8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 28, 2015

MOHEGAN TRIBAL GAMING AUTHORITY

(Exact name of registrant as specified in its charter)

Not Applicable	033-80655	06-1436334
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One Mohegan Sun Boulevard, Uncasville, CT	06382
(Address of principal executive offices)	(Zip Code)

(860) 862-8000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 Financial Information

Item 2.02 Results of Operations and Financial Condition.

The Mohegan Tribal Gaming Authority (the “Authority”) today issued a press release announcing the operating results for its second fiscal quarter ended March 31, 2015. A copy of the press release is attached hereto as Exhibit 99.1. The press release and related information also may be found on the Authority’s website at www.mtga.com, under “Investor Relations/Financial News.”

The information, including the exhibit attached hereto, in this Current Report is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

Section 9 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibit is furnished as part of this Current Report:

99.1 Press Release of the Mohegan Tribal Gaming Authority, dated April 28, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MOHEGAN TRIBAL GAMING AUTHORITY
Date: April 28, 2015	By:	/s/ Ralph James Gessner, Jr
		Ralph James Gessner, Jr
		Vice-Chairman, Management Board

Exhibit Index

Exhibit No.	Description
99.1	Press Release of the Mohegan Tribal Gaming Authority, dated April 28, 2015.

EX-99.1

Exhibit 99.1

MOHEGAN TRIBAL GAMING AUTHORITY ANNOUNCES

SECOND QUARTER FISCAL 2015 OPERATING RESULTS

Uncasville, Connecticut, April 28, 2015 – The Mohegan Tribal Gaming Authority, or the Authority, the owner and operator of Mohegan Sun in Uncasville, Connecticut, and Mohegan Sun Pocono in Wilkes-Barre, Pennsylvania, announced today the operating results for its second fiscal quarter ended March 31, 2015.

“We are very pleased with our second quarter operating results,” said Mitchell Grossinger Etess, Chief Executive Officer of the Authority. “The weather this past winter was extremely harsh, yet our patrons’ spending patterns remained resilient resulting in stable revenues. In addition, the month of April has gotten off to a very good start which is quite encouraging. Consequently, our efforts to improve profitability were again evident as Mohegan Sun’s property EBITDA margin for the quarter was its highest second quarter EBITDA margin since fiscal 2004. Outside of operations, the quarter contained several important milestones, including the January expiration of relinquishment payments, the March ground breaking of our new 400-room Earth Hotel in Connecticut and the placement of land into trust for the Cowlitz Tribe by the United States government, which paves the way for the rapid development of the planned casino resort. All of this positions us very well for the future.”

Consolidated operating results for the second quarter ended March 31, 2015 (unaudited):

• Net revenues of $310.4 million, a 2.0% decrease from the second quarter of fiscal 2014

• Gaming revenues of $275.0 million, a 1.2% decrease from the second quarter of fiscal 2014

• Gross slot revenues of $187.6 million, a 3.1% decrease from the second quarter of fiscal 2014

• Table game revenues of $86.9 million, a 5.8% increase over the second quarter of fiscal 2014

• Non-gaming revenues of $57.5 million, a 5.0% decrease from the second quarter of fiscal 2014

• Adjusted EBITDA, a non-GAAP measure described below, of $74.7 million, a 12.8% increase over the second quarter of fiscal 2014

• Adjusted EBITDA margin of 24.1%, a 320 basis point increase over the second quarter of fiscal 2014

• Income from operations of $49.0 million, an 8.7% increase over the second quarter of fiscal 2014

• Net income attributable to the Authority of $15.0 million, a 56.2% increase over the second quarter of fiscal 2014

The increases in Adjusted EBITDA, income from operations and net income attributable to the Authority primarily resulted from improved table game results and reduced operating costs and expenses at both Mohegan Sun and Mohegan Sun Pocono, combined with lower year over year Corporate expenses resulting from reduced expenditures associated with our pursuit of a Massachusetts casino license.

