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Exhibit 99.1

 

LOGO

ELDORADO RESORTS REPORTS FOURTH QUARTER NET REVENUE OF $428.2 MILLION, OPERATING INCOME OF $30.0 MILLION AND ADJUSTED EBITDA OF $91.1 MILLION

Reno, Nev. (February 22, 2018) – Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado,” “ERI,” or “the Company”) today reported operating results for the fourth quarter and full year ended December 31, 2017.

 

                  Total Net Revenue                    
($ in thousands, except per share data)                 Three Months Ended                    
                  December 31,                    
     2017     2017 Pre-
Acquisition
     2017 Total     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 111,674     $ —        $ 111,674     $ 75,314     $ 29,440     $ 104,754       6.6

Midwest

     97,370       —          97,370       —         98,758       98,758       (1.4 )% 

South

     108,978       —          108,978       30,982       86,734       117,716       (7.4 )% 

East

     110,058       —          110,058       100,154       7,819       107,973       1.9

Corporate and Other

     140       —          140       —         93       93       50.5
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Revenue

   $ 428,220     $ —        $ 428,220     $ 206,450     $ 222,844     $ 429,294       (0.3 )% 
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                  Operating Income                    
($ in thousands, except per share data)                 Three Months Ended
December 31,
                   
     2017     2017 Pre-
Acquisition
     2017 Total     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 15,822     $ —        $ 15,822     $ 6,794     $ 5,413     $ 12,207       29.6

Midwest

     22,384       —          22,384       —         18,862       18,862       18.7

South

     (28,536     —          (28,536     4,632       10,272       14,904       (291.5 )% 

East

     13,634       —          13,634       9,843       (1,227     8,616       58.2

Corporate and Other

     6,683       —          6,683       (8,178     (10,578     (18,756     (135.6 )% 
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Income

   $ 29,987     $ —        $ 29,987     $ 13,091     $ 22,742     $ 35,833       (16.3 )% 
                                       
                  Adjusted EBITDA                    
($ in thousands, except per share data)                 Three Months Ended                    
                  December 31,                    
     2017     2017 Pre-
Acquisition
     2017 Total     2016     2016 Pre-
Acquisition(3)
    2016
Total(2)
    Change  

West

   $ 24,060     $ —        $ 24,060     $ 11,813     $ 7,792     $ 19,605       22.7

Midwest

     30,537       —          30,537       —         28,585       28,585       6.8

South

     23,319       —          23,319       6,619       14,619       21,238       9.8

East

     20,349       —          20,349       18,748       (523     18,225       11.7

Corporate and Other

     (7,159     —          (7,159     (3,605     (5,718     (9,323     (23.2 )% 
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA (4)

   $ 91,106     $ —        $ 91,106     $ 33,575     $ 44,755     $ 78,330       16.3

Net Income

   $ 89,693          $ 959        
  

 

 

        

 

 

       

Basic EPS

   $ 1.17          $ 0.02        
  

 

 

        

 

 

       

Diluted EPS

   $ 1.15          $ 0.02        
  

 

 

        

 

 

       


($ in thousands, except per share data)               

Total Net Revenue

Twelve Months Ended

December 31,

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

West

   $ 405,202     $ 43,414     $ 448,616     $ 321,922     $ 126,523     $ 448,445       0.0

Midwest

     268,385       142,237       410,622       —         412,201       412,201       (0.4 )% 

South

     336,709       131,100       467,809       131,496       372,458       503,954       (7.2 )% 

East

     462,702       11,717       474,419       439,478       35,293       474,771       (0.1 )% 

Corporate and Other

     506       226       732       —         148       148       394.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Revenue

   $ 1,473,504     $ 328,694     $ 1,802,198     $ 892,896     $ 946,623     $ 1,839,519       (2.0 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
($ in thousands, except per share data)               

Operating Income

Twelve Months Ended

December 31,

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

West

   $ 66,329     $ 9,525     $ 75,854     $ 41,620     $ 25,682     $ 67,302       12.7

Midwest

     62,051       34,819       96,870       —         84,265       84,265       15.0

South

     3,671       25,086       28,757       23,378       49,112       72,490       (60.3 )% 

East

     67,968       (1,072)       66,896       53,610       (4,687)       48,923       36.7

Corporate and Other

     (105,150     (8,811     (113,961     (29,490     (34,213     (63,703     78.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Income

   $ 94,869     $ 59,547     $ 154,416     $ 89,118     $ 120,159     $ 209,277       (26.2 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
($ in thousands, except per share data)               

