LAS VEGAS, Nov. 7, 2016
/PRNewswire/ -- Caesars Acquisition Company (NASDAQ: CACQ)
today reported the following results for Caesars Growth Partners,
LLC ("CGP LLC") for the third quarter 2016. Caesars Acquisition
Company ("CAC") was formed to make an investment in CGP LLC, owns
100% of the voting membership units of CGP LLC and accounts for its
investment under the equity method.
- Closed on the previously announced $4.4 billion sale of Caesars Interactive
Entertainment, LLC's social and mobile games business, recognizing
a gain of approximately $4.2
billion.
- Recorded consistent growth with net revenues and Adjusted
EBITDA up 1.1% and 5.7% for the three-month period ended
September 30, 2016 as compared to the three-month period
ended September 30, 2015 primarily at Planet Hollywood
and The LINQ Hotel & Casino.
Operating Results of CGP LLC
|
Three Months Ended
September 30,
|
|
Percent
Favorable(2)
|
|
Nine Months Ended
September 30,
|
|
Percent
Favorable(2)
|
(In
millions)
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
Net
revenues
|
$
|
422.5
|
|
|
$
|
417.7
|
|
|
1.1%
|
|
|
$
|
1,284.1
|
|
|
$
|
1,217.4
|
|
|
5.5%
|
|
(Loss)/income from
operations
|
(107.1)
|
|
|
29.8
|
|
|
N/M
|
|
|
(20.3)
|
|
|
224.7
|
|
|
N/M
|
|
Net (loss)/income
from continuing operations
|
(163.7)
|
|
|
(16.8)
|
|
|
N/M
|
|
|
(160.2)
|
|
|
87.2
|
|
|
N/M
|
|
Net income from
discontinued operations
|
4,019.4
|
|
|
37.3
|
|
|
N/M
|
|
|
4,077.1
|
|
|
114.4
|
|
|
N/M
|
|
Adjusted
EBITDA(1)
|
102.1
|
|
|
96.6
|
|
|
5.7%
|
|
|
324.3
|
|
|
271.9
|
|
|
19.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted Earnings
before Interest Income/Expense, Income Taxes, Depreciation and
Amortization ("EBITDA") is a non-GAAP financial measure that is
reconciled to its most comparable generally accepted accounting
principles ("GAAP") measure later in this release.
|
(2)
|
N/M is defined as not
meaningful.
|
On September 23, 2016, Caesars
Interactive Entertainment, LLC ("CIE", formerly Caesars Interactive
Entertainment, Inc.) completed the previously announced sale of
CIE's social and mobile games business (the "SMG Business"),
pursuant to the Stock Purchase Agreement by and among CIE, Alpha
Frontier Limited, a Cayman Islands
exempted company and, solely for certain limited purposes described
therein, CGP LLC and CIE Growth, LLC, a Delaware limited liability company, dated as
of July 30, 2016. As a result of the
sale, the historical results of CGP LLC have been recast to reflect
the portion of the CIE business disposed of as discontinued
operations for all periods presented herein.
Third Quarter 2016 results compared with Third Quarter
2015
Net revenues were impacted primarily by the following:
- Continued expansion of entertainment options at Planet
Hollywood positively impacted other revenues; and
- Increases in room revenues due to increased room rates, resort
fees and higher occupancy rates at The LINQ Hotel & Casino,
which was substantially completed and available to guests in early
May 2015.
- These increases were partially offset by lower casino revenues
at Harrah's New Orleans due to
unfavorable volume and hold when compared to the prior year and
lower food and beverage revenues for all of CGP LLC's casino
properties.
Net revenues for the third quarter of 2016 increased by
$4.8 million, or 1.1%, when compared
to the same period in 2015. Total trips decreased by approximately
6.5% during the third quarter of 2016 when compared to the same
period in 2015. Gross casino hold decreased to 12.3% for the
quarter ended September 30, 2016 from 12.5% for the
quarter ended September 30, 2015.
Cash average daily room rates for the third quarter of 2016
increased to $129, or 8.4%, when
compared to $119 for the same period
in 2015. Average daily occupancy was 95.5% and 92.7% for the third
quarter of 2016 and 2015, respectively. Revenue per available room
for the third quarter of 2016 and 2015 was $120 and $109,
respectively, or an increase of 10.1%.
