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Exhibit 99.1

MOHEGAN TRIBAL GAMING AUTHORITY ANNOUNCES

SECOND QUARTER FISCAL 2016 OPERATING RESULTS

Uncasville, Connecticut, April 28, 2016 – 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,
2016
     March 31,
2015
     Variance      Percentage
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,
2016
    March 31,
2015
    Variance     Percentage
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,
2016
    March 31,
2015
    Variance     Percentage
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,
2016
     March 31,
2015
     Variance      Percentage
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,
2016
    March 31,
2015
    Variance     Percentage
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,
2016
    March 31,
2015
    Variance     Percentage
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,
2016
     March 31,
2015
     Variance      Percentage
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

 

(in thousands, unaudited)    Adjusted EBITDA
For the Three Months Ended
    Income (Loss) from Operations
For the Three Months Ended
    Net Revenues
For the Three Months Ended
 
     March 31,
2016
    March 31,
2015
    March 31, 2016     March 31, 2015     March 31,
2016
    March 31,
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
For the Six Months Ended
    Income (Loss) from Operations
For the Six Months Ended
    Net Revenues
For the Six Months Ended
 
     March 31,
2016
    March 31,
2015
    March 31, 2016     March 31, 2015     March 31,
2016
    March 31,
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
March 31, 2016
     Remaining Forecasted
Fiscal Year 2016
     Forecasted
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
Three Months Ended
March 31, 2016
    For the
Three Months Ended
March 31, 2015
    For the
Six Months Ended
March 31, 2016
    For the
Six Months Ended
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,  
                   2016      2015  

Balance Sheet Data:

           

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)
from
Operations
    Depreciation
and
Amortization
    Share
Compensation
    Loss on
Disposition
of Assets
    Severance     Impairment
of Project
Horizon
    Relinquishment
Liability
Reassessment
    (Income)
Loss
Attributable
to Non-
controlling
Interests
    Adjusted
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)
from
Operations
    Depreciation
and
Amortization
    Share
Compensation
    Loss on
Disposition
of Assets
    Severance     Impairment
of Project
Horizon
    Relinquishment
Liability
Reassessment
    (Income)
Loss
Attributable
to Non-
controlling
Interests
    Adjusted
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)
from
Operations
    Depreciation
and
Amortization
    Share
Compensation
    Loss on
Disposition
of Assets
    Severance     Impairment
of Project
Horizon
    Relinquishment
Liability
Reassessment
    (Income)
Loss
Attributable
to Non-
controlling
Interests
    Adjusted
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)
from
Operations
    Depreciation
and
Amortization
    Share
Compensation
    Loss on
Disposition
of Assets
    Severance     Impairment
of Project
Horizon
    Relinquishment
Liability
Reassessment
    (Income)
Loss
Attributable
to Non-
controlling
Interests
    Adjusted
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