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Melco Announces Unaudited Fourth Quarter 2022 Earnings

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
           

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