Le Lézard
Classified in: Tourism and vacations, Business
Subjects: ERN, CCA

Mohegan Gaming & Entertainment Announces Fourth Quarter Fiscal 2017 Operating Results


UNCASVILLE, Conn., Nov. 21, 2017 /PRNewswire/ -- Mohegan Gaming & Entertainment, or MGE, the owner and operator of Mohegan Sun in Uncasville, Connecticut, and Mohegan Sun Pocono in Wilkes-Barre, Pennsylvania, announced today the operating results for its fourth fiscal quarter ended September 30, 2017.

"The MGE team delivered another strong September quarter and full fiscal year performance, led again by our flagship Connecticut property," said Mario Kontomerkos, Chief Executive Officer of MGE. "Solid gaming volumes at Mohegan Sun were complemented by very strong, across-the-board non-gaming revenue growth, a trend we expect to persist with the introduction of the new Mohegan Sun Exposition and Convention Center, slated to open in the summer of 2018. The addition of the exposition and convention center, along with other ongoing initiatives, will continue to position Mohegan Sun as the premier gaming and entertainment destination in the Northeast for years to come."   

Consolidated operating results for the fourth quarter ended September 30, 2017 (unaudited):

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

Mohegan Sun

Operating results (in thousands, unaudited):


For the Three Months Ended  

September 30,

September 30,


Percentage

2017

2016

Variance

 Variance






Adjusted EBITDA

$                 87,306

$           83,600

$          3,706

4.4%

Income from operations

$                 70,939

$           66,354

$          4,585

6.9%

Operating costs and expenses

$               213,206

$         200,330

$        12,876

6.4%

Net revenues

$               284,145

$         266,684

$        17,461

6.5%

Gaming revenues

$               240,775

$         231,854

$          8,921

3.8%

Non-gaming revenues

$                 68,290

$           54,016

$        14,274

26.4%














The growth in Adjusted EBITDA and income from operations was principally driven by higher gaming and non-gaming revenues. Gaming revenues were boosted by strong slot and table game volumes, while non-gaming revenues benefited from the additional hotel room capacity added by our new 400-room Earth Hotel Tower, which opened in November 2016, and a strong entertainment calendar at the Mohegan Sun Arena. These results were partially offset by higher entertainment and payroll related costs. Adjusted EBITDA margin was 30.7% for the quarter ended September 30, 2017 compared to 31.3% in the fourth quarter of fiscal 2016.

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

For the Three Months Ended  

September 30,

September 30,


Percentage

2017

2016

Variance

 Variance






Slots:






  Handle

$            1,957,605

$        1,874,628

$          82,977

4.4%

  Gross revenues 

$               161,497

$           153,874

$            7,623

5.0%

  Net revenues 

$               154,548

$           147,794

$            6,754

4.6%

  Free promotional slot plays (1)

$                 16,681

$             15,553

$            1,128

7.3%

  Weighted average number of machines (in units)

4,924

5,095

(171)

(3.4%)

  Hold percentage (gross)

8.2%

8.2%

-

-

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

$                      357

$                  328

$                 29

8.8%






Table games:






  Drop

$               512,067

$           497,499

$          14,568

2.9%

  Revenues

$                 83,292

$             80,956

$            2,336

2.9%

  Weighted average number of games (in units)

278

278

-

-

  Hold percentage (2)

16.3%

16.3%

-

-

  Win per unit per day (in dollars)

$                   3,257

$               3,166

$                 91

2.9%






Poker:






  Revenues 

$                   2,176

$               2,192

$               (16)

(0.7%)

  Weighted average number of tables (in units)

42

42

-

-

  Revenue per unit per day (in dollars)

$                      563

$                  567

$                 (4)

(0.7%)

___________________________________________






(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  

September 30,

September 30,


Percentage

2017

2016

Variance

 Variance






Food and beverage:






  Revenues

$                 16,699

$           14,735

$          1,964

13.3%

  Meals served

846

676

170

25.1%

  Average price per meal served (in dollars)

$                   14.45

$             16.23

$          (1.78)

(11.0%)






Hotel (1):






  Revenues

$                 15,630

$           12,257

$          3,373

27.5%

  Rooms occupied

138

106

32

30.2%

  Occupancy rate

95.9%

97.8%

(1.9%)

(1.9%)

