Mohegan Tribal Gaming Authority Announces Fourth Quarter Fiscal 2015 Operating Results

19 Nov, 2015, 07:30 ET from Mohegan Tribal Gaming Authority

UNCASVILLE, Conn., Nov. 19, 2015 /PRNewswire/ -- The Mohegan Tribal Gaming Authority, or the Authority, 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, 2015. 

"We are pleased to announce that fiscal 2015 represented the Authority's strongest financial performance in recent history, as all three of our properties in Connecticut, Pennsylvania and New Jersey experienced double digit increases in operating cash flows," said Robert J. Soper, President and Chief Executive Officer of the Authority. "Coinciding with this accomplishment was a substantial improvement to our balance sheet during the year, with total leverage under five times as of September 30, 2015. We look forward to fiscal 2016, as we stand well positioned to benefit from continued diversification initiatives at our existing properties, as well as new opportunities within other domestic and international markets."

Consolidated operating results for the fourth quarter ended September 30, 2015 (unaudited):

  • Net revenues of $339.4 million, relatively flat compared to the fourth quarter of fiscal 2014
  • Gaming revenues of $296.3 million, relatively flat compared to the fourth quarter of fiscal 2014
  • Gross slot revenues of $207.1 million, a 1.2% decrease from the fourth quarter of fiscal 2014
  • Table game revenues of $87.4 million, a 2.3% increase over the fourth quarter of fiscal 2014
  • Non-gaming revenues of $69.0 million, a 2.0% increase over the fourth quarter of fiscal 2014
  • Adjusted EBITDA, a non-GAAP measure described below, of $92.9 million, a 20.4% increase over the fourth quarter of fiscal 2014
  • Adjusted EBITDA margin of 27.4%, a 450 basis point increase over the fourth quarter of fiscal 2014
  • Income from operations of $72.9 million, a 34.8% increase over the fourth quarter of fiscal 2014
  • Net income attributable to the Authority of $36.5 million, an 86.4% increase over the fourth quarter of fiscal 2014

The increases in Adjusted EBITDA, income from operations and net income attributable to the Authority primarily resulted from an overall reduction in operating and corporate costs and expenses and improved table game results at Mohegan Sun and slot results at Mohegan Sun Pocono.

Mohegan Sun

Operating results (in thousands, unaudited): 


For the Three Months Ended  


September 30,


September 30,




Percentage


2015


2014


Variance


 Variance









Adjusted EBITDA

$                 79,672


$           73,588


$          6,084


8.3%

Income from operations

$                 63,638


$           53,866


$          9,772


18.1%

Operating costs and expenses

$               197,469


$         206,957


$        (9,488)


(4.6%)

Net revenues

$               261,107


$         260,823


$             284


0.1%

Gaming revenues

$               226,142


$         226,176


$             (34)


(0.0%)

Non-gaming revenues

$                 55,571


$           55,841


$           (270)


(0.5%)









 

The growth in Adjusted EBITDA and income from operations primarily resulted from lower operating costs and expenses and higher table game revenues. The reduction in operating costs and expenses reflected continued strategic operational and marketing changes designed to enhance operating efficiency and improve profitability resulting in reduced payroll costs and promotional and entertainment expenses. Table game revenues benefited from higher year over year hold percentage. These results were partially offset by lower slot revenues driven by a decline in slot volumes. Adjusted EBITDA margin increased 230 basis points to 30.5% for the quarter ended September 30, 2015 from 28.2% in the fourth quarter of fiscal 2014.

