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Exhibit 99.1

MOHEGAN TRIBAL GAMING AUTHORITY ANNOUNCES

THIRD QUARTER FISCAL 2016 OPERATING RESULTS

Uncasville, Connecticut, July 28, 2016 – The Mohegan Tribal Gaming Authority, or the Authority, 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 third fiscal quarter ended June 30, 2016.

“With year-over-year increases in both gaming and non-gaming volumes, underlying business fundamentals were strong again in our fiscal third quarter,” said Robert J. Soper, President and Chief Executive Officer of the Authority. “The quarter was impacted by lower than expected table game hold percentage at both properties, but after adjusting for this, both consolidated profit and profit margin would have grown significantly. Looking forward, fundamentals thus far in July continue to be very strong and we are only months away from the opening of the 400-room Earth Hotel in Connecticut and less than a year away from the grand opening of the ilani Resort.”

Consolidated operating results for the third quarter ended June 30, 2016 (unaudited):

 

    Net revenues of $323.4 million, relatively flat compared to the third quarter of fiscal 2015

 

    Gaming revenues of $276.8 million, a 2.8% decrease from the third quarter of fiscal 2015

 

    Gross slot revenues of $203.8 million, relatively flat compared to the third quarter of fiscal 2015

 

    Table game revenues of $72.1 million, a 9.1% decrease from the third quarter of fiscal 2015

 

    Non-gaming revenues of $72.1 million, a 10.0% increase over the third quarter of fiscal 2015

 

    Adjusted EBITDA, a non-GAAP measure described below, of $76.7 million, a 5.4% decrease from the third quarter of fiscal 2015

 

    Adjusted EBITDA margin of 23.7%, a 120 basis point decrease from the third quarter of fiscal 2015

 

    Income from operations of $58.0 million, a 5.7% decrease from the third quarter of fiscal 2015

 

    Net income attributable to the Authority of $26.0 million, a 7.5% decrease from the third quarter of fiscal 2015

The declines in Adjusted EBITDA, income from operations and net income attributable to the Authority were principally driven by lower year-over-year table game hold at both Mohegan Sun and Mohegan Sun Pocono. These results were partially offset by strong overall volumes and higher non-gaming revenues, combined with increased revenues generated by Corporate.


Mohegan Sun

Operating results (in thousands, unaudited):

 

     For the Three Months Ended  
     June 30,
2016
     June 30,
2015
     Variance      Percentage
Variance
 

Adjusted EBITDA

   $ 65,648       $ 70,657       $ (5,009      (7.1 %) 

Income from operations

   $ 50,520       $ 54,557       $ (4,037      (7.4 %) 

Operating costs and expenses

   $ 193,603       $ 192,283       $ 1,320         0.7

Net revenues

   $ 244,123       $ 246,840       $ (2,717      (1.1 %) 

Gaming revenues

   $ 206,707       $ 213,199       $ (6,492      (3.0 %) 

Non-gaming revenues

   $ 57,404       $ 53,751       $ 3,653         6.8

The declines in Adjusted EBITDA and income from operations primarily resulted from a reduction in table game revenues driven by lower year-over-year hold percentage. Table game hold at Mohegan Sun decreased 220 basis points to 13.4% for the quarter ended June 30, 2016 from 15.6% in the third quarter of fiscal 2015. These results were partially offset by higher entertainment and hotel revenues. The growth in entertainment revenues reflected an increase in the number of shows held at the Mohegan Sun Arena, while hotel revenues benefited from strong transient and group business. Adjusted EBITDA margin decreased to 26.9% for the quarter ended June 30, 2016 from 28.6% in the third quarter of fiscal 2015.

