Delaware | 001-10410 | 62-1411755 | ||
(State of Incorporation) | (Commission File Number) | (IRS Employer | ||
Identification Number) | ||||
One Caesars Palace Drive | ||||
Las Vegas, Nevada 89109 | ||||
(Address of principal executive offices) (Zip Code) |
CAESARS ENTERTAINMENT CORPORATION | ||||
Date: | March 7, 2018 | By: | /S/ KEITH A. CAUSEY | |
Keith A. Causey | ||||
Senior Vice President and Chief Accounting Officer |
Contact: | Media | Investors | ||
Stephen Cohen | Joyce Arpin | |||
(347) 489-6602 | (702) 880-4707 |
• | Net revenues increased to $1.90 billion due to the inclusion of CEOC. Same-store revenues remained flat year-over-year at $1.96 billion. |
• | Net income was $2.00 billion, driven by a tax benefit of $2.03 billion relating to U.S. tax reform and CEOC’s emergence from Bankruptcy. |
• | Adjusted EBITDAR improved to $491 million and same-store adjusted EBITDAR of $505 million exceeded previously communicated expectations. |
• | Our Las Vegas RevPAR was essentially flat year-over-year at $124, while Las Vegas Strip market RevPAR declined 3%. |
• | Marketing expense was reduced by 4% year-over-year, resulting in a 52 basis-point improvement in marketing efficiency. |
• | Net revenues increased to $4.85 billion due to the inclusion of CEOC. Same-store net revenues remained flat at $8.12 billion. |
• | Net loss was $375 million. A $2.00 billion tax benefit relating to U.S. tax reform and CEOC’s emergence from Bankruptcy was offset by $2.03 billion in restructuring expenses related to CEOC's emergence and a $232 million loss on debt extinguishment. |
• | Adjusted EBITDAR improved to $1.4 billion and same-store adjusted EBITDAR of $2.20 billion exceeded previously communicated expectations. |
• | Las Vegas RevPAR improved 3.9% to $132 driven by improved rates from additional renovated rooms and overall strength in hospitality management. |
Three Months Ended December 31, | CEC | Enterprise Wide Same-store | |||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data) | CEC | CEOC | Less: Baltimore | Enterprise Wide Same-store | CEC | CEOC | Less: Baltimore | Enterprise Wide Same-store | $ | % | $ | % | |||||||||||||||||||||||||||||||||
Casino revenues | $ | 1,248 | $ | 44 | $ | — | $ | 1,292 | $ | 544 | $ | 832 | $ | 74 | $ | 1,302 | $ | 704 | 129.4 | % | $ | (10 | ) | (0.8 | )% | ||||||||||||||||||||
Net revenues | 1,901 | 62 | — | 1,963 | 949 | 1,098 | 78 | 1,969 | 952 | 100.3 | % | (6 | ) | (0.3 | )% | ||||||||||||||||||||||||||||||
Income from operations (a) | 153 | 10 | — | 163 | 95 | 135 | 5 | 225 | 58 | 61.1 | % | (62 | ) | (27.6 | )% | ||||||||||||||||||||||||||||||
Restructuring and support expenses | 321 | 12,328 | — | 12,649 | (425 | ) | (47 | ) | — | (472 | ) | 746 | * | 13,121 | * | ||||||||||||||||||||||||||||||
Other income | 78 | — | — | 78 | — | 4 | — | 4 | 78 | * | 74 | * | |||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations, net of income taxes (a) | 2,001 | 12,329 | — | 14,330 | (495 | ) | 37 | (2 | ) | (456 | ) | 2,496 | * | 14,786 | * | ||||||||||||||||||||||||||||||
Discontinued operations, net of income taxes | — | 17 | — | 17 | 29 | (1 | ) | — | 28 | (29 | ) | (100.0 | )% | (11 | ) | (39.3 | )% | ||||||||||||||||||||||||||||
Net income/(loss) (a) | 2,001 | 12,346 | — | 14,347 | (466 | ) | 36 | (2 | ) | (428 | ) | 2,467 | * | 14,775 | * | ||||||||||||||||||||||||||||||
Net income/(loss) attributable to Caesars (a) | 2,001 | 12,346 | — | 14,347 | (463 | ) | 34 | — | (429 | ) | 2,464 | * | 14,776 | * | |||||||||||||||||||||||||||||||
Basic earnings/(loss) per share | 3.01 | 18.56 | — | 21.57 | (3.15 | ) | 0.23 | — | (2.92 | ) | 6.16 | * | 24.49 | * | |||||||||||||||||||||||||||||||
