Eldorado Resorts Reports Second Quarter Net Revenue of $231.3 Million, Operating Income of $29.7 Million and
Adjusted EBITDA of $46.7 Million
- Operating Income Increases for the Fourth Consecutive Quarter and Adjusted EBITDA Increases for the
Fifth Consecutive Quarter -
Eldorado Resorts, Inc. (NASDAQ:ERI) (“Eldorado,” “ERI,” or “the Company”) today reported operating results for the second
quarter ended June 30, 2016. Net revenue, operating income and Adjusted EBITDA for all periods summarized below include the
operations of Silver Legacy and Circus Circus Reno, which were acquired by ERI on November 24, 2015, as if the acquisition occurred
on January 1, 2015.
|
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|
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|
|
|
|
|
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Total Net Revenue |
|
|
|
Total Net Revenue |
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|
| ($ in thousands, except per share data) |
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
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|
|
|
|
|
|
June 30, |
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|
|
June 30, |
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|
|
|
|
|
|
2016 |
|
|
|
|
|
2015 |
|
|
|
|
Change |
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|
|
2016 |
|
|
|
|
|
2015 |
|
|
|
|
Change |
|
|
| Reno Tri-Properties (1) |
|
|
|
|
$ |
84,161 |
|
|
|
|
$ |
76,913 |
|
|
|
|
9.4 |
% |
|
|
|
$ |
156,932 |
|
|
|
|
$ |
145,009 |
|
|
|
|
8.2 |
% |
|
|
| Eldorado Shreveport |
|
|
|
|
|
32,088 |
|
|
|
|
|
34,634 |
|
|
|
|
(7.4 |
)% |
|
|
|
|
66,530 |
|
|
|
|
|
69,268 |
|
|
|
|
(4.0 |
)% |
|
|
| Scioto Downs (2) |
|
|
|
|
|
42,243 |
|
|
|
|
|
40,547 |
|
|
|
|
4.2 |
% |
|
|
|
|
82,026 |
|
|
|
|
|
78,266 |
|
|
|
|
4.8 |
% |
|
|
| Mountaineer |
|
|
|
|
|
35,754 |
|
|
|
|
|
42,522 |
|
|
|
|
(15.9 |
)% |
|
|
|
|
69,140 |
|
|
|
|
|
82,198 |
|
|
|
|
(15.9 |
)% |
|
|
| Presque Isle Downs |
|
|
|
|
|
37,069 |
|
|
|
|
|
37,724 |
|
|
|
|
(1.7 |
)% |
|
|
|
|
70,253 |
|
|
|
|
|
69,393 |
|
|
|
|
1.2 |
% |
|
|
| Total Net Revenue (1) |
|
|
|
|
$ |
231,315 |
|
|
|
|
$ |
232,340 |
|
|
|
|
(0.4 |
)% |
|
|
|
$ |
444,881 |
|
|
|
|
$ |
444,134 |
|
|
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
| ($ in thousands, except per share data) |
|
|
|
|
Adjusted EBITDA |
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
2015 |
|
|
|
|
Change |
|
|
|
|
2016 |
|
|
|
|
|
2015 |
|
|
|
|
Change |
|
|
| Reno Tri-Properties (1) |
|
|
|
|
$ |
18,915 |
|
|
|
|
$ |
14,335 |
|
|
|
|
32.0 |
% |
|
|
|
$ |
29,908 |
|
|
|
|
$ |
21,705 |
|
|
|
|
37.8 |
% |
|
|
| Eldorado Shreveport |
|
|
|
|
|
7,456 |
|
|
|
|
|
7,945 |
|
|
|
|
(6.2 |
)% |
|
|
|
|
15,903 |
|
|
|
|
|
15,088 |
|
|
|
|
5.4 |
% |
|
|
| Scioto Downs (2) |
|
|
|
|
|
14,578 |
|
|
|
|
|
14,177 |
|
|
|
|
2.8 |
% |
|
|
|
|
29,169 |
|
|
|
|
|
27,236 |
|
|
|
|
7.1 |
% |
|
|
| Mountaineer |
|
|
|
|
|
3,674 |
|
|
|
|
|
6,996 |
|
|
|
|
(47.5 |
)% |
|
|
|
|
7,217 |
|
|
|
|
|
12,218 |
|
|
|
|
(40.9 |
)% |
|
|
| Presque Isle Downs |
|
|
|
|
|
5,787 |
|
|
|
|
|
5,921 |
|
|
|
|
(2.3 |
)% |
|
|
|
|
10,558 |
|
|
|
|
|
9,468 |
|
|
|
|
11.5 |
% |
|
|
| Corporate (3) |
|
|
|
|
|
(3,758 |
) |
|
|
|
|
(3,669 |
) |
|
|
|
2.4 |
% |
|
|
|
|
(7,766 |
) |
|
|
|
|
(7,228 |
) |
|
|
|
7.4 |
% |
|
|
| Total Adjusted EBITDA (1) (4) |
|
|
|
|
$ |
46,652 |
|
|
|
|
$ |
45,705 |
|
|
|
|
2.1 |
% |
|
|
|
$ |
84,989 |
|
|
|
|
$ |
78,487 |
|
|