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

 

     For the Three Months Ended  
     June 30,
2016
    June 30,
2015
    Variance     Percentage
Variance
 

Slots:

        

Handle

   $ 1,813,310      $ 1,786,356      $ 26,954        1.5

Gross revenues

   $ 147,929      $ 147,906      $ 23        0.0

Net revenues

   $ 142,009      $ 142,178      $ (169     (0.1 %) 

Free promotional slot plays (1)

   $ 14,634      $ 14,463      $ 171        1.2

Weighted average number of machines (in units)

     5,111        5,249        (138     (2.6 %) 

Hold percentage (gross)

     8.2     8.3     (0.1 %)      (1.2 %) 

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

   $ 318      $ 310      $ 8        2.6

Table games:

        

Drop

   $ 458,731      $ 432,156      $ 26,575        6.1

Revenues

   $ 61,683      $ 67,520      $ (5,837     (8.6 %) 

Weighted average number of games (in units)

     273        283        (10     (3.5 %) 

Hold percentage (2)

     13.4     15.6     (2.2 %)      (14.1 %) 

Win per unit per day (in dollars)

   $ 2,478      $ 2,625      $ (147     (5.6 %) 

Poker:

        

Revenues

   $ 2,032      $ 2,336      $ (304     (13.0 %) 

Weighted average number of tables (in units)

     42        42        —          —     

Revenue per unit per day (in dollars)

   $ 532      $ 611      $ (79     (12.9 %) 

 

(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,
2016
    June 30,
2015
    Variance     Percentage
Variance
 

Food and beverage:

        

Revenues

   $ 15,906      $ 15,653      $ 253        1.6

Meals served

     726        743        (17     (2.3 %) 

Average price per meal served (in dollars)

   $ 15.62      $ 15.95      $ (0.33     (2.1 %) 

Hotel:

        

Revenues

   $ 12,654      $ 11,222      $ 1,432        12.8

Rooms occupied

     105        105        —          —     

Occupancy rate

     98.9     97.8     1.1     1.1

Average daily room rate (in dollars)

   $ 113      $ 101      $ 12        11.9

Revenue per available room (in dollars)

   $ 112      $ 98      $ 14        14.3

Retail, entertainment and other:

        

Revenues

   $ 28,844      $ 26,876      $ 1,968        7.3

Arena events (in events)

     35        31        4        12.9

Arena tickets

     186        173        13        7.5

Average price per Arena ticket (in dollars)

   $ 58.49      $ 58.68      $ (0.19     (0.3 %) 

Mohegan Sun Pocono

Operating results (in thousands, unaudited):

 

     For the Three Months Ended  
     June 30,
2016
     June 30,
2015
     Variance      Percentage
Variance
 

Adjusted EBITDA

   $ 14,076       $ 15,810       $ (1,734      (11.0 %) 

Income from operations

   $ 11,172       $ 12,842       $ (1,670      (13.0 %) 

Operating costs and expenses

   $ 65,278       $ 65,090       $ 188         0.3

Net revenues

   $ 76,450       $ 77,932       $ (1,482      (1.9 %) 

Gaming revenues

   $ 70,100       $ 71,514       $ (1,414      (2.0 %) 

Non-gaming revenues

   $ 11,817       $ 11,508       $ 309         2.7

The declines in Adjusted EBITDA and income from operations primarily resulted from a reduction in table game revenues driven by lower year-over-year hold percentage and volumes. Adjusted EBITDA margin decreased to 18.4% for the quarter ended June 30, 2016 from 20.3% in the third quarter of fiscal 2015.


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

 

     For the Three Months Ended  
     June 30,
2016
    June 30,
2015
    Variance     Percentage
Variance
 

Slots:

        

Handle

   $ 690,911      $ 673,523      $ 17,388        2.6

Gross revenues

   $ 55,878      $ 55,781      $ 97        0.2

Net revenues

   $ 55,814      $ 55,728      $ 86        0.2

Free promotional slot plays (1)

   $ 11,846      $ 11,909      $ (63     (0.5 %) 

Weighted average number of machines (in units)

     2,331        2,330        1        0.0

Hold percentage (gross)

     8.1     8.3     (0.2 %)      (2.4 %) 

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

   $ 263      $ 263      $ —          —     

Table games:

        

Drop

   $ 53,741      $ 56,668      $ (2,927     (5.2 %) 

Revenues

   $ 10,367      $ 11,758      $ (1,391     (11.8 %) 

Weighted average number of games (in units)

     73        73        —          —     

Hold percentage (2)

     19.3     20.7     (1.4 %)      (6.8 %) 

