201501290730PR_NEWS_USPR_____NE18657 20150129T073000-0500 prnewswire.com 20150129 NE18657 1 urn:newsml:prnewswire.com:20150129:NE18657:1 20150129T073000-0500 20150129T073000-0500 MimeType/@FormalName Mohegan Tribal Gaming Authority Announces First Quarter Fiscal 2015 Operating Results UNCASVILLE, Conn., Jan. 29, 2015 MOHEGAN-TRIBAL-earns 201501290730PR_NEWS_USPR_____NE18657.xml Mohegan Tribal Gaming Authority Announces First Quarter Fiscal 2015 Operating Results

Mohegan Tribal Gaming Authority Announces First Quarter Fiscal 2015 Operating Results

PR Newswire

UNCASVILLE, Conn., Jan. 29, 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 first fiscal quarter ended December 31, 2014.

"We are extremely pleased with our operating results for the quarter," said Mitchell Grossinger Etess, Chief Executive Officer of the Authority. "During the quarter we achieved several measures of performance that indicate that our business is on the upswing including Mohegan Sun experiencing its largest quarterly increase in slot revenues since the fourth quarter of fiscal 2007. In addition, both Mohegan Sun and Mohegan Sun Pocono generated increased table game revenues, while Mohegan Sun's Adjusted EBITDA margin for the quarter was its highest first quarter Adjusted EBITDA margin since fiscal 2006. Furthermore, with the expiration of relinquishment payments and recent positive progress related to our Cowlitz Project, our outlook is much improved."

Consolidated operating results for the first quarter ended December 31, 2014 (unaudited):

  • Net revenues of $316.7 million, a 1.2% increase over the first quarter of fiscal 2014
  • Gaming revenues of $277.7 million, a 1.1% increase over the first quarter of fiscal 2014
  • Gross slot revenues of $197.9 million, a 0.4% increase over the first quarter of fiscal 2014
  • Table game revenues of $79.0 million, a 4.6% increase over the first quarter of fiscal 2014
  • Non-gaming revenues of $63.2 million, a 0.4% increase over the first quarter of fiscal 2014
  • Adjusted EBITDA, a non-GAAP measure described below, of $71.0 million, a 32.2% increase over the first quarter of fiscal 2014
  • Adjusted EBITDA margin of 22.4%, a 520 basis point increase over the first quarter of fiscal 2014
  • Income from operations of $49.8 million, a 49.6% increase over the first quarter of fiscal 2014
  • Net income attributable to the Authority of $14.8 million compared to net loss attributable to the Authority of $67.3 million in the first quarter of fiscal 2014

The growth in Adjusted EBITDA and income from operations principally resulted from improved table game and slot results at Mohegan Sun combined with lower overall operating costs and expenses primarily driven by continued strategic changes in operations designed to improve profitability and focus on managing expenses and enhancing operating efficiencies. The growth in Adjusted EBITDA and income from operations also resulted from increased non-gaming and table game revenues at Mohegan Sun Pocono which benefited from a full period of hotel and convention center operations. In addition, Adjusted EBITDA and income from operations reflected lower year over year Corporate expenses resulting from reduced expenditures associated with our pursuit of a Massachusetts casino license. The increase in net income attributable to the Authority was primarily attributable to a non-recurring loss on early extinguishment of debt related to our November 2013 refinancing transactions, combined with the increase in income from operations.

Mohegan Sun

Operating results (in thousands, unaudited): 

 


For the Three Months Ended  


December 31,


December 31,




Percentage


2014


2013


Variance


 Variance









Adjusted EBITDA

$                 65,076


$           50,480


$        14,596


28.9%

Income from operations

$                 47,418


$           34,643


$        12,775


36.9%

Operating costs and expenses

$               198,360


$         207,290


$        (8,930)


(4.3%)

Net revenues

$               245,778


$         241,933


$          3,845


1.6%

Gaming revenues

$               212,543


$         208,474


$          4,069


2.0%

Non-gaming revenues

$                 52,437


$           53,715


$        (1,278)


(2.4%)

 

The growth in Adjusted EBITDA and income from operations resulted from the increase in gaming revenues and the reduction in operating costs and expenses. The increase in gaming revenues primarily resulted from increased table game and slot revenues which benefited from higher year over year hold percentages. The reduction in operating costs and expenses primarily reflected continued strategic changes in operations designed to improve profitability and focus on managing expenses and enhancing operating efficiencies resulting in reduced casino marketing and promotional expenses and payroll costs. These results were partially offset by reduced non-gaming revenues primarily reflecting lower gasoline and entertainment revenues. Adjusted EBITDA margin increased to 26.5% for the quarter ended December 31, 2014 from 20.9% in the first quarter of fiscal 2014.

