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Exhibit 99.1

 

 

LOGO

 

ELDORADO RESORTS REPORTS THIRD QUARTER NET REVENUE OF $444.9 MILLION, OPERATING INCOME OF $78.9 MILLION AND ADJUSTED EBITDA OF $112.1 MILLION

Reno, Nev. (November 2, 2017) – Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado,” “ERI,” or “the Company”) today reported operating results for the third quarter ended September 30, 2017.

 

                  Total Net Revenue                    
($ in thousands, except per share data)                 Three Months Ended                    
                  September 30,                    
     2017     2017 Pre-
Acquisition
     2017 Total     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 132,775     $ —        $ 132,775     $ 89,676     $ 33,324     $ 123,000       7.9

Midwest

     103,510       —          103,510       —         106,294       106,294       (2.6 )% 

South

     81,696       —          81,696       33,984       58,381       92,365       (11.6 )% 

East

     126,720       —          126,720       117,905       9,750       127,655       (0.7 )% 

Corporate and Other

     173       —          173       —         25       25       592.0
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Revenue

   $ 444,874     $ —        $ 444,874     $ 241,565     $ 207,774     $ 449,339       (1.0 )% 
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                  Operating Income                    
($ in thousands, except per share data)                 Three Months Ended
September 30,
                   
     2017     2017 Pre-
Acquisition
     2017 Total     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 32,556     $ —        $ 32,556     $ 15,606     $ 7,160     $ 22,766       43.0

Midwest

     24,261       —          24,261       —         22,536       22,536       7.7

South

     11,293       —          11,293       6,703       7,378       14,081       (19.8 )% 

East

     21,140       —          21,140       15,102       (917     14,185       49.0

Corporate and Other

     (10,326     —          (10,326     (9,302     (8,115     (17,417     (40.7 )% 
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Income

   $ 78,924     $ —        $ 78,924     $ 28,109     $ 28,042     $ 56,151       40.6
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                  Adjusted EBITDA                    
($ in thousands, except per share data)                 Three Months Ended                    
                  September 30,                    
     2017     2017 Pre-
Acquisition
     2017 Total     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 40,379     $ —        $ 40,379     $ 20,611     $ 9,402     $ 30,013       34.5

Midwest

     32,447       —          32,447       —         31,683       31,683       2.4

South

     17,602       —          17,602       8,676       11,668       20,344       (13.5 )% 

East

     27,902       —          27,902       24,142       (223     23,919       16.7

Corporate and Other

     (6,267     —          (6,267     (3,709     (5,788     (9,497     (34.0 )% 
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA (4)

   $ 112,063     $ —        $ 112,063     $ 49,720     $ 46,742     $ 96,462       16.2
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

        $ 29,554         $ 9,682    
       

 

 

       

 

 

   

Basic EPS

        $ 0.38         $ 0.21    
       

 

 

       

 

 

   

Diluted EPS

        $ 0.38         $ 0.20    
       

 

 

       

 

 

   


($ in thousands, except per share data)               

Total Net Revenue

Nine Months Ended
September 30,

                   
     2017     2017 Pre-
Acquisition(1)
    2017 Total(2)     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 293,528     $ 43,414     $ 336,942     $ 246,608     $ 97,083     $ 343,691       (2.0 )% 

Midwest

     171,015       142,237       313,252       —         313,443       313,443       (0.1 )% 

South

     183,425       92,002       275,427       100,514       196,012       296,526       (7.1 )% 

East

     352,644       11,717       364,361       339,324       27,474       366,798       (0.7 )% 

Corporate and Other

     366       226       592       —         55       55       976.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Revenue

   $ 1,000,978     $ 289,596     $ 1,290,574     $ 686,446     $ 634,067     $ 1,320,513       (2.3 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
($ in thousands, except per share data)               

Operating Income

Nine Months Ended
September 30,

                   
     2017     2017 Pre-
Acquisition(1)
    2017 Total(2)     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 50,507     $ 9,525     $ 60,032     $ 34,825     $ 20,269     $ 55,094       9.0

Midwest

     39,669       34,819       74,488       —         65,403       65,403       13.9

South

     28,280       19,165       47,445       18,746       33,557       52,303       (9.3 )% 