Win per unit per day (in dollars)

   $ 1,563      $ 1,768      $ (205     (11.6 %) 

Poker:

        

Revenues

   $ 761      $ 738      $ 23        3.1

Weighted average number of tables (in units)

     18        18        —          —     

Revenue per unit per day (in dollars)

   $ 464      $ 451      $ 13        2.9

 

(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 revenues (in thousands, except where noted, unaudited):

 

     For the Three Months Ended  
     June 30,
2016
    June 30,
2015
    Variance     Percentage
Variance
 

Food and beverage:

        

Revenues

   $ 7,702      $ 7,368      $ 334        4.5

Meals served

     183        192        (9     (4.7 %) 

Average price per meal served (in dollars)

   $ 19.14      $ 17.27      $ 1.87        10.8

Hotel:

        

Revenues

   $ 1,568      $ 1,478      $ 90        6.1

Rooms occupied

     21        21        —          —     

Occupancy rate

     96.6     96.1     0.5     0.5

Average daily room rate (in dollars)

   $ 69      $ 66        3        4.5

Revenue per available room (in dollars)

   $ 67      $ 63      $ 4        6.3

Retail, entertainment and other:

        

Revenues

   $ 2,547      $ 2,662      $ (115     (4.3 %) 


Corporate

Operating results (in thousands, unaudited):

 

     For the Three Months Ended  
     June 30,
2016
     June 30,
2015
     Variance      Percentage
Variance
 

Adjusted EBITDA

   $ (3,065    $ (5,417    $ 2,352         43.4

Loss from operations

   $ (3,695    $ (5,900    $ 2,205         37.4

Operating costs and expenses

   $ 7,822       $ 7,440       $ 382         5.1

Net revenues

   $ 4,127       $ 1,540       $ 2,587         168.0

Adjusted EBITDA and loss from operations benefited from increased revenues driven by development and management fees earned in connection with our development arrangement for the Cowlitz Project and our management arrangements with Resorts Casino Hotel and Paragon Casino Resort.

Mohegan Tribal Gaming Authority Property Information

 

     Adjusted EBITDA     Income (Loss) from Operations     Net Revenues  
(in thousands, unaudited)    For the Three Months Ended     For the Three Months Ended     For the Three Months Ended  
     June 30,
2016
    June 30,
2015
    June 30,
2016
    June 30,
2015
    June 30,
2016
    June 30,
2015
 

Mohegan Sun

   $ 65,648      $ 70,657      $ 50,520      $ 54,557      $ 244,123      $ 246,840   

Mohegan Sun Pocono

     14,076        15,810        11,172        12,842        76,450        77,932   

Corporate

     (3,065     (5,417     (3,695     (5,900     4,127        1,540   

Inter-segment revenues

     —          —          —          —          (1,273     (1,273
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 76,659      $ 81,050      $ 57,997      $ 61,499      $ 323,427      $ 325,039   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Adjusted EBITDA     Income (Loss) from Operations     Net Revenues  
     For the Nine Months Ended     For the Nine Months Ended     For the Nine Months Ended  
     June 30,
2016
    June 30,
2015
    June 30,
2016
    June 30,
2015
    June 30,
2016
    June 30,
2015
 

Mohegan Sun

   $ 218,581      $ 204,419      $ 171,251      $ 148,573      $ 755,392      $ 732,903   

Mohegan Sun Pocono

     39,818        40,640        30,910        31,423        223,160        218,456   

Corporate

     (9,836     (18,325     (13,830     (19,717     13,669        4,654   

Inter-segment revenues

     —          —          —          —          (3,819     (3,819
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 248,563      $ 226,734      $ 188,331      $ 160,279      $ 988,402      $ 952,194   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Other Information

Liquidity

As of June 30, 2016, the Authority held cash and cash equivalents of $188.7 million compared to $65.8 million as of September 30, 2015. As of June 30, 2016, $19.0 million was drawn on the Authority’s $100 million revolving credit facility, while no amounts were drawn on the Authority’s $16.5 million line of credit. As of June 30, 2016, letters of credit issued under the revolving credit facility totaled $2.5 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the revolving credit facility, the Authority had approximately $78.5 million of borrowing capacity under its revolving credit facility and line of credit as of June 30, 2016.

