Mohegan Gaming & Entertainment Announces Third Quarter Fiscal 2017 Operating Results

7 years ago
by forimmediaterelease.net -

“We were pleased with our third quarter results which continue to reflect strong underlying operating fundamentals, particularly in Connecticut where revenues and EBITDA growth continue to outpace the region,” said Mitchell Grossinger Etess, Chief Executive Officer of Mohegan Gaming & Entertainment. “During the quarter, the company continued to diversify its earnings base with the successful opening of ilani Casino Resort in Washington State. Additionally, construction of the Mohegan Sun Exposition and Convention Center commenced late last quarter and is on budget and on schedule to open next summer. Staying in Connecticut, work has started on our joint venture development in East Windsor which was recently signed into law by the Governor. Looking internationally, the company is well into the planning stage of its Korean joint venture, Project Inspire, where we anticipate breaking ground before the end of calendar 2017.”

Consolidated operating results for the third quarter ended June 30, 2017 (unaudited):

  • Net revenues of $350.2 million, an 8.3% increase over the third quarter of fiscal 2016
  • Gaming revenues of $294.0 million, a 6.2% increase over the third quarter of fiscal 2016
  • Gross slot revenues of $205.5 million, relatively flat compared to the third quarter of fiscal 2016
  • Table game revenues of $88.2 million, a 22.5% increase over the third quarter of fiscal 2016
  • Non-gaming revenues of $82.6 million, a 14.5% increase over the third quarter of fiscal 2016
  • Income from operations of $70.0 million, a 20.6% increase over the third quarter of fiscal 2016
  • Net income attributable to MGE of $43.8 million, a 68.1% increase over the third quarter of fiscal 2016
  • Adjusted EBITDA, a non-GAAP measure described below, of $89.3 million, a 16.5% increase over the third quarter of fiscal 2016

The growth in Adjusted EBITDA, income from operations and net income attributable to MGE compared to the third quarter of fiscal 2016 was principally driven by strong gaming and non-gaming results at Mohegan Sun. Net income attributable to MGE also reflects lower interest expense.

Mohegan Sun

Operating results (in thousands, unaudited):

For the Three Months Ended  

June 30,

June 30,

Percentage

2017

2016

Variance

 Variance

Adjusted EBITDA

$                 78,809

$           65,648

$        13,161

20.0%

Income from operations

$                 62,630

$           50,520

$        12,110

24.0%

Operating costs and expenses

$               208,948

$         193,603

$        15,345

7.9%

Net revenues

$               271,578

$         244,123

$        27,455

11.2%

Gaming revenues

$               228,170

$         206,707

$        21,463

10.4%

Non-gaming revenues

$                 65,305

$           57,404

$          7,901

13.8%

The increases in Adjusted EBITDA and income from operations were driven by strong gaming and non-gaming results. The growth in gaming revenues reflected a significant year-over-year increase in table game revenues, combined with higher slot revenues. Table game revenues benefited from improved hold percentage and higher volumes. The growth in non-gaming revenues reflected strong overall business activity driven, in part, by the additional hotel room capacity added by our new 400-room Earth Hotel which opened on November 10, 2016. These results were partially offset by higher payroll costs. Adjusted EBITDA margin increased 210 basis points to 29.0% for the quarter ended June 30, 2017 from 26.9% in the third quarter of fiscal 2016.

Selected gaming data (in thousands, except where noted, unaudited):

For the Three Months Ended  

June 30,

June 30,

Percentage

2017

2016

Variance

 Variance

Slots:

  Handle

$            1,868,130

$        1,813,310

$          54,820

3.0%

  Gross revenues 

$               152,813

$           147,929

$            4,884

3.3%

  Net revenues 

$               146,135

$           142,009

$            4,126

2.9%

  Free promotional slot plays (1)

$                 15,710

$             14,634

$            1,076

7.4%

  Weighted average number of machines (in units)

4,946

5,111

(165)

(3.2%)

  Hold percentage (gross)

