Melco Crown Entertainment Announces Unaudited Third Quarter 2016 Earnings And Declares Quarterly Dividend

MACAU, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Melco Crown Entertainment Limited (Nasdaq:MPEL) (" Melco Crown Entertainment" or the " Company" or " we"), a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia, today reported its unaudited financial results for the third quarter of 2016.

Net revenue for the third quarter of 2016 was US$1,152.6 million, representing an increase of approximately 22% from US$945.7 million for the comparable period in 2015. The increase in net revenue was primarily attributable to the net revenue generated by Studio City, which started operations in October 2015, and the increase in casino revenues at City of Dreams Manila, partially offset by lower casino revenues at City of Dreams in Macau and Altira Macau.

On a U.S. GAAP basis, operating income for the third quarter of 2016 was US$108.9 million, compared with operating income of US$34.1 million in the third quarter of 2015, representing an increase of 220%.

Adjusted property EBITDA (1) was US$289.2 million for the third quarter of 2016, as compared to Adjusted property EBITDA of US$237.3 million in the third quarter of 2015, representing an increase of 22%. The 22% year-over-year improvement in Adjusted property EBITDA was mainly attributable to the contribution from Studio City and City of Dreams Manila, partially offset by lower contribution from City of Dreams in Macau.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the third quarter of 2016 was US$62.0 million, or US$0.13 per ADS, compared with net income attributable to Melco Crown Entertainment of US$33.2 million, or US$0.06 per ADS, in the third quarter of 2015. The net loss attributable to noncontrolling interests during the third quarter of 2016 of US$18.3 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, "We delivered a 22% year-over-year increase in Adjusted property EBITDA during the third quarter of 2016, driven by greater contributions from Studio City and City of Dreams Manila.

"Studio City, which opened in October 2015, delivered a sequential increase of over 24% in mass table gross gaming revenues and over 110% in Adjusted property EBITDA, leveraging its unique non-gaming offerings to attract an increasingly Cotai-based mass market customer who are seeking a diverse and multi-faceted entertainment proposition.

"As trends stabilize in Macau, Melco Crown Entertainment is positioned to benefit from Macau's evolution into a mass-focused, multi-day stay destination. Our company continues to demonstrate its ongoing commitment to lead Macau in its transformation to the integrated resort model and away from the traditional gaming model through the development of diversified, mass-focused integrated resorts that deliver world-class entertainment and other non-gaming amenities which cater to a broad spectrum of customers.

"City of Dreams Manila delivered improvements in all gaming segments which, together with our company-wide focus on managing reinvestment costs and other operating expenses, resulted in an increase in Adjusted property EBITDA of approximately 85% on a year-over-year basis. City of Dreams Manila provides us with a diversified earnings stream which complements our operations in Macau.

"We believe that the Philippines gaming market will continue to show robust growth as the country's economy rapidly expands, infrastructure continues to improve and the Philippine government retains its strong commitment to supporting domestic and international tourism." 

C it y of Dreams Macau Third Quarter Results

For the quarter ended September 30, 2016, net revenue at City of Dreams was US$621.2 million compared to US$665.6 million in the third quarter of 2015. City of Dreams generated Adjusted EBITDA of US$170.4 million in the third quarter of 2016, representing a decrease of 11% compared to US$191.5 million in the comparable period of 2015. The decline in Adjusted EBITDA was primarily a result of lower mass market table games revenues and gaming machine revenues.

Rolling chip volume totaled US$10.6 billion for the third quarter of 2016 versus US$9.3 billion in the third quarter of 2015. The rolling chip win rate was 2.6% in the third quarter of 2016 versus 2.9% in the third quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop decreased to US$1,096.5 million compared with US$1,190.3 million in the third quarter of 2015. The mass market table games hold percentage was 34.5% in the third quarter of 2016 compared to 35.1% in the third quarter of 2015.

Gaming machine handle for the third quarter of 2016 was US$1,002.5 million, compared with US$1,211.3 million in the third quarter of 2015. The gaming machine win rate was 3.5% in the third quarter of 2016 versus 3.6% in the third quarter of 2015.

Total non-gaming revenue at City of Dreams in the third quarter of 2016 was US$75.6 million, compared with US$66.8 million in the third quarter of 2015.

A lti ra Macau Third Quarter Results

For the quarter ended September 30, 2016, net revenue at Altira Macau was US$128.8 million compared to US$140.3 million in the third quarter of 2015. Altira Macau generated Adjusted EBITDA of US$14.0 million in the third quarter of 2016 compared with Adjusted EBITDA of US$13.3 million in the third quarter of 2015.

