RENO, Nev. and LAS VEGAS, Feb. 25,
2021 /PRNewswire/ -- Caesars Entertainment, Inc.,
(NASDAQ: CZR) ("Caesars," "CZR," "CEI" or "the Company") today
reported operating results for the fourth quarter and year ended
December 31, 2020.
Fourth Quarter Results and Recent Highlights:
- Net revenues of $1.5 billion, an
increase of 152.9% on a GAAP basis. Same-store net revenues were
$1.6 billion, a decrease of 37.5%
versus the comparable prior-year period.
- Net loss of $555 million compared
to net loss of $13 million for the
comparable prior-year period.
- Adjusted EBITDA of $296 million
on a GAAP basis, up 91.0% year over year. Same-store Adjusted
EBITDA of $346 million versus
$722 million for the comparable
prior-year period.
Full-Year Results and Recent Highlights
- Net revenues of $3.5 billion, an
increase of 37.4% on a GAAP basis. Same-store net revenues of
$6.1 billion, a decrease of 42.5%
versus the comparable prior-year period.
- Net loss of $1.8 billion compared
to net income of $81 million for the
comparable prior-year period.
- Adjusted EBITDA of $737 million
on a GAAP basis versus $697 million
last year. Same-store Adjusted EBITDA of $1.1 billion versus $3.0
billion for the comparable prior-year period.
Additional Highlights
- William Hill and Caesars sports
betting joint venture currently operational in fifteen states and
Washington D.C.
-
- Currently operating mobile online sports betting in twelve
jurisdictions
- Expected to be operational in twenty jurisdictions by year
end
- Caesars announced a minority strategic investment in the daily
fantasy sports platform SuperDraft, Inc.
Tom Reeg, Chief Executive Officer
of Caesars Entertainment, Inc., commented, "Our fourth quarter was
negatively impacted by additional COVID-19 restrictions implemented
in several states starting in November. Early results in the new
year indicate a strengthening of consumer demand as restrictions
have been lifted and demand levels normalize, especially at our
regional, non-destination properties."
"With vaccinations underway, we are optimistic about the year
ahead and look forward to the recovery of travel and tourism in the
U.S. and especially Las
Vegas."
Fourth Quarter and Full-Year 2020 Financial Results Summary
and Segment Information
For the fourth quarter ended December 31, 2020, Caesars
Entertainment, Inc. generated net revenues of $1.5 billion and a net loss of $555 million on a GAAP basis. After combining
results of operations of Caesars Entertainment, Inc. with results
of operations of Caesars Entertainment Corporation ("Former
Caesars") for periods prior to the closing of the acquisition of
Former Caesars (the "Merger"), including properties classified as
discontinued operations but were not divested at the end of the
period, and eliminating results of operations for properties that
have been divested, which we refer to as a "same store" basis,
Caesars Entertainment, Inc. reported same store net revenues of
$1.6 billion, net loss of
$527 million and adjusted EBITDA of
$346 million. In our Las Vegas segment, revenues declined 54.8%
during the fourth quarter and adjusted EBITDA declined 75.5%. Eight
of our nine properties in our Las
Vegas segment were open during the entire fourth quarter.
Rio All Suite Hotel & Casino reopened on December 22nd. In our Regional segment, same
store revenues declined 27.3% and same store adjusted EBITDA
declined 31.0%. For Managed, International & CIE, same store
net revenue decreased 27.4% and same store adjusted EBITDA
decreased 18.2%.
For the full year ended December 31, 2020, Caesars
Entertainment, Inc. generated net revenues of $3.5 billion and a net loss of $1.8 billion on a GAAP basis. Caesars
Entertainment, Inc. reported same store net revenues of
$6.1 billion, same store net loss of
$2.7 billion and same store adjusted
EBITDA of $1.1 billion. In our
Las Vegas segment, same store net
revenue declined 54.9% compared to the prior year and same store
adjusted EBITDA declined 77.8%. In our Regional segment, same store
net revenue declined 35.5% and same store adjusted EBITDA declined
46.0%. For Managed, International & CIE, same store net revenue
decreased 34.5% and same store adjusted EBITDA decreased 69.1%.
Net
Revenues
|
|
|
Three Months Ended
December 31,
|
(Dollars in
millions)
|
2020
|
|
Less:
2020
Divest. & Add:
Disc. Ops(a)(b)
|
|
2020 Total
(c)
|
|
2019
|
|
Less:
2019
Divest.