8.2%

8.2%

–

–

  Win per unit per day (gross) (in dollars)

$                      340

$                  318

$                 22

6.9%

Table games:

  Drop

$               485,434

$           458,731

$          26,703

5.8%

  Revenues

$                 78,967

$             61,683

$          17,284

28.0%

  Weighted average number of games (in units)

275

273

2

0.7%

  Hold percentage (2)

16.3%

13.4%

2.9%

21.6%

  Win per unit per day (in dollars)

$                   3,155

$               2,478

$               677

27.3%

Poker:

  Revenues 

$                   2,114

$               2,032

$                 82

4.0%

  Weighted average number of tables (in units)

42

42

–

–

  Revenue per unit per day (in dollars)

$                      553

$                  532

$                 21

3.9%

(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.

(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.

Non-gaming data (in thousands, except where noted, unaudited): 

For the Three Months Ended  

June 30,

June 30,

Percentage

2017

2016

Variance

 Variance

Food and beverage:

  Revenues

$                 16,781

$           15,906

$             875

5.5%

  Meals served

762

726

36

5.0%

  Average price per meal served (in dollars)

$                   15.58

$             15.62

$          (0.04)

(0.3%)

Hotel (1):

  Revenues

$                 15,601

$           12,654

$          2,947

23.3%

  Rooms occupied

137

105

32

30.5%

  Occupancy rate

96.5%

98.9%

(2.4%)

(2.4%)

  Average daily room rate (in dollars)

$                      111

$                113

$               (2)

(1.8%)

  Revenue per available room (in dollars)

$                      107

$                112

$               (5)

(4.5%)

Retail, entertainment and other:

  Revenues

$                 32,923

$           28,844

$          4,079

14.1%

  Arena events (in events)

32

35

(3)

(8.6%)

  Arena tickets 

200

186

14

7.5%

  Average price per Arena ticket (in dollars)

$                   65.63

$             58.49

$            7.14

12.2%

(1) The new 400-room Earth Hotel opened on November 10, 2016.

Mohegan Sun Pocono

Operating results (in thousands, unaudited): 

For the Three Months Ended  

June 30,

June 30,

Percentage

2017 (1)

2016

Variance

 Variance

Adjusted EBITDA 

$                 15,411

$           14,076

$          1,335

9.5%

Income from operations

$                 12,276

$           11,172

$          1,104

9.9%

Operating costs and expenses

$                 58,755

$           65,278

$        (6,523)

(10.0%)

Net revenues

$                 71,031

$           76,450

$        (5,419)

(7.1%)

Gaming revenues

$                 65,785

$           70,100

$        (4,315)

(6.2%)

Non-gaming revenues

$                   9,689

$           11,817

$        (2,128)

(18.0%)

(1) Includes the operations of Downs Lodging, LLC, which was merged out of existence into Mohegan Sun Pocono.

Adjusted EBITDA and income from operations increased despite the decline in net revenues due to our continued efforts to contain operating costs and expenses such as payroll costs and certain casino marketing and promotional expenses. The declines in gaming and non-gaming revenues were driven by lower overall business volumes. Adjusted EBITDA margin increased 330 basis points to 21.7% for the quarter ended June 30, 2017 from 18.4% in the third quarter of fiscal 2016.

Selected gaming data (in thousands, except where noted, unaudited):

For the Three Months Ended  

June 30,

June 30,

Percentage

2017

2016

Variance

 Variance

Slots:

  Handle

$               667,264

$            690,911

$      (23,647)

(3.4%)

  Gross revenues

$                 52,669

$              55,878

$        (3,209)

(5.7%)

  Net revenues

$                 52,762

$              55,814

$        (3,052)

(5.5%)

  Free promotional slot plays (1)

$                 13,140

$              11,846

$          1,294

10.9%

  Weighted average number of machines (in units)

2,326

2,331

(5)

(0.2%)

  Hold percentage (gross)

7.9%

8.1%

(0.2%)

(2.5%)

  Win per unit per day (gross) (in dollars)

$                      249

$                   263

$             (14)