Rolling chip volume totaled US$4.5 billion in the third quarter of 2016 versus US$5.2 billion in the third quarter of 2015. The rolling chip win rate was 3.2% in the third quarter of 2016 versus 3.0% in the third quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$122.6 million in the third quarter of 2016, a decrease from US$156.7 million generated in the comparable period in 2015. The mass market table games hold percentage was 19.8% in the third quarter of 2016 compared with 19.4% in the third quarter of 2015.

Gaming machine handle for the third quarter of 2016 was US$8.5 million, compared with US$11.2 million in the third quarter of 2015. The gaming machine win rate was 6.9% in the third quarter of 2016 versus 5.9% in the third quarter of 2015.

Total non-gaming revenue at Altira Macau in the third quarter of 2016 was US$7.3 million compared with US$8.1 million in the third quarter of 2015.

M ocha Clubs Third Quarter Results

Net revenue from Mocha Clubs totaled US$31.8 million in the third quarter of 2016 as compared to US$36.1 million in the third quarter of 2015. Mocha Clubs generated US$7.0 million of Adjusted EBITDA in the third quarter of 2016 compared with US$8.5 million in the same period in 2015.

Gaming machine handle for the third quarter of 2016 was US$673.4 million, compared with US$724.2 million in the third quarter of 2015. The gaming machine win rate was 4.6% in the third quarter of 2016 versus 4.9% in the third quarter of 2015.

Studio City Third Q ua rter Results

Studio City started operations on October 27, 2015. For the quarter ended September 30, 2016, net revenue at Studio City was US$229.5 million. Studio City generated Adjusted EBITDA of US$52.7 million in the third quarter of 2016. This Adjusted EBITDA for Studio City operations is different from "Consolidated EBITDA" as defined in the US$1.4 billion Studio City senior secured facility agreement ("Studio City Loan Agreement") for financial covenant testing purposes. For reference, in the second quarter of 2016, the Adjusted EBITDA for Studio City operations was US$24.6 million and the Consolidated EBITDA (as defined in the Studio City Loan Agreement) was US$17.8 million.

The Studio City Loan Agreement requires compliance with various minimum financial condition requirements, all of which are based on the Consolidated EBITDA or Cashflow (both as defined in the Studio City Loan Agreement). The first period for which compliance with these minimum financial conditions will be tested is the twelve-month period ending on March 31, 2017. In order for Studio City Company Limited, the borrower under the Studio City Loan Agreement, to meet such financial condition requirements for the twelve-month period ending on March 31, 2017, the ramp-up of Studio City operations must be significantly accelerated by March 31, 2017. The Company is not a guarantor under the Studio City Loan Agreement or the 8.50% senior notes due 2020 issued by Studio City Finance Limited.

Mass market table games drop was US$657.6 million and the mass market table games hold percentage was 25.5% in the third quarter of 2016.

Gaming machine handle was US$587.9 million and the gaming machine win rate was 3.9% in the third quarter of 2016.

Total non-gaming revenue at Studio City in the third quarter of 2016 was US$58.5 million.

C it y of Dreams Manila Third Quarter Results

For the quarter ended September 30, 2016, net revenue at City of Dreams Manila was US$131.0 million compared to US$91.7 million in the third quarter of 2015. City of Dreams Manila generated Adjusted EBITDA of US$45.0 million in the third quarter of 2016 compared to US$24.4 million in the comparable period of 2015. The year-over-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues.

Rolling chip volume totaled US$1.6 billion for the third quarter of 2016 versus US$1.2 billion in the third quarter of 2015. The rolling chip win rate was 4.0% in the third quarter of 2016 versus 2.9% in the third quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop increased to US$146.8 million for the third quarter of 2016, compared with US$116.7 million in the third quarter of 2015. The mass market table games hold percentage was 26.9% in the third quarter of 2016 compared to 27.0% in the third quarter of 2015.

Gaming machine handle for the third quarter of 2016 was US$597.0 million, compared with US$508.4 million in the third quarter of 2015. The gaming machine win rate was 5.8% in the third quarter of 2016 versus 5.7% in the third quarter of 2015.

Total non-gaming revenue at City of Dreams Manila in the third quarter of 2016 was US$26.3 million, compared with US$26.4 million in the third quarter of 2015.                Ot her Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2016 were US$63.6 million, which mainly included interest expenses, net of capitalized interest, of US$56.4 million, other finance costs of US$14.5 million and net foreign exchange gain of US$5.2 million. We recorded US$6.6 million of capitalized interest during the third quarter of 2016, primarily relating to the development of the fifth hotel tower at City of Dreams.

