Caesars Entertainment Reports First Quarter of 2013 Results
(Logo: http://photos.prnewswire.com/prnh/20120607/LA21221LOGO)
Financial Highlights
- Decline in first-quarter 2013 revenues from strong 2012 first quarter due to reduced visitation
Caesars Growth Partners announced to strengthen balance sheet, fund growth projectsNobu Hotel atCaesars Palace and Horseshoe Cincinnati open to large crowds
The table below highlights certain GAAP and non-GAAP financial measures:
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions, except per share data) |
2013 |
2012 |
||||||||
Net revenues |
$ |
2,143.2 |
$ |
2,206.1 |
(2.9)% |
|||||
Income from operations (1) |
141.8 |
61.3 |
131.3% |
|||||||
Loss from continuing operations, net of income taxes |
(175.7) |
(288.4) |
39.1% |
|||||||
(Loss)/income from discontinued operations, net of income taxes |
(41.0) |
7.3 |
* |
|||||||
Net loss attributable to Caesars |
(217.6) |
(280.6) |
22.5% |
|||||||
Basic and diluted loss per share (2) |
(1.74) |
(2.24) |
22.3% |
|||||||
Property EBITDA (3) |
487.4 |
556.6 |
(12.4)% |
|||||||
Adjusted EBITDA (4) |
469.7 |
520.7 |
(9.8)% |
Net revenues, income from operations, and loss from continuing operations, net of income taxes for all periods presented in the table above exclude the results of the Harrah's
See footnotes following
___________________
* Not meaningful.
Management Commentary
"During the first quarter, we made significant progress in expanding and upgrading our existing facilities, particularly in
"On the other hand,
"In concert with
"Last month, we announced that our board of directors has approved the material terms of a transaction including the formation of
Financial Results
Net revenues decreased
Revenues dropped most significantly in the
Revenues for the Company's Managed properties increased
First quarter 2013 income from operations increased
- a first quarter 2012 property tax refund of approximately
$10 million that did not recur in 2013, - a first quarter 2012 benefit from the receipt of business interruption insurance proceeds of approximately
$7 million that did not recur in 2013, - an approximately
$6 million to$8 million decrease in first quarter 2013 operating income due to the continuing construction activity for Project Linq, and - a
$52.4 million charge for a contingent earnout liability recorded during the first quarter 2013 related to CIE's acquisition of Buffalo's assets.
Aside from these items affecting comparability, income from operations increased slightly due mainly to a first quarter 2013 benefit from decreases in certain costs when compared to the prior year quarter, including a
Net loss attributable to Caesars decreased
The declines in first quarter 2013 Property EBITDA and Adjusted EBITDA from 2012 are primarily driven by the factors described above. Further details on these non-GAAP financial measures are found later in this release.
Results by Region
To provide more meaningful information than would be possible on either a consolidated basis or an individual property basis, the Company's casino properties and other operations have been grouped into seven regions. Operating results for each of the regions are provided below.
On a consolidated basis, first-quarter cash average daily room rates for 2013 remained flat from 2012 as lower rates caused by reduced business in
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions) |
2013 |
2012 |
||||||||
Net revenues |
$ |
751.7 |
$ |
771.6 |
(2.6)% |
|||||
Income from operations |
104.3 |
120.1 |
(13.2)% |
|||||||
Property EBITDA (3) |
197.9 |
211.3 |
(6.3)% |
Net revenues decreased
Casino revenues were down
Food and Beverage revenues increased
Hotel revenues were down
Overall, property operating expenses in the region declined as a result of decreases in costs attributable to the Company's cost savings initiatives which were partially offset by an increase in bad debt expense and increases in variable costs associated with higher Food and Beverage revenue. Depreciation expense in the region decreased as a result of assets becoming fully depreciated, while write-downs, reserves, and project opening costs, net of recoveries increased as a result of additional remediation costs in 2013 when compared with 2012.
Property EBITDA declined
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions) |
2013 |
2012 |
||||||||
Net revenues |
$ |
365.3 |
$ |
432.5 |
(15.5)% |
|||||
(Loss)/income from operations |
(3.2) |
18.8 |
* |
|||||||
Property EBITDA (3) |
51.2 |
69.9 |
(26.8)% |
* Not meaningful.
The
However, property operating expenses in 2013 were also lower than in 2012 as a result of significant decreases in costs attributable to the Company's cost savings initiatives and more efficient marketing spending, partially offset by an increase in write-downs, reserves and project opening costs, net of recoveries. The 2012 quarter income from operations also included approximately
The above factors contributed to the decrease in Property EBITDA of
The Company expects that the region will continue to be challenged as a result of the slow recovery from the hurricane and competitive pressures. In response, the Company will continue focus on controlling costs to align the cost structure with lower revenue levels.
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions) |
2013 |
2012 |
||||||||
Net revenues |
$ |
278.9 |
$ |
303.4 |
(8.1)% |
|||||
Income/(loss) from operations |
44.3 |
(121.0) |
* |
|||||||
Property EBITDA (3) |
67.1 |
77.1 |
(13.0)% |
* Not meaningful.
