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Mohegan Gaming & Entertainment Announces First Quarter Fiscal 2021 Operating Results


UNCASVILLE, Conn., Feb. 11, 2021 /PRNewswire/ — Mohegan Gaming & Leisure (“MGE” or the “Firm”), a grasp developer and operator of premier world built-in leisure resorts, together with Mohegan Solar in Uncasville, Connecticut, Mohegan Solar Pocono in Plains Township, Pennsylvania, the MGE Niagara Resorts in Niagara Falls, Canada and INSPIRE Leisure Resort in Incheon, South Korea, introduced as we speak working outcomes for its first fiscal quarter ended December 31, 2020.

“As we transfer via the early a part of 2021, we now have a watch on a broader trade restoration and I’m assured in MGE’s place to learn from it,” stated Mario Kontomerkos, President and Chief Government Officer of MGE. “Efficiency within the fiscal first quarter was difficult as COVID instances climbed considerably in nearly all of our markets, however the stress we noticed on our revenues and profitability largely started to reverse itself in late December with constructive momentum noticed all through January, most notably at Mohegan Solar.  Regardless of these challenges, adjusted EBITDA margin on the flagship property grew versus the prior-year quarter, reflecting the permanence of great price discount efforts undertaken during the last 12 months.  Subsequent to the tip of the quarter, MGE efficiently accomplished its refinancing which prolonged our nearest maturities, elevated our monetary flexibility, and supplied us with ample liquidity as we transfer ahead.  We stay fairly constructive that our enterprise has been optimized to learn from what we foresee to be important pent-up demand for leisure consumption within the months forward.”

Chosen consolidated working outcomes for the primary quarter ended December 31, 2020 and prior 12 months interval (unaudited):

  • Web revenues of $230.8 million vs. $399.1 million within the prior 12 months interval, a 42.2% lower;
  • Revenue from operations of $10.6 million vs. $43.4 million within the prior 12 months interval, a 75.6% lower; and
  • Adjusted EBITDA of $40.4 million vs. $75.1 million within the prior 12 months interval, a 46.2% lower.

Consolidated web revenues decreased 42.2% because the trade skilled a brief sequential softening of gaming demand as COVID an infection charges elevated all through our working areas, including to the damaging affect of ongoing COVID-related closures and reductions in capability.  Importantly, visitation and income developments began to enhance into the tip of the calendar 12 months, with the constructive momentum persevering with into the present quarter. Moreover, MGE was additional impacted as Mohegan Solar Pocono was briefly closed for 23 days in December and early January, whereas MGE Niagara Resorts remained closed for the whole quarter.  Adjusted EBITDA decreased 46.2% through the quarter, reflecting the affect of the property closures famous above and the continued affect of ongoing COVID-related closures and reductions in capability.  Excluding the affect of the closures of Mohegan Solar Pocono and the MGE Niagara Resorts, decrease desk maintain and unfavorable winter climate situations, web revenues and adjusted EBITDA would have decreased 26.8% and 23.8%, respectively. On an adjusted foundation, adjusted EBITDA margin would have been 24.8% for the quarter, up 97 foundation factors from the prior 12 months, at 23.9%. Regardless of elevated COVID-19 an infection charges, property closures and decrease desk maintain, core margin efficiency was pushed by an general discount in working prices and bills, together with decrease payroll prices and advertising bills.

Mohegan Solar

Working outcomes (in 1000’s, unaudited):



For the Three Months Ended  


December 31,


December 31,




Share


2020


2019


Variance


 Variance

Web revenues

$               165,891


$           243,335


$        (77,444)


(31.8%)

Revenue from operations 

$                 27,247


$             45,065


$        (17,818)


(39.5%)

Adjusted EBITDA

$                 45,050


$             65,098


$        (20,048)


(30.8%)

