Eldorado Resorts Reports Fourth Quarter Net Revenue of $671.8 Million, and Record Operating Income of $86.7 Million, Adjusted EBITDA of $161.3 Million and Adjusted EBITDA after Master Lease Payments of $139.4 Million
February 27, 2019
RENO, Nev.–(BUSINESS WIRE)–Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado,” “ERI,” or “the
Company”) today reported record operating results for the fourth quarter
and full year ended December 31, 2018. As outlined in the tables below,
the Company generated 2018 fourth quarter Consolidated Adjusted EBITDA
of $161.3 million and Consolidated Adjusted EBITDA, after $21.9 million
of Master Lease payments, of $139.4 million.
| Total Net Revenue | ||||||||||||||||||||||||||
| ($ in thousands, except per share data) | Three Months Ended | |||||||||||||||||||||||||
| December 31, | ||||||||||||||||||||||||||
| 2018 |
2018 Pre- |
2018 Total | 2017 |
2017 Pre- |
2017 |
Change | ||||||||||||||||||||
| West | $ | 136,981 | $ | – | $ | 136,981 | $ | 112,756 | $ | 26,662 | $ | 139,418 | (1.7 | )% | ||||||||||||
| Midwest | 95,774 | – | 95,774 | 97,587 | – | 97,587 | (1.9 | )% | ||||||||||||||||||
| South | 119,570 | – | 119,570 | 109,305 | 17,741 | 127,046 | (5.9 | )% | ||||||||||||||||||
| East | 200,697 | – | 200,697 | 110,113 | 85,180 | 195,293 | 2.8 | % | ||||||||||||||||||
| Central | 118,586 | – | 118,586 | – | 119,546 | 119,546 | (0.8 | )% | ||||||||||||||||||
| Corporate and Other | 152 | – | 152 | 140 | 36 | 176 | (13.6 | )% | ||||||||||||||||||
| Total Net Revenue | $ | 671,760 | $ | – | $ | 671,760 | $ | 429,901 | $ | 249,165 | $ | 679,066 | (1.1 | )% | ||||||||||||
| Operating Income | ||||||||||||||||||||||||||
| ($ in thousands, except per share data) | Three Months Ended | |||||||||||||||||||||||||
| December 31, | ||||||||||||||||||||||||||
| 2018 |
2018 Pre- |
2018 Total | 2017 |
2017 Pre- |
2017 |
Change | ||||||||||||||||||||
| West | $ | 20,650 | $ | – | $ | 20,650 | $ | 15,518 | $ | 2,020 | $ | 17,538 | 17.7 | % | ||||||||||||
| Midwest | 25,084 | – | 25,084 | 22,396 | – | 22,396 | 12.0 | % | ||||||||||||||||||
| South | 14,752 | – | 14,752 | (28,530 | ) | 609 | (27,921 | ) | (152.8 | )% | ||||||||||||||||
| East | 30,799 | – | 30,799 | 13,689 | (1,725 | ) | 11,964 | 157.4 | % | |||||||||||||||||
| Central | 21,372 | – | 21,372 | – | 22,926 | 22,926 | (6.8 | )% | ||||||||||||||||||
| Corporate and Other | (25,931 | ) | – | (25,931 | ) | 6,683 | (5,503 | ) | 1,180 | (2297.5 | )% | |||||||||||||||
|
Total Operating Income |
$ | 86,726 | $ | – | $ | 86,726 | $ | 29,756 | $ | 18,327 | $ | 48,083 | 80.4 | % | ||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||
| ($ in thousands, except per share data) | Three Months Ended | |||||||||||||||||||||||||
| December 31, | ||||||||||||||||||||||||||
| 2018 |
2018 Pre- |
2018 Total | 2017 |
2017 Pre- |
2017 |
Change | ||||||||||||||||||||
| West | $ | 34,572 | $ | – | $ | 34,572 | $ | 23,756 | $ | 5,117 | $ | 28,873 | 19.7 | % | ||||||||||||
| Midwest | 33,525 | – | 33,525 | 30,549 | – | 30,549 | 9.7 | % | ||||||||||||||||||
| South | 25,898 | – | 25,898 | 23,325 | 2,810 | 26,135 | (0.9 | )% | ||||||||||||||||||
