other |
|
19,033 |
|
|
|
19,395 |
|
Total operating revenues |
|
474,945 |
|
|
|
518,922 |
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
Casino |
|
(307,383 |
) |
|
|
(366,929 |
) |
Rooms |
|
(12,964 |
) |
|
|
(12,839 |
) |
Food and beverage |
|
(23,821 |
) |
|
|
(24,122 |
) |
Entertainment, retail and other |
|
(5,988 |
) |
|
|
(7,704 |
) |
General and administrative |
|
(101,223 |
) |
|
|
(108,160 |
) |
Payments to the Philippine Parties |
|
(7,215 |
) |
|
|
(10,625 |
) |
Pre-opening costs |
|
(2,355 |
) |
|
|
(997 |
) |
Development costs |
|
- |
|
|
|
(3,519 |
) |
Amortization of gaming subconcession |
|
(14,254 |
) |
|
|
(14,342 |
) |
Amortization of land use rights |
|
(5,682 |
) |
|
|
(5,717 |
) |
Depreciation and amortization |
|
(121,356 |
) |
|
|
(121,040 |
) |
Property charges and other |
|
(8,601 |
) |
|
|
(5,724 |
) |
Total operating costs and expenses |
|
(610,842 |
) |
|
|
(681,718 |
) |
Operating loss |
|
(135,897 |
) |
|
|
(162,796 |
) |
Non-operating income (expenses): |
|
|
|
|
|
Interest income |
|
990 |
|
|
|
2,025 |
|
Interest expenses, net of amounts capitalized |
|
(87,087 |
) |
|
|
(90,642 |
) |
Other financing costs |
|
(1,343 |
) |
|
|
(2,487 |
) |
Foreign exchange gains, net |
|
2,778 |
|
|
|
5,199 |
|
Other income, net |
|
688 |
|
|
|
673 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
(28,817 |
) |
Total non-operating expenses, net |
|
(83,974 |
) |
|
|
(114,049 |
) |
Loss before income tax |
|
(219,871 |
) |
|
|
(276,845 |
) |
Income tax expense |
|
(1,973 |
) |
|
|
(664 |
) |
Net loss |
|
(221,844 |
) |
|
|
(277,509 |
) |
Net loss attributable to |
|
|
|
|
|
noncontrolling interests |
|
38,560 |
|
|
|
44,601 |
|
Net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited |
$ |
(183,284 |
) |
|
$ |
(232,908 |
) |
|
|
|
|
|
|
Net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited per share: |
|
|
|
|
|
Basic |
$ |
(0.129 |
) |
|
$ |
(0.163 |
) |
Diluted |
$ |
(0.129 |
) |
|
$ |
(0.163 |
) |
|
|
|
|
|
|
Net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited per ADS: |
|
|
|
|
|
Basic |
$ |
(0.387 |
) |
|
$ |
(0.488 |
) |
Diluted |
$ |
(0.388 |
) |
|
$ |
(0.488 |
) |
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
used in net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited |
|
|
|
|
|
per share calculation: |
|
|
|
|
|
Basic |
|
1,422,175,108 |
|
|
|
1,432,289,789 |
|
Diluted |
|
1,422,175,108 |
|
|
|
1,432,289,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Melco
Resorts & Entertainment Limited and Subsidiaries |
Condensed
Consolidated Balance Sheets |
(In
thousands of U.S. dollars, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
2022 |
|
2021 |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
1,899,045 |
|
$ |
1,652,890 |
Restricted cash |
|
289 |
|
|
285 |
Accounts receivable, net |
|
54,274 |
|
|
54,491 |
Amounts due from affiliated companies |
|
430 |
|
|
384 |
Inventories |
|
28,903 |
|
|
29,589 |
Prepaid expenses and other current assets |
|
114,385 |
|
|
109,330 |
Assets held for sale |
|
26,832 |
|
|
21,777 |
Total
current assets |
|
