Melco Announces Unaudited Second Quarter 2021 Earnings
Melco Resorts & Entertainment Limited (Nasdaq: MLCO) reported a significant revenue increase of approximately 222% to US$566.4 million in Q2 2021, up from US$175.9 million in Q2 2020. The operating loss shrank to US$128.1 million compared to US$370.8 million a year earlier. Adjusted Property EBITDA totaled US$79.1 million, versus a negative US$156.3 million in Q2 2020. The net loss was US$185.7 million, or US$0.39 per ADS, improving from a net loss of US$368.1 million, or US$0.77 per ADS, in the same quarter last year. The company remains optimistic about the Macau market recovery amid COVID-19 challenges.
- Total operating revenues increased by 222% to US$566.4 million.
- Adjusted Property EBITDA improved to US$79.1 million from negative US$156.3 million.
- Operating loss reduced to US$128.1 million from US$370.8 million.
- Net loss improved to US$185.7 million from US$368.1 million.
- Total net non-operating expenses reached US$92.1 million, mainly interest expenses.
- Operating loss remains significant despite improvements in revenue.
MACAU, July 27, 2021 (GLOBE NEWSWIRE) -- 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 second quarter of 2021.
Total operating revenues for the second quarter of 2021 were US
Operating loss for the second quarter of 2021 was US
Melco generated Adjusted Property EBITDA(1) of US
Net loss attributable to Melco Resorts & Entertainment Limited for the second quarter of 2021 was US
Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “We are pleased to see a progressive recovery in business levels during the second quarter of 2021 in our integrated resorts, despite the challenges that we have faced as a result of the COVID-19 pandemic and related travel restrictions. Mass and premium mass market players have proven to be the primary drivers of the recovery this quarter and are expected to be going forward as we continue to dedicate our resources toward these segments of the market. We remain optimistic on our Macau market outlook, especially as Macau explores scenarios for more flexible travel with other cities in the Greater Bay Area.
“We applaud the Macau government’s measured approach to reopening the border and schemes to boost the economy and support local jobs. In this regard, we continue to prioritize epidemic prevention measures to keep our colleagues and customers safe, while working collaboratively with small and medium enterprise partners to contribute to Macau’s sustainable development and economic recovery. Through the efforts of the government, we are fortunate that vaccines are readily available. With colleague immunity established as a key company objective to ensure a safe environment for colleagues, guests and the community, Melco is supporting the government’s efforts towards community-wide vaccination. We have earmarked close to MOP 16 million towards a special “Get the Jab” immunity incentive program to encourage our colleagues to become fully vaccinated. To date, almost
“Melco remains committed to its investment program in Macau and abroad. In Macau, construction on the expansion of Studio City is progressing. In May, the Macau government granted an extension to the development period for the construction of Studio City Phase 2 to December 27, 2022. Studio City Phase 2 will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE space. On May 22, 2021, the Studio City Water Park officially opened, welcoming guests to one of the most exciting water adventures in the region. At City of Dreams Macau, our facility upgrade works are ongoing, where we are adding more suites and guestrooms to Morpheus while the Countdown was closed at the end of March 2021 for a full renovation. The newly renovated Nϋwa tower re-opened at the end of March 2021.
“In June and July 2021, Melco Resorts Finance and Studio City Finance successfully listed US
“In Europe, the development of City of Dreams Mediterranean continues, with a target opening in summer 2022. The project, upon completion, will be Europe’s largest integrated resort with approximately 500 luxury hotel rooms, approximately 10,000 square meters of MICE space, an outdoor amphitheater, a family adventure park, and a variety of fine-dining outlets and luxury retail.
“Turning to Japan, we remain committed to bringing a world-leading integrated resort there, and continue to pursue opportunities within the market where we remain actively engaged with our partners. COVID continues to present challenges for the country in terms of process timing and travel, but the development of the integrated resorts industry in Japan has continued to move forward. We remain convinced that Japan represents the best potential new gaming market globally and that the quality of our assets and our focus on the premium segment is a great fit for the country’s tourism development. We remain patient and continue to maintain our disciplined approach with respect to all development activities, including in Japan.
“Our sustainability strategy is a key pillar of our operations. Melco published its 2020 Sustainability Report – Above & Beyond <link> in May. We are proud to highlight our progress made towards carbon neutrality, inspirations to our local community, improvements to supply chain sustainability, and reinforcement of high ethical standards.”
