Melco Announces Unaudited Third Quarter 2022 Earnings
Melco Resorts & Entertainment Limited (Nasdaq: MLCO) reported a significant decline in Q3 2022 financial results, with total operating revenues of US$241.8 million, down 46% from US$446.4 million in Q3 2021. The loss is attributed to COVID-19-related casino closures and travel restrictions. The company recorded a negative Adjusted Property EBITDA of US$34.9 million and an operating loss of US$198.5 million. Net loss attributable to Melco was US$243.8 million, or US$0.53 per ADS. Despite challenges, there is cautious optimism for an increase in tourism following recent easing of travel restrictions.
- Cash and bank balances of US$1.57 billion provide substantial liquidity.
- City of Dreams Manila showed recovery with US$102.6 million in revenues, up from US$52.5 million year-over-year.
- Total operating revenues decreased 46% year-over-year due to COVID-19 restrictions.
- Negative Adjusted Property EBITDA of US$34.9 million, compared to positive EBITDA of US$31.9 million in 2021.
- Operating loss widened to US$198.5 million, up from US$182.2 million in the prior year.
MACAU, Nov. 02, 2022 (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 third quarter of 2022.
Total operating revenues for the third quarter of 2022 were US
Melco generated negative Adjusted Property EBITDA(1) of US
Operating loss for the third quarter of 2022 was US
Net loss attributable to Melco Resorts & Entertainment Limited for the third quarter of 2022 was US
Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “Our results for the third quarter of 2022 were impacted by the casino closures in July and the travel restrictions imposed across mainland China and Macau. In July, the Macau government implemented preventative measures against the pandemic and our casinos were closed for 12 days. Following the re-opening, the operating environment remained challenging given the continuing tight travel restrictions, but we are encouraged by the recent re-opening of Macau to international tourists from designated countries as well as the increase in visitation over the October Golden Week. We are also cautiously optimistic that the granting of e-visas and group visas, which commenced on November 1, 2022, will lead to a gradual increase in visitation.
“We submitted our proposal to the public tender for the award of new gaming concessions on September 14, 2022 and it has been a smooth and transparent process. We fully support the Macau government’s initiatives to further develop Macau as Asia’s premier destination for international tourism. Our integrated resorts offer a wide range of unique non-gaming amenities, and we plan to leverage our experience to provide additional tourist attractions in Macau. Our proposal reinforces our commitment to Macau, and we look forward to playing a leadership role in partnering with the Macau government to execute on its vision.
“In the Philippines, gaming volumes continue to track towards pre-pandemic levels. We expect to see further growth as travel restrictions around Asia continue to be lifted and travel returns to more normal levels. Gaming volumes in Cyprus exceeded pre-pandemic levels driven by further easing of COVID-19 related restrictions in the third quarter.
“In respect to our development projects, the construction of Studio City Phase 2 is progressing on schedule. We will monitor the market closely to determine the appropriate time to open and currently anticipate the opening to be conducted in stages beginning in the second quarter of 2023. In Cyprus, as we have previously announced, the City of Dreams Mediterranean project is expected to open in the second quarter of 2023, subject to regulatory approvals.
“I am pleased to report that we are making appreciable progress to reach our 2030 goals in environmental sustainability. The energy-efficiency measures that have been progressively adopted at our properties in Macau and Manila since 2018 have resulted in annualized savings of over 46.8 million kWh, equivalent to energy savings in over 4,000 homes. We continue to strive to reduce single-use plastic in our operations with the NORDAQ water filtration and bottling system which is now operational in all of our properties in Macau and Manila. In addition, we are undergoing an extensive plastic inventory exercise to report and continue to implement plans to reduce problematic plastic usage.”
