Le Lézard
Classified in: Tourism and vacations, Business, Covid-19 virus
Subjects: ERN, CCA, ERP

Caesars Entertainment, Inc. Reports Second Quarter 2020 Results


RENO and LAS VEGAS, Nev., Aug. 6, 2020 /PRNewswire/ -- Caesars Entertainment, Inc., (NASDAQ: CZR) ("Caesars," "CZR," or "the Company"), formerly known as Eldorado Resorts, Inc., today reported operating results for the second quarter ended June 30, 2020.  

Second Quarter 2020 and Recent Highlights:

Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, "Our second quarter operating trends were negatively impacted as the majority of our properties remained closed during April and May 2020. Our properties began to reopen in late May and early June. All of the combined new Caesars Entertainment, Inc. regional properties are now reopened and we are encouraged by operating trends."

Reeg continued, "Now that the merger has closed, our operating teams are fully engaged with integrating the two companies and executing on the synergy plans. Our number one priority remains the safety and security of our Team Members and Guests. Our COVID-19 operating plans for reopened properties are designed to ensure a safe and exciting environment for our Guests. We remain optimistic regarding an eventual recovery of travel and tourism in the U.S. and especially Las Vegas."

 

 

($ in thousands)

 

 

Total Net Revenue


Three Months Ended


June 30,


2020

2019

2019
Divestitures(1)

2019 Total(2)

Change

  West

$    29,937

$   127,727

$                    -

$   127,727

-76.6%

  Midwest

22,787

97,239

22,991

74,248

-69.3%

  South

30,760

116,937

-

116,937

-73.7%

  East

21,226

170,455

32,707

137,748

-84.6%

  Central

19,848

122,792

-

122,792

-83.8%

  Corporate and Other

1,912

1,971

-

1,971

-3.0%

Total Net Revenue

$    126,470

$   637,121

$         55,698

$   581,423

-78.2%





($ in thousands)

Net (Loss) Income


Three Months Ended


June 30,


2020

2019

2019
Divestitures(1)

2019 Total(2)

Change

  West

$    (12,711)

$    11,348

$                   -

$    11,348

-212.0%

  Midwest

1,378

21,435

4,737

16,698

-91.8%

  South

(10,912)

12,747

-

12,747

-185.6%

  East

(30,456)

15,981

3,107

12,874

-336.6%

  Central

(20,452)

13,070

-

13,070

-256.5%

  Corporate and Other

(26,843)

(55,645)

-

(55,645)

-51.8%

Total Net (Loss) Income

$    (99,996)

$  18,936

$          7,844

$  11,092

-1,001.5%




($ in thousands, except per share data)

Adjusted EBITDA


Three Months Ended


June 30,


2020

2019

2019
Divestitures(1)

2019 Total(2)

Change

  West

$           734

$     34,305

$                 -

$     34,305

-97.9%

  Midwest

4,648

36,753

7,932

28,821

-83.9%

  South

(2,476)

29,109

-

29,109

-108.5%

  East

(9,948)

47,418

5,904

41,514

-124.0%

  Central

3,593

39,602

-

39,602

-90.9%

  Corporate and Other

(6,934)

(8,526)

-

(8,526)

-18.7%

Total Adjusted EBITDA(3)

$   (10,383)

$   178,661

$      13,836

$   164,825

-106.3%


 

Net (Loss) Income

$   (99,996)


$      18,936






Basic EPS

$        (1.25)


$          0.24






Diluted EPS   

$        (1.25)


$          0.24






 

 

 

($ in thousands)

 

 

Total Net Revenue


Six Months Ended


June 30,


2020

2019

2019
Divestitures(1)

2019 Total(2)

Change

  West

$     135,427

$  245,822

$                   -

$   245,822

-44.9%

  Midwest

83,580

194,026

47,319

146,707

-43.0%

  South

127,812

249,651

-

249,651

-48.8%

  East

129,282

336,688

70,944

265,744

-51.4%

  Central

119,553

243,264

-

243,264

-50.9%

  Corporate and Other

3,885

3,493

-

3,493

11.2%

Total Net Revenue

$    599,539

$1,272,944

$       118,263

$ 1,154,681

-48.1%










($ in thousands)

Net (Loss) Income


Six Months Ended


June 30,


2020

2019

2019
Divestitures(1)

2019 Total(2)

Change

  West

$    (104,011)

