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Melco Announces Unaudited First Quarter 2017 Earnings and Declares Quarterly Dividend

MACAU, May 04, 2017 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq:MLCO), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia, today reported its unaudited financial results for the first quarter of 2017.

Net revenue for the first quarter of 2017 was US$1,277.2 million, representing an increase of approximately 16% from US$1,103.6 million for the comparable period in 2016. The increase in net revenue was primarily attributable to improved group-wide rolling chip and mass market table games revenues.

On a U.S. GAAP basis, operating income for the first quarter of 2017 was US$158.5 million, compared with operating income of US$65.8 million in the first quarter of 2016, representing an increase of 141%.

Adjusted property EBITDA(1) was US$353.3 million for the first quarter of 2017, as compared to Adjusted property EBITDA of US$248.8 million in the first quarter of 2016, representing an increase of 42%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to better performance in group-wide rolling chip and mass market table games segments.

On a U.S. GAAP basis, net income attributable to Melco Resorts & Entertainment Limited for the first quarter of 2017 was US$113.4 million, or US$0.23 per ADS, compared with net income attributable to Melco Resorts & Entertainment Limited of US$39.8 million, or US$0.07 per ADS, in the first quarter of 2016. The net loss attributable to noncontrolling interests during the first quarter of 2017 of US$10.6 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “In the first quarter of 2017, we delivered a strong set of results as highlighted by a 42% year-on-year increase in group-wide Adjusted property EBITDA, driven by expanding revenues across both Macau and the Philippines.

“City of Dreams delivered Adjusted property EBITDA of approximately US$214 million, a sequential increase of over 13% compared to the prior quarter, despite an increase in supply in Macau. We recently announced a range of exciting enhancements to City of Dreams, our flagship integrated resort in Macau, which we believe will help us continue to be one of the leaders of the market in the premium segments in Macau.

“We will replace the Hard Rock hotel brand at City of Dreams with a temporary hotel brand, “The Countdown”, beginning in July 2017. The Countdown Hotel will operate until March 31, 2018, at which time we will open Morpheus, an approximately 780 room, luxury hotel that will change the landscape in Macau with what we believe is a truly iconic design. Upon the opening of Morpheus, The Countdown will be rebranded and redeveloped into a new hotel concept which we believe will enhance the integrated resort’s premium positioning.

“Studio City generated a year-over-year increase in Adjusted property EBITDA of approximately 207%, driven by a 39% year-over-year increase in mass table games revenue and contribution from the rolling chip operations which continues to ramp up following its introduction in November 2016.

“City of Dreams Manila delivered a fifth quarter of record Adjusted property EBITDA as a result of improvements across all gaming segments. Our investment in the Philippines gaming market provides our company with ongoing diversification of earnings and has enabled us to participate in, and contribute to, one of the world’s fastest growing gaming and tourism markets. Our entry into the Philippine gaming market highlights our dedication to investing in development opportunities that create long term value for our shareholders.

“Early this year, we received shareholder approval to change our company’s name to Melco Resorts & Entertainment Limited, reflecting a corporate identity which is more closely aligned to our long term vision of building the world’s leading luxury gaming, entertainment and hospitality company.”

City of Dreams First Quarter Results

For the quarter ended March 31, 2017, net revenue at City of Dreams was US$693.2 million compared to US$678.6 million in the first quarter of 2016. City of Dreams generated Adjusted EBITDA of US$213.5 million in the first quarter of 2017, representing an increase of 4% compared to US$205.6 million in the comparable period of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of greater rolling chip gross gaming revenues and increased non-gaming revenue.

Rolling chip volume totaled US$12.6 billion for the first quarter of 2017 versus US$9.8 billion in the first quarter of 2016. The rolling chip win rate was 2.7% in the first quarter of 2017 versus 3.2% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop decreased to US$1,059.8 million compared with US$1,073.5 million in the first quarter of 2016. The mass market table games hold percentage was 36.9% in the first quarter of 2017 compared to 36.7% in the first quarter of 2016.

