LAS VEGAS, Feb. 14, 2017
/PRNewswire/ -- Caesars Entertainment Corporation (NASDAQ: CZR)
today reported fourth quarter and full-year 2016 results as
summarized in the discussion below, which highlights certain GAAP
and non-GAAP financial measures on a consolidated basis.
Full Year
- Net revenues for Continuing CEC increased 2.8% to $3.9 billion driven by strength in Las Vegas due to favorable hold and improved
hotel performance.
- Net loss for Continuing CEC, before including the effect of
noncontrolling interest, was $2.7
billion due to $5.7 billion of
accruals related to the restructuring of Caesars Entertainment
Operating Company, Inc. ("CEOC"), partially offset by a gain of
$4.2 billion on the sale of Caesars
Interactive Entertainment's ("CIE") social and mobiles games
business.
- Adjusted EBITDA for Continuing CEC increased 8.6% to
$1.1 billion driven by net revenue
increases and efficiency initiatives.
- In January 2017, the U.S.
Bankruptcy Court for the Northern District of Illinois approved CEOC's Plan of
Reorganization, paving the way for a successful conclusion to
CEOC's bankruptcy in 2017.
Fourth Quarter
- Net revenues for Continuing CEC increased 3.0% year-over-year
to $949 million.
- Net loss for Continuing CEC, before including the effect of
noncontrolling interest, was $435
million compared to a net loss of $39
million in the fourth quarter of 2015 mainly due to a
$426 million accrual related to the
restructuring of CEOC.
- Adjusted EBITDA for Continuing CEC grew 10.6% year-over-year to
$250 million.
- Continuing CEC Cash ADR in Las
Vegas was up 5.8% due to increased resort fees, effective
hotel yield management and improved pricing power.
"Caesars Entertainment delivered a second consecutive year of
solid operational improvement and margin expansion driven by strong
performance in Las Vegas, our
largest market, and continued productivity improvements. We also
generated record full year cash hotel revenues as we renovated over
8,000 rooms domestically since 2014. This year, we intend to
deliver additional cash flow and margin improvements while
completing CEOC's restructuring. These actions will allow us to
continue to generate more value for our stakeholders as we execute
against our long-term plan," said Mark
Frissora, President and Chief Executive Officer of Caesars
Entertainment.
Summary Financial Data
The results of CEOC and its subsidiaries are no longer
consolidated with Caesars subsequent to CEOC and certain of its
United States subsidiaries (the
"Debtors") voluntarily filing for reorganization under Chapter 11
of the United States Bankruptcy Code (the "Bankruptcy Code") on
January 15, 2015. In January
2017, the U.S. Bankruptcy Court for the Northern District of
Illinois approved CEOC's Plan of
Reorganization. This is a key milestone that paves the way toward a
successful conclusion of CEOC's bankruptcy in 2017.
In the table below, "Continuing CEC" represents Caesars
Entertainment Resort Properties, LLC ("CERP"), Caesars Growth
Partners, LLC ("CGP") (inclusive of CIE), other non-operating
subsidiaries and associated parent company and elimination
adjustments that represent the Caesars consolidated reporting
entity as of December 31, 2016, and
for subsequent periods.
Supplemental materials have been posted on the Caesars
Entertainment Investor Relations website at
http://investor.caesars.com/financials.cfm.
|
Three Months Ended
December 31,
|
|
|
(Dollars in
millions, except per share data)
|
2016
|
|
2015
|
|
Change
%
|
Casino
revenues
|
$
|
544
|
|
|
$
|
527
|
|
|
3.2%
|
Net
revenues
|
949
|
|
|
921
|
|
|
3.0%
|
Income from
operations
|
102
|
|
|
41
|
|
|
148.8%
|
Deconsolidation and
restructuring of CEOC and other
|
(425)
|
|
|
(47)
|
|
|
*
|
Loss from continuing
operations, net of income taxes
|
(464)
|
|
|
(88)
|
|
|
*
|
Discontinued
operations, net of income taxes
|
29
|
|
|
49
|
|
|
(40.8)%
|
Net loss
|
(435)
|
|
|
(39)
|
|
|
*
|
Net loss attributable
to Caesars
|
(541)
|
|
|
(76)
|
|
|
*
|
Basic loss per
share
|
(3.68)
|
|
|
(0.54)
|
|
|
*
|
Diluted loss per
share
|
(3.68)
|
|
|
(0.54)
|
|
|
*
|
Property EBITDA
(1)
|
273
|
|
|
237
|
|
|
15.2%
|
Adjusted EBITDA
(1)
|
250
|
|
|
226
|
|
|
10.6%
|
|
Years Ended
December 31,
|
|
Continuing
CEC
Change
%
|
|
2016
|
|
2015
|
|
(Dollars in
millions, except per share data)
|
Continuing
CEC
(2)
|
|
Continuing
CEC
(2)
|
|
CEOC
(3)
|
|
Reported
CEC
|
|
Casino
revenues
|
$
|
2,177
|
|
|
$
|
2,168
|
|
|
$
|
118
|
|
|
$
|
2,286
|
|
|
0.4%
|
Net
revenues
|
3,877
|
|
|
3,771
|
|
|
158
|
|
|
3,929
|
|
|
2.8%
|
Income from
operations
|
257
|
|
|
337
|
|
|
9
|
|
|
346
|
|
|
(23.7)%
|
Deconsolidation and
restructuring of CEOC and other
|
(5,758)
|
|
|
6,115
|
|
|
—
|
|
|
6,115
|
|
|
*
|
Income/(loss) from
continuing operations, net of income taxes
|
(6,127)
|
|
|
5,975
|
|
|
(78)
|
|
|
5,897
|
|
|
*
|
Discontinued
operations, net of income taxes
|
3,380
|
|
|
162
|
|
|
(7)
|
|
|
155
|
|
|
*
|
Net
income/(loss)
|
(2,747)
|
|
|
6,137
|
|
|
(85)
|
|
|
6,052
|
|
|
*
|
Net income/(loss)
attributable to Caesars
|
(3,569)
|
|
|
6,005
|
|
|
(85)
|
|
|
5,920
|
|
|
*
|
Basic earnings/(loss)
per share
|
(24.41)
|
|
|
40.88
|
|
|
—
|
|
|
40.88
|
|
|
*
|
Diluted
earnings/(loss) per share
|
(24.41)
|
|
|
40.26
|
|
|
—
|
|
|
40.26
|
|
|
*
|
Property EBITDA
(1)
|
1,140
|
|
|
1,047
|
|
|
31
|
|
|
1,078
|
|
|
8.9%
|
Adjusted EBITDA
(1)
|
1,070
|
|
|
985
|
|
|
34
|
|
|
1,019
|
|
|
8.6%
|
____________________
|
See "Footnotes to
Tables" following Balance Sheet and Other Items later in this
release.
