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Melco Announces Unaudited Second Quarter 2017 Earnings and Declares Quarterly Dividend

MACAU, July 27, 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 second quarter of 2017.

Net revenue for the second quarter of 2017 was US$1,298.2 million, representing an increase of approximately 21% from US$1,070.4 million for the comparable period in 2016. The increase in net revenue was primarily attributable to improved group-wide rolling chip revenues.

On a U.S. GAAP basis, operating income for the second quarter of 2017 was US$127.4 million, compared with operating income of US$72.4 million in the second quarter of 2016, representing an increase of 76%.

Adjusted property EBITDA(1) was US$329.5 million for the second quarter of 2017, as compared to Adjusted property EBITDA of US$245.3 million in the second quarter of 2016, representing an increase of 34%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to better performance in the group-wide rolling chip segment.

On a U.S. GAAP basis, net income attributable to Melco Resorts & Entertainment Limited for the second quarter of 2017 was US$36.5 million, or US$0.08 per ADS, compared with US$30.8 million, or US$0.06 per ADS, in the second quarter of 2016. The net loss attributable to noncontrolling interests during the second quarter of 2017 of US$8.0 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “Macau continues on its strong growth trajectory, with all gaming segments delivering impressive year-over-year growth driven by improving tourism demographics, an ongoing improvement in player sentiment as well as an expansion of non-gaming amenities across Macau.

“As Macau evolves into a destination that offers a full breadth of gaming and non-gaming amenities to a wider range of customers from around the region, we are committed to ensuring our integrated resorts are well positioned to cater to these evolving trends.

“City of Dreams in Macau is undergoing its final development phase which, upon completion, will result in our flagship integrated resort once again setting new benchmarks of luxury and premium-focused entertainment and hospitality, reflecting a culmination of over a decade of experience in serving high-end and increasingly discerning customers in Macau.

“With the opening of Morpheus in the first half of 2018, and the redevelopment of the Countdown, the property will have approximately 2,100 five-star and luxury hotel rooms, to complement the integrated resort’s already market-leading premium mass and direct VIP gaming amenities and other non-gaming offerings.

“Studio City, our second integrated resort in Cotai, provides an ideal complement to City of Dreams. The integrated resort’s focus on more mainstream mass market customers allows us to broaden our customer reach. The property continues to ramp up its core mass market operations, while the newly opened rolling chip operations provide an incremental driver for revenue and earnings growth.

“In the Philippines, City of Dreams Manila continues to deliver record revenue and Property EBITDA, resulting in an impressive return on invested capital. Our decision to invest in this fast growing and attractive market is testament to our approach of identifying and investing in markets that drive long term value for our shareholders.

“While we remain committed to maximizing profitability of our current operations, we are also heavily focused on identifying additional value-accretive expansion opportunities, with a particular focus on Japan. We believe that our high quality assets, market-leading social safeguard systems and commitment to being an ideal partner to local governments and communities alike, as we have shown in Macau and the Philippines, places us in a strong position to compete for a license in this exciting market.”

City of Dreams Second Quarter Results

For the quarter ended June 30, 2017, net revenue at City of Dreams was US$644.6 million compared to US$629.9 million in the second quarter of 2016. City of Dreams generated Adjusted EBITDA of US$175.3 million in the second quarter of 2017 compared with Adjusted EBITDA of US$177.7 million in the second quarter of 2016.

Rolling chip volume totaled US$12.2 billion for the second quarter of 2017 versus US$9.9 billion in the second quarter of 2016. The rolling chip win rate was 2.9% in the second quarter of 2017 versus 3.0% in the second quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$1,073.2 million compared with US$1,027.7 million in the second quarter of 2016. The mass market table games hold percentage was 32.4% in the second quarter of 2017 compared to 35.7% in the second quarter of 2016.

Gaming machine handle for the second quarter of 2017 was US$937.9 million, compared with US$1,003.5 million in the second quarter of 2016. The gaming machine win rate was 4.0% in the second quarter of 2017 versus 3.2% in the second quarter of 2016.

