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Press Releases

Aug 2, 2018

ELDORADO RESORTS REPORTS SECOND QUARTER NET REVENUE OF $456.8 MILLION, OPERATING INCOME OF $77.4 MILLION AND RECORD ADJUSTED EBITDA OF $118.0 MILLION

RENO, Nev.--(BUSINESS WIRE)-- Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado,” “ERI,” or “the Company”) today reported operating results for the second quarter ended June 30, 2018. Separately, Eldorado also announced that at a meeting earlier today, the Illinois Gaming Board approved the Company’s pending acquisition of the Grand Victoria Casino in Elgin, IL.

                 

($ in thousands, except per share data)

          Total Net Revenue    
          Three Months Ended    
            June 30,    
    2018   2017  

2017 Pre-
Acquisition(1)

 

2017
Total(2)

  Change
West   $ 117,880   $ 99,752   $ 11,001   $ 110,753   6.4%
Midwest     100,607     67,641     36,279     103,920   (3.2)%
South     112,242     88,459     32,219     120,678   (7.0)%
East     125,961     119,638     2,990     122,628   2.7%
Corporate and Other     112     136     45     181   (38.1)%
Total Net Revenue (3)   $ 456,802   $ 375,626   $ 82,534   $ 458,160   (0.3)%
                 

($ in thousands, except per share data)

          Operating Income (Loss)    
          Three Months Ended    
            June 30,    
    2018   2017  

2017 Pre-
Acquisition(1)

 

2017
Total(2)

  Change
West   $ 21,865   $ 16,512   $ 2,709   $ 19,221   13.8%
Midwest     27,411     15,412     10,637     26,049   5.2%
South     20,564     12,610     5,739     18,349   12.1%
East     24,397     18,228     (197)     18,031   35.3%
Corporate and Other     (16,823)     (93,229)     (2,550)     (95,779)   (82.4)%
Total Operating Income (Loss) (3)   $ 77,414   $ (30,467)   $ 16,338   $ (14,129)   647.9%
                     
                 

($ in thousands, except per share data)

          Adjusted EBITDA    
          Three Months Ended    
            June 30,    
   

2018

 

2017

 

2017 Pre-
Acquisition(1)

 

2017
Total (2)

  Change
West   $ 31,758   $ 23,199   $ 3,640   $ 26,839   18.3%
Midwest     35,923     20,458     12,686     33,144   8.4%
South     28,402     18,466     7,299     25,765   10.2%
East     29,363     26,558     42     26,600   10.4%
Corporate and Other     (7,431)     (5,884)     (1,729)     (7,613)   (2.4)%
Total Adjusted EBITDA (4)   $ 118,015   $ 82,797   $ 21,938   $ 104,735   12.7%
                         
Net income (loss)               $ 36,796       $ (46,190)
Basic EPS               $ 0.48       $ (0.68)
Diluted EPS               $ 0.47       $ (0.68)
                         
                 
            Total Net Revenue    

($ in thousands, except per share data)

          Six Months Ended    
            June 30,    
   

2018

 

2017

 

2017 Pre-
Acquisition(1)

 

2017
Total (2)

  Change
West   $ 217,459   $ 163,240   $ 43,414   $ 206,654   5.2%
Midwest     201,402     67,641     142,237     209,878   (4.0)%
South     235,042     121,019     131,100     252,119   (6.8)%
East     242,852     225,926     11,717     237,643   2.2%
Corporate and Other     239     193     226     419   (43.0)%
Total Net Revenue (3)   $ 896,994   $ 578,019   $ 328,694   $ 906,713   (1.1)%
                     
                 
            Operating Income (Loss)    

($ in thousands, except per share data)

          Six Months Ended    
            June 30,    
   

2018

 

2017

 

2017 Pre-
Acquisition(1)

 

2017
Total (2)

  Change
West   $ 32,004   $ 17,933   $ 9,525   $ 27,458   16.6%
Midwest     54,087     15,412     34,819     50,231   7.7%
South     33,923     18,528     25,086     43,614   (22.2)%
East     43,528     33,196     (1,072)     32,124   35.5%
Corporate and Other     (31,934)     (101,508)     (8,811)     (110,319)   (71.1)%
Total Operating Income (Loss) (3)   $ 131,608   $ (16,439)   $ 59,547   $ 43,108   205.3%
                 
