LAS VEGAS, Nov. 7, 2016 — Caesars Entertainment Corporation (NASDAQ: CZR) today reported third quarter of 2016 results as summarized in the discussion below, which highlights certain GAAP and non-GAAP financial measures on a consolidated basis.
Highlights
- Net revenues for Continuing CEC increased 3.0% year-over-year to $986 million primarily attributable to strong growth in the Las Vegas region.
- Net income for Continuing CEC, before including the effect of noncontrolling interest, was $5 million compared to a net loss of $756 million in the third quarter of 2015 and was largely due to a $4.2 billion pre-tax gain on the sale of Caesars Interactive Entertainment's ("CIE") social and mobiles games business, partially offset by an accrual of $3.0 billion related to the restructuring of Caesars Entertainment Operating Company, Inc. ("CEOC").
- Adjusted EBITDA for Continuing CEC grew 9.3% year-over-year to $269 million.
- Cash ADR in Las Vegas was up 10.6% due to increased resort fees, effective hotel yield management and improved pricing power due to room product enhancements.
- On September 23, 2016, CIE sold its social and mobile games business (the "SMG Business") for $4.4 billion in cash.
- In October, CEC and CEOC agreed to the terms of an amended plan of reorganization and gained the support of CEOC's major creditor groups, paving the way for a successful conclusion to CEOC's bankruptcy in 2017.
"We achieved another solid quarter of performance, with a 3 percent increase in revenues paced by strong results in Las Vegas, our largest market," said Mark Frissora, President and Chief Executive Officer of Caesars Entertainment. "We also continued to expand margins, a testament to the progress we have made to manage costs effectively while delivering enhanced customer service. Going forward, we remain focused on driving a balanced agenda of revenue growth and productivity gains to increase margins and cash flow. Our progress year to date gives us confidence that we are on the right path as we strive to maximize value for our stakeholders."
Summary Financial Data
The results of CEOC and its subsidiaries are no longer consolidated with Caesars subsequent to CEOC and certain of its United States subsidiaries (the "Debtors") voluntarily filing for reorganization under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") on January 15, 2015. In October, all of CEOC's major creditor groups signed amended restructuring support agreements and have agreed to the terms of the latest plan of reorganization. This is a key milestone in CEC and CEOC's efforts to implement a consensual restructuring and paves the way toward a successful conclusion of CEOC's bankruptcy in 2017.
In the table below, "Continuing CEC" represents Caesars Entertainment Resort Properties, LLC ("CERP"), Caesars Growth Partners, LLC ("CGP") (inclusive of CIE), other non-operating subsidiaries and associated parent company and elimination adjustments that represent the Caesars consolidated reporting entity as of September 30, 2016, and for subsequent periods.
Supplemental materials have been posted on the Caesars Entertainment Investor Relations website at http://investor.caesars.com/financials.cfm and may also be accessed by clicking on the PDF.
