MOHEGAN ANNOUNCES SECOND QUARTER FISCAL 2024 OPERATING RESULTS
MOHEGAN ANNOUNCES SECOND QUARTER FISCAL 2024 OPERATING RESULTS

UNCASVILLE, Conn., May 9, 2024 /PRNewswire/ — Mohegan Tribal Gaming Authority (“Mohegan,” “we” or “our”) today announced operating results for its second fiscal quarter ended March 31, 2024.

Second Quarter 2024 and Recent Highlights:

  • Mohegan achieved its highest quarterly net revenue in our history, up 13.8% year over year.
  • Mohegan INSPIRE celebrated its official grand opening on March 5 and earned a prestigious five-star hotel rating.
  • Mohegan Digital launched in Pennsylvania on April 2, as we continue to expand our online gaming presence and grow brand recognition to complement our land-based operations.
  • Mohegan successfully implemented a new global Enterprise Resource Planning system, on April 1, to unlock operating efficiencies which support Mohegan’s growth and transformation into a premier global integrated resort operator.

“These important milestones are vital to the foundation we’re building to ensure our continued success as we build for 13 generations to come, and beyond. As we work towards our objectives, these recent achievements demonstrate the effectiveness of our strategy to support our transformation into a world renown global resort operator,” said Raymond Pineault, Chief Executive Officer of Mohegan.

Mohegan Operating Results










Three Months Ended


Variance

($ in thousands, unaudited)

March 31, 2024


March 31, 2023


$


%

Net revenues

$                    461,734


$                    405,847


$               55,887


13.8 %

Income from operations

31,210


63,817


(32,607)


(51.1) %

Net loss attributable to Mohegan

(46,079)


(9,634)


(36,445)


(378.3) %

Adjusted EBITDA1

83,959


102,145


(18,186)


(17.8) %









“Net revenues of $461.7 million increased $55.9 million compared with the prior-year period, primarily due to continued growth in Mohegan Digital and revenue from Mohegan INSPIRE,” said Ari Glazer, Chief Financial Officer of Mohegan. “Consolidated Adjusted EBITDA of $84.0 million decreased $18.2 million compared with the prior-year period, primarily due to operating costs related to the opening of Mohegan INSPIRE and non-controlling interest adjustments at Niagara Resorts.”

_____________________________

Refer to the Reconciliation of Non-US GAAP Financial Measures for a discussion and reconciliation of Adjusted EBITDA.

Domestic










Three Months Ended


Variance

($ in thousands, unaudited)

March 31, 2024


March 31, 2023


$


%

Net revenues

$                    300,434


297,339


$                 3,095


1.0 %

Income from operations

51,946


55,070


(3,124)


(5.7) %

Net income

50,163


53,231


(3,068)


(5.8) %

Adjusted EBITDA

79,653


79,653



— %









Net revenues of $300.4 million increased $3.1 million compared with the prior-year period, primarily due to higher non-gaming revenues. The non-gaming growth was driven by strong entertainment, food and beverage revenues in the period. Adjusted EBITDA of $79.7 million and Adjusted EBITDA margin of 26.5% were flat compared with the prior-year period.

International










Three Months Ended


Variance

($ in thousands, unaudited)

March 31, 2024


March 31, 2023


$


%

Net revenues

$                    108,071


$                      70,750


$               37,321


52.8 %

Loss from operations

(39,491)


(6,868)


(32,623)


(475.0) %

Net income (loss)

(63,592)


438


(64,030)


N.M.

Adjusted EBITDA

(16,580)


4,268


(20,848)


N.M.









Net revenues of $108.1 million increased $37.3 million compared with the prior-year period, primarily driven by Mohegan INSPIRE. Adjusted EBITDA loss of $16.6 million was unfavorable, primarily due to operating costs related to the opening of Mohegan INSPIRE and a $5.0 million non-controlling interest adjustment related to Niagara Resorts. Excluding the adjustment for non-controlling interest, Adjusted EBITDA loss would have been $11.6 million, which we believe presents a more accurate comparison with prior periods.

Mohegan Digital










Three Months Ended


Variance

($ in thousands, unaudited)

March 31, 2024


March 31, 2023


$


%

Net revenues

$                      38,778


$                      22,710


$               16,068


70.8 %

Income from operations

19,949


17,810


2,139


12.0 %

Net income

20,258


18,150


2,108


11.6 %

Adjusted EBITDA

20,239


18,133


2,106


11.6 %









Net revenues of $38.8 million increased $16.1 million compared with the prior-year period, partially due to $8.8 million in iGaming tax reimbursements from our iGaming partners being included as an increase to both net revenues and expenses in the current year. Adjusted EBITDA of $20.2 million was $2.1 million favorable compared with the prior-year period, as Mohegan Digital continues to experience strong growth.

In addition, Mohegan Digital’s prior-year results include a favorable one-time adjustment related to the revenue share allocation from our digital gaming partner.