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


For the Three Months Ended  


December 31,


December 31,




Percentage


2014


2013


Variance


 Variance









Slots:








  Handle

$            1,757,195


$        1,790,830


$        (33,635)


(1.9%)

  Gross revenues 

$               145,972


$           144,163


$            1,809


1.3%

  Net revenues 

$               140,335


$           138,926


$            1,409


1.0%

  Free promotional slot plays (1)

$                 13,771


$             15,959


$          (2,188)


(13.7%)

  Weighted average number of machines (in units)

5,355


5,529


(174)


(3.1%)

  Hold percentage (gross)

8.3%


8.1%


0.2%


2.5%

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

$                      296


$                  283


$                 13


4.6%









Table games:








  Drop

$               454,132


$           495,722


$        (41,590)


(8.4%)

  Revenues

$                 68,599


$             65,733


$            2,866


4.4%

  Weighted average number of games (in units)

284


284


-


-

  Hold percentage (2)

15.1%


13.3%


1.8%


13.5%

  Win per unit per day (in dollars)

$                   2,624


$               2,516


$               108


4.3%









Poker:








  Revenues 

$                   2,646


$               2,471


$               175


7.1%

  Weighted average number of tables (in units)

42


42


-


-

  Revenue per unit per day (in dollars)

$                      685


$                  644


$                 41


6.4%

___________________________________________








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


For the Three Months Ended  


December 31,


December 31,




Percentage


2014


2013


Variance


 Variance









Food and beverage:








  Revenues

$                 15,890


$           15,981


$             (91)


(0.6%)

  Meals served

735


738


(3)


(0.4%)

  Average price per meal served (in dollars)

$                   15.84


$             16.22


$          (0.38)


(2.3%)









Hotel:








  Revenues

$                 10,989


$           10,251


$             738


7.2%

  Rooms occupied

106


104


2


1.9%

  Occupancy rate

98.0%


95.8%


2.2%


2.3%

  Average daily room rate (in dollars)

$                        97


$                  95


$                 2


2.1%

  Revenue per available room (in dollars)

$                        96


$                  91


$                 5


5.5%









Retail, entertainment and other:








  Revenues

$                 25,558


$           27,483


$        (1,925)


(7.0%)

  Arena events (in events)

26


25


1


4.0%

  Arena tickets 

164


153


11


7.2%

  Average price per Arena ticket (in dollars)

$                   56.84


$             66.68


$          (9.84)


(14.8%)

 

Mohegan Sun Pocono

Operating results (in thousands, unaudited):


For the Three Months Ended  


December 31,


December 31,




Percentage


2014


2013


Variance


 Variance









Adjusted EBITDA 

$                 11,664


$           11,825


$           (161)


(1.4%)

Income from operations

$                   8,479


$             7,577


$             902


11.9%

Operating costs and expenses

$                 61,917


$           63,106


$        (1,189)


(1.9%)

Net revenues

$                 70,396


$           70,683


$           (287)


(0.4%)

Gaming revenues

$                 65,191


$           66,279


$        (1,088)


(1.6%)

Non-gaming revenues

$                 10,190


$             8,970


$          1,220


13.6%

 

The slight decline in Adjusted EBITDA primarily resulted from lower slot revenues which we believe continued to be pressured by a sluggish regional economic environment, partially offset by higher non-gaming and table game revenues which benefited from a full period of hotel and convention center operations. The increase in income from operations resulted from non-recurring pre-opening costs and expenses associated with the November 2013 opening of the hotel and convention center. Adjusted EBITDA margin decreased slightly to 16.6% for the quarter ended December 31, 2014 from 16.7% in the first quarter of fiscal 2014.

