Morning Update: Caesars Entertainment Corporation’s (NASDAQ: CZR)

Caesars Entertainment Corporation,CZR

On 18 Jan19, Caesars Entertainment Corporation’s (NASDAQ: CZR) above/below +1.59% and ended at $8.95. The stock’s market capitalization arrived at $5.863B and total traded volume was 9,163,438 shares. During last trade, its maximum trading price was registered $8.98 and it’s the minimum trading price was noted $ 8.78.

Caesars Entertainment Corporation (CZR) recently stated third quarter of 2018 results as summarized in the discussion below, which highlights certain GAAP and non-GAAP financial measures on a consolidated basis.

Third Quarter GAAP Highlights

  • Third quarter net revenues raised $1.19B, from $0.99Bto $2.19B,Because of the inclusion of the results of CEOC, LLC (“CEOC”), which emerged from bankruptcy in the fourth quarter of 2017, and the inclusion of the results of Centaur Holdings, LLC (“Centaur”), which was purchased during the quarter.
  • Third quarter operating profit raised 176%, or $148M, from $84Mto $232M.
  • Third quarter net income attributable to Caesars was $110M, contrast to a net loss of $433Min the previous year. Basic earnings per share totaled $0.16.
  • Caesars Entertainment completed the acquisition of Centaur on July 16, 2018.
  • Caesars Entertainment raised its Share Repurchase Program authorization to $750Mand repurchased about 28M shares during the quarter for about $280M.

Enterprise-wide Highlights (Non-GAAP)

  • Enterprise-wide net revenues raised 2.9%, or $62M, from $2.12Bto $2.19B. Enterprise-wide hold adjusted net revenues raised 2.2%, or $48M, from $2.16Bto $2.21B.
  • Enterprise-wide adjusted EBITDAR reduced 2.1%, or $13M, from $613Mto $600M. Enterprise-wide hold adjusted EBITDAR reduced 2.7%, or $17M, from $633M to $616M.
  • Enterprise-wide and Las Vegas adjusted EBITDAR were both about flat to down 1% on a year over year basis when adjusting for hold and a favorable credit in bad debt expense.
  • Enterprise-wide adjusted EBITDAR margin declined 140 basis points to 27.5%. Despite headwinds in Las Vegas, our Las Vegas adjusted EBITDAR margin was 33.7%.
  • Not Including Centaur, marketing costs reduced 10.0%, or $57M, including $32Mof contra-revenue, reflecting the Company’s continued focus in this area.

Additional Development

Recently, the Company received a letter from Golden Nugget, LLC proposing that Caesars acquire substantially all of Golden Nugget’s restaurant, hospitality, entertainment and gaming businesses in exchange for a important minority of Caesars’ ordinary shares.

The Board considered the proposal, in consultation with its legal and financial advisors, and determined that it is not consistent with the Company’s plans to create and enhance shareholder value over the long term. The Board has informed Golden Nugget of its decision.

Consistent with its fiduciary duties, the Board continues to be open to reasonable alternatives to enhance long-term shareholder value.

In the liquidity ratio analysis; CZR debt to equity ratio was 6.15 while current ratio was 1.20. The company has the institutional ownership of 0.31% while the Beta factor was 1.17. The stock’s RSI amounts to 71.28.


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