Caesars Entertainment, Inc. - FORM 8-K/A - EX-99.1 - November 9, 2015

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8-K/A - 8-K/A - Caesars Entertainment, Inc.a15-22625_18ka.htm

Exhibit 99.1

 

ELDORADO RESORTS, INC.

CONSOLIDATED BALANCE SHEETS

($ in thousands)

 

 

 

September 30, 2015

 

December 31, 2014

ASSETS

 

(unaudited)

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

    $

48,751

 

    $

87,604

Restricted cash

 

1,640

 

5,734

Escrow cash

 

55,460

 

-

Accounts receivable, net

 

9,146

 

7,112

Due from affiliates

 

419

 

362

Inventories

 

7,165

 

7,234

Prepaid expenses and other

 

9,757

 

9,447

Total current assets

 

132,338

 

117,493

RESTRICTED CASH

 

-

 

2,500

INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES

 

17,145

 

14,009

PROPERTY AND EQUIPMENT, NET

 

442,221

 

456,139

GAMING LICENSES AND OTHER INTANGIBLES, NET

 

486,792

 

491,913

NON-OPERATING REAL PROPERTY

 

16,419

 

16,419

GOODWILL

 

66,826

 

66,826

OTHER ASSETS, NET

 

7,204

 

6,260

Total assets

 

    $

1,168,945

 

    $

1,171,559

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Current portion of long-term debt

 

    $

4,256

 

    $

32

Accounts payable

 

13,020

 

12,184

Accrued payable

 

6,876

 

27,469

Income taxes payable

 

103

 

137

Accrued gaming taxes and assessments

 

12,671

 

12,998

Accrued payroll

 

11,411

 

9,441

Accrued other liabilities

 

18,845

 

26,788

Deferred income taxes

 

2,608

 

2,608

Due to affiliates

 

177

 

187

Total current liabilities

 

69,967

 

91,844

LONG-TERM DEBT, LESS CURRENT PORTION

 

786,298

 

775,059

DEFERRED INCOME TAXES

 

147,645

 

144,439

OTHER LIABILITIES

 

8,228

 

8,595

Total liabilities

 

1,012,138

 

1,019,937

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

Total stockholders’ equity

 

156,807

 

151,622

Total liabilities and stockholders’ equity

 

    $

1,168,945

 

    $

1,171,559

 


 

ELDORADO RESORTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30

 

September 30

 

 

2015

 

2014

 

2015

 

2014

Revenues:

 

 

 

 

 

 

 

 

Casino

 

       $

156,357

 

       $

63,457

 

       $

460,807

 

       $

156,280

Pari-mutuel commissions

 

3,781

 

446

 

8,042

 

446

Food and beverage

 

24,040

 

15,972

 

69,717

 

45,348

Hotel

 

9,193

 

7,555

 

24,671

 

20,747

Other

 

6,165

 

3,098

 

17,464

 

7,515

 

 

199,536

 

90,528

 

580,701

 

230,336

Less: promotional allowances

 

(15,996)

 

(11,579)

 

(47,077)

 

(32,608)

Net operating revenues

 

183,540

 

78,949

 

533,624

 

197,728

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Casino

 

90,398

 

34,596

 

268,282

 

83,877

Pari-mutuel commissions

 

3,625

 

520

 

8,414

 

520

Food and beverage

 

12,461

 

8,462

 

36,384

 

22,889

Hotel

 

2,340

 

2,109

 

6,843

 

5,969

Other

 

4,079

 

2,324

 

10,513

 

5,747

Marketing and promotions

 

7,816

 

5,262

 

22,321

 

14,148

General and administrative

 

26,937

 

14,387

 

81,595

 

36,016

Depreciation and amortization

 

13,954

 

5,283

 

42,454

 

13,557

Total operating expenses

 

161,610

 

72,943

 

476,806

 

182,723

 

 

 

 

 

 

 

 

 

Loss on sale or disposal of property

 

(6)

 

(3)

 

(2)

 

(3)

Acquisition charges

 

(380)

 

(4,463)

 

(717)

