EX-99.1 9 a2021q3cei-ex991financiali.htm EX-99.1 Document
Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
Exhibit. Supplemental Consolidating Financial Information
The following tables present the balance sheets as of September 30, 2021 and December 31, 2020, statements of operations and cash flows for the three and nine months ended September 30, 2021 and 2020, and Adjusted EBITDA for the three and nine months ended September 30, 2021 of Caesars Resort Collection, LLC (“CRC”), as it consolidates into CEI as a wholly-owned subsidiary. “Other Operations, Eliminations” presents the operations of CEI’s other subsidiaries, including eliminations of intercompany transactions. CEI consolidated balances do not include CRC until the period starting from July 20, 2020. The tables have been recast for all periods presented as Horseshoe Hammond no longer met the held for sale criteria in September 2021. See further discussion in Note 1 - Basis of Presentation, of Caesars Entertainment, Inc.’s quarterly report for the quarter ended September 30, 2021 on Form 10-Q. Additionally, reclassifications to Discontinued operations have not been presented for periods prior to the Merger.
The consolidating condensed balance sheets as of September 30, 2021 and December 31, 2020 are as follows:
September 30, 2021December 31, 2020
(In millions)CRCOther Operations,
Eliminations		CEI ConsolidatedCRCOther Operations,
Eliminations		CEI Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$877 $195 $1,072 $392 $1,384 $1,776 
Restricted cash and investments22 280 302 9 2,012 2,021 
Accounts receivable, net341 97 438 267 75 342 
Due from affiliates— — — 613 (569)44 
Inventories33 12 45 30 14 44 
Prepayments and other current assets149 107 256 159 94 253 
Assets held for sale25 3,787 3,812 871 712 1,583 
Total current assets1,447 4,478 5,925 2,341 3,722 6,063 
Investments in and advances to unconsolidated affiliates— 203 203 — 173 173 
Property and equipment, net11,744 2,785 14,529 12,165 2,570 14,735 
Gaming rights and other intangibles, net3,378 1,875 5,253 3,181 1,102 4,283 
Goodwill9,014 1,953 10,967 9,013 851 9,864 
Other assets, net1,469 616 2,085 1,443 (176)1,267 
Total assets$27,052 $11,910 $38,962 $28,143 $8,242 $36,385 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable$147 $193 $340 $112 $55 $167 
Accrued interest124 92 216 46 183 229 
Accrued other liabilities1,019 667 1,686 851 412 1,263 
Due to affiliates313 (313)— 12 (12)— 
Current portion of long-term debt67 3 70 67 — 67 
Liabilities related to assets held for sale11 2,655 2,666 548 239 787 
Total current liabilities1,681 3,297 4,978 1,636 877 2,513 
Long-term financing obligation11,171 1,240 12,411 11,064 1,231 12,295 
Long-term debt7,576 6,877 14,453 8,304 5,769 14,073 
Long-term debt to related party 15 (15)— 15 (15)— 
Deferred income taxes1,455 (258)1,197 1,223 (57)1,166 
Other long-term liabilities574 396 970 682 622 1,304 
Total liabilities22,472 11,537 34,009 22,924 8,427 31,351 
STOCKHOLDERS' EQUITY:


Caesars stockholders’ equity4,570 320 4,890 5,202 (186)5,016 
Noncontrolling interests10 53 63 17 1 18 
Total stockholders’ equity4,580 373 4,953 5,219 (185)5,034 
Total liabilities and stockholders’ equity$27,052 $11,910 $38,962 $28,143 $8,242 $36,385 

Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)

The consolidating condensed statements of operations for the three months ended September 30, 2021 and 2020 are as follows:
Three Months Ended September 30, 2021Three Months Ended September 30, 2020
(In millions)CRCOther Operations,
Eliminations		CEI Consolidated
CRC (a)
Other Operations,
Eliminations		CEI Consolidated
REVENUES:
Casino and pari-mutuel commissions$1,042 $468 $1,510 $828 $153 $981 
Food and beverage295 52 347 117 10 127 
Hotel423 88 511 179 21 200 
Other283 34 317 150 (15)135 
Net revenues2,043 642 2,685 1,274 169 1,443 
EXPENSES:
Casino and pari-mutuel commissions464 366 830 432 61 493 
Food and beverage175 35 210 87 5 92 
Hotel104 26 130 60 3 63 
Other109 5 114 70 (17)53 
General and administrative326 160 486 308 30 338 
Corporate70 16 86 70 20 90 
Depreciation and amortization218 58 276 225 — 225 
Transaction costs and other operating costs14 7 21 118 102 220 
Total operating expenses1,480 673 2,153 1,370 204 1,574 
Operating income (loss)563 (31)532 (96)(35)(131)
OTHER EXPENSE:
Interest expense, net(421)(158)(579)(422)(63)(485)
Loss on extinguishment of debt(107)(10)(117)— (173)(173)
Other income (loss)(1)(152)(153)(8)17 9 
Total other expense(529)(320)(849)(430)(219)(649)
Income (loss) from continuing operations before income taxes34 (351)(317)(526)(254)(780)
Benefit (provision) for income taxes(1)91 90 (189)51 (138)
Net income (loss) from continuing operations, net of income taxes33 (260)(227)(715)(203)(918)
Discontinued operations, net of income taxes10 (14)(4)(7)— (7)
Net income (loss)43 (274)(231)(722)(203)(925)
Net income attributable to noncontrolling interests(1)(1)(2)(1)— (1)
Net income (loss) attributable to Caesars$42 $(275)$(233)$(723)$(203)$(926)
____________________
(a)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.

Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
The consolidating condensed statements of operations for the nine months ended September 30, 2021 and 2020 are as follows:
Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
(In millions)CRCOther Operations,
Eliminations		CEI Consolidated
CRC (a)
Other Operations,
Eliminations		CEI Consolidated
REVENUES:
Casino and pari-mutuel commissions$2,979 $1,329 $4,308 $1,979 $(557)$1,422 
Food and beverage677 120 797 470 (280)190 
Hotel930 192 1,122 527 (270)257 
Other669 83 752 460 (286)174 
Net revenues5,255 1,724 6,979 3,436 (1,393)2,043 
EXPENSES:
Casino and pari-mutuel commissions1,339 772 2,111 1,206 (489)717 
Food and beverage401 83 484 388 (234)154 
Hotel256 61 317 199 (108)91 
Other250 12 262 243 (180)63 
General and administrative896 388 1,284 867 (364)503 
Corporate171 57 228 167 (47)120 
Impairment charges— — — 65 96 161 
Depreciation and amortization676 166 842 724 (400)324 
Transaction costs and other operating costs51 62 113 155 88 243 
Total operating expenses4,040 1,601 5,641 4,014 (1,638)2,376 
Operating income (loss)1,215 123 1,338 (578)245 (333)
OTHER EXPENSE:
Interest expense, net(1,255)(479)(1,734)(1,058)438 (620)
Loss on extinguishment of debt(107)(33)(140)— (173)(173)
Other income (loss)(5)(171)(176)(14)13 (1)
Total other expense(1,367)(683)(2,050)(1,072)278 (794)
Income (loss) from continuing operations before income taxes(152)(560)(712)(1,650)523 (1,127)
Benefit (provision) for income taxes71 96 167 (4)(63)(67)
Net income (loss) from continuing operations, net of income taxes(81)(464)(545)(1,654)460 (1,194)
Discontinued operations, net of income taxes(22)(16)(38)(7)— (7)
Net income (loss)(103)(480)(583)(1,661)460 (1,201)
Net (income) loss attributable to noncontrolling interests(2)— (2)3 (4)(1)
Net income (loss) attributable to Caesars$(105)$(480)$(585)$(1,658)$456 $(1,202)
____________________
(a)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.











Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
The consolidating condensed statements of cash flows for the nine months ended September 30, 2021 and 2020 are as follows:
Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
(In millions)CRCOther Operations,
Eliminations		CEI Consolidated
CRC (a)
Other Operations,
Eliminations		CEI Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities$1,729 $(755)$974 $(713)$510 $(203)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net(189)(124)(313)(246)151 (95)
Former Caesars acquisition, net of cash acquired.— — — — (6,357)(6,357)
Acquisition of William Hill, net of cash acquired— (1,551)(1,551)— — — 
Purchase of additional interest in Horseshoe Baltimore, net of cash consolidated— (5)(5)— — — 
Acquisition of gaming rights and trademarks(262)(20)(282)(65)45 (20)
Proceeds from sale of businesses, property and equipment, net of cash sold289 420 709 9 222 231 
Proceeds from the sale of investments— 206 206 — — — 
Proceeds from insurance related to property damage— 44 44 — — — 
Investments in unconsolidated affiliates— (39)(39)— (1)(1)
Net cash used in investing activities(162)(1,069)(1,231)(302)(5,940)(6,242)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt and revolving credit facilities108 1,200 1,308 3,817 5,948 9,765 
Repayments of long-term debt and revolving credit facilities(1,048)(77)(1,125)(2,396)(430)(2,826)
Cash paid to settle convertible notes— (367)(367)— (574)(574)
Proceeds from sale-leaseback financing arrangement— — — 3,219 — 3,219 
Financing obligation payments— — — (58)9 (49)
Transactions with parent(117)117 — (4,384)4,384 — 
Debt issuance and extinguishment costs— (42)(42)— (356)(356)
Proceeds from issuance of common stock— — — — 772 772 
Taxes paid related to net share settlement of equity awards— (33)(33)— (8)(8)
Net cash (used in) provided by financing activities(1,057)798 (259)198 9,745 9,943 
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Cash flows from operating activities(16)(39)(55)4 (1)3 
Cash flows from investing activities(2)(1,451)(1,453)(3)— (3)
Cash flow from financing activities— 591 591 — — — 
Net cash from (used in) discontinued operations(18)(899)(917)1 (1)— 
Change in cash, cash equivalents, and restricted cash classified as assets held for sale— 10 10 (77)77 — 
Effect of foreign currency exchange rates on cash— 31 31 — — — 
Increase (decrease) in cash, cash equivalents and restricted cash492 (1,884)(1,392)(893)4,391 3,498 
Cash, cash equivalents and restricted cash, beginning of period411 3,869 4,280 1,422 (1,205)217 
Cash, cash equivalents and restricted cash, end of period$903 $1,985 $2,888 $529 $3,186 $3,715 
____________________
(a)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.

Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
The reconciliations of net income (loss) attributable to Caesars to Adjusted EBITDA for the three and nine months ended September 30, 2021 are as follows:
Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
(In millions)CRCOther Operations,
Eliminations		CEI ConsolidatedCRCOther Operations,
Eliminations		CEI Consolidated
Net income (loss) attributable to Caesars$42 $(275)$(233)$(105)$(480)$(585)
Net income attributable to noncontrolling interests1 1 2 2 — 2 
Discontinued operations, net of income taxes(10)14 4 22 16 38 
Benefit for income tax1 (91)(90)(71)(96)(167)
Other (income) loss 1 152 153 5 171 176 
Loss on extinguishment of debt107 10 117 107 33 140 
Interest expense421 158 579 1,255 479 1,734 
Depreciation and amortization218 58 276 676 166 842 
Transaction costs and other operating costs14 7 21 51 62 113 
Stock-based compensation expense 18 3 21 37 27 64 
Other items10 10 20 32 20 52 
Adjusted EBITDA$823 $47 $870 $2,011 $398 $2,409