LAS VEGAS and RENO, Nev., Aug. 3,
2021 /PRNewswire/ -- Caesars Entertainment, Inc., (NASDAQ:
CZR) ("Caesars," "CZR," "CEI" or "the Company") today reported
operating results for the second quarter ended June 30,
2021.
Second Quarter 2021 and Recent Highlights:
- Net revenues of $2.5 billion
versus $127 million on a GAAP basis
for the comparable prior-year period.
- Net income of $71 million
compared to a net loss of $100
million for the comparable prior-year period.
- Same-store Adjusted EBITDA of $1.0
billion versus $(131) million
for the comparable prior-year period.
- Company posted all-time records in quarterly Adjusted EBITDA
and Adjusted EBITDA margin.
- Divested Caesars UK group on July 16,
2021.
- Launched comprehensive new marketing campaign for Caesars
Sportsbook on August 2, 2021.
Tom Reeg, Chief Executive Officer
of Caesars Entertainment, Inc., commented, "Our second quarter
operating results improved significantly versus the first quarter
of 2021 driven by continued strength in our regional markets and a
dramatic improvement in results in our Las Vegas segment. With the William Hill
acquisition now closed, we have officially rebranded our sports
betting operations to Caesars and we launched our new comprehensive
marketing campaign on August 2,
2021."
Second Quarter 2021 Financial Results Summary and Segment
Information
For the second quarter ended June 30, 2021, Caesars
Entertainment, Inc. generated net revenues of $2.5 billion and net income of $71 million on a GAAP basis. After combining the
results from the operations of Caesars Entertainment, Inc. with
William Hill US prior to the acquisition and the results of our
properties classified as discontinued operations but were not
divested at the end of the period, which we refer to as a
same-store basis for the period, Caesars Entertainment, Inc.
reported same-store net revenues of $2.6
billion and adjusted EBITDA of $1.0
billion. For the periods ended June
30, 2020, a comparative same-store basis includes the
results of operations of Caesars Entertainment, Inc. combined with
William Hill US prior to the consummation of the acquisition on
April 22, 2021 and the operations of
Caesars Entertainment Corporation ("Former Caesars") prior to the
closing of the acquisition of Former Caesars on July 20, 2020 (the "Merger") and eliminates
results of operations for properties that have been divested. In
our Las Vegas segment, the Company
reported same-store revenues of $855
million and same-store adjusted EBITDA of $423 million for the quarter. In our Regional
segment, same-store revenues were $1.5
billion and same-store adjusted EBITDA was $621 million. For Caesars Digital, our sports
betting and online gaming segment, same-store net revenues were
$117 million and same-store adjusted
EBITDA was $2 million.
Net
Revenues
|
|
Three Months Ended
June 30,
|
(Dollars in
millions)
|
2021
|
|
2021
Pre-Acq.
WH US
(a)
|
|
Add:
Disc.
Ops (b)
|
|
Less:
2021
Divest.
(c)
|
|
2021
Total
(d)
|
|
2020
|
|
2020
Pre-Acq.
WH US
(a)
|
|
2020
Pre-
Acq.
CEC
(e)
|
|
Less:
2020
Divest.
(c)
|
|
2020
Total
(f)
|
Las Vegas
|
$
|
855
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
855
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
109
|
|
|
$
|
—
|
|
|
$
|
109
|
|
Regional
|
1,490
|
|
|
—
|
|
|
80
|
|
|
(28)
|
|
|
1,542
|
|
|
114
|
|
|
—
|
|
|
186
|
|
|
(24)
|
|
|
276
|
|
Caesars
Digital
|
86
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|
11
|
|
|
10
|
|
|
30
|
|
|
—
|
|
|
51
|
|
Managed and
International
|
66
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
Corporate and
Other
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
2
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
7
|
|
Caesars
|
$
|
2,502
|
|
|
$
|
31
|
|
|
$
|
100
|
|
|
$
|
(28)
|
|
|
$
|
2,605
|
|
|
$
|
127
|
|
|
$
|
10
|
|
|
$
|
357
|
|
|
$
|
(24)
|
|
|
$
|
470
|
|
Net
Revenues
|
|
Six Months Ended
June 30,
|
(Dollars in
millions)
|
2021
|
|
2021
Pre-Acq.
