U.S. markets close in 2 hours 56 minutes
  • S&P 500

    3,907.58
    -4.16 (-0.11%)
     
  • Dow 30

    31,486.51
    -14.17 (-0.04%)
     
  • Nasdaq

    11,556.90
    -50.72 (-0.44%)
     
  • Russell 2000

    1,774.09
    +8.35 (+0.47%)
     
  • Crude Oil

    110.29
    +2.67 (+2.48%)
     
  • Gold

    1,827.90
    -2.40 (-0.13%)
     
  • Silver

    21.27
    +0.15 (+0.71%)
     
  • EUR/USD

    1.0595
    +0.0037 (+0.35%)
     
  • 10-Yr Bond

    3.1850
    +0.0600 (+1.92%)
     
  • GBP/USD

    1.2283
    +0.0014 (+0.11%)
     
  • USD/JPY

    135.3700
    +0.2000 (+0.15%)
     
  • BTC-USD

    20,746.38
    -606.86 (-2.84%)
     
  • CMC Crypto 200

    451.88
    -9.91 (-2.15%)
     
  • FTSE 100

    7,258.32
    +49.51 (+0.69%)
     
  • Nikkei 225

    26,871.27
    +379.30 (+1.43%)
     

Melco Announces Unaudited Fourth Quarter 2021 Earnings

  • Oops!
    Something went wrong.
    Please try again later.
·38 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
Melco Resorts & Entertainment Limited
Melco Resorts & Entertainment Limited

MACAU, March 01, 2022 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2021.

Total operating revenues for the fourth quarter of 2021 were US$480.6 million, representing a decrease of approximately 9% from US$528.0 million for the comparable period in 2020. The decrease in total operating revenues was primarily attributable to softer performance in the rolling chip segment.

Operating loss for the fourth quarter of 2021 was US$104.4 million, compared with operating loss of US$144.8 million in the fourth quarter of 2020.

Melco generated Adjusted Property EBITDA(1) of US$94.0 million in the fourth quarter of 2021, compared with Adjusted Property EBITDA of US$53.4 million in the fourth quarter of 2020.

Net loss attributable to Melco Resorts & Entertainment Limited for the fourth quarter of 2021 was US$159.9 million, or US$0.34 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$199.7 million, or US$0.42 per ADS, in the fourth quarter of 2020. The net loss attributable to noncontrolling interests was US$30.0 million and US$35.1 million during the fourth quarters of 2021 and 2020, respectively, all of which were related to Studio City, City of Dreams Manila, and the Cyprus Operations.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “COVID-related travel restrictions continued to impact our fourth quarter operating and financial performance. We have maintained strong cost discipline under these challenging times and are pleased to see improving EBITDA profitability across each of our geographies this quarter. We are confident that our customers will return in numbers once restrictions are eased.

“We are pleased to see Macau’s vaccination rate now at over 80% and, to play our part, Melco’s employee vaccination rate in Macau has reached 95%. We hope that increasing vaccination rates can facilitate an easing of travel restrictions within the Greater Bay Area.

“Our investment commitment remains unwavering. In Macau, Studio City announced fresh rounds of debt and equity financing in February and we continue our efforts to complete the construction of Studio City Phase 2 by the deadline set in the land concession of December 27, 2022. Furthermore, in December 2021, we announced our partnership with Marriott International to run one of our new hotel towers under the W Hotel brand. W Macau – Studio City will have 557 keys, 1,110 square meters of MICE space, renowned lobby lounges, a spa, a fitness center and an indoor swimming pool.

“In Europe, the City of Dreams Mediterranean integrated resort project is on track for completion in the second half of 2022.

“On January 14, the Macau government put forward to the Macau Legislative Assembly a proposed law to amend Macau’s gaming law, 'Amendment to Law No. 16/2001'. We are grateful to the government for the opportunity to contribute our views during the public consultation process and for providing a clear framework. We are committed to participating in the public tender for the award of a gaming concession and will continue to promote economic diversification in Macau. Our actions to date reflect our confidence in the pent-up demand for leisure and in the long-term growth and stability of Macau.

“Lastly, we remain steadfast in our efforts in sustainability with a focus on energy and waste reduction. Our ongoing efficiency measures have accumulated annual savings of 53,579 MWh in Macau alone, equivalent to the electricity consumption of 6,897 households per year. Through Winnow, an artificial Intelligence (AI)-driven technology in food waste installed in our kitchens and employee dining rooms, we are saving approximately 316.5 tonnes of food waste per year. Our commitment to the Global Tourism Plastics Initiative led by the UN Environment Programme and the World Tourism Organization in collaboration with the Ellen MacArthur Foundation has seen us replace single use plastic bottles in guest rooms and restaurants with the NORDAQ water filtration and bottling system. We will gradually eliminate 14.8 million plastic bottles annually in Macau alone. By replacing F&B containers with biodegradable and sustainable alternatives, we can avoid the use and wastage of 9.5 tons of single-use plastic per year.”