Total non-gaming revenue at City of Dreams in the second quarter of 2017 was US$74.6 million, compared with US$62.8 million in the second quarter of 2016.

Altira Macau Second Quarter Results

For the quarter ended June 30, 2017, net revenue at Altira Macau was US$107.6 million compared to US$98.7 million in the second quarter of 2016. Altira Macau generated Adjusted EBITDA of US$5.1 million in the second quarter of 2017 compared with Adjusted EBITDA of US$1.7 million in the second quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of higher rolling chip revenues, partially offset by lower mass market table games revenues.

Rolling chip volume totaled US$4.0 billion in the second quarter of 2017 versus US$4.2 billion in the second quarter of 2016. The rolling chip win rate was 3.3% in the second quarter of 2017 versus 2.7% in the second 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$91.9 million in the second quarter of 2017, a decrease from US$124.2 million generated in the comparable period in 2016. The mass market table games hold percentage was 15.2% in the second quarter of 2017 compared with 18.5% in the second quarter of 2016.

Gaming machine handle for the second quarter of 2017 was US$7.6 million, compared with US$7.3 million in the second quarter of 2016. The gaming machine win rate was 6.0% in the second quarter of 2017 versus 6.5% in the second quarter of 2016.

Total non-gaming revenue at Altira Macau in the second quarter of 2017 was US$6.1 million compared with US$6.8 million in the second quarter of 2016.

Mocha Clubs Second Quarter Results

Net revenue from Mocha Clubs totaled US$29.3 million in the second quarter of 2017 as compared to US$28.0 million in the second quarter of 2016. Mocha Clubs generated US$5.6 million of Adjusted EBITDA in the second quarter of 2017 compared with US$4.8 million in the same period in 2016.

Gaming machine handle for the second quarter of 2017 was US$592.4 million, compared with US$595.8 million in the second quarter of 2016. The gaming machine win rate was 4.8% in the second quarter of 2017 versus 4.6% in the second quarter of 2016.

Studio City Second Quarter Results

For the quarter ended June 30, 2017, net revenue at Studio City was US$332.1 million compared to US$183.8 million in the second quarter of 2016. Studio City generated Adjusted EBITDA of US$80.7 million in the second quarter of 2017 compared with Adjusted EBITDA of US$24.6 million in the second 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 the mass market table games segment.

Rolling chip volume totaled US$4.7 billion for the second quarter of 2017. The rolling chip win rate was 3.3% in the second quarter of 2017. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$661.4 million compared with US$592.2 million in the second quarter of 2016. The mass market table games hold percentage was 26.8% in the second quarter of 2017 compared to 22.8% in the second quarter of 2016.

Gaming machine handle for the second quarter of 2017 was US$502.9 million, compared with US$485.3 million in the second quarter of 2016. The gaming machine win rate was 3.7% in the second quarter of 2017 versus 3.6% in the second quarter of 2016.

Total non-gaming revenue at Studio City in the second quarter of 2017 was US$48.6 million, compared with US$51.1 million in the second quarter of 2016.

City of Dreams Manila Second Quarter Results

For the quarter ended June 30, 2017, net revenue at City of Dreams Manila was US$176.2 million compared to US$120.2 million in the second quarter of 2016. City of Dreams Manila generated Adjusted EBITDA of US$62.8 million in the second quarter of 2017 compared to US$36.5 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$3.2 billion for the second quarter of 2017 versus US$1.7 billion in the second quarter of 2016. The rolling chip win rate was 3.5% in the second quarter of 2017 versus 3.4% in the second quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$169.8 million for the second quarter of 2017, compared with US$134.3 million in the second quarter of 2016. The mass market table games hold percentage was 28.5% in the second quarter of 2017 compared to 29.9% in the second quarter of 2016.

Gaming machine handle for the second quarter of 2017 was US$759.0 million, compared with US$515.4 million in the second quarter of 2016. The gaming machine win rate was 5.9% in the second quarter of 2017 versus 5.8% in the second quarter of 2016.

