Gambling in the USA
Mohegan Gaming & Entertainment Announces Third Quarter Fiscal 2018 Operating Results
UNCASVILLE, Conn., Aug. 8, 2018 – Mohegan Gaming & Entertainment (“MGE”), a developer and operator of premier global gaming and entertainment properties, including Mohegan Sun in Uncasville, Connecticut, announced today operating results for its third fiscal quarter ended June 30, 2018.
“Overall fiscal third quarter results were generally in line with prior year performance, driven by effective operational cost containment initiatives leading to an impressive margin performance at Mohegan Sun in Connecticut. These initiatives, along with revenue enhancement measures, reflect the initial phases of a prolonged strategy to combat anticipated incremental competition in the New England gaming market. The quarter also marked considerable progress in our non-gaming development strategy. On May 31, we opened our $80 million, 155,200 square-foot Mohegan Sun Exposition and Convention Center by hosting a world-renowned auto auction with great success. Combined with our preexisting facilities, Mohegan Sun now offers over 275,000 square-feet of meeting, incentive, convention, and exhibition (MICE) facilities, the largest in the region. We believe the Expo Center, along with several other planned enhancements, will continue to position Mohegan Sun as the premier gaming and entertainment destination in the Northeast for years to come,” said Mario Kontomerkos, Chief Executive Officer of MGE. “Finally, we continue to make progress on several development efforts in North America, South Korea, and broader Asia, in order to diversify and strengthen our revenue sources and credit profile, and to ensure the continued long-term success of MGE.”
Selected consolidated operating results for the third quarter ended June 30, 2018 and prior year period (unaudited):
- Net revenues of $344.9 million vs. $350.2 million in the prior year period, a 1.5% decrease;
- Gaming revenues of $295.4 million vs. $294.0 million in the prior year period, a 0.5% increase;
- Gross slot revenues of $203.6 million vs. $205.5 million in the prior year period, a 0.9% decrease;
- Table game revenues of $91.6 million vs. $88.2 million in the prior year period, a 3.8% increase;
- Non-gaming revenues of $74.1 million vs. $82.6 million in the prior year period, a 10.2% decrease;
- Total operating expenses of $281.0 million vs. $280.2 million in the prior year period, a 0.3% increase; and
- Adjusted EBITDA, a non-GAAP measure described below, of $88.2 million vs. $89.3 million in the prior year period, a 1.2% decrease.
Consolidated net revenues declined modestly during the quarter, primarily driven by a reduction in non-gaming revenues and continued increases in promotional activity in the Mohegan Sun Pocono gaming market. In particular, consolidated retail, entertainment, and other revenues declined by $6.6 million, or 15.6%, the product of a weaker entertainment calendar at Mohegan Sun, including fewer headliner shows during the period. Consolidated gaming revenues were generally in-line with prior year results as a return to higher table hold rates at Mohegan Sun partially offset lower gaming revenues at Mohegan Sun Pocono. Total operating expenses were similar to prior year results, as cost reduction programs were partially offset by increased costs associated with development and revenue diversification initiatives. Overall, collective revenue declines and increases in slot taxes assessed by the Commonwealth of Pennsylvania were the primary drivers of year-over-year declines in Adjusted EBITDA.
