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MOHEGAN GAMING & ENTERTAINMENT
ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2018 OPERATING RESULTS
Uncasville, Connecticut, December 6, 2018 Mohegan Gaming & Entertainment (MGE or the Company), a master developer and operator of premier global integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut and Inspire Korea in Incheon, South Korea, announced today operating results for its fourth fiscal quarter ended September 30, 2018.
Consistent with the Companys updated guidance, consolidated fourth quarter revenue and Adjusted EBITDA were below prior year results, in part due to the impact of a recent competitive opening in the Northeast gaming market. The declines in Connecticut were partially offset by stronger year-over-year EBITDA growth in Pennsylvania and in Corporate. Overall results also reflect the initial implementation phases of our previously disclosed multi-year profit enhancement initiatives, initiatives which will continue for the foreseeable future, said Mario Kontomerkos, President & Chief Executive Officer of MGE. The fourth quarter was also notable for the Company as we were named the winning bidder to acquire certain assets associated with two significant destination casino resorts in Niagara Falls, Canada. Further, subsequent to quarter end, we made substantial progress advancing our development efforts in South Korea and also received approximately $107 million in repayments as the result of a successful ilani refinancing. Together, these achievements diversify and strengthen our long-term revenue sources and credit profile, and ensure the continued long-term success of MGE.
Selected consolidated operating results for the fourth quarter ended September 30, 2018 and prior year period (unaudited):
Net revenues of $347.2 million vs. $362.0 million in the prior year period, a 4.1% decrease;
Gaming revenues of $291.1 million vs. $307.1 million in the prior year period, a 5.2% decrease;
Gross slot revenues of $205.0 million vs. $213.7 million in the prior year period, a 4.0% decrease;
Table game revenues of $86.9 million vs. $94.3 million in the prior year period, a 7.9% decrease;
Non-gaming revenues of $85.0 million vs. $84.5 million in the prior year period, a 0.5% increase;
Total operating expenses of $277.7 million vs. $283.6 million in the prior year period, a 2.1% decrease; and
Adjusted EBITDA of $94.5 million vs. $102.0 million in the prior year period, a 7.3% decrease.
Consolidated net revenues declined modestly during the quarter, primarily driven by a softer July gaming performance, a challenging year over year comparison in gaming revenues at Mohegan Sun in September of 2017, and continued increases in promotional activity in the Mohegan Sun Pocono gaming market. These factors, as well as increases in slot taxes assessed by the Commonwealth of Pennsylvania, contributed to the year-over-year decline in Adjusted EBITDA. Though early in the competitive cycle, the impact of new competition in the New England region has been in-line to slightly better than expected. Total operating expenses were lower than prior year driven by the benefit of the implementation of cost reduction programs. These savings were partially offset by increased costs associated with higher healthcare expenses and utility costs.
The following information was filed by Mohegan Tribal Gaming Authority on Thursday, December 6, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.