Mohegan Sun

Operating results (in thousands, unaudited):

	For the Three Months Ended
	March 31,		March 31,					Percentage
	2015		2014		Variance			Variance
Adjusted EBITDA	$	68,686	$	63,263	$	5,423			8.6	%
Income from operations	$	46,598	$	45,728	$	870			1.9	%
Operating costs and expenses	$	193,687	$	197,750	$	(4,063	)		(2.1	%)
Net revenues	$	240,285	$	243,478	$	(3,193	)		(1.3	%)
Gaming revenues	$	210,035	$	210,530	$	(495	)		(0.2	%)
Non-gaming revenues	$	47,516	$	49,895	$	(2,379	)		(4.8	%)

The growth in Adjusted EBITDA and income from operations resulted from increased table game revenues which benefited from higher year over year hold percentage and lower operating costs and expenses which reflected various strategic operational and marketing changes designed to enhance operating efficiency and improve profitability resulting in reduced payroll costs and casino marketing, promotional and entertainment expenses. As a result, Adjusted EBITDA margin increased 260 basis points to 28.6% for the quarter ended March 31, 2015 from 26.0% in the second quarter of fiscal 2014. Net revenues declined slightly due, in part, to strategic operational and marketing changes designed to improve profitability.

Selected gaming data (in thousands, except where noted, unaudited):

	For the Three Months Ended
	March 31,			March 31,						Percentage
	2015			2014			Variance			Variance
Slots:
Handle	$	1,657,098		$	1,693,935		$	(36,837	)		(2.2	%)
Gross revenues	$	137,310		$	138,918		$	(1,608	)		(1.2	%)
Net revenues	$	131,965		$	134,439		$	(2,474	)		(1.8	%)
Free promotional slot plays (1)	$	13,471		$	14,878		$	(1,407	)		(9.5	%)
Weighted average number of machines (in units)		5,335			5,473			(138	)		(2.5	%)
Hold percentage (gross)		8.3	%		8.2	%		0.1	%		1.2	%
Win per unit per day (gross) (in dollars)	$	286		$	282		$	4			1.4	%
Table games:
Drop	$	426,011		$	444,941		$	(18,930	)		(4.3	%)
Revenues	$	74,591		$	72,137		$	2,454			3.4	%
Weighted average number of games (in units)		283			289			(6	)		(2.1	%)
Hold percentage (2)		17.5	%		16.2	%		1.3	%		8.0	%
Win per unit per day (in dollars)	$	2,927		$	2,770		$	157			5.7	%
Poker:
Revenues	$	2,522		$	2,634		$	(112	)		(4.3	%)
Weighted average number of tables (in units)		42			42			—			—
Revenue per unit per day (in dollars)	$	667		$	697		$	(30	)		(4.3	%)

(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.

(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.

Non-gaming data (in thousands, except where noted, unaudited):

	For the Three Months Ended
	March 31, 2015			March 31, 2014			Variance			Percentage Variance
Food and beverage:
Revenues	$	14,596		$	15,449		$	(853	)		(5.5	%)
Meals served		676			705			(29	)		(4.1	%)
Average price per meal served (in dollars)	$	16.05		$	16.14		$	(0.09	)		(0.6	%)
Hotel:
Revenues	$	10,930		$	10,764		$	166			1.5	%
Rooms occupied		103			103			—			—
Occupancy rate		97.7	%		97.5	%		0.2	%		0.2	%
Average daily room rate (in dollars)	$	99		$	98		$	1			1.0	%
Revenue per available room (in dollars)	$	97		$	96		$	1			1.0	%
Retail, entertainment and other:
Revenues	$	21,990		$	23,682		$	(1,692	)		(7.1	%)
Arena events (in events)		28			24			4			16.7	%
Arena tickets		155			153			2			1.3	%
Average price per Arena ticket (in dollars)	$	44.54		$	49.56		$	(5.02	)		(10.1	%)

Mohegan Sun Pocono

Operating results (in thousands, unaudited):