(a)
|
|
2019
Pre-Acq. CEC
(d)
|
|
2019 Total
(e)
|
|
%
Change
|
Las Vegas
|
$
|
447
|
|
|
$
|
—
|
|
|
$
|
447
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
989
|
|
|
$
|
989
|
|
|
(54.8)%
|
|
Regional
|
949
|
|
|
128
|
|
|
1,077
|
|
|
590
|
|
|
(141)
|
|
|
1,032
|
|
|
1,481
|
|
|
(27.3)%
|
|
Managed,
International & CIE
|
94
|
|
|
12
|
|
|
106
|
|
|
—
|
|
|
—
|
|
|
146
|
|
|
146
|
|
|
(27.4)%
|
|
Corporate and
Other
|
7
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
75.0%
|
|
Caesars
|
$
|
1,497
|
|
|
$
|
140
|
|
|
$
|
1,637
|
|
|
$
|
592
|
|
|
$
|
(141)
|
|
|
$
|
2,169
|
|
|
$
|
2,620
|
|
|
(37.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
(Dollars in
millions)
|
2020
|
|
Less:
2020
Divest. & Add:
Disc. Ops(a)(b)
|
|
2020
Pre-Acq. CEC
(d)
|
|
2020 Total
(f)
|
|
2019
|
|
Less:
2019
Divest.
(a)
|
|
2019
Pre-Acq. CEC
(d)
|
|
2019 Total
(e)
|
|
%
Change
|
Las Vegas
|
$
|
751
|
|
|
$
|
—
|
|
|
$
|
1,018
|
|
|
$
|
1,769
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,919
|
|
|
$
|
3,919
|
|
|
(54.9)%
|
|
Regional
|
2,545
|
|
|
115
|
|
|
1,267
|
|
|
3,927
|
|
|
2,520
|
|
|
(660)
|
|
|
4,225
|
|
|
6,085
|
|
|
(35.5)%
|
|
Managed,
International & CIE
|
163
|
|
|
23
|
|
|
198
|
|
|
384
|
|
|
—
|
|
|
—
|
|
|
586
|
|
|
586
|
|
|
(34.5)%
|
|
Corporate and
Other
|
15
|
|
|
—
|
|
|
8
|
|
|
23
|
|
|
8
|
|
|
—
|
|
|
12
|
|
|
20
|
|
|
15.0%
|
|
Caesars
|
$
|
3,474
|
|
|
$
|
138
|
|
|
$
|
2,491
|
|
|
$
|
6,103
|
|
|
$
|
2,528
|
|
|
$
|
(660)
|
|
|
$
|
8,742
|
|
|
$
|
10,610
|
|
|
(42.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
(Dollars in
millions)
|
2020
|
|
Less:
2020
Divest. & Add:
Disc. Ops(a)(b)
|
|
2020 Total
(c)
|
|
2019
|
|
Less:
2019
Divest.
(a)
|
|
2019
Pre-Acq. CEC
(d)
|
|
2019 Total
(e)
|
|
%
Change
|
Las Vegas
|
$
|
(125)
|
|
|
$
|
—
|
|
|
$
|
(125)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
144
|
|
|
$
|
144
|
|
|
*
|
Regional
|
(163)
|
|
|
28
|
|
|
(135)
|
|
|
98
|
|
|
(5)
|
|
|
(73)
|
|
|
20
|
|
|
*
|
Managed,
International & CIE
|
35
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
*
|
Corporate and
Other
|
(302)
|
|
|
—
|
|
|
(302)
|
|
|
(111)
|
|
|
—
|
|
|
(382)
|
|
|
(493)
|
|
|
(38.7)%
|
|
Caesars
|
$
|
(555)
|
|
|
$
|
28
|
|
|
$
|
(527)
|
|
|
$
|
(13)
|
|
|
$
|
(5)
|
|
|
$
|
(304)
|
|
|
$
|
(322)
|
|
|
63.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
(Dollars in
millions)
|
2020
|
|
Less:
2020
Divest. & Add:
Disc. Ops(a)(b)
|
|
2020
Pre-Acq. CEC
(d)
|
|
2020 Total
(f)
|
|
2019
|
|
Less:
2019
Divest.
