Mohegan Tribal Gaming Authority Announces Second Quarter Fiscal 2016 Operating Results

News provided by

Mohegan Tribal Gaming Authority

Apr 28, 2016, 07:30 ET

UNCASVILLE, Conn., April 28, 2016 /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 second fiscal quarter ended March 31, 2016.

"We are pleased to report another very strong quarter of operating performance, evidenced by our 3rd consecutive quarter of top line growth coupled with very strong flow-through to the bottom line," said Robert J. Soper, President and Chief Executive Officer of the Authority. "In addition, the March quarter was a very exciting one with respect to our strategic goal of diversification with the sole conditional gaming license in South Korea being awarded to our Inspire joint venture, substantial progress on both the development of the Cowlitz casino in the State of Washington and the Earth Hotel in Connecticut and more recently, our agreement to assist the Tunica-Biloxi Tribe of Louisiana manage its flagship property, Paragon Casino Resort. With these endeavors in place, our high quality portfolio of assets will grow from three properties to six properties under management over the next several years."

Consolidated operating results for the second quarter ended March 31, 2016 (unaudited):

  • Net revenues of $331.8 million, a 6.9% increase over the second quarter of fiscal 2015
  • Gaming revenues of $296.7 million, a 7.9% increase over the second quarter of fiscal 2015
  • Gross slot revenues of $203.0 million, an 8.2% increase over the second quarter of fiscal 2015
  • Table game revenues of $93.4 million, a 7.4% increase over the second quarter of fiscal 2015
  • Non-gaming revenues of $57.5 million, relatively flat compared to the second quarter of fiscal 2015
  • Adjusted EBITDA, a non-GAAP measure described below, of $88.3 million, an 18.2% increase over the second quarter of fiscal 2015
  • Adjusted EBITDA margin of 26.6%, a 250 basis point increase over the second quarter of fiscal 2015
  • Income from operations of $60.3 million, a 23.0% increase over the second quarter of fiscal 2015
  • Net income attributable to the Authority of $30.5 million, a 102.8% increase over the second quarter of fiscal 2015

The growth in Adjusted EBITDA, income from operations and net income attributable to the Authority primarily resulted from higher gaming revenues driven by strong volumes at Mohegan Sun and Mohegan Sun Pocono, combined with increased revenues generated by Corporate.

Mohegan Sun

Operating results (in thousands, unaudited): 

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance








Adjusted EBITDA

$                 77,837

$           68,686

$          9,151

13.3%

Income from operations

$                 61,677

$           46,598

$        15,079

32.4%

Operating costs and expenses

$               194,509

$         193,687

$             822

0.4%

Net revenues

$               256,186

$         240,285

$        15,901

6.6%

Gaming revenues

$               228,119

$         210,035

$        18,084

8.6%

Non-gaming revenues

$                 45,047

$           47,516

$        (2,469)

(5.2%)

The growth in Adjusted EBITDA and income from operations primarily resulted from increased slot and table game revenues driven by higher volumes. Table game revenues also benefited from higher year-over-year hold percentage. These results were partially offset by increased promotional expenses related to our high-end table game segment. The decline in non-gaming revenues primarily reflected lower entertainment revenues resulting from a reduction in the number of shows held at the Mohegan Sun Arena, including fewer headliner shows. Adjusted EBITDA margin increased 180 basis points to 30.4% for the quarter ended March 31, 2016 from 28.6% in the second quarter of fiscal 2015.

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

  

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance








Slots:






  Handle

$            1,812,771

$        1,657,098

$        155,673

9.4%

  Gross revenues

$               147,399

$           137,310

$          10,089

7.3%

  Net revenues

$               141,524

$           131,965

$            9,559

7.2%

  Free promotional slot plays (1)

$                 15,288

$             13,471

$            1,817

13.5%

  Weighted average number of machines (in units)

5,140

5,335

(195)

(3.7%)

  Hold percentage (gross)

8.1%

8.3%

(0.2%)

(2.4%)

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

$                      315

$                  286

$                 29

10.1%








Table games:






  Drop

$               458,913

$           426,011

$          32,902

7.7%

  Revenues

$                 83,020

$             74,591

$            8,429

11.3%

  Weighted average number of games (in units)

273

283

(10)

(3.5%)

  Hold percentage (2)

