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Exhibit 99.1

MOHEGAN TRIBAL GAMING AUTHORITY ANNOUNCES

FIRST QUARTER FISCAL 2017 OPERATING RESULTS

Uncasville, Connecticut, February 1, 2017 – 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 first fiscal quarter ended December 31, 2016.

“We were encouraged by the strong gaming and non-gaming volumes underlying our business fundamentals at our flagship property Mohegan Sun during the quarter, which were driven by the opening of the new Earth Hotel tower and the property’s 20th anniversary celebration,” said Robert J. Soper, President and Chief Executive Officer of the Authority. “Mohegan Sun’s profitability in the quarter was impacted by lower than expected table game hold percentage, but after adjusting for this, profit would have grown year-over-year. Looking forward, table game hold percentage has reverted to normal, business volumes look solid and we are only months away from the grand opening of ilani Casino Resort outside of Portland, Oregon.”

Consolidated operating results for the first quarter ended December 31, 2016 (unaudited):

 

  Net revenues of $331.0 million, relatively flat compared to the first quarter of fiscal 2016

 

  Gaming revenues of $285.1 million, a 2.5% decrease from the first quarter of fiscal 2016

 

  Gross slot revenues of $197.8 million, relatively flat compared to the first quarter of fiscal 2016

 

  Table game revenues of $87.8 million, a 6.0% decrease from the first quarter of fiscal 2016

 

  Non-gaming revenues of $72.2 million, an 11.4% increase over the first quarter of fiscal 2016

 

  Adjusted EBITDA, a non-GAAP measure described below, of $69.1 million, a 17.3% decrease from the first quarter of fiscal 2016

 

  Income from operations of $49.4 million, a 29.5% decrease from the first quarter of fiscal 2016

 

  Net loss attributable to the Authority of $51.6 million compared to net income attributable to the Authority of $31.9 million in the first quarter of fiscal 2016

Lower than expected table game revenues driven by lower table game hold percentage in Connecticut was the primary contributor to the year-over-year declines in Adjusted EBITDA and income from operations. Decreased slot revenues at Mohegan Sun Pocono, along with higher Corporate expenses, also contributed to the year-over-year declines in Adjusted EBITDA and income from operations. These results were partially offset by higher non-gaming revenues in both Connecticut and Pennsylvania. Net loss attributable to the Authority resulted from a $73.8 million loss on modification and early extinguishment of debt in connection with our October 2016 refinancing transactions, combined with the decline in income from operations.


Mohegan Sun

Operating results (in thousands, unaudited):

 

     For the Three Months Ended
     December 31,
2016
   December 31,
2015
   Variance   Percentage
Variance

Adjusted EBITDA

     $ 65,174        $ 75,096        $ (9,922 )       (13.2 %)

Income from operations

     $ 49,349        $ 59,054        $ (9,705 )       (16.4 %)

Operating costs and expenses

     $ 209,854        $ 196,029        $ 13,825         7.1 %

Net revenues

     $ 259,203        $ 255,083        $ 4,120         1.6 %

Gaming revenues

     $ 222,180        $ 224,570        $ (2,390 )       (1.1 %)

Non-gaming revenues

     $ 58,084        $ 49,147        $ 8,937         18.2 %

Despite strong gaming and non-gaming volumes, Mohegan Sun experienced declines in Adjusted EBITDA and income from operations primarily resulting from lower table game revenues driven by a significant decrease in year-over-year hold percentage. Table game hold at Mohegan Sun decreased 280 basis points to 15.0% for the quarter ended December 31, 2016 from 17.8% in the first quarter of fiscal 2016. We estimate that the decline in year-over-year table game hold percentage negatively impacted table game revenues by approximately $14.0 million. Operating results for the quarter also reflected higher entertainment and other promotional expenses associated with Mohegan Sun’s 20th anniversary festivities during the month of October 2016, though these results were partially offset by higher slot and non-gaming revenues driven by strong overall business activity. Business volumes during the quarter also benefited from additional hotel room capacity following the opening of our new 400-room Earth Hotel on November 10, 2016. Adjusted EBITDA margin declined to 25.1% for the quarter ended December 31, 2016 from 29.4% in the first quarter of fiscal 2016.