(c)
|
|
2019
Pre-Acq. CEC
(d)
|
|
2019 Total
(e)
|
|
%
Change
|
Las Vegas
|
$
|
(287)
|
|
|
$
|
—
|
|
|
$
|
(266)
|
|
|
$
|
(553)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
251
|
|
|
$
|
251
|
|
|
*
|
Regional
|
(338)
|
|
|
93
|
|
|
(499)
|
|
|
(744)
|
|
|
398
|
|
|
(51)
|
|
|
8
|
|
|
355
|
|
|
*
|
Managed,
International & CIE
|
38
|
|
|
—
|
|
|
(92)
|
|
|
(54)
|
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
(4)
|
|
|
*
|
Corporate and
Other
|
(1,170)
|
|
|
—
|
|
|
(202)
|
|
|
(1,372)
|
|
|
(317)
|
|
|
—
|
|
|
(1,450)
|
|
|
(1,767)
|
|
|
(22.4)%
|
|
Caesars
|
$
|
(1,757)
|
|
|
$
|
93
|
|
|
$
|
(1,059)
|
|
|
$
|
(2,723)
|
|
|
$
|
81
|
|
|
$
|
(51)
|
|
|
$
|
(1,195)
|
|
|
$
|
(1,165)
|
|
|
133.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
(Dollars in
millions)
|
2020
|
|
Less:
2020
Divest. & Add:
Disc. Ops(a)(b)
|
|
2020 Total
(c)
|
|
2019
|
|
Less:
2019
Divest.
(a)
|
|
2019
Pre-Acq. CEC
(d)
|
|
2019 Total
(e)
|
|
%
Change
|
Las Vegas
|
$
|
90
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
368
|
|
|
$
|
368
|
|
|
(75.5)%
|
|
Regional
|
232
|
|
|
48
|
|
|
280
|
|
|
163
|
|
|
(16)
|
|
|
259
|
|
|
406
|
|
|
(31.0)%
|
|
Managed,
International & CIE
|
16
|
|
|
2
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|
(18.2)%
|
|
Corporate and
Other
|
(42)
|
|
|
—
|
|
|
(42)
|
|
|
(8)
|
|
|
—
|
|
|
(66)
|
|
|
(74)
|
|
|
(43.2)%
|
|
Caesars
|
$
|
296
|
|
|
$
|
50
|
|
|
$
|
346
|
|
|
$
|
155
|
|
|
$
|
(16)
|
|
|
$
|
583
|
|
|
$
|
722
|
|
|
(52.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
(Dollars in
millions)
|
2020
|
|
Less:
2020
Divest. & Add:
Disc. Ops(a)(b)
|
|
2020
Pre-Acq. CEC
(d)
|
|
2020 Total
(f)
|
|
2019
|
|
Less:
2019
Divest.
(a)
|
|
2019
Pre-Acq. CEC
(d)
|
|
2019 Total
(e)
|
|
%
Change
|
Las Vegas
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
198
|
|
|
$
|
331
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,490
|
|
|
$
|
1,490
|
|
|
(77.8)%
|
|
Regional
|
671
|
|
|
101
|
|
|
163
|
|
|
935
|
|
|
732
|
|
|
(109)
|
|
|
1,107
|
|
|
1,730
|
|
|
(46.0)%
|
|
Managed,
International & CIE
|
34
|
|
|
(7)
|
|
|
(2)
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|
81
|
|
|
(69.1)%
|
|
Corporate and
Other
|
(101)
|
|
|
—
|
|
|
(105)
|
|
|
(206)
|
|
|
(35)
|
|
|
—
|
|
|
(267)
|
|
|
(302)
|
|
|
(31.8)%
|
|
Caesars
|
$
|
737
|
|
|
$
|
94
|
|
|
$
|
254
|
|
|
$
|
1,085
|
|
|
$
|
697
|
|
|
$
|
(109)
|
|
|
$
|
2,411
|
|
|
$
|
2,999
|
|
|
(63.8)%
|
|
____________________
*
|
Not
meaningful
|
(a)
|
Divestitures for
the three and twelve months ended December 31, 2020 include results
of operations for Isle of Capri Kansas City, Lady Luck Vicksburg,
Eldorado Resort Casino Shreveport, Harrah's Reno, and Bally's
Atlantic City. Divestitures for the three and twelve months ended
December 31, 2019 include results of operations for Presque Isle
Downs & Casino, Lady Luck Casino Nemacolin, Mountaineer
Racetrack Casino and Resort, Isle Casino Cape Girardeau, Lady Luck
Caruthersville, Isle of Capri Kansas City, Lady Luck Vicksburg,
Eldorado Resort Casino Shreveport. Harrah's Reno, and Bally's
Atlantic City. 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.