Diluted earnings/(loss) per share | 2.48 | 15.18 | — | 17.66 | (3.15 | ) | 0.23 | — | (2.92 | ) | 5.63 | * | 20.58 | * | |||||||||||||||||||||||||||||||
Property EBITDAR (1) | 516 | 14 | — | 530 | 273 | 265 | 12 | 526 | 243 | 89.0 | % | 4 | 0.8 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR (1) | 491 | 14 | — | 505 | 250 | 269 | 14 | 505 | 241 | 96.4 | % | — | — | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR Margin (1) | 25.8 | % | 22.6 | % | — | 25.7 | % | 26.3 | % | 24.5 | % | 17.9 | % | 25.6 | % |
Years Ended December 31, | CEC | Enterprise Wide Same-store | |||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data) | CEC | CEOC | Less: Baltimore | Enterprise Wide Same-store | CEC | CEOC | Less: Baltimore | Enterprise Wide Same-store | $ | % | $ | % | |||||||||||||||||||||||||||||||||
Casino revenues | $ | 2,865 | $ | 2,558 | $ | 178 | $ | 5,245 | $ | 2,177 | $ | 3,373 | $ | 309 | $ | 5,241 | $ | 688 | 31.6 | % | $ | 4 | 0.1 | % | |||||||||||||||||||||
Net revenues | 4,852 | 3,454 | 185 | 8,121 | 3,877 | 4,503 | 322 | 8,058 | 975 | 25.1 | % | 63 | 0.8 | % | |||||||||||||||||||||||||||||||
Income from operations (a) | 532 | 594 | 17 | 1,109 | 227 | 718 | 36 | 909 | 305 | 134.4 | % | 200 | 22.0 | % | |||||||||||||||||||||||||||||||
Gain on deconsolidation of subsidiary | 30 | — | — | 30 | — | — | — | — | 30 | * | 30 | * | |||||||||||||||||||||||||||||||||
Restructuring and support expenses | (2,028 | ) | 12,246 | — | 10,218 | (5,729 | ) | (223 | ) | — | (5,952 | ) | 3,701 | 64.6 | % | 16,170 | * | ||||||||||||||||||||||||||||
Other income/(loss) | 95 | 18 | — | 113 | (29 | ) | 47 | — | 18 | 124 | * | 95 | * | ||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations, net of income taxes (a) | (382 | ) | 12,660 | (13 | ) | 12,291 | (6,457 | ) | 301 | 6 | (6,162 | ) | 6,075 | 94.1 | % | 18,453 | * | ||||||||||||||||||||||||||||
Discontinued operations, net of income taxes | — | 17 | — | 17 | 3,380 | — | — | 3,380 | (3,380 | ) | (100.0 | )% | (3,363 | ) | (99.5 | )% | |||||||||||||||||||||||||||||
Net income/(loss) (a) | (382 | ) | 12,677 | (13 | ) | 12,308 | (3,077 | ) | 301 | 6 | (2,782 | ) | 2,695 | 87.6 | % | 15,090 | * | ||||||||||||||||||||||||||||
Net income/(loss) attributable to Caesars (a) | (375 | ) | 12,671 | (6 | ) | 12,302 | (3,048 | ) | 292 | 2 | (2,758 | ) | 2,673 | 87.7 | % | 15,060 | * | ||||||||||||||||||||||||||||
Basic earnings/(loss) per share | (1.35 | ) | 45.46 | (0.02 | ) | 44.14 | (20.85 | ) | 2.00 | 0.01 | (18.86 | ) | 19.50 | 93.5 | % | 63.00 | * | ||||||||||||||||||||||||||||
Diluted earnings/(loss) per share | (1.35 | ) | 45.46 | (0.02 | ) | 44.14 | (20.85 | ) | 2.00 | 0.01 | (18.86 | ) | 19.50 | 93.5 | % | 63.00 | * | ||||||||||||||||||||||||||||
Property EBITDAR (1) | 1,428 | 923 | 37 | 2,314 | 1,140 | 1,171 | 65 | 2,246 | 288 | 25.3 | % | 68 | 3.0 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR (1) | 1,357 | 885 | 39 | 2,203 | 1,070 | 1,137 | 69 | 2,138 | 287 | 26.8 | % | 65 | 3.0 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR Margin (1) | 28.0 | % | 25.6 | % | 21.1 | % | 27.1 | % | 27.6 | % | 25.2 | % | 21.4 | % | 26.5 | % |
Las Vegas | Other U.S. | All Other | ||||
Bally’s Las Vegas | Bally’s Atlantic City (2) | Management Companies | Other | |||
Caesars Palace Las Vegas (2) | Caesars Atlantic City (2) | Caesars Cairo | Caesars Interactive Entertainment | |||
The Cromwell | Harrah’s Atlantic City | Caesars Windsor | ||||
Flamingo Las Vegas | Harrah’s Council Bluffs (2) | Harrah’s Ak-Chin | ||||
Harrah’s Las Vegas (2) | Harrah’s Gulf Coast (2) | Harrah’s Cherokee | ||||
The LINQ Hotel & Casino | Harrah’s Joliet (2) | Harrah’s Cherokee Valley River | ||||
Paris Las Vegas | Harrah’s Lake Tahoe (2) | Harrah’s Resort Southern California | ||||