Web revenues declined 31.8% through the quarter, pushed by sequential declines in each gaming and non-gaming revenues attributable to larger regional an infection charges which briefly impacted demand past the continuing COVID-related closures and voluntary reductions in non-gaming capability.  Gaming revenues through the quarter declined 22.0%, pushed by a 14.7% decline in desk quantity and a 25.1% decline in slot quantity, in addition to decrease than anticipated desk maintain within the interval.  Importantly, general visitation and gaming developments improved in direction of the tip of the calendar 12 months and have continued into the brand new 12 months.  Adjusted EBITDA declined 30.8% for the quarter, reflecting the affect from COVID-related reductions in non-gaming capability and gaming quantity famous above, together with decrease than anticipated desk maintain.  Regardless of these headwinds, adjusted EBITDA margin was 27.2%, up 40 foundation factors from 26.8% within the prior-year quarter.  Adjusting for the affect from decrease than anticipated desk maintain and climate within the quarter, the adjusted EBITDA margin was 30.0%, up roughly 180 foundation factors over the prior 12 months, reflecting the permanence of great price discount efforts undertaken on the property during the last 12 months.   

Mohegan Solar Pocono

Working outcomes (in 1000’s, unaudited):



For the Three Months Ended  


December 31,


December 31,




Share


2020


2019


Variance


 Variance

Web revenues

$                 38,085


$             61,954


$        (23,869)


(38.5%)

Revenue from operations 

$                   1,356


$               7,794


$          (6,438)


(82.6%)

Adjusted EBITDA 

$                   4,624


$             11,209


$          (6,585)


(58.7%)

Web revenues declined 38.5% through the quarter, primarily pushed by the 23-day state-mandated property closure starting December twelfth, which added to income declines ensuing from COVID-related closures and mandated reductions in capability.  Adjusted EBITDA decreased 58.7% through the quarter, reflecting the affect from the state-mandated closure mentioned above, together with decrease than anticipated desk maintain and affect from inclement climate through the interval.  Adjusting for the property closure and decrease than anticipated desk maintain within the quarter, web revenues and adjusted EBITDA would have declined roughly 22.8% and 24.6% respectively within the quarter.

MGE Niagara Resorts

Working outcomes (in 1000’s, unaudited):



For the Three Months Ended  


December 31,


December 31,




Share


2020


2019


Variance


 Variance

Web revenues

$                 12,997


$             84,974


$        (71,977)


(84.7%)

Loss from operations 

$               (12,521)


$              (1,333)


$        (11,188)


N.M.

Adjusted EBITDA 

$                 (7,125)


$               3,811


$        (10,936)


N.M.

______________

(1)

The MGE Niagara Resorts have been briefly closed through the three months ended December 31, 2020 attributable to COVID-19.

      N.M. – Not Significant.

EBITDA losses at MGE Niagara Resorts replicate the affect of the properties being briefly closed for the three months ended December 31, 2020 attributable to restrictive COVID-19 mandated measures applied by the Ontario Authorities.  Regardless of the decline in Adjusted EBITDA, money flows from the MGE Niagara Resorts through the quarter have been roughly breakeven, as Fallsview lease funds have been deferred and the properties proceed to obtain each the Fastened Service Supplier Charge in addition to Permitted Capital Expenditures whereas closed. Efforts to reopen the properties proceed, however we’re unable to foretell when they are going to reopen presently.

Administration, Growth and Different

Working outcomes (in 1000’s, unaudited): 



For the Three Months Ended  


December 31,


December 31,




Share


2020


2019


Variance


 Variance

Web revenues

$                 13,315


$               9,012


$            4,303


47.7%

Revenue (loss) from operations 

$                   2,073


$                 (918)


$            2,991


N.M.

Adjusted EBITDA 

$                   5,418


$               2,130


$            3,288


154.4%

______________

N.M. – Not Significant.

Web revenues elevated attributable to continued development in administration charges from ilani, pushed by continued EBITDA development at that property.  Additionally through the quarter ilani opened its 2,700 house parking storage, marking one other necessary milestone in ilani’s spectacular growth historical past. Adjusted EBITDA efficiency additionally displays larger bills related to ongoing home and worldwide growth efforts.