|
(b)
|
Discontinued
operations include Horseshoe Hammond, Caesars Southern Indiana,
Harrah's Louisiana Downs, Caesars UK group including Emerald
Resorts & Casino, Harrah's Reno, and Bally's Atlantic
City.
|
(c)
|
2020 Total for the
three months ended December 31, 2020 excludes divestitures as
detailed in (a) and includes results of operations from
discontinued operations. Such presentation does not conform to 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 operations reported by the Company.
|
(d)
|
Pre-acquisition
CEC represents results of operations for Former Caesars for the
period from January 1, 2020 to July 20, 2020, the date on which the
Merger was consummated, for the twelve months ended December 31,
2020, and for the three and twelve months ended December 31, 2019.
Additionally, certain corporate overhead costs which were
historically charged to properties within the segments have been
reclassified to Corporate and Other. These costs primarily include
centralized marketing expenses, redundant executive and management
payroll and benefits expenses, centralized contract labor expenses,
and corporate rent expenses. Such figures are based on unaudited
internal financial statements and have not been reviewed by the
Company's auditors and, for the 2020 periods, do not conform to
GAAP.
|
(e)
|
2019 Total for the
three and twelve months ended December 31, 2019 excludes results of
operations from divestitures as detailed in (a) and includes
results of operations of Former Caesars, including discontinued
operations, for the relevant period. Such presentation does not
conform to 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 operations reported by the Company.
|
(f)
|
2020 Total for the
twelve months ended December 31, 2020 excludes divestitures as
detailed in (a) and includes results of operations from
discontinued operations and from Former Caesars from January 1,
2020 to July 20, 2020, the date that the Merger was consummated.
Such presentation does not conform to 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 operations reported by the
Company.
|
(g)
|
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 net (loss) income, which the Company believes is
the most comparable financial measure calculated in accordance with
GAAP.
|
Balance Sheet and Liquidity
As of December 31, 2020, Caesars had $15.0 billion in aggregate principal amount of
debt outstanding. Total cash and cash equivalents were $1.8 billion, excluding restricted cash of
$2.0 billion.
(In
millions)
|
December 31, 2020
(a)
|
|
December 31,
2019
|
Cash and cash
equivalents
|
$
|
1,758
|
|
|
$
|
206
|
|
|
|
|
|
Bank debt and
loans
|
10,155
|
|
|
499
|
|
Notes
|
4,815
|
|
|
2,096
|
|
Other long-term
debt
|
53
|
|
|
3
|
|
Total outstanding
indebtedness
|
$
|
15,023
|
|
|
$
|
2,598
|
|
|
|
|
|
Net debt
|
$
|
13,265
|
|
|
$
|
2,392
|
|
____________________
(a)
|
Includes
indebtedness that was incurred by Former Caesars that remained
outstanding following the consummation of the
Merger.
|
"Our liquidity position is strong with $1.8 billion in unrestricted cash and
$2.1 billion of available revolver
drawings," said Bret Yunker, Chief
Financial Officer. "Our successful $1.9
billion equity offering in September
2020 positions us well for the expected William Hill closing early in the second quarter
of 2021."
Reconciliation of GAAP Measures to Non-GAAP Measures
Adjusted EBITDA (described 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 our
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 net income
(loss) before interest expense, (benefit) provision for income
taxes, unrealized (gain) loss on investments and marketable
securities, depreciation and amortization, stock-based
compensation, impairment charges, transaction expenses, severance
expense, selling costs associated with the divestitures of
properties, equity in income (loss) of unconsolidated affiliates,
(gain) loss on the sale or disposal of property and equipment,
(gain) loss related to divestitures, changes in the fair value of
certain derivatives and certain non-recurring expenses such as
sign-on and retention bonuses, business optimization expenses and
transformation expenses, litigation awards and settlements, losses
on inventory associated with properties temporarily closed as a
result of the COVID-19 public health emergency, contract exit or
termination costs, and regulatory settlements. Adjusted EBITDA also
excludes the expense associated with certain of our leases as these
transactions were accounted for as financing obligations and the
associated expense is included in interest expense. Adjusted EBITDA
is not a measure of performance or liquidity calculated in
accordance with GAAP, is unaudited and should not be considered an
alternative to, or more meaningful than, net income (loss) as an
indicator of our operating performance. Uses of cash flows that are
not reflected in Adjusted EBITDA include capital expenditures,
interest payments, income taxes, debt principal repayments,
payments under our leases with affiliates of GLPI and VICI
Properties Inc. 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 Adjusted 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.