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
|
|
|
|
$ |
29,655 |
|
|
|
|
$ |
23,059 |
|
|
|
|
|
|
|
|
$ |
47,917 |
|
|
|
|
$ |
35,143 |
|
|
|
|
|
|
|
| Net income (loss) |
|
|
|
|
$ |
10,791 |
|
|
|
|
$ |
4,795 |
|
|
|
|
|
|
|
|
$ |
14,160 |
|
|
|
|
$ |
(1,369 |
) |
|
|
|
|
|
|
| Basic EPS |
|
|
|
|
$ |
0.23 |
|
|
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
$ |
0.30 |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
|
|
|
| Diluted EPS |
|
|
|
|
$ |
0.23 |
|
|
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
$ |
0.30 |
|
|
|
|
$ |
(0.03 |
) |
|
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| (1) |
|
Figures for the three and six months ended June 30, 2015 include the operations of
Silver Legacy and Circus Circus Reno, which were acquired by ERI on November 24, 2015, as if the acquisition occurred on
January 1, 2015. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for pro forma
presentation; however, we have included the combined information because we believe it provides a meaningful comparison for the
periods presented. |
| (2) |
|
Effective January 1, 2016, the Ohio Lottery Commission enacted a regulatory change
which resulted in the establishment of a $1.0 million progressive slot liability and a corresponding decrease in net slot win
in Q1 2016. The changes are non-cash and related to prior years. If the regulatory change didn’t take place, net revenues at
Scioto Downs would have increased 6.1% for the six months ended June 30, 2016. The net non-cash impact to Adjusted EBITDA was
$0.6 million and that amount is added back to Scioto Downs’ Adjusted EBITDA for the six months ended June 30, 2016. |
| (3) |
|
Corporate for the six months ended June 30, 2016 excludes severance expense of $1.5
million. |
| (4) |
|
Adjusted EBITDA is not a generally accepted accounting principle ("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. |
|
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|
“Significant growth related to Eldorado’s expanded presence in Reno and our ongoing success with initiatives to expand operating
margins resulted in our fourth consecutive quarter of year over year operating income growth and our fifth consecutive quarter of
year over year Adjusted EBITDA growth despite relatively flat revenue,” said Gary Carano, Chairman and Chief Executive Officer of
Eldorado. “For the 2016 second quarter, Adjusted EBITDA increased 2.1%, pro forma for the Reno acquisition, while our consolidated
Adjusted EBITDA margin rose 50 basis points to 20.2%, marking the fifth consecutive quarter of EBITDA margin increases.
“Our acquisition last November of Reno’s Circus Circus and the 50% interest in Silver Legacy we did not already own continues to
be a catalyst for our operating performance. In addition to the benefit from the revenue and cost synergies we have already
implemented at our Reno Tri-Properties, we are also benefiting from the growing economic strength in the Reno market driven by
recent investments, most notably by Tesla and Switch, the rebound of housing prices, expanded airline service into and out of the
city and a lower unemployment rate in the region. Reflecting these factors, second quarter net revenue and Adjusted EBITDA at our
Reno Tri-Properties rose 9.4% and 32.0%, respectively. Eldorado Scioto Downs remains another solid success story as we increased
the property’s market share in the second quarter and grew net revenue and Adjusted EBITDA for the sixth consecutive quarter.
