Total operating revenues for the third quarter of 2019 were
Revenues from the provision of gaming related services are derived from the provision of facilities for the operations of
Mass market table games drop increased to
Gaming machine handle for the third quarter of 2019 was
Total gaming taxes and the costs incurred in connection with the operation of
Revenues from the provision of gaming related services were
Total non-gaming revenues at Studio City for the third quarter of 2019 was
Operating income for the third quarter of 2019 was
Adjusted EBITDA(1) was
Net income attributable to
Other Factors Affecting Earnings
Total net non-operating expenses for the third quarter of 2019 were
Depreciation and amortization costs of
In
The Adjusted EBITDA for Studio City for the three months ended
Financial Position and Capital Expenditures
Total cash and bank balances as of
Capital expenditures for the third quarter of 2019 were
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.
Non-GAAP Financial Measures
(1) "Adjusted EBITDA" is defined as earnings before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, other non-operating income and expenses. We believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results. This non-GAAP financial measure eliminates the impact of items that we do not consider indicative of the performance of our business. While we believe that this non-GAAP financial measure is useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for the related financial information prepared in accordance with U.S. GAAP. It should not be considered in isolation or construed as an alternative to net income/loss, cash flow or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities. The use of Adjusted EBITDA has material limitations as an analytical tool, as Adjusted EBITDA does not include all items that impact our net income/loss. In addition, the Company’s calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measure to its most directly comparable GAAP financial measure. Reconciliations of Adjusted 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, property charges and other, loss on extinguishment of debt and costs associated with debt modification, net of participation interest. Adjusted net income/loss is presented as supplemental disclosure because management believes it provides useful information to investors and others in understanding and evaluating our performance, in addition to income/loss computed in accordance with U.S. GAAP. Adjusted net income/loss may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income/loss 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
The Company, with its American depositary shares listed on the
The Company is strongly supported by its single largest shareholder,
For investment community, please contact:
Director, Investor Relations
Tel: +852 2598 3619
Email: richardlshuang@melco-resorts.com
For media enquiries, please contact:
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com
Studio City International Holdings Limited and Subsidiaries | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(In thousands of U.S. dollars, except share and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Provision of gaming related services | $ | 96,689 | $ | 82,028 | $ | 288,225 | $ | 250,623 | ||||||||
Rooms | 21,872 | 22,653 | 63,822 | 66,236 | ||||||||||||
Food and beverage | 17,180 | 17,419 | 51,970 | 48,878 | ||||||||||||
Entertainment | 5,452 | 4,370 | 15,535 | 10,643 | ||||||||||||
Services fee | 10,514 | 10,775 | 29,892 | 30,381 | ||||||||||||
Mall | 5,827 | 5,668 | 7,753 | 16,366 | ||||||||||||
Retail and other | 567 | 916 | 1,717 | 2,872 | ||||||||||||
Total operating revenues | 158,101 | 143,829 | 458,914 | 425,999 | ||||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||
