Melco Announces Unaudited Fourth Quarter 2017 Earnings and a 50% Increase in Quarterly Dividend to US$0.135 per ADS

MACAU, Feb. 08, 2018 (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, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2017.

Net revenue for the fourth quarter of 2017 was US$1,332.6 million, representing an increase of approximately 12% from US$1,192.9 million for the comparable period in 2016. The increase in net revenue was primarily attributable to higher rolling chip revenues across all properties and higher mass market table games revenues in Studio City and City of Dreams Manila, partially offset by lower mass market table games revenues in City of Dreams in Macau.

Operating income for the fourth quarter of 2017 was US$129.0 million, compared with operating income of US$116.0 million in the fourth quarter of 2016, representing an increase of 11%.

Adjusted property EBITDA(1) was US$339.8 million for the fourth quarter of 2017, as compared to Adjusted property EBITDA of US$304.3 million in the fourth quarter of 2016, representing an increase of 12%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to the higher contribution from Studio City and Altira Macau driven by increased casino revenues, partially offset by lower contribution from City of Dreams in Macau.

Net income attributable to Melco Resorts & Entertainment Limited for the fourth quarter of 2017 was US$81.2 million, or US$0.17 per ADS, compared with US$43.3 million, or US$0.09 per ADS, in the fourth quarter of 2016. The net loss attributable to noncontrolling interests during the fourth quarter of 2017 of US$9.8 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “After three consecutive years of decline, Macau’s gaming revenue rebounded strongly in 2017 with approximately 20% growth compared to 2016 on a year-on-year basis. In 2018, we expect another year of robust growth for Macau, as the market benefits from the improving demand environment, the anticipated completion of the Hong Kong-Zhuhai-Macau Bridge, and the ongoing build-out of Cotai.

“Mass and Premium Mass gaming should remain the primary drivers of Macau’s future growth, which is consistent with our long-held vision for the evolution of the market. Our first mover advantage and our strong determination to offer the best integrated resort experience have enabled City of Dreams to remain a leader in Macau’s premium mass gaming market, despite multiple new resorts opening. To further solidify our leadership position in this important market segment, we have executed on an extensive upgrade to our flagship property, City of Dreams, which includes the announced launch of the Forbes 5-star “NÜWA” hotel, the rebranding and redevelopment of The Count:Down, and the eagerly awaited opening of Morpheus, the cornerstone of the final phase of development for City of Dreams, which is set to be a true landmark for all of Macau.

“At Studio City, we are embarking on a series of property upgrades to refine the entertainment offerings and improve accessibility into the resort, which we believe will facilitate the continuing ramp up that Studio City has experienced over the past several quarters. We will also continue to explore the phase 2 expansion of Studio City which we believe will augment the existing room inventory and entertainment offerings and contribute to the continued growth and development of this property.

“In The Philippines, City of Dreams Manila delivered another strong quarter with all gaming segments continuing to enjoy robust year-on-year growth, despite new supply within Entertainment City.

“Aiming at optimizing our operating excellence, we have announced the redeployment of our senior operating management with David Sisk appointed as the Property President of City of Dreams Macau and Geoff Andres appointed as Property President of Studio City. Both of them have demonstrated their innovative spirit and their expertise in delivering strong growth. We believe the cross-pollination of new ideas and management initiatives will provide an opportunity for all our integrated resorts to benefit from performance improvements.

“The board has, after evaluating the company’s current liquidity position and future expected capital needs, decided to increase the quarterly cash dividend by 50% to US$0.045 per ordinary share, which is equivalent to US$0.135 per ADS, from the previous quarterly dividend of US$0.03 per ordinary share.

“Lastly, Japan continues to be a core focus of ours. With the passage of the Integrated Resorts (IR) implementation bill, the country will take a major step forward toward the development of the next generation of integrated resorts that will operate in this incredibly exciting, yet currently underpenetrated, tourism destination. With our high quality assets, dedication to world-class entertainment offerings, market-leading social safeguards and compliance culture, and commitment to being an ideal partner to local governments and communities alike, we believe Melco is in a strong position to help Japan realize the vision for integrated resort development with unique Japanese touch.”

City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2017, net revenue at City of Dreams was US$612.6 million compared to US$661.1 million in the fourth quarter of 2016. City of Dreams generated Adjusted EBITDA of US$169.7 million in the fourth quarter of 2017 compared with Adjusted EBITDA of US$188.7 million in the fourth quarter of 2016. The year-on-year decrease in Adjusted EBITDA was primarily a result of lower mass market table games revenues, partially offset by higher rolling chip revenues and recovery of previously provided doubtful debt.