|
Financial Results
We view each casino property as an operating segment and
currently aggregate all such casino properties into two reportable
segments based on management's view, which aligns with their own
ownership and underlying credit structures: CERP and CGP. Through
June 30, 2016, we aggregated the
operating segments within CGP into two separate reportable
segments: Caesars Growth Partners Casino Properties and
Developments ("CGP Casinos") and CIE. On September 23, 2016, CIE sold its social and
mobile games business ("SMG Business") for cash consideration of
$4.4 billion, subject to customary
purchase price adjustments, and retained only its World Series of
Poker ("WSOP") and regulated online real money gaming businesses.
The SMG Business represented the majority of CIE's operations and
is being classified as a discontinued operation for all periods
presented. After excluding the SMG Business from CIE's continuing
operations, we no longer consider CIE to be a separate reportable
segment from CGP Casinos. Therefore, CGP Casinos and CIE have been
combined for all periods presented to form the CGP segment. CEOC
was a reportable segment until its deconsolidation effective
January 15, 2015.
Segment results in this release are presented consistent with
the way Caesars management assesses these results and allocates
resources, which is a consolidated view that adjusts for the impact
of certain transactions between reportable segments within Caesars,
as described below. Accordingly, the results of certain reportable
segments presented in this filing differ from the financial
statement information presented in their stand-alone filings.
"Other" includes parent, consolidating, and other adjustments to
reconcile to consolidated Caesars results. All comparisons are to
the same period of the previous year.
Net
Revenues
|
|
Three Months Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Years Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
CERP
|
$
|
536
|
|
|
$
|
517
|
|
|
3.7%
|
|
$
|
2,195
|
|
|
$
|
2,154
|
|
|
1.9%
|
CGP
(4)
|
414
|
|
|
402
|
|
|
3.0%
|
|
1,697
|
|
|
1,620
|
|
|
4.8%
|
Other
(5)
|
(1)
|
|
|
2
|
|
|
*
|
|
(15)
|
|
|
(3)
|
|
|
*
|
Total Continuing
CEC
|
949
|
|
|
921
|
|
|
3.0%
|
|
3,877
|
|
|
3,771
|
|
|
2.8%
|
CEOC
(3)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
164
|
|
|
*
|
Other
(5)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
(6)
|
|
|
*
|
Total CEOC
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
158
|
|
|
*
|
Total Reported
CEC
|
$
|
949
|
|
|
$
|
921
|
|
|
*
|
|
$
|
3,877
|
|
|
$
|
3,929
|
|
|
*
|
|
|
Income from
Operations
|
|
Three Months Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Years Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
CERP
|
$
|
96
|
|
|
$
|
80
|
|
|
20.0%
|
|
$
|
389
|
|
|
$
|
411
|
|
|
(5.4)%
|
CGP
(4)
|
42
|
|
|
27
|
|
|
55.6%
|
|
20
|
|
|
253
|
|
|
(92.1)%
|
Other
(5)
|
(36)
|
|
|
(66)
|
|
|
45.5%
|
|
(152)
|
|
|
(327)
|
|
|
53.5%
|
Total Continuing
CEC
|
102
|
|
|
41
|
|
|
148.8%
|
|
257
|
|
|
337
|
|
|
(23.7)%
|
CEOC
(3)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
9
|
|
|
*
|
Other
(5)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
—
|
|
|
*
|
Total CEOC
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
9
|
|
|
*
|
Total Reported
CEC
|
$
|
102
|
|
|
$
|
41
|
|
|
*
|
|
$
|
257
|
|
|
$
|
346
|
|
|
*
|
|
|
Net
Income/(Loss)
|
|
Three Months Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Years Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
CERP
|
$
|
(1)
|
|
|
$
|
(13)
|
|
|
92.3%
|
|
$
|
(3)
|
|
|
$
|
7
|
|
|
*
|
CGP
(4)
|
11
|
|
|
25
|
|
|
(56.0)%
|
|
3,925
|
|
|
226
|
|
|
*
|
Other
(5)
|
(445)
|
|
|
(51)
|
|
|
*
|
|
(6,669)
|
|
|
5,904
|
|
|
*
|
Total Continuing
CEC
|
(435)
|
|
|
(39)
|
|
|
*
|
|
(2,747)
|
|
|
6,137
|
|
|
*
|
CEOC
(3)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
(85)
|
|
|
*
|
Other
(5)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
—
|
|
|
*
|
Total CEOC
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
(85)
|
|
|
*
|
Total Reported
CEC
|
$
|
(435)