Mohegan Sun |
|||||||
Operating results (in thousands, unaudited): |
|||||||
For the Three Months Ended |
|||||||
June 30, |
June 30, |
Percentage |
|||||
2018 |
2017 |
Variance |
Variance |
||||
Net revenues |
$ 270,434 |
$ 271,578 |
$ (1,144) |
(0.4%) |
|||
Income from operations |
$ 61,778 |
$ 62,630 |
$ (852) |
(1.4%) |
|||
Adjusted EBITDA |
$ 81,782 |
$ 78,809 |
$ 2,973 |
3.8% |
|||
Slots: |
|||||||
Handle |
$ 1,854,613 |
$ 1,868,130 |
$ (13,517) |
(0.7%) |
|||
Gross revenues |
$ 152,478 |
$ 152,813 |
$ (335) |
(0.2%) |
|||
Net revenues |
$ 146,185 |
$ 146,135 |
$ 50 |
0.0% |
|||
Free promotional slot plays |
$ 14,730 |
$ 15,710 |
$ (980) |
(6.2%) |
|||
Weighted average number of machines (in units) |
4,739 |
4,946 |
(207) |
(4.2%) |
|||
Hold percentage (gross) |
8.2% |
8.2% |
0.0% |
0.0% |
|||
Win per unit per day (gross) (in dollars) |
$ 354 |
$ 340 |
$ 14 |
4.1% |
|||
Table games: |
|||||||
Drop |
$ 471,939 |
$ 485,434 |
$ (13,495) |
(2.8%) |
|||
Revenues |
$ 83,078 |
$ 78,967 |
$ 4,111 |
5.2% |
|||
Weighted average number of games (in units) |
274 |
275 |
(1) |
(0.4%) |
|||
Hold percentage |
17.6% |
16.3% |
1.3% |
8.0% |
|||
Win per unit per day (in dollars) |
$ 3,331 |
$ 3,155 |
$ 176 |
5.6% |
|||
Hotel: |
|||||||
Revenues |
$ 14,396 |
$ 15,601 |
$ (1,205) |
(7.7%) |
|||
Rooms occupied |
137 |
137 |
– |
0.0% |
|||
Occupancy rate |
96.0% |
96.5% |
(0.5%) |
(0.5%) |
|||
Average daily room rate (in dollars) |
$ 102 |
$ 111 |
$ (9) |
(8.1%) |
|||
Revenue per available room (in dollars) |
$ 98 |
$ 107 |
$ (9) |
(8.4%) |
Net revenues declined modestly during the quarter, primarily driven by a reduction in non-gaming revenues. These results primarily reflected lower entertainment revenues driven, in part, by a weaker overall entertainment calendar featuring fewer headliner shows. Non-gaming revenue declines were partially offset by increased table game revenues, which benefited from higher year-over-year hold percentages despite some softness in gaming volumes. Gaming volumes were impacted by a handful of items including a softer entertainment calendar and pockets of softness in table volumes, not overly attributable to any specific competitive pressure or event. Overall, Mohegan Sun experienced an increase in Adjusted EBITDA primarily due to higher gaming revenues, and lower direct entertainment costs commensurate with the reductions in entertainment revenues. Adjusted EBITDA margin increased considerably to 30.2% for the quarter ended June 30, 2018, from 29.0% in the third quarter of fiscal 2017.
Mohegan Sun Pocono |
|||||||
Operating results (in thousands, unaudited): |
|||||||
For the Three Months Ended |
|||||||
June 30, |
June 30, |
Percentage |
|||||
2018 |
2017 |
Variance |
Variance |
||||
Net revenues |
$ 68,290 |
$ 71,031 |
$ (2,741) |
(3.9%) |
|||
Income from operations |
$ 10,216 |
$ 12,276 |
$ (2,060) |
(16.8%) |
|||
Adjusted EBITDA |
$ 13,983 |
$ 15,411 |
$ (1,428) |
(9.3%) |
|||
Slots: |
|||||||
Handle |
$ 620,810 |
$ 667,264 |
$ (46,454) |
(7.0%) |
|||
Gross revenues |
$ 51,154 |
$ 52,669 |
$ (1,515) |
(2.9%) |
|||
Net revenues |
$ 51,154 |
$ 52,762 |
$ (1,608) |
(3.0%) |
|||
Free promotional slot plays |
$ 11,452 |
$ 13,140 |
$ (1,688) |
(12.8%) |
|||
Weighted average number of machines (in units) |
2,324 |
2,326 |
(2) |
(0.1%) |
|||
Hold percentage (gross) |
8.2% |
7.9% |
0.3% |
3.8% |
|||
Win per unit per day (gross) (in dollars) |
$ 242 |
$ 249 |
$ (7) |
(2.8%) |
|||
Table games: |
|||||||
Drop |
$ 46,488 |
$ 53,026 |
$ (6,538) |
(12.3%) |
|||
Revenues |
$ 8,496 |
$ 9,274 |
$ (778) |
(8.4%) |
|||
Weighted average number of games (in units) |
73 |
73 |
– |
– |
|||
Hold percentage |
18.3% |
17.5% |
0.8% |
4.6% |
|||
Win per unit per day (in dollars) |
$ 1,275 |
$ 1,396 |
$ (121) |
(8.7%) |
|||
Hotel: |
|||||||
Revenues |
$ 1,315 |
$ 1,295 |
$ 20 |
1.5% |
|||
Rooms occupied |
18 |
20 |
(2) |
(10.0%) |
|||
Occupancy rate |
83.0% |
92.9% |
(9.9%) |
(10.7%) |
|||
Average daily room rate (in dollars) |
$ 65 |
$ 62 |
$ 3 |
4.8% |
|||
Revenue per available room (in dollars) |