WH US
(a)
|
|
Add:
Disc.
Ops (b)
|
|
Less:
2021
Divest.
(c)
|
|
2021
Total
(d)
|
|
2020
|
|
2020
Pre-
Acq. WH US
(a)
|
|
2020
Pre-
Acq.
CEC (e)
|
|
Less:
2020
Divest.
(c)
|
|
2020
Total
(f)
|
Las Vegas
|
$
|
1,352
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,352
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
931
|
|
|
$
|
—
|
|
|
$
|
931
|
|
Regional
|
2,681
|
|
|
—
|
|
|
142
|
|
|
(69)
|
|
|
2,754
|
|
|
577
|
|
|
—
|
|
|
1,060
|
|
|
(148)
|
|
|
1,489
|
|
Caesars
Digital
|
125
|
|
|
135
|
|
|
—
|
|
|
—
|
|
|
260
|
|
|
19
|
|
|
51
|
|
|
49
|
|
|
—
|
|
|
119
|
|
Managed and
International
|
127
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
157
|
|
|
—
|
|
|
—
|
|
|
135
|
|
|
—
|
|
|
135
|
|
Corporate and
Other
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
4
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
14
|
|
Caesars
|
$
|
4,294
|
|
|
$
|
135
|
|
|
$
|
172
|
|
|
$
|
(69)
|
|
|
$
|
4,532
|
|
|
$
|
600
|
|
|
$
|
51
|
|
|
$
|
2,185
|
|
|
$
|
(148)
|
|
|
$
|
2,688
|
|
Net Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
(Dollars in
millions)
|
2021
|
|
2021
Pre-Acq.
WH US
(a)
|
|
Less:
2021
Divest.
(c)
|
|
2021
Total (d)
|
|
2020
|
|
2020
Pre-Acq.
WH US
(a)
|
|
2020
Pre-
Acq.
CEC (e)
|
|
Less:
2020
Divest.
(c)
|
|
2020
Total
(f)
|
Las Vegas
|
$
|
184
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
184
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(246)
|
|
|
$
|
—
|
|
|
$
|
(246)
|
|
Regional
|
251
|
|
|
—
|
|
|
(13)
|
|
|
238
|
|
|
(92)
|
|
|
—
|
|
|
(314)
|
|
|
28
|
|
|
(378)
|
|
Caesars
Digital
|
(22)
|
|
|
(22)
|
|
|
—
|
|
|
(44)
|
|
|
5
|
|
|
(24)
|
|
|
8
|
|
|
—
|
|
|
(11)
|
|
Managed and
International
|
(13)
|
|
|
—
|
|
|
—
|
|
|
(13)
|
|
|
—
|
|
|
—
|
|
|
(18)
|
|
|
—
|
|
|
(18)
|
|
Corporate and
Other
|
(329)
|
|
|
—
|
|
|
—
|
|
|
(329)
|
|
|
(13)
|
|
|
—
|
|
|
(504)
|
|
|
—
|
|
|
(517)
|
|
Caesars
|
$
|
71
|
|
|
$
|
(22)
|
|
|
$
|
(13)
|
|
|
$
|
36
|
|
|
$
|
(100)
|
|
|
$
|
(24)
|
|
|
$
|
(1,074)
|
|
|
$
|
28
|
|
|
$
|
(1,170)
|
|
Net Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
(Dollars in
millions)
|
2021
|
|
2021
Pre-
Acq.
WH US (a)
|
|
Less:
2021
Divest.
(c)
|
|
2021
Total (d)
|
|
2020
|
|
2020
Pre-
Acq.
WH US (a)
|
|
2020
Pre-
Acq.
CEC (e)
|
|
Less:
2020
Divest.
