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MarketScreener Homepage  >  Equities  >  Hong Kong Stock Exchange  >  Melco International Development Limited    200   HK0200030994

MELCO INTERNATIONAL DEVELOPMENT LIMITED

(200)
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End-of-day quote. End-of-day quote Hong Kong Stock Exchange - 07/03
15.84 HKD   +4.21%
06/09MELCO INTERNATIONAL DEVELOPMENT LIMITED : Ex-dividend day for final dividend
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05/26STANLEY HO : Macau gambling king Stanley Ho dies aged 98
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Melco International Development : ANNOUNCEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR ENDED 31 DECEMBER 2019 AND DECLARATION OF QUARTERLY DIVIDEND BY A LISTED SUBSIDIARY-MELCO RESORTS & ENTERTAINMENT LIMITED

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02/20/2020 | 09:11am EDT

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

ANNOUNCEMENT OF UNAUDITED FINANCIAL RESULTS

FOR THE FOURTH QUARTER AND FULL YEAR ENDED 31 DECEMBER 2019

AND DECLARATION OF QUARTERLY DIVIDEND

BY A LISTED SUBSIDIARY

  • MELCO RESORTS & ENTERTAINMENT LIMITED

This is not an announcement of the financial results of Melco International Development Limited (the "Company"). This announcement is made by the Company pursuant to the requirements of Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions of Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) to provide shareholders of the Company with information in respect of the financial results of a listed subsidiary of the Company, Melco Resorts & Entertainment Limited ("Melco Resorts"), which has announced its unaudited financial results for the fourth quarter and full year ended 31 December 2019 and declaration of quarterly dividend on 20 February 2020.

Melco Resorts, a listed subsidiary of the Company, whose American depositary shares ("ADSs") are listed on the NASDAQ Global Select Market in the United States, has announced its unaudited financial results for the fourth quarter and full year ended 31 December 2019 and declaration of quarterly dividend on 20 February 2020 (the "Melco Resorts' earnings release"). Extracts of the unaudited financial results of Melco Resorts are provided below.

The Fourth Quarter 2019 Results of Melco Resorts

In connection with Melco Resorts' acquisition of a 75% interest in ICR Cyprus Holdings Limited ("ICR Cyprus") from the Company on 31 July 2019, all periods presented in this announcement have been restated to include the assets and liabilities and financial results of the ICR Cyprus group in accordance with applicable accounting standards.

Total operating revenues for the fourth quarter of 2019 were US$1.45 billion, representing an increase of approximately 3% from US$1.41 billion for the comparable period in 2018. The increase in total operating revenues was primarily attributable to better performance in the mass market table games segment.

1

Operating income for the fourth quarter of 2019 was US$173.4 million, compared with operating income of US$203.3 million in the fourth quarter of 2018, representing a decrease of 15%.

Adjusted property EBITDA (i.e. earnings 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, corporate and others expenses and other non-operating income and expenses) was US$409.8 million for the fourth quarter of 2019 compared to adjusted property EBITDA of US$427.5 million in the fourth quarter of 2018, representing a decrease of 4%.

Net income attributable to Melco Resorts for the fourth quarter of 2019 was US$68.1 million, or US$0.14 per ADS, compared with US$126.6 million, or US$0.26 per ADS, in the fourth quarter of 2018. The net income attributable to noncontrolling interests during the fourth quarter of 2019 was US$12.7 million and the net income attributable to noncontrolling interests during the fourth quarter of 2018 was US$1.7 million, all of which were related to Studio City, City of Dreams Manila and the Cyprus Operations.

Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2019 were US$91.1 million, which mainly included interest expenses of US$84.4 million.

Depreciation and amortization costs of US$169.3 million were recorded in the fourth quarter of 2019 of which US$14.2 million was related to the amortization expense for the gaming subconcession of Melco Resorts and US$5.7 million was related to the amortization expense for the land use rights.

Financial Position and Capital Expenditures

Total cash and bank balances as of 31 December 2019 aggregated to US$1.43 billion, including US$37.5 million of restricted cash, which was primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the fourth quarter of 2019 was US$4.39 billion, within which US$0.1 million was classified as current.

