Melco Announces Unaudited Third Quarter 2020 Earnings

Unspecified, HONG KONG


MACAU, Nov. 05, 2020 (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 third quarter of 2020.

Total operating revenues for the third quarter of 2020 were US$0.21 billion, representing a decrease of approximately 85% from US$1.44 billion for the comparable period in 2019. The decrease in total operating revenues was primarily attributable to softer performance in all gaming segments and non-gaming operations as a result of the COVID-19 pandemic, which resulted in a significant decline in inbound tourism in the third quarter of 2020.

Operating loss for the third quarter of 2020 was US$275.0 million, compared with operating income of US$175.2 million in the third quarter of 2019.

Melco generated negative Adjusted Property EBITDA(1) of US$76.7 million in the third quarter of 2020, compared with Adjusted Property EBITDA of US$418.2 million in the third quarter of 2019.

Net loss attributable to Melco Resorts & Entertainment Limited for the third quarter of 2020 was US$331.6 million, or US$0.70 per ADS, compared with net income attributable to Melco Resorts & Entertainment Limited of US$83.2 million, or US$0.17 per ADS, in the third quarter of 2019. The net loss attributable to noncontrolling interests during the third quarter of 2020 was US$55.3 million and the net income attributable to noncontrolling interests during the third quarter of 2019 was US$8.9 million, 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-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance. Despite that, our integrated resorts experienced a moderate recovery in business levels during the third quarter, benefiting from the partial resumption of casino operations in Cyprus and Manila, as well as the gradual resumption of visa issuances by the Mainland Chinese authorities under the Individual Visit Scheme (IVS).

“While we are encouraged by the recent positive developments, ensuring the safety and well-being of our colleagues, customers and communities in which we operate remains our highest priority. Melco also fully supports the Macau SAR government’s newly launched scheme for tourists from Mainland China with the aim to expand the number of visitors, boost the economy and protect local jobs. In support of the scheme, Melco strives to continue prioritizing epidemic prevention measures by working hand-in-hand with local small and medium enterprise (SME) partners, while contributing collaboratively to the city’s sustainable development and economic recovery.

“We continue to prudently manage our balance sheet. Aided by the issuance of a series of new senior notes and the Studio City private share placements (but excluding Melco’s subscription therein of approximately US$280 million), as of September 30, 2020, we had cash on hand of approximately US$1.9 billion and undrawn revolver capacities of approximately US$1.7 billion.

“Melco remains committed to its global development program. Construction on the expansion of Studio City is progressing. Upon completion, Studio City will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE space. In Europe, we are developing City of Dreams Mediterranean which, upon completion, will be Europe’s largest integrated resort with approximately 500 luxury hotel rooms, a 1,500-seat amphitheater, and approximately 10,000 square meters of MICE space.

“Turning to Japan, I want to highlight our unwavering commitment to bring to the country the best IR the world has ever seen. We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, a culture of exceptional guest service, and a continuing commitment to employee development puts Melco in a strong position to help Japan realize the vision of developing a world-leading IR with unique Japanese touch. The process in Japan has been substantially delayed and remains complex. We will continue to be patient as we evaluate the landscape to ensure that Melco pursues the right opportunity that takes advantage of Melco’s core strengths to drive strong value creation.”

City of Dreams Third Quarter Results

For the quarter ended September 30, 2020, total operating revenues at City of Dreams were US$91.4 million, compared to US$787.3 million in the third quarter of 2019. City of Dreams generated negative Adjusted EBITDA of US$49.2 million in the third quarter of 2020, compared with Adjusted EBITDA of US$233.0 million in the third quarter of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in all gaming segments and lower non-gaming revenue, as well as a higher provision for credit losses.

Rolling chip volume was US$1.86 billion for the third quarter of 2020 versus US$17.18 billion in the third quarter of 2019. The rolling chip win rate was 3.34% in the third quarter of 2020, versus 2.69% in the third quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$90.1 million in the third quarter of 2020, compared with US$1.41 billion in the third quarter of 2019. The mass market table games hold percentage was 38.1% in the third quarter of 2020, compared to 33.2% in the third quarter of 2019.