(5.3%)

Table games:

  Drop

$                 53,026

$              53,741

$           (715)

(1.3%)

  Revenues

$                   9,274

$              10,367

$        (1,093)

(10.5%)

  Weighted average number of games (in units)

73

73

–

–

  Hold percentage (2)

17.5%

19.3%

(1.8%)

(9.3%)

  Win per unit per day (in dollars)

$                   1,396

$                1,563

$           (167)

(10.7%)

Poker:

  Revenues 

$                      737

$                   761

$             (24)

(3.2%)

  Weighted average number of tables (in units)

18

18

–

–

  Revenue per unit per day (in dollars)

$                      450

$                   464

$             (14)

(3.0%)

(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.

(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.

Non-gaming revenues (in thousands, except where noted, unaudited):

For the Three Months Ended  

June 30,

June 30,

Percentage

2017

2016

Variance

 Variance

Food and beverage:

  Revenues

$                   6,228

$             7,702

$        (1,474)

(19.1%)

  Meals served

118

183

(65)

(35.5%)

  Average price per meal served (in dollars)

$                   20.40

$             19.14

$            1.26

6.6%

Hotel:

  Revenues

$                   1,295

$             1,568

$           (273)

(17.4%)

  Rooms occupied

20

21

(1)

(4.8%)

  Occupancy rate

92.9%

96.6%

(3.7%)

(3.8%)

  Average daily room rate (in dollars)

$                        62

$                  69

$               (7)

(10.1%)

  Revenue per available room (in dollars)

$                        57

$                  67

$             (10)

(14.9%)

Retail, entertainment and other:   

  Revenues

$                   2,166

$             2,547

$           (381)

(15.0%)

Corporate

Operating results (in thousands, unaudited):

For the Three Months Ended  

June 30,

June 30,

Percentage

2017 (1)

2016

Variance

 Variance

Adjusted EBITDA 

$                 (4,902)

$           (3,065)

$        (1,837)

(59.9%)

Loss from operations

$                 (4,942)

$           (3,695)

$        (1,247)

(33.7%)

Operating costs and expenses

$                 12,548

$             7,822

$          4,726

60.4%

Net revenues

$                   7,606

$             4,127

$          3,479

84.3%

(1) Excludes the operations of Downs Lodging, LLC, which was merged out of existence into Mohegan Sun Pocono.

Adjusted EBITDA and loss from operations for the quarter ended June 30, 2017 reflect increased development costs associated with our various diversification initiatives. These results were partially offset by higher net revenues driven by development and management fees earned in connection with our development and management arrangements with ilani Casino Resort which opened on April 24, 2017.

MGE Property Information

Net Revenues

Income (Loss) from Operations

Adjusted EBITDA

(in thousands, unaudited)

      For the Three Months Ended

For the Three Months Ended

For the Three Months Ended

June 30,

June 30,

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

2017

2016

Mohegan Sun

$         271,578

$        244,123

$           62,630

$           50,520

$           78,809

$           65,648

Mohegan Sun Pocono

71,031

76,450

12,276

11,172

15,411

14,076

Corporate

7,606

4,127

(4,942)

(3,695)

(4,902)

(3,065)

Inter-segment revenues

(60)

(1,273)

–

–

–

–

Total

$         350,155

$        323,427

$           69,964

$           57,997

$           89,318

$           76,659

Net Revenues

Income (Loss) from Operations

Adjusted EBITDA

      For the Nine Months Ended

      For the Nine Months Ended

      For the Nine Months Ended

June 30,

June 30,

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

2017

2016

Mohegan Sun 

$         795,775

$        755,392

$         178,464

$         171,251

$         225,971

$         218,581

Mohegan Sun Pocono

207,752

223,160

29,877

30,910

39,027

39,818

Corporate

14,624

13,669

(29,533)

(13,830)

(21,331)

(9,836)

Inter-segment revenues

(180)

(3,819)

–

–

–

–

Total

$      1,017,971

$        988,402

$         178,808

$         188,331

$         243,667

$         248,563

Other Information

Liquidity 
As of June 30, 2017, MGE held cash and cash equivalents of $­87.4 million compared to $83.7 million as of September 30, 2016. As of June 30, 2017, $13.0 million was drawn on MGE’s $170.0 million revolving credit facility, while no amounts were drawn on MGE’s $25.0 million line of credit. As of June 30, 2017, letters of credit issued under the revolving credit facility totaled $48.4 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the revolving credit facility, MGE had approximately $108.6 million of borrowing capacity under its revolving credit facility and line of credit as of June 30, 2017.

