Mohegan Tribal Gaming Authority Announces Third Quarter Fiscal 2013 Operating Results
Mohegan Tribal Gaming Authority Announces Third Quarter Fiscal 2013 Operating Results
UNCASVILLE, Conn.--(BUSINESS WIRE)-- The Mohegan Tribal Gaming Authority, or the Authority, the owner and operator of Mohegan Sun in Uncasville, Connecticut, and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pennsylvania, announced today the operating results for its third fiscal quarter ended June 30, 2013.
"Our results for the third quarter were quite rewarding," said Mitchell Grossinger Etess, Chief Executive Officer of the Authority. "The growth in Adjusted EBITDA and margins at both Mohegan Sun and Mohegan Sun at Pocono Downs demonstrates the commitment of our entire team towards pursuing operational efficiencies while providing the ultimate guest experience. We are also extremely optimistic with the stabilization, and, in some cases, increases in revenues."
Consolidated operating results for the third quarter ended June 30, 2013 (unaudited):
Net revenues of $344.2 million, a 0.1% decrease from the third quarter of fiscal 2012
Gaming revenues of $304.6 million, a 0.8% decrease from the third quarter of fiscal 2012
Gross slot revenues of $214.7 million, a 4.5% decrease from the third quarter of fiscal 2012
Table game revenues of $86.2 million, a 10.0% increase over the third quarter of fiscal 2012
Non-gaming revenues of $65.1 million, a 3.6% increase over the third quarter of fiscal 2012
Adjusted EBITDA, a non-GAAP measure described below, of $85.1 million, a 16.7% increase over the third quarter of fiscal 2012
Adjusted EBITDA margin of 24.7%, a 350 basis point increase over the third quarter of fiscal 2012
Income from operations of $64.2 million, a 26.3% increase over the third quarter of fiscal 2012
Net income attributable to the Authority of $22.3 million, a 138.2% increase over the third quarter of fiscal 2012
The increases in Adjusted EBITDA, income from operations and net income were primarily attributable to higher table game revenues and lower operating costs and expenses resulting from cost saving initiatives designed to improve efficiency and profitability at both Mohegan Sun and Mohegan Sun at Pocono Downs.
Mohegan Sun
Operating results (in thousands, unaudited):
For the Three Months Ended | ||||||||||||||
June 30, | June 30, | Variance | Percentage | |||||||||||
Adjusted EBITDA | $ | 74,790 | $ | 62,525 | $ | 12,265 | 19.6 | % | ||||||
Income from operations | $ | 57,396 | $ | 44,801 | $ | 12,595 | 28.1 | % | ||||||
Operating costs and expenses | $ | 209,303 | $ | 220,075 | $ | (10,772 | ) | (4.9 | %) | |||||
Net revenues | $ | 266,699 | $ | 264,876 | $ | 1,823 | 0.7 | % | ||||||
Gaming revenues | $ | 232,161 | $ | 232,346 | $ | (185 | ) | (0.1 | %) | |||||
Non-gaming revenues | $ | 55,274 | $ | 53,935 | $ | 1,339 | 2.5 | % | ||||||
The growth in Adjusted EBITDA and income from operations was primarily attributable to higher table game revenues, combined with the reduction in operating costs and expenses, reflecting, in part, staffing reductions and other cost saving initiatives implemented in September 2012. These results were partially offset by lower slot revenues, which we believe reflected continued economic weakness in New England and the impact of competition. Table game revenues benefited from higher table game hold during the quarter. The growth in Adjusted EBITDA and income from operations also reflected higher entertainment revenues due to an increase in the number of headliner shows held at the Mohegan Sun Arena. Adjusted EBITDA margin increased 440 basis points to 28.0% for the quarter ended June 30, 2013 from 23.6% in the third quarter of fiscal 2012.
Selected gaming data (in thousands, except where noted, unaudited):
For the Three Months Ended | ||||||||||||||||
June 30, | June 30, | Variance | Percentage | |||||||||||||
Slots: | ||||||||||||||||
Handle | $ | 1,923,281 | $ | 2,010,037 | $ | (86,756 | ) | (4.3 | %) | |||||||
Gross revenues | $ | 158,129 | $ | 165,224 | $ | (7,095 | ) | (4.3 | %) | |||||||
Net revenues | $ | 152,086 | $ | 158,761 | $ | (6,675 | ) | (4.2 | %) | |||||||
Free promotional slot plays (1) | $ | 17,624 | $ | 18,236 | $ | (612 | ) | (3.4 | %) | |||||||
Weighted average number of machines (in units) | 5,530 | 5,953 | (423 | ) | (7.1 | %) | ||||||||||
Hold percentage (gross) | 8.2 | % | 8.2 | % | - | - | ||||||||||
Win per unit per day (gross) (in dollars) | $ | 314 | $ | 305 | $ | 9 | 3.0 | % | ||||||||
Table games: | ||||||||||||||||
Drop | $ | 467,768 | $ | 469,276 | $ | (1,508 | ) | (0.3 | %) | |||||||
Revenues | $ | 76,176 | $ | 69,150 | $ | 7,026 | 10.2 | % | ||||||||
Weighted average number of games (in units) | 284 | 314 | (30 | ) | (9.6 | %) | ||||||||||
Hold percentage (2) | 16.3 | % | 14.7 | % | 1.6 | % | 10.9 | % | ||||||||
Win per unit per day (in dollars) | $ | 2,944 | $ | 2,421 | $ | 523 | 21.6 | % | ||||||||
Poker: | ||||||||||||||||
Revenues | $ | 2,314 | $ | 2,627 | $ | (313 | ) | (11.9 | %) | |||||||
Weighted average number of tables (in units) | 42 | 42 | - | - | ||||||||||||
Revenue per unit per day (in dollars) | $ | 606 | $ | 687 | $ | (81 | ) | (11.8 | %) | |||||||
(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.
