LAS VEGAS, Nov. 9, 2015
/PRNewswire/ -- Caesars Entertainment Corporation (NASDAQ:
CZR) today reported third quarter 2015 results as summarized in the
discussion below, which highlights certain GAAP and non-GAAP
financial measures on a consolidated basis.
Caesars Entertainment Corporation is primarily a holding company
with no independent operations of its own. It owns Caesars
Entertainment Resort Properties, LLC ("CERP"), an interest in
Caesars Growth Partners, LLC ("CGP") and various other
non-operating subsidiaries. It also has majority ownership of
Caesars Entertainment Operating Company, Inc. ("CEOC"). The results
of CEOC and its subsidiaries are no longer consolidated with CEC
subsequent to CEOC's Chapter 11 filing on January 15. Caesars Enterprise Services, LLC
("CES") provides certain enterprise services to properties owned
and/or operated by CERP, CGP and CEOC, and this press release at
times refers to system-wide trends and dynamics, inclusive of CEOC
and its subsidiaries. In the discussion in this release, the word
"CEC" refers to Caesars Entertainment Corporation without its
consolidated entities, and the words "Company," "Caesars," "Caesars
Entertainment," "Continuing CEC," "we," and "our" refer to Caesars
Entertainment Corporation and its consolidated entities, and not
CEOC unless otherwise stated or the context requires otherwise.
"We are pleased with our continued strong performance
system-wide in the third quarter, delivering our third consecutive
quarter of EBITDA growth as well as our highest quarterly EBITDA
margins since 2007, and industry-leading Las Vegas strip margins," said Mark Frissora, President and CEO of Caesars
Entertainment. "The enterprise had solid fundamental business
improvement driven by Las Vegas
revenue performance and increased marketing and operational
efficiencies. We remain focused on a balanced agenda of growth and
efficiency initiatives to continue to fuel margin expansion and
cash flow, supplemented by targeted capital investments to drive
higher room rates in the Las Vegas
region. We are confident that our strategy will increase value for
our stakeholders over the long-term."
Highlights
- Net revenues for Continuing CEC increased 12.4% year-over-year
to $1.1 billion mainly due to a full
quarter of Horseshoe Baltimore results, the expansion of resort
fees, favorable hold, and continued strong performance at Caesars
Interactive Entertainment ("CIE").
- Adjusted EBITDA for Continuing CEC grew 51.0% year-over-year to
$317 million primarily driven by
marketing and operational efficiencies and hotel customer mix
improvement resulting in strong flow through from top-line
growth.
- CERP results reflect strong hotel performance with increased
room revenues driven by cash ADR growth from resort fees and
improved hotel customer mix, in addition to operating and marketing
efficiencies.
- CGP performance attributable to a full quarter of Horseshoe
Baltimore, strong results in CIE's social and mobile games
business, resort fees, and the renovation of The LINQ Hotel &
Casino.
Effective January 15, 2015, CEC
deconsolidated CEOC subsequent to its voluntarily filing for
reorganization under Chapter 11 of the United States Bankruptcy
Code. As such, all amounts presented in this earnings release
exclude the operating results of CEOC subsequent to January 15, 2015. Prior period results have not
been recast to reflect the deconsolidation of CEOC.
Because CEOC operating results for 2015 are not comparable with
2014 as a result of CEOC's deconsolidation, the analysis of our
operating results in this release will include discussion of the
components that remain in the consolidated CEC entity subsequent to
the deconsolidation of CEOC. In the table below, "Continuing CEC"
represents CERP, CGP Casinos, CIE, other non-operating subsidiaries
and associated parent company and elimination adjustments that
represent the Caesars structure as of September 30, 2015, and for subsequent
periods.
Supplemental materials have been posted on the Caesars
Entertainment Investor Relations website at
http://investor.caesars.com/financials.cfm.
Summary Financial Data
|
Three Months Ended
September 30,
|
|
Continuing
CEC
Change
%
|
|
2015
|
2014
|
|
(Dollars in
millions, except per share data)
|
Continuing/Reported
CEC
(4)
|
|
Continuing
CEC
(4)
|
|
CEOC
(5)
|
|
Reported
CEC
|
|
Casino revenues
(1)
|
$
|
535
|
|
|
$
|
479
|
|
|
$
|
910
|
|
|
$
|
1,389
|
|
|
11.7%
|
Net revenues
(1)
|
1,141
|
|
|
1,015
|
|
|
1,197
|
|
|
2,212
|
|
|
12.4%
|
Income/(loss) from
operations (1)
|
139
|
|
|
(37)
|
|
|
(291)
|
|
|
(328)
|
|
|
*
|
Deconsolidation and
restructuring of CEOC and other
|
(935)
|
|
|
58
|
|
|
(124)
|
|
|
(66)
|
|
|
*
|
Loss from continuing
operations, net of income taxes (1)
|
(756)
|
|
|
(112)
|
|
|
(820)
|
|
|
(932)
|
|
|
*
|
Income/(loss) from
discontinued operations, net of income taxes
|
—
|
|
|
1
|
|
|
(49)
|
|
|
(48)
|
|
|
(100.0)%
|
Net loss attributable
to Caesars
|
(791)
|
|
|
(131)
|
|
|
(777)
|
|
|
(908)
|
|
|
*
|
Basics
earnings/(loss) per share
|
(5.44)
|
|
|
—
|
|
|
—
|
|
|
(6.29)
|
|
|
*
|
Diluted
earnings/(loss) per share
|
(5.44)
|
|
|
—
|
|
|
—
|
|
|
(6.29)
|
|
|
*
|
Property EBITDA
(2)(10)
|
311
|
|
|
213
|
|
|
231
|
|
|
444
|
|
|
46.0%
|
Adjusted EBITDA
(3)
|
317
|
|
|
210
|
|
|
232
|
|
|
442
|
|
|
51.0%
|
The following results include, during the third quarter, Caesars
Entertainment's accrual of $966
million of commitments to the First-Lien RSAs related to the
restructuring of CEOC. In August
2015, the Company announced that it had secured the support
of CEOC's largest and most senior creditor constituencies,
representing holders of more than 80% of CEOC's First Lien Bank
Debt and First Lien Notes.