Interest Expense
Interest expense decreased by $6.2 million, or 18.4%, to $27.7 million for the quarter ended June 30, 2017 compared to $33.9 million in the third quarter of fiscal 2016. The reduction in interest expense was attributable to lower weighted average interest rate driven by MGE’s October 2016 refinancing and April 2017 repricing transactions. Weighted average interest rate was 6.4% for the quarter ended June 30, 2017 compared to 7.8% in the third quarter of fiscal 2016. Weighted average outstanding debt was $1.74 billion for each of the quarters ended June 30, 2017 and 2016.

Capital Expenditures
The following table presents data related to capital expenditures (in millions):

Capital Expenditures

Nine Months Ended

Remaining Forecasted

Forecasted

June 30, 2017

Fiscal Year 2017 (1)

Fiscal Year 2017 

Mohegan Sun:

    Maintenance

$                           26.4

$                                 8.6

$                            35.0

    Development

0.6

0.3

0.9

    Expansion – Mohegan Sun Exposition Center

11.9

7.3

19.2

           Subtotal

38.9

16.2

55.1

Mohegan Sun Pocono:

    Maintenance

5.1

2.2

7.3

    Development

0.1

0.6

0.7

           Subtotal

5.2

2.8

8.0

Corporate:

    Maintenance

0.1

0.1

0.2

    Development

–

0.7

0.7

    Other – Project Inspire

14.6

–

14.6

           Subtotal

14.7

0.8

15.5

           Total

$                           58.8

$                               19.8

$                            78.6

(1) Excludes forecasted capital expenditures for Project Inspire.

Distributions to the Mohegan Tribe
Distributions to the Mohegan Tribe totaled $15.0 million for the quarter ended June 30, 2017 compared to $13.3 million in the third quarter of fiscal 2016. Distributions to the Mohegan Tribe are anticipated to total $60.0 million for fiscal 2017.

Conference Call
MGE will host a conference call and simultaneous webcast regarding its third quarter of fiscal 2017 operating results on Thursday, July 27, 2017 at 10:00 a.m. (Eastern Daylight Time).

Those interested in participating in the call should dial as follows:

­­­­­­­­­­­­­­(877) 756-4274
(706) 643-0107 (International)

Conference ID: 56760072

Please call five minutes in advance to ensure that you are connected prior to the initiation of the call. Questions and answers will be reserved for call-in analysts and investors.

Parties who want to listen to the live conference call on the Internet may do so through a web link on MGE’s website at www.mohegangaming.com, under the “Financial Information/Financial Updates” section. Interested parties also may listen to a taped replay of the entire conference call commencing two hours after the call’s completion on Thursday, July 27, 2017. This replay will run through August 10, 2017.

The access number for a taped replay of the conference call is as follows:

(855) 859-2056
(404) 537-3406 (International)

Conference ID: 56760072

A transcript will be available on MGE’s website for a period of 90 days following the conference call.

About MGE
MGE owns and operates Mohegan Sun, a gaming and entertainment complex located on an approximately 196-acre site on the Mohegan Tribe’s reservation. Through its subsidiary, Downs Racing, L.P., MGE also owns and operates Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania.

Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 5 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space, the 1,200-room luxury Sky Hotel Tower and the 400-room Earth Hotel Tower. Mohegan Sun Pocono operates in an approximately 400,000 square-foot facility, offering traditional slot machines and table games, live harness racing and simulcast and off-track wagering, a 238-room hotel, 20,000 square feet of meeting and convention space, several dining and retail options and a bus passenger lounge.

