NEW YORK, Feb 22, 2011 (GlobeNewswire via COMTEX) —
Melco Crown Entertainment Limited (Nasdaq:MPEL), a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, today reported its unaudited financial results for the fourth quarter and year ended December 31, 2010.
Net revenue for the fourth quarter of 2010 was US$773.7 million, representing an increase of approximately 93% from US$400.2 million reported in the quarter ended December 31, 2009. Adjusted EBITDA<1> was US$133.8 million for the fourth quarter of 2010, as compared to Adjusted EBITDA of US$2.7 million in the fourth quarter of 2009. The year-over-year improvement in net revenue and Adjusted EBITDA resulted primarily from significantly improved operating performance at City of Dreams and Altira Macau.
On a U.S. GAAP basis, Melco Crown Entertainment recorded net income for the fourth quarter of 2010 of US$16.3 million, or US$0.03 per ADS, compared with a net loss of US$89.7 million, or a loss of US$0.17 per ADS, in the fourth quarter of 2009. The improvement in bottom-line results was driven by the year-over-year improvement in the operating performance at City of Dreams and Altira Macau, partially offset by increased depreciation and amortization expense primarily associated with the opening of The House of Dancing Water at City of Dreams and higher net interest expense related to the refinancing of approximately US$600 million of bank debt through the issuance of a high yield bond in May 2010.
Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “We are pleased to report another solid quarter of operating results, driven by continued improvements in the fundamentals of our business. Our fourth quarter results demonstrate our success in driving operating leverage and in improving the profitability of our portfolio of assets.
“Our mass market table games business continues to grow and has set a new company record for table drop and gross gaming revenue in the fourth quarter of 2010. Similarly, our rolling chip segment remains strong with gaming volume in the fourth quarter of 2010 setting a new company record.
“The House of Dancing Water continues to sell out and drive incremental visitation and expenditures at City of Dreams. We look forward to the continued success of this ground-breaking show, as well as the opening of additional guest amenities in 2011.”
City of Dreams 4Q Results
For the quarter ended December 31, 2010, net revenue at City of Dreams was US$488.7 million compared to US$237.6 million in the fourth quarter of 2009. City of Dreams generated Adjusted EBITDA of US$97.7 million in the fourth quarter of 2010 compared to US$22.2 million in the fourth quarter of 2009. The year-over-year improvements in both net revenue and Adjusted EBITDA were driven by increased gaming volume and win rates in the fourth quarter of 2010, as compared with the same measures in the fourth quarter of 2009.
Rolling chip volume totaled US$15.4 billion for the fourth quarter of 2010, up 65% from US$9.3 billion in the fourth quarter of 2009, and the rolling chip hold percentage was 2.9% in the fourth quarter of 2010 versus 2.4% in the fourth quarter of 2009. The expected rolling chip hold percentage range is 2.7%-3.0%.
Mass market (non rolling chip) table games drop increased 35% to US$572.5 million compared with US$423.3 million in the fourth quarter of 2009. The mass market win rate was 22.0% in the quarter under review and increased from 17.2% in the same period last year. At City of Dreams, we expect our mass market table games hold percentage to range from 20%-22%.
Slot handle for the quarter ended December 31, 2010 was US$513.5 million, up 38% from US$372.8 million generated in the quarter ended December 31, 2009.
Total non-gaming revenue at City of Dreams in the fourth quarter of 2010 was US$47.6 million, up from US$22.8 million in the fourth quarter of 2009. Occupancy per available room in the fourth quarter of 2010 was 87% versus 79% in the fourth quarter of 2009. The average daily rate (ADR) in the fourth quarter of 2010 was US$166 per occupied room, which compares with US$152 in the fourth quarter of 2009.