Gaming machine handle for the third quarter of 2020 was US$0.11 billion, compared with US$1.21 billion in the third quarter of 2019. The gaming machine win rate was 3.4% in the third quarter of 2020, versus 3.1% in the third quarter of 2019.

Total non-gaming revenue at City of Dreams in the third quarter of 2020 was US$18.0 million, compared with US$104.2 million in the third quarter of 2019.

Altira Macau Third Quarter Results

For the quarter ended September 30, 2020, total operating revenues at Altira Macau were US$11.0 million, compared to US$113.9 million in the third quarter of 2019. Altira Macau generated negative Adjusted EBITDA of US$16.8 million in the third quarter of 2020, compared with Adjusted EBITDA of US$14.1 million in the third quarter of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in all gaming segments.

Rolling chip volume was US$0.34 billion in the third quarter of 2020 versus US$4.05 billion in the third quarter of 2019. The rolling chip win rate was 3.06% in the third quarter of 2020, versus 3.62% in the third quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

In the mass market table games segment, drop was US$15.7 million in the third quarter of 2020, versus US$154.2 million in the third quarter of 2019. The mass market table games hold percentage was 16.9% in the third quarter of 2020, compared with 21.6% in the third quarter of 2019.
    
Gaming machine handle for the third quarter of 2020 was US$42.6 million, compared with US$79.4 million in the third quarter of 2019. The gaming machine win rate was 2.3% in the third quarter of 2020, versus 4.2% in the third quarter of 2019.

Total non-gaming revenue at Altira Macau in the third quarter of 2020 was US$2.2 million, compared with US$6.8 million in the third quarter of 2019.

Mocha Clubs Third Quarter Results

Total operating revenues from Mocha Clubs were US$11.3 million in the third quarter of 2020, compared to US$29.5 million in the third quarter of 2019. Mocha Clubs generated negative Adjusted EBITDA of US$0.5 million in the third quarter of 2020, compared with Adjusted EBITDA of US$6.3 million in the same period in 2019.

Gaming machine handle for the third quarter of 2020 was US$279.6 million, compared with US$633.6 million in the third quarter of 2019. The gaming machine win rate was 4.0% in the third quarter of 2020, versus 4.7% in the third quarter of 2019.

Studio City Third Quarter Results

For the quarter ended September 30, 2020, total operating revenues at Studio City were US$30.8 million, compared to US$337.7 million in the third quarter of 2019. Studio City generated negative Adjusted EBITDA of US$21.7 million in the third quarter of 2020, compared with Adjusted EBITDA of US$106.4 million in the third quarter of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in all gaming segments and lower non-gaming revenue.

Studio City’s rolling chip volume was US$0.15 billion in the third quarter of 2020, versus US$2.77 billion in the third quarter of 2019. The rolling chip win rate was 3.41% in the third quarter of 2020, versus 2.71% in the third quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$49.7 million in the third quarter of 2020, compared with US$880.6 million in the third quarter of 2019. The mass market table games hold percentage was 31.5% in the third quarter of 2020, compared to 28.4% in the third quarter of 2019.

Gaming machine handle for the third quarter of 2020 was US$99.2 million, compared with US$711.2 million in the third quarter of 2019. The gaming machine win rate was 2.7% in the third quarter of 2020, versus 2.8% in the third quarter of 2019.

Total non-gaming revenue at Studio City in the third quarter of 2020 was US$11.5 million, compared with US$49.4 million in the third quarter of 2019.

City of Dreams Manila Third Quarter Results

For the quarter ended September 30, 2020, total operating revenues at City of Dreams Manila were US$43.4 million, compared to US$130.5 million in the third quarter of 2019. City of Dreams Manila generated Adjusted EBITDA of US$5.2 million in the third quarter of 2020, compared with Adjusted EBITDA of US$49.9 million in the comparable period of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in all gaming segments and lower non-gaming revenue.