Selected gaming data (in thousands, except where noted, unaudited):


For the Three Months Ended  


September 30,


September 30,




Percentage


2015


2014


Variance


 Variance









Slots:








  Handle

$            1,849,341


$        1,890,079


$        (40,738)


(2.2%)

  Gross revenues 

$               151,333


$           155,324


$          (3,991)


(2.6%)

  Net revenues 

$               146,165


$           149,932


$          (3,767)


(2.5%)

  Free promotional slot plays (1)

$                 15,517


$             16,069


$             (552)


(3.4%)

  Weighted average number of machines (in units)

5,136


5,429


(293)


(5.4%)

  Hold percentage (gross)

8.2%


8.2%


-


-

  Win per unit per day (gross) (in dollars)

$                      320


$                  311


$                   9


2.9%









Table games:








  Drop

$               451,120


$           465,536


$        (14,416)


(3.1%)

  Revenues

$                 76,716


$             74,159


$            2,557


3.4%

  Weighted average number of games (in units)

283


288


(5)


(1.7%)

  Hold percentage (2)

17.0%


15.9%


1.1%


6.9%

  Win per unit per day (in dollars)

$                   2,950


$               2,798


$               152


5.4%









Poker:








  Revenues 

$                   2,268


$               2,471


$             (203)


(8.2%)

  Weighted average number of tables (in units)

42


42


-


-

  Revenue per unit per day (in dollars)

$                      587


$                  640


$               (53)


(8.3%)

___________________________________________








(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


2015


2014


Variance


 Variance









Food and beverage:








  Revenues

$                 15,399


$           15,711


$           (312)


(2.0%)

  Meals served

727


741


(14)


(1.9%)

  Average price per meal served (in dollars)

$                   15.85


$             16.04


$          (0.19)


(1.2%)









Hotel:








  Revenues

$                 11,695


$           11,051


$             644


5.8%

  Rooms occupied

106


107


(1)


(0.9%)

  Occupancy rate

98.5%


98.5%


-


-

  Average daily room rate (in dollars)

$                      102


$                  98


$                 4


4.1%

  Revenue per available room (in dollars)

$                      101


$                  96


$                 5


5.2%









Retail, entertainment and other:








  Revenues

$                 28,477


$           29,079


$           (602)


(2.1%)

  Arena events (in events)

35


31


4


12.9%

  Arena tickets 

199


200


(1)


(0.5%)

  Average price per Arena ticket (in dollars)

$                   43.17


$             49.53


$          (6.36)


(12.8%)

 

Mohegan Sun Pocono

Operating results (in thousands, unaudited):


For the Three Months Ended  


September 30,


September 30,




Percentage


2015


2014


Variance


 Variance









Adjusted EBITDA 

$                 17,306


$           13,554


$          3,752


27.7%

Income from operations

$                 14,394


$           10,401


$          3,993


38.4%

Operating costs and expenses

$                 62,285


$           65,314


$        (3,029)


(4.6%)

Net revenues

$                 76,679


$           75,715


$             964


1.3%

Gaming revenues

$                 70,115


$           69,433


$             682


1.0%

Non-gaming revenues

$                 11,771


$           11,458


$             313


2.7%

 

The increases in Adjusted EBITDA and income from operations primarily resulted from reduced operating costs and expenses and higher slot revenues. The reduction in operating costs and expenses included lower property taxes, while slot revenues benefited from increased volumes. Adjusted EBITDA margin increased 470 basis points to 22.6% for the quarter ended September 30, 2015 from 17.9% in the fourth quarter of fiscal 2014.

Selected gaming data (in thousands, except where noted, unaudited):   


For the Three Months Ended  


September 30,


September 30,




Percentage


2015


2014


Variance


 Variance









Slots:








  Handle

$               692,710


$            656,389


$        36,321


5.5%

  Gross revenues

$                 55,796


$              54,276


$          1,520


2.8%

  Net revenues

$                 55,794


$              54,313


$          1,481


2.7%

  Free promotional slot plays (1)

$                 12,687


$              12,184


$             503


4.1%

  Weighted average number of machines (in units)

2,332


2,330


2


0.1%

  Hold percentage (gross)

8.1%


8.3%


(0.2%)


(2.4%)

  Win per unit per day (gross) (in dollars)

$                      260


$                   253


$                 7


2.8%









Table games:








