MOHEGAN ANNOUNCES THIRD QUARTER FISCAL 2022 OPERATING RESULTS


UNCASVILLE, Conn., Aug. 11, 2022 /PRNewswire/ — Mohegan Tribal Gaming Authority (“MTGA,” “Mohegan,” “we,” or “our” ) today announced operating results for its third fiscal quarter ended June 30, 2022.

Mohegan Operating Results










Three Months Ended

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Variance

($ in thousands, unaudited)

June 30, 2022


June 30, 2021


$


%

Net revenues

$                    417,078


$                    328,189


$               88,889


27.1 %

Income from operations

90,126


64,041


26,085


40.7 %

 Net income attributable to MTGA

59,364


25,367


33,997


134.0 %

Adjusted EBITDA1

120,018


101,683


18,335


18.0 %









“Our Consolidated Adjusted EBITDA of $120.0 million was the highest quarterly total in our 25-year history,” said Raymond Pineault, Chief Executive Officer of Mohegan. “This was the first full fiscal quarter of operations without COVID-19 restrictions at MGE Niagara Resorts since the pandemic first closed the property in March of 2020, and Mohegan Digital continues to execute a strategy that is focused on profitability. These results reflect the success of Mohegan’s diversification strategies.”

Carol Anderson, Chief Financial Officer of Mohegan, also noted, “The Consolidated Adjusted EBITDA margin of 28.8% was 529 basis points higher than the pre-COVID comparable fiscal 2019 quarter. Compared to the fiscal 2021 quarter, the Adjusted EBITDA margin has declined due to the continued reintroduction of some lower margin non-gaming amenities since the prior-year period.”

The year-over-year improvement in net revenues was due to strong performance at Mohegan’s owned properties and the addition of Mohegan Digital. Volumes in the prior-year period were negatively impacted by various COVID-19 related restrictions at our domestic properties and the closure of the MGE Niagara Resorts for the entire period, self-imposed capacity limitations at Mohegan Sun and state-mandated health protocols at most of Mohegan’s other properties.

____________________________

1 See the Reconciliation of Non-GAAP Financial Measures discussion later in this release for a reconciliation of Adjusted EBITDA.

Mohegan Sun










Three Months Ended


Variance

($ in thousands, unaudited)

June 30, 2022


June 30, 2021


$


%

Net revenues

$                    236,465


$                    220,061


$               16,404


7.5 %

Income from operations

58,744


65,183


(6,439)


(9.9) %

 Net income

58,688


64,744


(6,056)


(9.4) %

Adjusted EBITDA

75,712


82,427


(6,715)


(8.1) %









Net revenues increased $16.4 million largely as a result of the reintroduction of non-gaming amenities that were not offered in the prior-year period due to COVID-related restrictions and market conditions. Adjusted EBITDA of $75.7 million was 8.1% unfavorable to the prior-year period, where we had significantly lower labor, marketing and other operating expenses. As a result, the Adjusted EBITDA margin in the prior-year period was abnormally high at 37.5%. The current period Adjusted EBITDA margin of 32.0% was 521 basis points favorable to the pre-COVID comparable fiscal 2019 quarter.

Mohegan Sun Pocono










Three Months Ended


Variance

($ in thousands, unaudited)

June 30, 2022


June 30, 2021


$


%

Net revenues

$                      66,783


$                      62,931


$                 3,852


6.1 %

Income from operations

11,917


12,319


(402)


(3.3) %

 Net income

10,180


10,223


(43)


(0.4) %

Adjusted EBITDA

14,958


15,350


(392)


(2.6) %









Net revenues increased $3.9 million due to increased slot volumes and increased non-gaming revenue. During the prior-year period, volumes were impacted by reduced non-gaming amenities and COVID-related capacity restrictions that were in place until May 31, 2021. Adjusted EBITDA decreased $0.4 million, or 2.6%, compared with the prior-year period, primarily due to increased labor expenses in the current year. The Adjusted EBITDA margin of 22.4% was 200 basis points unfavorable to the prior-year period, but 55 basis points favorable to the pre-COVID comparable fiscal 2019 quarter.

MGE Niagara Resorts










Three Months Ended


Variance

($ in thousands, unaudited)

June 30, 2022


June 30, 2021


$


%

Net revenues

$                      79,627


$                      14,380


$               65,247


N.M.

Income (loss) from operations

14,962


(11,755)


26,717


N.M.

Net income (loss)

9,438


(9,086)


18,524


N.M.

Adjusted EBITDA

19,576


(6,772)


26,348


N.M.