2,124,158 |
|
|
1,868,746 |
|
|
|
|
|
|
Property and
equipment, net |
|
5,905,460 |
|
|
5,910,684 |
Gaming
subconcession, net |
|
12,742 |
|
|
27,065 |
Intangible
assets, net |
|
49,014 |
|
|
51,547 |
Goodwill |
|
81,418 |
|
|
81,721 |
Long-term
prepayments, deposits and other assets |
|
171,844 |
|
|
177,142 |
Restricted
cash |
|
142 |
|
|
140 |
Deferred tax
assets, net |
|
2,711 |
|
|
4,029 |
Operating
lease right-of-use assets |
|
72,614 |
|
|
68,034 |
Land use
rights, net |
|
686,340 |
|
|
694,582 |
Total
assets |
$ |
9,106,443 |
|
$ |
8,883,690 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ |
6,922 |
|
$ |
5,992 |
Accrued expenses and other current liabilities |
|
781,872 |
|
|
935,483 |
Income tax payable |
|
9,889 |
|
|
11,913 |
Operating lease liabilities, current |
|
15,055 |
|
|
16,771 |
Finance lease liabilities, current |
|
52,849 |
|
|
48,551 |
Current portion of long-term debt, net |
|
128 |
|
|
128 |
Amounts due to affiliated companies |
|
1,799 |
|
|
1,548 |
Liabilities related to assets held for sale |
|
1,571 |
|
|
1,497 |
Total
current liabilities |
|
870,085 |
|
|
1,021,883 |
|
|
|
|
|
|
Long-term
debt, net |
|
7,073,660 |
|
|
6,559,854 |
Other
long-term liabilities |
|
32,322 |
|
|
30,520 |
Deferred tax
liabilities, net |
|
41,132 |
|
|
41,030 |
Operating
lease liabilities, non-current |
|
68,347 |
|
|
62,889 |
Finance
lease liabilities, non-current |
|
334,452 |
|
|
347,629 |
Total
liabilities |
|
8,419,998 |
|
|
8,063,805 |
|
|
|
|
|
|
Equity: |
|
|
|
|
|
Ordinary shares, par value $0.01; 7,300,000,000 shares
authorized; |
|
|
|
|
|
1,456,547,942 and 1,456,547,942 shares issued; |
|
|
|
|
|
1,417,283,554 and 1,423,370,314 shares outstanding,
respectively |
|
14,565 |
|
|
14,565 |
Treasury shares, at cost; 39,264,388 and 33,177,628 shares,
respectively |
|
(137,241) |
|
|
(132,856) |
Additional paid-in capital |
|
3,231,969 |
|
|
3,238,600 |
Accumulated other comprehensive losses |
|
(102,257) |
|
|
(76,008) |
Accumulated losses |
|
(2,982,636) |
|
|
(2,799,555) |
Total Melco
Resorts & Entertainment Limited shareholders’ equity |
|
24,400 |
|
|
244,746 |
Noncontrolling interests |
|
662,045 |
|
|
575,139 |
Total
equity |
|
686,445 |
|
|
819,885 |
Total
liabilities and equity |
$ |
9,106,443 |
|
$ |
8,883,690 |
|
|
|
|
|
|
|
Melco Resorts & Entertainment Limited and
Subsidiaries |
Reconciliation of Net Loss Attributable to Melco Resorts
& Entertainment Limited to |
Adjusted Net Loss Attributable to Melco Resorts &
Entertainment Limited (Unaudited) |
(In thousands of U.S. dollars, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited |
$ |
(183,284 |
) |
|
$ |
(232,908 |
) |
Pre-opening costs |
|
2,355 |
|
|
|
997 |
|
Development costs |
|
- |
|
|
|
3,519 |
|
Property charges and other |
|
8,601 |
|
|
|
5,724 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
28,817 |
|
Income tax impact on adjustments |
|
- |
|
|
|
(706 |
) |
Noncontrolling interests impact on adjustments |
|
(2,166 |
) |
|
|
(13,449 |
) |
Adjusted net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited |
$ |
(174,494 |