“During the second quarter, Eldorado continued to execute on its strategies for return-focused facility enhancements with the
opening of The Brew Brothers restaurant at Presque Isle Downs in May and the second smoking patio at Eldorado Scioto Downs
on June 30. Following the successful May opening of The Brew Brothers at Presque Isle Downs, early in the third quarter we
added a new escalator to the property which takes guests from the casino floor up to the restaurant. The escalator has improved
traffic flow at the property and the addition of The Brew Brothers concept at Presque Isle Downs has been well
received by our players. In addition, a new smoking patio at Eldorado Scioto Downs opened with 119 additional VLTs and a casino
bar, bringing our total VLT count in both our smoking patios to 201 units. Work continues across the Reno Tri-Properties to
finalize budgets and plans to enhance our guests’ experiences, including our previously announced plans for room renovations at
Circus Circus Reno and new food and beverage and other property amenities. Finally, early in the third quarter we named Gregg
Carano General Manager of Mountaineer Casino Racetrack & Resort. Most recently, Gregg served as Senior Vice President of Food
and Beverage for Eldorado Resorts and he previously served as General Manager of Circus Circus Reno and General Manager of Eldorado
Resort Casino Reno.
“As we look forward to the second half of the year, we are very excited about the benefit these facility enhancement projects
will provide to our guests and remain focused on the implementation of operating strategies that we expect will deliver additional
value for our shareholders.”
Balance Sheet and Liquidity
At June 30, 2016, Eldorado had $37.1 million in cash and cash equivalents and $3.9 million in restricted cash. Outstanding
indebtedness at June 30, 2016 totaled $817.8 million, including $22.0 million outstanding on the Company’s revolving credit
facility. Capital expenditures in the second quarter of 2016 totaled $9.9 million and $20.5 million in the first half of the year.
The Company continues to anticipate 2016 full-year capital expenditures of $50 million, with approximately $15 million allocated to
project cap-ex and the remaining $35 million for maintenance cap-ex.
“We continue to successfully implement initiatives that drive higher free cash flow which is being allocated to reduce our debt
and leverage,” said Tom Reeg, President and Chief Financial Officer of Eldorado. “Reflecting our success with these strategies, we
paid down $38.1 million of debt in the second quarter, bringing total debt reduction in the first half of 2016 to $73.6 million,
with our trailing twelve month consolidated gross leverage ratio now at 4.9x.”
Summary of 2016 Second Quarter Property Results and Facility Enhancements
Nevada
Net revenue at the Reno Tri-Properties for the quarter ended June 30, 2016 increased 9.4% over the prior-year period to $84.2
million, with operating income increasing 26.9% to $13.7 million and Adjusted EBITDA of $18.9 million growing 32.0% from the same
period in 2015. Adjusted EBITDA margin increased 380 basis points in the second quarter to 22.5%. The Adjusted EBITDA improvement
reflects the leverage in the Tri-Properties operating model as the year-over-year increase in all of the complex’s volume
indicators resulted in improved flow through of revenue to adjusted EBITDA. Gaming revenue benefited from increases in both coin-in
and table drop and non-gaming revenues continued to increase with RevPAR up 20.1%. The consolidation of the Tri-Properties
continues with ongoing revenue and expense synergy strategies being implemented.
Louisiana
Net revenue at Eldorado Shreveport declined 7.4% to $32.1 million in the second quarter of 2016 from $34.6 million in the second
quarter of 2015 while operating income decreased 8.5% to $5.5 million over the same time period. Adjusted EBITDA decreased 6.2% to
$7.5 million from $7.9 million in the comparable quarter of 2015. The property experienced lower than historical average table game
hold during the quarter which contributed to the decline in net revenues, which was partly offset by a 2.6% increase in non-gaming
revenues. The Shreveport market continued to be impacted by weakness in the energy sector in the second quarter.
Eastern Properties
Net revenue at Eldorado Scioto Downs increased 4.2% to $42.2 million in the second quarter of 2016 from $40.5 million in the
second quarter of 2015 with operating income declining 0.7% to $10.4 million over the same time period. Scioto Downs’ second
quarter 2016 Adjusted EBITDA increased 2.8% to $14.6 million from $14.2 million in the comparable prior-year period. The increase
in both net revenues and Adjusted EBITDA marks the sixth consecutive quarter of year-over-year growth for these metrics at Scioto
Downs. Non-gaming revenue at the property rose 8.5% in the second quarter driven by the 2015 fourth quarter opening of The Brew
Brothers microbrewery and restaurant. On June 30 a second smoking patio opened with 119 new VLTs and a casino bar which is
directly adjacent to Brew Brothers at the front of the property. Construction on the 118-room Hampton Inn Hotel at the property
continues and the hotel is expected to open in the fourth quarter of 2016.