|
|
Nine Months Ended
September 30,
|
|
Continuing
CEC
Change
%
|
|
2015
|
|
2014
|
|
(Dollars in
millions, except per share data)
|
Continuing
CEC
(4)
|
|
CEOC
(5)
|
|
Reported
CEC
|
|
Continuing
CEC
(4)
|
|
CEOC
(5)
|
|
Reported
CEC
|
|
Casino revenues
(1)
|
$
|
1,620
|
|
|
$
|
118
|
|
|
$
|
1,738
|
|
|
$
|
1,382
|
|
|
$
|
2,646
|
|
|
$
|
4,028
|
|
|
17.2%
|
Net revenues
(1)
|
3,377
|
|
|
158
|
|
|
3,535
|
|
|
2,892
|
|
|
3,493
|
|
|
6,385
|
|
|
16.8%
|
Income/(loss) from
operations (1)
|
460
|
|
|
9
|
|
|
469
|
|
|
157
|
|
|
(207)
|
|
|
(50)
|
|
|
193.0%
|
Deconsolidation and
restructuring of CEOC and other
|
6,162
|
|
|
—
|
|
|
6,162
|
|
|
141
|
|
|
(235)
|
|
|
(94)
|
|
|
*
|
Income/(loss) from
continuing operations, net of income taxes
(1)
|
6,177
|
|
|
(78)
|
|
|
6,099
|
|
|
(87)
|
|
|
(1,531)
|
|
|
(1,618)
|
|
|
*
|
Loss from
discontinued operations, net of income taxes
|
—
|
|
|
(7)
|
|
|
(7)
|
|
|
(16)
|
|
|
(162)
|
|
|
(178)
|
|
|
100.0%
|
Net income/(loss)
attributable to Caesars
|
6,083
|
|
|
(85)
|
|
|
5,998
|
|
|
(169)
|
|
|
(1,592)
|
|
|
(1,761)
|
|
|
*
|
Basics
earnings/(loss) per share
|
—
|
|
|
—
|
|
|
41.42
|
|
|
—
|
|
|
—
|
|
|
(12.41)
|
|
|
—
|
Diluted
earnings/(loss) per share
|
—
|
|
|
—
|
|
|
40.88
|
|
|
—
|
|
|
—
|
|
|
(12.41)
|
|
|
—
|
Property EBITDA
(2)(10)
|
971
|
|
|
31
|
|
|
1,002
|
|
|
683
|
|
|
647
|
|
|
1,330
|
|
|
42.2%
|
Adjusted EBITDA
(3)
|
964
|
|
|
34
|
|
|
998
|
|
|
666
|
|
|
655
|
|
|
1,321
|
|
|
44.7%
|
____________________
|
See footnotes
following Balance Sheet and Other Items later in this
release.
|
Third Quarter 2015 Financial Results
We view each casino property and CIE as operating segments and
aggregate all such casino properties and CIE into four reportable
segments based on management's view of these properties. Segment
results in this release are presented consistent with the way
Caesars management assesses these results, except that for
financial reporting purposes our results exclude CEOC results
subsequent to its deconsolidation. Segment results in this release
are adjusted for the impact of certain transactions between
reportable segments within Caesars. Therefore, the results of
certain reportable segments presented in this release differ from
the financial statement information presented in their separate
filings. All comparisons are to the same period from the previous
year.
|
Net Revenues
(Reportable Segments)
|
|
|
Three Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Nine Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
CERP
|
$
|
542
|
|
|
$
|
536
|
|
|
1.1%
|
|
$
|
1,637
|
|
|
$
|
1,566
|
|
|
4.5%
|
CGP Casinos
(6)
|
407
|
|
|
324
|
|
|
25.6%
|
|
1,186
|
|
|
910
|
|
|
30.4%
|
CIE
(7)
|
195
|
|
|
162
|
|
|
20.4%
|
|
557
|
|
|
431
|
|
|
29.5%
|
Other
(8)
|
(3)
|
|
|
(7)
|
|
|
57.1%
|
|
(3)
|
|
|
(15)
|
|
|
80.0%
|
Total Continuing
CEC
|
1,141
|
|
|
1,015
|
|
|
12.4%
|
|
3,377
|
|
|
2,892
|
|
|
16.8%
|
CEOC
(9)
|
—
|
|
|
1,253
|
|
|
*
|
|
$
|
164
|
|
|
$
|
3,663
|
|
|
*
|
Other
(8)
|
—
|
|
|
(56)
|
|
|
*
|
|
(6)
|
|
|
(170)
|
|
|
*
|
Total CEOC
|
—
|
|
|
1,197
|
|
|
*
|
|
158
|
|
|
3,493
|
|
|
*
|
Total Reported
CEC
|
$
|
1,141
|
|
|
$
|
2,212
|
|
|
*
|
|
$
|
3,535
|
|
|
$
|
6,385
|
|
|
*
|
|
Income/(Loss)
from Operations (Reportable Segments)
|
|
|
Three Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Nine Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
CERP
|
$
|
99
|
|
|
$
|
(49)
|
|
|
*
|
|
$
|
333
|
|
|
$
|
79
|
|
|
*
|
CGP Casinos
(6)
|
44
|
|
|
60
|
|
|
(26.7)%
|
|
251
|
|
|
68
|
|
|
*
|
CIE
(7)
|
43
|
|
|
21
|
|
|
104.8%
|
|
136
|
|
|
22
|
|
|
*
|
Other
(8)
|
(47)
|
|
|
(69)
|
|
|
31.9%
|
|
(260)
|
|
|
(12)
|
|
|
*
|
Total Continuing
CEC
|
139
|
|
|
(37)
|
|
|
*
|
|
460
|
|
|
157
|
|
|
193.0%
|
CEOC
(9)
|
—
|
|
|
(305)
|
|
|
*
|
|
$
|
9
|
|
|
$
|
(198)
|
|
|
*
|
Other
(8)
|
—
|
|
|
14
|
|
|
*
|
|
—
|
|
|
(9)
|
|
|
*
|
Total CEOC
|
—
|
|
|
(291)
|
|
|
*
|
|
9
|
|
|
(207)
|
|
|
*
|
Total Reported
CEC
|
$
|
139
|
|
|
$
|
(328)
|
|
|
*
|
|
$
|
469
|
|
|
$
|
(50)
|
|
|
*
|
|
Adjusted EBITDA
(Reportable Segments)
|
|
|
Three Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Nine Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
CERP
|
$
|
157
|
|
|
$
|
123
|
|
|
27.6%
|
|
$
|
503
|
|
|
$
|
364
|
|
|
38.2%
|
CGP Casinos
(6)
|
96
|
|
|
52
|
|
|
84.6%
|
|
272
|
|
|
185
|
|
|
47.0%
|
CIE
(7)
|
74
|
|
|
53
|
|
|
39.6%
|
|
205
|
|
|
128
|
|
|
60.2%
|
Other
(8)
|
(10)
|
|
|
(18)
|
|
|
44.4%
|
|
(16)
|
|
|
(11)
|
|
|
*
|
Total Continuing
CEC
|
317
|
|
|
210
|
|
|
51.0%
|
|
964
|
|
|
666
|
|
|
44.7%
|
CEOC
(9)
|
—
|
|
|
232
|
|
|
*
|
|
34
|
|
|
648
|
|
|
*
|
Other
(8)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
7
|
|
|
*
|
Total CEOC
|
—
|
|
|
232
|
|
|
*
|
|
34
|
|
|
655
|
|
|
*
|
Total Reported
CEC
|
$
|
317
|
|
|
$
|
442
|
|
|
*
|
|
$
|
998
|
|
|
$
|
1,321
|
|
|
*
|
CERP
CERP owns and operates six casinos in the United States and The LINQ promenade and
owns Octavius Tower at Caesars Palace Las Vegas.