Casino revenues declined significantly during the first quarter 2013 as compared to the same quarter in 2012 due to the weakening in consumer sentiment, contributing to declines in visitation to the region's properties. Additionally, in the first quarter 2012, the region benefited from the receipt of business interruption insurance proceeds of
Property operating expenses in 2013 were lower than in 2012 as a result of decreases in variable costs associated with lower revenues and cost decreases attributable to the Company's cost savings initiatives. In the first quarter 2012, the Company recorded
Lower revenues, partially offset by lower property operating expenses, resulted in a decrease in Property EBITDA of
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions) |
2013 |
2012 |
||||||||
Net revenues |
$ |
110.5 |
$ |
118.7 |
(6.9)% |
|||||
Income from operations |
29.4 |
27.6 |
6.5% |
|||||||
Property EBITDA (3) |
36.7 |
35.0 |
4.9% |
The Company experienced lower visitation to the region's properties in the first quarter of 2013 as compared to the prior year period, likely attributable to weakness in consumer sentiment combined with favorable weather conditions in the prior year quarter. The decline in visitation was primarily concentrated in certain lower value guest segments. As a result, casino revenues declined
Property operating expenses in 2013 were lower than in 2012 as a result of significant decreases in costs attributable to the Company's cost savings initiatives and more efficient marketing spending. These decreases more than offset the income impact of revenue declines resulting in an increase in income from operations, and Property EBITDA.
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions) |
2013 |
2012 |
||||||||
Net revenues |
$ |
260.5 |
$ |
273.1 |
(4.6)% |
|||||
Income from operations |
22.4 |
38.2 |
(41.4)% |
|||||||
Property EBITDA (3) |
60.7 |
57.7 |
5.2% |
The Company experienced lower visitation to the region's properties in the first quarter of 2013 as compared to the prior year period, likely attributable to weakness in consumer sentiment combined with favorable weather in the prior year quarter. The decline in visitation was primarily concentrated in certain lower value guest segments. As a result, casino revenues declined
Property operating expenses in 2013 were lower than in 2012 as a result of decreases in costs attributable to the Company's cost savings initiatives and more efficient marketing spending. In addition, the Company recorded a non-cash intangible asset impairment charge related to gaming rights of
The decline in property operating expenses more than offset the decline in revenues, resulting in an increase in Property EBITDA of
Other
Other
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions) |
2013 |
2012 |
||||||||
Net revenues |
$ |
99.4 |
$ |
100.7 |
(1.3)% |
|||||
Income from operations |
5.2 |
5.7 |
(8.8)% |
|||||||
Property EBITDA (3) |
13.6 |
16.8 |
(19.0)% |
Net revenues in the region were slightly lower in the first quarter 2013 compared with 2012. Income from operations and Property EBITDA decreased as a result of lower revenues combined with an increase in property operating expenses. Also impacting income from operations, but not Property EBITDA, is a decline in depreciation expense as a result of assets becoming fully depreciated.
Managed, International and Other
The Managed region includes companies that operate three Indian-owned casinos, as well as Horseshoe Cleveland, Horseshoe Cincinnati (which opened in
In the fourth quarter 2012, the Company began discussions with interested parties with respect to a sale of the subsidiaries that hold the Company's land concession in
On
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions) |
2013 |
2012 |
||||||||
Net revenues |
||||||||||
Managed |
$ |
71.7 |
$ |
11.0 |
551.8% |
|||||
International |
124.2 |
130.4 |
(4.8)% |
|||||||
Other |
81.0 |
64.7 |
25.2% |
|||||||
Total net revenues |
$ |
276.9 |
$ |
206.1 |
34.4% |
|||||
(Loss)/income from operations |
||||||||||
Managed |
$ |
4.6 |
$ |
2.0 |
130.0% |
|||||
International |
21.7 |
21.8 |
(0.5)% |
|||||||
Other |
(86.9) |
(51.9) |
(67.4)% |
|||||||
Total loss from operations |
$ |
(60.6) |
$ |
(28.1) |
(115.7)% |
Managed
Revenues for the Company's Managed properties increased
International
Visitation to the
Other
In late 2012, CIE acquired substantially all of the assets of Buffalo, a social media and mobile games developer and owner of Bingo Blitz, a social and mobile bingo game. This acquisition, combined with the continued strength in CIE's social and mobile games business drove most of the
Other Items
Interest Expense, Net of Interest Capitalized
Interest expense, net of interest capitalized, increased by
(Loss)/Gain on Early Extinguishments of Debt
During the first quarter of 2013, the Company recognized a loss on early extinguishments of debt of
Benefit for Income Taxes
The effective tax rate benefit for the first quarter of 2013 and 2012 was 62.3% and 35.4%, respectively. The effective rate benefit in the first quarter of 2013 was primarily impacted by a discrete tax benefit from a capital loss resulting from a tax election made for U.S. federal income tax purposes during the quarter but effective at the end of December 2012. In addition, the rate was favorably impacted by (i) retroactive U.S. tax law changes which were enacted in
(Loss)/Income from Discontinued Operations, Net of Income Taxes
Loss from discontinued operations, net of income taxes in the first quarter 2013 was
Cost-Savings Initiatives
As a substantial portion of the debt of
Quarter Ended |
Percent Favorable/ (Unfavorable) | |||||||||
(Dollars in millions) |
2013 |
2012 |
||||||||
Net revenues |
$ |
1,617.9 |
$ |
1,676.0 |
(3.5)% |
|||||
Income from operations (1) |
150.0 |
10.2 |
* |
|||||||
Loss from continuing operations, net of income taxes |
(167.3) |
(336.9) |
50.3%
|
|||||||
(Loss)/income from discontinued operations, net of income taxes |
(41.0) |
7.3 |
* |
|||||||
Net loss attributable to CEOC |
(210.8) |
(328.9) |
35.9%
|
|||||||
Property EBITDA (3) |
373.3 |
437.8 |
(14.7)% |
|||||||
Adjusted EBITDA (4) |
350.2 |
401.1 |
(12.7)% |
Net revenues, income from operations, and loss from continuing operations, net of income taxes for all periods presented in the table above exclude the results of the Harrah's
___________________
* Not meaningful.