City of Dreams Third Quarter Results
For the quarter ended September 30, 2022, total operating revenues at City of Dreams were US
Rolling chip volume was US
Mass market table games drop decreased to US
Gaming machine handle for the third quarter of 2022 was US
Total non-gaming revenue at City of Dreams in the third quarter of 2022 was US
Altira Macau Third Quarter Results
For the quarter ended September 30, 2022, total operating revenues at Altira Macau were US
In the mass market table games segment, drop was US
Gaming machine handle for the third quarter of 2022 was US
Total non-gaming revenue at Altira Macau in the third quarter of 2022 was US
Mocha and Other Third Quarter Results
Total operating revenues from Mocha and Other were US
Mass market table games drop was US
Gaming machine handle for the third quarter of 2022 was US
Studio City Third Quarter Results
For the quarter ended September 30, 2022, total operating revenues at Studio City were US
Studio City’s rolling chip volume was US
Mass market table games drop decreased to US
Gaming machine handle for the third quarter of 2022 was US
Total non-gaming revenue at Studio City in the third quarter of 2022 was US
City of Dreams Manila Third Quarter Results
For the quarter ended September 30, 2022, 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 third quarter of 2022 was US
Total non-gaming revenue at City of Dreams Manila in the third quarter of 2022 was US
Cyprus Operations Third 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.
Total operating revenues at Cyprus Casinos for the quarter ended September 30, 2022 was US
Rolling chip volume was US
Mass market table games drop was US
Gaming machine handle for the third quarter of 2022 was US
Other Factors Affecting Earnings
Total net non-operating expenses for the third quarter of 2022 were US
Depreciation and amortization costs of US
The negative Adjusted EBITDA for Studio City for the three months ended September 30, 2022 referred to above is US
Financial Position and Capital Expenditures
Total cash and bank balances as of September 30, 2022 aggregated to US
Available liquidity, including cash and undrawn revolving credit facilities, as of September 30, 2022, was US
US
Capital expenditures for the third quarter of 2022 were US
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 fourth quarter of 2022.
On August 2, 2022, the validity of nucleic acid tests to enter Macau was set at 48 hours for entry from Zhuhai and reduced to 24 hours from October 30, 2022. Since September 1, 2022, tourists became eligible to enter Macau without prior approval provided they held passports issued by the 41 countries specified by the Macau government or comply with certain conditions imposed by the Macau government, subject to valid nucleic acid tests, 7-day quarantine at a government designated facility and a 3-day self-monitoring period. On November 1, 2022, China’s National Immigration Administration commenced electronic processing of visa applications for individual or group travel to Macau.
As of May 30, 2022, restrictions for inbound travelers into the Philippines were eased and negative RT-PCR test results no longer required for people fully vaccinated. In addition, as of October 28, 2022, the mandatory wearing of masks in the Philippines has been limited to healthcare facilities, medical transport vehicles and public transport. In Cyprus, as of June 1, 2022, passengers travelling to Cyprus were no longer required to present any sort of vaccination or recovery certificates, nor a negative COVID-19 test result. Furthermore, masks were no longer mandatory other than in healthcare facilities, pharmacies and public transport. Although travel restrictions have eased in the Philippines and Cyprus, the respective governments continue to closely monitor the status.
Uncertainty around COVID-19 outbreaks is expected to continue for at least the remainder of 2022 with travel bans or restrictions, visa restrictions, and quarantine requirements being key factors impacting performance for the year.
Conference Call Information
Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2022 financial results on Wednesday, November 2, 2022 at 8:30 a.m. Eastern Time (or 8:30 p.m. Singapore Time).
To join the conference call, please register in advance using the below Online Registration Link. Upon registering, each participant will receive the dial-in numbers and a unique Personal PIN which can be used to join the conference.
Online Registration Link: https://register.vevent.com/register/BI5c7f384a910b44edb61725cce41316d0
An audio webcast and replay of the conference call will also be available at http://www.melco-resorts.com.