| East | 43,678 | – | 43,678 | 20,404 | 9,416 | 29,820 | 46.5 | % | ||||||||||||||||||
| Central | 33,649 | – | 33,649 | – | 28,817 | 28,817 | 16.8 | % | ||||||||||||||||||
| Corporate and Other | (10,043 | ) | – | (10,043 | ) | (7,160 | ) | (4,878 | ) | (12,038 | ) | (16.6 | )% | |||||||||||||
| Total Adjusted EBITDA (4) | $ | 161,279 | $ | – | $ | 161,279 | $ | 90,874 | $ | 41,282 | $ | 132,156 | 22.0 | % | ||||||||||||
|
Net (Loss) Income |
$ | (120 | ) | $ | 88,938 | |||||||||||||||||||||
| Basic EPS | $ | 0.00 | $ | 1.16 | ||||||||||||||||||||||
| Diluted EPS | $ | 0.00 | $ | 1.14 | ||||||||||||||||||||||
|
Total Net Revenue |
|||||||||||||||||||||||||||
| ($ in thousands, except per share data) | Twelve Months Ended | ||||||||||||||||||||||||||
| December 31, | |||||||||||||||||||||||||||
| 2018 |
2018 Pre- |
2018 |
2017 |
2017 Pre- |
2017 |
Change | |||||||||||||||||||||
| West | $ | 483,532 | $ | 87,316 | $ | 570,848 | $ | 410,319 | $ | 158,536 | $ | 568,855 | 0.4 | % | |||||||||||||
| Midwest | 397,008 | – | 397,008 | 268,878 | 142,237 | 411,115 | (3.4 | )% | |||||||||||||||||||
| South | 461,181 | 51,711 | 512,892 | 338,259 | 211,742 | 550,001 | (6.7 | )% | |||||||||||||||||||
| East | 571,272 | 287,936 | 859,208 | 462,836 | 387,840 | 850,676 | 1.0 | % | |||||||||||||||||||
| Central | 142,485 | 349,241 | 491,726 | – | 471,806 | 471,806 | 4.2 | % | |||||||||||||||||||
| Corporate and Other | 529 | 94 | 623 | 506 | 1,551 | 2,057 | (69.7 | )% | |||||||||||||||||||
| Total Net Revenue | $ | 2,056,007 | $ | 776,298 | $ | 2,832,305 | $ | 1,480,798 | $ | 1,373,712 | $ | 2,854,510 | (0.8 | )% | |||||||||||||
| Operating Income | |||||||||||||||||||||||||||
| ($ in thousands, except per share data) | Twelve Months Ended | ||||||||||||||||||||||||||
| December 31, | |||||||||||||||||||||||||||
| 2018 |
2018 Pre- |
2018 |
2017 |
2017 Pre- |
2017 |
Change | |||||||||||||||||||||
| West | $ | 84,548 | $ | 13,635 | $ | 98,183 | $ | 66,108 | $ | 22,983 | $ | 89,091 | 10.2 | % | |||||||||||||
| Midwest | 105,809 | – | 105,809 | 62,071 | 34,819 | 96,890 | 9.2 | % | |||||||||||||||||||
| South | 64,851 | 355 | 65,206 | 3,680 | 32,809 | 36,489 | 78.7 | % | |||||||||||||||||||
| East | 97,963 | 46,261 | 144,224 | 68,101 | 79,135 | 147,236 | (2.0 | )% | |||||||||||||||||||
| Central | 24,240 | 70,105 | 94,345 | – | 85,717 | 85,717 | 10.1 | % | |||||||||||||||||||
| Corporate and Other | (67,308 | ) | (52,127 | ) | (119,435 | ) | (105,150 | ) | (28,503 | ) | (133,653 | ) | (10.6 | )% | |||||||||||||
| Total Operating Income | $ | 310,103 | $ | 78,229 | $ | 388,332 | $ | 94,810 | $ | 226,960 | $ | 321,770 | 20.7 | % | |||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||||
| ($ in thousands, except per share data) | Twelve Months Ended | ||||||||||||||||||||||||||
| December 31, | |||||||||||||||||||||||||||
| 2018 |
2018 Pre- |
2018 |
2017 |
2017 Pre- |
2017 |
Change | |||||||||||||||||||||
| West | $ | 126,189 | $ | 22,914 | $ | 149,103 | $ | 93,604 | $ | 39,260 | $ | 132,864 | 12.2 | % | |||||||||||||
| Midwest | 139,242 | – | 139,242 | 83,471 | 46,856 | 130,327 | 6.8 | % | |||||||||||||||||||