Net revenues for the third quarter of 2015 were $542 million, a 1.1% increase. Casino revenues
were $281 million in the third
quarter 2015, relatively flat from the prior year. Room revenues
rose 11.3% in the quarter to $138
million mainly due to the expansion of resort fees, which
drove a 13.9% increase in cash ADR. Food and beverage revenues were
$137 million, up 0.7%.
Income from operations was $99
million. Adjusted EBITDA increased 27.6% to $157 million primarily due to a reduction in
operating expenses associated with operational initiatives and
increased marketing efficiencies as well as improved profitability
in hotel outlets. There was minimal impact from hold in the
quarter.
CGP Casinos
CGP Casinos owns and operates six casinos in the United States, primarily in Las Vegas.
Net revenues for the third quarter of 2015 were $407 million, a 25.6% increase primarily due to
the opening of Horseshoe Baltimore in August
2014, the room renovation of The LINQ Hotel & Casino,
which was completed in the second quarter of 2015, the expansion of
resort fees and favorable hold. Casino revenues were $254 million in the third quarter of 2015, a
28.9% increase driven by a full quarter of Horseshoe Baltimore
results. Additionally, lower gaming volumes at Harrah's
New Orleans as a result of the
smoking ban that went into effect in local bars, restaurants and
casinos citywide on April 22, 2015
was offset by favorable hold at the property in table games. Room
revenue increased 39.0% in the quarter to $82 million as a result of the completed new
rooms at The LINQ Hotel & Casino as well as the expansion of
resort fees. Food and beverage revenues were $74 million, up 15.6%, primarily from the opening
of new outlets at The LINQ Hotel & Casino and Horseshoe
Baltimore.
Income from operations was $44
million. Adjusted EBITDA increased 84.6% to $96 million primarily due to increased revenues
and improvements in marketing and operational efficiencies.
Favorable hold year-over-year contributed approximately
$9 to $13 million in adjusted EBITDA
in the quarter.
CIE
CIE, a subsidiary of CGP, owns and operates (1) an online games
business providing social and mobile games and (2) the World Series
of Poker ("WSOP") and regulated real-money online gaming.
Net revenues for the third quarter of 2015 were $195 million, a 20.4% increase. Income from
operations was $43 million and
adjusted EBITDA increased 39.6% to $74
million. The increase in revenue and adjusted EBITDA was
driven primarily by strong organic growth in the social and mobile
games business due to the continued focus on conversion and
monetization.
CEOC and CES
CEOC owns and operates 19 casinos in the United States and nine internationally,
most of which are located in England, and managed 16 casinos, which
included the six CGP casinos and ten casinos for unrelated third
parties. Effective October 2014,
substantially all our properties are managed by CES (and the
remaining properties will be transitioned upon regulatory
approval).
CES is a joint venture among CERP, CEOC, and a subsidiary of CGP
for which it provides certain corporate and administrative services
to their casino properties, including substantially all of the 28
casinos owned by CEOC and ten casinos owned by unrelated third
parties (including four Indian tribes) and manages certain assets
for the casinos to which it provides services and the other assets
it owns, licenses or controls, and employs certain of the
corresponding employees.
Balance Sheet and Other Items
Cash and Available Revolver Capacity
Each of the entities comprising Caesars Entertainment's
consolidated financial statements have separate debt agreements
with restrictions on usage of the respective entity's capital
resources. CGP is a variable interest entity that is consolidated
by Caesars Entertainment, but is controlled by its sole voting
member, Caesars Acquisition Company ("CAC"). CAC is a managing
member of CGP and therefore controls all decisions regarding
liquidity and capital resources of CGP. CEOC was deconsolidated
effective January 15, 2015, and
therefore, has not been included in the table below. Parent
reflects CEC and its various non-operating subsidiaries and
excludes CERP, CES and CGP.
|
September 30, 2015
|
(In
millions)
|
CERP
|
|
CES
|
|
CGP
|
|
Parent
|
Cash and cash
equivalents
|
$
|
218
|
|
|
$
|
141
|
|
|
$
|
901
|
|
|
$
|
349
|
|
Revolver
capacity
|
270
|
|
|
—
|
|
|
160
|
|
|
—
|
|
Revolver capacity
drawn or committed to letters of credit
|
(81)
|
|
|
—
|
|
|
(45)
|
|
|
—
|
|
Total
Liquidity
|
$
|
407
|
|
|
$
|
141
|
|
|
$
|
1,016
|
|
|
$
|
349
|
|
___________________
|
*
|
Not
meaningful
|
(1)
|
Casino revenues,
net revenues, income from operations, and income/(loss) from
continuing operations, net of income taxes for all periods
presented in the table above exclude the results of CIE RMG BEL
(closed in August 2014) and Showboat Atlantic City casino (closed
in August 2014) because these are presented as discontinued
operations.
|
(2)
|
Property EBITDA is
a non-GAAP financial measure that is defined and reconciled to its
most comparable GAAP measure later in this release. Property
EBITDA is included because the Company's management uses Property
EBITDA to measure performance and allocate resources, and believes
that Property EBITDA provides investors with additional information
consistent with that used by management.
|
(3)
|
Adjusted EBITDA is
a non-GAAP financial measure that is defined and reconciled to its
most comparable GAAP measure later in this release. Adjusted
EBITDA is included because management believes that Adjusted EBITDA
provides investors with additional information that allows a better
understanding of the results of operational activities separate
from the financial impact of decisions made for the long-term
benefit of the Company.
|
(4)
|
Includes CERP, CGP
Casinos, CIE, and associated parent company and elimination
adjustments that represent the CEC structure as of
September 30, 2015, and for subsequent
periods.
|
(5)
|
Includes
eliminations of intercompany transactions and other consolidating
adjustments.
|
(6)
|
CGP Casinos is
comprised of all subsidiaries of CGP excluding CIE. Percentage
calculations are based on unrounded dollars.
|
(7)
|
CIE is comprised
of the subsidiaries that operate its social and mobile games
business and WSOP. Percentage calculations are based on unrounded
dollars.
|
(8)
|
Other includes
parent, consolidating, and other adjustments to reconcile to
consolidated CEC results.
|
(9)
|
CEOC results
present the sales of The Cromwell, Bally's Las Vegas, The LINQ
Hotel & Casino, and Harrah's New Orleans to CGP in May 2014 as
if they had occurred as of the earliest period presented,
consistent with internal management presentation.
|
(10)
|
Property EBITDA
presented for Continuing CEC includes associated parent company and
elimination adjustments of $1 million and $19 million for the three
and nine months ended September 30, 2014, respectively. Property
EBITDA presented for CEOC includes associated parent company and
elimination adjustments of negative $1 million and $64 million for
the three and nine months ended September 30, 2014,
respectively.
|
|
|
Conference Call Information
Caesars Entertainment Corporation (NASDAQ: CZR) will host a
conference call at 1:30 p.m. Pacific Time
Monday, November 9, 2015, to discuss its third quarter
results, certain forward-looking information and other matters
related to Caesars Entertainment Corporation, including certain
financial and other information regarding CEC's deconsolidated
subsidiary Caesars Entertainment Operating Company, Inc. The press
release, webcast, and presentation materials will be available on
the Investor Relations section of www.caesars.com.
