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Press Releases

Feb 26, 2020

ELDORADO RESORTS REPORTS FOURTH QUARTER NET REVENUE OF $592.1 MILLION, OPERATING INCOME OF $58.9 MILLION, AND ADJUSTED EBITDA OF $154.4 MILLION

RENO, Nev.--(BUSINESS WIRE)-- Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado,” “ERI,” or “the Company”) today reported operating results for the fourth quarter ended December 31, 2019.

Fourth Quarter 2019 and Recent Highlights:

  • Net revenue of $592.1 million, a decrease of 11.9% on a GAAP basis and a decrease of 4.4% on a same-store basis versus the comparable prior-year period
  • Operating income of $58.9 million, a decrease of 32.1% on a GAAP basis and 32.2% on a same-store basis versus the comparable prior-year period, with a GAAP net loss of $13.2 million
  • Adjusted EBITDA on a same-store basis was $146.2 million up 0.4% versus the comparable prior-year period
  • Adjusted EBITDA margin rose 130 basis points on a same-store basis versus the comparable prior-year period
  • Full year 2019 Adjusted EBITDA margin rose 240 basis point to 28.0% on a same-store basis versus the comparable prior-year period
  • Closed on the divestiture of three assets during the quarter for gross proceeds of $385 million
  • Subsequent to quarter end, Eldorado entered into a definitive agreement to sell the Eldorado Shreveport Resort and Casino for $230 million in cash
  • Repaid $388 million of debt in fourth quarter and reduced debt in 2019 by more than $700 million

“Eldorado generated fourth quarter Adjusted EBITDA of $146.2 million on a same-store basis, up 0.4% year over year against a 22.0% comparable year-over-year Adjusted EBITDA growth rate in the fourth quarter of 2018. We achieved a 130 basis point year-over-year increase in our consolidated Adjusted EBITDA margin to 26.4% driven by our Central Region, which grew Adjusted EBITDA 11.5% and expanded Adjusted EBITDA margins by 370 basis points during the quarter,” said Tom Reeg, Chief Executive Officer of Eldorado Resorts.

“2019 was an extremely active and productive year for Eldorado. In June we entered into a transformative deal to acquire Caesars Entertainment. Additionally, we completed the sale of five assets during the year for total gross proceeds of $564 million. We also entered into agreements to sell two additional assets to Twin River for $230 million and the Eldorado Shreveport to Maverick Gaming for $230 million. On the sports wagering front, we opened operations in Iowa and Indiana in 2019 and we are excited about the long-term opportunity created by this new revenue stream. As we continue to move through the regulatory review process in advance of the expected closing in the first half of 2020 for the Caesars Entertainment acquisition, we remain extremely excited about the opportunity to create value for shareholders and stakeholders of both companies. Leaders from both companies have been identified to lead integration planning efforts, which are well underway in a number of critical areas. The execution teams are focused on integrating the two companies post-closing with a plan to drive both top line and bottom line performance.”

($ in thousands, except per share data)

Total Net Revenue

 

Three Months Ended

 

December 31,

 

 

2019

2019
Divestitures(1)

 

2019 Pre-
Acquisition

 

2019
Total(2)

 

 

2018

2018
Divestitures(3)

 

2018 Pre-
Acquisition

 

2018
Total(4)

Change

West

$

127,481

$

-

 

$

-

 

$

127,481

 

$

136,981

$

-

 

$

-

 

$

136,981

-6.9%

Midwest

 

88,685

 

16,610

 

 

-

 

 

72,075

 

 

95,774

 

23,341

 

 

-

 

 

72,433

-0.5%

South

 

105,465

 

-

 

 

-

 

 

105,465

 

 

119,570

 

-

 

 

-

 

 

119,570

-11.8%

East

 

151,509

 

22,102

 

 

-

 

 

129,407

 

 

200,697

 

69,381

 

 

-

 

 

131,316

-1.5%

Central

 

117,087

 

-

 

 

-

 

 

117,087

 

 

118,586

 

-

 

 

-

 

 

118,586

-1.3%

Corporate and Other

 

1,897

 

-

 

 

-

 

 

1,897

 

 

152

 

-

 

 

-

 

 

152

1148.0%

Total Net Revenue

$

592,124

$

38,712

 

$

-

 

$

553,412

 

$

671,760

$

92,722

 

$

-

 

$

579,038

-4.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per share data)

Operating Income

 

Three Months Ended

 

December 31,

 

 

2019

2019
Divestitures(1)

 

2019 Pre-
Acquisition

 

2019
Total(2)

 

 

2018

2018
Divestitures(3)

 

2018 Pre-
Acquisition

 

2018
Total(4)

Change

West

$

18,220

$

-

 

$

-

 

$

18,220

 

$

20,650

$

-

 

$

-

 

$

20,650

-11.8%

Midwest

 

27,114

 

4,557

 

 

-

 

 

22,557

 

 

25,084

 

5,319

 

 

-

 

 

19,765

14.1%

South

 

12,899

 

-

 

 

-

 

 

12,899

 

 

14,752

 

-

 

 

-

 

 

