Melco Announces Unaudited Fourth Quarter 2022 Earnings
03/01/2023 - 08:00 AM
MACAU, March 01, 2023 (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, 2022.
Total operating revenues for the fourth quarter of 2022 were US$337.1 million , representing a decrease of approximately 30% from US$480.6 million for the comparable period in 2021. The decrease in total operating revenues was primarily attributable to the heightened travel restrictions in Macau and mainland China related to COVID-19 during the quarter which led to softer performance in the rolling chip and mass market table games segments.
Operating loss for the fourth quarter of 2022 was US$199.5 million , compared with operating loss of US$104.4 million in the fourth quarter of 2021.
Melco generated negative Adjusted Property EBITDA(1) of US$6.8 million in the fourth quarter of 2022, compared with Adjusted Property EBITDA of US$94.0 million in the fourth quarter of 2021.
Net loss attributable to Melco Resorts & Entertainment Limited for the fourth quarter of 2022 was US$251.9 million , or US$0.57 per ADS, compared with US$159.9 million , or US$0.34 per ADS, in the fourth quarter of 2021. The net loss attributable to noncontrolling interests was US$42.1 million and US$30.0 million during the fourth quarters of 2022 and 2021, 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, “Our results for the fourth quarter of 2022 continued to be impacted by the travel restrictions imposed across mainland China and Macau. However, we are encouraged by the increased visitation and volume that we have seen since the travel restrictions between mainland China and Macau were relaxed on January 8, 2023. Our recent performance reinforces our belief in the return of pent-up demand and our view that Macau will continue to develop as a leading international destination for entertainment and leisure.
“We are honored to have been awarded a gaming concession to continue to operate in Macau for the next 10 years. We greatly appreciate the consideration given to our proposal and our investment propositions that we believe will continue to build on our existing strengths in entertainment and non-gaming attractions. We pledge our full support to the sustainable and diversified development of the tourism and leisure industry in Macau, and will continue to work with the Macau government, the community, and stakeholders to contribute to the city’s development as a leading global tourism destination.
“Gaming volumes in the Philippines have reached close to pre-pandemic levels, and volumes in Cyprus have exceeded those we had seen pre-pandemic. We are optimistic about continued growth in the Philippines and Cyprus as international travel normalizes.
“In respect to our development projects, we expect Studio City Phase 2 to open in the second quarter of 2023. The first stage of opening is expected to include one of our hotel towers and the indoor water park, which is expected to be the largest of its kind in Asia. The second phase of opening is expected to be in the third quarter. In Cyprus, we have been informed that the Council of Ministers has approved an extension of the deadline to open City of Dreams Mediterranean under the terms of our gaming license to June 30, 2023 and we continue to work with our contractors with a target to open within that timeframe.
“We remain steadfast on reaching our 2030 goals in environmental sustainability. We are monitoring food waste through the Winnow AI technology installed in the employee kitchens and dining areas and continuously adjust menus accordingly. Food waste has reduced by 50% at our employee dining room at City of Dreams Manila due to continued efforts in internal engagement initiatives. Food waste composted on site in both Macau and Manila increased by 30% overall compared to 2021 and usage of the compost for our properties green areas has continued to improve as a result of ongoing adjustments with our landscaping teams. We are also working towards achieving BREEAM certification for the completed construction of Studio City Phase 2 and City of Dreams Mediterranean, following the ‘Excellent’ ratings that we obtained for the design stage of both properties.”
City of Dreams Fourth Quarter Results
For the quarter ended December 31, 2022, total operating revenues at City of Dreams were US$139.2 million , compared with US$244.8 million in the fourth quarter of 2021. City of Dreams generated negative Adjusted EBITDA of US$7.8 million in the fourth quarter of 2022, compared with Adjusted EBITDA of US$49.7 million in the fourth quarter of 2021. The year-over-year decline in Adjusted EBITDA was primarily a result of softer performance in the mass market table games segments, as well as non-gaming operations.
