Eldorado Resorts Reports Third Quarter Net Revenue of $487.3 Million, Operating Income of $91.8 Million and
Adjusted EBITDA of $134.1 Million
Eldorado Resorts, Inc. (NASDAQ:ERI) (“Eldorado,” “ERI,” or “the Company”) today reported operating results for the third quarter
ended September 30, 2018.
|
($ in thousands, except per share data)
|
|
Total Net Revenue |
|
Three Months Ended |
|
September 30, |
|
|
2018 |
|
2018 Pre-
Acquisition(1)
|
|
2018 Total(2) |
|
2017 |
|
2017 Pre-
Acquisition(3)
|
|
2017
Total(2)
|
|
Change |
| West |
|
$ |
129,092 |
|
|
$ |
-
|
|
|
$ |
129,092 |
|
|
$ |
134,324 |
|
|
$ |
-
|
|
|
$ |
134,324 |
|
|
(3.9 |
)% |
| Midwest |
|
|
99,834 |
|
|
|
- |
|
|
|
99,834 |
|
|
|
103,651 |
|
|
|
- |
|
|
|
103,651 |
|
|
(3.7 |
)% |
| South |
|
|
106,569 |
|
|
|
- |
|
|
|
106,569 |
|
|
|
107,934 |
|
|
|
- |
|
|
|
107,934 |
|
|
(1.3 |
)% |
| East |
|
|
127,722 |
|
|
|
- |
|
|
|
127,722 |
|
|
|
126,796 |
|
|
|
- |
|
|
|
126,796 |
|
|
0.7 |
% |
| Central |
|
|
23,897 |
|
|
|
16,693 |
|
|
|
40,590 |
|
|
|
- |
|
|
|
42,595 |
|
|
|
42,595 |
|
|
(4.7 |
)% |
| Corporate and Other |
|
|
139 |
|
|
|
- |
|
|
|
139 |
|
|
|
173 |
|
|
|
- |
|
|
|
173 |
|
|
(19.7 |
)% |
| Total Net Revenue |
|
$ |
487,253 |
|
|
$ |
16,693 |
|
|
$ |
503,946 |
|
|
$ |
472,878 |
|
|
$ |
42,595 |
|
|
$ |
515,473 |
|
|
(2.2 |
)% |
|
|
|
|
|
|
| ($ in thousands, except per share data) |
|
Operating Income |
|
Three Months Ended |
|
September 30, |
|
|
2018 |
|
2018 Pre-
Acquisition(1)
|
|
2018 Total(2) |
|
|
2017 |
|
|
2017 Pre-
Acquisition(3)
|
|
2017
Total(2)
|
|
Change |
| West |
|
$ |
31,894 |
|
|
$ |
- |
|
|
$ |
31,894 |
|
|
$ |
32,657 |
|
|
$ |
- |
|
|
$ |
32,657 |
|
|
(2.3 |
)% |
| Midwest |
|
|
26,637 |
|
|
|
- |
|
|
|
26,637 |
|
|
|
24,264 |
|
|
|
- |
|
|
|
24,264 |
|
|
9.8 |
% |
| South |
|
|
16,176 |
|
|
|
- |
|
|
|
16,176 |
|
|
|
13,682 |
|
|
|
- |
|
|
|
13,682 |
|
|
18.2 |
% |
| East |
|
|
23,637 |
|
|
|
- |
|
|
|
23,637 |
|
|
|
21,215 |
|
|
|
- |
|
|
|
21,215 |
|
|
11.4 |
% |
| Central |
|
|
2,868 |
|
|
|
3,070 |
|
|
|
5,938 |
|
|
|
- |
|
|
|
5,588 |
|
|
|
5,588 |
|
|
6.3 |
% |
| Corporate and Other |
|
|
(9,443 |
) |
|
|
- |
|
|
|
(9,443 |
) |
|
|
(10,326 |
) |
|
|
- |
|
|
|
(10,326 |
) |
|
(8.6 |
)% |
| Total Operating Income |
|
$ |
91,769 |
|
|
$ |
3,070 |
|
|
$ |
94,839 |
|
|
$ |
81,492 |
|
|
$ |
5,588 |
|
|
$ |
87,080 |
|
|
8.9 |
% |
|
|
|
|
|
|
| ($ in thousands, except per share data) |
|
Adjusted EBITDA |
|
Three Months Ended |
|
September 30, |
|
|
2018 |
|
2018 Pre-
Acquisition(1)
|
|
2018 Total(2) |
|
|
2017 |
|
|
2017 Pre-
Acquisition(3)
|
|
2017
Total(2)
|
|
Change |
| West |
|
$ |
41,434 |
|
|
$ |
- |
|
|
$ |
41,434 |
|
|
$ |
40,424 |
|
|
$ |
- |
|
|
$ |
40,424 |
|
|
2.5 |
% |
| Midwest |
|
|
35,278 |
|
|
|
- |
|
|
|
35,278 |
|
|
|
32,465 |
|
|
|
- |
|
|
|
32,465 |
|
|
8.7 |
% |
| South |
|
|
26,015 |
|
|
|
- |
|
|
|
26,015 |
|
|
|
20,638 |
|
|
|
- |
|
|
|
20,638 |
|
|
26.1 |
% |
| East |
|
|
32,114 |
|
|
|
- |
|
|
|
32,114 |
|
|
|
28,035 |
|
|
|
- |
|
|
|
28,035 |
|
|
14.5 |
% |
| Central |
|
|
5,850 |
|
|
|
3,952 |
|
|
|
9,802 |
|
|
|
- |
|
|
|
7,330 |
|
|
|
7,330 |
|
|
33.7 |
% |
| Corporate and Other |
|
|
(6,601 |
) |
|
|
- |
|
|
|
(6,601 |
) |
|
|
(6,338 |
) |
|
|
- |
|
|
|
(6,338 |
) |
|
4.1 |
% |
| Total Adjusted EBITDA (4) |
|
$ |
134,090 |
|
|
$ |
3,952 |
|
|
$ |
138,042 |
|
|
$ |
115,224 |
|
|
$ |
7,330 |
|
|
$ |
122,554 |
|
|
12.6 |
% |
|
|
|
|
|
|
| Net Income |
|
$ |
37,704 |
|
|
|
|
|
|
$ |
29,687 |
|
|
|
|
|
|
|
| Basic EPS |
|
$ |
0.49 |
|
|
|
|
|
|
$ |
0.39 |
|
|
|
|
|
|
|
| Diluted EPS |
|
$ |
0.48 |
|
|
|
|
|
|
$ |
0.38 |
|
|
|
|
|
|
|
| |
| ($ in thousands, except per share data) |
|
Total Net Revenue |
|
Nine Months Ended |
|
September 30, |
|
|
2018 |
|
2018 Pre-
Acquisition(1)
|
|
2018 Total(2) |
|
2017 |
|
2017 Pre-
Acquisition(3)
|
|
2017
Total(2)
|