Rolling chip volume totaled US$11.4 billion for the fourth quarter of 2017 versus US$11.1 billion in the fourth quarter of 2016. The rolling chip win rate was 2.7% in the fourth quarter of 2017 versus 2.6% in the fourth quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$1,226.0 million compared with US$1,109.9 million in the fourth quarter of 2016. The mass market table games hold percentage was 28.6% in the fourth quarter of 2017 compared to 36.3% in the fourth quarter of 2016.

Gaming machine handle for the fourth quarter of 2017 was US$1,122.0 million, compared with US$1,051.8 million in the fourth quarter of 2016. The gaming machine win rate was 4.2% in the fourth quarter of 2017 versus 3.9% in the fourth quarter of 2016.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2017 was US$71.9 million, compared with US$79.2 million in the fourth quarter of 2016.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2017, net revenue at Altira Macau was US$140.2 million compared to US$103.3 million in the fourth quarter of 2016. Altira Macau generated Adjusted EBITDA of US$17.5 million in the fourth quarter of 2017 compared with Adjusted EBITDA of US$3.3 million in the fourth quarter of 2016. The year-on-year increase in Adjusted EBITDA was primarily a result of higher rolling chip revenues and recovery of previously provided doubtful debt.

Rolling chip volume totaled US$4.9 billion in the fourth quarter of 2017 versus US$4.4 billion in the fourth quarter of 2016. The rolling chip win rate was 3.3% in the fourth quarter of 2017 versus 2.7% in the fourth 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$125.2 million in the fourth quarter of 2017, representing an increase from US$112.8 million generated in the comparable period in 2016. The mass market table games hold percentage was 18.4% in the fourth quarter of 2017 compared with 19.2% in the fourth quarter of 2016.

Gaming machine handle for the fourth quarter of 2017 was US$20.6 million, compared with US$7.9 million in the fourth quarter of 2016. The gaming machine win rate was 6.0% in the fourth quarter of 2017 versus 6.8% in the fourth quarter of 2016.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2017 was US$7.0 million compared with US$7.1 million in the fourth quarter of 2016.

Mocha Clubs Fourth Quarter Results

Net revenue from Mocha Clubs totaled US$30.7 million in the fourth quarter of 2017 as compared to US$28.9 million in the fourth quarter of 2016. Mocha Clubs generated US$7.4 million of Adjusted EBITDA in the fourth quarter of 2017 compared with US$5.4 million in the same period in 2016.

Gaming machine handle for the fourth quarter of 2017 was US$622.7 million, compared with US$614.4 million in the fourth quarter of 2016. The gaming machine win rate was 4.8% in the fourth quarter of 2017 versus 4.6% in the fourth quarter of 2016.

Studio City Fourth Quarter Results

For the quarter ended December 31, 2017, net revenue at Studio City was US$369.0 million compared to US$246.2 million in the fourth quarter of 2016. Studio City generated Adjusted EBITDA of US$91.5 million in the fourth quarter of 2017 compared with Adjusted EBITDA of US$56.7 million in the fourth quarter of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of the commencement of rolling chip operations in November 2016 and better performance in the mass market table games segment.

Rolling chip volume totaled US$5.7 billion for the fourth quarter of 2017 versus US$1.3 billion in the fourth quarter of 2016. The rolling chip win rate was 2.8% in the fourth quarter of 2017 versus 1.4% in the fourth quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$848.2 million compared with US$683.2 million in the fourth quarter of 2016. The mass market table games hold percentage was 26.1% in the fourth quarter of 2017 compared to 26.9% in the fourth quarter of 2016.

Gaming machine handle for the fourth quarter of 2017 was US$539.0 million, compared with US$519.3 million in the fourth quarter of 2016. The gaming machine win rate was 4.1% in the fourth quarter of 2017 versus 3.9% in the fourth quarter of 2016.

Total non-gaming revenue at Studio City in the fourth quarter of 2017 was US$52.2 million, compared with US$53.3 million in the fourth quarter of 2016.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2017, net revenue at City of Dreams Manila was US$167.5 million compared to US$144.7 million in the fourth quarter of 2016. City of Dreams Manila generated Adjusted EBITDA of US$53.8 million in the fourth quarter of 2017 compared to US$50.2 million in the comparable period of 2016.