Rolling chip volume was US$850.4 million for the fourth quarter of 2022 versus US$3.12 billion in the fourth quarter of 2021. The rolling chip win rate was 4.47% in the fourth quarter of 2022 versus 1.68% in the fourth quarter of 2021. The expected rolling chip win rate range is 2.85% -3.15% .
Mass market table games drop decreased to US$292.2 million in the fourth quarter of 2022, compared with US$690.9 million in the fourth quarter of 2021. The mass market table games hold percentage was 29.2% in the fourth quarter of 2022, compared with 29.7% in the fourth quarter of 2021.
Gaming machine handle for the fourth quarter of 2022 was US$194.7 million , compared with US$421.6 million in the fourth quarter of 2021. The gaming machine win rate was 4.5% in the fourth quarter of 2022 versus 3.6% in the fourth quarter of 2021.
Total non-gaming revenue at City of Dreams in the fourth quarter of 2022 was US$30.5 million , compared with US$41.6 million in the fourth quarter of 2021.
Altira Macau Fourth Quarter Results
For the quarter ended December 31, 2022, total operating revenues at Altira Macau were US$9.0 million , compared with US$13.3 million in the fourth quarter of 2021. Altira Macau generated negative Adjusted EBITDA of US$9.5 million in the fourth quarter of 2022, compared with negative Adjusted EBITDA of US$0.1 million in the fourth quarter of 2021.
In the mass market table games segment, drop was US$31.9 million in the fourth quarter of 2022 versus US$35.4 million in the fourth quarter of 2021. The mass market table games hold percentage was 20.6% in the fourth quarter of 2022, compared with 28.1% in the fourth quarter of 2021.
Gaming machine handle for the fourth quarter of 2022 was US$40.8 million , compared with US$65.8 million in the fourth quarter of 2021. The gaming machine win rate was 3.0% in the fourth quarter of 2022 versus 3.6% in the fourth quarter of 2021.
Total non-gaming revenue at Altira Macau in the fourth quarter of 2022 was US$2.1 million , compared with US$2.3 million in the fourth quarter of 2021.
Mocha and Other Fourth Quarter Results
Total operating revenues from Mocha and Other were US$19.5 million in the fourth quarter of 2022, compared with US$20.8 million in the fourth quarter of 2021. Mocha and Other generated Adjusted EBITDA of US$1.8 million in the fourth quarter of 2022, compared with Adjusted EBITDA of US$4.8 million in the fourth quarter of 2021.
Mass market table games drop was US$21.0 million in the fourth quarter of 2022 and the mass market table games hold percentage was 19.7% for the fourth quarter of 2022.
Gaming machine handle for the fourth quarter of 2022 was US$372.7 million , compared with US$474.6 million in the fourth quarter of 2021. The gaming machine win rate was 4.2% in the fourth quarter of 2022 versus 4.4% in the fourth quarter of 2021.
Studio City Fourth Quarter Results
For the quarter ended December 31, 2022, total operating revenues at Studio City were US$43.4 million , compared with US$88.2 million in the fourth quarter of 2021. Studio City generated negative Adjusted EBITDA of US$25.3 million in the fourth quarter of 2022, compared with negative Adjusted EBITDA of US$0.1 million in the fourth quarter of 2021. The year-over-year decline in Adjusted EBITDA was primarily a result of softer performance across all gaming segments and non-gaming operations.
Studio City’s rolling chip volume was US$251.4 million in the fourth quarter of 2022 versus US$474.4 million in the fourth quarter of 2021. The rolling chip win rate was 2.70% in the fourth quarter of 2022 versus 1.84% in the fourth quarter of 2021. The expected rolling chip win rate range is 2.85% -3.15% .
Mass market table games drop decreased to US$113.5 million in the fourth quarter of 2022, compared with US$253.5 million in the fourth quarter of 2021. The mass market table games hold percentage was 27.1% in the fourth quarter of 2022, compared with 29.6% in the fourth quarter of 2021.
