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| September 30, 2023 |
December 31, 2022 |
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| (Unaudited) | ||||||||
ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable, net of allowances for credit losses $ |
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Receivables from affiliated companies |
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Inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net |
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Intangible assets, net |
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Long-term prepayments, deposits and other assets |
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Restricted cash |
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Operating lease right-of-use |
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Land use right, net |
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Total assets |
$ | $ | ||||||
LIABILITIES, SHAREHOLDERS’ EQUITY AND PARTICIPATION INTEREST |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued expenses and other current liabilities |
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Income tax payable |
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to companies |
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Total current liabilities |
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Long-term debt, net |
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Other long-term liabilities |
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Deferred tax liabilities, net |
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Operating lease liabilities, non-current |
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Total liabilities |
$ | $ | ||||||
Commitments and contingencies (Note 14) |
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Shareholders’ equity and participation interest: |
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Class A ordinary shares, par value $ |
$ | $ | ||||||
Class B ordinary shares, par value $ |
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Additional paid-in capital |
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Accumulated other comprehensive losses |
( |
) | ( |
) | ||||
Accumulated losses |
( |
) | ( |
) | ||||
Total shareholders’ equity |
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Participation interest |
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Total shareholders’ equity and participation interest |
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Total liabilities, shareholders’ equity and participation interest |
$ | $ | ||||||
Nine Months Ended September 30, |
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2023 |
2022 |
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| Operating revenues: |
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| Revenue from casino contract with a related party |
$ |
$ |
( |
) | ||||
| Rooms (including revenues from related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
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| Food and beverage (including revenues from related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
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| Entertainment (including revenues from related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
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| Services fee from related parties |
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| Mall |
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| Retail and other |
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| Total operating revenues |
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| Operating costs and expenses: |
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| Costs related to casino contract (including costs to related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
( |
) |
( |
) | ||||
| Rooms (including costs to related parties of $ and $ for the nine months ended |
( |
) |
( |
) | ||||
| Food and beverage (including costs to related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
( |
) |
( |
) | ||||
| Entertainment (including costs to related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
( |
) |
( |
) | ||||
| Mall (including costs to related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
( |
) |
( |
) | ||||
| Retail and other (including costs to related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
( |
) |
( |
) | ||||
| General and administrative (including expenses to related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
( |
) |
( |
) | ||||
| Pre-opening costs (including expenses to related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
( |
) |
( |
) | ||||
| Amortization of land use right |
( |
) |
( |
) | ||||
| Depreciation and amortization |
( |
) |
( |
) | ||||
| Property charges and other (including expenses to related parties of $ and $ for the nine months ended September 30, 2023 and 2022, respectively) |
( |
) |
( |
) | ||||
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| Total operating costs and expenses |
( |
) |
( |
) | ||||
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| Operating loss |
( |
) |
( |
) | ||||
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| Non-operating income (expenses): |
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| Interest income |
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| Interest expenses, net of amounts capitalized |
( |
) |
( |
) | ||||
| Other financing costs |
( |
) |
( |
) | ||||
| Foreign exchange gains, net |
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| Other expenses, net |
( |
) |
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| Gain on extinguishment of debt |
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| Total non-operating expenses, net |
( |
) |
( |
) | ||||
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| Loss before income tax |
( |
) |
( |
) | ||||
| Income tax benefit (expense) |
( |
) | ||||||
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| Net loss |
( |
) |
( |
) | ||||
| Net loss attributable to participation interest |
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| Net loss attributable to Studio City International Holdings Limited |
$ |
( |
) |
$ |
( |
) | ||
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Nine Months Ended September 30, |
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2023 |
2022 |
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| Net loss attributable to Studio City International Holdings Limited per Class A ordinary share: |
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| Basic |
$ |
( |
) |
$ |
( |
) | ||
| |
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|
|
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| Diluted |
$ |
( |
) |
$ |
( |
) | ||
| |
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| Weighted average Class A ordinary shares outstanding used in net loss attributable to Studio City International Holdings Limited per Class A ordinary share calculation: |