The year-on-year increase of US$29.0 million in net non-operating expenses was primarily due to lower capitalized interest and capitalized amortization of deferred financing costs, partially offset by the net foreign exchange gain in the current quarter.

Depreciation and amortization costs of US$137.1 million were recorded in the third quarter of 2016, of which US$14.3 million was related to the amortization of our gaming subconcession and US$5.7 million was related to the amortization of land use rights.

Financial Position and Capital Expenditure

Total cash and bank balances as of September 30, 2016 totaled US$1.9 billion, including US$92.8 million of bank deposits with original maturity over three months and US$202.6 million of restricted cash, primarily related to Studio City. Total debt, net of unamortized deferred financing costs at the end of the third quarter of 2016, was US$3.8 billion.

Capital expenditures for the third quarter of 2016 were US$108.5 million, which predominantly related to various projects at City of Dreams, including the fifth hotel tower development.

Shareholders and potential investors of Melco Crown Entertainment are advised not to place undue reliance on the unaudited earnings and financial information of the Company for the third quarter of 2016. Shareholders and potential investors of the Company are advised to exercise caution in dealing in the securities of the Company.

Dividen d Declaration

On November 3, 2016, our Board considered and approved the declaration and payment of a quarterly dividend of US$0.0126 per share (equivalent to US$0.0378 per ADS) for the third quarter of 2016 (the "Quarterly Dividend"). The Quarterly Dividend will be paid on or about Wednesday, November 30, 2016 to our shareholders whose names appear on the register of members of the Company at the close of business on Tuesday, November 15, 2016, being the record date for determination of entitlements to the Quarterly Dividend.

Other Information

In relation to the additional development project at Studio City, in October 2016, we filed an application with the Macau government requesting an extension of the development period under Studio City's land concession contract. The application is currently under review by the Macau government.

C onference Call Information

Melco Crown Entertainment will hold a conference call to discuss its third quarter 2016 financial results on Thursday, November 3, 2016 at 8:30 a.m. Eastern Time (8:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:
      US Toll Free         1 866 519 4004
      US Toll / International         1 845 675 0437
      HK Toll         852 3018 6771
      HK Toll Free         800 906 601
      UK Toll Free         080 8234 6646
      Australia Toll         61 290 833 212
      Australia Toll Free         1 800 411 623
      Philippines Toll Free         1 800 1651 0607
                 
      Passcode         MPEL

An audio webcast will also be available at http://www.melco-crown.com.

To access the replay, please use the dial-in details below:
      US Toll Free         1 855 452 5696
      US Toll / International         1 646 254 3697
      HK Toll Free         800 963 117
      Philippines Toll Free         1 800 1612 0166
                 
      Conference ID         1587898
                 

S afe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) growth of the gaming market and visitation in Macau and the Philippines, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and other governmental approvals and regulations, and (vi) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

N on-GAAP Financial Measures
  1. "Adjusted EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the " Philippine Parties"), land rent to Belle Corporation, net gain on disposal of property and equipment to Belle Corporation and other non-operating income and expenses. "Adjusted property EBITDA" is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and others, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, net gain on disposal of property and equipment to Belle Corporation, Corporate and Others expenses and other non-operating income and expenses. Adjusted EBITDA and adjusted property EBITDA are presented exclusively as a supplemental disclosure because management believes that they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted EBITDA and adjusted property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents adjusted EBITDA and adjusted property EBITDA because they are used by some investors as ways to measure a company's ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported adjusted EBITDA and adjusted property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, adjusted EBITDA and adjusted property EBITDA should not be considered as alternatives to operating income as indicators of the Company's performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income, adjusted EBITDA and adjusted property EBITDA do not include depreciation and amortization or interest expense and therefore do not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using adjusted EBITDA and adjusted property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.Such U.S. GAAP measurements include operating income, net income, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in adjusted EBITDA or adjusted property EBITDA. Also, the Company's calculation of adjusted EBITDA and adjusted property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted EBITDA and adjusted property EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.
  2. "Adjusted net  income" is net income before net gain on disposal of property and equipment to Belle Corporation, pre-opening costs,  development costs, property charges and others, loss on extinguishment of debt and costs associated with debt modification, net of noncontrolling interests and taxes calculated using specific tax treatment applicable to the adjustments based on their respective jurisdictions. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment per share ( " EPS") are presented as supplemental disclosures because management believes that they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Melco Crown Entertainment and adjusted net income attributable to Melco Crown Entertainment per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income attributable to Melco Crown Entertainment with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