City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2021, total operating revenues at City of Dreams were US$244.8 million, compared to US$321.2 million in the fourth quarter of 2020. City of Dreams generated Adjusted EBITDA of US$49.7 million in the fourth quarter of 2021, compared with Adjusted EBITDA of US$57.3 million in the fourth quarter of 2020. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in the rolling chip and mass market table games segments, partially offset by reversal of bonus and bad debt provisions.

Rolling chip volume was US$3.12 billion for the fourth quarter of 2021 versus US$3.16 billion in the fourth quarter of 2020. The rolling chip win rate was 1.68% in the fourth quarter of 2021 versus 3.76% in the fourth quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$690.9 million in the fourth quarter of 2021, compared with US$739.7 million in the fourth quarter of 2020. The mass market table games hold percentage was 29.7% in the fourth quarter of 2021, compared to 30.1% in the fourth quarter of 2020.

Gaming machine handle for the fourth quarter of 2021 was US$421.6 million, compared with US$469.1 million in the fourth quarter of 2020. The gaming machine win rate was 3.6% in the fourth quarter of 2021 versus 3.1% in the fourth quarter of 2020.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2021 was US$41.6 million, compared with US$48.1 million in the fourth quarter of 2020.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2021, total operating revenues at Altira Macau were US$13.3 million, compared to US$28.0 million in the fourth quarter of 2020. Altira Macau generated negative Adjusted EBITDA of US$0.1 million in the fourth quarter of 2021, compared with negative Adjusted EBITDA of US$13.4 million in the fourth quarter of 2020.

Starting in the third quarter of 2021, Altira Macau has strategically repositioned to cater to the premium mass segment and has shut down VIP operations. In the fourth quarter of 2020, rolling chip volume was US$950.8 million and the rolling chip win rate was 3.14%. The expected rolling chip win rate range is 2.85% - 3.15%.

In the mass market table games segment, drop was US$35.4 million in the fourth quarter of 2021 versus US$48.5 million in the fourth quarter of 2020. The mass market table games hold percentage was 28.1% in the fourth quarter of 2021, compared with 19.1% in the fourth quarter of 2020.

Gaming machine handle for the fourth quarter of 2021 was US$65.8 million, compared with US$56.4 million in the fourth quarter of 2020. The gaming machine win rate was 3.6% in the fourth quarter of 2021 versus 4.0% in the fourth quarter of 2020.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2021 was US$2.3 million, compared with US$3.7 million in the fourth quarter of 2020.

Mocha Clubs Fourth Quarter Results

Total operating revenues from Mocha Clubs were US$20.8 million in the fourth quarter of 2021, compared to US$12.8 million in the fourth quarter of 2020. Mocha Clubs generated Adjusted EBITDA of US$4.8 million in the fourth quarter of 2021, compared with negative Adjusted EBITDA of US$0.5 million in the same period in 2020.

Gaming machine handle for the fourth quarter of 2021 was US$474.6 million, compared with US$299.3 million in the fourth quarter of 2020. The gaming machine win rate was 4.4% in the fourth quarter of 2021 versus 4.3% in the fourth quarter of 2020.

Studio City Fourth Quarter Results

Total operating revenues at Studio City were US$88.2 million in the fourth quarters of both 2021 and 2020. Studio City generated negative Adjusted EBITDA of US$0.1 million in the fourth quarter of 2021, compared with negative Adjusted EBITDA of US$5.5 million in the fourth quarter of 2020.

Studio City’s rolling chip volume was US$474.4 million in the fourth quarter of 2021 versus US$449.4 million in the fourth quarter of 2020. The rolling chip win rate was 1.84% in the fourth quarter of 2021 versus negative 0.13% in the fourth quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$253.5 million in the fourth quarter of 2021, compared with US$305.6 million in the fourth quarter of 2020. The mass market table games hold percentage was 29.6% in the fourth quarter of 2021, compared to 27.0% in the fourth quarter of 2020.

Gaming machine handle for the fourth quarter of 2021 was US$262.4 million, compared with US$257.7 million in the fourth quarter of 2020. The gaming machine win rate was 2.8% in the fourth quarter of 2021, compared to 2.2% in the fourth quarter of 2020.

