MACAU, Feb. 20, 2020 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia and Europe, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2019.

In connection with the Company’s acquisition of a 75% interest in ICR Cyprus Holdings Limited (“ICR Cyprus”) from its parent company, Melco International Development Limited, on July 31, 2019, all periods presented in this press release 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.

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(1) 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 & Entertainment Limited 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.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “During the fourth quarter of 2019, despite macro headwinds and the events in Hong Kong, mass gaming operations at all of Melco’s integrated resorts have remained robust, which drove group-wide mass table games revenue to expand approximately 12% year-over-year to an all-time-record-high of US$850 million. Adjusted Property EBITDA for the fiscal year 2019 has also expanded 14% year-over-year to reach an all-time-record-high of US$1,689 million.

“Melco’s portfolio of award-winning integrated resorts, commitment to excellence, and determination to push boundaries have been widely recognized, most recently by the Michelin Guide Hong Kong Macau 2020 with the company remaining as the leading integrated resort operator in the world with the highest number of Michelin-stars. In the recently published 2020 Forbes Travel Guide, Melco was awarded with a record-breaking 107 stars, with Morpheus honored as the world’s first and only establishment to attain Forbes Five-Stars across its entire hotel, spa and dining facilities, after a year of its grand opening. The Morpheus Spa also won the Forbes Spa of the Year Award, attaining the highest score among the world's most outstanding spa establishments.

“Melco continues to prioritize sustainability in its operations. In March 2019, Melco became the first and only hospitality group and integrated resort signatory of the New Plastics Economy Global Commitment, a global initiative to tackle plastic waste and pollution, led by the Ellen MacArthur Foundation in collaboration with the UN Environment. In December 2019, Melco became the first integrated resort and hotel operator in the Macau SAR and Hong Kong SAR to receive ISO 41001:2018 for its efforts in facilities management systems (FMS). Melco has also attained ISO 50001:2018 for effective energy management systems (EnMS) and was recognized by global environmental disclosure system CDP as one of China’s leading companies in sustainability.

“Construction on the further expansion of Studio City is progressing. Upon completion, it will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE spaces.

“The Board has, after evaluating the Company’s current liquidity position and future expected capital needs, decided to declare another quarterly dividend of US$0.16512 per ADS.

“Melco remains committed to managing its balance sheet in a prudent manner. As of December 31, 2019, net-debt-to-last-twelve-months-EBITDA remained modest at approximately 2x, enabling us to continue with our regular dividend program, while retaining ample financial flexibility to reinvest in our existing properties and to pursue new development opportunities.

“Lastly, Japan continues to be a core focus for us. In September 2019, we announced our ‘Yokohama First’ policy as we focus our Japan team on bringing to Yokohama the best IR the world has ever seen. In December 2019, we submitted our response for the Yokohama RFC.

“We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and commitment to employee development puts Melco in a strong position to help Yokohama realize the vision of developing a world-leading IR with a unique, Japanese touch.”

City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2019, total operating revenues at City of Dreams were US$759.1 million compared to US$726.1 million in the fourth quarter of 2018. City of Dreams generated Adjusted EBITDA of US$210.4 million in the fourth quarter of 2019 compared with Adjusted EBITDA of US$229.7 million in the fourth quarter of 2018. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in the rolling chip segment, partially offset by better performance in the mass market table games and gaming machines segments.

Rolling chip volume was US$15.96 billion for the fourth quarter of 2019 versus US$11.42 billion in the fourth quarter of 2018. The rolling chip win rate was 2.65% in the fourth quarter of 2019 versus 3.19% in the fourth quarter of 2018. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$1.41 billion in the fourth quarter of 2019 compared with US$1.31 billion in the fourth quarter of 2018. The mass market table games hold percentage was 32.8% in the fourth quarter of 2019 compared to 33.0% in the fourth quarter of 2018.

Gaming machine handle for the fourth quarter of 2019 was US$1.20 billion, compared with US$1.05 billion in the fourth quarter of 2018. The gaming machine win rate was 4.4% in the fourth quarter of 2019 versus 3.7% in the fourth quarter of 2018.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2019 was US$105.4 million, compared with US$101.0 million in the fourth quarter of 2018.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2019, total operating revenues at Altira Macau were US$113.9 million compared to US$137.6 million in the fourth quarter of 2018. Altira Macau generated Adjusted EBITDA of US$13.6 million in the fourth quarter of 2019 compared with Adjusted EBITDA of US$20.2 million in the fourth quarter of 2018. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in the rolling chip segment, partially offset by better performance in the mass market table games segment.