(1) |
Income from operations for both Caesars and CEOC for the first quarter of 2013 and 2012 includes intangible and tangible asset impairment charges of |
(2) |
Basic and diluted loss per share for Caesars for the periods shown includes loss per share from discontinued operations in the first quarter of 2013 of |
(3) |
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. |
(4) |
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. Adjusted EBITDA does not include the pro forma effect of adjustments related to properties and yet-to-be-realized cost savings from the Company's profitability improvement programs. |
If you would like to ask questions and be an active participant in the call, you may dial 877-637-3676, or 832-412-1752 for international callers, and enter Conference ID 42726371 approximately 10 minutes before the call start time. A recording of the live call will be available on the Company's web site for 90 days after the event.
*****
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. These statements contain words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue," "pursue," 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, 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, as well as other factors described from time to time in the Company's reports filed with the
- the impact of the Company's substantial indebtedness and the restrictions in the Company's 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 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 cost savings programs;
- changes in the extensive governmental regulations to which the Company and its stockholders are subject, and 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;
- the ability of the Company's customer-tracking, customer loyalty, and yield-management programs to continue to increase customer loyalty and same-store or hotel sales;
- the effects of competition, including locations of competitors and operating and market competition;
- the 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 ability to timely and cost-effectively integrate companies that the Company acquires into its operations;
- the potential difficulties in employee retention and recruitment as a result of the Company's 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, including losses in revenues and damage to property, and the impact of severe weather conditions on the Company's ability to attract customers to certain of its facilities, such as the amount of losses and disruption to the Company as a result of Hurricane Sandy in late
October 2012 ; - the effects of environmental and structural building conditions relating to the Company's properties;
- access to insurance on reasonable terms for the Company's assets;
- 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.
CONSOLIDATED SUMMARY OF OPERATIONS (UNAUDITED)
| |||||||
Quarter Ended | |||||||
(In millions, except per share data) |
2013 |
2012 | |||||
Net revenues |
$ |
2,143.2 |
$ |
2,206.1 |
|||
Property operating expenses |
(1,654.7) |
(1,672.5) |
|||||
Depreciation and amortization |
(161.7) |
(179.5) |
|||||
Write-downs, reserves, and project opening costs, net of recoveries |
(20.7) |
(16.2) |
|||||
Intangible and tangible asset impairment charges |
(20.0) |
(174.0) |
|||||
Loss on interests in non-consolidated affiliates |
(2.6) |
(7.1) |
|||||
Corporate expense |
(36.1) |
(52.2) |
|||||
Acquisition and integration costs |
(64.2) |
(0.1) |
|||||
Amortization of intangible assets |
(41.4) |
(43.2) |
|||||
Income from operations |
141.8 |
61.3 |
|||||
Interest expense, net of interest capitalized |
(574.7) |
(562.0) |
|||||
(Loss)/gain on early extinguishments of debt |
(36.7) |
45.8 |
|||||
Other income, including interest income |
3.7 |
8.2 |
|||||
Loss from continuing operations before income taxes |
(465.9) |
(446.7) |
|||||
Benefit for income taxes |
290.2 |
158.3 |
|||||
Loss from continuing operations, net of income taxes |
(175.7) |
(288.4) |
|||||
Discontinued operations |
|||||||
(Loss)/income from discontinued operations |
(43.8) |
14.2 |
|||||
Benefit/(provision) for income taxes |
2.8 |
(6.9) |
|||||
(Loss)/income from discontinued operations, net of income taxes |
(41.0) |
7.3 |
|||||
Net loss |
(216.7) |
(281.1) |
|||||
Less: net (income)/loss attributable to non-controlling interests |
(0.9) |
0.5 |
|||||
Net loss attributable to Caesars |
$ |
(217.6) |
$ |
(280.6) |
|||
(Loss)/earnings per share - basic and diluted |
|||||||
Loss per share from continuing operations |
$ |
(1.41) |
$ |
(2.30) |
|||
(Loss)/earnings per share from discontinued operations |
(0.33) |
0.06 |
|||||
Net loss per share |
$ |
(1.74) |
$ |
(2.24) |
CONSOLIDATED SUMMARY BALANCE SHEETS (UNAUDITED)
| |||||||
As of | |||||||
(In millions) |
March 31, 2013 |
December 31, 2012 | |||||
Assets |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
2,095.4 |
$ |
1,757.5 |
|||
Restricted Cash (a) |
70.6 |
833.6 |
|||||
Assets held for sale (b) |
5.2 |
5.1 |
|||||
Other current assets |
959.9 |
897.4 |
|||||
Total current assets |
3,131.1 |
3,493.6 |
|||||
Property and equipment, net |
15,676.2 |
15,701.7 |
|||||
Goodwill and other intangible assets |
7,087.7 |
7,146.0 |
|||||
Restricted cash |
295.9 |
364.6 |
|||||
Assets held for sale (b) |
442.6 |
471.2 |
|||||
Other long-term assets |