|
|
|
$
|
(39)
|
|
|
*
|
|
$
|
(2,747)
|
|
|
$
|
6,052
|
|
|
*
|
|
|
Property
EBITDA
|
|
Three Months Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Years Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
CERP
|
$
|
171
|
|
|
$
|
153
|
|
|
11.8%
|
|
$
|
697
|
|
|
$
|
672
|
|
|
3.7%
|
CGP
(4)
|
102
|
|
|
82
|
|
|
24.4%
|
|
439
|
|
|
370
|
|
|
18.6%
|
Other
(5)
|
—
|
|
|
2
|
|
|
(100.0)%
|
|
4
|
|
|
5
|
|
|
(20.0)%
|
Total Continuing
CEC
|
273
|
|
|
237
|
|
|
15.2%
|
|
1,140
|
|
|
1,047
|
|
|
8.9%
|
CEOC
(3)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
31
|
|
|
*
|
Other
(5)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
—
|
|
|
*
|
Total CEOC
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
31
|
|
|
*
|
Total Reported
CEC
|
$
|
273
|
|
|
$
|
237
|
|
|
*
|
|
$
|
1,140
|
|
|
$
|
1,078
|
|
|
*
|
|
|
Adjusted
EBITDA
|
|
Three Months Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
|
Years Ended
December 31,
|
|
Percent
Favorable/
(Unfavorable)
|
(Dollars in
millions)
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
CERP
|
$
|
163
|
|
|
$
|
145
|
|
|
12.4%
|
|
$
|
670
|
|
|
$
|
650
|
|
|
3.1%
|
CGP
(4)
|
93
|
|
|
78
|
|
|
19.2%
|
|
416
|
|
|
348
|
|
|
19.5%
|
Other
(5)
|
(6)
|
|
|
3
|
|
|
*
|
|
(16)
|
|
|
(13)
|
|
|
(23.1)%
|
Total Continuing
CEC
|
250
|
|
|
226
|
|
|
10.6%
|
|
1,070
|
|
|
985
|
|
|
8.6%
|
CEOC
(3)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
34
|
|
|
*
|
Other
(5)
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
—
|
|
|
*
|
Total CEOC
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
34
|
|
|
*
|
Total Reported
CEC
|
$
|
250
|
|
|
$
|
226
|
|
|
*
|
|
$
|
1,070
|
|
|
$
|
1,019
|
|
|
*
|
Continuing CEC
Net revenues for Continuing CEC increased 3.0% year-over-year to
$949 million primarily due to strong
growth in the Las Vegas region
resulting from favorable year over year hold and improved hotel
performance. Income from operations increased $61 million to $102
million, property EBITDA increased 15.2% to $273 million and adjusted EBITDA increased 10.6%
to $250 million. These increases were
mainly due to increases in net revenues and efficiency initiatives.
Net loss, before including the effect of non-controlling interest,
was $435 million compared to a net
loss of $39 million in the fourth
quarter of 2015 mainly due to a $426
million accrual related to CEC's estimate of the additional
amount it will pay to support the restructuring of CEOC.
CERP
CERP owns six casinos in the United
States and The LINQ promenade, along with leasing
Octavius Tower at Caesars Palace Las
Vegas to CEOC and gaming space at The LINQ promenade to CGP.
Net revenues for the fourth quarter of 2016 were $536 million, up 3.7% primarily due to increased
gaming revenues and higher hotel revenues in Las Vegas. Room renovations at Paris negatively impacted CERP's hospitality
revenues in the quarter as there were over 23,000 room nights out
of service. Casino revenues were $278
million, up 4.1% from the prior year mainly due to higher
gaming volumes in Las Vegas and
Atlantic City as well as favorable
year over year hold, primarily at Paris. Room revenues rose 2.3% in the quarter
to $135 million driven by a 6.3%
increase in cash ADR mainly due to improved hotel performance in
Las Vegas as a result of room
renovations at Harrah's and Paris.
Food and beverage revenues were $128
million, down 0.8%, partially driven by rooms out of service
at Paris.
Income from operations increased 20.0% to $96 million, net income increased $12 million to a net loss of $1 million and adjusted EBITDA increased 12.4% to
$163 million. These increases were
mainly due to higher revenues and efficiency initiatives. Hold was
estimated to have a minimal effect on operating income in the
quarter relative to our expected hold and a favorable effect of
between $5 million and $10 million
when compared to the prior year period.
CGP
CGP owns six casinos in the United
States, primarily in Las
Vegas, as well as CIE. CIE owns and operates regulated
online real money gaming and the WSOP tournaments and brand.