East

     54,333       (1,072     53,261       43,767       (3,460     40,307       32.1

Corporate and Other

     (111,834     (8,811     (120,645     (21,312     (23,635     (44,947     168.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Income

   $ 60,955     $ 53,626     $ 114,581     $ 76,026     $ 92,134     $ 168,160       (31.9 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
($ in thousands, except per share data)               

Adjusted EBITDA

Nine Months Ended
September 30,

                   
     2017     2017 Pre-
Acquisition(1)
    2017 Total(2)     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 69,765     $ 13,231     $ 82,996     $ 50,519     $ 26,829     $ 77,348       7.3

Midwest

     52,916       46,856       99,772       —         94,319       94,319       5.8

South

     41,227       24,918       66,145       24,579       46,151       70,730       (6.5 )% 

East

     78,519       (120     78,399       71,087       (599     70,488       11.2

Corporate and Other

     (16,988     (5,996     (22,984     (11,476     (17,784     (29,260     (21.4 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA (4)

   $ 225,439     $ 78,889     $ 304,328     $ 134,709     $ 148,916     $ 283,625       7.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (Loss) Income

       $ (15,754       $ 23,842    
      

 

 

       

 

 

   

Basic EPS

       $ (0.25       $ 0.51    
      

 

 

       

 

 

   

Diluted EPS

       $ (0.25       $ 0.50    
      

 

 

       

 

 

   

 

(1) Figures are for Isle of Capri Casinos, Inc. (“Isle”) for the four months ended April 30, 2017, the day before ERI acquired Isle on May 1, 2017. ERI reports its financial results on a calendar fiscal year. Prior to the Company’s acquisition of Isle, Isle’s fiscal year typically ended on the last Sunday in April. Isle’s fiscal 2017 and 2016 were 52-week years, which commenced on April 25, 2016 and April 27, 2015, respectively. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to ERI’s fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.
(2) Total figures for 2016 and 2017 include combined results of operations for Isle and ERI for periods preceding the date that ERI acquired Isle. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.
(3) Figures are for Isle for the three and nine months ended September 30, 2016. Such figures were prepared by the Company to reflect Isles’ unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to ERI’s fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.


(4) Adjusted EBITDA is not a GAAP measurement and is presented solely as a supplemental disclosure because the Company believes it is a widely used measure of operating performance in the gaming industry. See “Reconciliation of GAAP Measures to Non-GAAP Measures” below for a definition of Adjusted EBITDA and a quantitative reconciliation of Adjusted EBITDA to operating income (loss), which the Company believes is the most comparable financial measure calculated in accordance with GAAP.

“Eldorado’s record third quarter results exhibit the potential that we envisioned when we announced the acquisition of Isle of Capri a little over a year ago. Third quarter Adjusted EBITDA rose 16.2% year over year to $112.1 million despite a 1% net revenue decline that was partially attributable to the impact of two separate hurricanes,” said Gary Carano, Chairman and Chief Executive Officer of Eldorado. “Our growth continues to be broad-based across the portfolio as Adjusted EBITDA improved at 12 of our 19 properties. As a result, our third quarter property Adjusted EBITDA margin increased 300 basis points year over year to 26.6% while our consolidated Adjusted EBITDA margin rose 370 basis points to 25.2%.

“Our implementation of best practice operating strategies across the portfolio continued to drive margin expansion as we continue to identify additional refinements to our marketing and promotional spend and streamline our food and beverage operations, while also reducing corporate expense, which declined over 30% compared to last year. We also continue to make significant progress on our synergy plan following our acquisition of Isle of Capri earlier this year as we achieved our target of $35 million of annual synergies within four months of closing the transaction.

“Eldorado has established a track record of success in growing operations through acquisitions by identifying and executing synergy opportunities, implementing our proven operating model focused on providing best-in-class guest service and market-leading amenities and investing in return-focused amenity upgrades, where appropriate, to grow property results. Work completed to date on our $50 million Reno Tri-Properties improvement program includes upgrades to approximately 600 rooms at Circus Circus and 153 rooms at Eldorado Reno, a new Starbucks café added at Eldorado Reno in the third quarter, a new poker room and Canter’s Deli at Silver Legacy and a range of amenity upgrades at Circus Circus including a variety of new food and beverage offerings. These facility enhancements have created a more integrated experience across the Reno Tri-Properties while offering unique guest experiences at each property, which is helping drive higher gaming revenue and increases in room rate and occupancy, all of which contributed to the more than 34% Adjusted EBITDA growth in our West region in the third quarter.

