Financial Performance - Net cash provided by operating activities for the year ended December 31, 2018 was US$1,056.7 million, a decrease from US$1,162.5 million in 2017, primarily due to increased working capital[563]. - Net cash used in investing activities was US$609.7 million for the year ended December 31, 2018, compared to US$404.0 million in 2017, mainly due to capital expenditure payments of US$509.5 million[566]. - Total capital expenditures for the year ended December 31, 2018 were US$494.7 million, a decrease from US$559.0 million in 2017, primarily due to the completion of the Morpheus project[570]. - Net cash used in financing activities amounted to US$404.9 million for the year ended December 31, 2018, primarily due to share repurchases of US$655.7 million and dividend payments of US$271.5 million[572]. - The company’s cash flow from operations is expected to be adequate to satisfy current and anticipated operating, debt, and capital commitments[559]. Capital Expenditures and Investments - Total capital expenditures for the years ended December 31, 2018, 2017, and 2016 were US$494.7 million, US$559.0 million, and US$437.9 million, respectively, with US$151.7 million, US$392.0 million, and US$351.9 million attributable to development and construction projects[528]. - The company expects to incur significant capital expenditures for the redevelopment and rebranding of The Countdown and the development of remaining land at Studio City[569]. - As of December 31, 2018, the company had capital commitments of $83.8 million contracted for construction and acquisition of property and equipment[585]. - The company has capital commitments contracted for but not incurred totaling US$83.8 million for the construction and acquisition of property and equipment for various projects[585]. Debt and Financial Obligations - As of December 31, 2018, the company's total gross indebtedness amounted to approximately $4.10 billion, with significant components including $1.20 billion from 2016 Studio City Notes and $1.48 billion from 2015 Credit Facilities[576]. - The company has $1,000.0 million in long-term debt obligations due after more than 5 years, primarily from the 2017 Senior Notes[596]. - Total contractual obligations amount to $5,844.0 million, with $799.2 million due in less than 1 year and $3,201.5 million due in 1-3 years[596]. - The company has $1,200.0 million in long-term debt obligations from the 2016 Studio City Notes and $1,000.0 million from the 2017 Senior Notes[596]. - Fixed interest payments total $581.3 million, with $165.4 million due in less than 1 year[596]. - Variable interest payments are estimated at $93.1 million, with $55.0 million due in less than 1 year[596]. - The company has commitments for government annual land use fees totaling $28.3 million, including $2.3 million due in less than one year[598]. - The company has a gaming subconcession premium obligation of $97.0 million, which includes a fixed annual premium of approximately $3.7 million[598]. Regulatory Environment and Risks - The company faces potential impacts from regulatory changes in Macau and the Philippines, which may affect patron visits and spending[589]. - Increased regulatory scrutiny on gaming promoters in Macau may lead to operational risks and affect the company's VIP gaming revenue[591]. - The company is exposed to operational risks due to reliance on gaming promoters for VIP gaming revenue, which may be affected by regulatory compliance issues[591]. - Future operating results may be impacted by trends, uncertainties, and regulatory changes that could materially affect net revenues and profitability[592]. Corporate Governance and Management - The board consists of seven directors, including three nominated by Melco International and four independent directors[637]. - Since September 5, 2018, the company has had a majority of independent directors serving on its board[638]. - The audit and risk committee is responsible for overseeing the financial statement audits and ensuring the integrity of the company's internal controls[643]. - The compensation committee is tasked with evaluating and recommending executive compensation plans and policies[646]. - The nominating and corporate governance committee ensures compliance with legal and regulatory requirements and oversees ESG risks[648]. Employee and Management Structure - As of December 31, 2018, the company had a total of 21,413 employees, an increase from 19,609 in 2017, representing a growth of approximately 9.2%[656]. - The City of Dreams segment employed 8,312 individuals, accounting for 38.8% of the total workforce in 2018, up from 36.7% in 2017[657]. - The Studio City segment had 4,374 employees, which was 20.4% of the total workforce, a decrease from 23.1% in 2017[657]. - The Altira Macau segment employed 1,668 individuals, representing 7.8% of the total workforce, slightly down from 8.2% in 2017[657]. - The City of Dreams Manila segment saw an increase in employees to 5,638, making up 26.3% of the total workforce, compared to 25.0% in 2017[657]. - The company has implemented various employee retention initiatives, including a unique in-house learning academy and partnerships with educational institutions for diploma programs[659]. Shareholder Information - As of March 27, 2019, the total number of ordinary shares outstanding is 1,401,047,204, with directors and executive officers holding 775,866,694 shares, representing 55.38% of total shares[662]. - Lawrence Yau Lung Ho holds 757,229,043 ordinary shares through Melco Leisure, which is 54.05% of the total shares[662]. - The company completed the MRP Tender Offer in December 2018, acquiring 1,338,477,668 MRP Shares, increasing its equity interest in MRP from approximately 72.8% to 97.9%[679]. - MRP's public ownership fell below the minimum requirement of the Philippine Stock Exchange, leading to a suspension of trading since December 10, 2018[680]. - The company repurchased 155 million ordinary shares for an aggregate purchase price of US$800.8 million in May 2016, making Melco International the single largest shareholder[682].

Melco Resorts & Entertainment Ltd (NASDAQ:MLCO) Q4 2018 Earnings Conference Call February 19, 2019 8:30 AM ET Company Participants Richard Huang – Director of Investor Relations Lawrence Ho – Chairman and Chief Executive Officer Geoff Davis – Executive Vice President and Chief Financial Officer David Sisk – Property President, City of Dreams, Macau Conference Call Participants Anil Daswani – Citi Billy Ng of Bank – America Merrill Lynch Harry Curtis – Instinet Praveen Choudhary – Morgan Stanley Karen Tang – ...