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Melco Crown Entertainment Announces Unaudited Second Quarter 2015 Earnings and Declares Quarterly Dividend

20:00 EDT 5 Aug 2015 | Globe Newswire

MACAU, Aug. 6, 2015 (GLOBE NEWSWIRE) -- Melco Crown Entertainment Limited (Nasdaq:MPEL) ("Melco Crown Entertainment" or the "Company" or "we"), a developer, owner and operator of casino gaming and entertainment resort facilities in Asia, today reported its unaudited financial results for the second quarter of 2015.

Net revenue for the second quarter of 2015 was US$916.8 million, representing a decrease of approximately 24% from US$1,199.5 million for the comparable period in 2014. The decline in net revenue was primarily attributable to lower rolling chip revenues and mass market table games revenues in Macau, partially offset by the net revenue generated by City of Dreams Manila, which started operations in December 2014.

Adjusted property EBITDA(1) was US$204.9 million for the second quarter of 2015, as compared to Adjusted property EBITDA of US$313.6 million in the second quarter of 2014. The 35% year-over-year decline in Adjusted property EBITDA was attributable to lower group-wide rolling chip volumes and rolling chip win rate, together with a lower contribution from the mass market table games segment.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the second quarter of 2015 was US$24.3 million, or US$0.05 per ADS, compared with net income attributable to Melco Crown Entertainment of US$143.6 million, or US$0.26 per ADS, in the second quarter of 2014. The net loss attributable to noncontrolling interests during the second quarter of 2015 of US$30.0 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, "We delivered a solid operating and financial performance in the second quarter of 2015 in what continues to be a challenging environment for Macau.

"During the quarter, we maintained our company-wide cost control focus, including continuous strong discipline on marketing costs, player reinvestment and payroll costs. While we are focused on managing costs during this challenging demand environment, we remain fully committed to the long term development of our employees.

"As an employer of choice with a strong and deep heritage in Macau, we believe that our long term success is dependent on the hard work and dedication of our employees, and the development of Macau into a leading, multi-faceted leisure and tourism destination. The development of our employees and the ongoing support of the local community are evident in our market-leading training and community programs.

"The imminent opening of Studio City has created new and exciting employment opportunities for the community and our existing employees. We expect a meaningful number of our experienced colleagues to choose to take advantage of the new opportunities and new avenues to professional growth and development available at Studio City. Studio City will benefit from the sharing of the Company's core values and community spirit, and the industry expertise necessary to deliver market-leading services upon its opening. The lateral movement of employees facilitates the rationalization of our work force and is expected to allow us to realize potential cost-savings across all the relevant businesses at the time of opening.

"We are very excited about Studio City as our subsidiary embarks on the next major stage of development, with the opening of the Hollywood-inspired integrated resorton October 27, 2015. This latest large-scale integrated resort is designed to introduce to Macau a more diversified mix of entertainment than ever before and set to become a catalyst to the market, and substantially enhance Macau's appeal to an increasingly sophisticated Asian consumer who is continually seeking world-class, multi-faceted tourism experiences.

"Studio City, on track to meet its design and construction budget of US$2.3 billion, will complement our already unique and innovative portfolio of assets including City of Dreams, which remains the leading premium-focused integrated resort in Macau.

"Macau is currently experiencing a difficult period. However, we believe that through the strong leadership from the Macau and Chinese governments, the ongoing build-out of significant local and regional infrastructure, together with an expanding and increasingly affluent Chinese middle-to-upper-class, Macau remains the world's most important and exciting gaming market. We look forward to continuing our leadership role in the development of Macau into a truly diversified tourist destination.

"In Manila, City of Dreams continues to grow revenues across all business segments, with the rolling chip segment gaining meaningful traction last month. The property's world-class array of gaming and non-gaming attractions enables City of Dreams Manila to enjoy market-leading visitation in Manila, positioning the property for long term success as the city develops into one of the leading tourism destinations in Asia."

City of Dreams Second Quarter Results

For the quarter ended June 30, 2015, net revenue at City of Dreams was US$654.2 million compared to US$967.5 million in the second quarter of 2014. City of Dreams generated Adjusted EBITDA of US$179.0 million in the second quarter of 2015, representing a decrease of 38% compared to US$290.2 million in the comparable period of 2014. The decline in Adjusted EBITDA was primarily a result of lower rolling chip revenues and mass market table games revenues.