14,752

-12.6%

East

 

25,602

 

3,214

 

 

-

 

 

22,388

 

 

30,799

 

6,024

 

 

-

 

 

24,775

-9.6%

Central

 

24,876

 

-

 

 

-

 

 

24,876

 

 

21,372

 

-

 

 

-

 

 

21,372

16.4%

Corporate and Other

 

(49,799)

 

-

 

 

-

 

 

(49,799)

 

 

(25,931)

 

-

 

 

-

 

 

(25,931)

92.0%

Total Operating Income

$

58,912

$

7,771

 

$

-

 

$

51,141

 

$

86,726

$

11,343

 

$

-

 

$

75,383

-32.2%

   

($ in thousands, except per share data)

Adjusted EBITDA

 

Three Months Ended

 

December 31,

 

 

2019

2019
Divestitures(1)

 

2019 Pre-
Acquisition

 

2019
Total(2)

 

 

2018

2018
Divestitures(3)

 

2018 Pre-
Acquisition

 

2018
Total(4)

Change

West

$

33,126

$

-

 

$

-

 

$

33,126

 

$

34,572

$

-

 

$

-

 

$

34,572

-4.2%

Midwest

 

31,781

 

4,728

 

 

-

 

 

27,053

 

 

33,525

 

7,462

 

 

-

 

 

26,063

3.8%

South

 

22,392

 

-

 

 

-

 

 

22,392

 

 

25,898

 

-

 

 

-

 

 

25,898

-13.5%

East

 

37,753

 

3,469

 

 

-

 

 

34,284

 

 

43,678

 

8,232

 

 

-

 

 

35,446

-3.3%

Central

 

37,527

 

-

 

 

-

 

 

37,527

 

 

33,649

 

-

 

 

-

 

 

33,649

11.5%

Corporate and Other

 

(8,201)

 

-

 

 

-

 

 

(8,201)

 

 

(10,043)

 

-

 

 

-

 

 

(10,043)

-18.3%

Total Adjusted EBITDA(7)

$

154,378

$

8,197

 

$

-

 

$

146,181

 

$

161,279

$

15,694

 

$

-

 

$

145,585

0.4%

                             
Net Loss

$

(13,219)

           

$

(120)

           

Basic EPS

$

(0.17)

           

$

0.00

           

Diluted EPS

$

(0.17)

           

$

0.00

           

($ in thousands, except per share data)

Total Net Revenue

 

Twelve Months Ended

 

December 31,

 

 

2019

2019
Divestitures(5)

 

2019 Pre-
Acquisition

 

2019
Total(2)

 

 

2018

2018
Divestitures(3)

 

2018 Pre-
Acquisition(6)

 

2018
Total(4)

Change

West

$

524,721

$

-

 

$

-

 

$

524,721

 

$

483,532

$

-

 

$

87,316

 

$

570,848

-8.1%

Midwest

 

378,577

 

86,847

 

 

-

 

 

291,730

 

 

397,008

 

95,912

 

 

-

 

 

301,096

-3.1%

South

 

463,133

 

-

 

 

-

 

 

463,133

 

 

461,181

 

-

 

 

51,711

 

 

512,892

-9.7%

East

 

674,758

 

125,703

 

 

-

 

 

549,055

 

 

571,272

 

296,707

 

 

287,936

 

 

562,501

-2.4%

Central

 

479,761

 

-

 

 

-

 

 

479,761

 

 

142,485

 

-

 

 

349,241

 

 

491,726

-2.4%

Corporate and Other

 

7,299

 

-

 

 

-

 

 

7,299

 

 

529

 

-

 

 

94

 

 

623

1071.6%

Total Net Revenue

$

2,528,249

$

212,550

 

$

-

 

$

2,315,699

 

$

2,056,007

$

392,619

 

$

776,298

 

$

2,439,686

-5.1%

                             

($ in thousands, except per share data)

Operating Income

 

Twelve Months Ended

 

December 31,

 

 

2019

2019
Divestitures(5)

 

2019 Pre-
Acquisition

 

2019
Total(2)

 

 

2018

2018
Divestitures(3)

 

2018 Pre-
Acquisition(6)

 

2018
Total(4)

Change

West

$

84,992

$

-

 

$

-

 

$

84,992

 

$

84,548

$

-

 

$

13,635

 

$

98,183

-13.4%

Midwest

 

114,180

 

24,069

 

 

-

 

 

90,111

 

 

105,809

 

22,049

 

 

-

 

 

83,760

7.6%

South

 

74,622

 

-

 

 

-

 

 

74,622

 

 

64,851

 

-

 

 

355

 

 

65,206

14.4%

East

 

133,317

 

15,574

 

 

-

 

 

117,743

 

 

97,963

 

24,238

 

 

46,261

 

 

119,986

-1.9%

Central

 

105,772

 

-

 

 

-

 

 

105,772

 

 

24,240

 

-

 

 

70,105

 

 

94,345

12.1%

Corporate and Other

 

(102,910)

 

-

 

 

-

 

 

(102,910)

 

 

(67,308)

 

-

 

 

(52,127)

 

 

(119,435)

