RENO, Nev. and LAS VEGAS - Caesars Entertainment, Inc., (NASDAQ: CZR) ('Caesars,' 'CZR,' 'CEI' or 'the Company') today reported operating results for the third quarter ended September 30, 2020.
third Quarter 2020 and Recent Highlights:
Net revenues of $1.4 billion, an increase of 52% on a GAAP basis and a decrease of 34% on a same-store basis versus the comparable prior-year period.
Net loss of $926 million compared to net income of $37 million for the comparable prior-year period.
Same-store Adjusted EBITDA of $463 million versus $810 million for the comparable prior-year period.
Eldorado Resorts, Inc. and Caesars Entertainment Corporation ('CEC' or 'Former Caesars') completed their merger (the 'Merger') on July 20, 2020 creating the largest casino and entertainment company in the U.S.
Caesars announced an all cash offer to acquire William Hill plc.
The Company raised $1.9 billion of new equity on October 1, 2020.
Caesars entered into a multi-year sports betting partnership with ESPN.
The Company announced the sale of Tropicana Evansville for $480 million to Gaming and Leisure Properties and Twin River Worldwide Holdings with no expected cash tax leakage.
Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, 'Our third quarter was a busy period for the company. We officially closed our merger with Former Caesars on July 20, 2020. We announced a recommended offer to acquire William Hill plc on September 30, 2020 and successfully raised $1.9 billion of new equity that closed on October 1, 2020. Additionally, 55 out of our 56 properties have now reopened and operating results continue to improve sequentially. Regional markets continued to outperform destination markets and we remain optimistic regarding an eventual recovery of travel and tourism in the U.S. and especially in Las Vegas.'
Third Quarter 2020 Financial Results Summary and Segment Information
For the third quarter ended September 30, 2020, Caesars Entertainment, Inc. generated net revenues of $1.4 billion and a net loss of $926 million on a GAAP basis. After combining results of operations of Caesars Entertainment, Inc. for the three months ended September 30, 2020 with results of operations of Former Caesars for the period prior to the closing of the Merger, including properties classified as discontinued operations but were not divested at the end of the period and eliminating results of operations for properties that have been divested, which we refer to as a same store basis, Caesars Entertainment, Inc. reported same store net revenues of $1.8 billion, net loss of $1.1 billion and adjusted EBITDA of $463 million. In our Las Vegas segment, revenues declined 60% during the third quarter and adjusted EBITDA declined 83%. Five of our nine properties in our Las Vegas segment were open during the entire third quarter. Bally's Las Vegas reopened on July 23rd, Planet Hollywood reopened on October 8th and the Cromwell recently reopened on October 29th. In our regional segment, same store revenues declined 39% and same store adjusted EBITDA declined 11%. Revenues for the reopened regional properties (excluding properties located in Atlantic City, Northern Nevada and New Orleans, which we consider destination locations, and Lake Charles due to a weather related closure) decreased 11% and adjusted EBITDA increased 10% with margins expanding over 700 basis points.
Balance Sheet and Liquidity
On September 30th, 2020, Caesars issued an announcement (the 'Rule 2.7 Announcement') pursuant to Rule 2.7 of the U.K. City Code on Takeovers and Mergers disclosing that it had reached an agreement with William Hill plc ('William Hill') on the terms of a recommended cash acquisition pursuant to which the Company would acquire the entire issued and to be issued share capital (other than shares owned by the Company or held in treasury) of William Hill, in an all-cash transaction.
As of September 30, 2020, Caesars had $16.2 billion in aggregate principal amount of debt outstanding. Total cash and cash equivalents were $1.0 billion, excluding restricted cash of $2.7 billion. $2.0 billion of the restricted cash balance was subsequently released to us in early October 2020.
Subsequent to the quarter end, on October 1, 2020, the Company completed a public offering of 35,650,000 shares of common stock, generating net proceeds of $1.9 billion, $1.6 billion of which was put into escrow in connection with the Rule 2.7 announcement.
As of September 30, 2020 and December 31, 2019, Caesars had the following cash and cash equivalents and aggregate principal amount of outstanding indebtedness.
See results at: https://investor.caesars.com/news-releases/news-release-details/caesars-entertainment-inc-reports-third-quarter-2020-results
SOURCE Caesars Entertainment, Inc.
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