Planet Hollywood Resort & Casino | Harrah’s Laughlin | Horseshoe Baltimore (1) | ||||
Rio All-Suites Hotel & Casino | Harrah’s Louisiana Downs (2) | The London Clubs Cairo-Ramses | ||||
LINQ Promenade/High Roller | Harrah’s Metropolis (2) | |||||
Harrah’s New Orleans | International | |||||
Harrah’s North Kansas City (2) | Alea Glasgow | |||||
Harrah’s Philadelphia | Alea Nottingham | |||||
Harrah’s Reno (2) | The Casino at the Empire | |||||
Harveys Lake Tahoe (2) | Emerald Safari | |||||
Horseshoe Baltimore (until Q3) (1) | Manchester235 | |||||
Horseshoe Bossier City (2) | Playboy Club London | |||||
Horseshoe Council Bluffs (2) | Rendezvous Brighton | |||||
Horseshoe Hammond (2) | Rendezvous Southend-on-Sea | |||||
Horseshoe Southern Indiana (2) | The Sportsman | |||||
Horseshoe Tunica (2) | ||||||
Tunica Roadhouse (2) |
(1) | Horseshoe Baltimore is 41% owned, and was deconsolidated and held as an equity-method investment effective August 31, 2017. |
(2) | Land and buildings owned by VICI Properties, Inc. |
Net Revenues - U.S. GAAP Consolidation | |||||||||||||||||||||
Three Months Ended December 31, | Percent Favorable/ (Unfavorable) | Years Ended December 31, | Percent Favorable/ (Unfavorable) | ||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Las Vegas | $ | 858 | $ | 645 | 33.0 | % | $ | 2,897 | $ | 2,625 | 10.4 | % | |||||||||
Other U.S. | 890 | 287 | * | 1,756 | 1,205 | 45.7 | % | ||||||||||||||
All Other | 153 | 17 | * | 199 | 47 | * | |||||||||||||||
Caesars | $ | 1,901 | $ | 949 | 100.3 | % | $ | 4,852 | $ | 3,877 | 25.1 | % |
Income/(Loss) from Operations - U.S. GAAP Consolidation | |||||||||||||||||||||
Three Months Ended December 31, | Percent Favorable/ (Unfavorable) | Years Ended December 31, | Percent Favorable/ (Unfavorable) | ||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Las Vegas | $ | 133 | $ | 126 | 5.6 | % | $ | 546 | $ | 526 | 3.8 | % | |||||||||
Other U.S. | 74 | 28 | 164.3 | % | 198 | 163 | 21.5 | % | |||||||||||||
All Other | (54 | ) | (59 | ) | 8.5 | % | (212 | ) | (462 | ) | 54.1 | % | |||||||||
Caesars | $ | 153 | $ | 95 | 61.1 | % | $ | 532 | $ | 227 | 134.4 | % |
Net Income/(Loss) - U.S. GAAP Consolidation | |||||||||||||||||||||
Three Months Ended December 31, | Percent Favorable/ (Unfavorable) | Years Ended December 31, | Percent Favorable/ (Unfavorable) | ||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Las Vegas | $ | 78 | $ | 122 | (36.1 | )% | $ | 481 | $ | 506 | (4.9 | )% | |||||||||
Other U.S. | (237 | ) | 21 | * | (112 | ) | 133 | * | |||||||||||||
All Other | 2,160 | (609 | ) | * | (751 | ) | (3,716 | ) | 79.8 | % | |||||||||||
Caesars | $ | 2,001 | $ | (466 | ) | * | $ | (382 | ) | $ | (3,077 | ) | 87.6 | % |
Property EBITDAR (1) - U.S. GAAP Consolidation | |||||||||||||||||||||
Three Months Ended December 31, | Percent Favorable/ (Unfavorable) | Years Ended December 31, | Percent Favorable/ (Unfavorable) | ||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Las Vegas | $ | 283 | $ | 217 | 30.4 | % | $ | 991 | $ | 878 | 12.9 | % | |||||||||
Other U.S. | 194 | 52 | * | 386 | 253 | 52.6 | % | ||||||||||||||
All Other | 39 | 4 | * | 51 | 9 | * | |||||||||||||||
Caesars | $ | 516 | $ | 273 | 89.0 | % | $ | 1,428 | $ | 1,140 | 25.3 | % |
Adjusted EBITDAR (1) - U.S. GAAP Consolidation | |||||||||||||||||||||
Three Months Ended December 31, | Percent Favorable/ (Unfavorable) | Years Ended December 31, | Percent Favorable/ (Unfavorable) | ||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Las Vegas | $ | 288 | $ | 219 | 31.5 | % | $ | 1,000 | $ | 881 | 13.5 | % | |||||||||
Other U.S. | 200 | 53 | * | 394 | 259 | 52.1 | % | ||||||||||||||
All Other | 3 | (22 | ) | * | (37 | ) | (70 | ) | 47.1 | % | |||||||||||