  Drop

$                 56,562


$              58,768


$        (2,206)


(3.8%)

  Revenues

$                 10,640


$              11,229


$           (589)


(5.2%)

  Weighted average number of games (in units)

73


69


4


5.8%

  Hold percentage (2)

18.8%


19.1%


(0.3%)


(1.6%)

  Win per unit per day (in dollars)

$                   1,584


$                1,769


$           (185)


(10.5%)









Poker:








  Revenues 

$                      704


$                   768


$             (64)


(8.3%)

  Weighted average number of tables (in units)

18


18


-


-

  Revenue per unit per day (in dollars)

$                      425


$                   464


$             (39)


(8.4%)

___________________________________________








(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


2015


2014


Variance


 Variance









Food and beverage:








  Revenues

$                   7,510


$             7,339


$             171


2.3%

  Meals served

186


195


(9)


(4.6%)

  Average price per meal served (in dollars)

$                   17.44


$             17.26


$            0.18


1.0%









Hotel:








  Revenues

$                   1,602


$             1,496


$             106


7.1%

  Rooms occupied

21


21


-


-

  Occupancy rate

98.5%


94.8%


3.7%


3.9%

  Average daily room rate (in dollars)

$                        69


$                  68


$                 1


1.5%

  Revenue per available room (in dollars)

$                        68


$                  64


$                 4


6.3%









Retail, entertainment and other:   








  Revenues

$                   2,659


$             2,623


$               36


1.4%

 

Corporate

Operating results (in thousands, unaudited):


For the Three Months Ended  


September 30,


September 30,




Percentage


2015


2014


Variance


 Variance









Adjusted EBITDA 

$                 (4,055)


$           (9,975)


$          5,920


59.3%

Loss from operations

$                 (5,136)


$         (10,197)


$        (5,061)


(49.6%)

Operating costs and expenses

$                   8,049


$           11,808


$        (3,759)


(31.8%)

Net revenues

$                   2,913


$             1,611


$          1,302


80.8%

 

The decrease in loss from operations was primarily attributable to the decline in operating costs and expenses which resulted from reduced expenditures associated with our pursuit of a Massachusetts casino license, partially offset by additional expenditures related to our pursuit of a casino license in South Korea. The decline in loss from operations also reflected increased management fees earned in connection with our joint venture and management arrangement with Resorts Casino Hotel.

Mohegan Tribal Gaming Authority Property Information




Adjusted EBITDA


Income (Loss) from Operations


Net Revenues

(in thousands, unaudited)


For the Three Months Ended


For the Three Months Ended


      For the Three Months Ended




September 30,


September 30,


September 30,


September 30,


September 30,


September 30,




2015


2014


2015


2014


2015


2014

Mohegan Sun


$           79,672


$           73,588


$           63,638


$           53,866


$         261,107


$        260,823

Mohegan Sun Pocono


17,306


13,554


14,394


10,401


76,679


75,715

Corporate


(4,055)


(9,975)


(5,136)


(10,197)


2,913


1,611

Inter-segment revenues


-


-


-


-


(1,273)


(1,273)















Total


$           92,923


$           77,167


$           72,896


$           54,070


$         339,426


$        336,876






























Adjusted EBITDA


Income (Loss) from Operations


Net Revenues




For the Fiscal Year Ended


For the Fiscal Year Ended


For the Fiscal Year Ended




September 30,


September 30,


September 30,


September 30,


September 30,


September 30,




2015


2014


2015


2014


2015


2014

Mohegan Sun 


$         284,091


$         251,077


$         212,211


$         181,325


$         994,010


$        995,100

Mohegan Sun Pocono


57,946


50,596


45,817


36,956


295,135


296,578

Corporate


(22,380)


(35,505)


(24,853)


(36,873)


7,567


5,391

Inter-segment revenues


-


-


-


-


(5,092)


(4,351)















Total


$         319,657


$         266,168


$         233,175


$         181,408


$      1,291,620


$     1,292,718















 