Net revenues for the fourth quarter of 2016 were $414 million, a 3.0% increase primarily
attributable to higher gaming and hotel revenues in Las Vegas and increases in entertainment
revenue mainly due to the Axis Theater at Planet Hollywood. Casino
revenues were $265 million, up 1.9%
from the prior year mainly driven by favorable year over year hold,
partially offset by weaker gaming volumes in Baltimore and New
Orleans. Gaming volumes at Horseshoe Baltimore were impacted
by the entry of a new competitor in the market while Harrah's
New Orleans continued to
experience pressure from the smoking ban. Room revenues increased
2.4% to $87 million mainly due to
higher hotel rates, resort fees and improved hotel yield. Planet
Hollywood had 33,000 room nights
off the market in the quarter due to room renovations, which also
affected hotel revenues at the property. Food and beverage revenues
were $62 million, down 4.6%,
partially due to rooms out of service at Planet Hollywood.
Net income decreased $14 million
to $11 million primarily attributable
to the sale of CIE's SMG Business. Income from operations increased
55.6% to $42 million and adjusted
EBITDA increased 19.2% to $93 million
mainly due to higher revenues and efficiency initiatives.
Hold was estimated to have a favorable effect on operating income
of between $0 million and $5 million
in the quarter relative to our expected hold and between
$0 million and $5 million when
compared to the prior year period.
CEOC and CES
CEOC owns and operates 19 casinos in the United States and nine internationally,
most of which are located in England, and manages 8 casinos, which include
one CGP casino and seven casinos for unrelated third parties.
Caesars Enterprise Services ("CES") is a joint venture among CERP,
CEOC, and a subsidiary of CGP. CES provides certain corporate and
administrative services to their casino properties. In addition,
effective October 2014 most
of the properties owned by CERP and CGP are managed by
CES.
Cash and Available Revolver Capacity
CEC is primarily a holding company with no independent
operations, employees, or material debt issuances of its own. CEC's
primary assets as of December 31, 2016, consist of
$188 million in cash and cash
equivalents and its ownership interests in CEOC, CERP and CGP.
CEC's cash includes $109 million held
by insurance captives. Each of the subsidiary 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. In the table below, "Other" reflects CEC and its other
direct subsidiaries.
CEC has limited unrestricted cash available to meet its
financial commitments, primarily resulting from significant
expenditures made to defend against litigation related to the CEOC
restructuring and to support a plan of reorganization for CEOC. The
completion of the merger with CAC is expected to allow CEC to
fulfill its financial commitments in support of the restructuring;
under the terms of the restructuring, all related litigation is
expected to be resolved; and CEC is permitted to use a portion of
the proceeds from the sale of CIE's SMG Business to fund certain
expenses incurred related to the restructuring. If CEC is unable to
obtain additional sources of cash when needed, in the event of a
material adverse ruling on one or all of our ongoing litigation
matters, or if CEOC does not emerge from bankruptcy on a timely
basis on terms and under circumstances satisfactory to CEC, it is
likely that CEC would seek reorganization under Chapter 11 of the
Bankruptcy Code.
|
December 31, 2016
|
(In
millions)
|
CERP
|
|
CGP
|
|
CES
(6)
|
|
Other
|
Cash and cash
equivalents
|
$
|
168
|
|
|
$
|
1,050
|
|
|
$
|
107
|
|
|
$
|
188
|
|
Revolver
capacity
|
270
|
|
|
160
|
|
|
—
|
|
|
—
|
|
Revolver capacity
drawn or committed to letters of credit
|
(40)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
Liquidity
|
$
|
398
|
|
|
$
|
1,210
|
|
|
$
|
107
|
|
|
$
|
188
|
|
|
|
Footnotes to
Tables
|
*
|
Not
meaningful.
|
(1)
|
See the
Reconciliation of Non-GAAP Financial Measures discussion later in
this release for a reconciliation of Property EBITDA and Adjusted
EBITDA.
|
(2)
|
Includes CERP,
CGP, and associated parent company and elimination adjustments that
represent the CEC structure as of December 31, 2016, and
for subsequent periods.
|
(3)
|
Includes
eliminations of intercompany transactions and other consolidating
adjustments.
|
(4)
|
CGP is comprised
of all subsidiaries of CGP, including CIE.
|
(5)
|
Other includes
parent, consolidating, and other adjustments to reconcile to
consolidated CEC results.
|
(6)
|
CES is a joint
venture among CERP, CEOC, and a subsidiary of CGP that provides
certain corporate and administrative services to their casino
properties.
|
Conference Call Information
Caesars Entertainment Corporation (NASDAQ: CZR) will host a
conference call at 1:30 p.m. Pacific Time
Tuesday, February 14, 2017, to discuss its fourth
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 CEOC. 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 58413328
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 in 1937, CEC has grown through development of new
resorts, expansions and acquisitions. The Caesars system of
properties now operates 47 casinos in 13 U.S. states and five
countries. CERP and CGP own 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.
Caesars Entertainment Corporation is primarily a holding company
with no independent operations of its own. It owns Caesars CERP, an
interest in CGP and various other non-operating subsidiaries. It
also has majority ownership of CEOC. The results of CEOC and its
subsidiaries are no longer consolidated with CEC subsequent to
CEOC's Chapter 11 filing on January 15,
2015. 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.