Total non-gaming revenue at Studio City in the fourth quarter of 2021 was US$17.7 million, compared with US$19.8 million in the fourth quarter of 2020.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2021, total operating revenues at City of Dreams Manila were US$83.9 million, compared to US$63.8 million in the fourth quarter of 2020. City of Dreams Manila generated Adjusted EBITDA of US$34.6 million in the fourth quarter of 2021, compared with Adjusted EBITDA of US$16.8 million in the comparable period of 2020. The year-over-year increase in Adjusted EBITDA was primarily due to improved performance in the mass market table games and gaming machine segments, partially offset by softer performance in the rolling chip segment.

City of Dreams Manila’s rolling chip volume was US$206.3 million in the fourth quarter of 2021 versus US$242.6 million in the fourth quarter of 2020. The rolling chip win rate was 1.20% in the fourth quarter of 2021 versus 2.98% in the fourth quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$113.2 million in the fourth quarter of 2021, compared with US$99.6 million in the fourth quarter of 2020. The mass market table games hold percentage was 35.6% in the fourth quarter of 2021, compared to 35.7% in the fourth quarter of 2020.

Gaming machine handle for the fourth quarter of 2021 was US$815.1 million, compared with US$532.1 million in the fourth quarter of 2020. The gaming machine win rate was 5.4% in the fourth quarter of 2021 versus 4.8% in the fourth quarter of 2020.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2021 was US$26.5 million, compared with US$14.5 million in the fourth quarter of 2020.

Cyprus Operations Fourth Quarter Results

The Company is licensed to operate a temporary casino, the first casino in the Republic of Cyprus, and four satellite casinos. Upon the completion and opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease.

Our casinos remained open during the quarter ended December 31, 2021, with total operating revenues at Cyprus Casinos increasing to US$22.4 million from US$8.2 million in the fourth quarter of 2020. Cyprus Casinos generated Adjusted EBITDA of US$5.2 million in the fourth quarter of 2021, compared with negative Adjusted EBITDA of US$1.2 million in the fourth quarter of 2020.

Rolling chip volume was US$1.3 million for the fourth quarter of 2021 versus US$0.1 million in the fourth quarter of 2020. The rolling chip win rate was negative 1.92% in the fourth quarter of 2021 versus negative 17.43% in the fourth quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop was US$30.5 million in the fourth quarter of 2021, compared with US$10.5 million in the fourth quarter of 2020. The mass market table games hold percentage was 20.1% in the fourth quarter of 2021, compared to 16.2% in the fourth quarter of 2020.

Gaming machine handle for the fourth quarter of 2021 was US$328.6 million, compared with US$129.4 million in the fourth quarter of 2020. The gaming machine win rate was 5.1% in the fourth quarter of 2021 versus 5.2% in the fourth quarter of 2020.

Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2021 were US$82.8 million, which mainly included interest expense of US$85.4 million, net of amounts capitalized.

Depreciation and amortization costs of US$144.1 million were recorded in the fourth quarter of 2021, of which US$14.3 million related to the amortization expense for our gaming subconcession and US$5.7 million related to the amortization expense for the land use rights.

The negative Adjusted EBITDA for Studio City for the three months ended December 31, 2021 referred to above is US$10.4 million less than the negative Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated March 1, 2022 (the “Studio City Earnings Release”). The Adjusted EBITDA of Studio City contained in the Studio City Earnings Release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain intercompany costs related to the table games operations at Studio City Casino.

Financial Position and Capital Expenditures

Total cash and bank balances as of December 31, 2021 aggregated to US$1.65 billion, including US$0.4 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$6.56 billion at the end of the fourth quarter of 2021.

Approximately 3.3 million ADSs were repurchased in the fourth quarter of 2021, for a total consideration of US$31 million.

Capital expenditures for the fourth quarter of 2021 were US$250.5 million, which primarily related to the construction projects at Studio City Phase 2 and City of Dreams Mediterranean.

Full Year Results

For the year ended December 31, 2021, Melco Resorts & Entertainment Limited reported total operating revenues of US$2.01 billion versus US$1.73 billion in the prior year. The increase in total operating revenues was primarily attributable to improved performances in the mass market table games and gaming machine segments as well as higher non-gaming revenues, partially offset by softer performance in the rolling chip segment.

The operating loss for 2021 was US$577.5 million, compared with an operating loss of US$940.6 million for 2020.

Melco generated Adjusted Property EBITDA of US$235.1 million for the year ended December 31, 2021, compared with negative Adjusted Property EBITDA of US$104.3 million in 2020.

