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Melco Crown Entertainment Announces Unaudited Second Quarter 2013 Earnings

MACAU, Aug. 7, 2013 (GLOBE NEWSWIRE) -- Melco Crown Entertainment Limited ("Melco Crown Entertainment" or "the Company") (SEHK:6883) (Nasdaq:MPEL), a developer and owner of casino gaming and entertainment resort facilities in Asia, today reported its unaudited financial results for the second quarter of 2013.

Net revenue for the second quarter of 2013 was US$1,295.0 million, representing an increase of approximately 38% from US$938.5 million for the second quarter of 2012. The increase in net revenue was primarily attributable to higher group-wide rolling chip revenues and mass market gross gaming revenues.

Adjusted EBITDA(1) was US$330.1 million for the second quarter of 2013, as compared to Adjusted EBITDA of US$203.8 million in the comparable period of 2012. The 62% year-over-year increase in Adjusted EBITDA was attributable to strong growth in the mass market table games segment at City of Dreams, improved group-wide rolling chip volume and higher group-wide rolling chip win rate, together with our committed cost control culture.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the second quarter of 2013 was US$181.0 million, or US$0.33 per ADS, compared with net income attributable to Melco Crown Entertainment of US$82.3 million, or US$0.15 per ADS, in the second quarter of 2012. The year-over-year increase in net income was primarily attributable to the strong group-wide operating performance and reduced interest expenses following the refinancing of the 10.25% US$600 million senior notes and redemption of the RMB notes in the first quarter of 2013, partially offset by US$8.6 million of finance charges associated with the Philippines capital lease obligation, US$15.8 million of net interest expense and other finance charges associated with Studio City and a higher capitalized interest, primarily related to Studio City. The net loss attributable to non-controlling interests during the second quarter of 2013 of US$16.6 million was majority related to Studio City and the Philippines Project. The increase in net loss attributable to non-controlling interests was primarily attributable to the non-controlling interests' share of Studio City financing costs and the Philippines Project's pre-operating expenses during the quarter.

Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, "I am pleased to report another successive quarter of record earnings and EBITDA, building on the strong momentum in the first quarter of 2013.

"Highlighting the ideal strategic positioning of our flagship property, City of Dreams, this premium-mass focused property once again captured meaningful market share in the mass market table games segment which, in turn, has been the major driver of our impressive group-wide performance in the second quarter of 2013. City of Dreams' unique ability to cater towards these highly discerning, premium mass market-focused customers is highlighted by our market-leading mass table yields, which is increasingly important in a table supply constrained market.

"We continue to move forward with the fifth hotel tower at City of Dreams and anticipate to commence construction by the end of 2013. This iconic additional hotel tower represents another powerful addition to our wide array of amenities and attractions that City of Dreams already offers its premium-mass and high end customers, providing another tool to further extend our leading position in this key segment.

"Altira Macau also delivered robust sequential EBITDA growth in the second quarter of 2013, with increased rolling chip volumes and expanding table yields highlighting the success of our continual group-wide table yield optimization strategy, ensuring we allocate tables to maximize overall company profitability.

"Our development pipeline continues to progress, with Studio City on-budget and on-track to open in mid-2015, while the timing of our Philippines Project remains unchanged and is expected to open around the middle of next year. Both of these exciting development opportunities are key components of our strategy to maximize return on invested capital and drive long term shareholder value.

"Macau continues to deliver robust growth across all gaming and non-gaming segments in 2013, highlighting its unique position to cater to the rapidly evolving Asian consumer and expanding middle class. Similarly, our Manila project is well positioned to address this segment in the Philippines and the broader region providing another destination to a wider array of consumers seeking a broader leisure and entertainment proposition. Both of these markets are expected to benefit meaningfully from wide-reaching development plans and significant infrastructure improvements, helping to improve access and enhance customer experience."

City of Dreams Second Quarter Results

For the quarter ended June 30, 2013, net revenue at City of Dreams was US$967.0 million compared to US$684.2 million in the comparable period of 2012. City of Dreams generated Adjusted EBITDA of US$300.2 million in the second quarter of 2013 compared to US$184.3 million in the second quarter of 2012, an increase of 63%.

The strong year-over-year improvement in Adjusted EBITDA was primarily a result of substantial growth in mass market table games volumes and an improved mass market table games hold percentage together with strong growth in rolling chip volumes and a higher rolling chip win rate.