| South | 112,532 | 6,451 | 118,983 | 70,278 | 47,335 | 117,613 | 1.2 | % | |||||||||||||||||||
| East | 131,337 | 70,864 | 202,201 | 99,001 | 88,557 | 187,558 | 7.8 | % | |||||||||||||||||||
| Central | 39,499 | 93,691 | 133,190 | – | 112,788 | 112,788 | 18.1 | % | |||||||||||||||||||
| Corporate and Other | (31,869 | ) | (15,230 | ) | (47,099 | ) | (24,173 | ) | (23,453 | ) | (47,626 | ) | (1.1 | )% | |||||||||||||
| Total Adjusted EBITDA (4) | $ | 516,930 | $ | 178,690 | $ | 695,620 | $ | 322,181 | $ | 311,343 | $ | 633,524 | 9.8 | % | |||||||||||||
|
Net Income |
$ | 95,235 | $ | 73,380 | |||||||||||||||||||||||
| Basic EPS | $ | 1.23 | $ | 1.09 | |||||||||||||||||||||||
| Diluted EPS | $ | 1.22 | $ | 1.08 | |||||||||||||||||||||||
| (1) |
Figures are for Grand Victoria Casino (“GV”) for the period beginning January 1, 2018 and ending August 6, 2018 and for Tropicana Entertainment, Inc. (“TEI”) for the period beginning January 1, 2018 and ending September 30, 2018. Such figures are based on interim financial statements and have not been reviewed by the Company’s auditors. |
|
| (2) |
Total figures for 2018 include combined results of operations for ERI, TEI and GV and total figures for 2017 include combined results of operations for ERI, GV, TEI and Isle of Capri Casino (“Isle”) for periods preceding the date that ERI acquired GV, TEI and Isle, as applicable. Such presentation does not conform with 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 the operations reported by the Company. |
|
| (3) |
Figures are for GV and TEI for the three and twelve months ended December 31, 2017 and for Isle for four months ended April 30, 2017. In the case of Isle, such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to ERI’s fiscal quarterly calendar. Such figures are based on unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP. |
|
| (4) |
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 operating income (loss), which the Company believes is the most comparable financial measure calculated in accordance with GAAP. |
|
“Eldorado’s record fourth quarter results marked the conclusion of
another active and productive year for the Company. The fourth quarter
growth was broad based with Adjusted EBITDA rising at 24 of our 28
properties. Fourth quarter Adjusted EBITDA rose 22.0% to $161.3 million
on essentially flat revenues as our initiatives to improve operating
efficiencies and margins led to a 450 basis point year-over-year
improvement in our consolidated Adjusted EBITDA margin to 24.0%,” said
Tom Reeg, Chief Executive Officer of Eldorado.
“In addition to the record financial results we generated over the
course of 2018, we undertook a series of actions that we believe will
position Eldorado to further enhance shareholder value. First, we
continue to benefit from synergies realized from the 2017 Isle of Capri
transaction. Our experience in integrating and rationalizing cost
structures at acquired properties has resulted in strong and growing
contributions from the accretive Grand Victoria Casino and Tropicana
Entertainment transactions completed in the 2018 third and fourth
quarters, respectively.
