Caesars Sees Positives in Vegas Going Forward

RENO, NV—In its first earnings call since the merger between Eldorado Resorts and Caesars Entertainment Corporation, Caesars Entertainment Inc. reported that it sees positives coming from the Las Vegas market.

“As you look at Vegas going forward, I think you should consider the following: One, the numbers relative to the virus have been gradually improving from spike a few weeks ago,” said Tom Reeg, CEO, Caesars Entertainment, Inc. “Unless you presume that that’s going to reverse and we’re going to go in the wrong direction, we and all of our peers in Las Vegas should be doing as usual as we’re going to do right now… We are significantly EBITDA positive in Las Vegas. Every hotel that’s open is EBITDA positive. And we feel we’re going to build from there.”

Second Quarter 2020 and Recent Highlights:

  • Net revenue for legacy Eldorado Resorts properties of $126.5 million, a decrease of 80.1% on a GAAP basis and 78.2% on a same-store basis versus the comparable prior-year period
  • Net loss of $100.0 million compared to net income of $18.9 million for the comparable prior-year period
  • Same-store Adjusted EBITDA for legacy Eldorado Resorts of negative $10.4 million versus positive $164.8 million for the comparable prior-year period
  • Eldorado Resorts and Caesars Entertainment Corporation completed their merger on July 20, 2020, creating the largest casino and entertainment company in the U.S.
  • New Caesars Entertainment Inc. pro forma liquidity positions the company well to weather any short-term disruptions due to COVID-19
  • 51 properties of new Caesars Entertainment Inc. in the U.S. have resumed operations since mid-May 2020

As of June 30, 2020, legacy Eldorado Resorts had $2.7 billion of debt outstanding. Total cash and cash equivalents were $950.5 million, excluding restricted cash.

“We have a strong liquidity position, which will allow us to weather short-term weakness due to COVID-19,” said Bret Yunker, CFO. “For new Caesars Entertainment Inc. we successfully executed an $8 billion debt raise on June 19, 2020, which further enhances our pro forma liquidity.”