Rolling chip volume totaled US$24.8 billion for the second quarter of 2013, up 30% from US$19.1 billion in the second quarter of 2012, and the rolling chip win rate was 3.1% in the second quarter of 2013 versus 3.0% in the second quarter of 2012. The expected rolling chip win rate range is 2.7%–3.0%.

Mass market table games drop increased 35% to US$1,109.9 million compared with US$822.5 million in the second quarter of 2012. The mass market table games hold percentage was 32.8% in the second quarter of 2013, an increase from 29.0% in the comparable period last year.

Slot handle for the second quarter of 2013 was US$1,196.2 million, up 64% from US$727.8 million generated in the second quarter of 2012.

Total non-gaming revenue at City of Dreams in the second quarter of 2013 was US$62.2 million, up from US$56.0 million in the second quarter of 2012. Occupancy per available room in the second quarter of 2013 was 97% as compared to 90% in the second quarter of 2012. The average daily rate ("ADR") in the second quarter of 2013 was US$188 per occupied room, which compares with US$181 in the second quarter of 2012.

Altira Macau Second Quarter Results

For the quarter ended June 30, 2013, net revenue at Altira Macau was US$278.8 million versus US$208.5 million in the quarter ended June 30, 2012. Altira Macau generated Adjusted EBITDA of US$41.4 million in the second quarter of 2013 compared with Adjusted EBITDA of US$26.0 million in the second quarter of 2012. The improvement in Adjusted EBITDA was primarily a result of stronger group-wide rolling chip volumes and a higher win rate.

Rolling chip volume totaled US$11.8 billion in the second quarter of 2013 versus US$10.2 billion in the second quarter of 2012. In the second quarter of 2013, the rolling chip win rate was 3.0%, as compared to 2.7% for the comparable period in 2012. The expected rolling chip win rate range is 2.7%–3.0%.

In the mass market table games segment, drop totaled US$172.1 million in the second quarter of 2013, an increase of 24% from US$139.0 million generated in the second quarter of 2012. The mass market table games hold percentage was 15.5% in the second quarter of 2013 compared with 17.7% in the second quarter of last year.

Total non-gaming revenue at Altira Macau in the second quarter of 2013 was US$9.2 million, up from US$8.1 million in the second quarter of 2012. Occupancy per available room in the second quarter of 2013 was 98%, as compared with 97% for the comparable period in 2012. ADR was US$229 per occupied room, compared to US$218 in the second quarter of 2012.

Mocha Clubs Second Quarter Results

For the quarter ended June 30, 2013, net revenue at Mocha Clubs was US$37.2 million, up 6% from US$35.1 million in the second quarter of 2012. Mocha Clubs generated US$9.8 million of Adjusted EBITDA in the second quarter of 2013, an increase of 7% when compared to Adjusted EBITDA of US$9.1 million in the comparable period in 2012.

The number of gaming machines in operation at Mocha Clubs averaged approximately 2,000 in the second quarter of 2013, compared to approximately 2,100 in the comparable period in 2012. The net win per gaming machine per day was US$207 in the quarter ended June 30, 2013, as compared with US$181 in the same period in 2012, an increase of 14%.

The Philippines Project Second Quarter Results

On a fully consolidated basis, we incurred approximately US$6.3 million of operating expenses in the second quarter of 2013 in relation to the Philippines Project, which primarily relate to pre-opening costs as well as other fees and costs associated with the corporate reorganization of Melco Crown (Philippines) Resorts Corporation ("MCP"), and recorded a net loss of approximately US$21.0 million on our Philippines Project as a result of operating and foreign exchange losses, as well as approximately US$10.5 million of capital lease charges relating to building lease payments incurred during the second quarter of 2013.

Other Factors Affecting Earnings

Total non-operating expense for the second quarter of 2013 was US$55.6 million, which included US$39.1 million in net interest expense and other finance costs of US$11.4 million. Non-operating expense also included a foreign exchange loss of US$5.4 million. There was US$6.8 million of capitalized interest during the second quarter of 2013, primarily relating to Studio City. The year-on-year increase in non-operating expenses of US$29.5 million was predominantly due to the higher net interest expenses and other finance costs associated with the Studio City financing and the foreign exchange loss primarily related to Philippines Project during the second quarter of 2013. Melco Crown Entertainment also incurred US$2.9 million of development costs, which predominantly relate to fees and costs associated with the corporate reorganization of MCP.

Depreciation and amortization costs of US$96.5 million were recorded in the second quarter of 2013, of which US$14.3 million was related to the amortization of our gaming sub-concession and US$16.1 million was related to the amortization of land use rights.