MGE has expanded its offering to several new markets across the country and internationally, including the management of Resorts Casino Hotel in Atlantic City, New Jersey, the development and management of ilani Casino Resort in Washington State and the development and management of Project Inspire, a first-of-its-kind, multi-billion dollar integrated resort and casino project to be built at Incheon International Airport in South Korea.

More information about MGE and its properties can be obtained by visiting www.mohegansun.com, www.mohegansunpocono.com or www.mohegangaming.com.

Special Note Regarding Forward-Looking Statements
Some information included in this press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect” or “intend” and similar expressions. Such forward-looking information may involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of MGE. Information concerning potential factors that could affect MGE’s financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2016, as well as in MGE’s other reports and filings with the Securities and Exchange Commission. Any forward-looking statements included in this press release are made only as of the date of this release. MGE does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. MGE cannot assure that projected results or events will be achieved or will occur.

MOHEGAN GAMING & ENTERTAINMENT

CONSOLIDATED STATEMENTS OF INCOME 

(in thousands)

(unaudited)

For the

For the

For the

For the

Three Months Ended

Three Months Ended

Nine Months Ended

Nine Months Ended

June 30, 2017

June 30, 2016

June 30, 2017

June 30, 2016

Revenues:

   Gaming

$                      293,955

$                   276,807

$                 872,766

$                 865,889

   Food and beverage

23,009

23,608

67,796

66,808

   Hotel

16,896

14,222

46,518

38,639

   Retail, entertainment and other 

42,675

34,286

106,648

89,031

   Gross revenues

376,535

348,923

1,093,728

1,060,367

   Less – Promotional allowances

(26,380)

(25,496)

(75,757)

(71,965)

Net revenues

350,155

323,427

1,017,971

988,402

Operating costs and expenses:

   Gaming 

165,072

164,302

494,654

495,060

   Food and beverage 

10,654

10,674

31,224

30,807

   Hotel

7,686

4,229

20,860

11,731

   Retail, entertainment and other

15,457

12,872

42,426

30,691

   Advertising, general and administrative

49,760

47,649

150,349

148,871

   Corporate 

12,455

7,520

43,903

26,601

   Depreciation and amortization

19,055

18,172

55,357

55,969

   (Gain) loss on disposition of assets

(16)

12

(107)

341

   Pre-opening

68

–

497

–

Total operating costs and expenses

280,191

265,430

839,163

800,071

Income from operations

69,964

57,997

178,808

188,331

Other income (expense):

   Interest income

2,784

2,284

8,362

6,469

   Interest expense

(27,690)

(33,949)

(86,319)

(102,294)

   Loss on modification and early extinguishment of debt

(1,094)

(277)

(74,890)

(484)

   Loss from unconsolidated affiliates

(288)

(494)

(3,133)

(1,338)

   Other income (expense), net

–

(1)

3

(17)

Total other expense

(26,288)

(32,437)

(155,977)

(97,664)

Net income 

43,676

25,560

22,831

90,667

(Income) loss attributable to non-controlling interests

104

478

797

(2,225)

Net income attributable to Mohegan Gaming & Entertainment

$                        43,780

$                     26,038

$                   23,628

$                   88,442

MOHEGAN GAMING & ENTERTAINMENT

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)

For the Three Months Ended

For the Nine Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Operating Results:

   Gross revenues

$           376,535

$           348,923

$         1,093,728

$          1,060,367

   Net revenues

$           350,155

$           323,427

$         1,017,971

$             988,402

   Income from operations

$             69,964

$             57,997

$            178,808

$             188,331

Other Data:

   Adjusted EBITDA

$             89,318

$             76,659

$            243,667

$             248,563

   Capital expenditures

$             29,467

$               7,556

$              58,792

$               27,695

   Cash interest paid

$             35,581

$             14,518

$              77,801

$               84,588

   Distributions to the Tribe

$             15,000

$             13,250

$              39,000

$               34,450

June 30,

September 30,

Balance Sheet Data:

2017

2016

   Cash and cash equivalents

$              87,395

$               83,743

   Capital leases

$                        –

$                 1,521

   Long-term debt, including current portion

$         1,673,416

$          1,685,167

MOHEGAN SUN

SUPPLEMENTAL DATA 

(unaudited)

For the Three Months Ended

For the Nine Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Operating results:

   Gross revenues (in thousands)

$           293,475

$           264,111

$            857,118

$             810,994

   Net revenues (in thousands)

$           271,578

$           244,123

$            795,775

$             755,392

   Income from operations (in thousands)

$             62,630

$             50,520

$            178,464

$             171,251

   Operating margin

23.1%

20.7%

22.4%

22.7%

Adjusted EBITDA:

   Adjusted EBITDA (in thousands)

$             78,809

$             65,648

$            225,971

$             218,581

   Adjusted EBITDA margin

29.0%

26.9%

28.4%

28.9%

Capital expenditures (in thousands)

$             19,048

$               5,678

$              38,891

$               23,666

Weighted average number of units:

   Slot machines

4,946

5,111

5,017

5,133

   Table games

275

273

274

271

   Poker tables

42

42

42

42

Win per unit per day:

   Slot machines (gross)

$                  340

$                  318

$                   327

$                    312

   Table games

$               3,155

$               2,478

$                3,218

$                 3,061

   Poker tables

$                  553

$                  532

$                   579

$                    618

Hold percentage:

   Slot machines (gross)

8.2%

8.2%

8.2%

8.1%

   Table games

16.3%

13.4%

16.4%

16.5%

Food and beverage statistics:

   Meals served (in thousands)

762

726

2,185

2,008

   Average price per meal served 

$               15.58

$               15.62

$                15.80

$                 16.13

Hotel statistics:

   Rooms occupied (in thousands)

137

105

394

317

   Occupancy rate

96.5%

98.9%

96.5%

98.6%

   Average daily room rate

$                  111

$                  113

$                   105

$                    101

   Revenue per available room

$                  107

$                  112

$                   101

$                    100

Entertainment statistics:

   Arena events (in events)

32

35

92

85

   Arena tickets (in thousands)

200

186

593

472

   Average price per Arena ticket

$               65.63

$               58.49

$                54.87

$                 49.68

MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)

For the Three Months Ended

For the Nine Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Operating results:

   Gross revenues (in thousands)

$              75,474

$            81,917

$          222,047

$          239,437

   Net revenues (in thousands)

$              71,031

$            76,450

$          207,752

$          223,160

   Income from operations (in thousands)

$              12,276

$            11,172

$            29,877

$            30,910

   Operating margin

17.3%

14.6%

14.4%

13.9%

Adjusted EBITDA:

   Adjusted EBITDA (in thousands)

$              15,411

$            14,076

$            39,027

$            39,818

   Adjusted EBITDA margin

21.7%

18.4%

18.8%

17.8%

Capital expenditures (in thousands)

$                2,287

$              1,866

$              5,162

$              3,914

Weighted average number of units:

   Slot machines

2,326

2,331

2,269

2,330

   Table games

73

73

73

73

   Poker tables

18

18

18

18

Win per unit per day:

   Slot machines (gross)

$                   249

$                 263

$                 248

$                 260

   Table games

$                1,396

$              1,563

$              1,504

$              1,565

   Poker tables

$                   450

$                 464

$                 421

$                 473

Hold percentage:

   Slot machines (gross)

7.9%

8.1%

8.0%

8.1%

   Table games

17.5%

19.3%

19.7%

19.1%

Food and beverage statistics:

   Meals served (in thousands)

118

183

383

499

   Average price per meal served 

$                20.40

$              19.14

$              21.51

$              19.60

Hotel statistics:

   Rooms occupied (in thousands)