Conference Call Information
The Company will host a conference call to discuss the company's
results on February 25, 2021 at
2 p.m. Pacific Time. Participants
should dial 833-665-0647, or 914-987-7309 for international
callers, and enter Conference ID 5039038 approximately 10 minutes
before the call start time. The call will also be accessible on the
Investor Relations section of Caesars' website at
https://investor.caesars.com.
About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. is the largest casino-entertainment
company in the U.S. and one of the world's most diversified
casino-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment,
Inc. has grown through development of new resorts, expansions and
acquisitions. Caesars Entertainment, Inc.'s resorts operate
primarily under the Caesars®, Harrah's®, Horseshoe® and Eldorado®
brand names. Caesars Entertainment, Inc. offers diversified
amenities and one-of-a-kind destinations, with a focus on building
loyalty and value with its guests through a unique combination of
impeccable service, operational excellence and technology
leadership. Caesars is committed to its employees, suppliers,
communities and the environment through its PEOPLE PLANET PLAY
framework. For more information, please visit
www.caesars.com/corporate.
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. These risks and uncertainties include: (a) the
effects of the COVID-19 public health emergency, including (i) the
extent and duration of the impact of the global COVID-19 public
health emergency and measures to contain the public health
emergency or mitigate its impact on the Company's business,
financial results and liquidity; (ii) the ability of the Company to
modify its operations to comply with various state, tribal and
local directives, mandates, and orders; (iii) the impact of actions
the Company has undertaken to reduce costs and improve efficiencies
to mitigate losses as a result of the COVID-19 public health
emergency, which could negatively impact guest loyalty and our
ability to attract and retain our employees; and (iv) changes and
instability in global, national and regional economic activity and
financial market activity as a result of the COVID-19 public health
emergency and the impact on consumer discretionary spending and
travel; (b) the possibility that the proposed acquisition of
William Hill and the announced and proposed dispositions are not
consummated on the expected terms or at all; (c) risks related to
the proposed acquisition of William Hill and the integration of the
respective businesses and assets of the Company, William Hill and
Former Caesars; (d) potential adverse reactions or changes to
business or employee relationships, including those resulting from
the completion of the Merger and the proposed acquisition of
William Hill; (e) the possibility that the anticipated benefits of
the Merger and the proposed acquisition of William Hill, including
cost savings and expected synergies, are not realized when expected
or at all; (f) risks associated with increased leverage and
additional rental expense resulting from debt financing undertaken
in connection with the Merger and the proposed acquisition of
William Hill and real estate transactions undertaken in connection
with the Merger; (g) competitive responses to the Merger and the
proposed acquisition of William Hill; and (h) additional factors
discussed in the sections entitled "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's most recent Annual Reports on Form
10-K and Quarterly Report on Form 10-Q as filed with the Securities
and Exchange Commission. Other unknown or unpredictable factors may
also cause actual results to differ materially from those projected
by the forward-looking statements.
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.