City of Dreams Manila’s rolling chip volume was US$0.56 billion in the third quarter of 2020, versus US$2.44 billion in the third quarter of 2019. The rolling chip win rate was 2.68% in the third quarter of 2020, versus 0.89% in the third quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$63.8 million for the third quarter of 2020, compared with US$202.1 million in the third quarter of 2019. The mass market table games hold percentage was 29.0% in the third quarter of 2020, compared to 31.3% in the third quarter of 2019.

Gaming machine handle for the third quarter of 2020 was US$0.29 billion, compared with US$1.02 billion in the third quarter of 2019. The gaming machine win rate was 5.8% in the third quarter of 2020, versus 5.3% in the third quarter of 2019.

Total non-gaming revenue at City of Dreams Manila in the third quarter of 2020 was US$8.7 million, compared with US$32.3 million in the third quarter of 2019.

Cyprus Operations Third Quarter Results

The Company is currently operating a temporary casino, the first casino in the Republic of Cyprus, and is licensed to operate 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.

For the quarter ended September 30, 2020, total operating revenues at Cyprus Casinos were US$20.5 million, compared to US$26.7 million in the third quarter of 2019. Cyprus Casinos generated Adjusted EBITDA of US$6.3 million in the third quarter of 2020, compared with US$8.5 million in the third quarter of 2019. 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.

Rolling chip volume was US$0.2 million for the third quarter of 2020, versus US$38.9 million in the third quarter of 2019. The rolling chip win rate was negative 36.03% in the third quarter of 2020, versus 8.66% in the third quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop was US$23.3 million in the third quarter of 2020, versus US$36.2 million in the third quarter of 2019. The mass market table games hold percentage was 20.6% in the third quarter of 2020, compared to 21.9% in the third quarter of 2019.

Gaming machine handle for the third quarter of 2020 was US$307.5 million, compared with US$311.5 million in the third quarter of 2019. The gaming machine win rate was 5.1% in the third quarter of 2020, versus 5.0% in the third quarter of 2019.

Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2020 were US$110.3 million, which mainly included interest expenses, net of amounts capitalized of US$91.9 million and loss on extinguishment of debt of US$18.5 million.

Depreciation and amortization costs of US$153.5 million were recorded in the third quarter of 2020, of which US$14.4 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 September 30, 2020 referred to in this press release was US$8.5 million less than the negative Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated November 5, 2020 (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 September 30, 2020 aggregated to US$1.90 billion, including US$150.0 million for a bank deposit with an original maturity over three months and US$9.9 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$5.64 billion at the end of the third quarter of 2020.

Capital expenditures for the third quarter of 2020 were US$116.8 million, which primarily related to various projects at City of Dreams, Studio City Phase 2 and City of Dreams Mediterranean construction.

Recent Developments

The COVID-19 outbreak continues to have a material effect on our operations, financial position, and prospects during the fourth quarter of 2020.

Commencing from July 15, 2020, certain travelers entering Guangdong from Macau were no longer subject to mandatory quarantine, while from August 12, 2020, those entering China from Macau were generally no longer subject to mandatory quarantine. On August 26, 2020, the Chinese authorities resumed the issuance of IVS visas for Guangdong residents, while the nationwide resumption of IVS visa issuance commenced on September 23, 2020. Despite these developments, our operations continue to be impacted by significant travel bans, restrictions, and quarantine requirements imposed by the governments in Macau, Hong Kong, and certain provinces in China on visitors traveling to and from Macau, and such bans, restrictions and requirements have been, and may continue to be, modified by the relevant authorities from time to time as COVID-19 developments unfold. Additionally, health-related precautionary measures remain in place at our properties in Macau, which could continue to impact visitation and customer spending.