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) risks associated with the newly adopted gaming law in Macau and its implementation by the Macau government and our ability to obtain a new concession under the public tender to be conducted by the Macau government and the terms and conditions of a new concession, if we are granted one, (iii) growth of the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iv) capital and credit market volatility, (v) local and global economic conditions, (vi) our anticipated growth strategies, (vii) gaming authority and other governmental approvals and regulations, 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 Kim
Senior Vice President, Group Treasurer
Tel: +852 2598 3698
Email: jeannykim@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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating revenues: | ||||||||||||||||
| Casino | $ | 181,962 | $ | 373,170 | $ | 808,930 | $ | 1,285,604 | ||||||||
| Rooms | 25,976 | 33,428 | 89,277 | 112,835 | ||||||||||||
| Food and beverage | 17,973 | 20,529 | 62,238 | 72,024 | ||||||||||||
| Entertainment, retail and other | 15,926 | 19,259 | 52,444 | 61,285 | ||||||||||||
| Total operating revenues | 241,837 | 446,386 | 1,012,889 | 1,531,748 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Casino | (173,805 | ) | (297,847 | ) | (685,591 | ) | (1,034,602 | ) | ||||||||
| Rooms | (10,863 | ) | (11,592 | ) | (35,057 | ) | (37,270 | ) | ||||||||
| Food and beverage | (17,279 | ) | (20,967 | ) | (61,091 | ) | (68,775 | ) | ||||||||
| Entertainment, retail and other | (5,145 | ) | (7,110 | ) | (16,836 | ) | (23,108 | ) | ||||||||
| General and administrative | (98,819 | ) | (112,011 | ) | (302,483 | ) | (326,401 | ) | ||||||||
| Payments to the Philippine Parties | (8,417 | ) | (3,176 | ) | (26,878 | ) | (20,269 | ) | ||||||||
| Pre-opening costs | (3,313 | ) | (650 | ) | (8,915 | ) | (2,774 | ) | ||||||||
| Development costs | - | (24,648 | ) | - | (31,979 | ) | ||||||||||
| Amortization of gaming subconcession | (2,844 | ) | (14,307 | ) | (29,932 | ) | (42,990 | ) | ||||||||
| Amortization of land use rights | (5,653 | ) | (5,703 | ) | (16,990 | ) | (17,137 | ) | ||||||||
| Depreciation and amortization | (113,549 | ) | (127,663 | ) | (353,142 | ) | (375,592 | ) | ||||||||
| Property charges and other | (696 | ) | (2,945 | ) | (19,595 | ) | (23,937 | ) | ||||||||
| Total operating costs and expenses | (440,383 | ) | (628,619 | ) | (1,556,510 | ) | (2,004,834 | ) | ||||||||
| Operating loss | (198,546 | ) | (182,233 | ) | (543,621 | ) | (473,086 | ) | ||||||||
| Non-operating income (expenses): | ||||||||||||||||
| Interest income | 8,814 | 1,580 | 17,025 | 5,161 | ||||||||||||
| Interest expenses, net of amounts capitalized | (93,747 | ) | (87,387 | ) | (272,055 | ) | (265,096 | ) | ||||||||
| Other financing costs | (1,755 | ) | (3,473 | ) | (5,439 | ) | (9,953 | ) | ||||||||
| Foreign exchange (losses) gains, net | (505 | ) | 1,441 | 2,857 | 3,050 | |||||||||||
| Other income, net | 1,145 | 741 | 2,713 | 2,372 | ||||||||||||
| Loss on extinguishment of debt | - | - | - | (28,817 | ) | |||||||||||
| Total non-operating expenses, net | (86,048 | ) | (87,098 | ) | (254,899 | ) | (293,283 | ) | ||||||||
| Loss before income tax | (284,594 | ) | (269,331 | ) | (798,520 | ) | (766,369 | ) | ||||||||
| Income tax (expense) credit | (2,028 | ) | 837 | (4,618 | ) | (154 | ) | |||||||||
| Net loss | (286,622 | ) | (268,494 | ) | (803,138 | ) | (766,523 | ) | ||||||||