Interest Expense

Interest expense decreased by $1.8 million, or 4.8%, to $33.9 million for the quarter ended June 30, 2016 compared to $35.7 million in the third quarter of fiscal 2015. The reduction in interest expense was attributable to lower weighted average interest rate. Weighted average interest rate was 7.8% for the quarter ended June 30, 2016 compared to 8.3% in the third quarter of fiscal 2015. Weighted average outstanding debt was $1.74 billion for the quarter ended June 30, 2016 compared to $1.72 billion in the third quarter of fiscal 2015.

Capital Expenditures

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

 

     Capital Expenditures  
     Nine Months Ended
June 30, 2016
     Remaining Forecasted
Fiscal Year 2016
     Forecasted
Fiscal Year 2016
 

Mohegan Sun:

        

Maintenance

   $ 17.0       $ 9.0       $ 26.0   

Development

     6.6         12.2         18.8   
  

 

 

    

 

 

    

 

 

 

Subtotal

     23.6         21.2         44.8   

Mohegan Sun Pocono:

        

Maintenance

     3.0         2.0         5.0   

Development

     1.0         0.9         1.9   
  

 

 

    

 

 

    

 

 

 

Subtotal

     4.0         2.9         6.9   

Corporate:

        

Maintenance

     0.1         0.2         0.3   
  

 

 

    

 

 

    

 

 

 

Subtotal

     0.1         0.2         0.3   
  

 

 

    

 

 

    

 

 

 

Total

   $ 27.7       $ 24.3       $ 52.0   
  

 

 

    

 

 

    

 

 

 

Distributions to the Tribe

Distributions to the Tribe totaled $13.3 million for the quarter ended June 30, 2016 compared to $12.5 million in the third quarter of fiscal 2015. Distributions to the Tribe are anticipated to total $53.0 million for fiscal 2016.


Conference Call

The Authority will host a conference call and simultaneous webcast regarding its third quarter fiscal 2016 operating results on Thursday, July 28, 2016 at 11:00 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: 85028364

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 the Authority’s website at www.mtga.com, under the “Investor Relations/Financial News” 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 28, 2016. This replay will run through August 11, 2016.

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

(855) 859-2056

(404) 537-3406 (International)

Conference ID: 85028364

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

About the Authority

The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 595-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 185-acre site on the Tribe’s reservation. Through its subsidiary, Downs Racing, L.P., the Authority 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.

The Tribe’s gaming operation at 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 3.1 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 and the 1,200-room luxury Sky 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. More information about the Authority and its properties can be obtained by visiting www.mohegansun.com, www.mohegansunpocono.com or www.mtga.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 the Authority. Information concerning potential factors that could affect the Authority’s financial results is included in its Annual Report on Form 10-K for the fiscal


year ended September 30, 2015, as well as in the Authority’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. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(in thousands)

(unaudited)

 

     For the
Three Months Ended
June 30, 2016
    For the
Three Months Ended
June 30, 2015
    For the
Nine Months Ended
June 30, 2016
    For the
Nine Months Ended
June 30, 2015
 

Revenues:

        

Gaming

   $ 276,807      $ 284,713      $ 865,889      $ 837,463   

Food and beverage

     23,608        23,021        66,808        66,811   

Hotel

     14,222        12,700        38,639        37,199   

Retail, entertainment and other

     34,286        29,825        89,031        82,231   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross revenues

     348,923        350,259        1,060,367        1,023,704   

Less - Promotional allowances

     (25,496     (25,220     (71,965     (71,510
  

 

 

   

 

 

   

 

 

   

 

 

 

Net revenues

     323,427        325,039        988,402        952,194   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and expenses:

        

