Financial Position and Capital Expenditures
Total cash and bank balances as of December 31, 2023 aggregated to US$228.2 million (December 31, 2022: US$509.7 million), including
US$0.1 million of restricted cash (December 31, 2022: US$0.1 million). Total debt, net of unamortized deferred financing costs and original issue premiums, at the end of the fourth quarter of 2023 was US$2.34 billion (December 31, 2022:
US$2.43 billion), a reduction of US$100 million primarily as a result of the cash tender offer for the 6.00% senior notes due 2025 issued by Studio City Finance Limited on July 15, 2020, compared to the total debt balance as of
September 30, 2023.
Capital expenditures for the fourth quarter of 2023 were US$15.3 million.
Full Year Results
For the year ended December 31,
2023, Studio City International Holdings Limited reported total operating revenues of US$445.5 million, compared with US$11.5 million in the prior year. The increase in total operating revenues was primarily attributable to the relaxation
of COVID-19 related restrictions in Macau in January 2023 and the opening of Studio City Phase 2, which led to an increase in revenue from casino contract and higher
non-gaming revenues.
Operating loss for 2023 was US$29.0 million, compared with operating loss of
US$277.2 million for 2022.
Studio City generated Adjusted EBITDA of US$159.2 million for the year ended December 31, 2023, compared with
negative Adjusted EBITDA of US$140.8 million in 2022. The change in Adjusted EBITDA was mainly attributable to higher revenue from casino contract and non-gaming revenues.
Net loss attributable to Studio City International Holdings Limited for 2023 was US$133.5 million, compared with net loss attributable to Studio City
International Holdings Limited of US$326.5 million for 2022. The net loss attributable to participation interest for 2023 was US$12.6 million and the net loss attributable to participation interest for 2022 was US$34.9 million.
Safe Harbor Statement
This press release contains
forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Studio City International Holdings Limited (the “Company”) may also make
forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward- looking statement. These factors include, but are not limited to, (i) COVID-19
outbreaks, and the impact of their consequences on our business, our industry and the global economy, (ii) risks associated with the Macau gaming law amended in 2022 and its implementation by the Macau government, (iii) changes in the
gaming market and visitations in Macau, (iv) capital and credit market volatility, (v) local and global economic conditions, (vi) our anticipated growth strategies, (vii) gaming authority and other governmental approvals and
regulations, and (viii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”,
“expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other
similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and
the Company undertakes no duty to update such information, except as required under applicable law.
Non-GAAP
Financial Measures
| (1) |
“Adjusted EBITDA” is defined as net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, share-based compensation and other non-operating income and expenses. Adjusted EBITDA is presented exclusively as supplemental
disclosures because management believes it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA as measures our operating performance and to compare our operating performance
with those of its competitors. |
The Company also presents Adjusted EBITDA because it is used by some investors as ways to
measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported similar measure as supplements to financial measures in accordance with
generally accepted accounting principles, in particular, U.S. GAAP or International Financial Reporting Standards. However, Adjusted EBITDA should not be considered as alternatives to operating income/loss as indicators of the Company’s
performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA does not include depreciation and
amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company recognizes these limitations and uses Adjusted EBITDA as only two of several comparative tools, together with
U.S. GAAP measurements, to assist in the evaluation of operating performance.
2
