Press Release

Eldorado Resorts Reports Third Quarter Net Revenue of $487.3 Million, Operating Income of $91.8 Million and Adjusted EBITDA of $134.1 Million

Company Release - 11/8/2018 4:05 PM ET

RENO, Nev.--(BUSINESS WIRE)-- Eldorado Resorts, Inc. (NASDAQ:ERI) (“Eldorado,” “ERI,” or “the Company”) today reported operating results for the third quarter ended September 30, 2018.

($ in thousands, except per share data)

  Total Net Revenue
Three Months Ended
September 30,
2018  

2018 Pre-
Acquisition(1)

  2018 Total(2)   2017  

2017 Pre-
Acquisition(3)

 

2017
Total(2)

  Change
West $ 129,092   $

-

 

  $ 129,092   $ 134,324   $

-

 

  $ 134,324   (3.9 )%
Midwest 99,834 - 99,834 103,651 - 103,651 (3.7 )%
South 106,569 - 106,569 107,934 - 107,934 (1.3 )%
East 127,722 - 127,722 126,796 - 126,796 0.7 %
Central 23,897 16,693 40,590 - 42,595 42,595 (4.7 )%
Corporate and Other   139       -       139       173       -       173     (19.7 )%
Total Net Revenue $ 487,253     $ 16,693     $ 503,946     $ 472,878     $ 42,595     $ 515,473     (2.2 )%
 
 
($ in thousands, except per share data) Operating Income
Three Months Ended
September 30,
2018  

2018 Pre-
Acquisition(1)

  2018 Total(2)     2017    

2017 Pre-
Acquisition(3)

 

2017
Total(2)

  Change
West $ 31,894 $ - $ 31,894 $ 32,657 $ - $ 32,657 (2.3 )%
Midwest 26,637 - 26,637 24,264 - 24,264 9.8 %
South 16,176 - 16,176 13,682 - 13,682 18.2 %
East 23,637 - 23,637 21,215 - 21,215 11.4 %
Central 2,868 3,070 5,938 - 5,588 5,588 6.3 %
Corporate and Other   (9,443 )     -       (9,443 )     (10,326 )     -       (10,326 )   (8.6 )%
Total Operating Income $ 91,769     $ 3,070     $ 94,839     $ 81,492     $ 5,588     $ 87,080     8.9 %
 
 
($ in thousands, except per share data) Adjusted EBITDA
Three Months Ended
September 30,
2018  

2018 Pre-
Acquisition(1)

  2018 Total(2)     2017    

2017 Pre-
Acquisition(3)

 

2017
Total(2)

  Change
West $ 41,434 $ - $ 41,434 $ 40,424 $ - $ 40,424 2.5 %
Midwest 35,278 - 35,278 32,465 - 32,465 8.7 %
South 26,015 - 26,015 20,638 - 20,638 26.1 %
East 32,114 - 32,114 28,035 - 28,035 14.5 %
Central 5,850 3,952 9,802 - 7,330 7,330 33.7 %
Corporate and Other   (6,601 )     -       (6,601 )     (6,338 )     -       (6,338 )   4.1 %
Total Adjusted EBITDA (4) $ 134,090     $ 3,952     $ 138,042     $ 115,224     $ 7,330     $ 122,554     12.6 %
 
 
Net Income $ 37,704   $ 29,687  
Basic EPS $ 0.49   $ 0.39  
Diluted EPS $ 0.48   $ 0.38  
 
($ in thousands, except per share data)   Total Net Revenue
Nine Months Ended
September 30,
2018  

2018 Pre-
Acquisition(1)

  2018 Total(2)   2017  

2017 Pre-
Acquisition(3)

 

2017
Total(2)

  Change
West $ 346,550   $

-

 

  $ 346,550   $ 297,564   $ 43,414   $ 340,978 1.6 %
Midwest 301,235 - 301,235 171,292 142,237 313,529 (3.9 )%
South 341,612 - 341,612 228,954 131,100 360,054 (5.1 )%
East 370,576 - 370,576 352,721 11,717 364,438 1.7 %
Central 23,897 96,941 120,838 - 126,349 126,349 (4.4 )%
Corporate and Other   377       -       377       366       226       592     (36.3 )%
Total Net Revenue $ 1,384,247     $ 96,941     $ 1,481,188     $ 1,050,897     $ 455,043     $ 1,505,940     (1.6 )%
 