A b out Melco Crown Entertainment Limited

Melco Crown Entertainment, with its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ:MPEL), is a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia. Melco Crown Entertainment currently operates Altira Macau ( www.altiramacau.com), a casino hotel located at Taipa, Macau and City of Dreams ( www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. Melco Crown Entertainment's business also includes the Mocha Clubs ( www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City ( www.studiocity-macau.com), a cinematically-themed integrated entertainment, retail and gaming resort in Cotai, Macau. In the Philippines, Melco Crown (Philippines) Resorts Corporation's subsidiary, MCE Leisure (Philippines) Corporation, currently operates and manages City of Dreams Manila ( www.cityofdreams.com.ph), a casino, hotel, retail and entertainment integrated resort in the Entertainment City complex in Manila. For more information about Melco Crown Entertainment, please visit www.melco-crown.com.

Melco Crown Entertainment is strongly supported by its single largest shareholder, Melco International Development Limited ( "Melco") and its other major shareholder, Crown Resorts Limited ( "Crown"). Melco is a listed company on the Main Board of The Stock Exchange of Hong Kong Limited and is substantially owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of Melco Crown Entertainment. Crown is a top-100 company listed on the Australian Securities Exchange and led by Mr. James Packer, who is the Deputy Chairman and a Non-executive Director of Melco Crown Entertainment. 

For investment community, please contact:

Ross DunwoodyVice President, Investor RelationsTel: +853 8868 7575 or +852 2598 3689Email: rossdunwoody@melco-crown.com 

For media enquiries, please contact:

Maggie MaSenior Vice President, Corporate Communications and Public RelationsTel: +853 8868 3767 or +852 3151 3767Email: maggiema@melco-crown.com 
                         
Melco Crown Entertainment Limited and Subsidiaries  
Condensed Consolidated Statements of Operations  
(In thousands of U.S. dollars, except share and per share data)  
                         
    Three Months Ended   Nine Months Ended  
    September 30,   September 30,  
    2016   2015   2016   2015  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
                         
OPERATING REVENUES                        
Casino $     1,060,035      $      900,468      $      3,076,823      $      2,786,170    
Rooms       68,082           45,577           195,951           138,591    
Food and beverage       47,240           30,324           129,611           89,213    
Entertainment, retail and others       54,063           28,360           145,118           76,063    
Gross revenues       1,229,420           1,004,729           3,547,503           3,090,037    
Less: promotional allowances       (76,867 )         (58,999 )         (220,985 )         (173,267 )  
Net revenues       1,152,553           945,730           3,326,518           2,916,770    
                         
OPERATING COSTS AND EXPENSES                        
Casino       (733,997 )         (621,333 )         (2,154,024 )         (1,962,154 )  
Rooms       (8,537 )         (5,475 )         (24,958 )         (15,341 )  
Food and beverage       (13,074 )         (8,339 )         (47,569 )         (24,024 )  
Entertainment, retail and others       (27,865 )         (18,237 )         (82,491 )         (51,528 )  
General and administrative       (112,065 )         (91,373 )         (326,081 )         (273,733 )  
Payments to the Philippine Parties       (9,066 )         (4,721 )         (24,475 )         (11,994 )  
Pre-opening costs       (1,489 )         (46,388 )         (2,212 )         (115,671 )  
Development costs       -            (36 )         (7 )         (57 )  
Amortization of gaming subconcession       (14,309 )         (14,309 )         (42,928 )         (42,928 )  
Amortization of land use rights       (5,704 )         (16,117 )         (17,112 )         (48,353 )  
Depreciation and amortization       (117,059 )         (83,833 )         (354,704 )         (249,400 )  
Property charges and others       (451 )         (1,500 )         (2,809 )         (5,339 )  
Total operating costs and expenses       (1,043,616 )         (911,661 )         (3,079,370 )         (2,800,522 )  
OPERATING INCOME       108,937           34,069           247,148           116,248    
NON-OPERATING INCOME (EXPENSES)                        
Interest income       1,210           4,237           4,213           10,771    
Interest expenses, net of capitalized interest       (56,378 )         (23,244 )         (167,397 )         (74,214 )  
Other finance costs       (14,549 )         (9,547 )         (42,452 )         (31,839 )  
Foreign exchange gain (loss), net       5,245           (6,456 )         10,275           (3,537 )  
Other income, net       917           501           2,636           1,582    
Loss on extinguishment of debt       -            -            -            (481 )  
Costs associated with debt modification       -            (47 )         -            (592 )  
Total non-operating expenses, net       (63,555 )         (34,556 )         (192,725 )         (98,310 )  
INCOME (LOSS) BEFORE INCOME TAX       45,382           (487 )         54,423           17,938    
INCOME TAX EXPENSE       (1,662 )         (387 )         (4,016 )         (765 )  
NET INCOME (LOSS)       43,720           (874 )         50,407           17,173    
NET LOSS ATTRIBUTABLE TO                         
  NONCONTROLLING INTERESTS       18,323           34,077           82,223           100,913    
NET INCOME ATTRIBUTABLE TO                         
  MELCO CROWN ENTERTAINMENT LIMITED $     62,043      $      33,203      $      132,630      $      118,086    
                         