City of Dreams Second Quarter Results
For the quarter ended June 30, 2021, total operating revenues at City of Dreams were US
Rolling chip volume was US
Mass market table games drop increased to US
Gaming machine handle for the second quarter of 2021 was US
Total non-gaming revenue at City of Dreams in the second quarter of 2021 was US
Altira Macau Second Quarter Results
For the quarter ended June 30, 2021, total operating revenues at Altira Macau were US
Rolling chip volume was US
In the mass market table games segment, drop was US
Gaming machine handle for the second quarter of 2021 was US
Total non-gaming revenue at Altira Macau in the second quarter of 2021 was US
Mocha Clubs Second Quarter Results
Total operating revenues from Mocha Clubs were US
Gaming machine handle for the second quarter of 2021 was US
Studio City Second Quarter Results
For the quarter ended June 30, 2021, total operating revenues at Studio City were US
Studio City’s rolling chip volume was US
Mass market table games drop increased to US
Gaming machine handle for the second quarter of 2021 was US
Total non-gaming revenue at Studio City in the second quarter of 2021 was US
City of Dreams Manila Second Quarter Results
For the quarter ended June 30, 2021, total operating revenues at City of Dreams Manila were US
City of Dreams Manila’s rolling chip volume was US
Mass market table games drop increased to US
Gaming machine handle for the second quarter of 2021 was US
Total non-gaming revenue at City of Dreams Manila in the second quarter of 2021 was US
Cyprus Operations Second Quarter Results
The Company is licensed to operate a temporary casino, the first casino in the Republic of Cyprus, and four satellite casinos. The temporary casino and three satellite casinos resumed operations in mid-May under limited capacities following government restrictions and guidelines. 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.
For the quarter ended June 30, 2021, total operating revenues at Cyprus Casinos were US
Rolling chip volume was US
Mass market table games drop was US
Gaming machine handle for the second quarter of 2021 was US
Other Factors Affecting Earnings
Total net non-operating expenses for the second quarter of 2021 were US
Depreciation and amortization costs of US
The negative Adjusted EBITDA for Studio City for the three months ended June 30, 2021 referred above was US
Financial Position and Capital Expenditures
Total cash and bank balances as of June 30, 2021 aggregated to US
Capital expenditures for the second quarter of 2021 were US
Recent Developments
The COVID-19 outbreak continues to have a material effect on our operations, financial position, and prospects during the third quarter of 2021.
Our operations in Macau continue to be impacted by travel bans, restrictions, and quarantine requirements imposed by the governments in Macau, Hong Kong and China, despite the nationwide resumption of issuance of Individual Visit Scheme visas by China in September 2020. Such bans, restrictions and requirements have been, and may continue to be, modified by the relevant authorities from time to time as COVID-19 developments unfold. Additionally, health-related precautionary measures remain in place at our properties in Macau, which could continue to impact visitation and customer spending. We have experienced improvements in our business in Macau during the second quarter, especially due to strong visitation during the May Golden Week holidays. Notwithstanding the resurgence of COVID-19 cases in the Guangdong province in June, which led to tightened travel restrictions for Chinese visitors, visitation has normalized in July month to date.
In the Philippines, City of Dreams Manila remained closed from March 29 to April 30, 2021, under the government imposed enhanced community quarantine measures over Metro Manila and adjacent provinces. On May 1, 2021, City of Dreams Manila reopened operations with limited gaming capacity at
In Cyprus, our casinos were closed from January 1 to May 16, 2021 due to a government mandated lockdown. Our Cyprus casinos resumed operations on May 17, 2021, for the first time in 2021, at limited capacities (which have progressively increased) after the Cyprus government relaxed COVID-19 restrictions.
Construction at both Studio City Phase 2 and City of Dreams Mediterranean has been impacted by the COVID-19 outbreak. The Macau government has granted an extension of the development period from May 31, 2022 to December 27, 2022, and we currently expect to complete construction within the period.
The pace of recovery from COVID-19 related disruptions continues to depend on various future events, such as the successful production, distribution and widespread acceptance of safe and effective vaccines, the development of effective treatments for COVID-19, including for new strains of COVID-19, the duration of travel and visa restrictions as well as customer sentiment and behavior, together with the length of time before customers resume traveling and participating in entertainment and leisure activities at high-density venues and the impact of potential higher unemployment rates, declines in income levels and loss of personal wealth resulting from the COVID-19 outbreak on consumer behavior related to discretionary spending and traveling, all of which remain highly uncertain.