) |
|
$ |
(208,006 |
) |
|
|
|
|
|
|
Adjusted net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited per share: |
|
|
|
|
|
Basic |
$ |
(0.123 |
) |
|
$ |
(0.145 |
) |
Diluted |
$ |
(0.123 |
) |
|
$ |
(0.145 |
) |
|
|
|
|
|
|
Adjusted net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited per ADS: |
|
|
|
|
|
Basic |
$ |
(0.368 |
) |
|
$ |
(0.436 |
) |
Diluted |
$ |
(0.369 |
) |
|
$ |
(0.436 |
) |
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
used in adjusted net loss attributable to |
|
|
|
|
|
Melco Resorts & Entertainment Limited |
|
|
|
|
|
per share calculation: |
|
|
|
|
|
Basic |
|
1,422,175,108 |
|
|
|
1,432,289,789 |
|
Diluted |
|
1,422,175,108 |
|
|
|
1,432,289,789 |
|
|
|
|
|
|
|
|
Melco
Resorts & Entertainment Limited and Subsidiaries |
Reconciliation of Operating Loss to Adjusted EBITDA and
Adjusted Property EBITDA (Unaudited) |
(In
thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2022 |
|
AltiraMacau |
|
Mocha |
|
City ofDreams |
|
StudioCity |
|
City ofDreamsManila |
|
CyprusOperations |
|
Corporateand Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
$ |
(15,721 |
) |
|
$ |
3,040 |
|
|
$ |
(23,194 |
) |
|
$ |
(55,256 |
) |
|
$ |
8,166 |
|
|
$ |
(3,360 |
) |
|
$ |
(49,572 |
) |
|
$ |
(135,897 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments to the Philippine Parties |
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,215 |
|
|
|
- |
|
|
|
- |
|
|
|
7,215 |
|
Land rent to Belle Corporation |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
658 |
|
|
|
- |
|
|
|
- |
|
|
|
658 |
|
Pre-opening costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
277 |
|
|
|
- |
|
|
|
2,078 |
|
|
|
- |
|
|
|
2,355 |
|
Depreciation and amortization |
|
5,433 |
|
|
|
1,247 |
|
|
|
60,207 |
|
|
|
33,805 |
|
|
|
16,326 |
|
|
|
1,929 |
|
|
|
22,345 |
|
|
|
141,292 |
|
Share-based compensation |
|
363 |
|
|
|
118 |
|
|
|
3,796 |
|
|
|
805 |
|
|
|
537 |
|
|
|
253 |
|
|
|
11,099 |
|
|
|
16,971 |
|
Property charges and other |
|
573 |
|
|
|
(53 |
) |
|
|
3,614 |
|
|
|
3,066 |
|
|
|
94 |
|
|
|
- |
|
|
|
1,307 |
|
|
|
8,601 |
|
Adjusted
EBITDA |
|
(9,352 |
) |
|
|
4,352 |
|
|
|
44,423 |
|
|
|
(17,303 |
) |
|
|
32,996 |
|
|
|
900 |
|
|
|
(14,821 |
) |
|
|
41,195 |
|
Corporate and Other expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
14,821 |
|
|
|
14,821 |
|
Adjusted
Property EBITDA |
$ |
(9,352 |
) |
|
$ |
4,352 |
|
|
$ |
44,423 |
|
|
$ |
(17,303 |
) |
|
$ |
32,996 |
|
|
$ |
900 |
|
|
$ |
- |
|
|
$ |
56,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2021 |
|
AltiraMacau |
|
Mocha |
|
City ofDreams |
|
StudioCity |
|
City ofDreamsManila |
|
CyprusOperations |
|
Corporateand Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income |
$ |
(35,224 |
) |
|
$ |
163 |
|
|
$ |
(21,579 |
) |
|
$ |
(39,341 |
) |
|
$ |
(3,247 |
) |
|
$ |
(10,267 |
) |
|
$ |
(53,301 |
) |
|
$ |
(162,796 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments to the Philippine Parties |
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,625 |
|
|
|
- |
|
|
|
- |
|
|
|
10,625 |
|