 
($ in thousands, except per share data) Operating Income
Nine Months Ended
September 30,
2018  

2018 Pre-
Acquisition(1)

  2018 Total(2)   2017  

2017 Pre-
Acquisition(3)

 

2017
Total(2)

Change
West $ 63,898 $ - $ 63,898 $ 50,590 $ 9,525 $ 60,115 6.3 %
Midwest 80,725 - 80,725 39,676 34,819 74,495 8.4 %
South 50,099 - 50,099 32,210 25,086 57,296 (12.6 )%
East 67,164 - 67,164 54,411 (1,072 ) 53,339 25.9 %
Central 2,868 18,448 21,316 - 21,049 21,049 1.3 %
Corporate and Other   (41,377 )     -       (41,377 )     (111,834 )     (8,811 )     (120,645 )   (65.7 )%
Total Operating Income $ 223,377     $ 18,448     $ 241,825     $ 65,053     $ 80,596     $ 145,649     66.0 %
 
 
($ in thousands, except per share data) Adjusted EBITDA
Nine Months Ended
September 30,
2018  

2018 Pre-
Acquisition(1)

  2018 Total(2)   2017  

2017 Pre-
Acquisition(3)

 

2017
Total(2)

Change
West $ 91,616 $ - $ 91,616 $ 69,847 $ 13,231 $ 83,078 10.3 %
Midwest 105,717 - 105,717 52,923 46,856 99,779 6.0 %
South 86,634 - 86,634 46,954 30,998 77,952 11.1 %
East 87,657 - 87,657 78,597 (120 ) 78,477 11.7 %
Central 5,850 23,403 29,253 - 26,342 26,342 11.1 %
Corporate and Other   (21,824 )     -       (21,824 )     (17,016 )     (5,996 )     (23,012 )   (5.2 )%
Total Adjusted EBITDA (4) $ 355,650     $ 23,403     $ 379,053     $ 231,305     $ 111,311     $ 342,616     10.6 %
 
 
Net Income (Loss) $ 95,355   $ (15,558 )
Basic EPS $ 1.23   $ (0.24 )
Diluted EPS $ 1.22   $ (0.24 )
(1)   Figures are for Grand Victoria Casino (“GV”) for the period beginning July 1, 2018 and ending August 6, 2018 for the three months ended September 30, 2018 and the period beginning January 1, 2018 and ending August 6, 2018 for the nine months ended September 30, 2018.
(2) Total figures for 2018 include combined results of operations for ERI and GV and total figures for 2017 include combined results of operations for ERI, GV and Isle of Capri Casino (“Isle”) for periods preceding the date that ERI acquired GV and Isle, as applicable. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of the operations reported by the Company.
(3) Figures are for GV for the three and nine months ended September 30, 2017 and for Isle for four months ended April 30, 2017. In the case of Isle, such figures were prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues, operating income and Adjusted EBITDA for periods corresponding to ERI's fiscal quarterly calendar. Such figures are based on unaudited internal financial statements and have not been reviewed by the Company's auditors and do not conform to GAAP.
(4) 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 operating income (loss), which the Company believes is the most comparable financial measure calculated in accordance with GAAP.
 

“The 2018 third quarter was another impressive period of growth for Eldorado Resorts as Adjusted EBITDA rose at 17 of our 21 properties, inclusive of the Grand Victoria Casino which was acquired in August. As a result, all five of our property segments generated year over year Adjusted EBITDA growth, including double-digit growth for our South, East and Central segments,” said Gary Carano, Chairman and Chief Executive Officer of Eldorado. “In addition, the third quarter Adjusted EBITDA margin rose at all five of our reporting segments with the increases ranging between 200 and 690 basis points as we continue to apply operational discipline focused on delivering profitable revenue and driving strong EBITDA gains. Third quarter consolidated Adjusted EBITDA rose 12.6% on a year over year basis on top of the strong 16.2% growth achieved in prior year period, our property-level Adjusted EBITDA margin improved 370 basis points to 28.7% and our consolidated Adjusted EBITDA margin rose 360 basis points to 27.4%.

“We completed the acquisition of Grand Victoria Casino, one of the premier casinos in the Chicagoland market, in August and completed the acquisition of Tropicana Entertainment in early October. These acquisitions have significantly expanded the scale of our gaming operations and diversified our geographic reach into seven new markets that have minimal overlap with our existing operations. The addition of these eight properties to our operations and our focus on disciplined marketing, promotions, advertising, and food and beverage and labor expense management are expected to drive growth in free cash flow, positioning us to reduce leverage while evaluating additional uses of free cash flow, including potential continued growth through acquisitions and the return of capital to shareholders.