841.5 |
821.0 |
|||||
$ |
27,475.0 |
$ |
27,998.1 |
||||
Liabilities and Stockholders' Deficit |
|||||||
Current liabilities |
|||||||
Current portion of long-term debt (a) |
$ |
143.0 |
$ |
879.9 |
|||
Liabilities held for sale (b) |
3.5 |
3.8 |
|||||
Other current liabilities |
1,757.5 |
1,704.6 |
|||||
Total current liabilities |
1,904.0 |
2,588.3 |
|||||
Long-term debt |
21,134.1 |
20,532.2 |
|||||
Liabilities held for sale (b) |
49.7 |
52.1 |
|||||
Other long-term liabilities |
4,947.2 |
5,157.1 |
|||||
28,035.0 |
28,329.7 |
||||||
Total Caesars stockholders' deficit |
(637.1) |
(411.7) |
|||||
Non-controlling interests |
77.1 |
80.1 |
|||||
Total deficit |
(560.0) |
(331.6) |
|||||
$ |
27,475.0 |
$ |
27,998.1 |
(a) |
The balance of restricted cash at December 31, 2012 includes |
(b) |
The balances at March 31, 2013 and December 31, 2012 relate to the subsidiaries that hold the Company's land concession in |
|
SUPPLEMENTAL INFORMATION |
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION |
TO PROPERTY EBITDA |
(UNAUDITED) |
Property 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 the Company's 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. |
The following tables reconcile net loss attributable to Caesars to Property EBITDA for the periods indicated. |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(In millions) |
Las Vegas Region |
Atlantic City Region |
Region |
Region |
Region |
Other Region |
Managed, Int'l and Other |
Discontinued Operations |
Total | ||||||||||||||||||||||||||
Net loss attributable to Caesars |
$ |
(217.6) |
|||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests |
0.9 |
||||||||||||||||||||||||||||||||||
Net loss |
(216.7) |
||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes |
41.0 |
||||||||||||||||||||||||||||||||||
Net loss from continuing operations, net of income taxes |
(175.7) |
||||||||||||||||||||||||||||||||||
Benefit for income taxes |
(290.2) |
||||||||||||||||||||||||||||||||||
Loss from continuing operations before income taxes |
(465.9) |
||||||||||||||||||||||||||||||||||
Other income, including interest income |
(3.7) |
||||||||||||||||||||||||||||||||||
Loss on early extinguishments of debt |
36.7 |
||||||||||||||||||||||||||||||||||
Interest expense, net of interest capitalized |
574.7 |
||||||||||||||||||||||||||||||||||
Income/(loss) from operations |
$ |
104.3 |
$ |
(3.2) |
$ |
44.3 |
$ |
29.4 |
$ |
22.4 |
$ |
5.2 |
$ |
(60.6) |
141.8 |
||||||||||||||||||||
Depreciation and amortization |
61.5 |
42.4 |
17.1 |
7.3 |
18.1 |
4.9 |
10.4 |
161.7 |
|||||||||||||||||||||||||||
Amortization of intangible assets |
19.0 |
4.0 |
5.5 |
— |
0.3 |
3.5 |
9.1 |
41.4 |
|||||||||||||||||||||||||||
Intangible and tangible asset impairment charges |
— |
— |
— |
— |
20.0 |
— |
— |
20.0 |
|||||||||||||||||||||||||||
Write-downs, reserves, and project opening costs, net of recoveries |
13.6 |
8.0 |
0.4 |
— |
— |
— |
(1.3) |
20.7 |
|||||||||||||||||||||||||||
Acquisition and integration costs |
— |
— |
— |
— |
— |
— |
64.2 |
64.2 |
|||||||||||||||||||||||||||
(Income)/loss on interests in non-consolidated affiliates |
(0.5) |
— |
(0.2) |
— |
— |
— |
3.3 |
2.6 |
|||||||||||||||||||||||||||
Corporate expense |
— |
— |
— |
— |
— |
— |
36.1 |
36.1 |
|||||||||||||||||||||||||||
EBITDA attributable to discontinued operations |
$ |
(1.1) |
(1.1) |
||||||||||||||||||||||||||||||||
Property EBITDA |
$ |
197.9 |
$ |
51.2 |
$ |
67.1 |
$ |
36.7 |
$ |
60.7 |
$ |
13.6 |
$ |
61.3 |
$ |
(1.1) |
$ |
487.4 |
SUPPLEMENTAL INFORMATION RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO PROPERTY EBITDA (UNAUDITED)
| |||||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||||
(In millions) |
Las Vegas Region |
Atlantic City Region |
Region |
Region |
Region |
Other Region |
Managed, Int'l and Other |
Discontinued Operations |
Total | ||||||||||||||||||||||||||
Net loss attributable to Caesars |
$ |
(280.6) |
|||||||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests |
(0.5) |
||||||||||||||||||||||||||||||||||
Net loss |
(281.1) |
||||||||||||||||||||||||||||||||||
Income from discontinued operations, net of income taxes |
(7.3) |
||||||||||||||||||||||||||||||||||
Net loss from continuing operations, net of income taxes |
(288.4) |
||||||||||||||||||||||||||||||||||
Benefit for income taxes |
(158.3) |
||||||||||||||||||||||||||||||||||
Loss from continuing operations before income taxes |
(446.7) |
||||||||||||||||||||||||||||||||||
Other income, including interest income |
(8.2) |
||||||||||||||||||||||||||||||||||
Gains on early extinguishments of debt |
(45.8) |
||||||||||||||||||||||||||||||||||
Interest expense, net of interest capitalized |
562.0 |
||||||||||||||||||||||||||||||||||
Income/(loss) from operations |
$ |
120.1 |
$ |
18.8 |
$ |
(121.0) |
$ |
27.6 |
$ |
38.2 |
$ |
5.7 |
$ |
(28.1) |
61.3 |
||||||||||||||||||||
Depreciation and amortization |
69.3 |
44.6 |
18.7 |
7.4 |
18.9 |
7.1 |
13.5 |
179.5 |
|||||||||||||||||||||||||||
Amortization of intangible assets |
19.0 |
4.0 |
5.5 |
— |
0.3 |
3.5 |
10.9 |
43.2 |
|||||||||||||||||||||||||||
Intangible and tangible asset impairment charges |
— |
— |
167.5 |
— |
— |
— |
6.5 |
174.0 |
|||||||||||||||||||||||||||
Write-downs, reserves, and project opening costs, net of recoveries |
3.6 |
1.9 |