Provision of gaming related services | (5,719 | ) | (5,073 | ) | (17,353 | ) | (15,829 | ) | ||||||||
Rooms | (5,497 | ) | (5,561 | ) | (16,230 | ) | (16,515 | ) | ||||||||
Food and beverage | (14,163 | ) | (14,400 | ) | (43,489 | ) | (41,770 | ) | ||||||||
Entertainment | (4,051 | ) | (3,637 | ) | (17,271 | ) | (10,523 | ) | ||||||||
Mall | (2,069 | ) | (2,944 | ) | (7,076 | ) | (8,326 | ) | ||||||||
Retail and other | (443 | ) | (609 | ) | (1,345 | ) | (1,883 | ) | ||||||||
General and administrative | (35,211 | ) | (36,435 | ) | (98,470 | ) | (102,290 | ) | ||||||||
Pre-opening costs | (6 | ) | (357 | ) | (2,555 | ) | (410 | ) | ||||||||
Amortization of land use right | (825 | ) | (831 | ) | (2,473 | ) | (2,492 | ) | ||||||||
Depreciation and amortization | (42,744 | ) | (42,023 | ) | (128,821 | ) | (125,806 | ) | ||||||||
Property charges and other | 256 | (560 | ) | (8,069 | ) | (4,087 | ) | |||||||||
Total operating costs and expenses | (110,472 | ) | (112,430 | ) | (343,152 | ) | (329,931 | ) | ||||||||
OPERATING INCOME | 47,629 | 31,399 | 115,762 | 96,068 | ||||||||||||
NON-OPERATING INCOME (EXPENSES) | ||||||||||||||||
Interest income | 2,691 | 977 | 4,652 | 2,416 | ||||||||||||
Interest expenses | (33,392 | ) | (40,150 | ) | (100,800 | ) | (120,334 | ) | ||||||||
Loan commitment fees | (104 | ) | (106 | ) | (311 | ) | (314 | ) | ||||||||
Foreign exchange gains (losses), net | 2,003 | (135 | ) | 702 | (297 | ) | ||||||||||
Other (expenses) income, net | (87 | ) | (88 | ) | 518 | (110 | ) | |||||||||
Loss on extinguishment of debt | - | - | (2,995 | ) | - | |||||||||||
Costs associated with debt modification | - | - | (579 | ) | - | |||||||||||
Total non-operating expenses, net | (28,889 | ) | (39,502 | ) | (98,813 | ) | (118,639 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAX | 18,740 | (8,103 | ) | 16,949 | (22,571 | ) | ||||||||||
INCOME TAX (EXPENSE) CREDIT | (201 | ) | 9 | (344 | ) | (366 | ) | |||||||||
NET INCOME (LOSS) | 18,539 | (8,094 | ) | 16,605 | (22,937 | ) | ||||||||||
NET INCOME ATTRIBUTABLE TO PARTICIPATION INTEREST | (4,278 | ) | - | (3,831 | ) | - | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | ||||||||||||||||
STUDIO CITY INTERNATIONAL HOLDINGS LIMITED | $ | 14,261 | $ | (8,094 | ) | $ | 12,774 | $ | (22,937 | ) | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | ||||||||||||||||
STUDIO CITY INTERNATIONAL HOLDINGS LIMITED | ||||||||||||||||
PER CLASS A ORDINARY SHARE: | ||||||||||||||||
Basic and diluted | $ | 0.059 | $ | (0.045 | ) | $ | 0.053 | $ | (0.127 | ) | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | ||||||||||||||||
STUDIO CITY INTERNATIONAL HOLDINGS LIMITED PER ADS: | ||||||||||||||||
Basic and diluted | $ | 0.236 | $ | (0.179 | ) | $ | 0.211 | $ | (0.506 | ) | ||||||
WEIGHTED AVERAGE CLASS A ORDINARY SHARES | ||||||||||||||||
OUTSTANDING USED IN NET INCOME (LOSS) ATTRIBUTABLE TO STUDIO CITY INTERNATIONAL HOLDINGS LIMITED PER CLASS A ORDINARY SHARE CALCULATION: | ||||||||||||||||
Basic and diluted | 241,818,016 | 181,279,400 | 241,818,016 | 181,279,400 | ||||||||||||
Note: | ||||||||||||||||
In connection with the Company's initial public offering (the "IPO") on October 22, 2018, the Company underwent a series of organizational transactions. For the preparation of the accompanying unaudited condensed consolidated financial statements and the calculation of net income (loss) attributable to Studio City International Holdings Limited per Class A ordinary share for the periods prior to the IPO, the Company has retrospectively presented net income (loss) attributable to Studio City International Holdings Limited per Class A ordinary share and the share capital as if the organizational transactions had occurred at the beginning of the earliest period presented. Such retrospective presentation reflects the redesignation of the issued 18,127.94 ordinary shares of $1 par value each to 181,279,400 Class A ordinary shares of $0.0001 par value each. For the periods prior to the IPO date, the retrospective presentation does not include the exchange of 72,511,760 Class A ordinary shares into 72,511,760 Class B ordinary shares of $0.0001 par value each and the issuance of 115,000,000 Class A ordinary shares in the IPO. |