If you would like to ask questions and be an active participant
in the call, you may dial 877-637-3723, or 832-412-1752 for
international callers, and enter Conference ID 57936510
approximately 10 minutes before the call start time. A recording of
the live call will be available on the Company's website for 90
days after the event.
Supplemental materials have been posted on the Caesars
Entertainment Investor Relations website at
http://investor.caesars.com/financials.cfm.
About Caesars
Caesars Entertainment is the world's most diversified
casino-entertainment provider and the most geographically diverse
U.S. casino-entertainment company. CEC is mainly comprised of the
following three entities: wholly owned Caesars Entertainment Resort
Properties ("CERP"), Caesars Growth Partners, LLC ("CGP"), in which
we hold a variable economic interest, and the majority owned
operating subsidiary Caesars Entertainment Operating Company
("CEOC") (which was deconsolidated effective January 15, 2015 due to its bankruptcy filing).
Since its beginning in Reno,
Nevada, 77 years ago, CEC has grown through development of
new resorts, expansions and acquisitions. The Caesars system of
properties now operates 50 casinos in 14 U.S. states and five
countries. CERP and CGP operate a total of 12 casinos. CEC's
resorts operate primarily under the Caesars®, Harrah's®, and
Horseshoe® brand names. CEOC's portfolio also includes the Caesars
Entertainment UK (formerly London Clubs International) family of
casinos.
The Caesars system of properties is focused on building loyalty
and value with its guests through a unique combination of great
service, excellent products, unsurpassed distribution, operational
excellence, and technology leadership. The Company is committed to
system-wide environmental sustainability and energy conservation
and recognizes the importance of being a responsible steward of the
environment. For more information, please visit
www.caesars.com.
Forward Looking Information
This release includes "forward-looking statements" intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. You can identify
these statements by the fact that they do not relate strictly to
historical or current facts. We have based these forward-looking
statements on our current expectations about future events.
Further, these statements contain words such as "continue,"
"focus," "will," "expect," "believe," or "position", or the
negative or other variations thereof or comparable terminology. In
particular, they include statements relating to, among other
things, future actions, new projects, strategies, future
performance, the outcomes of contingencies, such as legal
proceedings, the restructuring of CEOC, and future financial
results of Caesars. These forward-looking statements are based on
current expectations and projections about future events.
Investors are cautioned that forward-looking statements are not
guarantees of future performance or results and involve risks and
uncertainties that cannot be predicted or quantified, and,
consequently, the actual performance of Caesars may differ
materially from those expressed or implied by such forward-looking
statements. Such risks and uncertainties include, but are not
limited to, the following factors, and other factors described from
time to time in the Company's reports filed with the Securities and
Exchange Commission (including the sections entitled "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" contained therein):
- the outcome of currently pending or threatened litigation and
demands for payment by certain creditors against CEC;
- the effects of CEOC's bankruptcy filing on CEOC and its
subsidiaries and affiliates, including Caesars Entertainment, and
the interest of various creditors, equity holders, and other
constituents;
- the ability to retain key employees during the restructuring of
CEOC;
- the event that the Restructuring Support and Forbearance
Agreements ("RSAs") may not be consummated in accordance with its
terms, or persons not party to the RSAs may successfully challenge
the implementation thereof;
- the length of time CEOC will operate in the Chapter 11 cases or
CEOC's ability to comply with the milestones provided by the
RSAs;
- risks associated with third party motions in the Chapter 11
cases, which may hinder or delay CEOC's ability to consummate the
restructuring as contemplated by the RSAs;
- the potential adverse effects of Chapter 11 proceedings on
Caesars Entertainment's liquidity or results of operations;
- the effects of local and national economic, credit, and capital
market conditions on the economy, in general, and on the gaming
industry, in particular;
- the ability to realize the expense reductions from our cost
savings programs;
- the financial results of CGP's business;
- the impact of our substantial indebtedness and the restrictions
in our debt agreements;
- access to available and reasonable financing on a timely basis,
including the ability of the company to refinance its indebtedness
on acceptable terms;
- the ability of our customer tracking, customer loyalty, and
yield management programs to continue to increase customer loyalty
and same-store or hotel sales;
- changes in laws, including increased tax rates, smoking bans,
regulations or accounting standards, third-party relations and
approvals, and decisions, disciplines and fines of courts,
regulators and governmental bodies;
- our ability to recoup costs of capital investments through
higher revenues;
- abnormal gaming holds ("gaming hold" is the amount of money
that is retained by the casino from wagers by customers);
- the effects of competition, including locations of competitors,
competition for new licenses, and operating and market
competition;
- the ability to timely and cost-effectively integrate companies
that we acquire into our operations;
- the potential difficulties in employee retention and
recruitment as a result of our substantial indebtedness or any
other factor;
- construction factors, including delays, increased costs of
labor and materials, availability of labor and materials, zoning
issues, environmental restrictions, soil and water conditions,
weather and other hazards, site access matters, and building permit
issues;
- litigation outcomes and judicial and governmental body actions,
including gaming legislative action, referenda, federal and state
regulatory disciplinary actions, the outcome of the National
Retirement Fund dispute, and fines and taxation;
- acts of war or terrorist incidents, severe weather conditions,
uprisings or natural disasters, including losses therefrom, losses
in revenues and damage to property, and the impact of severe
weather conditions on our ability to attract customers to certain
of our facilities;
- the effects of environmental and structural building conditions
relating to our properties;
- access to insurance on reasonable terms for our assets;
and
- the impact, if any, of unfunded pension benefits under
multi-employer pension plans.
Any forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995 and, as such, speak only
as of the date made. Caesars disclaims any obligation to
update the forward-looking statements. You are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date stated or, if no date is stated, as of
the date of this release.
