Mohegan completes ‘holistic refinancing of capital structure, among the most significant in its history’
Mohegan generated net revenues of $418.8m in its second quarter with Mohegan Sun net revenues increasing 4.1 per cent year over year and Mohegan Digital Adjusted EBITDA increasing 32.7 per cent year over year but the quarter was marked by a ‘holistic refinancing of capital structure, among the most significant in its history.’
Completed comprehensive refinancing of substantially all of the Mohegan Restricted Group’s debt.
Domestically, net revenues of $298m decreased $2.4m compared with the prior-year period, primarily due to higher revenues in the prior year related to non-cash license fee revenues and online gaming revenues at Mohegan Pennsylvania, partially offset by growth at Mohegan Sun in the current period. Domestic Resorts’ gaming revenues decreased $10.4m, or five per cent, and non-gaming revenues increased $8m, or 8.9 per cent. The non-gaming growth was primarily attributed to increased food & beverage, hotel, and entertainment revenues in the period. Adjusted EBITDA of $71.2m decreased $8.5m primarily due to non-cash license fee revenues at Mohegan Pennsylvania in the prior-year period. Adjusted EBITDA margin of 23.9% was 263 bps unfavorable compared with the prior-year period.
Digital revenues of $56.6m increased $17.8m compared with the prior-year period, as Mohegan’s Connecticut operations continue to outperform. Top-line growth from its Pennsylvania and Canada operations also contributed to the 45.9 per cent year over year increase.
International revenues of $67.1m decreased $5.1m compared with the prior-year period, primarily due to a stronger Canadian Dollar a year ago.
“During the quarter we completed a holistic refinancing of our capital structure, which was among the most significant in our history. This important advancement was made possible through reconstituting our Digital business into a commercial legal entity, which enabled us to unlock value for the company and investors, along with direct support from the Tribe. All of which highlights the strategic importance of having the Tribe as a long-term owner and investor. The culmination of these strategic initiatives has enabled us to build substantial runway and financial stability for the business which will allow us to remain hyper focused on our core business,” said Raymond Pineault, Chief Executive Officer of Mohegan.
“Net revenues and Adjusted EBITDA declined compared with the prior-year period, as the prior year benefited from ilani management fees, one-time non-cash license fee revenue at Mohegan Pennsylvania, and favorable economics in Niagara resulting principally from a notably stronger Canadian dollar. Adjusted EBITDA was down $24.2 million or 22.4 per cent compared with the prior-year, however after normalizing for ilani management fees and one-time adjustments, Adjusted EBITDA would have been nearly flat on a same-store basis,” said Ari Glazer, Chief Financial Officer of Mohegan.