(c)
|
|
2020
Total
(f)
|
Las Vegas
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(240)
|
|
|
$
|
—
|
|
|
$
|
(240)
|
|
Regional
|
316
|
|
|
—
|
|
|
(30)
|
|
|
286
|
|
|
(231)
|
|
|
—
|
|
|
(513)
|
|
|
115
|
|
|
(629)
|
|
Caesars
Digital
|
(30)
|
|
|
(33)
|
|
|
—
|
|
|
(63)
|
|
|
9
|
|
|
(18)
|
|
|
12
|
|
|
—
|
|
|
3
|
|
Managed and
International
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(32)
|
|
|
—
|
|
|
(32)
|
|
Corporate and
Other
|
(757)
|
|
|
—
|
|
|
—
|
|
|
(757)
|
|
|
(54)
|
|
|
—
|
|
|
(112)
|
|
|
—
|
|
|
(166)
|
|
Caesars
|
$
|
(352)
|
|
|
$
|
(33)
|
|
|
$
|
(30)
|
|
|
$
|
(415)
|
|
|
$
|
(276)
|
|
|
$
|
(18)
|
|
|
$
|
(885)
|
|
|
$
|
115
|
|
|
$
|
(1,064)
|
|
Adjusted EBITDA
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
(Dollars in
millions)
|
2021
|
|
2021
Pre-
Acq.
WH US (a)
|
|
Add:
Disc.
Ops (b)
|
|
Less:
2021
Divest.
(c)
|
|
2021
Total
(d)
|
|
2020
|
|
2020
Pre-
Acq.
WH US (a)
|
|
2020
Pre-
Acq.
CEC (e)
|
|
Less:
2020
Divest.
(c)
|
|
2020
Total
(f)
|
Las Vegas
|
$
|
423
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
423
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(40)
|
|
|
$
|
—
|
|
|
$
|
(40)
|
|
Regional
|
602
|
|
|
—
|
|
|
32
|
|
|
(13)
|
|
|
621
|
|
|
(8)
|
|
|
—
|
|
|
(31)
|
|
|
10
|
|
|
(29)
|
|
Caesars
Digital
|
(5)
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
(5)
|
|
|
9
|
|
|
—
|
|
|
9
|
|
Managed and
International
|
26
|
|
|
—
|
|
|
(10)
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
—
|
|
|
(9)
|
|
Corporate and
Other
|
(42)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42)
|
|
|
(8)
|
|
|
—
|
|
|
(54)
|
|
|
—
|
|
|
(62)
|
|
Caesars
|
$
|
1,004
|
|
|
$
|
7
|
|
|
$
|
22
|
|
|
$
|
(13)
|
|
|
$
|
1,020
|
|
|
$
|
(11)
|
|
|
$
|
(5)
|
|
|
$
|
(125)
|
|
|
$
|
10
|
|
|
$
|
(131)
|
|
Adjusted EBITDA
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
(Dollars in
millions)
|
2021
|
|
2021
Pre-
Acq.
WH US (a)
|
|
Add:
Disc.
Ops (b)
|
|
Less:
2021
Divest.
(c)
|
|
2021
Total
(d)
|
|
2020
|
|
2020
Pre-
Acq.
WH US (a)
|
|
2020
Pre-
Acq.
CEC (e)
|
|
Less:
2020
Divest.
(c)
|
|
2020
Total
(f)
|
Las Vegas
|
$
|
585
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
585
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
181
|
|
|
$
|
—
|
|
|
$
|
181
|
|
Regional
|
995
|
|
|
—
|
|
|
52
|
|
|
(30)
|
|
|
1,017
|
|
|
99
|
|
|
—
|
|
|
97
|
|
|
4
|
|
|
200
|
|
Caesars
Digital
|
(7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
9
|
|
|
1
|
|
|
13
|
|
|
—
|
|
|
23
|
|
Managed and
International
|
47
|
|
|
—
|
|
|
(18)
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
(12)
|
|
|
—
|
|
|
(12)
|
|
Corporate and
Other
|
(81)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81)
|
|
|
(16)
|
|
|
—
|
|
|
(105)
|
|
|
—
|
|
|
(121)
|
|
Caesars
|
$
|
1,539
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
(30)
|
|
|
$
|
1,543
|
|
|
$
|
92
|
|
|
$
|
1
|
|
|
$
|
174
|
|
|
$
|
4
|
|
|
$
|
271
|
|
____________________
|
(a)
|
Represents results
of operations for William Hill US for periods prior to the
acquisition. 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 Caesars Southern Indiana, Harrah's Louisiana
Downs and the Caesars UK group, including Emerald Resorts &
Casino. 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.