Source: Caesars Entertainment, Inc.; CZR
CAESARS
ENTERTAINMENT, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In millions,
except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
REVENUES:
|
|
|
|
|
|
|
|
Casino and pari-mutuel
commissions
|
$
|
977
|
|
|
$
|
422
|
|
|
$
|
2,337
|
|
|
$
|
1,808
|
|
Food and
beverage
|
149
|
|
|
72
|
|
|
337
|
|
|
301
|
|
Hotel
|
193
|
|
|
63
|
|
|
450
|
|
|
300
|
|
Other
|
178
|
|
|
35
|
|
|
350
|
|
|
119
|
|
Net
revenues
|
1,497
|
|
|
592
|
|
|
3,474
|
|
|
2,528
|
|
EXPENSES:
|
|
|
|
|
|
|
|
Casino and pari-mutuel
commissions
|
512
|
|
|
212
|
|
|
1,197
|
|
|
905
|
|
Food and
beverage
|
108
|
|
|
59
|
|
|
261
|
|
|
239
|
|
Hotel
|
79
|
|
|
23
|
|
|
170
|
|
|
99
|
|
Other
|
78
|
|
|
12
|
|
|
140
|
|
|
46
|
|
General and
administrative
|
387
|
|
|
122
|
|
|
882
|
|
|
503
|
|
Corporate
|
75
|
|
|
15
|
|
|
195
|
|
|
66
|
|
Impairment
charges
|
54
|
|
|
—
|
|
|
215
|
|
|
1
|
|
Depreciation and
amortization
|
261
|
|
|
55
|
|
|
583
|
|
|
222
|
|
Transaction costs and
other operating costs
|
26
|
|
|
35
|
|
|
268
|
|
|
37
|
|
Total operating
expenses
|
1,580
|
|
|
533
|
|
|
3,911
|
|
|
2,118
|
|
Operating (loss)
income
|
(83)
|
|
|
59
|
|
|
(437)
|
|
|
410
|
|
OTHER
EXPENSE:
|
|
|
|
|
|
|
|
Interest expense,
net
|
(566)
|
|
|
(69)
|
|
|
(1,174)
|
|
|
(286)
|
|
Loss on extinguishment
of debt
|
(24)
|
|
|
(7)
|
|
|
(197)
|
|
|
(8)
|
|
Other
income
|
177
|
|
|
9
|
|
|
176
|
|
|
9
|
|
Total other
expense
|
(413)
|
|
|
(67)
|
|
|
(1,195)
|
|
|
(285)
|
|
(Loss) income from
continuing operations before income taxes
|
(496)
|
|
|
(8)
|
|
|
(1,632)
|
|
|
125
|
|
Provision for income
taxes
|
(62)
|
|
|
(5)
|
|
|
(126)
|
|
|
(44)
|
|
Net (loss) income from
continuing operations, net of income taxes
|
(558)
|
|
|
(13)
|
|
|
(1,758)
|
|
|
81
|
|
Discontinued
operations, net of income taxes
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net (loss)
income
|
(557)
|
|
|
(13)
|
|
|
(1,758)
|
|
|
81
|
|
Net loss attributable
to noncontrolling interests
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Net (loss) income
attributable to Caesars
|
$
|
(555)
|
|
|
$
|
(13)
|
|
|
$
|
(1,757)
|
|
|
$
|
81
|
|
Net (loss)
income per share - basic and diluted:
|
|
|
|
|
|
|
|
Basic (loss) income
per share from continuing operations
|
$
|
(1.92)
|
|
|
$
|
(0.17)
|
|
|
$
|
(13.47)
|
|
|
$
|
1.04
|
|
Basic loss per share
from discontinued operations
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Basic (loss) income
per share
|
$
|
(1.91)
|
|
|
$
|
(0.17)
|
|
|
$
|
(13.50)
|
|
|
$
|
1.04
|
|
Diluted (loss) income
per share from continuing operations
|
$
|
(1.92)
|
|
|
$
|
(0.17)
|
|
|
$
|
(13.47)
|
|
|
$
|
1.03
|
|
Diluted loss per share
from discontinued operations
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Diluted (loss) income
per share
|
$
|
(1.91)
|
|
|
$
|
(0.17)
|
|
|
$
|
(13.50)
|
|
|
$
|
1.03
|
|
Weighted average
basic shares outstanding
|
26
|
|
|
—
|
|
|
130
|
|
|
78
|
|
Weighted average
diluted shares outstanding
|
26
|
|
|
—
|
|
|
130
|
|
|
79
|
|
CAESARS
ENTERTAINMENT, INC.