            Adjusted EBITDA    
($ in thousands, except per share data)           Six Months Ended    
            June 30,    
   

2018

 

2017

 

2017 Pre-
Acquisition(1)

 

2017
Total (2)

  Change
West   $ 50,182   $ 29,423   $ 13,231   $ 42,654   17.6%
Midwest     70,438     20,458     46,856     67,314   4.6%
South     60,619     26,316     30,998     57,314   5.8%
East     55,543     50,562     (120)     50,442   10.1%
Corporate and Other     (15,223)     (10,678)     (5,996)     (16,674)   (8.7)%
Total Adjusted EBITDA (4)   $ 221,559   $ 116,081   $ 84,969   $ 201,050   10.2%
                             
Net income (loss)               $ 57,651       $ (45,245)
Basic EPS               $ 0.74       $ (0.79)
Diluted EPS               $ 0.74       $ (0.79)
                             
1.     Figures are for Isle of Capri Casinos, Inc. (“Isle”) for the one and four months ended April 30, 2017. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to ERI's fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company's auditors and do not conform to GAAP.
2.     Total figures for 2017 include combined results of operations for Isle and ERI for periods preceding the date that ERI acquired Isle. Such presentation does not conform with 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.     The prior period presentation has been adjusted for the adoption of Accounting Standards Codification (ASC) No. 606 “Revenue from Contracts with Customers” effective January 1, 2018 utilizing the full retrospective transition method. See reconciliation table on the last page of this release for further details.
4.     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.
       

“In the second quarter, Adjusted EBITDA rose at 16 of our 20 properties as all four of our property reporting segments generated year-over-year gains including double digit Adjusted EBITDA growth in our East, West and South segments,” said Gary Carano, Chairman and Chief Executive Officer of Eldorado. “On a consolidated basis, second quarter Adjusted EBITDA rose 12.7% to $118.0 million, as our property level Adjusted EBITDA margin rose 290 basis points to 27.5% and our consolidated Adjusted EBITDA margin increased 300 basis points to 25.8%.

“Our strong margin growth, including property level and consolidated Adjusted EBITDA margin growth in every quarter since our May 2017 acquisition of Isle of Capri, reflects the benefit of our focus on disciplined marketing and promotion, advertising, food and beverage and labor expense management. Our record results also reflect success in driving better customer experiences across our property portfolio through an emphasis on market-leading guest services and targeted return-focused property enhancement projects. With the bulk of our planned major capital investments and enhancements complete in Reno, our recent rebranding of the three-property operations across six contiguous city blocks as ‘THE ROW’ has been met with an enthusiastic response from our guests. THE ROW leverages our integrated design and property enhancements and amplifies the convenience, amenities, entertainment and quality of Eldorado Resort Casino, Silver Legacy Resort Casino Reno and Circus Circus Reno. Our recent investments in the Reno market have resulted in revenue improvements with growth in high margin, non-gaming revenue channels. This fall THE ROW will open the The Spa at Silver Legacy, a 21,000 square foot spa that will offer our guests the largest relaxation, beauty, fitness and retail treatment facility in northern Nevada.

“Additional projects scheduled to be completed over the balance of this year include the renovation of approximately 400 rooms at Silver Legacy and the opening of Brew Brothers restaurants at Isle Casino Waterloo and Isle of Capri Casino Boonville. Following the opening of the two new Brew Brothers locations, the successful microbrew concept will be featured at five of our properties. In addition, renovations to all 402 rooms at our Black Hawk properties will begin at the end of the year and are expected to be completed in the first quarter of 2019.

“We are pleased with our 2018 results to date and expect that the Grand Victoria Casino and pending Tropicana Entertainment acquisitions, combined with the strong operations of our existing properties, will position us for additional growth in the future as we continue to pursue opportunities to create additional value for shareholders.”

Balance Sheet and Liquidity

At June 30, 2018, Eldorado had $202.0 million in cash and cash equivalents excluding restricted cash. Outstanding indebtedness at June 30, 2018 totaled $2.2 billion, with no amounts outstanding on the Company’s revolving credit facility. Capital expenditures in the second quarter and first six months of 2018 totaled $33.9 million and $55.2 million, respectively.