Rolling chip volume totaled US$11.1 billion for the second quarter of 2015 versus US$22.1 billion in the second quarter of 2014. The rolling chip win rate was 2.7% in both quarters ended June 30, 2015 and 2014. The expected rolling chip win rate range is 2.7%–3.0%.

Mass market table games drop decreased to US$1,198.8 million compared with US$1,330.8 million in the second quarter of 2014. The mass market table games hold percentage was 32.4% in the second quarter of 2015 compared to 37.4% in the second quarter of 2014.

Gaming machine handle for the second quarter of 2015 was US$1,116.7 million, compared with US$1,511.4 million in the second quarter of 2014.

Total non-gaming revenue at City of Dreams in the second quarter of 2015 was US$63.8 million, compared with US$67.2 million in the second quarter of 2014.

Altira Macau Second Quarter Results

For the quarter ended June 30, 2015, net revenue at Altira Macau was US$143.9 million compared to US$181.6 million in the second quarter of 2014. Altira Macau generated Adjusted EBITDA of US$6.5 million in the second quarter of 2015 compared with Adjusted EBITDA of US$15.6 million in the second quarter of 2014. The year-over-year decrease in Adjusted EBITDA was primarily a result of lower rolling chip revenues.

Rolling chip volume totaled US$6.5 billion in the second quarter of 2015 versus US$8.3 billion in the second quarter of 2014. The rolling chip win rate was 2.7% in both quarters ended June 30, 2015 and 2014. The expected rolling chip win rate range is 2.7%–3.0%.

In the mass market table games segment, drop totaled US$166.7 million in the second quarter of 2015, a decrease from US$196.8 million generated in the comparable period in 2014. The mass market table games hold percentage was 15.9% in both quarters ended June 30, 2015 and 2014.

Gaming machine handle for the second quarter of 2015 was US$7.7 million.

Total non-gaming revenue at Altira Macau in the second quarter of 2015 was US$8.2 million compared with US$9.1 million in the second quarter of 2014.

Mocha Clubs Second Quarter Results

Net revenue from Mocha Clubs totaled US$33.2 million in the second quarter of 2015 as compared to US$36.5 million in the second quarter of 2014. Mocha Clubs generated US$7.1 million of Adjusted EBITDA in the second quarter of 2015 compared with US$8.6 million in the same period in 2014.

The number of gaming machines in operation at Mocha Clubs averaged approximately 1,200 in both quarters ended June 30, 2015 and 2014. The net win per gaming machine per day was US$299 in the second quarter of 2015, as compared with US$331 in the comparable period in 2014.

City of Dreams Manila Second Quarter Results

For the second quarter of 2015, net revenue at City of Dreams Manila was US$75.0 million. City of Dreams Manila generated Adjusted EBITDA of US$12.6 million in the second quarter of 2015.

Rolling chip volume totaled US$495.8 million for the second quarter of 2015. The rolling chip win rate was 2.4% in the second quarter of 2015. The expected rolling chip win rate range is 2.7%–3.0%.

Mass market table games drop was US$116.6 million and the mass market table games hold percentage was 25.4% in the second quarter of 2015.

Gaming machine handle for the second quarter of 2015 was US$465.1 million. The number of gaming machines in operation at City of Dreams Manila averaged approximately 1,700 in the second quarter of 2015. The net win per gaming machine per day was US$183 for the second quarter of 2015.

Total non-gaming revenue at City of Dreams Manila in the second quarter of 2015 was US$28.6 million.

Other Factors Affecting Earnings

Total net non-operating expenses for the second quarter of 2015 were US$28.0 million, which mainly included interest income of US$4.7 million and interest expenses, net of capitalized interest, of US$23.9 million and US$9.9 million of other finance costs. We recorded US$39.1 million of capitalized interest during the second quarter of 2015, primarily relating to Studio City and the fifth hotel tower at City of Dreams.

The year-on-year decrease of US$7.9 million in net non-operating expenses was primarily due to higher capitalized interest in the current quarter and lower loan commitment fees after the drawdown of the Studio City US$1.3 billion term loan facility, partially offset by higher interest expenses resulted from the drawdown of the Studio City US$1.3 billion term loan facility.

