Exhibit 99.1
Caesars Entertainment, Inc. Reports Second Quarter 2020 Results
Reno and Las Vegas, Nev. (August 6, 2020) – Caesars Entertainment, Inc., (NASDAQ: CZR) (“Caesars,” “CZR,” or “the Company”), formerly known as Eldorado Resorts, Inc., today reported operating results for the second quarter ended June 30, 2020.
Second Quarter 2020 and Recent Highlights:
| • | Net revenue for legacy Eldorado Resorts properties of $126.5 million, a decrease of 80.1% on a GAAP basis and 78.2% on a same-store basis versus the comparable prior-year period |
| • | Net loss of $100.0 million compared to net income of $18.9 million for the comparable prior-year period |
| • | Same-store Adjusted EBITDA for legacy Eldorado Resorts of negative $10.4 million versus positive $164.8 million for the comparable prior-year period |
| • | Eldorado Resorts and Caesars Entertainment Corporation completed their merger on July 20, 2020 creating the largest casino and entertainment company in the U.S. |
| • | New Caesars Entertainment Inc. pro forma liquidity positions the company well to weather any short term disruptions due to COVID-19 |
| • | 51 properties of new Caesars Entertainment, Inc. in the U.S. have resumed operations since mid-May 2020 |
Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, “Our second quarter operating trends were negatively impacted as the majority of our properties remained closed during April and May 2020. Our properties began to reopen in late May and early June. All of the combined new Caesars Entertainment, Inc. regional properties are now reopened and we are encouraged by operating trends.”
Reeg continued, “Now that the merger has closed, our operating teams are fully engaged with integrating the two companies and executing on the synergy plans. Our number one priority remains the safety and security of our Team Members and Guests. Our COVID-19 operating plans for reopened properties are designed to ensure a safe and exciting environment for our Guests. We remain optimistic regarding an eventual recovery of travel and tourism in the U.S. and especially Las Vegas.”
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| ($ in thousands) | Total Net Revenue | |||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| June 30, | ||||||||||||||||||||
| 2020 | 2019 | 2019 Divestitures(1) |
2019 Total(2) |
Change | ||||||||||||||||
| West |
$ | 29,937 | $ | 127,727 | $ | — | $ | 127,727 | -76.6 | % | ||||||||||
| Midwest |
22,787 | 97,239 | 22,991 | 74,248 | -69.3 | % | ||||||||||||||
| South |
30,760 | 116,937 | — | 116,937 | -73.7 | % | ||||||||||||||
| East |
21,226 | 170,455 | 32,707 | 137,748 | -84.6 | % | ||||||||||||||
| Central |
19,848 | 122,792 | — | 122,792 | -83.8 | % | ||||||||||||||
| Corporate and Other |
1,912 | 1,971 | — | 1,971 | -3.0 | % | ||||||||||||||
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| Total Net Revenue |
$ | 126,470 | $ | 637,121 | $ | 55,698 | $ | 581,423 | -78.2 | % | ||||||||||
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| ($ in thousands) | Net (Loss) Income | |||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| June 30, | ||||||||||||||||||||
| 2020 | 2019 | 2019 Divestitures(1) |
2019 Total(2) |
Change | ||||||||||||||||
| West |
$ | (12,711 | ) | $ | 11,348 | $ | — | $ | 11,348 | -212.0 | % | |||||||||
| Midwest |
1,378 | 21,435 | 4,737 | 16,698 | -91.8 | % | ||||||||||||||
| South |
(10,912 | ) | 12,747 | — | 12,747 | -185.6 | % | |||||||||||||
| East |
(30,456 | ) | 15,981 | 3,107 | 12,874 | -336.6 | % | |||||||||||||
| Central |
(20,452 | ) | 13,070 | — | 13,070 | -256.5 | % | |||||||||||||
| Corporate and Other |
(26,843 | ) | (55,645 | ) | — | (55,645 | ) | -51.8 | % | |||||||||||
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| Total Net (Loss) Income |
$ | (99,996 | ) | $ | 18,936 | $ | 7,844 | $ | 11,092 | -1,001.5 | % | |||||||||
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| ($ in thousands, except per share data) | Adjusted EBITDA | |||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| June 30, | ||||||||||||||||||||
| 2020 | 2019 | 2019 Divestitures(1) |
2019 Total(2) |
Change | ||||||||||||||||
| West |
$ | 734 | $ | 34,305 | $ | — | $ | 34,305 | -97.9 | % | ||||||||||
| Midwest |
4,648 | 36,753 | 7,932 | 28,821 | -83.9 | % | ||||||||||||||
| South |
(2,476 | ) | 29,109 | — | 29,109 | -108.5 | % | |||||||||||||
| East |
(9,948 | ) | 47,418 | 5,904 | 41,514 | -124.0 | % | |||||||||||||
| Central |
3,593 | 39,602 | — | 39,602 | -90.9 | % | ||||||||||||||
| Corporate and Other |
(6,934 | ) | (8,526 | ) | — | (8,526 | ) | -18.7 | % | |||||||||||
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| Total Adjusted EBITDA(3) |
$ | (10,383 | ) | $ | 178,661 | $ | 13,836 | $ | 164,825 | -106.3 | % | |||||||||
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| Net (Loss) Income |
$ | (99,996 | ) | $ | 18,936 | |||||||||||||||
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| Basic EPS |
$ | (1.25 | ) | $ | 0.24 | |||||||||||||||
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| Diluted EPS |
$ | (1.25 | ) | $ | 0.24 | |||||||||||||||
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| ($ in thousands) | Total Net Revenue | |||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||
| June 30, | ||||||||||||||||||||
| 2020 | 2019 | 2019 Divestitures(1) |
2019 Total(2) |
Change | ||||||||||||||||
| West |
$ | 135,427 | $ | 245,822 | $ | — | $ | 245,822 | -44.9 | % | ||||||||||
| Midwest |
83,580 | 194,026 | 47,319 | 146,707 | -43.0 | % | ||||||||||||||
| South |
127,812 | 249,651 | — | 249,651 | -48.8 | % | ||||||||||||||
| East |
129,282 | 336,688 | 70,944 | 265,744 | -51.4 | % | ||||||||||||||
| Central |
119,553 | 243,264 | — | 243,264 | -50.9 | % | ||||||||||||||
| Corporate and Other |
3,885 | 3,493 | — | 3,493 | 11.2 | % | ||||||||||||||
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| Total Net Revenue |
$ | 599,539 | $ | 1,272,944 | $ | 118,263 | $ | 1,154,681 | -48.1 | % | ||||||||||
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| ($ in thousands) | Net (Loss) Income | |||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||
| June 30, | ||||||||||||||||||||
| 2020 | 2019 | 2019 Divestitures(1) |
2019 Total(2) |
Change | ||||||||||||||||
| West |
$ | (104,011 | ) | $ | 15,665 | $ | — | $ | 15,665 | -764.0 | % | |||||||||
| Midwest |
(15,239 | ) | 43,590 | 9,887 | 33,703 | -145.2 | % | |||||||||||||
| South |
(24,910 | ) | 32,956 | — | 32,956 | -175.6 | % | |||||||||||||
| East |
(32,647 | ) | 27,149 | 5,229 | 21,920 | -248.9 | % | |||||||||||||
| Central |
(15,728 | ) | 25,948 | — | 25,948 | -160.6 | % | |||||||||||||
| Corporate and Other |
(83,099 | ) | (88,143 | ) | — | (88,143 | ) | -5.7 | % | |||||||||||
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| Total Net (Loss) Income |
$ | (275,634 | ) | $ | 57,165 | $ | 15,116 | $ | 42,049 | -755.5 | % | |||||||||
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| ($ in thousands, except per share data) | Adjusted EBITDA | |||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||
| June 30, | ||||||||||||||||||||
| 2020 | 2019 | 2019 Divestitures(1) |
2019 Total(2) |
Change | ||||||||||||||||
| West |
$ | 20,359 | $ | 58,348 | $ | — | $ | 58,348 | -65.1 | % | ||||||||||
| Midwest |
26,435 | 73,077 | 16,654 | 56,423 | -53.1 | % | ||||||||||||||
| South |
15,228 | 67,780 | — | 67,780 | -77.5 | % | ||||||||||||||
| East |
12,337 | 86,922 | 10,737 | 76,185 | -83.8 | % | ||||||||||||||
| Central |
33,490 | 77,925 | — | 77,925 | -57.0 | % | ||||||||||||||
| Corporate and Other |
(15,685 | ) | (18,739 | ) | — | (18,739 | ) | -16.3 | % | |||||||||||
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| Total Adjusted EBITDA(3) |
$ | 92,164 | $ | 345,313 | $ | 27,391 | $ | 317,922 | -71.0 | % | ||||||||||
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| Net (Loss) Income |
$ | (275,634 | ) | $ | 57,165 | |||||||||||||||
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| Basic EPS |
$ | (3.49 | ) | $ | 0.74 | |||||||||||||||
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| Diluted EPS |
$ | (3.49 | ) | $ | 0.73 | |||||||||||||||
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| (1) | Figures are for Presque 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 three and six months ended June 30, 2019. |
| (2) | Total figures for the three and six months ended June 30, 2019 exclude the results of operations for Presque 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 three and six months ended June 30, 2019. 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. |
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| (3) | 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 net (loss) income, which the Company believes is the most comparable financial measure calculated in accordance with GAAP. |
Balance Sheet and Liquidity
As of June 30, 2020, legacy Eldorado Resorts had $2.7 billion of debt outstanding. Total cash and cash equivalents were $950.5 million, excluding restricted cash.
“We have a strong liquidity position which will allow us to weather short term weakness due to COVID-19. For new Caesars Entertainment, Inc. we successfully executed an $8 billion debt raise on June 19, 2020 which further enhances our pro forma liquidity,” said Bret Yunker, Chief Financial Officer.
Combined Eldorado and Caesars Results
The company has posted certain financial metrics of the combined company for the period January 1, 2019 to June 30, 2020. A presentation of these results can be located at https://investor.caesars.com.
Conference Call Information
The company will host a conference call to discuss the company’s results on Thursday, August 6, 2020 at 2 p.m. Pacific Time. Participants should dial 877-637-3676, or 832-412-1752 for international callers, and enter Conference ID 3580348 approximately 10 minutes before the call start time. The call will also be accessible on the Investor Relations section of Caesars Entertainment’s website at https://investor.caesars.com.
About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. is the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe® and Eldorado® brand names. Caesars Entertainment offers diversified amenities and one-of-a-kind destinations, with a focus on building loyalty and value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars Entertainment is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. For more information, please visit www.caesars.com/corporate.
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
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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. These risks and uncertainties include: (a) the effects of the COVID-19 public health emergency, including (i) the impact of the actions taken to contain the public health emergency or mitigate its impact, (ii) the direct and indirect economic effects of the public health emergency and measures to contain it (including various state governments’, tribal authorities’ and/or regulatory authorities’ issuance of directives, mandates, orders or similar actions restricting freedom of movement and business operations, such as travel restrictions, border closures, business closures, limitations on public gatherings, quarantines and “shelter-at-home” orders, any of which may result in the closure of business operations) and (iii) changes and instability in global, national and regional economic activity and financial market activity as a result of the COVID-19 public health emergency and the impact on consumer discretionary spending and travel; (b) risks related to the combination of the Company and Caesars Entertainment Corporation (CEC) (the “merger”) and the integration of their respective businesses and assets; (c) potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger; (d) the possibility that the anticipated benefits of the merger, including cost savings and expected synergies, are not realized when expected or at all; (e) the impact of divestitures that are required as a condition to receipt of required regulatory approvals for the merger; (f) risks associated with increased leverage and additional rental expense resulting from debt financing and real estate transactions undertaken in connection with the merger; (g) competitive responses to the merger; (h) legislative, regulatory and economic developments; and (i) additional factors discussed in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s and CEC’s respective most recent Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. Other unknown or unpredictable factors may also cause actual results to differ materially from those projected by the forward-looking statements.
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.
Source: Caesars Entertainment, Inc.; CZR
Investor Relations: Brian Agnew, bagnew@caesars.com; Charise Crumbley, ccrumbley@caesars.com, 800-318-0047
Media Relations: Celena Haas-Stacey, chaas@caesars.com
5
CAESARS ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
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| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Casino and pari-mutuel commissions |
$ | 101,479 | $ | 457,162 | $ | 441,228 | $ | 927,848 | ||||||||
| Food and beverage |
6,567 | 75,356 | 62,813 | 150,637 | ||||||||||||
| Hotel |
8,916 | 78,391 | 57,292 | 143,175 | ||||||||||||
| Other |
9,508 | 26,212 | 38,206 | 51,284 | ||||||||||||
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| Net revenues |
126,470 | 637,121 | 599,539 | 1,272,944 | ||||||||||||
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| EXPENSES: | ||||||||||||||||
| Casino and pari-mutuel commissions |
43,354 | 203,240 | 202,510 | 413,546 | ||||||||||||
| Food and beverage |
8,250 | 59,497 | 61,505 | 119,882 | ||||||||||||
| Hotel |
5,846 | 25,136 | 28,114 | 48,786 | ||||||||||||
| Other |
1,179 | 10,723 | 10,360 | 21,972 | ||||||||||||
| Marketing and promotions |
5,105 | 32,080 | 30,058 | 64,381 | ||||||||||||
| General and administrative |
64,862 | 117,431 | 156,537 | 237,319 | ||||||||||||
| Corporate |
13,050 | 21,051 | 29,532 | 37,805 | ||||||||||||
| Impairment charges |
— | — | 160,758 | 958 | ||||||||||||
| Depreciation and amortization |
48,939 | 56,533 | 99,372 | 114,290 | ||||||||||||
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| Total operating expenses |
190,585 | 525,691 | 778,746 | 1,058,939 | ||||||||||||
| (Loss) gain on sale or disposal of property and equipment |
(65 | ) | (366 | ) | 1,393 | 21,952 | ||||||||||
| Transaction expenses |
(12,697 | ) | (7,292 | ) | (21,991 | ) | (9,186 | ) | ||||||||
| Loss from unconsolidated affiliates |
(1,450 | ) | (1,222 | ) | (1,702 | ) | (617 | ) | ||||||||
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| Operating (loss) income |
(78,327 | ) | 102,550 | (201,507 | ) | 226,154 | ||||||||||
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| OTHER EXPENSE: |
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| Interest expense, net |
(68,136 | ) | (71,798 | ) | (134,600 | ) | (145,308 | ) | ||||||||
| Loss on extinguishment of debt |
— | — | (158 | ) | — | |||||||||||
| Unrealized gain (loss) on investments and marketable securities |
12,806 | (1,398 | ) | (10,202 | ) | (2,858 | ) | |||||||||
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| Total other expense |
(55,330 | ) | (73,196 | ) | (144,960 | ) | (148,166 | ) | ||||||||
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| (Loss) income before income taxes |
(133,657 | ) | 29,354 | (346,467 | ) | 77,988 | ||||||||||
| Benefit (provision) for income taxes |
33,661 | (10,418 | ) | 70,833 | (20,823 | ) | ||||||||||
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| Net (loss) income |
$ | (99,996 | ) | $ | 18,936 | $ | (275,634 | ) | $ | 57,165 | ||||||
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| Net (loss) income per share of common stock: |
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| Basic |
$ | (1.25 | ) | $ | 0.24 | $ | (3.49 | ) | $ | 0.74 | ||||||
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| Diluted |
$ | (1.25 | ) | $ | 0.24 | $ | (3.49 | ) | $ | 0.73 | ||||||
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| Weighted average basic shares outstanding |
80,053,676 | 77,682,759 | 79,009,373 | 77,625,303 | ||||||||||||
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| Weighted average diluted shares outstanding |
80,053,676 | 78,725,289 | 79,009,373 | 78,657,552 | ||||||||||||
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6
CAESARS ENTERTAINMENT, INC.
SUMMARY INFORMATION AND RECONCILIATION OF
NET (LOSS) INCOME TO ADJUSTED EBITDA
($ in thousands)
| Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||
| West | Midwest | South | East | Central | Corporate | Total | ||||||||||||||||||||||
| Net (loss) income |
$ | (12,711 | ) | $ | 1,378 | $ | (10,912 | ) | $ | (30,456 | ) | $ | (20,452 | ) | $ | (26,843 | ) | $ | (99,996 | ) | ||||||||
| Interest expense, net |
5,295 | (32 | ) | 4,196 | 12,842 | 13,505 | 32,330 | 68,136 | ||||||||||||||||||||
| Benefit for income taxes |
(5,392 | ) | (931 | ) | (2,757 | ) | (3,617 | ) | (1,247 | ) | (19,717 | ) | (33,661 | ) | ||||||||||||||
| Unrealized gain on investments and marketable securities |
— | — | — | — | — | (12,806 | ) | (12,806 | ) | |||||||||||||||||||
| Depreciation and amortization |
13,299 | 4,148 | 6,786 | 11,046 | 11,793 | 1,867 | 48,939 | |||||||||||||||||||||
| Stock-based compensation |
— | 1 | 1 | — | — | 4,227 | 4,229 | |||||||||||||||||||||
| Transaction expenses(1) |
— | — | — | — | — | 12,697 | 12,697 | |||||||||||||||||||||
| Other(2) |
243 | 84 | 210 | 237 | (6 | ) | 1,311 | 2,079 | ||||||||||||||||||||
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| Adjusted EBITDA |
$ | 734 | $ | 4,648 | $ | (2,476 | ) | $ | (9,948 | ) | $ | 3,593 | $ | (6,934 | ) | $ | (10,383 | ) | ||||||||||
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| Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
| West | Midwest | South | East | Central | Corporate | Total | ||||||||||||||||||||||
| Net (loss) income |
$ | 11,348 | $ | 21,435 | $ | 12,747 | $ | 15,981 | $ | 13,070 | $ | (55,645 | ) | $ | 18,936 | |||||||||||||
| Interest expense, net |
4,982 | (1 | ) | 4,353 | 12,691 | 13,306 | 36,467 | 71,798 | ||||||||||||||||||||
| (Benefit) provision for income taxes |
4,283 | 7,578 | 1,923 | 6,541 | 1,657 | (11,564 | ) | 10,418 | ||||||||||||||||||||
| Unrealized loss on investments and marketable securities |
— | — | — | — | — | 1,398 | 1,398 | |||||||||||||||||||||
| Depreciation and amortization |
13,508 | 7,714 | 9,850 | 12,240 | 11,480 | 1,741 | 56,533 | |||||||||||||||||||||
| Stock-based compensation |
— | 10 | — | — | — | 6,499 | 6,509 | |||||||||||||||||||||
| Transaction expenses(1) |
— | — | — | — | — | 7,292 | 7,292 | |||||||||||||||||||||
| Other(3) |
184 | 17 | 236 | (35 | ) | 89 | 5,286 | 5,777 | ||||||||||||||||||||
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| Adjusted EBITDA |
$ | 34,305 | $ | 36,753 | $ | 29,109 | $ | 47,418 | $ | 39,602 | $ | (8,526 | ) | $ | 178,661 | |||||||||||||
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| Divestitures: | West | Midwest | South | East | Central | Corporate | Total | |||||||||||||||||||||
| Net income |
$ | — | $ | 4,737 | $ | — | $ | 3,107 | $ | — | $ | — | $ | 7,844 | ||||||||||||||
| Provision for income taxes |
— | 1,241 | — | 1,156 | — | — | 2,397 | |||||||||||||||||||||
| Depreciation and amortization |
— | 1,950 | — | 1,643 | — | — | 3,593 | |||||||||||||||||||||
| Stock-based compensation |
— | 4 | — | — | — | — | 4 | |||||||||||||||||||||
| Other(3) |
— | — | — | (2 | ) | — | — | (2 | ) | |||||||||||||||||||
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| Adjusted EBITDA(4) |
$ | — | $ | 7,932 | $ | — | $ | 5,904 | $ | — | $ | — | $ | 13,836 | ||||||||||||||
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| Excluding Divestitures: | West | Midwest | South | East | Central | Corporate | Total | |||||||||||||||||||||
| Net (loss) income |
$ | 11,348 | $ | 16,698 | $ | 12,747 | $ | 12,874 | $ | 13,070 | $ | (55,645 | ) | $ | 11,092 | |||||||||||||
| Interest expense, net |
4,982 | (1 | ) | 4,353 | 12,691 | 13,306 | 36,467 | 71,798 | ||||||||||||||||||||
| (Benefit) provision for income taxes |
4,283 | 6,337 | 1,923 | 5,385 | 1,657 | (11,564 | ) | 8,021 | ||||||||||||||||||||
| Unrealized loss on investments and marketable securities |
— | — | — | — | — | 1,398 | 1,398 | |||||||||||||||||||||
| Depreciation and amortization |
13,508 | 5,764 | 9,850 | 10,597 | 11,480 | 1,741 | 52,940 | |||||||||||||||||||||
| Stock-based compensation |
— | 6 | — | — | — | 6,499 | 6,505 | |||||||||||||||||||||
| Transaction expenses(1) |
— | — | — | — | — | 7,292 | 7,292 | |||||||||||||||||||||
| Other(3) |
184 | 17 | 236 | (33 | ) | 89 | 5,286 | 5,779 | ||||||||||||||||||||
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| Adjusted EBITDA(5) |
$ | 34,305 | $ | 28,821 | $ | 29,109 | $ | 41,514 | $ | 39,602 | $ | (8,526 | ) | $ | 164,825 | |||||||||||||
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7
| Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||
| West | Midwest | South | East | Central | Corporate | Total | ||||||||||||||||||||||
| Net loss |
$ | (104,011 | ) | $ | (15,239 | ) | $ | (24,910 | ) | $ | (32,647 | ) | $ | (15,728 | ) | $ | (83,099 | ) | $ | (275,634 | ) | |||||||
| Interest expense, net |
10,466 | (42 | ) | 8,529 | 25,661 | 26,933 | 63,053 | 134,600 | ||||||||||||||||||||
| Benefit for income taxes |
(16,720 | ) | (3,658 | ) | (4,286 | ) | (3,229 | ) | (1,285 | ) | (41,655 | ) | (70,833 | ) | ||||||||||||||
| Loss on extinguishment of debt |
— | — | — | — | — | 158 | 158 | |||||||||||||||||||||
| Unrealized loss on investments and marketable securities |
— | — | — | — | — | 10,202 | 10,202 | |||||||||||||||||||||
| Depreciation and amortization |
27,237 | 8,670 | 13,906 | 22,287 | 23,556 | 3,716 | 99,372 | |||||||||||||||||||||
| Stock-based compensation |
— | 3 | 3 | — | — | 9,965 | 9,971 | |||||||||||||||||||||
| Transaction expenses(1) |
— | — | — | — | — | 21,991 | 21,991 | |||||||||||||||||||||
| Other(2) |
103,387 | 36,701 | 21,986 | 265 | 14 | (16 | ) | 162,337 | ||||||||||||||||||||
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| Adjusted EBITDA |
$ | 20,359 | $ | 26,435 | $ | 15,228 | $ | 12,337 | $ | 33,490 | $ | (15,685 | ) | $ | 92,164 | |||||||||||||
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| Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
| West | Midwest | South | East | Central | Corporate | Total | ||||||||||||||||||||||
| Net (loss) income |
$ | 15,665 | $ | 43,590 | $ | 32,956 | $ | 27,149 | $ | 25,948 | $ | (88,143 | ) | $ | 57,165 | |||||||||||||
| Interest expense, net |
10,072 | 3 | 8,701 | 25,530 | 26,580 | 74,422 | 145,308 | |||||||||||||||||||||
| (Benefit) provision for income taxes |
5,677 | 13,252 | 4,881 | 9,695 | 2,575 | (15,257 | ) | 20,823 | ||||||||||||||||||||
| Unrealized loss on investments and marketable securities |
— | — | — | — | — | 2,858 | 2,858 | |||||||||||||||||||||
| Depreciation and amortization |
26,651 | 16,135 | 20,865 | 24,389 | 22,690 | 3,560 | 114,290 | |||||||||||||||||||||
| Stock-based compensation |
— | 25 | 9 | 7 | — | 11,416 | 11,457 | |||||||||||||||||||||
| Transaction expenses(1) |
— | — | — | — | — | 9,186 | 9,186 | |||||||||||||||||||||
| Other(3) |
283 | 72 | 368 | 152 | 132 | (16,781 | ) | (15,774 | ) | |||||||||||||||||||
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| Adjusted EBITDA |
$ | 58,348 | $ | 73,077 | $ | 67,780 | $ | 86,922 | $ | 77,925 | $ | (18,739 | ) | $ | 345,313 | |||||||||||||
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| Divestitures: | West | Midwest | South | East | Central | Corporate | Total | |||||||||||||||||||||
| Net income |
$ | — | $ | 9,887 | $ | — | $ | 5,229 | $ | — | $ | — | $ | 15,116 | ||||||||||||||
| Interest expense, net |
— | — | — | 23 | — | — | 23 | |||||||||||||||||||||
| Provision for income taxes |
— | 2,616 | — | 1,730 | — | — | 4,346 | |||||||||||||||||||||
| Depreciation and amortization |
— | 4,140 | — | 3,670 | — | — | 7,810 | |||||||||||||||||||||
| Stock-based compensation |
— | 11 | — | 7 | — | — | 18 | |||||||||||||||||||||
| Other(3) |
— | — | — | 78 | — | — | 78 | |||||||||||||||||||||
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| Adjusted EBITDA(6) |
$ | — | $ | 16,654 | $ | — | $ | 10,737 | $ | — | $ | — | $ | 27,391 | ||||||||||||||
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| Excluding Divestitures: | West | Midwest | South | East | Central | Corporate | Total | |||||||||||||||||||||
| Net (loss) income |
$ | 15,665 | $ | 33,703 | $ | 32,956 | $ | 21,920 | $ | 25,948 | $ | (88,143 | ) | $ | 42,049 | |||||||||||||
| Interest expense, net |
10,072 | 3 | 8,701 | 25,507 | 26,580 | 74,422 | 145,285 | |||||||||||||||||||||
| (Benefit) provision for income taxes |
5,677 | 10,636 | 4,881 | 7,965 | 2,575 | (15,257 | ) | 16,477 | ||||||||||||||||||||
| Unrealized loss on investments and marketable securities |
— | — | — | — | — | 2,858 | 2,858 | |||||||||||||||||||||
| Depreciation and amortization |
26,651 | 11,995 | 20,865 | 20,719 | 22,690 | 3,560 | 106,480 | |||||||||||||||||||||
| Stock-based compensation |
— | 14 | 9 | — | — | 11,416 | 11,439 | |||||||||||||||||||||
| Transaction expenses(1) |
— | — | — | — | — | 9,186 | 9,186 | |||||||||||||||||||||
| Other(3) |
283 | 72 | 368 | 74 | 132 | (16,781 | ) | (15,852 | ) | |||||||||||||||||||
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| Adjusted EBITDA(5) |
$ | 58,348 | $ | 56,423 | $ | 67,780 | $ | 76,185 | $ | 77,925 | $ | (18,739 | ) | $ | 317,922 | |||||||||||||
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| (1) | Transaction expenses primarily represent costs related to the acquisition of Caesars for the three and six months ended June 30, 2020 and 2019, and costs related to the acquisitions of Elgin and Tropicana for the three and six months ended June 30, 2019. |
| (2) | Other, for the three and six months ended June 30, 2020, is comprised of severance expense, (gain) loss on the sale or disposal of property and equipment, equity in income (loss) of unconsolidated affiliate and selling costs associated with the divestitures of Kansas City, Vicksburg, Shreveport, and MontBleu. For the six months ended June 30, 2020, other is also comprised of impairment charges. |
8
| (3) | Other, for the three and six months ended June 30, 2019, is comprised of severance expense, (gain) loss on the sale or disposal of property and equipment, equity in income (loss) of unconsolidated affiliate and the gain associated with the sales of Presque and Nemacolin. For the six months ended June 30, 2020, other is also comprised of impairment charges. |
| (4) | Figures are for Mountaineer, Cape Girardeau and Caruthersville for the three months ended June 30, 2019. |
| (5) | Total figures for the three months ended June 30, 2019 exclude the results of operations for Mountaineer, Cape Girardeau and Caruthersville. Total figures for the six months ended June 30, 2019 exclude the results of operations for Presque 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 six months ended June 30, 2019. 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. |
| (6) | Figures are for Presque 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 six months ended June 30, 2019. |
9