Caesars Entertainment, Inc. · NASDAQ:CZR
Caesars Entertainment — Eldorado Resorts — Investor Presentation (December 2014)
28 slides from Caesars Entertainment's investor presentation, Dec 2, 2014
Slide 1: Eldorado Resorts, Inc. Investor Presentation December 2014
Eldorado Resorts, Inc. Investor Presentation December 2014 1
Slide 2: Forward Looking Statements
Forward Looking Statements 2 This document 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, ob
Slide 3: Investment Highlights
Investment Highlights Potential for Future Mergers and Acquisitions Geographic Diversification in Attractive Markets Strong Financial Profile Potential for Future Synergies High Quality Gaming Assets 3
Slide 4: Investment Highlights
Investment Highlights High Quality Gaming Assets Best-in-class properties located in significant regional gaming markets Easy access to highways and close to major population centers Sizable gaming assets with an average of 1,675 slot machines and 58 table games across the portfolio All properties g
Slide 5: Timeline
Timeline 5 1973 1995 2005 2008 Eldorado founded by Donald Carano and Jerry Poncia – opens Eldorado Hotel and Casino Enters into JV with MGM Resorts International to build Silver Legacy Acquires majority interest in Shreveport casino Acquires remaining interest in Shreveport 2013 Announces merger wit
Slide 6: Deep Gaming Industry Experience
Deep Gaming Industry Experience Gary Carano – Chairman / Chief Executive Officer 30+ years gaming and lodging experience Previously President/COO of Eldorado; original GM of Silver Legacy Tom Reeg – President Working with Eldorado in various capacities since 2007, previously SVP – Strategic Developm
Slide 7: Operations Overview
E€ ELDORADO RESORTS OPERATIONS OVERVIEW
Slide 8: Western/Southern Properties Operations Overview
Western/Southern Properties Operations Overview Reno, NV Shreveport, LA Shreveport, LA 1,507 slots; 61 tables and 403 hotel rooms LTM 9/30/14 Revenue: $133.3mm LTM 9/30/14 Property Adjusted EBITDA: $21.4mm Reno, NV 1,230 slots; 59 tables and 814 hotel rooms LTM 9/30/14 Revenue: $103.7mm LTM 9/30/14
Slide 9: Eldorado Shreveport Property Overview
Eldorado Shreveport Property Overview Location Located in Downtown Shreveport, LA along the Red River Opened in 2000 Property Description Land-based 403-room, all-suite hotel connected on three levels to a casino riverboat Over 59,000 square feet of gaming space including 1,507 slot machines and 61
Slide 10: Eldorado Reno Property Overview
Eldorado Reno Property Overview Location Centrally positioned in Reno’s prime downtown gaming area Located one block away from the National Bowling Stadium, Reno Event Center and the city-owned downtown ballroom facility Draws from residents of Reno and Sparks, NV, respectively, as well as tourist v
Slide 11: Silver Legacy Property Overview
Silver Legacy Property Overview Location Themed hotel-casino and entertainment complex located in Reno, NV and based on Nevada’s mining heritage Located one block away from the National Bowling Stadium, Reno Event Center and the city-owned downtown ballroom facility Property Description Joint ventur
Slide 12: Silver Legacy
Silver Legacy Accounted for on Eldorado’s income statement as an investment in unconsolidated affiliate Has 48.1% interest in the Silver Legacy with right to acquire 1.9% of the remaining Silver Legacy interest beginning in September 2015 As of September 30, 2014, LTM net revenue and Property Adjust
Slide 13: Eastern Properties Operations Overview
Eastern Properties Operations Overview Our Eastern Properties consist of three properties located in Pennsylvania, Ohio and West Virginia 1,720 slots and 37 tables LTM 9/30/14 Net Revenue: $143.7mm LTM 9/30/14 Property Adjusted EBITDA: $19.2mm Erie, PA 2,105 VLTs LTM 9/30/14 Net Revenue: $149.0mm(1)
Slide 14: Presque Isle Downs & Casino Property Overview
Presque Isle Downs & Casino Property Overview Location Located in Erie, Pennsylvania and opened in February 2007 Property Description 153,000 square foot facility consists of 59,000 square feet of gaming space with approximately 1,720 slot machines, 37 casino table games, including 9 poker tables. C
Slide 15: Scioto Downs Racino Property Overview