|
Change |
| West |
|
$ |
346,550 |
|
|
$ |
-
|
|
|
$ |
346,550 |
|
|
$ |
297,564 |
|
|
$ |
43,414 |
|
|
$ |
340,978 |
|
|
1.6 |
% |
| Midwest |
|
|
301,235 |
|
|
|
- |
|
|
|
301,235 |
|
|
|
171,292 |
|
|
|
142,237 |
|
|
|
313,529 |
|
|
(3.9 |
)% |
| South |
|
|
341,612 |
|
|
|
- |
|
|
|
341,612 |
|
|
|
228,954 |
|
|
|
131,100 |
|
|
|
360,054 |
|
|
(5.1 |
)% |
| East |
|
|
370,576 |
|
|
|
- |
|
|
|
370,576 |
|
|
|
352,721 |
|
|
|
11,717 |
|
|
|
364,438 |
|
|
1.7 |
% |
| Central |
|
|
23,897 |
|
|
|
96,941 |
|
|
|
120,838 |
|
|
|
- |
|
|
|
126,349 |
|
|
|
126,349 |
|
|
(4.4 |
)% |
| Corporate and Other |
|
|
377 |
|
|
|
- |
|
|
|
377 |
|
|
|
366 |
|
|
|
226 |
|
|
|
592 |
|
|
(36.3 |
)% |
| Total Net Revenue |
|
$ |
1,384,247 |
|
|
$ |
96,941 |
|
|
$ |
1,481,188 |
|
|
$ |
1,050,897 |
|
|
$ |
455,043 |
|
|
$ |
1,505,940 |
|
|
(1.6 |
)% |
|
|
|
|
|
|
| ($ in thousands, except per share data) |
|
Operating Income |
|
Nine Months Ended |
|
September 30, |
|
|
2018 |
|
2018 Pre-
Acquisition(1)
|
|
2018 Total(2) |
|
2017 |
|
2017 Pre-
Acquisition(3)
|
|
2017
Total(2)
|
|
Change |
| West |
|
$ |
63,898 |
|
|
$ |
- |
|
|
$ |
63,898 |
|
|
$ |
50,590 |
|
|
$ |
9,525 |
|
|
$ |
60,115 |
|
|
6.3 |
% |
| Midwest |
|
|
80,725 |
|
|
|
- |
|
|
|
80,725 |
|
|
|
39,676 |
|
|
|
34,819 |
|
|
|
74,495 |
|
|
8.4 |
% |
| South |
|
|
50,099 |
|
|
|
- |
|
|
|
50,099 |
|
|
|
32,210 |
|
|
|
25,086 |
|
|
|
57,296 |
|
|
(12.6 |
)% |
| East |
|
|
67,164 |
|
|
|
- |
|
|
|
67,164 |
|
|
|
54,411 |
|
|
|
(1,072 |
) |
|
|
53,339 |
|
|
25.9 |
% |
| Central |
|
|
2,868 |
|
|
|
18,448 |
|
|
|
21,316 |
|
|
|
- |
|
|
|
21,049 |
|
|
|
21,049 |
|
|
1.3 |
% |
| Corporate and Other |
|
|
(41,377 |
) |
|
|
- |
|
|
|
(41,377 |
) |
|
|
(111,834 |
) |
|
|
(8,811 |
) |
|
|
(120,645 |
) |
|
(65.7 |
)% |
| Total Operating Income |
|
$ |
223,377 |
|
|
$ |
18,448 |
|
|
$ |
241,825 |
|
|
$ |
65,053 |
|
|
$ |
80,596 |
|
|
$ |
145,649 |
|
|
66.0 |
% |
|
|
|
|
|
|
| ($ in thousands, except per share data) |
|
Adjusted EBITDA |
|
Nine Months Ended |
|
September 30, |
|
|
2018 |
|
2018 Pre-
Acquisition(1)
|
|
2018 Total(2) |
|
2017 |
|
2017 Pre-
Acquisition(3)
|
|
2017
Total(2)
|
|
Change |
| West |
|
$ |
91,616 |
|
|
$ |
- |
|
|
$ |
91,616 |
|
|
$ |
69,847 |
|
|
$ |
13,231 |
|
|
$ |
83,078 |
|
|
10.3 |
% |
| Midwest |
|
|
105,717 |
|
|
|
- |
|
|
|
105,717 |
|
|
|
52,923 |
|
|
|
46,856 |
|
|
|
99,779 |
|
|
6.0 |
% |
| South |
|
|
86,634 |
|
|
|
- |
|
|
|
86,634 |
|
|
|
46,954 |
|
|
|
30,998 |
|
|
|
77,952 |
|
|
11.1 |
% |
| East |
|
|
87,657 |
|
|
|
- |
|
|
|
87,657 |
|
|
|
78,597 |
|
|
|
(120 |
) |
|
|
78,477 |
|
|
11.7 |
% |
| Central |
|
|
5,850 |
|
|
|
23,403 |
|
|
|
29,253 |
|
|
|
- |
|
|
|
26,342 |
|
|
|
26,342 |
|
|
11.1 |
% |
| Corporate and Other |
|
|
(21,824 |
) |
|
|
- |
|
|
|
(21,824 |
) |
|
|
(17,016 |
) |
|
|
(5,996 |
) |
|
|
(23,012 |
) |
|
(5.2 |
)% |
| Total Adjusted EBITDA (4) |
|
$ |
355,650 |
|
|
$ |
23,403 |
|
|
$ |
379,053 |
|
|
$ |
231,305 |
|
|
$ |
111,311 |
|
|
$ |
342,616 |
|
|
10.6 |
% |
|
|
|
|
|
|
| Net Income (Loss) |
|
$ |
95,355 |
|
|
|
|
|
|
$ |
(15,558 |
) |
|
|
|
|
|
|
| Basic EPS |
|
$ |
1.23 |
|
|
|
|
|
|
$ |
(0.24 |
) |
|
|
|
|
|
|
| Diluted EPS |
|
$ |
1.22 |
|
|
|
|
|
|
$ |
(0.24 |
) |
|
|
|
|
|
|
| (1) |
|
Figures are for Grand Victoria Casino (“GV”) for the period beginning July 1, 2018
and ending August 6, 2018 for the three months ended September 30, 2018 and the period beginning January 1, 2018 and ending
August 6, 2018 for the nine months ended September 30, 2018. |
| (2) |
|
Total figures for 2018 include combined results of operations for ERI and GV and
total figures for 2017 include combined results of operations for ERI, GV and Isle of Capri Casino (“Isle”) for periods
preceding the date that ERI acquired GV 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 for the three and nine months ended September 30, 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. |