	For the Three Months Ended
	March 31,		March 31,					Percentage
	2015		2014		Variance			Variance
Adjusted EBITDA	$	13,166	$	12,205	$	961			7.9	%
Income from operations	$	10,102	$	9,042	$	1,060			11.7	%
Operating costs and expenses	$	60,026	$	63,944	$	(3,918	)		(6.1	%)
Net revenues	$	70,128	$	72,986	$	(2,858	)		(3.9	%)
Gaming revenues	$	64,981	$	67,870	$	(2,889	)		(4.3	%)
Non-gaming revenues	$	9,954	$	10,408	$	(454	)		(4.4	%)

The growth in Adjusted EBITDA and income from operations resulted from higher table game revenues and reduced operating costs and expenses. Table game revenues continued to benefit from the addition of our hotel and convention center combined with certain strategic marketing initiatives. Table game revenues also benefited from higher year over year hold percentage. The reduction in operating costs and expenses was driven by various strategic operational and marketing changes designed to enhance operating efficiency and improve profitability. As a result, Adjusted EBITDA margin increased 210 basis points to 18.8% for the quarter ended March 31, 2015 from 16.7% in the second quarter of fiscal 2014. Net revenues declined due, in part, to a continued sluggish regional economic environment and unfavorable weather conditions.

Selected gaming data (in thousands, except where noted, unaudited):

	For the Three Months Ended
	March 31,			March 31,						Percentage
	2015			2014			Variance			Variance
Slots:
Handle	$	612,711		$	656,141		$	(43,430	)		(6.6	%)
Gross revenues	$	50,331		$	54,721		$	(4,390	)		(8.0	%)
Net revenues	$	50,172		$	54,717		$	(4,545	)		(8.3	%)
Free promotional slot plays (1)	$	11,037		$	11,831		$	(794	)		(6.7	%)
Weighted average number of machines (in units)		2,332			2,331			1			0.0	%
Hold percentage (gross)		8.2	%		8.3	%		(0.1	%)		(1.2	%)
Win per unit per day (gross) (in dollars)	$	239		$	261		$	(22	)		(8.4	%)
Table games:
Drop	$	56,572		$	50,809		$	5,763			11.3	%
Revenues	$	12,353		$	10,040		$	2,313			23.0	%
Weighted average number of games (in units)		73			66			7			10.6	%
Hold percentage (2)		21.8	%		19.8	%		2.0	%		10.1	%
Win per unit per day (in dollars)	$	1,880		$	1,680		$	200			11.9	%
Poker:
Revenues	$	827		$	893		$	(66	)		(7.4	%)
Weighted average number of tables (in units)		18			18			—			—
Revenue per unit per day (in dollars)	$	511		$	551		$	(40	)		(7.3	%)

(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.

(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.

Non-gaming revenues (in thousands, except where noted, unaudited):

	For the Three Months Ended
	March 31,			March 31,						Percentage
	2015			2014			Variance			Variance
Food and beverage:
Revenues	$	6,523		$	7,164		$	(641	)		(8.9	%)
Meals served		152			187			(35	)		(18.7	%)
Average price per meal served (in dollars)	$	18.75		$	17.69		$	1.06			6.0	%
Hotel:
Revenues	$	1,343		$	1,147		$	196			17.1	%
Rooms occupied		20			19			1			5.3	%
Occupancy rate		93.7	%		89.9	%		3.8	%		4.2	%
Average daily room rate (in dollars)	$	62		$	57		$	5			8.8	%
Revenue per available room (in dollars)	$	58		$	51		$	7			13.7	%
Retail, entertainment and other:
Revenues	$	2,088		$	2,097		$	(9	)		(0.4	%)

Corporate

Operating results (in thousands, unaudited):

	For the Three Months Ended
	March 31,			March 31,						Percentage
	2015			2014			Variance			Variance
Adjusted EBITDA	$	(7,158	)	$	(9,273	)	$	2,115			22.8	%
Loss from operations	$	(7,693	)	$	(9,687	)	$	(1,994	)		(20.6	%)
Operating costs and expenses	$	8,976		$	11,179		$	(2,203	)		(19.7	%)
Net revenues	$	1,283		$	1,492		$	(209	)		(14.0	%)

The decrease in loss from operations was primarily attributable to the decline in operating costs and expenses which resulted from reduced expenditures associated with our pursuit of a Massachusetts casino license.