18.1%

17.5%

0.6%

3.4%

  Win per unit per day (in dollars)

$                   3,338

$               2,927

$               411

14.0%








Poker:






  Revenues

$                   2,668

$               2,522

$               146

5.8%

  Weighted average number of tables (in units)

42

42

-

-

  Revenue per unit per day (in dollars)

$                      698

$                  667

$                 31

4.6%

___________________________________________






(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 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance








Food and beverage:






  Revenues

$                 14,121

$           14,596

$          (475)

(3.3%)

  Meals served

631

676

(45)

(6.7%)

  Average price per meal served (in dollars)

$                   16.31

$             16.05

$            0.26

1.6%








Hotel:






  Revenues

$                 10,692

$           10,930

$           (238)

(2.2%)

  Rooms occupied

106

103

3

2.9%

  Occupancy rate

98.6%

97.7%

0.9%

0.9%

  Average daily room rate (in dollars)

$                        95

$                  99

$               (4)

(4.0%)

  Revenue per available room (in dollars)

$                        94

$                  97

$               (3)

(3.1%)








Retail, entertainment and other:






  Revenues

$                 20,234

$           21,990

$        (1,756)

(8.0%)

  Arena events (in events)

24

28

(4)

(14.3%)

  Arena tickets

136

155

(19)

(12.3%)

  Average price per Arena ticket (in dollars)

$                   37.31

$             44.54

$          (7.23)

(16.2%)

Mohegan Sun Pocono

Operating results (in thousands, unaudited):

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance








Adjusted EBITDA

$                 13,696

$           13,166

$             530

4.0%

Income from operations

$                 10,732

$           10,102

$             630

6.2%

Operating costs and expenses

$                 62,954

$           60,026

$          2,928

4.9%

Net revenues

$                 73,686

$           70,128

$          3,558

5.1%

Gaming revenues

$                 68,566

$           64,981

$          3,585

5.5%

Non-gaming revenues

$                 10,553

$             9,954

$             599

6.0%

The increases in Adjusted EBITDA and income from operations resulted from higher slot revenues which benefited from increased volumes. These results were partially offset by lower table game revenues primarily driven by lower year-over-year hold percentage. Adjusted EBITDA margin decreased slightly to 18.6% for the quarter ended March 31, 2016 from 18.8% in the second quarter of fiscal 2015.

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

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance








Slots:






  Handle

$               686,530

$            612,711

$        73,819

12.0%

  Gross revenues

$                 55,560

$              50,331

$          5,229

10.4%

  Net revenues

$                 55,472

$              50,172

$          5,300

10.6%

  Free promotional slot plays (1)

$                 11,159

$              11,037

$             122

1.1%

  Weighted average number of machines (in units)

2,331

2,332

(1)

(0.0%)

  Hold percentage (gross)

8.1%

8.2%

(0.1%)

(1.2%)

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

$                      262

$                   239

$               23

9.6%








Table games:






  Drop

$                 54,137

$              56,572

$        (2,435)

(4.3%)

  Revenues

$                 10,399

$              12,353

$        (1,954)

(15.8%)

  Weighted average number of games (in units)

73

73

-

-

  Hold percentage (2)

19.2%

21.8%

(2.6%)

(11.9%)

  Win per unit per day (in dollars)

$                   1,565

$                1,880

(315)

(16.8%)








Poker:






  Revenues

$                      846

$                   827

$               19

2.3%

  Weighted average number of tables (in units)

18

18

-

-

  Revenue per unit per day (in dollars)

$                      516

$                   511

$                 5

1.0%

___________________________________________






(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 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance








Food and beverage:






  Revenues

$                   7,062

$             6,523

$             539

8.3%

  Meals served

158

152

6

3.9%

  Average price per meal served (in dollars)

$                   19.97

$             18.75

$            1.22

6.5%








Hotel:






  Revenues

$                   1,388

$             1,343

$               45

3.4%

  Rooms occupied

21

20

1

5.0%

  Occupancy rate

95.7%

93.7%

2.0%

2.1%

  Average daily room rate (in dollars)

$                        62

$                  62

-

-

  Revenue per available room (in dollars)

$                        60

$                  58

$                 2

3.4%








Retail, entertainment and other:  