Rolling chip volume was US$4.21 billion in the fourth quarter of 2019 versus US$6.52 billion in the fourth quarter of 2018. The rolling chip win rate was 3.39% in the fourth quarter of 2019 versus 3.09% in the fourth quarter of 2018. The expected rolling chip win rate range is 2.85% - 3.15%.

In the mass market table games segment, drop was US$167.6 million in the fourth quarter of 2019 versus US$127.1 million in the fourth quarter of 2018. The mass market table games hold percentage was 20.3% in the fourth quarter of 2019 compared with 19.7% in the fourth quarter of 2018.
   
Gaming machine handle for the fourth quarter of 2019 was US$81.1 million, compared with US$29.9 million in the fourth quarter of 2018. The increase was primarily due to an increase in the average number of gaming machines to 195 in the fourth quarter of 2019, compared to 136 in the fourth quarter of 2018. The gaming machine win rate was 3.2% in the fourth quarter of 2019 versus 4.3% in the fourth quarter of 2018.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2019 was US$7.4 million, compared with US$7.1 million in the fourth quarter of 2018.

Mocha Clubs Fourth Quarter Results

Total operating revenues from Mocha Clubs were US$28.0 million in the fourth quarter of 2019 compared to US$26.5 million in the fourth quarter of 2018. Mocha Clubs generated US$5.7 million of Adjusted EBITDA in the fourth quarter of 2019 compared with US$4.7 million in the same period in 2018.

Gaming machine handle for the fourth quarter of 2019 was US$603.4 million, compared with US$593.9 million in the fourth quarter of 2018. The gaming machine win rate was 4.6% in the fourth quarter of 2019 versus 4.5% in the fourth quarter of 2018.

Studio City Fourth Quarter Results

For the quarter ended December 31, 2019, total operating revenues at Studio City were US$358.3 million compared to US$340.7 million in the fourth quarter of 2018. Studio City generated Adjusted EBITDA of US$117.4 million in the fourth quarter of 2019 compared with Adjusted EBITDA of US$102.7 million in the fourth quarter of 2018. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in the mass market table games segment, partially offset by softer performance in the rolling chip segment.

Studio City’s rolling chip volume was US$2.46 billion in the fourth quarter of 2019 versus US$3.46 billion in the fourth quarter of 2018. The rolling chip win rate was 3.60% in the fourth quarter of 2019 versus 3.82% in the fourth quarter of 2018. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$879.8 million in the fourth quarter of 2019 compared with US$825.4 million in the fourth quarter of 2018. The mass market table games hold percentage was 30.2% in the fourth quarter of 2019 compared to 27.0% in the fourth quarter of 2018.

Gaming machine handle for the fourth quarter of 2019 was US$695.4 million, compared with US$641.8 million in the fourth quarter of 2018. The gaming machine win rate was 3.0% in the fourth quarter of 2019 versus 3.6% in the fourth quarter of 2018.

Total non-gaming revenue at Studio City in the fourth quarter of 2019 was US$52.1 million, compared with US$46.4 million in the fourth quarter of 2018.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2019, total operating revenues at City of Dreams Manila were US$153.5 million compared to US$155.2 million in the fourth quarter of 2018. City of Dreams Manila generated Adjusted EBITDA of US$53.9 million in the fourth quarter of 2019 compared to US$67.9 million in the comparable period of 2018. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in the rolling chip segment, partially offset by better performance in the mass market table games and gaming machines segments.

With increased competition in the market, City of Dreams Manila’s rolling chip volume was US$2.02 billion in the fourth quarter of 2019 versus US$2.38 billion in the fourth quarter of 2018. The rolling chip win rate was 3.01% in the fourth quarter of 2019 versus 3.68% in the fourth quarter of 2018. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$216.3 million for the fourth quarter of 2019, compared with US$197.3 million in the fourth quarter of 2018. The mass market table games hold percentage was 31.8% in the fourth quarter of 2019 compared to 31.4% in the fourth quarter of 2018.