|
(c)
|
Divestitures for
the three and six months ended June 30, 2021 include results
of operations for MontBleu and Tropicana Evansville and for the
three and six months ended June 30, 2020 include results of
operations for Isle of Capri Kansas City, Lady Luck Vicksburg,
Eldorado Resort Casino Shreveport, MontBleu, Tropicana Evansville
and discontinued operations of 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.
|
(d)
|
Excludes results
of operations from divestitures as detailed in (c), includes
results of operations of William Hill US prior to the acquisition
and from discontinued operations for the periods presented. 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.
|
(e)
|
Represents results
of operations for Former Caesars prior to the Merger. Additionally,
certain corporate overhead costs which were historically charged to
properties within the segments during the three months ended
June 30, 2020 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.
|
(f)
|
Excludes results
of operations from divestitures as detailed in (c) and includes
results of operations of William Hill US prior to the acquisition
and of Former Caesars prior to the Merger, 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.
|
(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 income (loss), which the Company believes is
the most comparable financial measure calculated in accordance with
GAAP.
|
Balance Sheet and Liquidity
As of June 30, 2021, Caesars had $14.7 billion in aggregate principal amount of
debt outstanding. Total cash and cash equivalents were $1.1 billion, excluding restricted cash of
$622 million.
(In
millions)
|
June 30,
2021
|
|
December 31,
2020
|
Cash and cash
equivalents
|
$
|
1,128
|
|
|
$
|
1,776
|
|
|
|
|
|
Bank debt and
loans
|
$
|
6,722
|
|
|
$
|
6,755
|
|
Notes
|
7,900
|
|
|
8,215
|
|
Other long-term
debt
|
51
|
|
|
53
|
|
Total outstanding
indebtedness
|
$
|
14,673
|
|
|
$
|
15,023
|
|
|
|
|
|
Net debt
|
$
|
13,545
|
|
|
$
|
13,247
|
|
"We anticipate that our balance sheet will be further enhanced
through improved operating trends and expected asset sale proceeds.
We paid down $325 million of debt
during the quarter and remain committed to further debt reduction,"
said Bret Yunker, Chief Financial
Officer.
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 income or interest expense, net of interest
capitalized, (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, certain
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
certain 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. It 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 August 3, 2021 at
2 p.m. Pacific Time. Participants
should dial 833-665-0647, or 914-987-7309 for international callers
and enter Conference ID 2469744 approximately 10 minutes before the
call start time. The call will also be accessible on the Investor
Relations section of Caesars Entertainment's website at
https://investor.caesars.com.
About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest
casino-entertainment company in the US and one of the world's most
diversified casino-entertainment providers. Since its beginning in
Reno, NV, 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 gaming, entertainment and hospitality amenities,
one-of-a-kind destinations, and a full suite of mobile and online
gaming and sports betting experiences. All tied to its
industry-leading Caesars Rewards loyalty program, the company
focuses on building 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. Know When To Stop Before You Start.®
Gambling Problem? Call 1-800-522-4700. 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 on our results of
operations and the duration of such impact; (b) impacts of economic
and market conditions; (c) our ability to integrate the William
Hill US business, successfully operate our digital betting and
iGaming platform and expand its user base; (d) the possibility that
the anticipated benefits of the Merger and the acquisition of
William Hill, including cost savings and expected synergies, are
not realized when expected or at all; (e) risks associated with our
leverage and our ability to reduce our leverage, including with
proceeds of expected sale transactions; (g) the effects of
competition on our business and results of operations; 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.
CAESARS
ENTERTAINMENT, INC.