Rolling chip volume totaled US$2.9 billion for the fourth quarter of 2017 versus US$2.1 billion in the fourth quarter of 2016. The rolling chip win rate was 3.1% in the fourth quarter of 2017 versus 3.5% in the fourth quarter of 2016. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$189.2 million for the fourth quarter of 2017, compared with US$149.0 million in the fourth quarter of 2016. The mass market table games hold percentage was 30.9% in the fourth quarter of 2017 compared to 27.8% in the fourth quarter of 2016.

Gaming machine handle for the fourth quarter of 2017 was US$793.3 million, compared with US$671.3 million in the fourth quarter of 2016. The gaming machine win rate was 5.5% in the fourth quarter of 2017 versus 5.9% in the fourth quarter of 2016.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2017 was US$31.4 million, compared with US$28.1 million in the fourth quarter of 2016.

Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2017 were US$58.5 million, which mainly included interest expenses, net of capitalized interest, of US$54.7 million and other finance costs of US$7.5 million. We recorded US$10.5 million of capitalized interest during the fourth quarter of 2017 relating to the development of Morpheus at City of Dreams.

The year-on-year decrease of US$36.8 million in net non-operating expenses was primarily a result of the loss on extinguishment of debt and costs associated with debt modification arising from the refinancing of the Studio City project facility in the fourth quarter of 2016, as well as lower other finance costs in the fourth quarter of 2017.

Depreciation and amortization costs of US$133.5 million were recorded in the fourth 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 December 31, 2017 were US$1.5 billion, including US$9.9 million of bank deposits with original maturities over three months and US$45.5 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the fourth quarter of 2017, was US$3.6 billion.

Capital expenditures for the fourth quarter of 2017 were US$167.8 million, which predominantly related to Morpheus and other various projects at City of Dreams. In January 2018, the development period of the land on which City of Dreams is located was extended to June 11, 2018.

Full Year Results

For the year ended December 31, 2017, Melco Resorts & Entertainment Limited reported net revenue of US$5.3 billion versus $4.5 billion in the prior year. The year-on-year increase in net revenue was primarily attributable to better group-wide performance in all gaming segments, especially the performance in rolling chip segment including the fully-operating rolling chip operations in Studio City in the current year.

Operating income for 2017 was US$607.6 million, compared with operating income of US$363.1 million for 2016, representing an increase of 67%.

Adjusted property EBITDA for the year ended December 31, 2017 was US$1,422.8 million, as compared to Adjusted property EBITDA of US$1,087.5 million in 2016, representing an increase of 31%. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to better group-wide performance in all gaming segments.

Net income attributable to Melco Resorts & Entertainment Limited for 2017 was US$347.0 million, or US$0.71 per ADS, compared with US$175.9 million, or US$0.35 per ADS, for 2016. The net loss attributable to noncontrolling interests for 2017 of US$31.7 million was related to Studio City and City of Dreams Manila.

Amendment of Dividend Policy

To reaffirm Melco’s commitment to returning surplus capital to shareholders, our Board, after evaluating Melco’s current liquidity position and future expected capital needs, has amended our quarterly dividend policy from one targeting a quarterly cash dividend payment of US$0.03 per ordinary share (equivalent to US$0.09 per ADS, each representing three ordinary shares) of the Company, to one targeting a quarterly cash dividend payment of US$0.045 per ordinary share (equivalent to US$0.135 per ADS) of the Company.

The new dividend policy will take effect beginning with any dividends declared by our Board for the fourth quarter of 2017 and continue until amended or otherwise determined by our Board. Distribution of dividends under this new dividend policy is subject to the Company’s accumulated and future earnings, cash availability and future commitments.

Our Board will continue to review from time to time our dividend policy as part of our commitment to maximizing shareholder value, taking into consideration our financial performance and market conditions.

Dividend Declaration

On February 8, 2018, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.045 per ordinary share (equivalent to US$0.135 per ADS) for the fourth quarter of 2017 (the “Quarterly Dividend”). The Quarterly Dividend will be paid on or about March 7, 2018 to our shareholders whose names appear on the register of members of the Company at the close of business on February 20, 2018, 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 fourth quarter 2017 financial results on Thursday, February 8, 2018 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 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 Free1 855 452 5696
US Toll / International 1 646 254 3697
HK Toll Free800 963 117
Japan Toll81 3 4580 6717
Japan Toll Free012 095 9034
Philippines Toll Free1 800 1612 0166
Conference ID2589138