“In early September we entered into a landmark agreement to partner with William Hill to address in-casino, mobile and online sports wagering opportunities where allowed in our current markets and as enabling legislation is enacted in the eight other markets where we will operate. In addition to the equity interest in our partner’s U.S. and global operations that will be issued to us following receipt of required regulatory approvals, sports wagering is expected to result in increased visitation and a new revenue source at our properties where we offer it, which we anticipate will also drive growth in our gaming and non-gaming operations. We opened a temporary sportsbook in Atlantic City’s Tropicana Casino and Resort on October 25 and expect to open our sportsbook at Mountaineer Casino Racetrack and Resort in Chester, West Virginia later this month.

“We are excited about our future as we continue to integrate our newly acquired properties, focus on initiatives that are expected to deliver margin improvement from our operations, invest in facility enhancements that are anticipated to deliver attractive returns, and position ourselves to benefit from developing sports wagering opportunity in the U.S.”

Balance Sheet and Liquidity

At September 30, 2018, Eldorado had $164.1 million in cash and cash equivalents, excluding restricted cash. Outstanding indebtedness at September 30, 2018 totaled $3.0 billion, including $600.0 million of new debt from the issuance of 6.0% senior notes due 2026 and approximately $180.0 million outstanding on the Company’s revolving credit facility. Capital expenditures in the third quarter and first nine months of 2018 totaled $33.9 million and $89.1 million, respectively.

Presque Isle Downs and Casino and Lady Luck Nemacolin are presented as assets held for sale as of September 30, 2018. Lady Luck Casino Vicksburg is no longer presented as an asset held for sale as of September 30, 2018.

Summary of 2018 Third Quarter Region Results

The property results for Presque Isle Downs and Casino and Lady Luck Nemacolin are included in operations until the announced divestitures of these properties are completed (expected to be early 2019). Full third quarter operating results for Grand Victoria Casino, which was acquired on August 7, are included in the Central region below and throughout this release. Beginning with the reporting of 2018 fourth quarter results, the property results for the Tropicana Laughlin Hotel and Casino and the MontBleu Casino Resort & Spa will be reported as part of the West region; Belle of Baton Rouge Casino & Hotel and Trop Casino Greenville will be reported as part of the South region; Tropicana Casino and Resort, Atlantic City will be reported as part of the East region; and Tropicana Evansville and Lumière Place will be reported as part of the Central region.

West Region (THE ROW, Isle Casino Hotel Black Hawk and Lady Luck Casino Black Hawk)

Net revenue for the West Region properties for the quarter ended September 30, 2018 declined approximately 3.9% to $129.1 million compared to $134.3 million in the prior-year period, and operating income declined to $31.9 million from $32.7 million in the year-ago quarter. Adjusted EBITDA increased 2.5% to $41.4 million reflecting an Adjusted EBITDA margin improvement of 200 basis points to 32.1%, compared to Adjusted EBITDA of $40.4 million on an Adjusted EBITDA margin of 30.1% in the prior-year period. The combined Adjusted EBITDA margin for the Black Hawk properties exceeded 40% in the quarter.

Midwest Region (Isle Casino Waterloo, Isle Casino Bettendorf, Isle of Capri Casino Boonville, Isle Casino Cape Girardeau, Lady Luck Casino Caruthersville and Isle of Capri Casino Kansas City)

Net revenue for the Midwest Region properties for the quarter ended September 30, 2018 decreased approximately 3.7% to $99.8 million compared to $103.7 million in the prior-year period, while operating income rose to $26.6 million from $24.3 million in the year-ago quarter. Adjusted EBITDA rose approximately 8.7% to $35.3 million as the Adjusted EBITDA margin for the segment rose 400 basis points to 35.3%. Adjusted EBITDA was up at all six of the Midwest properties year over year. Adjusted EBITDA for the Midwest Region in the prior-year period was $32.5 million reflecting an Adjusted EBITDA margin of 31.3%.