NET INCOME ATTRIBUTABLE TO                         
  MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:                    
Basic $     0.042     $     0.021     $     0.086     $     0.073    
Diluted     0.042     $     0.020     $     0.086     $     0.073    
                         
NET INCOME ATTRIBUTABLE TO                         
  MELCO CROWN ENTERTAINMENT LIMITED PER ADS:                    
Basic $     0.127     $     0.062     $     0.259     $     0.219    
Diluted $     0.126     $     0.061     $     0.258     $     0.218    
                         
WEIGHTED AVERAGE SHARES USED IN                         
  NET INCOME ATTRIBUTABLE TO                         
  MELCO CROWN ENTERTAINMENT LIMITED                        
  PER SHARE CALCULATION:                        
Basic        1,463,450,519           1,617,905,348           1,534,527,893           1,617,033,893    
Diluted       1,471,515,182           1,627,096,350           1,542,641,243           1,627,249,911    
                         

 
           
Melco Crown Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
           
           
    September 30,   December 31,
      2016     2015
    (Unaudited)     (Note)
           
ASSETS          
           
CURRENT ASSETS          
Cash and cash equivalents  $      1,631,447      $      1,611,026  
Bank deposits with original maturity over three months       92,819           724,736  
Restricted cash       202,600           317,118  
Accounts receivable, net       189,307           271,627  
Amounts due from affiliated companies       1,394           1,175  
Amount due from a shareholder       164           -   
Deferred tax assets       -            19  
Income tax receivable       -            62  
Inventories       33,667           33,074  
Prepaid expenses and other current assets       69,507           61,324  
Total current assets       2,220,905           3,020,161  
           
PROPERTY AND EQUIPMENT, NET       5,714,021           5,760,229  
GAMING SUBCONCESSION, NET       327,629           370,557  
INTANGIBLE ASSETS       4,220           4,220  
GOODWILL       81,915           81,915  
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS       170,027           192,012  
DEFERRED TAX ASSETS       121           83  
LAND USE RIGHTS, NET       816,020           833,132  
TOTAL ASSETS  $      9,334,858      $      10,262,309  
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
CURRENT LIABILITIES          
Accounts payable  $      17,783      $      15,588  
Accrued expenses and other current liabilities       1,299,913           1,056,850  
Income tax payable       5,242           3,487  
Capital lease obligations, due within one year        31,036           29,792  
Current portion of long-term debt, net       201,911           102,836  
Amount due to ultimate holding company       20           -   
Amounts due to affiliated companies       2,770           2,464  
Total current liabilities       1,558,675           1,211,017  
           
LONG-TERM DEBT, NET       3,583,260           3,712,396  
OTHER LONG-TERM LIABILITIES       46,868           80,962  
DEFERRED TAX LIABILITIES       54,934           55,598  
CAPITAL LEASE OBLIGATIONS, DUE AFTER ONE YEAR       269,112           270,477  
           
SHAREHOLDERS' EQUITY          
Ordinary shares       14,759           16,309  
Treasury shares       (124 )         (275 )
Additional paid-in capital       2,776,599           3,075,459  
Accumulated other comprehensive losses        (23,248 )         (21,934 )
Retained earnings       546,090           1,270,074  
Total Melco Crown Entertainment Limited shareholders' equity       3,314,076           4,339,633  
Noncontrolling interests       507,933           592,226  
Total equity       3,822,009           4,931,859  
TOTAL LIABILITIES AND EQUITY  $      9,334,858     $     10,262,309  
           
Note: The Company adopted the new guidance on simplifying the presentation of debt issuance costs issued by Financial Accounting Standards Board on a retrospective basis.  As a result, debt issuance costs of $143,804 related to the Company's non-current portion of long-term debt (excluding revolving credit facilities) were reclassified from deferred financing costs, net to a direct reduction of the long-term debt, net; debt issuance costs of $3,669 related to the Company's current portion of long-term debt (excluding revolving credit facilities) were reclassified from deferred financing costs, net to a direct reduction of the current portion of long-term debt, net; and debt issuance costs of $32,335 related to the Company's revolving credit facilities were reclassified from deferred financing costs, net to long-term prepayments, deposits and other assets in the accompanying condensed consolidated balance sheet as of December 31, 2015. 