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 "may," "would,"
"estimate," "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 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;
- CEC's limited cash balances and sources of available cash,
including CEC's ability (or inability) to secure additional
liquidity to meet its ongoing obligations and its commitments to
support the CEOC restructuring as necessary and CEC's financial
obligations exceeding or becoming due earlier than what is
currently forecast;
- the ability to retain key employees during the restructuring of
CEOC;
- risks associated with third party motions in the Chapter 11
Case, which may hinder or delay CEOC's ability to consummate the
Plan of Reorganization (the "Plan");
- the ability (or inability) of CEC and CEOC to satisfy the
conditions to the effectiveness of the Plan that has been approved
by the Bankruptcy Court;
- the outcome of currently pending or threatened litigation and
demands for payment by certain creditors and by the National
Retirement Fund against CEC;
- adverse effects of Chapter 11 proceedings on Caesars
Entertainment's liquidity or results of operations;
- the merger of CEC and CAC, which is contemplated by the Plan
may not be consummated or one or more events, changes or other
circumstances could give rise to termination of the related Merger
Agreement;
- 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 our consolidated businesses;
- 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, regulatory
disciplinary actions, 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)
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
(In millions,
except per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
|
|
Casino
|
$
|
544
|
|
|
$
|
527
|
|
|
$
|
2,177
|
|
|
$
|
2,286
|
|
Food and
beverage
|
189
|
|
|
196
|
|
|
788
|
|
|
823
|
|
Rooms
|
222
|
|
|
215
|
|
|
923
|
|
|
878
|
|
Other
revenue
|
129
|
|
|
122
|
|
|
527
|
|
|
495
|
|
Reimbursable
management costs
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
Less: casino
promotional allowances
|
(135)
|
|
|
(139)
|
|
|
(538)
|
|
|
(563)
|
|
Net
revenues
|
949
|
|
|
921
|
|
|
3,877
|
|
|
3,929
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Direct
|
|
|
|
|
|
|
|
Casino
|
288
|
|
|
281
|
|
|
1,128
|
|
|
1,194
|
|
Food and
beverage
|
91
|
|
|
95
|
|
|
383
|
|
|
399
|
|
Rooms
|
60
|
|
|
56
|
|
|
249
|
|
|
227
|
|
Property, general,
administrative, and other
|
238
|
|
|
259
|
|
|
1,166
|
|
|
1,052
|
|
Reimbursable
management costs
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
Depreciation and
amortization
|
112
|
|
|
98
|
|
|
439
|
|
|
374
|
|
Impairment of
intangible and tangible assets
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Corporate
expense
|
46
|
|
|
44
|
|
|
166
|
|
|
174
|
|
Other operating
costs
|
12
|
|
|
46
|
|
|
89
|
|
|
152
|
|
Total operating
expenses
|
847
|
|
|
880
|
|
|
3,620
|
|
|
3,583
|
|
Income from
operations
|
102
|
|
|
41
|
|
|
257
|
|
|
346
|
|
Interest
expense
|
(151)
|
|
|
(152)
|
|
|
(599)
|
|
|
(683)
|
|
Deconsolidation and
restructuring of CEOC and other
|
(425)
|
|
|
(47)
|
|
|
(5,758)
|
|
|
6,115
|
|
Income/(loss) from
continuing operations before income taxes
|
(474)
|
|
|
(158)
|
|
|
(6,100)
|
|
|
5,778
|
|
Income tax
benefit/(provision)
|
10
|
|
|
70
|
|
|
(27)
|
|
|
119
|
|
Income/(loss) from
continuing operations, net of income taxes
|
(464)
|
|
|
(88)
|
|
|
(6,127)
|
|
|
5,897
|
|
Discontinued
operations, net of income tax
|
29
|
|
|
49
|
|
|
3,380
|
|
|
155
|
|
Net
income/(loss)
|
(435)
|
|
|
(39)
|
|
|
(2,747)
|
|
|
6,052
|
|
Net income
attributable to noncontrolling interests
|
(106)
|
|
|
(37)
|
|
|
(822)
|
|
|
(132)
|
|
Net income/(loss)
attributable to Caesars
|
$
|
(541)
|
|
|
$
|
(76)
|
|
|
$
|
(3,569)
|
|
|
$
|
5,920
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share - basic and diluted
|
|
|
|
|
|
|
|
Basic earnings/(loss)
per share from continuing operations
|
$
|
(3.88)
|
|
|
$
|
(0.87)
|
|
|
$
|
(47.52)
|
|
|
$
|
39.80
|
|
Basic earnings per
share from discontinued operations
|
0.20
|
|
|
0.33
|
|
|
23.11
|
|
|
1.08
|
|
Basic earnings/(loss)
per share
|
$
|
(3.68)
|
|
|
$
|
(0.54)
|
|
|
$
|
(24.41)
|
|
|
$
|
40.88
|
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per share from continuing operations
|
$
|
(3.88)
|
|
|
$
|
(0.87)
|
|
|
$
|
(47.52)
|
|
|
$
|
39.20
|
|
Diluted earnings per
share from discontinued operations
|
0.20
|
|
|
0.33
|
|
|
23.11
|
|
|
1.06
|
|
Diluted
earnings/(loss) per share
|
$
|
(3.68)
|
|
|
$
|
(0.54)
|
|
|
$
|
(24.41)
|
|
|
$
|
40.26
|
|
CAESARS
ENTERTAINMENT CORPORATION
|
CONSOLIDATED
CONDENSED SUMMARY BALANCE SHEETS
|
|
|
As of December
31,
|
(In
millions)
|
2016
|
|
2015
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,513
|
|
|
$
|
1,227
|
|
Restricted
cash
|
3,113
|
|
|
58
|
|
Other current
assets
|
362
|
|
|
674
|
|
Total current
assets
|
4,988
|
|
|
1,959
|
|
Property and
equipment, net
|
7,446
|
|