-13.8%

Total Operating Income

$

409,973

$

39,643

 

$

-

 

$

370,330

 

$

310,103

$

46,287

 

$

78,229

 

$

342,045

8.3%

 

 

($ in thousands, except per share data)

Adjusted EBITDA

 

Twelve Months Ended

 

December 31,

 

 

2019

2019
Divestitures(5)

 

2019 Pre-
Acquisition

 

2019
Total(2)

 

 

2018

2018
Divestitures(3)

 

2018 Pre-
Acquisition(6)

 

2018
Total(4)

Change

West

$

140,957

$

-

 

$

-

 

$

140,957

 

$

126,189

$

-

 

$

22,914

 

$

149,103

-5.5%

Midwest

 

140,551

 

28,899

 

 

-

 

 

111,652

 

 

139,242

 

30,555

 

 

-

 

 

108,687

2.7%

South

 

114,871

 

-

 

 

-

 

 

114,871

 

 

112,532

 

-

 

 

6,451

 

 

118,983

-3.5%

East

 

181,866

 

19,841

 

 

-

 

 

162,025

 

 

131,337

 

40,635

 

 

70,864

 

 

161,566

0.3%

Central

 

152,893

 

-

 

 

-

 

 

152,893

 

 

39,499

 

-

 

 

93,691

 

 

133,190

14.8%

Corporate and Other

 

(33,659)

 

-

 

 

-

 

 

(33,659)

 

 

(31,869)

 

-

 

 

(15,230)

 

 

(47,099)

-28.5%

Total Adjusted EBITDA(7)

$

697,479

$

48,740

 

$

-

 

$

648,739

 

$

516,930

$

71,190

 

$

178,690

 

$

624,430

3.9%

                             

Net Income

$

81,001

           

$

95,235

           

Basic EPS

$

1.04

           

$

1.23

           

Diluted EPS

$

1.03

           

$

1.22

           

(1)

  Figures are for Mountaineer, Cape Girardeau and Caruthersville for the period beginning October 1, 2019 and ending December 5, 2019.

(2)

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

(3)

  Figures are for Presque Isle Downs, Nemacolin, Mountaineer, Cape Girardeau and Caruthersville for the three and twelve months ended December 31, 2018.

(4)

  Total figures for 2018 include combined results of operations for ERI, Tropicana Entertainment, Inc. (“TEI”) and Grand Victoria Casino (“GV”) and exclude results of operations for Presque Isle Downs, Nemacolin, Mountaineer, Cape Girardeau and Caruthersville. Such presentation does not conform to GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of the operations reported by the Company.

(5)

  Figures are for Presque Isle Downs for the period beginning January 1, 2019 and ending January 11, 2019, Nemacolin for the period beginning January 1, 2019 and ending March 8, 2019, and Mountaineer, Cape Girardeau and Caruthersville for the period January 1, 2019 and ending December 5, 2019.

(6)

  Figures are for TEI for the nine months ended September 30, 2018 and for GV for the period beginning January 1, 2018 and ending August 6, 2018. Such figures are based on unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.

(7)

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

Balance Sheet and Liquidity

As of December 31, 2019, Eldorado had $2.6 billion of debt outstanding. Total cash and cash equivalents were $206.3 million, excluding restricted cash. No amounts were outstanding under the Company’s $500 million revolving credit facility.

“During the fourth quarter of 2019, we continued to utilize our free cash flow from operations and asset sale proceeds to reduce debt. During the quarter we paid down $388 million on our term loan bringing year-to-date total debt reduction to over $700 million,” said Bret Yunker, Chief Financial Officer.

Summary of 2019 Fourth Quarter Region Results

The property results for properties owned by Tropicana Entertainment have been included in results of operations for the fourth quarter of 2018, which preceded the date of acquisition of such properties. The full quarter property results for Grand Victoria Casino are included in the results of operations for the fourth quarter of 2018 following the completion of the acquisition of the property by Eldorado on August 7, 2018. Results for Presque Isle Downs and Lady Luck Nemacolin have been excluded as both assets were divested. Results for Mountaineer, Cape Girardeau and Caruthersville have also been excluded as they were divested to Century Casinos in December 2019. As such this presentation is intended to provide insights on same-store results and does not conform to GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods.

West Region(THE ROW, Isle Casino Hotel Black Hawk, Lady Luck Casino Black Hawk, Tropicana Laughlin Hotel and Casino and MontBleu Casino Resort & Spa)

Net revenue for the West Region properties for the quarter ended December 31, 2019 declined 6.9% to $127.5 million compared to $137.0 million in the prior-year period and operating income decreased to $18.2 million from $20.7 million in the prior-year quarter. West Region fourth quarter Adjusted EBITDA declined 4.2% to $33.1 million. The West region’s 2019 fourth quarter Adjusted EBITDA margin improved by 70 basis points to 26.0%.