 

(6,916)

Equity in income of unconsolidated affiliates

 

2,548

 

1,238

 

3,136

 

3,019

Operating income

 

24,092

 

2,778

 

59,235

 

11,105

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Loss on early retirement of debt

 

(1,790)

 

-

 

(1,790)

 

-

Interest expense, net

 

(14,482)

 

(5,647)

 

(48,946)

 

(13,398)

Total other income (expense)

 

(16,272)

 

(5,647)

 

(50,736)

 

(13,398)

 

 

 

 

 

 

 

 

 

Income before income taxes

 

7,820

 

(2,869)

 

8,499

 

(2,293)

Provision for income taxes

 

(2,421)

 

(1,195)

 

(4,469)

 

(1,195)

Net income (loss)

 

       $

5,399

 

       $

(4,064)

 

       $

4,030

 

       $

(3,488)

 

 

 

 

 

 

 

 

 

Net income (loss) per share of common stock:

 

 

 

 

 

 

 

 

Basic

 

       $

0.12

 

       $

(0.16)

 

       $

0.09

 

       $

(0.14)

Diluted

 

       $

0.12

 

       $

(0.16)

 

       $

0.09

 

       $

(0.14)

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

46,516,614

 

26,075,022

 

46,509,369

 

24,242,791

Diluted

 

46,763,589

 

26,075,022

 

46,620,959

 

24,242,791

 


 

ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

NET INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2015

 

2014

 

2015

 

2014

Eldorado Reno

 

 

 

 

 

 

 

 

Net income (loss) (1)

 

        $

6,018

 

        $

76

 

        $

8,186

 

        $

(2,968)

Interest Expense, net of interest income

 

321

 

1,183

 

2,686

 

3,584

Benefit for income taxes

 

-

 

(3,119)

 

(375)

 

(3,119)

Depreciation and amortization

 

1,959

 

1,941

 

5,833

 

5,933

Loss on disposal of property

 

16

 

-

 

11

 

-

Equity in income of unconsolidated affiliates

 

(2,548)

 

(1,238)

 

(3,136)

 

(3,019)

Acquisition charges

 

-

 

3,845

 

-

 

6,298

Adjusted EBITDA

 

        $

5,766

 

        $

2,688

 

        $

13,205

 

        $

6,709

 

 

 

 

 

 

 

 

 

Eldorado Shreveport

 

 

 

 

 

 

 

 

Net income (1)

 

        $

5,083

 

        $

1,980

 

        $

11,035

 

        $

5,600

Interest expense, net of interest income

 

718

 

2,652

 

6,021

 

8,002

Provision for income taxes

 

-

 

44

 

-

 

44

Depreciation and amortization

 

1,902

 

2,053

 

5,709

 

6,335

(Gain) loss on disposal of property

 

(64)

 

3

 

(63)

 

3

Adjusted EBITDA

 

        $

7,639

 

        $

6,732

 

        $

22,702

 

        $

19,984

 

 

 

 

 

 

 

 

 

Scioto Downs

 

 

 

 

 

 

 

 

Net income

 

        $

10,207

 

        $

8,126

 

        $

34,730

 

        $

25,346

Interest expense

 

19

 

19

 

52

 

56

Provision (benefit) for income taxes

 

-

 

1,216

 

(4,794)

 

2,125

Depreciation and amortization

 

3,798

 

3,440

 

11,272

 

10,258

Loss on disposal of property

 

-

 

1

 

-

 

9

Adjusted EBITDA

 

        $

14,024

 

        $

12,802

 

        $

41,260

 

        $

37,794

 

 

 

 

 

 

 

 

 

Mountaineer

 

 

 

 

 

 

 

 

Net income

 

        $

2,667

 

        $

6,264

 

        $

7,427

 

        $

17,742

Provision (benefit) for income taxes

 

-

 

353

 

(595)

 

353

Depreciation and amortization

 

3,764

 

2,555

 

11,722

 

7,112

Gain on sale or disposal of property

 

-

 

(26)

 

-

 

(35)

Adjusted EBITDA

 