| Net loss attributable to noncontrolling interests | 42,780 | 35,273 | 124,553 | 114,709 | ||||||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited | $ | (243,842 | ) | $ | (233,221 | ) | $ | (678,585 | ) | $ | (651,814 | ) | ||||
| Net loss attributable to Melco Resorts & Entertainment Limited per share: | ||||||||||||||||
| Basic | $ | (0.176 | ) | $ | (0.162 | ) | $ | (0.481 | ) | $ | (0.454 | ) | ||||
| Diluted | $ | (0.176 | ) | $ | (0.162 | ) | $ | (0.482 | ) | $ | (0.454 | ) | ||||
| Net loss attributable to Melco Resorts & Entertainment Limited per ADS: | ||||||||||||||||
| Basic | $ | (0.528 | ) | $ | (0.487 | ) | $ | (1.444 | ) | $ | (1.362 | ) | ||||
| Diluted | $ | (0.528 | ) | $ | (0.487 | ) | $ | (1.446 | ) | $ | (1.362 | ) | ||||
| Weighted average shares outstanding used in net loss attributable to Melco Resorts & Entertainment Limited per share calculation: | ||||||||||||||||
| Basic | 1,386,720,527 | 1,437,651,448 | 1,409,983,323 | 1,435,941,037 | ||||||||||||
| Diluted | 1,386,720,527 | 1,437,651,448 | 1,409,983,323 | 1,435,941,037 | ||||||||||||
| Melco Resorts & Entertainment Limited and Subsidiaries | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (In thousands of U.S. dollars, except share and per share data) | |||||||
| September 30, | December 31, | ||||||
| 2022 | 2021 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,522,395 | $ | 1,652,890 | |||
| Restricted cash | 50,994 | 285 | |||||
| Accounts receivable, net | 49,591 | 54,491 | |||||
| Receivables from affiliated companies | 211,169 | 384 | |||||
| Inventories | 27,117 | 29,589 | |||||
| Prepaid expenses and other current assets | 112,178 | 109,330 | |||||
| Assets held for sale | 12,314 | 21,777 | |||||
| Total current assets | 1,985,758 | 1,868,746 | |||||
| Property and equipment, net | 5,835,074 | 5,910,684 | |||||
| Gaming subconcession, net | 2,843 | 27,065 | |||||
| Intangible assets, net | 45,723 | 51,547 | |||||
| Goodwill | 81,185 | 81,721 | |||||
| Long-term prepayments, deposits and other assets | 147,570 | 177,142 | |||||
| Restricted cash | 140 | 140 | |||||
| Deferred tax assets, net | 879 | 4,029 | |||||
| Operating lease right-of-use assets | 59,761 | 68,034 | |||||
| Land use rights, net | 673,067 | 694,582 | |||||
| Total assets | $ | 8,832,000 | $ | 8,883,690 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 5,745 | $ | 5,992 | |||
| Accrued expenses and other current liabilities | 780,936 | 935,483 | |||||
| Income tax payable | 11,192 | 11,913 | |||||
| Operating lease liabilities, current | 11,837 | 16,771 | |||||
| Finance lease liabilities, current | 35,502 | 48,551 | |||||
| Current portion of long-term debt, net | 127 | 128 | |||||
| Payables to affiliated companies | 1,316 | 1,548 | |||||
| Liabilities related to assets held for sale | 1,199 | 1,497 | |||||
| Total current liabilities | 847,854 | 1,021,883 | |||||
| Long-term debt, net | 7,727,749 | 6,559,854 | |||||
| Other long-term liabilities | 32,577 | 30,520 | |||||
| Deferred tax liabilities, net | 40,179 | 41,030 | |||||
| Operating lease liabilities, non-current | 56,982 | 62,889 | |||||
| Finance lease liabilities, non-current | 228,868 | 347,629 | |||||
| Total liabilities | 8,934,209 | 8,063,805 | |||||
| Equity: | |||||||
| Ordinary shares, par value | |||||||
| 1,445,052,143 and 1,456,547,942 shares issued; | |||||||
| 1,335,266,470 and 1,423,370,314 shares outstanding, respectively | 14,451 | 14,565 | |||||
| Treasury shares, at cost; 109,785,673 and 33,177,628 shares, respectively | (241,908 | ) | (132,856 | ) | |||
| Additional paid-in capital | 3,210,907 | 3,238,600 | |||||