Total non-gaming revenue at City of Dreams Manila in the second quarter of 2017 was US$28.1 million, compared with US$26.2 million in the second quarter of 2016.

Other Factors Affecting Earnings

Total net non-operating expenses for the second quarter of 2017 were US$97.9 million, which mainly included interest expenses, net of capitalized interest of US$58.5 million, other finance costs of US$8.3 million, loss on extinguishment of debt of US$31.5 million and costs associated with debt modification of US$1.9 million. We recorded US$9.0 million of capitalized interest during the second quarter of 2017, relating to the development of Morpheus at City of Dreams.

The year-on-year increase of US$28.8 million in net non-operating expenses was primarily a result of loss on extinguishment of debt arising from the refinancing of the US$1 billion Senior Notes issued in 2013 by Melco Resorts Finance Limited (formerly known as MCE Finance Limited).

Depreciation and amortization costs of US$135.5 million were recorded in the second 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 June 30, 2017 were US$1.5 billion, including US$52.7 million of bank deposits with original maturities over three months and US$42.2 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the second quarter of 2017, was US$3.7 billion.

Capital expenditures for the second quarter of 2017 were US$121.3 million, which predominantly related to various projects at City of Dreams, including Morpheus.

Dividend Declaration

On July 27, 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 second quarter of 2017 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about August 23, 2017 to our shareholders whose names appear on the register of members of the Company at the close of business on August 8, 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 second quarter 2017 financial results on Thursday, July 27, 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 Free 1 866 519 4004
US Toll / International 1 845 675 0437
HK Toll 852 3018 6771
HK Toll Free 800 906 601
UK Toll Free 080 8234 6646
Australia Toll 61 290 833 212
Australia Toll Free 1 800 411 623
Philippines Toll Free 1 800 1651 0607
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 Free 1 855 452 5696
US Toll / International 1 646 254 3697
HK Toll Free 800 963 117
Philippines Toll Free 1 800 1612 0166
Conference ID 52198985

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 other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation, net gain on disposal of property and equipment 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, net gain on disposal of property and equipment 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 net gain on disposal of property and equipment to Belle Corporation, 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. 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:
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 Six Months Ended
June 30, June 30,
2017 2016 2017 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
OPERATING REVENUES
Casino $ 1,213,968 $ 994,530 $ 2,402,977 $ 2,016,788
Rooms 65,589 64,417 132,026 127,869
Food and beverage 43,684 41,387 88,510 82,371
Entertainment, retail and other 49,600 42,853 102,482 91,055
Gross revenues 1,372,841 1,143,187 2,725,995 2,318,083
Less: promotional allowances (74,621) (72,789) (150,555) (144,118)
Net revenues 1,298,220 1,070,398 2,575,440 2,173,965
OPERATING COSTS AND EXPENSES
Casino (844,698) (696,444) (1,647,431) (1,420,027)
Rooms (8,025) (7,885) (16,215) (16,421)
Food and beverage (13,622) (16,422) (28,242) (34,495)
Entertainment, retail and other (21,644) (25,551) (44,052) (54,626)
General and administrative (122,786) (103,697) (233,581) (214,016)
Payments to the Philippine Parties (13,822) (8,249) (29,261) (15,409)
Pre-opening costs (525) (88) (1,000) (723)
Development costs (3,068) (1) (4,085) (7)
Amortization of gaming subconcession (14,309) (14,310) (28,618) (28,619)
Amortization of land use rights (5,704) (5,704) (11,408) (11,408)
Depreciation and amortization (115,510) (117,674) (233,079) (237,645)
Property charges and other (7,063) (1,954) (12,527) (2,358)
Total operating costs and expenses (1,170,776) (997,979) (2,289,499) (2,035,754)
OPERATING INCOME 127,444 72,419 285,941 138,211
NON-OPERATING INCOME (EXPENSES)
Interest income 915 199 1,472 3,003
Interest expenses, net of capitalized interest (58,549) (58,529) (117,105) (111,019)
Other finance costs (8,264) (14,065) (17,052) (27,903)
Foreign exchange gains, net 689 2,474 9,398 5,030
Other income, net 729 877 1,388 1,719
Loss on extinguishment of debt (31,459) - (31,459) -
Costs associated with debt modification (1,912) - (1,912) -
Total non-operating expenses, net (97,851) (69,044) (155,270) (129,170)
INCOME BEFORE INCOME TAX 29,593 3,375 130,671 9,041
INCOME TAX (EXPENSE) CREDIT (1,136) (1,416) 617 (2,354)
NET INCOME 28,457 1,959 131,288 6,687
NET LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 8,020 28,832 18,635 63,900
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED $ 36,477 $ 30,791 $ 149,923 $ 70,587
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:
Basic $ 0.025 $ 0.020 $ 0.102 $ 0.045
Diluted$ 0.025 $ 0.020 $ 0.101 $ 0.045
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:
Basic $ 0.075 $ 0.061 $ 0.307 $ 0.135
Diluted$ 0.074 $ 0.060 $ 0.304 $ 0.134
WEIGHTED AVERAGE SHARES OUTSTANDING
USED IN NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic 1,467,501,531 1,522,898,329 1,466,468,014 1,570,457,116
Diluted 1,479,331,486 1,531,076,031 1,477,811,276 1,578,594,809


Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
June 30, December 31,
2017 2016
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,369,704 $ 1,702,310
Bank deposits with original maturities over three months 52,707 210,840
Restricted cash 42,091 39,152
Accounts receivable, net 167,216 225,438
Amounts due from affiliated companies 167 1,103
Inventories 32,547 32,600
Prepaid expenses and other current assets 71,757 68,111
Total current assets 1,736,189 2,279,554
PROPERTY AND EQUIPMENT, NET 5,629,632 5,655,823
GAMING SUBCONCESSION, NET 284,702 313,320
INTANGIBLE ASSETS 4,220 4,220
GOODWILL 81,915 81,915
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS 209,611 194,911
RESTRICTED CASH 130 130
DEFERRED TAX ASSETS 220 152
LAND USE RIGHTS, NET 798,908 810,316
TOTAL ASSETS $ 8,745,527 $ 9,340,341
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 16,788 $ 17,434
Accrued expenses and other current liabilities 1,352,240 1,369,943
Income tax payable 4,585 7,422
Capital lease obligations, due within one year 31,723 30,730
Current portion of long-term debt, net 50,779 50,583
Amounts due to affiliated companies 6,931 3,028
Total current liabilities 1,463,046 1,479,140
LONG-TERM DEBT, NET 3,678,797 3,669,692
OTHER LONG-TERM LIABILITIES 55,649 49,287
DEFERRED TAX LIABILITIES 55,876 56,451
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR 260,749 262,357
AMOUNT DUE TO AN AFFILIATED COMPANY 689 -
SHAREHOLDERS' EQUITY
Ordinary shares 14,784 14,759
Treasury shares (105) (108)
Additional paid-in capital 3,706,633 2,783,062
Accumulated other comprehensive losses (25,615) (24,768)
(Accumulated losses) retained earnings (925,337) 570,925
Total Melco Resorts & Entertainment Limited shareholders’ equity 2,770,360 3,343,870
Noncontrolling interests 460,361 479,544
Total equity 3,230,721 3,823,414
TOTAL LIABILITIES AND EQUITY $ 8,745,527 $ 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 Six Months Ended
June 30, June 30,
2017 2016 2017 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Income Attributable to
Melco Resorts & Entertainment Limited$ 36,477 $ 30,791 $ 149,923 $ 70,587
Net Gain on Disposal of Property and Equipment to Belle Corporation - (8,134) - (8,134)
Pre-opening Costs 525 88 1,000 723
Development Costs 3,068 1 4,085 7
Property Charges and Other 7,063 1,954 12,527 2,358
Loss on Extinguishment of Debt 31,459 - 31,459 -
Costs Associated with Debt Modification 1,912 - 1,912 -
Income Tax Impact on Adjustments (89) (12) (348) (14)
Noncontrolling Interests Impact on Adjustments (1,760) 1,864 (1,752) 1,525
Adjusted Net Income Attributable to
Melco Resorts & Entertainment Limited$ 78,655 $ 26,552 $ 198,806 $ 67,052
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:
Basic $ 0.054 $ 0.017 $ 0.136 $ 0.043
Diluted$ 0.053 $ 0.017 $ 0.135 $ 0.042
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:
Basic $ 0.161 $ 0.052 $ 0.407 $ 0.128
Diluted$ 0.160 $ 0.052 $ 0.404 $ 0.127
WEIGHTED AVERAGE SHARES OUTSTANDING
USED IN ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic 1,467,501,531 1,522,898,329 1,466,468,014 1,570,457,116
Diluted 1,479,331,486 1,531,076,031 1,477,811,276 1,578,594,809