At Presque Isle Downs & Casino, second quarter 2016 net revenue decreased 1.7% to $37.1 million from $37.7 million in the
second quarter of 2015 with operating income increasing 17.8% to $4.1 million over the same time period. Adjusted EBITDA declined
slightly to $5.8 million in the second quarter of 2016 from $5.9 million in the year-ago quarter. The decline in net revenue is
attributable to lower non-gaming revenue mainly associated with strategic reductions in the property’s promotional expense. The
property experienced minor construction disruption during the quarter due to the transformation of the old Clubhouse Restaurant
into a new The Brew Brothers restaurant and a brand new escalator going from the casino floor to the entrance of The Brew
Brothers, all of which was completed by the beginning of the third quarter.
Net revenue at Mountaineer Casino, Racetrack & Resort declined 15.9% to $35.8 million in the second quarter of 2016 from
$42.5 million in the second quarter of 2015 with operating income decreasing 84.5% to $0.5 million over the same time period.
Adjusted EBITDA declined 47.5% to $3.7 million from $7.0 million in the comparable quarter of 2015. The property continued to be
impacted by the smoking ban in the county that went into effect July 1, 2015.
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. Adjusted EBITDA represents
operating income (loss) before depreciation and amortization, stock based compensation, (gain) loss on the sale or disposal of
property, equity in income of unconsolidated affiliate, acquisition charges, S-1 expenses, severance expenses and other regulatory
gaming assessments, including the impact of change in reporting requirements, to the extent that such items existed in the periods
presented. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with U.S. 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 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.
Second 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 719/325-2361, conference ID 4541657 (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 casino entertainment company that owns and operates seven properties in five states, including the
Eldorado Resort Casino, the Silver Legacy Resort Casino and Circus Circus Resort Casino in Reno, NV; the Eldorado Resort Casino in
Shreveport, LA; Scioto Downs Racino in Columbus, OH; Mountaineer Casino Racetrack & Resort in Chester, WV; and Presque Isle
Downs & Casino in Erie, PA. 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: our substantial indebtedness and
the impact of such obligations on our operations and liquidity; competition; our geographic concentration; our ability to integrate
the operations of Circus Circus Reno, the Silver Legacy and the MTR Gaming properties; sensitivity of our operations to reductions
in discretionary consumer spending and changes in general economic and market conditions; governmental regulations and increases in
gaming taxes and fees in jurisdictions in which we operate; risks relating to pending claims or future claims that may be brought
against us; the effect of disruptions to our information technology and other systems and infrastructure; construction factors