Caesars | $ | 491 | $ | 250 | 96.4 | % | $ | 1,357 | $ | 1,070 | 26.8 | % |
Summary of Cash and Revolver Capacity | |||
(In millions) | December 31, 2017 | ||
Cash and cash equivalents | $ | 2,558 | |
Revolver capacity | 1,200 | ||
Revolver capacity drawn or committed to letters of credit | (50 | ) | |
Total | $ | 3,708 |
* | Not meaningful. |
(1) | See the Reconciliation of Non-GAAP Financial Measures discussion later in this release for a reconciliation of Property EBITDAR and Adjusted EBITDAR. |
Same-Store Net Revenues | |||||||||||||||||||||
Three Months Ended December 31, | Percent Favorable/ (Unfavorable) | Years Ended December 31, | Percent Favorable/ (Unfavorable) | ||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Las Vegas | $ | 873 | $ | 908 | (3.9 | )% | $ | 3,635 | $ | 3,617 | 0.5 | % | |||||||||
Other U.S. | 930 | 905 | 2.8 | % | 3,871 | 3,831 | 1.0 | % | |||||||||||||
All Other | 160 | 156 | 2.6 | % | 615 | 610 | 0.8 | % | |||||||||||||
Caesars Same-Store | $ | 1,963 | $ | 1,969 | (0.3 | )% | $ | 8,121 | $ | 8,058 | 0.8 | % |
Same-Store Income/(Loss) from Operations | |||||||||||||||||||||
Three Months Ended December 31, | Percent Favorable/ (Unfavorable) | Years Ended December 31, | Percent Favorable/ (Unfavorable) | ||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Las Vegas | $ | 138 | $ | 201 | (31.3 | )% | $ | 748 | $ | 785 | (4.7 | )% | |||||||||
Other U.S. | 80 | 128 | (37.5 | )% | 614 | 648 | (5.2 | )% | |||||||||||||
All Other | (55 | ) | (104 | ) | 47.1 | % | (253 | ) | (524 | ) | 51.7 | % | |||||||||
Caesars Same-Store | $ | 163 | $ | 225 | (27.6 | )% | $ | 1,109 | $ | 909 | 22.0 | % |
Same-Store Adjusted EBITDAR | |||||||||||||||||||||
Three Months Ended December 31, | Percent Favorable/ (Unfavorable) | Years Ended December 31, | Percent Favorable/ (Unfavorable) | ||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Las Vegas | $ | 294 | $ | 328 | (10.4 | )% | $ | 1,290 | $ | 1,258 | 2.5 | % | |||||||||
Other U.S. | 207 | 195 | 6.2 | % | 922 | 914 | 0.9 | % | |||||||||||||
All Other | 4 | (18 | ) | * | (9 | ) | (34 | ) | 73.5 | % | |||||||||||
Caesars Same-Store | $ | 505 | $ | 505 | — | % | $ | 2,203 | $ | 2,138 | 3.0 | % |
• | completion of the acquisition of Centaur described herein is subject to receipt of regulatory approvals and other customary closing conditions, which may not be satisfied; |
• | we may not be able to realize the anticipated benefits of our proposed acquisition of Centaur; |
• | development of the convention center is subject to risks associated with new construction projects, including those described below; |
• | the impact of our new operating structure post-emergence; |
• | 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 improvements in our business and results of operations through our property renovation investments, technology deployments, business process improvement initiatives and other continuous improvement initiatives; |
• | the ability to take advantage of opportunities to grow our revenue; |
• | the financial results of our consolidated businesses; |
• | the impact of our substantial indebtedness and lease obligations and the restrictions in our debt and lease agreements; |
• | access to available and reasonable financing on a timely basis, including the ability of Caesars Entertainment to refinance its indebtedness on acceptable terms; |
• | the ability of our customer tracking, customer loyalty, and yield management programs to continue to increase customer loyalty and same-store or hotel sales; |
• | changes in the extensive governmental regulations to which we 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; |
• | our ability to recoup costs of capital investments through higher revenues; |