| Accumulated other comprehensive losses | (173,510 | ) | (76,008 | ) | |||
| Accumulated losses | (3,478,011 | ) | (2,799,555 | ) | |||
| Total Melco Resorts & Entertainment Limited shareholders’ (deficit) equity | (668,071 | ) | 244,746 | ||||
| Noncontrolling interests | 565,862 | 575,139 | |||||
| Total (deficit) equity | (102,209 | ) | 819,885 | ||||
| Total liabilities and (deficit) equity | $ | 8,832,000 | $ | 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 | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited | $ | (243,842 | ) | $ | (233,221 | ) | $ | (678,585 | ) | $ | (651,814 | ) | |||
| Pre-opening costs | 3,313 | 650 | 8,915 | 2,774 | |||||||||||
| Development costs | - | 24,648 | - | 31,979 | |||||||||||
| Property charges and other | 696 | 2,945 | 19,595 | 23,937 | |||||||||||
| Loss on extinguishment of debt | - | - | - | 28,817 | |||||||||||
| Income tax impact on adjustments | (210 | ) | (739 | ) | (598 | ) | (2,133 | ) | |||||||
| Noncontrolling interests impact on adjustments | (1,275 | ) | (440 | ) | (4,781 | ) | (16,185 | ) | |||||||
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited | $ | (241,318 | ) | $ | (206,157 | ) | $ | (655,454 | ) | $ | (582,625 | ) | |||
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited per share: | |||||||||||||||
| Basic | $ | (0.174 | ) | $ | (0.143 | ) | $ | (0.465 | ) | $ | (0.406 | ) | |||
| Diluted | $ | (0.174 | ) | $ | (0.143 | ) | $ | (0.465 | ) | $ | (0.406 | ) | |||
| Adjusted net loss attributable to Melco Resorts & Entertainment Limited per ADS: | |||||||||||||||
| Basic | $ | (0.522 | ) | $ | (0.430 | ) | $ | (1.395 | ) | $ | (1.217 | ) | |||
| Diluted | $ | (0.522 | ) | $ | (0.430 | ) | $ | (1.396 | ) | $ | (1.217 | ) | |||
| Weighted average shares outstanding used in adjusted net loss attributable to Melco Resorts & Entertainment Limited per share calculation: | |||||||||||||||
| Basic | 1,386,720,527 | 1,437,651,448 | 1,409,983,323 | 1,435,941,037 | |||||||||||
| Diluted | 1,386,720,527 | 1,437,651,448 | 1,409,983,323 | 1,435,941,037 | |||||||||||
| 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 September 30, 2022 | ||||||||||||||||||||||||||||||||
| Altira Macau | Mocha and Other(3) | City of Dreams | Studio City | City of Dreams Manila | Cyprus Operations | Corporate and Other | Total | |||||||||||||||||||||||||
| Operating (loss) income | $ | (18,401 | ) | $ | 359 | $ | (105,943 | ) | $ | (66,752 | ) | $ | 18,649 | $ | 2,715 | $ | (29,173 | ) | $ | (198,546 | ) | |||||||||||
| Payments to the Philippine Parties | - | - | - | - | 8,417 | - | - | 8,417 | ||||||||||||||||||||||||
| Land rent to Belle Corporation | - | - | - | - | 555 | - | - | 555 | ||||||||||||||||||||||||
| Pre-opening costs | - | - | - | 699 | - | 2,614 | - | 3,313 | ||||||||||||||||||||||||
| Depreciation and amortization | 5,202 | 1,305 | 59,362 | 33,800 | 13,417 | 1,379 | 7,581 | 122,046 | ||||||||||||||||||||||||
| Share-based compensation | 136 | (90 | ) | 3,787 | 425 | 288 | 16 | 5,419 | 9,981 | |||||||||||||||||||||||
| Property charges and other | 145 | 85 | 2,558 | 370 | 43 | (1 | ) | (2,504 | ) | 696 | ||||||||||||||||||||||
| Adjusted EBITDA | (12,918 | ) | 1,659 | (40,236 | ) | (31,458 | ) | 41,369 | 6,723 | (18,677 | ) | (53,538 | ) | |||||||||||||||||||
| Corporate and Other expenses | - | - | - | - | - | - | 18,677 | 18,677 | ||||||||||||||||||||||||
| Adjusted Property EBITDA | $ | (12,918 | ) | $ | 1,659 | $ | (40,236 | ) | $ | (31,458 | ) | $ | 41,369 | $ | 6,723 | $ | - | $ | (34,861 | ) | ||||||||||||
| Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | Studio City | City of Dreams Manila | Cyprus Operations | Corporate and Other | Total | |||||||||||||||||||||||||
| Operating (loss) income | $ | (12,725 | ) | $ | 3,296 | $ | (35,542 | ) | $ | (49,810 | ) | $ | (12,639 | ) | $ | 541 | $ | (75,354 | ) | $ | (182,233 | ) | ||||||||||
| Payments to the Philippine Parties | - | - | - | - | 3,176 | - | - | 3,176 | ||||||||||||||||||||||||
| Land rent to Belle Corporation | - | - | - | - | 672 | - | - | 672 | ||||||||||||||||||||||||
| Pre-opening costs | - | - | - | 6 | - | 644 | - | 650 | ||||||||||||||||||||||||
| Development costs | - | - | - | - | - | - | 24,648 | 24,648 | ||||||||||||||||||||||||
| Depreciation and amortization | 5,542 | 1,420 | 62,736 | 34,327 | 19,844 | 2,205 | 21,599 | 147,673 | ||||||||||||||||||||||||
| Share-based compensation | 365 | 115 | 4,307 | 1,137 | 517 | 238 | 10,840 | 17,519 | ||||||||||||||||||||||||
| Property charges and other | (128 | ) | 15 | 1,212 | 347 | 130 | - | 1,369 | 2,945 | |||||||||||||||||||||||
| Adjusted EBITDA | (6,946 | ) | 4,846 | 32,713 | (13,993 | ) | 11,700 | 3,628 | (16,898 | ) | 15,050 | |||||||||||||||||||||
| Corporate and Other expenses | - | - | - | - | - | - | 16,898 | 16,898 | ||||||||||||||||||||||||
| Adjusted Property EBITDA | $ | (6,946 | ) | $ | 4,846 | $ | 32,713 | $ | (13,993 | ) | $ | 11,700 | $ | 3,628 | $ | - | $ | 31,948 | ||||||||||||||
| (3) Effective from June 27, 2022, the Grand Dragon Casino, which focuses on mass market table games and was previously reported under the Corporate and Other segment, has been included in the Mocha and Other segment | ||||||||||||||||||||||||||||||||
| Melco Resorts & Entertainment Limited and Subsidiaries | |||||||||||||||||||||||||||||||
| Reconciliation of Operating Loss to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited) | |||||||||||||||||||||||||||||||
| (In thousands of U.S. dollars) | |||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||
| Altira Macau | Mocha and Other(3) | City of Dreams | Studio City | City of Dreams Manila | Cyprus Operations | Corporate and Other | Total | ||||||||||||||||||||||||
| Operating (loss) income | $ | (51,146 | ) | $ | 4,476 | $ | (221,971 | ) | $ | (188,603 | ) | $ | 47,745 | $ | 402 | $ | (134,524 | ) | $ | (543,621 | ) | ||||||||||
| Payments to the Philippine Parties | - | - | - | - | 26,878 | - | - | 26,878 | |||||||||||||||||||||||
| Land rent to Belle Corporation | - | - | - | - | 1,851 | - | - | 1,851 | |||||||||||||||||||||||
| Pre-opening costs | - | - | - | 1,512 | - | 7,403 | - | 8,915 | |||||||||||||||||||||||
| Depreciation and amortization | 16,037 | 3,813 | 179,486 | 101,228 | 45,387 | 4,865 | 49,248 | 400,064 | |||||||||||||||||||||||
| Share-based compensation | 845 | 153 | 12,075 | 2,229 | 1,256 | 527 | 26,775 | 43,860 | |||||||||||||||||||||||
| Property charges and other | 744 | 40 | 6,060 | 3,794 | 257 | 3 | 8,697 | 19,595 | |||||||||||||||||||||||
| Adjusted EBITDA | (33,520 | ) | 8,482 | (24,350 | ) | (79,840 | ) | 123,374 | 13,200 | (49,804 | ) | (42,458 | ) | ||||||||||||||||||
| Corporate and Other expenses | - | - | - | - | - | - | 49,804 | 49,804 | |||||||||||||||||||||||
| Adjusted Property EBITDA | $ | (33,520 | ) | $ | 8,482 | $ | (24,350 | ) | $ | (79,840 | ) | $ | 123,374 | $ | 13,200 | $ | - | $ | 7,346 | ||||||||||||
| Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||
| Altira Macau | Mocha | City of Dreams | Studio City | City of Dreams Manila | Cyprus Operations | Corporate and Other | Total | ||||||||||||||||||||||||