Depreciation and amortization costs of US$115.7 million were recorded in the second quarter of 2015, of which US$14.3 million was related to the amortization of our gaming subconcession and US$16.1 million was related to the amortization of land use rights.

Financial Position and Capital Expenditure

Total cash and bank balances as of June 30, 2015 totaled US$3.0 billion, including US$0.3 billion of bank deposits with original maturity over three months and US$1.2 billion of restricted cash, primarily related to Studio City. Total debt at the end of the second quarter of 2015 was US$4.0 billion.

Capital expenditures for the second quarter of 2015 were US$400.8 million, which predominantly related to Studio City, various projects at City of Dreams, including the fifth hotel tower, and City of Dreams Manila.

Dividend Declaration

On August 6, 2015, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.0134 per our ADS for the second quarter of 2015 (the "Quarterly Dividend"). The Quarterly Dividend will be paid on or about Friday, September 4, 2015 to our shareholders whose names appear on the register of members of the Company at the close of business on Monday, August 17, 2015, being the record date for determination of entitlements to the Quarterly Dividend.

Community Support and Investment

As an employer of choice with a strong and deep heritage in Macau, we have always maintained a steadfast commitment to the long term development of our employees and support of the local community. This is highlighted by the following initiatives we have recently instituted or expanded:

  • Whole Person Development is about creating a foundation of knowledge, enhancing this through experience and exposure in a multitude of learning ways beyond the classroom. While promotion of individuals is the likely outcome of talent development, the development of individuals is about making them better in their roles and enabling them to grow and expand their horizons professionally and personally.
        
    • To share with the community the pride of Macau and further demonstrate our strength in unique entertainment offerings, we are offering 100 tickets to The House of Dancing Water show every day to the Macau community, with priority given to the youth, elderly and other underprivileged segments of the community.
       
    • To showcase the extensive career choices The House of Dancing Water show offer to local Macau people and to inspire insights on the curriculum preparation to meet the demands of Macau's creative and entertainment industry. We recently invited over 80 educators from local universities and educational institutes, as well as representatives of labor unions, to a backstage journey for an up-close encounter with this world-class production. 
       
    • Life-long learning is a journey, regardless of where we are in our careers or age. We wanted to create a culture of learning. We recently announced the in-house Diploma in Casino Management for our local employees. It has been brought in-house to the MCE Learning Academy as part of our commitment to developing local talents. The collaboration with the University of Macau on this program enables our own employees both convenience and access to learning.
       
    • Our "Back-to-School" program, which started in 2010 in partnership with the Department of Education, has seen the second class of graduates this year. Six employees from Table Games Department completed their high school diploma after three years of perseverance. The program was Macau's first in-house high school diploma program, giving our employees a chance to complete high school education.
       
    • Our "Dare to Dream" series, which began in 2012, offers Macau locals once-in-a-lifetime opportunities to study with international artists and experts. This year, a local Macau student won an internship at the headquarters of Zaha Hadid Architects in London at the Dare to Dreams Zaha Hadid Design Contest.
       
  • To share with the community the pride of Macau and further demonstrate our strength in unique entertainment offerings, we are offering 100 tickets to The House of Dancing Water show every day to the Macau community, with priority given to the youth, elderly and other underprivileged segments of the community.

Scheduled Opening of Studio City

As we, being the majority shareholder, are preparing for the opening of Studio City, we continue to monitor news reports and Macau government's policies relating to gaming table allocations in Macau. We understand that a Macau gaming operator received an allocation of only 150 tables in May 2015. We are mindful that the operational and financial performance of Studio City will depend to a large extent on the number of gaming tables allocated by the Macau government and we remain concerned about receiving materially fewer tables than we intend to request for Studio City. Notwithstanding this concern, we believe Studio City's unique and diversified offerings will make it a unique asset built consistent with the Macau government's objective of delivering world class entertainment. 

Studio City Asia's Entertainment Capital

Situated in the heart of Cotai and adjacent to the Lotus Bridge Immigration Point and directly connected to the light rail system, Studio City combines Macau's most diversified mix of entertainment with an exciting array of accommodation, regional and international dining and designer brand shopping, as well as a spacious and contemporary casino.