Gaming machine handle for the first quarter of 2017 was US$1,025.9 million, compared with US$1,044.5 million in the first quarter of 2016. The gaming machine win rate was 3.4% for both quarters ended March 31, 2017 and 2016.

Total non-gaming revenue at City of Dreams in the first quarter of 2017 was US$77.8 million, compared with US$62.0 million in the first quarter of 2016.

Altira Macau First Quarter Results

For the quarter ended March 31, 2017, net revenue at Altira Macau was US$109.1 million compared to US$108.4 million in the first quarter of 2016. Altira Macau generated Adjusted EBITDA of US$3.7 million in the first quarter of 2017 compared with negative Adjusted EBITDA of US$14.0 million in the first quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of a lower provision for doubtful debt.

Rolling chip volume totaled US$4.1 billion in the first quarter of 2017 versus US$4.6 billion in the first quarter of 2016. The rolling chip win rate was 3.1% in the first quarter of 2017 versus 2.8% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$99.7 million in the first quarter of 2017, a decrease from US$135.2 million generated in the comparable period in 2016. The mass market table games hold percentage was 20.6% in the first quarter of 2017 compared with 17.0% in the first quarter of 2016.

Gaming machine handle for the first quarter of 2017 was US$8.0 million, compared with US$8.7 million in the first quarter of 2016. The gaming machine win rate was 5.8% in the first quarter of 2017 versus 5.9% in the first quarter of 2016.

Total non-gaming revenue at Altira Macau in the first quarter of 2017 was US$6.6 million compared with US$6.9 million in the first quarter of 2016.

Mocha Clubs First Quarter Results

Net revenue from Mocha Clubs totaled US$31.1 million in the first quarter of 2017 as compared to US$31.8 million in the first quarter of 2016. Mocha Clubs generated US$7.1 million of Adjusted EBITDA in the first quarter of 2017 compared with US$6.5 million in the same period in 2016.

Gaming machine handle for the first quarter of 2017 was US$603.1 million, compared with US$670.7 million in the first quarter of 2016. The gaming machine win rate was 5.0% in the first quarter of 2017 versus 4.6% in the first quarter of 2016.

Studio City First Quarter Results

For the quarter ended March 31, 2017, net revenue at Studio City was US$277.9 million compared to US$178.7 million in the first quarter of 2016. Studio City generated Adjusted EBITDA of US$67.8 million in the first quarter of 2017 compared with Adjusted EBITDA of US$22.1 million in the first quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of commencement of rolling chip operations in November 2016 and better performance in mass market table games segment.

Rolling chip volume totaled US$3.6 billion for the first quarter of 2017. The rolling chip win rate was 2.4% in the first quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$656.3 million compared with US$547.0 million in the first quarter of 2016. The mass market table games hold percentage was 26.4% in the first quarter of 2017 compared to 22.8% in the first quarter of 2016.

Gaming machine handle for the first quarter of 2017 was US$497.4 million, compared with US$409.7 million in the first quarter of 2016. The gaming machine win rate was 3.7% in the first quarter of 2017 versus 3.6% in the first quarter of 2016.

Total non-gaming revenue at Studio City in the first quarter of 2017 was US$50.8 million, compared with US$58.2 million in the first quarter of 2016.

City of Dreams Manila First Quarter Results

For the quarter ended March 31, 2017, net revenue at City of Dreams Manila was US$157.4 million compared to US$95.4 million in the first quarter of 2016. City of Dreams Manila generated Adjusted EBITDA of US$61.1 million in the first quarter of 2017 compared to US$28.6 million in the comparable period of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues.

Rolling chip volume totaled US$2.4 billion for the first quarter of 2017 versus US$1.5 billion in the first quarter of 2016. The rolling chip win rate was 3.4% in the first quarter of 2017 versus 2.8% in the first quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$153.9 million for the first quarter of 2017, compared with US$120.4 million in the first quarter of 2016. The mass market table games hold percentage was 28.7% in the first quarter of 2017 compared to 27.5% in the first quarter of 2016.