| Operating (loss) income | $ | (72,608 | ) | $ | 7,241 | $ | (52,024 | ) | $ | (129,172 | ) | $ | (28,303 | ) | $ | (14,375 | ) | $ | (183,845 | ) | $ | (473,086 | ) | ||||||||
| Payments to the Philippine Parties | - | - | - | - | 20,269 | - | - | 20,269 | |||||||||||||||||||||||
| Land rent to Belle Corporation | - | - | - | - | 2,179 | - | - | 2,179 | |||||||||||||||||||||||
| Pre-opening costs | - | - | 195 | 739 | - | 1,840 | - | 2,774 | |||||||||||||||||||||||
| Development costs | - | - | - | - | - | - | 31,979 | 31,979 | |||||||||||||||||||||||
| Depreciation and amortization | 16,518 | 4,641 | 186,130 | 101,893 | 53,187 | 8,586 | 64,764 | 435,719 | |||||||||||||||||||||||
| Share-based compensation | 618 | 187 | 7,217 | 1,974 | 1,298 | 350 | 28,262 | 39,906 | |||||||||||||||||||||||
| Property charges and other | 1,630 | 203 | 10,769 | 4,212 | 5,732 | - | 1,391 | 23,937 | |||||||||||||||||||||||
| Adjusted EBITDA | (53,842 | ) | 12,272 | 152,287 | (20,354 | ) | 54,362 | (3,599 | ) | (57,449 | ) | 83,677 | |||||||||||||||||||
| Corporate and Other expenses | - | - | - | - | - | - | 57,449 | 57,449 | |||||||||||||||||||||||
| Adjusted Property EBITDA | $ | (53,842 | ) | $ | 12,272 | $ | 152,287 | $ | (20,354 | ) | $ | 54,362 | $ | (3,599 | ) | $ | - | $ | 141,126 | ||||||||||||
| 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 | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net loss attributable to Melco Resorts & Entertainment Limited | $ | (243,842 | ) | $ | (233,221 | ) | $ | (678,585 | ) | $ | (651,814 | ) | |||
| Net loss attributable to noncontrolling interests | (42,780 | ) | (35,273 | ) | (124,553 | ) | (114,709 | ) | |||||||
| Net loss | (286,622 | ) | (268,494 | ) | (803,138 | ) | (766,523 | ) | |||||||
| Income tax expense (credit) | 2,028 | (837 | ) | 4,618 | 154 | ||||||||||
| Interest and other non-operating expenses, net | 86,048 | 87,098 | 254,899 | 293,283 | |||||||||||
| Property charges and other | 696 | 2,945 | 19,595 | 23,937 | |||||||||||
| Share-based compensation | 9,981 | 17,519 | 43,860 | 39,906 | |||||||||||
| Depreciation and amortization | 122,046 | 147,673 | 400,064 | 435,719 | |||||||||||
| Development costs | - | 24,648 | - | 31,979 | |||||||||||
| Pre-opening costs | 3,313 | 650 | 8,915 | 2,774 | |||||||||||
| Land rent to Belle Corporation | 555 | 672 | 1,851 | 2,179 | |||||||||||
| Payments to the Philippine Parties | 8,417 | 3,176 | 26,878 | 20,269 | |||||||||||
| Adjusted EBITDA | (53,538 | ) | 15,050 | (42,458 | ) | 83,677 | |||||||||
| Corporate and Other expenses | 18,677 | 16,898 | 49,804 | 57,449 | |||||||||||
| Adjusted Property EBITDA | $ | (34,861 | ) | $ | 31,948 | $ | 7,346 | $ | 141,126 | ||||||
| Melco Resorts & Entertainment Limited and Subsidiaries | ||||||||||||||||||
| Supplemental Data Schedule | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Room Statistics(4): | ||||||||||||||||||
| Altira Macau | ||||||||||||||||||
| Average daily rate(5) | $ | 91 | $ | 104 | $ | 97 | $ | 110 | ||||||||||
| Occupancy per available room | 37 | % | 46 | % | 40 | % | 51 | % | ||||||||||
| Revenue per available room(6) | $ | 34 | $ | 48 | $ | 39 | $ | 56 | ||||||||||
| City of Dreams | ||||||||||||||||||
| Average daily rate(5) | $ | 192 | $ | 211 | $ | 203 | $ | 203 | ||||||||||
| Occupancy per available room | 20 | % | 46 | % | 27 | % | 55 | % | ||||||||||
| Revenue per available room(6) | $ | 38 | $ | 96 | $ | 55 | $ | 113 | ||||||||||
| Studio City | ||||||||||||||||||
| Average daily rate(5) | $ | 107 | $ | 123 | $ | 114 | $ | 122 | ||||||||||