  Revenues

$                   2,103

$             2,088

$               15

0.7%

Corporate

Operating results (in thousands, unaudited):

  

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance








Adjusted EBITDA

$                 (3,274)

$           (7,158)

$          3,884

54.3%

Loss from operations

$               (12,151)

$           (7,693)

$          4,458

57.9%

Operating costs and expenses

$                 15,341

$             8,976

$          6,365

70.9%

Net revenues

$                   3,190

$             1,283

$          1,907

148.6%

Adjusted EBITDA benefited from increased revenues driven by development and management fees earned in connection with our development arrangement for the Cowlitz Project and our management arrangement with Resorts Casino Hotel. The increase in loss from operations resulted from higher operating costs and expenses which reflected additional costs and expenses related to our successful pursuit of a casino license in South Korea.

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



March 31,

March 31,

March 31,

March 31,

March 31,

March 31,



2016

2015

2016

2015

2016

2015

Mohegan Sun

$           77,837

$           68,686

$           61,677

$           46,598

$         256,186

$        240,285

Mohegan Sun Pocono

13,696

13,166

10,732

10,102

73,686

70,128

Corporate

(3,274)

(7,158)

(12,151)

(7,693)

3,190

1,283

Inter-segment revenues

-

-

-

-

(1,273)

(1,273)














Total

$           88,259

$           74,694

$           60,258

$           49,007

$         331,789

$        310,423





























Adjusted EBITDA

Income (Loss) from Operations

Net Revenues



For the Six Months Ended

For the Six Months Ended

For the Six Months Ended



March 31,

March 31,

March 31,

March 31,

March 31,

March 31,



2016

2015

2016

2015

2016

2015

Mohegan Sun



$         152,933

$         133,762

$         120,731

$           94,016

$         511,269

$        486,063

Mohegan Sun Pocono

25,742

24,830

19,738

18,581

146,710

140,524

Corporate

(6,771)

(12,908)

(10,135)

(13,817)

9,542

3,114

Inter-segment revenues

-

-

-

-

(2,546)

(2,546)














Total

$         171,904

$         145,684

$         130,334

$           98,780

$         664,975

$        627,155














Other Information

Liquidity 
As of March 31, 2016, the Authority held cash and cash equivalents of $­185.9 million compared to $65.8 million as of September 30, 2015. As of March 31, 2016, $42.0 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 March 31, 2016, letters of credit issued under the revolving credit facility totaled $2.5 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the revolving credit facility, the Authority had approximately $55.5 million of borrowing capacity under its revolving credit facility and line of credit as of March 31, 2016.

Interest Expense
Interest expense decreased by $1.6 million, or 4.4%, to $34.2 million for the quarter ended March 31, 2016 compared to $35.8 million in the second quarter of fiscal 2015. The reduction in interest expense was attributable to lower weighted average interest rate. Weighted average interest rate was 7.7% for the quarter ended March 31, 2016 compared to 8.2% in the second quarter of fiscal 2015. Weighted average outstanding debt was $1.78 billion for the quarter ended March 31, 2016 compared to $1.74 billion in the second quarter of fiscal 2015.

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

Capital Expenditures

Six Months Ended

Remaining Forecasted

Forecasted

March 31, 2016

Fiscal Year 2016

Fiscal Year 2016






Mohegan Sun:




    Maintenance

$                           12.6

$                               13.4

$                            26.0

    Development

5.4

13.4

18.8

           Subtotal

18.0

26.8

44.8

Mohegan Sun Pocono:




    Maintenance

1.8

3.2

5.0

    Development

0.2

1.7

1.9

           Subtotal

2.0

4.9

6.9

Corporate:




    Maintenance

0.1

0.2

0.3

           Subtotal

0.1

0.2

0.3

           Total

$                           20.1

$                               31.9

$                            52.0






Distributions to the Tribe
Distributions to the Tribe totaled $10.6 million for the quarter ended March 31, 2016 compared to $10.0 million in the second quarter of fiscal 2015. 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 second quarter fiscal 2016 operating results on Thursday, April 28, 2016 at 11:00 a.m. (Eastern Daylight Time).

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

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

Conference ID: 85028363

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, April 28, 2016. This replay will run through May 12, 2016. 