South Region (Isle Casino Racing Pompano Park, Eldorado Shreveport, Isle of Capri Casino Lula, Lady Luck Casino Vicksburg and Isle of Capri Lake Charles)

Net revenue for the South Region properties for the quarter ended September 30, 2018 declined approximately 1.3% to $106.6 million compared to $107.9 million in the prior-year period, while operating income increased to $16.2 million from $13.7 million in the year-ago quarter. Adjusted EBITDA increased 26.1% to $26.0 million as the Adjusted EBITDA margin for the segment rose 530 basis points to 24.4%.

East Region (Presque Isle Downs and Casino, Lady Luck Casino Nemacolin, Eldorado Scioto Downs Racino and Mountaineer Casino, Racetrack and Resort)

Net revenue for the East Region properties for the quarter ended September 30, 2018 increased approximately 0.7% to $127.7 million compared to $126.8 million in the prior-year period, while operating income grew to $23.6 million from $21.2 million in the year-ago quarter. Adjusted EBITDA for the East Region rose 14.5% to $32.1 million compared to Adjusted EBITDA of $28.0 million in the prior-year period as the East Region’s Adjusted EBITDA margin improved 300 basis points to 25.1%. Eldorado Scioto Downs generated Adjusted EBITDA growth for the fifteenth consecutive quarter.

Central Region (Grand Victoria Casino)

Net revenue for the Central Region for the quarter ended September 30, 2018 declined approximately 4.7% to $40.6 million compared to $42.6 million in the prior-year period, while operating income grew to $5.9 million from $5.6 million in the year-ago quarter. Adjusted EBITDA for the Central Region rose 33.7% to $9.8 million compared to Adjusted EBITDA of $7.3 million in the prior-year period as the Central Region’s Adjusted EBITDA margin improved 690 basis points to 24.1%.

Reconciliation of GAAP Measures to Non-GAAP Measures

Adjusted EBITDA (defined 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 the Company’s 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 operating income (loss) before depreciation and amortization, stock-based compensation, transaction expenses, severance expense, costs associated with the Presque Isle Downs, Vicksburg, Lake Charles and Nemacolin sales, income related to the termination of the Vicksburg sale, impairment charges, equity in income (loss) of unconsolidated affiliates, (gain) loss on the sale or disposal of property and equipment, and other non-cash regulatory gaming assessments. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with accounting principles generally accepted in the United States (“US GAAP”), 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 certain regulatory gaming assessments, 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 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.

Third Quarter Conference Call

Eldorado will host a conference call at 4:30 p.m. ET today. Senior management will discuss the financial results and host a question and answer session. The dial in number for the audio conference call is 323/794-2590, conference ID 1925022 (domestic and international callers). Participants can also access a live webcast of the call through the “Events & Presentations” section of Eldorado’s website at http://www.eldoradoresorts.com/ and a replay of the webcast will be archived on the site for 90 days following the live event.

About Eldorado Resorts, Inc.

Eldorado Resorts is a leading casino entertainment company that owns and operates twenty-eight properties in thirteen states, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, New Jersey, Ohio, Pennsylvania and West Virginia. In aggregate, Eldorado’s properties feature more than 30,000 slot machines and VLTs and 800 table games, and over 12,500 hotel rooms. For more information, please visit www.eldoradoresorts.com.

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. Such risks, uncertainties and other important factors include, but are not limited to: Eldorado’s ability to promptly and effectively integrate the operations of Tropicana and Grand Victoria and realize synergies resulting from the combined operations; the possibility that sports book, online and mobile betting and gaming are not approved in various jurisdictions, or, to the extent that such gaming activities are approved, the market for such gaming does not develop as anticipated; our substantial indebtedness and the impact of such obligations on our operations and liquidity; our ability to identify and execute acquisition and development opportunities; competition; sensitivity of our operations to reductions in discretionary consumer spending and changes in general economic and market conditions; governmental regulations, including risk relating to obtaining and maintaining required licenses, approvals and permits necessary for the operation of online and mobile betting and gaming, and increases in gaming taxes and fees in jurisdictions in which we operate; and other risks and uncertainties described in our reports on Form 10-K, Form 10-Q and Form 8-K.

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.