Loss from operations for the third quarter of 2016 was
$107.1 million as compared to income
from operations of $29.8 million for
the same period in 2015, which was a decrease of $136.9 million. The decrease in (loss)/income
from operations was primarily due to an increase in stock-based
compensation expense and transaction related costs associated with
CIE's sale of the SMG Business (the "Sale"). In connection with the
Sale, CIE accelerated the vesting of all of the outstanding
options, restricted stock units and warrants of CIE (collectively,
"CIE Equity Awards"), and, effective immediately prior to the
closing, canceled the CIE Equity Awards in exchange for the right
to receive cash payments. Excluding the impact of stock-based
compensation expense, transaction costs related to the Sale and the
change in fair value of contingently issuable non-voting membership
units, income from operations for the third quarter of 2016
increased by $4.9 million primarily
due to the income impact of increased revenues at Planet Hollywood
related to the expansion of entertainment options and a decrease in
management fees to related parties offset by an increase in general
and administrative expenses related to the expansion of
entertainment options at Planet Hollywood and an increase in
depreciation expense at Planet Hollywood resulting from the
acceleration of depreciation for assets that will be replaced as a
result of renovations.
Net loss from continuing operations for the third quarter of
2016 was $163.7 million as compared
to $16.8 million for the same period
in 2015, which was an increase in net loss of $146.9 million. The increase in net loss from
continuing operations was primarily due to the factors discussed
for the decrease in (loss)/income from operations.
Net income from discontinued operations for the third quarter of
2016 was $4,019.4 million as compared
to $37.3 million for the same period
in 2015, which was an increase of $3,982.1
million, primarily due to the recognition of a pre-tax gain
of $4,161.2 million from the
Sale.
Adjusted EBITDA for the third quarter of 2016 was $102.1 million as compared to $96.6 million for the same period in 2015, which
was an increase of $5.5 million, or
5.7%, driven primarily by the income impact of increased revenues
as discussed above.
Nine Months Ended September 30,
2016 results compared with September
30, 2015
Net revenues were impacted primarily by the following:
- Continued expansion of entertainment options at Planet
Hollywood positively impacted other revenues;
- Increases in all categories of revenues as a result of
renovations at The LINQ Hotel & Casino; and
- Increase in casino revenues at Horseshoe Baltimore due to
increases in both slot and table volumes.
- These increases were partially offset by lower revenues at
Harrah's New Orleans as a result
of the April 2015 smoking ban.
Net revenues for the nine months ended September
30, 2016 increased by $66.7 million, or 5.5%,
when compared to the same period in 2015. Total trips decreased by
approximately 4.6% during the nine months ended
September 30, 2016 when compared to the same period in 2015.
Gross casino hold increased to 12.2% for the nine months
ended September 30, 2016 from 12.0% for the nine months
ended September 30, 2015.
Cash average daily room rates for the nine months ended
September 30, 2016 increased to $132, or 9.1%, when compared to $121 for the same period in 2015. Average daily
occupancy was 95.1% and 93.1% for the nine
months ended September 30, 2016 and 2015, respectively.
Revenue per available room for the nine months ended
September 30, 2016 and
2015 was $122 and $112, respectively, or an
increase of 8.9%.
Loss from operations for the nine months ended September
30, 2016 was $20.3
million as compared to income from operations of $224.7
million for the same period in 2015, which was a decrease
of $245.0 million. The decrease in (loss)/income from
operations is primarily attributable to an increase in stock-based
compensation expense and transaction related costs associated with
the Sale and the change in the fair value of contingently issuable
non-voting membership units recognized in the prior year with no
comparable change recognized subsequent to December 31, 2015, offset by the increases in net
revenues. In connection with the Sale, CIE accelerated the vesting
of all of the CIE Equity Awards, and, effective immediately prior
to the closing, canceled the CIE Equity Awards in exchange for the
right to receive cash payments. Excluding the impact of stock-based
compensation expense, transaction costs related to the Sale and the
change in fair value of contingently issuable non-voting membership
units, income from operations for the nine months ended September
30, 2016 increased by $45.5 million when
compared to the same period in 2015 primarily due to the
income impact of increased revenues as discussed above offset by an
increase in general and administrative expenses related to the
expansion of entertainment options at Planet Hollywood and an
increase in depreciation expense at Planet Hollywood resulting from
the acceleration of depreciation for assets that will be replaced
as a result of renovations.
Net loss from continuing operations for the nine months
ended September 30, 2016 was $160.2
million as compared to net income from continuing operations
of $87.2 million for the same period
in 2015, which was a decrease of $247.4
million, primarily due to the factors discussed for the
decrease in (loss)/income from operations.