Entertainment:

  • Golden Reel – This world's highest 'Figure-8' Ferris wheel raises some 130 meters high, between Studio City's stunning, Art Deco-inspired twin hotel towers.
     
  • Batman Dark Flight – In collaboration with Warner Bros. and DC Entertainment, 'Batman Dark Flight' is the world's first flight simulation ride based on the "Batman" intellectual property franchise.
     
  • Warner Bros. Fun Zone – The 40,000-square-foot fun-filled indoor play center is packed with rides and interactive fun zones-themed around your favorite Warner Bros. and DC Comics characters.
     
  • The House of Magic – A one-of-a-kind multi-theater attraction housing magic acts performed by leading magicians from around the world. The House of Magic is set to become the premier performance venue for magicians globally.
     
  • Studio City Event Center – A 5,000-seat multi-purpose entertainment center.
     
  • Studio 8 – The only TV Studio facility in Macau to provide open access 'plug in and play' facilities to create a fully operational television recording and broadcast studio.
     
  • Pacha Macau – One of the world's biggest names in nightclubs, Pacha will bring ibiza-style nightlife to Macau and Greater China for the very first time.  

Accommodation: The Studio City Hotel will offer approximately 1,600 guest rooms catering to leisure destination seekers from across Asia and around the world.

Dining: Studio City will offer a diverse range of world-class restaurants, cafes and a number of relaxed bars and lounges. Over 30 food and beverage venues will be located throughout the property. A stunning Cosmos Food Station takes visitors on a Space Station-themed dining experience with holographic projection technology creating 'out-of-this-world' deep space visages.

Retail: Merchandised, marketed and managed by Taubman Asia, The Boulevard at Studio City, a 350,000-square-foot mall, will bring the world's best retail experiences to life in Macau.

Studio City – This is Entertainment. 

Conference Call Information

Melco Crown Entertainment will hold a conference call to discuss its second quarter 2015 financial results on Thursday, August 6, 2015 at 8:30 a.m. Eastern Time (8:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

US Toll Free 1 866 519 4004
US Toll/International 1 845 675 0437
HK Toll 852 3018 6771
HK Toll Free 800 906 601
UK Toll Free 080 823 46646
Australia Toll Free 1 800 457 076
Philippines Toll Free   1 800 165 10607
   
Passcode MPEL

An audio webcast will also be available at www.melco-crown.com.

To access the replay, please use the dial-in details below:

US Toll Free 1 855 452 5696
US Toll/International 1 646 254 3697
HK Toll Free 800 963 117
Philippines Toll Free 1 800 161 20166
   
Conference ID 89101514

Safe Harbor Statement

This release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) growth of the gaming market and visitation in Macau and the Philippines, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and other governmental approvals and regulations and (vi) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "design", "on track", "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 release is as of the date of this release, and the Company undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

(1) "Adjusted EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the "Philippine Parties"), land rent to Belle Corporation, gain on disposal of assets held for sale and other non-operating income and expenses. "Adjusted property EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, gain on disposal of assets held for sale, corporate and others expenses and other non-operating income and expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as a supplemental disclosure because management believes that they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted EBITDA and adjusted property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents adjusted EBITDA and adjusted property EBITDA because they are used by some investors as ways to measure a company's ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported adjusted EBITDA and adjusted property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, adjusted EBITDA and adjusted property EBITDA should not be considered as alternatives to operating income as indicators of the Company's performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income, adjusted EBITDA and adjusted property EBITDA do not include depreciation and amortization or interest expense and therefore do not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using adjusted EBITDA and adjusted property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.

Such U.S. GAAP measurements include operating income, net income, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in adjusted EBITDA or adjusted property EBITDA. Also, the Company's calculation of adjusted EBITDA and adjusted property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted EBITDA and adjusted property EBITDA with the most  comparable  financial  measures  calculated  and  presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this release.

(2) "Adjusted net income" is net income before pre-opening costs, development costs,  property charges and others, loss on extinguishment of debt and costs associated with debt modification. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment per share ("EPS") are presented as supplemental disclosures because management believes that they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income attributable to Melco Crown Entertainment 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 release.