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

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,
2017 2016 2017 2016
(Unaudited) (Unaudited) (Unaudited) (Audited)
OPERATING REVENUES
Casino$1,249,513 $1,099,844 $4,937,597 $4,176,667
Rooms 71,164 69,338 271,500 265,289
Food and beverage 51,273 47,904 184,979 177,515
Entertainment, retail and other 43,924 51,893 203,763 197,011
Gross revenues 1,415,874 1,268,979 5,597,839 4,816,482
Less: promotional allowances (83,318) (76,101) (313,016) (297,086)
Net revenues 1,332,556 1,192,878 5,284,823 4,519,396
OPERATING COSTS AND EXPENSES
Casino (865,064) (750,898) (3,374,013) (2,904,922)
Rooms (8,389) (8,260) (32,641) (33,218)
Food and beverage (16,056) (18,212) (57,927) (65,781)
Entertainment, retail and other (21,612) (27,326) (88,268) (109,817)
General and administrative (122,616) (120,510) (467,121) (446,591)
Payments to the Philippine Parties (9,112) (9,928) (51,661) (34,403)
Pre-opening costs (1,097) (1,671) (2,274) (3,883)
Development costs (12,976) (88) (31,115) (95)
Amortization of gaming subconcession (14,309) (14,309) (57,237) (57,237)
Amortization of land use rights (5,705) (5,704) (22,817) (22,816)
Depreciation and amortization (113,451) (117,515) (460,521) (472,219)
Property charges and other (13,215) (2,489) (31,616) (5,298)
Total operating costs and expenses (1,203,602) (1,076,910) (4,677,211) (4,156,280)
OPERATING INCOME 128,954 115,968 607,612 363,116
NON-OPERATING INCOME (EXPENSES)
Interest income 1,082 1,738 3,579 5,951
Interest expenses, net of capitalized interest (54,733) (56,170) (229,582) (223,567)
Other finance costs (7,533) (13,344) (32,261) (55,796)
Foreign exchange gains (losses), net 592 (2,919) 12,783 7,356
Other income, net 3,024 936 5,282 3,572
Loss on extinguishment of debt (939) (17,435) (49,337) (17,435)
Costs associated with debt modification - (8,101) (2,793) (8,101)
Total non-operating expenses, net (58,507) (95,295) (292,329) (288,020)
INCOME BEFORE INCOME TAX 70,447 20,673 315,283 75,096
INCOME TAX CREDIT (EXPENSE) 945 (4,162) 10 (8,178)
NET INCOME 71,392 16,511 315,293 66,918
NET LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 9,780 26,765 31,709 108,988
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED$81,172 $43,276 $347,002 $175,906
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:
Basic$0.055 $0.030 $0.236 $0.116
Diluted$0.055 $0.029 $0.235 $0.115
NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:
Basic$0.166 $0.089 $0.709 $0.348
Diluted$0.164 $0.088 $0.704 $0.346
WEIGHTED AVERAGE SHARES OUTSTANDING
USED IN NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic 1,469,344,163 1,463,660,679 1,467,653,209 1,516,714,277
Diluted 1,482,030,219 1,473,600,609 1,479,342,209 1,525,284,272

Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
December 31, December 31,
2017 2016
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents$1,408,211 $1,702,310
Investment securities 89,874 -
Bank deposits with original maturities over three months 9,884 210,840
Restricted cash 45,412 39,152
Accounts receivable, net 176,544 225,438
Amounts due from affiliated companies 2,377 1,103
Inventories 34,988 32,600
Prepaid expenses and other current assets 77,503 68,111
Total current assets 1,844,793 2,279,554
PROPERTY AND EQUIPMENT, NET 5,730,760 5,655,823
GAMING SUBCONCESSION, NET 256,083 313,320
INTANGIBLE ASSETS 4,220 4,220
GOODWILL 81,915 81,915
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS 189,645 194,911
RESTRICTED CASH 130 130
DEFERRED TAX ASSETS 11 152
LAND USE RIGHTS, NET 787,499 810,316
TOTAL ASSETS$8,895,056 $9,340,341
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable$16,041 $17,434
Accrued expenses and other current liabilities 1,563,585 1,369,943
Income tax payable 3,179 7,422
Capital lease obligations, due within one year 33,387 30,730
Current portion of long-term debt, net 51,032 50,583
Amounts due to affiliated companies 16,790 3,028
Total current liabilities 1,684,014 1,479,140
LONG-TERM DEBT, NET 3,506,530 3,669,692
OTHER LONG-TERM LIABILITIES 48,087 49,287
DEFERRED TAX LIABILITIES 53,994 56,451
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR 265,896 262,357
AMOUNT DUE TO AN AFFILIATED COMPANY 919 -
SHAREHOLDERS' EQUITY
Ordinary shares 14,784 14,759
Treasury shares (90) (108)
Additional paid-in capital 3,671,805 2,783,062
Accumulated other comprehensive losses (26,610) (24,768)
(Accumulated losses) retained earnings (772,338) 570,925
Total Melco Resorts & Entertainment Limited shareholders’ equity 2,887,551 3,343,870
Noncontrolling interests 448,065 479,544
Total equity 3,335,616 3,823,414
TOTAL LIABILITIES AND EQUITY$8,895,056 $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 Year Ended
December 31, December 31,
2017 2016 2017 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Income Attributable to
Melco Resorts & Entertainment Limited$81,172 $43,276 $347,002 $175,906
Net Gain on Disposal of Property and Equipment
to Belle Corporation - - - (8,134)
Pre-opening Costs 1,097 1,671 2,274 3,883
Development Costs 12,976 88 31,115 95
Property Charges and Other 13,215 2,489 31,616 5,298
Loss on Extinguishment of Debt 939 17,435 49,337 17,435
Costs Associated with Debt Modification - 8,101 2,793 8,101
Income Tax Impact on Adjustments (98) 392 (360) 378
Noncontrolling Interests Impact on Adjustments (7,932) (10,291) (10,606) (9,947)
Adjusted Net Income Attributable to
Melco Resorts & Entertainment Limited$101,369 $63,161 $453,171 $193,015
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER SHARE:
Basic$0.069 $0.043 $0.309 $0.127
Diluted$0.068 $0.043 $0.306 $0.127
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED PER ADS:
Basic$0.207 $0.129 $0.926 $0.382
Diluted$0.205 $0.129 $0.919 $0.380
WEIGHTED AVERAGE SHARES OUTSTANDING
USED IN ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO RESORTS & ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic 1,469,344,163 1,463,660,679 1,467,653,209 1,516,714,277
Diluted 1,482,030,219 1,473,600,609 1,479,342,209 1,525,284,272

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, 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 Income (Loss)$13,039 $5,114 $132,793 $28,915 $19,972 $(70,879) $128,954
Payments to the Philippine Parties - - - - 9,112 - 9,112
Land Rent to Belle Corporation - - - - 782 - 782
Pre-opening Costs - - 966 131 - - 1,097
Development Costs - - - - - 12,976 12,976
Depreciation and Amortization 4,975 2,090 40,782 46,081 21,042 18,495 133,465
Share-based Compensation 54 (73) 828 367 247 3,787 5,210
Property Charges and Other (611) 305 (5,692) 15,981 2,638 594 13,215
Adjusted EBITDA 17,457 7,436 169,677 91,475 53,793 (35,027) 304,811
Corporate and Others Expenses - - - - - 35,027 35,027
Adjusted Property EBITDA$17,457 $7,436 $169,677 $91,475 $53,793 $- $339,838
Three Months Ended December 31, 2016
Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
Corporate
and Others
Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating (Loss) Income$(2,410) $2,593 $139,279 $9,373 $19,917 $(52,784) $115,968
Payments to the Philippine Parties - - - - 9,928 - 9,928
Land Rent to Belle Corporation - - - - 803 - 803
Pre-opening Costs - - 1,047 624 - - 1,671
Development Costs - - - - - 88 88
Depreciation and Amortization 5,652 2,797 44,505 45,646 21,443 17,485 137,528
Share-based Compensation 45 45 601 80 117 2,851 3,739
Property Charges and Other - - 3,245 931 (2,008) 321 2,489
Adjusted EBITDA 3,287 5,435 188,677 56,654 50,200 (32,039) 272,214
Corporate and Others Expenses - - - - - 32,039 32,039
Adjusted Property EBITDA$3,287 $5,435 $188,677 $56,654 $50,200 $- $304,253