Company

Working outcomes (in 1000’s, unaudited):



For the Three Months Ended  


December 31,


December 31,




Share


2020


2019


Variance


 Variance

Web revenues

$                      230


$                  108


$               122


113.0%

Loss from operations

$                 (7,538)


$              (7,164)


$             (374)


(5.2%)

Adjusted EBITDA

$                 (7,517)


$              (7,147)


$             (370)


(5.2%)

The decline in adjusted EBITDA was principally attributable to decrease inter-segment labor allocations within the quarter as in comparison with the prior 12 months interval.

MGE Property Info





Web Revenues


Revenue (Loss) from Operations


Adjusted EBITDA

(in 1000’s, unaudited)


      For the Three Months Ended


For the Three Months Ended


For the Three Months Ended




December 31,


December 31,


December 31,


December 31,


December 31,


December 31,




2020


2019


2020


2019


2020


2019

Mohegan Solar



$         165,891


$        243,335


$           27,247


$           45,065


$           45,050


$           65,098

Mohegan Solar Pocono


38,085


61,954


1,356


7,794


4,624


11,209

MGE Niagara Resorts


12,997


84,974


(12,521)


(1,333)


(7,125)


3,811

Administration, growth and different


13,315


9,012


2,073


(918)


5,418


2,130

Company



230


108


(7,538)


(7,164)


(7,517)


(7,147)

Inter-segment 



263


(331)


(7)


(19)


(7)


(19)

Complete



$         230,781


$        399,052


$           10,610


$           43,425


$           40,443


$           75,082















Different Info

Liquidity
As of December 31, 2020 and September 30, 2020, MGE held money and money equivalents of $144.5 million and $112.7 million, respectively. Inclusive of letters of credit score, which cut back borrowing availability, MGE had $0.8 million of borrowing capability beneath its senior secured revolving facility and line of credit score as of December 31, 2020.

Current Developments
Subsequent to the tip of the quarter, on January 26, 2021, MGE issued $1.175 billion of 8.000% second precedence senior secured notes due 2026 (the “Notes”). The Firm additionally entered into a brand new credit score settlement offering for about $263 million in a brand new revolving senior secured credit score facility (the “New Senior Secured Credit score Facility”).

The Firm utilized the proceeds from the Notes and borrowings beneath the New Senior Secured Credit score Facility, along with money readily available, to fund the reimbursement, satisfaction, and discharge of sure present indebtedness of MGE, together with all loans excellent beneath MGE’s earlier senior secured credit score services, all obligations in respect of MGE’s Predominant Avenue time period mortgage facility and MGE’s debt to the Mohegan Tribe in respect of sure subordinated loans, and to pay associated charges and bills.

This is a crucial milestone for MGE and its companions, because it removes all the Firm’s important near-term maturities, with MGE’s nearest important debt maturity now April of 2023, whereas additionally offering MGE with ample liquidity, in these unsure occasions.

Convention Name
MGE will host a convention name relating to its first quarter of fiscal 2021 working outcomes on February 11, 2021 at 11:00 a.m. (Japanese Commonplace Time).

These excited about collaborating on the decision ought to dial as follows:

(866) 901-1124
(918) 922-6131 (Worldwide)

Convention ID: 1173394

Please name 5 minutes upfront to make sure that you’re related previous to the initiation of the decision. Questions and solutions will likely be reserved for call-in analysts and buyers. events additionally could hearken to a taped replay of the whole convention name commencing two hours after the decision’s completion on February 11, 2021. This replay will run via February 25, 2021.

The entry quantity for a taped replay of the convention name is as follows:

(855) 859-2056
(404) 537-3406 (Worldwide)

Convention ID: 1173394

About Mohegan Gaming & Leisure

MGE is primarily engaged within the possession, operation and growth of built-in leisure services, each domestically and internationally, together with: (i) Mohegan Solar in Uncasville, Connecticut, (ii) Mohegan Solar Pocono in Plains Township, Pennsylvania, (iii) Niagara Fallsview On line casino Resort, On line casino Niagara and the 5,000-seat Niagara Falls Leisure Centre, all in Niagara Falls, Canada, (iv) Resorts On line casino Lodge in Atlantic Metropolis, New Jersey, (v) ilani On line casino Resort in Clark County, Washington, (vi) Paragon On line casino Resort in Marksville, Louisiana and (vii) INSPIRE Leisure Resort, a first-of-its-kind, multi-billion greenback built-in resort and on line casino beneath building at Incheon Worldwide Airport in South Korea. For extra info on MGE and our properties, go to www.mohegangaming.com.