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

 

     For the Three Months Ended
     December 31,
2016
  December 31,
2015
  Variance   Percentage
Variance

Slots:

                

Handle

     $ 1,795,730       $ 1,765,802       $ 29,928         1.7 %

Gross revenues

     $ 148,181       $ 142,947       $ 5,234         3.7 %

Net revenues

     $ 141,935       $ 138,402       $ 3,533         2.6 %

Free promotional slot plays (1)

     $ 14,566       $ 14,760       $ (194 )       (1.3 %)

Weighted average number of machines (in units)

       5,096         5,146         (50 )       (1.0 %)

Hold percentage (gross)

       8.3 %       8.1 %       0.2 %       2.5 %

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

     $ 316       $ 302       $ 14         4.6 %

Table games:

                

Drop

     $ 515,285       $ 464,860       $ 50,425         10.8 %

Revenues

     $ 77,198       $ 82,820       $ (5,622 )       (6.8 %)

Weighted average number of games (in units)

       273         267         6         2.2 %

Hold percentage (2)

       15.0 %       17.8 %       (2.8 %)       (15.7 %)

Win per unit per day (in dollars)

     $ 3,072       $ 3,370       $ (298 )       (8.8 %)

Poker:

                

Revenues

     $ 2,167       $ 2,417       $ (250 )       (10.3 %)

Weighted average number of tables (in units)

       42         42         —           —    

Revenue per unit per day (in dollars)

     $ 561       $ 625       $ (64 )       (10.2 %)

 

(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
     December 31,
2016
  December 31,
2015
  Variance   Percentage
Variance

Food and beverage:

                

Revenues

     $ 16,123       $ 14,994       $ 1,129         7.5 %

Meals served

       696         651         45         6.9 %

Average price per meal served (in dollars)

     $ 16.36       $ 16.54       $ (0.18 )       (1.1 %)

Hotel (1):

                

Revenues

     $ 13,342       $ 10,981       $ 2,361         21.5 %

Rooms occupied

       122         106         16         15.1 %

Occupancy rate

       96.4 %       98.2 %       (1.8 %)       (1.8 %)

Average daily room rate (in dollars)

     $ 105       $ 96       $ 9         9.4 %

Revenue per available room (in dollars)

     $ 102       $ 94       $ 8         8.5 %

Retail, entertainment and other:

                

Revenues

     $ 28,619       $ 23,172       $ 5,447         23.5 %

Arena events (in events)

       30         26         4         15.4 %

Arena tickets

       209         150         59         39.3 %

Average price per Arena ticket (in dollars)

     $ 58.70       $ 49.94       $ 8.76         17.5 %

 

(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
     December 31,
2016 (1)
   December 31,
2015
   Variance   Percentage
Variance

Adjusted EBITDA

     $ 10,959        $ 12,046        $ (1,087 )       (9.0 %)

Income from operations

     $ 7,910        $ 9,006        $ (1,096 )       (12.2 %)

Operating costs and expenses

     $ 60,508        $ 64,018        $ (3,510 )       (5.5 %)

Net revenues

     $ 68,418        $ 73,024        $ (4,606 )       (6.3 %)

Gaming revenues

     $ 62,895        $ 67,827        $ (4,932 )       (7.3 %)

Non-gaming revenues

     $ 10,721        $ 10,574        $ 147         1.4 %

 

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

The declines in Adjusted EBITDA and income from operations primarily resulted from a decrease in slot revenues driven by lower year-over-year slot volumes and hold percentage. The reduction in operating costs and expenses primarily reflected lower slot taxes commensurate with the decline in slot revenues. Adjusted EBITDA margin decreased slightly to 16.0% for the quarter ended December 31, 2016 from 16.5% in the first quarter of fiscal 2016.