Mohegan Tribal Gaming Authority Property Information

(in thousands, unaudited)	Adjusted EBITDA For the Three Months Ended						Income (Loss) from Operations For the Three Months Ended						Net Revenues For the Three Months Ended
	March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
	2015			2014			2015			2014			2015			2014
Mohegan Sun	$	68,686		$	63,263		$	46,598		$	45,728		$	240,285		$	243,478
Mohegan Sun Pocono		13,166			12,205			10,102			9,042			70,128			72,986
Corporate		(7,158	)		(9,273	)		(7,693	)		(9,687	)		1,283			1,492
Inter-segment revenues		—			—			—			—			(1,273	)		(1,273	)
Total	$	74,694		$	66,195		$	49,007		$	45,083		$	310,423		$	316,683
	Adjusted EBITDA For the Six Months Ended						Income (Loss) from Operations For the Six Months Ended						Net Revenues For the Six Months Ended
	March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
	2015			2014			2015			2014			2015			2014
Mohegan Sun	$	133,762		$	113,743		$	94,016		$	80,371		$	486,063		$	485,411
Mohegan Sun Pocono		24,830			24,030			18,581			16,619			140,524			143,669
Corporate		(12,908	)		(17,890	)		(13,817	)		(18,634	)		3,114			2,231
Inter-segment revenues		—			—			—			—			(2,546	)		(1,805	)
Total	$	145,684		$	119,883		$	98,780		$	78,356		$	627,155		$	629,506

Other Information

Liquidity

As of March 31, 2015, the Authority held cash and cash equivalents of $64.5 million compared to $49.1 million as of September 30, 2014. As of March 31, 2015, $50.0 million was drawn on the Authority’s $100 million revolving credit facility and $413,000 was drawn on the Authority’s $16.5 million line of credit. As of March 31, 2015, letters of credit issued under the Authority’s revolving credit facility totaled $3.0 million, of which no amounts were drawn. Inclusive of letters of credit, which reduce borrowing availability under the Authority’s revolving credit facility, and after taking into account restrictive financial covenant requirements, the Authority had approximately $46.6 million of borrowing capacity under its revolving credit facility and line of credit as of March 31, 2015.

Interest Expense

Interest expense decreased by $520,000, or 1.4%, to $35.8 million for the quarter ended March 31, 2015 compared to $36.3 million in the second quarter of fiscal 2014. The reduction in interest expense was attributable to lower weighted average outstanding debt. Weighted average outstanding debt was $1.74 billion for the quarter ended March 31, 2015 compared to $1.76 billion in the second quarter of fiscal 2014. Weighted average interest rate was 8.2% for each of the quarters ended March 31, 2015 and 2014.

Capital Expenditures

The following table presents data related to capital expenditures (in millions):

	Capital Expenditures
	Six Months Ended March 31, 2015		Remaining Forecasted Fiscal Year 2015		Forecasted Fiscal Year 2015
Mohegan Sun:
Maintenance	$	1.8	$	28.2	$	30.0
Subtotal		1.8		28.2		30.0
Mohegan Sun Pocono:
Maintenance		0.7		4.3		5.0
Development		0.3		—		0.3
Subtotal		1.0		4.3		5.3
Total	$	2.8	$	32.5	$	35.3

Distributions to the Tribe

Distributions to the Tribe totaled $10.0 million for each of the quarters ended March 31, 2015 and 2014. Distributions to the Tribe are anticipated to total $50.0 million for fiscal 2015.

Conference Call

The Authority will host a conference call and simultaneous webcast regarding its second quarter fiscal 2015 operating results on Tuesday, April 28, 2015 at 11:00 a.m. (Eastern Daylight Time).

Those interested in participating in the call should dial as follows:

(877) 756-4274

(706) 643-0107 (International)

Conference ID: 32497587

Please call five minutes in advance to ensure that you are connected prior to the initiation of the call. Questions and answers will be reserved for call-in analysts and investors.