Other Information

Liquidity
As of September 30, 2015, the Authority held cash and cash equivalents of $­65.8 million compared to $49.1 million as of September 30, 2014. As of September 30, 2015, $21.0 million was drawn on the Authority's $100 million revolving credit facility, while no amounts were drawn on the Authority's $16.5 million line of credit. As of September 30, 2015, letters of credit issued under the Authority's revolving credit facility totaled $3.0 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the Authority's revolving credit facility, and after taking into account restrictive financial covenant requirements, the Authority had approximately $76.0 million of borrowing capacity under its revolving credit facility and line of credit as of September 30, 2015. 

Long-term Debt
Long-term debt consisted of the following (in thousands, including current maturities):


September 30,


September 30,


2015


2014

Senior Secured Credit Facility - Revolving, due June 2018

$            21,000


$          37,000

Senior Secured Credit Facility - Term Loan A, due June 2018,
net of discount and debt issuance costs of $2,106 and $2,976, respectively

109,613


117,336

Senior Secured Credit Facility - Term Loan B, due June 2018, 
net of discount and debt issuance costs of $14,918 and $17,078, respectively

792,078


707,447

2013 9 3/4% Senior Unsecured Notes, due September 2021,
net of premium and debt issuance costs of $7,333 and $7,802, respectively

577,667


492,198

2005 6 7/8% Senior Subordinated Notes, due February 2015, 
net of debt issuance costs of $6

-


9,648

2012 11 % Senior Subordinated Notes, due September 2018, 
net of discount and debt issuance costs of $1,251 and $4,361, respectively

98,939


270,829

Line of Credit

-


3,041

2009 Mohegan Tribe Promissory Note, due September 2015

-


1,750

2012 Mohegan Tribe Minor's Trust Promissory Note, due March 2017

16,000


16,500

2013 Mohegan Tribe Promissory Note, due December 2018

7,420


7,420

Downs Lodging Credit Facility, due July 2016,
net of debt issuance costs of $254 and $572, respectively

40,262


44,428

Other

3,365


2,910

Long-term debt, excluding capital leases

1,666,344


1,710,507

Less: current portion of long-term debt

(93,112)


(31,552)

Long-term debt, net of current portion

$       1,573,232


$     1,678,955





 

Interest Expense
Interest expense was $36.2 million for each of the quarters ended September 30, 2015 and 2014. Weighted average outstanding debt was $1.69 billion for the quarter ended September 30, 2015 compared to $1.75 billion in the fourth quarter of fiscal 2014. Weighted average interest rate was 8.5% for the quarter ended September 30, 2015 compared to 8.3% in the fourth quarter of fiscal 2014.

Capital Expenditures
The following table presents data related to capital expenditures (in millions):


Capital Expenditures


Fiscal Year Ended


Forecasted


September 30, 2015


Fiscal Year 2016





Mohegan Sun:




    Maintenance

$                           23.7


$                            26.0

    Development

0.8


18.8

           Subtotal

24.5


44.8

Mohegan Sun Pocono:




    Maintenance

5.2


5.0

    Development

0.2


1.9

           Subtotal

5.4


6.9

Corporate:




    Expansion - Project Sunlight 

0.1


0.3

           Subtotal

0.1


0.3

           Total

$                           30.0


$                            52.0





 

Distributions to the Tribe
Distributions to the Tribe totaled $17.5 million for each of the quarters ended September 30, 2015 and 2014. Distributions to the Tribe are anticipated to total $53.0 million for fiscal 2016.

Conference Call
The Authority will host a conference call and simultaneous webcast regarding its fourth quarter fiscal 2015 operating results on Thursday, November 19, 2015 at 11:00 a.m. (Eastern Standard Time).