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

 

     For the Three Months Ended
     December 31,
2016
  December 31,
2015
  Variance   Percentage
Variance

Slots:

                

Handle

     $ 617,579       $ 666,840       $ (49,261 )       (7.4 %)

Gross revenues

     $ 49,645       $ 54,554       $ (4,909 )       (9.0 %)

Net revenues

     $ 49,636       $ 54,460       $ (4,824 )       (8.9 %)

Free promotional slot plays (1)

     $ 10,600       $ 11,659       $ (1,059 )       (9.1 %)

Weighted average number of machines (in units)

       2,244         2,329         (85 )       (3.6 %)

Hold percentage (gross)

       8.0 %       8.2 %       (0.2 %)       (2.4 %)

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

     $ 240       $ 254       $ (14 )       (5.5 %)

Table games:

                

Drop

     $ 51,245       $ 55,969       $ (4,724 )       (8.4 %)

Revenues

     $ 10,564       $ 10,509       $ 55         0.5 %

Weighted average number of games (in units)

       73         73         —           —    

Hold percentage (2)

       20.6 %       18.8 %       1.8 %       9.6 %

Win per unit per day (in dollars)

     $ 1,573       $ 1,566       $ 7         0.4 %

Poker:

                

Revenues

     $ 678       $ 725       $ (47 )       (6.5 %)

Weighted average number of tables (in units)

       18         18         —           —    

Revenue per unit per day (in dollars)

     $ 409       $ 438       $ (29 )       (6.6 %)

 

(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
     December 31,
2016
  December 31,
2015
  Variance   Percentage
Variance

Food and beverage:

                

Revenues

     $ 6,933       $ 7,023       $ (90 )       (1.3 %)

Meals served

       144         158         (14 )       (8.9 %)

Average price per meal served (in dollars)

     $ 22.50       $ 19.78       $ 2.72         13.8 %

Hotel:

                

Revenues

     $ 1,361       $ 1,356       $ 5         0.4 %

Rooms occupied

       20         21         (1 )       (4.8 %)

Occupancy rate

       92.5 %       96.0 %       (3.5 %)       (3.6 %)

Average daily room rate (in dollars)

     $ 64       $ 60       $ 4         6.7 %

Revenue per available room (in dollars)

     $ 59       $ 58       $ 1         1.7 %

Retail, entertainment and other:

                

Revenues

     $ 2,427       $ 2,195       $ 232         10.6 %


Corporate

Operating results (in thousands, unaudited):

 

     For the Three Months Ended
     December 31,
2016 (1)
  December 31,
2015
  Variance   Percentage
Variance

Adjusted EBITDA

     $ (6,990 )     $ (3,497 )     $ (3,493 )       (99.9 %)

Income (loss) from operations

     $ (7,839 )     $ 2,016       $ (9,855 )       N.M.  

Operating costs and expenses

     $ 11,270       $ 4,336       $ 6,934         159.9 %

Net revenues

     $ 3,431       $ 6,352       $ (2,921 )       (46.0 %)

 

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

N.M. - Not Meaningful.

The year-over-year declines in Adjusted EBITDA and income from operations were principally driven by several one-time benefits in the prior year quarter, including a reduction in the reserve against reimbursable costs and expenses advanced by us to the Cowlitz Project and a one-time “catch up” on development fees earned on the Cowlitz Project, both of which were recorded in the first quarter of fiscal 2016 following the completion of the project’s financing.

Mohegan Tribal Gaming Authority Property Information

 

(in thousands, unaudited)    Net Revenues
For the Three Months Ended
  Income (Loss) from Operations
For the Three Months Ended
   Adjusted EBITDA
For the Three Months Ended
     December 31,
2016
  December 31,
2015
  December 31,
2016
  December 31,
2015
   December 31,
2016
  December 31,
2015

Mohegan Sun

     $ 259,203       $ 255,083       $ 49,349       $ 59,054        $ 65,174       $ 75,096  

Mohegan Sun Pocono

       68,418         73,024         7,910         9,006          10,959         12,046  

Corporate

       3,431         6,352         (7,839 )       2,016          (6,990 )       (3,497 )

Inter-segment revenues

       (60 )       (1,273 )       —           —            —           —    
    

 

 

     

 

 

     

 

 

     

 

 

      

 

 

     

 

 

 

Total

     $ 330,992       $ 333,186       $ 49,420       $ 70,076        $ 69,143       $ 83,645  
    

 

 

     

 

 

     

 

 

     

 

 

      

 

 

     

 

 

 


Other Information

October 2016 Refinancing Transactions

On October 14, 2016, the Authority completed a comprehensive refinancing of its outstanding indebtedness, including the repayment, repurchase and redemption of its then existing senior secured credit facilities, 2013 senior unsecured notes, 2015 senior unsecured notes and 2012 senior subordinated notes, with proceeds from a new $170.0 million senior secured revolving credit facility, a new $445.0 million senior secured term loan A facility, a new $785.0 million senior secured term loan B facility and $500.0 million in new senior notes. The Authority incurred a $73.8 million loss on modification and early extinguishment of debt in connection with these refinancing transactions. The Authority estimates that these refinancing transactions will yield annualized interest savings totaling approximately $16.5 million.