Summary of 2018 Second Quarter Region Results

The property results for Presque Isle Downs and Casino and Lady Luck Nemacolin are included in operations until the announced transactions for the divestitures of these properties are completed which is expected to be in the 2018 fourth quarter.

West Region(THE ROW, Isle Casino Hotel Black Hawk and Lady Luck Casino Black Hawk)

Net revenue for the West Region properties for the quarter ended June 30, 2018 increased approximately 6.4% to $117.9 million compared to $110.8 million in the prior-year period, while operating income rose to $21.9 million from $19.2 million in the year-ago quarter. Adjusted EBITDA increased 18.3% to $31.8 million reflecting an Adjusted EBITDA margin improvement of 270 basis points to 26.9%, compared to Adjusted EBITDA of $26.8 million on an Adjusted EBITDA margin of 24.2% in the prior-year period. Adjusted EBITDA increased year over year at THE ROW and for the combined operations in Black Hawk, with the combined Adjusted EBITDA margin for the Black Hawk properties exceeding 30% for the fourth consecutive quarter.

Midwest Region(Isle Casino Waterloo, Isle Casino Bettendorf, Isle of Capri Casino Boonville, Isle Casino Cape Girardeau, Lady Luck Casino Caruthersville and Isle of Capri Casino Kansas City)

Net revenue for the Midwest Region properties for the quarter ended June 30, 2018 decreased approximately 3.2% to $100.6 million compared to $103.9 million in the prior-year period, while operating income rose to $27.4 million from $26.0 million in the year-ago quarter. Adjusted EBITDA rose approximately 8.4% to $35.9 million as the Adjusted EBITDA margin for the segment rose 380 basis points to 35.7%. Adjusted EBITDA for the Midwest Region in the prior-year period was $33.1 million reflecting an Adjusted EBITDA margin of 31.9%.

South Region(Isle Casino Racing Pompano Park, Eldorado Shreveport, Isle of Capri Casino Lula, Lady Luck Casino Vicksburg and Isle of Capri Lake Charles)

Net revenue for the South Region properties for the quarter ended June 30, 2018 declined approximately 7.0% to $112.2 million compared to $120.7 million in the prior-year period, while operating income increased to $20.6 million from $18.3 million in the year-ago quarter. Adjusted EBITDA increased 10.2% to $28.4 million as the Adjusted EBITDA margin for the segment rose 400 basis points to 25.3%. Adjusted EBITDA for the South Region in the prior-year period was $25.8 million reflecting an Adjusted EBITDA margin of 21.4%. Adjusted EBITDA increased year over year at four of the five South Region properties including Isle of Capri Lake Charles which saw an Adjusted EBITDA increase of more than 23% as the Company continues to execute on opportunities for significant improvement following the termination of the sale agreement for the property in the 2017 fourth quarter. Isle Casino Racing Pompano Park and Isle of Capri Casino Lula also both generated double digit Adjusted EBITDA growth in the current quarter.

East Region(Presque Isle Downs and Casino, Lady Luck Casino Nemacolin, Eldorado Scioto Downs Racino and Mountaineer Casino, Racetrack and Resort)

Net revenue for the East Region properties for the quarter ended June 30, 2018 increased approximately 2.7% to $126.0 million compared to $122.6 million in the prior-year period, while operating income grew to $24.4 million from $18.0 million in the year-ago quarter. Adjusted EBITDA for the East Region rose 10.4% to $29.4 million compared to Adjusted EBITDA of $26.6 million in the prior-year period as the East Region’s Adjusted EBITDA margin improved 160 basis points to 23.3%. Eldorado Scioto Downs generated Adjusted EBITDA growth for the fourteenth consecutive quarter.

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, costs associated with the Presque Isle Downs, Vicksburg and Lake Charles sales, impairment charges, equity in income of unconsolidated affiliates, (gain) loss on the sale or disposal of property and equipment, and other non-cash regulatory gaming assessments. 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 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.