Conference Call Information
Melco Resorts & Entertainment Limited will hold a conference call to discuss its second quarter 2021 financial results on Tuesday, July 27, 2021 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 | 1 844 760 0770 |
| US Toll / International | 1 347 549 4094 |
| HK Toll | 852 3018 8307 |
| HK Toll Free | 800 906 613 |
| Japan Toll | 81 3 4503 6004 |
| Japan Toll Free | 012 092 5482 |
| UK Toll Free | 080 0051 4241 |
| Australia Toll | 61 290 833 216 |
| Australia Toll Free | 1 800 754 642 |
| Philippines Toll Free | 1 800 1612 0312 |
| Passcode | 3969836 |
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 |
| Japan Toll | 81 3 4580 6717 |
| Japan Toll Free | 012 095 9034 |
| Philippines Toll Free | 1 800 1612 0166 |
| Conference ID | 3969836 |
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 pandemic of COVID-19, 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, and (vii) 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, 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/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:
Robin Yuen
Director, Investor Relations
Tel: +852 2598 3619
Email: robinyuen@melco-resorts.com
For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: 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 | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Operating revenues: | |||||||||||||||
| Casino | $ | 478,638 | $ | 147,584 | $ | 912,434 | $ | 860,139 | |||||||
| Rooms | 39,727 | 7,223 | 79,407 | 52,044 | |||||||||||
| Food and beverage | 25,444 | 5,719 | 51,495 | 34,662 | |||||||||||
| Entertainment, retail and other | 22,631 | 15,324 | 42,026 | 40,180 | |||||||||||
| Total operating revenues | 566,440 | 175,850 | 1,085,362 | 987,025 | |||||||||||
| Operating costs and expenses: | |||||||||||||||
| Casino | (369,826 | ) | (215,789 | ) | (736,755 | ) | (779,630 | ) | |||||||
| Rooms | (12,839 | ) | (8,383 | ) | (25,678 | ) | (26,324 | ) | |||||||
| Food and beverage | (23,686 | ) | (15,430 | ) | (47,808 | ) | (47,660 | ) | |||||||
| Entertainment, retail and other | (8,294 | ) | (15,213 | ) | (15,998 | ) | (35,537 | ) | |||||||
| General and administrative | (106,230 | ) | (113,932 | ) | (214,390 | ) | (245,229 | ) | |||||||
| Payments to the Philippine Parties | (6,468 | ) | 2,771 | (17,093 | ) | (4,935 | ) | ||||||||
| Pre-opening costs | (1,127 | ) | (226 | ) | (2,124 | ) | (621 | ) | |||||||
| Development costs | (3,812 | ) | (6,372 | ) | (7,331 | ) | (19,802 | ) | |||||||
| Amortization of gaming subconcession | (14,341 | ) | (14,363 | ) | (28,683 | ) | (28,686 | ) | |||||||
| Amortization of land use rights | (5,717 | ) | (5,726 | ) | (11,434 | ) | (11,435 | ) | |||||||
| Depreciation and amortization | (126,889 | ) | (135,085 | ) | (247,929 | ) | (277,318 | ) | |||||||
| Property charges and other | (15,268 | ) | (18,892 | ) | (20,992 | ) | (30,564 | ) | |||||||
| Total operating costs and expenses | (694,497 | ) | (546,640 | ) | (1,376,215 | ) | (1,507,741 | ) | |||||||
| Operating loss | (128,057 | ) | (370,790 | ) | (290,853 | ) | (520,716 | ) | |||||||
| Non-operating income (expenses): | |||||||||||||||
| Interest income | 1,556 | 1,153 | 3,581 | 2,295 | |||||||||||
| Interest expenses, net of amounts capitalized | (87,067 | ) | (80,269 | ) | (177,709 | ) | (158,424 | ) | |||||||
| Other financing costs | (3,993 | ) | (1,929 | ) | (6,480 | ) | (3,173 | ) | |||||||
| Foreign exchange (losses) gains, net | (3,590 | ) | (2,907 | ) | 1,609 | (6,218 | ) | ||||||||