Gaming machine handle for the fourth quarter of 2022 was US$124.5 million , compared with US$262.4 million in the fourth quarter of 2021. The gaming machine win rate was 2.7% in the fourth quarter of 2022, compared with 2.8% in the fourth quarter of 2021.
Total non-gaming revenue at Studio City in the fourth quarter of 2022 was US$9.6 million , compared with US$17.7 million in the fourth quarter of 2021.
City of Dreams Manila Fourth Quarter Results
For the quarter ended December 31, 2022, total operating revenues at City of Dreams Manila were US$95.2 million , compared with US$83.9 million in the fourth quarter of 2021. City of Dreams Manila generated Adjusted EBITDA of US$23.6 million in the fourth quarter of 2022, compared with Adjusted EBITDA of US$34.6 million in the comparable period of 2021.
City of Dreams Manila’s rolling chip volume was US$940.7 million in the fourth quarter of 2022 versus US$206.3 million in the fourth quarter of 2021. The rolling chip win rate was 1.84% in the fourth quarter of 2022 versus 1.20% in the fourth quarter of 2021. The expected rolling chip win rate range is 2.85% - 3.15% .
Mass market table games drop increased to US$148.2 million in the fourth quarter of 2022, compared with US$113.2 million in the fourth quarter of 2021. The mass market table games hold percentage was 31.9% in the fourth quarter of 2022, compared with 35.6% in the fourth quarter of 2021.
Gaming machine handle for the fourth quarter of 2022 was US$1.02 billion , compared with US$815.1 million in the fourth quarter of 2021. The gaming machine win rate was 4.7% in the fourth quarter of 2022 versus 5.4% in the fourth quarter of 2021.
Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2022 was US$24.5 million , compared with US$26.5 million in the fourth quarter of 2021.
Cyprus Operations Fourth Quarter Results
The Company is licensed to operate a temporary casino, which is 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.
Total operating revenues at Cyprus Casinos for the quarter ended December 31, 2022 was US$28.7 million , compared with US$22.4 million in the fourth quarter of 2021. Cyprus Casinos generated Adjusted EBITDA of US$10.5 million in the fourth quarter of 2022, compared with Adjusted EBITDA of US$5.2 million in the fourth quarter of 2021.
Rolling chip volume was US$1.1 million in the fourth quarter of 2022, compared with US$1.3 million in the fourth quarter of 2021. The rolling chip win rate was 16.43% in the fourth quarter of 2022, compared with negative 1.92% in the fourth quarter of 2021. The expected rolling chip win rate range is 2.85% - 3.15% .
Mass market table games drop was US$38.0 million in the fourth quarter of 2022, compared with US$30.5 million in the fourth quarter of 2021. The mass market table games hold percentage was 24.9% in the fourth quarter of 2022, compared with 20.1% in the fourth quarter of 2021.
Gaming machine handle for the fourth quarter of 2022 was US$392.4 million , compared with US$328.6 million in the fourth quarter of 2021. The gaming machine win rate was 5.0% in the fourth quarter of 2022 versus 5.1% in the fourth quarter of 2021.
Other Factors Affecting Earnings
Total net non-operating expenses for the fourth quarter of 2022 were US$93.9 million , which mainly included interest expenses of US$104.7 million , net of amounts capitalized, partially offset by interest income of US$9.4 million .
Depreciation and amortization costs of US$121.9 million were recorded in the fourth quarter of 2022 of which US$2.9 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, 2022 referred to above is US$9.1 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, 2023 (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, 2022 aggregated to US$1.99 billion , including US$175.7 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$8.41 billion at the end of the fourth quarter of 2022.
Available liquidity, including cash and undrawn revolving credit facilities, as of December 31, 2022, was US$2.06 billion .
Capital expenditures for the fourth quarter of 2022 were US$112.0 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, 2022, Melco Resorts & Entertainment Limited reported total operating revenues of US$1.35 billion versus US$2.01 billion in the prior year. The decrease in total operating revenues was primarily attributable to travel restrictions in Macau and mainland China related to COVID-19 during the year as well as the government mandated temporary closure of our casinos in Macau in July which led to softer performance in the rolling chip and mass market table games segments as well as lower non-gaming revenues.