Land rent to Belle Corporation |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
805 |
|
|
|
- |
|
|
|
- |
|
|
|
805 |
|
Pre-opening costs |
|
- |
|
|
|
- |
|
|
|
193 |
|
|
|
243 |
|
|
|
- |
|
|
|
561 |
|
|
|
- |
|
|
|
997 |
|
Development costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,519 |
|
|
|
3,519 |
|
Depreciation and amortization |
|
5,475 |
|
|
|
1,629 |
|
|
|
59,278 |
|
|
|
33,617 |
|
|
|
16,390 |
|
|
|
3,207 |
|
|
|
21,503 |
|
|
|
141,099 |
|
Share-based compensation |
|
120 |
|
|
|
35 |
|
|
|
858 |
|
|
|
352 |
|
|
|
466 |
|
|
|
69 |
|
|
|
8,117 |
|
|
|
10,017 |
|
Property charges and other |
|
71 |
|
|
|
17 |
|
|
|
1,298 |
|
|
|
(60 |
) |
|
|
4,373 |
|
|
|
- |
|
|
|
25 |
|
|
|
5,724 |
|
Adjusted
EBITDA |
|
(29,558 |
) |
|
|
1,844 |
|
|
|
40,048 |
|
|
|
(5,189 |
) |
|
|
29,412 |
|
|
|
(6,430 |
) |
|
|
(20,137 |
) |
|
|
9,990 |
|
Corporate and Other expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
20,137 |
|
|
|
20,137 |
|
Adjusted
Property EBITDA |
$ |
(29,558 |
) |
|
$ |
1,844 |
|
|
$ |
40,048 |
|
|
$ |
(5,189 |
) |
|
$ |
29,412 |
|
|
$ |
(6,430 |
) |
|
$ |
- |
|
|
$ |
30,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Melco Resorts & Entertainment Limited and
Subsidiaries |
Reconciliation of Net Loss Attributable to Melco Resorts
& Entertainment Limited to |
Adjusted EBITDA and Adjusted Property EBITDA
(Unaudited) |
(In thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Net loss attributable to Melco Resorts & Entertainment
Limited |
$ |
(183,284 |
) |
|
$ |
(232,908 |
) |
Net loss attributable to noncontrolling interests |
|
(38,560 |
) |
|
|
(44,601 |
) |
Net loss |
|
(221,844 |
) |
|
|
(277,509 |
) |
Income tax expense |
|
1,973 |
|
|
|
664 |
|
Interest and other non-operating expenses, net |
|
83,974 |
|
|
|
114,049 |
|
Property charges and other |
|
8,601 |
|
|
|
5,724 |
|
Share-based compensation |
|
16,971 |
|
|
|
10,017 |
|
Depreciation and amortization |
|
141,292 |
|
|
|
141,099 |
|
Development costs |
|
- |
|
|
|
3,519 |
|
Pre-opening costs |
|
2,355 |
|
|
|
997 |
|
Land rent to Belle Corporation |
|
658 |
|
|
|
805 |
|
Payments to the Philippine Parties |
|
7,215 |
|
|
|
10,625 |
|
Adjusted EBITDA |
|
41,195 |
|
|
|
9,990 |
|
Corporate and Other expenses |
|
14,821 |
|
|
|
20,137 |
|
Adjusted Property EBITDA |
$ |
56,016 |
|
|
$ |
30,127 |
|
|
|
|
|
|
|
|
Melco Resorts & Entertainment Limited and
Subsidiaries |
|
Supplemental Data Schedule |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2022 |
|
2021 |
Room
Statistics(3): |
|
|
|
|
|
|
|
|
|
|
Altira Macau |
|
|
|
|
|
Average daily rate(4) |
$ |
105 |
|
|
$ |
121 |
|
|
|
Occupancy per available room |
|
47 |
% |
|
|
46 |
% |
|
|
Revenue per available room(5) |
$ |
49 |
|
|
$ |
56 |
|
|
|
|
|
|
|
|
City of Dreams |
|
|
|
|
|
Average daily rate(4) |
$ |
210 |
|
|
$ |
195 |
|
|
|
Occupancy per available room |
|
40 |
% |
|
|
58 |
% |
|
|
Revenue per available room(5) |
$ |
84 |
|
|
$ |
112 |
|
|
|
|
|
|
|
|
Studio City |
|
|
|
|
|
Average daily rate(4) |
$ |
127 |
|
|
$ |
121 |
|
|
|
Occupancy per available room |
|
33 |
% |
|
|
50 |
% |
|