N.M. = Not meaningful
















This was the first full fiscal quarter of operations since the beginning of the COVID-19 pandemic that MGE Niagara Resorts operated without government mandated restrictions.

Net revenues of $79.6 million and Adjusted EBITDA of $19.6 million were $65.2 million and $26.3 million favorable, respectively, to the prior year due to the MGE Niagara Resorts closure for the entire prior-year period. The Adjusted EBITDA margin of 24.6% reflects MGE Niagara Resorts current COVID-19 recovery period, where lower margin non-gaming amenities are slowly being reintroduced with a continued focus on profitability. Mohegan commenced operations of MGE Niagara Resorts in June 2019.

Management, Development and Other










Three Months Ended


Variance

($ in thousands, unaudited)

June 30, 2022


June 30, 2021


$


%

Net revenues

$                      16,817


$                      21,782


$                (4,965)


(22.8) %

Income from operations

8,269


5,711


2,558


44.8 %

 Net income

22,105


3,610


18,495


N.M.

Adjusted EBITDA

11,602


16,434


(4,832)


(29.4) %

N.M. = Not meaningful
















Net revenues of $16.8 million were $5.0 million, or 22.8%, unfavorable to the prior-year period. The prior year benefited from limited discretionary spending options in the Pacific Northwest which significantly increased patron volumes at ilani Casino Resort, and fees earned from the management of Paragon Casino Resort. Net income of $22.1 million was $18.5 million favorable to 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 offset by additional interest expense, both related to the Inspire Korea financing.

All Other










Three Months Ended


Variance

($ in thousands, unaudited)

June 30, 2022


June 30, 2021


$


%

Net revenues

$                     18,776


$                        8,362


$                  10,414


124.5 %

Income (loss) from operations

6,798


(1,045)


7,843


N.M.

Net income (loss)

4,982


(2,719)


7,701


N.M.

Adjusted EBITDA

8,367


595


7,772


N.M.

N.M. = Not meaningful
















All other reflects the operating results of Mohegan Sun Las Vegas and Mohegan Digital’s online casino gaming and sports wagering operations. Total Adjusted EBITDA of $8.4 million was comprised of $0.8 million from Mohegan Sun Las Vegas and $7.6 million from Mohegan Digital. In the current quarter, Mohegan Digital benefited from a cumulative update to the revenue share allocation from our digital gaming partner and continues to benefit from our focus on profitability. Mohegan Sun Las Vegas’s Adjusted EBITDA was impacted by lower than normal table hold. Normalized for table games hold, Mohegan Sun Las Vegas Adjusted EBITDA would have been $1.8 million.

Corporate










Three Months Ended


Variance

($ in thousands, unaudited)

June 30, 2022


June 30, 2021


$


%

Net revenues

$                              85


$                            162


$                     (77)


(47.5) %

Loss from operations

(10,634)


(6,374)


(4,260)


(66.8) %

Net loss

(46,101)


(41,407)


(4,694)


(11.3) %

Adjusted EBITDA

(10,267)


(6,353)


(3,914)


(61.6) %









Adjusted EBITDA was $3.9 million unfavorable to the prior-year period, primarily due to a $2.3 million increase in labor as a result of staffing increases in the current period and increases in other operating expenses.

Other Information

Liquidity

As of June 30, 2022, and September 30, 2021, Mohegan held cash and cash equivalents of $156.9 million and $149.8 million, respectively. Inclusive of letters of credit, which reduce borrowing availability, Mohegan had $261.0 million of borrowing capacity under its senior secured credit facility and line of credit as of June 30, 2022. In addition, inclusive of letters of credit, which reduce borrowing availability, MGE Niagara Resorts had $113.6 million of borrowing capacity under the MGE Niagara Resorts revolving credit facility and line of credit as of June 30, 2022.

Conference Call

Mohegan will host a conference call regarding its third quarter fiscal 2022 operating results on August 11, 2022 at 11:00 a.m. (Eastern Daylight Time).

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

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

The live stream of the call will also be available at: https://www.webcast-eqs.com/mohegan20220811

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, August 11, 2022. This replay will run through Thursday, August 25, 2022.

The webcast site for the replay of the conference call is as follows:
https://www.webcast-eqs.com/mohegan20220811 

About Mohegan

As of May 16, 2022, Mohegan Tribal Gaming Authority operates under the name “Mohegan,” a natural evolution for the brand.

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

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 Mohegan. Information concerning potential factors that could affect Mohegan’s financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2021, as well as in Mohegan’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. Mohegan does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. Mohegan cannot assure that projected results or events will be achieved or will occur.