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| Basic |
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| Diluted |
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Nine Months Ended September 30, |
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2023 |
2022 |
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| Net loss |
$ | ( |
) | $ | ( |
) | ||
| Other comprehensive loss: |
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| Foreign currency translation adjustments |
( |
) | ( |
) | ||||
| |
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| Other comprehensive loss |
( |
) | ( |
) | ||||
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| Total comprehensive loss |
( |
) | ( |
) | ||||
| Comprehensive loss attributable to participation interest |
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| Comprehensive loss attributable to Studio City International Holdings Limited |
$ | ( |
) | $ | ( |
) | ||
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| Studio City International Holdings Limited Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||||||||||||||||
| Class A | Class B | Additional | Other | |||||||||||||||||||||||||||||||||
| Ordinary Shares | Ordinary Shares | Paid-in |
Comprehensive | Accumulated | Participation | Total | ||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Losses | Losses | Interest | Equity | ||||||||||||||||||||||||||||
| Balance at January 1, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | |||||||||||||||||||||||||
| Net loss |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Foreign currency translation adjustments |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Shares issued, net of offering expenses |
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| Change in Participation Interest resulting from 2022 Private Placements (as described in Note 11) |
— | — | ( |
) | ||||||||||||||||||||||||||||||||
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| Balance at September 30, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | |||||||||||||||||||||||||
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| Balance at January 1, 2023 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | |||||||||||||||||||||||||
| Net loss |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Foreign currency translation adjustments |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
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| Balance at September 30, 2023 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | |||||||||||||||||||||||||
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Nine Months Ended September 30, |
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2023 |
2022 |
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| Cash flows from operating activities: |
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| Net cash used in operating activities |
$ | ( |
) | $ | ( |
) | ||
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| Cash flows from investing activities: |
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| Acquisition of property and equipment |
( |
) | ( |
) | ||||
| Funds to an affiliated company |
( |
) | ( |
) | ||||
| Proceeds from sale of property and equipment |
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| Net cash used in investing activities |
( |
) | ( |
) | ||||
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| Cash flows from financing activities: |
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| Repayments of long-term debt |
( |
) | ||||||
| Payments of deferred financing costs |
( |
) | ||||||
| Net proceeds from issuance of shares |
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| Proceeds from long-term debt |
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| Net cash (used in) provided by financing activities |
( |
) | ||||||
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| Effect of exchange rate on cash, cash equivalents and restricted cash |
( |
) | ( |
) | ||||
| |
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| (Decrease) increase in cash, cash equivalents and restricted cash |
( |
) | ||||||
| Cash, cash equivalents and restricted cash at beginning of period |
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| |
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| Cash, cash equivalents and restricted cash at end of period |
$ | $ | ||||||
| |
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| Supplemental cash flow disclosures: |
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| Cash paid for interest, net of amounts capitalized |
$ | ( |
) | $ | ( |
) | ||
| Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases |
$ | ( |
) | $ | ( |
) | ||
| Change in operating lease right-of-use |
$ | ( |
) | $ | ( |
) | ||
| Change in accrued expenses and other current liabilities and other long-term liabilities related to acquisition of property and equipment |
$ | $ | ||||||
| Change in receivables from/payables to affiliated companies related to acquisition of property and equipment and other long-term assets |
$ | $ | ||||||
1. |
ORGANIZATION AND BUSINESS |
| (a) | Company Information |
| (b) | Recent Developments Related to Business Operations and COVID-19 |
1. |
ORGANIZATION AND BUSINESS |
| (b) | Recent Developments Related to Business Operations and COVID-19 |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
| (a) | Basis of Presentation and Principles of Consolidation |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTTING POLICIES |
| (a) | Basis of Presentation and Principles of Consolidation |
| (b) | Accounts Receivable and Credit Risk |
| (c) | Impairment of Long-lived Assets |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
| (d) | Revenue Recognition |
| (e) | Comprehensive Loss and Accumulated Other Comprehensive Losses |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
| (f) | Net Loss Attributable to Studio City International Holdings Limited Per Class A Ordinary Share |
| Nine Months Ended September 30, |
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| 2023 | 2022 | |||||||
| Weighted average number of Class A ordinary shares outstanding used in the calculation of basic net loss attributable to Studio City International Holdings Limited per Class A ordinary share |
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| Incremental weighted average number of Class A ordinary shares from assumed exchange of Class B ordinary shares to Class A ordinary shares under the if-converted method |
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| |
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| Weighted average number of Class A ordinary shares outstanding used in the calculation of diluted net loss attributable to Studio City International Holdings Limited per Class A ordinary share |
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| |
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| Anti-dilutive Class A ordinary shares under the if-converted method excluded from the calculation of diluted net loss attributable to Studio City International Holdings Limited per Class A ordinary share |