relating to maintenance and expansion of operations; our ability to attract and retain customers; weather or road conditions
limiting access to our properties; the effect of war, terrorist activity, natural disasters and other catastrophic events; and
competition to attract and retain management and key employees.
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 BALANCE SHEETS |
|
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
December 31, 2015 |
|
|
|
ASSETS
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
| CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
|
|
$ |
37,105 |
|
|
|
$ |
78,278 |
|
|
| Restricted cash |
|
|
|
|
|
3,870 |
|
|
|
|
5,271 |
|
|
| Accounts receivable, net |
|
|
|
|
|
14,524 |
|
|
|
|
9,981 |
|
|
| Inventories |
|
|
|
|
|
11,696 |
|
|
|
|
11,742 |
|
|
| Prepaid income taxes |
|
|
|
|
|
422 |
|
|
|
|
112 |
|
|
| Prepaid expenses and other |
|
|
|
|
|
13,320 |
|
|
|
|
10,795 |
|
|
| Total current assets |
|
|
|
|
|
80,937 |
|
|
|
|
116,179 |
|
|
| INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES |
|
|
|
|
|
1,286 |
|
|
|
|
1,286 |
|
|
| PROPERTY AND EQUIPMENT, NET |
|
|
|
|
|
615,011 |
|
|
|
|
625,416 |
|
|
| GAMING LICENSES AND OTHER INTANGIBLE ASSETS, NET |
|
|
|
|
|
489,630 |
|
|
|
|
492,033 |
|
|
| GOODWILL |
|
|
|
|
|
66,826 |
|
|
|
|
66,826 |
|
|
| NON-OPERATING REAL PROPERTY |
|
|
|
|
|
14,218 |
|
|
|
|
16,314 |
|
|
| OTHER ASSETS, NET |
|
|
|
|
|
6,777 |
|
|
|
|
6,954 |
|
|
| Total assets |
|
|
|
|
$ |
1,274,685 |
|
|
|
$ |
1,325,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
| Current portion of long-term debt |
|
|
|
|
$ |
4,533 |
|
|
|
$ |
4,524 |
|
|
| Accounts payable |
|
|
|
|
|
23,031 |
|
|
|
|
17,005 |
|
|
| Due to affiliates |
|
|
|
|
|
73 |
|
|
|
|
129 |
|
|
| Accrued property, gaming and other taxes |
|
|
|
|
|
15,737 |
|
|
|
|
19,424 |
|
|
| Accrued payroll and related |
|
|
|
|
|
17,198 |
|
|
|
|
17,852 |
|
|
| Accrued interest |
|
|
|
|
|
14,230 |
|
|
|
|
14,978 |
|
|
| Accrued other liabilities |
|
|
|
|
|
30,848 |
|
|
|
|
31,798 |
|
|
| Total current liabilities |
|
|
|
|
|
105,650 |
|
|
|
|
105,710 |
|
|
| LONG-TERM DEBT, LESS CURRENT PORTION, NET OF DISCOUNT |
|
|
|
|
|
789,389 |
|
|
|
|
861,713 |
|
|
| DEFERRED INCOME TAXES |
|
|
|
|
|
86,093 |
|
|
|
|
78,797 |
|
|
| OTHER LONG-TERM LIABILITIES |
|
|
|
|
|
7,110 |
|
|
|
|
8,121 |
|
|
|
|
|
|
|
|
988,242 |
|
|
|
|
1,054,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
| Total stockholders' equity |
|
|
|
|
|
286,443 |
|
|
|
|
270,667 |
|
|
| Total liabilities and stockholders' equity |
|
|
|
|
$ |
1,274,685 |
|
|
|
$ |
1,325,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ELDORADO RESORTS, INC. |
|
|
| CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
($ in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
2015 |
|
|
|
|
|
2016 |
|
|
|
|
|
2015 |
|
|
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Casino |
|
|
|
|
$ |
178,459 |
|
|
|
|
$ |
156,788 |
|
|
|
|
$ |
347,537 |
|
|
|
|
$ |
304,450 |
|
|
|
| Pari-mutuel commissions |
|
|
|
|
|
2,893 |
|
|
|
|
|
3,056 |
|
|
|
|
|
3,577 |
|
|
|
|
|
4,261 |
|
|
|
| Food and beverage |
|
|
|
|
|
36,967 |
|
|
|
|
|
23,495 |
|
|
|
|
|
70,706 |
|
|
|
|
|
45,677 |
|
|
|
| Hotel |
|
|
|
|
|
25,677 |
|
|
|
|
|
8,444 |
|
|
|
|
|
45,842 |
|
|
|
|
|
15,478 |
|
|
|
| Other |
|
|
|
