Caesars Entertainment, Inc. (NASDAQ: CZR) (“Caesars,” “CZR,”
“CEI” or “the Company”) today reported operating results for the
second quarter ended June 30, 2024.
Second Quarter 2024 and Recent Highlights:
- GAAP net revenues of $2.8 billion versus $2.9 billion for the
comparable prior-year period.
- GAAP net loss of $122 million compared to net income of $920
million for the comparable prior-year period, with the decrease
primarily driven by a release of $940 million of valuation
allowance against deferred tax assets associated with our REIT
leases in the prior year.
- Same-store Adjusted EBITDA of $1.0 billion versus $1.0 billion
for the comparable prior-year period.
- Caesars Digital Adjusted EBITDA of $40 million versus $11
million for the comparable prior-year period.
Tom Reeg, Chief Executive Officer of Caesars Entertainment,
Inc., commented, “On a consolidated basis, the Company generated $1
billion of Adjusted EBITDA. Our operating results reflect year over
year growth in Adjusted EBITDA in our Las Vegas segment driven by
record same store revenues, hotel occupancy and Average Daily Rate
(ADR). Our Caesars Digital segment posted a new second-quarter
Adjusted EBITDA record, driven by strong revenue growth and solid
flow through. Regional segment results reflect competition in new
markets partially offset by our temporary facility in Danville,
Virginia and our property in Columbus, Nebraska. We remain
optimistic for the balance of 2024 driven by strong operating
trends in our Las Vegas and Caesars Digital segments and the
expected openings of the permanent facility in Danville coupled
with our $430 million capital investment in our newly rebranded
Caesars New Orleans property.”
Second Quarter 2024 Financial Results Summary and Segment
Information
After adjusting for the effects of our completed divestiture,
the following tables present adjustments to net revenues, net
income (loss) and Adjusted EBITDA as reported, in order to reflect
a same-store basis:
Net Revenues
Three Months Ended June
30,
(In
millions)
2024
2023
2023 Adj.(a)
Adj. 2023 Total
% Change
Las Vegas
$
1,101
$
1,128
$
(47
)
$
1,081
1.9
%
Regional
1,385
1,461
—
1,461
(5.2
)%
Caesars Digital
276
216
—
216
27.8
%
Managed and Branded
70
72
—
72
(2.8
)%
Corporate and Other
(2
)
2
—
2
*
Caesars
$
2,830
$
2,879
$
(47
)
$
2,832
(0.1
)%
Net Revenues
Six Months Ended June
30,
(In
millions)
2024
2023
2023 Adj.(a)
Adj. 2023 Total
% Change
Las Vegas
$
2,129
$
2,259
$
(101
)
$
2,158
(1.3
)%
Regional
2,750
2,850
—
2,850
(3.5
)%
Caesars Digital
558
454
—
454
22.9
%
Managed and Branded
138
141
—
141
(2.1
)%
Corporate and Other
(3
)
5
—
5
*
Caesars
$
5,572
$
5,709
$
(101
)
$
5,608
(0.6
)%
Net Income (Loss)
Three Months Ended June
30,
(In
millions)
2024
2023
2023 Adj.(a)
Adj. 2023 Total
% Change
Las Vegas
$
272
$
261
$
(5
)
$
256
6.3
%
Regional
(51
)
124
—
124
*
Caesars Digital
4
(22
)
—
(22
)
*
Managed and Branded
17
19
—
19
(10.5
)%
Corporate and Other
(364
)
538
—
538
*
Caesars
$
(122
)
$
920
$
(5
)
$
915
*
Net Income (Loss)
Six Months Ended June
30,
(In
millions)
2024
2023
2023 Adj.(a)
Adj. 2023 Total
% Change
Las Vegas
$
470
$
554
$
(15
)
$
539
(12.8
)%
Regional
(10
)
199
—
199
*
Caesars Digital
(30
)
(54
)
—
(54
)
44.4
%
Managed and Branded
35
38
—
38
(7.9
)%
Corporate and Other
(745
)
47
—
47
*
Caesars
$
(280
)
$
784
$
(15
)
$
769
*
Adjusted EBITDA (b)
Three Months Ended June
30,
(In
millions)
2024
2023
2023 Adj.(a)
Adj. 2023 Total
% Change
Las Vegas
$
514
$
512
$
(4
)
$
508
1.2
%
Regional
469
508
—
508
(7.7
)%
Caesars Digital
40
11
—
11
*
Managed and Branded
17
19
—
19
(10.5
)%
Corporate and Other
(40
)
(43
)
—
(43
)
7.0
%
Caesars
$
1,000
$
1,007
$
(4
)
$
1,003
(0.3
)%
Adjusted EBITDA (b)
Six Months Ended June
30,
(In
millions)
2024
2023
2023 Adj.(a)
Adj. 2023 Total
% Change
Las Vegas
$
954
$
1,045
$
(15
)
$
1,030
(7.4
)%
Regional
902
956
—
956
(5.6
)%
Caesars Digital
45
7
—
7
*
Managed and Branded
35
38
—
38
(7.9
)%
Corporate and Other
(83
)
(81
)
—
(81
)
(2.5
)%
Caesars
$
1,853
$
1,965
$
(15
)
$
1,950
(5.0
)%
____________________
*
Not meaningful
(a)
Adjustment for pre-disposition results of
operations reflecting the subtraction of results of operations for
Rio All-Suite & Casino prior to divestiture at the end of the
third quarter of 2023. Such figures are based on unaudited internal
financial statements and have not been reviewed by the Company’s
auditors for the periods presented. The additional financial
information is included to enable the comparison of current results
with results of prior periods.
