Caesars Entertainment, Inc. · NASDAQ:CZR
Caesars Entertainment — Q2 2019 Earnings Presentation
24 slides from Caesars Entertainment's earnings presentation, Aug 5, 2019
Slide 1: 2Q 2019 Earnings • August 5, 2019
2Q 2019 Earnings • August 5, 2019 CAESARS ENTERTAINMENT CORPORATION 1
Slide 2: Performance Highlights
Performance Highlights Marketing Efficiency2 Labor Efficiency3 2Q 2019 Improvement Improvement • Net revenues +4.9% YoY 90bps 30bps – Down 1.2% ex. Centaur LTM 2Q19 LTM 2Q19 • Adjusted EBITDAR1 +1.3% YoY – Down 5.1% ex. Centaur 23.8% 20.9% 23.5% • Adjusted EBITDAR margin1 28.4% 20.0% • Customer Serv
Slide 3: CZR 2Q19 Las Vegas Strip Key Performance Indicators
CZR 2Q19 Las Vegas Strip Key Performance Indicators +1.0% +1.6% +20 bps Net Revenue Adjusted Adjusted EBITDAR1 EBITDAR Margin1 +370 bps +2.2% +6.2% Occupancy2 ADR2 RevPAR2 1. Adjusted EBITDAR and related margins are non-GAAP measures and are presented for the reasons described in the Appendix, and a
Slide 4: 2Q 2019 Financial Performance by Region
2Q 2019 Financial Performance by Region Financial Results4 Net Revenue $ millions Net Revenues $ millions 2Q19 $ YoY % YoY (14) 20 19 2,222 Las Vegas 1,002 10 1.0% 78 Other U.S. 1,064 82 8.4% All Other 156 11 7.6% 2,119 Gaming Contribution Net Revenues 2,222 103 4.9% 64 Net Revenues Hold Adjusted3 2
Slide 5: Las Vegas Financial Performance
Las Vegas Financial Performance Las Vegas Las Vegas Net Revenue $ millions • Results were driven by healthy consumer 10 demand, with strength in hotel and food and (1) (18) 19 beverage (F&B) 992 1,002 Gaming Contribution • Hotel performance driven by strong group (19) demand and increased leisure de
Slide 6: Other U.S. and All Other Financial Performance
Other U.S. and All Other Financial Performance Other U.S. Other U.S. Adjusted EBITDAR1 • Increase in net revenue and Adjusted $ millions EBITDAR driven by acquisition of 40 (18) (10) 270 258 Centaur • Atlantic City and Southern Indiana, and to a lesser extent Iowa and Pennsylvania, 2Q18 Centaur Atla
Slide 7: Debt, Liquidity and Capex Review
Debt, Liquidity and Capex Review $ millions Face Maturity Rate Fixed Variable $ millions Liquidity CRC Term Loan1 4,630 2024 L+ 2.75% 3,0002 1,630 CRC Unsecured Notes 1,700 2025 5.25% 1,700 - June 30, 2019 CEOC Term Loan1 1,478 2024 L+ 2.00% - 1,478 Cash and Cash Equivalents $1,520 Clark County Bond
Slide 8: FY 2019 Cash Capex Estimates
FY 2019 Cash Capex Estimates Metrics Low High Maintenance Capex Same-Store Projects1, Centaur $375M $450M Development Capex2 CAESARS FORUM, Sports Books $475M $550M 1. Same-store projects defined as maintenance capital and room renovations. Range does not include $65mm of 2018 capital paid in 2019.