Studio City International Holdings Limited and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands of U.S. dollars) | ||||||||
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 621,091 | $ | 345,854 | ||||
Restricted cash | 49,847 | 31,582 | ||||||
Accounts receivable, net | 946 | 1,712 | ||||||
Amounts due from affiliated companies | 53,402 | 42,339 | ||||||
Inventories | 9,606 | 9,904 | ||||||
Prepaid expenses and other current assets | 12,147 | 27,650 | ||||||
Total current assets | 747,039 | 459,041 | ||||||
PROPERTY AND EQUIPMENT, NET | 2,092,851 | 2,175,858 | ||||||
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS | 38,602 | 45,766 | ||||||
RESTRICTED CASH | 129 | 129 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 14,237 | - | ||||||
LAND USE RIGHT, NET | 118,924 | 121,544 | ||||||
TOTAL ASSETS | $ | 3,011,782 | $ | 2,802,338 | ||||
LIABILITIES, SHAREHOLDERS' EQUITY AND | ||||||||
PARTICIPATION INTEREST | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 5,239 | $ | 6,421 | ||||
Accrued expenses and other current liabilities | 78,630 | 62,825 | ||||||
Income tax payable | 33 | 33 | ||||||
Current portion of long-term debt, net | 349,583 | 347,740 | ||||||
Amounts due to affiliated companies | 15,380 | 21,953 | ||||||
Total current liabilities | 448,865 | 438,972 | ||||||
LONG-TERM DEBT, NET | 1,433,826 | 1,261,904 | ||||||
OTHER LONG-TERM LIABILITIES | 4,652 | 4,017 | ||||||
DEFERRED TAX LIABILITIES | 1,386 | 1,044 | ||||||
OPERATING LEASE LIABILITIES, NON-CURRENT | 13,393 | - | ||||||
TOTAL LIABILITIES | 1,902,122 | 1,705,937 | ||||||
SHAREHOLDERS’ EQUITY AND PARTICIPATION INTEREST | ||||||||
Class A ordinary shares | 24 | 24 | ||||||
Class B ordinary shares | 7 | 7 | ||||||
Additional paid-in capital | 1,655,602 | 1,655,602 | ||||||
Accumulated other comprehensive losses | (16,637 | ) | (14,063 | ) | ||||
Accumulated losses | (785,324 | ) | (798,098 | ) | ||||
Total shareholders’ equity | 853,672 | 843,472 | ||||||
PARTICIPATION INTEREST | 255,988 | 252,929 | ||||||
Total shareholders’ equity and participation interest | 1,109,660 | 1,096,401 | ||||||
TOTAL LIABILITIES, SHAREHOLDERS' EQUITY | ||||||||
AND PARTICIPATION INTEREST | $ | 3,011,782 | $ | 2,802,338 | ||||
Studio City International Holdings Limited and Subsidiaries | ||||||||||||||||
Reconciliation of Net Income (Loss) Attributable to Studio City International Holdings Limited to | ||||||||||||||||
Adjusted Net Income (Loss) Attributable to Studio City International Holdings Limited | ||||||||||||||||
(In thousands of U.S. dollars, except share and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Net Income (Loss) Attributable to | ||||||||||||||||
Studio City International Holdings Limited | $ | 14,261 | $ | (8,094 | ) | $ | 12,774 | $ | (22,937 | ) | ||||||
Pre-opening Costs | 6 | 357 | 2,555 | 410 | ||||||||||||
Property Charges and Other | (256 | ) | 560 | 8,069 | 4,087 | |||||||||||
Loss on Extinguishment of Debt | - | - | 2,995 | - | ||||||||||||
Costs Associated with Debt Modification | - | - | 579 | - | ||||||||||||
Participation Interest Impact on Adjustments | 58 | - | (3,275 | ) | - | |||||||||||
Adjusted Net Income (Loss) Attributable to | ||||||||||||||||
Studio City International Holdings Limited | $ | 14,069 | $ | (7,177 | ) | $ | 23,697 | $ | (18,440 | ) | ||||||
ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO | ||||||||||||||||
STUDIO CITY INTERNATIONAL HOLDINGS LIMITED | ||||||||||||||||
PER CLASS A ORDINARY SHARE: | ||||||||||||||||