Liquidity

As of December 31, 2016, the Authority held cash and cash equivalents of $114.7 million compared to $83.7 million as of September 30, 2016. As of December 31, 2016, $99.0 million was drawn on the Authority’s $170.0 million revolving credit facility, while no amounts were drawn on the Authority’s $25.0 million line of credit. As of December 31, 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 $68.5 million of borrowing capacity under its revolving credit facility and line of credit as of December 31, 2016.

Interest Expense

Interest expense decreased by $4.1 million, or 12.0%, to $30.0 million for the quarter ended December 31, 2016 compared to $34.1 million in the first quarter of fiscal 2016. The reduction in interest expense was attributable to lower weighted average interest rate driven by the Authority’s October 2016 refinancing transactions. Weighted average interest rate was 6.7% for the quarter ended December 31, 2016 compared to 7.8% in the first quarter of fiscal 2016. Weighted average outstanding debt was $1.79 billion for the quarter ended December 31, 2016 compared to $1.75 billion in the first quarter of fiscal 2016.

Capital Expenditures

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

 

     Capital Expenditures
     Three Months Ended
December 31, 2016
  Remaining Forecasted
Fiscal Year 2017
   Forecasted
Fiscal Year 2017

Mohegan Sun:

             

Maintenance

     $ 6.1       $ 28.9        $ 35.0  

Development

       0.8         0.1          0.9  
    

 

 

     

 

 

      

 

 

 

Subtotal

       6.9         29.0          35.9  

Mohegan Sun Pocono:

             

Maintenance

       1.3         6.0          7.3  

Development

       (0.1 )       0.8          0.7  
    

 

 

     

 

 

      

 

 

 

Subtotal

       1.2         6.8          8.0  

Corporate:

             

Maintenance

       —           0.2          0.2  

Development

       —           0.7          0.7  

Other

       2.5         —            —    
    

 

 

     

 

 

      

 

 

 

Subtotal

       2.5         0.9          0.9  
    

 

 

     

 

 

      

 

 

 

Total

     $ 10.6       $ 36.7        $ 44.8  
    

 

 

     

 

 

      

 

 

 

Distributions to the Tribe

Distributions to the Tribe totaled $12.0 million for the quarter ended December 31, 2016 compared to $10.6 million in the first quarter of fiscal 2016. Distributions to the Tribe are anticipated to total $60.0 million for fiscal 2017.


Conference Call

The Authority will host a conference call and simultaneous webcast regarding its first quarter fiscal 2017 operating results on Wednesday, February 1, 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: 85028366

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 Wednesday, February 1, 2017. This replay will run through February 15, 2017.

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

(855) 859-2056

(404) 537-3406 (International)

Conference ID: 85028366

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, 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. 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, 2016, 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 (LOSS)

(in thousands)

(unaudited)

 

     For the
Three Months Ended
December 31, 2016
  For the
Three Months Ended
December 31, 2015

Revenues:

        

Gaming

     $ 285,075       $ 292,397  

Food and beverage

       23,056         22,017  

Hotel

       14,703         12,337  

Retail, entertainment and other

       34,465         30,469  
    

 

 

     

 

 

 

Gross revenues

       357,299         357,220  

Less - Promotional allowances

       (26,307 )       (24,034 )
    

 

 

     

 

 

 

Net revenues

       330,992         333,186  
    

 

 

     

 

 

 

Operating costs and expenses:

        

Gaming

       169,382         166,993  

Food and beverage

       10,329         10,324  

Hotel

       6,203         3,816  

Retail, entertainment and other

       15,387         9,489  

Advertising, general and administrative

       50,396         49,376  

Corporate

       11,188         4,012  

Depreciation and amortization

       18,212         19,128  

(Gain) loss on disposition of assets

       20         (28 )