|
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
|
(UNAUDITED)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(In millions,
except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
REVENUES:
|
|
|
|
|
|
|
|
Casino and pari-mutuel
commissions
|
$
|
1,571
|
|
|
$
|
101
|
|
|
$
|
2,798
|
|
|
$
|
441
|
|
Food and
beverage
|
281
|
|
|
7
|
|
|
450
|
|
|
63
|
|
Hotel
|
396
|
|
|
9
|
|
|
611
|
|
|
57
|
|
Other
|
254
|
|
|
10
|
|
|
435
|
|
|
39
|
|
Net
revenues
|
2,502
|
|
|
127
|
|
|
4,294
|
|
|
600
|
|
EXPENSES:
|
|
|
|
|
|
|
|
Casino and pari-mutuel
commissions
|
694
|
|
|
45
|
|
|
1,281
|
|
|
224
|
|
Food and
beverage
|
166
|
|
|
9
|
|
|
274
|
|
|
62
|
|
Hotel
|
106
|
|
|
6
|
|
|
187
|
|
|
28
|
|
Other
|
79
|
|
|
1
|
|
|
148
|
|
|
10
|
|
General and
administrative
|
418
|
|
|
67
|
|
|
798
|
|
|
165
|
|
Corporate
|
76
|
|
|
14
|
|
|
142
|
|
|
30
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
161
|
|
Depreciation and
amortization
|
301
|
|
|
49
|
|
|
566
|
|
|
99
|
|
Transaction costs and
other operating costs
|
72
|
|
|
15
|
|
|
92
|
|
|
23
|
|
Total operating
expenses
|
1,912
|
|
|
206
|
|
|
3,488
|
|
|
802
|
|
Operating income
(loss)
|
590
|
|
|
(79)
|
|
|
806
|
|
|
(202)
|
|
OTHER
EXPENSE:
|
|
|
|
|
|
|
|
Interest expense,
net
|
(576)
|
|
|
(68)
|
|
|
(1,155)
|
|
|
(135)
|
|
Loss on extinguishment
of debt
|
(23)
|
|
|
—
|
|
|
(23)
|
|
|
—
|
|
Other income
(loss)
|
110
|
|
|
13
|
|
|
(23)
|
|
|
(10)
|
|
Total other
expense
|
(489)
|
|
|
(55)
|
|
|
(1,201)
|
|
|
(145)
|
|
Income (loss) from
continuing operations before income taxes
|
101
|
|
|
(134)
|
|
|
(395)
|
|
|
(347)
|
|
Benefit for income
taxes
|
1
|
|
|
34
|
|
|
77
|
|
|
71
|
|
Net income (loss) from
continuing operations, net of income taxes
|
102
|
|
|
(100)
|
|
|
(318)
|
|
|
(276)
|
|
Discontinued
operations, net of income taxes
|
(30)
|
|
|
—
|
|
|
(34)
|
|
|
—
|
|
Net income
(loss)
|
72
|
|
|
(100)
|
|
|
(352)
|
|
|
(276)
|
|
Net income
attributable to noncontrolling interests
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income (loss)
attributable to Caesars
|
$
|
71
|
|
|
$
|
(100)
|
|
|
$
|
(352)
|
|
|
$
|
(276)
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share - basic and diluted:
|
|
|
|
|
|
|
|
Basic income (loss)
per share from continuing operations
|
$
|
0.48
|
|
|
$
|
(1.25)
|
|
|
$
|
(1.52)
|
|
|
$
|
(3.49)
|
|
Basic loss per share
from discontinued operations
|
(0.14)
|
|
|
—
|
|
|
(0.16)
|
|
|
—
|
|
Basic income (loss)
per share
|
$
|
0.34
|
|
|
$
|
(1.25)
|
|
|
$
|
(1.68)
|
|
|
$
|
(3.49)
|
|
Diluted income (loss)
per share from continuing operations
|
$
|
0.48
|
|
|
$
|
(1.25)
|
|
|
$
|
(1.52)
|
|
|
$
|
(3.49)
|
|
Diluted loss per share
from discontinued operations
|
(0.14)
|
|
|
—
|
|
|
(0.16)
|
|
|
—
|
|
Diluted income (loss)
per share
|
$
|
0.34
|
|
|
$
|
(1.25)
|
|
|
$
|
(1.68)
|
|
|
$
|
(3.49)
|
|
Weighted average
basic shares outstanding
|
209
|
|
|
80
|
|
|
209
|
|
|
79
|
|
Weighted average
diluted shares outstanding
|
211
|
|
|
80
|
|
|
209
|
|
|
79
|
|
CAESARS
ENTERTAINMENT, INC.