  Average daily room rate (in dollars)

$                      108

$                109

$               (1)

(0.9%)

  Revenue per available room (in dollars)

$                      104

$                107

$               (3)

(2.8%)






Retail, entertainment and other:






  Revenues

$                 35,961

$           27,024

$          8,937

33.1%

  Arena events (in events)

37

33

4

12.1%

  Arena tickets 

242

195

47

24.1%

  Average price per Arena ticket (in dollars)

$                   63.96

$             44.10

$          19.86

45.0%

___________________________________________






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





 

Mohegan Sun Pocono

Operating results (in thousands, unaudited):

For the Three Months Ended  

September 30,

September 30,


Percentage

2017 (1)

2016

Variance

 Variance






Adjusted EBITDA 

$                 14,614

$           13,463

$          1,151

8.5%

Income from operations

$                   6,491

$           10,535

$        (4,044)

(38.4%)

Operating costs and expenses

$                 64,695

$           64,982

$           (287)

(0.4%)

Net revenues

$                 71,186

$           75,517

$        (4,331)

(5.7%)

Gaming revenues

$                 66,324

$           69,143

$        (2,819)

(4.1%)

Non-gaming revenues

$                   9,493

$           11,784

$        (2,291)

(19.4%)

___________________________________________






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

The growth in Adjusted EBITDA was principally 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 reflected lower overall business volumes driven, in part, by a repositioning of our promotional offers. Adjusted EBITDA margin increased 270 basis points to 20.5% for the quarter ended September 30, 2017 from 17.8% in the fourth quarter of fiscal 2016.

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

For the Three Months Ended  

September 30,

September 30,


Percentage

2017

2016

Variance

 Variance






Slots:






  Handle

$               653,806

$            679,208

$      (25,402)

(3.7%)

  Gross revenues

$                 52,166

$              55,184

$        (3,018)

(5.5%)

  Net revenues

$                 52,053

$              55,058

$        (3,005)

(5.5%)

  Free promotional slot plays (1)

$                 12,527

$              11,485

$          1,042

9.1%

  Weighted average number of machines (in units)

2,330

2,297

33

1.4%

  Hold percentage (gross)

8.0%

8.1%

(0.1%)

(1.2%)

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

$                      243

$                   260

$             (17)

(6.5%)






Table games:






  Drop

$                 54,687

$              54,729

$             (42)

(0.1%)

  Revenues

$                 11,057

$              10,777

$             280

2.6%

  Weighted average number of games (in units)

73

73

-

-

  Hold percentage (2)

20.2%

19.7%

0.5%

2.5%

  Win per unit per day (in dollars)

$                   1,646

$                1,605

$               41

2.6%






Poker:






  Revenues 

$                      578

$                   661

$             (83)

(12.6%)

  Weighted average number of tables (in units)

18

18

-

-

  Revenue per unit per day (in dollars)

$                      349

$                   400

$             (51)

(12.8%)

___________________________________________






(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  

September 30,

September 30,


Percentage

2017

2016

Variance

 Variance






Food and beverage:






  Revenues

$                   5,815

$             7,380

$        (1,565)

(21.2%)

  Meals served

99

165

(66)

(40.0%)

  Average price per meal served (in dollars)

$                   20.83

$             19.85

$            0.98

4.9%






Hotel:






  Revenues

$                   1,370

$             1,665

$           (295)

(17.7%)

  Rooms occupied

20

21

(1)

(4.8%)

  Occupancy rate

90.8%

96.8%

(6.0%)

(6.2%)

  Average daily room rate (in dollars)

$                        64

$                  73

$               (9)

(12.3%)

  Revenue per available room (in dollars)

$                        58

$                  71

$             (13)

(18.3%)






Retail, entertainment and other:   






  Revenues

$                   2,308

$             2,739

$           (431)

(15.7%)

 

Corporate

Operating results (in thousands, unaudited):

For the Three Months Ended  

September 30,

September 30,


Percentage

2017 (1)

2016

Variance

 Variance






Adjusted EBITDA 

$                   3,312

$           (2,226)

$          5,538

N.M.

Income (loss) from operations

$                   4,220

$           (4,077)

$          8,297

N.M.

Operating costs and expenses

$                   2,541

$             9,541

$        (7,000)

(73.4%)

Net revenues

$                   6,761

$             5,464

$          1,297

23.7%

___________________________________________






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

      N.M. - Not Meaningful.