Those interested in participating in the call should dial as follows:

­­­­­­­­­­­­­­(877) 756-4274
(706) 643-0107 (International)

Conference ID: 85028361

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 the Authority's website at www.mtga.com, under the "Investor Relations/Financial News" section. Interested parties also may listen to a taped replay of the entire conference call commencing two hours after the call's completion on Thursday, November 19, 2015. This replay will run through December 3, 2015. 

The access number for a taped replay of the conference call is as follows:

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

Conference ID: 85028361

A transcript will be available on the Authority's website for a period of 90 days following the conference call.

About the Authority

The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 595-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority 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.

The Tribe's gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the 1,200-room luxury Sky Hotel Tower. Mohegan Sun Pocono operates in an approximately 400,000 square-foot facility, offering traditional slot machines and table games, live harness racing and simulcast and off-track wagering, a 238-room hotel, 20,000 square feet of meeting and convention space, several dining and retail options and a bus passenger lounge. More information about the Authority and its properties can be obtained by visiting www.mohegansun.com, www.mohegansunpocono.com or www.mtga.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 the Authority. Information concerning potential factors that could affect the Authority's financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2014, as well as in the Authority'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. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

 

 

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF INCOME (LOSS) 

(in thousands)

(unaudited)





For the


For the


For the


For the




Three Months Ended


Three Months Ended


Fiscal Year Ended


Fiscal Year Ended




September 30, 2015


September 30, 2014


September 30, 2015


September 30, 2014


Revenues:










   Gaming


$                      296,257


$                   295,609


$              1,133,720


$             1,133,563


   Food and beverage


22,909


23,050


89,720


91,655


   Hotel


13,297


12,547


50,496


47,310


   Retail, entertainment and other 


32,799


32,069


115,030


119,134


   Gross revenues


365,262


363,275


1,388,966


1,391,662


   Less - Promotional allowances


(25,836)


(26,399)


(97,346)


(98,944)


Net revenues


339,426


336,876


1,291,620


1,292,718


Operating costs and expenses:










   Gaming 


165,906


173,447


651,900


687,021


   Food and beverage 


10,191


10,275


41,554


41,482


   Hotel


4,167


4,063


14,934


15,807


   Retail, entertainment and other


11,511


13,499


45,779


50,945


   Advertising, general and
      administrative


47,978


46,899


188,924


190,639


   Corporate 


7,727


11,485


31,127


41,036


   Depreciation and amortization


18,877


20,059


77,580


80,126


   (Gain) loss on disposition of assets


173


3


1,018


(9)


   Severance


-


-


3,370


-


   Pre-opening


-


-


-


1,187


   Impairment of Project Horizon


-


4,981


2,502


4,981


   Relinquishment liability reassessment


-


(1,905)


(243)


(1,905)


Total operating costs and expenses


266,530


282,806


1,058,445


1,111,310


Income from operations


72,896


54,070


233,175


181,408


Other income (expense):










   Accretion of discount to the
      relinquishment liability


-


(551)


(227)


(2,205)


   Interest income


2,429


2,119


7,983


7,066


   Interest expense, net of 
     capitalized interest


(36,184)


(36,241)


(143,876)


(147,933)


   Gain (loss) on early
      extinguishment of debt


(3,987)


236


(3,987)


(62,041)


   Other income (expense), net


331


(34)


(929)


(853)


Total other expense


(37,411)


(34,471)


(141,036)


(205,966)


Net income (loss)


35,485


19,599


92,139


(24,558)


(Gain) loss attributable to non-controlling interests


977


(41)


2,255


380


Net income (loss) attributable to Mohegan Tribal Gaming Authority


$                        36,462


$                     19,558


$                   94,394


$                (24,178)












 

 

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)



















For the Three Months Ended


For the Fiscal Year Ended







September 30,


September 30,


September 30,


September 30,







2015


2014


2015


2014



Operating Results:











   Gross revenues


$           365,262


$           363,275


$         1,388,966


$          1,391,662



   Net revenues


$           339,426


$           336,876


$         1,291,620


$          1,292,718



   Income from operations


$             72,896


$             54,070


$            233,175


$             181,408
















Other Data:











   Adjusted EBITDA


$             92,923


$             77,167


$            319,657


$             266,168



   Capital expenditures


$             20,986


$               5,644


$              30,024


$               32,628



   Cash interest paid


$             55,941


$             56,284


$            136,541


$             153,481



   Distributions to the Tribe


$             17,500


$             17,500


$              50,000


$               50,000


















































September 30,


September 30,



Balance Sheet Data:






2015


2014



   Cash and cash equivalents






$              65,754


$               49,108



   Relinquishment liability






$                        -


$               25,194



   Capital leases






$                2,345


$                 3,138



   Long-term debt, including current portion






$         1,666,344


$          1,710,507















MOHEGAN SUN

SUPPLEMENTAL DATA 

(unaudited)



















For the Three Months Ended


For the Fiscal Year Ended







September 30,


September 30,


September 30,


September 30,







2015


2014


2015


2014



Operating results:












Gross revenues (in thousands)


$           281,713


$           282,017


$         1,071,194


$          1,073,417




Net revenues (in thousands)


$           261,107


$           260,823


$            994,010


$             995,100




Income from operations (in thousands)


$             63,638


$             53,866


$            212,211


$             181,325




Operating margin


24.4%


20.7%


21.3%


18.2%
















Adjusted EBITDA:












Adjusted EBITDA (in thousands)


$             79,672


$             73,588


$            284,091


$             251,077




Adjusted EBITDA margin


30.5%


28.2%


28.6%


25.2%
















Capital expenditures (in thousands)


$             17,622


$               4,314


$              24,521


$               19,518



Weighted average number of units:












Slot machines


5,136


5,429


5,268


5,470




Table games


283


288


283


288




Poker tables


42


42


42


42



Win per unit per day:












Slot machines (gross)


$                  320


$                  311


$                   303


$                    292




Table games


$               2,950


$               2,798


$                2,781


$                 2,692




Poker tables


$                  587


$                  640


$                   637


$                    643
















Hold percentage:












Slot machines (gross)


8.2%


8.2%


8.3%


8.1%




Table games


17.0%


15.9%


16.3%


15.4%
















Food and beverage statistics:












Meals served (in thousands)


727


741


2,881


2,951




Average price per meal served 


$               15.85


$               16.04


$                15.92


$                 16.03
















Hotel statistics:












Rooms occupied (in thousands)


106


107


420


418




Occupancy rate


98.5%


98.5%


98.0%


97.4%




Average daily room rate


$                  102


$                    98


$                   100


$                      97




Revenue per available room


$                  101


$                    96


$                     98


$                      95
















Entertainment statistics:












Arena events (in events)


35


31


120


109




Arena tickets (in thousands)


199


200


691


684




Average price per Arena ticket


$               43.17


$               49.53


$                50.60


$                 54.88


 

 

MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)




















For the Three Months Ended


For the Fiscal Year Ended







September 30,


September 30,


September 30,


September 30,







2015


2014


2015


2014


Operating results:













Gross revenues (in thousands)




$              81,886


$            80,891


$          315,224


$          317,106



Net revenues (in thousands)




$              76,679


$            75,715


$          295,135


$          296,578



Income from operations (in thousands)




$              14,394


$            10,401


$            45,817


$            36,956



Operating margin




18.8%


13.7%


15.5%


12.5%















Adjusted EBITDA:













Adjusted EBITDA (in thousands)




$              17,306


$            13,554


$            57,946


$            50,596



Adjusted EBITDA margin




22.6%


17.9%


19.6%


17.1%















Capital expenditures (in thousands)




$                3,361


$              1,138


$              5,448


$              3,946















Weighted average number of units:













Slot machines




2,332


2,330


2,331


2,331



Table games




73


69


73


68



Poker tables




18


18


18


18















Win per unit per day:













Slot machines (gross)