Financial Position and Capital Expenditure

Cash and cash equivalents as of June 30, 2013 totaled US$3.0 billion, including US$1.1 billion of restricted cash. Total debt at the end of the second quarter of 2013 was US$2.7 billion.

As at June 30, 2013, capital lease obligations in relation to building lease payments for MCP totaled US$278.2 million.

Capital expenditures for the second quarter of 2013 were US$107.2 million, which primarily related to Studio City and the Philippines Project, as well as various projects at City of Dreams and Altira Macau.

Six Months' Results

For the six months ending June 30, 2013, Melco Crown Entertainment reported net revenue of US$2,440.0 million versus US$1,965.4 million in the six months ending June 30, 2012. The year-over-year increase in net revenue was primarily driven by substantially improved group-wide mass table games and rolling chip revenue.

Adjusted EBITDA for the first six months of 2013 was US$603.6 million, as compared with Adjusted EBITDA of US$446.4 million in the first six months of 2012. The year-over-year improvements in net revenue and Adjusted EBITDA were primarily attributable to the significant increase in mass table games revenues together with strict cost control focus and higher rolling chip volumes, partially offset by a lower group-wide rolling chip win rate.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the first six months of 2013 was US$234.8 million, or US$0.43 per ADS, compared with net income attributable to Melco Crown Entertainment of US$204.4 million, or US$0.37 per ADS, in the comparable period of 2012.

Conference Call Information

Melco Crown Entertainment will hold a conference call to discuss its second quarter 2013 financial results on August 7, 2013 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 2475 0994
HK Toll Free 800 930 346
UK Toll Free 080 823 46646
Australia Toll Free 1 800 457 076
Philippines Toll Free 1 800 165 10607
Passcode MPEL

An audio webcast will also be available at www.melco-crown.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 1 800 161 20166
Conference ID 22636948

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. 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 visitation in Macau, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, and (v) 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 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, other non-operating income and expenses and net loss attributable to non-controlling interests. "Adjusted property EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, corporate and others expenses, other non-operating income and expenses and net loss attributable to non-controlling interests. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as a supplemental disclosure because management believes that 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. generally accepted accounting principles ("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 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 GAAP measurements, to assist in the evaluation of operating performance. Such 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 non-recurring 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 GAAP are provided herein immediately following the financial statements included in this press release.

(2) "Adjusted net income" is net income before pre-opening costs, development costs, property charges and others, change in fair value of interest rate swap agreements, loss on extinguishment of debt and costs associated with debt modification. Adjusted net income and adjusted net income per share ("EPS") are presented as supplemental disclosures because management believes that 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 GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income with the most comparable financial measures calculated and presented in accordance with GAAP are provided herein immediately following the financial statements included in this press release.

About Melco Crown Entertainment Limited

Melco Crown Entertainment, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") (SEHK:6883) and its American depositary shares listed on the NASDAQ Global Select Market (Nasdaq:MPEL), is a developer, and through licensed subsidiaries, operator of casino gaming and entertainment casino resort facilities in Asia. Melco Crown Entertainment 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. Melco Crown Entertainment's 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 is also developing the planned Studio City Project, a cinematically-themed integrated entertainment, retail and gaming resort in Cotai, Macau. In the Philippines, MCE Leisure (Philippines) Corporation, a subsidiary of Melco Crown Entertainment, has been cooperating with SM Group's Belle Corporation to develop and operate a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. For more information about Melco Crown Entertainment, please visit www.melco-crown.com.

Melco Crown Entertainment has strong support from both of its major shareholders, Melco International Development Limited ("Melco") and Crown Limited ("Crown"). Melco is a listed company on the Hong Kong Stock Exchange and is substantially owned and led by Mr. Lawrence Ho, who is Co-Chairman, an Executive Director and the CEO of Melco Crown Entertainment. Crown is a top-50 company listed on the Australian Securities Exchange and led by Executive Chairman Mr. James Packer, who is also Co-Chairman and a Non-executive Director of Melco Crown Entertainment.