| Other income (expenses), net | 958 | 27,590 | 1,631 | (151,807 | ) | ||||||||||
| Loss on extinguishment of debt | - | (1,236 | ) | (28,817 | ) | (1,236 | ) | ||||||||
| Costs associated with debt modification | - | (310 | ) | - | (310 | ) | |||||||||
| Total non-operating expenses, net | (92,136 | ) | (57,908 | ) | (206,185 | ) | (318,873 | ) | |||||||
| Loss before income tax | (220,193 | ) | (428,698 | ) | (497,038 | ) | (839,589 | ) | |||||||
| Income tax (expense) credit | (327 | ) | 1,886 | (991 | ) | 6,726 | |||||||||
| Net loss | (220,520 | ) | (426,812 | ) | (498,029 | ) | (832,863 | ) | |||||||
| Net loss attributable to | |||||||||||||||
| noncontrolling interests | 34,835 | 58,683 | 79,436 | 100,686 | |||||||||||
| Net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited | $ | (185,685 | ) | $ | (368,129 | ) | $ | (418,593 | ) | $ | (732,177 | ) | |||
| Net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited per share: | |||||||||||||||
| Basic | $ | (0.129 | ) | $ | (0.257 | ) | $ | (0.292 | ) | $ | (0.511 | ) | |||
| Diluted | $ | (0.129 | ) | $ | (0.257 | ) | $ | (0.292 | ) | $ | (0.511 | ) | |||
| Net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited per ADS: | |||||||||||||||
| Basic | $ | (0.387 | ) | $ | (0.772 | ) | $ | (0.875 | ) | $ | (1.533 | ) | |||
| Diluted | $ | (0.387 | ) | $ | (0.772 | ) | $ | (0.875 | ) | $ | (1.533 | ) | |||
| Weighted average shares outstanding | |||||||||||||||
| used in net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited | |||||||||||||||
| per share calculation: | |||||||||||||||
| Basic | 1,437,822,956 | 1,430,748,936 | 1,435,071,657 | 1,433,255,599 | |||||||||||
| Diluted | 1,437,822,956 | 1,430,748,936 | 1,435,071,657 | 1,433,255,599 | |||||||||||
| Melco Resorts & Entertainment Limited and Subsidiaries | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (In thousands of U.S. dollars, except share and per share data) | |||||||
| June 30, | December 31, | ||||||
| 2021 | 2020 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,512,385 | $ | 1,755,351 | |||
| Bank deposits with original maturities over three months | 298,666 | - | |||||
| Restricted cash | 274 | 13 | |||||
| Accounts receivable, net | 76,849 | 129,619 | |||||
| Amounts due from affiliated companies | 287 | 765 | |||||
| Inventories | 36,675 | 37,277 | |||||
| Prepaid expenses and other current assets | 108,051 | 85,798 | |||||
| Assets held for sales | 3,373 | - | |||||
| Total current assets | 2,036,560 | 2,008,823 | |||||
| Property and equipment, net | 5,768,686 | 5,681,268 | |||||
| Gaming subconcession, net | 55,870 | 84,663 | |||||
| Intangible assets, net | 55,500 | 58,833 | |||||
| Goodwill | 82,095 | 82,203 | |||||
| Long-term prepayments, deposits and other assets | 236,158 | 284,608 | |||||
| Restricted cash | 131 | 406 | |||||
| Deferred tax assets, net | 6,593 | 6,376 | |||||
| Operating lease right-of-use assets | 81,930 | 92,213 | |||||
| Land use rights, net | 709,190 | 721,574 | |||||
| Total assets | $ | 9,032,713 | $ | 9,020,967 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 9,671 | $ | 9,483 | |||
| Accrued expenses and other current liabilities | 920,353 | 983,865 | |||||
| Income tax payable | 12,548 | 14,164 | |||||
| Operating lease liabilities, current | 26,779 | 27,066 | |||||
| Finance lease liabilities, current | 33,604 | 80,004 | |||||
| Current portion of long-term debt, net | 129 | - | |||||
| Amounts due to affiliated companies | 1,491 | 1,668 | |||||
| Total current liabilities | 1,004,575 | 1,116,250 | |||||