$    15,665

$                   -

$    15,665

-764.0%

  Midwest

(15,239)

43,590

9,887

33,703

-145.2%

  South

(24,910)

32,956

-

32,956

-175.6%

  East

(32,647)

27,149

5,229

21,920

-248.9%

  Central

(15,728)

25,948

-

25,948

-160.6%

  Corporate and Other

(83,099)

(88,143)

-

(88,143)

-5.7%

Total Net (Loss) Income

$    (275,634)

$  57,165

$          15,116

$  42,049

-755.5%


($ in thousands, except per share data)

Adjusted EBITDA


Six Months Ended


June 30,


2020

2019

2019
Divestitures(1)

2019 Total(2)

Change

  West

$           20,359

$   58,348

$                 -

$   58,348

-65.1%

  Midwest

26,435

73,077

16,654

56,423

-53.1%

  South

15,228

67,780

-

67,780

-77.5%

  East

12,337

86,922

10,737

76,185

-83.8%

  Central

33,490

77,925

-

77,925

-57.0%

  Corporate and Other

(15,685)

(18,739)

-

(18,739)

-16.3%

Total Adjusted EBITDA(3)

$   92,164

$ 345,313

$      27,391

$ 317,922

-71.0%

 

Net (Loss) Income

$   (275,634)


$      57,165






Basic EPS

$         (3.49)


$          0.74






Diluted EPS   

$         (3.49)


$          0.73








(1)

Figures are for Presque for the period beginning January 1, 2019 and ending January 11, 2019, Nemacolin for the period beginning January 1, 2019 and ending March 8, 2019, and Mountaineer, Cape Girardeau and Caruthersville for the three and six months ended June 30, 2019.

(2)

Total figures for the three and six months ended June 30, 2019 exclude the results of operations for Presque for the period beginning January 1, 2019 and ending January 11, 2019, Nemacolin for the period beginning January 1, 2019 and ending March 8, 2019 and Mountaineer, Cape Girardeau and Caruthersville for the three and six months ended June 30, 2019. Such presentation does not conform to GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.

(3)

Adjusted EBITDA is not a GAAP measurement and is presented solely as a supplemental disclosure because the Company believes it is a widely used measure of operating performance in the gaming industry. See "Reconciliation of GAAP Measures to Non-GAAP Measures" below for a definition of Adjusted EBITDA and a quantitative reconciliation of Adjusted EBITDA to net (loss) income, which the Company believes is the most comparable financial measure calculated in accordance with GAAP.

Balance Sheet and Liquidity

As of June 30, 2020, legacy Eldorado Resorts had $2.7 billion of debt outstanding. Total cash and cash equivalents were $950.5 million, excluding restricted cash. 

"We have a strong liquidity position which will allow us to weather short term weakness due to COVID-19. For new Caesars Entertainment, Inc. we successfully executed an $8 billion debt raise on June 19, 2020 which further enhances our pro forma liquidity," said Bret Yunker, Chief Financial Officer. 

Combined Eldorado and Caesars Results           

The company has posted certain financial metrics of the combined company for the period January 1, 2019 to June 30, 2020. A presentation of these results can be located at https://investor.caesars.com.

Conference Call Information

The company will host a conference call to discuss the company's results on Thursday, August 6, 2020 at 2 p.m. Pacific Time. Participants should dial 877-637-3676, or 832-412-1752 for international callers, and enter Conference ID 3580348 approximately 10 minutes before the call start time. The call will also be accessible on the Investor Relations section of Caesars Entertainment's website at https://investor.caesars.com.

About Caesars Entertainment, Inc.