Capital expenditures for the fourth quarter of 2019 were US$134.6 million, which primarily related to various projects at City of Dreams, City of Dreams Manila and Studio City as well as developments at City of Dreams Mediterranean.

Full Year Results of Melco Resorts

For the year ended 31 December 2019, Melco Resorts reported total operating revenues of US$5.74 billion versus US$5.19 billion in the prior year. The increase in total operating revenues was primarily attributable to better performance in the mass market table games segment.

Operating income for 2019 was US$747.7 million, compared with operating income of US$613.4 million for 2018, representing an increase of 22%.

Adjusted property EBITDA for the year ended 31 December 2019 was US$1.69 billion compared to adjusted property EBITDA of US$1.49 billion in 2018. The year-over-year

2

improvement in adjusted property EBITDA was mainly attributable to better performance in the mass market table games segment.

Net income attributable to Melco Resorts for 2019 was US$373.2 million, or US$0.78 per ADS, compared with US$340.3 million, or US$0.68 per ADS, for 2018. The net income attributable to noncontrolling interests for 2019 was US$21.1 million and the net loss attributable to noncontrolling interests for 2018 was US$1.4 million, all of which were related to Studio City, City of Dreams Manila and the Cyprus Operations.

Quarterly Dividend Declaration

On 20 February 2020, the board of directors of Melco Resorts considered and approved the declaration and payment of a quarterly dividend of US$0.05504 per ordinary share (equivalent to US$0.16512 per ADS) for the fourth quarter of 2019 (the "Quarterly Dividend"). The Quarterly Dividend will be paid on or about 12 March 2020 to the shareholders of Melco Resorts whose names appear on the register of members of Melco Resorts at the close of business on 2 March 2020, being the record date for determination of entitlements to the Quarterly Dividend.

Recent Developments

On 4 February 2020, the Macau government announced all casinos in Macau would be closed for a 15-day period commencing on 5 February 2020. On 17 February 2020, the Macau government announced, subject to the implementation of certain health-related precautionary measures, casinos in Macau may resume operations on 20 February 2020. The Macau government further announced casinos in Macau will be allowed a period of up to 30 days from 20 February 2020 to resume operations. Gaming operations at City of Dreams, Mocha Clubs and Studio City resumed on 20 February 2020. Gaming operations at Altira Macau will resume at a subsequent date.

Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets

The condensed consolidated statements of operations for the three months and full year ended 31 December 2019 and the condensed consolidated balance sheets as at 31 December

2019 of Melco Resorts and its subsidiaries are provided below:

3

Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands of U.S. dollars, except share and per share data)

Three Months Ended

Year Ended

31 December

31 December

2019

2018

2019

2018

OPERATING REVENUES

(Unaudited)

(Restated)(Note 1)

(Unaudited)

(Restated)(Note 1)

Casino

$

1,248,916

$

1,226,193

$

4,976,686

$

4,496,625

Rooms

90,990

89,513

349,908

311,028

Food and beverage

62,375

56,057

235,120

204,171

Entertainment, retail and other

48,360

40,223

175,087

177,118

Total operating revenues

1,450,641

1,411,986

5,736,801

5,188,942

OPERATING COSTS AND

EXPENSES

Casino

(843,550)

(804,846)

(3,266,736)

(3,001,310)

Rooms

(22,553)

(22,590)

(89,778)

(78,377)

Food and beverage

(48,004)

(44,190)

(181,456)

(161,184)

Entertainment, retail and other

(26,906)

(21,613)

(99,945)

(92,449)

General and administrative

(136,480)

(124,032)

(559,480)

(505,930)

Payments to the Philippine Parties

(11,433)

(15,030)

(57,428)

(60,778)

Pre-opening costs

(209)

(4,998)

(4,847)

(55,390)

Development costs

(17,560)

(11,301)

(57,433)

(23,029)

Amortization of gaming

subconcession

(14,240)

(13,881)

(56,841)

(56,809)

Amortization of land use rights

(5,677)

(5,534)