6.4 |
— |
0.3 |
0.6 |
3.4 |
16.2 |
|||||||||||||||||||||||||||
Acquisition and integration costs |
— |
— |
— |
— |
— |
— |
0.1 |
0.1 |
|||||||||||||||||||||||||||
(Income)/loss on interests in non-consolidated affiliates |
(0.8) |
0.6 |
(0.1) |
— |
— |
— |
7.4 |
7.1 |
|||||||||||||||||||||||||||
Corporate expense |
— |
— |
— |
— |
— |
— |
52.2 |
52.2 |
|||||||||||||||||||||||||||
EBITDA attributable to discontinued operations |
$ |
23.0 |
23.0 |
||||||||||||||||||||||||||||||||
Property EBITDA |
$ |
211.3 |
$ |
69.9 |
$ |
77.1 |
$ |
35.0 |
$ |
57.7 |
$ |
16.8 |
$ |
65.8 |
$ |
23.0 |
$ |
556.6 |
CAESARS ENTERTAINMENT CORPORATION SUPPLEMENTAL INFORMATION |
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDA AND LTM ADJUSTED EBITDA-PRO FORMA |
(UNAUDITED) |
Adjusted EBITDA is defined as earnings before interest expense, income taxes, and depreciation and amortization ("EBITDA") further adjusted to exclude certain non-cash and other items required or permitted in calculating covenant compliance under the indenture governing CEOC's secured credit facilities. |
Last twelve months ("LTM") Adjusted EBITDA-Pro Forma is defined as Adjusted EBITDA further adjusted to include pro forma adjustments related to properties and estimated cost savings yet-to-be-realized. |
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma are presented as supplemental measures of the Company's performance and management believes that Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma provide investors with additional information and allow 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 and LTM Adjusted EBITDA-Pro Forma may not be comparable to other similarly titled measures of other companies. |
The following table reconciles net loss attributable to Caesars to Adjusted EBITDA for the quarters ended March 31, 2013 and 2012 and for the year ended December 31, 2012, and reconciles net loss attributable to Caesars to LTM Adjusted EBITDA-Pro Forma for the last twelve months ended March 31, 2013. |
(1) |
(2) |
(3) |
|||||||||||||
(In millions) |
Quarter Ended |
Quarter Ended |
Year Ended |
(1)-(2)+(3) LTM | |||||||||||
Net loss attributable to Caesars |
$ |
(217.6) |
$ |
(280.6) |
$ |
(1,497.5) |
$ |
(1,434.5) |
|||||||
Interest expense, net of interest capitalized and interest income |
571.5 |
554.9 |
2,079.2 |
2,095.8 |
|||||||||||
Benefit for income taxes (a) |
(293.0) |
(151.4) |
(820.4) |
(962.0) |
|||||||||||
Depreciation and amortization (b) |
206.6 |
234.6 |
931.1 |
903.1 |
|||||||||||
EBITDA |
267.5 |
357.5 |
692.4 |
602.4 |
|||||||||||
Project opening costs, abandoned projects and development costs (c) |
19.3 |
7.9 |
71.7 |
83.1 |
|||||||||||
Acquisition and integration costs (d) |
64.2 |
0.1 |
6.1 |
70.2 |
|||||||||||
Loss/(gain) on early extinguishments of debt (e) |
36.7 |
(45.8) |
(136.0) |
(53.5) |
|||||||||||
Net income/(loss) attributable to non-controlling interests, net of (distributions) (f) |
(1.1) |
(2.0) |
(3.3) |
(2.4) |
|||||||||||
Impairments of intangible and tangible assets (g) |
46.7 |
174.0 |
1,168.7 |
1,041.4 |
|||||||||||
Non-cash expense for stock compensation benefits (h) |
3.6 |
11.5 |
55.1 |
47.2 |
|||||||||||
Adjustments for recoveries from insurance claims for flood losses(i) |
— |
(6.6) |
(6.6) |
— |
|||||||||||
Gain on sale of discontinued operations (j) |
0.7 |
— |
(9.3) |
(8.6) |
|||||||||||
Other items(k) |
32.1 |
24.1 |
98.9 |
106.9 |
|||||||||||
Adjusted EBITDA |
$ |
469.7 |
$ |
520.7 |
$ |
1,937.7 |
1,886.7 |
||||||||
Proforma adjustments related to properties (l) |
0.4 |
||||||||||||||
Pro forma adjustment for estimated cost savings yet-to-be-realized (m) |
154.9 |
||||||||||||||
Pro forma adjustments for discontinued operations (n) |
(33.2) |
||||||||||||||
LTM Adjusted EBITDA-Pro Forma |
$ |
2,008.8 |
(a) |
Amounts include a benefit for income taxes related to discontinued operations of |
(b) |
Amounts include depreciation and amortization related to discontinued operations of |
(c) |
Amounts represent pre-opening costs incurred in connection with new property openings and expansion projects at existing properties, as well as any non-cash write-offs of abandoned development projects. Amounts include write-offs related to the closure of Alea Leeds in |
(d) |
Amounts include certain costs associated with acquisition and development activities and reorganization activities which are infrequently occurring costs. |
(e) |
Amounts represent the difference between the fair value of consideration paid and the book value, net of deferred financing costs, of debt retired through debt extinguishment transactions, which are capital structure-related, rather than operational-type costs. |
(f) |
Amounts represent minority owners' share of income/(loss) from the Company's majority-owned consolidated subsidiaries, net of cash distributions to minority owners, which is a non-cash item as it excludes any cash distributions. |
(g) |
Amounts represent non-cash charges to impair intangible and tangible assets primarily resulting from changes in the business outlook in light of economic conditions. Amounts include impairment charges related to discontinued operations of |
(h) |
Amounts represent non-cash stock-based compensation expense related to stock options and restricted stock granted to the Company's employees. |