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

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

Conference ID: 85028363

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, 2015, 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 AND COMPREHENSIVE INCOME

(in thousands)

(unaudited)




For the

For the

For the

For the


Three Months Ended

Three Months Ended

Six Months Ended

Six Months Ended


March 31, 2016

March 31, 2015

March 31, 2016

March 31, 2015

Revenues:








   Gaming

$                      296,685

$                   275,016

$                 589,082

$                 552,750

   Food and beverage

21,183

21,119

43,200

43,790

   Hotel

12,080

12,273

24,417

24,499

   Retail, entertainment and other


24,276

24,107

54,745

52,406

   Gross revenues

354,224

332,515

711,444

673,445

   Less - Promotional allowances

(22,435)

(22,092)

(46,469)

(46,290)

Net revenues

331,789

310,423

664,975

627,155

Operating costs and expenses:








   Gaming


163,765

155,666

330,758

321,765

   Food and beverage


9,809

10,229

20,133

21,040

   Hotel

3,686

3,476

7,502

6,979

   Retail, entertainment and other

8,330

9,577

17,819

21,821

   Advertising, general and administrative

51,846

48,609

101,222

94,424

   Corporate


15,069

8,642

19,081

16,281

   Depreciation and amortization

18,669

19,564

37,797

39,617

   Loss on disposition of assets

357

80

329

819

   Severance

-

3,370

-

3,370

   Impairment of Project Horizon

-

2,502

-

2,502

   Relinquishment liability reassessment

-

(299)

-

(243)

Total operating costs and expenses

271,531

261,416

534,641

528,375

Income from operations

60,258

49,007

130,334

98,780

Other income (expense):








   Accretion of discount to the relinquishment liability

-

-

-

(227)

   Interest income

2,055

1,814

4,185

3,648

   Interest expense

(34,198)

(35,777)

(68,345)

(72,032)

   Loss on early extinguishment of debt

-

-

(207)

-

   Other expense, net

(458)

(482)

(860)

(1,210)

Total other expense

(32,601)

(34,445)

(65,227)

(69,821)

Net income


27,657

14,562

65,107

28,959

(Income) loss attributable to non-controlling interests

2,828

470

(2,703)

839

Net income attributable to Mohegan Tribal Gaming Authority

$                        30,485

$                     15,032

$                   62,404

$                   29,798

Other comprehensive income:








   Foreign currency translation

4,815

-

4,202

-

  Other comprehensive income

4,815

-

4,202

-

Comprehensive income

$                        35,300

$                     15,032

$                   66,606

$                   29,798










MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)


















For the Three Months Ended

For the Six Months Ended





March 31,

March 31,

March 31,

March 31,





2016

2015

2016

2015

Operating Results:










   Gross revenues

$           354,224

$           332,515

$            711,444

$             673,445

   Net revenues

$           331,789

$           310,423

$            664,975

$             627,155

   Income from operations


$             60,258

$             49,007

$            130,334

$               98,780














Other Data:










   Adjusted EBITDA

$             88,259

$             74,694

$            171,904

$             145,684

   Capital expenditures

$             12,592

$               1,820

$              20,139

$                 2,804

   Cash interest paid

$             48,893

$             52,954

$              70,070

$               66,147

   Distributions to the Tribe

$             10,600

$             10,000

$              21,200

$               20,000
















































March 31,

September 30,

Balance Sheet Data:





2016

2015

   Cash and cash equivalents




$            185,912

$               65,754

   Capital leases





$                1,937

$                 2,345

   Long-term debt, including current portion




$         1,741,663

$          1,666,344













MOHEGAN SUN

SUPPLEMENTAL DATA

(unaudited)
















For the Three Months Ended

For the Six Months Ended




March 31,

March 31,

March 31,

March 31,




2016

2015

2016

2015

Operating results:










     Gross revenues (in thousands)

$           273,166

$           257,551

$            546,883

$             522,531

     Net revenues (in thousands)

$           256,186

$           240,285

$            511,269

$             486,063

     Income from operations (in thousands)

$             61,677

$             46,598

$            120,731

$               94,016

     Operating margin

24.1%

19.4%

23.6%

19.3%














Adjusted EBITDA:










     Adjusted EBITDA (in thousands)

$             77,837

$             68,686

$            152,933

$             133,762

     Adjusted EBITDA margin

30.4%

28.6%

29.9%

27.5%













Capital expenditures (in thousands)