CAESARS
ENTERTAINMENT CORPORATION
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
(In millions,
except per share data)
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
Casino
|
$
|
535
|
|
|
$
|
1,389
|
|
|
$
|
1,738
|
|
|
$
|
4,028
|
|
Food and
beverage
|
211
|
|
|
395
|
|
|
639
|
|
|
1,144
|
|
Rooms
|
220
|
|
|
301
|
|
|
663
|
|
|
915
|
|
Interactive
entertainment
|
192
|
|
|
162
|
|
|
555
|
|
|
431
|
|
Management
fees
|
—
|
|
|
16
|
|
|
2
|
|
|
45
|
|
Other
|
117
|
|
|
183
|
|
|
351
|
|
|
486
|
|
Reimbursed management
costs
|
—
|
|
|
61
|
|
|
10
|
|
|
190
|
|
Less: casino
promotional allowances
|
(134)
|
|
|
(295)
|
|
|
(423)
|
|
|
(854)
|
|
Net
revenues
|
1,141
|
|
|
2,212
|
|
|
3,535
|
|
|
6,385
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Direct
|
|
|
|
|
|
|
|
Casino
|
279
|
|
|
834
|
|
|
913
|
|
|
2,413
|
|
Food and
beverage
|
102
|
|
|
183
|
|
|
303
|
|
|
516
|
|
Rooms
|
59
|
|
|
82
|
|
|
171
|
|
|
242
|
|
Platform
fees
|
54
|
|
|
46
|
|
|
154
|
|
|
122
|
|
Property, general,
administrative, and other
|
336
|
|
|
562
|
|
|
982
|
|
|
1,565
|
|
Reimbursable
management costs
|
—
|
|
|
61
|
|
|
10
|
|
|
190
|
|
Depreciation and
amortization
|
98
|
|
|
165
|
|
|
296
|
|
|
471
|
|
Impairment of
goodwill
|
—
|
|
|
289
|
|
|
—
|
|
|
289
|
|
Impairment of
tangible and other intangible assets
|
—
|
|
|
210
|
|
|
—
|
|
|
260
|
|
Corporate
expense
|
40
|
|
|
74
|
|
|
131
|
|
|
192
|
|
Other operating costs
(1)
|
34
|
|
|
34
|
|
|
106
|
|
|
175
|
|
Total operating
expenses
|
1,002
|
|
|
2,540
|
|
|
3,066
|
|
|
6,435
|
|
Income/(loss) from
operations
|
139
|
|
|
(328)
|
|
|
469
|
|
|
(50)
|
|
Interest
expense
|
(147)
|
|
|
(708)
|
|
|
(531)
|
|
|
(1,954)
|
|
Deconsolidation and
restructuring of CEOC and other
|
(935)
|
|
|
(66)
|
|
|
6,162
|
|
|
(94)
|
|
Income/(loss) from
continuing operations before income taxes
|
(943)
|
|
|
(1,102)
|
|
|
6,100
|
|
|
(2,098)
|
|
Income tax
benefit/(provision)
|
187
|
|
|
170
|
|
|
(1)
|
|
|
480
|
|
Income/(loss) from
continuing operations, net of income taxes
|
(756)
|
|
|
(932)
|
|
|
6,099
|
|
|
(1,618)
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
Loss from
discontinued operations
|
—
|
|
|
(46)
|
|
|
(7)
|
|
|
(189)
|
|
Income tax
benefit/(provision)
|
—
|
|
|
(2)
|
|
|
—
|
|
|
11
|
|
Loss from
discontinued operations, net of income taxes
|
—
|
|
|
(48)
|
|
|
(7)
|
|
|
(178)
|
|
Net
income/(loss)
|
(756)
|
|
|
(980)
|
|
|
6,092
|
|
|
(1,796)
|
|
Net (income)/loss
attributable to noncontrolling interests
|
(35)
|
|
|
72
|
|
|
(94)
|
|
|
35
|
|
Net income/(loss)
attributable to Caesars
|
$
|
(791)
|
|
|
$
|
(908)
|
|
|
$
|
5,998
|
|
|
$
|
(1,761)
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share - basic and diluted
|
|
|
|
|
|
|
|
Basic earnings/(loss)
per share from continuing operations
|
$
|
(5.44)
|
|
|
$
|
(5.96)
|
|
|
$
|
41.46
|
|
|
$
|
(11.16)
|
|
Basic loss per share
from discontinued operations
|
—
|
|
|
(0.33)
|
|
|
(0.04)
|
|
|
(1.25)
|
|
Basic earnings/(loss)
per share
|
$
|
(5.44)
|
|
|
$
|
(6.29)
|
|
|
$
|
41.42
|
|
|
$
|
(12.41)
|
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per share from continuing operations
|
$
|
(5.44)
|
|
|
$
|
(5.96)
|
|
|
$
|
40.92
|
|
|
$
|
(11.16)
|
|
Diluted loss per
share from discontinued operations
|
—
|
|
|
(0.33)
|
|
|
(0.04)
|
|
|
(1.25)
|
|
Diluted
earnings/(loss) per share
|
$
|
(5.44)
|
|
|
$
|
(6.29)
|
|
|
$
|
40.88
|
|
|
$
|
(12.41)
|
|
_______________________
|
(1)
|
Other operating
costs primarily consists of write-downs, reserves and project
opening costs, net of recoveries, and acquisition and integration
costs.
|
CAESARS
ENTERTAINMENT CORPORATION
CONSOLIDATED
CONDENSED SUMMARY BALANCE SHEETS
(UNAUDITED)
(In
millions)
|
|
|
September 30, 2015
|
|
December 31, 2014
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash equivalents
|
$
|
1,609
|
|
|
$
|
2,806
|
|
Restricted cash
|
56
|
|
|
76
|
|
Other current assets
|
554
|
|
|
791
|
|
Total current
assets
|
2,219
|
|
|
3,673
|
|
Property and
equipment, net
|
7,630
|
|
|
13,456
|
|
Goodwill and other
intangible assets
|
2,261
|
|
|
5,516
|
|
Restricted
cash
|
66
|
|
|
109
|
|
Other long-term
assets
|
476
|
|
|
577
|
|
Total
assets
|
$
|
12,652
|
|
|
$
|
23,331
|
|
Liabilities and
Stockholders' Equity/(Deficit)
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of long-term debt
|
$
|
189
|
|
|
$
|
15,779
|
|
Other current liabilities
|
2,029
|
|
|
2,501
|
|
Total current
liabilities
|
2,218
|
|
|
18,280
|
|
Long-term
debt
|
6,788
|
|
|
7,230
|
|
Other long-term
liabilities
|
1,387
|
|
|
2,563
|
|
Total
liabilities
|
10,393
|
|
|
28,073
|
|
Total Caesars
stockholders' equity/(deficit)
|
1,052
|
|
|
(4,997)
|
|
Noncontrolling
interests
|
1,207
|
|
|
255
|
|
Total stockholders'
equity/(deficit)
|
2,259
|
|
|
(4,742)
|
|
Total liabilities and
stockholders' equity
|
$
|
12,652
|
|
|
$
|
23,331
|
|
CAESARS ENTERTAINMENT
CORPORATION
SUPPLEMENTAL
INFORMATION
RECONCILIATION OF PROPERTY EBITDA AND
ADJUSTED EBITDA
Property earnings before interest, taxes, depreciation and
amortization ("EBITDA") is presented as a supplemental measure of
the Company's performance. Property EBITDA is defined as
revenues less property operating expenses and is comprised of net
income/(loss) before (i) interest expense, net of interest
capitalized and interest income; (ii) (benefit)/provision for
income tax; (iii) depreciation and amortization; (iv) corporate
expenses; and (v) certain items that management does not consider
indicative of the Company's ongoing operating performance at an
operating property level. In evaluating Property EBITDA, you
should be aware that, in the future, the Company may incur expenses
that are the same or similar to some of the adjustments in this
presentation. The presentation of Property EBITDA should not
be construed as an inference that future results will be unaffected
by unusual or unexpected items.