$ 55 |
$ 57 |
$ (2) |
(3.5%) |
Net revenues declined by $2.7 million, or 3.9%. Overall revenues were impacted by lower gaming revenues, which reflect our efforts to manage profitable guest trips and continued aggressive promotional activity from a regional competitor. Overall, the decline in Adjusted EBITDA primarily resulted from lower revenues as explained above and from higher slot taxes driven, in part, by a 1% increase in slot taxes assessed by the Commonwealth of Pennsylvania which went into effect on January 1, 2018. These results were partially offset by a reduction in gaming costs and expenses, including lower payroll costs and certain casino marketing and promotional expenses, as well as lower costs related to Momentum Dollar redemptions at Mohegan Sun Pocono-owned outlets. Importantly, adjusting for the incremental 1% slot tax as discussed above and a one-time $1.3 million tax credit in the prior year period, overall MSP Adjusted EBITDA would have been approximately flat. Adjusted EBITDA margin declined to 20.5% for the quarter ended June 30, 2018, from 21.7% in the third quarter of fiscal 2017.
Corporate |
|||||||
Operating results (in thousands, unaudited): |
|||||||
For the Three Months Ended |
|||||||
June 30, |
June 30, |
Percentage |
|||||
2018 |
2017 |
Variance |
Variance |
||||
Net revenues |
$ 6,239 |
$ 7,606 |
$ (1,367) |
(18.0%) |
|||
Loss from operations |
$ (8,090) |
$ (4,942) |
$ (3,148) |
63.7% |
|||
Adjusted EBITDA |
$ (7,525) |
$ (4,902) |
$ (2,623) |
(53.5%) |
Adjusted EBITDA for the quarter ended June 30, 2018, reflects increased development costs associated with our various diversification initiatives, largely driven by Project Inspire and overall development efforts in Asia and North America. The decrease in net revenues was primarily driven by results at ilani Casino Resort, where lower development fee revenues were partially offset by higher management fees earned.
MGE Property Information |
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Net Revenues |
Income (Loss) from Operations |
Adjusted EBITDA |
|||||||||||
(in thousands) |
For the Three Months Ended |
For the Three Months Ended |
For the Three Months Ended |
||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
||||||||
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
||||||||
Mohegan Sun |
$ 270,434 |
$ 271,578 |
$ 61,778 |
$ 62,630 |
$ 81,782 |
$ 78,809 |
|||||||
Mohegan Sun Pocono |
68,290 |
71,031 |
10,216 |
12,276 |
13,983 |
15,411 |
|||||||
Corporate |
6,239 |
7,606 |
(8,090) |
(4,942) |
(7,525) |
(4,902) |
|||||||
Inter-segment revenues |
(60) |
(60) |
– |
– |
– |
– |
|||||||
Total |
$ 344,903 |
$ 350,155 |
$ 63,904 |
$ 69,964 |
$ 88,240 |
$ 89,318 |
|||||||
Net Revenues |
Income (Loss) from Operations |
Adjusted EBITDA |
|||||||||||
For the Nine Months Ended |
For the Nine Months Ended |
For the Nine Months Ended |
|||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
||||||||
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
||||||||
Mohegan Sun |
$ 793,725 |
$ 795,775 |
$ 175,950 |
$ 178,464 |
$ 233,062 |
$ 225,971 |
|||||||
Mohegan Sun Pocono |
200,224 |
207,752 |
26,763 |
29,877 |
37,230 |
39,027 |
|||||||
Corporate |
14,635 |
14,624 |
(27,737) |
(29,533) |
(26,213) |
(21,331) |
|||||||
Inter-segment revenues |
(180) |
(180) |
– |
– |
– |
– |
|||||||
Total |
$ 1,008,404 |
$ 1,017,971 |
$ 174,976 |
$ 178,808 |
$ 244,079 |
$ 243,667 |
Other Information
Liquidity
As of June 30, 2018, MGE held cash and cash equivalents of $201.1 million, compared to $89.0 millionas of September 30, 2017. As of June 30, 2018, $84.0 million was drawn on MGE’s $250.0 millionrevolving credit facility, while no amounts were drawn on MGE’s $25.0 million line of credit. As of June 30, 2018, letters of credit issued under the revolving credit facility totaled $2.3 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the revolving credit facility, MGE had approximately $163.7 million of borrowing capacity under its revolving credit facility and line of credit as of June 30, 2018.