(i) |
Amounts represent adjustments for insurance claims related to lost profits during the floods that occurred in 2011. |
(j) |
Amount represents the gain recognized on the sale of the Harrah's |
(k) |
Amounts represent add-backs and deductions from EBITDA, whether permitted and/or required under the indentures governing CEOC's existing notes and the credit agreement governing CEOC's senior secured credit facilities, included in arriving at LTM Adjusted EBITDA-Pro Forma but not separately identified. Such add-backs and deductions include litigation awards and settlements, severance and relocation costs, permit remediation costs, gains and losses from disposals of assets, costs incurred in connection with implementing the Company's efficiency and cost-saving programs, the Company's insurance policy deductibles incurred as a result of catastrophic events such as floods and hurricanes, and non-cash equity in earnings of non-consolidated affiliates (net of distributions). |
(l) |
Amounts represent the estimated annualized impact of operating results related to newly completed construction projects, combined with the estimated annualized EBITDA impact associated with properties acquired during the period. |
(m) |
Amount represents adjustments to reflect the impact of annualized run-rate cost savings and anticipated future cost savings to be realized from the Company's announced Project Renewal and other profitability improvement and cost-savings programs. |
(n) |
Per CEOC's senior secured credit facilities, EBITDA related to the Company's discontinued operations are deducted from LTM Adjusted EBITDA - Pro Forma. |
The following tables present the Consolidated Summary of Operations and Supplemental Information for
CONSOLIDATED SUMMARY OF OPERATIONS (UNAUDITED)
| |||||||
Quarter Ended | |||||||
(In millions) |
2013 |
2012 | |||||
Net revenues |
$ |
1,617.9 |
$ |
1,676.0 |
|||
Property operating expenses |
(1,243.5) |
(1,261.2) |
|||||
Depreciation and amortization |
(127.2) |
(140.4) |
|||||
Write-downs, reserves, and project opening costs, net of recoveries |
(7.3) |
(14.2) |
|||||
Intangible and tangible asset impairment charges |
(20.0) |
(174.0) |
|||||
Loss on interests in non-consolidated affiliates |
(3.0) |
(7.6) |
|||||
Corporate expense |
(32.1) |
(44.3) |
|||||
Acquisition and integration costs |
(11.8) |
— |
|||||
Amortization of intangible assets |
(23.0) |
(24.1) |
|||||
Income from operations |
150.0 |
10.2 |
|||||
Interest expense, net of interest capitalized |
(553.5) |
(538.5) |
|||||
Loss on early extinguishments of debt |
(36.7) |
— |
|||||
Other income, including interest income |
3.8 |
7.7 |
|||||
Loss from continuing operations before income taxes |
(436.4) |
(520.6) |
|||||
Benefit for income taxes |
269.1 |
183.7 |
|||||
Loss from continuing operations, net of income taxes |
(167.3) |
(336.9) |
|||||
Discontinued operations |
|||||||
(Loss)/income from discontinued operations |
(43.8) |
14.2 |
|||||
Benefit/(provision) for income taxes |
2.8 |
(6.9) |
|||||
(Loss)/income from discontinued operations, net of income taxes |
(41.0) |
7.3 |
|||||
Net loss |
(208.3) |
(329.6) |
|||||
Less: net (income)/loss attributable to non-controlling interests |
(2.5) |
0.7 |
|||||
Net loss attributable to CEOC |
$ |
(210.8) |
$ |
(328.9) |
|
SUPPLEMENTAL INFORMATION |
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT |
OPERATING COMPANY, INC. TO PROPERTY EBITDA |
(UNAUDITED) |
Property EBITDA is presented as a supplemental measure of CEOC'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 CEOC's ongoing operating performance at an operating property level. In evaluating Property EBITDA you should be aware that in the future, CEOC 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 CEOC's future results will be unaffected by unusual or unexpected items. |
Property EBITDA is a non-GAAP financial measure commonly used in the Company's 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 presented 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. |
The following tables reconcile net loss attributable to CEOC to Property EBITDA for the periods indicated. |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(In millions) |
Las Vegas Region |
Atlantic City Region |
Region |
Region |
Region |
Other Region |
Managed, Int'l and Other |
Discontinued Operations |
Total | ||||||||||||||||||||||||||
Net loss attributable to CEOC |
$ |
(210.8) |
|||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests |
2.5 |
||||||||||||||||||||||||||||||||||
Net loss |
(208.3) |
||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes |
41.0 |
||||||||||||||||||||||||||||||||||
Net loss from continuing operations, net of income taxes |
(167.3) |
||||||||||||||||||||||||||||||||||
Benefit for income taxes |
(269.1) |
||||||||||||||||||||||||||||||||||
Loss from continuing operations before income taxes |
(436.4) |
||||||||||||||||||||||||||||||||||
Other income, including interest income |
(3.8) |
||||||||||||||||||||||||||||||||||
Loss on early extinguishments of debt |
36.7 |
||||||||||||||||||||||||||||||||||
Interest expense, net of interest capitalized |
553.5 |
||||||||||||||||||||||||||||||||||
Income/(loss) from operations |
$ |
50.7 |
$ |
(3.2) |
$ |
44.3 |
$ |
29.4 |
$ |
22.4 |
$ |
(0.7) |
$ |
7.1 |