$             11,902

$               1,478

$              17,988

$                 1,830













Weighted average number of units:










     Slot machines

5,140

5,335

5,143

5,345

     Table games

273

283

270

284

     Poker tables

42

42

42

42

Win per unit per day:










     Slot machines (gross)

$                  315

$                  286

$                   308

$                    291

     Table games

$               3,338

$               2,927

$                3,354

$                 2,774

     Poker tables

$                  698

$                  667

$                   662

$                    676













Hold percentage:










     Slot machines (gross)

8.1%

8.3%

8.1%

8.3%

     Table games

18.1%

17.5%

18.0%

16.3%













Food and beverage statistics:










     Meals served (in thousands)

631

676

1,282

1,411

     Average price per meal served



$               16.31

$               16.05

$                16.43

$                 15.94













Hotel statistics:










     Rooms occupied (in thousands)

106

103

212

209

     Occupancy rate

98.6%

97.7%

98.4%

97.9%

     Average daily room rate

$                    95

$                    99

$                     96

$                      98

     Revenue per available room

$                    94

$                    97

$                     94

$                      96














Entertainment statistics:










     Arena events (in events)

24

28

50

54

     Arena tickets (in thousands)

136

155

286

319

     Average price per Arena ticket

$               37.31

$               44.54

$                43.95

$                 50.86

   

  

MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)



















For the Three Months Ended

For the Six Months Ended






March 31,

March 31,

March 31,

March 31,






2016

2015

2016

2015

Operating results:










     Gross revenues (in thousands)


$              79,119

$            74,935

$          157,520

$          150,316

     Net revenues (in thousands)


$              73,686

$            70,128

$          146,710

$          140,524

     Income from operations (in thousands)


$              10,732

$            10,102

$            19,738

$            18,581

     Operating margin


14.6%

14.4%

13.5%

13.2%














Adjusted EBITDA:










     Adjusted EBITDA (in thousands)


$              13,696

$            13,166

$            25,742

$            24,830

     Adjusted EBITDA margin


18.6%

18.8%

17.5%

17.7%














Capital expenditures (in thousands)


$                   674

$                 288

$              2,048

$                 901














Weighted average number of units:










     Slot machines


2,331

2,332

2,330

2,332

     Table games


73

73

73

73

     Poker tables


18

18

18

18














Win per unit per day:










     Slot machines (gross)


$                   262

$                 239

$                 258

$                 240

     Table games


$                1,565

$              1,880

$              1,566

$              1,722

     Poker tables


$                   516

$                 511

$                 477

$                 486














Hold percentage:










     Slot machines (gross)


8.1%

8.2%

8.1%

8.2%

     Table games


19.2%

21.8%

19.0%

19.7%














Food and beverage statistics:










     Meals served (in thousands)


158

152

316

317

     Average price per meal served




$                19.97

$              18.75

$              19.87

$              18.65














Hotel statistics:










     Rooms occupied (in thousands)


21

20

42

40

     Occupancy rate


95.7%

93.7%

95.9%

93.0%

     Average daily room rate


$                     62

$                   62

$                   61

$                   60

     Revenue per available room


$                     60

$                   58

$                   59

$                   56


CORPORATE

SUPPLEMENTAL DATA

(unaudited)



















For the Three Months Ended

For the Six Months Ended






March 31,

March 31,

March 31,

March 31,






2016

2015

2016

2015

Capital expenditures (in thousands)


$                     16

$                   54

$                 103

$                   73

MOHEGAN TRIBAL GAMING AUTHORITY

ADJUSTED EBITDA RECONCILIATIONS

(unaudited)














Reconciliations of Adjusted EBITDA to Net Income:





















Reconciliations of Adjusted EBITDA to net income, 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 Six Months Ended






March 31,

March 31,

March 31,

March 31,






2016

2015

2016

2015














Adjusted EBITDA


$              88,259

$            74,694

$          171,904

$          145,684

Depreciation and amortization


(18,669)

(19,564)

(37,797)

(39,617)

Share compensation




(6,147)

-

(6,147)

-

Loss on disposition of assets


(357)

(80)

(329)

(819)

Severance


-

(3,370)

-

(3,370)

Impairment of Project Horizon


-

(2,502)

-

(2,502)