(22,659)

(22,646)

Depreciation and amortization

(149,343)

(132,453)

(571,705)

(488,446)

Property charges and other

(1,237)

(8,190)

(20,815)

(29,147)

Total operating costs and expenses

(1,277,192)

(1,208,658)

(4,989,123)

(4,575,495)

OPERATING INCOME

173,449

203,328

747,678

613,447

NON-OPERATING INCOME

(EXPENSES)

Interest income

2,142

1,422

9,311

5,471

Interest expenses, net of capitalized

interest

(84,434)

(73,992)

(310,102)

(264,880)

Other finance costs

(1,065)

(564)

(2,738)

(4,630)

Foreign exchange losses, net

(1,347)

(4,823)

(10,756)

(10,497)

Other (expenses) income, net

(3,748)

672

(23,914)

3,684

Loss on extinguishment of debt

(2,612)

(3,248)

(6,333)

(3,461)

Costs associated with debt

modification

-

-

(579)

-

Total non-operating expenses, net

(91,064)

(80,533)

(345,111)

(274,313)

INCOME BEFORE INCOME

TAX

82,385

122,795

402,567

339,134

INCOME TAX (EXPENSE)

CREDIT

(1,562)

5,477

(8,339)

(238)

NET INCOME

80,823

128,272

394,228

338,896

4

NET (INCOME) LOSS

ATTRIBUTABLE TO

NONCONTROLLING

INTERESTS

(12,684)

(1,689)

(21,055)

1,403

NET INCOME ATTRIBUTABLE

TO MELCO RESORTS &

ENTERTAINMENT LIMITED

$

68,139

$

126,583

$

373,173

$

340,299

NET INCOME ATTRIBUTABLE

TO MELCO RESORTS &

ENTERTAINMENT LIMITED

PER SHARE:

Basic

$

0.047

$

0.087

$

0.260

$

0.226

Diluted

$

0.047

$

0.087

$

0.258

$

0.224

NET INCOME ATTRIBUTABLE

TO MELCO RESORTS &

ENTERTAINMENT LIMITED

PER ADS:

Basic

$

0.142

$

0.261

$

0.779

$

0.678

Diluted

$

0.142

$

0.260

$

0.775

$

0.673

WEIGHTED AVERAGE SHARES

OUTSTANDING USED IN NET

INCOME ATTRIBUTABLE TO

MELCO RESORTS &

ENTERTAINMENT LIMITED

PER SHARE CALCULATION:

Basic

1,437,196,123

1,454,682,399

1,436,569,083

1,506,551,789

Diluted

1,444,028,468

1,459,705,276

1,443,447,422

1,516,410,062

Notes:

  1. In connection with Melco Resorts' acquisition of a 75% interest in ICR Cyprus from the Company on 31 July 2019, all periods presented in these financial statements have been restated to include the assets and liabilities and financial results of the ICR Cyprus group in accordance with applicable accounting standards.
  2. The Adjusted EBITDA for Studio City for the three months ended 31 December 2019 referred to in the Melco Resorts' earnings release is US$14.1 million more than the Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited ("SCIHL") dated 20 February 2020 (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 the Melco Resorts' earnings release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco Resorts. Additionally, Adjusted EBITDA of Studio City included in the Melco Resorts' earnings release does not reflect certain costs related to the table games operations at Studio City Casino.

5

Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars)

31 December

31 December

2019

2018

ASSETS

(Unaudited)

(Restated)(Note)