20

21

59

62

   Occupancy rate

92.9%

96.6%

92.1%

96.1%

   Average daily room rate

$                     62

$                   69

$                   60

$                   64

   Revenue per available room

$                     57

$                   67

$                   56

$                   61

CORPORATE

SUPPLEMENTAL DATA 

(unaudited)

For the Three Months Ended

For the Nine Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Operating results:

   Gross revenues (in thousands)

$                7,646

$              4,168

$            14,743

$             13,755

   Net revenues (in thousands)

$                7,606

$              4,127

$            14,624

$             13,669

   Income (loss) from operations (in thousands)

$               (4,942)

$            (3,695)

$          (29,533)

$           (13,830)

Adjusted EBITDA (in thousands)

$              (4,902)

$            (3,065)

$          (21,331)

$             (9,836)

Capital expenditures (in thousands)

$                8,132

$                   12

$            14,739

$                 115

MOHEGAN GAMING & ENTERTAINMENT

ADJUSTED EBITDA RECONCILIATIONS

(unaudited)

Reconciliations of Net Income to Adjusted EBITDA:

Reconciliations of net income, a financial measure determined in accordance with accounting principles generally 

accepted in the United States of America, or GAAP, to Adjusted EBITDA are shown below (in thousands): 

For the Three Months Ended

For the Nine Months Ended

June 30,

June 30,

June 30,

June 30,

2017

2016

2017

2016

Net income 

$              43,676

$            25,560

$            22,831

$            90,667

Other (income) expense, net

–

1

(3)

17

Loss from unconsolidated affiliates

288

494

3,133

1,338

Loss on modification and early extinguishment of debt

1,094

277

74,890

484

Interest expense

27,690

33,949

86,319

102,294

Interest income

(2,784)

(2,284)

(8,362)

(6,469)

Income from operations

69,964

57,997

178,808

188,331

Adjusted EBITDA attributable to non-controlling interests

247

478

1,543

(2,225)

Pre-opening

68

–

497

–

(Gain) loss on disposition of assets

(16)

12

(107)

341

Share-based compensation

–

–

7,569

6,147

Depreciation and amortization

19,055

18,172

55,357

55,969

Adjusted EBITDA

$              89,318

$            76,659

$          243,667

$          248,563

Reconciliations of Income (Loss) from Operations to Adjusted EBITDA (unaudited):

Reconciliations of income (loss) from operations, a financial measure determined in accordance with GAAP, to Adjusted EBITDA, are shown below (in thousands):

For the Three Months Ended June 30, 2017

Adjusted EBITDA 

Income (Loss)

Depreciation

(Gain) Loss 

Attributable to 

from

and 

Share-based

on Disposition of

Non-controlling

Adjusted 

Operations

Amortization

Compensation

Assets

Pre-Opening

Interests

EBITDA

Mohegan Sun 

$           62,630

$            15,883

$                   –

$                (12)

$                    68

$                            240

$          78,809

Mohegan Sun Pocono 

12,276

3,139

–

(4)

–

–

15,411

Corporate

(4,942)

33

–

–

–

7

(4,902)

Total

$           69,964

$            19,055

$                   –

$                (16)

$                    68

$                            247

$          89,318

For the Three Months Ended June 30, 2016

Adjusted EBITDA 

Income (Loss)

Depreciation

(Gain) Loss 

Attributable to 

from

and 

Share-based

on Disposition of

Non-controlling

Adjusted 

Operations

Amortization

Compensation

Assets

Pre-Opening

Interests

EBITDA

Mohegan Sun 

$           50,520

$            15,001

$                   –

$                    9

$                     –

$                            118

$          65,648

Mohegan Sun Pocono

11,172

2,901

–

3

–

–

14,076

Corporate

(3,695)

270

–

–

–

360

(3,065)

Total

$           57,997

$            18,172

$                   –

$                  12

$                     –

$                            478

$          76,659

For the Nine Months Ended June 30, 2017

Adjusted EBITDA 

Income (Loss)