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


For the Three Months Ended  


December 31,


December 31,




Percentage


2014


2013


Variance


 Variance









Slots:








  Handle

$               624,062


$            625,856


$        (1,794)


(0.3%)

  Gross revenues

$                 51,946


$              52,949


$        (1,003)


(1.9%)

  Net revenues

$                 51,796


$              52,908


$        (1,112)


(2.1%)

  Free promotional slot plays (1)

$                 10,855


$              11,331


$           (476)


(4.2%)

  Weighted average number of machines (in units)

2,331


2,331


-


-

  Hold percentage (gross)

8.3%


8.5%


(0.2%)


(2.4%)

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

$                      241


$                   247


$               (6)


(2.4%)









Table games:








  Drop

$                 58,838


$              48,408


$        10,430


21.5%

  Revenues

$                 10,392


$                9,774


$             618


6.3%

  Weighted average number of games (in units)

72


66


6


9.1%

  Hold percentage (2)

17.7%


20.2%


(2.5%)


(12.4%)

  Win per unit per day (in dollars)

$                   1,566


$                1,610


$             (44)


(2.7%)









Poker:








  Revenues 

$                      764


$                   873


$           (109)


(12.5%)

  Weighted average number of tables (in units)

18


18


-


-

  Revenue per unit per day (in dollars)

$                      461


$                   527


$             (66)


(12.5%)

___________________________________________








(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  


December 31,


December 31,




Percentage


2014


2013


Variance


 Variance









Food and beverage:








  Revenues

$                   6,781


$             6,738


$               43


0.6%

  Meals served

165


179


(14)


(7.8%)

  Average price per meal served (in dollars)

$                   18.55


$             17.42


$            1.13


6.5%









Hotel (1):








  Revenues

$                   1,237


$                441


$             796


180.5%

  Rooms occupied

20


8


12


150.0%

  Occupancy rate

92.2%


81.5%


10.7%


13.1%

  Average daily room rate (in dollars)

$                        58


$                  55


$                 3


5.5%

  Revenue per available room (in dollars)

$                        53


$                  45


$                 8


17.8%









Retail, entertainment and other:   








  Revenues

$                   2,172


$             1,791


$             381


21.3%

___________________________________________








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



 

Corporate

Operating results (in thousands, unaudited):


For the Three Months Ended  


December 31,


December 31,




Percentage


2014


2013


Variance


 Variance









Adjusted EBITDA 

$                 (5,750)


$           (8,617)


$          2,867


33.3%

Loss from operations

$                 (6,124)


$           (8,947)


$        (2,823)


(31.6%)

Operating costs and expenses

$                   7,955


$             9,686


$        (1,731)


(17.9%)

Net revenues (1)

$                   1,831


$                739


$          1,092


147.8%

__________________________________________








(1) Increase primarily represents inter-segment revenues.





 

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.

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




December 31,


December 31,


December 31,


December 31,


December 31,


December 31,




2014


2013


2014


2013


2014


2013

Mohegan Sun



$           65,076


$           50,480


$           47,418


$           34,643


$         245,778


$        241,933

Mohegan Sun Pocono


11,664


11,825


8,479


7,577


70,396


70,683

Corporate



(5,750)


(8,617)


(6,124)


(8,947)


1,831


739

Inter-segment revenues


-


-


-


-


(1,273)


(532)















Total



$           70,990


$           53,688


$           49,773


$           33,273


$         316,732


$        312,823













 

Other Information

Liquidity
As of December 31, 2014, the Authority held cash and cash equivalents of $­74.2 million compared to $49.1 million as of September 30, 2014. As of December 31, 2014, $41.0 million was drawn on the Authority's $100 million revolving credit facility and $6.0 million was drawn on the Authority's $16.5 million line of credit. As of December 31, 2014, letters of credit issued under the Authority's revolving credit facility totaled $3.1 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 $49.9 million of borrowing capacity under its revolving credit facility and line of credit as of December 31, 2014.

Interest Expense
Interest expense decreased by $2.7 million, or 7.0%, to $36.3 million for the quarter ended December 31, 2014 compared to $39.0 million in the first quarter of fiscal 2014. The reduction in interest expense was attributable to lower weighted average interest rate driven by the Authority's November 2013 refinancing transactions. Weighted average interest rate was 8.3% for the quarter ended December 31, 2014 compared to 9.2% in the first quarter of fiscal 2014. Weighted average outstanding debt was $1.75 billion for the quarter ended December 31, 2014 compared to $1.73 billion in the first quarter of fiscal 2014.