Interest Expense
Interest expense increased by $5.4 million, or 19.6%, to $33.1 million for the quarter ended June 30, 2018 compared to $27.7 million in the third quarter of fiscal 2017 as a result of an increase in our weighted average interest rate and weighted average outstanding debt. Weighted average interest rate was 7.1% for the quarter ended June 30, 2018 compared to 6.4% in the third quarter of fiscal 2017, mainly due to a rise in market variable interest rates. During the quarter, MGE incurred additional indebtedness to fund future investments in Project Inspire of $110 million, resulting in an increase to our outstanding debt. As a result, weighted average outstanding debt was $1.88 billion for the quarter ended June 30, 2018, compared to $1.74 billion in the third quarter of fiscal 2017.
Capital Expenditures
The following table presents data related to capital expenditures (in millions):
Capital Expenditures |
|||||
Nine Months Ended |
Remaining Forecasted |
Forecasted |
|||
June 30, 2018 |
Fiscal Year 2018 |
Fiscal Year 2018 |
|||
(in millions) |
|||||
Mohegan Sun: |
|||||
Maintenance |
$ 22.4 |
$ 10.9 |
$ 33.3 |
||
Development |
8.3 |
0.2 |
8.5 |
||
Expansion – Earth Expo & Convention Center |
52.0 |
0.8 |
52.8 |
||
Subtotal |
82.7 |
11.9 |
94.6 |
||
Mohegan Sun Pocono: |
|||||
Maintenance |
6.2 |
1.7 |
7.9 |
||
Subtotal |
6.2 |
1.7 |
7.9 |
||
Corporate: |
|||||
Maintenance |
– |
0.5 |
0.5 |
||
Other – Project Inspire |
15.7 |
16.0 |
31.7 |
||
Subtotal |
15.7 |
16.5 |
32.2 |
||
Total |
$ 104.6 |
$ 30.1 |
$ 134.7 |
Distributions to the Mohegan Tribe
Distributions by MGE to the Mohegan Tribe totaled $15.0 million for each of the quarters ended June 30, 2018 and 2017. Distributions by MGE to the Mohegan Tribe are anticipated to total $60.0 millionfor fiscal 2018.
Conference Call
MGE will host a conference call and simultaneous webcast regarding its third quarter of fiscal 2018 operating results on Wednesday, August 8, 2018 at 11:00 a.m. (Eastern Daylight Time).
Those interested in participating in the call should dial as follows:
(877) 756-4274
(508) 637-5458 (International)
Conference ID: 8281109
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 Wednesday, August 8, 2018. This replay will run through August 21, 2018.
The access number for a taped replay of the conference call is as follows:
(855) 859-2056
(404) 537-3406 (International)
Conference ID: 8281109
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.
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, 2017, as well as in MGE’s other reports and filings with the Securities and Exchange Commission. Any forward-looking statements included in this press release are made only as of the date of this release. MGE does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. MGE cannot assure that projected results or events will be achieved or will occur.