Caesars Entertainment, Inc. is the largest casino-entertainment company in the U.S. and one of the world's most diversified casino-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment's resorts operate primarily under the Caesars®, Harrah's®, Horseshoe® and Eldorado® brand names. Caesars Entertainment offers diversified amenities and one-of-a-kind destinations, with a focus on building loyalty and value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars Entertainment is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. For more information, please visit www.caesars.com/corporate.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information. When used in this press release, the terms or phrases such as "anticipates," "believes," "projects," "plans," "intends," "expects," "might," "may," "estimates," "could," "should," "would," "will likely continue," and variations of such words or similar expressions are intended to identify forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release. These risks and uncertainties include: (a) the effects of the COVID-19 public health emergency, including (i) the impact of the actions taken to contain the public health emergency or mitigate its impact, (ii) the direct and indirect economic effects of the public health emergency and measures to contain it (including various state governments', tribal authorities' and/or regulatory authorities' issuance of directives, mandates, orders or similar actions restricting freedom of movement and business operations, such as travel restrictions, border closures, business closures, limitations on public gatherings, quarantines and "shelter-at-home" orders, any of which may result in the closure of business operations) and (iii) changes and instability in global, national and regional economic activity and financial market activity as a result of the COVID-19 public health emergency and the impact on consumer discretionary spending and travel; (b) risks related to the combination of the Company and Caesars Entertainment Corporation (CEC) (the "merger") and the integration of their respective businesses and assets; (c) potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger; (d) the possibility that the anticipated benefits of the merger, including cost savings and expected synergies, are not realized when expected or at all; (e) the impact of divestitures that are required as a condition to receipt of required regulatory approvals for the merger; (f) risks associated with increased leverage and additional rental expense resulting from debt financing and real estate transactions undertaken in connection with the merger; (g) competitive responses to the merger; (h) legislative, regulatory and economic developments; and (i) additional factors discussed in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's and CEC's respective most recent Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. Other unknown or unpredictable factors may also cause actual results to differ materially from those projected by the forward-looking statements.

In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. These forward-looking statements speak only as of the date of this press release, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.


CAESARS ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share data)

(unaudited)



Three Months Ended
June 30,



Six Months Ended
June 30,



2020



2019



2020



2019


REVENUES:
















Casino and pari-mutuel commissions

$

101,479



$

457,162



$

441,228



$

927,848


Food and beverage

6,567



75,356



62,813



150,637


Hotel

8,916



78,391



57,292



143,175


Other

9,508



26,212



38,206



51,284


Net revenues

126,470



637,121



599,539



1,272,944


EXPENSES:








Casino and pari-mutuel commissions

43,354



203,240



202,510



413,546


Food and beverage

8,250



59,497



61,505



119,882


Hotel

5,846



25,136



28,114



48,786


Other

1,179



10,723



10,360



21,972


Marketing and promotions

5,105



32,080



30,058



64,381


General and administrative

64,862



117,431



156,537



237,319


Corporate

13,050



21,051



29,532



37,805


Impairment charges

?



?



160,758



958


Depreciation and amortization

48,939



56,533



99,372



114,290


Total operating expenses

190,585



525,691



778,746



1,058,939


(Loss) gain on sale or disposal of property and equipment

(65)



(366)



1,393



21,952


Transaction expenses

(12,697)



(7,292)



(21,991)



(9,186)


Loss from unconsolidated affiliates

(1,450)



(1,222)



(1,702)



(617)


Operating (loss) income

(78,327)



102,550



(201,507)



226,154


OTHER EXPENSE:








Interest expense, net

(68,136)



(71,798)



(134,600)



(145,308)


Loss on extinguishment of debt

?



?



(158)



?


Unrealized gain (loss) on investments and marketable securities

12,806



(1,398)



(10,202)



(2,858)


Total other expense

(55,330)



(73,196)



(144,960)



(148,166)


(Loss) income before income taxes

(133,657)



29,354



(346,467)



77,988


Benefit (provision) for income taxes

33,661



(10,418)



70,833



(20,823)


Net (loss) income

$

(99,996)



$

18,936



$

(275,634)



$

57,165


Net (loss) income per share of common stock:








Basic

$

(1.25)



$

0.24



$

(3.49)



$

0.74


Diluted

$

(1.25)



$

0.24



$

(3.49)



$

0.73


Weighted average basic shares outstanding

80,053,676



77,682,759



79,009,373



77,625,303


Weighted average diluted shares outstanding

80,053,676



78,725,289



79,009,373



78,657,552






















 

CAESARS ENTERTAINMENT, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

NET (LOSS) INCOME TO ADJUSTED EBITDA

($ in thousands)



Three Months Ended June 30, 2020


West

Midwest

South

East

Central

Corporate

Total

Net (loss) income

$

(12,711)

$

1,378

$

(10,912)

$

(30,456)

$

(20,452)

$

(26,843)

$

(99,996)

Interest expense, net


5,295


(32)