|
Revenue per available room(5) |
$ |
41 |
|
|
$ |
60 |
|
|
|
|
|
|
|
|
City of Dreams Manila |
|
|
|
|
|
Average daily rate(4) |
$ |
192 |
|
|
$ |
130 |
|
|
|
Occupancy per available room |
|
91 |
% |
|
|
70 |
% |
|
|
Revenue per available room(5) |
$ |
176 |
|
|
$ |
90 |
|
|
|
|
|
|
|
Other
Information(6): |
|
|
|
|
|
|
|
|
|
|
Altira Macau |
|
|
|
|
|
Average number of table games |
|
98 |
|
|
|
102 |
|
|
|
Average number of gaming machines |
|
132 |
|
|
|
114 |
|
|
|
Table games win per unit per day(7) |
$ |
1,329 |
|
|
$ |
2,992 |
|
|
|
Gaming machines win per unit per day(8) |
$ |
173 |
|
|
$ |
229 |
|
|
|
|
|
|
|
|
City of Dreams |
|
|
|
|
|
Average number of table games |
|
460 |
|
|
|
508 |
|
|
|
Average number of gaming machines |
|
685 |
|
|
|
509 |
|
|
|
Table games win per unit per day(7) |
$ |
6,408 |
|
|
$ |
7,205 |
|
|
|
Gaming machines win per unit per day(8) |
$ |
211 |
|
|
$ |
366 |
|
|
|
|
|
|
|
|
Studio City |
|
|
|
|
|
Average number of table games |
|
277 |
|
|
|
292 |
|
|
|
Average number of gaming machines |
|
712 |
|
|
|
604 |
|
|
|
Table games win per unit per day(7) |
$ |
2,725 |
|
|
$ |
3,476 |
|
|
|
Gaming machines win per unit per day(8) |
$ |
111 |
|
|
$ |
130 |
|
|
|
|
|
|
|
|
City of Dreams Manila |
|
|
|
|
|
Average number of table games |
|
294 |
|
|
|
294 |
|
|
|
Average number of gaming machines |
|
2,248 |
|
|
|
2,162 |
|
|
|
Table games win per unit per day(7) |
$ |
1,696 |
|
|
$ |
2,076 |
|
|
|
Gaming machines win per unit per day(8) |
$ |
229 |
|
|
$ |
172 |
|
|
|
|
|
|
|
|
Cyprus Operations |
|
|
|
|
|
Average number of table games |
|
35 |
|
|
|
- |
|
|
|
Average number of gaming machines |
|
457 |
|
|
|
- |
|
|
|
Table games win per unit per day(7) |
$ |
1,380 |
|
|
$ |
- |
|
|
|
Gaming machines win per unit per day(8) |
$ |
292 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) |
Room statistics exclude rooms that were temporarily closed or
provided to staff members due to the COVID-19 outbreak |
(4) |
Average daily rate is calculated by dividing total room revenues
including complimentary rooms (less service charges, if any) by
total occupied rooms including complimentary rooms |
(5) |
Revenue per available room is calculated by dividing total room
revenues including complimentary rooms (less service charges, if
any) by total rooms available |
(6) |
Table games and gaming machines that were not in operation due to
government mandated closures or social distancing measures in
relation to the COVID-19 outbreak have been excluded |
(7) |
Table games win per unit per day is shown before discounts,
commissions, non-discretionary incentives (including our
point-loyalty programs) and allocating casino revenues related to
goods and services provided to gaming patrons on a complimentary
basis |
(8) |
Gaming machines win per unit per day is shown before
non-discretionary incentives (including our point-loyalty programs)
and allocating casino revenues related to goods and services
provided to gaming patrons on a complimentary basis |
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