150.0 |
||||||||||||||||||||
Depreciation and amortization |
40.8 |
30.2 |
17.1 |
7.3 |
18.1 |
3.6 |
10.1 |
127.2 |
|||||||||||||||||||||||||||
Amortization of intangible assets |
8.2 |
3.0 |
5.5 |
— |
0.3 |
0.5 |
5.5 |
23.0 |
|||||||||||||||||||||||||||
Intangible and tangible asset impairment charges |
— |
— |
— |
— |
20.0 |
— |
— |
20.0 |
|||||||||||||||||||||||||||
Write-downs, reserves, and project opening costs, net of recoveries |
7.2 |
1.0 |
0.4 |
— |
— |
— |
(1.3) |
7.3 |
|||||||||||||||||||||||||||
Acquisition and integration costs |
— |
— |
— |
— |
— |
— |
11.8 |
11.8 |
|||||||||||||||||||||||||||
(Income)/loss on interests in non-consolidated affiliates |
— |
— |
(0.2) |
— |
— |
— |
3.2 |
3.0 |
|||||||||||||||||||||||||||
Corporate expense |
— |
— |
— |
— |
— |
— |
32.1 |
32.1 |
|||||||||||||||||||||||||||
EBITDA attributable to discontinued operations |
$ |
(1.1) |
(1.1) |
||||||||||||||||||||||||||||||||
Property EBITDA |
$ |
106.9 |
$ |
30.9 |
$ |
67.1 |
$ |
36.7 |
$ |
60.7 |
$ |
3.5 |
$ |
68.6 |
$ |
(1.1) |
$ |
373.3 |
SUPPLEMENTAL INFORMATION RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT OPERATING COMPANY, INC. TO PROPERTY EBITDA (UNAUDITED)
| |||||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||||
(In millions) |
Las Vegas Region |
Atlantic City Region |
Region |
Region |
Region |
Other Region |
Managed, Int'l and Other |
Discontinued Operations |
Total | ||||||||||||||||||||||||||
Net loss attributable to CEOC |
$ |
(328.9) |
|||||||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests |
(0.7) |
||||||||||||||||||||||||||||||||||
Net loss |
(329.6) |
||||||||||||||||||||||||||||||||||
Income from discontinued operations, net of income taxes |
(7.3) |
||||||||||||||||||||||||||||||||||
Net loss from continuing operations, net of income taxes |
(336.9) |
||||||||||||||||||||||||||||||||||
Benefit for income taxes |
(183.7) |
||||||||||||||||||||||||||||||||||
Loss from continuing operations before income taxes |
(520.6) |
||||||||||||||||||||||||||||||||||
Other income, including interest income |
(7.7) |
||||||||||||||||||||||||||||||||||
Interest expense, net of interest capitalized |
538.5 |
||||||||||||||||||||||||||||||||||
Income/(loss) from operations |
$ |
64.9 |
$ |
11.0 |
$ |
(121.0) |
$ |
27.6 |
$ |
38.2 |
$ |
(1.8) |
$ |
(8.7) |
10.2 |
||||||||||||||||||||
Depreciation and amortization |
44.7 |
31.9 |
18.7 |
7.4 |
18.9 |
5.4 |
13.4 |
140.4 |
|||||||||||||||||||||||||||
Amortization of intangible assets |
8.2 |
3.0 |
5.5 |
— |
0.3 |
0.5 |
6.6 |
24.1 |
|||||||||||||||||||||||||||
Intangible and tangible asset impairment charges |
— |
— |
167.5 |
— |
— |
— |
6.5 |
174.0 |
|||||||||||||||||||||||||||
Write-downs, reserves, and project opening costs, net of recoveries |
1.9 |
1.7 |
6.4 |
— |
0.3 |
0.6 |
3.3 |
14.2 |
|||||||||||||||||||||||||||
Acquisition and integration costs |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||
Loss/(income) on interests in non-consolidated affiliates |
— |
0.3 |
(0.1) |
— |
— |
— |
7.4 |
7.6 |
|||||||||||||||||||||||||||
Corporate expense |
— |
— |
— |
— |
— |
— |
44.3 |
44.3 |
|||||||||||||||||||||||||||
EBITDA attributable to discontinued operations |
$ |
23.0 |
23.0 |
||||||||||||||||||||||||||||||||
Property EBITDA |
$ |
119.7 |
$ |
47.8 |
$ |
77.1 |
$ |
35.0 |
$ |
57.7 |
$ |
4.7 |
$ |
72.8 |
$ |
23.0 |
$ |
437.8 |
|
SUPPLEMENTAL INFORMATION |
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT |
OPERATING COMPANY, INC. |
TO ADJUSTED EBITDA, LTM ADJUSTED EBITDA-PRO FORMA AND |
LTM ADJUSTED EBITDA-PRO FORMA - CEOC RESTRICTED |
(UNAUDITED) |
Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash and other items required or permitted in calculating covenant compliance under the indenture governing CEOC's the credit facility. |
LTM Adjusted EBITDA-Pro Forma is defined as Adjusted EBITDA further adjusted to include pro forma adjustments related to properties and estimated cost savings yet-to-be-realized. |
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma are presented as supplemental measures of CEOC's performance and management believes that Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma provide investors with additional information and allow a better understanding of the results of operational activities separate from the financial impact of decisions made for the long-term benefit of CEOC. |
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma 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. The reconciliation of net loss attributable to CEOC to LTM Adjusted EBITDA-Pro Forma on the following page includes an additional calculation to exclude the LTM Adjusted EBITDA-Pro Forma of the unrestricted subsidiaries of CEOC resulting in an amount used to determine compliance with debt covenants ("LTM Adjusted EBITDA-Pro Forma - CEOC Restricted"). |
Because not all companies use identical calculations, the presentation of CEOC's Adjusted EBITDA, LTM Adjusted EBITDA-Pro Forma, and LTM Adjusted EBITDA-Pro Forma - CEOC Restricted may not be comparable to other similarly titled measures of other companies. |
The following table reconciles net loss attributable to CEOC to Adjusted EBITDA for the quarters ended March 31, 2013 and 2012 and for the year ended December 31, 2012, and reconciles net loss attributable to CEOC to LTM Adjusted EBITDA-Pro Forma, and LTM Adjusted EBITDA-Pro Forma - CEOC Restricted for the last twelve months ended March 31, 2013. |