“We believe that we are well positioned for further growth as we benefit from scale that can mitigate property-specific challenges, our continued successful integration of the Isle of Capri properties, additional opportunities to realize synergies, and higher guest satisfaction and improved traffic at our properties following return-focused facility upgrades. We operate in a number of markets that are growing and we are applying operational discipline in our efforts to drive EBITDA even in low or no growth markets.”

Balance Sheet and Liquidity

At September 30, 2017, Eldorado had $134.9 million in cash and cash equivalents and $21.3 million in restricted cash. In September, the Company completed a $500 million add-on offering to its outstanding 6% senior notes due 2025, the proceeds of which were used to repay all of the outstanding borrowings under its revolving credit facility and to repay a portion of the outstanding borrowings under the Company’s term loan facility and related accrued interest. As a result, outstanding indebtedness at September 30, 2017 totaled $2.3 billion, with no amounts outstanding on the Company’s revolving credit facility. Capital expenditures in the third quarter and first nine months of 2017 totaled $23.4 million and $53.2 million, respectively. The Company expects 2017 full-year capital expenditures of approximately $80 million, with $27 million allocated to project cap-ex and the remaining $53 million for maintenance cap-ex.

“We continue to focus on extracting synergies following the May acquisition of Isle of Capri, and we achieved our target of $35 million in annual synergies in only four months,” said Tom Reeg, President and Chief Financial Officer. “Our expanded scale and success in expanding property-level margins is


resulting in significant EBITDA growth which, combined with lower interest expense and modest capital expenditures, is driving higher free cash flow, allowing us to continue to reduce leverage while providing us the financial flexibility and capacity to seek additional acquisition opportunities.”

On August 22, 2016, Isle entered into an agreement to sell Lake Charles for aggregate consideration of $134.5 million, subject to certain adjustments. The transaction remains subject to Louisiana Gaming Control Board approval and other customary closing conditions and, if obtained, the transaction is expected to be completed by December 31, 2017. The Company intends to allocate all of the net proceeds from the sale to debt reduction. The operations of Lake Charles have been classified as discontinued operations and as assets held for sale for all periods presented.

Summary of 2017 Third Quarter Region Results

Reflecting the completion on May 1 of the Company’s acquisition of Isle of Capri, Eldorado reports results in four regions. The reporting format is consistent with changes the Company has made in its management reporting structure.

West Region (Reno Tri-Properties, Isle Casino Hotel Black Hawk and Lady Luck Casino Black Hawk)

Net revenue for the West Region properties for the quarter ended September 30, 2017 increased approximately 7.9% to $132.8 million compared to $123.0 million in the prior-year period, while operating income rose to $32.6 million from $22.8 million in the year-ago quarter. Adjusted EBITDA increased 34.5% to $40.4 million reflecting an Adjusted EBITDA margin of 30.4% compared to Adjusted EBITDA of $30.0 million on an Adjusted EBITDA margin of 24.4% in the prior-year period. Adjusted EBITDA increased year over year at the Reno Tri-Properties and at both Isle Black Hawk and Lady Luck Black Hawk with the combined Adjusted EBITDA margin for the Black Hawk properties exceeding 30% in the third quarter of 2017.

Midwest Region (Isle Casino Waterloo, Isle Casino Bettendorf, Isle of Capri Casino Boonville, Isle Casino Cape Girardeau, Lady Luck Casino Caruthersville and Isle of Capri Casino Kansas City)

Net revenue for the Midwest Region properties for the quarter ended September 30, 2017 decreased approximately 2.6% to $103.5 million compared to $106.3 million in the prior-year period, while operating income rose to $24.3 million from $22.5 million in the year-ago quarter. Adjusted EBITDA rose approximately 2.4% to $32.4 million as the Adjusted EBITDA margin for the segment rose 150 basis points to 31.3%. Adjusted EBITDA increased year over year at four of the six Midwest Region properties and was essentially flat at one property. Adjusted EBITDA for the Midwest Region in the prior-year period was $31.7 million reflecting an Adjusted EBITDA margin of 29.8%.