 

The growth in Adjusted EBITDA and income from operations was primarily driven by a reduction in the reserve against reimbursable costs and expenses advanced by us to ilani Casino Resort. The increase in net revenues reflected management fees earned in connection with our management contract with ilani Casino Resort, which opened in April 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

September 30,

September 30,

September 30,

September 30,

September 30,

September 30,

2017

2016

2017

2016

2017

2016

Mohegan Sun

$         284,145

$        266,684

$           70,939

$           66,354

$           87,306

$           83,600

Mohegan Sun Pocono

71,186

75,517

6,491

10,535

14,614

13,463

Corporate

6,761

5,464

4,220

(4,077)

3,312

(2,226)

Inter-segment revenues

(60)

(1,273)

-

-

-

-

Total

$         362,032

$        346,392

$           81,650

$           72,812

$         105,232

$           94,837





























Net Revenues

Income (Loss) from Operations

Adjusted EBITDA

      For the Fiscal Year Ended

      For the Fiscal Year Ended

      For the Fiscal Year Ended

September 30,

September 30,

September 30,

September 30,

September 30,

September 30,

2017

2016

2017

2016

2017

2016

Mohegan Sun 

$      1,079,920

$     1,022,076

$         249,403

$         237,605

$         313,277

$         302,181

Mohegan Sun Pocono

278,938

298,677

36,368

41,445

53,641

53,281

Corporate

21,385

19,133

(25,313)

(17,907)

(18,019)

(12,062)

Inter-segment revenues

(240)

(5,092)

-

-

-

-

Total

$      1,380,003

$     1,334,794

$         260,458

$         261,143

$         348,899

$         343,400












Other Information

Liquidity 
As of September 30, 2017, MGE held cash and cash equivalents of $­89.0 million compared to $83.7 million as of September 30, 2016. As of September 30, 2017, no amounts were drawn on MGE's $170.0 million revolving credit facility and $25.0 million line of credit. As of September 30, 2017, letters of credit issued under the revolving credit facility totaled $50.6 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the revolving credit facility, MGE had approximately $119.4 million of borrowing capacity under its revolving credit facility and line of credit as of September 30, 2017.

Interest Expense
Interest expense decreased by $5.9 million, or 17.4%, to $28.0 million for the quarter ended September 30, 2017 compared to $33.9 million in the fourth 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 6.6% for the quarter ended September 30, 2017 compared to 7.9% in the fourth quarter of fiscal 2016. Weighted average outstanding debt was $1.71 billion for each of the quarters ended September 30, 2017 and 2016.

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


Capital Expenditures

Fiscal Year Ended

Forecasted

September 30, 2017

Fiscal Year 2018 


Mohegan Sun:


    Maintenance

$                           35.1

$                            33.3

    Development

0.6

-

    Expansion - Mohegan Sun Exposition Center

21.3

58.3

           Subtotal

57.0

91.6

Mohegan Sun Pocono:


    Maintenance

6.7

7.9

    Development

0.2

-

           Subtotal

6.9

7.9

Corporate:


    Maintenance

0.1

0.5

   Other - Project Inspire

37.5

94.0

           Subtotal

37.6

94.5

           Total

$                         101.5

$                          194.0


Distributions to the Mohegan Tribe
Distributions to the Mohegan Tribe totaled $21.0 million for the quarter ended September 30, 2017 compared to $18.5 million in the fourth quarter of fiscal 2016. Distributions to the Mohegan Tribe are anticipated to total $60.0 million for fiscal 2018.

Conference Call
MGE will host a conference call and simultaneous webcast regarding its fourth quarter of fiscal 2017 operating results on Tuesday, November 21, 2017 at 11:00 a.m. (Eastern Standard Time).

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

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

Conference ID: 12652338

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 Tuesday, November 21, 2017. This replay will run through December 5, 2017.