Property EBITDA is a non-GAAP financial measure commonly used in
our industry and should not be construed as an alternative to net
income/(loss) as an indicator of operating performance or as an
alternative to cash flow provided by operating activities as a
measure of liquidity (as determined in accordance with GAAP).
Property EBITDA may not be comparable to similarly titled measures
reported by other companies within the industry. Property
EBITDA is included because management uses Property EBITDA to
measure performance and allocate resources and believes that
Property EBITDA provides investors with additional information
consistent with that used by management.
Adjusted EBITDA is defined as Property EBITDA further adjusted
to exclude certain non-cash and other items required or permitted
in calculating covenant compliance under the agreements governing
CEOC, CERP, and CGP's secured credit facilities.
Adjusted EBITDA is presented as a supplemental measure of the
Company's performance and management believes that Adjusted EBITDA
provides investors with additional information and allows a better
understanding of the results of operational activities separate
from the financial impact of decisions made for the long-term
benefit of the Company.
Because not all companies use identical calculations, the
presentation of Adjusted EBITDA may not be comparable to other
similarly titled measures of other companies. The following tables
reconcile net income/(loss) attributable to the companies presented
to Property EBITDA and Adjusted EBITDA for the periods indicated.
Amounts are presented on a legal entity basis consistent with
agreements governing applicable secured credit facilities.
Property EBITDA
(Legal Entity)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Nine Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
CEOC
|
$
|
—
|
|
|
$
|
232
|
|
|
*
|
|
$
|
31
|
|
|
$
|
711
|
|
|
*
|
CERP
|
161
|
|
|
131
|
|
|
22.9%
|
|
518
|
|
|
403
|
|
|
28.5%
|
CGP
Casinos
|
100
|
|
|
51
|
|
|
96.1%
|
|
291
|
|
|
184
|
|
|
58.2%
|
CIE
|
50
|
|
|
30
|
|
|
66.7%
|
|
160
|
|
|
77
|
|
|
107.8%
|
Other
|
—
|
|
|
—
|
|
|
*
|
|
2
|
|
|
(45)
|
|
|
*
|
Total
|
$
|
311
|
|
|
$
|
444
|
|
|
*
|
|
$
|
1,002
|
|
|
$
|
1,330
|
|
|
*
|
____________________
|
* Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Legal Entity)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Nine Months Ended
September 30,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
CEOC
|
$
|
—
|
|
|
$
|
232
|
|
|
*
|
|
$
|
34
|
|
|
$
|
717
|
|
|
*
|
CERP
|
157
|
|
|
123
|
|
|
27.6%
|
|
503
|
|
|
364
|
|
|
38.2%
|
CGP
Casinos
|
96
|
|
|
52
|
|
|
84.6%
|
|
272
|
|
|
185
|
|
|
47.0%
|
CIE
|
74
|
|
|
53
|
|
|
39.6%
|
|
205
|
|
|
128
|
|
|
60.2%
|
Other
|
(10)
|
|
|
(18)
|
|
|
*
|
|
(16)
|
|
|
(73)
|
|
|
78.1%
|
Total
|
$
|
317
|
|
|
$
|
442
|
|
|
*
|
|
$
|
998
|
|
|
$
|
1,321
|
|
|
*
|
____________________
|
* Not
meaningful
|
CAESARS ENTERTAINMENT
CORPORATION
SUPPLEMENTAL
INFORMATION
RECONCILIATION OF NET INCOME/(LOSS)
ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION
TO
PROPERTY EBITDA AND ADJUSTED EBITDA
Property earnings before interest, taxes, depreciation and
amortization ("EBITDA") is presented as a supplemental measure of
the Company's performance. Property EBITDA is defined as
revenues less property operating expenses and is comprised of net
income/(loss) before (i) interest expense, net of interest
capitalized and interest income, (ii) (benefit)/provision for
income taxes, (iii) depreciation and amortization, (iv) corporate
expenses, and (v) certain items that the Company does not consider
indicative of its ongoing operating performance at an operating
property level. In evaluating Property EBITDA you should be
aware that, in the future, the Company may incur expenses that are
the same or similar to some of the adjustments in this
presentation. The presentation of Property EBITDA should not
be construed as an inference that future results will be unaffected
by unusual or unexpected items.
Property EBITDA is a non-GAAP financial measure commonly used in
our industry and should not be construed as an alternative to net
income/(loss) as an indicator of operating performance or as an
alternative to cash flow provided by operating activities as a
measure of liquidity (as determined in accordance with GAAP).
Property EBITDA may not be comparable to similarly titled measures
reported by other companies within the industry. Property
EBITDA is included because management uses Property EBITDA to
measure performance and allocate resources, and believes that
Property EBITDA provides investors with additional information
consistent with that used by management.
Adjusted EBITDA is defined as EBITDA further adjusted to exclude
certain non-cash and other items as exhibited in the following
reconciliation, and is presented as a supplemental measure of the
Company's performance. Management believes that Adjusted EBITDA
provides investors with additional information and allows a better
understanding of the results of operational activities separate
from the financial impact of decisions made for the long-term
benefit of the Company.
Because not all companies use identical calculations, the
presentation of Adjusted EBITDA may not be comparable to other
similarly titled measures of other companies.
The following tables reconcile net income/(loss) attributable to
the companies presented to Property EBITDA and Adjusted EBITDA for
the periods indicated.