CURRENT ASSETS

Cash and cash equivalents

$

1,394,982

$

1,472,423

Investment securities

49,369

91,598

Restricted cash

37,390

48,037

Accounts receivable, net

284,333

242,089

Amounts due from affiliated companies

442

87,394

Inventories

43,959

41,093

Prepaid expenses and other current assets

84,197

95,176

Total current assets

1,894,672

2,077,810

PROPERTY AND EQUIPMENT, NET

5,723,909

5,784,343

GAMING SUBCONCESSION, NET

141,440

197,533

INTANGIBLE ASSETS, NET

31,628

31,454

GOODWILL

95,620

81,376

LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS

176,478

186,708

INVESTMENT SECURITIES

568,936

-

RESTRICTED CASH

130

129

DEFERRED TAX ASSETS

3,558

2,992

OPERATING LEASE RIGHT-OF-USE ASSETS

111,043

-

LAND USE RIGHTS, NET

741,008

759,651

TOTAL ASSETS

$

9,488,422

$

9,121,996

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

21,882

$

25,003

Accrued expenses and other current liabilities

1,420,516

1,671,630

Income tax payable

8,516

4,903

Operating lease liabilities, current

33,152

-

Finance lease liabilities, current

39,725

34,659

Current portion of long-term debt, net

146

395,547

Amounts due to affiliated companies

1,523

15,186

Total current liabilities

1,525,460

2,146,928

LONG-TERM DEBT, NET

4,393,985

3,665,370

OTHER LONG-TERM LIABILITIES

18,773

29,286

DEFERRED TAX LIABILITIES

56,677

54,746

OPERATING LEASE LIABILITIES, NON-CURRENT

88,259

-

FINANCE LEASE LIABILITIES, NON-CURRENT

262,040

253,374

TOTAL LIABILITIES

6,345,194

6,149,704

SHAREHOLDERS' EQUITY

Ordinary shares

14,565

15,385

Treasury shares

(90,585)

(657,389)

Additional paid-in capital

3,178,579

3,715,579

Accumulated other comprehensive losses

(18,803)

(59,332)

6

Accumulated losses

(644,788)

(716,966)

Total Melco Resorts & Entertainment Limited shareholders' equity

2,438,968

2,297,277

Noncontrolling interests

704,260

675,015

Total equity

3,143,228

2,972,292

TOTAL LIABILITIES AND EQUITY

$

9,488,422

$

9,121,996

Note:

In connection with Melco Resorts' acquisition of a 75% interest in ICR Cyprus from the Company on 31 July

2019, all periods presented in these financial statements have been restated to include the assets and liabilities

and financial results of the ICR Cyprus group in accordance with applicable accounting standards.

The full text of the Melco Resorts' earnings release has been posted on the Company's website at www.melco-group.com and on the website of The Stock Exchange of Hong Kong Limited at www.hkex.com.hk, as an overseas regulatory announcement, for the information of the Company's shareholders.

By Order of the Board of

Melco International Development Limited

Leung Hoi Wai, Vincent

Company Secretary

Hong Kong, 20 February 2020

As at the date of this announcement, the board of directors of the Company comprises three Executive Directors, namely Mr. Ho, Lawrence Yau Lung (Chairman and Chief Executive Officer), Mr. Evan Andrew Winkler (President and Managing Director) and Mr. Chung Yuk Man, Clarence; two Non-executive Directors, namely Mr. Tsui Che Yin, Frank and Mr. Ng Ching Wo; and three Independent Non-executive Directors, namely Mr. John William Crawford, Mr. Chow Kwong Fai, Edward and Ms. Karuna Evelyne Shinsho.

7

Disclaimer

Melco International Development Limited published this content on 20 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 February 2020 14:10:09 UTC

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Financials
Sales 2020 29 874 M 3 855 M 3 855 M
Net income 2020 -3 738 M -482 M -482 M
Net Debt 2020 36 497 M 4 709 M 4 709 M
P/E ratio 2020 -6,69x
Yield 2020 0,27%
Capitalization 23 917 M 3 086 M 3 086 M
EV / Sales 2019
EV / Sales 2020 2,02x
Nbr of Employees 23 261
Free-Float 41,6%
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Income Statement Evolution
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Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 18,29 HKD
Last Close Price 15,84 HKD
Spread / Highest target 57,8%
Spread / Average Target 15,5%
Spread / Lowest Target -29,3%
EPS Revisions
Managers
NameTitle
Yau Lung Ho Chairman, Chief Executive Officer & MD
Evan Andrew Winkler President & Managing Director
Geoffrey Stuart Davis Chief Financial Officer
Ching Wo Ng Non-Executive Director
Che Yin Tsui Non-Executive Director
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