Net income from discontinued operations for the nine months
ended September 30, 2016 was $4,077.1
million as compared to $114.4
million for the same period in 2015, which was an increase
of $3,962.7 million, primarily due to
the recognition of a pre-tax gain of $4,161.2 million from the Sale.
Adjusted EBITDA for the nine months ended September
30, 2016 was $324.3 million as compared
to $271.9 million for the same period in 2015, which was an
increase of $52.4 million, or 19.3%, driven primarily by
the income impact of increased revenues as discussed above offset
by an increase in general and administrative expenses related to
the expansion of entertainment options at Planet Hollywood.
Liquidity and Capital Resources
CGP LLC and its subsidiaries' primary sources of liquidity
include currently available cash and cash equivalents, cash flows
generated from its operations and borrowings under the Caesars
Growth Properties Holdings, LLC ("CGPH," an indirect, wholly-owned
subsidiary of CGP LLC) $150.0 million
revolving credit agreement ("Revolving Credit Facility") which is
intended to satisfy CGPH's short-term liquidity needs.
At September 30, 2016 and December 31, 2015,
CGP LLC had cash and cash equivalents totaling $1,139.8 million and $790.7 million, respectively. As of
September 30, 2016, Restricted cash includes
approximately $2,764.0 million
restricted under the terms of the Stock Purchase Agreement, and
under the CIE Proceeds and Reservation Rights Agreement entered
into between CIE, CAC, Caesars Entertainment Corporation ("Caesars
Entertainment" or "CEC") and Caesars Entertainment Operating
Company, Inc. ("CEOC") on September 9,
2016 which requires certain proceeds from the Sale be
deposited into the CIE escrow account (the "CIE Escrow Account").
Amounts may be distributed from the CIE Escrow Account only: (i)
pursuant to the terms of the term sheet included in the CIE
Proceeds and Reservation Rights Agreement and the agreement entered
into among Wilmington Trust, National Association, CIE and CEOC,
governing the CIE Escrow Account, (ii) with the joint written
consent of CIE and CEOC, or (iii) pursuant to an order of a court
of competent jurisdiction.
Third-party debt outstanding at CGP LLC was $2,279.4 million as of
September 30, 2016 and $2,337.3
million at December 31, 2015. This amount includes
debt of the consolidated subsidiary CGPH of $1,965.0 million and $2,018.3 million as of the respective dates. Net
CGPH repayments under the Revolving Credit Facility during the nine
months ended September 30, 2016 were $45.0 million. As of
September 30, 2016, no amounts were outstanding under the
Revolving Credit Facility.
About Caesars Acquisition Company
Caesars Acquisition Company was formed to make an equity
investment in Caesars Growth Partners, LLC, a joint venture between
CAC and Caesars Entertainment (NASDAQ: CZR), the world's most
diversified casino entertainment provider and the most
geographically diverse U.S. casino-entertainment company. CAC is
CGP LLC's managing member and sole holder of all of its outstanding
voting units. For more information, please visit
www.caesarsacquisitioncompany.com.
About Caesars Growth Partners, LLC
Caesars Growth Partners, LLC is a casino asset and entertainment
company focused on acquiring and developing a portfolio of
high-growth operating assets and equity and debt investments in the
gaming and interactive entertainment industries. CGP LLC focuses on
acquiring or developing assets with strong value creation potential
and leveraging interactive technology with its well-known online
game portfolio and leading brands. Assets include Caesars
Interactive Entertainment, Inc. (with its World Series of Poker and
regulated online real money gaming businesses), Planet Hollywood,
Bally's Las Vegas, The Cromwell,
The LINQ Hotel & Casino, Harrah's New
Orleans and Horseshoe Baltimore. Through its relationship
with Caesars Entertainment, CGP LLC has the ability to access
Caesars Entertainment's proven management expertise, brand equity,
Total Rewards loyalty program and structural synergies. For more
information, please visit www.caesarsacquisitioncompany.com.