Gaming

     164,302        164,229        495,060        485,994   

Food and beverage

     10,674        10,323        30,807        31,363   

Hotel

     4,229        3,788        11,731        10,767   

Retail, entertainment and other

     12,872        12,447        30,691        34,268   

Advertising, general and administrative

     47,649        46,522        148,871        140,946   

Corporate

     7,520        7,119        26,601        23,400   

Depreciation and amortization

     18,172        19,086        55,969        58,703   

Loss on disposition of assets

     12        26        341        845   

Severance

     —          —          —          3,370   

Impairment of Project Horizon

     —          —          —          2,502   

Relinquishment liability reassessment

     —          —          —          (243
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     265,430        263,540        800,071        791,915   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     57,997        61,499        188,331        160,279   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense):

        

Accretion of discount to the relinquishment liability

     —          —          —          (227

Interest income

     2,284        1,906        6,469        5,554   

Interest expense

     (33,949     (35,660     (102,294     (107,692

Loss on modification and early extinguishment of debt

     (277     —          (484     —     

Other expense, net

     (495     (50     (1,355     (1,260
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense

     (32,437     (33,804     (97,664     (103,625
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     25,560        27,695        90,667        56,654   

(Income) loss attributable to non-controlling interests

     478        439        (2,225     1,278   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Mohegan Tribal Gaming Authority

   $ 26,038      $ 28,134      $ 88,442      $ 57,932   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income:

        

Foreign currency translation

     (606     —          3,596        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss)

     (606     —          3,596        —     

Other comprehensive (income) loss attributable to non-controlling interests

     384        —          (1,793     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss) attributable to Mohegan Tribal Gaming Authority

     (222     —          1,803        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Mohegan Tribal Gaming Authority

   $ 25,816      $ 28,134      $ 90,245      $ 57,932   
  

 

 

   

 

 

   

 

 

   

 

 

 


MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)

 

     For the Three Months Ended      For the Nine Months Ended  
     June 30,
2016
     June 30,
2015
     June 30,
2016
     June 30,
2015
 

Operating Results:

           

Gross revenues

   $ 348,923       $ 350,259       $ 1,060,367       $ 1,023,704   

Net revenues

   $ 323,427       $ 325,039       $ 988,402       $ 952,194   

Income from operations

   $ 57,997       $ 61,499       $ 188,331       $ 160,279   

Other Data:

           

Adjusted EBITDA

   $ 76,659       $ 81,050       $ 248,563       $ 226,734   

Capital expenditures

   $ 7,556       $ 6,234       $ 27,695       $ 9,038   

Cash interest paid

   $ 14,518       $ 14,453       $ 84,588       $ 80,600   

Distributions to the Tribe

   $ 13,250       $ 12,500       $ 34,450       $ 32,500   
                   June 30,
2016
     September 30,
2015
 

Balance Sheet Data:

           

Cash and cash equivalents

         $ 188,669       $ 65,754   

Capital leases

         $ 1,730       $ 2,345   

Long-term debt, including current portion

         $ 1,697,140       $ 1,666,344   

MOHEGAN SUN

SUPPLEMENTAL DATA

(unaudited)

 

     For the Three Months Ended     For the Nine Months Ended  
     June 30,
2016
    June 30,
2015
    June 30,
2016
    June 30,
2015
 

Operating results:

        

Gross revenues (in thousands)

   $ 264,111      $ 266,950      $ 810,994      $ 789,481   

Net revenues (in thousands)

   $ 244,123      $ 246,840      $ 755,392      $ 732,903   

Income from operations (in thousands)

   $ 50,520      $ 54,557      $ 171,251      $ 148,573   

Operating margin

     20.7     22.1     22.7     20.3

Adjusted EBITDA:

        

Adjusted EBITDA (in thousands)

   $ 65,648      $ 70,657      $ 218,581      $ 204,419   

Adjusted EBITDA margin

     26.9     28.6     28.9     27.9

Capital expenditures (in thousands)

   $ 5,678      $ 5,069      $ 23,666      $ 6,899   

Weighted average number of units:

        

Slot machines

     5,111        5,249        5,133        5,313   

Table games

     273        283        271        283   

Poker tables

     42        42        42        42   

Win per unit per day:

        

Slot machines (gross)

   $ 318      $ 310      $ 312      $ 297   

Table games

   $ 2,478      $ 2,625      $ 3,061      $ 2,724   

Poker tables

   $ 532      $ 611      $ 618      $ 654   

Hold percentage:

        

Slot machines (gross)

     8.2     8.3     8.1     8.3

Table games

     13.4     15.6     16.5     16.1

Food and beverage statistics:

        

Meals served (in thousands)

     726        743        2,008        2,154   

Average price per meal served

   $ 15.62      $ 15.95      $ 16.13      $ 15.94   

Hotel statistics:

        

Rooms occupied (in thousands)

     105        105        317        314   

Occupancy rate

     98.9     97.8     98.6     97.8

Average daily room rate

   $ 113      $ 101      $ 101      $ 99   

Revenue per available room

   $ 112      $ 98      $ 100      $ 97   

Entertainment statistics:

        

Arena events (in events)

     35        31        85        85   

Arena tickets (in thousands)

     186        173        472        492   

Average price per Arena ticket

   $ 58.49      $ 58.68      $ 49.68      $ 53.61   


MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)

 

     For the Three Months Ended     For the Nine Months Ended  
     June 30,
2016
    June 30,
2015
    June 30,
2016
    June 30,
2015
 

Operating results:

        

Gross revenues (in thousands)

   $ 81,917      $ 83,022      $ 239,437      $ 233,338   

Net revenues (in thousands)

   $ 76,450      $ 77,932      $ 223,160      $ 218,456   

Income from operations (in thousands)

   $ 11,172      $ 12,842      $ 30,910      $ 31,423   

Operating margin

     14.6     16.5     13.9     14.4

Adjusted EBITDA:

        

Adjusted EBITDA (in thousands)

   $ 14,076      $ 15,810      $ 39,818      $ 40,640   

Adjusted EBITDA margin

     18.4     20.3     17.8     18.6

Capital expenditures (in thousands)

   $ 1,866      $ 1,186      $ 3,914      $ 2,087   

Weighted average number of units:

        

Slot machines

     2,331        2,330        2,330        2,331   

Table games

     73        73        73        73   

Poker tables

     18        18        18        18   

Win per unit per day:

        

Slot machines (gross)

   $ 263      $ 263      $ 260      $ 248   

Table games

   $ 1,563      $ 1,768      $ 1,565      $ 1,738   

Poker tables

   $ 464      $ 451      $ 473      $ 474   

Hold percentage:

        

Slot machines (gross)

     8.1     8.3     8.1     8.3

Table games

     19.3     20.7     19.1     20.1

Food and beverage statistics:

        

Meals served (in thousands)

     183        192        499        509   

Average price per meal served

   $ 19.14      $ 17.27      $ 19.60      $ 18.13   

Hotel statistics:

        

Rooms occupied (in thousands)

     21        21        62        61   

Occupancy rate

     96.6     96.1     96.1     94.0

Average daily room rate

   $ 69      $ 66      $ 64      $ 62   

Revenue per available room

   $ 67      $ 63      $ 61      $ 58   

CORPORATE

SUPPLEMENTAL DATA

(unaudited)

 

     For the Three Months Ended     For the Nine Months Ended  
     June 30,
2016
     June 30,
2015
    June 30,
2016
     June 30,
2015
 

Capital expenditures (in thousands)

   $ 12       $ (21   $ 115       $ 52   

MOHEGAN TRIBAL GAMING AUTHORITY

ADJUSTED EBITDA RECONCILIATIONS

(unaudited)

Reconciliations of Adjusted EBITDA to Net Income:

Reconciliations of Adjusted EBITDA to net income, a financial measure determined in accordance with accounting principles generally accepted in the United States of America, or GAAP, are shown below (in thousands):

 

     For the Three Months Ended     For the Nine Months Ended  
     June 30,
2016
    June 30,
2015
    June 30,
2016
    June 30,
2015
 

Adjusted EBITDA

   $ 76,659      $ 81,050      $ 248,563      $ 226,734   

Depreciation and amortization

     (18,172     (19,086     (55,969     (58,703

Share compensation

     —          —          (6,147     —     

Loss on disposition of assets

     (12     (26     (341     (845

Severance

     —          —          —          (3,370

Impairment of Project Horizon

     —          —          —          (2,502

Relinquishment liability reassessment

     —          —          —          243   

Income (loss) attributable to non-controlling interests

     (478     (439     2,225        (1,278
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     57,997        61,499        188,331        160,279   
  