Midwest Region(Isle Casino Waterloo, Isle Casino Bettendorf, Isle of Capri Casino Boonville, and Isle of Capri Casino Kansas City)

Net revenue for the Midwest Region properties for the quarter ended December 31, 2019 decreased approximately 0.5% to $72.1 million compared to $72.4 million in the prior-year period while operating income increased to $22.6 million from $19.8 million in the prior-year quarter. Adjusted EBITDA rose approximately 3.8% to $27.1 million compared to the prior year as the Adjusted EBITDA margin for the segment rose 155 basis points to 37.5%. Adjusted EBITDA for the Midwest Region in the prior-year period was $26.1 million reflecting an Adjusted EBITDA margin of 36.0%.

South Region(Isle Casino Racing Pompano Park, Eldorado Shreveport, Isle of Capri Casino Lula, Lady Luck Casino Vicksburg, Isle of Capri Lake Charles, Trop Casino Greenville and Belle of Baton Rouge Casino & Hotel)

Net revenue for the South Region properties for the quarter ended December 31, 2019 declined approximately 11.8% to $105.5 million compared to $119.6 million in the prior-year period while operating income declined to $12.9 million from $14.8 million in the prior-year period. South Region 2019 fourth quarter Adjusted EBITDA declined to $22.4 million versus $25.9 million in the year ago period. The region’s Adjusted EBITDA margin declined 40 basis points to 21.2%.

East Region(Eldorado Scioto Downs Racino and Tropicana Casino and Resort, Atlantic City)

Net revenue for the East Region properties for the quarter ended December 31, 2019 declined approximately 1.5% to $129.4 million compared to $131.3 million in the prior-year period and operating income decreased to $22.4 million from $24.8 million in the prior-year period. East Region 2019 fourth quarter Adjusted EBITDA declined 3.3% to $34.3 million compared to Adjusted EBITDA of $35.4 million in the prior-year period as the Adjusted EBITDA margin declined 50 basis points to 26.5%.

Central Region(Grand Victoria Casino, Tropicana Evansville and Lumière Place)

Net revenue for the Central Region for the quarter ended December 31, 2019 decreased approximately 1.3% to $117.1 million compared to $118.6 million in the prior-year period while operating income increased to $24.9 million from $21.4 million in the prior-year period. Central Region Adjusted EBITDA for the fourth quarter rose 11.5% to $37.5 million compared to Adjusted EBITDA of $33.6 million in the prior-year period as the Central Region’s Adjusted EBITDA margin improved 370 basis points to 32.1%. All three Central Region properties generated year over year Adjusted EBITDA growth.

Reconciliation of GAAP Measures to Non-GAAP Measures

Adjusted EBITDA (defined below), a non-GAAP financial measure, has been presented as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry and we believe that this non-GAAP supplemental information will be helpful in understanding the Company’s ongoing operating results. Management has historically used Adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of our core operating results and as a means to evaluate period-to-period results. Adjusted EBITDA represents operating income (loss) before depreciation and amortization, stock-based compensation, transaction expenses, severance expense, selling costs associated with the disposition of properties, proceeds from the terminated sale of Vicksburg, preopening expenses, costs associated with resolving the historical Tropicana bankruptcy, business interruption insurance proceeds, real estate tax settlements, other than temporary impairments on investments, impairment charges, equity in income (loss) of unconsolidated affiliates, (gain) loss on the sale or disposal of property and equipment, (gain) loss on property divestitures, and other non-cash regulatory gaming assessments. Adjusted EBITDA also excludes expense associated with our Master Lease with GLPI as the transaction was accounted for as a financing obligation. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with accounting principles generally accepted in the United States (“US GAAP”), is unaudited and should not be considered an alternative to, or more meaningful than, net income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in Adjusted EBITDA include capital expenditures, interest payments, income taxes, debt principal repayments, payments under our Master Lease, and certain regulatory gaming assessments, which can be significant. As a result, Adjusted EBITDA should not be considered as a measure of our liquidity. Other companies that provide EBITDA information may calculate EBITDA differently than we do. The definition of Adjusted EBITDA may not be the same as the definitions used in any of our debt agreements.

Fourth Quarter Conference Call

Eldorado will host a conference call at 4:30PM EST today. Senior management will discuss the financial results and host a question and answer session. The dial-in number for the audio conference call is (334) 777-6978, conference ID 5471424 (domestic and international callers). Participants can also access a live webcast of the call through the “Events & Presentations” section of Eldorado’s website at http://www.eldoradoresorts.com/ and a replay of the webcast will be archived on the site for 90 days following the live event.

About Eldorado Resorts, Inc.