Parties who want to listen to the live conference call on the Internet may do so through a web link on the Authority’s website at www.mtga.com, under the “Investor Relations/Financial News” section. Interested parties also may listen to a taped replay of the entire conference call commencing two hours after the call’s completion on Tuesday, April 28, 2015. This replay will run through May 12, 2015.

The access number for a taped replay of the conference call is as follows:

(855) 859-2056

(404) 537-3406 (International)

Conference ID: 32497587

A transcript will be available on the Authority’s website for a period of 90 days following the conference call.

About the Authority

The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 544-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 185-acre site on the Tribe’s reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania.

The Tribe’s gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the 1,200-room luxury Sky Hotel Tower. Mohegan Sun Pocono operates in an approximately 400,000 square-foot facility, offering traditional slot machines and table games, live harness racing and simulcast and off-track wagering, a 238-room hotel, 20,000 square feet of meeting and convention space, several dining and retail options and a bus passenger lounge. More information about the Authority and its properties can be obtained by visiting www.mohegansun.com, www.mohegansunpocono.com or www.mtga.com.

Special Note Regarding Forward-Looking Statements

Some information included in this press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect” or “intend” and similar expressions. Such forward-looking information may involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority. Information concerning potential factors that could affect the Authority’s financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2014, as well as in the Authority’s other reports and filings with the Securities and Exchange Commission. Any forward-looking statements included in this press release are made only as of the date of this release. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands)

(unaudited)

	For the Three Months Ended March 31, 2015			For the Three Months Ended March 31, 2014			For the Six Months Ended March 31, 2015			For the Six Months Ended March 31, 2014
Revenues:
Gaming	$	275,016		$	278,400		$	552,750		$	553,153
Food and beverage		21,119			22,613			43,790			45,332
Hotel		12,273			11,911			24,499			22,603
Retail, entertainment and other		24,107			26,018			52,406			55,523
Gross revenues		332,515			338,942			673,445			676,611
Less - Promotional allowances		(22,092	)		(22,259	)		(46,290	)		(47,105	)
Net revenues		310,423			316,683			627,155			629,506
Operating costs and expenses:
Gaming		155,666			165,739			321,765			342,041
Food and beverage		10,229			10,749			21,040			20,848
Hotel		3,476			4,074			6,979			7,794
Retail, entertainment and other		9,577			11,352			21,821			24,128
Advertising, general and administrative		48,609			47,869			94,424			94,811
Corporate		8,642			10,860			16,281			20,292
Depreciation and amortization		19,564			20,879			39,617			39,997
Loss on disposition of assets		80			53			819			52
Severance		3,370			—			3,370			—
Pre-opening		—			25			—			1,187
Impairment of Project Horizon		2,502			—			2,502			—
Relinquishment liability reassessment		(299	)		—			(243	)		—
Total operating costs and expenses		261,416			271,600			528,375			551,150
Income from operations		49,007			45,083			98,780			78,356
Other income (expense):
Accretion of discount to the relinquishment liability		—			(551	)		(227	)		(1,102	)
Interest income		1,814			1,602			3,648			3,246
Interest expense, net of capitalized interest		(35,777	)		(36,297	)		(72,032	)		(75,266	)
Loss on early extinguishment of debt		—			(192	)		—			(62,275	)
Other expense, net		(482	)		(174	)		(1,210	)		(878	)
Total other expense		(34,445	)		(35,612	)		(69,821	)		(136,275	)
Net income (loss)		14,562			9,471			28,959			(57,919	)
Loss attributable to non-controlling interests		470			155			839			291
Net income (loss) attributable to Mohegan Tribal Gaming Authority	$	15,032		$	9,626		$	29,798		$	(57,628	)

MOHEGAN TRIBAL GAMING AUTHORITY

CONSOLIDATED SELECTED FINANCIAL INFORMATION

(in thousands)

(unaudited)