MOHEGAN GAMING & ENTERTAINMENT |
||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
For the |
For the |
For the |
For the |
|||||||
Three Months Ended |
Three Months Ended |
Nine Months Ended |
Nine Months Ended |
|||||||
June 30, 2018 |
June 30, 2017 |
June 30, 2018 |
June 30, 2017 |
|||||||
Revenues: |
||||||||||
Gaming |
$ 295,417 |
$ 293,955 |
$ 871,158 |
$ 872,766 |
||||||
Food and beverage |
22,386 |
23,009 |
65,376 |
67,796 |
||||||
Hotel |
15,711 |
16,896 |
45,575 |
46,518 |
||||||
Retail, entertainment and other |
36,038 |
42,675 |
98,775 |
106,648 |
||||||
Gross revenues |
369,552 |
376,535 |
1,080,884 |
1,093,728 |
||||||
Less – Promotional allowances |
(24,649) |
(26,380) |
(72,480) |
(75,757) |
||||||
Net revenues |
344,903 |
350,155 |
1,008,404 |
1,017,971 |
||||||
Operating costs and expenses: |
||||||||||
Gaming |
164,108 |
165,072 |
490,224 |
494,654 |
||||||
Food and beverage |
10,552 |
10,654 |
30,921 |
31,224 |
||||||
Hotel |
6,945 |
7,686 |
20,597 |
20,860 |
||||||
Retail, entertainment and other |
12,530 |
15,457 |
33,736 |
42,426 |
||||||
Advertising, general and administrative |
49,093 |
49,760 |
149,065 |
150,349 |
||||||
Corporate |
13,008 |
12,455 |
39,251 |
43,903 |
||||||
Depreciation and amortization |
20,664 |
19,055 |
60,699 |
55,357 |
||||||
Other, net |
4,099 |
52 |
8,935 |
390 |
||||||
Total operating costs and expenses |
280,999 |
280,191 |
833,428 |
839,163 |
||||||
Income from operations |
63,904 |
69,964 |
174,976 |
178,808 |
||||||
Other income (expense): |
||||||||||
Interest expense, net of capitalized interest |
(33,106) |
(27,690) |
(92,248) |
(86,319) |
||||||
Loss on modification and early extinguishment of debt |
– |
(1,094) |
– |
(74,890) |
||||||
Other income, net |
4,017 |
2,496 |
9,196 |
5,232 |
||||||
Total other expense |
(29,089) |
(26,288) |
(83,052) |
(155,977) |
||||||
Net income |
34,815 |
43,676 |
91,924 |
22,831 |
||||||
Loss attributable to non-controlling interests |
193 |
104 |
901 |
797 |
||||||
Net income attributable to Mohegan Gaming & Entertainment |
$ 35,008 |
$ 43,780 |
$ 92,825 |
$ 23,628 |
MOHEGAN GAMING & ENTERTAINMENT |
||||||||||||
ADJUSTED EBITDA RECONCILIATIONS |
||||||||||||
Reconciliations of Net Income to Adjusted EBITDA: |
||||||||||||
Reconciliations of net income, a financial measure determined in accordance with accounting principles generally |
||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||
Net income |
$ 34,815 |
$ 43,676 |
$ 91,924 |
$ 22,831 |
||||||||
Other income, net |
(4,017) |
(2,496) |
(9,196) |
(5,232) |
||||||||
Loss on modification and early extinguishment of debt |
– |
1,094 |
– |
74,890 |
||||||||
Interest expense, net of capitalized interest |
33,106 |
27,690 |
92,248 |
86,319 |
||||||||
Income from operations |
63,904 |
69,964 |
174,976 |
178,808 |
||||||||
Adjusted EBITDA attributable to non-controlling interests |
(427) |
247 |
(531) |
1,543 |
||||||||
Other, net |
4,099 |
52 |
8,935 |
7,959 |
||||||||
Depreciation and amortization |
20,664 |
19,055 |
60,699 |
55,357 |
||||||||
Adjusted EBITDA |
$ 88,240 |
$ 89,318 |
$ 244,079 |
$ 243,667 |
Reconciliations of Income from Operations to Adjusted EBITDA: |
|||||||||||
Reconciliations of income from operations, a financial measure determined in accordance with US GAAP, to Adjusted EBITDA, are shown below (in thousands): |
|||||||||||
For the Three Months Ended June 30, 2018 |
|||||||||||
Adjusted EBITDA |
|||||||||||
Income (Loss) |
Depreciation |
Attributable to |
|||||||||
from |
and |
Non-Controlling |
Adjusted |
||||||||
Operations |
Amortization |
Other, net |
Interests |
EBITDA |
|||||||
Mohegan Sun |
$ 61,778 |
$ 17,163 |
$ 2,572 |
$ 269 |
$ 81,782 |
||||||
Mohegan Sun Pocono |
10,216 |
3,463 |
304 |
– |
13,983 |
||||||
Corporate |
(8,090) |
38 |
1,223 |
(696) |
(7,525) |
||||||
Total |
$ 63,904 |
$ 20,664 |
$ 4,099 |
$ (427) |
$ 88,240 |
||||||
For the Three Months Ended June 30, 2017 |
|||||||||||
Adjusted EBITDA |
|||||||||||
Income (Loss) |
Depreciation |
Attributable to |
|||||||||
from |
and |
Non-Controlling |
Adjusted |
||||||||
Operations |