Adjusted EBITDA

Twelve Months Ended
December 31,

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

West

   $ 93,825     $ 13,231     $ 107,056     $ 62,333     $ 34,621     $ 96,954       10.4

Midwest

     83,451       46,856       130,307       —         122,904       122,904       6.0

South

     70,269       30,998       101,267       31,198       73,556       104,754       (3.3 )% 

East

     98,868       (120     98,748       89,835       (1,122     88,713       11.3

Corporate and Other

     (24,173     (5,996     (30,169     (15,080     (23,502     (38,582     (21.8 )% 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA (4)

   $ 322,240     $  84,969     $ 407,209     $ 168,286     $ 206,457     $ 374,743       8.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

   $ 73,940         $ 24,802        
  

 

 

       

 

 

       

Basic EPS

   $ 1.10         $ 0.53        
  

 

 

       

 

 

       

Diluted EPS

   $ 1.09         $ 0.52        
  

 

 

       

 

 

       

 

(1) Figures are for Isle of Capri Casinos, Inc. (“lsle”) 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 lsle’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 lsle for the three and twelve months ended December 31, 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 fourth quarter results marked the conclusion of another active and productive year of growth for the Company in which we extended our success in expanding margins and growing financial results. Notably, the fourth quarter growth was broad based and reflects a continuation of the strong operating momentum we have generated since last May’s accretive acquisition of Isle of Capri,” said Gary Carano, Chairman and Chief Executive Officer of Eldorado. “Fourth quarter Adjusted EBITDA increased 16.3% to $91.1 million on essentially flat revenue reflecting a 300 basis point year-over-year improvement in our consolidated Adjusted EBITDA margin to 21.3%. Overall 14 of our 20 properties grew Adjusted EBITDA in the 2017 fourth quarter compared to the prior-year period, and for the full year 16 of our properties saw Adjusted EBITDA rise, which helped drive an 8.7% year-over-year increase in consolidated Adjusted EBITDA to $407.2 million despite a modest net revenue decline.

“We see a pathway toward meaningful additional margin expansion as we focus our operating strategies on practices that emphasize generating profitable revenue across the portfolio. Although we already surpassed our targeted $35 million of annual synergies from the Isle of Capri transaction, we are still in the early stages of rationalizing marketing and promotional spend across the enterprise and optimizing the acquired food and beverage operations. Isle of Capri Lake Charles is an example of one property that offers significant opportunity for improvement following the termination of the sale agreement for the property in the fourth quarter. We have identified significant cost reductions at the property based on our analysis of the operations of properties within our portfolio that have a similar revenue and competitive market profile. By deploying best practices across the portfolio, we also expect to generate further improvements in our legacy property operations.

“We continue to move forward with return-focused investments that improve our guests’ experiences and elevate our properties overall competitiveness in their markets. The comprehensive facility improvement program under way at our Reno Tri-Properties continues to drive higher visitation. To date, we have completed upgrades to nearly 1,000 hotel rooms and suites, updated food and beverage operations across the facilities with eight new or redesigned restaurants, cafes or bars now open, created new public spaces in all three properties and opened a new poker room and sports book. We believe that our spending in winter 2016 helped drive extremely strong results at the Reno Tri-Properties throughout the second half of the year. As a result of these strong returns, we have decided to accelerate additional investment in the Reno Tri-Properties in 2018, as we expect to spend $37.5 million of project capex in 2018 for further facility upgrades. We are similarly embarking on upgrades to the room product at our two Black Hawk properties beginning in late 2018 as we seek to capitalize on the strong economy of the Denver market.

“We entered 2018 with significant momentum and a comprehensive set of operating initiatives that will help us continue to grow our financial results. We believe that there are still many opportunities for Eldorado to build on our leading regional gaming platform which will help us further enhance shareholder value.”

Balance Sheet and Liquidity

At December 31, 2017, Eldorado had $134.6 million in cash and cash equivalents and $3.3 million in restricted cash. Outstanding indebtedness at December 31, 2017 totaled $2.2 billion, with no amounts outstanding on the Company’s revolving credit facility. Gross capital expenditures in the fourth quarter of 2017 and for the full year totaled $30.3 million and $83.5 million, respectively.

“We continue to improve our marketing and customer acquisition efficiencies and to lower costs across our entire property portfolio,” said Tom Reeg, President and Chief Financial Officer. “The 2017 fourth quarter results include a non-recurring, non-cash income tax benefit of $112.4 million resulting from the re-measurement of our deferred tax assets and liabilities as a result of the recently enacted Tax Cuts and Jobs Act. In addition, our annual free cash flow is expected to benefit from more than $40 million in


lower cash taxes over the next two years. The Tax Cuts and Jobs Act treatment of capital investment incentivizes us to bring high return growth projects online sooner and as a result, we expect full year capital expenditures of approximately $150 million, with approximately 50% allocated to project capex and 50% for maintenance capex.”