Forward Looking Information
This release contains or may contain "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. You can identify these statements by the fact that they do
not relate strictly to historical or current facts. You should not
place undue reliance on such statements because they are subject to
numerous uncertainties and factors relating to our operations and
business environment, all of which are difficult to predict and
many of which are beyond our control. Forward-looking statements
include information concerning our possible or assumed future
results of operations, including descriptions of our business
strategy. These statements contain words such as "may," "will,"
"project," "might," "expect," "believe," "anticipate," "intend,"
"could," "would," "estimate," "continue," or "pursue," or the
negative of these words or other words or expressions of similar
meaning that may identify forward-looking statements and are found
at various places throughout this release. These forward-looking
statements, including, without limitation, those relating to future
actions, new projects, strategies, future performance, the outcome
of contingencies such as legal proceedings, and future financial
results, wherever they occur in this release, are based on our
current expectations about future events and are estimates
reflecting the best judgment of CAC and CGP LLC's management and
involve a number of risks and uncertainties that could cause actual
results to differ materially from those suggested by the
forward-looking statements.
Investors are cautioned that forward-looking statements are not
guarantees of future performance or results and involve risks and
uncertainties that cannot be predicted or quantified, and,
consequently, the actual performance of CAC and CGP LLC may differ
materially from those expressed or implied by such forward-looking
statements. We disclose important factors that could cause
actual results to differ materially from our expectations under
"Risk Factors" in Part II, Item 1A of the CAC Quarterly Report on
Form 10-Q for the quarter ended September 30, 2016. Such
risks and uncertainties include, but are not limited to, the
following factors, as well as other factors described from time to
time in CAC's reports filed with the Securities and Exchange
Commission (including the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" contained therein):
- CAC and CGP LLC's dependence on Caesars Entertainment and its
subsidiaries, including Caesars Enterprise Services ("CES"), to
provide support and services, as well as CGP LLC's dependence on
Caesars Entertainment's and CES' senior management's expertise and
its participation in Caesars Entertainment's Total Rewards loyalty
program;
- the effects of a default by Caesars Entertainment or CEOC on
certain debt obligations;
- the ability of Caesars Entertainment to meet its financial
obligations in light of its limited cash balances;
- Caesars Entertainment's interests may conflict with CAC and CGP
LLC's interests and Caesars Entertainment may possibly keep all
potential development opportunities for itself;
- the adverse effects due to the bankruptcy filing of CEOC and
certain of its subsidiaries;
- the effects if a third-party successfully challenges Caesars
Entertainment or its affiliates' ownership of, or right to use, the
intellectual property owned or used by subsidiaries of Caesars
Entertainment, which CIE and CGP LLC license for use in its
businesses;
- CIE's reliance on subsidiaries of Caesars Entertainment to
obtain online gaming licenses in certain jurisdictions, such as
New Jersey;
- the difficulty of operating CGP LLC's business separately from
Caesars Entertainment and managing that process effectively could
take up a significant amount of management's time;
- CGP LLC's business model and short operating history;
- CGP LLC's ability to realize the anticipated benefits of
current or potential future acquisitions, and the ability to timely
and cost-effectively integrate assets and companies that CGP LLC
acquires into its operations;
- the effects of any lawsuits against CAC, CGP LLC or CGPH
related to the October 21, 2013
transactions, the May 2014 asset
purchase transactions and the proposed CAC and Caesars
Entertainment merger transaction;
- the proposed merger between CAC and Caesars Entertainment may
not be consummated on the terms contemplated or at all;
- the adverse effects if extensive governmental regulation and
taxation policies, which are applicable to CGP LLC, are
enforced;
- the effects of local and national economic, credit and capital
market conditions on the economy in general, and on the gaming
industry in particular;
- the sensitivity of CGP LLC's business to reductions in
discretionary consumer spending;
- the rapidly growing and changing industry in which CGP LLC
operates, such as CIE's internet gaming business;
- any failure to protect CGP LLC's trademarks or other
intellectual property, such as CIE's ownership of the World
Series of Poker trademark;
- abnormal gaming holds ("gaming hold" is the amount of money
that is retained by the casino from wagers by customers);
- the effects of competition, including locations of competitors
and operating and market competition, particularly the intense
competition CGP LLC's casino properties face in their respective
markets;
- CGP LLC's ability to expand into international markets in light
of additional business, regulatory, operational, financial and
economic risks associated with such expansion;
- the effect on CGP LLC's business strategy if online real money
gaming is not legalized in states other than Delaware, Nevada or New
Jersey in the United
States, is legalized in an unfavorable manner or is banned
in the United States;
- political and economic uncertainty created by terrorist attacks
and other acts of war or hostility; and
- the other factors set forth under "Risk Factors" in Part II,
Item 1A of the CAC Quarterly Report on Form 10-Q for the quarter
ended September 30, 2016.