The operating loss for 2022 was US$743.1 million , compared with an operating loss of US$577.5 million for 2021.
Melco generated Adjusted Property EBITDA of US$0.6 million for the year ended December 31, 2022, compared with Adjusted Property EBITDA of US$235.1 million in 2021.
Net loss attributable to Melco Resorts & Entertainment Limited for 2022 was US$930.5 million , or US$2.01 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$811.8 million , or US$1.70 per ADS, for 2021. The net loss attributable to noncontrolling interests was US$166.6 million and US$144.7 million for 2022 and 2021, respectively, all of which were related to Studio City, City of Dreams Manila and the Cyprus Operations.
Recent Developments
Since January 8, 2023, travelers arriving in Macau from Mainland China, Hong Kong and Taiwan were no longer required to present negative nucleic acid tests which thereby contributed to a 233% increase in Macau’s gross gaming revenue from MOP3.5 billion in December 2022 to MOP11.6 billion in January 2023 according to data reported by the Gaming Inspection and Coordination Bureau of Macau. In addition, in Macau, from February 27, 2023, masks are not required in outdoor places. However, masks are still required on public transportation (except taxis) and in certain indoor areas, such as medical facilities and elderly homes. Requirement to wear masks has been waived in most private indoor areas by their operators or supervisory entities.
While quarantine-free travel within Greater China has resumed, the pace of recovery remains highly uncertain, and disruptions caused by the COVID-19 outbreak continue to have a material adverse impact on our operations, financial position and future prospects into the first quarter of 2023.
Conference Call Information
Melco Resorts & Entertainment Limited will hold a conference call to discuss its fourth quarter 2022 financial results on Wednesday, March 1, 2023 at 8:30 a.m. Eastern Time (or 9:30 p.m. Singapore Time).
To join the conference call, please register in advance using the below Online Registration Link. Upon registering, each participant will receive the dial-in numbers and a unique Personal PIN which can be used to join the conference.
Online Registration Link: https://register.vevent.com/register/BI4ecb1896c0e54d0780ee6459f8d58fd4
An audio webcast and replay of the conference call will also be available at http://www.melco-resorts.com .
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) COVID-19 outbreaks, and the continued impact of its consequences on our business, our industry and the global economy, (ii) risks associated with the newly adopted gaming law in Macau and its implementation by the Macau government, (iii) changes in the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iv) capital and credit market volatility, (v) local and global economic conditions, (vi) our anticipated growth strategies, (vii) gaming authority and other governmental approvals and regulations, 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 recognizes these limitations and uses 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 and loss on extinguishment of debt, 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 majority owned by Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited, which is in turn majority 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, 2022 2021 2022 2021 Operating revenues: Casino $ 267,468 $ 390,659 $ 1,076,398 $ 1,676,263 Rooms 27,275 44,666 116,552 157,501 Food and beverage 23,280 25,641 85,518 97,665 Entertainment, retail and other 19,065 19,642 71,509 80,927 Total operating revenues 337,088 480,608 1,349,977 2,012,356 Operating costs and expenses: Casino (227,248) (286,280) (912,839) (1,320,882) Rooms (11,142) (12,625) (46,199) (49,895) Food and beverage (20,909) (22,758) (82,000) (91,533) Entertainment, retail and other (5,583) (6,355) (22,419) (29,463) General and administrative (120,742) (100,006) (423,225) (426,407) Payments to the Philippine Parties (2,016) (6,102) (28,894) (26,371) Pre-opening costs (6,670) (1,383) (15,585) (4,157) Development costs - 1,302 - (30,677) Amortization of gaming subconcession (2,853) (14,286) (32,785) (57,276) Amortization of land use rights (5,672) (5,695) (22,662) (22,832) Depreciation and amortization (113,350) (124,147) (466,492) (499,739) Property charges and other (20,387) (6,638) (39,982) (30,575) Total operating costs and expenses (536,572) (584,973) (2,093,082) (2,589,807) Operating loss (199,484) (104,365) (743,105) (577,451) Non-operating income (expenses): Interest income 9,433 1,457 26,458 6,618 Interest expenses, net of amounts capitalized (104,667) (85,448) (376,722) (350,544) Other financing costs (957) (1,080) (6,396) (11,033) Foreign exchange gains, net 1,047 1,516 3,904 4,566 Other income, net 1,217 710 3,930 3,082 Loss on extinguishment of debt - - - (28,817) Total non-operating expenses, net (93,927) (82,845) (348,826) (376,128) Loss before income tax (293,411) (187,210) (1,091,931) (953,579) Income tax expense (618) (2,731) (5,236) (2,885) Net loss (294,029) (189,941) (1,097,167) (956,464) Net loss attributable to noncontrolling interests 42,088 30,004 166,641 144,713 Net loss attributable to Melco Resorts & Entertainment Limited $ (251,941) $ (159,937) $ (930,526) $ (811,751) Net loss attributable to Melco Resorts & Entertainment Limited per share: Basic $ (0.189) $ (0.112) $ (0.669) $ (0.566) Diluted $ (0.189) $ (0.112) $ (0.669) $ (0.566) Net loss attributable to Melco Resorts & Entertainment Limited per ADS: Basic $ (0.566) $ (0.336) $ (2.007) $ (1.698) Diluted $ (0.566) $ (0.336) $ (2.008) $ (1.698) Weighted average shares outstanding used in net loss attributable to Melco Resorts & Entertainment Limited per share calculation: Basic 1,335,283,346 1,428,587,890 1,391,154,836 1,434,087,641 Diluted 1,335,283,346 1,428,587,890 1,391,154,836 1,434,087,641
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, 2022 2021 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 1,812,729 $ 1,652,890 Restricted cash 50,992 285 Accounts receivable, net 55,992 54,491 Receivables from affiliated companies 630 384 Inventories 26,416 29,589 Prepaid expenses and other current assets 119,410 109,330 Assets held for sale 8,503 21,777 Total current assets 2,074,672 1,868,746 Property and equipment, net 5,870,905 5,910,684 Gaming subconcession, net - 27,065 Intangible assets, net 43,610 51,547 Goodwill 81,606 81,721 Long-term prepayments, deposits and other assets 159,697 177,142 Receivables from an affiliated company 216,333 - Restricted cash 124,736 140 Deferred tax assets, net 638 4,029 Operating lease right-of-use assets 58,715 68,034 Land use rights, net 670,872 694,582 Total assets $ 9,301,784 $ 8,883,690 LIABILITIES AND (DEFICIT) EQUITY Current liabilities: Accounts payable $ 6,730 $ 5,992 Accrued expenses and other current liabilities 809,305 935,483 Income tax payable 11,610 11,913 Operating lease liabilities, current 12,761 16,771 Finance lease liabilities, current 34,959 48,551 Current portion of long-term debt, net 322,500 128 Payables to affiliated companies 761 1,548 Liabilities related to assets held for sale - 1,497 Total current liabilities 1,198,626 1,021,883 Long-term debt, net 8,090,008 6,559,854 Other long-term liabilities 33,712 30,520 Deferred tax liabilities, net 39,677 41,030 Operating lease liabilities, non-current 55,832 62,889 Finance lease liabilities, non-current 198,291 347,629 Total liabilities 9,616,146 