4,196


12,842


13,505


32,330


68,136

Benefit for income taxes


(5,392)


(931)


(2,757)


(3,617)


(1,247)


(19,717)


(33,661)

Unrealized gain on investments and marketable securities


-


-


-


-


-


(12,806)


(12,806)

Depreciation and amortization


13,299


4,148


6,786


11,046


11,793


1,867


48,939

Stock-based compensation


-


1


1


-


-


4,227


4,229

Transaction expenses(1)


-


-


-


-


-


12,697


12,697

Other(2)


243


84


210


237


(6)


1,311


2,079

Adjusted EBITDA

$

734

$

4,648

$

(2,476)

$

(9,948)

$

3,593

$

(6,934)

$

(10,383)

















 


Three Months Ended June 30, 2019


West

Midwest

South

East

Central

Corporate

Total

Net (loss) income

$

11,348

$

21,435

$

12,747

$

15,981

$

13,070

$

(55,645)

$

18,936

Interest expense, net


4,982


(1)


4,353


12,691


13,306


36,467


71,798

(Benefit) provision for income taxes


4,283


7,578


1,923


6,541


1,657


(11,564)


10,418

Unrealized loss on investments and marketable securities


-


-


-


-


-


1,398


1,398

Depreciation and amortization


13,508


7,714


9,850


12,240


11,480


1,741


56,533

Stock-based compensation


-


10


-


-


-


6,499


6,509

Transaction expenses(1)


-


-


-


-


-


7,292


7,292

Other(3)


184


17


236


(35)


89


5,286


5,777

Adjusted EBITDA

$

34,305

$

36,753

$

29,109

$

47,418

$

39,602

$

(8,526)

$

178,661

 



Divestitures:

West

Midwest

South

East

Central

Corporate

Total

Net income

$

-

$

4,737

$

-

$

3,107

$

-

$

-

$

7,844

Provision for income taxes


-


1,241


-


1,156


-


-


2,397

Depreciation and amortization


-


1,950


-


1,643


-


-


3,593

Stock-based compensation


-


4


-


-


-


-


4

Other(3)


-


-


-


(2)


-


-


(2)

Adjusted EBITDA(4)

$

-

$

7,932

$

-

$

5,904

$

-

$

-

$

13,836

 



Excluding Divestitures:

West

Midwest

South

East

Central

Corporate

Total

Net (loss) income

$

11,348

$

16,698

$

12,747

$

12,874

$

13,070

$

(55,645)

$

11,092

Interest expense, net


4,982


(1)


4,353


12,691


13,306


36,467


71,798

(Benefit) provision for income taxes


4,283


6,337


1,923


5,385


1,657


(11,564)


8,021

Unrealized loss on investments and marketable securities


-


-


-


-


-


1,398


1,398

Depreciation and amortization


13,508


5,764


9,850


10,597


11,480


1,741


52,940

Stock-based compensation


-


6


-


-


-


6,499


6,505

Transaction expenses(1)


-


-


-


-


-


7,292


7,292

Other(3)


184


17


236


(33)


89


5,286


5,779

Adjusted EBITDA(5)

$

34,305

$

28,821

$

29,109

$

41,514

$

39,602

$

(8,526)

$

164,825

 


Six Months Ended June 30, 2020


West

Midwest

South

East

Central

Corporate

Total

Net loss

$

(104,011)

$

(15,239)

$

(24,910)

$

(32,647)

$

(15,728)

$

(83,099)

$

(275,634)

Interest expense, net


10,466


(42)


8,529


25,661


26,933


63,053


134,600

Benefit for income taxes


(16,720)


(3,658)


(4,286)


(3,229)


(1,285)


(41,655)


(70,833)

Loss on extinguishment of debt


-


-


-


-


-


158


158

Unrealized loss on investments and marketable securities


-


-


-


-


-


10,202


10,202

Depreciation and amortization


27,237


8,670


13,906


22,287


23,556


3,716


99,372

Stock-based compensation


-


3


3


-


-


9,965


9,971

Transaction expenses(1)


-


-


-


-


-


21,991


21,991

Other(2)


103,387


36,701


21,986


265


14


(16)


162,337

Adjusted EBITDA

$

20,359

$

26,435

$

15,228

$

12,337

$

33,490

$

(15,685)

$

92,164

 