|
|
11,014 |
|
|
|
|
|
6,573 |
|
|
|
|
|
21,899 |
|
|
|
|
|
11,299 |
|
|
|
|
|
|
|
|
|
255,010 |
|
|
|
|
|
198,356 |
|
|
|
|
|
489,561 |
|
|
|
|
|
381,165 |
|
|
|
| Less: promotional allowances |
|
|
|
|
|
(23,695 |
) |
|
|
|
|
(15,723 |
) |
|
|
|
|
(44,680 |
) |
|
|
|
|
(31,081 |
) |
|
|
| Net operating revenues |
|
|
|
|
|
231,315 |
|
|
|
|
|
182,633 |
|
|
|
|
|
444,881 |
|
|
|
|
|
350,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Casino |
|
|
|
|
|
100,374 |
|
|
|
|
|
91,066 |
|
|
|
|
|
196,636 |
|
|
|
|
|
177,884 |
|
|
|
| Pari-mutuel commissions |
|
|
|
|
|
2,931 |
|
|
|
|
|
3,093 |
|
|
|
|
|
4,255 |
|
|
|
|
|
4,789 |
|
|
|
| Food and beverage |
|
|
|
|
|
20,783 |
|
|
|
|
|
12,002 |
|
|
|
|
|
40,511 |
|
|
|
|
|
23,923 |
|
|
|
| Hotel |
|
|
|
|
|
7,979 |
|
|
|
|
|
2,313 |
|
|
|
|
|
15,108 |
|
|
|
|
|
4,503 |
|
|
|
| Other |
|
|
|
|
|
6,618 |
|
|
|
|
|
3,567 |
|
|
|
|
|
12,692 |
|
|
|
|
|
6,434 |
|
|
|
| Marketing and promotions |
|
|
|
|
|
9,766 |
|
|
|
|
|
7,404 |
|
|
|
|
|
19,341 |
|
|
|
|
|
14,505 |
|
|
|
| General and administrative |
|
|
|
|
|
32,380 |
|
|
|
|
|
23,053 |
|
|
|
|
|
64,035 |
|
|
|
|
|
46,597 |
|
|
|
| Corporate |
|
|
|
|
|
4,354 |
|
|
|
|
|
3,901 |
|
|
|
|
|
11,258 |
|
|
|
|
|
8,061 |
|
|
|
| Depreciation and amortization |
|
|
|
|
|
15,583 |
|
|
|
|
|
14,031 |
|
|
|
|
|
31,787 |
|
|
|
|
|
28,500 |
|
|
|
| Total operating expenses |
|
|
|
|
|
200,768 |
|
|
|
|
|
160,430 |
|
|
|
|
|
395,623 |
|
|
|
|
|
315,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (LOSS) GAIN ON SALE OR DISPOSAL OF PROPERTY |
|
|
|
|
|
(836 |
) |
|
|
|
|
3 |
|
|
|
|
|
(765 |
) |
|
|
|
|
4 |
|
|
|
| ACQUISITION CHARGES |
|
|
|
|
|
(56 |
) |
|
|
|
|
(253 |
) |
|
|
|
|
(576 |
) |
|
|
|
|
(337 |
) |
|
|
| EQUITY IN INCOME OF UNCONSOLIDATED AFFILIATE |
|
|
|
|
|
- |
|
|
|
|
|
1,106 |
|
|
|
|
|
- |
|
|
|
|
|
588 |
|
|
|
| OPERATING INCOME |
|
|
|
|
|
29,655 |
|
|
|
|
|
23,059 |
|
|
|
|
|
47,917 |
|
|
|
|
|
35,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
|
|
|
(12,795 |
) |
|
|
|
|
(17,232 |
) |
|
|
|
|
(25,786 |
) |
|
|
|
|
(34,464 |
) |
|
|
| Loss on early retirement of debt, net |
|
|
|
|
|
(89 |
) |
|
|
|
|
- |
|
|
|
|
|
(155 |
) |
|
|
|
|
- |
|
|
|
| Total other expense |
|
|
|
|
|
(12,884 |
) |
|
|
|
|
(17,232 |
) |
|
|
|
|
(25,941 |
) |
|
|
|
|
(34,464 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME BEFORE INCOME TAXES |
|
|
|
|
|
16,771 |
|
|
|
|
|
5,827 |
|
|
|
|
|
21,976 |
|
|
|
|
|
679 |
|
|
|
| PROVISION FOR INCOME TAXES |
|
|
|
|
|
(5,980 |
) |
|
|
|
|
(1,032 |
) |
|
|
|
|
(7,816 |
) |
|
|
|
|
(2,048 |
) |
|
|
| NET INCOME (LOSS) |
|
|
|
|
$ |
10,791 |
|
|
|
|
$ |
4,795 |
|
|
|
|
$ |
14,160 |
|
|
|
|
$ |
(1,369 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
|
|
$ |
0.23 |
|
|
|
|
$ |
0.10 |
|
|
|
|
$ |
0.30 |
|
|
|
|
$ |
(0.03 |
) |
|
|
| Diluted |
|
|
|
|
$ |
0.23 |
|
|
|
|
$ |
0.10 |
|
|
|
|
$ |
0.30 |
|
|
|
|
$ |
(0.03 |
) |
|
|
| Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
|
|
|
47,071,608 |
|
|
|
|
|
46,516,614 |
|
|
|
|
|
46,966,391 |
|
|
|
|
|
46,505,687 |
|
|
|
| Diluted |
|
|
|
|
|
47,721,075 |
|
|
|
|
|
46,657,618 |
|
|
|
|
|
47,591,958 |
|
|
|
|
|
46,505,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ELDORADO RESORTS, INC. |
|
|