8,063,805 (Deficit) equity: Ordinary shares, par value $0.01 ; 7,300,000,000 shares authorized; 1,445,052,143 and 1,456,547,942 shares issued; 1,335,307,327 and 1,423,370,314 shares outstanding, respectively 14,451 14,565 Treasury shares, at cost; 109,744,816 and 33,177,628 shares, respectively (241,750) (132,856) Additional paid-in capital 3,218,895 3,238,600 Accumulated other comprehensive losses (111,969) (76,008) Accumulated losses (3,729,952) (2,799,555) Total Melco Resorts & Entertainment Limited shareholders’ (deficit) equity (850,325) 244,746 Noncontrolling interests 535,963 575,139 Total (deficit) equity (314,362) 819,885 Total liabilities and (deficit) equity $ 9,301,784 $ 8,883,690
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, 2022 2021 2022 2021 Net loss attributable to Melco Resorts & Entertainment Limited $ (251,941) $ (159,937) $ (930,526) $ (811,751) Pre-opening costs 6,670 1,383 15,585 4,157 Development costs - (1,302) - 30,677 Property charges and other 20,387 6,638 39,982 30,575 Loss on extinguishment of debt - - - 28,817 Income tax impact on adjustments (412) 2,144 (1,010) 11 Noncontrolling interests impact on adjustments (3,015) (1,284) (7,796) (17,469) Adjusted net loss attributable to Melco Resorts & Entertainment Limited $ (228,311) $ (152,358) $ (883,765) $ (734,983) Adjusted net loss attributable to Melco Resorts & Entertainment Limited per share: Basic $ (0.171) $ (0.107) $ (0.635) $ (0.513) Diluted $ (0.171) $ (0.107) $ (0.636) $ (0.513) Adjusted net loss attributable to Melco Resorts & Entertainment Limited per ADS: Basic $ (0.513) $ (0.320) $ (1.906) $ (1.538) Diluted $ (0.513) $ (0.320) $ (1.908) $ (1.538) Weighted average shares outstanding used in adjusted net loss attributable to Melco Resorts & Entertainment Limited per share calculation: Basic 1,335,283,346 1,428,587,890 1,391,154,836 1,434,087,641 Diluted 1,335,283,346 1,428,587,890 1,391,154,836 1,434,087,641
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, 2022 Altira Macau Mocha and Other (3) City of Dreams Studio City City of Dreams Manila Cyprus Operations Corporate and Other Total Operating (loss) income $ (15,546) $ 296 $ (87,572) $ (63,343) $ 7,620 $ 3,465 $ (44,404) $ (199,484) Payments to the Philippine Parties - - - - 2,016 - - 2,016 Land rent to Belle Corporation - - - - 467 - - 467 Pre-opening costs - - - 1,429 - 5,241 - 6,670 Depreciation and amortization 5,153 1,317 59,266 33,585 12,657 1,394 8,503 121,875 Share-based compensation 437 160 7,999 861 912 396 17,184 27,949 Property charges and other 456 36 12,497 2,144 (120) - 5,374 20,387 Adjusted EBITDA (9,500) 1,809 (7,810) (25,324) 23,552 10,496 (13,343) - (20,120) Corporate and Other expenses - - - - - - 13,343 13,343 Adjusted Property EBITDA $ (9,500) $ 1,809 $ (7,810) $ (25,324) $ 23,552 $ 10,496 $ - $ (6,777) 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 (3) Effective from June 27, 2022, the Grand Dragon Casino, which focuses on mass market table games and was previously reported under the Corporate and Other segment, has been included in the Mocha and Other segment
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, 2022 Altira Macau Mocha and Other (3) City of Dreams Studio City City of Dreams Manila Cyprus Operations Corporate and Other Total Operating (loss) income $ (66,692) $ 4,772 $ (309,543) $ (251,946) $ 55,365 $ 3,867 $ (178,928) $ (743,105) Payments to the Philippine Parties - - - - 28,894 - - 28,894 Land rent to Belle Corporation - - - - 2,318 - - 2,318 Pre-opening costs - - - 2,941 - 12,644 - 15,585 Depreciation and amortization 21,190 5,130 238,752 134,813 58,044 6,259 57,751 521,939 Share-based compensation 1,282 313 20,074 3,090 2,168 923 43,959 71,809 Property charges and other 1,200 76 18,557 5,938 137 3 14,071 39,982 Adjusted EBITDA (43,020) 10,291 (32,160) (105,164) 146,926 23,696 (63,147) (62,578) Corporate and Other expenses - - - - - - 63,147 63,147 Adjusted Property EBITDA $ (43,020) $ 10,291 $ (32,160) $ (105,164) $ 146,926 $ 23,696 $ - $ 569 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