CAESARS
ENTERTAINMENT CORPORATION SUPPLEMENTAL
INFORMATION RECONCILIATION OF NET INCOME/(LOSS)
ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO
PROPERTY EBITDA AND ADJUSTED EBITDA
|
|
|
Three Months Ended
September 30, 2015
|
|
|
Three Months Ended
September 30, 2014
|
(In
millions)
|
CEOC
(g)
|
|
CERP
(h)
|
|
CGP
Casinos (i)
|
|
CIE
|
|
Other
(j)
|
|
CEC
|
|
|
CEOC
(g)
|
|
CERP
(h)
|
|
CGP
Casinos (i)
|
|
CIE
|
|
Other
(j)
|
|
CEC
|
Net income/(loss)
attributable to company
|
$
|
—
|
|
$
|
—
|
|
$
|
(3)
|
|
$
|
22
|
|
$
|
(810)
|
|
$
|
(791)
|
|
|
$
|
(875)
|
|
$
|
(149)
|
|
$
|
77
|
|
$
|
(16)
|
|
$
|
55
|
|
$
|
(908)
|
Net income/(loss)
attributable to noncontrolling interests
|
—
|
|
—
|
|
(2)
|
|
4
|
|
33
|
|
35
|
|
|
—
|
|
—
|
|
(3)
|
|
(2)
|
|
(67)
|
|
(72)
|
Net
income/(loss)
|
—
|
|
—
|
|
(5)
|
|
26
|
|
(777)
|
|
(756)
|
|
|
(875)
|
|
(149)
|
|
74
|
|
(18)
|
|
(12)
|
|
(980)
|
Net (income)/loss
from discontinued operations
|
—
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
48
|
|
—
|
|
—
|
|
15
|
|
(15)
|
|
48
|
Net income/(loss) from
continuing operations
|
—
|
|
—
|
|
(5)
|
|
26
|
|
(777)
|
|
(756)
|
|
|
(827)
|
|
(149)
|
|
74
|
|
(3)
|
|
(27)
|
|
(932)
|
Income tax
(benefit)/provision
|
—
|
|
—
|
|
—
|
|
21
|
|
(208)
|
|
(187)
|
|
|
(169)
|
|
1
|
|
1
|
|
21
|
|
(24)
|
|
(170)
|
Income/(loss) from
continuing operations before income taxes
|
—
|
|
—
|
|
(5)
|
|
47
|
|
(985)
|
|
(943)
|
|
|
(996)
|
|
(148)
|
|
75
|
|
18
|
|
(51)
|
|
(1,102)
|
Deconsolidation and
restructuring of CEOC and other (a)
|
—
|
|
—
|
|
(1)
|
|
(5)
|
|
941
|
|
935
|
|
|
101
|
|
—
|
|
(19)
|
|
—
|
|
(16)
|
|
66
|
Interest
expense
|
—
|
|
98
|
|
50
|
|
1
|
|
(2)
|
|
147
|
|
|
583
|
|
99
|
|
42
|
|
2
|
|
(18)
|
|
708
|
Income/(loss) from
operations
|
—
|
|
98
|
|
44
|
|
43
|
|
(46)
|
|
139
|
|
|
(312)
|
|
(49)
|
|
98
|
|
20
|
|
(85)
|
|
(328)
|
Depreciation and
amortization
|
—
|
|
52
|
|
39
|
|
7
|
|
—
|
|
98
|
|
|
88
|
|
48
|
|
31
|
|
7
|
|
(9)
|
|
165
|
Impairment of
intangible and tangible assets (b)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
388
|
|
118
|
|
63
|
|
—
|
|
(70)
|
|
499
|
Other operating costs
(c)
|
—
|
|
1
|
|
9
|
|
—
|
|
24
|
|
34
|
|
|
13
|
|
5
|
|
(42)
|
|
3
|
|
55
|
|
34
|
Corporate
expense
|
—
|
|
10
|
|
8
|
|
—
|
|
22
|
|
40
|
|
|
55
|
|
9
|
|
—
|
|
—
|
|
10
|
|
74
|
Gain on sale of
bonds
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
(99)
|
|
—
|
|
99
|
|
—
|
EBITDA attributable
to discontinued operations
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Property
EBITDA
|
—
|
|
161
|
|
100
|
|
50
|
|
—
|
|
311
|
|
|
232
|
|
131
|
|
51
|
|
30
|
|
—
|
|
444
|
Corporate
expense
|
—
|
|
(10)
|
|
(8)
|
|
—
|
|
(22)
|
|
(40)
|
|
|
(55)
|
|
(9)
|
|
—
|
|
—
|
|
(10)
|
|
(74)
|
Stock-based
compensation expense (d)
|
—
|
|
3
|
|
1
|
|
23
|
|
9
|
|
36
|
|
|
11
|
|
—
|
|
1
|
|
22
|
|
(1)
|
|
33
|
Adjustments to
include 100% of Baluma S.A.'s adjusted EBITDA
(e)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2)
|
Depreciation in
corporate expense
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
17
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17
|
Other items
(f)
|
—
|
|
3
|
|
3
|
|
1
|
|
3
|
|
10
|
|
|
29
|
|
1
|
|
—
|
|
1
|
|
(7)
|
|
24
|
Adjusted EBITDA,
Legal Entity
|
—
|
|
157
|
|
96
|
|
74
|
|
(10)
|
|
317
|
|
|
232
|
|
123
|
|
52
|
|
53
|
|
(18)
|
|
442
|
Impact of property
transactions
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted EBITDA,
Reportable Segments
|
$
|
—
|
|
$
|
157
|
|
$
|
96
|
|
$
|
74
|
|
$
|
(10)
|
|
$
|
317
|
|
|
$
|
232
|
|
$
|
123
|
|
$
|
52
|
|
$
|
53
|
|
$
|
(18)
|
|
$
|
442
|
CAESARS
ENTERTAINMENT CORPORATION
SUPPLEMENTAL
INFORMATION
RECONCILIATION OF
NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT
CORPORATION
TO PROPERTY EBITDA
AND ADJUSTED EBITDA
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
Nine Months Ended
September 30, 2014
|
(In
millions)
|
|
CEOC
(g)
|
|
CERP
(h)
|
|
CGP
Casinos (i)
|
|
CIE
|
|
Other
(j)
|
|
CEC
|
|
|
CEOC
(g)
|
|
CERP
(h)
|
|
CGP
Casinos (i)
|
|
CIE
|
|
Other
(j)
|
|
CEC
|
Net income/(loss)
attributable to company
|
|
$
|
(85)
|
|
$
|
20
|
|
$
|
120
|
|
$
|
75
|
|
$
|
5,868
|
|
$
|
5,998
|
|
|
$
|
(1,654)
|
|
$
|
(188)
|
|
$
|
83
|
|
$
|
(15)
|
|
$
|
13
|
|
$
|
(1,761)
|
Net income/(loss)
attributable to noncontrolling interests
|
|
—
|
|
—
|
|
(11)
|
|
15
|
|
90
|
|
94
|
|
|
3
|
|
—
|
|
(13)
|
|
(2)
|
|
(23)
|
|
(35)
|
Net
income/(loss)
|
|
(85)
|
|
20
|
|
109
|
|
90
|
|
5,958
|
|
6,092
|
|
|
(1,651)
|
|
(188)
|
|
70
|
|
(17)
|
|
(10)
|
|
(1,796)
|
Net (income)/loss
from discontinued operations
|
|
7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
|
149
|
|
—
|
|
—
|
|
16
|
|
13
|
|
178
|
Net income/(loss) from
continuing operations
|
|
(78)
|
|
20
|
|
109
|
|
90
|
|
5,958
|
|
6,099
|
|
|
(1,502)
|
|
(188)
|
|
70
|
|
(1)
|
|
3
|
|
(1,618)
|
Income tax
(benefit)/provision
|
|
—
|
|
13
|
|
—
|
|
48
|
|
(60)
|
|
1
|
|
|
(424)
|
|
(21)
|
|
13
|
|
19
|
|
(67)
|
|
(480)
|
Income/(loss) from
continuing operations before income taxes
|
|
(78)
|
|
33
|
|
109
|
|
138
|
|
5,898
|
|
6,100
|
|
|
(1,926)
|
|
(209)
|