Scioto Downs Racino Property Overview Location Leading harness horse racing facility located approximately 8 miles from downtown Columbus, Ohio Property Description One of two gaming facilities in Columbus area; second facility opened on October 8, 2012 (Hollywood Casino Columbus) $125 million devel
Slide 16: Mountaineer Casino, Racetrack & Resort Property Overview
Mountaineer Casino, Racetrack & Resort Property Overview Location Located on the Ohio River at the northern tip of West Virginia’s panhandle; approximately 30 miles from Pittsburgh International Airport and a one hour drive from downtown Pittsburgh Property Description 106,000 square feet of gaming
Slide 17: Combined Geographic Presence
Combined Geographic Presence Slot Machines: 1,380 Table Games: 71 Hotel Rooms: 1,711 Employees: 1,800 Slot Machines: 1,230 Table Games: 59 Hotel Rooms: 814 Employees: 1,550 Slot Machines: 1,507 Table Games: 61 Hotel Rooms: 403 Employees: 1,200 VLTs: 2,105 Employees: 660 VLTs: 2,107 Table Games: 51 H
Slide 18: Powerful New Regional Operator
Powerful New Regional Operator Three gaming properties 5,932 slot machines 97 table games 354 hotel rooms 2,988 employees (including corporate) LTM 9/30/2014 net revenues of $483.0 million LTM 9/30/2014 Property Adjusted EBITDA of $102.4 million Three casinos (one held through a joint venture) 4,117
Slide 19: Geographic and Financial Diversification
Geographic and Financial Diversification Net Revenue (LTM 9/30/14) Pro Forma Combined Pro Forma Net Revenue: $720.0 million Property Adjusted EBITDA (LTM 9/30/14) Pro Forma Property Adjusted EBITDA: $137.8 million 19 Pro Forma Combined Note: Net revenue and Adjusted EBITDA do not include Eldorado’s
Slide 20: Debt Structure
Debt Structure (1) Represents blended rate of $60.5 million first-out tranche (L+550) and $30.0 million last-out tranche (L+1000bps). (2) PIK election has expires. 20 Eldorado Resorts Silver Legacy MTR Gaming Issue Senior Secured Notes Secured Credit Facility Secured Revolving Credit Facility Senior
Slide 21: Debt Structure / Liquidity at 9/30/14
Debt Structure / Liquidity at 9/30/14 21 (in $000s) Eldorado Resorts LLC MTR Gaming Group Silver Legacy Cash 28,536 Cash 62,593 Cash 21,157 Restricted Cash 5,305 Restricted Cash 1,243 6.5% First Lien, First Out Note due 2017 55,700 8.625% Senior Secured Notes due 2019 168,000 11.5% Senior Secured No
Slide 22: Conclusion
Conclusion Potential for Future Mergers and Acquisitions Geographic Diversification in Attractive Markets Strong Financial Profile Potential for Future Synergies High Quality Gaming Assets 22
Slide 23: Appendix
E€ ELDORADO RESORTS APPENDIX
Slide 24: Non-GAAP Financial Reconciliation
Non-GAAP Financial Reconciliation 24 Adjusted EBITDA, 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
Slide 25: Reconciliation of Net Income (Loss) to Adj. EBITDA
Reconciliation of Net Income (Loss) to Adj. EBITDA 25 LTM 9/30/2014 Mountaineer Casino, Racetrack & Resort: Income from continuing operations 23,508 $ Interest expense (income), net (4) Provision (benefit) for income taxes 338 Depreciation 9,264 Amortization of Intangible assets 72 Gain on disposal
Slide 26: Reconciliation of Net Income (Loss) to Adj. EBITDA
Reconciliation of Net Income (Loss) to Adj. EBITDA 26 LTM 9/30/2014 Scioto Downs Income from continuing operations 33,931 $ Interest expense, net of interest income 78 Provision for income taxes 2,352 Depreciation 13,562 Amortization of intangle assets 85 Loss on disposal of property 9 Adjusted EBIT
Slide 27: Reconciliation of Net Income (Loss) to Adj. EBITDA
Reconciliation of Net Income (Loss) to Adj. EBITDA 27 LTM 9/30/2014 Eldorado Reno: Net Income 6,549 $ Interest Income - Interest expense 4,792 Benefit for income taxes (2,132) Depreciation and amortization 7,954 Acquisition charges 8,055 Equity in income of unconsolidated affiliate (14,929) Gain on
Slide 28: Reconciliation of Net Income (Loss) to Adj. EBITDA
Reconciliation of Net Income (Loss) to Adj. EBITDA 28 Note: Eldorado Resorts, Inc. pro forma consolidated Adjusted EBITDA for the twelve months ended September 30, 2014 was derived by adding the Adjusted EBITDA of Eldorado Resorts, LLC for such period to the consolidated Adjusted EBITDA of MTR Gamin
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