|
7,584
|
|
Goodwill
|
1,608
|
|
|
1,608
|
|
Intangible assets
other than goodwill
|
433
|
|
|
498
|
|
Restricted
cash
|
5
|
|
|
109
|
|
Deferred charges and
other assets
|
414
|
|
|
448
|
|
Total
assets
|
$
|
14,894
|
|
|
$
|
12,206
|
|
Liabilities and
Stockholders' Equity/(Deficit)
|
|
|
|
Current
liabilities
|
|
|
|
Accrued restructuring
and support expenses
|
$
|
6,601
|
|
|
$
|
905
|
|
Current portion of
long-term debt
|
89
|
|
|
187
|
|
Other current
liabilities
|
1,058
|
|
|
924
|
|
Total current
liabilities
|
7,748
|
|
|
2,016
|
|
Long-term
debt
|
6,749
|
|
|
6,777
|
|
Other long-term
liabilities
|
1,815
|
|
|
1,180
|
|
Total
liabilities
|
16,312
|
|
|
9,973
|
|
Total Caesars
stockholders' equity/(deficit)
|
(3,177)
|
|
|
987
|
|
Noncontrolling
interests
|
1,759
|
|
|
1,246
|
|
Total stockholders'
equity/(deficit)
|
(1,418)
|
|
|
2,233
|
|
Total liabilities and
stockholders' equity/(deficit)
|
$
|
14,894
|
|
|
$
|
12,206
|
|
CAESARS
ENTERTAINMENT CORPORATION
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
|
|
|
Years Ended
December 31,
|
(In
millions)
|
2016
|
|
2015
|
Cash flows from
operating activities
|
|
|
|
Net
income/(loss)
|
$
|
(2,747)
|
|
|
$
|
6,052
|
|
Adjustments to
reconcile net income/(loss) to cash flows from operating
activities:
|
|
|
|
Income from
discontinued operations
|
(3,380)
|
|
|
(155)
|
|
Gain on
deconsolidation of CEOC
|
—
|
|
|
(7,125)
|
|
Depreciation and
amortization
|
439
|
|
|
374
|
|
Amortization of
deferred finance costs and debt discount/premium
|
24
|
|
|
38
|
|
Provision for
doubtful accounts
|
11
|
|
|
11
|
|
Impairment of
intangible and tangible assets
|
—
|
|
|
1
|
|
Share-based
compensation expense
|
228
|
|
|
94
|
|
Deferred income
taxes
|
2
|
|
|
(113)
|
|
Other non-cash
adjustments to net income/(loss)
|
14
|
|
|
1
|
|
Net changes
in:
|
|
|
|
Accounts
receivable
|
(22)
|
|
|
(51)
|
|
Due to/due from
affiliates, net
|
19
|
|
|
(28)
|
|
Inventories,
prepayments and other current assets
|
(11)
|
|
|
1
|
|
Deferred charges and
other
|
—
|
|
|
(17)
|
|
Accounts
payable
|
39
|
|
|
(47)
|
|
Interest
payable
|
(64)
|
|
|
(41)
|
|
Accrued
expenses
|
50
|
|
|
45
|
|
Restructuring
accruals
|
5,696
|
|
|
905
|
|
Deferred credits and
other
|
10
|
|
|
(5)
|
|
Other
|
—
|
|
|
3
|
|
Cash flows
provided by/(used in) operating activities
|
308
|
|
|
(57)
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of
property and equipment, net of change in related
payables
|
(220)
|
|
|
(341)
|
|
Deconsolidation of
CEOC cash
|
—
|
|
|
(985)
|
|
Return of investment
from discontinued operations
|
132
|
|
|
142
|
|
Contributions to
discontinued operations
|
(56)
|
|
|
(15)
|
|
Proceeds from the
sale and maturity of investments
|
46
|
|
|
29
|
|
Payments to acquire
investments
|
(23)
|
|
|
(27)
|
|
Other
|
—
|
|
|
(3)
|
|
Cash flows
used in investing activities
|
(121)
|
|
|
(1,200)
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
long-term debt and revolving credit facilities
|
120
|
|
|
310
|
|
Repayments of
long-term debt and revolving credit facilities
|
(268)
|
|
|
(450)
|
|
Payment of contingent
consideration
|
—
|
|
|
(1)
|
|
Repurchase of CIE
shares and distribution of sale proceeds
|
(1,126)
|
|
|
(65)
|
|
Distributions to
noncontrolling interest owners
|
(270)
|
|
|
(36)
|
|
Other
|
11
|
|
|
25
|
|
Cash flows
used in financing activities
|
(1,533)
|
|
|
(217)
|
|
Cash flows from
discontinued operations
|
|
|
|
Cash flows from
operating activities
|
168
|
|
|
159
|
|
Cash flows from
investing activities
|
4,379
|
|
|
(12)
|
|
Cash flows from
financing activities
|
(76)
|
|
|
(158)
|
|
Net cash
from discontinued operations
|
4,471
|
|
|
(11)
|
|
|
|
|
|
Change in cash, cash
equivalents, and restricted cash classified as assets held for
sale
|
112
|
|
|
(8)
|
|
|
|
|
|
Net
increase/(decrease) in cash, cash equivalents, and restricted
cash
|
3,237
|
|
|
(1,493)
|
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
1,394
|
|
|
2,887
|
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
|
4,631
|
|
|
$
|
1,394
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
Cash paid for
interest
|
$
|
634
|
|
|
$
|
696
|
|
Cash paid for income
taxes
|
65
|
|
|
80
|
|
Non-cash investing
and financing activities:
|
|
|
|
Change in accrued
capital expenditures
|
14
|
|
|
(35)
|
|
Change in assets
acquired through financing activities and capital leases
|
—
|
|
|
—
|
|
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 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) income tax provision, (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. As a result of the sale
of the SMG Business, we have determined that CIE stock-based
compensation expense should be excluded from Property EBITDA as
management no longer considers such expense to be indicative of
Caesars Entertainment's ongoing consolidated or segment operating
performance. Therefore, Property EBITDA has been recast for prior
periods to be consistent to the current year presentation.
