UNCASVILLE, Conn., Feb. 13, 2025 /PRNewswire/ — Mohegan Tribal Gaming Authority (“Mohegan,” “we” or “our”) today announced operating results for its first fiscal quarter ended December 31, 2024.
First Quarter 2025 and Recent Highlights:
“During 2024, Mohegan rolled out a number of important initiatives as part of our strategy to become one of the premier global omnichannel resort operators. Our success in accomplishing these transformational objectives is a credit to our incredible team, and as I look forward to 2025, I’m optimistic about the trends I see emerging within our omnichannel business and from the increased contributions by our non-gaming segments,” said Raymond Pineault, Chief Executive Officer of Mohegan.
Mohegan Operating Results
Three Months Ended
Variance
($ in thousands, unaudited)
December 31, 2024
December 31, 2023
$
%
Net revenues
$ 498,907
$ 425,232
$ 73,675
17.3 %
Income from operations
51,043
31,970
19,073
59.7 %
Net loss attributable to Mohegan
(85,941)
(97,019)
11,078
11.4 %
Adjusted EBITDA1
85,096
79,110
5,986
7.6 %
______________________
1 Refer to the Reconciliation of Non-US GAAP Financial Measures for a discussion and reconciliation of Adjusted EBITDA.
“Net revenues of $498.9 million increased $73.7 million compared with the prior-year period, driven by a strong quarter from Mohegan Sun and continued growth from Mohegan INSPIRE and Mohegan Digital,” said Ari Glazer, Chief Financial Officer of Mohegan. “Consolidated Adjusted EBITDA of $85.1 million increased $6.0 million compared with the prior-year period, as our Domestic Resorts, International Resorts, and Mohegan Digital outperformed prior year results.”
Domestic Resorts
Three Months Ended
Variance
($ in thousands, unaudited)
December 31, 2024
December 31, 2023
$
%
Net revenues
$ 311,985
$ 294,891
$ 17,094
5.8 %
Income from operations
54,884
46,856
8,028
17.1 %
Net income
54,852
45,035
9,817
21.8 %
Adjusted EBITDA
74,597
68,140
6,457
9.5 %
Net revenues of $312.0 million increased $17.1 million compared with the prior-year period, driven by strong results from Mohegan Sun. Domestic Resorts’ gaming revenues increased $5.5 million, or 2.7%, and non-gaming revenues increased $11.6 million, or 12.6%. The non-gaming growth was primarily attributed to increased food, beverage, and entertainment revenues in the period. Adjusted EBITDA of $74.6 million increased $6.5 million and Adjusted EBITDA margin of 23.9% was 80 bps favorable compared with the prior-year period.
International Resorts
Three Months Ended
Variance
($ in thousands, unaudited)
December 31, 2024
December 31, 2023
$
%
Net revenues
$ 135,679
$ 79,268
$ 56,411
71.2 %
Loss from operations
(9,715)
(23,479)
13,764
58.6 %
Net loss
(33,924)
(32,885)
(1,039)
(3.2) %
Adjusted EBITDA
4,082
(5,922)
10,004
N.M.
Net revenues of $135.7 million increased $56.4 million compared with the prior-year period, driven by Mohegan INSPIRE. Adjusted EBITDA of $4.1 million increased $10.0 million, or 168.9% compared with the prior-year period. The increase is primarily attributed to the continued ramp up of Mohegan INSPIRE and a favorable one-time property tax expense adjustment at Niagara Resorts.
Mohegan Digital
Three Months Ended
Variance
($ in thousands, unaudited)
December 31, 2024
December 31, 2023
$
%
Net revenues
$ 53,081
$ 36,187
$ 16,894
46.7 %
Income from operations
24,997
16,417
8,580
52.3 %
Net income
25,095
16,509
8,586
52.0 %
Adjusted EBITDA
25,090
16,497
8,593
52.1 %
Net revenues of $53.1 million increased $16.9 million compared with the prior-year period, primarily due to strong results from our Connecticut operations. Adjusted EBITDA of $25.1 million was $8.6 million, or 52.1% favorable compared with the prior-year period.