Particular Observe Concerning Ahead-Wanting Statements

Some info included on this press launch could comprise forward-looking statements, inside the that means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Change Act of 1934. These statements can generally be recognized by way of forward-looking phrases corresponding to “could,” “will,” “anticipate,” “estimate,” “count on” or “intend” and related expressions. Such forward-looking info could contain necessary dangers and uncertainties that might considerably have an effect on anticipated outcomes sooner or later and, accordingly, such outcomes could differ materially from these expressed in any forward-looking statements made by or on behalf of MGE. Info regarding potential elements that might have an effect on MGE’s monetary outcomes is included in its Annual Report on Kind 10-Okay for the fiscal 12 months ended September 30, 2020, in addition to in MGE’s different reviews and filings with the Securities and Change Fee. Any forward-looking statements included on this press launch are made solely as of the date of this launch. MGE doesn’t undertake any obligation to replace or complement any forward-looking statements to replicate subsequent occasions or circumstances. MGE can’t guarantee that projected outcomes or occasions will likely be achieved or will happen.

MOHEGAN GAMING & ENTERTAINMENT

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in 1000’s) 

(unaudited)









For the


For the




Three Months Ended


Three Months Ended




December 31, 2020


December 31, 2019


Revenues:






Gaming


$                   173,201


$                   264,269


Meals and beverage


11,040


50,532


Lodge


16,524


27,589


Retail, leisure and different 


30,016


56,662


Web revenues


230,781


399,052


Working prices and bills:






Gaming


98,499


157,188


Meals and beverage 


11,486


41,693


Lodge


8,792


11,842


Retail, leisure and different


7,293


24,986


Promoting, basic and administrative


48,714


74,214


Company


11,105


14,090


Depreciation and amortization


25,974


28,544


Different, web


8,308


3,070


Complete working prices and bills


220,171


355,627


Revenue from operations


10,610


43,425


Different revenue (expense):






Curiosity revenue


(2)


751


Curiosity expense, web of capitalized curiosity


(41,885)


(35,356)


    Loss on modification of debt


(72)



Different, web


1,023


(592)


Complete different expense


(40,936)


(35,197)


Revenue (loss) earlier than revenue tax


(30,326)


8,228


Revenue tax profit


3,565


1,196


Web revenue (loss)


(26,761)


9,424


(Revenue) loss attributable to non-controlling pursuits


140


(30)


Web revenue (loss) attributable to Mohegan Gaming & Leisure


$                   (26,621)


$                       9,394








MOHEGAN GAMING & ENTERTAINMENT

ADJUSTED EBITDA RECONCILIATIONS



Reconciliations of Web Revenue (Loss) to Adjusted EBITDA:


Reconciliations of web revenue (loss), a monetary measure decided in accordance with accounting rules usually accepted in america of America, or GAAP, to Adjusted EBITDA are proven beneath (in 1000’s, unaudited):



For the Three Months Ended



December 31,


December 31,



2020


2019






Web revenue (loss) 


$            (26,761)


$              9,424

Revenue tax profit 


(3,565)


(1,196)

Curiosity expense, web of capitalized curiosity


41,885


35,356

Loss on modification of debt


72


Curiosity revenue


2


(751)

Different, web


(1,023)


592

Revenue from operations


10,610


43,425

Adjusted EBITDA attributable to non-controlling pursuits


(73)


(134)

Depreciation and amortization


25,974


28,544

Different, web


3,932


3,247

Adjusted EBITDA


$              40,443


$            75,082

Reconciliations of Revenue (Loss) from Operations to Adjusted EBITDA:


Reconciliations of revenue (loss) from operations, a monetary measure decided in accordance with GAAP, to Adjusted EBITDA, are proven beneath (in 1000’s, unaudited):
















For the Three Months Ended December 31, 2020










Adjusted EBITDA 






Revenue (Loss)