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. In addition, compensation of management is
in part determined by reference to certain of such financial
information. As a result, we believe this supplemental information
is useful to investors who are trying to understand the results 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
December 31, 2016
|
|
|
Three Months Ended
December 31, 2015
|
(In
millions)
|
|
CEOC
|
|
CERP
|
|
CGP
(f)
|
|
Other
(g)
|
|
CEC
|
|
|
CEOC
|
|
CERP
|
|
CGP
(f)
|
|
Other
(g)
|
|
CEC
|
Net income/(loss)
attributable to company
|
|
$
|
—
|
|
|
$
|
(1)
|
|
|
$
|
13
|
|
|
$
|
(553)
|
|
|
$
|
(541)
|
|
|
|
$
|
—
|
|
|
$
|
(13)
|
|
|
$
|
23
|
|
|
$
|
(86)
|
|
|
$
|
(76)
|
|
Net income/(loss)
attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
108
|
|
|
106
|
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
35
|
|
|
37
|
|
Net (income)/loss
from discontinued operations
|
|
—
|
|
|
—
|
|
|
(23)
|
|
|
(6)
|
|
|
(29)
|
|
|
|
—
|
|
|
—
|
|
|
(49)
|
|
|
—
|
|
|
(49)
|
|
Income tax
(benefit)/provision
|
|
—
|
|
|
(2)
|
|
|
5
|
|
|
(13)
|
|
|
(10)
|
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
|
(62)
|
|
|
(70)
|
|
Deconsolidation and
restructuring of CEOC and other (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
425
|
|
|
425
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
47
|
|
Interest
expense
|
|
—
|
|
|
99
|
|
|
49
|
|
|
3
|
|
|
151
|
|
|
|
—
|
|
|
101
|
|
|
51
|
|
|
—
|
|
|
152
|
|
Income/(loss) from
operations
|
|
—
|
|
|
96
|
|
|
42
|
|
|
(36)
|
|
|
102
|
|
|
|
—
|
|
|
80
|
|
|
27
|
|
|
(66)
|
|
|
41
|
|
Depreciation and
amortization
|
|
—
|
|
|
62
|
|
|
49
|
|
|
1
|
|
|
112
|
|
|
|
—
|
|
|
58
|
|
|
40
|
|
|
—
|
|
|
98
|
|
Impairment of
tangible and other intangible assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Other operating costs
(b)
|
|
—
|
|
|
2
|
|
|
2
|
|
|
8
|
|
|
12
|
|
|
|
—
|
|
|
—
|
|
|
(6)
|
|
|
52
|
|
|
46
|
|
Corporate
expense
|
|
—
|
|
|
11
|
|
|
8
|
|
|
27
|
|
|
46
|
|
|
|
—
|
|
|
15
|
|
|
13
|
|
|
16
|
|
|
44
|
|
CIE stock-based
compensation
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
Property
EBITDA
|
|
$
|
—
|
|
|
$
|
171
|
|
|
$
|
102
|
|
|
$
|
—
|
|
|
$
|
273
|
|
|
|
$
|
—
|
|
|
$
|
153
|
|
|
$
|
82
|
|
|
$
|
2
|
|
|
$
|
237
|
|
Corporate
expense
|
|
—
|
|
|
(11)
|
|
|
(8)
|
|
|
(27)
|
|
|
(46)
|
|
|
|
—
|
|
|
(15)
|
|
|
(13)
|
|
|
(16)
|
|
|
(44)
|
|
Stock-based
compensation expense (c)
|
|
—
|
|
|
2
|
|
|
1
|
|
|
5
|
|
|
8
|
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
8
|
|
|
13
|
|
Other items
(e)
|
|
—
|
|
|
1
|
|
|
(2)
|
|
|
16
|
|
|
15
|
|
|
|
—
|
|
|
4
|
|
|
7
|
|
|
9
|
|
|
20
|
|
Adjusted
EBITDA
|
|
$
|
—
|
|
|
$
|
163
|
|
|
$
|
93
|
|
|
$
|
(6)
|
|
|
$
|
250
|
|
|
|
$
|
—
|
|
|
$
|
145
|
|
|
$
|
78
|
|
|
$
|
3
|
|
|
$
|
226
|
|
CAESARS
ENTERTAINMENT CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
RECONCILIATION OF
NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT
CORPORATION
|
TO PROPERTY EBITDA
AND ADJUSTED EBITDA
|
|
|
|
Year Ended
December 31, 2016
|
|
|
Year Ended
December 31, 2015
|
(In
millions)
|
|
CEOC
|
|
CERP
|
|
CGP
(f)
|
|
Other
(g)
|
|
CEC
|
|
|
CEOC
|
|
CERP
|
|
CGP
(f)
|
|
Other
(g)
|
|
CEC
|
Net income/(loss)
attributable to company
|
|
$
|
—
|
|
|
$
|
(3)
|
|
|
$
|
3,953
|
|
|
$
|
(7,519)
|
|
|
$
|
(3,569)
|
|
|
|
$
|
(85)
|
|
|
$
|
7
|
|
|
$
|
220
|
|
|
$
|
5,778
