Consolidating Condensed Financial Information

3 Months Ended

Mar. 31, 2019

Condensed Consolidating Financial Information [Abstract]

Consolidating Condensed Financial Information

Note 17. Consolidating Condensed Financial Information

Certain of our wholly-owned subsidiaries have fully and unconditionally guaranteed on a joint and several basis, the payment of all obligations under our 7% Senior Notes due 2023, 6% Senior Notes due 2025, 6% Senior Notes due 2026 and Credit Facility.

As of March 31, 2019, following wholly-owned subsidiaries of the Company are guarantors, on a joint and several basis, under the 7% Senior Notes due 2023, 6% Senior Notes due 2025, 6% Senior Notes due 2026 and Credit Facility: Isle of Capri Casinos LLC; Eldorado Holdco LLC; Eldorado Resorts LLC; Eldorado Shreveport 1 LLC; Eldorado Shreveport 2 LLC; Eldorado Casino Shreveport Joint Venture; MTR Gaming Group Inc.; Mountaineer Park Inc.; Old PID, Inc. (f/k/a Presque Isle Downs, Inc.); Scioto Downs Inc.; Eldorado Limited Liability Company; Circus and Eldorado Joint Venture, LLC; CC Reno LLC; CCR Newco LLC; Black Hawk Holdings, L.L.C.; IC Holdings Colorado, Inc.; CCSC/Blackhawk, Inc.; IOC-Black Hawk Distribution Company, LLC; IOC-Black Hawk County, Inc.; Isle of Capri Bettendorf, L.C.; PPI, Inc.; Pompano Park Holdings LLC; IOC-Lula, Inc.; IOC-Kansas City, Inc.; IOC-Boonville, Inc.; IOC-Caruthersville, LLC; IOC Cape Girardeau, LLC; IOC-Vicksburg, Inc.; IOC-Vicksburg, L.L.C.; Rainbow Casino-Vicksburg Partnership, L.P.; IOC Holdings L.L.C.; St. Charles Gaming Company, L.L.C; Elgin Riverboat Resort–Riverboat Casino; Elgin Holdings I LLC; Elgin Holdings II LLC, PPI Development Holdings LLC; PPI Development LLC; Tropicana Entertainment, Inc.; New Tropicana Holdings, Inc.; New Tropicana OpCo, Inc.; TLH LLC; TropWorld Games LLC; TEI R7 Investment LLC; TEI Management Services LLC; Tropicana St. Louis LLC; TEI (St. Louis) RE, LLC; TEI (STLH), LLC; TEI (ES), LLC; Aztar Riverboat Holding Company, LLC; Aztar Indiana Gaming Company, LLC ; New Jazz Enterprises, LLC; Catfish Queen Partnership in Commendam; Centroplex Centre Convention Hotel LLC; Columbia Properties Tahoe, LLC; MB Development, LLC; Lighthouse Point, LLC and Tropicana Laughlin, LLC. Each of the subsidiaries’ guarantees is joint and several with the guarantees of the other subsidiaries.

The consolidating condensed balance sheet as of March 31, 2019 is as follows:

Balance Sheet	Eldorado Resorts, Inc. (Parent Obligor)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Current assets	$	69,364	$	294,777	$	24,184	$	(5,335	)	$	382,990
Intercompany receivables		—		235,559		21,914		(257,473	)		—
Investment in and advances to unconsolidated affiliates		130,338		1,902		—		—			132,240
Investments in subsidiaries		3,716,505		—		—		(3,716,505	)		—
Property and equipment, net		17,775		2,847,556		4,789		—			2,870,120
Other assets		63,993		2,673,033		24,574		(32,432	)		2,729,168
Total assets	$	3,997,975	$	6,052,827	$	75,461	$	(4,011,745	)	$	6,114,518

Current liabilities	$	94,871	$	283,102	$	16,706	$	(5,335	)	$	389,344
Intercompany payables		232,473		—		25,000		(257,473	)		—
Long-term financing obligation to GLPI		—		962,505		—		—			962,505
Long-term debt, less current maturities		2,435,971		621,180		—		—			3,057,151
Deferred income tax liabilities		—		236,454		—		(32,432	)		204,022
Other accrued liabilities		171,397		266,835		—		—			438,232
Stockholders’ equity		1,063,263		3,682,751		33,755		(3,716,505	)		1,063,264
Total liabilities and stockholders’ equity	$	3,997,975	$	6,052,827	$	75,461	$	(4,011,745	)	$	6,114,518