|
RECONCILIATION OF
NET INCOME (LOSS) ATTRIBUTABLE TO CAESARS TO ADJUSTED
EBITDA
|
(UNAUDITED)
|
|
|
Three Months Ended
June 30, 2021
|
(In
millions)
|
CEI
|
|
Pre-Acq. WH
US (d)
|
|
Add:
Disc. Ops
(e)
|
|
Less:
Divestitures
(f)
|
|
Total
(g)
|
Net income (loss)
attributable to Caesars
|
$
|
71
|
|
|
$
|
(22)
|
|
|
$
|
—
|
|
|
$
|
(13)
|
|
|
$
|
36
|
|
Net income
attributable to noncontrolling interests
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Discontinued
operations, net of income taxes
|
30
|
|
|
—
|
|
|
(28)
|
|
|
—
|
|
|
2
|
|
(Benefit) provision
for income taxes
|
(1)
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
3
|
|
Other (income) loss
(a)
|
(110)
|
|
|
(2)
|
|
|
31
|
|
|
—
|
|
|
(81)
|
|
Loss on
extinguishment of debt
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
Interest expense,
net
|
576
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
593
|
|
Depreciation and
amortization
|
301
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
303
|
|
Transaction costs and
other operating costs (b)
|
72
|
|
|
27
|
|
|
(2)
|
|
|
—
|
|
|
97
|
|
Stock-based
compensation expense
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
Other items
(c)
|
21
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
23
|
|
Adjusted
EBITDA
|
$
|
1,004
|
|
|
$
|
7
|
|
|
$
|
22
|
|
|
$
|
(13)
|
|
|
$
|
1,020
|
|
|
Three Months Ended
June 30, 2020
|
(In
millions)
|
CEI
|
|
Pre-Acq. WH
US (d)
|
|
Pre-Acq.
CEC
(h)
|
|
Less:
Divestitures
(f)
|
|
Total
(i)
|
Net income (loss)
attributable to Caesars
|
$
|
(100)
|
|
|
$
|
(24)
|
|
|
$
|
(1,074)
|
|
|
$
|
28
|
|
|
$
|
(1,170)
|
|
Net loss attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
(Benefit) provision
for income taxes
|
(34)
|
|
|
(7)
|
|
|
(227)
|
|
|
2
|
|
|
(266)
|
|
Other (income) loss
(a)
|
(13)
|
|
|
—
|
|
|
528
|
|
|
—
|
|
|
515
|
|
Interest expense,
net
|
68
|
|
|
—
|
|
|
344
|
|
|
(11)
|
|
|
401
|
|
Depreciation and
amortization
|
49
|
|
|
3
|
|
|
250
|
|
|
(6)
|
|
|
296
|
|
Transaction costs and
other operating costs (b)
|
15
|
|
|
23
|
|
|
29
|
|
|
(2)
|
|
|
65
|
|
Stock-based
compensation expense
|
4
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
17
|
|
Other items
(c)
|
—
|
|
|
—
|
|
|
15
|
|
|
(1)
|
|
|
14
|
|
Adjusted
EBITDA
|
$
|
(11)
|
|
|
$
|
(5)
|
|
|
$
|
(125)
|
|
|
$
|
10
|
|
|
$
|
(131)
|
|
|
Six Months Ended
June 30, 2021
|
(In
millions)
|
CEI
|
|
Pre-Acq. WH
US (d)
|
|
Add:
Disc. Ops
(e)
|
|
Less:
Divestitures
(f)
|
|
Total
(g)
|
Net loss attributable
to Caesars
|
$
|
(352)
|
|
|
$
|
(33)
|
|
|
$
|
—
|
|
|
$
|
(30)
|
|
|
$
|
(415)
|
|
Discontinued
operations, net of income taxes
|
34
|
|
|
—
|
|
|
(32)
|
|
|
—
|
|
|
2
|
|
(Benefit) provision
for income taxes
|
(77)
|
|
|
(2)
|
|
|
4
|
|
|
—
|
|
|
(75)
|
|
Other (income) loss
(a)
|
23
|
|
|
(2)
|
|
|
31
|
|
|
—
|
|
|
52
|
|
Loss on
extinguishment of debt
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
Interest expense,
net
|
1,155
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
1,188
|
|
Depreciation and
amortization
|
566
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
574
|
|
Transaction costs and
other operating costs (b)
|
92
|
|
|
27
|
|
|
(2)
|
|
|
—
|
|
|
117
|
|
Stock-based
compensation expense
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
Other items
(c)
|
32
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
34
|
|
Adjusted
EBITDA
|
$
|
1,539
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
(30)
|
|
|
$
|
1,543
|
|
|
Six Months Ended
June 30, 2020
|
(In
millions)
|
CEI
|
|
Pre-Acq. WH
US (d)
|
|
Pre-Acq.