About Melco Crown Entertainment Limited

Melco Crown Entertainment, with its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ: MPEL), is a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia. Melco Crown Entertainment currently operates Altira Macau (www.altiramacau.com), a casino hotel located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. Melco Crown Entertainment's business also includes the Mocha Clubs (www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company is also developing the planned Studio City (www.studiocity-macau.com), a cinematically-themed integrated entertainment, retail and gaming resort in Cotai, Macau. In the Philippines, Melco Crown (Philippines) Resorts Corporation's subsidiary, MCE Leisure (Philippines) Corporation, currently operates and manages City of Dreams Manila (www.cityofdreams.com.ph), a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. For more information about Melco Crown Entertainment, please visit www.melco-crown.com.

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

For investment community, please contact:
Ross Dunwoody
Vice President, Investor Relations
Tel: +853 8868 7575 or +852 2598 3689
Email: rossdunwoody@melco-crown.com
 
For media enquiry, please contact:
Maggie Ma
Head of Corporate Communications
Tel: +853 8868 3767 or +852 3151 3767
Email: maggiema@melco-crown.com
 
Melco Crown Entertainment Limited and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands of U.S. dollars, except share and per share data)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2015 2014 2015 2014
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
         
OPERATING REVENUES        
Casino $874,460 $1,165,349 $1,885,702 $2,485,488
Rooms  48,451  33,565  93,014  66,999
Food and beverage  29,382  19,289  58,889  40,633
Entertainment, retail and others  24,486  25,676  47,703  52,991
Gross revenues  976,779  1,243,879  2,085,308  2,646,111
Less: promotional allowances  (59,991)  (44,344)  (114,268)  (89,257)
Net revenues  916,788  1,199,535  1,971,040  2,556,854
         
OPERATING COSTS AND EXPENSES        
Casino  (624,027)  (823,450)  (1,340,821)  (1,737,080)
Rooms  (4,611)  (3,016)  (9,866)  (6,142)
Food and beverage  (7,684)  (4,727)  (15,685)  (10,459)
Entertainment, retail and others  (18,169)  (15,143)  (33,291)  (29,437)
General and administrative  (88,930)  (73,601)  (182,360)  (140,066)
Payments to the Philippine Parties  (4,137) --  (7,273) --
Pre-opening costs  (28,005)  (20,063)  (69,283)  (28,594)
Development costs  (1)  (4,775)  (21)  (6,300)
Amortization of gaming subconcession  (14,310)  (14,310)  (28,619)  (28,619)
Amortization of land use rights  (16,118)  (16,118)  (32,236)  (32,236)
Depreciation and amortization  (85,290)  (61,269)  (165,567)  (125,671)
Property charges and others  (3,538)  (255)  (3,839)  (1,947)
Gain on disposal of assets held for sale -- -- --  22,072
Total operating costs and expenses  (894,820)  (1,036,727)  (1,888,861)  (2,124,479)
OPERATING INCOME  21,968  162,808  82,179  432,375
NON-OPERATING INCOME (EXPENSES)        
Interest income  4,714  3,777  6,534  7,652
Interest expenses, net of capitalized interest  (23,931)  (28,722)  (50,970)  (60,393)
Other finance costs  (9,910)  (12,014)  (22,292)  (23,868)
Foreign exchange gain (loss), net  1,665  477  2,919  (1,751)
Other income, net  533  658  1,081  1,216
Loss on extinguishment of debt  (481) --  (481) --
Costs associated with debt modification  (545) --  (545) --
Total non-operating expenses, net  (27,955)  (35,824)  (63,754)  (77,144)
(LOSS) INCOME BEFORE INCOME TAX  (5,987)  126,984  18,425  355,231
INCOME TAX CREDIT (EXPENSE)  196  (304)  (378)  (2,993)
NET (LOSS) INCOME   (5,791)  126,680  18,047  352,238
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS  30,045  16,958  66,836  30,943
NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED $24,254 $143,638 $84,883 $383,181
         
NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:      
Basic  $0.015 $0.087 $0.053 $0.232
Diluted $0.015 $0.086 $0.052 $0.230
         
NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS:      
Basic  $0.045 $0.261 $0.158 $0.696
Diluted $0.045 $0.259 $0.156 $0.690
         