Our Philippines casino gaming operations were closed due to the community quarantine for the entire island of Luzon, including Metro Manila, which began on March 16, 2020 and was extended to November 30, 2020. However, as permitted by PAGCOR, since June 19, 2020, City of Dreams Manila has conducted a dry run/trial run of its gaming and hospitality operations with a limited number of participants strictly adhering to the new guidelines on social distancing and hygiene and sanitation procedures imposed by the government of the Philippines. The PAGCOR-sanctioned dry run/trial run, which aims to address all potential operational concerns to achieve a seamless re-opening for City of Dreams Manila, is expected to continue until such time that PAGCOR provides formal notice that City of Dreams Manila can resume operations again on a regular basis in the future.

In Cyprus, commencing from October 23, 2020, the cities of Limassol and Paphos became subject to a 11 p.m. to 5 a.m. curfew. On November 4, 2020, the Cyprus government announced the curfew would be extended throughout the rest of Cyprus commencing from November 5, 2020 and the curfew is currently expected to be in place through November 30, 2020. As a result, our operations in Cyprus are required to be closed during those hours while the curfew remains in place.

The COVID-19 outbreak has also impacted the construction of the Studio City Phase 2 project and the progress of construction work at the City of Dreams Mediterranean project. We currently expect additional time will be needed to complete the construction of these projects.

As the disruptions from the COVID-19 outbreak are ongoing, any recovery from such disruptions will depend on future developments, such as the duration of travel and visa restrictions and customer sentiment and behavior, including the length of time before customers resume traveling and participating in entertainment and leisure activities at high-density venues and the impact of potential higher unemployment rates, declines in income levels and loss of personal wealth resulting from the COVID-19 outbreak on consumer behavior related to discretionary spending and traveling, all of which are highly uncertain.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2020 financial results on Thursday, November 5, 2020 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 1 844 760 0770
US Toll / International 1 347 549 4094
HK Toll 852 3018 8307
HK Toll Free 800 906 613
Japan Toll 81 3 4503 6004
Japan Toll Free 012 092 5482
UK Toll Free 080 0051 4241
Australia Toll 61 290 833 216
Australia Toll Free 1 800 754 642
Philippines Toll Free 1 800 1612 0312
   
Passcode 5797219

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 5797219

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) the recent 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, and (vii) 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:
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 (Unaudited)
(In thousands of U.S. dollars, except share and per share data)
            
            
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2020
 2019
 2020
 2019
            
            
Operating revenues:           
Casino$170,775  $1,242,192  $1,030,914  $3,727,770 
Rooms 15,184   88,438   67,228   258,918 
Food and beverage 13,385   59,081   48,047   172,745 
Entertainment, retail and other 13,552   48,945   53,732   126,727 
Total operating revenues 212,896   1,438,656   1,199,921   4,286,160 
            
Operating costs and expenses:           
Casino (207,188)  (823,115)  (986,818)  (2,423,186)
Rooms (8,573)  (22,887)  (34,897)  (67,225)
Food and beverage (14,822)  (44,966)  (62,482)  (133,452)
Entertainment, retail and other (9,378)  (24,792)  (44,915)  (73,039)
General and administrative (80,985)  (145,123)  (326,214)  (423,000)
Payments to the Philippine Parties (2,743)  (8,740)  (7,678)  (45,995)
Pre-opening costs (428)  (525)  (1,049)  (4,638)
Development costs (2,831)  (30,433)  (22,633)  (39,873)
Amortization of gaming subconcession (14,364)  (14,206)  (43,050)  (42,601)
Amortization of land use rights (5,726)  (5,663)  (17,161)  (16,982)
Depreciation and amortization (133,439)  (140,640)  (410,757)  (422,362)
Property charges and other (7,426)  (2,372)  (37,990)  (19,578)
Total operating costs and expenses (487,903)  (1,263,462)  (1,995,644)  (3,711,931)
Operating (loss) income (275,007)  175,194   (795,723)  574,229 
Non-operating income (expenses):           
Interest income 1,437   3,597   3,732   7,169 
Interest expenses, net of amounts capitalized (91,864)  (80,123)  (250,288)  (225,668)
Loan commitment fees (2,471)  (883)  (5,644)  (1,673)
Foreign exchange gains (losses), net 1,101   (79)  (5,117)  (9,409)
Other expenses, net (50)  (3,815)  (151,857)  (20,166)
Loss on extinguishment of debt (18,497)  -   (19,733)  (3,721)
Costs associated with debt modification -   -   (310)  (579)
Total non-operating expenses, net (110,344)  (81,303)  (429,217)  (254,047)
(Loss) income before income tax (385,351)  93,891   (1,224,940)  320,182 
Income tax (expense) credit (1,560)  (1,788)  5,166   (6,777)
Net (loss) income (386,911)  92,103   (1,219,774)  313,405 
Net loss (income) attributable to noncontrolling interests 55,330   (8,913)  156,016   (8,371)
Net (loss) income attributable to           
Melco Resorts & Entertainment Limited$(331,581) $83,190  $(1,063,758) $305,034 
            