Management, development and other
Three Months Ended
Variance
($ in thousands, unaudited)
December 31, 2024
December 31, 2023
$
%
Net revenues
$ 5,074
$ 19,168
$ (14,094)
(73.5) %
(Loss) income from operations
(5,107)
9,162
(14,269)
N.M.
Net (loss) income
(90,688)
294
(90,982)
N.M.
Adjusted EBITDA
(4,844)
9,403
(14,247)
N.M.
Net revenues of $5.1 million decreased $14.1 million compared with the prior-year period. Adjusted EBITDA loss of $4.8 million was $14.2 million unfavorable compared with the prior-year period. The decreases in net revenues and Adjusted EBITDA are attributed to the prior year benefiting from ilani management fees. Net loss for the current-year period includes accelerated amortization of the debt discount and deferred finance charges related to the Korea Term Loan.
Corporate and other
Three Months Ended
Variance
($ in thousands, unaudited)
December 31, 2024
December 31, 2023
$
%
Net revenues
$ (27)
$ 99
$ (126)
N.M.
Loss from operations
(14,017)
(16,904)
2,887
17.1 %
Net loss
(41,277)
(125,972)
84,695
67.2 %
Adjusted EBITDA
(13,830)
(8,926)
(4,904)
(54.9) %
Adjusted EBITDA was $4.9 million unfavorable compared with the prior-year period, primarily due to higher Corporate labor costs, which include labor costs that were previously recorded as non-EBITDA business transformation costs during the implementation of our new ERP system and increased consulting fees. Net loss in the current-year period includes a gain on fair value adjustment of $17.6 million on the warrants and put option related to our Korea Term Loan compared with a $62.6 million loss in the prior-year period.
Other Information
Liquidity
As of December 31, 2024 and September 30, 2024, Mohegan held cash and cash equivalents of $192.7 million and $204.8 million, respectively. Inclusive of letters of credit, which reduce borrowing availability, Mohegan had $158.4 million of borrowing capacity under its senior secured credit facility and line of credit as of December 31, 2024. In addition, inclusive of letters of credit which reduce borrowing availability, Niagara Resorts had $34.8 million of borrowing capacity under its revolving credit and swingline facility as of December 31, 2024.
As discussed in Note 1 to our Quarterly Report for December 31, 2024, Mohegan has upcoming debt maturities and faces a financial covenant violation under its Korean Term Loan facility, which taken together present significant risks to investors. Investors are encouraged to review Mohegan’s Quarterly Report and Annual Report available on the Mohegan Gaming Investor Relations website, including the Financial Statements and Risk Factors, for additional information.
Conference Call
Mohegan will host a conference call regarding its first quarter fiscal 2025 operating results on Thursday, February 13, 2025, at 11:00 a.m. (Eastern Time).
Those interested in participating in 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/mohegan250213
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, Pennsylvania, 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 North American customers. 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
December 31, 2024
December 31, 2023
Revenues:
Gaming
$ 344,437
$ 285,683
Food and beverage
54,229
43,707
Hotel
39,992
31,563
Retail, entertainment and other
60,249
64,279
Net revenues
498,907
425,232
Operating costs and expenses:
Gaming
185,293
159,088
Food and beverage
49,462
36,885
Hotel
17,670
11,695
Retail, entertainment and other
32,338
25,030
Advertising, general and administrative
104,705
95,726
Corporate
18,892
14,437
Depreciation and amortization
33,818
28,301
Impairment of tangible assets
299
—
Other, net
5,387
22,100
Total operating costs and expenses
447,864
393,262
Income from operations
51,043
31,970
Other income (expense):
Interest income
356
701
Interest expense, net
(149,776)
(66,272)
Loss on modification and early extinguishment of debt
—
(116)
Gain (loss) on fair value adjustment
17,580
(62,580)
Other, net
(890)
(548)
Total other expense
(132,730)
(128,815)
Loss before income tax
(81,687)
(96,845)
Income tax provision
(2,083)
(122)
Net loss
(83,770)
(96,967)
Income attributable to non-controlling interests
(2,171)
(52)
Loss attributable to Mohegan Tribal Gaming Authority
$ (85,941)
$ (97,019)
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 A