	For the Three Months Ended				For the Six Months Ended
	March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
Operating Results:
Gross revenues	$	332,515	$	338,942	$	673,445	$	676,611
Net revenues	$	310,423	$	316,683	$	627,155	$	629,506
Income from operations	$	49,007	$	45,083	$	98,780	$	78,356
Other Data:
Adjusted EBITDA	$	74,694	$	66,195	$	145,684	$	119,883
Capital expenditures	$	1,820	$	3,631	$	2,804	$	19,161
Cash interest paid	$	52,954	$	56,227	$	66,147	$	83,806
Distributions to the Tribe	$	10,000	$	10,000	$	20,000	$	20,000
					March 31, 2015		September 30, 2014
Balance Sheet Data:
Cash and cash equivalents					$	64,549	$	49,108
Relinquishment liability					$	—	$	25,194
Capital leases					$	2,745	$	3,138
Long-term debt, including current portion					$	1,725,969	$	1,730,936

MOHEGAN SUN

SUPPLEMENTAL DATA

(unaudited)

	For the Three Months Ended						For the Six Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Operating results:
Gross revenues (in thousands)	$	257,551		$	260,425		$	522,531		$	522,614
Net revenues (in thousands)	$	240,285		$	243,478		$	486,063		$	485,411
Income from operations (in thousands)	$	46,598		$	45,728		$	94,016		$	80,371
Operating margin		19.4	%		18.8	%		19.3	%		16.6	%
Adjusted EBITDA:
Adjusted EBITDA (in thousands)	$	68,686		$	63,263		$	133,762		$	113,743
Adjusted EBITDA margin		28.6	%		26.0	%		27.5	%		23.4	%
Capital expenditures (in thousands)	$	1,478		$	3,179		$	1,830		$	8,218
Weighted average number of units:
Slot machines		5,335			5,473			5,345			5,501
Table games		283			289			284			287
Poker tables		42			42			42			42
Win per unit per day:
Slot machines (gross)	$	286		$	282		$	291		$	283
Table games	$	2,927		$	2,770		$	2,774		$	2,643
Poker tables	$	667		$	697		$	676		$	670
Hold percentage:
Slot machines (gross)		8.3	%		8.2	%		8.3	%		8.1	%
Table games		17.5	%		16.2	%		16.3	%		14.7	%
Food and beverage statistics:
Meals served (in thousands)		676			705			1,411			1,443
Average price per meal served	$	16.05		$	16.14		$	15.94		$	16.18
Hotel statistics:
Rooms occupied (in thousands)		103			103			209			207
Occupancy rate		97.7	%		97.5	%		97.9	%		96.7	%
Average daily room rate	$	99		$	98		$	98		$	97
Revenue per available room	$	97		$	96		$	96		$	94
Entertainment statistics:
Arena events (in events)		28			24			54			49
Arena tickets (in thousands)		155			153			319			306
Average price per Arena ticket	$	44.54		$	49.56		$	50.86		$	58.13

MOHEGAN SUN POCONO

SUPPLEMENTAL DATA

(unaudited)

	For the Three Months Ended						For the Six Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Operating results:
Gross revenues (in thousands)	$	74,935		$	78,278		$	150,316		$	153,527
Net revenues (in thousands)	$	70,128		$	72,986		$	140,524		$	143,669
Income from operations (in thousands)	$	10,102		$	9,042		$	18,581		$	16,619
Operating margin		14.4	%		12.4	%		13.2	%		11.6	%
Adjusted EBITDA:
Adjusted EBITDA (in thousands)	$	13,166		$	12,205		$	24,830		$	24,030
Adjusted EBITDA margin		18.8	%		16.7	%		17.7	%		16.7	%
Capital expenditures (in thousands)	$	288		$	1,007		$	901		$	1,994
Weighted average number of units:
Slot machines		2,332			2,331			2,332			2,331
Table games		73			66			73			66
Poker tables		18			18			18			18
Win per unit per day:
Slot machines (gross)	$	239		$	261		$	240		$	254
Table games	$	1,880		$	1,680		$	1,722		$	1,645
Poker tables	$	511		$	551		$	486		$	539
Hold percentage:
Slot machines (gross)		8.2	%		8.3	%		8.2	%		8.4	%
Table games		21.8	%		19.8	%		19.7	%		20.0	%
Food and beverage statistics:
Meals served (in thousands)		152			187			317			366
Average price per meal served	$	18.75		$	17.69		$	18.65		$	17.56
Hotel statistics (1):
Rooms occupied (in thousands)		20			19			40			27
Occupancy rate		93.7	%		89.9	%		93.0	%		87.3	%
Average daily room rate	$	62		$	57		$	60		$	56
Revenue per available room	$	58		$	51		$	56		$	49