Investment Community, please contact:
Ross Dunwoody
Vice President, Investor Relations
Tel: +853 8868 7575 or +852 2598 3689
Email: rossdunwoody@melco-crown.com
For media enquiry, please contact:
Maggie Ma
Head of Corporate Communications
Tel: +853 8868 3767 or +852 3151 3767
Email: maggiema@melco-crown.com
Melco Crown 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,
2013 2012 2013 2012
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
OPERATING REVENUES
Casino $ 1,263,336 $ 905,962 $ 2,373,779 $ 1,896,834
Rooms 31,414 28,040 62,348 57,468
Food and beverage 18,024 15,732 37,888 32,696
Entertainment, retail and others 23,118 21,379 45,930 43,027
Gross revenues 1,335,892 971,113 2,519,945 2,030,025
Less: promotional allowances (40,881) (32,601) (79,993) (64,655)
Net revenues 1,295,011 938,512 2,439,952 1,965,370
OPERATING COSTS AND EXPENSES
Casino (882,651) (658,622) (1,672,746) (1,361,698)
Rooms (2,881) (3,456) (6,009) (7,586)
Food and beverage (5,863) (6,359) (13,880) (14,365)
Entertainment, retail and others (15,089) (16,416) (31,068) (30,764)
General and administrative (61,256) (52,222) (117,833) (108,631)
Pre-opening costs (4,716) (2,215) (6,646) (3,300)
Development costs (2,888) (568) (19,985) (568)
Amortization of gaming subconcession (14,310) (14,310) (28,619) (28,619)
Amortization of land use rights (16,115) (14,335) (32,040) (28,318)
Depreciation and amortization (66,105) (65,343) (130,705) (132,128)
Property charges and others (3,473) (447) (3,697) (3,616)
Total operating costs and expenses (1,075,347) (834,293) (2,063,228) (1,719,593)
OPERATING INCOME 219,664 104,219 376,724 245,777
NON-OPERATING EXPENSES
Interest expenses, net (39,093) (22,789) (80,478) (46,062)
Other finance costs (11,436) (3,488) (20,793) (6,982)
Change in fair value of interest rate swap agreements -- -- -- 363
Foreign exchange (loss) gain, net (5,399) (435) (9,822) 1,639
Other income, net 360 624 360 1,134
Loss on extinguishment of debt -- -- (50,935) --
Costs associated with debt modification -- -- (10,538) --
Total non-operating expenses (55,568) (26,088) (172,206) (49,908)
INCOME BEFORE INCOME TAX 164,096 78,131 204,518 195,869
INCOME TAX CREDIT 392 281 1,356 1,042
NET INCOME 164,488 78,412 205,874 196,911
NET LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 16,557 3,850 28,947 7,442
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED $ 181,045 $ 82,262 $ 234,821 $ 204,353
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:
Basic $ 0.110 $ 0.050 $ 0.142 $ 0.124
Diluted $ 0.109 $ 0.050 $ 0.141 $ 0.123
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER ADS:
Basic $ 0.329 $ 0.150 $ 0.427 $ 0.373
Diluted $ 0.327 $ 0.149 $ 0.424 $ 0.370
WEIGHTED AVERAGE SHARES USED IN
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic 1,649,707,709 1,645,671,541 1,648,598,729 1,644,388,593
Diluted 1,663,010,423 1,657,320,954 1,662,965,016 1,657,367,600
Melco Crown Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
June 30, December 31,
2013 2012
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,959,060 $ 1,709,209
Restricted cash 701,346 672,981
Accounts receivable, net 295,074 320,929
Amounts due from affiliated companies 75 1,322
Amount due from a shareholder 47 --
Deferred tax assets 83 --
Income tax receivable 392 266
Inventories 17,704 16,576
Prepaid expenses and other current assets 34,803 27,743
Total current assets 3,008,584 2,749,026
PROPERTY AND EQUIPMENT, NET 3,016,788 2,684,094
GAMING SUBCONCESSION, NET 513,649 542,268
INTANGIBLE ASSETS, NET 4,220 4,220
GOODWILL 81,915 81,915
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS 205,088 88,241
RESTRICTED CASH 373,672 741,683
DEFERRED TAX ASSETS 118 105
DEFERRED FINANCING COSTS 120,863 65,930
LAND USE RIGHTS, NET 983,737 989,984
TOTAL ASSETS $ 8,308,634 $ 7,947,466
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 9,690 $ 13,745
Accrued expenses and other current liabilities 885,439 850,841
Income tax payable 1,556 1,191
Capital lease obligation, due within one year 25,360 --
Current portion of long-term debt 262,477 854,940
Amounts due to affiliated companies 1,158 949
Total current liabilities 1,185,680 1,721,666
LONG-TERM DEBT 2,402,198 2,339,924
OTHER LONG-TERM LIABILITIES 12,959 7,412
DEFERRED TAX LIABILITIES 64,659 66,350
CAPITAL LEASE OBLIGATION, DUE AFTER ONE YEAR 252,839 --
LAND USE RIGHTS PAYABLE 62,765 71,358
SHAREHOLDERS' EQUITY
Ordinary shares 16,621 16,581
Treasury shares (5,142) (113)
Additional paid-in capital 3,469,170 3,235,835
Accumulated other comprehensive losses (9,531) (1,057)
Retained earnings 369,514 134,693
Total Melco Crown Entertainment Limited shareholders' equity 3,840,632 3,385,939
Noncontrolling interests 486,902 354,817
Total equity 4,327,534 3,740,756
TOTAL LIABILITIES AND EQUITY $ 8,308,634 $ 7,947,466
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Net Income Attributable to Melco Crown Entertainment Limited to
Adjusted Net Income Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Income Attributable to
Melco Crown Entertainment Limited $ 181,045 $ 82,262 $ 234,821 $ 204,353
Pre-opening Costs 4,716 2,215 6,646 3,300
Development Costs 2,888 568 19,985 568
Property Charges and Others 3,473 447 3,697 3,616
Change in fair value of interest rate swap agreements -- -- -- (363)
Loss on extinguishment of debt -- -- 50,935 --
Costs associated with debt modification -- -- 10,538 --
Adjusted Net Income Attributable to
Melco Crown Entertainment Limited $ 192,122 $ 85,492 $ 326,622 $ 211,474
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:
Basic $ 0.116 $ 0.052 $ 0.198 $ 0.129
Diluted $ 0.116 $ 0.052 $ 0.196 $ 0.128
ADJUSTED NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED PER ADS:
Basic $ 0.349 $ 0.156 $ 0.594 $ 0.386
Diluted $ 0.347 $ 0.155 $ 0.589 $ 0.383
WEIGHTED AVERAGE SHARES USED IN ADJUSTED
NET INCOME ATTRIBUTABLE TO
MELCO CROWN ENTERTAINMENT LIMITED
PER SHARE CALCULATION:
Basic 1,649,707,709 1,645,671,541 1,648,598,729 1,644,388,593
Diluted 1,663,010,423 1,657,320,954 1,662,965,016 1,657,367,600
Melco Crown 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, 2013