Relinquishment liability reassessment


-

299

-

243

Income (loss) attributable to non-controlling interests

(2,828)

(470)

2,703

(839)

Income from operations


60,258

49,007

130,334

98,780














Accretion of discount to the relinquishment liability

-

-

-

(227)

Interest income


2,055

1,814

4,185

3,648

Interest expense


(34,198)

(35,777)

(68,345)

(72,032)

Loss on early extinguishment of debt


-

-

(207)

-

Other expense, net


(458)

(482)

(860)

(1,210)

Net income




$              27,657

$            14,562

$            65,107

$            28,959













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 March 31, 2016



Income (Loss)

Depreciation


Loss




Impairment

Relinquishment

(Income) Loss Attributable






from

and


Share

on Disposition of


of

Liability

to Non-controlling

Adjusted




Operations

Amortization

Compensation

Assets

Severance

Project Horizon

Reassessment

Interests

EBITDA

Mohegan Sun


$           61,677

$            15,436

$                    -

$                357

$                     -

$                     -

$                       -

$                                    367

$          77,837

Mohegan Sun Pocono


10,732

2,964

-

-

-

-

-

-

13,696

Corporate

(12,151)

269

6,147

-

-

-

-

2,461

(3,274)

Total

$           60,258

$            18,669

$             6,147

$                357

$                     -

$                     -

$                       -

$                                 2,828

$          88,259























For the Three Months Ended March 31, 2015



Income (Loss)

Depreciation


Loss


Impairment

Relinquishment

(Income) Loss Attributable






from

and


Share

on Disposition of


of

Liability

to Non-controlling

Adjusted




Operations

Amortization

Compensation

Assets

Severance

Project Horizon

Reassessment

Interests

EBITDA

Mohegan Sun


$           46,598

$            16,352

$                   -

$                  80

$               3,244

$               2,502

$                   (299)

$                                    209

$          68,686

Mohegan Sun Pocono

10,102

2,938

-

-

126

-

-

-

13,166

Corporate

(7,693)

274

-

-

-

-

-

261

(7,158)

Total

$           49,007

$            19,564

$                   -

$                  80

$               3,370

$               2,502

$                   (299)

$                                    470

$          74,694











































For the Six Months Ended March 31, 2016



Income (Loss)

Depreciation


Loss on


Impairment

Relinquishment

(Income) Loss Attributable to




from

and


Share

Disposition of


of

Liability

Non-controlling

Adjusted




Operations

Amortization

Compensation

Assets

Severance

Project Horizon

Reassessment

Interests

EBITDA

Mohegan Sun


$         120,731

$            31,271

$                    -

$                318

$                     -

$                     -

$                       -

$                                    613

$        152,933

Mohegan Sun Pocono

19,738

5,993

-

11

-

-

-

-

25,742

Corporate

(10,135)

533

6,147

-

-

-

-

(3,316)

(6,771)

Total

$         130,334

$            37,797

$             6,147

$                329

$                     -

$                     -

$                       -

$                               (2,703)

$        171,904























For the Six Months Ended March 31, 2015



Income (Loss)

Depreciation


Loss on


Impairment

Relinquishment

(Income) Loss Attributable to




from

and


Share

Disposition of


of

Liability

Non-controlling

Adjusted




Operations

Amortization

Compensation

Assets

Severance

Project Horizon

Reassessment

Interests

EBITDA

Mohegan Sun


$           94,016

$            32,966

$                   -

$                817

$               3,244

$               2,502

$                   (243)

$                                    460

$        133,762

Mohegan Sun Pocono

18,581

6,121

-

2

126

-

-

-

24,830

Corporate

(13,817)

530

-

-

-

-

-

379

(12,908)

Total

$           98,780

$            39,617

$                   -

$                819

$               3,370

$               2,502

$                   (243)

$                                    839

$        145,684




















Adjusted EBITDA Explanation:
Net income before interest, income taxes, depreciation and amortization, or EBITDA, is a commonly used measure of performance in the casino and hospitality industry. EBITDA is not a measure of performance calculated in accordance with GAAP. 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 before interest, depreciation and amortization, share compensation expense, loss on disposition of assets, reassessment and accretion of discount to a relinquishment liability, loss on early extinguishment of debt, other non-operating income and expense and income 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 (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, 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 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

http://www.mtga.com

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