 
                             
Melco Crown Entertainment Limited and Subsidiaries  
Reconciliation of Net Income Attributable to Melco Crown Entertainment Limited to    
Adjusted Net Income Attributable to Melco Crown Entertainment Limited  
(In thousands of U.S. dollars, except share and per share data)  
                             
  Three Months Ended   Nine Months Ended  
  September 30,   September 30,  
  2016     2015   2016   2015
  (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)  
                             
Net Income Attributable to                             
  Melco Crown Entertainment Limited $   62,043     $   33,203     $     132,630     $   118,086  
Net Gain on Disposal of Property and Equipment                            
  to Belle Corporation     -          -            (8,134 )       -   
Pre-opening Costs     1,489         46,388           2,212         115,671  
Development Costs     -          36           7         57  
Property Charges and Others     451         1,500           2,809         5,339  
Loss on Extinguishment of Debt     -          -            -          481  
Costs Associated with Debt Modification     -          47           -          592  
Income Tax Impact on Adjustments         (79 )       (14 )     (250 )
Noncontrolling Interests Impact on Adjustments   (1,181 )     (21,165 )       344       (48,874 )
Adjusted Net Income Attributable to                            
Melco Crown Entertainment Limited $   62,802     $   59,930     $     129,854     $   191,102  
                             
ADJUSTED NET INCOME ATTRIBUTABLE TO                            
  MELCO CROWN ENTERTAINMENT LIMITED PER SHARE:                            
Basic  $   0.043     $   0.037     $     0.085     $   0.118  
Diluted $   0.043     $   0.037     $     0.084     $   0.117  
                             
ADJUSTED NET INCOME ATTRIBUTABLE TO                            
  MELCO CROWN ENTERTAINMENT LIMITED PER ADS:                            
Basic  $   0.129     $   0.111     $     0.254     $   0.355  
Diluted $   0.128     $   0.110     $     0.253     $   0.352  
                             
WEIGHTED AVERAGE SHARES USED IN ADJUSTED                             
  NET INCOME ATTRIBUTABLE TO                             
  MELCO CROWN ENTERTAINMENT LIMITED                            
  PER SHARE CALCULATION:                            
Basic      1,463,450,519         1,617,905,348           1,534,527,893         1,617,033,893  
Diluted     1,471,515,182         1,627,096,350           1,542,641,243         1,627,249,911  
                             

 
Melco Crown Entertainment Limited and Subsidiaries  
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA  
(In thousands of U.S. dollars)  
                                           
                                           
  Three Months Ended September 30, 2016  
  AltiraMacau   Mocha   City ofDreams   Studio City   City of Dreams Manila   Corporate and Others   Total  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                                           
Operating Income (Loss) $   8,284   $   3,948   $   125,753   $     5,913     $     13,098     $     (48,059 )   $   108,937  
                                           
  Payments to the Philippine Parties     -        -        -          -            9,066           -          9,066  
  Land Rent to Belle Corporation     -        -        -          -            838           -          838  
  Pre-opening Costs     -        -        6         1,483           -            -          1,489  
  Depreciation and Amortization     5,718       3,038       43,888         44,794           22,038           17,596         137,072  
  Share-based Compensation     45       47       712         304           (61 )         3,417         4,464  
  Property Charges and Others     -        -        -          212           33           206         451  
Adjusted EBITDA     14,047       7,033       170,359         52,706           45,012           (26,840 )       262,317  
  Corporate and Others Expenses     -        -        -          -            -            26,840         26,840  
Adjusted Property EBITDA $   14,047    $    7,033    $    170,359    $      52,706      $      45,012      $      -       $    289,157  
                                           
                                           
  Three Months Ended September 30, 2015  
  AltiraMacau   Mocha   City ofDreams   Studio City   City of Dreams Manila   Corporate and Others   Total  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                                           
Operating Income (Loss)  $   5,654   $   5,423   $ 139,444   $     (57,785 )   $     (7,129 )   $   (51,538 )   $ 34,069  
                                           