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 June 30, 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$ (142) $ 3,477 $ 127,845 $ 29,771 $ 26,901 $ (60,408) $ 127,444
Payments to the Philippine Parties - - - - 13,822 - 13,822
Land Rent to Belle Corporation - - - - 792 - 792
Pre-opening Costs - - 321 (21) 225 - 525
Development Costs - - - - - 3,068 3,068
Depreciation and Amortization 5,208 2,045 43,573 46,322 20,938 17,437 135,523
Share-based Compensation 40 54 758 319 160 3,903 5,234
Property Charges and Other - - 2,786 4,267 - 10 7,063
Adjusted EBITDA 5,106 5,576 175,283 80,658 62,838 (35,990) 293,471
Corporate and Others Expenses - - - - - 35,990 35,990
Adjusted Property EBITDA$ 5,106 $ 5,576 $ 175,283 $ 80,658 $ 62,838 $ - $ 329,461
Three Months Ended June 30, 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 $ (4,064) $ 1,792 $ 133,876 $ (21,056) $ 11,127 $ (49,256) $72,419
Payments to the Philippine Parties - - - - 8,249 - 8,249
Land Rent to Belle Corporation - - - - 846 - 846
Net Gain on Disposal of Property and Equipment to Belle Corporation - - - - (8,134) - (8,134)
Pre-opening Costs - - 225 (137) - - 88
Development Costs - - - - - 1 1
Depreciation and Amortization 5,754 3,007 42,982 44,758 23,633 17,554 137,688
Share-based Compensation 52 48 568 318 256 3,505 4,747
Property Charges and Other - - - 682 534 738 1,954
Adjusted EBITDA 1,742 4,847 177,651 24,565 36,511 (27,458) 217,858
Corporate and Others Expenses - - - - - 27,458 27,458
Adjusted Property EBITDA$ 1,742 $ 4,847 $ 177,651 $ 24,565 $ 36,511 $ - $ 245,316


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
Six Months Ended June 30, 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$ (2,215) $ 8,340 $ 292,244 $ 51,326 $ 50,398 $ (114,152) $ 285,941
Payments to the Philippine Parties - - - - 29,261 - 29,261
Land Rent to Belle Corporation - - - - 1,583 - 1,583
Pre-opening Costs - - 815 (40) 225 - 1,000
Development Costs - - - - - 4,085 4,085
Depreciation and Amortization 10,897 4,232 88,352 92,298 42,436 34,890 273,105
Share-based Compensation 82 48 1,284 605 73 4,729 6,821
Property Charges and Other 57 62 6,129 4,267 - 2,012 12,527
Adjusted EBITDA 8,821 12,682 388,824 148,456 123,976 (68,436) 614,323
Corporate and Others Expenses - - - - - 68,436 68,436
Adjusted Property EBITDA$ 8,821 $ 12,682 $ 388,824 $ 148,456 $ 123,976 $ - $ 682,759
Six Months Ended June 30, 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$ (23,965) $ 5,153 $ 294,438 $ (44,385) $ 5,690 $ (98,720) $ 138,211
Payments to the Philippine Parties - - - - 15,409 - 15,409
Land Rent to Belle Corporation - - - - 1,686 - 1,686
Net Gain on Disposal of Property and Equipment to Belle Corporation - - - - (8,134) - (8,134)
Pre-opening Costs - - 302 421 - - 723
Development Costs - - - - - 7 7
Depreciation and Amortization 11,580 6,086 87,283 89,465 47,908 35,350 277,672
Share-based Compensation (30) 82 1,041 442 2,031 6,718 10,284
Property Charges and Other 197 - 191 682 534 754 2,358
Adjusted EBITDA (12,218) 11,321 383,255 46,625 65,124 (55,891) 438,216
Corporate and Others Expenses - - - - - 55,891 55,891
Adjusted Property EBITDA$ (12,218) $ 11,321 $ 383,255 $ 46,625 $ 65,124 $ - $ 494,107


