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Exhibit 99.1

MOHEGAN GAMING & ENTERTAINMENT ANNOUNCES

FOURTH QUARTER FISCAL 2017 OPERATING RESULTS

Uncasville, Connecticut, November 21, 2017 – 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):

 

    Net revenues of $362.0 million, a 4.5% increase over the fourth quarter of fiscal 2016

 

    Gaming revenues of $307.1 million, a 2.0% increase over the fourth quarter of fiscal 2016

 

    Gross slot revenues of $213.7 million, a 2.2% increase over the fourth quarter of fiscal 2016

 

    Table game revenues of $94.3 million, a 2.9% increase over the fourth quarter of fiscal 2016

 

    Non-gaming revenues of $84.5 million, a 20.7% increase over the fourth quarter of fiscal 2016

 

    Income from operations of $81.7 million, a 12.1% increase over the fourth quarter of fiscal 2016

 

    Net income attributable to MGE of $55.4 million, a 25.4% increase over the fourth quarter of fiscal 2016

 

    Adjusted EBITDA, a non-GAAP measure described below, of $105.2 million, an 11.0% increase over the fourth quarter of fiscal 2016

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,
2017
     September 30,
2016
     Variance      Percentage
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,
2017
    September 30,
2016
    Variance      Percentage
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,
2017
    September 30,
2016
    Variance     Percentage
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,
2017 (1)
     September 30,
2016
     Variance      Percentage
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,
2017
    September 30,
2016
    Variance     Percentage
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,
2017
    September 30,
2016
    Variance     Percentage
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,
2017 (1)
     September 30,
2016
     Variance      Percentage
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,
2017
    September 30,
2016
    September 30,
2017
    September 30,
2016
    September 30,
2017
    September 30,
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,
2017
    September 30,
2016
    September 30,
2017
    September 30,
2016
    September 30,
2017
    September 30,
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
September 30, 2017
     Forecasted
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
Three Months Ended
September 30, 2017
    For the
Three Months Ended
September 30, 2016
    For the
Fiscal Year Ended
September 30, 2017
    For the
Fiscal Year Ended
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,
2017
     September 30,
2016
     September 30,
2017
     September 30,
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,
2017
     September 30,
2016
 

Balance Sheet Data:

           

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,
2017
    September 30,
2016
    September 30,
2017
    September 30,
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,
2017
    September 30,
2016
    September 30,
2017
    September 30,
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,
2017
     September 30,
2016
    September 30,
2017
    September 30,
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,
2017
    September 30,
2016
    September 30,
2017
    September 30,
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  
     Income (Loss)
from
Operations
    Depreciation
and
Amortization
     Property
Charges (1)
     Share-based
Compensation
     (Gain) Loss
on Disposition of
Assets
    Pre-Opening      Impairment      Adjusted EBITDA
Attributable to
Non-controlling
Interests
    Adjusted
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  
     Income (Loss)
from
Operations
    Depreciation
and
Amortization
     Property
Charges (1)
     Share-based
Compensation
     (Gain) Loss on
Disposition of
Assets
    Pre-Opening      Impairment      Adjusted EBITDA
Attributable to
Non-controlling
Interests
    Adjusted
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  
     Income (Loss)
from
Operations
    Depreciation
and
Amortization
     Property
Charges (1)
     Share-based
Compensation
     (Gain) Loss on
Disposition of
Assets
    Pre-Opening      Impairment      Adjusted EBITDA
Attributable to
Non-controlling
Interests
    Adjusted
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  
     Income (Loss)
from
Operations
    Depreciation
and
Amortization
     Property
Charges (1)
     Share-based
Compensation
     (Gain) Loss on
Disposition of
Assets
    Pre-Opening      Impairment      Adjusted EBITDA
Attributable to
Non-controlling
Interests
    Adjusted
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