Eldorado Resorts is a leading casino entertainment company that owns and operates twenty-three properties in eleven states, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, New Jersey, and Ohio. In aggregate, Eldorado’s properties feature approximately 23,900 slot machines, VLTs and e-tables and approximately 660 table games, and over 11,300 hotel rooms. For more information, please visit www.eldoradoresorts.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements regarding the expected synergies and benefits of a potential combination of Eldorado and Caesars, including the expected accretive effect of the proposed transaction on Eldorado’s results of operations; the anticipated benefits of geographic diversity that would result from the proposed transaction and the expected results of Caesars’ gaming properties; expectations about future business plans, prospective performance and opportunities; required regulatory approvals; the expected timing of the completion of the proposed transaction; and the anticipated financing of the proposed transaction , as well as expectations, future operating results and other information that is not historical information. When used in this press release, the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,” “could,” “should,” “would,” “will likely continue,” and variations of such words or similar expressions are intended to identify forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There is no assurance that the proposed transaction will be consummated and there are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements made herein. Such risks, uncertainties and other important factors include, but are not limited to: (a) risks related to the combination of Caesars and Eldorado and the integration of their respective businesses and assets; (b) the possibility that the proposed transaction with Caesars and related transactions do not close when expected or at all because required regulatory or other approvals are not received or other conditions to the consumption thereof are not satisfied on a timely basis or at all; (c) the risk that the financing required to fund the proposed transaction with Caesars and related transactions is not obtained on the terms anticipated or at all; (d) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; (e) potential litigation challenging the proposed transaction; (f) the possibility that the anticipated benefits of the proposed transaction, including cost savings and expected synergies, are not realized when expected or at all, including as a result of the impact of, or issues arising from, the implementation of our operating strategies and integration of our business and Caesars’ business; (g) conditions imposed on the companies in order to obtain required regulatory approvals; (h) uncertainties in the global economy and credit markets and its potential impact on our ability to finance the proposed transaction; (i) the possibility that the proposed transaction may be more expensive to complete than expected, including as a result of unexpected factors or events; (j) diversion of management’s attention from ongoing business operations and opportunities; (k) the ability to retain certain of our key employees and Caesars’ key employees; (l) risks associated with increased leverage from the proposed transaction; (m) changes in the value of Eldorado’s common stock between the date of the merger agreement and the closing of the proposed transaction; (n) competitive responses to the proposed transaction; (o) legislative, regulatory and economic developments; (p) uncertainties as to the timing of the consummation of the proposed transaction and the ability of each party to consummate the proposed transaction; (q) the impact of provisions of the Merger Agreement limiting the operation of our business prior to the closing of proposed transaction with Caesars and (r) other risks and uncertainties described in our reports on Form 10-K, Form 10-Q and Form 8-K.

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

- Tables follow -

ELDORADO RESORTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share data)

(Unaudited)

           

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino and pari-mutuel commissions

 

$

 

422,338

 

 

$

 

492,961

 

 

$

 

1,808,186

 

 

$

 

1,553,378

Food and beverage

 

 

 

72,345

 

 

 

 

82,695

 

 

 

 

301,417

 

 

 

 

247,339

Hotel

 

 

 

62,415

 

 

 

 

69,356

 

 

 

 

299,908

 

 

 

 

183,804

Other

 

 

 

35,026

 

 

 

 

26,748

 

 

 

 

118,738

 

 

 

 

71,486

Net revenues

 

 

 

592,124

 

 

 

 

671,760

 

 

 

 

2,528,249

 

 

 

 

2,056,007

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino and pari-mutuel commissions

 

 

 

186,226

 

 

 

 

229,731

 

 

 

 

802,327

 

 

 

 

749,289

Food and beverage

 

 

 

58,373

 

 

 

 

67,691

 

 

 

 

238,661

 

 

 

 

202,618

Hotel

 

 

 

23,123

 

 

 

 

24,830

 

 

 

 

99,223

 

 

 

 

65,009

Other

 

 

 

11,874

 

 

 

 

13,646

 

 

 

 

45,938

 

 

 

 

38,676

Marketing and promotions

 

 

 

31,700

 

 

 

 

39,906

 

 

 

 

129,373

 

 

 

 

106,161

General and administrative

 

 

 

116,665

 

 

 

 

126,053

 

 

 

 

476,751

 

 

 

 

349,598

Corporate

 

 

 

15,176

 

 

 

 

13,615

 

 

 

 

65,996

 

 

 

 

46,632

Impairment charges

 

 

 

 

 

 

 

 

 

 

 

958

 

 

 

 

13,602

Depreciation and amortization

 

 

 

54,643

 

 

 

 

58,224

 

 

 

 

221,525

 

 

 

 

157,429

Total operating expenses

 

 

 

497,780

 

 

 

 

573,696

 

 

 

 

2,080,752

 

 

 

 

1,729,014

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

 

 

 

27,907

 

 

 

 

(441)

 

 

 

 

49,575

 

 

 

 

(835)

Proceeds from terminated sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,000

Transaction expenses

 

 

 

(63,030)

 

 

 

 

(10,800)

 

 

 

 

(84,658)

 

 

 

 

(20,842)

Loss from unconsolidated affiliates

 

 

 

(309)

 

 

 

 

(97)

 

 

 

 

(2,441)

 

 

 

 

(213)

Operating income

 

 

 

58,912

 

 

 

 

86,726

 

 

 

 

409,973

 

 

 

 

310,103

OTHER EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

(69,043)

 

 

 

 

(75,154)

 

 

 

 

(286,248)

 

 

 

 

(171,732)

Loss on early retirement of debt, net

 

 

 

(6,308)

 

 

 

 

 

 

 

 

(7,512)

 

 

 

 

(162)

Unrealized gain (loss) on restricted investments

 