Basic and diluted | $ | 0.058 | $ | (0.040 | ) | $ | 0.098 | $ | (0.102 | ) | ||||||
ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO | ||||||||||||||||
STUDIO CITY INTERNATIONAL HOLDINGS LIMITED | ||||||||||||||||
PER ADS: | ||||||||||||||||
Basic and diluted | $ | 0.233 | $ | (0.158 | ) | $ | 0.392 | $ | (0.407 | ) | ||||||
WEIGHTED AVERAGE CLASS A ORDINARY SHARES | ||||||||||||||||
OUTSTANDING USED IN ADJUSTED NET INCOME (LOSS) | ||||||||||||||||
ATTRIBUTABLE TO | ||||||||||||||||
STUDIO CITY INTERNATIONAL HOLDINGS LIMITED | ||||||||||||||||
PER CLASS A ORDINARY SHARE CALCULATION: | ||||||||||||||||
Basic and diluted | 241,818,016 | 181,279,400 | 241,818,016 | 181,279,400 | ||||||||||||
Studio City International Holdings Limited and Subsidiaries | ||||||||||||
Reconciliation of Operating Income to Adjusted EBITDA | ||||||||||||
(In thousands of U.S. dollars) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Operating Income | $ | 47,629 | $ | 31,399 | $ | 115,762 | $ | 96,068 | ||||
Pre-opening Costs | 6 | 357 | 2,555 | 410 | ||||||||
Depreciation and Amortization | 43,569 | 42,854 | 131,294 | 128,298 | ||||||||
Property Charges and Other | (256 | ) | 560 | 8,069 | 4,087 | |||||||
Adjusted EBITDA | $ | 90,948 | $ | 75,170 | $ | 257,680 | $ | 228,863 | ||||
Studio City International Holdings Limited and Subsidiaries | |||||||||||||||
Reconciliation of Net Income (Loss) Attributable to Studio City International Holdings Limited to Adjusted EBITDA | |||||||||||||||
(In thousands of U.S. dollars) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
Net Income (Loss) Attributable to | |||||||||||||||
Studio City International Holdings Limited | $ | 14,261 | $ | (8,094 | ) | $ | 12,774 | $ | (22,937 | ) | |||||
Net Income Attributable to Participation Interest | 4,278 | - | 3,831 | - | |||||||||||
Net Income (Loss) | 18,539 | (8,094 | ) | 16,605 | (22,937 | ) | |||||||||
Income Tax Expense (Credit) | 201 | (9 | ) | 344 | 366 | ||||||||||
Interest and Other Non-Operating Expenses, Net | 28,889 | 39,502 | 98,813 | 118,639 | |||||||||||
Property Charges and Other | (256 | ) | 560 | 8,069 | 4,087 | ||||||||||
Depreciation and Amortization | 43,569 | 42,854 | 131,294 | 128,298 | |||||||||||
Pre-opening Costs | 6 | 357 | 2,555 | 410 | |||||||||||
Adjusted EBITDA | $ | 90,948 | $ | 75,170 | $ | 257,680 | $ | 228,863 | |||||||
Studio City International Holdings Limited and Subsidiaries | |||||||||||||||||||||
Supplemental Data Schedule | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Room Statistics: | |||||||||||||||||||||
Average daily rate (3) | $ | 135 | $ | 141 | $ | 134 | $ | 138 | |||||||||||||
Occupancy per available room | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
Revenue per available room (4) | $ | 135 | $ | 141 | $ | 134 | $ | 138 | |||||||||||||
Other Information: | |||||||||||||||||||||
Average number of table games | 292 | 288 | 293 | 292 | |||||||||||||||||
Average number of gaming machines | 896 | 938 | 952 | 947 | |||||||||||||||||
Table games win per unit per day (5) | $ | 12,126 | $ | 14,287 | $ | 12,481 | $ | 14,361 | |||||||||||||
Gaming machines win per unit per day (6) | $ | 243 | $ | 219 | $ | 226 | $ | 235 | |||||||||||||
(3) 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 | |||||||||||||||||||||
(4) Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available | |||||||||||||||||||||
(5) Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including the point-loyalty programs) as administered by the Gaming Operator and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis | |||||||||||||||||||||
(6) Gaming machines win per unit per day is shown before non-discretionary incentives (including the point-loyalty programs) as administered by the Gaming Operator and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis |
Source: Studio City International Holdings Limited