| Long-term debt, net | 6,155,577 | 5,645,391 | |||||
| Other long-term liabilities | 37,621 | 29,213 | |||||
| Deferred tax liabilities, net | 46,044 | 45,952 | |||||
| Operating lease liabilities, non-current | 66,743 | 75,867 | |||||
| Finance lease liabilities, non-current | 374,104 | 270,223 | |||||
| Total liabilities | 7,684,664 | 7,182,896 | |||||
| Shareholders' equity: | |||||||
| Ordinary shares, par value | |||||||
| 1,456,547,942 and 1,456,547,942 shares issued; | |||||||
| 1,437,950,665 and 1,430,965,312 shares outstanding, respectively | 14,565 | 14,565 | |||||
| Treasury shares, at cost; 18,597,277 and 25,582,630 shares, respectively | (88,106 | ) | (121,028 | ) | |||
| Additional paid-in capital | 3,209,461 | 3,207,312 | |||||
| Accumulated other comprehensive losses | (32,610 | ) | (11,332 | ) | |||
| Accumulated losses | (2,405,989 | ) | (1,987,396 | ) | |||
| Total Melco Resorts & Entertainment Limited shareholders’ equity | 697,321 | 1,102,121 | |||||
| Noncontrolling interests | 650,728 | 735,950 | |||||
| Total shareholders' equity | 1,348,049 | 1,838,071 | |||||
| Total liabilities and shareholders' equity | $ | 9,032,713 | $ | 9,020,967 | |||
| 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 | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited | $ | (185,685 | ) | $ | (368,129 | ) | $ | (418,593 | ) | $ | (732,177 | ) | |||
| Pre-opening costs | 1,127 | 226 | 2,124 | 621 | |||||||||||
| Development costs | 3,812 | 6,372 | 7,331 | 19,802 | |||||||||||
| Property charges and other | 15,268 | 18,892 | 20,992 | 30,564 | |||||||||||
| Loss on extinguishment of debt | - | 1,236 | 28,817 | 1,236 | |||||||||||
| Costs associated with debt modification | - | 310 | - | 310 | |||||||||||
| Income tax impact on adjustments | (688 | ) | (1,491 | ) | (1,394 | ) | (3,823 | ) | |||||||
| Noncontrolling interests impact on adjustments | (2,296 | ) | (129 | ) | (15,745 | ) | (2,356 | ) | |||||||
| Adjusted net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited | $ | (168,462 | ) | $ | (342,713 | ) | $ | (376,468 | ) | $ | (685,823 | ) | |||
| Adjusted net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited per share: | |||||||||||||||
| Basic | $ | (0.117 | ) | $ | (0.240 | ) | $ | (0.262 | ) | $ | (0.479 | ) | |||
| Diluted | $ | (0.117 | ) | $ | (0.240 | ) | $ | (0.262 | ) | $ | (0.479 | ) | |||
| Adjusted net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited per ADS: | |||||||||||||||
| Basic | $ | (0.351 | ) | $ | (0.719 | ) | $ | (0.787 | ) | $ | (1.436 | ) | |||
| Diluted | $ | (0.351 | ) | $ | (0.719 | ) | $ | (0.787 | ) | $ | (1.436 | ) | |||
| Weighted average shares outstanding | |||||||||||||||
| used in adjusted net loss attributable to | |||||||||||||||
| Melco Resorts & Entertainment Limited | |||||||||||||||
| per share calculation: | |||||||||||||||
| Basic | 1,437,822,956 | 1,430,748,936 | 1,435,071,657 | 1,433,255,599 | |||||||||||
| Diluted | 1,437,822,956 | 1,430,748,936 | 1,435,071,657 | 1,433,255,599 | |||||||||||
| 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 June 30, 2021 | |||||||||||||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | Studio City | City of Dreams Manila | Cyprus Operations | Corporate and Other | Total | ||||||||||||||||||||||||
| Operating (loss) income | $ | (24,659 | ) | $ | 3,782 | $ | 5,097 | $ | (40,021 | ) | $ | (12,417 | ) | $ | (4,649 | ) | $ | (55,190 | ) | $ | (128,057 | ) | |||||||||
| Payments to the Philippine Parties | - | - | - | - | 6,468 | - | - | 6,468 | |||||||||||||||||||||||