|
|
|
$
|
5,920
|
|
Net income/(loss)
attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(28)
|
|
|
850
|
|
|
822
|
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
126
|
|
|
132
|
|
Net (income)/loss
from discontinued operations
|
|
—
|
|
|
—
|
|
|
(4,100)
|
|
|
720
|
|
|
(3,380)
|
|
|
|
7
|
|
|
—
|
|
|
(162)
|
|
|
—
|
|
|
(155)
|
|
Income tax
(benefit)/provision
|
|
—
|
|
|
(4)
|
|
|
(1)
|
|
|
32
|
|
|
27
|
|
|
|
—
|
|
|
5
|
|
|
(2)
|
|
|
(122)
|
|
|
(119)
|
|
Deconsolidation and
restructuring of CEOC and other (a)
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
5,760
|
|
|
5,758
|
|
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
(6,111)
|
|
|
(6,115)
|
|
Interest
expense
|
|
—
|
|
|
396
|
|
|
198
|
|
|
5
|
|
|
599
|
|
|
|
87
|
|
|
399
|
|
|
195
|
|
|
2
|
|
|
683
|
|
Income/(loss) from
operations
|
|
—
|
|
|
389
|
|
|
20
|
|
|
(152)
|
|
|
257
|
|
|
|
9
|
|
|
411
|
|
|
253
|
|
|
(327)
|
|
|
346
|
|
Depreciation and
amortization
|
|
—
|
|
|
258
|
|
|
180
|
|
|
1
|
|
|
439
|
|
|
|
13
|
|
|
210
|
|
|
151
|
|
|
—
|
|
|
374
|
|
Impairment of
tangible and other intangible assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Other operating costs
(b)
|
|
—
|
|
|
7
|
|
|
21
|
|
|
61
|
|
|
89
|
|
|
|
4
|
|
|
4
|
|
|
(105)
|
|
|
249
|
|
|
152
|
|
Corporate
expense
|
|
—
|
|
|
43
|
|
|
29
|
|
|
94
|
|
|
166
|
|
|
|
5
|
|
|
47
|
|
|
39
|
|
|
83
|
|
|
174
|
|
CIE stock-based
compensation
|
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
189
|
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
Property
EBITDA
|
|
$
|
—
|
|
|
$
|
697
|
|
|
$
|
439
|
|
|
$
|
4
|
|
|
$
|
1,140
|
|
|
|
$
|
31
|
|
|
$
|
672
|
|
|
$
|
370
|
|
|
$
|
5
|
|
|
$
|
1,078
|
|
Corporate
expense
|
|
—
|
|
|
(43)
|
|
|
(29)
|
|
|
(94)
|
|
|
(166)
|
|
|
|
(5)
|
|
|
(47)
|
|
|
(39)
|
|
|
(83)
|
|
|
(174)
|
|
Stock-based
compensation expense (c)
|
|
—
|
|
|
9
|
|
|
5
|
|
|
26
|
|
|
40
|
|
|
|
1
|
|
|
12
|
|
|
4
|
|
|
45
|
|
|
62
|
|
Adjustments to
include 100% of Baluma S.A.'s adjusted EBITDA
(d)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
Other items
(e)
|
|
—
|
|
|
7
|
|
|
1
|
|
|
48
|
|
|
56
|
|
|
|
4
|
|
|
13
|
|
|
13
|
|
|
20
|
|
|
50
|
|
Adjusted
EBITDA
|
|
$
|
—
|
|
|
$
|
670
|
|
|
$
|
416
|
|
|
$
|
(16)
|
|
|
$
|
1,070
|
|
|
|
$
|
34
|
|
|
$
|
650
|
|
|
$
|
348
|
|
|
$
|
(13)
|
|
|
$
|
1,019
|
|
____________
|
(a)
|
Amounts during
2016 primarily represent CEC's estimated costs in connection with
the restructuring of CEOC. Amounts during 2015 primarily represent
CEC's gain recognized upon the deconsolidation of
CEOC.
|
(b)
|
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.
|
(c)
|
Amounts represent
stock-based compensation expense related to shares, stock options,
and restricted stock units granted to the Company's
employees.
|
(d)
|
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.
|
(e)
|
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.
|
(f)
|
CGP is comprised
of all subsidiaries of CGP, including CIE.
|
(g)
|
Amounts include
consolidating adjustments, eliminating adjustments and other
adjustments to reconcile to consolidated CEC Property EBITDA and
Adjusted EBITDA.
|
Source: Caesars Entertainment Corporation; (CZR)
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/caesars-entertainment-reports-fourth-quarter-and-full-year-2016-results-300407372.html
SOURCE Caesars Entertainment Corporation