(1) Hotel operations commenced on November 15, 2013.

CORPORATE

SUPPLEMENTAL DATA

(unaudited)

	For the Three Months Ended					For the Six Months Ended
	March 31, 2015		March 31, 2014			March 31, 2015		March 31, 2014
Capital expenditures (in thousands)	$	54	$	(555	)	$	73	$	8,949
Capitalized interest (in thousands)	$	—	$	—		$	—	$	735

MOHEGAN TRIBAL GAMING AUTHORITY

ADJUSTED EBITDA RECONCILIATIONS

(unaudited)

Reconciliations of Adjusted EBITDA to Net Income (Loss):

Reconciliations of Adjusted EBITDA to net income (loss), a financial measure determined in accordance with accounting principles generally accepted in the United States of America, or GAAP, are shown below (in thousands):

	For the Three Months Ended						For the Six Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Adjusted EBITDA	$	74,694		$	66,195		$	145,684		$	119,883
Depreciation and amortization		(19,564	)		(20,879	)		(39,617	)		(39,997	)
Loss on disposition of assets		(80	)		(53	)		(819	)		(52	)
Severance		(3,370	)		—			(3,370	)		—
Pre-opening		—			(25	)		—			(1,187	)
Impairment of Project Horizon		(2,502	)		—			(2,502	)		—
Relinquishment liability reassessment		299			—			243			—
Loss attributable to non-controlling interests		(470	)		(155	)		(839	)		(291	)
Income from operations		49,007			45,083			98,780			78,356
Accretion of discount to the relinquishment liability		—			(551	)		(227	)		(1,102	)
Interest income		1,814			1,602			3,648			3,246
Interest expense, net of capitalized interest		(35,777	)		(36,297	)		(72,032	)		(75,266	)
Loss on early extinguishment of debt		—			(192	)		—			(62,275	)
Other expense, net		(482	)		(174	)		(1,210	)		(878	)
Net income (loss)	$	14,562		$	9,471		$	28,959		$	(57,919	)

Reconciliations of Income (Loss) from Operations to Adjusted EBITDA (unaudited):

Reconciliations of income (loss) from operations, a financial measure determined in accordance with GAAP, to Adjusted EBITDA, are shown below (in thousands):