Gaming machine handle for the first quarter of 2017 was US$729.9 million, compared with US$451.4 million in the first quarter of 2016. The gaming machine win rate was 6.2% in the first quarter of 2017 versus 6.1% in the first quarter of 2016.

Total non-gaming revenue at City of Dreams Manila in the first quarter of 2017 was US$27.6 million, compared with US$24.1 million in the first quarter of 2016.

Other Factors Affecting Earnings

Total net non-operating expenses for the first quarter of 2017 were US$57.4 million, which mainly included interest expenses, net of capitalized interest, of US$58.6 million, other finance costs of US$8.8 million and a net foreign exchange gain of US$8.7 million. We recorded US$8.9 million of capitalized interest during the first quarter of 2017, primarily relating to the development of Morpheus at City of Dreams.

The year-on-year decrease of US$2.7 million in net non-operating expenses was primarily a result of higher net foreign exchange gain in the current quarter.

Depreciation and amortization costs of US$137.6 million were recorded in the first quarter of 2017, of which US$14.3 million was related to the amortization of our gaming subconcession and US$5.7 million was related to the amortization of land use rights.

Financial Position and Capital Expenditure

Total cash and bank balances as of March 31, 2017 were US$1.5 billion, including US$20.0 million of bank deposits with original maturities over three months and US$78.7 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the first quarter of 2017, was US$3.7 billion.

Capital expenditures for the first quarter of 2017 were US$93.9 million, which predominantly related to various projects at City of Dreams, including Morpheus.

Dividend Declaration

On May 4, 2017, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.03 per share (equivalent to US$0.09 per ADS) for the first quarter of 2017 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about Wednesday, May 31, 2017 to our shareholders whose names appear on the register of members of the Company at the close of business on Tuesday, May 16, 2017, being the record date for determination of entitlements to the Quarterly Dividend.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its first quarter 2017 financial results on Thursday, May 4, 2017 at 8:30 a.m. Eastern Time (8:30 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 / International 1 845 675 0437
HK Toll 852 3018 6771
HK Toll Free800 906 601
UK Toll Free080 8234 6646
Australia Toll61 290 833 212
Australia Toll Free 1 800 411 623
Philippines Toll Free1 800 1651 0607
Passcode MLCO
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 Free 800 963 117
Philippines Toll Free 1 800 1612 0166
Conference ID 11046686

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 and the Philippines, (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 others, 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 others, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Others 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 and property charges and others, 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. 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.cityofdreams.com.ph), a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. 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:
Ross Dunwoody
Vice President, Development & Investor Relations
Tel: +853 8868 7575 or +852 2598 3689
Email: rossdunwoody@melco-resorts.com

For media enquiries, please contact:
Maggie Ma
Chief Corporate Communications and Corporate Affairs Officer
Tel: +853 8868 3767 or +852 3151 3767
Email: maggiema@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
March 31,
2017 2016
(Unaudited) (Unaudited)
OPERATING REVENUES
Casino$1,189,009 $1,022,258
Rooms 66,437 63,452
Food and beverage 44,826 40,984
Entertainment, retail and others 52,882 48,202
Gross revenues 1,353,154 1,174,896
Less: promotional allowances (75,934) (71,329)
Net revenues 1,277,220 1,103,567
OPERATING COSTS AND EXPENSES
Casino (802,733) (723,583)
Rooms (8,190) (8,536)
Food and beverage (14,620) (18,073)
Entertainment, retail and others (22,408) (29,075)
General and administrative (110,795) (110,319)
Payments to the Philippine Parties (15,439) (7,160)
Pre-opening costs (475) (635)
Development costs (1,017) (6)
Amortization of gaming subconcession (14,309) (14,309)
Amortization of land use rights (5,704) (5,704)
Depreciation and amortization (117,569) (119,971)
Property charges and others (5,464) (404)
Total operating costs and expenses (1,118,723) (1,037,775)
OPERATING INCOME 158,497 65,792
NON-OPERATING INCOME (EXPENSES)
Interest income 557 2,804
Interest expenses, net of capitalized interest (58,556) (52,490)
Other finance costs (8,788) (13,838)
Foreign exchange gains, net 8,709 2,556
Other income, net 659 842
Total non-operating expenses, net (57,419) (60,126)
INCOME BEFORE INCOME TAX 101,078 5,666
INCOME TAX CREDIT (EXPENSE) 1,753 (938)
NET INCOME 102,831 4,728
NET LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 10,615 35,068
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED$113,446 $39,796
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:
Basic$0.077 $0.025
Diluted$0.077 $0.024
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:
Basic$0.232 $0.074
Diluted$0.231 $0.073
WEIGHTED AVERAGE SHARES OUTSTANDING USED IN
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic 1,465,423,013 1,618,015,902
Diluted 1,476,279,580 1,626,113,586

Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
March 31, December 31,
2017 2016
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents$1,356,136 $1,702,310
Bank deposits with original maturities over three months 20,000 210,840
Restricted cash 78,583 39,152
Accounts receivable, net 179,731 225,438
Amounts due from affiliated companies 551 1,103
Inventories 32,392 32,600
Prepaid expenses and other current assets 81,465 68,111
Total current assets 1,748,858 2,279,554
PROPERTY AND EQUIPMENT, NET 5,626,651 5,655,823
GAMING SUBCONCESSION, NET 299,011 313,320
INTANGIBLE ASSETS 4,220 4,220
GOODWILL 81,915 81,915
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS 193,708 194,911
RESTRICTED CASH 130 130
DEFERRED TAX ASSETS 187 152
LAND USE RIGHTS, NET 804,612 810,316
TOTAL ASSETS$8,759,292 $9,340,341
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable$19,039 $17,434
Accrued expenses and other current liabilities 1,385,951 1,369,943
Income tax payable 3,299 7,422
Capital lease obligations, due within one year 31,163 30,730
Current portion of long-term debt, net 50,699 50,583
Amounts due to affiliated companies 926 3,028
Total current liabilities 1,491,077 1,479,140
LONG-TERM DEBT, NET 3,660,102 3,669,692
OTHER LONG-TERM LIABILITIES 50,431 49,287
DEFERRED TAX LIABILITIES 56,030 56,451
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR 261,239 262,357
SHAREHOLDERS' EQUITY
Ordinary shares 14,759 14,759
Treasury shares (89) (108)
Additional paid-in capital 2,787,277 2,783,062
Accumulated other comprehensive losses (25,232) (24,768)
(Accumulated losses) retained earnings (4,814) 570,925
Total Melco Resorts & Entertainment Limited shareholders’ equity 2,771,901 3,343,870
Noncontrolling interests 468,512 479,544
Total equity 3,240,413 3,823,414
TOTAL LIABILITIES AND EQUITY$8,759,292 $9,340,341

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
March 31,
2017 2016
(Unaudited) (Unaudited)
Net Income Attributable to
Melco Resorts & Entertainment Limited$113,446 $39,796
Pre-opening Costs 475 635
Development Costs 1,017 6
Property Charges and Others 5,464 404
Income Tax Impact on Adjustments (259) (2)
Noncontrolling Interests Impact on Adjustments 8 (339)
Adjusted Net Income Attributable to
Melco Resorts & Entertainment Limited$120,151 $40,500
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:
Basic$0.082 $0.025
Diluted$0.081 $0.025
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:
Basic$0.246 $0.075
Diluted$0.244 $0.075
WEIGHTED AVERAGE SHARES OUTSTANDING USED IN ADJUSTED
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic 1,465,423,013 1,618,015,902
Diluted 1,476,279,580 1,626,113,586