Summary of 2017 Fourth Quarter Region Results

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 December 31, 2017 increased approximately 6.6% to $111.7 million compared to $104.8 million in the prior-year period, while operating income rose to $15.8 million from $12.2 million in the year-ago quarter. Adjusted EBITDA increased 22.7% to $24.1 million reflecting an Adjusted EBITDA margin of 21.5% compared to Adjusted EBITDA of $19.6 million on an Adjusted EBITDA margin of 18.7% 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% for the second consecutive quarter.

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 December 31, 2017 decreased approximately 1.4% to $97.4 million compared to $98.8 million in the prior-year period, while operating income rose to $22.4 million from $18.9 million in the year-ago quarter. Adjusted EBITDA rose approximately 6.8% to $30.5 million as the Adjusted EBITDA margin for the segment rose 240 basis points to 31.4%. Adjusted EBITDA increased year over year at five of the six Midwest Region properties. Adjusted EBITDA for the Midwest Region in the prior-year period was $28.6 million reflecting an Adjusted EBITDA margin of 28.9%.

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

Net revenue for the South Region properties for the quarter ended December 31, 2017 declined approximately 7.4% to $109.0 million compared to $117.7 million in the prior-year period. Operating loss was $(28.5) million compared to operating income of $14.9 million in the year-ago quarter. The operating loss for the South Region in the fourth quarter of 2017 includes total impairment charges of $38.0 million, including impairment charges of $13.2 million for Isle of Capri Lake Charles; $24.5 million for Lady Luck Casino Vicksburg; and $0.3 million for Isle of Capri Casino Lula. Adjusted EBITDA increased 9.8% to $23.3 million as the Adjusted EBITDA margin for the segment rose 340 basis points to 21.4%. Adjusted EBITDA for the South Region in the prior-year period was $21.2 million reflecting an Adjusted EBITDA margin of 18.0%. The South Region’s results include contributions from Isle of Capri Lake Charles for both periods and reflect a nearly 75% year-over-year increase in Adjusted EBITDA for the property. Isle of Capri Lake Charles had previously been classified as discontinued operations and as assets held for sale. In November 2017, Eldorado terminated the sale agreement for the property as the proposed buyer did not obtain required gaming approvals prior to the termination date. Pursuant to the terms of the agreement, Eldorado retained the proposed buyer’s $20.0 million deposit, which is included in Corporate and Other operating income (loss).

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 December 31, 2017 increased approximately 1.9% to $110.1 million compared to $108.0 million in the prior-year period, while


operating income grew to $13.6 million from $8.6 million in the year-ago quarter. Adjusted EBITDA for the East Region rose 11.7% to $20.3 million compared to Adjusted EBITDA of $18.2 million in the prior-year period as the East Region’s Adjusted EBITDA margin improved 160 basis points to 18.5%. Eldorado Scioto Downs generated Adjusted EBITDA growth for the twelfth consecutive quarter and Mountaineer Casino, Racetrack & Resort grew Adjusted EBITDA for the third consecutive quarter following the implementation of 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 expense, income related to the termination of the Lake Charles sale, costs associated with the terminated Lake Charles sale, impairment charges, equity in income of unconsolidated affiliates, (gain) loss on the sale or disposal of property and equipment, 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 accounting principles generally accepted in the United States (“US 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.


Fourth 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 719/325-4879, conference ID 8151361 (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 twenty properties in ten states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia. In aggregate, Eldorado’s properties feature approximately 21,000 slot machines and VLTs and 600 table games, and over 7,000 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 INCOME

($ in thousands, except per share data)

(unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,  
     2017     2016     2017     2016  

REVENUES:

        

Casino

   $ 362,029     $ 160,872     $ 1,228,540     $ 693,013  

Pari-mutuel commissions

     4,189       1,496       14,134       8,600  

Food and beverage

     56,238       33,297       193,260       142,032  

Hotel

     29,857       20,469       119,095       94,312  

Other

     15,154       11,245       51,560       45,239  
  

 

 

   

 

 

   

 

 

   

 

 

 
     467,467       227,379       1,606,589       983,196  

Less-promotional allowances

     (39,247     (20,929     (133,085     (90,300
  

 

 

   

 

 

   

 

 

   

 

 

 