Gaming machine handle for the fourth quarter of 2019 was US$1.06 billion, compared with US$0.93 billion in the fourth quarter of 2018. The gaming machine win rate was 5.3% for both quarters ended December 31, 2019 and 2018.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2019 was US$33.4 million, compared with US$29.4 million in the fourth quarter of 2018.

Cyprus Operations Fourth Quarter Results

The Company is currently operating a temporary casino, the first casino in the Republic of Cyprus, and three satellite casinos with a fourth satellite casino scheduled to open in the coming months (“Cyprus Casinos”). Upon the opening of City of Dreams Mediterranean in 2021, the Company will also continue to operate the four satellite casinos while operation of the temporary casino will cease.

For the quarter ended December 31, 2019, total operating revenues at Cyprus Casinos were US$24.7 million compared to US$15.6 million in the fourth quarter of 2018. Cyprus Casinos generated Adjusted EBITDA of US$8.6 million in the fourth quarter of 2019 compared with Adjusted EBITDA of US$2.3 million in the fourth quarter of 2018.

Rolling chip volume was US$22.8 million for the fourth quarter of 2019. The rolling chip win rate was 3.61% in the fourth quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop was US$33.9 million in the fourth quarter of 2019 versus US$34.8 million in the fourth quarter of 2018. The mass market table games hold percentage was 19.8% in the fourth quarter of 2019 compared to 16.2% in the fourth quarter of 2018.

Gaming machine handle for the fourth quarter of 2019 was US$349.5 million, compared with US$194.5 million in the fourth quarter of 2018. The gaming machine win rate was 4.9% in the fourth quarter of 2019 versus 5.2% in the fourth quarter of 2018.

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 our gaming subconcession and US$5.7 million was related to the amortization expense for the land use rights.

The Adjusted EBITDA for Studio City for the three months ended December 31, 2019 referred to in this press 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 February 20, 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 this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain costs related to the table games operations at Studio City Casino.

Financial Position and Capital Expenditures

Total cash and bank balances as of December 31, 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

For the year ended December 31, 2019, Melco Resorts & Entertainment Limited 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 December 31, 2019 was US$1.69 billion compared to Adjusted Property EBITDA of US$1.49 billion in 2018. The year-over-year improvement in Adjusted Property EBITDA was mainly attributable to better performance in the mass market table games segment.

Net income attributable to Melco Resorts & Entertainment Limited 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.

Dividend Declaration

On February 20, 2020, our Board 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 March 12, 2020 to our shareholders whose names appear on the register of members of the Company at the close of business on March 2, 2020, being the record date for determination of entitlements to the Quarterly Dividend.

Recent Developments

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

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its fourth quarter 2019 financial results on Thursday, February 20, 2020 at 8:30 a.m. Eastern Time (9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

US Toll Free1 866 519 4004
US Toll / International1 845 675 0437
HK Toll852 3018 6771
HK Toll Free800 906 601
Japan Toll81 3 4503 6012
Japan Toll Free012 092 5376
UK Toll Free080 8234 6646
Australia Toll61 290 833 212
Australia Toll Free1 800 411 623
Philippines Toll Free1 800 1612 0306
  
PasscodeMLCO

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 Free1 855 452 5696
US Toll / International1 646 254 3697
HK Toll Free800 963 117
Japan Toll81 3 4580 6717
Japan Toll Free012 095 9034
Philippines Toll Free1 800 1612 0166
  
Conference ID4458959

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 written or oral 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) growth of the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and other governmental approvals and regulations, and (vi) 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 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 and other non-operating income and expenses. “Adjusted Property EBITDA” is earnings 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 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, 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, net income, 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” is net income 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 attributable to Melco Resorts & Entertainment Limited and adjusted net income 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 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 attributable to Melco Resorts & Entertainment Limited and adjusted net income 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 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 casino gaming and entertainment casino resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), a casino hotel located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated urban casino 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 entertainment, retail and gaming resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), a casino, hotel, retail and entertainment 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 scheduled to open in 2021 and expected to be the largest and premier integrated destination resort in Europe. The Company is currently operating a temporary casino, the first casino in the Republic of Cyprus, and three satellite casinos with a fourth satellite casino scheduled to open in the coming months (“Cyprus Casinos”). Upon the opening of City of Dreams Mediterranean, the Company will continue to operate the four satellite casinos while operation of the temporary casino will cease. The Company also holds equity interests in Crown Resorts Limited (“Crown”), a company listed on the Australian Securities Exchange and which operates two of Australia’s leading integrated resorts, Crown Melbourne Entertainment Complex and Crown Perth Entertainment Complex. In the United Kingdom, Crown operates Crown Aspinalls, a high-end licensed casino in London. Crown’s development projects include the Crown Sydney Hotel Resort at Barangaroo on Sydney Harbour. Crown also holds equity interests in the Aspers Group and Nobu and has interests in various digital businesses. 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 investment community, please contact:
Richard Huang
Director, Investor Relations
Tel: +852 2598 3619
Email: richardlshuang@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 
(In thousands of U.S. dollars, except share and per share data) 
             