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

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

Conference ID: 12652338

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 business 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 Clark County, Washington, 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

Fiscal Year Ended

Fiscal Year Ended


September 30, 2017

September 30, 2016

September 30, 2017

September 30, 2016

Revenues:








   Gaming

$                      307,099

$                   300,997

$              1,179,865

$              1,166,886

   Food and beverage

22,514

22,115

90,310

88,923

   Hotel

17,000

13,922

63,518

52,561

   Retail, entertainment and other 

45,009

33,986

151,657

123,017

   Gross revenues

391,622

371,020

1,485,350

1,431,387

   Less - Promotional allowances

(29,590)

(24,628)

(105,347)

(96,593)

Net revenues

362,032

346,392

1,380,003

1,334,794

Operating costs and expenses:








   Gaming 

172,815

166,569

667,469

661,629

   Food and beverage 

9,817

9,630

41,041

40,437

   Hotel

6,853

4,287

27,713

16,018

   Retail, entertainment and other

15,552

11,917

57,978

42,608

   Advertising, general and administrative

53,573

51,576

203,922

200,447

   Corporate 

846

9,220

44,749

35,821

   Depreciation and amortization

19,086

17,944

74,443

73,913

   (Gain) loss on disposition of assets

165

(161)

58

180

   Pre-opening

1,675

723

2,172

723

   Impairment

-

1,875

-

1,875

Total operating costs and expenses

280,382

273,580

1,119,545

1,073,651

Income from operations

81,650

72,812

260,458

261,143

Other income (expense):








   Accretion of discount to the redemption liability

(3,345)

-

(3,345)

-

   Interest income

5,370

3,091

13,732

9,560

   Interest expense, net of capitalized interest

(28,000)

(33,900)

(114,319)

(136,194)

   Gain (loss) on modification and early extinguishment of debt

2

-

(74,888)

(484)

   Income (loss) from unconsolidated affiliates

1,624

399

(1,509)

(939)

   Other income (expense), net

3

8

6

(9)

Total other expense

(24,346)

(30,402)

(180,323)

(128,066)

Net income 

57,304

42,410

80,135

133,077

(Income) loss attributable to non-controlling interests

(1,858)

1,798

(1,061)

(427)

Net income attributable to Mohegan Gaming & Entertainment

$                        55,446

$                     44,208

$                   79,074

$                 132,650










 

 

MOHEGAN GAMING & ENTERTAINMENT

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)
















For the Three Months Ended

For the Fiscal Year Ended





September 30,

September 30,

September 30,

September 30,





2017

2016

2017

2016

Operating Results:










   Gross revenues

$           391,622

$           371,020

$         1,485,350

$          1,431,387

   Net revenues

$           362,032

$           346,392

$         1,380,003

$          1,334,794

   Income from operations


$             81,650

$             72,812

$            260,458

$             261,143














Other Data:










   Adjusted EBITDA

$           105,232

$             94,837

$            348,899

$             343,400

   Capital expenditures

$             42,741

$             21,267

$            101,533

$               48,962

   Cash interest paid

$             16,015

$             48,142

$              93,816

$             132,730

   Distributions to the Tribe

$             21,000

$             18,550

$              60,000

$               53,000
















































September 30,

September 30,

Balance Sheet Data:





2017

2016

   Cash and cash equivalents




$              88,953

$               83,743

   Capital leases





$                        -

$                 1,521

   Long-term debt, including current portion




$         1,651,209

$          1,685,167













MOHEGAN SUN

SUPPLEMENTAL DATA 

(unaudited)
















For the Three Months Ended

For the Fiscal Year Ended





September 30,

September 30,

September 30,

September 30,





2017

2016

2017

2016

Operating results:










   Gross revenues (in thousands)

$           309,065

$           285,870

$         1,166,183

$          1,096,864

   Net revenues (in thousands)

$           284,145

$           266,684

$         1,079,920

$          1,022,076

   Income from operations (in thousands)

$             70,939

$             66,354

$            249,403

$             237,605

   Operating margin

25.0%

24.9%

23.1%

23.2%














Adjusted EBITDA:










   Adjusted EBITDA (in thousands)

$             87,306

$             83,600

$            313,277

$             302,181

   Adjusted EBITDA margin

30.7%

31.3%

29.0%

29.6%














Capital expenditures (in thousands)

$             18,142

$             16,255

$              57,033

$               39,921

Weighted average number of units:









   Slot machines

4,924

5,095

4,994

5,123

   Table games

278

278

275

273

   Poker tables

42

42

42

42

Win per unit per day:










   Slot machines (gross)

$                  357

$                  328

$                   335

$                    316

   Table games

$               3,257

$               3,166

$                3,228

$                 3,088

   Poker tables

$                  563

$                  567

$                   575

$                    606














Hold percentage:










   Slot machines (gross)

8.2%

8.2%

8.2%

8.1%

   Table games

16.3%

16.3%

16.3%

16.4%














Food and beverage statistics:









   Meals served (in thousands)

846

676

3,031

2,684

   Average price per meal served 

$               14.45

$               16.23

$                15.42

$                 16.16














Hotel statistics:










   Rooms occupied (in thousands)

138

106

532

423

   Occupancy rate

95.9%

97.8%

96.3%

98.4%

   Average daily room rate

$                  108

$                  109

$                   106

$                    103

   Revenue per available room

$                  104

$                  107

$                   102

$                    102














Entertainment statistics:










   Arena events (in events)

37

33

129

118

   Arena tickets (in thousands)

242

195

835

667

   Average price per Arena ticket

$               63.96

$               44.10

$                57.50

$                 48.05

 

 

MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)

















For the Three Months Ended

For the Fiscal Year Ended




September 30,

September 30,

September 30,

September 30,




2017

2016

2017

2016

Operating results:










   Gross revenues (in thousands)


$              75,817

$            80,927

$          297,864

$          320,364

   Net revenues (in thousands)


$              71,186

$            75,517

$          278,938

$          298,677

   Income from operations (in thousands)


$                6,491

$            10,535

$            36,368

$            41,445

   Operating margin


9.1%

14.0%

13.0%

13.9%












Adjusted EBITDA:










   Adjusted EBITDA (in thousands)


$              14,614

$            13,463

$            53,641

$            53,281

   Adjusted EBITDA margin


20.5%

17.8%

19.2%

17.8%












Capital expenditures (in thousands)


$                1,735

$              3,661

$              6,897

$              7,575












Weighted average number of units:










   Slot machines


2,330

2,297

2,284

2,322

   Table games


73

73

73

73

   Poker tables


18

18

18

18












Win per unit per day:










   Slot machines (gross)


$                   243

$                 260

$                 247

$                 260

   Table games


$                1,646

$              1,605

$              1,540

$              1,575

   Poker tables


$                   349

$                 400

$                 403

$                 454












Hold percentage:










   Slot machines (gross)


8.0%

8.1%

8.0%

8.1%

   Table games


20.2%

19.7%

19.8%

19.2%












Food and beverage statistics:










   Meals served (in thousands)


99

165

482

664

   Average price per meal served 


$                20.83

$              19.85

$              21.37

$              19.67












Hotel statistics:










   Rooms occupied (in thousands)


20

21

79

83

   Occupancy rate


90.8%

96.8%

91.8%

96.3%

   Average daily room rate


$                     64

$                   73

$                   61

$                   66

   Revenue per available room


$                     58

$                   71

$                   56

$                   64

CORPORATE

SUPPLEMENTAL DATA 

(unaudited)

















For the Three Months Ended

For the Fiscal Year Ended




September 30,

September 30,

September 30,

September 30,




2017

2016

2017

2016

Operating results:










   Gross revenues (in thousands)


$                6,800

$              5,496

$            21,543

$            19,251

   Net revenues (in thousands)


$                6,761

$              5,464

$            21,385

$            19,133

   Income (loss) from operations (in thousands)


$                4,220

$            (4,077)

$          (25,313)

$           (17,907)












Adjusted EBITDA (in thousands)


$                3,312

$            (2,226)

$          (18,019)

$           (12,062)












Capital expenditures (in thousands)


$              22,864

$              1,351

$            37,603

$              1,466

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 Fiscal Year Ended




September 30,

September 30,

September 30,

September 30,




2017

2016

2017

2016












Net income 


$              57,304

$            42,410

$            80,135

$          133,077

Other (income) expense, net



(3)

(8)

(6)

9

(Income) loss from unconsolidated affiliates


(1,624)

(399)

1,509

939

(Gain) loss on modification and early extinguishment of debt


(2)

-

74,888

484

Interest expense, net of capitalized interest


28,000

33,900

114,319

136,194

Interest income


(5,370)

(3,091)

(13,732)

(9,560)

Accretion of discount to the redemption liability


3,345

-

3,345

-

Income from operations


81,650

72,812

260,458

261,143

Adjusted EBITDA attributable to non-controlling interests


(2,270)

1,644

(727)

(581)

Impairment


-

1,875

-

1,875

Pre-opening


1,675

723

2,172

723

(Gain) loss on disposition of assets


165

(161)

58

180

Share-based compensation


-

-

7,569

6,147

Property charges (1)


4,926

-

4,926

-

Depreciation and amortization


19,086

17,944

74,443

73,913

Adjusted EBITDA


$            105,232

$            94,837

$          348,899

$          343,400

___________________________________________









(1) Relates to an ongoing regulatory matter at Mohegan Sun Pocono.


