South Region (Isle Casino Racing Pompano Park, Eldorado Shreveport, Isle of Capri Casino Lula and Lady Luck Casino Vicksburg)

Net revenue for the South Region properties for the quarter ended September 30, 2017 declined approximately 11.6% to $81.7 million compared to $92.4 million in the prior-year period, inclusive of an impact of approximately $2.1 million related to Hurricane Irma. Operating income of $11.3 million compared to $14.1 million in the year-ago quarter and Adjusted EBITDA declined 13.5% to $17.6 million compared to Adjusted EBITDA of $20.3 million in the prior-year period. Hurricane Irma impacted the South region properties’ Adjusted EBITDA by approximately $1.5 million and historically low table hold and Hurricane Harvey impacted Adjusted EBITDA at Eldorado Shreveport. As a result, Adjusted EBITDA margin for the region declined 50 basis points to 21.5%.

East Region (Presque Isle Downs and Casino, Lady Luck Casino Nemacolin, Eldorado Scioto Downs Racino and Mountaineer Casino, Racetrack and Resort)


Net revenue for the East Region properties for the quarter ended September 30, 2017 declined approximately 0.7% to $126.7 million compared to $127.7 million in the prior-year period, while operating income grew to $21.1 million from $14.2 million in the year-ago quarter. Despite the modest revenue decline, Adjusted EBITDA for the East Region rose 16.7% to $27.9 million compared to Adjusted EBITDA of $23.9 million in the prior-year period as the East region’s Adjusted EBITDA margin improved 330 basis points to 22.0%. All four of the East region’s properties delivered double digit year-over-year Adjusted EBITDA growth, including the eleventh consecutive quarter of Adjusted EBITDA growth for Eldorado Scioto Downs and the third consecutive quarter of double digit growth at Mountaineer Casino, Racetrack & Resort which continues to benefit from the Company’s initiatives to improve amenities and right-size operating expenses to match current visitation and revenue volumes.

Reconciliation of GAAP Measures to Non-GAAP Measures

Adjusted EBITDA (defined below), a non GAAP financial measure, has been presented as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry and we believe that this non GAAP supplemental information will be helpful in understanding the Company’s ongoing operating results. Adjusted EBITDA represents operating income (loss) before depreciation and amortization, stock based compensation, transaction expenses, S-1 expenses, severance expenses and other, which includes equity in income (loss) of unconsolidated affiliates, (gain) loss on the sale or disposal of property, and other regulatory gaming assessments, including the impact of the change in regulatory reporting requirements, to the extent that such items existed in the periods presented. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with U.S. GAAP, is unaudited and should not be considered an alternative to, or more meaningful than, net income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in Adjusted EBITDA include capital expenditures, interest payments, income taxes, debt principal repayments and certain regulatory gaming assessments, which can be significant. As a result, Adjusted EBITDA should not be considered as a measure of our liquidity. Other companies that provide EBITDA information may calculate EBITDA differently than we do. The definition of Adjusted EBITDA may not be the same as the definitions used in any of our debt agreements.

Third Quarter Conference Call

Eldorado will host a conference call at 4:30 p.m. ET today. Senior management will discuss the financial results and host a question and answer session. The dial in number for the audio conference call is 719/325-2408, conference ID 7971486 (domestic and international callers). Participants can also access a live webcast of the call through the “Events & Presentations” section of Eldorado’s website at http://www.eldoradoresorts.com/ and a replay of the webcast will be archived on the site for 90 days following the live event.

About Eldorado Resorts, Inc.