Depreciation

(Gain) Loss 

Attributable to 

from

and 

Share-based

on Disposition of

Non-controlling

Adjusted 

Operations

Amortization

Compensation

Assets

Pre-Opening

Interests

EBITDA

Mohegan Sun 

$         178,464

$            46,129

$                   –

$              (103)

$                  497

$                            984

$        225,971

Mohegan Sun Pocono

29,877

9,154

–

(4)

–

–

39,027

Corporate

(29,533)

74

7,569

–

–

559

(21,331)

Total

$         178,808

$            55,357

$             7,569

$              (107)

$                  497

$                         1,543

$        243,667

For the Nine Months Ended June 30, 2016

Adjusted EBITDA 

Income (Loss)

Depreciation

(Gain) Loss 

Attributable to 

from

and 

Share-based

on Disposition of

Non-controlling

Adjusted 

Operations

Amortization

Compensation

Assets

Pre-Opening

Interests

EBITDA

Mohegan Sun 

$         171,251

$            46,272

$                   –

$                327

$                     –

$                            731

$        218,581

Mohegan Sun Pocono

30,910

8,894

–

14

–

–

39,818

Corporate

(13,830)

803

6,147

–

–

(2,956)

(9,836)

Total

$         188,331

$            55,969

$             6,147

$                341

$                     –

$                       (2,225)

$        248,563

Adjusted EBITDA Explanation:
Net income before interest, income taxes, depreciation and amortization, or EBITDA, is a commonly used measure of performance in the casino and hospitality industry. EBITDA is not a measure of performance calculated in accordance with GAAP. MGE historically has evaluated its operating performance with the non-GAAP measure, Adjusted EBITDA, which as used in this press release, represents net income before interest, depreciation and amortization, share-based compensation expense, gain or loss on disposition of assets, pre-opening costs and expenses, loss on modification and early extinguishment of debt, loss from unconsolidated affiliates, other non-operating income and expense and Adjusted EBITDA attributable to non-controlling interests.

Adjusted EBITDA provides an additional way to evaluate MGE’s operations and, when viewed with both MGE’s GAAP results and the reconciliations provided, MGE believes that it provides a more complete understanding of its business than could be otherwise obtained absent this disclosure. Adjusted EBITDA is presented solely as a supplemental disclosure because: (1) MGE believes it enhances an overall understanding of MGE’s past and current financial performance; (2) MGE believes it is a useful tool for investors to assess the operating performance of the business in comparison to other operators within the casino and hospitality industry since Adjusted EBITDA excludes certain items that may not be indicative of MGE’s operating results; (3) measures that are comparable to Adjusted EBITDA are often used as an important basis for the valuation of casino and hospitality companies; and (4) MGE uses Adjusted EBITDA internally to evaluate the performance of its operating personnel and management and as a benchmark to evaluate its operating performance in comparison to its competitors.

The use of Adjusted EBITDA has certain limitations. Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, any GAAP financial measure including net income (as an indicator of MGE’s performance) or cash flows provided by operating activities (as an indicator of MGE’s liquidity), nor should it be considered as an indicator of MGE’s overall financial performance. MGE’s calculation of Adjusted EBITDA is likely to be different from the calculation of Adjusted EBITDA or other similarly titled measurements used by other casino and hospitality companies, and therefore, comparability may be limited. Adjusted EBITDA eliminates certain items from net income, such as interest and depreciation and amortization. Each of these items has been incurred in the past, will continue to be incurred in the future and should be considered in the overall evaluation of MGE’s results. MGE compensates for these limitations by providing relevant disclosures of items excluded in the calculation of Adjusted EBITDA, both in its reconciliations to the GAAP financial measure of net income and in its consolidated financial statements, all of which should be considered when evaluating its results. MGE strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

Contact:
Mario C. Kontomerkos
Chief Financial Officer
Mohegan Gaming & Entertainment
(860) 862-8000

View original content:http://www.prnewswire.com/news-releases/mohegan-gaming–entertainment-announces-third-quarter-fiscal-2017-operating-results-300494914.html

SOURCE Mohegan Gaming & Entertainment

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http://www.mohegangaming.com

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