Slide 9: Appendix
Appendix C A E S A RS E N T E RT A IN M E NT • 2Q 2019 9
Slide 10: Reconciliation of Non-GAAP Information: Net Income to Adjusted EBITDAR
Reconciliation of Non-GAAP Information: Net Income to Adjusted EBITDAR CAESARS ENTERTAINMENT CORPORATION SUPPLEMENTAL INFORMATION RECONCILIATION OF NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDAR Three Months Ended June 30, 2019 Three Months Ended June 30, 201
Slide 11: Net Income to Adjusted EBITDAR (Excluding Centaur)
Reconciliation of Non-GAAP Information: Net Income to Adjusted EBITDAR CAESARS ENTERTAINMENT CORPORATION SUPPLEMENTAL INFORMATION - 2019 DATA EXCLUDING CENTAUR RECONCILIATION OF NET INCOME/(LOSS) ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION TO ADJUSTED EBITDAR Three Months Ended June 30, 2019 T
Slide 12: Reconciliation of Non-GAAP Information: Hold-Adjusted Revenue and EBITDAR
Reconciliation of Non-GAAP Information: Hold-Adjusted Revenue and EBITDAR Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (Favorable)/ Unfavorable $ in millions CEC Hold Adjusted CEC CEC Favorable Hold Adjusted CEC Change % Change Net Revenue $ 2,222 $ (2) $ 2,220 $ 2,119 $ (16) $
Slide 13: Historical Information: Las Vegas Region
Historical Information: Las Vegas Region LAS VEGAS, $ in millions except KPI data 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 Revenues Casino $ 257 $ 311 $ 249 $ 287 $ 1,104 $ 274 $ 292 Food and beverage 242 246 244 244 975 255 260 Rooms 280 282 271 284 1,117 299 301 Management fees - - - - - - - Reimbursed
Slide 14: Historical Information: Other U.S. Region
Historical Information: Other U.S. Region Other U.S., $ in millions except KPI data 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 Revenues Casino $ 663 $ 691 $ 789 $ 746 $ 2,889 $ 744 $ 768 Food and beverage 134 138 158 140 571 137 141 Rooms 86 105 124 84 399 86 106 Management fees 1 1 (2) - - - - Reimbursed m
Slide 15: Historical Information: All Other Region
Historical Information: All Other Region All Other, $ in millions except KPI data 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 Revenues Casino $ 63 $ 60 $ 64 $ 67 $ 254 $ 65 $ 66 Food and beverage 7 7 6 8 28 6 6 Rooms 1 1 - 1 3 1 - Management fees 14 14 18 14 60 15 15 Reimbursed management costs 51 47 50 51 2
Slide 16: Historical Information: Consolidated
Historical Information: Consolidated Consolidated, $ in millions except KPI data 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 Revenues Casino $ 983 $ 1,062 $ 1,102 $ 1,100 $ 4,247 $ 1,083 $ 1,126 Food and beverage 383 391 408 392 1,574 398 407 Rooms 367 388 395 369 1,519 386 407 Management fees 15 15 16 14 60
Slide 17: Forward Looking Statements
Forward Looking Statements Certain information in this presentation and discussed on the conference call which this presentation accompanies constitutes forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fa
Slide 18: Forward Looking Statements (continued)
Forward Looking Statements (continued) • the effects of local and national economic, credit, and capital market conditions on the economy, in general, and on the gaming industry, in particular; • the effect of reductions in consumer discretionary spending due to economic downturns or other factors a
Slide 19: Forward Looking Statements (continued)
Forward Looking Statements (continued) • our ability to attract, retain and motivate employees, including in connection with the Merger; • our ability to retain our performers or other entertainment offerings on acceptable terms or at all; • the risk of fraud, theft, and cheating; • seasonal fluctua
Slide 20: Important Information about the Proposed Merger
Important Information about the Proposed Merger Additional Information and Where To Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval nor shall there be any sale of securities in any jurisdi
Slide 21: Use of Non-GAAP Measures
Use of Non-GAAP Measures The following non-GAAP measures will be used in the presentation and discussed on the conference call which this presentation accompanies: • Adjusted EBITDAR and Adjusted EBITDAR Margin • “Hold Adjusted” financial measures • Results excluding Centaur Definitions of these non
Slide 22: RevPAR Components
RevPAR Components Rooms Occupied Comp ADR Includes the count of all rooms sold to a customer. Based on the best available rate for our best gaming customer (those likely to receive a complimentary room). These customers are entitled Rooms Available to the best available rate less 15%, if they were t
Slide 23: Reconciliation of Non-GAAP Information: Notes
Reconciliation of Non-GAAP Information: Notes Property earnings before interest, taxes, depreciation and amortization and rent (“EBITDAR") is a measure of Caesars Entertainment Corporation’s (the “Company”) performance. Property EBITDAR is defined as revenues less property operating expenses and is
Slide 24: C A E S A RS E N T E RT A IN M
C A E S A RS E N T E RT A IN M E NT • 2Q 2019 24
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