Net (loss) income attributable to Melco Resorts & Entertainment Limited per share:           
Basic$(0.232) $0.058  $(0.743) $0.212 
Diluted$(0.232) $0.058  $(0.743) $0.211 
            
Net (loss) income attributable to Melco Resorts & Entertainment Limited per ADS:           
Basic$(0.695) $0.174  $(2.228) $0.637 
Diluted$(0.696) $0.173  $(2.230) $0.634 
            
Weighted average shares outstanding used in net (loss) income attributable to           
Melco Resorts & Entertainment Limited per share calculation:           
Basic 1,430,817,899   1,436,810,952   1,432,437,101   1,436,357,772 
Diluted 1,430,817,899   1,443,031,676   1,432,437,101   1,443,251,443 
            


      
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars, except share and per share data)
      
      
 September 30, December 31,
 2020 2019
  (Unaudited)   
      
ASSETS     
      
Current assets:     
Cash and cash equivalents$1,743,183  $1,394,982 
Investment securities 25,003   49,369 
Bank deposit with an original maturity over three months 150,000   - 
Restricted cash 9,487   37,390 
Accounts receivable, net 142,417   284,333 
Amounts due from affiliated companies 403   442 
Inventories 39,152   43,959 
Prepaid expenses and other current assets 84,137   84,197 
Total current assets 2,193,782   1,894,672 
      
Property and equipment, net 5,658,837   5,723,909 
Gaming subconcession, net 99,058   141,440 
Intangible assets, net 30,288   31,628 
Goodwill 86,576   95,620 
Long-term prepayments, deposits and other assets 267,047   176,478 
Investment securities -   568,936 
Restricted cash 406   130 
Deferred tax assets 6,794   3,558 
Operating lease right-of-use assets 97,708   111,043 
Land use rights, net 727,558   741,008 
Total assets$9,168,054  $9,488,422 
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
Current liabilities:     
Accounts payable$6,308  $21,882 
Accrued expenses and other current liabilities 934,592   1,420,516 
Income tax payable 8,474   8,516 
Operating lease liabilities, current 27,811   33,152 
Finance lease liabilities, current 67,099   39,725 
Current portion of long-term debt, net 250,000   146 
Amounts due to affiliated companies 1,706   1,523 
Total current liabilities 1,295,990   1,525,460 
      
Long-term debt, net 5,392,447   4,393,985 
Other long-term liabilities 21,982   18,773 
Deferred tax liabilities, net 49,980   56,677 
Operating lease liabilities, non-current 79,453   88,259 
Finance lease liabilities, non-current 269,500   262,040 
Total liabilities 7,109,352   6,345,194 
      