RECONCILIATION OF
NET (LOSS) INCOME ATTRIBUTABLE TO CAESARS TO ADJUSTED
EBITDA
(UNAUDITED)
|
|
|
|
Three Months Ended
December 31, 2020
|
(In
millions)
|
CEI
|
|
Less: Divest. Add:
Disc. Ops (e) (h)
|
|
Total
(f)
|
Net loss attributable
to Caesars
|
$
|
(555)
|
|
|
$
|
28
|
|
|
$
|
(527)
|
|
Net loss attributable
to noncontrolling interests
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Net income from
discontinued operations
|
(1)
|
|
|
1
|
|
|
—
|
|
Provision (benefit)
for income taxes
|
62
|
|
|
6
|
|
|
68
|
|
Other loss
(a)
|
(177)
|
|
|
(6)
|
|
|
(183)
|
|
Loss on
extinguishment of debt (b)
|
24
|
|
|
—
|
|
|
24
|
|
Interest expense,
net
|
566
|
|
|
32
|
|
|
598
|
|
Depreciation and
amortization
|
261
|
|
|
(3)
|
|
|
258
|
|
Impairment
charges
|
54
|
|
|
—
|
|
|
54
|
|
Transaction costs and
other operating costs (c)
|
26
|
|
|
(7)
|
|
|
19
|
|
Stock-based
compensation expense
|
23
|
|
|
—
|
|
|
23
|
|
Other items
(d)
|
15
|
|
|
(1)
|
|
|
14
|
|
Adjusted
EBITDA
|
$
|
296
|
|
|
$
|
50
|
|
|
$
|
346
|
|
|
|
|
Three Months Ended
December 31, 2019
|
(In
millions)
|
CEI
|
|
Less: Divestitures
(h)
|
|
Pre-Acq. CEC
(f)
|
|
Total
(g)
|
Net income (loss)
attributable to Caesars
|
$
|
(13)
|
|
|
$
|
(5)
|
|
|
$
|
(304)
|
|
|
$
|
(322)
|
|
Net loss attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Provision (benefit)
for income taxes
|
5
|
|
|
(26)
|
|
|
(30)
|
|
|
(51)
|
|
Other (income) loss
(a)
|
(9)
|
|
|
—
|
|
|
175
|
|
|
166
|
|
Loss on
extinguishment of debt
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
Interest expense,
net
|
69
|
|
|
21
|
|
|
337
|
|
|
427
|
|
Depreciation and
amortization
|
55
|
|
|
(6)
|
|
|
278
|
|
|
327
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
38
|
|
|
38
|
|
Transaction costs and
other operating costs (c)
|
35
|
|
|
(1)
|
|
|
50
|
|
|
84
|
|
Stock-based
compensation expense
|
4
|
|
|
—
|
|
|
26
|
|
|
30
|
|
Other items
(d)
|
2
|
|
|
1
|
|
|
14
|
|
|
17
|
|
Adjusted
EBITDA
|
$
|
155
|
|
|
$
|
(16)
|
|
|
$
|
583
|
|
|
$
|
722
|
|
|
|
|
Year Ended
December 31, 2020
|
(In
millions)
|
CEI
|
|
Less: Divest. Add:
Disc. Ops (e) (h)
|
|
Pre-Acq. CEC
(f)
|
|
Total
(j)
|
Net loss attributable
to Caesars
|
$
|
(1,757)
|
|
|
$
|
93
|
|
|
$
|
(1,059)
|
|
|
$
|
(2,723)
|
|
Net loss attributable
to noncontrolling interests
|
(1)
|
|
|
—
|
|
|
(67)
|
|
|
(68)
|
|
Provision (benefit)
for income taxes
|
126
|
|
|
9
|
|
|
(224)
|
|
|
(89)
|
|
Other (income) loss
(a)
|
(176)
|
|
|
(12)
|
|
|
(45)
|
|
|
(233)
|
|
Loss on
extinguishment of debt (b)
|
197
|
|
|
—
|
|
|
—
|
|
|
197
|
|
Interest expense,
net
|
1,174
|
|
|
49
|
|
|
750
|
|
|
1,973
|
|
Depreciation and
amortization
|
583
|
|
|
(5)
|
|
|
559
|
|
|
1,137
|
|
Impairment
charges
|
215
|
|
|
(33)
|
|
|
189
|
|
|
371
|
|
Transaction costs and
other operating costs (c)
|
268
|
|
|
(6)
|
|
|
71
|
|
|
333
|
|
Stock-based
compensation
|
78
|
|
|
1
|
|
|
26
|
|
|
105
|
|
Other items
(d)
|
30
|
|
|
(2)
|
|
|
54
|
|
|
82
|
|
Adjusted
EBITDA
|
$
|
737
|
|
|
$
|
94
|
|
|
$
|
254
|
|
|
$
|
1,085
|
|
|
|
|
Year Ended
December 31, 2019
|
(In
millions)
|
CEI
|
|
Less: Divestitures
(h)
|
|
Pre-Acq. CEC
(f)
|
|
Total
(i)
|
Net income (loss)
attributable to Caesars
|
$
|
81
|
|
|
$
|
(51)
|
|
|
$
|
(1,195)
|
|
|
$
|
(1,165)
|
|
Net loss attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
Provision (benefit)
for income taxes
|
44
|
|
|
(37)
|
|
|
(141)
|
|
|
(134)
|
|
Other (income) loss
(a)
|
(9)
|
|
|
—
|
|
|
587
|
|
|
578
|
|
Loss on extinguishment
of debt
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
Interest expense,
net
|
286
|
|
|
10
|
|
|
1,370
|
|
|
1,666
|
|
Depreciation and
amortization
|
222
|
|
|
(29)
|
|
|
1,021
|
|
|
1,214
|
|
Impairment
charges
|
1
|
|
|
—
|
|
|
468
|
|
|
469
|
|
Transaction costs and
other operating costs (c)
|
37
|
|
|
(1)
|
|
|
136
|
|
|
172
|
|
Stock-based
compensation expense
|
20
|
|
|
(1)
|
|
|
88
|
|
|
107
|
|
Other items
(d)
|
7
|
|
|
—
|
|
|
80
|
|
|
87
|
|
Adjusted
EBITDA
|
$
|
697
|
|
|
$
|
(109)
|
|
|
$
|
2,411
|
|