 

 

8,305

 

 

 

 

(2,587)

 

 

 

 

8,765

 

 

 

 

(2,587)

Total other expense

 

 

 

(67,046

)

 

 

 

(77,741)

 

 

 

 

(284,995)

 

 

 

 

(174,481)

(Loss) income before income taxes

 

 

 

(8,134)

 

 

 

 

8,985

 

 

 

 

124,978

 

 

 

 

135,622

Provision for income taxes

 

 

 

(5,085)

 

 

 

 

(9,105)

 

 

 

 

(43,977)

 

 

 

 

(40,387)

Net (loss) income

 

$

 

(13,219)

 

 

$

 

(120)

 

 

$

 

81,001

 

 

$

 

95,235

Net (loss) income per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

(0.17)

 

 

$

 

0.00

 

 

$

 

1.04

 

 

$

 

1.23

Diluted

 

$

 

(0.17)

 

 

$

 

0.00

 

 

$

 

1.03

 

 

$

 

1.22

Weighted average basic shares outstanding

 

 

 

77,735,826

 

 

 

 

77,503,732

 

 

 

 

77,677,265

 

 

 

 

77,458,902

Weighted average diluted shares outstanding

 

 

 

77,735,826

 

 

 

 

77,503,732

 

 

 

 

78,593,819

 

 

 

 

78,282,101

ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

   

 

Three Months Ended December 31, 2019

 

Operating
Income

 

Depreciation
and
Amortization

Stock-based
Compensation

 

Transaction
Expenses (8)

 

Other (9)

 

Adjusted
EBITDA

Including Divestitures:

   

 

             

West

$

18,220

 

$

14,450

$

-

 

$

-

 

$

456

 

$

33,126

Midwest

 

27,114

 

 

4,495

 

7

 

 

-

 

 

165

 

 

31,781

South

 

12,899

 

 

9,300

 

2

 

 

-

 

 

191

 

 

22,392

East

 

25,602

 

 

12,045

 

-

 

 

-

 

 

106

 

 

37,753

Central

 

24,876

 

 

12,532

 

-

 

 

-

 

 

119

 

 

37,527

Corporate

 

(49,799)

 

 

1,821

 

3,987

 

 

63,030

 

 

(27,240)

 

 

(8,201)

Total

$

58,912

 

$

54,643

$

3,996

 

$

63,030

 

$

(26,203)

 

$

154,378

 

Divestitures:

 

 

 

 

 

 

 

 

 

 

West

$

-

 

$

-

$

-

 

$

-

 

$

-

 

$

-

Midwest

 

4,557

 

 

-

 

5

 

 

-

 

 

166

 

 

4,728

South

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

East

 

3,214

 

 

172

 

-

 

 

-

 

 

83

 

 

3,469

Central

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

Corporate

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

Total Divestitures (1)

$

7,771

 

$

172

$

5

 

$

-

 

$

249

 

$

8,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excluding Divestitures:

 

 

 

 

 

 

 

 

 

 

West

$

18,220

 

$

14,450

$

-

 

$

-

 

$

456

 

$

33,126

Midwest

 

22,557

 

 

4,495

 

2

 

 

-

 

 

(1)

 

 

27,053

South

 

12,899

 

 

9,300

 

2

 

 

-

 

 

191

 

 

22,392

East

 

22,388

 

 

11,873

 

-

 

 

-

 

 

23

 

 

34,284

Central

 

24,876

 

 

12,532

 

-

 

 

-

 

 

119

 

 

37,527

Corporate

 

(49,799)

 

 

1,821

 

3,987

 

 

63,030

 

 

(27,240)

 

 

(8,201)

Total Excluding Divestitures (2)

$

51,141

 

$

54,471

$

3,991

 

$

63,030

 

$

(26,452)

 

$

146,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

Operating
Income

 

Depreciation
and
Amortization

Stock-based
Compensation

 

Transaction
Expenses (8)

 

Other (10)

 

Adjusted
EBITDA

Including Divestitures:

 

 

 

 

 

 

 

 

 

 

West

$

20,650

 

$

13,084

$

-

 

$

-

 

$

838

 

$

34,572

Midwest

 

25,084

 

 

8,430

 

15

 

 

-

 

 

(4)

 

 

33,525

South

 

14,752

 

 

11,014

 

9

 

 

-

 

 

123

 

 

25,898

East

 

30,799

 

 

12,660

 

2

 

 

-

 

 

217

 

 

43,678

Central

 

21,372

 

 

11,368

 

-

 

 

-

 

 

909

 

 

33,649

Corporate

 

(25,931)

 

 

1,668

 

3,412

 

 

10,800

 

 

8

 

 

(10,043)

Total

$

86,726

 

$

58,224

$

3,438

 

$

10,800

 

$

2,091

 

$

161,279

 

 

 

 

 

 

 

 

 

 

 

Divestitures:

 

 

 

 

 

 

 

 

 

 

West

$

-

 

$

-

$

-

 

$

-

 

$

-

 

$

-

Midwest

 

5,319

 

 

2,135

 

6

 

 

-

 

 

2

 