| |
“The 2018 third quarter was another impressive period of growth for Eldorado Resorts as Adjusted EBITDA rose at 17 of our 21
properties, inclusive of the Grand Victoria Casino which was acquired in August. As a result, all five of our property segments
generated year over year Adjusted EBITDA growth, including double-digit growth for our South, East and Central segments,” said Gary
Carano, Chairman and Chief Executive Officer of Eldorado. “In addition, the third quarter Adjusted EBITDA margin rose at all five
of our reporting segments with the increases ranging between 200 and 690 basis points as we continue to apply operational
discipline focused on delivering profitable revenue and driving strong EBITDA gains. Third quarter consolidated Adjusted EBITDA
rose 12.6% on a year over year basis on top of the strong 16.2% growth achieved in prior year period, our property-level Adjusted
EBITDA margin improved 370 basis points to 28.7% and our consolidated Adjusted EBITDA margin rose 360 basis points to 27.4%.
“We completed the acquisition of Grand Victoria Casino, one of the premier casinos in the Chicagoland market, in August and
completed the acquisition of Tropicana Entertainment in early October. These acquisitions have significantly expanded the scale of
our gaming operations and diversified our geographic reach into seven new markets that have minimal overlap with our existing
operations. The addition of these eight properties to our operations and our focus on disciplined marketing, promotions,
advertising, and food and beverage and labor expense management are expected to drive growth in free cash flow, positioning us to
reduce leverage while evaluating additional uses of free cash flow, including potential continued growth through acquisitions and
the return of capital to shareholders.
“In early September we entered into a landmark agreement to partner with William Hill to address in-casino, mobile and online
sports wagering opportunities where allowed in our current markets and as enabling legislation is enacted in the eight other
markets where we will operate. In addition to the equity interest in our partner’s U.S. and global operations that will be issued
to us following receipt of required regulatory approvals, sports wagering is expected to result in increased visitation and a new
revenue source at our properties where we offer it, which we anticipate will also drive growth in our gaming and non-gaming
operations. We opened a temporary sportsbook in Atlantic City’s Tropicana Casino and Resort on October 25 and expect to open our
sportsbook at Mountaineer Casino Racetrack and Resort in Chester, West Virginia later this month.
“We are excited about our future as we continue to integrate our newly acquired properties, focus on initiatives that are
expected to deliver margin improvement from our operations, invest in facility enhancements that are anticipated to deliver
attractive returns, and position ourselves to benefit from developing sports wagering opportunity in the U.S.”
Balance Sheet and Liquidity
At September 30, 2018, Eldorado had $164.1 million in cash and cash equivalents, excluding restricted cash. Outstanding
indebtedness at September 30, 2018 totaled $3.0 billion, including $600.0 million of new debt from the issuance of 6.0% senior
notes due 2026 and approximately $180.0 million outstanding on the Company’s revolving credit facility. Capital expenditures in the
third quarter and first nine months of 2018 totaled $33.9 million and $89.1 million, respectively.
Presque Isle Downs and Casino and Lady Luck Nemacolin are presented as assets held for sale as of September 30, 2018. Lady Luck
Casino Vicksburg is no longer presented as an asset held for sale as of September 30, 2018.