CEC
(h)
|
|
Less:
Divestitures
(f)
|
|
Total
(i)
|
Net income (loss)
attributable to Caesars
|
$
|
(276)
|
|
|
$
|
(18)
|
|
|
$
|
(885)
|
|
|
$
|
115
|
|
|
$
|
(1,064)
|
|
Net loss attributable
to noncontrolling interests
|
—
|
|
|
—
|
|
|
(4)
|
|
|
—
|
|
|
(4)
|
|
(Benefit) provision
for income taxes
|
(71)
|
|
|
(13)
|
|
|
(173)
|
|
|
7
|
|
|
(250)
|
|
Other (income) loss
(a)
|
10
|
|
|
(1)
|
|
|
(113)
|
|
|
—
|
|
|
(104)
|
|
Interest expense,
net
|
135
|
|
|
—
|
|
|
677
|
|
|
(23)
|
|
|
789
|
|
Depreciation and
amortization
|
99
|
|
|
9
|
|
|
506
|
|
|
(13)
|
|
|
601
|
|
Impairment
charges
|
161
|
|
|
—
|
|
|
65
|
|
|
(79)
|
|
|
147
|
|
Transaction costs and
other operating costs (b)
|
23
|
|
|
23
|
|
|
50
|
|
|
(2)
|
|
|
94
|
|
Stock-based
compensation expense
|
10
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
33
|
|
Other items
(c)
|
1
|
|
|
1
|
|
|
28
|
|
|
(1)
|
|
|
29
|
|
Adjusted
EBITDA
|
$
|
92
|
|
|
$
|
1
|
|
|
$
|
174
|
|
|
$
|
4
|
|
|
$
|
271
|
|
____________________
|
(a)
|
Other (income)
loss for the three and six months ended June 30, 2021
primarily represents a gain on the change in fair value of
investments offset by a loss on the change in fair value of the
derivative liability related to the 5% Convertible Notes. Other
(income) loss for the three and six months ended June 30, 2020
primarily represents the change in fair value of the derivative
liability related to 5% Convertible Notes and losses on
investments.
|
(b)
|
Transaction costs
and other operating costs for the periods presented primarily
represent costs related to the William Hill acquisition and the
Merger, various contract or license termination exit costs,
professional services, other acquisition costs and severance
costs.
|
(c)
|
Other items
primarily represent certain consulting and legal fees, rent for
non-operating assets, relocation expenses, and business
optimization expenses.
|
(d)
|
Pre-acquisition
William Hill US represents results of operations for William Hill
prior to the acquisition. Such figures are based on unaudited
internal financial statements and have not been reviewed by the
Company's auditors and, for the 2021 and 2020 periods, do not
conform to GAAP.
|
(e)
|
Discontinued
operations include Caesars Southern Indiana, Harrah's Louisiana
Downs and the Caesars UK group including Emerald Resorts &
Casino. 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.
|
(f)
|
Divestitures for
the three and six months ended June 30, 2021 include results
of operations for MontBleu and Tropicana Evansville and for the
three and six months ended June 30, 2020 include results of
operations for Isle of Capri Kansas City, Lady Luck Vicksburg,
Eldorado Resort Casino Shreveport, MontBleu, Tropicana Evansville
and discontinued operations of 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.
|
(g)
|
Excludes results
of operations from divestitures as detailed in (f) and includes
results of operations of William Hill US prior to the acquisition
and from discontinued operations for the periods presented. 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)
|
Pre-acquisition
CEC represents results of operations for Former Caesars prior to
the Merger. 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.
|
(i)
|
Excludes results
of operations from divestitures as detailed in (f) and includes
results of operations of William Hill US prior to the acquisition
and of Former Caesars prior to the Merger, 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.
|
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SOURCE Caesars Entertainment, Inc.