“During the year we also established a joint venture with The Cordish
Companies to master plan, design and develop a new world-class,
mixed-use entertainment and hospitality destination utilizing the
significant real estate surrounding our Isle Casino Racing Pompano Park.
This joint venture is expected to bring new upscale retail, dining, and
entertainment to South Florida and allow us to develop Pompano’s
valuable real estate while sharing in the cost to transform the
non-casino portion of our South Florida property.
“We also positioned the Company to benefit from the expected expansion
of sports wagering and online poker and casino gaming through long term
agreements with William Hill and The Stars Group to access our licenses
for online sports wagering for real money online gaming and poker
operations and, in the case of William Hill, operate our retail
sportsbook. In connection with our agreements with William Hill and The
Stars Group, we received equity interests in William Hill US, William
Hill plc and The Stars Group, and we will also share in revenue
generated from betting and online gaming activities. Our partnerships
with Cordish, William Hill and The Stars Group are modeled, in part,
after our successful joint venture that developed and opened a hotel at
Scioto Downs in early 2017 and which has contributed to Scioto’s
positive operating results.
“These initiatives exemplify our commitment to enhancing shareholder
value through strategic transactions, return-focused property
enhancements and opportunistic partnerships to grow free cash flow and
further enhance our financial flexibility.”
Return of Capital, Balance Sheet and Liquidity
Pursuant to the Company’s previously-announced $150 million common stock
repurchase program, Eldorado repurchased 223,823 shares at an average
price of approximately $40.80 per share in the 2018 fourth quarter. The
Company has approximately $140.9 million remaining on its current stock
repurchase program.
At December 31, 2018, Eldorado had $230.8 million in cash and cash
equivalents, excluding restricted cash. Outstanding indebtedness at
December 31, 2018 totaled $3.3 billion, including approximately $245.0
million outstanding on the Company’s revolving credit facility.
Subsequent to the end of the quarter the Company paid down approximately
$150.0 million of its outstanding indebtedness. Capital expenditures in
the fourth quarter of 2018 and for the full year totaled $58.3 million
and $147.4 million, respectively.
Summary of 2018 Fourth Quarter Region Results
Presque Isle Downs and Casino and Lady Luck Nemacolin are presented as
assets held for sale as of December 31, 2018. The property results for
Presque Isle Downs and Casino and Lady Luck Nemacolin are included in
the results of operations in this press release. The sale of Presque
Isle Downs and Casino was completed on January 11, 2019 and the
divestiture of Lady Luck Nemacolin is expected to be completed in the
current quarter.
West Region (THE ROW, Isle Casino Hotel Black Hawk, Lady Luck
Casino Black Hawk, Tropicana Laughlin Hotel and Casino and MontBleu
Casino Resort & Spa)
Net revenue for the West Region properties for the quarter ended
December 31, 2018 declined approximately 1.7% to $137.0 million compared
to $139.4 million in the prior-year period, and operating income rose to
$20.7 million from $17.5 million in the year-ago quarter. West Region
fourth quarter Adjusted EBITDA increased 19.7% to $34.6 million
reflecting an Adjusted EBITDA margin improvement of 450 basis points to
25.2%, compared to Adjusted EBITDA of $28.9 million on an Adjusted
EBITDA margin of 20.7% in the prior-year period. Adjusted EBITDA rose
year over year at six of the seven West Region properties.