• | abnormal gaming holds ("gaming hold" is the amount of money that is retained by the casino from wagers by customers); |
• | the effects of competition, including locations of competitors, growth of online gaming, competition for new licenses, and operating and market competition; |
• | the ability to timely and cost-effectively integrate companies that we acquire into our operations; |
• | the potential difficulties in employee retention and recruitment; |
• | 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, (including the impact of the recent mass shooting in Las Vegas on tourism), severe weather conditions, uprisings or natural disasters, including losses therefrom, losses in revenues and damage to property, and the impact of severe weather conditions on our ability to attract customers to certain of our facilities; |
• | the effects of environmental and structural building conditions relating to our properties; |
• | a disruption, failure or breach of our network, information systems or other technology, or those of our vendors, on which we are dependent; |
• | risks and costs associated with protecting the integrity and security of internal, employee and customer data; |
• | access to insurance on reasonable terms for our assets; |
• | and the impact, if any, of unfunded pension benefits under multiemployer pension plans |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
(In millions, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenues | |||||||||||||||
Casino | $ | 1,248 | $ | 544 | $ | 2,865 | $ | 2,177 | |||||||
Food and beverage | 347 | 189 | 938 | 788 | |||||||||||
Rooms | 328 | 222 | 1,054 | 923 | |||||||||||
Other revenue | 198 | 129 | 626 | 527 | |||||||||||
Reimbursed management costs | 48 | — | 48 | — | |||||||||||
Less: casino promotional allowances | (268 | ) | (135 | ) | (679 | ) | (538 | ) | |||||||
Net revenues | 1,901 | 949 | 4,852 | 3,877 | |||||||||||
Operating expenses | |||||||||||||||
Direct | |||||||||||||||
Casino | 693 | 287 | 1,521 | 1,128 | |||||||||||
Food and beverage | 160 | 92 | 446 | 383 | |||||||||||
Rooms | 83 | 60 | 276 | 249 | |||||||||||
Property, general, administrative, and other | 401 | 238 | 1,133 | 1,166 | |||||||||||
Reimbursable management costs | 48 | — | 48 | — | |||||||||||
Depreciation and amortization | 280 | 112 | 628 | 439 | |||||||||||
Corporate expense | 73 | 53 | 204 | 194 | |||||||||||
Other operating costs | 10 | 12 | 64 | 91 | |||||||||||
Total operating expenses | 1,748 | 854 | 4,320 | 3,650 | |||||||||||
Income from operations | 153 | 95 | 532 | 227 | |||||||||||
Interest expense | (364 | ) | (151 | ) | (774 | ) | (599 | ) | |||||||
Gain on deconsolidation of subsidiaries | — | — | 30 | — | |||||||||||
Restructuring and support expenses | 321 | (425 | ) | (2,028 | ) | (5,729 | ) | ||||||||
Loss on extinguishment of debt | (216 | ) | — | (232 | ) | — | |||||||||
Other income/(loss) | 78 | — | 95 | (29 | ) | ||||||||||
Income/(loss) from continuing operations before income taxes | (28 | ) | (481 | ) | (2,377 | ) | (6,130 | ) | |||||||
Income tax benefit/(provision) | 2,029 | (14 | ) | 1,995 | (327 | ) | |||||||||
Income/(loss) from continuing operations, net of income taxes | 2,001 | (495 | ) | (382 | ) | (6,457 | ) | ||||||||
Discontinued operations, net of income taxes | — | 29 | — | 3,380 | |||||||||||
Net income/(loss) | 2,001 | (466 | ) | (382 | ) | (3,077 | ) | ||||||||
Net loss attributable to noncontrolling interests | — | 3 | 7 | 29 | |||||||||||
Net income/(loss) attributable to Caesars | $ | 2,001 | $ | (463 | ) | $ | (375 | ) | $ | (3,048 | ) | ||||
Earnings/(loss) per share - basic and diluted | |||||||||||||||
Basic earnings/(loss) per share from continuing operations | $ | 3.01 | $ | (3.35 | ) | $ | (1.35 | ) | $ | (43.96 | ) | ||||