(b)
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, 2024, Caesars had $12.4 billion in aggregate
principal amount of debt outstanding. Total cash and cash
equivalents were $830 million, excluding restricted cash of $129
million.
(In
millions)
June 30, 2024
December 31, 2023
Cash and cash equivalents
$
830
$
1,005
Bank debt and loans
$
6,075
$
3,193
Notes
6,311
9,199
Other long-term debt
44
47
Total outstanding indebtedness
$
12,430
$
12,439
Net debt
$
11,600
$
11,434
As of June 30, 2024, our cash on hand and borrowing capacity was
as follows:
(In
millions)
June 30, 2024
Cash and cash equivalents
$
830
Revolver capacity (a)
2,235
Revolver capacity committed to letters of
credit
(68
)
Available revolver capacity committed as
regulatory requirement
(46
)
Total (b)
$
2,951
___________________
(a)
Revolver capacity includes $2.25 billion
under the CEI Revolving Credit Facility, maturing in January 2028
(subject to a springing maturity in the event certain other
long-term debt of Caesars is not extended or repaid), and $25
million under the Caesars Virginia Revolving Credit Facility,
maturing on April 26, 2029, less $40 million reserved for specific
purposes.
(b)
Excludes approximately $280 million of
additional borrowing available under the Caesars Virginia Delayed
Draw Term Loan.
“Our debt reduction plan continued in the second quarter, with
Term Loan B repayments of over $100 million. We continue to
forecast 2024 full year capital expenditures of $800 million,
excluding our Danville project which is funded within the joint
venture,” 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 and interest expense, net of interest
capitalized, (benefit) provision for income taxes, depreciation and
amortization, stock-based compensation expense, (gain) loss on
extinguishment of debt, impairment charges, other (income) loss,
net income (loss) attributable to noncontrolling interests,
transaction costs associated with our acquisitions, developments
and divestitures, and non-cash changes in equity method
investments. 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 accounting principles
generally accepted in the United States (“GAAP”). Adjusted EBITDA
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 payments under our
leases with affiliates of GLPI and VICI Properties, Inc., 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 its results
on July 30, 2024 at 2:30 p.m. Pacific Time, 5:30 p.m. Eastern Time.
Participants may register for the call approximately 15 minutes
before the call start time by visiting the following website at
https://register.vevent.com/register/BI373390002b464f40a43cc986aa34eb52.
Once registered, participants will receive an email with the
dial-in number and unique PIN number to access the live event. The
call will also be accessible on the Investor Relations section of
Caesars’ website at https://investor.caesars.com.
About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. (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. To review our latest CSR report, please
visit www.caesars.com/corporate-social-responsibility/csr-reports.