Net operating revenues

     428,220       206,450       1,473,504       892,896  
  

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES:

        

Casino

     187,219       90,417       638,362       390,325  

Pari-mutuel commissions

     3,717       2,026       13,509       9,787  

Food and beverage

     26,343       20,321       94,723       81,878  

Hotel

     8,872       7,682       34,282       30,746  

Other

     7,177       6,931       26,030       26,921  

Marketing and promotions

     24,980       9,937       82,525       40,600  

General and administrative

     72,714       32,043       241,095       130,172  

Corporate

     9,005       4,196       30,739       19,880  

Impairment charges

     38,016       —         38,016       —    

Depreciation and amortization

     36,255       15,852       105,891       63,449  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     414,298       189,405       1,305,172       793,758  

LOSS ON SALE OR DISPOSAL OF PROPERTY AND EQUIPMENT

     (269     (96     (319     (836

PROCEEDS FROM TERMINATED SALE

     20,000       —         20,000       —    

TRANSACTION EXPENSES

     (3,605     (3,858     (92,777     (9,184

EQUITY IN LOSS OF UNCONSOLIDATED AFFILIATE

     (61     —         (367     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     29,987       13,091       94,869       89,118  
  

 

 

   

 

 

   

 

 

   

 

 

 

OTHER EXPENSE:

        

Interest expense, net

     (30,390     (12,542     (99,769     (50,917

Loss on early retirement of debt, net

     (1,083     —         (38,430     (155
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense

     (31,473     (12,542     (138,199     (51,072
  

 

 

   

 

 

   

 

 

   

 

 

 

NET (LOSS) INCOME BEFORE INCOME TAXES

     (1,486     549       (43,330     38,046  

BENEFIT (PROVISION) FOR INCOME TAXES

     91,179       410       117,270       (13,244
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 89,693     $ 959     $ 73,940     $ 24,802  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income per share of Common Stock:

        

Basic

   $ 1.17     $ 0.02     $ 1.10     $ 0.53  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 1.15     $ 0.02     $ 1.09     $ 0.52  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Basic Shares Outstanding

     76,961,015       47,105,744       67,133,531       47,033,311  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Diluted Shares Outstanding

     77,998,742       47,849,554       68,102,814       47,701,562  
  

 

 

   

 

 

   

 

 

   

 

 

 


ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

 

     Three Months Ended December 31, 2017  
     Operating
Income
(Loss)
    Depreciation
and
Amortization
     Stock-Based
Compensation
     Transaction
Expenses
(5)
     Other
(6)
    Adjusted
EBITDA
 

West

   $ 15,822     $ 8,082      $ 63      $ —        $ 93     $ 24,060  

Midwest

     22,384       8,036        57        —          60       30,537  

South

     (28,536     12,659        37        —          39,159       23,319  

East

     13,634       6,632        5        —          78       20,349  

Corporate and Other

     6,683       846        1,707        3,605        (20,000     (7,159
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 29,987     $ 36,255      $ 1,869      $ 3,605      $ 19,390     $ 91,106  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
     Three Months Ended December 31, 2016  
     Operating
Income
(Loss)
    Depreciation
and
Amortization
     Stock-Based
Compensation
     Transaction
Expenses
(5)
     Other
(6)
    Adjusted
EBITDA
 

Excluding Pre-Acquisition:

               

West

   $ 6,794     $ 4,847      $ —        $ —        $ 172     $ 11,813  

Midwest

     —         —          —          —          —         —    

South

     4,632       1,978        —          —          9       6,619  

East

     9,843       8,897        —          —          8       18,748  

Corporate and Other

     (8,178     130        591        3,858        (6     (3,605
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Excluding Pre-Acquisition

   $ 13,091     $ 15,852      $ 591      $ 3,858      $ 183     $ 33,575  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Pre-Acquisition (3):

               

West

   $ 5,413     $ 2,373      $ 6      $ —        $ —       $ 7,792  

Midwest

     18,862       9,686        37        —          —         28,585  

South

     10,272       4,202        27        —          118       14,619  

East

     (1,227     704        —          —          —         (523

Corporate and Other

     (10,578     201        1,612        3,047        —         (5,718
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Pre-Acquisition

   $ 22,742     $ 17,166      $ 1,682      $ 3,047      $ 118     $ 44,755  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Including Pre-Acquisition:

               

West

   $ 12,207     $ 7,220      $ 6      $ —        $ 172     $ 19,605  

Midwest

     18,862       9,686        37        —          —         28,585  

South

     14,904       6,180        27        —          127       21,238  

East

     8,616       9,601        —          —          8       18,225  

Corporate and Other

     (18,756     331        2,203        6,905        (6     (9,323
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Including Pre-Acquisition (2)