Shareholders' equity:     
Ordinary shares, par value $0.01; 7,300,000,000 shares authorized;     
1,456,547,942 and 1,456,547,942 shares issued;     
1,430,857,414 and 1,437,328,096 shares outstanding, respectively 14,565   14,565 
Treasury shares, at cost; 25,690,528 and 19,219,846 shares, respectively (121,537)  (90,585)
Additional paid-in capital 3,196,685   3,178,579 
Accumulated other comprehensive losses (20,814)  (18,803)
Accumulated losses (1,787,662)  (644,788)
Total Melco Resorts & Entertainment Limited shareholders’ equity 1,281,237   2,438,968 
Noncontrolling interests 777,465   704,260 
Total shareholders' equity 2,058,702   3,143,228 
Total liabilities and shareholders' equity$9,168,054  $9,488,422 
      


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net (Loss) Income Attributable to Melco Resorts & Entertainment Limited to
Adjusted Net (Loss) Income Attributable to Melco Resorts & Entertainment Limited (Unaudited)
(In thousands of U.S. dollars, except share and per share data)
            
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2020
 2019
 2020
 2019
        
          
Net (loss) income attributable to Melco Resorts & Entertainment Limited$(331,581) $83,190  $(1,063,758) $305,034 
Pre-opening costs 428   525   1,049   4,638 
Development costs 2,831   30,433   22,633   39,873 
Property charges and other 7,426   2,372   37,990   19,578 
Loss on extinguishment of debt 18,497   -   19,733   3,721 
Costs associated with debt modification -   -   310   579 
Income tax impact on adjustments (355)  (1,934)  (4,178)  (4,216)
Noncontrolling interests impact on adjustments (8,321)  (99)  (10,677)  (7,183)
Adjusted net (loss) income attributable to Melco Resorts & Entertainment Limited$(311,075) $114,487  $(996,898) $362,024 
            
Adjusted net (loss) income attributable to Melco Resorts & Entertainment Limited per share:           
Basic$(0.217) $0.080  $(0.696) $0.252 
Diluted$(0.218) $0.079  $(0.697) $0.251 
            
Adjusted net (loss) income attributable to Melco Resorts & Entertainment Limited per ADS:           
Basic$(0.652) $0.239  $(2.088) $0.756 
Diluted$(0.654) $0.238  $(2.091) $0.752 
            
Weighted average shares outstanding used in adjusted net (loss) income attributable to Melco Resorts & Entertainment Limited per share calculation:           
Basic 1,430,817,899   1,436,810,952   1,432,437,101   1,436,357,772 
Diluted 1,430,817,899   1,443,031,676   1,432,437,101   1,443,251,443 
            


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating (Loss) Income to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands of U.S. dollars)
                        
                        
 Three Months Ended September 30, 2020
 Altira
Macau
 Mocha City of
Dreams
 Studio
City
 City of Dream
Manila
 Cyprus
Operations
 Corporate and
Other
 Total
                
                        
Operating (loss) income$(22,653) $(2,367) $(111,994) $(66,769) $(20,982) $2,447  $(52,689) $(275,007)
                        
Payments to the Philippine Parties -   -   -   -   2,743   -   -   2,743 
Land rent to Belle Corporation -   -   -   -   812   -   -   812 
Pre-opening costs -   -   29   77   -   322   -   428 
Development costs -   -   -   -   -   -   2,831   2,831 
Depreciation and amortization 5,407   1,850   59,743   44,399   16,733   3,470   21,927   153,529 
Share-based compensation 140   36   1,512   484   340   54   8,526   11,092 
Property charges and other 261   30   1,517   71   5,550   (3)  -   7,426 
Adjusted EBITDA (16,845)  (451)  (49,193)  (21,738)  5,196   6,290   (19,405)  (96,146)
Corporate and Other expenses -   -   -   -   -   -   19,405   19,405 
Adjusted Property EBITDA$(16,845) $(451) $(49,193) $(21,738) $5,196  $6,290  $-  $(76,741)
                        
                        
 Three Months Ended September 30, 2019
 Altira
Macau
 Mocha City of
Dreams
 Studio
City
 City of Dreams
Manila
 Cyprus
Operations
 Corporate and
Other
 Total
                