Amortization |
Other, net |
Interests |
EBITDA |
|||||||
Mohegan Sun |
$ 62,630 |
$ 15,883 |
$ 56 |
$ 240 |
$ 78,809 |
||||||
Mohegan Sun Pocono |
12,276 |
3,139 |
(4) |
– |
15,411 |
||||||
Corporate |
(4,942) |
33 |
– |
7 |
(4,902) |
||||||
Total |
$ 69,964 |
$ 19,055 |
$ 52 |
$ 247 |
$ 89,318 |
||||||
For the Nine Months Ended June 30, 2018 |
|||||||||||
Adjusted EBITDA |
|||||||||||
Income (Loss) |
Depreciation |
Attributable to |
|||||||||
from |
and |
Non-Controlling |
Adjusted |
||||||||
Operations |
Amortization |
Other, net |
Interests |
EBITDA |
|||||||
Mohegan Sun |
$ 175,950 |
$ 50,431 |
$ 5,795 |
$ 886 |
$ 233,062 |
||||||
Mohegan Sun Pocono |
26,763 |
10,154 |
313 |
– |
37,230 |
||||||
Corporate |
(27,737) |
114 |
2,827 |
(1,417) |
(26,213) |
||||||
Total |
$ 174,976 |
$ 60,699 |
$ 8,935 |
$ (531) |
$ 244,079 |
||||||
For the Nine Months Ended June 30, 2017 |
|||||||||||
Adjusted EBITDA |
|||||||||||
Income (Loss) |
Depreciation |
Attributable to |
|||||||||
from |
and |
Non-Controlling |
Adjusted |
||||||||
Operations |
Amortization |
Other, net |
Interests |
EBITDA |
|||||||
Mohegan Sun |
$ 178,464 |
$ 46,129 |
$ 394 |
$ 984 |
$ 225,971 |
||||||
Mohegan Sun Pocono |
29,877 |
9,154 |
(4) |
– |
39,027 |
||||||
Corporate |
(29,533) |
74 |
7,569 |
559 |
(21,331) |
||||||
Total |
$ 178,808 |
$ 55,357 |
$ 7,959 |
$ 1,543 |
$ 243,667 |
||||||
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, gain or loss on disposition of assets, workforce reduction severance, pre-opening costs and expenses, impairment charges, accretion of discounts, loss on modification and early extinguishment of debt, gain or loss from unconsolidated affiliates, other non-operating income and expense and Adjusted EBITDA attributable to non-controlling interests.
Adjusted EBITDA provides an additional way to evaluate MGE’s operations and, when viewed with both MGE’s GAAP results and the reconciliations provided, MGE believes that it provides a more complete understanding of its business than could be otherwise obtained absent this disclosure. Adjusted EBITDA is presented solely as a supplemental disclosure because: (1) MGE believes it enhances an overall understanding of MGE’s past and current financial performance; (2) MGE believes it is a useful tool for investors to assess the operating performance of the business in comparison to other operators within the casino and hospitality industry since Adjusted EBITDA excludes certain items that may not be indicative of MGE’s operating results; (3) measures that are comparable to Adjusted EBITDA are often used as an important basis for the valuation of casino and hospitality companies; and (4) MGE uses Adjusted EBITDA internally to evaluate the performance of its operating personnel and management and as a benchmark to evaluate its operating performance in comparison to its competitors.
The use of Adjusted EBITDA has certain limitations. Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, any GAAP financial measure including net income (as an indicator of MGE’s performance) or cash flows provided by operating activities (as an indicator of MGE’s liquidity), nor should it be considered as an indicator of MGE’s overall financial performance. MGE’s calculation of Adjusted EBITDA is likely to be different from the calculation of Adjusted EBITDA or other similarly titled measurements used by other casino and hospitality companies, and therefore, comparability may be limited. Adjusted EBITDA eliminates certain items from net income, such as interest and depreciation and amortization. Each of these items has been incurred in the past, will continue to be incurred in the future and should be considered in the overall evaluation of MGE’s results. MGE compensates for these limitations by providing relevant disclosures of items excluded in the calculation of Adjusted EBITDA, both in its reconciliations to the GAAP financial measure of net income and in its consolidated financial statements, all of which should be considered when evaluating its results. MGE strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.