        $

6,431

 

        $

9,146

 

        $

18,554

 

        $

25,172

 

 

 

 

 

 

 

 

 

Presque Isle Downs

 

 

 

 

 

 

 

 

Net income

 

        $

3,259

 

        $

1,296

 

        $

8,822

 

        $

5,821

Interest income

 

-

 

(1)

 

(2)

 

(2)

Provision (benefit) for income taxes

 

-

 

1,949

 

(1,173)

 

3,190

Depreciation and amortization

 

2,417

 

2,256

 

7,617

 

6,351

Loss (gain) on sale or disposal of property

 

-

 

163

 

(1)

 

208

Other regulatory gaming assessments

 

(83)

 

94

 

(202)

 

177

Adjusted EBITDA

 

        $

5,593

 

        $

5,757

 

        $

15,061

 

        $

15,745

 


 

ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

NET INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2015

 

2014

 

2015

 

2014

Corporate

 

 

 

 

 

 

 

 

Net loss

 

        $

(21,835)

 

        $

(27,230)

 

        $

(66,170)

 

        $

(67,848)

Interest expense, net of interest income

 

13,424

 

16,849

 

40,189

 

51,590

Provision (benefit) for income taxes

 

2,421

 

(1,524)

 

11,406

 

(1,524)

Depreciation and amortization

 

114

 

9

 

301

 

28

Loss on sale or disposal of property

 

54

 

1

 

55

 

2

Acquisition charges

 

380

 

7,334

 

717

 

8,238

Stock-based compensation expense

 

334

 

748

 

1,155

 

1,310

Loss on early retirement of debt

 

1,790

 

-

 

1,790

 

-

Adjusted EBITDA

 

        $

(3,318)

 

        $

(3,813)

 

        $

(10,557)

 

        $

(8,204)

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

Net income (loss)

 

        $

5,399

 

        $

(9,488)

 

        $

4,030

 

        $

(16,307)

Interest expense, net of interest income

 

14,482

 

20,702

 

48,946

 

63,230

Provision (benefit) for income taxes

 

2,421

 

(1,081)

 

4,469

 

1,069

Depreciation and amortization

 

13,954

 

12,254

 

42,454

 

36,017

Loss on sale or disposal of property

 

6

 

142

 

2

 

187

Equity in income of unconsolidated affiliates

 

(2,548)

 

(1,238)

 

(3,136)

 

(3,019)

Acquisition charges

 

380

 

11,179

 

717

 

14,536

Stock-based compensation expense

 

334

 

748

 

1,155

 

1,310

Loss on early retirement of debt

 

1,790

 

-

 

1,790

 

-

Other regulatory gaming assessments

 

(83)

 

94

 

(202)

 

177

Combined Adjusted EBITDA (2)

 

        $

36,135

 

        $

33,312

 

        $

100,225

 

        $

97,200

 

(1)

Excludes intercompany management fee revenues earned by Eldorado Reno and expensed by Eldorado Shreveport amounting to $0.8 million and $2.3 million for the three and nine months ended September 30, 2014, respectively.

(2)

The combined basis reflects operations of MTR Gaming for periods prior to the Merger combined with the operations of Resorts. Such presentation does not conform with U.S. GAAP or the SEC’s rules of pro forma presentation; however, we have included the combined information because we believe it provides a meaningful comparison for the periods presented.

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2015

 

2014

 

2015

 

2014

Silver Legacy

 

 

 

 

 

 

 

 

Net income

 

        $

5,274

 

        $

2,022

 

        $

6,496

 

        $

4,600

Interest Expense, net of interest income

 

2,791

 

2,778

 

8,290

 

8,274

Depreciation and amortization

 

2,426

 

2,640

 

7,957

 

7,951

Loss (gain) on disposal of property

 

11

 

(6)

 

29

 

-

Other income

 

-

 

(25)

 

-

 

(40)

Adjusted EBITDA

 

        $

10,502

 

        $

7,409

 

        $

22,772

 

        $

20,785

 

 

# # #

 

Caesars Entertainment, Inc. Reports