   $ 35,833     $ 33,018      $ 2,273      $ 6,905      $ 301     $ 78,330  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 


     Twelve Months Ended December 31, 2017  
     Operating
Income
(Loss)
    Depreciation
and
Amortization
     Stock-Based
Compensation
     Transaction
Expenses
(5)
     Other (6)     Adjusted
EBITDA
 

Excluding Pre-Acquisition:

               

West

   $ 66,329     $ 26,950      $ 182      $ —        $ 364     $ 93,825  

Midwest

     62,051       20,997        210        —          193       83,451  

South

     3,671       25,307        147        —          41,144       70,269  

East

     67,968       30,517        14        —          369       98,868  

Corporate and Other

     (105,150     2,120        5,769        92,777        (19,689     (24,173
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Excluding Pre-Acquisition

   $ 94,869     $ 105,891      $ 6,322      $ 92,777      $ 22,381     $ 322,240  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Pre-Acquisition (1):

               

West

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

Midwest

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

South

     25,086       5,693        35        —          184       30,998  

East

     (1,072     952        —          —          —         (120

Corporate and Other

     (8,811     371        1,631        286        527       (5,996
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Pre-Acquisition

   $ 59,547     $ 22,662      $ 1,725      $ 286      $ 749     $ 84,969  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Including Pre-Acquisition:

               

West

   $ 75,854     $ 30,644      $ 190      $ —        $ 368     $ 107,056  

Midwest

     96,870       32,949        261        —          227       130,307  

South

     28,757       31,000        182        —          41,328       101,267  

East

     66,896       31,469        14        —          369       98,748  

Corporate and Other

     (113,961     2,491        7,400        93,063        (19,162     (30,169
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Including Pre-Acquisition (2)

   $ 154,416     $ 128,553      $ 8,047      $ 93,063      $ 23,130     $ 407,209  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     Twelve Months Ended December 31, 2016  
     Operating
Income
(Loss)
    Depreciation
and
Amortization
     Stock-Based
Compensation
     Transaction
Expenses
(5)
     Other
(4) (6)
    Adjusted
EBITDA
 

Excluding Pre-Acquisition:

               

West

   $ 41,620     $ 20,220      $ —        $ —        $ 493     $ 62,333  

Midwest

     —         —          —          —          —         —    

South

     23,378       7,861        —          —          (41     31,198  

East

     53,610       34,887        —          —          1,338       89,835  

Corporate and Other

     (29,490     481        3,341        9,182        1,406       (15,080
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Excluding Pre-Acquisition

   $ 89,118     $ 63,449      $ 3,341      $ 9,182      $ 3,196     $ 168,286  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Pre-Acquisition (3):

               

West

   $ 25,682     $ 8,901      $ 38      $ —        $ —       $ 34,621  

Midwest

     84,265       38,720        166        —          (247     122,904  

South

     49,112       23,793        118        —          533       73,556  

East

     (4,687     3,565        —          —          —         (1,122

Corporate and Other

     (34,213     1,319        4,670        3,852        870       (23,502
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Pre-Acquisition

   $ 120,159     $ 76,298      $ 4,992      $ 3,852      $ 1,156     $ 206,457  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Including Pre-Acquisition:

               

West

   $ 67,302     $ 29,121      $ 38      $ —        $ 493     $ 96,954  

Midwest

     84,265       38,720        166        —          (247     122,904  

South

     72,490       31,654        118        —          492       104,754  

East

     48,923       38,452        —          —          1,338       88,713  

Corporate and Other

     (63,703     1,800        8,011        13,034        2,276       (38,582
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Including Pre-Acquisition (2)

   $ 209,277     $ 139,747      $ 8,333      $ 13,034      $ 4,352     $ 374,743  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 


(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 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 twelve months ended December 31, 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 twelve months ended December 31, 2016.
(5) Transaction expenses for the three and twelve months ended December 31, 2017 represent costs related to the Isle Acquisition. Transaction expenses for the three and twelve months ended December 31, 2016 represent costs related to the Isle and Reno Acquisitions.
(6) Other is comprised of severance expense, income totaling $20.0 million related to the termination of the Lake Charles sale, costs totaling $2.8 million associated with the termination of the Lake Charles sale, $38.0 million in impairment charges, (gain) loss on sale or disposal of property and equipment, equity in income of unconsolidated affiliate and other regulatory gaming assessments, including the item listed in footnote (4) above.