Pre-opening

       455         —    
    

 

 

     

 

 

 

Total operating costs and expenses

       281,572         263,110  
    

 

 

     

 

 

 

Income from operations

       49,420         70,076  
    

 

 

     

 

 

 

Other income (expense):

        

Interest income

       2,900         2,130  

Interest expense

       (30,035 )       (34,147 )

Loss on modification and early extinguishment of debt

       (73,796 )       (207 )

Loss from unconsolidated affiliates

       (731 )       (393 )

Other income (expense), net

       1         (9 )
    

 

 

     

 

 

 

Total other expense

       (101,661 )       (32,626 )
    

 

 

     

 

 

 

Net income (loss)

       (52,241 )       37,450  

(Income) loss attributable to non-controlling interests

       619         (5,531 )
    

 

 

     

 

 

 

Net income (loss) attributable to Mohegan Tribal Gaming Authority

     $ (51,622 )     $ 31,919  
    

 

 

     

 

 

 

 


MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)

 

     For the Three Months Ended
     December 31,
2016
   December 31,
2015

Operating Results:

         

Gross revenues

     $ 357,299        $ 357,220  

Net revenues

     $ 330,992        $ 333,186  

Income from operations

     $ 49,420        $ 70,076  

Other Data:

         

Adjusted EBITDA

     $ 69,143        $ 83,645  

Capital expenditures

     $ 10,647        $ 7,547  

Cash interest paid

     $ 10,244        $ 21,177  

Distributions to the Tribe

     $ 12,000        $ 10,600  
     December 31,
2016
   September 30,
2016

Balance Sheet Data:

         

Cash and cash equivalents

     $ 114,746        $ 83,743  

Capital leases

     $ —          $ 1,521  

Long-term debt, including current portion

     $ 1,771,553        $ 1,685,167  

MOHEGAN SUN

SUPPLEMENTAL DATA

(unaudited)

 

     For the Three Months Ended
     December 31,
2016
  December 31,
2015

Operating results:

        

Gross revenues (in thousands)

     $ 280,264       $ 273,717  

Net revenues (in thousands)

     $ 259,203       $ 255,083  

Income from operations (in thousands)

     $ 49,349       $ 59,054  

Operating margin

       19.0 %       23.2 %

Adjusted EBITDA:

        

Adjusted EBITDA (in thousands)

     $ 65,174       $ 75,096  

Adjusted EBITDA margin

       25.1 %       29.4 %

Capital expenditures (in thousands)

     $ 6,894       $ 6,086  

Weighted average number of units:

        

Slot machines

       5,096         5,146  

Table games

       273         267  

Poker tables

       42         42  

Win per unit per day:

        

Slot machines (gross)

     $ 316       $ 302  

Table games

     $ 3,072       $ 3,370  

Poker tables

     $ 561       $ 625  

Hold percentage:

        

Slot machines (gross)

       8.3 %       8.1 %

Table games

       15.0 %       17.8 %

Food and beverage statistics:

        

Meals served (in thousands)

       696         651  

Average price per meal served

     $ 16.36       $ 16.54  

Hotel statistics:

        

Rooms occupied (in thousands)

       122         106  

Occupancy rate

       96.4 %       98.2 %

Average daily room rate

     $ 105       $ 96  

Revenue per available room

     $ 102       $ 94  

Entertainment statistics:

        

Arena events (in events)

       30         26  

Arena tickets (in thousands)

       209         150  

Average price per Arena ticket

     $ 58.70       $ 49.95  


MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)

 

     For the Three Months Ended
     December 31,
2016
  December 31,
2015

Operating results:

        

Gross revenues (in thousands)

     $ 73,616       $ 78,401  

Net revenues (in thousands)

     $ 68,418       $ 73,024  

Income from operations (in thousands)

     $ 7,910       $ 9,006  

Operating margin

       11.6 %       12.3 %

Adjusted EBITDA:

        

Adjusted EBITDA (in thousands)

     $ 10,959       $ 12,046  

Adjusted EBITDA margin

       16.0 %       16.5 %

Capital expenditures (in thousands)

     $ 1,255       $ 1,374  

Weighted average number of units:

        