Basic earnings per share from discontinued operations | — | 0.20 | — | 23.11 | |||||||||||
Basic earnings/(loss) per share | $ | 3.01 | $ | (3.15 | ) | $ | (1.35 | ) | $ | (20.85 | ) | ||||
Diluted earnings/(loss) per share from continuing operations | $ | 2.48 | $ | (3.35 | ) | $ | (1.35 | ) | $ | (43.96 | ) | ||||
Diluted earnings per share from discontinued operations | — | 0.20 | — | 23.11 | |||||||||||
Diluted earnings/(loss) per share | $ | 2.48 | $ | (3.15 | ) | $ | (1.35 | ) | $ | (20.85 | ) |
As of December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 2,558 | $ | 1,540 | |||
Restricted cash | 116 | 3,113 | |||||
Other current assets | 785 | 364 | |||||
Total current assets | 3,459 | 5,017 | |||||
Property and equipment, net | 16,228 | 7,446 | |||||
Goodwill | 3,815 | 1,608 | |||||
Intangible assets other than goodwill | 1,609 | 433 | |||||
Restricted cash | 35 | 5 | |||||
Deferred charges and other assets | 366 | 414 | |||||
Total assets | $ | 25,512 | $ | 14,923 | |||
Liabilities and Stockholders’ Equity/(Deficit) | |||||||
Current liabilities | |||||||
Accrued restructuring and support expenses | $ | — | $ | 6,601 | |||
Current portion of long-term debt | 64 | 89 | |||||
Other current liabilities | 1,824 | 1,041 | |||||
Total current liabilities | 1,888 | 7,731 | |||||
Financing obligations | 9,429 | — | |||||
Long-term debt | 8,849 | 6,749 | |||||
Other long-term liabilities | 2,050 | 2,052 | |||||
Total liabilities | 22,216 | 16,532 | |||||
Total Caesars stockholders’ equity/(deficit) | 3,225 | (1,662 | ) | ||||
Noncontrolling interests | 71 | 53 | |||||
Total stockholders’ equity/(deficit) | 3,296 | (1,609 | ) | ||||
Total liabilities and stockholders’ equity/(deficit) | $ | 25,512 | $ | 14,923 |
Years Ended December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Cash flows from operating activities | |||||||
Net loss | $ | (382 | ) | $ | (3,077 | ) | |
Adjustments to reconcile net loss to cash flows from operating activities: | |||||||
Income from discontinued operations | — | (3,380 | ) | ||||
Non-cash change in restructuring accrual | 2,065 | 3,667 | |||||
Interest accrued on financing obligations | 27 | — | |||||
Deferred income taxes | (1,858 | ) | (90 | ) | |||
Gain on deconsolidation of subsidiaries | (30 | ) | — | ||||
Depreciation and amortization | 628 | 439 | |||||
Loss on extinguishment of debt | 232 | — | |||||
Change in fair value of derivative liability | (64 | ) | — | ||||
Stock-based compensation expense | 43 | 232 | |||||
Amortization of deferred finance costs and debt discount/premium | 26 | 24 | |||||
Provision for doubtful accounts | 8 | 11 | |||||
Other non-cash adjustments to net loss | 30 | 24 | |||||
Net changes in: | |||||||
Accounts receivable | (85 | ) | (21 | ) | |||
Due to/due from affiliates, net | (53 | ) | 19 | ||||
Inventories, prepayments and other current assets | 64 | 9 | |||||
Deferred charges and other | (26 | ) | — | ||||
Accounts payable | (4 | ) | 39 | ||||
Interest payable | (35 | ) | (64 | ) | |||
Accrued expenses | 33 | 77 | |||||
Restructuring accruals | (2,880 | ) | 2,029 | ||||
Deferred credits and other | (63 | ) | 104 | ||||
Other | 1 | — | |||||
Cash flows provided by/(used in) operating activities | (2,323 | ) | 42 | ||||
Cash flows from investing activities | |||||||
Acquisitions of property and equipment, net of change in related payables | (598 | ) | (220 | ) | |||
Acquisition of OpCo, net of cash and restricted cash acquired | 561 | — | |||||
Deconsolidation of subsidiary cash | (57 | ) | — | ||||
Consolidation of Korea Joint Venture | 19 | — | |||||
Payments to acquire investments | (12 | ) | (23 | ) | |||
Proceeds from the sale and maturity of investments | 33 | 46 | |||||
Return of investment from discontinued operations | — | 132 | |||||
Contributions to discontinued operations | — | (56 | ) | ||||
Other | (1 | ) | — | ||||
Cash flows used in investing activities | (55 | ) | (121 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from long-term debt and revolving credit facilities | 7,550 | 120 | |||||
Debt issuance and extension costs and fees | (288 | ) | — | ||||
Repayments of long-term debt and revolving credit facilities | (7,846 | ) | (268 | ) | |||
Proceeds from sale-leaseback financing arrangement | 1,136 | — | |||||
Repurchase of CIE shares and distribution of sale proceeds | (63 | ) | (1,126 | ) | |||
Financing obligation payments | (54 | ) | — | ||||
Other | (6 | ) | 14 | ||||
Cash flows provided by/(used in) financing activities | 429 | (1,260 | ) |
Years Ended December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Cash flows from discontinued operations | |||||||
Cash flows from operating activities | — | 168 | |||||
Cash flows from investing activities | — | 4,379 | |||||
Cash flows from financing activities | — | (76 | ) | ||||
Net cash from discontinued operations | — | 4,471 | |||||
Change in cash, cash equivalents, and restricted cash classified as assets held for sale | — | 112 | |||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash | (1,949 | ) | 3,244 | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 4,658 | 1,414 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 2,709 | $ | 4,658 | |||
Supplemental Cash Flow Information | |||||||
Cash paid for interest | $ | 749 | $ | 634 | |||
Cash paid for income taxes | 7 | 305 | |||||
Non-Cash Settlement of Accrued Restructuring and Support Expenses | |||||||
Issuance of convertible notes and call right | 2,349 | — | |||||
Issuance of CEC common stock | 3,435 | — | |||||
Other non-cash investing and financing activities: | |||||||
Change in accrued capital expenditures | (6 | ) | 14 | ||||
Three Months Ended December 31, 2017 | Three Months Ended December 31, 2016 | |||||||||||||||||||||||||||||||
(In millions) | Las Vegas | Other U.S. | All Other (e) | Total CEC | Las Vegas | Other U.S. | All Other (e) | Total CEC | ||||||||||||||||||||||||
Net income/(loss) attributable to company | $ | 78 | $ | (237 | ) | $ | 2,160 | $ | 2,001 | $ | 122 | $ | 23 | $ | (608 | ) | $ | (463 | ) | |||||||||||||
Net income/(loss) attributable to noncontrolling interests | — | — | — | — | — | (2 | ) | (1 | ) | (3 | ) | |||||||||||||||||||||
Net (income)/loss from discontinued operations | — | — | — | — | — | — | (29 | ) | (29 | ) | ||||||||||||||||||||||
Income tax (benefit)/provision | — | (2 | ) | (2,027 | ) | (2,029 | ) | — | — | 14 | 14 | |||||||||||||||||||||
Restructuring and support expenses (a) | — | 177 | (498 | ) | (321 | ) | — | — | 425 | 425 | ||||||||||||||||||||||
Loss on extinguishment of debt | — | 1 | 215 | 216 | — | — | — | — | ||||||||||||||||||||||||
Other income/(losses) | (2 | ) | (1 | ) | (75 | ) | (78 | ) | (1 | ) | — | 1 | — | |||||||||||||||||||
Interest expense | 57 | 136 | 171 | 364 | 5 | 7 | 139 | 151 | ||||||||||||||||||||||||
Income/(loss) from operations | 133 | 74 | (54 | ) | 153 | 126 | 28 | (59 | ) | 95 | ||||||||||||||||||||||
Depreciation and amortization | 143 | 119 | 18 | 280 | 88 | 24 | — | 112 | ||||||||||||||||||||||||
Other operating costs (b) | 7 | 1 | 2 | 10 | 3 | — | 9 | 12 | ||||||||||||||||||||||||
Corporate expense | — | — | 73 | 73 | — | — | 53 | 53 | ||||||||||||||||||||||||
CIE stock-based compensation | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||
Property EBITDAR | $ | 283 | $ | 194 | $ | 39 | $ | 516 | $ | 217 | $ | 52 | $ | 4 | $ | 273 | ||||||||||||||||
Corporate expense | — | — | (73 | ) | (73 | ) | — | — | (53 | ) | (53 | ) | ||||||||||||||||||||
Stock-based compensation expense (c) | 2 | 2 | 12 | 16 | 1 | — | 9 | 10 | ||||||||||||||||||||||||
Other items (d) | 3 | 4 | 25 | 32 | 1 | 1 | 18 | 20 | ||||||||||||||||||||||||
Adjusted EBITDAR | $ | 288 | $ | 200 | $ | 3 | $ | 491 | $ | 219 | $ | 53 | $ | (22 | ) | $ | 250 |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||
(In millions) | Las Vegas | Other U.S. | All Other (e) | Total CEC | Las Vegas | Other U.S. | All Other (e) | Total CEC | ||||||||||||||||||||||||
Net income/(loss) attributable to company | $ | 481 | $ | (105 | ) | $ | (751 | ) | $ | (375 | ) | $ | 506 | $ | 129 | $ | (3,683 | ) | $ | (3,048 | ) | |||||||||||
Net income/(loss) attributable to noncontrolling interests | — | (7 | ) | — | (7 | ) | — | 4 | (33 | ) | (29 | ) | ||||||||||||||||||||
Net (income)/loss from discontinued operations | — | — | — | — | — | — | (3,380 | ) | (3,380 | ) | ||||||||||||||||||||||
Income tax (benefit)/provision | — | (2 | ) | (1,993 | ) | (1,995 | ) | (1 | ) | — | 328 | 327 | ||||||||||||||||||||
Gain on deconsolidation of subsidiary | — | (30 | ) | — | (30 | ) | — | — | — | — | ||||||||||||||||||||||
Restructuring and support expenses (a) | — | 177 | 1,851 | 2,028 | — | — | 5,729 | 5,729 | ||||||||||||||||||||||||
Loss on extinguishment of debt | 4 | 13 | 215 | 232 | — | — | — | — | ||||||||||||||||||||||||
Other income/(losses) | (4 | ) | (1 | ) | (90 | ) | (95 | ) | — | — | 29 | 29 | ||||||||||||||||||||
Interest expense | 65 | 153 | 556 | 774 | 21 | 30 | 548 | 599 | ||||||||||||||||||||||||
Income/(loss) from operations | 546 | 198 | (212 | ) | 532 | 526 | 163 | (462 | ) | 227 | ||||||||||||||||||||||
Depreciation and amortization | 420 | 186 | 22 | 628 | 344 | 90 | 5 | 439 | ||||||||||||||||||||||||
Impairment of tangible and other intangible assets | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other operating costs (b) | 25 | 2 | 37 | 64 | 8 | — | 83 | 91 | ||||||||||||||||||||||||
Corporate expense | — | — | 204 | 204 | — | — | 194 | 194 | ||||||||||||||||||||||||
CIE stock-based compensation | — | — | — | — | — | — | 189 | 189 | ||||||||||||||||||||||||
Property EBITDAR | $ | 991 | $ | 386 | $ | 51 | $ | 1,428 | $ | 878 | $ | 253 | $ | 9 | $ | 1,140 | ||||||||||||||||
Corporate expense | — | — | (204 | ) | (204 | ) | — | — | (194 | ) | (194 | ) | ||||||||||||||||||||
Stock-based compensation expense (c) | 4 | 3 | 36 | 43 | 3 | 2 | 38 | 43 | ||||||||||||||||||||||||
Other items (d) | 5 | 5 | 80 | 90 | — | 4 | 77 | 81 | ||||||||||||||||||||||||
Adjusted EBITDAR | $ | 1,000 | $ | 394 | $ | (37 | ) | $ | 1,357 | $ | 881 | $ | 259 | $ | (70 | ) | $ | 1,070 |
(a) | Amounts primarily represent CEC’s estimated costs in connection with the restructuring of CEOC. |
(b) | Amounts primarily represent pre-opening costs incurred in connection with property openings and expansion projects at existing properties and costs associated with the acquisition and development activities and reorganization activities. |
(c) | Amounts represent stock-based compensation expense related to shares, stock options, and restricted stock units granted to the Company’s employees. |
(d) | Amounts represent add-backs and deductions from EBITDA, permitted under certain indentures. Such add-backs and deductions include litigation awards and settlements, costs associated with CEOC’s restructuring and related litigation, severance and relocation costs, sign-on and retention bonuses, permit remediation costs, and business optimization expenses. |
(e) | Amounts include consolidating adjustments, eliminating adjustments and other adjustments to reconcile to consolidated CEC Property EBITDAR and Adjusted EBITDAR. |