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 Six Months Ended
June 30, June 30,
2017
2016
2017
2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Income Attributable to Melco Resorts & Entertainment Limited $ 36,477 $30,791 $ 149,923 $ 70,587
Net Loss Attributable to Noncontrolling Interests (8,020) (28,832) (18,635) (63,900)
Net Income 28,457 1,959 131,288 6,687
Income Tax Expense (Credit) 1,136 1,416 (617) 2,354
Interest and Other Non-Operating Expenses, Net 97,851 69,044 155,270 129,170
Property Charges and Other 7,063 1,954 12,527 2,358
Share-based Compensation 5,234 4,747 6,821 10,284
Depreciation and Amortization 135,523 137,688 273,105 277,672
Development Costs 3,068 1 4,085 7
Pre-opening Costs 525 88 1,000 723
Net Gain on Disposal of Property and Equipment to Belle Corporation - (8,134) - (8,134)
Land Rent to Belle Corporation 792 846 1,583 1,686
Payments to the Philippine Parties 13,822 8,249 29,261 15,409
Adjusted EBITDA 293,471 217,858 614,323 438,216
Corporate and Others Expenses 35,990 27,458 68,436 55,891
Adjusted Property EBITDA $ 329,461 $ 245,316 $ 682,759 $ 494,107


Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
Room Statistics:
Altira Macau
Average daily rate (3) $200 $203 $204 $206
Occupancy per available room 95% 92% 93% 93%
Revenue per available room (4) $190 $187 $190 $192
City of Dreams
Average daily rate (3) $199 $200 $199 $198
Occupancy per available room 96% 94% 97% 94%
Revenue per available room (4) $192 $189 $193 $187
Studio City
Average daily rate (3) $135 $133 $137 $135
Occupancy per available room 98% 96% 99% 96%
Revenue per available room (4) $133 $127 $135 $129
City of Dreams Manila
Average daily rate (3) $156 $167 $155 $162
Occupancy per available room 95% 91% 96% 88%
Revenue per available room (4) $149 $152 $149 $143
Other Information:
Altira Macau
Average number of table games 108 126 111 127
Average number of gaming machines 56 62 56 62
Table games win per unit per day (5) $14,633 $11,918 $14,465 $12,374
Gaming machines win per unit per day (6) $89 $84 $91 $88
City of Dreams
Average number of table games 480 498 480 499
Average number of gaming machines 762 1,053 800 1,062
Table games win per unit per day (5) $16,172 $14,667 $16,585 $15,158
Gaming machines win per unit per day (6) $541 $338 $503 $351
Studio City
Average number of table games 287 245 284 246
Average number of gaming machines 981 1,073 976 1,093
Table games win per unit per day (5) $12,729 $6,059 $11,472 $5,809
Gaming machines win per unit per day (6) $208 $181 $210 $164
City of Dreams Manila
Average number of table games 278 268 274 273
Average number of gaming machines 1,777 1,626 1,775 1,641
Table games win per unit per day (5) $6,383 $4,006 $5,800 $3,473
Gaming machines win per unit per day (6) $277 $202 $281 $192
(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:Melco Resorts & Entertainment Limited