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Mohegan Gaming & Entertainment Announces Fourth Quarter Fiscal 2017 Operating Results

21/11/2017 05:30

Source: PR News

Category: Tourismembassy News

UNCASVILLE, Conn., Nov. 21, 2017 /PRNewswire/ -- 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,

September 30,


Percentage

2017

2016

Variance

 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,

September 30,


Percentage

2017

2016

Variance

 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,

September 30,


Percentage

2017

2016

Variance

 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,

September 30,


Percentage

2017 (1)

2016

Variance

 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,

September 30,


Percentage

2017

2016

Variance

 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,

September 30,


Percentage

2017

2016

Variance

 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,

September 30,


Percentage

2017 (1)

2016

Variance

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