Altira Macau

Mocha

City of Dreams

Studio City
Philippines
Project
Corporate
and Others

Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating Income (Loss) $ 33,444 $ 6,570 $ 238,690 $ (11,946) $ (6,302) $ (40,792) $ 219,664
Pre-opening Costs -- -- 369 748 3,581 18 4,716
Development Costs -- -- -- -- 2,127 761 2,888
Depreciation and Amortization 7,891 2,946 57,871 10,883 306 16,633 96,530
Share-based Compensation 37 22 243 -- 63 2,454 2,819
Property Charges and Others -- 224 3,000 -- -- 249 3,473
Adjusted EBITDA 41,372 9,762 300,173 (315) (225) (20,677) 330,090
Corporate and Others Expenses -- -- -- -- -- 20,677 20,677
Adjusted Property EBITDA $ 41,372 $ 9,762 $ 300,173 $ (315) $ (225) $ -- $ 350,767
Three Months Ended June 30, 2012

Altira Macau

Mocha

City of Dreams

Studio City
Philippines
Project
Corporate
and Others

Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating Income (Loss) $ 17,048 $ 5,357 $ 125,408 $ (10,041) $ -- $ (33,553) $ 104,219
Pre-opening Costs -- -- 1,620 595 -- -- 2,215
Development Costs -- -- -- -- -- 568 568
Depreciation and Amortization 8,916 3,240 57,092 9,422 -- 15,318 93,988
Share-based Compensation 23 37 147 -- -- 2,203 2,410
Property Charges and Others -- 447 -- -- -- -- 447
Adjusted EBITDA 25,987 9,081 184,267 (24) -- (15,464) 203,847
Corporate and Others Expenses -- -- -- -- -- 15,464 15,464
Adjusted Property EBITDA $ 25,987 $ 9,081 $ 184,267 $ (24) $ -- $ -- $ 219,311
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income
Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars)
Three Months Ended
June 30,
2013 2012
(Unaudited) (Unaudited)
Adjusted Property EBITDA $ 350,767 $ 219,311
Corporate and Others Expenses (20,677) (15,464)
Adjusted EBITDA 330,090 203,847
Pre-opening Costs (4,716) (2,215)
Development Costs (2,888) (568)
Depreciation and Amortization (96,530) (93,988)
Share-based Compensation (2,819) (2,410)
Property Charges and Others (3,473) (447)
Interest and Other Non-Operating Expenses, Net (55,568) (26,088)
Income Tax Credit 392 281
Net Income 164,488 78,412
Net Loss Attributable to Noncontrolling Interests 16,557 3,850
Net Income Attributable to Melco Crown Entertainment Limited $ 181,045 $ 82,262
Melco Crown 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, 2013