Depreciation




Attributable to 






from


and 




Non-Controlling


Adjusted 




Operations


Amortization


Different, web


Pursuits


EBITDA

Mohegan Solar 


$                27,247


$            17,316


$                 487


$                              –


$          45,050

Mohegan Solar Pocono 


1,356


3,239


29



4,624

MGE Niagara Resorts


(12,521)


5,391


5



(7,125)

Administration, growth and different 


2,073


7


3,411


(73)


5,418

Company


(7,538)


21




(7,517)

Inter-segment


(7)





(7)


Complete


$                10,610


$            25,974


$              3,932


$                            (73)


$          40,443




























For the Three Months Ended December 31, 2019










Adjusted EBITDA 






Revenue (Loss)


Depreciation




Attributable to 






from


and 




Non-Controlling


Adjusted 




Operations


Amortization


Different, web


Pursuits


EBITDA

Mohegan Solar 


$                45,065


$            19,966


$                   67


$                              –


$          65,098

Mohegan Solar Pocono 


7,794


3,477


(62)



11,209

MGE Niagara Resorts


(1,333)


5,054


90



3,811

Administration, growth and different 


(918)


30


3,152


(134)


2,130

Company


(7,164)


17




(7,147)

Inter-segment


(19)





(19)


Complete


$                43,425


$            28,544


$              3,247


$                          (134)


$          75,082

Adjusted EBITDA Clarification:
Web revenue earlier than curiosity, revenue taxes, depreciation and amortization, or EBITDA, is a generally used measure of efficiency within the on line casino and hospitality trade. EBITDA will not be a measure of efficiency calculated in accordance with GAAP. MGE traditionally has evaluated its working efficiency with the non-GAAP measure, Adjusted EBITDA, which as used on this press launch, primarily represents web revenue earlier than curiosity, taxes and depreciation and amortization.

Adjusted EBITDA gives a further method to consider MGE’s operations and, when considered with each MGE’s GAAP outcomes and the reconciliations supplied, MGE believes that it gives a extra full understanding of its enterprise than could possibly be in any other case obtained absent this disclosure. Adjusted EBITDA is offered solely as a supplemental disclosure as a result of: (1) MGE believes it enhances an general understanding of MGE’s previous and present monetary efficiency; (2) MGE believes it’s a great tool for buyers to evaluate the working efficiency of the enterprise compared to different operators inside the on line casino and hospitality trade since Adjusted EBITDA excludes sure gadgets that will not be indicative of MGE’s working outcomes; (3) measures which might be corresponding to Adjusted EBITDA are sometimes used as an necessary foundation for the valuation of on line casino and hospitality firms; and (4) MGE makes use of Adjusted EBITDA internally to guage the efficiency of its working personnel and administration and as a benchmark to guage its working efficiency compared to its opponents.

The usage of Adjusted EBITDA has sure limitations. Adjusted EBITDA ought to be thought-about along with, not as an alternative choice to or superior to, any GAAP monetary measure together with web revenue (as an indicator of MGE’s efficiency) or money flows supplied by working actions (as an indicator of MGE’s liquidity), nor ought to or not it’s thought-about as an indicator of MGE’s general monetary efficiency. MGE’s calculation of Adjusted EBITDA is more likely to be completely different from the calculation of Adjusted EBITDA or different equally titled measurements utilized by different on line casino and hospitality firms, and subsequently, comparability could also be restricted. Adjusted EBITDA eliminates sure gadgets from web revenue, corresponding to curiosity and depreciation and amortization. Every of these things has been incurred up to now, will proceed to be incurred sooner or later and ought to be thought-about within the general analysis of MGE’s outcomes.  MGE compensates for these limitations by offering related disclosures of things excluded within the calculation of Adjusted EBITDA, each in its reconciliations to the GAAP monetary measure of web revenue and in its consolidated monetary statements, all of which ought to be thought-about when evaluating its outcomes. MGE strongly encourages buyers to overview its monetary info in its entirety and to not depend on a single monetary measure.

Contact:
Christopher Jones
Vice President, Company Finance
Mohegan Gaming & Leisure
(860) 862-8000

SOURCE Mohegan Tribal Gaming Authority

Associated Hyperlinks

http://www.mohegangaming.com/



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