Eldorado Resorts is a leading casino entertainment company that owns and operates nineteen properties in ten states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia. In aggregate, Eldorado’s properties feature approximately 20,000 slot machines and VLTs, more than 550 table games and over 6,500 hotel rooms. For more information, please visit www.eldoradoresorts.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information. When used in this press release, the terms or phrases such as “anticipates,” “believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,” “estimates,” “could,” “should,” “would,”


“will likely continue,” and variations of such words or similar expressions are intended to identify forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release. Such risks, uncertainties and other important factors include, but are not limited to: Eldorado’s ability to promptly and effectively integrate the business of Eldorado and Isle and realize synergies resulting from the combined operations; our substantial indebtedness and the impact of such obligations on our operations and liquidity; competition; sensitivity of our operations to reductions in discretionary consumer spending and changes in general economic and market conditions; governmental regulations and increases in gaming taxes and fees in jurisdictions in which we operate; and other risks and uncertainties described in our reports on Form 10-K, Form 10-Q and Form 8-K.

In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. These forward-looking statements speak only as of the date of this press release, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.

Contact:

 

Thomas Reeg    Joseph N. Jaffoni, Richard Land
President and Chief Financial Officer    JCIR
Eldorado Resorts, Inc.    212/835-8500
775/328-0112    eri@jcir.com
investorrelations@eldoradoresorts.com   

- tables follow -


ELDORADO RESORTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share data)

(unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2017     2016     2017     2016  

REVENUES:

        

Casino

   $ 367,930     $ 184,604     $ 825,833     $ 532,141  

Pari-mutuel commissions

     5,162       3,527       9,945       7,104  

Food and beverage

     56,356       38,029       132,307       108,735  

Hotel

     38,536       28,001       85,473       73,843  

Other

     15,052       12,095       35,196       33,994  
  

 

 

   

 

 

   

 

 

   

 

 

 
     483,036       266,256       1,088,754       755,817  

Less-promotional allowances

     (38,162     (24,691     (87,776     (69,371
  

 

 

   

 

 

   

 

 

   

 

 

 

Net operating revenues

     444,874       241,565       1,000,978       686,446  
  

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES:

        

Casino

     184,790       103,272       428,543       299,908  

Pari-mutuel commissions

     4,601       3,506       9,793       7,761  

Food and beverage

     26,457       21,046       66,711       61,557  

Hotel

     10,138       7,956       24,767       23,064  

Other

     7,792       7,298       18,689       19,990  

Marketing and promotions

     24,634       11,323       54,845       30,664  

General and administrative

     68,585       34,094       155,778       98,129  

Corporate

     7,718       4,426       21,734       15,684  

Depreciation and amortization

     29,122       15,810       69,635       47,597  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     363,837       208,731       850,495       604,354  

GAIN (LOSS) ON SALE OF ASSET OR DISPOSAL OF PROPERTY

     4       25       (51     (740

ACQUISITION CHARGES

     (2,094     (4,750     (89,172     (5,326

EQUITY IN LOSS OF UNCONSOLIDATED AFFILIATE

     (23     —         (305     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     78,924       28,109       60,955       76,026  
  

 

 

   

 

 

   

 

 

   

 

 

 

OTHER EXPENSE:

        

Interest expense, net

     (29,183     (12,589     (69,380     (38,375

Loss on early retirement of debt, net

     (10,030     —         (37,347     (155
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense

     (39,213     (12,589     (106,727     (38,530
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     39,711       15,520       (45,772     37,496  

(PROVISION) BENEFIT FOR INCOME TAXES

     (11,595     (5,838     27,625       (13,654
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

     28,116       9,682       (18,147     23,842  

INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES

     1,438       —         2,393       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME (LOSS)

   $ 29,554     $ 9,682     $ (15,754   $ 23,842  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) per common share attributable to common stockholders - basic:

        

Income (loss) from continuing operations

   $ 0.36     $ 0.21     $ (0.28   $ 0.51  

Income from discontinued operations net of income taxes

     0.02       —         0.03       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common stockholders

   $ 0.38     $ 0.21     $ (0.25   $ 0.51  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) per common share attributable to common stockholders - diluted:

        

Income (loss) from continuing operations

   $ 0.36     $ 0.20     $ (0.28   $ 0.50  

Income from discontinued operations, net of income taxes

     0.02       —         0.03       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common stockholders

   $ 0.38     $ 0.20     $ (0.25   $ 0.50  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Basic Shares Outstanding

     76,902,070       47,193,120       63,821,705       47,106,706  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Diluted Shares Outstanding