 

 

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 September 30, 2017















Adjusted EBITDA 




Income (Loss)

Depreciation




(Gain) Loss 




Attributable to 




from

and 

Property

Share-based

on Disposition of




Non-controlling

Adjusted 

Operations

Amortization

Charges (1)

Compensation

Assets

Pre-Opening

Impairment

Interests

EBITDA

Mohegan Sun 

$                70,939

$            15,856

$                         -

$                   -

$                  164

$                    74

$              -

$                            273

$          87,306

Mohegan Sun Pocono 

6,491

3,196

4,926

-

1

-

-

-

14,614

Corporate

4,220

34

-

-

-

1,601

-

(2,543)

3,312

Total

$                81,650

$            19,086

$                    4,926

$                   -

$                  165

$               1,675

$              -

$                       (2,270)

$        105,232





















For the Three Months Ended September 30, 2016















Adjusted EBITDA 




Income (Loss)

Depreciation




(Gain) Loss 




Attributable to 




from

and 

Property

Share-based

on Disposition of




Non-controlling

Adjusted 

Operations

Amortization

Charges (1)

Compensation

Assets

Pre-Opening

Impairment

Interests

EBITDA

Mohegan Sun 

$                66,354

$            14,745

$                         -

$                   -

$                (160)

$                  723

$        1,875

$                              63

$          83,600

Mohegan Sun Pocono

10,535

2,929

-

-

(1)

-

-

-

13,463

Corporate

(4,077)

270

-

-

-

-

-

1,581

(2,226)

Total

$                72,812

$            17,944

$                         -

$                   -

$                (161)

$                  723

$        1,875

$                         1,644

$          94,837









































For the Fiscal Year Ended September 30, 2017















Adjusted EBITDA 




Income (Loss)

Depreciation




(Gain) Loss 




Attributable to 




from

and 

Property

Share-based

on Disposition of




Non-controlling

Adjusted 

Operations

Amortization

Charges (1)

Compensation

Assets

Pre-Opening

Impairment

Interests

EBITDA

Mohegan Sun 

$              249,403

$            61,985

$                         -

$                   -

$                    61

$                  571

$              -

$                         1,257

$        313,277

Mohegan Sun Pocono

36,368

12,350

4,926

-

(3)

-

-

-

53,641

Corporate

(25,313)

108

-

7,569

-

1,601

-

(1,984)

(18,019)

Total

$              260,458

$            74,443

$                    4,926

$             7,569

$                    58

$               2,172

$              -

$                          (727)

$        348,899





















For the Fiscal Year Ended September 30, 2016















Adjusted EBITDA 




Income (Loss)

Depreciation




(Gain) Loss 




Attributable to 




from

and 

Property

Share-based

on Disposition of




Non-controlling

Adjusted 

Operations

Amortization

Charges (1)

Compensation

Assets

Pre-Opening

Impairment

Interests

EBITDA

Mohegan Sun 

$              237,605

$            61,017

$                         -

$                   -

$                  167

$                  723

$        1,875

$                            794

$        302,181

Mohegan Sun Pocono

41,445

11,823

-

-

13

-

-

-

53,281

Corporate

(17,907)

1,073

-

6,147

-

-

-

(1,375)

(12,062)

Total

$              261,143

$            73,913

$                         -

$             6,147

$                  180

$                  723

$        1,875

$                          (581)

$        343,400

________________

















(1) Relates to an ongoing regulatory matter at Mohegan Sun Pocono.













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, impairment charges, accretion of discount to a redemption liability, gain or loss on modification and early extinguishment of debt, income or loss from unconsolidated affiliates, property charges, 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 Executive Officer
Mohegan Gaming & Entertainment
(860) 862-8000

 

 

SOURCE Mohegan Gaming & Entertainment


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