| Occupancy per available room | 25 | % | 52 | % | 27 | % | 54 | % | ||||||||||
| Revenue per available room(6) | $ | 27 | $ | 64 | $ | 31 | $ | 66 | ||||||||||
| City of Dreams Manila | ||||||||||||||||||
| Average daily rate(5) | $ | 195 | $ | 117 | $ | 190 | $ | 110 | ||||||||||
| Occupancy per available room | 95 | % | 75 | % | 94 | % | 69 | % | ||||||||||
| Revenue per available room(6) | $ | 186 | $ | 88 | $ | 179 | $ | 76 | ||||||||||
| Other Information(7): | ||||||||||||||||||
| Altira Macau | ||||||||||||||||||
| Average number of table games | 92 | 100 | 94 | 101 | ||||||||||||||
| Average number of gaming machines | 144 | 128 | 139 | 119 | ||||||||||||||
| Table games win per unit per day(8) | $ | 121 | $ | 804 | $ | 722 | $ | 2,188 | ||||||||||
| Gaming machines win per unit per day(9) | $ | 85 | $ | 181 | $ | 131 | $ | 202 | ||||||||||
| Mocha and Other(3) | ||||||||||||||||||
| Average number of table games | 25 | - | 25 | - | ||||||||||||||
| Average number of gaming machines | 952 | 823 | 949 | 782 | ||||||||||||||
| Table games win per unit per day(8) | $ | 1,806 | $ | - | $ | 1,776 | $ | - | ||||||||||
| Gaming machines win per unit per day(9) | $ | 203 | $ | 294 | $ | 216 | $ | 301 | ||||||||||
| City of Dreams | ||||||||||||||||||
| Average number of table games | 443 | 514 | 449 | 511 | ||||||||||||||
| Average number of gaming machines | 649 | 607 | 678 | 536 | ||||||||||||||
| Table games win per unit per day(8) | $ | 1,503 | $ | 5,782 | $ | 3,474 | $ | 7,090 | ||||||||||
| Gaming machines win per unit per day(9) | $ | 113 | $ | 212 | $ | 139 | $ | 297 | ||||||||||
| Studio City | ||||||||||||||||||
| Average number of table games | 277 | 291 | 277 | 291 | ||||||||||||||
| Average number of gaming machines | 702 | 656 | 711 | 623 | ||||||||||||||
| Table games win per unit per day(8) | $ | 794 | $ | 2,883 | $ | 1,592 | $ | 3,354 | ||||||||||
| Gaming machines win per unit per day(9) | $ | 54 | $ | 131 | $ | 82 | $ | 135 | ||||||||||
| City of Dreams Manila | ||||||||||||||||||
| Average number of table games | 260 | 302 | 278 | 297 | ||||||||||||||
| Average number of gaming machines | 2,317 | 2,377 | 2,283 | 2,304 | ||||||||||||||
| Table games win per unit per day(8) | $ | 2,750 | $ | 1,638 | $ | 2,436 | $ | 1,926 | ||||||||||
| Gaming machines win per unit per day(9) | $ | 228 | $ | 251 | $ | 231 | $ | 190 | ||||||||||
| Cyprus Operations | ||||||||||||||||||
| Average number of table games | 35 | 32 | 35 | 32 | ||||||||||||||
| Average number of gaming machines | 451 | 457 | 455 | 440 | ||||||||||||||
| Table games win per unit per day(8) | $ | 2,465 | $ | 2,007 | $ | 1,925 | $ | 1,844 | ||||||||||
| Gaming machines win per unit per day(9) | $ | 427 | $ | 346 | $ | 368 | $ | 372 | ||||||||||
| (4) | Room statistics exclude rooms that were temporarily closed or provided to staff members due to the COVID-19 outbreak | |||||||||||||||||
| (5) | 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 | |||||||||||||||||
| (6) | Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available | |||||||||||||||||
| (7) | 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 | |||||||||||||||||
| (8) | 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 | |||||||||||||||||
| (9) | 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' Q3 2022 earnings results?
What caused the decline in Melco's revenues in Q3 2022?
How did City of Dreams Manila perform in Q3 2022?
What is Melco Resorts' outlook for the future following the Q3 results?
What was Melco's Adjusted Property EBITDA for Q3 2022?