Second Quarter Conference Call

Eldorado will host a conference call at 4:30 p.m. ET 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 719/325-4778, conference ID 6220773 (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 properties in ten states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia. In aggregate, Eldorado’s properties feature approximately 21,000 slot machines and VLTs and 600 table games, and over 7,000 hotel rooms. On April 16, 2018, the Company announced that it entered into acquisition agreements for Tropicana Entertainment Inc. and the Grand Victoria Casino in Elgin, IL.The Grand Victoria Casino transaction is expected to close in the 2018 third quarter and the Tropicana Entertainment Inc. transaction is expected to close in the fourth quarter. 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 statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information.When used in this press release, the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,” “could,” “should,” “would,” “will likely continue,” and variations of such words or similar expressions are intended to identify forward-looking statements.Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized.There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release.Such risks, uncertainties and other important factors include, but are not limited to:our ability to obtain required regulatory approvals (including approval from gaming regulators and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976) and satisfy or waive other closing conditions to consummate the acquisition of Tropicana and the Grand Victoria Casino and the disposition of Presque Isle Downs and Lady Luck Casino Nemacolin on a timely basis;the possibility that the one or more of such transactions do not close on the terms described herein or that we are required to modify aspects of one or more of such transactions to obtain regulatory approval; our ability to promptly and effectively implement our operating strategies at the acquired properties and integrate our business and the business of the acquired companies to realize the synergies contemplated by the proposed acquisitions;our ability to obtain debt financing on the terms expected, or at all; the possibility that the business of Tropicana or the Grand Victoria Casino may suffer as a result of the announcement of the acquisition; our ability to retain key employees of the acquired companies;the outcome of legal proceedings that may be instituted as a result of the proposed transactions; our substantial indebtedness and the impact of such obligations on our operations and liquidity; competition; sensitivity of our operations to reductions in discretionary consumer spending and changes in general economic and market conditions; governmental regulations and increases in gaming taxes and fees in jurisdictions in which we operate; and 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     Six Months Ended
    June 30,     June 30,
    2018   2017 (1)   2018   2017 (1)
REVENUES:                        
Casino   $ 343,675   $ 275,593   $ 683,133   $ 417,147
Pari-mutuel commissions     5,045     4,112     9,115     4,748
Food and beverage     54,293     49,709     106,491     82,130
Hotel     38,926     34,278     69,667     53,583
Other     14,863     11,934     28,588     20,411
Net revenues     456,802     375,626     896,994     578,019
EXPENSES:                        
Casino     165,353     139,707     331,203     219,688
Pari-mutuel commissions     4,592     4,030     8,293     5,237
Food and beverage     44,770     42,803     89,546     68,821
Hotel     13,695     12,270     26,201     21,349
Other     8,310     6,901     15,715     13,070
Marketing and promotions     21,832     21,531     43,133     31,660
General and administrative     73,745     60,887     147,947     92,687
Corporate     12,232     7,442     23,801     14,016
Impairment charges             9,815    
Depreciation and amortization     31,910     24,909     63,444     40,513
Total operating expenses     376,439     320,480     759,098     507,041
Gain (loss) on sale or disposal of property and equipment     423     (89)     (283)     (57)
Transaction expenses     (3,404)     (85,464)     (5,952)     (87,078)
Equity in gain (loss) of unconsolidated affiliates     32     (60)     (53)     (282)
Operating income (loss)     77,414     (30,467)     131,608     (16,439)
OTHER INCOME (EXPENSE):                        
Interest expense, net     (31,405)     (27,527)     (62,494)     (40,197)
Loss on early retirement of debt, net         (27,317)     (162)     (27,317)
Total other expense     (31,405)     (54,844)     (62,656)     (67,514)
Net income (loss) before income taxes     46,009     (85,311)     68,952     (83,953)
(Provision) benefit for income taxes     (9,213)     39,121     (11,301)     38,708
Net income (loss)   $ 36,796   $ (46,190)   $ 57,651   $ (45,245)
Net income (loss) per share of common stock:                        
Basic   $ 0.48   $ (0.68)   $ 0.74   $ (0.79)
Diluted   $ 0.47   $ (0.68)   $ 0.74   $ (0.79)
Weighted average basic shares outstanding     77,458,584     67,453,095     77,406,447     57,405,834
Weighted average diluted shares outstanding     78,258,629     67,453,095     78,169,629     57,405,834
                         
1.     The prior period presentation has been adjusted for the adoption of Accounting Standards Codification (ASC) No. 606 “Revenue from Contracts with Customers” effective January 1, 2018 utilizing the full retrospective transition method. See reconciliation table on the last page of this release for further details.
       