 

7,462

South

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

East

 

6,024

 

 

2,113

 

2

 

 

-

 

 

93

 

 

8,232

Central

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

Corporate

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

Total Divestitures (3)

$

11,343

 

$

4,248

$

8

 

$

-

 

$

95

 

$

15,694

 

 

 

 

 

 

 

 

 

 

 

Excluding Divestitures:

 

 

 

 

 

 

 

 

 

 

West

$

20,650

 

$

13,084

$

-

 

$

-

 

$

838

 

$

34,572

Midwest

 

19,765

 

 

6,295

 

9

 

 

-

 

 

(6)

 

 

26,063

South

 

14,752

 

 

11,014

 

9

 

 

-

 

 

123

 

 

25,898

East

 

24,775

 

 

10,547

 

-

 

 

-

 

 

124

 

 

35,446

Central

 

21,372

 

 

11,368

 

-

 

 

-

 

 

909

 

 

33,649

Corporate

 

(25,931)

 

 

1,668

 

3,412

 

 

10,800

 

 

8

 

 

(10,043)

Total Excluding Divestitures (4)

$

75,383

 

$

53,976

$

3,430

 

$

10,800

 

$

1,996

 

$

145,585

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2019

 

Operating
Income

 

Depreciation
and
Amortization

 

Stock-based
Compensation

 

Transaction
Expenses (8)

 

Other (9)

 

Adjusted
EBITDA

Including Divestitures:

                     

West

$

84,992

 

$

55,035

 

$

-

 

$

-

 

$

930

 

$

140,957

Midwest

 

114,180

 

 

25,145

 

 

36

 

 

-

 

 

1,190

 

 

140,551

South

 

74,622

 

 

39,165

 

 

13

 

 

-

 

 

1,071

 

 

114,871

East

 

133,317

 

 

48,064

 

 

7

 

 

-

 

 

478

 

 

181,866

Central

 

105,772

 

 

46,849

 

 

-

 

 

-

 

 

272

 

 

152,893

Corporate

 

(102,910)

 

 

7,267

 

 

19,663

 

 

84,658

 

 

(42,337)

 

 

(33,659)

Total Including Divestitures

$

409,973

 

$

221,525

 

$

19,719

 

$

84,658

 

$

(38,396)

 

$

697,479

 

 

 

 

 

 

 

 

 

 

 

 

Divestitures:

 

 

 

 

 

 

 

 

 

 

 

West

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

Midwest

 

24,069

 

 

4,140

 

 

18

 

 

-

 

 

672

 

 

28,899

South

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

East

 

15,574

 

 

3,842

 

 

7

 

 

-

 

 

418

 

 

19,841

Central

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Corporate

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Total Divestitures (5)

$

39,643

 

$

7,982

 

$

25

 

$

-

 

$

1,090

 

$

48,740

 

 

 

 

 

 

 

 

 

 

 

 

Excluding Divestitures:

 

 

 

 

 

 

 

 

 

 

 

West

$

84,992

 

$

55,035

 

$

-

 

$

-

 

$

930

 

$

140,957

Midwest

 

90,111

 

 

21,005

 

 

18

 

 

-

 

 

518

 

 

111,652

South

 

74,622

 

 

39,165

 

 

13

 

 

-

 

 

1,071

 

 

114,871

East

 

117,743

 

 

44,222

 

 

-

 

 

-

 

 

60

 

 

162,025

Central

 

105,772

 

 

46,849

 

 

-

 

 

-

 

 

272

 

 

152,893

Corporate

 

(102,910)

 

 

7,267

 

 

19,663

 

 

84,658

 

 

(42,337)

 

 

(33,659)

Total Excluding Divestitures (6)

$

370,330

 

$

213,543

 

$

19,694

 

$

84,658

 

$

(39,486)

 

$

648,739

 

 

 

 

 

 

Twelve Months Ended December 31, 2018

 

Operating
Income

 

Depreciation
and
Amortization

 

Stock-based
Compensation

 

Transaction
Expenses (8)

 

Other (10)

 

Adjusted
EBITDA

Excluding Pre-Acquisition/Including Divestitures:

   

 

               

West

$

84,548

 

$

40,131

 

$

(32)

 

$

-

 

$

1,542

 

$

126,189

Midwest

 

105,809

 

 

33,083

 

 

106

 

 

-

 

 

244

 

 

139,242

South

 

64,851

 

 

37,357

 

 

59

 

 

-

 

 

10,265

 

 

112,532

East

 

97,963

 

 

27,913

 

 

14

 

 

-

 

 

5,447

 

 

131,337

Central

 

24,240

 

 

13,583

 

 

-

 

 

-

 

 

1,676

 

 

39,499

Corporate

 

(67,308)

 

 

5,362

 

 

12,937

 

 

20,842

 

 

(3,702)

 

 

(31,869)

Total Excluding Pre-Acquisition/Including Divestitures

$

310,103

 

$

157,429

 

$

13,084

 

$

20,842

 

$

15,472

 

$

516,930

 

 

 

 

 

 

 

 

 

 

 

 

Divestitures:

 

 