 

 

   

 

 

   

 

 

   

 

 

 

Accretion of discount to the relinquishment liability

     —          —          —          (227

Interest income

     2,284        1,906        6,469        5,554   

Interest expense

     (33,949     (35,660     (102,294     (107,692

Loss on modification and early extinguishment of debt

     (277     —          (484     —     

Other expense, net

     (495     (50     (1,355     (1,260
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 25,560      $ 27,695      $ 90,667      $ 56,654   
  

 

 

   

 

 

   

 

 

   

 

 

 


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, 2016  
    Income
(Loss)
from
Operations
    Depreciation
and
Amortization
    Share
Compensation
    Loss on
Disposition of
Assets
    Severance     Impairment
of Project
Horizon
    Relinquishment
Liability
Reassessment
    (Income) Loss
Attributable to
Non-controlling
Interests
    Adjusted
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 Three Months Ended June 30, 2015  
    Income
(Loss)
from
Operations
    Depreciation
and
Amortization
    Share
Compensation
    Loss on
Disposition of
Assets
    Severance     Impairment
of Project
Horizon
    Relinquishment
Liability
Reassessment
    (Income) Loss
Attributable to
Non-controlling
Interests
    Adjusted
EBITDA
 

Mohegan Sun

  $ 54,557      $ 15,857      $ —        $ 26      $ —        $ —        $ —        $ 217      $ 70,657   

Mohegan Sun Pocono

    12,842        2,968        —          —          —          —          —          —          15,810   

Corporate

    (5,900     261        —          —          —          —          —          222        (5,417
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 61,499      $ 19,086      $ —        $ 26      $ —        $ —        $ —        $ 439      $ 81,050   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    For the Nine Months Ended June 30, 2016  
    Income
(Loss)
from
Operations
    Depreciation
and
Amortization
    Share
Compensation
    Loss on
Disposition of
Assets
    Severance     Impairment
of Project
Horizon
    Relinquishment
Liability
Reassessment
    (Income) Loss
Attributable to
Non-controlling
Interests
    Adjusted
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   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    For the Nine Months Ended June 30, 2015  
    Income
(Loss)
from
Operations
    Depreciation
and
Amortization
    Share
Compensation
    Loss on
Disposition of
Assets
    Severance     Impairment
of Project
Horizon
    Relinquishment
Liability
Reassessment
    (Income) Loss
Attributable to
Non-controlling
Interests
    Adjusted
EBITDA
 

Mohegan Sun

  $ 148,573      $ 48,823      $ —        $ 843      $ 3,244      $ 2,502      $ (243   $ 677      $ 204,419   

Mohegan Sun Pocono

    31,423        9,089        —          2        126        —          —          —          40,640   

Corporate

    (19,717     791        —          —          —          —          —          601        (18,325
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 160,279      $ 58,703      $ —        $ 845      $ 3,370      $ 2,502      $ (243   $ 1,278      $ 226,734   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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. The Authority 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 compensation expense, loss on disposition of assets, workforce reduction severance, reassessment and accretion of discount to a relinquishment liability, loss on early extinguishment of debt, other non-operating income and expense and income or loss attributable to non-controlling interests.

Adjusted EBITDA provides an additional way to evaluate the Authority’s operations and, when viewed with both the Authority’s GAAP results and the reconciliations provided, the Authority 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) the Authority believes it enhances an overall understanding of the Authority’s past and current financial performance; (2) the Authority 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 the Authority’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) the Authority 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 the Authority’s performance) or cash flows provided by operating activities (as an indicator of the Authority’s liquidity), nor should it be considered as an indicator of the Authority’s overall financial performance. The Authority’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 the Authority’s results. The Authority 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. The Authority strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.


Contacts:

Robert J. Soper

President and Chief Executive Officer

Mohegan Tribal Gaming Authority

(860) 862-8000

Mario C. Kontomerkos

Chief Financial Officer

Mohegan Tribal Gaming Authority

(860) 862-8000