     
ELDORADO RESORTS, INC.
SUMMARY INFORMATION AND RECONCILIATION OF
OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
($ in thousands)
(unaudited)
     
    Three Months Ended June 30, 2018
    Operating

Income

(Loss)

    Depreciation

and

Amortization

    Stock-Based

Compensation

    Transaction

Expenses (3)

      Other (4)     Adjusted

EBITDA

West   $   21,865     $   9,382     $   (95)     $         $   606     $   31,758
Midwest       27,411         8,404         31                   77         35,923
South       20,564         8,108         17                   (287)         28,402
East       24,397         4,717         3                   246         29,363
Corporate and Other       (16,823)         1,299         3,516         3,404           1,173         (7,431)
Total   $   77,414     $   31,910     $   3,472     $   3,404       $   1,815     $   118,015
     
     
    Three Months Ended June 30, 2017 (6)
    Operating

Income

(Loss)

    Depreciation

and

Amortization

    Stock-Based

Compensation

    Transaction

Expenses (3)

      Other (4)     Adjusted

EBITDA

Excluding Pre-Acquisition:                                                            
West   $   16,512     $   6,571     $   52     $         $   64     $   23,199
Midwest       15,412         4,966         86                   (6)         20,458
South       12,610         4,662         64                   1,130         18,466
East       18,228         8,273         4                   53         26,558
Corporate and Other       (93,229)         437         1,123         85,464           321         (5,884)
Total Excluding Pre-Acquisition   $   (30,467)     $   24,909     $   1,329     $   85,464       $   1,562     $   82,797
                                                             
Pre-Acquisition (1):                                                            
West   $   2,709     $   925     $   2     $         $   4     $   3,640
Midwest       10,637         2,001         14                   34         12,686
South       5,739         1,441         9                   110         7,299
East       (197)         239                                   42
Corporate and Other       (2,550)         96         461         286           (22)         (1,729)
Total Pre-Acquisition   $   16,338     $   4,702     $   486     $   286       $   126     $   21,938
                                                             
Including Pre-Acquisition:                                                            
West   $   19,221     $   7,496     $   54     $         $   68     $   26,839
Midwest       26,049         6,967         100                   28         33,144
South       18,349         6,103         73                   1,240         25,765
East       18,031         8,512         4                   53         26,600
Corporate and Other       (95,779)         533         1,584         85,750           299         (7,613)
Total Including Pre-Acquisition (2)   $   (14,129)     $   29,611     $   1,815     $   85,750       $   1,688     $   104,735
                                                             
     
    Six Months Ended June 30, 2018
    Operating

Income

(Loss)

  Depreciation

and

Amortization

  Stock-Based

Compensation

  Transaction

Expenses (3)

  Other (4)   Adjusted

EBITDA

West   $ 32,004   $   17,571   $   (32)   $     $   639   $ 50,182
Midwest     54,087       16,049       75             227     70,438
South     33,923       16,639       42             10,015     60,619
East     43,528       10,766       8             1,241     55,543
Corporate and Other     (31,934)       2,419       7,058       5,952       1,282     (15,223)
Total   $ 131,608   $   63,444   $   7,151   $   5,952   $   13,404   $ 221,559
     
     
    Six Months Ended June 30, 2017 (6)
    Operating

Income

(Loss)

  Depreciation

and

Amortization

  Stock-Based

Compensation

  Transaction

Expenses (3)

  Other (4)   Adjusted

EBITDA

Excluding Pre-Acquisition:                                    
West   $ 17,933   $ 11,214   $ 52   $   $ 224   $ 29,423
Midwest     15,412     4,966     86         (6)     20,458
South     18,528     6,594     64         1,130     26,316
East     33,196     17,153     4         209     50,562
Corporate and Other     (101,508)     586     2,856     87,078     310     (10,678)
Total Excluding Pre-Acquisition   $ (16,439)   $ 40,513   $ 3,062   $ 87,078   $ 1,867   $ 116,081
                                     