 

 

 

 

 

 

 

 

 

West

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

Midwest

 

22,049

 

 

8,405

 

 

44

 

 

-

 

 

57

 

 

30,555

South

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

East

 

24,238

 

 

11,099

 

 

13

 

 

-

 

 

5,285

 

 

40,635

Central

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Corporate

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Total Divestitures (3)

$

46,287

 

$

19,504

 

$

57

 

$

-

 

$

5,342

 

$

71,190

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Acquisition:

 

 

 

 

 

 

 

 

 

 

 

West

$

13,635

 

$

9,271

 

$

-

 

$

-

 

$

8

 

$

22,914

Midwest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

South

 

355

 

 

6,076

 

 

-

 

 

-

 

 

20

 

 

6,451

East

 

46,261

 

 

24,444

 

 

-

 

 

-

 

 

159

 

 

70,864

Central

 

70,105

 

 

22,939

 

 

-

 

 

-

 

 

647

 

 

93,691

Corporate

 

(52,127)

 

 

1,537

 

 

-

 

 

4,259

 

 

31,101

 

 

(15,230)

Total Pre-Acquisition (7)

$

78,229

 

$

64,267

 

$

-

 

$

4,259

 

$

31,935

 

$

178,690

 

 

 

 

 

 

 

 

 

 

 

 

Including Pre-Acquisition/Excluding Divestitures:

 

 

 

 

 

 

 

 

 

 

 

West

$

98,183

 

$

49,402

 

$

(32)

 

$

-

 

$

1,550

 

$

149,103

Midwest

 

83,760

 

 

24,678

 

 

62

 

 

-

 

 

187

 

 

108,687

South

 

65,206

 

 

43,433

 

 

59

 

 

-

 

 

10,285

 

 

118,983

East

 

119,986

 

 

41,258

 

 

1

 

 

-

 

 

321

 

 

161,566

Central

 

94,345

 

 

36,522

 

 

-

 

 

-

 

 

2,323

 

 

133,190

Corporate

 

(119,435)

 

 

6,899

 

 

12,937

 

 

25,101

 

 

27,399

 

 

(47,099)

Total Including Pre-Acquisition/Excluding Divestitures (4)

$

342,045

 

$

202,192

 

$

13,027

 

$

25,101

 

$

42,065

 

$

624,430

                             

(1)

  Figures are for Mountaineer, Cape Girardeau and Caruthersville for the period beginning October 1, 2019 and ending December 5, 2019.

(2)

  Total figures for the three months ended December 31, 2019 exclude the results of operations for Mountaineer, Cape Girardeau and Caruthersville. Such presentation does not conform to GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.

(3)

  Figures are for Presque Isle Downs, Nemacolin, Mountaineer, Cape Girardeau and Caruthersville for the three and twelve months ended December 31, 2018.

(4)

  Total figures for the three and twelve months ended December 31, 2018 include the combined results of operations for GV, TEI and the Company and exclude results of operations for Presque Isle Downs, Nemacolin, Mountaineer, Cape Girardeau and Caruthersville. Such presentation does not conform to GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.

(5)

  Figures are for Presque Isle Downs for the period beginning January 1, 2019 and ending January 11, 2019 and Nemacolin for the period beginning January 1, 2019 and ending March 8, 2019 and Mountaineer, Cape Girardeau and Caruthersville for the period January 1, 2019 and ending December 5, 2019.

(6)

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

(7)

  Figures are for TEI for the nine months ended September 30, 2018 and for GV for the period beginning January 1, 2018 and ending August 6, 2018. Such figures are based on unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.

(8)

  Transaction expenses represent primarily costs related to the pending acquisition of Caesars for the three and twelve months ended December 31, 2019 and costs related to the acquisitions of GV, TEI and Isle for the three and twelve months ended December 31, 2018.

(9)

  Other, for the three and twelve months ended December 31, 2019, is comprised of severance expense, (gain) loss on the sale or disposal of property and equipment, equity in income (loss) of unconsolidated affiliate, impairment charges, costs associated with resolving the historical Tropicana bankruptcy, the (gain) loss associated with the sales of Presque Isle Downs, Nemacolin, Mountaineer, Cape Girardeau and Caruthersville and selling costs associated with the closed and pending divestitures of Mountaineer, Cape Girardeau, Caruthersville, Kansas City, Vicksburg and Shreveport.

(10)

  Other, for the three and twelve months ended December 31, 2018 is comprised of severance expense, (gain) loss on the sale or disposal of property and equipment, equity in income (loss) of an unconsolidated affiliate, preopening expenses, impairment charges at Vicksburg and Nemacolin, proceeds from the terminated sale of Vicksburg, other non-cash regulatory gaming assessments and selling costs associated with the divestitures of Presque Isle Downs and Nemacolin, the terminated sale of Vicksburg and the purchase of TEI and GV.

 

Brian Agnew
Eldorado Resorts
775/328-0112
investorrelations@eldoradoresorts.com

Joseph N. Jaffoni, Richard Land
JCIR
212/835-8500
eri@jcir.com

Source: Eldorado Resorts, Inc.

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