WEIGHTED AVERAGE SHARES USED IN NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE CALCULATION:        
Basic   1,617,144,022  1,652,483,503  1,616,590,943  1,651,889,758
Diluted  1,627,148,496  1,665,451,572  1,627,319,469  1,665,911,822
 
Melco Crown Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
     
     
  June 30, December 31,
  2015 2014
  (Unaudited) (Audited)
     
ASSETS    
     
CURRENT ASSETS    
Cash and cash equivalents $1,523,443 $1,597,655
Bank deposits with original maturity over three months  274,437  110,616
Restricted cash  849,509  1,447,034
Accounts receivable, net  276,466  253,665
Amounts due from affiliated companies  617  1,079
Deferred tax assets  12  532
Income tax receivable  6  15
Inventories  22,357  23,111
Prepaid expenses and other current assets  69,244  69,254
Total current assets  3,016,091  3,502,961
     
PROPERTY AND EQUIPMENT, NET  5,381,518  4,696,391
GAMING SUBCONCESSION, NET  399,175  427,794
INTANGIBLE ASSETS, NET  4,220  4,220
GOODWILL  81,915  81,915
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS  199,752  287,558
RESTRICTED CASH  356,979  369,549
DEFERRED TAX ASSETS  153  115
DEFERRED FINANCING COSTS, NET  199,746  174,872
LAND USE RIGHTS, NET  854,952  887,188
TOTAL ASSETS $10,494,501 $10,432,563
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
CURRENT LIABILITIES    
Accounts payable $16,473 $14,428
Accrued expenses and other current liabilities  1,009,669  1,005,720
Income tax payable  5,660  6,621
Capital lease obligations, due within one year   27,575  23,512
Current portion of long-term debt  44,989  262,750
Amounts due to affiliated companies  1,648  3,626
Total current liabilities  1,106,014  1,316,657
     
LONG-TERM DEBT  3,934,583  3,640,031
OTHER LONG-TERM LIABILITIES  95,458  93,441
DEFERRED TAX LIABILITIES  56,885  58,949
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR  278,027  278,027
LAND USE RIGHTS PAYABLE --  3,788
     
SHAREHOLDERS' EQUITY    
Ordinary shares  16,309  16,337
Treasury shares  (277)  (33,167)
Additional paid-in capital  3,068,950  3,092,943
Accumulated other comprehensive losses   (18,146)  (17,149)
Retained earnings  1,266,306  1,227,177
Total Melco Crown Entertainment Limited shareholders' equity  4,333,142  4,286,141
Noncontrolling interests  690,392  755,529
Total equity  5,023,534  5,041,670
TOTAL LIABILITIES AND EQUITY $10,494,501 $10,432,563
 
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Net Income Attributable to Melco Crown Entertainment Limited to 
Adjusted Net Income Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars, except share and per share data)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2015 2014 2015 2014
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
         
Net Income Attributable to Melco Crown Entertainment Limited  $24,254  $143,638  $84,883  $383,181
Pre-opening Costs, Net  15,417  15,043  41,574  21,591
Development Costs, Net  1  4,775  21  6,300
Property Charges and Others, Net  3,538  255  3,839  1,947
Loss on Extinguishment of Debt, Net  481 --  481 --
Costs Associated with Debt Modification, Net  545 --  545 --
Adjusted Net Income Attributable to Melco Crown Entertainment Limited  $44,236  $163,711  $131,343  $413,019
         
ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:  
Basic   $0.027  $0.099  $0.081  $0.250
Diluted  $0.027  $0.098  $0.081  $0.248
         
ADJUSTED NET INCOME ATTRIBUTABLE TO MELCO CROWN ENTERTAINMENT LIMITED PER ADS:  
Basic   $0.082  $0.297  $0.244  $0.750
Diluted  $0.082  $0.295  $0.242  $0.744
         
WEIGHTED AVERAGE SHARES USED IN        
ADJUSTED NET INCOME ATTRIBUTABLE        
TO MELCO CROWN ENTERTAINMENT        
LIMITED PER SHARE CALCULATION:        
Basic   1,617,144,022  1,652,483,503  1,616,590,943  1,651,889,758
Diluted  1,627,148,496  1,665,451,572  1,627,319,469  1,665,911,822
 