Contact:
Christopher Jones
VP Corporate Finance
Mohegan Gaming & Entertainment
(860) 862-8000
Gambling in the USA
Nebraska’s First Permanent Casino to Open in May in Columbus
Nebraska’s first full-fledged, newly built and state-sanctioned gambling casino is slated to open in Columbus next month, marking a milestone in the state’s rollout of casino gambling.
The Nebraska Racing and Gaming Commission last Friday approved a target opening date of May 13 for Harrah’s Columbus.
“This is a big deal,” commission Chairman Dennis Lee said.
The state’s three other casinos are open, but in temporary facilities. According to construction schedules, all should be open by early next year.
“We’re definitely excited to open the first permanent casino in the state,” said Don Ostert, Harrah’s Columbus general manager.
The 17,000-square-foot casino floor will feature 400 slot machines and 11 live table games, including roulette and craps, Ostert said. It will feature a Brew Brothers restaurant and will offer Caesar’s sportsbook and racebook, Ostert said.
For racing fans, the complex will feature the state’s only 1-mile horse track, though racing isn’t scheduled to begin until August 16. By June, officials hope to have some horses out on the track to test the new surface.
Ostert said officials hope to draw customers from Norfolk and Grand Island, but also from Omaha and Lincoln.
Columbus Mayor James Bulkley said that, from the city’s standpoint, “we are very excited to see it get started and become part of the community.”
The developers incorporated some Columbus history into the casino, he said.
“The location where it is used to be called Wishbones, and it was a venue for years for entertainment, and so people recognize that name, and they have kept that name for the sports bar,” he said.
He expects the casino will draw from Omaha. Although driving to Columbus from downtown Omaha might take close to an hour and a half, the drive from west Omaha is more like an hour, he said.
“I can hit Elkhorn in a short hour today, which is now western Omaha,” he said.
In a few months, Omahans won’t have to leave town to visit a brand-new casino.
At Horsemen’s Park in Omaha, Warhorse Gaming officials are aiming to open their new casino in early August. It will open with 900 gaming positions, including table games and a Sweetwater Cafe.
Gambling in the USA
Gaming Americas Weekly Roundup – April 15-21
Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
Caesars Entertainment announced that the Caesars Sportsbook Mississippi app is accepting mobile sports bets at Harrah’s Gulf Coast in Biloxi, Mississippi. Sports fans 21 and older who are interested in wagering on sports via mobile devices can download the Caesars Sportsbook Mississippi app to register and deposit statewide but must be physically present on-property at Harrah’s Gulf Coast to wager.
The Office of Lottery and Gaming (OLG) has announced that FanDuel’s sports betting app and website has officially launched. This development will introduce FanDuel’s sports wagering platform to District residents and visitors, completely replacing the current GambetDC sports betting app and website.
eCOGRA has been officially authorised by the Secretaria De Prêmios e Apostas (SPA) to operate as a certifying entity for betting systems, live gaming studios and online games in Brazil. This announcement marks a significant milestone as eCOGRA continues to extend its international offering of iGaming testing, inspection and certification (TIC) services in regulated markets across the globe.
Jennifer Shatley, a recognised expert in the field and a highly sought speaker and advisor, has joined the Responsible Online Gaming Association (ROGA) as Executive Director. Shatley has had 25+ years worth of experience, working closely with the treatment community, academics, researchers, government bodies, state councils and gaming industry representatives to promote responsible gaming.
Odditt, a leading provider of innovative sports betting data, tools and analytics, has appointed Elaine Milardo as its new Chief Technology Officer (CTO). With over 25 years of experience in the data industry and key roles at DraftKings and Vistaprint, Elaine brings a wealth of expertise to Odditt’s growing team.
Partnerships
Trustly, the global leader in Open Banking Payments, and Light & Wonder, the leading cross-platform global games company, are bringing cashless, in-person deposits to casino floors with Light & Wonder’s cashless solution, RAPIDPLAY. Building on Trustly’s success with guaranteed payments in online sports betting and iGaming, Trustly will deliver the same seamless, quick and secure online payment experience to the physical casino floor.