Net loss attributable to Melco Resorts & Entertainment Limited for 2021 was US$811.8 million, or US$1.70 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$1.26 billion, or US$2.65 per ADS, for 2020. The net loss attributable to noncontrolling interests was US$144.7 million and US$191.1 million for 2021 and 2020, respectively, all of which were related to Studio City, City of Dreams Manila and the Cyprus Operations.

Subsequent Events

On February 7, 2022, Studio City Company Limited (“Studio City Company”), a subsidiary of the Company, announced an offering of senior secured notes and, concurrently, SCIHL announced that it had entered into subscription agreements with certain existing institutional holders of its ordinary shares and American Depositary Shares, each representing four Class A ordinary shares (“ADSs”), which hold, in aggregate, over 99% of SCIHL’s outstanding shares, for total proceeds of US$300 million. SCIHL is in the process of closing the private placement.

The senior secured notes were issued on February 16, 2022, with an aggregate principal amount of US$350 million, 7.0% coupon and a tenor of 5 years (the “Notes”). Net proceeds from the issuance of the Notes will be used to partially fund the capital expenditures of the remaining project for Studio City and for general corporate purposes.

Recent Developments

COVID-19 outbreaks continue to have a material effect on our operations, financial position, and future prospects into the first quarter of 2022.

In Macau, our operations remain impacted by travel restrictions and quarantine requirements. The appearance of COVID-19 cases in Macau in late September 2021 led to city-wide mandatory testing, mandatory closure of most entertainment and leisure venues (casinos and gaming areas excluded), and strict travel restrictions and requirements being implemented to enter and exit Macau. Since October 19, 2021, authorities have eased pandemic prevention measures such that travelers no longer require a 14-day quarantine on arrival in Zhuhai, and the validity of nucleic acid tests to enter Zhuhai was extended from 24 hours to 7 days. However, health-related precautionary measures remain in place and non-Macau resident individuals who are not residents of Taiwan, Hong Kong, or the PRC continue to be unable to enter Macau, except if they have been in Hong Kong or mainland PRC in the preceding 21 days and are eligible for an exemption application.

In the Philippines, the government announced a re-opening of the Philippines' borders to fully vaccinated international tourists with a negative RT-PCR test taken within 48 hours of departure of their country of origin, effective February 10, 2022 and lowered COVID-19 restrictions to alert level 1 from March 1, 2022 which allows casinos to operate at 100% capacity, subject to certain guidelines. Separately, our online gaming offering – Live Shots - program which began on August 10, 2021 for live-dealer games and on September 15, 2021 for slot machines, was shutdown on December 1, 2021 for maintenance.

In Cyprus, with the surge in COVID-19 cases, authorities stepped up COVID-19 restrictions from the end of December 2021 by reducing the capacity at certain venues and increasing restrictions for unvaccinated people. However, such restrictions were eased from February 21, 2022 and our casinos remained open during the period.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its fourth quarter 2021 financial results on Tuesday, March 1, 2022 at 8:30 a.m. Eastern Time (or 9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

US Toll Free

1 833 239 5575

US Toll / International

1 332 208 9458

HK Toll

852 3018 8307

HK Toll Free

800 906 613

Japan Toll

81 3 4577 4717

Japan Toll Free

012 092 5482

UK Toll Free

080 0279 8053

Australia Toll

61 290 833 216

Australia Toll Free

1 800 754 642

Philippines Toll Free

63 288 917 925

Passcode

3556347

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

852 3051 2780

HK Toll Free

800 963 117

Japan Toll

81 3 4580 6717

Japan Toll Free

012 095 9034

Philippines Toll Free

1 800 1612 0166

Conference ID

3556347

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 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) the global pandemic of COVID-19, caused by a novel strain of the coronavirus, and the continued impact of its consequences on our business, our industry and the global economy, (ii) growth of the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iii) capital and credit market volatility, (iv) local and global economic conditions, (v) our anticipated growth strategies, (vi) gaming authority and other governmental approvals and regulations, (vii) proposed amendments to the gaming law in Macau, the extension of current gaming concessions and subconcessions and tender for new gaming concessions, and (viii) 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 net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), land rent to Belle Corporation and other non-operating income and expenses. “Adjusted Property EBITDA” is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses. Adjusted EBITDA and Adjusted Property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA and Adjusted Property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors.