Midwest Region (Isle Casino Waterloo, Isle Casino Bettendorf,
Isle of Capri Casino Boonville, Isle Casino Cape Girardeau, Lady Luck
Casino Caruthersville and Isle of Capri Casino Kansas City)
Net revenue for the Midwest Region properties for the quarter ended
December 31, 2018 decreased approximately 1.9% to $95.8 million compared
to $97.6 million in the prior-year period, while operating income rose
to $25.1 million from $22.4 million in the year-ago quarter. Midwest
Region fourth quarter Adjusted EBITDA rose approximately 9.7% to $33.5
million as the Adjusted EBITDA margin for the segment rose 370 basis
points to 35.0%. Adjusted EBITDA was up at all six of the Midwest
properties year over year. Adjusted EBITDA for the Midwest Region in the
prior-year period was $30.5 million reflecting an Adjusted EBITDA margin
of 31.3%.
South Region (Isle Casino Racing Pompano Park, Eldorado
Shreveport, Isle of Capri Casino Lula, Lady Luck Casino Vicksburg, Isle
of Capri Lake Charles, Trop Casino Greenville and Belle of Baton Rouge
Casino & Hotel)
Net revenue for the South Region properties for the quarter ended
December 31, 2018 declined approximately 5.9% to $119.6 million compared
to $127.0 million in the prior-year period, while operating income
(loss) increased to $14.8 million from $(27.9) million in the year-ago
quarter. The operating loss for the South Region in the fourth quarter
of 2017 includes total impairment charges of $38.0 million, including
impairment charges of $13.2 million for Isle of Capri Lake Charles;
$24.5 million for Lady Luck Casino Vicksburg; and $0.3 million for Isle
of Capri Casino Lula. South Region fourth quarter Adjusted EBITDA
declined approximately 0.9% to $25.9 million primarily reflecting the
impact from a recently enacted smoking ban on the Belle of Baton Rouge
Casino & Hotel and the impact of roadway construction which hampered
visitation to the Isle of Capri Lake Charles property. The Adjusted
EBITDA margin for the segment rose 110 basis points to 21.7%.
East Region (Presque Isle Downs and Casino, Lady Luck Casino
Nemacolin, Eldorado Scioto Downs Racino, Mountaineer Casino, Racetrack
and Resort and Tropicana Casino and Resort, Atlantic City)
Net revenue for the East Region properties for the quarter ended
December 31, 2018 increased approximately 2.8% to $200.7 million
compared to $195.3 million in the prior-year period, while operating
income grew to $30.8 million from $12.0 million in the year-ago quarter.
East Region fourth quarter Adjusted EBITDA rose 46.5% to $43.7 million
compared to Adjusted EBITDA of $29.8 million in the prior-year period as
the East Region’s Adjusted EBITDA margin improved 650 basis points to
21.8%.
Central Region (Grand Victoria Casino, Tropicana Evansville and
Lumière Place)
Net revenue for the Central Region for the quarter ended December 31,
2018 decreased approximately 0.8% to $118.6 million compared to $119.5
million in the prior-year period, while operating income declined to
$21.4 million from $22.9 million in the year-ago quarter. Central Region
Adjusted EBITDA for the fourth quarter rose 16.8% to $33.6 million
compared to Adjusted EBITDA of $28.8 million in the prior-year period as
the Central Region’s Adjusted EBITDA margin improved 430 basis points to
28.4%. Adjusted EBITDA increased at all three Central Region properties.
Reconciliation of GAAP Measures to Non-GAAP Measures
Adjusted EBITDA (defined below), a non-GAAP financial measure, has been
presented as a supplemental disclosure because it is a widely used
measure of performance and basis for valuation of companies in our
industry and we believe that this non-GAAP supplemental information will
be helpful in understanding the Company’s ongoing operating results.