Pre-Acquisition (5):                                    
West   $ 9,525   $ 3,694   $ 8   $   $ 4   $ 13,231
Midwest     34,819     11,952     51         34     46,856
South     25,086     5,693     35         184     30,998
East     (1,072)     952                 (120)
Corporate and Other     (8,811)     371     1,631     286     527     (5,996)
Total Pre-Acquisition   $ 59,547   $ 22,662   $ 1,725   $ 286   $ 749   $ 84,969
                                     
Including Pre-Acquisition:                                    
West   $ 27,458   $ 14,908   $ 60   $   $ 228   $ 42,654
Midwest     50,231     16,918     137         28     67,314
South     43,614     12,287     99         1,314     57,314
East     32,124     18,105     4         209     50,442
Corporate and Other     (110,319)     957     4,487     87,364     837     (16,674)
Total Including Pre-Acquisition (2)   $ 43,108   $ 63,175   $ 4,787   $ 87,364   $ 2,616   $ 201,050
                                     
1.     Figures are for Isle for April 2017. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical operating revenues, operating income and Adjusted EBITDA for periods corresponding to the Company’s fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.
2.     Total figures for 2017 include combined results of operations for Isle and the Company for periods preceding the date that the Company acquired Isle. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for proforma 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.     Transaction expenses represent costs related to the acquisition of Isle for the three and six months ended June 30, 2017 and costs primarily related to the acquisitions of Grand Victoria Casino and Tropicana Entertainment Inc. for the three and six months ended June 30, 2018.
4.     Other is comprised of severance expense, (gain) loss on the sale or disposal of property and equipment, equity in income (loss) of unconsolidated affiliate and other non-cash regulatory gaming assessments for the three and six months ended June 30, 2018 and 2017. Also included are costs associated with the sales of Vicksburg and Presque Isle Downs for the three and six months ended June 30, 2018 and the failed sale of Lake Charles for the three and six months ended June 30, 2017. In conjunction with the announced sale of Vicksburg, an impairment charge totaling $9.8 million was recorded for the six months ended June 30, 2018.
5.     Figures are for Isle for the four months ended April 30, 2017. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical operating revenues, operating income and Adjusted EBITDA for periods corresponding to the Company’s fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.
6.     The prior period presentation has been adjusted for the adoption of Accounting Standards Codification (ASC) No. 606 “Revenue from Contracts with Customers” effective January 1, 2018 utilizing the full retrospective transition method. See Note 2 to our Condensed Notes to Unaudited Consolidated Financial Statements for additional information.
       
         
        Reconciliation Table

Three Months Ended June 30, 2017

       
         
    As Reported  

ASC 606
Adjustments

 

Other
Reclassifications (1)

  As Adjusted
Gross revenues   $ 389,237   $ (31,215)   $ 17,604   $ 375,626
Promotional allowances   (34,057)   33,226   831   -
Net revenues   $ 355,180   $ 2,011   $ 18,435   $ 375,626
Operating (loss) income   (32,116)   110   1,539   (30,467)
Net (loss) income   (46,328)   138   -   (46,190)
         
   

 

 

Reconciliation Table

   

 

 

Six Months Ended June 30, 2017

                 
    As Reported  

ASC 606
Adjustments

 

Other
Reclassifications (1)

  As Adjusted
Gross revenues   $ 608,783   $ (48,235)   $ 17,471   $ 578,019
Promotional allowances   (52,678)   51,713   965   -
Net revenues   $ 556,105   $ 3,478   $ 18,436   $ 578,019
Operating (loss) income   (17,967)   (11)   1,539   (16,439)
Net (loss) income   (45,307)   62   -   (45,245)
                 
1.     Other reclassifications are comprised of the reversal of our Lake Charles property from discontinued operations and other reclassifications to conform to current period presentations.
       

 

Eldorado Resorts, Inc.
Thomas Reeg, 775-328-0112
President and Chief Financial Officer
investorrelations@eldoradoresorts.com
or
JCIR
Joseph N. Jaffoni, James Leahy, 212-835-8500
eri@jcir.com

 

Source: Eldorado Resorts, Inc.

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