             
 Three Months Ended Year Ended 
 December 31, December 31, 
 2019  2018  2019  2018  
 (Unaudited) (Restated)(3) (Unaudited) (Restated)(3) 
             
OPERATING REVENUES            
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  
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  
             
             
(3) In connection with the Company's acquisition of a 75% interest in ICR Cyprus Holdings Limited ("ICR Cyprus") from its parent company, Melco International Development Limited, on July 31, 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. 
  

 

Melco Resorts & Entertainment Limited and Subsidiaries 
Condensed Consolidated Balance Sheets 
(In thousands of U.S. dollars) 
       
       
 December 31, December 31, 
 2019 2018 
 (Unaudited) (Restated)(3) 
       
ASSETS      
       
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) 
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 
       

 

Melco Resorts & Entertainment Limited and Subsidiaries 
Reconciliation of Net Income Attributable to Melco Resorts & Entertainment Limited to  
Adjusted Net Income Attributable to Melco Resorts & Entertainment Limited 
(In thousands of U.S. dollars, except share and per share data) 
             
             
 Three Months Ended Year Ended 
 December 31, December 31, 
 2019 2018 2019 2018 
 (Unaudited) (Restated)(3) (Unaudited) (Restated)(3) 
             
Net Income Attributable to            
Melco Resorts & Entertainment Limited$68,139  $126,583  $373,173  $340,299  
Pre-opening Costs 209   4,998   4,847   55,390  
Development Costs 17,560   11,301   57,433   23,029  
Property Charges and Other 1,237   8,190   20,815   29,147  
Loss on Extinguishment of Debt 2,612   3,248   6,333   3,461  
Costs Associated with Debt Modification -   -   579   -  
Income Tax Impact on Adjustments (333)  (3,944)  (4,549)  (4,123) 
Noncontrolling Interests Impact on Adjustments (373)  (4,050)  (7,556)  (10,246) 
Adjusted Net Income Attributable to            
Melco Resorts & Entertainment Limited$89,051  $146,326  $451,075  $436,957  
             
ADJUSTED NET INCOME ATTRIBUTABLE TO            
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:          
Basic$0.062  $0.101  $0.314  $0.290  
Diluted$0.062  $0.100  $0.312  $0.288  
             
ADJUSTED NET INCOME ATTRIBUTABLE TO            
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:          
Basic$0.186  $0.302  $0.942  $0.870  
Diluted$0.185  $0.301  $0.937  $0.864  
             
WEIGHTED AVERAGE SHARES OUTSTANDING            
USED IN ADJUSTED 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  
             

 

Melco Resorts & Entertainment Limited and Subsidiaries 
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA 
(In thousands of U.S. dollars) 
                         
                         
 Three Months Ended December 31, 2019 
 Altira
Macau		 Mocha City of
Dreams		 Studio
City		 City of Dreams
Manila		 Cyprus
Operations		 Corporate and
Other		 Total 
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 
                         
Operating Income (Loss)$7,845 $4,010 $145,659  $73,859 $18,137 $5,704  $(81,765) $173,449 
                         
Payments to the Philippine Parties -  -  -   -  11,433  -   -   11,433 
Land Rent to Belle Corporation -  -  -   -  778  -   -   778 
Pre-opening Costs -  -  2   12  -  195   -   209 
Development Costs -  -  -   -  -  -   17,560   17,560 
Depreciation and Amortization 5,679  1,686  63,277   42,677  23,086  2,692   30,163   169,260 
Share-based Compensation 118  33  956   376  426  51   7,323   9,283 
Property Charges and Other 7  -  547   522  2  -   159   1,237 
Adjusted EBITDA 13,649  5,729  210,441   117,446  53,862  8,642   (26,560)  383,209 
Corporate and Other Expenses -  -  -   -  -  -   26,560   26,560 
Adjusted Property EBITDA$13,649 $5,729 $210,441  $117,446 $53,862 $8,642  $-  $409,769 
                         