The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported Adjusted EBITDA and Adjusted Property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income/loss 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/loss, 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/loss, net income/loss, 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/loss” is net income/loss before pre-opening costs, development costs, property charges and other, loss on extinguishment of debt and costs associated with debt modification, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss 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/loss 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/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss 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/loss 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 integrated resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), an integrated resort located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated 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 resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), an integrated resort in the Entertainment City complex in Manila. In Europe, the Company is currently developing City of Dreams Mediterranean (www.cityofdreamsmed.com.cy) in the Republic of Cyprus, which is expected to be the largest and premier integrated destination resort in Europe. The Company is currently operating a temporary casino, the first authorized casino in the Republic of Cyprus, and is licensed to operate four satellite casinos (“Cyprus Casinos”). Upon the opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease. 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 the investment community, please contact:
Jeanny Kim
Senior Vice President, Group Treasurer
Tel: +852 2598 3698
Email: JeannyKim@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 (Unaudited)

(In thousands of U.S. dollars, except share and per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

Operating revenues:

Casino

$

390,659

$

440,442

$

1,676,263

$

1,471,356

Rooms

44,666

41,365

157,501

108,593

Food and beverage

25,641

26,481

97,665

74,528

Entertainment, retail and other

19,642

19,714

80,927

73,446

Total operating revenues

480,608

528,002

2,012,356

1,727,923

Operating costs and expenses:

Casino

(286,280

)

(363,392

)

(1,320,882

)

(1,350,210

)

Rooms

(12,625

)

(11,793

)

(49,895

)

(46,690

)

Food and beverage

(22,758

)

(23,641

)

(91,533

)

(86,123

)

Entertainment, retail and other

(6,355

)

(10,464

)

(29,463

)

(55,379

)

General and administrative

(100,006

)

(98,184

)

(426,407

)

(424,398

)

Payments to the Philippine Parties

(6,102

)

(5,311

)

(26,371

)

(12,989

)

Pre-opening costs

(1,383

)

(273

)

(4,157

)

(1,322

)

Development costs

1,302

(2,983

)

(30,677

)

(25,616

)

Amortization of gaming subconcession

(14,286

)

(14,361

)

(57,276

)

(57,411

)

Amortization of land use rights

(5,695

)

(5,725

)

(22,832

)

(22,886

)

Depreciation and amortization

(124,147

)

(127,476

)

(499,739

)

(538,233

)

Property charges and other

(6,638

)

(9,233

)

(30,575

)

(47,223

)

Total operating costs and expenses

(584,973

)

(672,836

)

(2,589,807

)

(2,668,480

)

Operating loss

(104,365

)

(144,834

)

(577,451

)

(940,557

)

Non-operating income (expenses):

Interest income

1,457

1,402

6,618

5,134

Interest expenses, net of amounts capitalized

(85,448

)

(90,551

)

(350,544

)

(340,839

)

Other financing costs

(1,080

)

(2,311

)

(11,033

)

(7,955

)

Foreign exchange gains (losses), net

1,516

3,038

4,566

(2,079

)

Other income (expenses), net

710

888

3,082

(150,969

)

Loss on extinguishment of debt

-

(219

)

(28,817

)

(19,952

)

Costs associated with debt modification

-

-

-

(310

)

Total non-operating expenses, net

(82,845

)

(87,753

)

(376,128

)

(516,970

)

Loss before income tax

(187,210

)

(232,587

)

(953,579

)

(1,457,527

)

Income tax (expense) credit

(2,731

)

(2,253

)

(2,885

)

2,913

Net loss

(189,941

)

(234,840

)

(956,464

)

(1,454,614

)

Net loss attributable to

noncontrolling interests

30,004

35,106

144,713

191,122

Net loss attributable to

Melco Resorts & Entertainment Limited

$

(159,937

)

$

(199,734

)

$

(811,751

)

$

(1,263,492

)

Net loss attributable to

Melco Resorts & Entertainment Limited per share:

Basic

$

(0.112

)

$

(0.140

)

$

(0.566

)

$

(0.882

)

Diluted

$

(0.112

)

$

(0.140

)

$

(0.566

)

$

(0.884

)

Net loss attributable to

Melco Resorts & Entertainment Limited per ADS:

Basic

$

(0.336

)

$

(0.419

)

$

(1.698

)

$

(2.647

)

Diluted

$

(0.336

)

$

(0.419

)

$

(1.698

)

$

(2.652

)

Weighted average shares outstanding

used in net loss attributable to

Melco Resorts & Entertainment Limited

per share calculation:

Basic

1,428,587,890

1,430,907,993

1,434,087,641

1,432,052,735

Diluted

1,428,587,890

1,430,907,993

1,434,087,641

1,432,052,735


Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars, except share and per share data)