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2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
| (g) | Recent Changes in Accounting Standards |
3. |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
| September 30, 2023 |
December 31, 2022 |
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| Cash |
$ | $ | ||||||
| Cash equivalents |
||||||||
| |
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|
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| Total cash and cash equivalents |
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| Non-current portion of restricted cash |
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| |
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| Total cash, cash equivalents and restricted cash |
$ | $ | ||||||
| |
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4. |
ACCOUNTS RECEIVABLE, NET |
September 30, 2023 |
December 31, 2022 |
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| Hotel |
$ | $ | ||||||
| Other |
||||||||
| |
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|
|||||
| Sub-total |
||||||||
| Less: allowances for credit losses |
( |
) | ||||||
| |
|
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|
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| $ | $ | |||||||
| |
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|
|||||
Nine Months Ended September 30, |
||||||||
2023 |
2022 |
|||||||
| Balance at beginning of year |
$ | $ | ||||||
| Provision for credit losses |
||||||||
| |
|
|
|
|||||
| Balance at end of period |
$ |
$ |
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| |
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|
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5. |
PROPERTY AND EQUIPMENT, NET |
| September 30, 2023 |
December 31, 2022 |
|||||||
Cost |
$ | $ | ||||||
Less: accumulated depreciation and amortization |
( |
) | ( |
) | ||||
Property and equipment, net |
$ | $ | ||||||
6. |
LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER ASSETS |
September 30, 2023 |
December 31, 2022 |
|||||||
Other long-term assets |
$ | $ | ||||||
Less: accumulated amortization |
( |
) | ( |
) | ||||
Other long-term assets, net |
||||||||
Long-term prepayments |
||||||||
Advance payments and deposits for acquisition of property and equipment |
||||||||
Other deposits and other |
||||||||
Deferred financing costs, net |
||||||||
Long-term prepayments, deposits and other assets |
$ | $ | ||||||
7. |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
| September 30, 2023 |
December 31, 2022 |
|||||||
Property and equipment payables |
$ | $ | ||||||
Interest expenses payable |
||||||||
Operating expense and other accruals and liabilities |
||||||||
Advance customer deposits and ticket sales |
||||||||
| $ | $ | |||||||
8. |
LONG-TERM DEBT, NET |
September 30, 2023 |
December 31, 2022 |
|||||||
Senior Notes |
||||||||
2022 7.000% Studio City Secured Notes, due 2027 (net of unamortized deferred financing costs of $ |
$ | $ | ||||||
2021 5.000% Studio City Notes, due 2029 (net of unamortized deferred financing costs and original issue premiums of $ |
||||||||
2020 6.000% SC Notes, due 2025 (net of unamortized deferred financing costs of $ |
||||||||
2020 6.500% SC Notes, due 2028 (net of unamortized deferred financing costs of $ |
||||||||
Credit Facilities |
||||||||
2016 Studio City Credit Facilities (1) |
||||||||
| $ | $ | |||||||
(1) |
As of September 30, 2023 and December 31, 2022, the unamortized deferred financing costs related to the 2016 SC Revolving Credit Facility of the 2016 Studio City Credit Facilities of $ and $ are included in long-term prepayments, deposits and other assets in the accompanying condensed consolidated balance sheets, respectively. |
9. |
LEASES |
10. |
FAIR VALUE MEASUREMENTS |
11. |
CAPITAL STRUCTURE |
12. |
INCOME TAXES |
Nine Months Ended September 30, |
||||||||
2023 |
2022 |
|||||||
| Over provision of income taxes in prior years: |
||||||||
| Hong Kong Profits Tax |
$ | ( |
) | $ |
||||
| |
|
|
|
|||||
| Income tax (benefit) expense - deferred: |
||||||||
| Macau Complementary Tax |
( |
) | ||||||
| |
|
|
|
|||||
| Total income tax (benefit) expense |
$ |
( |
) | $ |
||||
| |
|
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|
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12. |
INCOME TAXES |
13. |
DISTRIBUTION OF PROFITS |
14. |
COMMITMENTS AND CONTINGENCIES |
| (a) | Capital Commitments |
| (b) | Guarantee |
| (c) | Litigation |
15. |
RELATED PARTY TRANSACTIONS |
| Nine Months Ended September 30, |
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Related companies |
Nature of transactions |
2023 | 2022 | |||||||
Transactions with affiliated companies |
||||||||||
Melco and its subsidiaries |
Revenues (services provided by the Company): |
|||||||||
Revenue from casino contract |
$ | $ | ( |
) | ||||||
Rooms and food and beverage (1) |
||||||||||
Services fee (2) |
||||||||||
Entertainment (1) |
||||||||||
Costs and expenses (services provided to the Company): |
||||||||||
Staff costs recharges (3) |
||||||||||
Corporate services (4) |
||||||||||
Other services |
||||||||||
Staff costs for construction and renovation work capitalized |
||||||||||
Purchase of goods and services |
||||||||||
Sale and purchase of assets: |
||||||||||
Sale of property and equipment and other long-term assets |
||||||||||
Purchase of property and equipment |
||||||||||
Transfer-in of other long-term assets |
||||||||||
(1) |
These revenues primarily represented the standalone selling prices of the complimentary services (including rooms, food and beverage and entertainment services) provided to Studio City Casino’s gaming patrons and charged to Melco Resorts Macau. For the nine months ended September 30, 2023 and 2022, the related party rooms and food and beverage revenues and entertainment revenues aggregated to $ and $ , respectively, of which $ and $ related to Studio City Casino’s gaming patrons and $ and $ related to non-Studio City Casino’s gaming patrons, respectively. |
(2) |
Services provided by the Company to Melco and its subsidiaries mainly include, but are not limited to, certain shared administrative services and shuttle bus transportation services provided to Studio City Casino. |
(3) |
Staff costs are recharged by Melco and its subsidiaries for staff who are solely dedicated to Studio City to carry out activities, including food and beverage management, retail management, hotel management, entertainment projects, mall development and sales and marketing activities and staff costs for certain shared administrative services. |
(4) |
Corporate services are provided to the Company by Melco and its subsidiaries. These services include, but are not limited to, general corporate services and senior executive management services for operational purposes. |
15. |
RELATED PARTY TRANSACTIONS |
| (a) | Receivables from Affiliated Companies |
| (b) | Payables to Affiliated Companies |
16. |
SEGMENT INFORMATION |
17. |
SUBSEQUENT EVENTS |