| Land rent to Belle Corporation | - | - | - | - | 702 | - | - | 702 | |||||||||||||||||||||||
| Pre-opening costs | - | - | 2 | 490 | - | 635 | - | 1,127 | |||||||||||||||||||||||
| Development costs | - | - | - | - | - | - | 3,812 | 3,812 | |||||||||||||||||||||||
| Depreciation and amortization | 5,501 | 1,592 | 64,116 | 33,949 | 16,953 | 3,174 | 21,662 | 146,947 | |||||||||||||||||||||||
| Share-based compensation | 133 | 37 | 2,052 | 485 | 315 | 43 | 9,305 | 12,370 | |||||||||||||||||||||||
| Property charges and other | 1,687 | 171 | 8,259 | 3,925 | 1,229 | - | (3 | ) | 15,268 | ||||||||||||||||||||||
| Adjusted EBITDA | (17,338 | ) | 5,582 | 79,526 | (1,172 | ) | 13,250 | (797 | ) | (20,414 | ) | 58,637 | |||||||||||||||||||
| Corporate and Other expenses | - | - | - | - | - | - | 20,414 | 20,414 | |||||||||||||||||||||||
| Adjusted Property EBITDA | $ | (17,338 | ) | $ | 5,582 | $ | 79,526 | $ | (1,172 | ) | $ | 13,250 | $ | (797 | ) | $ | - | $ | 79,051 | ||||||||||||
| Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | Studio City | City of Dreams Manila | Cyprus Operations | Corporate and Other | Total | ||||||||||||||||||||||||
| Operating (loss) income | $ | (25,382 | ) | $ | 2,543 | $ | (141,229 | ) | $ | (86,621 | ) | $ | (37,539 | ) | $ | (9,213 | ) | $ | (73,349 | ) | $ | (370,790 | ) | ||||||||
| Payments to the Philippine Parties | - | - | - | - | (2,771 | ) | - | - | (2,771 | ) | |||||||||||||||||||||
| Land rent to Belle Corporation | - | - | - | - | 785 | - | - | 785 | |||||||||||||||||||||||
| Pre-opening costs | - | - | (50 | ) | 28 | - | 248 | - | 226 | ||||||||||||||||||||||
| Development costs | - | - | - | - | - | - | 6,372 | 6,372 | |||||||||||||||||||||||
| Depreciation and amortization | 5,269 | 1,833 | 63,159 | 43,811 | 16,354 | 2,821 | 21,927 | 155,174 | |||||||||||||||||||||||
| Share-based compensation | 111 | 36 | 1,391 | 539 | 408 | 22 | 9,969 | 12,476 | |||||||||||||||||||||||
| Property charges and other | 564 | - | 6,387 | (99 | ) | 203 | 132 | 11,705 | 18,892 | ||||||||||||||||||||||
| Adjusted EBITDA | (19,438 | ) | 4,412 | (70,342 | ) | (42,342 | ) | (22,560 | ) | (5,990 | ) | (23,376 | ) | (179,636 | ) | ||||||||||||||||
| Corporate and Other expenses | - | - | - | - | - | - | 23,376 | 23,376 | |||||||||||||||||||||||
| Adjusted Property EBITDA | $ | (19,438 | ) | $ | 4,412 | $ | (70,342 | ) | $ | (42,342 | ) | $ | (22,560 | ) | $ | (5,990 | ) | $ | - | $ | (156,260 | ) | |||||||||
| Melco Resorts & Entertainment Limited and Subsidiaries | |||||||||||||||||||||||||||||||
| Reconciliation of Operating Loss to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited) | |||||||||||||||||||||||||||||||
| (In thousands of U.S. dollars) | |||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | Studio City | City of Dreams Manila | Cyprus Operations | Corporate and Other | Total | ||||||||||||||||||||||||
| Operating (loss) income | $ | (59,883 | ) | $ | 3,945 | $ | (16,482 | ) | $ | (79,362 | ) | $ | (15,664 | ) | $ | (14,916 | ) | $ | (108,491 | ) | $ | (290,853 | ) | ||||||||
| Payments to the Philippine Parties | - | - | - | - | 17,093 | - | - | 17,093 | |||||||||||||||||||||||
| Land rent to Belle Corporation | - | - | - | - | 1,507 | - | - | 1,507 | |||||||||||||||||||||||
| Pre-opening costs | - | - | 195 | 733 | - | 1,196 | - | 2,124 | |||||||||||||||||||||||
| Development costs | - | - | - | - | - | - | 7,331 | 7,331 | |||||||||||||||||||||||
| Depreciation and amortization | 10,976 | 3,221 | 123,394 | 67,566 | 33,343 | 6,381 | 43,165 | 288,046 | |||||||||||||||||||||||