|
83
|
|
18
|
|
(64)
|
|
(2,098)
|
Deconsolidation and
restructuring of CEOC and other (k)
|
|
—
|
|
—
|
|
(1)
|
|
(5)
|
|
(6,156)
|
|
(6,162)
|
|
|
98
|
|
—
|
|
(96)
|
|
—
|
|
92
|
|
94
|
Interest
expense
|
|
87
|
|
299
|
|
144
|
|
4
|
|
(3)
|
|
531
|
|
|
1,667
|
|
288
|
|
120
|
|
4
|
|
(125)
|
|
1,954
|
Income/(loss) from
operations
|
|
9
|
|
332
|
|
252
|
|
137
|
|
(261)
|
|
469
|
|
|
(161)
|
|
79
|
|
107
|
|
22
|
|
(97)
|
|
(50)
|
Depreciation and
amortization
|
|
11
|
|
151
|
|
110
|
|
23
|
|
1
|
|
296
|
|
|
271
|
|
153
|
|
78
|
|
21
|
|
(52)
|
|
471
|
Impairment of
intangible and tangible assets (b)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
418
|
|
118
|
|
63
|
|
—
|
|
(50)
|
|
549
|
Other operating costs
(c)
|
|
4
|
|
3
|
|
(98)
|
|
—
|
|
197
|
|
106
|
|
|
89
|
|
10
|
|
35
|
|
35
|
|
6
|
|
175
|
Corporate
expense
|
|
7
|
|
32
|
|
27
|
|
—
|
|
65
|
|
131
|
|
|
133
|
|
43
|
|
—
|
|
—
|
|
16
|
|
192
|
Impact of
consolidating The LINQ and Octavius Tower (l)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(33)
|
|
—
|
|
—
|
|
—
|
|
33
|
|
—
|
Gain on sale of
bonds
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
(99)
|
|
—
|
|
99
|
|
|
EBITDA attributable
to discontinued operations
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(6)
|
|
—
|
|
—
|
|
(1)
|
|
—
|
|
(7)
|
Property
EBITDA
|
|
31
|
|
518
|
|
291
|
|
160
|
|
2
|
|
1,002
|
|
|
711
|
|
403
|
|
184
|
|
77
|
|
(45)
|
|
1,330
|
Corporate
expense
|
|
(7)
|
|
(32)
|
|
(27)
|
|
—
|
|
(65)
|
|
(131)
|
|
|
(133)
|
|
(43)
|
|
—
|
|
—
|
|
(16)
|
|
(192)
|
Stock-based
compensation expense (d)
|
|
1
|
|
10
|
|
3
|
|
42
|
|
37
|
|
93
|
|
|
33
|
|
1
|
|
1
|
|
48
|
|
—
|
|
83
|
Adjustments to
include 100% of Baluma S.A.'s adjusted EBITDA
(e)
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
|
21
|
|
—
|
|
—
|
|
—
|
|
—
|
|
21
|
Depreciation in
corporate expense
|
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
|
39
|
|
—
|
|
—
|
|
—
|
|
—
|
|
39
|
Other items
(f)
|
|
4
|
|
7
|
|
5
|
|
3
|
|
10
|
|
29
|
|
|
46
|
|
3
|
|
—
|
|
3
|
|
(12)
|
|
40
|
Adjusted EBITDA,
Legal Entity
|
|
34
|
|
503
|
|
272
|
|
205
|
|
(16)
|
|
998
|
|
|
717
|
|
364
|
|
185
|
|
128
|
|
(73)
|
|
1,321
|
Impact of property
transactions
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(69)
|
|
—
|
|
—
|
|
—
|
|
69
|
|
—
|
Adjusted EBITDA,
Reportable Segments
|
|
$
|
34
|
|
$
|
503
|
|
$
|
272
|
|
$
|
205
|
|
$
|
(16)
|
|
$
|
998
|
|
|
$
|
648
|
|
$
|
364
|
|
$
|
185
|
|
$
|
128
|
|
$
|
(4)
|
|
$
|
1,321
|
CAESARS
ENTERTAINMENT CORPORATION
NOTES TO
SUPPLEMENTAL INFORMATION
RECONCILIATION OF
NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT
CORPORATION
TO PROPERTY EBITDA
AND ADJUSTED EBITDA
|
|
___________________
|
(a)
|
Amounts primarily
represent CEC's estimated costs in connection with the
restructuring of CEOC.
|
(b)
|
Amounts represent
non-cash charges to impair intangible and tangible assets primarily
resulting from changes in the business outlook in light of
competitive conditions.
|
(c)
|
Amounts primarily
represent pre-opening costs incurred in connection with property
openings and expansion projects at existing properties and costs
associated with the acquisition and development activities and
reorganization activities.
|
(d)
|
Amounts represent
stock-based compensation expense related to shares, stock options,
and restricted stock granted to the Company's
employees.
|
(e)
|
Amounts represent
adjustments to include 100% of Baluma S.A. (Conrad Punta del Este)
adjusted EBITDA as permitted under the indentures governing CEOC's
existing notes and the credit agreement governing CEOC's senior
secured credit facilities.
|
(f)
|
Amounts represent
add-backs and deductions from EBITDA, permitted under certain
indentures. Such add-backs and deductions include litigation
awards and settlements, costs associated with CEOC's restructuring
and related litigation, severance and relocation costs, sign-on and
retention bonuses, permit remediation costs, and business
optimization expenses.
|
(g)
|
Amounts include
the results and adjustments of CEOC on a consolidated basis without
the exclusion of CEOC's unrestricted subsidiaries, and therefore,
are different than the calculations used to determine compliance
with debt covenants under the credit facility.
|
(h)
|
Amounts include
the results and adjustments of CERP on a stand-alone
basis.
|
(i)
|
Amounts include
the results and adjustments attributable to CGP on a stand-alone
basis.
|
(j)
|
Amounts include
consolidating adjustments, eliminating adjustments and other
adjustments to reconcile to consolidated CEC Property EBITDA and
Adjusted EBITDA.
|
(k)
|
Amounts primarily
represent CEC's gain recognized upon the deconsolidation of CEOC
and estimated costs in connection with the restructuring of
CEOC.
|
(l)
|
Amounts represent
the EBITDA of The LINQ and Octavius Tower as consolidated in
CEOC. Because The LINQ and Octavius Tower are not legally
owned by CEOC the related EBITDA impact is removed from Property
EBITDA and Adjusted EBITDA measures.
|
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SOURCE Caesars Entertainment Corporation