The consolidating condensed balance sheet as of December 31, 2018 is as follows:

Balance Sheet	Eldorado Resorts, Inc. (Parent Obligor)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Current assets	$	48,268	$	497,309	$	27,619	$	—		$	573,196
Intercompany receivables		—		11,885		23,988		(35,873	)		—
Investment in and advances to unconsolidated affiliates		—		1,892		—		—			1,892
Investments in subsidiaries		3,648,961		—		—		(3,648,961	)		—
Property and equipment, net		18,555		2,859,271		4,780		—			2,882,606
Other assets		35,072		2,423,807		26,674		(31,785	)		2,453,768
Total assets	$	3,750,856	$	5,794,164	$	83,061	$	(3,716,619	)	$	5,911,462

Current liabilities	$	48,579	$	328,319	$	25,279	$	—		$	402,177
Intercompany payables		10,873		—		25,000		(35,873	)		—
Long-term financing obligation to GLPI		—		959,835		—		—			959,835
Long-term debt, less current maturities		2,640,046		621,193		34		—			3,261,273
Deferred income tax liabilities		—		231,795		—		(31,785	)		200,010
Other accrued liabilities		22,206		36,808		—		—			59,014
Stockholders’ equity		1,029,152		3,616,214		32,748		(3,648,961	)		1,029,153
Total liabilities and stockholders’ equity	$	3,750,856	$	5,794,164	$	83,061	$	(3,716,619	)	$	5,911,462

The consolidating condensed statement of operations for the three months ended March 31, 2019 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Revenues:
Gaming and pari-mutuel commissions	$	—			466,441		$	4,410		$	—		$	470,851
Non-gaming		1,397			161,502			2,073			—			164,972
Net revenues		1,397			627,943			6,483			—			635,823

Operating expenses:
Gaming and pari-mutuel commissions		—			207,142			3,164			—			210,306
Non-gaming		—			94,884			400			—			95,284
Marketing and promotions		—			32,053			248			—			32,301
General and administrative		—			118,552			1,336			—			119,888
Corporate		16,141			529			84			—			16,754
Impairment charges		—			958			—			—			958
Management fee		(4,735	)		4,735			—			—			—
Depreciation and amortization		1,150			56,607			—			—			57,757
Total operating expenses		12,556			515,460			5,232			—			533,248

Gain on sale or disposal of property and equipment		409			21,396			513			—			22,318
Transaction expenses		(1,227	)		(475	)		(192	)		—			(1,894	)
Income (loss) from unconsolidated affiliates		655			(50	)		—			—			605
Operating (loss) income		(11,322	)		133,354			1,572			—			123,604

Interest expense, net		(37,432	)		(35,834	)		(244	)		—			(73,510	)
Unrealized loss on restricted investments		(1,460	)		—			—			—			(1,460	)
Subsidiary income (loss)		72,255			—			—			(72,255	)		—
Income (loss) before income taxes		22,041			97,520			1,328			(72,255	)		48,634
Income tax benefit (provision)		16,188			(26,265	)		(328	)		—			(10,405	)
Net income (loss)	$	38,229		$	71,255		$	1,000		$	(72,255	)	$	38,229

The consolidating condensed statement of operations for the three months ended March 31, 2018 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Revenues:
Gaming and pari-mutuel commissions	$	—		$	335,793		$	7,735		$	—		$	343,528
Non-gaming		—			94,023			2,641			—			96,664
Net revenues		—			429,816			10,376			—			440,192

Operating expenses:
Gaming and pari-mutuel commissions		—			164,303			5,248			—			169,551
Non-gaming		—			63,975			712			—			64,687
Marketing and promotions		—			20,835			466			—			21,301
General and administrative		—			72,427			1,775			—			74,202
Corporate		10,294			322			953			—			11,569
Impairment charges		—			9,815			—			—			9,815
Management fee		(5,137	)		5,137			—			—			—
Depreciation and amortization		772			30,601			161			—			31,534
Total operating expenses		5,929			367,415			9,315			—			382,659