(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.
Non-gaming data (in thousands, except where noted, unaudited):
For the Three Months Ended | ||||||||||||||||
June 30, | June 30, | Variance | Percentage | |||||||||||||
Food and beverage: | ||||||||||||||||
Revenues | $ | 15,341 | $ | 16,163 | $ | (822 | ) | (5.1 | %) | |||||||
Meals served | 708 | 809 | (101 | ) | (12.5 | %) | ||||||||||
Average price per meal served (in dollars) | $ | 16.38 | $ | 16.08 | $ | 0.30 | 1.9 | % | ||||||||
Hotel: | ||||||||||||||||
Revenues | $ | 10,318 | $ | 10,152 | $ | 166 | 1.6 | % | ||||||||
Rooms occupied | 104 | 103 | 1 | 1.0 | % | |||||||||||
Occupancy rate | 96.7 | % | 96.3 | % | 0.4 | % | 0.4 | % | ||||||||
Average daily room rate (in dollars) | $ | 95 | $ | 93 | 2 | 2.2 | % | |||||||||
Revenue per available room (in dollars) | $ | 92 | $ | 89 | 3 | 3.4 | % | |||||||||
Retail, entertainment and other: | ||||||||||||||||
Revenues | $ | 29,615 | $ | 27,620 | $ | 1,995 | 7.2 | % | ||||||||
Arena events (in events) | 26 | 38 | (12 | ) | (31.6 | %) | ||||||||||
Arena tickets | 174 | 229 | (55 | ) | (24.0 | %) | ||||||||||
Average price per Arena ticket (in dollars) | $ | 61.45 | $ | 42.23 | $ | 19.22 | 45.5 | % | ||||||||
Mohegan Sun at Pocono Downs
Operating results (in thousands, unaudited):
For the Three Months Ended | ||||||||||||||
June 30, | June 30, | Variance | Percentage | |||||||||||
Adjusted EBITDA | $ | 15,730 | $ | 14,686 | $ | 1,044 | 7.1 | % | ||||||
Income from operations | $ | 12,435 | $ | 10,716 | $ | 1,719 | 16.0 | % | ||||||
Operating costs and expenses | $ | 64,793 | $ | 68,844 | $ | (4,051 | ) | (5.9 | %) | |||||
Net revenues | $ | 77,228 | $ | 79,560 | $ | (2,332 | ) | (2.9 | %) | |||||
Gaming revenues | $ | 72,421 | $ | 74,747 | $ | (2,326 | ) | (3.1 | %) | |||||
Non-gaming revenues | $ | 9,457 | $ | 8,863 | $ | 594 | 6.7 | % | ||||||
The growth in Adjusted EBITDA and income from operations resulted primarily from higher table game revenues, combined with the reduction in operating costs and expenses, reflecting, in part, cost saving initiatives implemented in March 2013. These results were partially offset by lower slot revenues, which we believe reflected continued economic weakness and higher local property taxes. Table game revenues benefited from slightly higher volumes along with increased table game hold during the quarter. The growth in Adjusted EBITDA and income from operations also reflected higher food and beverage revenues resulting from strong patron response to our promotional offers. We believe overall business volumes were negatively impacted by construction disruptions associated with our hotel and convention center expansion. Adjusted EBITDA margin increased 190 basis points to 20.4% for the quarter ended June 30, 2013 from 18.5% in the third quarter of fiscal 2012.
Selected gaming data (in thousands, except where noted, unaudited):
For the Three Months Ended | ||||||||||||||||
June 30, | June 30, | Variance | Percentage | |||||||||||||
Slots: | ||||||||||||||||
Handle | $ | 774,897 | $ | 743,645 | $ | 31,252 | 4.2 | % | ||||||||
Gross revenues | $ | 56,600 | $ | 59,696 | $ | (3,096 | ) | (5.2 | %) | |||||||
Net revenues | $ | 56,575 | $ | 59,667 | $ | (3,092 | ) | (5.2 | %) | |||||||
Free promotional slot plays (1) | $ | 23,327 | $ | 15,324 | $ | 8,003 | 52.2 | % | ||||||||
Weighted average number of machines (in units) | 2,332 | 2,332 | - | - | ||||||||||||
Hold percentage (gross) | 7.3 | % | 8.0 | % | (0.7 | %) | (8.8 | %) | ||||||||
Win per unit per day (gross) (in dollars) | $ | 267 | $ | 281 | $ | (14 | ) | (5.0 | %) | |||||||
Table games: | ||||||||||||||||
Drop | $ | 51,437 | $ | 50,927 | $ | 510 | 1.0 | % | ||||||||
Revenues | $ | 10,048 | $ | 9,246 | $ | 802 | 8.7 | % | ||||||||
Weighted average number of games (in units) | 66 | 66 | - | - | ||||||||||||
Hold percentage (2) | 19.5 | % | 18.2 | % | 1.3 | % | 7.1 | % | ||||||||
Win per unit per day (in dollars) | $ | 1,673 | $ | 1,540 | $ | 133 | 8.6 | % | ||||||||
Poker: | ||||||||||||||||
Revenues | $ | 900 | $ | 871 | $ | 29 | 3.3 | % | ||||||||
Weighted average number of tables (in units) | ||||||||||||||||