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
               
               
  Three Months Ended June 30, 2015
  Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
Corporate
and Others
Total
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
               
Operating (Loss) Income   $(1,287) $3,923 $126,774  $(32,781)  $(21,334)  $(53,327) $21,968
               
Payments to the Philippine Parties -- -- -- --  4,137 --  4,137
Land Rent to Belle Corporation -- -- -- --  886 --  886
Pre-opening Costs -- --  18  21,556  1,851  4,580  28,005
Development Costs -- -- -- -- --  1  1
Depreciation and Amortization  7,726  3,144  51,585  10,899  25,415  16,949  115,718
Share-based Compensation  29  21  606  73  1,681  2,560  4,970
Property Charges and Others -- -- -- -- --  3,538  3,538
Adjusted EBITDA  6,468  7,088  178,983  (253)  12,636  (25,699)  179,223
Corporate and Others Expenses -- -- -- -- --  25,699  25,699
Adjusted Property EBITDA $6,468 $7,088 $178,983  $(253) $12,636 $-- $204,922
               
               
  Three Months Ended June 30, 2014
  Altira Macau Mocha City of Dreams Studio City City of
Dreams
Manila
Corporate
and Others
Total
   (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
               
Operating Income (Loss)  $8,851 $5,070 $233,742  $(15,372)  $(16,948) $(52,535) $162,808
               
Land Rent to Belle Corporation -- -- -- -- 897 --  897
Pre-opening Costs --  464  1,614  4,193  12,895 -- 19,166
Development Costs -- -- -- -- --  4,775  4,775
Depreciation and Amortization  6,679  2,820  54,528  10,885  653  16,132 91,697
Share-based Compensation  34  38  350  7  1,986  2,837 5,252
Property Charges and Others --  255 -- -- -- --  255
Adjusted EBITDA  15,564  8,647  290,234  (287)  (517)  (28,791)  284,850
Corporate and Others Expenses -- -- -- -- --  28,791  28,791
Adjusted Property EBITDA $15,564 $8,647 $290,234  $(287)  $(517) $-- $313,641
 
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to 
Net Income Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars)
     
  Three Months Ended
  June 30,
  2015 2014
  (Unaudited) (Unaudited)
     
Adjusted Property EBITDA $204,922 $313,641
Corporate and Others Expenses  (25,699) (28,791)
Adjusted EBITDA  179,223 284,850
Payments to the Philippine Parties  (4,137) --
Land Rent to Belle Corporation  (886)  (897)
Pre-opening Costs  (28,005) (19,166)
Development Costs  (1) (4,775)
Depreciation and Amortization  (115,718) (91,697)
Share-based Compensation  (4,970) (5,252)
Property Charges and Others  (3,538) (255)
Interest and Other Non-Operating Expenses, Net  (27,955) (35,824)
Income Tax Credit (Expense)  196  (304)
Net (Loss) Income   (5,791) 126,680
Net Loss Attributable to Noncontrolling Interests  30,045  16,958
Net Income Attributable to Melco Crown Entertainment Limited $24,254 $143,638
 
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
               
               
   Six Months Ended June 30, 2015
 

Altira Macau


Mocha


City of Dreams


Studio City
City of
Dreams
Manila

Corporate
and Others


Total
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
               
Operating (Loss) Income  $(1,346) $9,051 $309,493  $(56,499)  $(71,697)  $(106,823) $82,179
               
Payments to the Philippine Parties -- -- -- --  7,273 --  7,273
Land Rent to Belle Corporation -- -- -- --  1,780 --  1,780
Pre-opening Costs -- --  379  33,890  28,052  6,962  69,283
Development Costs -- -- -- -- --  21  21
Depreciation and Amortization  14,588  6,276  103,741  21,792  46,720  33,305  226,422
Share-based Compensation  59  42  868  102  3,384  5,326  9,781
Property Charges and Others -- --  301 -- --  3,538  3,839
Adjusted EBITDA  13,301  15,369  414,782  (715)  15,512  (57,671)  400,578
Corporate and Others Expenses -- -- -- -- --  57,671  57,671
Adjusted Property EBITDA $13,301 $15,369 $414,782  $(715) $15,512 $-- $458,249
               