Altira Macau

Mocha

City of Dreams

Studio City
Philippines
Project
Corporate
and Others

Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating Income (Loss) $ 65,699 $ 11,839 $ 429,101 $ (23,706) $ (23,226) $ (82,983) $ 376,724
Pre-opening Costs -- -- 369 1,371 4,884 22 6,646
Development Costs -- -- -- -- 17,216 2,769 19,985
Depreciation and Amortization 15,754 5,935 114,216 21,766 412 33,281 191,364
Share-based Compensation 67 59 398 -- 63 4,553 5,140
Property Charges and Others -- 448 3,000 -- -- 249 3,697
Adjusted EBITDA 81,520 18,281 547,084 (569) (651) (42,109) 603,556
Corporate and Others Expenses -- -- -- -- -- 42,109 42,109
Adjusted Property EBITDA $ 81,520 $ 18,281 $ 547,084 $ (569) $ (651) $ -- $ 645,665
Six Months Ended June 30, 2012

Altira Macau

Mocha

City of Dreams

Studio City
Philippines
Project
Corporate
and Others

Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating Income (Loss) $ 62,385 $ 11,615 $ 264,587 $ (19,848) $ -- $ (72,962) $ 245,777
Pre-opening Costs -- 16 2,130 1,154 -- -- 3,300
Development Costs -- -- -- -- -- 568 568
Depreciation and Amortization 18,631 6,506 114,584 18,492 -- 30,852 189,065
Share-based Compensation 48 62 226 -- -- 3,696 4,032
Property Charges and Others -- 447 755 -- -- 2,414 3,616
Adjusted EBITDA 81,064 18,646 382,282 (202) -- (35,432) 446,358
Corporate and Others Expenses -- -- -- -- -- 35,432 35,432
Adjusted Property EBITDA $ 81,064 $ 18,646 $ 382,282 $ (202) $ -- $ -- $ 481,790
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to Net Income
Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars)
Six Months Ended
June 30,
2013 2012
(Unaudited) (Unaudited)
Adjusted Property EBITDA $ 645,665 $ 481,790
Corporate and Others Expenses (42,109) (35,432)
Adjusted EBITDA 603,556 446,358
Pre-opening Costs (6,646) (3,300)
Development Costs (19,985) (568)
Depreciation and Amortization (191,364) (189,065)
Share-based Compensation (5,140) (4,032)
Property Charges and Others (3,697) (3,616)
Interest and Other Non-Operating Expenses, Net (172,206) (49,908)
Income Tax Credit 1,356 1,042
Net Income 205,874 196,911
Net Loss Attributable to Noncontrolling Interests 28,947 7,442
Net Income Attributable to Melco Crown Entertainment Limited $ 234,821 $ 204,353
Melco Crown Entertainment Limited and Subsidiaries
Supplemental Data Schedule
Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
Room Statistics:
Altira Macau
Average daily rate (3) $ 229 $ 218 $ 231 $ 221
Occupancy per available room 98% 97% 99% 97%
Revenue per available room (4) $ 226 $ 210 $ 227 $ 214
City of Dreams
Average daily rate (3) $ 188 $ 181 $ 190 $ 185
Occupancy per available room 97% 90% 96% 90%
Revenue per available room (4) $ 182 $ 163 $ 182 $ 167
Other Information:
Altira Macau
Average number of table games 169 182 171 186
Table games win per unit per day (5) $ 25,011 $ 18,270 $ 24,452 $ 19,528
City of Dreams
Average number of table games 453 445 453 441
Average number of gaming machines 1,584 1,379 1,532 1,377
Table games win per unit per day (5) $ 27,417 $ 19,846 $ 25,694 $ 20,402
Gaming machines win per unit per day (6) $ 328 $ 321 $ 335 $ 320
(3) Average daily rate is calculated by dividing total room revenue by total occupied rooms
(4) Revenue per available room is calculated by dividing total room revenue 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 Crown Entertainment Limited