$                   260


$                 253


$                 251


$                 256



Table games




$                1,584


$              1,769


$              1,699


$              1,684



Poker tables




$                   425


$                 464


$                 462


$                 518















Hold percentage:













Slot machines (gross)




8.1%


8.3%


8.2%


8.3%



Table games




18.8%


19.1%


19.7%


19.4%















Food and beverage statistics:













Meals served (in thousands)




186


195


695


768



Average price per meal served 




$                17.44


$              17.26


$              17.94


$              17.21















Hotel statistics (1):













Rooms occupied (in thousands)




21


21


82


68



Occupancy rate




98.5%


94.8%


95.2%


91.7%



Average daily room rate




$                     69


$                   68


$                   64


$                   61



Revenue per available room




$                     68


$                   64


$                   61


$                   56


____________________________________________












(1) Hotel operations commenced on November 15, 2013.



CORPORATE

SUPPLEMENTAL DATA 

(unaudited)




















For the Three Months Ended


For the Fiscal Year Ended







September 30,


September 30,


September 30,


September 30,







2015


2014


2015


2014


Capital expenditures (in thousands)




$                       3


$                 192


$                   55


$              9,164



Capitalized interest (in thousands)




$                        -


$                      -


$                      -


$                 735



MOHEGAN TRIBAL GAMING AUTHORITY

ADJUSTED EBITDA RECONCILIATIONS

(unaudited)















Reconciliations of Adjusted EBITDA to Net Income (Loss):




















Reconciliations of Adjusted EBITDA to net income (loss), a financial measure determined in accordance with accounting principles generally 


accepted in the United States of America, or GAAP, are shown below (in thousands):

































For the Three Months Ended


For the Fiscal Year Ended







September 30,


September 30,


September 30,


September 30,







2015


2014


2015


2014















Adjusted EBITDA




$              92,923


$            77,167


$          319,657


$          266,168


Depreciation and amortization




(18,877)


(20,059)


(77,580)


(80,126)


Gain (loss) on disposition of assets




(173)


(3)


(1,018)


9


Severance




-


-


(3,370)


-


Pre-opening




-


-


-


(1,187)


Impairment of Project Horizon




-


(4,981)


(2,502)


(4,981)


Relinquishment liability reassessment




-


1,905


243


1,905


Gain (loss) attributable to non-controlling interests




(977)


41


(2,255)


(380)


Income from operations




72,896


54,070

#

233,175


181,408















Accretion of discount to the relinquishment liability




-


(551)


(227)


(2,205)


Interest income




2,429


2,119


7,983


7,066


Interest expense, net of capitalized interest




(36,184)


(36,241)


(143,876)


(147,933)


Gain (loss) on early extinguishment of debt




(3,987)


236


(3,987)


(62,041)


Other income (expense), net




331


(34)


(929)


(853)


Net income (loss)




$              35,485


$            19,599


$            92,139


$           (24,558)

 

 

Reconciliations of Income (Loss) from Operations to Adjusted EBITDA (unaudited):

























Reconciliations of income (loss) from operations, a financial measure determined in accordance with GAAP, to Adjusted EBITDA, are shown below (in thousands):




























For the Three Months Ended September 30, 2015




Income (Loss)


Depreciation


(Gain) Loss 






Impairment


Relinquishment


(Gain) Loss Attributable 






from


and 


on Disposition of






of


Liability


to Non-controlling


Adjusted 




Operations


Amortization


Assets


Severance


Pre-opening


Project Horizon


Reassessment


Interests


EBITDA

Mohegan Sun 


$           63,638


$            15,697


$                179


$                   -


$                     -


$                     -


$                       -


$                                    158


$          79,672

Mohegan Sun Pocono 


14,394


2,918


(6)


-


-


-


-


-


17,306

Corporate


(5,136)


262


-


-


-


-


-


819


(4,055)


Total


$           72,896


$            18,877


$                173


$                   -


$                     -


$                     -


$                       -


$                                    977


$          92,923
























For the Three Months Ended September 30, 2014




Income (Loss)