Loss on sale or disposal of property and equipment		—			(706	)		—			—			(706	)
Transaction expenses		(2,118	)		(430	)		—			—			(2,548	)
Loss from unconsolidated affiliates		—			(85	)		—			—			(85	)
Operating (loss) income		(8,047	)		61,180			1,061			—			54,194

Interest expense, net		(24,432	)		(6,286	)		(533	)		—			(31,251	)
Subsidiary income (loss)		43,305			—			—			(43,305	)		—
Income (loss) before income taxes		10,826			54,894			528			(43,305	)		22,943
Income tax benefit (provision)		10,029			(12,303	)		186			—			(2,088	)
Net income (loss)	$	20,855		$	42,591		$	714		$	(43,305	)	$	20,855

The consolidating condensed statement of cash flows for the three months ended March 31, 2019 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries		Eldorado Resorts, Inc. Consolidated
	(in thousands)
Net cash provided by (used in) operating activities	$	13,524		$	53,239		$	(1,323	)	$	—	$	65,440
INVESTING ACTIVITIES:
Purchase of property and equipment, net		(1,154	)		(37,198	)		(8	)		—		(38,360	)
Proceeds from sale of property and equipment, net of cash sold		550			168,997			(1,602	)		—		167,945
Purchase of restricted investments		—			—			(80	)		—		(80	)
Net cash (used in) provided by investing activities		(604	)		131,799			(1,690	)		—		129,505
FINANCING ACTIVITIES:
Payments under Revolving Credit Facility		(205,000	)		—			—			—		(205,000	)
Net proceeds from (payments to) related parties		221,599			(223,672	)		2,073			—		—
Payments on other long-term payables		(23	)		(12	)		(83	)		—		(118	)
Debt issuance costs		(386	)		—			—			—		(386	)
Taxes paid related to net share settlement of equity awards		(4,322	)		—			—			—		(4,322	)
Net cash provided by (used in) financing activities		11,868			(223,684	)		1,990			—		(209,826	)
Increase (decrease) in cash, cash equivalents and restricted cash		24,788			(38,646	)		(1,023	)		—		(14,881	)
Cash, cash equivalents and restricted cash, beginning of period		12,844			222,672			11,175			—		246,691
Cash, cash equivalents and restricted cash, end of period	$	37,632		$	184,026		$	10,152		$	—	$	231,810

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	$	37,632			170,099			9,152		$	—	$	216,883
Restricted cash		—			7,892			—			—		7,892
Restricted and escrow cash included in other noncurrent assets		—			6,035			1,000			—		7,035
Total cash, cash equivalents and restricted cash	$	37,632		$	184,026		$	10,152		$	—	$	231,810

The consolidating condensed statement of cash flows for the three months ended March 31, 2018 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries		Eldorado Resorts, Inc. Consolidated
	(in thousands)
Net cash (used in) provided by operating activities	$	(7,128	)	$	87,253		$	(2,118	)	$	—	$	78,007
INVESTING ACTIVITIES:
Purchase of property and equipment, net		(1,233	)		(19,011	)		(1,027	)		—		(21,271	)
Proceeds from sale of property and equipment		—			150			—			—		150
Net cash used in investing activities		(1,233	)		(18,861	)		(1,027	)		—		(21,121	)
FINANCING ACTIVITIES:
Net proceeds from (payments to) related parties		62,560			(66,660	)		4,100			—		—
Payments on other long-term payables		(22	)		(78	)		(70	)		—		(170	)
Debt issuance costs		(304	)		—			—			—		(304	)
Taxes paid related to net share settlement of equity awards		(7,502	)		—			—			—		(7,502	)
Net cash provided by (used in) financing activities		54,732			(66,738	)		4,030			—		(7,976	)
INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		46,371			1,654			885			—		48,910
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR		13,836			118,483			15,430			—		147,749
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	60,207		$	120,137		$	16,315		$	—	$	196,659

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	$	59,490		$	116,394		$	7,254		$	—	$	183,138
Restricted cash		717			2,743			199			—		3,659
Restricted cash included in other noncurrent assets		—			1,000			8,862			—		9,862
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH	$	60,207		$	120,137		$	16,315		$	—	$	196,659