Slot machines

       2,244         2,329  

Table games

       73         73  

Poker tables

       18         18  

Win per unit per day:

        

Slot machines (gross)

     $ 240       $ 254  

Table games

     $ 1,573       $ 1,566  

Poker tables

     $ 409       $ 438  

Hold percentage:

        

Slot machines (gross)

       8.0 %       8.2 %

Table games

       20.6 %       18.8 %

Food and beverage statistics:

        

Meals served (in thousands)

       144         158  

Average price per meal served

     $ 22.50       $ 19.78  

Hotel statistics:

        

Rooms occupied (in thousands)

       20         21  

Occupancy rate

       92.5 %       96.0 %

Average daily room rate

     $ 64       $ 60  

Revenue per available room

     $ 59       $ 58  

CORPORATE

SUPPLEMENTAL DATA

(unaudited)

 

     For the Three Months Ended
     December 31,
2016
  December 31,
2015

Operating results:

        

Gross revenues (in thousands)

     $ 3,479       $ 6,375  

Net revenues (in thousands)

     $ 3,431       $ 6,352  

Income (loss) from operations (in thousands)

     $ (7,839 )     $ 2,016  

Adjusted EBITDA (in thousands)

     $ (6,990 )     $ (3,497 )

Capital expenditures (in thousands)

     $ 2,498       $ 87  


MOHEGAN TRIBAL GAMING AUTHORITY

ADJUSTED EBITDA RECONCILIATIONS

(unaudited)

Reconciliations of Net Income (Loss) to Adjusted EBITDA:

Reconciliations of net income (loss), 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
     December 31,
2016
  December 31,
2015

Net income (loss)

     $ (52,241 )     $ 37,450  

Other (income) expense, net

       (1 )       9  

Loss from unconsolidated affiliates

       731         393  

Loss on modification and early extinguishment of debt

       73,796         207  

Interest expense

       30,035         34,147  

Interest income

       (2,900 )       (2,130 )
    

 

 

     

 

 

 

Income from operations

       49,420         70,076  
    

 

 

     

 

 

 

Adjusted EBITDA attributable to non-controlling interests

       1,036         (5,531 )

Pre-opening

       455         —    

(Gain) loss on disposition of assets

       20         (28 )

Depreciation and amortization

       18,212         19,128  
    

 

 

     

 

 

 

Adjusted EBITDA

     $ 69,143       $ 83,645  
    

 

 

     

 

 

 

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 December 31, 2016
     Income
(Loss)

from
Operations
  Depreciation
and
Amortization
   (Gain) Loss
on Disposition of
Assets
  Pre-Opening    Adjusted
EBITDA

Attributable to
Non-controlling
Interests
  Adjusted
EBITDA

Mohegan Sun

     $ 49,349       $ 15,141        $ 20       $ 455        $ 209       $ 65,174  

Mohegan Sun Pocono

       7,910         3,049          —           —            —           10,959  

Corporate

       (7,839 )       22          —           —            827         (6,990 )
    

 

 

     

 

 

      

 

 

     

 

 

      

 

 

     

 

 

 

Total

     $ 49,420       $ 18,212        $ 20       $ 455        $ 1,036       $ 69,143  
    

 

 

     

 

 

      

 

 

     

 

 

      

 

 

     

 

 

 
     For the Three Months Ended December 31, 2015
     Income
(Loss)
from
Operations
  Depreciation
and
Amortization
   (Gain) Loss on
Disposition of
Assets
  Pre-Opening    Adjusted
EBITDA
Attributable to
Non-controlling
Interests
  Adjusted
EBITDA

Mohegan Sun

     $ 59,054       $ 15,835        $ (39 )     $ —          $ 246       $ 75,096  

Mohegan Sun Pocono

       9,006         3,029          11         —            —           12,046  

Corporate

       2,016         264          —           —            (5,777 )       (3,497 )
    

 

 

     

 

 

      

 

 

     

 

 

      

 

 

     

 

 

 

Total

     $ 70,076       $ 19,128        $ (28 )     $ —          $ (5,531 )     $ 83,645  
    

 

 

     

 

 

      

 

 

     

 

 

      

 

 

     

 

 

 


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 (loss) before interest, depreciation and amortization, 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 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