ELDORADO RESORTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share data)

(unaudited)

 
  Three Months Ended   Nine Months Ended
September 30, September 30,
2018   2017 2018   2017
REVENUES:        
Casino $ 362,877 $ 347,537 $ 1,046,010 $ 764,684
Pari-mutuel commissions 5,292 5,111 14,407 9,859
Food and beverage 58,153 59,537 164,644 141,667
Hotel 44,780 45,962 114,447 99,545
Other     16,151     14,731     44,739     35,142
Net revenues     487,253     472,878     1,384,247     1,050,897
EXPENSES:
Casino 175,333 169,322 506,536 389,010
Pari-mutuel commissions 4,729 4,657 13,022 9,894
Food and beverage 45,381 51,220 134,927 120,041
Hotel 13,977 15,513 40,178 36,862
Other 9,315 9,632 25,030 22,702
Marketing and promotions 23,122 26,439 66,255 58,099
General and administrative 75,599 75,650 223,546 168,339
Corporate 9,217 7,718 33,018 21,734
Impairment charges 3,787 13,602
Depreciation and amortization     35,760     29,122     99,204     69,635
Total operating expenses 396,220 389,273 1,155,318 896,316
(Loss) gain on sale or disposal of property and equipment (110 ) 4 (393 ) (51 )
Proceeds from terminated sale 5,000 5,000
Transaction expenses (4,091 ) (2,094 ) (10,043 ) (89,172 )
Equity in loss of unconsolidated affiliates     (63 )     (23 )     (116 )     (305 )
Operating income     91,769     81,492     223,377     65,053
OTHER EXPENSE:
Interest expense, net (34,085 ) (29,183 ) (96,579 ) (69,380 )
Loss on early retirement of debt, net         (10,030 )     (162 )     (37,347 )
Total other expense     (34,085 )     (39,213 )     (96,741 )     (106,727 )
Net income (loss) before income taxes 57,684 42,279 126,636 (41,674 )
(Provision) benefit for income taxes     (19,980 )     (12,592 )     (31,281 )     26,116
Net income (loss) $   37,704 $   29,687 $   95,355 $   (15,558 )
Net income (loss) per share of common stock:
Basic $   0.49 $   0.39 $   1.23 $   (0.24 )
Diluted $   0.48 $   0.38 $   1.22 $   (0.24 )
Weighted average basic shares outstanding     77,522,664     76,902,070     77,445,611     63,821,705
Weighted average diluted shares outstanding     78,283,588     77,959,689     78,208,040     63,821,705
1.   The prior period presentation has been adjusted for the adoption of Accounting Standards Codification (ASC) No. 606 “Revenue from Contracts with Customers” effective January 1, 2018 utilizing the full retrospective transition method. See reconciliation table on the last page of this release for further details.
 

ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

 
  Three Months Ended September 30, 2018
 

Operating

 

Depreciation and

 

Stock-based

 

Transaction

   

Adjusted

Income

 

Amortization

 

Compensation

 

Expenses (6)

  Other (7)  

EBITDA

Excluding Pre-Acquisition:
West $ 31,894 $

9,475

 

$

-

 

$

-

 

$ 65 $ 41,434
Midwest 26,637 8,605 15 - 21 35,278
South 16,176 9,704 9 - 126 26,015
East 23,637 4,486 2 - 3,989 32,114
Central 2,868 2,215 - - 767 5,850
Corporate   (9,443 )     1,275       2,468       4,091       (4,992 )     (6,601 )
Total Excluding Pre-Acquisition $ 91,769     $ 35,760     $ 2,494     $ 4,091     $ (24 )   $ 134,090  
 
Pre-Acquisition (1):
Central $ 3,070     $ 727     $ -     $ -     $ 155     $ 3,952  
Total Pre-Acquisition $ 3,070     $ 727     $ -     $ -     $ 155     $ 3,952  
 
Including Pre-Acquisition:
West $ 31,894 $ 9,475 $ - $ - $ 65 $ 41,434
Midwest 26,637 8,605 15 - 21 35,278
South 16,176 9,704 9 - 126 26,015
East 23,637 4,486 2 - 3,989 32,114
Central 5,938 2,942 - - 922 9,802
Corporate   (9,443 )     1,275       2,468       4,091       (4,992 )     (6,601 )
Total Including Pre-Acquisition (2) $ 94,839     $ 36,487     $ 2,494     $ 4,091     $ 131     $ 138,042  
 
 
Three Months Ended September 30, 2017 (8)
 

Operating

Depreciation and

Stock-based

Transaction

Adjusted

Income

 

Amortization

 

Compensation

 

Expenses (6)

  Other (7)  