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, 2022 2021 2022 2021 Net loss attributable to Melco Resorts & Entertainment Limited $ (251,941) $ (159,937) $ (930,526) $ (811,751) Net loss attributable to noncontrolling interests (42,088) (30,004) (166,641) (144,713) Net loss (294,029) (189,941) (1,097,167) (956,464) Income tax expense 618 2,731 5,236 2,885 Interest and other non-operating expenses, net 93,927 82,845 348,826 376,128 Property charges and other 20,387 6,638 39,982 30,575 Share-based compensation 27,949 28,051 71,809 67,957 Depreciation and amortization 121,875 144,128 521,939 579,847 Development costs - (1,302) - 30,677 Pre-opening costs 6,670 1,383 15,585 4,157 Land rent to Belle Corporation 467 669 2,318 2,848 Payments to the Philippine Parties 2,016 6,102 28,894 26,371 Adjusted EBITDA (20,120) 81,304 (62,578) 164,981 Corporate and Other expenses 13,343 12,669 63,147 70,118 Adjusted Property EBITDA $ (6,777) $ 93,973 $ 569 $ 235,099
Melco Resorts & Entertainment Limited and Subsidiaries Supplemental Data Schedule Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 Room Statistics (4) : Altira Macau Average daily rate(5) $ 96 $ 109 $ 97 $ 110 Occupancy per available room 49% 40% 42% 48% Revenue per available room(6) $ 47 $ 44 $ 41 $ 53 City of Dreams Average daily rate(5) $ 211 $ 210 $ 205 $ 205 Occupancy per available room 28% 47% 27% 53% Revenue per available room(6) $ 59 $ 99 $ 56 $ 109 Studio City Average daily rate(5) $ 100 $ 131 $ 111 $ 123 Occupancy per available room 32% 39% 28% 51% Revenue per available room(6) $ 32 $ 52 $ 31 $ 62 City of Dreams Manila Average daily rate(5) $ 140 $ 262 $ 177 $ 164 Occupancy per available room 96% 92% 95% 76% Revenue per available room(6) $ 134 $ 241 $ 167 $ 124 Other Information (7) : Altira Macau Average number of table games 91 100 93 101 Average number of gaming machines 166 128 146 121 Table games win per unit per day(8) $ 780 $ 1,084 $ 737 $ 1,912 Gaming machines win per unit per day(9) $ 81 $ 199 $ 116 $ 201 Mocha and Other (3) Average number of table games 25 - 25 - Average number of gaming machines 897 906 935 813 Table games win per unit per day(8) $ 1,806 $ - $ 1,792 $ - Gaming machines win per unit per day(9) $ 188 $ 250 $ 209 $ 287 City of Dreams Average number of table games 442 509 447 511 Average number of gaming machines 675 676 677 572 Table games win per unit per day(8) $ 3,036 $ 5,500 $ 3,361 $ 6,690 Gaming machines win per unit per day(9) $ 141 $ 246 $ 140 $ 282 Studio City Average number of table games 277 288 277 290 Average number of gaming machines 671 710 700 645 Table games win per unit per day(8) $ 1,477 $ 3,162 $ 1,562 $ 3,306 Gaming machines win per unit per day(9) $ 54 $ 113 $ 75 $ 129 City of Dreams Manila Average number of table games 261 309 274 301 Average number of gaming machines 2,218 2,373 2,266 2,338 Table games win per unit per day(8) $ 2,687 $ 1,504 $ 2,496 $ 1,789 Gaming machines win per unit per day(9) $ 236 $ 206 $ 232 $ 195 Cyprus Operations Average number of table games 35 32 35 32 Average number of gaming machines 452 440 454 440 Table games win per unit per day(8) $ 2,978 $ 2,050 $ 2,190 $ 1,927 Gaming machines win per unit per day(9) $ 472 $ 411 $ 394 $ 388 (4) Room statistics exclude rooms that were temporarily closed or provided to staff members 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 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