                         
 Three Months Ended December 31, 2018 
 Altira
Macau		 Mocha City of
Dreams		 Studio
City		 City of Dreams
Manila		 Cyprus
Operations		 Corporate and
Other		 Total 
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Restated)(3) (Restated)(3) (Restated)(3) (Restated)(3) 
                         
Operating Income (Loss)$14,591 $2,050 $165,786  $56,174 $25,824 $(673) $(60,424) $203,328 
                         
Payments to the Philippine Parties -  -  -   -  15,030  -   -   15,030 
Land Rent to Belle Corporation -  -  -   -  747  -   -   747 
Pre-opening Costs 37  -  (33)  4,140  138  716   -   4,998 
Development Costs -  -  -   -  -  -   11,301   11,301 
Depreciation and Amortization 5,185  2,181  63,175   41,569  18,680  2,192   18,886   151,868 
Share-based Compensation 110  47  873   423  270  26   5,176   6,925 
Property Charges and Other 238  454  (57)  377  7,181  -   (3)  8,190 
Adjusted EBITDA 20,161  4,732  229,744   102,683  67,870  2,261   (25,064)  402,387 
Corporate and Other Expenses -  -  -   -  -  -   25,064   25,064 
Adjusted Property EBITDA$20,161 $4,732 $229,744  $102,683 $67,870 $2,261  $-  $427,451 
                         

 

Melco Resorts & Entertainment Limited and Subsidiaries 
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA 
(In thousands of U.S. dollars) 
                         
                         
 Year Ended December 31, 2019 
 Altira
Macau		 Mocha City of
Dreams		 Studio
City		 City of Dreams
Manila		 Cyprus
Operations		 Corporate and
Other		 Total 
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) 
                         
Operating Income (Loss)$27,830 $16,160  $655,234 $221,947 $100,381  $16,849  $(290,723) $747,678 
                         
Payments to the Philippine Parties -  -   -  -  57,428   -   -   57,428 
Land Rent to Belle Corporation -  -   -  -  3,061   -   -   3,061 
Pre-opening Costs 25  -   31  2,567  (7)  2,231   -   4,847 
Development Costs -  -   -  -  -   -   57,433   57,433 
Depreciation and Amortization 23,159  7,295   258,407  180,038  80,617   10,498   91,191   651,205 
Share-based Compensation 376  153   3,791  1,489  1,427   179   24,382   31,797 
Property Charges and Other 80  (328)  5,313  9,057  4,184   -   2,509   20,815 
Adjusted EBITDA 51,470  23,280   922,776  415,098  247,091   29,757   (115,208)  1,574,264 
Corporate and Other Expenses -  -   -  -  -   -   115,208   115,208 
Adjusted Property EBITDA$51,470 $23,280  $922,776 $415,098 $247,091  $29,757  $-  $1,689,472 
                         
                         
 Year Ended December 31, 2018 
 Altira
Macau		 Mocha City of
Dreams		 Studio City City of Dreams
Manila		 Cyprus
Operations		 Corporate and
Other		 Total 
 (Unaudited) (Unaudited) (Restated)(3) (Unaudited) (Restated)(3) (Restated)(3) (Restated)(3) (Restated)(3) 
                         
Operating Income (Loss)$34,789 $12,897  $500,200 $188,684 $122,908  $(13,464) $(232,567) $613,447 
                         
Payments to the Philippine Parties -  -   -  -  60,778   -   -   60,778 
Land Rent to Belle Corporation -  -   -  -  3,001   -   -   3,001 
Pre-opening Costs 37  -   32,624  4,550  158   18,021   -   55,390 
Development Costs -  -   -  -  -   -   23,029   23,029 
Depreciation and Amortization 19,655  8,413   209,622  176,006  75,274   3,825   75,106   567,901 
Share-based Compensation 388  158   3,472  1,577  (129)  79   19,598   25,143 
Property Charges and Other 678  22   10,460  4,471  7,209   -   6,307   29,147 
Adjusted EBITDA 55,547  21,490   756,378  375,288  269,199   8,461   (108,527)  1,377,836 
Corporate and Other Expenses -  -   -  -  -   -   108,527   108,527 
Adjusted Property EBITDA$55,547 $21,490  $756,378 $375,288 $269,199  $8,461  $-  $1,486,363 
                         