                     
Operating income (loss)$7,797  $4,584  $167,828  $60,424  $19,788  $5,452  $(90,679) $175,194 
                        
Payments to the Philippine Parties -   -   -   -   8,740   -   -   8,740 
Land rent to Belle Corporation -   -   -   -   765   -   -   765 
Pre-opening costs -   -   24   6   -   495   -   525 
Development costs -   -   -   -   -   -   30,433   30,433 
Depreciation and amortization 6,173   1,618   63,135   45,592   19,381   2,541   22,069   160,509 
Share-based compensation 54   39   1,124   421   371   52   5,774   7,835 
Property charges and other 31   33   889   (7)  826   -   600   2,372 
Adjusted EBITDA 14,055   6,274   233,000   106,436   49,871   8,540   (31,803)  386,373 
Corporate and Other expenses -   -   -   -   -   -   31,803   31,803 
Adjusted Property EBITDA$14,055  $6,274  $233,000  $106,436  $49,871  $8,540  $-  $418,176 
                        


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating (Loss) Income to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands of U.S. dollars)
                        
                        
 Nine Months Ended September 30, 2020
 Altira
Macau
 Mocha City of
Dreams
 Studio
City
 City of Dreams
Manila
 Cyprus
Operations
 Corporate and
Other
 Total
                
                        
Operating loss$(62,735) $(1,515) $(260,100) $(210,500) $(54,233) $(6,808) $(199,832) $(795,723)
                        
Payments to the Philippine Parties -   -   -   -   7,678   -   -   7,678 
Land rent to Belle Corporation -   -   -   -   2,374   -   -   2,374 
Pre-opening costs 37   -   (21)  133   -   900   -   1,049 
Development costs -   -   -   -   -   -   22,633   22,633 
Depreciation and amortization 16,086   5,459   186,253   131,043   49,553   9,128   73,446   470,968 
Share-based compensation 366   41   3,960   1,416   1,066   155   25,172   32,176 
Property charges and other 897   56   11,325   4,414   5,753   129   15,416   37,990 
Adjusted EBITDA (45,349)  4,041   (58,583)  (73,494)  12,191   3,504   (63,165)  (220,855)
Corporate and Other expenses -   -   -   -   -   -   63,165   63,165 
Adjusted Property EBITDA$(45,349) $4,041  $(58,583) $(73,494) $12,191  $3,504  $-  $(157,690)
                        
                        
 Nine Months Ended September 30, 2019
 Altira
Macau
 Mocha City of
Dreams
 Studio
City
 City of Dreams
Manila
 Cyprus
Operations
 Corporate and
Other
 Total
                
                     
Operating income (loss)$19,985  $12,150  $509,575  $148,088  $82,244  $11,145  $(208,958) $574,229 
                        
Payments to the Philippine Parties -   -   -   -   45,995   -   -   45,995 
Land rent to Belle Corporation -   -   -   -   2,283   -   -   2,283 
Pre-opening costs 25   -   29   2,555   (7)  2,036   -   4,638 
Development costs -   -   -   -   -   -   39,873   39,873 
Depreciation and amortization 17,480   5,609   195,130   137,361   57,531   7,806   61,028   481,945 
Share-based compensation 258   120   2,835   1,113   1,001   128   17,059   22,514 
Property charges and other 73   (328)  4,766   8,535   4,182   -   2,350   19,578 
Adjusted EBITDA 37,821   17,551   712,335   297,652   193,229   21,115   (88,648)  1,191,055 
Corporate and Other expenses -   -   -   -   -   -   88,648   88,648 
Adjusted Property EBITDA$37,821  $17,551  $712,335  $297,652  $193,229  $21,115  $-  $1,279,703 
                        


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net (Loss) Income Attributable to Melco Resorts & Entertainment Limited to
Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands of U.S. dollars)
            