| SUMMARY INFORMATION AND RECONCILIATION OF |
|
|
| OPERATING INCOME (LOSS) TO ADJUSTED EBITDA |
|
|
| ($ in thousands) |
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss)
|
|
|
|
Depreciation
and
Amortization
|
|
|
|
Stock-Based
Compensation
|
|
|
|
Transaction
Expenses
|
|
|
|
Severance
Expense
|
|
|
|
Other
(4)
|
|
|
|
Adjusted
EBITDA
|
|
|
| Reno Tri-Properties |
|
|
|
|
$ |
13,655 |
|
|
|
|
$ |
5,046 |
|
|
|
$ |
- |
|
|
|
$ |
- |
|
|
|
$ |
- |
|
|
|
$ |
214 |
|
|
|
|
$ |
18,915 |
|
|
|
| Eldorado Shreveport |
|
|
|
|
|
5,541 |
|
|
|
|
|
1,964 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(49 |
) |
|
|
|
|
7,456 |
|
|
|
| Scioto Downs |
|
|
|
|
|
10,363 |
|
|
|
|
|
4,215 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
14,578 |
|
|
|
| Mountaineer |
|
|
|
|
|
493 |
|
|
|
|
|
2,393 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
788 |
|
|
|
|
|
3,674 |
|
|
|
| Presque Isle Downs |
|
|
|
|
|
4,078 |
|
|
|
|
|
1,851 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(142 |
) |
|
|
|
|
5,787 |
|
|
|
| Corporate |
|
|
|
|
|
(4,475 |
) |
|
|
|
|
114 |
|
|
|
|
579 |
|
|
|
|
56 |
|
|
|
|
17 |
|
|
|
|
(49 |
) |
|
|
|
|
(3,758 |
) |
|
|
|
|
|
|
|
$ |
29,655 |
|
|
|
|
$ |
15,583 |
|
|
|
$ |
579 |
|
|
|
$ |
56 |
|
|
|
$ |
17 |
|
|
|
$ |
762 |
|
|
|
|
$ |
46,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss)
|
|
|
|
Depreciation
and
Amortization
|
|
|
|
Stock-Based
Compensation
|
|
|
|
Transaction
Expenses
|
|
|
|
Severance
Expense
|
|
|
|
Other
(4)
|
|
|
|
Adjusted
EBITDA
|
|
|
| Reno Tri-Properties (3) |
|
|
|
|
$ |
10,759 |
|
|
|
|
$ |
4,647 |
|
|
|
$ |
- |
|
|
|
$ |
- |
|
|
|
$ |
40 |
|
|
|
$ |
(1,111 |
) |
|
|
|
$ |
14,335 |
|
|
|
| Eldorado Shreveport |
|
|
|
|
|
6,056 |
|
|
|
|
|
1,888 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
1 |
|
|
|
|
|
7,945 |
|
|
|
| Scioto Downs |
|
|
|
|
|
10,441 |
|
|
|
|
|
3,736 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
14,177 |
|
|
|
| Mountaineer |
|
|
|
|
|
3,172 |
|
|
|
|
|
3,812 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
12 |
|
|
|
|
- |
|
|
|
|
|
6,996 |
|
|
|
| Presque Isle Downs |
|
|
|
|
|
3,461 |
|
|
|
|
|
2,559 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(99 |
) |
|
|
|
|
5,921 |
|
|
|
| Corporate |
|
|
|
|
|
(4,248 |
) |
|
|
|
|
94 |
|
|
|
|
231 |
|
|
|
|
253 |
|
|
|
|
- |
|
|
|
|
1 |
|
|
|
|
|
(3,669 |
) |
|
|
|
|
|
|
|
$ |
29,641 |
|
|
|
|
$ |
16,736 |
|
|
|
$ |
231 |
|
|
|
$ |
253 |
|
|
|
$ |
52 |
|
|
|
$ |
(1,208 |
) |
|
|
|
$ |
45,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss)
|
|
|
|
Depreciation
and
Amortization
|
|
|
|
Stock-Based
Compensation
(2)
|
|
|
|
Transaction
Expenses
|
|
|
|
Severance
Expense
|
|
|
|
Other
(4)
|
|
|
|
Adjusted
EBITDA
|
|
|
| Reno Tri-Properties |
|
|
|
|
$ |
19,219 |
|
|
|
|
$ |
10,509 |
|
|
|
$ |
- |
|
|
|
$ |
- |
|
|
|
$ |
- |
|
|
|
$ |
180 |
|
|
|
|
$ |
29,908 |
|
|
|
| Eldorado Shreveport |
|
|
|
|
|
12,043 |
|
|
|
|
|
3,910 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(50 |
) |
|
|
|
|
15,903 |
|
|
|
| Scioto Downs (1) |
|
|
|
|
|
20,177 |
|
|
|
|
|
8,416 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
576 |
|
|
|
|
|
29,169 |
|
|
|
| Mountaineer |
|
|
|
|
|
1,409 |
|
|
|
|
|
5,050 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
758 |
|
|
|
|
|
7,217 |
|