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 March 31, 2017
Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
Corporate
and Others
Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating (Loss) Income$(2,073) $4,863 $164,399 $21,555 $23,497 $(53,744) $158,497
Payments to the Philippine Parties - - - - 15,439 - 15,439
Land Rent to Belle Corporation - - - - 791 - 791
Pre-opening Costs - - 494 (19) - - 475
Development Costs - - - - - 1,017 1,017
Depreciation and Amortization 5,689 2,187 44,779 45,976 21,498 17,453 137,582
Share-based Compensation 42 (6) 526 286 (87) 826 1,587
Property Charges and Others 57 62 3,343 - - 2,002 5,464
Adjusted EBITDA 3,715 7,106 213,541 67,798 61,138 (32,446) 320,852
Corporate and Others Expenses - - - - - 32,446 32,446
Adjusted Property EBITDA$3,715 $7,106 $213,541 $67,798 $61,138 $- $353,298
Three Months Ended March 31, 2016
Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
Corporate
and Others
Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating (Loss) Income$(19,901) $3,361 $160,562 $(23,329) $(5,437) $(49,464) $65,792
Payments to the Philippine Parties - - - - 7,160 - 7,160
Land Rent to Belle Corporation - - - - 840 - 840
Pre-opening Costs - - 77 558 - - 635
Development Costs - - - - - 6 6
Depreciation and Amortization 5,826 3,079 44,301 44,707 24,275 17,796 139,984
Share-based Compensation (82) 34 473 124 1,775 3,213 5,537
Property Charges and Others 197 - 191 - - 16 404
Adjusted EBITDA (13,960) 6,474 205,604 22,060 28,613 (28,433) 220,358
Corporate and Others Expenses - - - - - 28,433 28,433
Adjusted Property EBITDA$(13,960) $6,474 $205,604 $22,060 $28,613 $- $248,791

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
March 31,
2017 2016
(Unaudited) (Unaudited)
Net Income Attributable to Melco Resorts & Entertainment Limited $113,446 $39,796
Net Loss Attributable to Noncontrolling Interests (10,615) (35,068)
Net Income 102,831 4,728
Income Tax (Credit) Expense (1,753) 938
Interest and Other Non-Operating Expenses, Net 57,419 60,126
Property Charges and Others 5,464 404
Share-based Compensation 1,587 5,537
Depreciation and Amortization 137,582 139,984
Development Costs 1,017 6
Pre-opening Costs 475 635
Land Rent to Belle Corporation 791 840
Payments to the Philippine Parties 15,439 7,160
Adjusted EBITDA 320,852 220,358
Corporate and Others Expenses 32,446 28,433
Adjusted Property EBITDA $353,298 $248,791

Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
Three Months Ended
March 31,
2017 2016
Room Statistics:
Altira Macau
Average daily rate (3) $207 $208
Occupancy per available room 92% 95%
Revenue per available room (4) $190 $197
City of Dreams
Average daily rate (3) $200 $197
Occupancy per available room 97% 94%
Revenue per available room (4) $194 $185
Studio City
Average daily rate (3) $139 $137
Occupancy per available room 99% 96%
Revenue per available room (4) $138 $131
City of Dreams Manila
Average daily rate (3) $154 $157
Occupancy per available room 98% 86%
Revenue per available room (4) $150 $135
Other Information:
Altira Macau
Average number of table games 114 127
Average number of gaming machines 56 62
Table games win per unit per day (5) $14,304 $12,823
Gaming machines win per unit per day (6) $93 $91
City of Dreams
Average number of table games 480 500
Average number of gaming machines 839 1,072
Table games win per unit per day (5) $17,003 $15,648
Gaming machines win per unit per day (6) $467 $364
Studio City
Average number of table games 282 246
Average number of gaming machines 972 1,113
Table games win per unit per day (5) $10,179 $5,561
Gaming machines win per unit per day (6) $211 $146
City of Dreams Manila
Average number of table games 270 277
Average number of gaming machines 1,773 1,656
Table games win per unit per day (5) $5,193 $2,959
Gaming machines win per unit per day (6) $285 $183
(3) Average daily rate is calculated by dividing total room revenue including the retail value of promotional allowances by total occupied rooms including complimentary rooms
(4) Revenue per available room is calculated by dividing total room revenue including the retail value of promotional allowances by total rooms available
(5) Table games win per unit per day is shown before discounts and commissions
(6) Gaming machines win per unit per day is shown before deducting cost for slot points

Source:MPEL Services Limited