Six Months Ended June 30, 2019


West

Midwest

South

East

Central

Corporate

Total

Net (loss) income

$

15,665

$

43,590

$

32,956

$

27,149

$

25,948

$

(88,143)

$

57,165

Interest expense, net


10,072


3


8,701


25,530


26,580


74,422


145,308

(Benefit) provision for income taxes


5,677


13,252


4,881


9,695


2,575


(15,257)


20,823

Unrealized loss on investments and marketable securities


-


-


-


-


-


2,858


2,858

Depreciation and amortization


26,651


16,135


20,865


24,389


22,690


3,560


114,290

Stock-based compensation


-


25


9


7


-


11,416


11,457

Transaction expenses(1)


-


-


-


-


-


9,186


9,186

Other(3)


283


72


368


152


132


(16,781)


(15,774)

Adjusted EBITDA

$

58,348

$

73,077

$

67,780

$

86,922

$

77,925

$

(18,739)

$

345,313

 



Divestitures:

West

Midwest

South

East

Central

Corporate

Total

Net income

$

-

$

9,887

$

-

$

5,229

$

-

$

-

$

15,116

Interest expense, net


-


-


-


23


-


-


23

Provision for income taxes


-


2,616


-


1,730


-


-


4,346

Depreciation and amortization


-


4,140


-


3,670


-


-


7,810

Stock-based compensation


-


11


-


7


-


-


18

Other(3)


-


-


-


78


-


-


78

Adjusted EBITDA(6)

$

-

$

16,654

$

-

$

10,737

$

-

$

-

$

27,391

 



Excluding Divestitures:

West

Midwest

South

East

Central

Corporate

Total

Net (loss) income

$

15,665

$

33,703

$

32,956

$

21,920

$

25,948

$

(88,143)

$

42,049

Interest expense, net


10,072


3


8,701


25,507


26,580


74,422


145,285

(Benefit) provision for income taxes


5,677


10,636


4,881


7,965


2,575


(15,257)


16,477

Unrealized loss on investments and marketable securities


-


-


-


-


-


2,858


2,858

Depreciation and amortization


26,651


11,995


20,865


20,719


22,690


3,560


106,480

Stock-based compensation


-


14


9


-


-


11,416


11,439

Transaction expenses(1)


-


-


-


-


-


9,186


9,186

Other(3)


283


72


368


74


132


(16,781)


(15,852)

Adjusted EBITDA(5)

$

58,348

$

56,423

$

67,780

$

76,185

$

77,925

$

(18,739)

$

317,922



(1)

Transaction expenses primarily represent costs related to the acquisition of Caesars for the three and six months ended June 30, 2020 and 2019, and costs related to the acquisitions of Elgin and Tropicana for the three and six months ended June 30, 2019.

(2)

Other, for the three and six months ended June 30, 2020, is comprised of severance expense, (gain) loss on the sale or disposal of property and equipment, equity in income (loss) of unconsolidated affiliate and selling costs associated with the divestitures of Kansas City, Vicksburg, Shreveport, and MontBleu. For the six months ended June 30, 2020, other is also comprised of impairment charges.

(3)

Other, for the three and six months ended June 30, 2019, is comprised of severance expense, (gain) loss on the sale or disposal of property and equipment, equity in income (loss) of unconsolidated affiliate and the gain associated with the sales of Presque and Nemacolin. For the six months ended June 30, 2020, other is also comprised of impairment charges.

(4)

Figures are for Mountaineer, Cape Girardeau and Caruthersville for the three months ended June 30, 2019.

(5)

Total figures for the three months ended June 30, 2019 exclude the results of operations for Mountaineer, Cape Girardeau and Caruthersville. Total figures for the six months ended June 30, 2019 exclude the results of operations for Presque for the period beginning January 1, 2019 and ending January 11, 2019, Nemacolin for the period beginning January 1, 2019 and ending March 8, 2019 and Mountaineer, Cape Girardeau and Caruthersville for the six months ended June 30, 2019. Such presentation does not conform to GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.

(6)

Figures are for Presque for the period beginning January 1, 2019 and ending January 11, 2019, Nemacolin for the period beginning January 1, 2019 and ending March 8, 2019 and Mountaineer, Cape Girardeau and Caruthersville for the six months ended June 30, 2019.

 

 

SOURCE Caesars Entertainment, Inc.


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