|
|
| Presque Isle Downs |
|
|
|
|
|
7,079 |
|
|
|
|
|
3,677 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(198 |
) |
|
|
|
|
10,558 |
|
|
|
| Corporate |
|
|
|
|
|
(12,010 |
) |
|
|
|
|
225 |
|
|
|
|
2,033 |
|
|
|
|
574 |
|
|
|
|
1,461 |
|
|
|
|
(49 |
) |
|
|
|
|
(7,766 |
) |
|
|
|
|
|
|
|
$ |
47,917 |
|
|
|
|
$ |
31,787 |
|
|
|
$ |
2,033 |
|
|
|
$ |
574 |
|
|
|
$ |
1,461 |
|
|
|
$ |
1,217 |
|
|
|
|
$ |
84,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss)
|
|
|
|
Depreciation
and
Amortization
|
|
|
|
Stock-Based
Compensation
|
|
|
|
Transaction
Expenses
|
|
|
|
Severance
Expense
|
|
|
|
Other
(4)
|
|
|
|
Adjusted
EBITDA
|
|
|
| Reno Tri-Properties (3) |
|
|
|
|
$ |
11,942 |
|
|
|
|
$ |
10,315 |
|
|
|
$ |
- |
|
|
|
$ |
- |
|
|
|
$ |
41 |
|
|
|
$ |
(593 |
) |
|
|
|
$ |
21,705 |
|
|
|
| Eldorado Shreveport |
|
|
|
|
|
11,255 |
|
|
|
|
|
3,807 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
25 |
|
|
|
|
1 |
|
|
|
|
|
15,088 |
|
|
|
| Scioto Downs |
|
|
|
|
|
19,762 |
|
|
|
|
|
7,474 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
27,236 |
|
|
|
| Mountaineer |
|
|
|
|
|
4,165 |
|
|
|
|
|
7,958 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
95 |
|
|
|
|
- |
|
|
|
|
|
12,218 |
|
|
|
| Presque Isle Downs |
|
|
|
|
|
4,388 |
|
|
|
|
|
5,200 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(120 |
) |
|
|
|
|
9,468 |
|
|
|
| Corporate |
|
|
|
|
|
(8,585 |
) |
|
|
|
|
187 |
|
|
|
|
821 |
|
|
|
|
337 |
|
|
|
|
11 |
|
|
|
|
1 |
|
|
|
|
|
(7,228 |
) |
|
|
|
|
|
|
|
$ |
42,927 |
|
|
|
|
$ |
34,941 |
|
|
|
$ |
821 |
|
|
|
$ |
337 |
|
|
|
$ |
172 |
|
|
|
$ |
(711 |
) |
|
|
|
$ |
78,487 |
|
|
|
| |
(1) |
|
Effective January 1, 2016, the Ohio Lottery Commission enacted a regulatory change
which resulted in the establishment of a $1.0 million progressive slot liability and a corresponding decrease in net slot win
during the first quarter of 2016. The changes are non-cash and related primarily to prior years. The net non-cash impact to
Adjusted EBITDA was $0.6 million for the six months ended June 30, 2016. |
|
(2) |
|
Included in stock-based compensation expense for the six months ended June 30, 2016
is $0.5 million of additional stock-based compensation expense as a result of severance related restricted stock units becoming
fully vested during the first quarter of 2016. |
|
(3) |
|
Figures for the three and six months ended June 30, 2015 include the operations of
Silver Legacy and Circus Circus Reno, which were acquired by ERI on November 24, 2015, as if the acquisition occurred on
January 1, 2015. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for pro forma
presentation; however, we have included the combined information because we believe it provides a meaningful comparison for the
periods presented. |
|
(4) |
|
Other is comprised of (gain) loss on the sale or disposal of property, equity in
income of unconsolidated affiliate and other regulatory gaming assessments, including the item listed in footnote (1)
above. |
|
|
|
|
|
|
|
|
Eldorado Resorts, Inc.
Thomas Reeg, 775-328-0112
President and Chief Financial Officer
investorrelations@eldoradoresorts.com
or
JCIR
Joseph N. Jaffoni, Richard Land
212-835-8500
eri@jcir.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20160804006117/en/