Summary of 2018 Third Quarter Region Results
The property results for Presque Isle Downs and Casino and Lady Luck Nemacolin are included in operations until the announced
divestitures of these properties are completed (expected to be early 2019). Full third quarter operating results for Grand Victoria
Casino, which was acquired on August 7, are included in the Central region below and throughout this release. Beginning with the
reporting of 2018 fourth quarter results, the property results for the Tropicana Laughlin Hotel and Casino and the MontBleu Casino
Resort & Spa will be reported as part of the West region; Belle of Baton Rouge Casino & Hotel and Trop Casino Greenville
will be reported as part of the South region; Tropicana Casino and Resort, Atlantic City will be reported as part of the East
region; and Tropicana Evansville and Lumière Place will be reported as part of the Central region.
West Region (THE ROW, Isle Casino Hotel Black Hawk and Lady Luck Casino Black Hawk)
Net revenue for the West Region properties for the quarter ended September 30, 2018 declined approximately 3.9% to $129.1
million compared to $134.3 million in the prior-year period, and operating income declined to $31.9 million from $32.7 million in
the year-ago quarter. Adjusted EBITDA increased 2.5% to $41.4 million reflecting an Adjusted EBITDA margin improvement of 200 basis
points to 32.1%, compared to Adjusted EBITDA of $40.4 million on an Adjusted EBITDA margin of 30.1% in the prior-year period. The
combined Adjusted EBITDA margin for the Black Hawk properties exceeded 40% in the quarter.
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 September 30, 2018 decreased approximately 3.7% to $99.8
million compared to $103.7 million in the prior-year period, while operating income rose to $26.6 million from $24.3 million in the
year-ago quarter. Adjusted EBITDA rose approximately 8.7% to $35.3 million as the Adjusted EBITDA margin for the segment rose 400
basis points to 35.3%. 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 $32.5 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
and Isle of Capri Lake Charles)
Net revenue for the South Region properties for the quarter ended September 30, 2018 declined approximately 1.3% to $106.6
million compared to $107.9 million in the prior-year period, while operating income increased to $16.2 million from $13.7 million
in the year-ago quarter. Adjusted EBITDA increased 26.1% to $26.0 million as the Adjusted EBITDA margin for the segment rose 530
basis points to 24.4%.
East Region (Presque Isle Downs and Casino, Lady Luck Casino Nemacolin, Eldorado Scioto Downs Racino and Mountaineer
Casino, Racetrack and Resort)
Net revenue for the East Region properties for the quarter ended September 30, 2018 increased approximately 0.7% to $127.7
million compared to $126.8 million in the prior-year period, while operating income grew to $23.6 million from $21.2 million in the
year-ago quarter. Adjusted EBITDA for the East Region rose 14.5% to $32.1 million compared to Adjusted EBITDA of $28.0 million in
the prior-year period as the East Region’s Adjusted EBITDA margin improved 300 basis points to 25.1%. Eldorado Scioto Downs
generated Adjusted EBITDA growth for the fifteenth consecutive quarter.
Central Region (Grand Victoria Casino)
Net revenue for the Central Region for the quarter ended September 30, 2018 declined approximately 4.7% to $40.6 million
compared to $42.6 million in the prior-year period, while operating income grew to $5.9 million from $5.6 million in the year-ago
quarter. Adjusted EBITDA for the Central Region rose 33.7% to $9.8 million compared to Adjusted EBITDA of $7.3 million in the
prior-year period as the Central Region’s Adjusted EBITDA margin improved 690 basis points to 24.1%.
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, costs associated with the Presque Isle Downs, Vicksburg, Lake Charles and
Nemacolin sales, income related to the termination of the Vicksburg sale, 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 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 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.