Management has historically used Adjusted EBITDA when evaluating
operating performance because we believe that the inclusion or exclusion
of certain recurring and non-recurring items is necessary to provide a
full understanding of our core operating results and as a means to
evaluate period-to-period results. Adjusted EBITDA represents operating
income (loss) before depreciation and amortization, stock-based
compensation, transaction expenses, severance expense, selling costs
associated with the disposition of properties, proceeds from the
terminated sales of Vicksburg and Lake Charles, preopening expenses,
business interruption insurance proceeds, real estate tax settlements,
other than temporary impairments on investments, impairment charges,
equity in income (loss) of unconsolidated affiliates, (gain) loss on the
sale or disposal of property and equipment, and other non-cash
regulatory gaming assessments. Adjusted EBITDA also excludes the expense
associated with our Master Lease with GLPI as the transaction was
accounted for as a financing obligation. Adjusted EBITDA is not a
measure of performance or liquidity calculated in accordance with
accounting principles generally accepted in the United States
(“US GAAP”), is unaudited and should not be considered an alternative
to, or more meaningful than, net income (loss) as an indicator of our
operating performance. Uses of cash flows that are not reflected in
Adjusted EBITDA include capital expenditures, interest payments, income
taxes, debt principal repayments, payments under our Master Lease and
certain regulatory gaming assessments, which can be significant. As a
result, Adjusted EBITDA should not be considered as a measure of our
liquidity. Other companies that provide EBITDA information may calculate
EBITDA differently than we do. The definition of Adjusted EBITDA may not
be the same as the definitions used in any of our debt agreements.
Fourth Quarter Conference Call
Eldorado will host a conference call at 4:30 p.m. ET today. Senior
management will discuss the financial results and host a question and
answer session. The dial in number for the audio conference call is
323/794-2094, conference ID 7761541 (domestic and international
callers). Participants can also access a live webcast of the call
through the “Events & Presentations” section of Eldorado’s website at http://www.eldoradoresorts.com/
and a replay of the webcast will be archived on the site for 90 days
following the live event.
About Eldorado Resorts, Inc.
Eldorado Resorts is a leading casino entertainment company that owns and
operates twenty-seven properties in thirteen states, including Colorado,
Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri,
Nevada, New Jersey, Ohio, Pennsylvania and West Virginia. In aggregate,
Eldorado’s properties feature approximately 30,000 slot machines and
VLTs and approximately 800 table games, and over 12,500 hotel rooms. For
more information, please visit www.eldoradoresorts.com.
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 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. Such risks,
uncertainties and other important factors include, but are not limited
to: Eldorado’s ability to promptly and effectively integrate the
operations of Tropicana and Grand Victoria and realize synergies
resulting from the combined operations; the possibility that sports
book, online and mobile betting and gaming are not approved in various
jurisdictions, or, to the extent that such gaming activities are
approved, the market for such gaming does not develop as anticipated;
our substantial indebtedness and obligations under our Master Lease and
the impact of such obligations on our operations and liquidity; our
ability to identify and execute acquisition and development
opportunities; risks relating to construction, development and expansion
opportunities, including the ability of our joint venture to plan,
finance and receive required approvals to develop our Pompano real
estate on terms that we find acceptable, or at all; competition;
sensitivity of our operations to reductions in discretionary consumer
spending and changes in general economic and market conditions;
governmental regulations, including risk relating to obtaining and
maintaining required licenses, approvals and permits necessary for the
operation of online and mobile betting and gaming, and increases in
gaming taxes and fees in jurisdictions in which we operate; and other
risks and uncertainties described in our reports on Form 10-K, Form 10-Q
and Form 8-K.
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.