  Payments to the Philippine Parties     -        -        -          -            4,721           -          4,721  
  Land Rent to Belle Corporation     -        -        -          -            854           -          854  
  Pre-opening Costs     -        -        9         45,395           (145 )         1,129       46,388  
  Development Costs     -        -        -          -            -            36         36  
  Depreciation and Amortization     7,608       3,036       51,491         10,946           24,173           17,005       114,259  
  Share-based Compensation     29       22       546         101           1,900           3,245       5,843  
  Property Charges and Others     -        -        -          1,016           -            484         1,500  
Adjusted EBITDA     13,291       8,481       191,490         (327 )         24,374           (29,639 )       207,670  
  Corporate and Others Expenses     -        -        -          -            -            29,639         29,639  
Adjusted Property EBITDA $   13,291    $    8,481    $    191,490    $      (327 )    $      24,374      $      -       $    237,309  
                                           

 
Melco Crown Entertainment Limited and Subsidiaries
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to  
Net Income Attributable to Melco Crown Entertainment Limited
(In thousands of U.S. dollars)
                       
      Three Months Ended
      September 30,
          2016   2015
          (Unaudited)   (Unaudited)
                       
Adjusted Property EBITDA             $     289,157     $   237,309  
Corporate and Others Expenses                   (26,840 )       (29,639 )
Adjusted EBITDA                   262,317         207,670  
Payments to the Philippine Parties                   (9,066 )         (4,721 )
Land Rent to Belle Corporation                   (838 )         (854 )
Pre-opening Costs                   (1,489 )       (46,388 )
Development Costs                   -          (36 )
Depreciation and Amortization                   (137,072 )       (114,259 )
Share-based Compensation                   (4,464 )       (5,843 )
Property Charges and Others                   (451 )       (1,500 )
Interest and Other Non-Operating Expenses, Net                   (63,555 )       (34,556 )
Income Tax Expense                   (1,662 )         (387 )
Net Income (Loss)                   43,720         (874 )
Net Loss Attributable to Noncontrolling Interests                   18,323           34,077  
Net Income Attributable to Melco Crown Entertainment Limited           $   62,043     $   33,203  

 
                                             
Melco Crown Entertainment Limited and Subsidiaries 
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA
(In thousands of U.S. dollars)
                                             
                                             
    Nine Months Ended September 30, 2016  
  AltiraMacau   Mocha   City ofDreams   Studio City   City of Dreams Manila   Corporate and Others   Total  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)     (Unaudited)    
                                             
Operating (Loss) Income $   (15,681 )   $ 9,101   $ 420,191   $   (38,472 )   $   18,788     $   (146,779 )   $ 247,148    
                                         
Payments to the Philippine Parties     -       -     -       -         24,475         -       24,475    
Land Rent to Belle Corporation     -       -     -       -         2,524         -       2,524    
Net Gain on Disposal of Property and                                                            
Equipment to Belle Corporation     -       -     -       -         (8,134 )       -       (8,134 )  
Pre-opening Costs     -       -     308       1,904         -         -       2,212    
Development Costs     -       -     -       -         -         7       7    
Depreciation and Amortization     17,298       9,124     131,171       134,259         69,946         52,946       414,744    
Share-based Compensation     15       129     1,753       746         1,970         10,135       14,748    
Property Charges and Others     197       -     191       894         567         960       2,809    
Adjusted EBITDA     1,829       18,354     553,614       99,331         110,136         (82,731 )     700,533    
Corporate and Others Expenses     -       -     -       -         -         82,731       82,731    
Adjusted Property EBITDA $   1,829     $ 18,354   $ 553,614   $   99,331     $   110,136     $   -     $ 783,264    
                                         
                                         
    Nine Months Ended September 30, 2015  
  AltiraMacau   Mocha   City ofDreams   Studio City   City of Dreams Manila   Corporate and Others     Total    
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                                         
Operating Income (Loss) $   4,308     $ 14,474   $ 448,937   $   (114,284 )   $   (78,826 )   $   (158,361 )   $ 116,248    
                                         
Payments to the Philippine Parties     -       -     -       -         11,994         -       11,994    
Land Rent to Belle Corporation     -       -     -       -         2,634         -       2,634    
Pre-opening Costs     -       -     388       79,285         27,907         8,091       115,671    
Development Costs     -       -     -       -         -         57       57    
Depreciation and Amortization     22,196       9,312     155,232       32,738         70,893         50,310       340,681    
Share-based Compensation     88       64     1,414       203         5,284         8,571       15,624    
Property Charges and Others     -       -     301       1,016         -         4,022       5,339    
Adjusted EBITDA     26,592       23,850     606,272       (1,042 )       39,886         (87,310 )     608,248    
Corporate and Others Expenses     -       -     -       -         -         87,310       87,310    
Adjusted Property EBITDA $   26,592     $ 23,850   $ 606,272   $   (1,042 )   $   39,886     $   -     $ 695,558    
                                         