Third 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 323/794-2590, conference ID 1925022 (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-eight 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 more than 30,000 slot machines and VLTs and 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 the impact of such obligations on our operations and liquidity; our ability to identify and execute acquisition
and development opportunities; 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.
|
ELDORADO RESORTS, INC.
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
($ in thousands, except per share data)
|
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Casino |
|
$ |
|
362,877 |
|
|
$ |
|
347,537 |
|
|
$ |
|
1,046,010 |
|
|
$ |
|
764,684 |
|
| Pari-mutuel commissions |
|
|
|
5,292 |
|
|
|
|
5,111 |
|
|
|
|
14,407 |
|
|
|
|
9,859 |
|
| Food and beverage |
|
|
|
58,153 |
|
|
|
|
59,537 |
|
|
|
|
164,644 |
|
|
|
|
141,667 |
|
| Hotel |
|
|
|
44,780 |
|
|
|
|
45,962 |
|
|
|
|
114,447 |
|
|
|
|
99,545 |
|
| Other |
|
|
|
16,151 |
|
|
|
|
14,731 |
|
|
|
|
44,739 |
|
|
|
|
35,142 |
|
| Net revenues |
|
|
|
487,253 |
|
|
|
|
472,878 |
|
|
|
|
1,384,247 |
|
|
|
|
1,050,897 |
|
| EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Casino |
|
|
|
175,333 |
|
|
|
|
169,322 |
|
|
|
|
506,536 |
|
|
|
|
389,010 |
|
| Pari-mutuel commissions |
|
|
|
4,729 |
|
|
|
|
4,657 |
|
|
|
|
13,022 |
|
|
|
|
9,894 |
|
| Food and beverage |
|
|
|
45,381 |
|
|
|
|
51,220 |
|
|
|
|
134,927 |
|
|
|
|
120,041 |
|
| Hotel |
|
|
|
13,977 |
|
|
|
|
15,513 |
|
|
|
|
40,178 |
|
|
|
|
36,862 |
|
| Other |
|
|
|
9,315 |
|
|
|
|
9,632 |
|
|
|
|
25,030 |
|
|
|
|
22,702 |
|
| Marketing and promotions |
|
|
|
23,122 |
|
|
|
|
26,439 |
|
|
|
|
66,255 |
|
|
|
|
58,099 |
|
| General and administrative |
|
|
|
75,599 |
|
|
|
|
75,650 |
|
|
|
|
223,546 |
|
|
|
|
168,339 |
|
| Corporate |
|
|
|
9,217 |
|
|
|
|
7,718 |
|
|
|
|
33,018 |
|
|
|
|
21,734 |
|
| Impairment charges |
|
|
|
3,787 |
|
|
|
|
— |
|
|
|
|
13,602 |
|
|
|
|
— |
|
| Depreciation and amortization |
|
|
|
35,760 |
|
|
|
|
29,122 |
|
|
|
|
99,204 |
|
|
|
|
69,635 |
|
| Total operating expenses |
|
|
|
396,220 |
|
|
|
|
389,273 |
|
|
|
|
1,155,318 |
|
|
|
|
896,316 |
|
| (Loss) gain on sale or disposal of property and equipment |
|
|
|
(110 |
) |
|
|
|
4 |
|
|
|
|
(393 |
) |
|
|
|
(51 |
) |
| Proceeds from terminated sale |
|
|
|
5,000 |
|
|
|
|
— |
|
|
|
|
5,000 |
|
|
|
|
— |
|
| Transaction expenses |
|
|
|
(4,091 |
) |
|
|
|
(2,094 |
) |
|
|
|
(10,043 |
) |
|
|
|
(89,172 |
) |
| Equity in loss of unconsolidated affiliates |
|
|
|
(63 |
) |
|
|
|
(23 |
) |
|
|
|
(116 |
) |
|
|
|
(305 |
) |
| Operating income |
|
|
|
91,769 |
|
|
|
|
81,492 |
|
|
|
|
223,377 |
|
|
|
|
65,053 |
|
| OTHER EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
|
(34,085 |
) |
|
|
|
(29,183 |
) |
|
|
|
(96,579 |
) |
|
|
|
(69,380 |
) |
| Loss on early retirement of debt, net |
|
|
|
— |
|
|
|
|
(10,030 |
) |
|
|
|
(162 |
) |
|
|
|
(37,347 |
) |
| Total other expense |
|
|
|
(34,085 |
) |
|
|
|
(39,213 |
) |
|
|
|
(96,741 |
) |
|
|
|
(106,727 |
) |
| Net income (loss) before income taxes |
|
|
|
57,684 |
|
|
|
|
42,279 |
|
|
|
|
126,636 |
|
|
|
|
(41,674 |
) |
| (Provision) benefit for income taxes |
|
|
|
(19,980 |
) |
|
|
|
(12,592 |
) |
|
|
|
(31,281 |
) |
|
|
|
26,116 |
|
| Net income (loss) |
|
$ |
|
37,704 |
|
|
$ |
|
29,687 |
|
|
$ |
|
95,355 |
|
|
$ |
|
(15,558 |
) |
| Net income (loss) per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
|
0.49 |
|
|
$ |
|
0.39 |
|
|
$ |
|
1.23 |
|
|
$ |
|
(0.24 |
) |
| Diluted |
|
$ |
|
0.48 |
|
|
$ |
|
0.38 |
|
|
$ |
|
1.22 |
|
|
$ |
|
(0.24 |
) |
| Weighted average basic shares outstanding |
|
|
|
77,522,664 |
|
|
|
|
76,902,070 |
|
|
|
|
77,445,611 |
|
|
|
|
63,821,705 |
|
| Weighted average diluted shares outstanding |
|
|
|
78,283,588 |
|
|
|
|
77,959,689 |
|
|
|
|
78,208,040 |
|
|
|
|
63,821,705 |
|
| 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. See reconciliation table on the last page of this release for further details. |
| |
|
ELDORADO RESORTS, INC.
|
|
SUMMARY INFORMATION AND RECONCILIATION OF
|
|
OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
|
|
($ in thousands)
|
| |
|
|
Three Months Ended September 30, 2018 |
|
|
|
|
|
Operating
|
|
Depreciation and
|
|
Stock-based
|
|
Transaction
|
|
|
|
Adjusted
|
|
|
Income
|
|
Amortization
|
|
Compensation
|
|
Expenses (6)
|
|
Other (7) |
|
EBITDA
|
| Excluding Pre-Acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
31,894 |
|