	For the Three Months Ended March 31, 2015
	Income (Loss) from Operations			Depreciation and Amortization		(Gain) Loss on Disposition of Assets		Severance		Pre-opening		Impairment of Project Horizon		Relinquishment Liability Reassessment			(Gain) Loss Attributable to Non- controlling Interests		Adjusted EBITDA
Mohegan Sun	$	46,598		$	16,352	$	80	$	3,244	$	—	$	2,502	$	(299	)	$	209	$	68,686
Mohegan Sun Pocono		10,102			2,938		—		126		—		—		—			—		13,166
Corporate		(7,693	)		274		—		—		—		—		—			261		(7,158	)
Total	$	49,007		$	19,564	$	80	$	3,370	$	—	$	2,502	$	(299	)	$	470	$	74,694
	For the Three Months Ended March 31, 2014
	Income (Loss) from Operations			Depreciation and Amortization		(Gain) Loss on Disposition of Assets		Severance		Pre-opening		Impairment of Project Horizon		Relinquishment Liability Reassessment			(Gain) Loss Attributable to Non- controlling Interests		Adjusted EBITDA
Mohegan Sun	$	45,728		$	17,483	$	52	$	—	$	—	$	—	$	—		$	—	$	63,263
Mohegan Sun Pocono		9,042			3,137		1		—		25		—		—			—		12,205
Corporate		(9,687	)		259		—		—		—		—		—			155		(9,273	)
Total	$	45,083		$	20,879	$	53	$	—	$	25	$	—	$	—		$	155	$	66,195
	For the Six Months Ended March 31, 2015
	Income (Loss) from Operations			Depreciation and Amortization		(Gain) loss on Disposition of Assets		Severance		Pre-opening		Impairment of Project Horizon		Relinquishment Liability Reassessment			(Gain) loss attributable to Non- controlling Interests		Adjusted EBITDA
Mohegan Sun	$	94,016		$	32,966	$	817	$	3,244	$	—	$	2,502	$	(243	)	$	460	$	133,762
Mohegan Sun Pocono		18,581			6,121		2		126		—		—		—			—		24,830
Corporate		(13,817	)		530		—		—		—		—		—			379		(12,908	)
Total	$	98,780		$	39,617	$	819	$	3,370	$	—	$	2,502	$	(243	)	$	839	$	145,684
	For the Six Months Ended March 31, 2014
	Income (Loss) from Operations			Depreciation and Amortization		(Gain) loss on Disposition of Assets		Severance		Pre-opening		Impairment of Project Horizon		Relinquishment Liability Reassessment			(Gain) loss attributable to Non- controlling Interests		Adjusted EBITDA
Mohegan Sun	$	80,371		$	33,321	$	51	$	—	$	—	$	—	$	—		$	—	$	113,743
Mohegan Sun Pocono		16,619			6,223		1		—		1,187		—		—			—		24,030
Corporate		(18,634	)		453		—		—		—		—		—			291		(17,890	)
Total	$	78,356		$	39,997	$	52	$	—	$	1,187	$	—	$	—		$	291	$	119,883

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 GAAP. The Authority historically has evaluated its operating performance with the non-GAAP measure, Adjusted EBITDA, which as used in this press release, represents net income before interest, depreciation and amortization, loss on disposition of assets, workforce reduction severance, pre-opening costs and expenses, impairment of Project Horizon, reassessment and accretion of discount to a relinquishment liability, loss on early extinguishment of debt, other non-operating income and expense and loss attributable to non-controlling interests.

Adjusted EBITDA provides an additional way to evaluate the Authority’s operations and, when viewed with both the Authority’s GAAP results and the reconciliations provided, the Authority believes that it provides a more complete understanding of its business than could be otherwise obtained absent this disclosure. Adjusted EBITDA is presented solely as a supplemental disclosure because: (1) the Authority believes it enhances an overall understanding of the Authority’s past and current financial performance; (2) the Authority 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 since Adjusted EBITDA excludes certain items that may not be indicative of the Authority’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) the Authority 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 Adjusted EBITDA has certain limitations. Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, any GAAP financial measure including net income (as an indicator of the Authority’s performance) or cash flows provided by operating activities (as an indicator of the Authority’s liquidity), nor should it be considered as an indicator of the Authority’s overall financial performance. The Authority’s calculation of Adjusted EBITDA is likely to be different from the calculation of Adjusted EBITDA or other similarly titled measurements used by other casino and hospitality companies, and therefore, comparability may be limited. Adjusted EBITDA eliminates certain items from net income, such as interest and depreciation and amortization. Each of these items has been incurred in the past, will continue to be incurred in the future and should be considered in the overall evaluation of the Authority’s results. The Authority compensates for these limitations by providing relevant disclosures of items excluded in the calculation of Adjusted EBITDA, both in its reconciliations to the GAAP financial measure of net income and in its consolidated financial statements, all of which should be considered when evaluating its results. The Authority strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

Contacts:

Mitchell Grossinger Etess

Chief Executive Officer

Mohegan Tribal Gaming Authority

(860) 862-8000

Mario C. Kontomerkos

Chief Financial Officer

Mohegan Tribal Gaming Authority

(860) 862-8000