Depreciation


(Gain) Loss






Impairment


Relinquishment


(Gain) Loss Attributable 






from


and 


on Disposition of






of


Liability


to Non-controlling


Adjusted 




Operations


Amortization


Assets


Severance


Pre-opening


Project Horizon


Reassessment


Interests


EBITDA

Mohegan Sun 


$           53,866


$            16,643


$                    3


$                   -


$                     -


$               4,981


$                (1,905)


$                                       -


$          73,588

Mohegan Sun Pocono


10,401


3,153


-


-


-


-


-


-


13,554

Corporate


(10,197)


263


-


-


-


-


-


(41)


(9,975)


Total


$           54,070


$            20,059


$                    3


$                   -


$                     -


$               4,981


$                (1,905)


$                                    (41)


$          77,167












































For the Fiscal Year Ended September 30, 2015




Income (Loss)


Depreciation


(Gain) Loss on






Impairment


Relinquishment


(Gain) Loss Attributable to






from


and 


Disposition of






of


Liability


Non-controlling


Adjusted 




Operations


Amortization


Assets


Severance


Pre-opening


Project Horizon


Reassessment


Interests


EBITDA

Mohegan Sun 


$         212,211


$            64,520


$             1,022


$             3,244


$                     -


$               2,502


$                   (243)


$                                    835


$        284,091

Mohegan Sun Pocono


45,817


12,007


(4)


126


-


-


-


-


57,946

Corporate


(24,853)


1,053


-


-


-


-


-


1,420


(22,380)


Total


$         233,175


$            77,580


$             1,018


$             3,370


$                     -


$               2,502


$                   (243)


$                                 2,255


$        319,657
























For the Fiscal Year Ended September 30, 2014




Income (Loss)


Depreciation


(Gain) Loss on






Impairment


Relinquishment


(Gain) Loss Attributable to






from


and 


Disposition of






of


Liability


Non-controlling


Adjusted 




Operations


Amortization


Assets


Severance


Pre-opening


Project Horizon


Reassessment


Interests


EBITDA

Mohegan Sun 


$         181,325


$            66,686


$                (10)


$                   -


$                     -


$               4,981


$                (1,905)


$                                       -


$        251,077

Mohegan Sun Pocono


36,956


12,452


1


-


1,187


-


-


-


50,596

Corporate


(36,873)


988


-


-


-


-


-


380


(35,505)


Total


$         181,408


$            80,126


$                  (9)


$                   -


$               1,187


$               4,981


$                (1,905)


$                                    380


$        266,168





















 

Adjusted EBITDA Explanation: 
Net income (loss) 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. The Authority historically has evaluated its operating performance with the non-GAAP measure, Adjusted EBITDA, which as used in this press release, represents net income (loss) before interest, depreciation and amortization, gain or loss on disposition of assets, workforce reduction severance, pre-opening costs and expenses, impairment of Project Horizon, reassessment and accretion of discount to a relinquishment liability, gain or loss on early extinguishment of debt, other non-operating income and expense and gain or loss attributable to non-controlling interests.

Adjusted EBITDA provides an additional way to evaluate the Authority's operations and, when viewed with both the Authority's GAAP results and the reconciliations provided, the Authority 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) the Authority believes it enhances an overall understanding of the Authority's past and current financial performance; (2) the Authority 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 the Authority'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) the Authority 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 (loss) (as an indicator of the Authority's performance) or cash flows provided by operating activities (as an indicator of the Authority's liquidity), nor should it be considered as an indicator of the Authority's overall financial performance. The Authority'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 (loss), 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 the Authority's results. The Authority 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 (loss) and in its consolidated financial statements, all of which should be considered when evaluating its results. The Authority strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

 

Contacts:
Robert J. Soper
President and Chief Executive Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

Mario C. Kontomerkos
Chief Financial Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

SOURCE Mohegan Tribal Gaming Authority



RELATED LINKS

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