 
Melco Crown Entertainment Limited and Subsidiaries  
Reconciliation of Adjusted EBITDA and Adjusted Property EBITDA to  
Net Income Attributable to Melco Crown Entertainment Limited  
(In thousands of U.S. dollars)  
                         
      Nine Months Ended  
      September 30,  
          2016   2015  
          (Unaudited)   (Unaudited)  
                         
Adjusted Property EBITDA             $     783,264     $     695,558    
Corporate and Others Expenses                   (82,731 )         (87,310 )  
Adjusted EBITDA                   700,533           608,248    
Payments to the Philippine Parties                   (24,475 )         (11,994 )  
Land Rent to Belle Corporation                   (2,524 )         (2,634 )  
Net Gain on Disposal of Property and Equipment                        
to Belle Corporation                   8,134           -     
Pre-opening Costs                   (2,212 )         (115,671 )  
Development Costs                   (7 )         (57 )  
Depreciation and Amortization                   (414,744 )         (340,681 )  
Share-based Compensation                   (14,748 )         (15,624 )  
Property Charges and Others                   (2,809 )         (5,339 )  
Interest and Other Non-Operating Expenses, Net                   (192,725 )         (98,310 )  
Income Tax Expense                   (4,016 )         (765 )  
Net Income                   50,407           17,173    
Net Loss Attributable to Noncontrolling Interests                   82,223           100,913    
Net Income Attributable to Melco Crown Entertainment Limited           $     132,630     $     118,086    

 
                                   
  Melco Crown Entertainment Limited and Subsidiaries  
  Supplemental Data Schedule  
                                   
            Three Months Ended   Nine Months Ended          
            September 30,   September 30,          
              2016       2015       2016       2015            
Room Statistics:                              
  Altira Macau                              
    Average daily rate (3)     $   200     $   200     $   204     $   212            
    Occupancy per available room       96 %     99 %     94 %     99 %          
    Revenue per available room (4)     $   192     $   197     $   192     $   209            
                                   
  City of Dreams                              
    Average daily rate (3)     $   199     $   196     $   198     $   200            
    Occupancy per available room       97 %     99 %     95 %     99 %          
    Revenue per available room (4)     $   193     $   195     $   189     $   198            
                                   
  Studio City                              
    Average daily rate (3)     $   137     N/A     $   135      N/A             
    Occupancy per available room       99 %   N/A       97 %    N/A             
    Revenue per available room (4)     $   136     N/A     $   131      N/A             
                                   
                                   
  City of Dreams Manila                            
    Average daily rate (3)     $   158     $   168     $   161     $   200            
    Occupancy per available room       92 %     88 %     90 %     85 %          
    Revenue per available room (4)     $   146     $   148     $   144     $   170            
                                   
Other Information:                              
  Altira Macau                              
    Average number of table games       117         127         123         124            
    Average number of gaming machines       61         53         62         56            
    Table games win per unit per day (5)   $   15,745     $   15,796     $   13,448     $   17,685            
    Gaming machines win per unit per day (6)   $   104     $   136     $   93     $   101            
                                   
  City of Dreams                              
    Average number of table games       489         493         496         498            
    Average number of gaming machines       1,037         1,147         1,054         1,164            
    Table games win per unit per day (5)   $   14,471     $   15,041     $   14,931     $   16,424            
    Gaming machines win per unit per day (6)   $   363     $   417     $   355     $   417            
                                   
  Studio City                              
    Average number of table games       245      N/A          245      N/A             
    Average number of gaming machines       1,098      N/A          1,095      N/A             
    Table games win per unit per day (5)   $   7,446      N/A      $   6,358      N/A             
    Gaming machines win per unit per day (6)   $   229      N/A      $   186      N/A             
                                   
  City of Dreams Manila                            
    Average number of table games       262         276         269         258            
    Average number of gaming machines       1,656         1,721         1,646         1,726            
    Table games win per unit per day (5)   $   4,237     $   2,646     $   3,723     $   1,946            
    Gaming machines win per unit per day (6)   $   226     $   184     $   204     $   171            
                                   
                                   
    (3) Average daily rate is calculated by dividing total room revenue including the retail value of promotional allowances by total occupied rooms including complimentary rooms  
    (4) Revenue per available room is calculated by dividing total room revenue including the retail value of promotional allowances by total rooms available      
    (5) Table games win per unit per day is shown before discounts and commissions                  
    (6) Gaming machines win per unit per day is shown before deducting cost for slot points