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, but are not
limited to: (a) the impact on our business, financial results and
liquidity of economic trends, inflation, public health emergencies,
terrorist attacks and other acts of war or hostility, work
stoppages and other labor problems, or other economic and market
conditions, including reductions in discretionary consumer spending
as a result of downturns in the economy and other factors outside
our control; (b) the impact of future cybersecurity breaches on our
business, financial conditions and results of operations; (c) our
ability to successfully operate our digital betting and iGaming
platform and expand its user base; (d) risks associated with our
leverage and our ability to reduce our leverage; (e) the effects of
competition, including new competition in certain of our markets,
on our business and results of operations; and (f) 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 Report
on Form 10-K and Quarterly Reports 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)
2024
2023
2024
2023
NET REVENUES:
Casino
$
1,557
$
1,584
$
3,092
$
3,169
Food and beverage
435
435
857
862
Hotel
514
525
1,007
1,028
Other
324
335
616
650
Net revenues
2,830
2,879
5,572
5,709
OPERATING EXPENSES:
Casino
817
817
1,669
1,645
Food and beverage
266
258
529
509
Hotel
139
143
276
280
Other
100
111
194
218
General and administrative
465
499
965
1,008
Corporate
80
86
158
165
Impairment charges
118
—
118
—
Depreciation and amortization
326
323
653
623
Transaction and other costs, net
13
33
19
49
Total operating expenses
2,324
2,270
4,581
4,497
Operating income
506
609
991
1,212
OTHER EXPENSE:
Interest expense, net
(594
)
(586
)
(1,184
)
(1,180
)
Loss on extinguishment of debt
(3
)
—
(51
)
(197
)
Other income (loss)
(1
)
3
25
6
Total other expense
(598
)
(583
)
(1,210
)
(1,371
)
Income (loss) from continuing operations
before income taxes
(92
)
26
(219
)
(159
)
Benefit (provision) for income taxes
(10
)
902
(25
)
951
Income (loss) from continuing operations,
net of income taxes
(102
)
928
(244
)
792
Net income (loss)
(102
)
928
(244
)
792
Net income attributable to noncontrolling
interests
(20
)
(8
)
(36
)
(8
)
Net income (loss) attributable to
Caesars
$
(122
)
$
920
$
(280
)
$
784
Net income (loss) per share - basic and
diluted:
Basic income (loss) per share
$
(0.56
)
$
4.27
$
(1.29
)
$
3.65
Diluted income (loss) per share
$
(0.56
)
$
4.26
$
(1.29
)
$
3.63
Weighted average basic shares
outstanding
216
215
216
215
Weighted average diluted shares
outstanding
216
216
216
216
CAESARS ENTERTAINMENT,
INC.
RECONCILIATION OF NET INCOME
(LOSS) ATTRIBUTABLE TO CAESARS TO ADJUSTED EBITDA
(UNAUDITED)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In
millions)
2024
2023
2024
2023
Net income (loss) attributable to
Caesars
$
(122
)
$
920
$
(280
)
$
784
Net income attributable to noncontrolling
interests
20
8
36
8
(Benefit) provision for income taxes
(a)
10
(902
)
25
(951
)
Other (income) loss (b)
1
(3
)
(25
)
(6
)
Loss on extinguishment of debt
3
—
51
197
Interest expense, net
594
586
1,184
1,180
Impairment charges (c)
118
—
118
—
Depreciation and amortization
326
323
653
623
Transaction costs and other, net (d)
26
46
42
74
Stock-based compensation expense
24
29
49
56
Adjusted EBITDA
$
1,000
$
1,007
$
1,853
$
1,965
Pre-disposition Adjusted EBITDA (e)
—
(4
)
—
(15
)
Same-Store Adjusted EBITDA
$
1,000
$
1,003
$
1,853
$
1,950
____________________
(a)
Benefit for income taxes during the three
and six months ended June 30, 2023 includes the release of $940
million of valuation allowance against deferred tax assets.
(b)
Other (income) loss for the six months
ended June 30, 2024 primarily represents a change in estimate of
our disputed claims liability.
(c)
Impairment charges for the three and six
months ended June 30, 2024 includes impairment within our Regional
segment as a result of a decrease in projected future cash flows at
certain properties primarily due to localized competition.
(d)
Transaction costs and other, net primarily
includes costs related to non-cash losses on the write down and
disposal of assets, professional services for transaction and
integration costs, various contract exit or termination costs,
pre-opening costs in connection with our temporary facility
openings, and non-cash changes in equity method investments.
(e)
Adjustment for pre-disposition results of
operations reflecting the subtraction of results of operations for
Rio All-Suite Hotel & Casino prior to divestiture at the end of
the third quarter of 2023. Such figures are based on unaudited
internal financial statements and have not been reviewed by the
Company’s auditors for the periods presented. The additional
financial information is included to enable the comparison of
current results with results of prior periods.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730809834/en/
Investor Relations: Brian Agnew, bagnew@caesars.com; Charise
Crumbley, ccrumbley@caesars.com, 800-318-0047
Media Relations: Kate Whiteley, kwhiteley@caesars.com
Caesars Entertainment (NASDAQ:CZR)
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