|
$ |
9,475
|
|
|
$ |
-
|
|
|
$ |
-
|
|
|
$ |
65 |
|
|
$ |
41,434 |
|
| Midwest |
|
|
26,637 |
|
|
|
8,605 |
|
|
|
15 |
|
|
|
- |
|
|
|
21 |
|
|
|
35,278 |
|
| South |
|
|
16,176 |
|
|
|
9,704 |
|
|
|
9 |
|
|
|
- |
|
|
|
126 |
|
|
|
26,015 |
|
| East |
|
|
23,637 |
|
|
|
4,486 |
|
|
|
2 |
|
|
|
- |
|
|
|
3,989 |
|
|
|
32,114 |
|
| Central |
|
|
2,868 |
|
|
|
2,215 |
|
|
|
- |
|
|
|
- |
|
|
|
767 |
|
|
|
5,850 |
|
| Corporate |
|
|
(9,443 |
) |
|
|
1,275 |
|
|
|
2,468 |
|
|
|
4,091 |
|
|
|
(4,992 |
) |
|
|
(6,601 |
) |
| Total Excluding Pre-Acquisition |
|
$ |
91,769 |
|
|
$ |
35,760 |
|
|
$ |
2,494 |
|
|
$ |
4,091 |
|
|
$ |
(24 |
) |
|
$ |
134,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pre-Acquisition (1): |
|
|
|
|
|
|
|
|
|
|
|
|
| Central |
|
$ |
3,070 |
|
|
$ |
727 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
155 |
|
|
$ |
3,952 |
|
| Total Pre-Acquisition |
|
$ |
3,070 |
|
|
$ |
727 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
155 |
|
|
$ |
3,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Including Pre-Acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
31,894 |
|
|
$ |
9,475 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
65 |
|
|
$ |
41,434 |
|
| Midwest |
|
|
26,637 |
|
|
|
8,605 |
|
|
|
15 |
|
|
|
- |
|
|
|
21 |
|
|
|
35,278 |
|
| South |
|
|
16,176 |
|
|
|
9,704 |
|
|
|
9 |
|
|
|
- |
|
|
|
126 |
|
|
|
26,015 |
|
| East |
|
|
23,637 |
|
|
|
4,486 |
|
|
|
2 |
|
|
|
- |
|
|
|
3,989 |
|
|
|
32,114 |
|
| Central |
|
|
5,938 |
|
|
|
2,942 |
|
|
|
- |
|
|
|
- |
|
|
|
922 |
|
|
|
9,802 |
|
| Corporate |
|
|
(9,443 |
) |
|
|
1,275 |
|
|
|
2,468 |
|
|
|
4,091 |
|
|
|
(4,992 |
) |
|
|
(6,601 |
) |
| Total Including Pre-Acquisition (2) |
|
$ |
94,839 |
|
|
$ |
36,487 |
|
|
$ |
2,494 |
|
|
$ |
4,091 |
|
|
$ |
131 |
|
|
$ |
138,042 |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2017 (8) |
|
|
|
|
|
Operating
|
|
Depreciation and
|
|
Stock-based
|
|
Transaction
|
|
|
|
Adjusted
|
|
|
Income
|
|
Amortization
|
|
Compensation
|
|
Expenses (6)
|
|
Other (7) |
|
EBITDA
|
| Excluding Pre-Acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
32,657 |
|
|
$ |
7,653 |
|
|
$ |
67 |
|
|
$ |
- |
|
|
$ |
47 |
|
|
$ |
40,424 |
|
| Midwest |
|
|
24,264 |
|
|
|
7,995 |
|
|
|
67 |
|
|
|
- |
|
|
|
139 |
|
|
|
32,465 |
|
| South |
|
|
13,682 |
|
|
|
6,055 |
|
|
|
46 |
|
|
|
- |
|
|
|
855 |
|
|
|
20,638 |
|
| East |
|
|
21,215 |
|
|
|
6,732 |
|
|
|
5 |
|
|
|
- |
|
|
|
83 |
|
|
|
28,035 |
|
| Central |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Corporate |
|
|
(10,326 |
) |
|
|
687 |
|
|
|
1,207 |
|
|
|
2,094 |
|
|
|
- |
|
|
|
(6,338 |
) |
| Total Excluding Pre-Acquisition |
|
$ |
81,492 |
|
|
$ |
29,122 |
|
|
$ |
1,392 |
|
|
$ |
2,094 |
|
|
$ |
1,124 |
|
|
$ |
115,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pre-Acquisition (3): |
|
|
|
|
|
|
|
|
|
|
|
|
| Central |
|
$ |
5,588 |
|
|
$ |
1,742 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,330 |
|
| Total Pre- Acquisition |
|
$ |
5,588 |
|
|
$ |
1,742 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Including Pre-Acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
32,657 |
|
|
$ |
7,653 |
|
|
$ |
67 |
|
|
$ |
- |
|
|
$ |
47 |
|
|
$ |
40,424 |
|
| Midwest |
|
|
24,264 |
|
|
|
7,995 |
|
|
|
67 |
|
|
|
- |
|
|
|
139 |
|
|
|
32,465 |
|
| South |
|
|
13,682 |
|
|
|
6,055 |
|
|
|
46 |
|
|
|
- |
|
|
|
855 |
|
|
|
20,638 |
|
| East |
|
|
21,215 |
|
|
|
6,732 |
|
|
|
5 |
|
|
|
- |
|
|
|
83 |
|
|
|
28,035 |
|
| Central |
|
|
5,588 |
|
|
|
1,742 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,330 |
|
| Corporate |
|
|
(10,326 |
) |
|
|
687 |
|
|
|
1,207 |
|
|
|
2,094 |
|
|
|
- |
|
|
|
(6,338 |
) |
| Total Including Pre-Acquisition (4) |
|
$ |
87,080 |
|
|
$ |
30,864 |
|
|
$ |
1,392 |
|
|
$ |
2,094 |
|
|
$ |
1,124 |
|
|
$ |
122,554 |
|
| |
|
|
Nine Months Ended September 30, 2018 |
|
|
|
|
|
Operating
|
|
Depreciation and
|
|
Stock-based
|
|
Transaction
|
|
|
|
Adjusted
|
|
|
Income
|
|
Amortization
|
|
Compensation
|
|
Expenses (6)
|
|
Other (7) |
|
EBITDA
|
| Excluding Pre-Acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
63,898 |
|
|
$ |
27,046
|
|
|
$ |
(32 |
) |
|
$ |
-
|
|
|
$ |
704 |
|
|
$ |
91,616 |
|
| Midwest |
|
|
80,725 |
|
|
|
24,654 |
|
|
|
90 |
|
|
|
- |
|
|
|
248 |
|
|
|
105,717 |
|
| South |
|
|
50,099 |
|
|
|
26,343 |
|
|
|
50 |
|
|
|
- |
|
|