(1) |
(2) |
(3) |
|||||||||||||
(In millions) |
Quarter Ended March 31, 2013 |
Quarter Ended |
Year Ended |
(1)-(2)+(3) LTM | |||||||||||
Net loss attributable to CEOC |
$ |
(210.8) |
$ |
(328.9) |
$ |
(1,627.4) |
$ |
(1,509.3) |
|||||||
Interest expense, net of capitalized interest and interest income |
550.0 |
531.8 |
1,995.7 |
2,013.9 |
|||||||||||
Benefit for income taxes (a) |
(271.9) |
(176.8) |
(884.5) |
(979.6) |
|||||||||||
Depreciation and amortization (b) |
153.7 |
176.3 |
701.7 |
679.1 |
|||||||||||
EBITDA |
221.0 |
202.4 |
185.5 |
204.1 |
|||||||||||
Project opening costs, abandoned projects and development costs (c) |
19.2 |
7.9 |
55.9 |
67.2 |
|||||||||||
Acquisition and integration costs (d) |
11.8 |
— |
5.8 |
17.6 |
|||||||||||
Loss on early extinguishments of debt (e) |
36.7 |
— |
— |
36.7 |
|||||||||||
Net income/(loss) attributable to non-controlling interests, net of (distributions) (f) |
0.5 |
(2.2) |
(4.2) |
(1.5) |
|||||||||||
Impairments of intangible and tangible assets (g) |
46.7 |
174.0 |
1,165.7 |
1,038.4 |
|||||||||||
Non-cash expense for stock compensation benefits (h) |
2.5 |
11.2 |
33.4 |
24.7 |
|||||||||||
Adjustments for recoveries from insurance claims for flood losses (i) |
— |
(6.6) |
(6.6) |
— |
|||||||||||
Gain on sale of discontinued operations (j) |
0.7 |
— |
(9.3) |
(8.6) |
|||||||||||
Other items (k) |
11.1 |
14.4 |
53.3 |
50.0 |
|||||||||||
Adjusted EBITDA |
$ |
350.2 |
$ |
401.1 |
$ |
1,479.5 |
1,428.6 |
||||||||
Proforma adjustments related to properties (l) |
0.4 |
||||||||||||||
Pro forma adjustment for estimated cost savings yet-to-be-realized (m) |
110.9 |
||||||||||||||
Pro forma adjustments for discontinued operations (n) |
(33.2) |
||||||||||||||
LTM Adjusted EBITDA-Pro Forma |
1,506.7 |
||||||||||||||
LTM Adjusted EBITDA-Pro forma of CEOC's unrestricted subsidiaries |
(103.9) |
||||||||||||||
LTM Adjusted EBITDA-Pro Forma - CEOC Restricted |
$ |
1,402.8 |
(a) |
Amounts include a benefit for income taxes related to discontinued operations of |
(b) |
Amounts include depreciation and amortization related to discontinued operations of |
(c) |
Amounts represent pre-opening costs incurred in connection with new property openings and expansion projects at existing properties, as well as any non-cash write-offs of abandoned development projects. Amounts include write-offs related to the closure of Alea Leeds in |
(d) |
Amounts include certain costs associated with acquisition and development activities and reorganization activities which are infrequently occurring costs. |
(e) |
Amounts represent the difference between the fair value of consideration paid and the book value, net of deferred financing costs, of debt retired through debt extinguishment transactions, which are capital structure-related, rather than operational-type costs. |
(f) |
Amounts represent minority owners' share of income/(loss) from CEOC's majority-owned consolidated subsidiaries, net of cash distributions to minority owners, which is a non-cash item as it excludes any cash distributions. |
(g) |
Amounts represent non-cash charges to impair intangible and tangible assets primarily resulting from changes in the business outlook in light of economic conditions. Amounts include impairment charges related to discontinued operations of |
(h) |
Amounts represent non-cash stock-based compensation expense related to stock options and restricted stock granted to CEOC's employees. |
(i) |
Amounts represent adjustments for insurance claims related to lost profits during the floods that occurred in 2011. |
(j) |
Amount represents the gain recognized on the sale of the Harrah's |
(k) |
Amounts represent add-backs and deductions from EBITDA, whether permitted and/or required under the indentures governing CEOC's existing notes and the credit agreement governing CEOC's senior secured credit facilities, included in arriving at LTM Adjusted EBITDA-Pro Forma - CEOC Restricted but not separately identified. Such add-backs and deductions include litigation awards and settlements, severance and relocation costs, permit remediation costs, gains and losses from disposals of assets, costs incurred in connection with implementing the Company's efficiency and cost-saving programs, CEOC's insurance policy deductibles incurred as a result of catastrophic events such as floods and hurricanes, and non-cash equity in earnings of non-consolidated affiliates (net of distributions). |
(l) |
Amounts represent the estimated annualized impact of operating results related to newly completed construction projects, combined with the estimated annualized EBITDA impact associated with properties acquired during the period. |
(m) |
Amount represents adjustments of CEOC to reflect the impact of annualized run-rate cost-savings and anticipated future cost savings to be realized from the Company's announced Project Renewal and other profitability improvement and cost savings programs. |
(n) |
Per CEOC's senior secured credit facilities, EBITDA related to the Company's discontinued operations are deducted from LTM Adjusted EBITDA - Pro Forma. |
SOURCE
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