| Share-based compensation | 253 | 72 | 2,910 | 837 | 781 | 112 | 17,422 | 22,387 | |||||||||||||||||||||||
| Property charges and other | 1,758 | 188 | 9,557 | 3,865 | 5,602 | - | 22 | 20,992 | |||||||||||||||||||||||
| Adjusted EBITDA | (46,896 | ) | 7,426 | 119,574 | (6,361 | ) | 42,662 | (7,227 | ) | (40,551 | ) | 68,627 | |||||||||||||||||||
| Corporate and Other expenses | - | - | - | - | - | - | 40,551 | 40,551 | |||||||||||||||||||||||
| Adjusted Property EBITDA | $ | (46,896 | ) | $ | 7,426 | $ | 119,574 | $ | (6,361 | ) | $ | 42,662 | $ | (7,227 | ) | $ | - | $ | 109,178 | ||||||||||||
| Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | Studio City | City of Dreams Manila | Cyprus Operations | Corporate and Other | Total | ||||||||||||||||||||||||
| Operating (loss) income | $ | (40,082 | ) | $ | 852 | $ | (148,106 | ) | $ | (143,731 | ) | $ | (33,251 | ) | $ | (9,255 | ) | $ | (147,143 | ) | $ | (520,716 | ) | ||||||||
| Payments to the Philippine Parties | - | - | - | - | 4,935 | - | - | 4,935 | |||||||||||||||||||||||
| Land rent to Belle Corporation | - | - | - | - | 1,562 | - | - | 1,562 | |||||||||||||||||||||||
| Pre-opening costs | 37 | - | (50 | ) | 56 | - | 578 | - | 621 | ||||||||||||||||||||||
| Development costs | - | - | - | - | - | - | 19,802 | 19,802 | |||||||||||||||||||||||
| Depreciation and amortization | 10,679 | 3,609 | 126,510 | 86,644 | 32,820 | 5,658 | 51,519 | 317,439 | |||||||||||||||||||||||
| Share-based compensation | 226 | 5 | 2,448 | 932 | 726 | 101 | 16,646 | 21,084 | |||||||||||||||||||||||
| Property charges and other | 636 | 26 | 9,808 | 4,343 | 203 | 132 | 15,416 | 30,564 | |||||||||||||||||||||||
| Adjusted EBITDA | (28,504 | ) | 4,492 | (9,390 | ) | (51,756 | ) | 6,995 | (2,786 | ) | (43,760 | ) | (124,709 | ) | |||||||||||||||||
| Corporate and Other expenses | - | - | - | - | - | - | 43,760 | 43,760 | |||||||||||||||||||||||
| Adjusted Property EBITDA | $ | (28,504 | ) | $ | 4,492 | $ | (9,390 | ) | $ | (51,756 | ) | $ | 6,995 | $ | (2,786 | ) | $ | - | $ | (80,949 | ) | ||||||||||
| 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 | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited | $ | (185,685 | ) | $ | (368,129 | ) | $ | (418,593 | ) | $ | (732,177 | ) | |||
| Net loss attributable to noncontrolling interests | (34,835 | ) | (58,683 | ) | (79,436 | ) | (100,686 | ) | |||||||
| Net loss | (220,520 | ) | (426,812 | ) | (498,029 | ) | (832,863 | ) | |||||||
| Income tax expense (credit) | 327 | (1,886 | ) | 991 | (6,726 | ) | |||||||||
| Interest and other non-operating expenses, net | 92,136 | 57,908 | 206,185 | 318,873 | |||||||||||
| Property charges and other | 15,268 | 18,892 | 20,992 | 30,564 | |||||||||||
| Share-based compensation | 12,370 | 12,476 | 22,387 | 21,084 | |||||||||||
| Depreciation and amortization | 146,947 | 155,174 | 288,046 | 317,439 | |||||||||||
| Development costs | 3,812 | 6,372 | 7,331 | 19,802 | |||||||||||
| Pre-opening costs | 1,127 | 226 | 2,124 | 621 | |||||||||||
| Land rent to Belle Corporation | 702 | 785 | 1,507 | 1,562 | |||||||||||
| Payments to the Philippine Parties | 6,468 | (2,771 | ) | 17,093 | 4,935 | ||||||||||
| Adjusted EBITDA | 58,637 | (179,636 | ) | 68,627 | (124,709 | ) | |||||||||
| Corporate and Other expenses | 20,414 | 23,376 | 40,551 | 43,760 | |||||||||||
| Adjusted Property EBITDA | $ | 79,051 | $ | (156,260 | ) | $ | 109,178 | $ | (80,949 | ) | |||||
| Melco Resorts & Entertainment Limited and Subsidiaries | |||||||||||||||||