     77,959,689       47,834,644       64,768,174       47,737,592  
  

 

 

   

 

 

   

 

 

   

 

 

 


ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

 

     Three Months Ended September 30, 2017  
     Operating
Income
(Loss)
    Depreciation
and
Amortization
     Stock-Based
Compensation
     Transaction
Expenses
     Severance
Expense
     Other (6)     Adjusted
EBITDA
 

West

   $ 32,556     $ 7,654      $ 67      $ —        $ 59      $ 43     $ 40,379  

Midwest

     24,261       7,995        67        —          133        (9     32,447  

South

     11,293       6,055        29        —          220        5       17,602  

East

     21,140       6,732        5        —          64        (39     27,902  

Corporate

     (10,326     686        1,207        2,094        —          72       (6,267
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 78,924     $ 29,122      $ 1,375      $ 2,094      $ 476      $ 72     $ 112,063  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
     Three Months Ended September 30, 2016  
     Operating
Income
(Loss)
    Depreciation
and
Amortization
     Stock-Based
Compensation
     Transaction
Expenses
     Severance
Expense
     Other (6)     Adjusted
EBITDA
 

Excluding Pre-Acquisition:

                  

West

   $ 15,606     $ 4,864      $ —        $ —        $ 153      $ (12   $ 20,611  

Midwest

     —         —          —          —          —          —         —    

South

     6,703       1,973        —          —          —          —         8,676  

East

     15,102       8,847        —          —          263        (70     24,142  

Corporate

     (9,302     126        717        4,750        —          —         (3,709
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Excluding Pre-Acquisition

   $ 28,109     $ 15,810      $ 717      $ 4,750      $ 416      $ (82   $ 49,720  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Pre-Acquisition (3):

                  

West

   $ 7,160     $ 2,236      $ 6      $ —        $ —        $ —       $ 9,402  

Midwest

     22,536       10,058        41        —          —          (952     31,683  

South

     7,378       4,269        21        —          —          —         11,668  

East

     (917     694        —          —          —          —         (223

Corporate

     (8,115     322        1,200        805        —          —         (5,788
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Pre-Acquisition

   $ 28,042     $ 17,579      $ 1,268      $ 805      $ —        $ (952   $ 46,742  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Including Pre-Acquisition:

                  

West

   $ 22,766     $ 7,100      $ 6      $ —        $ 153      $ (12   $ 30,013  

Midwest

     22,536       10,058        41        —          —          (952     31,683  

South

     14,081       6,242        21        —          —          —         20,344  

East

     14,185       9,541        —          —          263        (70     23,919  

Corporate

     (17,417     448        1,917        5,555        —          —         (9,497
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Including Pre-Acquisition (2)

   $ 56,151     $ 33,389      $ 1,985      $ 5,555      $ 416      $ (1,034   $ 96,462  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 


     Nine Months Ended September 30, 2017  
     Operating
Income
(Loss)
    Depreciation
and
Amortization
     Stock-Based
Compensation
     Transaction
Expenses
     Severance
Expense
     Other (6)     Adjusted
EBITDA
 

Excluding Pre-Acquisition:

                  

West

   $ 50,507     $ 18,868      $ 119      $ —        $ 255      $ 16     $ 69,765  

Midwest

     39,669       12,961        153        —          135        (2     52,916  

South

     28,280       12,649        70        —          223        5       41,227  

East

     54,333       23,885        9        —          86        206       78,519  

Corporate

     (111,834     1,272        4,063        89,172        289        50       (16,988
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Excluding Pre-Acquisition

   $ 60,955     $ 69,635      $ 4,414      $ 89,172      $ 988      $ 275     $ 225,439  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Pre-Acquisition (1):

                  

West

   $ 9,525     $ 3,694      $ 8      $ —        $ —        $ 4     $ 13,231  

Midwest

     34,819       11,952        51        —          5        29       46,856  

South

     19,165       5,694        26        —          —          33       24,918  

East

     (1,072     952        —          —          —          —         (120

Corporate

     (8,811     371        1,631        286        549        (22     (5,996
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Pre-Acquisition

   $ 53,626     $ 22,663      $ 1,716      $ 286      $ 554      $ 44     $ 78,889  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Including Pre-Acquisition:

                  

West

   $ 60,032     $ 22,562      $ 127      $ —        $ 255      $ 20     $ 82,996  

Midwest

     74,488       24,913        204        —          140        27       99,772  

South

     47,445       18,343        96        —          223        38       66,145  

East

     53,261       24,837        9        —          86        206       78,399  

Corporate

     (120,645     1,643        5,694        89,458        838        28       (22,984
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Including Pre-Acquisition (2)

   $ 114,581     $ 92,298      $ 6,130      $ 89,458      $ 1,542      $ 319     $ 304,328  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     Nine Months Ended September 30, 2016  
     Operating
Income
(Loss)
    Depreciation
and
Amortization
     Stock-Based
Compensation
     Transaction
Expenses
(5)
     Severance
Expense
     Other
(4)(6)
    Adjusted
EBITDA
 

Excluding Pre-Acquisition:

                  

West

   $ 34,825     $ 15,373      $ —        $ —        $ 153      $ 168     $ 50,519  

Midwest

     —         —          —          —          —          —         —    

South

     18,746       5,883        —          —          —          (50     24,579  

East (4)

     43,767       25,990        —          —          264        1,066       71,087  

Corporate

     (21,312     351        2,749        5,324        1,461        (49     (11,476
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Excluding Pre-Acquisition

   $ 76,026     $ 47,597      $ 2,749      $ 5,324      $ 1,878      $ 1,135     $ 134,709  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Pre-Acquisition (3):

                  

West

   $ 20,269     $ 6,528      $ 32      $ —        $ —        $ —       $ 26,829  

Midwest

     65,403       29,034        129        —          —          (247     94,319  

South

     33,557       12,525        69        —          —          —         46,151  

East

     (3,460     2,861        —          —          —          —         (599

Corporate

     (23,635     1,118        3,058        805        870        —         (17,784
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Pre-Acquisition

   $ 92,134     $ 52,066      $ 3,288      $ 805      $ 870      $ (247   $ 148,916  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Including Pre-Acquisition:

                  

West

   $ 55,094     $ 21,901      $ 32      $ —        $ 153      $ 168     $ 77,348  

Midwest

     65,403       29,034        129        —          —          (247     94,319  

South

     52,303       18,408        69        —          —          (50     70,730  

East (4)

     40,307       28,851        —          —          264        1,066       70,488  

Corporate

     (44,947     1,469        5,807        6,129        2,331        (49     (29,260
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Including Pre-Acquisition (2)

   $ 168,160     $ 99,663      $ 6,037      $ 6,129      $ 2,748      $ 888     $ 283,625  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 


(1) Figures for Isle are the four months ended April 30, 2017, the day before the Company acquired Isle on May 1, 2017. The Company reports its financial results on a calendar fiscal year. Prior to the Company’s acquisition of Isle, Isle’s fiscal year typically ended on the last Sunday in April. Isle’s fiscal 2017 and 2016 were 52-week years, which commenced on April 25, 2016 and April 27, 2015, respectively. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues and Adjusted EBITDA for periods corresponding to the Company’s fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.
(2) Total figures for 2016 and 2017 include combined results of operations for Isle and the Company for periods preceding the date that the Company acquired Isle. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for proforma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.
(3) Figures are for Isle for the three and nine months ended September 30, 2016. Such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to the Company’s fiscal quarterly calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.
(4) Effective January 1, 2016, the Ohio Lottery Commission enacted a regulatory change which resulted in the establishment of a $1.0 million progressive slot liability and a corresponding decrease in net slot win during the first quarter of 2016. The changes are non-cash and related primarily to prior years. The net non-cash impact to Adjusted EBITDA was $0.6 million for the nine months ended September 30, 2016.
(5) Transaction expenses for the three and nine months ended September 30, 2017 represent acquisition costs related to the Isle Acquisition. Transaction expenses for the three and nine months ended September 30, 2016 represent acquisition costs related to the Reno Acquisition and includes a credit of $2.0 thousand related to S-1 offering costs.
(6) Other is comprised of (gain) loss on the sale or disposal of property, equity in loss of unconsolidated affiliate and other regulatory gaming assessments, including the item listed in footnote (4) above.