December 31,

December 31,

2021

2020

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

1,652,890

$

1,755,351

Restricted cash

285

13

Accounts receivable, net

54,491

129,619

Amounts due from affiliated companies

384

765

Inventories

29,589

37,277

Prepaid expenses and other current assets

109,330

85,798

Assets held for sales

21,777

-

Total current assets

1,868,746

2,008,823

Property and equipment, net

5,910,684

5,681,268

Gaming subconcession, net

27,065

84,663

Intangible assets, net

51,547

58,833

Goodwill

81,721

82,203

Long-term prepayments, deposits and other assets

177,142

284,608

Restricted cash

140

406

Deferred tax assets, net

4,029

6,376

Operating lease right-of-use assets

68,034

92,213

Land use rights, net

694,582

721,574

Total assets

$

8,883,690

$

9,020,967

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

5,992

$

9,483

Accrued expenses and other current liabilities

935,483

983,865

Income tax payable

11,913

14,164

Operating lease liabilities, current

16,771

27,066

Finance lease liabilities, current

48,551

80,004

Current portion of long-term debt, net

128

-

Amounts due to affiliated companies

1,548

1,668

Liabilities related to assets held for sales

1,497

-

Total current liabilities

1,021,883

1,116,250

Long-term debt, net

6,559,854

5,645,391

Other long-term liabilities

30,520

29,213

Deferred tax liabilities, net

41,030

45,952

Operating lease liabilities, non-current

62,889

75,867

Finance lease liabilities, non-current

347,629

270,223

Total liabilities

8,063,805

7,182,896

Equity:

Ordinary shares, par value $0.01; 7,300,000,000 shares authorized;

1,456,547,942 and 1,456,547,942 shares issued;

1,423,370,314 and 1,430,965,312 shares outstanding, respectively

14,565

14,565

Treasury shares, at cost; 33,177,628 and 25,582,630 shares, respectively

(132,856)

(121,028)

Additional paid-in capital

3,238,600

3,207,312

Accumulated other comprehensive losses

(76,008)

(11,332)

Accumulated losses

(2,799,555)

(1,987,396)

Total Melco Resorts & Entertainment Limited shareholders’ equity

244,746

1,102,121

Noncontrolling interests

575,139

735,950

Total equity

819,885

1,838,071

Total liabilities and equity

$

8,883,690

$

9,020,967


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Loss Attributable to Melco Resorts & Entertainment Limited to

Adjusted Net Loss Attributable to Melco Resorts & Entertainment Limited (Unaudited)

(In thousands of U.S. dollars, except share and per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

Net loss attributable to

Melco Resorts & Entertainment Limited

$

(159,937

)

$

(199,734

)

$

(811,751

)

$

(1,263,492

)

Pre-opening costs

1,383

273

4,157

1,322

Development costs

(1,302

)

2,983

30,677

25,616

Property charges and other

6,638

9,233

30,575

47,223

Loss on extinguishment of debt

-

219

28,817

19,952

Costs associated with debt modification

-

-

-

310

Income tax impact on adjustments

2,144

(821

)

11

(4,999

)

Noncontrolling interests impact on adjustments

(1,284

)

(637

)

(17,469

)

(11,314

)

Adjusted net loss attributable to

Melco Resorts & Entertainment Limited

$

(152,358

)

$

(188,484

)

$

(734,983

)

$

(1,185,382

)

Adjusted net loss attributable to

Melco Resorts & Entertainment Limited per share:

Basic

$

(0.107

)

$

(0.132

)

$

(0.513

)

$

(0.828

)

Diluted

$

(0.107

)

$

(0.132

)

$

(0.513

)

$

(0.830

)

Adjusted net loss attributable to

Melco Resorts & Entertainment Limited per ADS:

Basic

$

(0.320

)

$

(0.395

)

$

(1.538

)

$

(2.483

)

Diluted

$

(0.320

)

$

(0.395

)

$

(1.538

)

$

(2.489

)

Weighted average shares outstanding

used in adjusted net loss attributable to

Melco Resorts & Entertainment Limited

per share calculation:

Basic

1,428,587,890

1,430,907,993

1,434,087,641

1,432,052,735

Diluted

1,428,587,890

1,430,907,993

1,434,087,641

1,432,052,735


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Loss to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands of U.S. dollars)

Three Months Ended December 31, 2021

Altira Macau

Mocha

City of Dreams

Studio City

City of Dreams Manila

Cyprus Operations

Corporate and Other

Total

Operating (loss) income

$

(6,310

)

$

3,264

$

(23,644

)

$

(37,990

)