|
$
|
2,999
|
|
____________________
(a)
|
Other (income)
loss for the three and twelve months ended December 31, 2020
primarily relates to gains resulting from the change in the foreign
currency exchange rate associated with restricted cash held in GBP
and a derivative contract associated with our acquisition of
William Hill, gains on William Hill UK and Flutter stock held by
the Company and realized gains on conversion of CEC's 5%
convertible notes. Partially offsetting these gains is a loss on
the change in fair value of the derivative liability related to
CEC's 5% convertible notes. Other loss (income) for the three and
twelve months ended December 31, 2019 primarily represent
unrealized loss on the change in fair value of the derivative
liability related to CEC's 5% convertible notes.
|
(b)
|
Loss on
extinguishment of debt for the three and twelve months ended
December 31, 2020 primarily represents loss on early repayment of
debt in connection with the consummation of the
Merger.
|
(c)
|
Transaction costs
and other operating costs for the three and twelve months ended
December 31, 2020 and December 31, 2019 primarily represent cost
related to the Merger with Former Caesars, various contract or
license termination exit costs, professional services, other
acquisition costs and severance costs.
|
(d)
|
Other items
include internal labor charges related to certain departed
executives, retention bonuses, business optimization expenses and
contract labor, and other miscellaneous items.
|
(e)
|
Discontinued
operations include Horseshoe Hammond, Caesars Southern Indiana,
Harrah's Louisiana Downs, Caesars UK group including Emerald
Resorts & Casino, and Bally's Atlantic City.
|
(f)
|
Pre-acquisition
CEC represents results of operations for Former Caesars for the
period from January 1, 2020 to July 20, 2020, the date on which the
Merger was consummated, for the twelve months ended December 31,
2020, and for the three and twelve months ended December 31, 2019.
Such figures are based on unaudited internal financial statements
and have not been reviewed by the Company's auditors and, for the
2020 periods, do not conform to GAAP.
|
(g)
|
2020 Total for the
three months ended December 31, 2020 excludes results of operations
from divestitures as detailed in (h) and includes results of
operations from discontinued operations. Such presentation does not
conform to 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 operations reported by the Company.
|
(h)
|
Divestitures for
the three and twelve months ended December 31, 2019 include results
of operations for Presque Isle Downs & Casino, Lady Luck Casino
Nemacolin, Mountaineer Racetrack Casino and Resort, Isle Casino
Cape Girardeau, Lady Luck Caruthersville, Isle of Capri Kansas
City, Lady Luck Vicksburg, Harrah's Reno, Bally's Atlantic City and
Eldorado Resort Casino Shreveport. Divestitures for the three and
twelve months ended December 31, 2020 include results of operations
for Isle of Capri Kansas City, Lady Luck Vicksburg, Eldorado Resort
Casino Shreveport, Harrah's Reno, and Bally's Atlantic City. 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.
|
(i)
|
2019 Total for the
three and twelve months ended December 31, 2019 excludes results of
operations from divestitures as detailed in (h) and includes
results of operations of Former Caesars, including discontinued
operations, for the relevant period. Such presentation does not
conform to 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 our
reported results of operations.
|
(j)
|
2020 Total for the
twelve months ended December 31, 2020 excludes divestitures as
detailed in (h) and includes results of operations from
discontinued operations and from Former Caesars prior to July 20,
2020, the date on which the Merger was consummated. Such
presentation does not conform to 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 our reported results of
operations.
|
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SOURCE Caesars Entertainment, Inc.