               
   Six Months Ended June 30, 2014
 

Altira Macau


Mocha


City of Dreams


Studio City
City of
Dreams
Manila

Corporate
and Others


Total
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
               
Operating Income (Loss) $35,766 $11,797 $517,157  $(27,411)  $(25,742)  $(79,192) $432,375
               
Land Rent to Belle Corporation -- -- -- --  1,777 --  1,777
Pre-opening Costs --  1,078 1,731  5,048  18,960 --  26,817
Development Costs -- -- -- -- --  6,300  6,300
Depreciation and Amortization  14,499  5,779  111,376  21,768  1,099  32,005  186,526
Share-based Compensation  66  84  578  7  3,778  5,404  9,917
Property Charges and Others --  1,190  757 -- -- --  1,947
Gain on Disposal of Assets Held For Sale -- -- -- -- --  (22,072)  (22,072)
Adjusted EBITDA  50,331  19,928  631,599  (588)  (128)  (57,555)  643,587
Corporate and Others Expenses -- -- -- -- --  57,555  57,555
Adjusted Property EBITDA $50,331 $19,928 $631,599  $(588)  $(128) $-- $701,142
 
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to
Net Income Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars)
     
  Six Months Ended
  June 30,
  2015 2014
  (Unaudited) (Unaudited)
     
Adjusted Property EBITDA $458,249 $701,142
Corporate and Others Expenses  (57,671)  (57,555)
Adjusted EBITDA  400,578  643,587
Payments to the Philippine Parties  (7,273) --
Land Rent to Belle Corporation  (1,780)  (1,777)
Pre-opening Costs  (69,283)  (26,817)
Development Costs  (21)  (6,300)
Depreciation and Amortization  (226,422)  (186,526)
Share-based Compensation  (9,781)  (9,917)
Property Charges and Others  (3,839)  (1,947)
Gain on Disposal of Assets Held For Sale --  22,072
Interest and Other Non-Operating Expenses, Net  (63,754)  (77,144)
Income Tax Expense  (378)  (2,993)
Net Income  18,047  352,238
Net Loss Attributable to Noncontrolling Interests  66,836  30,943
Net Income Attributable to Melco Crown Entertainment Limited $84,883 $383,181
 
Melco Crown Entertainment Limited and Subsidiaries
Supplemental Data Schedule
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2015 2014 2015 2014
Room Statistics:        
Altira Macau        
Average daily rate (3)  $208  $232  $218  $234
Occupancy per available room 99% 99% 99% 99%
Revenue per available room (4)  $206  $229  $215  $231
         
City of Dreams        
Average daily rate (3)  $198  $196  $202  $197
Occupancy per available room 99% 99% 99% 99%
Revenue per available room (4)  $196  $194  $200  $194
         
City of Dreams Manila      
Average daily rate (3)  $215 N/A  $219 N/A
Occupancy per available room 89% N/A 83% N/A
Revenue per available room (4)  $191 N/A  $183 N/A
         
Other Information:      
Altira Macau        
Average number of table games  123  136  122  139
Average number of gaming machines  56  N/A   58  N/A 
Table games win per unit per day (5)  $17,915  $20,714  $18,682  $22,998
Gaming machines win per unit per day (6)  $ 89  N/A   $85  N/A 
         
City of Dreams        
Average number of table games  496  489  501  487
Average number of gaming machines  1,082  1,373  1,173  1,278
Table games win per unit per day (5)  $15,192  $24,608  $17,117  $26,406
Gaming machines win per unit per day (6)  $460  $457  $417  $494
         
City of Dreams Manila      
Average number of table games  258 N/A  247 N/A
Average number of gaming machines  1,713 N/A  1,729 N/A
Table games win per unit per day (5)  $1,773 N/A  $1,532 N/A
Gaming machines win per unit per day (6)  $183 N/A  $164 N/A
         
(3) Average daily rate is calculated by dividing total room revenue including the retail value of promotional allowances by total occupied rooms including complimentary rooms
(4) Revenue per available room is calculated by dividing total room revenue including the retail value of promotional allowances by total rooms available
(5) Table games win per unit per day is shown before discounts and commissions
(6) Gaming machines win per unit per day is shown before deducting cost for slot points
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