$

9,495

$

1,980

$

(51,160

)

$

(104,365

)

Payments to the Philippine Parties

-

-

-

-

6,102

-

-

6,102

Land rent to Belle Corporation

-

-

-

-

669

-

-

669

Pre-opening costs

-

-

-

245

-

1,138

-

1,383

Development costs

-

-

-

-

-

-

(1,302

)

(1,302

)

Depreciation and amortization

5,391

1,279

62,393

33,844

17,138

2,062

22,021

144,128

Share-based compensation

717

238

8,518

1,864

683

391

15,640

28,051

Property charges and other

70

1

2,400

1,901

513

(379

)

2,132

6,638

Adjusted EBITDA

(132

)

4,782

49,667

(136

)

34,600

5,192

(12,669

)

81,304

Corporate and Other expenses

-

-

-

-

-

-

12,669

12,669

Adjusted Property EBITDA

$

(132

)

$

4,782

$

49,667

$

(136

)

$

34,600

$

5,192

$

-

$

93,973

Three Months Ended December 31, 2020

Altira Macau

Mocha

City of Dreams

Studio City

City of Dreams Manila

Cyprus Operations

Corporate and Other

Total

Operating loss

$

(19,569

)

$

(2,509

)

$

(1,395

)

$

(45,704

)

$

(9,166

)

$

(5,093

)

$

(61,398

)

$

(144,834

)

Payments to the Philippine Parties

-

-

-

-

5,311

-

-

5,311

Land rent to Belle Corporation

-

-

-

-

821

-

-

821

Pre-opening costs

-

-

89

68

-

116

-

273

Development costs

-

-

-

-

-

-

2,983

2,983

Depreciation and amortization

5,423

1,872

59,037

37,477

16,539

3,215

23,999

147,562

Share-based compensation

500

153

2,275

1,900

1,256

538

15,594

22,216

Property charges and other

222

3

(2,749

)

753

2,031

-

8,973

9,233

Adjusted EBITDA

(13,424

)

(481

)

57,257

(5,506

)

16,792

(1,224

)

(9,849

)

43,565

Corporate and Other expenses

-

-

-

-

-

-

9,849

9,849

Adjusted Property EBITDA

$

(13,424

)

$

(481

)

$

57,257

$

(5,506

)

$

16,792

$

(1,224

)

$

-

$

53,414


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Loss to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands of U.S. dollars)

Year Ended December 31, 2021

Altira Macau

Mocha

City of Dreams

Studio City

City of Dreams Manila

Cyprus Operations

Corporate and Other

Total

Operating (loss) income

$

(78,918

)

$

10,505

$

(75,668

)

$

(167,162

)

$

(18,808

)

$

(12,395

)

$

(235,005

)

$

(577,451

)

Payments to the Philippine Parties

-

-

-

-

26,371

-

-

26,371

Land rent to Belle Corporation

-

-

-

-

2,848

-

-

2,848

Pre-opening costs

-

-

195

984

-

2,978

-

4,157

Development costs

-

-

-

-

-

-

30,677

30,677

Depreciation and amortization

21,909

5,920

248,523

135,737

70,325

10,648

86,785

579,847

Share-based compensation

1,335

425

15,735

3,838

1,981

741

43,902

67,957

Property charges and other

1,700

204

13,169

6,113

6,245

(379

)

3,523

30,575

Adjusted EBITDA

(53,974

)

17,054

201,954

(20,490

)

88,962

1,593

(70,118

)

164,981

Corporate and Other expenses

-

-

-

-

-

-

70,118

70,118

Adjusted Property EBITDA

$

(53,974

)

$

17,054

$

201,954

$

(20,490

)

$

88,962

$

1,593

$

-

$

235,099

Year Ended December 31, 2020

Altira Macau

Mocha

City of Dreams

Studio City

City of Dreams Manila

Cyprus Operations

Corporate and Other

Total

Operating loss

$

(82,304

)

$

(4,024

)

$

(261,495

)

$

(256,204

)

$

(63,399

)

$

(11,901

)

$

(261,230

)

$

(940,557

)

Payments to the Philippine Parties

-

-

-

-

12,989

-

-

12,989

Land rent to Belle Corporation

-

-

-

-

3,195

-

-

3,195

Pre-opening costs

37

-

68

201

-

1,016

-

1,322

Development costs

-

-

-

-

-

-

25,616

25,616

Depreciation and amortization

21,509

7,331

245,290

168,520

66,092

12,343

97,445

618,530

Share-based compensation

866

194

6,235

3,316

2,322

693

40,766

54,392

Property charges and other

1,119

59

8,576

5,167

7,784

129

24,389

47,223

Adjusted EBITDA

(58,773

)