EBITDA

Excluding Pre-Acquisition:
West $ 32,657 $ 7,653 $ 67 $ - $ 47 $ 40,424
Midwest 24,264 7,995 67 - 139 32,465
South 13,682 6,055 46 - 855 20,638
East 21,215 6,732 5 - 83 28,035
Central - - - - - -
Corporate   (10,326 )     687       1,207       2,094       -       (6,338 )
Total Excluding Pre-Acquisition $ 81,492     $ 29,122     $ 1,392     $ 2,094     $ 1,124     $ 115,224  
 
Pre-Acquisition (3):
Central $ 5,588     $ 1,742     $ -     $ -     $ -     $ 7,330  
Total Pre- Acquisition $ 5,588     $ 1,742     $ -     $ -     $ -     $ 7,330  
 
Including Pre-Acquisition:
West $ 32,657 $ 7,653 $ 67 $ - $ 47 $ 40,424
Midwest 24,264 7,995 67 - 139 32,465
South 13,682 6,055 46 - 855 20,638
East 21,215 6,732 5 - 83 28,035
Central 5,588 1,742 - - - 7,330
Corporate   (10,326 )     687       1,207       2,094       -       (6,338 )
Total Including Pre-Acquisition (4) $ 87,080     $ 30,864     $ 1,392     $ 2,094     $ 1,124     $ 122,554  
 
  Nine Months Ended September 30, 2018
 

Operating

 

Depreciation and

 

Stock-based

 

Transaction

   

Adjusted

Income

 

Amortization

 

Compensation

 

Expenses (6)

  Other (7)  

EBITDA

Excluding Pre-Acquisition:
West $ 63,898 $

27,046

 

$ (32 ) $

-

 

$ 704 $ 91,616
Midwest 80,725 24,654 90 - 248 105,717
South 50,099 26,343 50 - 10,142 86,634
East 67,164 15,252 11 - 5,230 87,657
Central 2,868 2,215 - - 767 5,850
Corporate   (41,377 )     3,694       9,526       10,043       (3,710 )     (21,824 )
Total Excluding Pre-Acquisition $ 223,377     $ 99,204     $ 9,645     $ 10,043     $ 13,381     $ 355,650  
 
Pre-Acquisition (1):
Central $ 18,448     $ 4,420     $ -     $ -     $ 535     $ 23,403  
Total Pre- Acquisition $ 18,448     $ 4,420     $ -     $ -     $ 535     $ 23,403  
 
Including Pre-Acquisition:
West $ 63,898 $ 27,046 $ (32 ) $ - $ 704 $ 91,616
Midwest 80,725 24,654 90 - 248 105,717
South 50,099 26,343 50 - 10,142 86,634
East 67,164 15,252 11 - 5,230 87,657
Central 21,316 6,635 - - 1,302 29,253
Corporate   (41,377 )     3,694       9,526       10,043       (3,710 )     (21,824 )
Total Including Pre-Acquisition (2) $ 241,825     $ 103,624     $ 9,645     $ 10,043     $ 13,916     $ 379,053  
 
 
Nine Months Ended September 30, 2017 (8)
 

Operating

Depreciation and

Stock-based

Transaction

Adjusted

Income

 

Amortization

 

Compensation

 

Expenses (6)

  Other (7)  

EBITDA

Excluding Pre-Acquisition:
West $ 50,590 $ 18,867 $ 119 $ - $ 271 $ 69,847
Midwest 39,676 12,961 153 - 133 52,923
South 32,210 12,649 110 - 1,985 46,954
East 54,411 23,885 9 - 292 78,597
Central - - - - - -
Corporate   (111,834 )     1,273       4,063       89,172       310       (17,016 )
Total Excluding Pre-Acquisition $ 65,053     $ 69,635     $ 4,454     $ 89,172     $ 2,991     $ 231,305  

 

Pre-Acquisition (5):
West $ 9,525 $ 3,694 $ 8 $ - $ 4 $ 13,231
Midwest 34,819 11,952 51 - 34 46,856
South 25,086 5,693 35 - 184 30,998
East (1,072 ) 952 - - - (120 )
Central 21,049 5,293 - - - 26,342
Corporate   (8,811 )     371       1,631       286       527       (5,996 )
Total Pre- Acquisition $ 80,596     $ 27,955     $ 1,725     $ 286     $ 749     $ 111,311  
 