 

Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net Income Attributable to Melco Resorts & Entertainment Limited to
Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
            
            
 Three Months Ended Year Ended
 December 31, December 31,
 2019 2018  2019 2018 
 (Unaudited) (Restated)(3) (Unaudited) (Restated)(3)
            
Net Income Attributable to Melco Resorts & Entertainment Limited$68,139 $126,583  $373,173 $340,299 
Net Income (Loss) Attributable to Noncontrolling Interests 12,684  1,689   21,055  (1,403)
Net Income 80,823  128,272   394,228  338,896 
Income Tax Expense (Credit) 1,562  (5,477)  8,339  238 
Interest and Other Non-Operating Expenses, Net 91,064  80,533   345,111  274,313 
Property Charges and Other 1,237  8,190   20,815  29,147 
Share-based Compensation 9,283  6,925   31,797  25,143 
Depreciation and Amortization 169,260  151,868   651,205  567,901 
Development Costs 17,560  11,301   57,433  23,029 
Pre-opening Costs 209  4,998   4,847  55,390 
Land Rent to Belle Corporation 778  747   3,061  3,001 
Payments to the Philippine Parties 11,433  15,030   57,428  60,778 
Adjusted EBITDA 383,209  402,387   1,574,264  1,377,836 
Corporate and Other Expenses 26,560  25,064   115,208  108,527 
Adjusted Property EBITDA$409,769 $427,451  $1,689,472 $1,486,363 
            

 

Melco Resorts & Entertainment Limited and Subsidiaries 
Supplemental Data Schedule 
            
            
    Three Months Ended Year Ended 
    December 31, December 31, 
     2019   2018   2019   2018  
Room Statistics:           
Altira Macau           
Average daily rate (4)  $184  $188  $179  $189  
Occupancy per available room  99%  100%  99%  99% 
Revenue per available room (5) $182  $188  $177  $188  
            
City of Dreams           
Average daily rate (4)  $217  $222  $209  $212  
Occupancy per available room  98%  97%  98%  97% 
Revenue per available room (5) $212  $216  $205  $206  
            
Studio City           
Average daily rate (4)  $138  $138  $135  $138  
Occupancy per available room  100%  100%  100%  100% 
Revenue per available room (5) $138  $138  $135  $138  
            
City of Dreams Manila          
Average daily rate (4)  $178  $162  $176  $159  
Occupancy per available room  98%  98%  98%  98% 
Revenue per available room (5) $176  $159  $173  $156  
            
            
Other Information:           
Altira Macau           
Average number of table games  102   103   103   104  
Average number of gaming machines  195   136   178   129  
Table games win per unit per day (6) $18,839  $23,849  $19,605  $20,546  
Gaming machines win per unit per day (7)$145  $102  $195  $137  
            
City of Dreams           
Average number of table games  511   477   516   476  
Average number of gaming machines  782   774   822   724  
Table games win per unit per day (6) $18,855  $18,187  $18,504  $16,257  
Gaming machines win per unit per day (7)$724  $547  $562  $737  
            
Studio City           
Average number of table games  292   293   293   292  
Average number of gaming machines  935   987   947   957  
Table games win per unit per day (6) $13,204  $13,233  $12,663  $14,076  
Gaming machines win per unit per day (7)$242  $254  $230  $240  
            
City of Dreams Manila          
Average number of table games  324   301   311   300  
Average number of gaming machines  2,280   2,057   2,265   1,929  
Table games win per unit per day (6) $4,340  $5,408  $4,421  $5,536  
Gaming machines win per unit per day (7)$266  $261  $259  $278  
            
Cyprus Operations          
Average number of table games  37   34   38   33  
Average number of gaming machines  436   275   388   264  
Table games win per unit per day (6) $2,212  $1,787  $2,475  $2,206  
Gaming machines win per unit per day (7)$429  $397  $431  $388  
            
            
(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 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 
(7) Gaming machines win per unit per day is shown before non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis 

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Source: Melco Resorts & Entertainment Limited

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