|
10,142 |
|
|
|
86,634 |
|
| East |
|
|
67,164 |
|
|
|
15,252 |
|
|
|
11 |
|
|
|
- |
|
|
|
5,230 |
|
|
|
87,657 |
|
| Central |
|
|
2,868 |
|
|
|
2,215 |
|
|
|
- |
|
|
|
- |
|
|
|
767 |
|
|
|
5,850 |
|
| Corporate |
|
|
(41,377 |
) |
|
|
3,694 |
|
|
|
9,526 |
|
|
|
10,043 |
|
|
|
(3,710 |
) |
|
|
(21,824 |
) |
| Total Excluding Pre-Acquisition |
|
$ |
223,377 |
|
|
$ |
99,204 |
|
|
$ |
9,645 |
|
|
$ |
10,043 |
|
|
$ |
13,381 |
|
|
$ |
355,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pre-Acquisition (1): |
|
|
|
|
|
|
|
|
|
|
|
|
| Central |
|
$ |
18,448 |
|
|
$ |
4,420 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
535 |
|
|
$ |
23,403 |
|
| Total Pre- Acquisition |
|
$ |
18,448 |
|
|
$ |
4,420 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
535 |
|
|
$ |
23,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Including Pre-Acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
63,898 |
|
|
$ |
27,046 |
|
|
$ |
(32 |
) |
|
$ |
- |
|
|
$ |
704 |
|
|
$ |
91,616 |
|
| Midwest |
|
|
80,725 |
|
|
|
24,654 |
|
|
|
90 |
|
|
|
- |
|
|
|
248 |
|
|
|
105,717 |
|
| South |
|
|
50,099 |
|
|
|
26,343 |
|
|
|
50 |
|
|
|
- |
|
|
|
10,142 |
|
|
|
86,634 |
|
| East |
|
|
67,164 |
|
|
|
15,252 |
|
|
|
11 |
|
|
|
- |
|
|
|
5,230 |
|
|
|
87,657 |
|
| Central |
|
|
21,316 |
|
|
|
6,635 |
|
|
|
- |
|
|
|
- |
|
|
|
1,302 |
|
|
|
29,253 |
|
| Corporate |
|
|
(41,377 |
) |
|
|
3,694 |
|
|
|
9,526 |
|
|
|
10,043 |
|
|
|
(3,710 |
) |
|
|
(21,824 |
) |
| Total Including Pre-Acquisition (2) |
|
$ |
241,825 |
|
|
$ |
103,624 |
|
|
$ |
9,645 |
|
|
$ |
10,043 |
|
|
$ |
13,916 |
|
|
$ |
379,053 |
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2017 (8) |
|
|
|
|
|
Operating
|
|
Depreciation and
|
|
Stock-based
|
|
Transaction
|
|
|
|
Adjusted
|
|
|
Income
|
|
Amortization
|
|
Compensation
|
|
Expenses (6)
|
|
Other (7) |
|
EBITDA
|
| Excluding Pre-Acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
50,590 |
|
|
$ |
18,867 |
|
|
$ |
119 |
|
|
$ |
- |
|
|
$ |
271 |
|
|
$ |
69,847 |
|
| Midwest |
|
|
39,676 |
|
|
|
12,961 |
|
|
|
153 |
|
|
|
- |
|
|
|
133 |
|
|
|
52,923 |
|
| South |
|
|
32,210 |
|
|
|
12,649 |
|
|
|
110 |
|
|
|
- |
|
|
|
1,985 |
|
|
|
46,954 |
|
| East |
|
|
54,411 |
|
|
|
23,885 |
|
|
|
9 |
|
|
|
- |
|
|
|
292 |
|
|
|
78,597 |
|
| Central |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Corporate |
|
|
(111,834 |
) |
|
|
1,273 |
|
|
|
4,063 |
|
|
|
89,172 |
|
|
|
310 |
|
|
|
(17,016 |
) |
| Total Excluding Pre-Acquisition |
|
$ |
65,053 |
|
|
$ |
69,635 |
|
|
$ |
4,454 |
|
|
$ |
89,172 |
|
|
$ |
2,991 |
|
|
$ |
231,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pre-Acquisition (5): |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
9,525 |
|
|
$ |
3,694 |
|
|
$ |
8 |
|
|
$ |
- |
|
|
$ |
4 |
|
|
$ |
13,231 |
|
| Midwest |
|
|
34,819 |
|
|
|
11,952 |
|
|
|
51 |
|
|
|
- |
|
|
|
34 |
|
|
|
46,856 |
|
| South |
|
|
25,086 |
|
|
|
5,693 |
|
|
|
35 |
|
|
|
- |
|
|
|
184 |
|
|
|
30,998 |
|
| East |
|
|
(1,072 |
) |
|
|
952 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(120 |
) |
| Central |
|
|
21,049 |
|
|
|
5,293 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26,342 |
|
| Corporate |
|
|
(8,811 |
) |
|
|
371 |
|
|
|
1,631 |
|
|
|
286 |
|
|
|
527 |
|
|
|
(5,996 |
) |
| Total Pre- Acquisition |
|
$ |
80,596 |
|
|
$ |
27,955 |
|
|
$ |
1,725 |
|
|
$ |
286 |
|
|
$ |
749 |
|
|
$ |
111,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Including Pre-Acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
60,115 |
|
|
$ |
22,561 |
|
|
$ |
127 |
|
|
$ |
- |
|
|
$ |
275 |
|
|
$ |
83,078 |
|
| Midwest |
|
|
74,495 |
|
|
|
24,913 |
|
|
|
204 |
|
|
|
- |
|
|
|
167 |
|
|
|
99,779 |
|
| South |
|
|
57,296 |
|
|
|
18,342 |
|
|
|
145 |
|
|
|
- |
|
|
|
2,169 |
|
|
|
77,952 |
|
| East |
|
|
53,339 |
|
|
|
24,837 |
|
|
|
9 |
|
|
|
- |
|
|
|
292 |
|
|
|
78,477 |
|
| Central |
|
|
21,049 |
|
|
|
5,293 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26,342 |
|
| Corporate |
|
|
(120,645 |
) |
|
|
1,644 |
|
|
|
5,694 |
|
|
|
89,458 |
|
|
|
837 |
|
|
|
(23,012 |
) |
| Total Including Pre-Acquisition (4) |
|
$ |
145,649 |
|
|
$ |
97,590 |
|
|
$ |
6,179 |
|
|
$ |
89,458 |
|
|
$ |
3,740 |
|
|
$ |
342,616 |
|
| (1) |
|
Figures are for GV for the period beginning July 1, 2018 and ending August 6, 2018