– tables follow –
| ELDORADO RESORTS, INC. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
|
($ in thousands, except per share data) |
||||||||||||||||||||
|
(unaudited) |
||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
| REVENUES: | ||||||||||||||||||||
| Casino | $ | 488,944 | $ | 320,329 | $ | 1,534,954 | $ | 1,085,014 | ||||||||||||
| Pari-mutuel commissions | 4,029 | 4,154 | 18,437 | 14,013 | ||||||||||||||||
| Food and beverage | 82,688 | 56,580 | 247,332 | 198,246 | ||||||||||||||||
| Hotel | 69,351 | 33,793 | 183,798 | 133,338 | ||||||||||||||||
| Other | 26,748 | 15,045 | 71,486 | 50,187 | ||||||||||||||||
| Net revenues | 671,760 | 429,901 | 2,056,007 | 1,480,798 | ||||||||||||||||
| EXPENSES: | ||||||||||||||||||||
| Casino | 226,043 | 158,427 | 732,580 | 547,438 | ||||||||||||||||
| Pari-mutuel commissions | 3,688 | 3,758 | 16,709 | 13,651 | ||||||||||||||||
| Food and beverage | 67,691 | 49,807 | 202,618 | 169,848 | ||||||||||||||||
| Hotel | 24,830 | 13,712 | 65,009 | 50,575 | ||||||||||||||||
| Other | 13,646 | 9,453 | 38,676 | 32,156 | ||||||||||||||||
| Marketing and promotions | 39,906 | 25,076 | 106,161 | 83,174 | ||||||||||||||||
| General and administrative | 126,053 | 72,702 | 349,598 | 241,037 | ||||||||||||||||
| Corporate | 13,615 | 9,005 | 46,632 | 30,739 | ||||||||||||||||
| Impairment charges | — | 38,016 | 13,602 | 38,016 | ||||||||||||||||
| Depreciation and amortization | 58,224 | 36,255 | 157,429 | 105,891 | ||||||||||||||||
| Total operating expenses | 573,696 | 416,211 | 1,729,014 | 1,312,525 | ||||||||||||||||
| Loss on sale or disposal of property and equipment | (441 | ) | (267) | (835 | ) | (319 | ) | |||||||||||||
| Proceeds from terminated sales | — | 20,000 | 5,000 | 20,000 | ||||||||||||||||
| Transaction expenses | (10,800 | ) | (3,605 | ) | (20,842 | ) | (92,777 | ) | ||||||||||||
| Loss from unconsolidated affiliates | (97 | ) | (62 | ) | (213 | ) | (367 | ) | ||||||||||||
| Operating income | 86,726 | 29,756 | 310,103 | 94,810 | ||||||||||||||||
| OTHER EXPENSE: | ||||||||||||||||||||
| Interest expense, net | (75,154 | ) | (30,389 | ) | (171,732 | ) | (99,769 | ) | ||||||||||||
| Loss on early retirement of debt, net | — | (1,083 | ) | (162 | ) | (38,430 | ) | |||||||||||||
| Unrealized loss on restricted investment | (2,587) | — | (2,587) | — | ||||||||||||||||
| Total other expense | (77,741 | ) | (31,472 | ) | (174,481 | ) | (138,199 | ) | ||||||||||||
| Net income (loss) before income taxes | 8,985 | (1,716) | 135,622 | (43,389 | ) | |||||||||||||||
| (Provision) benefit for income taxes | (9,105 | ) | 90,654 | (40,387 | ) | 116,769 | ||||||||||||||
| Net (loss) income | $ | (120) | $ | 88,938 | $ | 95,235 | $ | 73,380 | ||||||||||||
| Net (loss) income per share of common stock: | ||||||||||||||||||||
| Basic | $ | 0.00 | $ | 1.16 | $ | 1.23 | $ | 1.09 | ||||||||||||
| Diluted | $ | 0.00 | $ | 1.14 | $ | 1.22 | $ | 1.08 | ||||||||||||
| Weighted average basic shares outstanding | 77,503,732 | 76,961,015 | 77,458,902 | 67,133,531 | ||||||||||||||||
| Weighted average diluted shares outstanding | 77,503,732 | 77,998,742 | 78,282,101 | 68,102,814 | ||||||||||||||||
| 1. |
The prior period presentation has been adjusted for the adoption of Accounting Standards Codification (ASC) No. 606 “Revenue from Contracts with Customers” effective January 1, 2018 utilizing the full retrospective transition method. |
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Contacts
Thomas Reeg
Chief Executive Officer
Eldorado Resorts, Inc.
775/328-0112
investorrelations@eldoradoresorts.com
Joseph N. Jaffoni, Richard Land
JCIR
212/835-8500
eri@jcir.com