Fintech company Sightline has entered into an exclusive partnership with compliance and anti-fraud technology solutions leader GeoComply to bolster the security and efficiency of digital transactions within the regulated gaming industry. Sightline will integrate GeoComply’s cutting-edge IDComply identity verification solution as well as GeoComply’s compliance-grade geolocation tools across its comprehensive suite of digital payment solutions for land-based casinos and online gaming operators.
BetMGM has announced a partnership with GameCode, a distinguished iGaming company focused on the North American market. The partnership includes the launch of Boom Boom Boom, HammerCash, Gold Gold Gold and Super3 series which are now live at BetMGM in Michigan and New Jersey through direct integration. BetMGM plans to offer GameCode’s full portfolio of games in all jurisdictions where the operator’s iGaming platform is live pending regulatory approvals.
SCCG Management has announced a joint venture investment with Numb3rs, an innovative all-in-one payment solution provider built for gaming operators. The partnership aims to transform the gaming sector by integrating Numb3rs’ proprietary tech stack, ECRYPT, into the marketplace, thereby offering a comprehensive suite of payment processing solutions.
Gambling in the USA
Gaming Americas Weekly Roundup – April 8-14
Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
FanDuel Group, the premier online gaming company in North America and an Official Partner of Churchill Downs Inc., announced five time Entertainer of the Year Luke Bryan and Grammy award-winning R&B singer Ne-Yo as the headlining performers at FanDuel’s inaugural Kentucky Derby Party. The exclusive, invite-only event will take place on Friday, May 3 at Paristown Arts and Entertainment District in Louisville, Kentucky from 7:00 PM to 12:00 AM.
TPI, a leading provider of innovative player communication solutions for the casino industry, has appointed Joe Tingson as its new Vice President of Customer Success. With his unparalleled dedication to his customers, Joe will play a pivotal role as a leader for our digital Customer Success and Product teams.
PrizePicks, the largest daily fantasy sports operator in North America, has announced plans for its new 33,000 square foot Atlanta Headquarters, which will be located in the Star Metals Building in Midtown Atlanta. The company plans to grow its workforce by 1000 new jobs over the next seven years, the economic impact of which will be $25M to the state of Georgia.
Century Casinos Inc. has announced that it opened its hotel in Cape Girardeau, Missouri, The Riverview. The Riverview is a 69 room, six-story building with 68,000 square feet that is adjacent to and connected with Century Casino Cape Girardeau. The project cost $30.5 million and was financed with cash on hand.
Churchill Downs Incorporated (CDI) has announced the opening of Terre Haute Casino Resort in Terre Haute, Indiana. The $290 million investment includes a casino floor with 1000 slot machines, 36 table games, and a state-of-the-art sportsbook. The 400,000-square-foot entertainment venue also features regionally inspired bars and restaurants including: Four Cornered Steakhouse, Rockwood Bar & Grill, The Soda Shoppe, Crossroads Center Bar and High Limit Bar.
Bragg Gaming Group Inc., a global B2B gaming technology and content provider, announced that Chief Financial Officer (CFO), Ronen Kannor, has notified Bragg’s board of directors (Board) that he will resign from his position to pursue other career opportunities, effective June 3, 2024. The Company confirms that the search for a replacement CFO has commenced.
Partnerships
EQL Games has partnered with global aggregation leader and NeoGames company, Pariplay, to provide the Virginia Lottery, through an agreement with NeoPollard Interactive, with a series of eInstant iLottery games for their industry-leading digital platform.
JACK Entertainment LLC announced the selection of Konami Gaming Inc.’s SYNKROS to power industry-leading systems technology across its 1.5 million square feet of casino entertainment space. The Ohio-based gaming operator’s portfolio includes a combined 2600+ gaming machines and 85 table games at JACK Cleveland Casino in downtown Cleveland, and at JACK Thistledown Racino, located approximately 10 miles to the southeast.
PrizePicks, the largest daily fantasy sports operator in North America, announced that the company has reunited with the Atlanta Braves as the club’s Official Daily Fantasy Sports Partner for the 2024 season. The partnership extends a longstanding relationship that dates back to 2020, with the two Atlanta-based companies continuing to work together on unique opportunities for their dedicated fans.
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