for the three months ended September 30, 2018 and the period beginning January 1, 2018 and ending August 6, 2018 for the nine
months ended September 30, 2018. |
| (2) |
|
Total figures for 2018 include combined results of operations for GV and the Company
for periods preceding the date that the Company acquired GV. Such presentation does not conform with GAAP or the Securities and
Exchange Commission rules for proforma 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
operations reported by the Company. |
| (3) |
|
Figures are for GV for the three months ended September 30, 2017. |
| (4) |
|
Total figures for three months ended September 30, 2017 include combined results of
operations for GV and the Company for periods preceding the date that the Company acquired GV. Total figures for the nine
months ended September 30, 2018 include combined results of operations for GV, Isle, and the Company for periods preceding the
dates that the Company acquired GV and Isle. Such presentation does not conform with GAAP or the Securities and Exchange
Commission rules for proforma 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 operations reported by
the Company. |
| (5) |
|
Figures are for GV for the nine months ended September 30, 2017 and for Isle for the
four months ended April 30, 2017. The Isle figures were prepared by the Company to reflect Isle’s unaudited consolidated
historical operating revenues, operating income and Adjusted EBITDA for periods corresponding to the Company’s fiscal calendar.
Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and
do not conform to GAAP. |
| (6) |
|
Transaction expenses represent costs related to the acquisition of Isle for the three
and nine months ended September 30, 2017 and costs related to the acquisitions of GV and Tropicana for the three and nine
months ended September 30, 2018. |
| (7) |
|
Other is comprised of severance expense, (gain) loss on the sale or disposal of
property and equipment, equity in income (loss) of unconsolidated affiliate, impairment charges, income totaling $5.0 million
from the terminated sale of Vicksburg and other non-cash regulatory gaming assessments for the three and nine months ended
September 30, 2018 and 2017. Also included are costs associated with the sales of Presque Isle Downs and Nemacolin, the
terminated sale of Vicksburg and selling costs paid directly by GV for the three and nine months ended September 30, 2018.
Costs associated with the terminated sale of Lake Charles are also included for the three and nine months ended September 30,
2017. |
| (8) |
|
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. See Note 2 to our Condensed Notes to Unaudited Consolidated Financial Statements for
additional information. |
| |
|
|
Reconciliation Table
|
|
|
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
ASC 606
|
|
Other
|
|
|
|
|
As Reported |
|
Adjustments
|
|
Reclassifications (1)
|
|
As Adjusted |
| Gross revenues |
|
$ |
483,036 |
|
|
$ |
(39,651 |
) |
|
$ |
29,493 |
|
|
$ |
472,878 |
|
| Promotional allowances |
|
|
(38,162 |
) |
|
|
41,785 |
|
|
|
(3,623 |
) |
|
|
- |
|
| Net revenues |
|
$ |
444,874 |
|
|
$ |
2,134 |
|
|
$ |
25,870 |
|
|
$ |
472,878 |
|
| Operating income |
|
|
78,924 |
|
|
|
182 |
|
|
|
2,386 |
|
|
|
81,492 |
|
| Net income |
|
|
29,554 |
|
|
|
133 |
|
|
|
- |
|
|
|
29,687 |
|
|
|
|
|
|
|
|
|
Reconciliation Table
|
|
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
ASC 606
|
|
Other
|
|
|
|
|
As Reported |
|
Adjustments
|
|
Reclassifications (1)
|
|
As Adjusted |
| Gross revenues |
|
$ |
1,088,754 |
|
|
$ |
(88,225 |
) |
|
$ |
50,368 |
|
|
$ |
1,050,897 |
|
| Promotional allowances |
|
|
(87,776 |
) |
|
|
93,838 |
|
|
|
(6,062 |
) |
|
|
- |
|
| Net revenues |
|
$ |
1,000,978 |
|
|
$ |
5,613 |
|
|
$ |
44,306 |
|
|
$ |
1,050,897 |
|
| Operating income |
|
|
60,955 |
|
|
|
172 |
|
|
|
3,926 |
|
|
|
65,053 |
|
| Net (loss) income |
|
|
(15,754 |
) |
|
|
196 |
|
|
|
- |
|
|
|
(15,558 |
) |
1. Other reclassifications are comprised of the reversal of our Lake Charles property from discontinued operations and other
reclassifications to conform to current period presentations.
Thomas Reeg
President and Chief Financial Officer
Eldorado Resorts, Inc.
775/328-0112
investorrelations@eldoradoresorts.com
or
Joseph N. Jaffoni, Richard Land
JCIR
212/835-8500
eri@jcir.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005825/en/