3,560

(1,326

)

(79,000

)

28,983

2,280

(73,014

)

(177,290

)

Corporate and Other expenses

-

-

-

-

-

-

73,014

73,014

Adjusted Property EBITDA

$

(58,773

)

$

3,560

$

(1,326

)

$

(79,000

)

$

28,983

$

2,280

$

-

$

(104,276

)


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Loss Attributable to Melco Resorts & Entertainment Limited to

Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands of U.S. dollars)

Three Months Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

Net loss attributable to Melco Resorts & Entertainment Limited

$

(159,937

)

$

(199,734

)

$

(811,751

)

$

(1,263,492

)

Net loss attributable to noncontrolling interests

(30,004

)

(35,106

)

(144,713

)

(191,122

)

Net loss

(189,941

)

(234,840

)

(956,464

)

(1,454,614

)

Income tax expense (credit)

2,731

2,253

2,885

(2,913

)

Interest and other non-operating expenses, net

82,845

87,753

376,128

516,970

Property charges and other

6,638

9,233

30,575

47,223

Share-based compensation

28,051

22,216

67,957

54,392

Depreciation and amortization

144,128

147,562

579,847

618,530

Development costs

(1,302

)

2,983

30,677

25,616

Pre-opening costs

1,383

273

4,157

1,322

Land rent to Belle Corporation

669

821

2,848

3,195

Payments to the Philippine Parties

6,102

5,311

26,371

12,989

Adjusted EBITDA

81,304

43,565

164,981

(177,290

)

Corporate and Other expenses

12,669

9,849

70,118

73,014

Adjusted Property EBITDA

$

93,973

$

53,414

$

235,099

$

(104,276

)


Melco Resorts & Entertainment Limited and Subsidiaries

Supplemental Data Schedule

Three Months Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

Room Statistics(3):

Altira Macau

Average daily rate (4)

$

109

$

152

$

110

$

164

Occupancy per available room

40

%

48

%

48

%

36

%

Revenue per available room (5)

$

44

$

73

$

53

$

59

City of Dreams

Average daily rate (4)

$

210

$

187

$

205

$

210

Occupancy per available room

47

%

60

%

53

%

33

%

Revenue per available room (5)

$

99

$

111

$

109

$

69

Studio City

Average daily rate (4)

$

131

$

121

$

123

$

128

Occupancy per available room

39

%

49

%

51

%

28

%

Revenue per available room (5)

$

52

$

59

$

62

$

36

City of Dreams Manila

Average daily rate (4)

$

262

$

215

$

164

$

220

Occupancy per available room

92

%

45

%

76

%

53

%

Revenue per available room (5)

$

241

$

98

$

124

$

117

Other Information(6):

Altira Macau

Average number of table games

100

97

101

97

Average number of gaming machines

128

110

121

110

Table games win per unit per day (7)

$

1,084

$

4,365

$

1,912

$

4,694

Gaming machines win per unit per day (8)

$

199

$

224

$

201

$

150

City of Dreams

Average number of table games

509

514

511

496

Average number of gaming machines

676

517

572

487

Table games win per unit per day (7)

$

5,500

$

7,216

$

6,690

$

6,439

Gaming machines win per unit per day (8)

$

246

$

303

$

282

$

230

Studio City

Average number of table games

288

291

290

282

Average number of gaming machines

710

606

645

586

Table games win per unit per day (7)

$

3,162

$

3,057

$

3,306

$

2,456

Gaming machines win per unit per day (8)

$

113

$

103

$

129

$

98

City of Dreams Manila

Average number of table games

309

307

301

302

Average number of gaming machines

2,373

2,241

2,338

2,262

Table games win per unit per day (7)

$

1,504

$

1,517

$

1,789

$

2,282

Gaming machines win per unit per day (8)

$

206

$

124

$

195

$

136

Cyprus Operations

Average number of table games

32

23

32

28

Average number of gaming machines

440

257

440

336

Table games win per unit per day (7)

$

2,050

$

1,234

$

1,927

$

1,770

Gaming machines win per unit per day (8)

$

411

$

434

$

388

$

473

(3)

Room statistics exclude rooms that were temporarily closed or provided to staff members due to the COVID-19 outbreak

(4)

Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms

(5)

Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available

(6)

Table games and gaming machines that were not in operation due to government mandated closures or social distancing measures in relation to the COVID-19 outbreak have been excluded

(7)

Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

(8)

Gaming machines win per unit per day is shown before non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis