LAS VEGAS, Feb. 25, 2020 /PRNewswire/ -- Caesars
Entertainment Corporation (NASDAQ: CZR) ("CEC," "Caesars," "Caesars
Entertainment," or the "Company") today reported fourth quarter and
full-year 2019 results as summarized in the discussion below, which
highlights certain GAAP and non-GAAP financial measures on a
consolidated basis.
Fourth Quarter Highlights
- Fourth quarter net revenues increased 2.6%, or $54 million, from $2.12
billion to $2.17 billion.
- Fourth quarter income from operations increased 77.0%, or
$77 million, from $100 million to $177
million.
- Fourth quarter net income/(loss) decreased $502 million, from income of $198 million to a loss of $304 million.
- Non-GAAP adjusted EBITDA increased 2.8%, or $16 million, from $567
million to $583 million.
- Non-GAAP adjusted EBITDA, excluding Rio, increased 3.4%, or
$19 million, to $572 million.
Full Year Highlights
- Full year net revenues increased 4.2%, or $351 million, from $8.39
billion to $8.74 billion.
- Full year income from operations decreased 16.4%, or
$121 million, from $739 million to $618
million.
- Full year net income/(loss) decreased $1.50 billion, from income of $303 million to a loss of $1.20 billion.
- Non-GAAP adjusted EBITDA increased 4.2%, or $97 million, from $2.31
billion to $2.41 billion.
"Caesars Entertainment delivered another quarter of solid
operational performance," said Tony
Rodio, President and Chief Executive Officer of Caesars
Entertainment. "Caesars' results were largely driven by the strong
demand at our Las Vegas
properties, excellent cost controls, and the addition of sports
betting in several states which drove increased visitation. In
addition, our focus on costs and operating efficiencies across the
company contributed to the excellent performance." he added.
Additional Developments
Completed Sale of the Rio All-Suite Hotel &
Casino
On December 5, 2019, the Company
announced it has completed the previously announced sale of
the Rio All-Suite Hotel & Casino for $516.3
million. Caesars will continue to manage and operate the Rio for a
minimum of two years through a lease agreement, and the property
will remain part of the Caesars Rewards network during the term of
the lease.
Stockholders Approve Merger of Caesars Entertainment and
Eldorado Resorts
On November 15, 2019, Caesars
Entertainment and Eldorado Resorts, Inc. announced that at separate
Special Meetings of Stockholders, their respective stockholders
approved certain actions in connection with the Company's proposed
merger with Eldorado Resorts, Inc. (the "Merger"). The transaction
is expected to be consummated in the first half of 2020 and remains
subject to the receipt of certain regulatory gaming and other
approvals, and other closing conditions.
Sale of Harrah's Reno
On January 15, 2020, Caesars
Entertainment and VICI Properties Inc. announced an agreement to
sell Harrah's Reno for
$50 million. The proceeds of the
transaction shall be split 75% to VICI and 25% to Caesars. Under
the terms of the agreement, Caesars will continue to operate the
property upon closing of the transaction, which will allow Caesars
to cease operations at the property during the second half of
2020.
Basis of Presentation
Certain additional non-GAAP financial measures have been added
to highlight the results of the Company. "Hold adjusted" results
are adjusted to reflect the hold we achieved compared to the hold
we expected. See the table at the end of this press release for the
reconciliation of non-GAAP to GAAP presentations.
This release also includes the indicators ADR and RevPAR. See
Supplemental Information in this release for information regarding
how we define ADR and RevPAR. Our definition and calculation of ADR
and RevPAR may be different than the definition and calculation of
similarly titled indicators presented by other companies.
Financial Results
Caesars views each property as an operating segment and
aggregates such properties into three regionally-focused reportable
segments: (i) Las Vegas, (ii)
Other U.S. and (iii) All Other, which is consistent with how
Caesars manages the business. The results of each reportable
segment presented below are consistent with the way management
assesses these results and allocates resources, which is a
consolidated view that adjusts for the effect of certain
transactions between reportable segments within Caesars. "All
Other" includes managed, international and other properties as well
as parent and other adjustments to reconcile to consolidated
Caesars results.
Net
Revenues
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
Las Vegas
|
$
|
989
|
|
|
$
|
949
|
|
|
$
|
40
|
|
|
4.2%
|
|
|
$
|
3,919
|
|
|
$
|
3,753
|
|
|
$
|
166
|
|
|
4.4%
|
|
Other U.S.
|
1,032
|
|
|
1,014
|
|
|
18
|
|
|
1.8%
|
|
|
4,225
|
|
|
4,047
|
|
|
178
|
|
|
4.4%
|
|
All Other
|
148
|
|
|
152
|
|
|
(4)
|
|
|
(2.6)%
|
|
|
598
|
|
|
591
|
|
|
7
|
|
|
1.2%
|
|
Caesars
|
$
|
2,169
|
|
|
$
|
2,115
|
|
|
$
|
54
|
|
|
2.6%
|
|
|
$
|
8,742
|
|
|
$
|
8,391
|
|
|
$
|
351
|
|
|
4.2%
|
|
During the fourth quarter of 2019, net revenues increased
$54 million as compared to 2018
driven by growth in all business verticals, with significant growth
in Las Vegas due to healthy
consumer demand and a higher cash customer mix. Other U.S. net
revenues increased $18 million year
over year primarily due to growth in Iowa and Indiana as a result of our new sportsbooks and
better results in Atlantic City.
All Other net revenues decreased $4
million year over year, primarily due to lower gaming
volumes in the UK, offset by one-time payments to CIE for early
terminations of WSOP licensing agreements. Across all of our casino
properties, hold had a favorable impact of $5 million to $10
million this quarter compared to the prior year, and was
$10 million to $15 million above our expectations.
During the year ended December 31, 2019, net revenues
increased $351 million as compared to
2018 driven primarily by the acquisition of Centaur in July 2018, strong Las
Vegas results and favorable hold. These positive factors
were offset by lower gaming volume at our Atlantic City properties as a result of
increased competition and inclement weather across some of our
properties. Across all of our casino properties, hold had a
favorable impact of $60 million to
$65 million this year compared to the
prior year and was $30 million to
$35 million above our
expectations.
Income from
Operations
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
Las Vegas
|
$
|
224
|
|
|
$
|
181
|
|
|
$
|
43
|
|
|
23.8%
|
|
|
$
|
560
|
|
|
$
|
716
|
|
|
$
|
(156)
|
|
|
(21.8)%
|
|
Other U.S.
|
57
|
|
|
45
|
|
|
12
|
|
|
26.7%
|
|
|
525
|
|
|
434
|
|
|
91
|
|
|
21.0%
|
|
All Other
|
(104)
|
|
|
(126)
|
|
|
22
|
|
|
17.5%
|
|
|
(467)
|
|
|
(411)
|
|
|
(56)
|
|
|
(13.6)%
|
|
Caesars
|
$
|
177
|
|
|
$
|
100
|
|
|
$
|
77
|
|
|
77.0%
|
|
|
$
|
618
|
|
|
$
|
739
|
|
|
$
|
(121)
|
|
|
(16.4)%
|
|
During the fourth quarter of 2019, income from operations
increased $77 million primarily due
to a $54 million increase in net
revenues in the fourth quarter of 2019 compared with 2018, as
explained above. The decrease in operating expenses of $23 million also contributed to the increase of
income from operations. The decrease in operating expenses was
primarily due to a decrease in depreciation and amortization
expense of $24 million, due to high
accelerated depreciation in 2018 related to certain renovation
projects in 2018, and lower impairment charges related to goodwill
compared to 2018 and lower impairment charges related to tangible
and other intangible assets related to Horseshoe Hammond in 2019.
These decreases were partially offset by an increase in property,
general, administrative and other primarily due to expenses related
to payroll and our sports partnerships.
During the year ended December 31, 2019, income from
operations decreased $121 million
compared with 2018 due to an increase in operating expenses of
$472 million offset by an increase in
net revenue of $351 million in 2019
compared with 2018, as explained above. Operating expenses
increased $223 million as a result of
our acquisition of Centaur in 2018. Impairment of tangible and
other intangible assets increased by $406
million due to the recognition of impairment charges in 2019
related to land and buildings and gaming rights. These increases
were partially offset by a decrease of $151
million in depreciation and amortization expense, excluding
Centaur, primarily due to higher depreciation expense in 2018 from
disposals of property and equipment related to renovation projects
at certain Las Vegas properties
and accelerated depreciation of assets.
Net
Income/(Loss) Attributable to Caesars
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
Las Vegas
|
$
|
139
|
|
|
$
|
98
|
|
|
$
|
41
|
|
|
41.8%
|
|
|
$
|
229
|
|
|
$
|
392
|
|
|
$
|
(163)
|
|
|
(41.6)%
|
|
Other U.S.
|
(85)
|
|
|
(98)
|
|
|
13
|
|
|
13.3%
|
|
|
(46)
|
|
|
(122)
|
|
|
76
|
|
|
62.3%
|
|
All Other
|
(358)
|
|
|
198
|
|
|
(556)
|
|
|
*
|
|
|
(1,378)
|
|
|
33
|
|
|
(1,411)
|
|
|
*
|
|
Caesars
|
$
|
(304)
|
|
|
$
|
198
|
|
|
$
|
(502)
|
|
|
*
|
|
|
$
|
(1,195)
|
|
|
$
|
303
|
|
|
$
|
(1,498)
|
|
|
*
|
|
|
|
* Percentage is
not meaningful.
|
During the fourth quarter of 2019, net income/(loss)
attributable to Caesars decreased $502
million from net income of $198
million to net loss of $304
million due to an increase in other loss of $627 million primarily due to a change in the
fair value of the derivative liability related to the conversion
option of CEC's 5.00% convertible senior notes maturing in 2024
(the "CEC Convertible Notes"), offset by an increase of
$43 million in tax benefit and an
increase of $77 million in income
from operations, as explained above.
During the year ended December 31, 2019, net
income/(loss) attributable to Caesars decreased $1.5 billion from net income of $303 million to net loss of $1.2 billion due to an increase in other loss of
$1.38 billion primarily due to a year
over year change in the fair value of the derivative liability
related to the CEC Convertible Notes. In addition, a $44 million change in the fair value of disputed
claims liability related to Caesars Entertainment Operating
Company, Inc.'s emergence from bankruptcy in 2017, and an increase
in interest expense of $24 million as
a result of our failed sale-leaseback financing obligations also
contributed to the decrease of net income/(loss) attributable to
Caesars. Income from operations also decreased $121 million in 2019 compared with 2018, as
explained above. These were partially offset by an increase of
$20 million in tax benefit.
Adjusted EBITDA
(1)
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
(Dollars in
millions)
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
Las Vegas
|
$
|
363
|
|
|
$
|
351
|
|
|
$
|
12
|
|
|
3.4%
|
|
|
$
|
1,468
|
|
|
$
|
1,362
|
|
|
$
|
106
|
|
|
7.8%
|
|
Other U.S.
|
247
|
|
|
230
|
|
|
17
|
|
|
7.4%
|
|
|
1,052
|
|
|
1,014
|
|
|
38
|
|
|
3.7%
|
|
All Other
|
(27)
|
|
|
(14)
|
|
|
(13)
|
|
|
(92.9)%
|
|
|
(115)
|
|
|
(68)
|
|
|
(47)
|
|
|
(69.1)%
|
|
Caesars
|
$
|
583
|
|
|
$
|
567
|
|
|
$
|
16
|
|
|
2.8%
|
|
|
$
|
2,405
|
|
|
$
|
2,308
|
|
|
$
|
97
|
|
|
4.2%
|
|
|
|
|
|
|
(1) See the Reconciliation
of Net Income/(Loss) Attributable to Caesars Entertainment
Corporation to Adjusted EBITDA.
|
During the fourth quarter of 2019, adjusted EBITDA improved
$16 million as compared to 2018
driven primarily by the increase in revenues explained above and
excellent cost controls across the properties and corporate office,
including a reduction in payroll and professional services
expenses. This increase was offset by continued investments in
sports sponsorships. Across all of our casinos, hold had a
favorable impact of $0 to
$5 million year over year and was
$5 million to $10 million above our expectations. Excluding the
performance at Rio, adjusted EBITDA improved $19 million to $572
million as compared to 2018.
During the year ended December 31, 2019, adjusted
EBITDA improved $97 million as
compared to 2018 due to strong Las
Vegas results and the acquisition of Centaur in July 2018, offset by competition in Atlantic City and increased investments in
sports sponsorships. Across all of our casinos, hold had a
favorable impact of $40 million to
$45 million year over year and was
$20 million to $25 million above our expectations.
Cash and Available Revolver Capacity
(In
millions)
|
December 31,
2019
|
Cash and cash
equivalents
|
$
|
1,755
|
|
Revolver
capacity
|
1,200
|
|
Revolver capacity
committed to letters of credit
|
(64)
|
|
Total
liquidity
|
$
|
2,891
|
|
Conference Call Information
Caesars Entertainment Corporation (NASDAQ: CZR) will host a
conference call at 2:00 p.m. Pacific Time
Tuesday, February 25, 2020, to discuss its fourth
quarter and full year results, certain forward-looking information
and other matters related to Caesars Entertainment Corporation,
including certain financial and other information. The press
release, webcast, and presentation materials will be available on
the Investor Relations section of www.caesars.com.
If you would like to ask questions and be an active participant
in the call, you may dial 877-637-3676, or 832-412-1752 for
international callers, and enter Conference ID 9679718
approximately 10 minutes before the call start time. A recording of
the live call will be available on the Company's website for 90
days after the event. Supplemental materials have been posted on
the Caesars Entertainment Investor Relations website at
http://investor.caesars.com/events-and-presentations.
About Caesars
Caesars Entertainment is one of the world's most diversified
casino-entertainment providers and the most geographically diverse
U.S. casino-entertainment company. 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® and Horseshoe®
brand names. Caesars Entertainment's portfolio also includes the
Caesars Entertainment UK family of casinos. Caesars Entertainment
is focused on building loyalty and value with its guests through a
unique combination of great service, excellent products,
unsurpassed distribution, 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 Information
This release includes "forward-looking statements" intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. You can identify
these statements by the fact that they do not relate strictly to
historical or current facts. We have based these forward-looking
statements on our current expectations about future events.
Further, these statements contain words such as "may," "will,"
"project," " "expect," "believe," "anticipate," "intend,"
"continue," or "plan," or the negative of these words or other
words or expressions of similar meaning may identify
forward-looking statements. In particular, they include statements
relating to, among other things, the Merger, future actions, new
projects, strategies, future performance, the outcomes of
contingencies, such as legal proceedings, and future financial
results of Caesars. These forward-looking statements are based on
current expectations and projections about future events.
Investors are cautioned that forward-looking statements are not
guarantees of future performance or results and involve risks and
uncertainties that cannot be predicted or quantified, and,
consequently, the actual performance of Caesars
Entertainment may differ materially from that expressed or
implied by such forward-looking statements. Such risks and
uncertainties include, but are not limited to, the following
factors, and other factors described from time to time
in Caesars Entertainment's reports filed with
the Securities and Exchange Commission (including the
sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations"
contained therein):
- risks related to the Merger, including, but not limited to: (1)
the inability to complete the Merger due to the failure to satisfy
certain conditions to completion of the Merger, including the
receipt of certain gaming and other regulatory approvals related to
the Merger; (2) uncertainties as to the timing of the completion of
the Merger and the ability of each party to complete the Merger;
(3) disruption of our current plans and operations; (4) the
inability to retain and hire key personnel; (5) competitive
responses to the Merger; (6) termination fees and unexpected costs,
charges or expenses resulting from the Merger; (7) the outcome of
any legal proceedings instituted against us or our directors
related to the Merger Agreement; (8) potential adverse reactions or
changes to business relationships resulting from the announcement
or completion of the Merger; (9) the inability to obtain, or delays
in obtaining, cost savings and synergies from the Merger; (10)
delays, challenges and expenses associated with integrating the
combined companies' existing businesses and the indebtedness
planned to be incurred in connection with the Merger; and (11)
legislative, regulatory and economic developments;
- our ability to respond to changes in the industry, particularly
digital transformation, and to take advantage of the opportunity
for legalized sports betting in multiple jurisdictions in
the United States (which may
require third-party arrangements and/or regulatory approval);
- development of our announced convention center in Las Vegas, CAESARS FORUM, and certain of our
other announced projects are subject to risks associated with new
construction projects, including those described below;
- we may not be able to realize the anticipated benefits of our
acquisition of Centaur Holdings, LLC;
- the impact of our operating structure following CEOC's
emergence from bankruptcy;
- 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 effect of reductions in consumer discretionary spending due
to economic downturns or other factors and changes in consumer
demands;
- foreign regulatory policies, particularly in mainland
China or other countries in which
our customers reside or where we have operations, including
restrictions on foreign currency exchange or importation of
currency, and the judicial enforcement of gaming debts;
- 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 ability to use net operating losses to offset future
taxable income as anticipated;
- the ability to realize all of the anticipated benefits of
current or potential future acquisitions or divestitures;
- the ability to effectively compete against our
competitors;
- the financial results of our consolidated businesses;
- the impact of our substantial indebtedness, including its
impact on our ability to raise additional capital in the future and
react to changes in the economy, and lease obligations and the
restrictions in our debt and lease agreements;
- the ability to access available and reasonable financing or
additional capital on a timely basis and on acceptable terms or at
all, including our ability to refinance our indebtedness on
acceptable terms;
- the ability of our customer tracking, customer loyalty, and
yield management programs to continue to increase customer loyalty
and hotel sales;
- changes in the extensive governmental regulations to which we
are subject and (i) changes in laws, including increased tax rates,
smoking bans, regulations, or accounting standards; (ii)
third-party relations; and (iii) approvals, decisions, disciplines
and fines of courts, regulators, and governmental bodies;
- compliance with the extensive laws and regulations to which we
are subject, including applicable gaming laws, the Foreign Corrupt
Practices Act and other anti-corruption laws, and the Bank Secrecy
Act and other anti-money laundering laws;
- our ability to recoup costs of capital investments through
higher revenues;
- growth in consumer demand for non-gaming offerings;
- 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;
- our ability to protect our intellectual property rights and
damages caused to our brands due to the unauthorized use of our
brand names by third parties in ways outside of our control;
- the ability to timely and cost-effectively integrate companies
that we acquire into our operations;
- the ability to execute on our brand licensing and management
strategy is subject to third-party agreements and other risks
associated with new projects;
- not being able to realize all of our anticipated cost
savings;
- our ability to attract, retain, and motivate employees,
including in connection with the Merger;
- our ability to retain our performers or other entertainment
offerings on acceptable terms or at all;
- the risk of fraud, theft, and cheating;
- seasonal fluctuations resulting in volatility and an adverse
effect on our operating results;
- any impairments to goodwill, indefinite-lived intangible
assets, or long-lived assets that we may incur;
- 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;
- the impact of adverse legal proceedings and judicial and
governmental body actions, including gaming legislative action,
referenda, regulatory disciplinary actions (such as the outcome of
the British Gambling Commission's review of CEUK operations), and
fines and taxation;
- acts of war or terrorist incidents, disease, 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 facilities of ours;
- fluctuations in energy prices;
- work stoppages and other labor problems;
- our ability to collect on credit extended to our
customers;
- the effects of environmental and structural building conditions
relating to our properties and our exposure to environmental
liability, including as a result of unknown environmental
contamination;
- 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 for our assets on reasonable terms;
and
- the impact, if any, of unfunded pension benefits under
multi-employer pension plans.
Any forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995 and, as such, speak only
as of the date made. Caesars Entertainment disclaims any
obligation to update the forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date stated or, if no date
is stated, as of the date of this release.
CAESARS
ENTERTAINMENT CORPORATION
|
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
|
(UNAUDITED)
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
(In millions,
except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
|
|
|
|
|
|
|
Casino
|
$
|
1,108
|
|
|
$
|
1,100
|
|
|
$
|
4,448
|
|
|
$
|
4,247
|
|
Food and
beverage
|
402
|
|
|
392
|
|
|
1,618
|
|
|
1,574
|
|
Rooms
|
379
|
|
|
369
|
|
|
1,581
|
|
|
1,519
|
|
Other
revenue
|
213
|
|
|
189
|
|
|
824
|
|
|
789
|
|
Management
fees
|
14
|
|
|
14
|
|
|
59
|
|
|
60
|
|
Reimbursed management
costs
|
53
|
|
|
51
|
|
|
212
|
|
|
202
|
|
Net
revenues
|
2,169
|
|
|
2,115
|
|
|
8,742
|
|
|
8,391
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Direct
|
|
|
|
|
|
|
|
Casino
|
624
|
|
|
630
|
|
|
2,511
|
|
|
2,380
|
|
Food and
beverage
|
280
|
|
|
276
|
|
|
1,113
|
|
|
1,092
|
|
Rooms
|
122
|
|
|
117
|
|
|
486
|
|
|
472
|
|
Property, general,
administrative, and other
|
478
|
|
|
439
|
|
|
1,882
|
|
|
1,796
|
|
Reimbursable
management costs
|
53
|
|
|
51
|
|
|
212
|
|
|
202
|
|
Depreciation and
amortization
|
278
|
|
|
302
|
|
|
1,021
|
|
|
1,145
|
|
Impairment of
goodwill
|
27
|
|
|
43
|
|
|
27
|
|
|
43
|
|
Impairment of
tangible and other intangible assets
|
11
|
|
|
35
|
|
|
441
|
|
|
35
|
|
Corporate
expense
|
69
|
|
|
95
|
|
|
295
|
|
|
332
|
|
Other operating
costs
|
50
|
|
|
27
|
|
|
136
|
|
|
155
|
|
Total operating
expenses
|
1,992
|
|
|
2,015
|
|
|
8,124
|
|
|
7,652
|
|
Income from
operations
|
177
|
|
|
100
|
|
|
618
|
|
|
739
|
|
Interest
expense
|
(337)
|
|
|
(341)
|
|
|
(1,370)
|
|
|
(1,346)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Other
income/(loss)
|
(175)
|
|
|
452
|
|
|
(587)
|
|
|
791
|
|
Income/(loss) before
income taxes
|
(335)
|
|
|
211
|
|
|
(1,339)
|
|
|
183
|
|
Income tax
benefit/(provision)
|
30
|
|
|
(13)
|
|
|
141
|
|
|
121
|
|
Net
income/(loss)
|
(305)
|
|
|
198
|
|
|
(1,198)
|
|
|
304
|
|
Net (income)/loss
attributable to noncontrolling interests
|
1
|
|
|
—
|
|
|
3
|
|
|
(1)
|
|
Net income/(loss)
attributable to Caesars
|
$
|
(304)
|
|
|
$
|
198
|
|
|
$
|
(1,195)
|
|
|
$
|
303
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share - basic and diluted
|
|
|
|
|
|
|
|
Basic earnings/(loss)
per share
|
$
|
(0.45)
|
|
|
$
|
0.29
|
|
|
$
|
(1.77)
|
|
|
$
|
0.44
|
|
Diluted loss per
share
|
(0.45)
|
|
|
(0.15)
|
|
|
(1.77)
|
|
|
(0.25)
|
|
CAESARS
ENTERTAINMENT CORPORATION
|
CONSOLIDATED
CONDENSED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
As of December
31,
|
(In
millions)
|
2019
|
|
2018
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents ($8 and $14 attributable to our VIEs)
|
$
|
1,755
|
|
|
$
|
1,491
|
|
Restricted
cash
|
117
|
|
|
115
|
|
Receivables,
net
|
437
|
|
|
457
|
|
Due from affiliates,
net
|
41
|
|
|
6
|
|
Prepayments and other
current assets ($4 and $6 attributable to our VIEs)
|
174
|
|
|
155
|
|
Inventories
|
35
|
|
|
41
|
|
Assets held for
sale
|
50
|
|
|
—
|
|
Total current
assets
|
2,609
|
|
|
2,265
|
|
Property and
equipment, net ($212 and $137 attributable to our VIEs)
|
14,976
|
|
|
16,045
|
|
Goodwill
|
4,012
|
|
|
4,044
|
|
Intangible assets
other than goodwill
|
2,824
|
|
|
2,977
|
|
Restricted
cash
|
12
|
|
|
51
|
|
Deferred income
taxes
|
2
|
|
|
10
|
|
Deferred charges and
other assets ($26 and $35 attributable to our VIEs)
|
910
|
|
|
383
|
|
Total
assets
|
$
|
25,345
|
|
|
$
|
25,775
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable ($97
and $41 attributable to our VIEs)
|
$
|
444
|
|
|
$
|
399
|
|
Accrued expenses and
other current liabilities ($2 and $1 attributable to our
VIEs)
|
1,323
|
|
|
1,217
|
|
Interest
payable
|
33
|
|
|
56
|
|
Contract
liabilities
|
178
|
|
|
144
|
|
Current portion of
financing obligations
|
21
|
|
|
20
|
|
Current portion of
long-term debt
|
64
|
|
|
164
|
|
Total current
liabilities
|
2,063
|
|
|
2,000
|
|
Financing
obligations
|
10,070
|
|
|
10,057
|
|
Long-term
debt
|
8,478
|
|
|
8,801
|
|
Deferred income
taxes
|
555
|
|
|
730
|
|
Deferred credits and
other liabilities ($18 and $5 attributable to our VIEs)
|
1,968
|
|
|
849
|
|
Total
liabilities
|
23,134
|
|
|
22,437
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
7
|
|
|
7
|
|
Treasury
stock
|
(510)
|
|
|
(485)
|
|
Additional paid-in
capital
|
14,262
|
|
|
14,124
|
|
Accumulated
deficit
|
(11,567)
|
|
|
(10,372)
|
|
Accumulated other
comprehensive loss
|
(61)
|
|
|
(24)
|
|
Total Caesars
stockholders' equity
|
2,131
|
|
|
3,250
|
|
Noncontrolling
interests
|
80
|
|
|
88
|
|
Total stockholders'
equity
|
2,211
|
|
|
3,338
|
|
Total liabilities and
stockholders' equity
|
$
|
25,345
|
|
|
$
|
25,775
|
|
CAESARS
ENTERTAINMENT CORPORATION
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
Years Ended
December 31,
|
(In
millions)
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
Net
income/(loss)
|
$
|
(1,198)
|
|
|
$
|
304
|
|
Adjustments to
reconcile net income/(loss) to cash flows from operating
activities:
|
|
|
|
Interest accrued on
financing obligations
|
131
|
|
|
142
|
|
Deferred income
taxes
|
(152)
|
|
|
(145)
|
|
Depreciation and
amortization
|
1,021
|
|
|
1,145
|
|
Loss on
extinguishment of debt
|
—
|
|
|
1
|
|
Change in fair value
of derivative liability
|
620
|
|
|
(697)
|
|
Operating lease
expense
|
35
|
|
|
—
|
|
Stock-based
compensation expense
|
88
|
|
|
79
|
|
Amortization of
deferred finance costs and debt discount/premium
|
17
|
|
|
15
|
|
Provision for
doubtful accounts
|
26
|
|
|
21
|
|
Impairment of
goodwill
|
27
|
|
|
43
|
|
Impairment of
intangible and tangible assets
|
441
|
|
|
35
|
|
Other non-cash
adjustments to net income/(loss)
|
17
|
|
|
(28)
|
|
Net changes
in:
|
|
|
|
Accounts
receivable
|
(9)
|
|
|
14
|
|
Due from affiliates,
net
|
(35)
|
|
|
5
|
|
Inventories,
prepayments and other current assets
|
(14)
|
|
|
76
|
|
Deferred charges and
other assets
|
20
|
|
|
(69)
|
|
Accounts
payable
|
6
|
|
|
(78)
|
|
Interest
payable
|
(24)
|
|
|
19
|
|
Accrued
expenses
|
11
|
|
|
(101)
|
|
Contract
liabilities
|
47
|
|
|
18
|
|
Operating lease
liability
|
(34)
|
|
|
—
|
|
Deferred credits and
other liabilities
|
(42)
|
|
|
(6)
|
|
Other
|
8
|
|
|
(7)
|
|
Cash flows provided by
operating activities
|
1,007
|
|
|
786
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of
property and equipment, net of change in related
payables
|
(829)
|
|
|
(565)
|
|
Acquisition of
businesses, net of cash and restricted cash acquired
|
—
|
|
|
(1,578)
|
|
Proceeds from sale of
Rio
|
470
|
|
|
—
|
|
Payments to acquire
certain gaming rights
|
—
|
|
|
(20)
|
|
Payments to acquire
investments
|
(13)
|
|
|
(22)
|
|
Proceeds from the
sale and maturity of investments
|
32
|
|
|
43
|
|
Other
|
12
|
|
|
7
|
|
Cash flows used in
investing activities
|
(328)
|
|
|
(2,135)
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
long-term debt and revolving credit facilities
|
—
|
|
|
1,167
|
|
Debt issuance and
extension costs and fees
|
(28)
|
|
|
(5)
|
|
Repayments of
long-term debt and revolving credit facilities
|
(414)
|
|
|
(1,130)
|
|
Proceeds from
sale-leaseback financing arrangement
|
—
|
|
|
745
|
|
Proceeds from the
issuance of common stock
|
47
|
|
|
6
|
|
Repurchase of common
stock
|
—
|
|
|
(311)
|
|
Taxes paid related to
net share settlement of equity awards
|
(28)
|
|
|
(22)
|
|
Financing obligation
payments
|
(22)
|
|
|
(173)
|
|
Contributions from
noncontrolling interest owners
|
—
|
|
|
20
|
|
Distributions to
noncontrolling interest owners
|
(1)
|
|
|
—
|
|
Cash flows provided
by/(used in) financing activities
|
(446)
|
|
|
297
|
|
|
|
|
|
Change in cash, cash
equivalents, and restricted cash classified as assets held for
sale
|
(6)
|
|
|
—
|
|
|
|
|
|
Net
increase/(decrease) in cash, cash equivalents, and restricted
cash
|
227
|
|
|
(1,052)
|
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
1,657
|
|
|
2,709
|
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
|
1,884
|
|
|
$
|
1,657
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
Cash paid for
interest
|
$
|
1,259
|
|
|
$
|
1,169
|
|
Cash paid for income
taxes
|
6
|
|
|
8
|
|
Other non-cash
investing and financing activities:
|
|
|
|
ROU assets obtained
in exchange for new operating lease liabilities
|
104
|
|
|
—
|
|
Change in accrued
capital expenditures
|
62
|
|
|
149
|
|
Deferred
consideration for acquisition of Centaur
|
—
|
|
|
66
|
|
Financing for sale of
Rio
|
34
|
|
|
—
|
|
CAESARS ENTERTAINMENT CORPORATION
SUPPLEMENTAL INFORMATION
Average daily rate ("ADR") is calculated as the cash or comp
revenue recognized during the period divided by the corresponding
rooms occupied. Total ADR is calculated as total room revenue
divided by total rooms occupied.
Revenue per available room ("RevPAR") is calculated as the total
room revenue recognized during the period divided by total room
nights available for the period.
Property earnings before interest, taxes, depreciation and
amortization ("EBITDA") is presented as a measure of the Company's
performance. Property EBITDA is defined as revenues less property
operating expenses and is comprised of net income/(loss) before (i)
interest expense, including finance obligation expenses, net of
interest capitalized and interest income, (ii) income tax
(benefit)/provision, (iii) depreciation and amortization, (iv)
corporate expenses, (v) certain items that the Company does not
consider indicative of its ongoing operating performance at an
operating property level, and (vi) lease payments associated with
our financing obligation. Included in Adjusted EBITDA is property
rent expense of $3 million and
$12 million for the three months and
year ended December 31, 2019, respectively, related to
certain land parcels leased from VICI.
In evaluating property EBITDA you should be aware that, in the
future, the Company may incur expenses that are the same or similar
to some of the adjustments in this presentation. The presentation
of Property EBITDA should not be construed as an inference that
future results will be unaffected by unusual or unexpected
items.
Property EBITDA is a non-GAAP financial measure commonly used in
our industry and should not be construed as an alternative to net
income/(loss) as an indicator of operating performance or as an
alternative to cash flow provided by operating activities as a
measure of liquidity (as determined in accordance with accounting
principles generally accepted in the
United States ("GAAP" or "U.S. GAAP")). Property EBITDA may
not be comparable to similarly titled measures reported by other
companies within the industry. Property EBITDA is included because
management uses property EBITDA to measure performance and allocate
resources, and believes that property EBITDA provides investors
with additional information consistent with that used by
management.
Adjusted EBITDA is defined as EBITDA further adjusted to exclude
certain non-cash and other items as exhibited in the following
reconciliation and is presented as a supplemental measure of the
Company's performance. Management believes that adjusted EBITDA
provides investors with additional information and allows a better
understanding of the results of operational activities separate
from the financial impact of decisions made for the long-term
benefit of the Company. In addition, compensation of management is
in part determined by reference to certain of such financial
information. As a result, we believe this supplemental information
is useful to investors who are trying to understand the results of
the Company.
Adjusted EBITDA margin is calculated as adjusted EBITDA divided
by net revenues. Adjusted EBITDA margin is included because
management uses adjusted EBITDA margin to measure performance and
allocate resources, and believes that adjusted EBITDA margin
provides investors with additional information consistent with that
used by management.
Because not all companies use identical calculations, the
presentation of adjusted EBITDA and adjusted EBITDA margin may not
be comparable to other similarly titled measures of other
companies.
In addition, we present adjusted EBITDA, further adjusted to
show the impact on the period of the hold we achieved versus the
hold we expected. Management believes presentation of this further
adjusted information allows a better understanding of the
materiality of those impacts relative to the Company's overall
performance.
The following tables reconcile net income/(loss) attributable to
Caesars Entertainment Corporation to property EBITDA and adjusted
EBITDA for the periods indicated and reconciles hold adjusted
results.
CAESARS
ENTERTAINMENT CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
RECONCILIATION OF
NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION
TO ADJUSTED EBITDA
|
|
|
Three Months Ended
December 31, 2019
|
|
Three Months Ended
December 31, 2018
|
(Dollars in
millions)
|
Las
Vegas
|
|
Other
U.S.
|
|
All Other
(f)
|
|
CEC
|
|
Las
Vegas
|
|
Other
U.S.
|
|
All Other
(f)
|
|
CEC
|
Net income/(loss)
attributable to Caesars
|
$
|
139
|
|
|
$
|
(85)
|
|
|
$
|
(358)
|
|
|
$
|
(304)
|
|
|
$
|
98
|
|
|
$
|
(98)
|
|
|
$
|
198
|
|
|
$
|
198
|
|
Net income/(loss)
attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
1
|
|
|
(1)
|
|
|
—
|
|
Income tax
(benefit)/provision
|
—
|
|
|
—
|
|
|
(30)
|
|
|
(30)
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
Other (income)/loss
(a)
|
3
|
|
|
(2)
|
|
|
174
|
|
|
175
|
|
|
1
|
|
|
—
|
|
|
(453)
|
|
|
(452)
|
|
Interest expense
1
|
82
|
|
|
144
|
|
|
111
|
|
|
337
|
|
|
82
|
|
|
142
|
|
|
117
|
|
|
341
|
|
Depreciation and
amortization 2
|
127
|
|
|
143
|
|
|
8
|
|
|
278
|
|
|
159
|
|
|
130
|
|
|
13
|
|
|
302
|
|
Impairment of
goodwill
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
17
|
|
|
26
|
|
|
43
|
|
Impairment of
tangible and other intangible assets
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
26
|
|
|
9
|
|
|
35
|
|
Corporate
expense
|
—
|
|
|
—
|
|
|
69
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
95
|
|
|
95
|
|
Other operating costs
(b)
|
10
|
|
|
6
|
|
|
34
|
|
|
50
|
|
|
10
|
|
|
8
|
|
|
9
|
|
|
27
|
|
Property
EBITDA
|
361
|
|
|
244
|
|
|
7
|
|
|
612
|
|
|
350
|
|
|
226
|
|
|
26
|
|
|
602
|
|
Corporate
expense
|
—
|
|
|
—
|
|
|
(69)
|
|
|
(69)
|
|
|
—
|
|
|
—
|
|
|
(95)
|
|
|
(95)
|
|
Stock-based
compensation expense (c)
|
2
|
|
|
3
|
|
|
21
|
|
|
26
|
|
|
2
|
|
|
3
|
|
|
19
|
|
|
24
|
|
Other items
(d)
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
(1)
|
|
|
1
|
|
|
36
|
|
|
36
|
|
Adjusted
EBITDA
|
$
|
363
|
|
|
$
|
247
|
|
|
$
|
(27)
|
|
|
$
|
583
|
|
|
$
|
351
|
|
|
$
|
230
|
|
|
$
|
(14)
|
|
|
$
|
567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
989
|
|
|
$
|
1,032
|
|
|
$
|
148
|
|
|
$
|
2,169
|
|
|
$
|
949
|
|
|
$
|
1,014
|
|
|
$
|
152
|
|
|
$
|
2,115
|
|
Adjusted EBITDA
margin (e)
|
36.7%
|
|
|
23.9%
|
|
|
(18.2)%
|
|
|
26.9%
|
|
|
37.0%
|
|
|
22.7%
|
|
|
(9.2)%
|
|
|
26.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on
debt
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
108
|
|
|
$
|
109
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
112
|
|
|
$
|
114
|
|
Interest expense on
financing obligations
|
81
|
|
|
144
|
|
|
3
|
|
|
228
|
|
|
82
|
|
|
140
|
|
|
5
|
|
|
227
|
|
1Interest expense
|
$
|
82
|
|
|
$
|
144
|
|
|
$
|
111
|
|
|
$
|
337
|
|
|
$
|
82
|
|
|
$
|
142
|
|
|
$
|
117
|
|
|
$
|
341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash payments on
financing obligations (incl. principal)
|
$
|
98
|
|
|
$
|
166
|
|
|
$
|
4
|
|
|
$
|
268
|
|
|
$
|
72
|
|
|
$
|
162
|
|
|
$
|
—
|
|
|
$
|
234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
$
|
83
|
|
|
$
|
54
|
|
|
$
|
8
|
|
|
$
|
145
|
|
|
$
|
111
|
|
|
$
|
63
|
|
|
$
|
13
|
|
|
$
|
187
|
|
Depreciation on
failed sale-leaseback assets
|
44
|
|
|
89
|
|
|
—
|
|
|
133
|
|
|
48
|
|
|
67
|
|
|
—
|
|
|
115
|
|
2Depreciation and
amortization
|
$
|
127
|
|
|
$
|
143
|
|
|
$
|
8
|
|
|
$
|
278
|
|
|
$
|
159
|
|
|
$
|
130
|
|
|
$
|
13
|
|
|
$
|
302
|
|
CAESARS
ENTERTAINMENT CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
RECONCILIATION OF
NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION
TO ADJUSTED EBITDA
|
|
|
Year Ended
December 31, 2019
|
|
Year Ended
December 31, 2018
|
(Dollars in
millions)
|
Las
Vegas
|
|
Other
U.S.
|
|
All Other
(f)
|
|
CEC
|
|
Las
Vegas
|
|
Other
U.S.
|
|
All Other
(f)
|
|
CEC
|
Net income/(loss)
attributable to Caesars
|
$
|
229
|
|
|
$
|
(46)
|
|
|
$
|
(1,378)
|
|
|
$
|
(1,195)
|
|
|
$
|
392
|
|
|
$
|
(122)
|
|
|
$
|
33
|
|
|
$
|
303
|
|
Net income/(loss)
attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
|
—
|
|
|
2
|
|
|
(1)
|
|
|
1
|
|
Income tax
benefit
|
—
|
|
|
—
|
|
|
(141)
|
|
|
(141)
|
|
|
—
|
|
|
—
|
|
|
(121)
|
|
|
(121)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Other (income)/loss
(a)
|
1
|
|
|
(1)
|
|
|
587
|
|
|
587
|
|
|
(3)
|
|
|
(2)
|
|
|
(786)
|
|
|
(791)
|
|
Interest expense
1
|
330
|
|
|
572
|
|
|
468
|
|
|
1,370
|
|
|
327
|
|
|
556
|
|
|
463
|
|
|
1,346
|
|
Depreciation and
amortization 2
|
495
|
|
|
455
|
|
|
71
|
|
|
1,021
|
|
|
582
|
|
|
501
|
|
|
62
|
|
|
1,145
|
|
Impairment of
goodwill
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
17
|
|
|
26
|
|
|
43
|
|
Impairment of
tangible and other intangible assets
|
380
|
|
|
11
|
|
|
50
|
|
|
441
|
|
|
—
|
|
|
26
|
|
|
9
|
|
|
35
|
|
Corporate
expense
|
—
|
|
|
—
|
|
|
295
|
|
|
295
|
|
|
—
|
|
|
—
|
|
|
332
|
|
|
332
|
|
Other operating costs
(b)
|
22
|
|
|
22
|
|
|
92
|
|
|
136
|
|
|
52
|
|
|
21
|
|
|
82
|
|
|
155
|
|
Property
EBITDA
|
1,457
|
|
|
1,040
|
|
|
41
|
|
|
2,538
|
|
|
1,350
|
|
|
999
|
|
|
100
|
|
|
2,449
|
|
Corporate
expense
|
—
|
|
|
—
|
|
|
(295)
|
|
|
(295)
|
|
|
—
|
|
|
—
|
|
|
(332)
|
|
|
(332)
|
|
Stock-based
compensation expense (c)
|
8
|
|
|
10
|
|
|
70
|
|
|
88
|
|
|
8
|
|
|
10
|
|
|
61
|
|
|
79
|
|
Other items
(d)
|
3
|
|
|
2
|
|
|
69
|
|
|
74
|
|
|
4
|
|
|
5
|
|
|
103
|
|
|
112
|
|
Adjusted
EBITDA
|
$
|
1,468
|
|
|
$
|
1,052
|
|
|
$
|
(115)
|
|
|
$
|
2,405
|
|
|
$
|
1,362
|
|
|
$
|
1,014
|
|
|
$
|
(68)
|
|
|
$
|
2,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
3,919
|
|
|
$
|
4,225
|
|
|
$
|
598
|
|
|
$
|
8,742
|
|
|
$
|
3,753
|
|
|
$
|
4,047
|
|
|
$
|
591
|
|
|
$
|
8,391
|
|
Adjusted EBITDA
margin (e)
|
37.5%
|
|
|
24.9%
|
|
|
(19.2)%
|
|
|
27.5%
|
|
|
36.3%
|
|
|
25.1%
|
|
|
(11.5)%
|
|
|
27.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on
debt
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
456
|
|
|
$
|
460
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
451
|
|
|
$
|
457
|
|
Interest expense on
financing obligations
|
327
|
|
|
571
|
|
|
12
|
|
|
910
|
|
|
325
|
|
|
552
|
|
|
12
|
|
|
889
|
|
1Interest expense
|
$
|
330
|
|
|
$
|
572
|
|
|
$
|
468
|
|
|
$
|
1,370
|
|
|
$
|
327
|
|
|
$
|
556
|
|
|
$
|
463
|
|
|
$
|
1,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash payments on
financing obligations (incl. principal)
|
$
|
318
|
|
|
$
|
494
|
|
|
$
|
10
|
|
|
$
|
822
|
|
|
$
|
248
|
|
|
$
|
477
|
|
|
$
|
—
|
|
|
$
|
725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
$
|
313
|
|
|
$
|
165
|
|
|
$
|
71
|
|
|
$
|
549
|
|
|
$
|
383
|
|
|
$
|
210
|
|
|
$
|
62
|
|
|
$
|
655
|
|
Depreciation on
failed sale-leaseback assets
|
182
|
|
|
290
|
|
|
—
|
|
|
472
|
|
|
199
|
|
|
291
|
|
|
—
|
|
|
490
|
|
2Depreciation and
amortization
|
$
|
495
|
|
|
$
|
455
|
|
|
$
|
71
|
|
|
$
|
1,021
|
|
|
$
|
582
|
|
|
$
|
501
|
|
|
$
|
62
|
|
|
$
|
1,145
|
|
CAESARS
ENTERTAINMENT CORPORATION
|
SUPPLEMENTAL
INFORMATION - 2019 DATA EXCLUDING RIO ALL-SUITE HOTEL & CASINO
("RIO")
|
RECONCILIATION OF
NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION
TO ADJUSTED EBITDA
|
|
|
Three Months Ended
December 31, 2019
|
|
Three Months Ended
December 31, 2019
|
(Dollars in
millions)
|
CEC
|
|
Less:
Rio
|
|
CEC
Excluding
Rio
|
|
Las
Vegas
|
|
Other
U.S.
|
|
All Other
(f)
|
|
CEC
Excluding
Rio
|
Net income/(loss)
attributable to Caesars
|
$
|
(304)
|
|
|
$
|
(2)
|
|
|
$
|
(306)
|
|
|
$
|
137
|
|
|
$
|
(85)
|
|
|
$
|
(358)
|
|
|
$
|
(306)
|
|
Net loss attributable
to noncontrolling interests
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Income tax
benefit
|
(30)
|
|
|
—
|
|
|
(30)
|
|
|
—
|
|
|
—
|
|
|
(30)
|
|
|
(30)
|
|
Other (income)/loss
(a)
|
175
|
|
|
—
|
|
|
175
|
|
|
3
|
|
|
(2)
|
|
|
174
|
|
|
175
|
|
Interest
expense
|
337
|
|
|
—
|
|
|
337
|
|
|
82
|
|
|
144
|
|
|
111
|
|
|
337
|
|
Depreciation and
amortization
|
278
|
|
|
(2)
|
|
|
276
|
|
|
125
|
|
|
143
|
|
|
8
|
|
|
276
|
|
Impairment of
goodwill
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
Impairment of
tangible and other intangible assets
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
Corporate
expense
|
69
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
69
|
|
Other operating costs
(b)
|
50
|
|
|
(7)
|
|
|
43
|
|
|
3
|
|
|
6
|
|
|
34
|
|
|
43
|
|
Property
EBITDA
|
612
|
|
|
(11)
|
|
|
601
|
|
|
350
|
|
|
244
|
|
|
7
|
|
|
601
|
|
Corporate
expense
|
(69)
|
|
|
—
|
|
|
(69)
|
|
|
—
|
|
|
—
|
|
|
(69)
|
|
|
(69)
|
|
Stock-based
compensation expense (c)
|
26
|
|
|
—
|
|
|
26
|
|
|
2
|
|
|
3
|
|
|
21
|
|
|
26
|
|
Other items
(d)
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
Adjusted
EBITDA
|
$
|
583
|
|
|
$
|
(11)
|
|
|
$
|
572
|
|
|
$
|
352
|
|
|
$
|
247
|
|
|
$
|
(27)
|
|
|
$
|
572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
2,169
|
|
|
$
|
(68)
|
|
|
$
|
2,101
|
|
|
$
|
921
|
|
|
$
|
1,032
|
|
|
$
|
148
|
|
|
$
|
2,101
|
|
Adjusted EBITDA
margin (e)
|
26.9%
|
|
|
16.2%
|
|
|
27.2%
|
|
|
38.2%
|
|
|
23.9%
|
|
|
(18.2)%
|
|
|
27.2%
|
|
|
|
|
|
|
|
(a)
|
Amounts include
changes in fair value of the derivative liability related to the
conversion option of the CEC Convertible Notes and the disputed
claims liability as well as interest and dividend
income.
|
(b)
|
Amounts primarily
represent costs incurred in connection with development activities
and reorganization activities, and/or recoveries associated with
such items, including acquisition and integration costs, contract
exit fees (including exiting the fully bundled sales system of NV
Energy for electric service at our Nevada properties), lease
termination costs (2018 only), regulatory settlements, weather
related property closure costs, severance costs, gains and losses
on asset sales, demolition costs, and project opening
costs.
|
(c)
|
Amounts represent
stock-based compensation expense related to shares, stock options,
restricted stock units, performance stock units, and market-based
stock units granted to the Company's employees.
|
(d
|
Amounts include
other add-backs and deductions to arrive at adjusted EBITDA but not
separately identified such as professional and consulting services,
sign-on and retention bonuses, business optimization expenses and
transformation expenses, litigation awards and
settlements.
|
(e)
|
Adjusted EBITDA
margin is calculated as adjusted EBITDA divided by net
revenues.
|
(f)
|
Amounts include
eliminating adjustments and other adjustments to reconcile to
consolidated CEC adjusted EBITDA.
|
CAESARS
ENTERTAINMENT CORPORATION
|
SUPPLEMENTAL
INFORMATION
|
RECONCILIATIONS OF
HOLD ADJUSTED REVENUE AND HOLD ADJUSTED EBITDA
|
|
|
Year Ended
December 31, 2019
|
|
Year Ended
December 31, 2018
|
|
|
|
|
(Dollars in
millions)
|
CEC
|
|
Favorable
Hold
|
|
Adjusted
CEC
|
|
CEC
|
|
Unfavorable
Hold
|
|
Adjusted
CEC
|
|
$
Change
|
|
%
Change
|
Net
revenues
|
$
|
8,742
|
|
|
$
|
(31)
|
|
|
$
|
8,711
|
|
|
$
|
8,391
|
|
|
$
|
28
|
|
|
$
|
8,419
|
|
|
$
|
292
|
|
|
3.5%
|
|
Adjusted
EBITDA
|
2,405
|
|
|
(21)
|
|
|
2,384
|
|
|
2,308
|
|
|
20
|
|
|
2,328
|
|
|
56
|
|
|
2.4%
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/caesars-entertainment-reports-fourth-quarter-and-full-year-2019-results-301011185.html
SOURCE Caesars Entertainment Corporation