Altira Macau 4Q Results
For the quarter ended December 31, 2010, net revenue at Altira Macau was US$245.1 million versus US$132.7 million in the quarter ended December 31, 2009. Altira Macau generated Adjusted EBITDA of US$46.4 million in the fourth quarter of 2010 compared with an Adjusted EBITDA loss of US$14.0 million in the fourth quarter of 2009. A year-over-year increase in gaming volume and a return to a normal rolling chip hold percentage drove the improvements in net revenue and Adjusted EBITDA.
Rolling chip volume totaled US$11.4 billion in the fourth quarter of 2010 versus US$8.9 billion in the fourth quarter of 2009. In the fourth quarter of 2010, the rolling chip hold percentage was 2.9%, as compared to 2.3% for the same period a year ago. The expected rolling chip hold percentage range is 2.7%-3.0%.
In the mass market (non rolling chip) table games segment, drop totaled US$132.5 million in the fourth quarter of 2010, up 98% from US$67.0 million generated in the comparable period in 2009. The mass market win rate was 14.7% in the fourth quarter of 2010 compared with 18.8% in the fourth quarter of last year. At Altira Macau, we expect our mass market table games hold percentage to range from 15.0%-17.0%.
Total non-gaming revenue at Altira Macau in the fourth quarter of 2010 was US$7.6 million, down slightly from US$7.7 million in the fourth quarter of 2009. Occupancy per available room in the fourth quarter of 2010 was 97% and the ADR was US$170 per occupied room. This compares with occupancy and ADR of 94% and US$196, respectively, in the fourth quarter of 2009.
Mocha Clubs 4Q Results
Net revenue from Mocha Clubs totaled US$30.6 million in the fourth quarter of 2010, up from US$25.0 million in the fourth quarter of 2009. Mocha Clubs generated US$8.6 million of Adjusted EBITDA in the fourth quarter of 2010, which compares with US$6.2 million in the fourth quarter of 2009.
The number of gaming machines in operation at the Mocha Clubs averaged approximately 1,600 in the fourth quarters of 2010 and 2009. The net win per gaming machine per day was US$208 in the quarter ended December 31, 2010, as compared with US$174 in the same period in 2009.
Other Factors Affecting Earnings
Total non-operating expense for the fourth quarter of 2010 was US$29.9 million, which included US$27.9 million in net interest expense and other finance costs of US$4.1 million. There was no capitalized interest during the fourth quarter of 2010.
Depreciation and amortization costs of US$82.9 million were recorded in the fourth quarter of 2010, of which US$14.3 million was related to the amortization of our gaming sub-concession and US$4.9 million was related to the amortization of land use rights. The year-over-year increase in depreciation and amortization costs is primarily related to the opening of The House of Dancing Water in the third quarter of 2010.
Financial Position and Capital Expenditure
Cash and cash equivalents as of December 31, 2010 totaled US$609.2 million, including US$167.3 million of restricted cash. Total debt at the end of the fourth quarter of 2010 was US$1.84 billion, and total net debt to shareholders’ equity as of December 31, 2010 was 49%.
Capital expenditures for the fourth quarter of 2010 were US$34.2 million, primarily attributable to various projects at City of Dreams and Altira Macau.
Full Year 2010 Results
For the twelve months ending December 31, 2010, Melco Crown Entertainment reported net revenue of US$2.6 billion versus US$1.3 billion in the twelve months ending December 31, 2009. Adjusted EBITDA for the twelve months of 2010 was US$430.4 million, as compared with Adjusted EBITDA of US$55.8 million in the twelve months of 2009.
The year-over-year improvement in net revenue and Adjusted EBITDA were primarily attributable to significantly improved operating results at both City of Dreams and Altira Macau, as well as from the opening of City of Dreams in June of 2009 and its contribution to results for the entire twelve months of 2010.
Melco Crown Entertainment reported a net loss of US$10.5 million for the twelve months of 2010 compared to a net loss of US$308.5 million for the twelve months of 2009. The net loss per ADS for the twelve month period ending December 31, 2010 was US$0.02 compared to a net loss per ADS of US$0.63 for the same period in 2009.