Any forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995 and, as such, speak only
as of the date made. CAC and CGP LLC disclaim any obligation to
update the forward-looking statements. You are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date stated or, if no date is stated, as of
the date of this release.
CAESARS
ACQUISITION COMPANY
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
(In millions, except per share data)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating
expenses
|
9.3
|
|
|
9.2
|
|
|
23.2
|
|
|
24.4
|
|
Loss from
operations
|
(9.3)
|
|
|
(9.2)
|
|
|
(23.2)
|
|
|
(24.4)
|
|
|
|
|
|
|
|
|
|
Income from equity
method investment in Caesars Growth Partners, LLC
|
672.5
|
|
|
24.4
|
|
|
721.3
|
|
|
73.0
|
|
Income before
provision for income taxes
|
663.2
|
|
|
15.2
|
|
|
698.1
|
|
|
48.6
|
|
Provision for income
taxes
|
(141.3)
|
|
|
(8.2)
|
|
|
(158.5)
|
|
|
(25.1)
|
|
Net income
|
521.9
|
|
|
7.0
|
|
|
539.6
|
|
|
23.5
|
|
Other comprehensive
income, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Comprehensive
income
|
$
|
521.9
|
|
|
$
|
7.0
|
|
|
$
|
539.6
|
|
|
$
|
23.5
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
3.80
|
|
|
$
|
0.05
|
|
|
$
|
3.93
|
|
|
$
|
0.17
|
|
Diluted
|
$
|
3.78
|
|
|
$
|
0.05
|
|
|
$
|
3.92
|
|
|
$
|
0.17
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
137.5
|
|
|
136.4
|
|
|
137.4
|
|
|
136.4
|
|
Diluted
|
138.0
|
|
|
136.8
|
|
|
137.7
|
|
|
136.6
|
|
CAESARS GROWTH
PARTNERS, LLC
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In millions)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
|
|
Casino
|
$
|
253.0
|
|
|
$
|
260.6
|
|
|
$
|
785.9
|
|
|
$
|
778.5
|
|
Food and
beverage
|
66.9
|
|
|
73.6
|
|
|
207.3
|
|
|
207.9
|
|
Rooms
|
90.2
|
|
|
82.2
|
|
|
274.4
|
|
|
239.0
|
|
Other
|
57.6
|
|
|
48.0
|
|
|
162.3
|
|
|
132.6
|
|
Less: casino
promotional allowances
|
(45.2)
|
|
|
(46.7)
|
|
|
(145.8)
|
|
|
(140.6)
|
|
Net
revenues
|
422.5
|
|
|
417.7
|
|
|
1,284.1
|
|
|
1,217.4
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Direct
|
|
|
|
|
|
|
|
Casino
|
134.1
|
|
|
138.0
|
|
|
417.7
|
|
|
416.5
|
|
Food and
beverage
|
30.6
|
|
|
33.0
|
|
|
92.8
|
|
|
94.4
|
|
Rooms
|
24.9
|
|
|
21.7
|
|
|
71.2
|
|
|
61.9
|
|
Property, general,
administrative and other
|
285.4
|
|
|
132.8
|
|
|
559.4
|
|
|
363.0
|
|
Write-downs, reserves
and project opening costs, net of recoveries
|
(1.3)
|
|
|
1.8
|
|
|
0.5
|
|
|
8.4
|
|
Management fees to
related parties
|
8.6
|
|
|
14.1
|
|
|
33.3
|
|
|
45.1
|
|
Depreciation and
amortization
|
47.3
|
|
|
39.2
|
|
|
129.5
|
|
|
110.9
|
|
Change in fair value
of contingently issuable non-voting membership units
|
—
|
|
|
7.3
|
|
|
—
|
|
|
(107.5)
|
|
Total operating
expenses
|
529.6
|
|
|
387.9
|
|
|
1,304.4
|
|
|
992.7
|
|
(Loss)/income from
operations
|
(107.1)
|
|
|
29.8
|
|
|
(20.3)
|
|
|
224.7
|
|
Interest expense, net
of interest capitalized
|
(49.0)
|
|
|
(50.1)
|
|
|
(149.1)
|
|
|
(145.3)
|
|
Other income,
net
|
—
|
|
|
5.0
|
|
|
—
|
|
|
4.0
|
|
(Loss)/income from
continuing operations before (provision for)/benefit from income
taxes
|
(156.1)
|
|
|
(15.3)
|
|
|
(169.4)
|
|
|
83.4
|
|
(Provision
for)/benefit from income taxes
|
(7.6)
|
|
|
(1.5)
|
|
|
9.2
|
|
|
3.8
|
|
Net (loss)/income
from continuing operations
|
(163.7)
|
|
|
(16.8)
|
|
|
(160.2)
|
|
|
87.2
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