Contact:
Carol K. Anderson
Chief Financial Officer
Mohegan
(860) 862-8000

MOHEGAN TRIBAL GAMING AUTHORITY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(in thousands)

(unaudited)



Three Months Ended


June 30, 2022


June 30, 2021

Revenues:




Gaming

$             293,973


$             241,289

Food and beverage

35,622


20,826

Hotel

30,256


22,188

Retail, entertainment and other

57,227


43,886

Net revenues

417,078


328,189

Operating costs and expenses:




Gaming

139,760


122,326

Food and beverage

29,521


17,544

Hotel

12,354


8,926

Retail, entertainment and other

20,571


10,276

Advertising, general and administrative

79,377


55,661

Corporate

15,278


11,238

Depreciation and amortization

26,085


27,140

Impairment of tangible assets


Impairment of intangible assets


Other, net

4,006


11,037

Total operating costs and expenses

326,952


264,148

Income from operations

90,126


64,041

Other income (expense):




Interest income

64


125

Interest expense, net

(53,969)


(43,929)

Loss on modification of debt

(3)


(20)

Gain on fair value adjustment

26,796


Other, net

83


2,373

Total other expense

(27,029)


(41,451)

Income (loss) before income tax

63,097


22,590

Income tax benefit (provision)

(3,534)


3,312

Net income (loss)

59,563


25,902

Income attributable to non-controlling interests

(199)


(535)

Net income attributable to Mohegan Tribal Gaming Authority

59,364


25,367

Comprehensive income (loss):




Foreign currency translation adjustment

(29,723)


216

Other comprehensive income (loss)

(29,723)


216

Other comprehensive income attributable to non-controlling interests


Other comprehensive income (loss) attributable to

Mohegan Tribal Gaming Authority

(29,723)


216

Comprehensive income (loss) attributable to

Mohegan Tribal Gaming Authority

$               29,641


$               25,583


MOHEGAN TRIBAL GAMING AUTHORITY
RECONCILIATION OF NON-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 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 reconciliations 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 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 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. Mohegan strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.



Three Months Ended June 30, 2022



MS


MSP


MGE
Niagara


Mgt., Dev. &
Other


All Other


Corporate


Eliminations


Consolidated

Net income (loss) attributable to MTGA


$          58,688


$          10,180


$            9,438


$          22,105


$            4,982


$         (46,101)


$                 72


$            59,364

 Income attributable to non-controlling interests





199





199

Income tax provision




3,290


244





3,534

Interest income


1


(2)


(9)


(49)



(6)


1


(64)

Interest expense, net


55


1,739


2,983


12,598


1,816


34,781


(3)


53,969

Loss on modification of debt




3






3

Gain on fair value adjustment





(26,796)





(26,796)

Other, net




(743)


(32)



692



(83)

Income (loss) from operations


58,744


11,917


14,962


8,269


6,798


(10,634)


70


90,126

Adjusted EBITDA attributable to non-controlling interests





(199)





(199)

Depreciation and amortization


16,953


2,988


4,520


10


1,549


65



26,085

Other, net


15


53


94


3,522


20


302



4,006

Adjusted EBITDA


$          75,712


$          14,958


$          19,576


$          11,602


$            8,367


$         (10,267)


$                 70


$          120,018



Three Months Ended June 30, 2021



MS


MSP


MGE
Niagara


Mgt., Dev. & Other


All Other


Corporate


Eliminations


Consolidated

Net income (loss) attributable to MTGA


$          64,744


$          10,223


$           (9,086)


$            3,610


$           (2,719)


$         (41,407)


$                   2


$            25,367

 Income attributable to non-controlling interests





535





535

Income tax (benefit) provision




(3,393)


81





(3,312)

Interest income


1



(21)


(105)





(125)

Interest expense, net


438


2,096


3,014


1,691


1,674


35,016



43,929

Loss on modification of debt




20






20

Other, net




(2,289)


(101)



17



(2,373)

Income (loss) from operations


65,183


12,319


(11,755)


5,711


(1,045)


(6,374)


2


64,041

Adjusted EBITDA attributable to non-controlling interests





(551)





(551)

Depreciation and amortization


17,390


3,191


4,983


7


1,548


21



27,140

Other, net


(146)


(160)



11,251


92




11,037

Adjusted EBITDA


$          82,427


$          15,350


$           (6,772)


$          16,418


$               595


$           (6,353)


$                   2


$          101,667

SOURCE Mohegan

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MOHEGAN ANNOUNCES THIRD QUARTER FISCAL 2022 OPERATING RESULTS

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