Including Pre-Acquisition:
West $ 60,115 $ 22,561 $ 127 $ - $ 275 $ 83,078
Midwest 74,495 24,913 204 - 167 99,779
South 57,296 18,342 145 - 2,169 77,952
East 53,339 24,837 9 - 292 78,477
Central 21,049 5,293 - - - 26,342
Corporate   (120,645 )     1,644       5,694       89,458       837       (23,012 )
Total Including Pre-Acquisition (4) $ 145,649     $ 97,590     $ 6,179     $ 89,458     $ 3,740     $ 342,616  
(1)   Figures are for GV for the period beginning July 1, 2018 and ending August 6, 2018 for the three months ended September 30, 2018 and the period beginning January 1, 2018 and ending August 6, 2018 for the nine months ended September 30, 2018.
(2) Total figures for 2018 include combined results of operations for GV and the Company for periods preceding the date that the Company acquired GV. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for proforma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.
(3) Figures are for GV for the three months ended September 30, 2017.
(4) Total figures for three months ended September 30, 2017 include combined results of operations for GV and the Company for periods preceding the date that the Company acquired GV. Total figures for the nine months ended September 30, 2018 include combined results of operations for GV, Isle, and the Company for periods preceding the dates that the Company acquired GV and Isle. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for proforma presentation; however, we believe that the additional financial information will be helpful to investors in comparing current results with results of prior periods. This is non-GAAP data and should not be considered a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by the Company.
(5) Figures are for GV for the nine months ended September 30, 2017 and for Isle for the four months ended April 30, 2017. The Isle figures were prepared by the Company to reflect Isle’s unaudited consolidated historical operating revenues, operating income and Adjusted EBITDA for periods corresponding to the Company’s fiscal calendar. Such figures are based on the unaudited internal financial statements and have not been reviewed by the Company’s auditors and do not conform to GAAP.
(6) Transaction expenses represent costs related to the acquisition of Isle for the three and nine months ended September 30, 2017 and costs related to the acquisitions of GV and Tropicana for the three and nine months ended September 30, 2018.
(7) Other is comprised of severance expense, (gain) loss on the sale or disposal of property and equipment, equity in income (loss) of unconsolidated affiliate, impairment charges, income totaling $5.0 million from the terminated sale of Vicksburg and other non-cash regulatory gaming assessments for the three and nine months ended September 30, 2018 and 2017. Also included are costs associated with the sales of Presque Isle Downs and Nemacolin, the terminated sale of Vicksburg and selling costs paid directly by GV for the three and nine months ended September 30, 2018. Costs associated with the terminated sale of Lake Charles are also included for the three and nine months ended September 30, 2017.
(8) The prior period presentation has been adjusted for the adoption of Accounting Standards Codification (ASC) No. 606 “Revenue from Contracts with Customers” effective January 1, 2018 utilizing the full retrospective transition method. See Note 2 to our Condensed Notes to Unaudited Consolidated Financial Statements for additional information.
 
 

Reconciliation Table

Three Months Ended September 30, 2017

 
 

ASC 606

 

Other

 
As Reported  

Adjustments

 

Reclassifications (1)

  As Adjusted
Gross revenues $ 483,036 $ (39,651 ) $ 29,493 $ 472,878
Promotional allowances   (38,162 )     41,785       (3,623 )     -  
Net revenues $ 444,874     $ 2,134     $ 25,870     $ 472,878  
Operating income 78,924 182 2,386 81,492
Net income 29,554 133 - 29,687
 
 

Reconciliation Table

Nine Months Ended September 30, 2017

 

ASC 606

Other

As Reported  

Adjustments

 

Reclassifications (1)

  As Adjusted
Gross revenues $ 1,088,754 $ (88,225 ) $ 50,368 $ 1,050,897
Promotional allowances   (87,776 )     93,838       (6,062 )     -  
Net revenues $ 1,000,978     $ 5,613     $ 44,306     $ 1,050,897  
Operating income 60,955 172 3,926 65,053
Net (loss) income (15,754 ) 196 - (15,558 )

1. Other reclassifications are comprised of the reversal of our Lake Charles property from discontinued operations and other reclassifications to conform to current period presentations.

Thomas Reeg
President and Chief Financial Officer
Eldorado Resorts, Inc.
775/328-0112
investorrelations@eldoradoresorts.com
or
Joseph N. Jaffoni, Richard Land
JCIR
212/835-8500
eri@jcir.com

Source: Eldorado Resorts, Inc.