Income from
discontinued operations before income taxes, including $4,161.2
gain on sale of SMG Business in the third quarter of
2016
|
3,972.6
|
|
|
56.5
|
|
|
4,090.9
|
|
|
164.1
|
|
Benefit
from/(provision for) income taxes related to discontinued
operations
|
46.8
|
|
|
(19.2)
|
|
|
(13.8)
|
|
|
(49.7)
|
|
Net income from
discontinued operations
|
4,019.4
|
|
|
37.3
|
|
|
4,077.1
|
|
|
114.4
|
|
Net income
|
3,855.7
|
|
|
20.5
|
|
|
3,916.9
|
|
|
201.6
|
|
Less: net
loss/(income) attributable to non-controlling interests
|
33.2
|
|
|
(1.7)
|
|
|
26.4
|
|
|
(4.0)
|
|
Net income
attributable to Caesars Growth Partners, LLC
|
$
|
3,888.9
|
|
|
$
|
18.8
|
|
|
$
|
3,943.3
|
|
|
$
|
197.6
|
|
CAESARS GROWTH
PARTNERS, LLC
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET INCOME/(LOSS) TO ADJUSTED EBITDA
(UNAUDITED)
|
|
Adjusted EBITDA is a
non-GAAP financial measure that is included because management
believes that Adjusted EBITDA provides investors with additional
information that allows a better understanding of the results of
operational activities separate from the financial impact of
capital decisions made for the long-term benefit of CGP LLC.
Because not all companies use identical calculations, the
presentation of CGP LLC's EBITDA and Adjusted EBITDA may not be
comparable to other similarly titled measures of other
companies.
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In
millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net (loss)/income
from continuing operations
|
$
|
(163.7)
|
|
|
$
|
(16.8)
|
|
|
$
|
(160.2)
|
|
|
$
|
87.2
|
|
Provision
for/(benefit from) income taxes
|
7.6
|
|
|
1.5
|
|
|
(9.2)
|
|
|
(3.8)
|
|
(Loss)/income from
continuing operations before income taxes
|
(156.1)
|
|
|
(15.3)
|
|
|
(169.4)
|
|
|
83.4
|
|
Interest expense, net
of interest capitalized
|
49.0
|
|
|
50.1
|
|
|
149.1
|
|
|
145.3
|
|
Depreciation and
amortization
|
47.3
|
|
|
39.2
|
|
|
129.5
|
|
|
110.9
|
|
EBITDA
|
(59.8)
|
|
|
74.0
|
|
|
109.2
|
|
|
339.6
|
|
Stock-based
compensation (1)
|
145.3
|
|
|
14.8
|
|
|
191.5
|
|
|
27.1
|
|
Write-downs, reserves
and project opening costs, net of recoveries
(2)
|
(1.3)
|
|
|
1.8
|
|
|
0.5
|
|
|
8.4
|
|
Change in fair value
of contingently issuable non-voting membership units
(3)
|
—
|
|
|
7.3
|
|
|
—
|
|
|
(107.5)
|
|
Other income,
net
|
—
|
|
|
(5.0)
|
|
|
—
|
|
|
(4.0)
|
|
Other
(4)
|
17.9
|
|
|
3.7
|
|
|
23.1
|
|
|
8.3
|
|
Adjusted
EBITDA
|
$
|
102.1
|
|
|
$
|
96.6
|
|
|
$
|
324.3
|
|
|
$
|
271.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amounts represent
stock-based compensation expense related to stock options,
restricted stock and restricted stock units.
|
(2)
|
Amounts include
development costs related to the construction of The Cromwell and
Horseshoe Baltimore, and the renovations at The LINQ Hotel &
Casino and Planet Hollywood.
|
(3)
|
Amounts represent the
change in fair value of contingently issuable membership units
associated with the CIE earn-out calculation related to the
transactions establishing CGP LLC.
|
(4)
|
Amounts represent
other add-backs and deductions to arrive at Adjusted EBITDA but not
separately identified, such as transaction costs associated with
the Sale and other acquisition and integration costs and lobbying
expenses.
|
Source: Caesars Acquisition Company; CACQ
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SOURCE Caesars Acquisition Company