| Supplemental Data Schedule | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Room Statistics(3): | |||||||||||||||||
| Altira Macau | |||||||||||||||||
| Average daily rate (4) | $ | 105 | $ | 165 | $ | 113 | $ | 176 | |||||||||
| Occupancy per available room | 60 | % | 21 | % | 53 | % | 39 | % | |||||||||
| Revenue per available room (5) | $ | 63 | $ | 35 | $ | 59 | $ | 69 | |||||||||
| City of Dreams | |||||||||||||||||
| Average daily rate (4) | $ | 206 | $ | 279 | $ | 201 | $ | 236 | |||||||||
| Occupancy per available room | 63 | % | 6 | % | 60 | % | 28 | % | |||||||||
| Revenue per available room (5) | $ | 129 | $ | 18 | $ | 121 | $ | 66 | |||||||||
| Studio City | |||||||||||||||||
| Average daily rate (4) | $ | 121 | $ | 160 | $ | 121 | $ | 139 | |||||||||
| Occupancy per available room | 61 | % | 5 | % | 55 | % | 24 | % | |||||||||
| Revenue per available room (5) | $ | 74 | $ | 8 | $ | 67 | $ | 34 | |||||||||
| City of Dreams Manila | |||||||||||||||||
| Average daily rate (4) | $ | 73 | $ | 314 | $ | 108 | $ | 204 | |||||||||
| Occupancy per available room | 63 | % | 26 | % | 67 | % | 85 | % | |||||||||
| Revenue per available room (5) | $ | 46 | $ | 81 | $ | 72 | $ | 174 | |||||||||
| Other Information(6): | |||||||||||||||||
| Altira Macau | |||||||||||||||||
| Average number of table games | 102 | 101 | 102 | 94 | |||||||||||||
| Average number of gaming machines | 115 | 91 | 114 | 114 | |||||||||||||
| Table games win per unit per day (7) | $ | 2,765 | $ | 2,654 | $ | 2,878 | $ | 6,881 | |||||||||
| Gaming machines win per unit per day (8) | $ | 200 | $ | 186 | $ | 214 | $ | 133 | |||||||||
| City of Dreams | |||||||||||||||||
| Average number of table games | 511 | 515 | 510 | 475 | |||||||||||||
| Average number of gaming machines | 492 | 398 | 500 | 473 | |||||||||||||
| Table games win per unit per day (7) | $ | 8,306 | $ | 2,936 | $ | 7,761 | $ | 8,594 | |||||||||
| Gaming machines win per unit per day (8) | $ | 331 | $ | 40 | $ | 349 | $ | 268 | |||||||||
| Studio City | |||||||||||||||||
| Average number of table games | 291 | 291 | 291 | 273 | |||||||||||||
| Average number of gaming machines | 609 | 419 | 606 | 570 | |||||||||||||
| Table games win per unit per day (7) | $ | 3,709 | $ | 183 | $ | 3,593 | $ | 3,086 | |||||||||
| Gaming machines win per unit per day (8) | $ | 145 | $ | 48 | $ | 137 | $ | 124 | |||||||||
| City of Dreams Manila | |||||||||||||||||
| Average number of table games | 298 | 301 | 296 | 299 | |||||||||||||
| Average number of gaming machines | 2,248 | 2,273 | 2,197 | 2,289 | |||||||||||||
| Table games win per unit per day (7) | $ | 1,954 | $ | 1,506 | $ | 2,026 | $ | 3,795 | |||||||||
| Gaming machines win per unit per day (8) | $ | 161 | $ | 59 | $ | 168 | $ | 183 | |||||||||
| Cyprus Operations | |||||||||||||||||
| Average number of table games | 32 | 25 | 32 | 35 | |||||||||||||
| Average number of gaming machines | 405 | 281 | 405 | 419 | |||||||||||||
| Table games win per unit per day (7) | $ | 1,513 | $ | 1,008 | $ | 1,513 | $ | 1,800 | |||||||||
| Gaming machines win per unit per day (8) | $ | 433 | $ | 594 | $ | 433 | $ | 423 | |||||||||
| (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 |
FAQ
What were Melco Resorts' second quarter 2021 financial results?
How did Melco's operating loss change in Q2 2021?
What is the outlook for Melco Resorts in the Macau market?
What is Melco's Adjusted Property EBITDA for Q2 2021?
What are the key drivers for Melco's recovery in Q2 2021?