Management, development and other










Three Months Ended


Variance

($ in thousands, unaudited)

March 31, 2024


March 31, 2023


$


%

Net revenues

$                      18,369


$                      17,503


$                    866


4.9 %

Income from operations

9,807


11,909


(2,102)


(17.7) %

Net loss

(9,859)


(9,253)


(606)


(6.5) %

Adjusted EBITDA

10,003


11,594


(1,591)


(13.7) %









Net revenues of $18.4 million increased $0.9 million compared with the prior-year period, primarily due to inter-company entertainment revenue of $3.1 million, which was partially offset by Mohegan INSPIRE development fees earned in the prior-year period. Adjusted EBITDA of $10.0 million was $1.6 million unfavorable compared with the prior-year period.

Corporate and other










Three Months Ended


Variance

($ in thousands, unaudited)

March 31, 2024


March 31, 2023


$


%

Net revenues

$                              22


$                            142


$                  (120)


(84.5) %

Loss from operations

(11,086)


(13,210)


2,124


16.1 %

Net loss

(43,052)


(71,306)


28,254


39.6 %

Adjusted EBITDA

(9,441)


(10,609)


1,168


11.0 %









Adjusted EBITDA was $1.2 million favorable compared with the prior-year period, primarily due to Corporate labor savings. Net loss was $28.3 million favorable compared with the prior-year period, primarily due to a gain on fair value adjustment driven by changes in the estimated value of the warrants and put option related to our Korea Term Loan.

Other Information

Liquidity

As of March 31, 2024 and September 30, 2023, Mohegan held cash and cash equivalents of $197.8 million and $217.3 million, respectively. Inclusive of letters of credit, which reduce borrowing availability, Mohegan had $145.6 million of borrowing capacity under its senior secured credit facility and line of credit as of March 31, 2024. In addition, inclusive of letters of credit, which reduce borrowing availability, Niagara Resorts had $36.9 million of borrowing capacity under its revolving credit and swingline facility as of March 31, 2024.

Conference Call

Mohegan will host a conference call regarding its second quarter fiscal 2024 operating results on May 9, 2024, at 11:00 a.m. (Eastern Time).

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

(877) 407-0890
+1(201) 389-0918 (International)

A live stream and subsequent replay of the call will also be available at: https://www.webcast-eqs.com/mohegan20240509 

Call-in participants should join five minutes in advance to ensure they are connected prior to the initiation of the call. Questions and answers will be reserved for call-in analysts and investors. Interested parties also may listen to a replay of the entire conference call commencing two hours after the call’s completion on Thursday, May 9, 2024. This replay will run through Thursday, May 23, 2024.

About Mohegan

Mohegan is the owner, developer, and manager of premier entertainment resorts in the United States, Canada, and Northern Asia. Mohegan’s U.S. operations include resorts in Connecticut, Washington, Pennsylvania, New Jersey, and Nevada; Canadian operations are based in Niagara Falls, Ontario; and Mohegan INSPIRE is located in Incheon, South Korea. The brand’s iGaming division, Mohegan Digital, provides cutting-edge online gaming solutions to Mohegan’s loyal fan base and meets the digital needs of customers on a global scale. Mohegan is owner and operator of Connecticut Sun, a professional basketball team in the WNBA. For more information on Mohegan and its properties, please visit www.mohegangaming.com

Cautionary Statements Regarding Forward-Looking Information

Some information included within this press release contains forward-looking statements. Such statements may include information relating to business development activities, as well as capital spending, financing sources, the effects of regulation, including gaming and tax regulation, and increased competition. These statements can sometimes be identified by our use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect” or “intend” and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated future results and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by us or on our behalf. The forward-looking statements included within this press release are made only as of the date of this press release. We do not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. We cannot assure you that projected results or events will be achieved or will occur.

Contact:
Joffre Wells
Vice President of Capital Markets, Investor Relations & Corporate Treasurer
Mohegan
(860) 862-9135

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands)

(unaudited)

 



Three Months Ended


March 31, 2024


March 31, 2023

Revenues:




Gaming

$                 305,400


$                 285,458

Food and beverage

48,924


37,492

Hotel

38,098


27,817

Retail, entertainment and other

69,312


55,080

Net revenues

461,734


405,847

Operating costs and expenses:




Gaming

169,563


143,009

Food and beverage

46,464


32,098

Hotel

20,152


12,521

Retail, entertainment and other

30,949


20,459

Advertising, general and administrative

93,162


79,573

Corporate

12,737


16,050

Depreciation and amortization

35,204


25,483

Impairment of tangible assets

5,855


Other, net

16,438


12,837

Total operating costs and expenses

430,524


342,030

Income from operations

31,210


63,817

Other income (expense):




Interest income

363


574

Interest expense, net

(88,256)


(60,043)

Loss on modification and early extinguishment of debt

(7)


(730)

Gain (loss) on fair value adjustment

13,940


(13,450)

Other, net

75


(86)

Total other expense

(73,885)


(73,735)

Loss before income tax

(42,675)


(9,918)

Income tax (benefit) provision

(1,784)


276

Net loss

(44,459)


(9,642)

(Income) loss attributable to non-controlling interests

(1,620)


8

Loss attributable to Mohegan Tribal Gaming Authority

$                  (46,079)


$                   (9,634)

MOHEGAN TRIBAL GAMING AUTHORITY
RECONCILIATION OF NON-US GAAP FINANCIAL MEASURES

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 accounting principles generally accepted in the United States of America (“US GAAP”). Mohegan historically has evaluated its operating performance with the non-GAAP measure, Adjusted EBITDA, which as used in this press release, primarily represents EBITDA further adjusted to exclude certain non-cash and other items as exhibited in the following reconciliation.

Adjusted EBITDA provides an additional way to evaluate Mohegan’s operations and, when viewed with both Mohegan’s GAAP results and the reconciliation provided, Mohegan believes that Adjusted EBITDA provides a more complete understanding of its financial performance than could be otherwise obtained absent this disclosure. Adjusted EBITDA is presented solely as a supplemental disclosure because: (1) Mohegan believes it enhances an overall understanding of Mohegan’s past and current financial performance; (2) Mohegan 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 because Adjusted EBITDA excludes certain items that may not be indicative of Mohegan’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) Mohegan 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 US GAAP financial measure including net income (as an indicator of Mohegan’s performance) or cash flows provided by operating activities (as an indicator of Mohegan’s liquidity), nor should it be considered as an indicator of Mohegan’s overall financial performance. Mohegan’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, that are items that have been incurred in the past and will continue to be incurred in the future; and therefore, should be considered in the overall evaluation of Mohegan’s results. Mohegan compensates for these limitations by providing relevant disclosures of items excluded in the calculation of Adjusted EBITDA, both in its reconciliation to the US GAAP financial measure of net income and in its consolidated financial statements, all of which should be considered when evaluating its results. Mohegan strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.



Three Months Ended March 31, 2024

($ in thousands, unaudited)


Domestic


International


Mohegan
Digital


Management,
development
and other


Corporate and
other


Eliminations


Consolidated

Net income (loss) attributable to 
Mohegan


$               50,163


$             (63,592)


$               20,258


$               (9,859)


$             (43,052)


$                         3


$             (46,079)

Income (loss) attributable to non-
controlling interests



1,878


(291)


33




1,620

Income tax provision



1,740



44




1,784

Interest income


(20)


(292)


(18)


(28)


(5)



(363)

Interest expense, net


1,803


20,650



19,481


46,322



88,256

(Gain)/loss on modification and early
extinguishment of debt



8




(1)



7

Gain on fair value adjustment






(13,940)



(13,940)

Other, net



117



136


(410)


82


(75)

Income (loss) from operations


51,946


(39,491)


19,949


9,807


(11,086)


85


31,210

Adjusted EBITDA attributable to non-
controlling interests



(5,006)


291


(33)




(4,748)

Depreciation and amortization


21,290


13,541



263


110



35,204

Impairment of tangible assets


5,855







5,855

Other, net


562


14,376


(1)


(34)


1,535



16,438

Adjusted EBITDA


$               79,653


$             (16,580)


$               20,239


$               10,003


$               (9,441)


$                       85


$               83,959



Three Months Ended March 31, 2023

($ in thousands, unaudited)


Domestic


International


Mohegan
Digital


Management,
development
and other


Corporate and
other


Eliminations


Consolidated

Net income (loss) attributable to
Mohegan


$               53,231


$                     438


$               18,150


$                (9,253)


$              (71,306)


$                   (894)


$                (9,634)

Income (loss) attributable to non-
controlling interests




(323)


315




(8)

Income tax (benefit) provision



(375)



99




(276)

Interest income


(1)


(558)


(17)


(19)


19


2


(574)

Interest expense, net


1,840


1,720



12,105


44,380


(2)


60,043

(Gain)/loss on modification and early
extinguishment of debt



(49)




779



730

Loss on fair value adjustment






13,450



13,450

Other, net



(8,044)



8,662


(532)



86

Income (loss) from operations


55,070


(6,868)


17,810


11,909


(13,210)


(894)


63,817

Adjusted EBITDA attributable to non-
controlling interests




323


(315)




8

Depreciation and amortization


20,723


4,699




61



25,483

Other, net


3,860


6,437




2,540



12,837

Adjusted EBITDA


$               79,653


$                  4,268


$               18,133


$               11,594


$              (10,609)


$                   (894)


$             102,145

SOURCE Mohegan

Originally published at https://www.prnewswire.com/news-releases/mohegan-announces-second-quarter-fiscal-2024-operating-results-302140593.html
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