            
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2020 2019 2020 2019
        
          
Net (loss) income attributable to Melco Resorts & Entertainment Limited$(331,581) $83,190 $(1,063,758) $305,034
Net (loss) income attributable to noncontrolling interests (55,330)  8,913  (156,016)  8,371
Net (loss) income (386,911)  92,103  (1,219,774)  313,405
Income tax expense (credit) 1,560   1,788  (5,166)  6,777
Interest and other non-operating expenses, net 110,344   81,303  429,217   254,047
Property charges and other 7,426   2,372  37,990   19,578
Share-based compensation 11,092   7,835  32,176   22,514
Depreciation and amortization 153,529   160,509  470,968   481,945
Development costs 2,831   30,433  22,633   39,873
Pre-opening costs 428   525  1,049   4,638
Land rent to Belle Corporation 812   765  2,374   2,283
Payments to the Philippine Parties 2,743   8,740  7,678   45,995
Adjusted EBITDA (96,146)  386,373  (220,855)  1,191,055
Corporate and Other expenses 19,405   31,803  63,165   88,648
Adjusted Property EBITDA$(76,741) $418,176 $(157,690) $1,279,703
            


           
Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
           
           
    Three Months Ended Nine Months Ended
    September 30, September 30,
    2020
 2019
 2020
 2019
Room Statistics(4):        
           
 Altira Macau        
  Average daily rate (5) $152  $175  $171  $177 
  Occupancy per available room  19%  99%  32%  99%
  Revenue per available room (6) $29  $173  $54  $175 
           
 City of Dreams        
  Average daily rate (5) $208  $208  $230  $207 
  Occupancy per available room  15%  98%  24%  98%
  Revenue per available room (6) $31  $204  $54  $202 
           
 Studio City        
  Average daily rate (5) $119  $135  $134  $134 
  Occupancy per available room  13%  100%  20%  100%
  Revenue per available room (6) $16  $135  $27  $134 
           
 City of Dreams Manila        
  Average daily rate (5) $291  $179  $222  $175 
  Occupancy per available room  26%  98%  58%  98%
  Revenue per available room (6) $77  $176  $129  $172 
           
Other Information(7):        
          
 Altira Macau        
  Average number of table games  101   102   96   104 
  Average number of gaming machines  101   178   109   173 
  Table games win per unit per day (8) $1,390  $19,152  $4,813  $19,858 
  Gaming machines win per unit per day (9)$104  $202  $123  $214 
           
 City of Dreams        
  Average number of table games  515   517   489   517 
  Average number of gaming machines  482   863   476   836 
  Table games win per unit per day (8) $2,033  $19,520  $6,149  $18,387 
  Gaming machines win per unit per day (9)$85  $478  $202  $511 
           
 Studio City        
  Average number of table games  291   292   279   293 
  Average number of gaming machines  595   896   579   952 
  Table games win per unit per day (8) $774  $12,126  $2,234  $12,481 
  Gaming machines win per unit per day (9)$48  $243  $96  $226 
           
 City of Dreams Manila        
  Average number of table games  301   311   300   306 
  Average number of gaming machines  2,256   2,267   2,274   2,260 
  Table games win per unit per day (8) $1,450  $2,975  $2,712  $4,451 
  Gaming machines win per unit per day (9)$96  $259  $143  $256 
           
 Cyprus Operations        
  Average number of table games  25   38   30   38 
  Average number of gaming machines  304   409   362   372 
  Table games win per unit per day (8) $2,041  $3,256  $1,901  $2,562 
  Gaming machines win per unit per day (9)$565  $416  $483  $432 
           
           
(4)  Room statistics exclude rooms that were temporarily closed or provided to staff members during the three and nine months ended September 30, 2020 due to the COVID-19 outbreak
(5)  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
(6)  Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available
(7)  Table games and gaming machines that were not in operation during the three and nine months ended September 30, 2020 due to government mandated closures or social distancing measures in relation to the COVID-19 outbreak have been excluded
(8)  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
(9)  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