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, 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$(149) $18,206 $625,766 $126,247 $92,636 $(255,094) $607,612
Payments to the Philippine Parties - - - - 51,661 - 51,661
Land Rent to Belle Corporation - - - - 3,143 - 3,143
Pre-opening Costs - - 1,933 116 225 - 2,274
Development Costs - - - - - 31,115 31,115
Depreciation and Amortization 20,973 8,312 171,216 184,456 84,200 71,418 540,575
Share-based Compensation 204 24 2,934 1,294 516 12,333 17,305
Property Charges and Other (357) 97 3,023 23,455 2,638 2,760 31,616
Adjusted EBITDA 20,671 26,639 804,872 335,568 235,019 (137,468) 1,285,301
Corporate and Others Expenses - - - - - 137,468 137,468
Adjusted Property EBITDA$20,671 $26,639 $804,872 $335,568 $235,019 $- $1,422,769
Year Ended December 31, 2016
Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
Corporate
and Others
Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating (Loss) Income$(18,091) $11,694 $559,470 $(29,099) $38,705 $(199,563) $363,116
Payments to the Philippine Parties - - - - 34,403 - 34,403
Land Rent to Belle Corporation - - - - 3,327 - 3,327
Net Gain on Disposal of Property and Equipment
to Belle Corporation - - - - (8,134) - (8,134)
Pre-opening Costs - - 1,355 2,528 - - 3,883
Development Costs - - - - - 95 95
Depreciation and Amortization 22,950 11,921 175,676 179,905 91,389 70,431 552,272
Share-based Compensation 60 174 2,354 826 2,087 12,986 18,487
Property Charges and Other 197 - 3,436 1,825 (1,441) 1,281 5,298
Adjusted EBITDA 5,116 23,789 742,291 155,985 160,336 (114,770) 972,747
Corporate and Others Expenses - - - - - 114,770 114,770
Adjusted Property EBITDA$5,116 $23,789 $742,291 $155,985 $160,336 $- $1,087,517

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,
2017 2016 2017 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Income Attributable to Melco Resorts & Entertainment Limited $81,172 $43,276 $347,002 $175,906
Net Loss Attributable to Noncontrolling Interests (9,780) (26,765) (31,709) (108,988)
Net Income 71,392 16,511 315,293 66,918
Income Tax (Credit) Expense (945) 4,162 (10) 8,178
Interest and Other Non-Operating Expenses, Net 58,507 95,295 292,329 288,020
Property Charges and Other 13,215 2,489 31,616 5,298
Share-based Compensation 5,210 3,739 17,305 18,487
Depreciation and Amortization 133,465 137,528 540,575 552,272
Development Costs 12,976 88 31,115 95
Pre-opening Costs 1,097 1,671 2,274 3,883
Net Gain on Disposal of Property and Equipment
to Belle Corporation - - - (8,134)
Land Rent to Belle Corporation 782 803 3,143 3,327
Payments to the Philippine Parties 9,112 9,928 51,661 34,403
Adjusted EBITDA 304,811 272,214 1,285,301 972,747
Corporate and Others Expenses 35,027 32,039 137,468 114,770
Adjusted Property EBITDA$339,838 $304,253 $1,422,769 $1,087,517

Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
Three Months Ended Year Ended
December 31, December 31,
2017 2016 2017 2016
Room Statistics:
Altira Macau
Average daily rate (3) $209 $210 $204 $205
Occupancy per available room 99% 94% 96% 94%
Revenue per available room (4) $207 $197 $196 $193
City of Dreams
Average daily rate (3) $209 $205 $202 $200
Occupancy per available room 97% 98% 97% 96%
Revenue per available room (4) $202 $199 $196 $192
Studio City
Average daily rate (3) $145 $138 $140 $136
Occupancy per available room 99% 99% 99% 98%
Revenue per available room (4) $144 $137 $138 $133
City of Dreams Manila
Average daily rate (3) $163 $156 $158 $159
Occupancy per available room 97% 96% 96% 91%
Revenue per available room (4) $158 $149 $152 $145
Other Information:
Altira Macau
Average number of table games 103 114 107 121
Average number of gaming machines 120 62 73 62
Table games win per unit per day (5) $19,358 $13,447 $15,478 $13,448
Gaming machines win per unit per day (6) $112 $94 $106 $93
City of Dreams
Average number of table games 479 488 479 494
Average number of gaming machines 712 956 746 1,029
Table games win per unit per day (5) $15,013 $15,319 $16,408 $15,027
Gaming machines win per unit per day (6) $726 $466 $557 $381
Studio City
Average number of table games 293 266 288 251
Average number of gaming machines 883 1,103 951 1,097
Table games win per unit per day (5) $14,123 $8,282 $12,932 $6,871
Gaming machines win per unit per day (6) $272 $200 $225 $189
City of Dreams Manila
Average number of table games 291 272 283 270
Average number of gaming machines 1,800 1,686 1,786 1,656
Table games win per unit per day (5) $5,473 $4,576 $5,432 $3,939
Gaming machines win per unit per day (6) $265 $255 $271 $217
(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