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


Capital Expenditures


Three Months Ended


Remaining Forecasted


Forecasted


December 31, 2014


Fiscal Year 2015


Fiscal Year 2015







Mohegan Sun:






    Maintenance

$                             0.4


$                               29.6


$                            30.0

           Subtotal

0.4


29.6


30.0

Mohegan Sun Pocono:






    Maintenance

0.4


4.6


5.0

    Development

0.2


-


0.2

           Subtotal

0.6


4.6


5.2

           Total

$                             1.0


$                               34.2


$                            35.2

 

Distributions to the Tribe
Distributions to the Tribe totaled $10.0 million for each of the quarters ended December 31, 2014 and 2013. Distributions to the Tribe are anticipated to total $50.0 million for fiscal 2015.

Conference Call
The Authority will host a conference call and simultaneous webcast regarding its first quarter fiscal 2015 operating results on Thursday, January 29, 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: 73860522

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, January 29, 2015. This replay will run through February 12, 2015. 

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

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

Conference ID: 73860522

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 544-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 a 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 a 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




Three Months Ended


Three Months Ended




December 31, 2014


December 31, 2013


Revenues:






   Gaming


$                      277,734


$                   274,753


   Food and beverage


22,671


22,719


   Hotel


12,226


10,692


   Retail, entertainment and other 


28,299


29,505


   Gross revenues


340,930


337,669


   Less - Promotional allowances


(24,198)


(24,846)


Net revenues


316,732


312,823


Operating costs and expenses:






   Gaming 


163,801


176,302


   Food and beverage 


10,811


10,099


   Hotel


3,503


3,720


   Retail, entertainment and other


12,244


12,776


   Advertising, general and administrative


48,113


46,942


   Corporate 


7,639


9,432


   Depreciation and amortization


20,053


19,118


   (Gain) loss on disposition of assets


739


(1)


   Pre-opening


-


1,162


   Relinquishment liability reassessment


56


-


Total operating costs and expenses


266,959


279,550


Income from operations


49,773


33,273


Other income (expense):






   Accretion of discount to the relinquishment liability


(227)


(551)


   Interest income


1,834


1,644


   Interest expense, net of capitalized interest


(36,255)


(38,969)


   Loss on early extinguishment of debt


-


(62,083)


   Other expense, net


(728)


(704)


Total other expense


(35,376)


(100,663)


Net income (loss)


14,397


(67,390)


Loss attributable to non-controlling interests


369


136


Net income (loss) attributable to Mohegan Tribal Gaming Authority


$                        14,766


$                   (67,254)


 

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)















For the Three Months Ended







December 31,


December 31,







2014


2013



Operating Results:








   Gross revenues



$           340,930


$           337,669



   Net revenues



$           316,732


$           312,823



   Income from operations



$             49,773


$             33,273












Other Data:








   Adjusted EBITDA



$             70,990


$             53,688



   Capital expenditures



$                  984


$             15,530



   Cash interest paid



$             13,193


$             27,764



   Distributions to the Tribe


$             10,000


$             10,000


































December 31,


September 30,



Balance Sheet Data:



2014


2014



   Cash and cash equivalents


$             74,187


$             49,108



   Relinquishment liability



$             18,865


$             25,194



   Capital leases



$               2,943


$               3,138



   Long-term debt, including current portion


$        1,735,673


$        1,730,936











MOHEGAN SUN

SUPPLEMENTAL DATA 

(unaudited)















For the Three Months Ended







December 31,


December 31,







2014


2013



Operating results:









Gross revenues (in thousands)


$           264,980


$           262,189




Net revenues (in thousands)


$           245,778


$           241,933




Income from operations (in thousands)


$             47,418


$             34,643




Operating margin



19.3%


14.3%












Adjusted EBITDA:









Adjusted EBITDA (in thousands)


$             65,076


$             50,480




Adjusted EBITDA margin


26.5%


20.9%












Capital expenditures (in thousands)


$                  352


$               5,039










Weighted average number of units:








Slot machines



5,355


5,529




Table games



284


284




Poker tables



42


42












Win per unit per day:









Slot machines (gross)



$                  296


$                  283




Table games



$               2,624


$               2,516




Poker tables



$                  685


$                  644












Hold percentage:









Slot machines (gross)



8.3%


8.1%




Table games



15.1%


13.3%












Food and beverage statistics:








Meals served (in thousands)


735


738




Average price per meal served 


$               15.84


$               16.22












Hotel statistics:









Rooms occupied (in thousands)


106


104




Occupancy rate



98.0%


95.8%




Average daily room rate


$                    97


$                    95




Revenue per available room


$                    96


$                    91












Entertainment statistics:









Arena events (in events)


26


25




Arena tickets (in thousands)


164


153




Average price per Arena ticket


$               56.84


$               66.68


 

MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)
















For the Three Months Ended







December 31,


December 31,







2014


2013


Operating results:









Gross revenues (in thousands)




$              75,381


$            75,249



Net revenues (in thousands)




$              70,396


$            70,683



Income from operations (in thousands)




$                8,479


$              7,577



Operating margin




12.0%


10.7%











Adjusted EBITDA:









Adjusted EBITDA (in thousands)




$              11,664


$            11,825



Adjusted EBITDA margin




16.6%


16.7%











Capital expenditures (in thousands)




$                   613


$                 987











Weighted average number of units:









Slot machines




2,331


2,331



Table games




72


66



Poker tables




18


18











Win per unit per day:









Slot machines (gross)




$                   241


$                 247



Table games




$                1,566


$              1,610



Poker tables




$                   461


$                 527











Hold percentage:









Slot machines (gross)




8.3%


8.5%



Table games




17.7%


20.2%











Food and beverage statistics:









Meals served (in thousands)




165


179



Average price per meal served 




$                18.55


$              17.42











Hotel statistics (1):









Rooms occupied (in thousands)




20


8



Occupancy rate




92.2%


81.5%



Average daily room rate




$                     58


$                   55



Revenue per available room




$                     53


$                   45


____________________________________________








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




CORPORATE

SUPPLEMENTAL DATA 

(unaudited)
















For the Three Months Ended







December 31,


December 31,







2014


2013


Capital expenditures (in thousands)




$                     19


$              9,504



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







December 31,


December 31,







2014


2013











Adjusted EBITDA




$              70,990


$            53,688


Depreciation and amortization




(20,053)


(19,118)


Gain (loss) on disposition of assets




(739)


1


Pre-opening




-


(1,162)


Relinquishment liability reassessment




(56)


-


Gain (loss) attributable to non-controlling interests




(369)


(136)


Income from operations




49,773


33,273











Accretion of discount to the relinquishment liability




(227)


(551)


Interest income




1,834


1,644


Interest expense, net of capitalized interest




(36,255)


(38,969)


Loss on early extinguishment of debt




-


(62,083)


Other expense, net




(728)


(704)


Net income (loss)




$              14,397


$          (67,390)

 

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 December 31, 2014




Income (Loss)


Depreciation


(Gain) Loss 




Relinquishment


(Gain) Loss Attributable 






from


and 


on Disposition of




Liability


to Non-controlling


Adjusted 




Operations


Amortization


Assets


Pre-opening


Reassessment


Interests


EBITDA

Mohegan Sun 


$           47,418


$            16,614


$                737


$                     -


$                       56


$                                    251


$          65,076

Mohegan Sun Pocono 


8,479


3,183


2


-


-


-


11,664

Corporate


(6,124)


256


-


-


-


118


(5,750)


Total


$           49,773


$            20,053


$                739


$                     -


$                       56


$                                    369


$          70,990




















For the Three Months Ended December 31, 2013




Income (Loss)


Depreciation


(Gain) Loss




Relinquishment


(Gain) Loss Attributable 






from


and 


on Disposition of




Liability


to Non-controlling


Adjusted 




Operations


Amortization


Assets


Pre-opening


Reassessment


Interests


EBITDA

Mohegan Sun 


$           34,643


$            15,838


$                  (1)


$                     -


$                       -


$                                       -


$          50,480

Mohegan Sun Pocono


7,577


3,086


-


1,162


-


-


11,825

Corporate


(8,947)


194


-


-


-


136


(8,617)


Total


$           33,273


$            19,118


$                  (1)


$               1,162


$                       -


$                                    136


$          53,688

 

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, gain or loss on disposition of assets, pre-opening costs and expenses, reassessment and accretion of discount to a relinquishment liability, loss on early extinguishment of debt, other non-operating income and expense and 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:
Mitchell Grossinger Etess
Chief Executive Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

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

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mohegan-tribal-gaming-authority-announces-first-quarter-fiscal-2015-operating-results-300027460.html

SOURCE Mohegan Tribal Gaming Authority