Caesars Entertainment (CZR) Issues Monthly Operating Report for July 2015
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Caesars Entertainment (NASDAQ: CZR) disclosed the following on Tuesday:
Excerpts from Monthly Operating Report for the Period from
July 1, 2015 to July 31, 2015
General Notes
Description of These Chapter 11 Cases
On January 15, 2015 (the “Petition Date”), each of the Debtors filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Northern District of Illinois (the “Bankruptcy Court”). The Debtors’ chapter 11 cases are jointly administered for procedural purposes only under In re Caesars Entertainment Operating Company, Inc., No. 15-01145 (ABG) (Bankr. N.D. Ill.) pursuant to an order entered by the Bankruptcy Court on January 16, 2015 [Docket No. 43]. On February 5, 2015, the United States Trustee for the Northern District of Illinois (the “U.S. Trustee”) appointed a statutory committee of unsecured creditors and a statutory committee of second priority noteholders, in each case pursuant to section 1102(a)(1) of the Bankruptcy Code [Docket Nos. 264, 266, 317]. On March 12, 2015, the Bankruptcy Court entered an order granting in part and denying in part the motions to appoint an examiner pursuant to section 1104 of the Bankruptcy Code [Docket No. 675]. The Debtors continue to operate their business and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. Additional information about these chapter 11 cases, court filings, and claims information is available at the Debtors’ restructuring website: https://cases.primeclerk.com/ceoc/.
Notes to MOR-2 and MOR-3:
This Monthly Operating Report (“MOR”) has been prepared on a consolidated basis for the Debtors. For the basis of presentation, “affiliates” reflect investments made by CEOC or other enterprise wide non-CEOC entities. Non-debtor CEOC subsidiaries are accounted for using the equity method. The financial information contained herein is unaudited, limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in these chapter 11 cases.
As noted above, this MOR is not prepared in accordance with GAAP and does not include all of the information and footnotes required thereby. Additionally certain transactions that would be required to be included in GAAP financial statements are not reflected in this MOR. There can be no assurance that the consolidated financial information presented herein is complete, and readers are strongly cautioned not to place reliance on this MOR, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Debtors.
The unaudited financial statements have been derived from the books and records of the Debtors. The information furnished in this MOR includes certain normal recurring adjustments, but may not include all the adjustments that would typically be made for the quarterly and annual consolidated financial statements in accordance with GAAP. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of their quarterly and annual consolidated financial information in accordance with GAAP. Upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material.
The financial information contained herein is presented on a preliminary and unaudited basis and remains subject to future adjustment (which may be material) and reconciliation. However, the Debtors are not required to publicly update this MOR to reflect more current facts or estimates, or upon the occurrence of future events, including if the facts, estimates, or assumptions upon which this MOR is based change.
The results of operations contained herein are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations, financial position, and cash flows of the Debtors in the future. The Debtors have not made and do not make any representation to any person regarding the Debtors’ future results.
Month Ended | |||
July 31, 2015 | |||
Revenues | |||
Casino | $ | 249.4 | |
Food and beverage | 60.9 | ||
Rooms | 43.0 | ||
Management fees | 8.3 | ||
Other | 22.2 | ||
Reimbursed management costs | 6.8 | ||
Less: casino promotional allowances | (47.6 | ) | |
Net revenues | 343.0 | ||
Operating expenses | |||
Direct | |||
Casino | 140.5 | ||
Food and beverage | 25.8 | ||
Rooms | 8.2 | ||
Property, general, administrative, and other | 66.4 | ||
Reimbursable management costs | 6.8 | ||
Depreciation and amortization | 18.2 | ||
Write-downs and reserves, net of recoveries | 0.9 | ||
Loss on interests in CEOC non-debtor subsidiaries and non-consolidated affiliates | 2.1 | ||
Corporate expense | 6.6 | ||
Acquisition and integration costs | 0.2 | ||
Amortization of intangible assets | 3.1 | ||
Total operating expenses | 278.8 | ||
Income from operations | 64.2 | ||
Interest expense | (2.0 | ) | |
Other income, including interest income | 1.2 | ||
Reorganization items | (32.1 | ) | |
Income from continuing operations, before income taxes | 31.3 | ||
Income tax expense | (0.4 | ) | |
Net income from continuing operations, net of income taxes | 30.9 | ||
Discontinued operations | |||
Loss from discontinued operations | (1.1 | ) | |
Income tax expense | — | ||
Loss from discontinued operations, net of income taxes | (1.1 | ) | |
Net income | 29.8 | ||
Less: net income attributable to noncontrolling interests | (0.7 | ) | |
Net income attributable to CEOC Debtors | $ | 29.1 |
As of July 31, 2015 | |||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ | 1,164.2 | |
Restricted cash | 0.2 | ||
Receivables, net | 272.5 | ||
Prepayments and other current assets | 60.5 | ||
Inventories | 27.5 | ||
Due from non-debtor subsidiaries and affiliates | 214.1 | ||
Total current assets | 1,739.0 | ||
Property and equipment, net | 5,511.7 | ||
Goodwill | 673.9 | ||
Intangible assets other than goodwill | 2,354.3 | ||
Investments in and advances to non-consolidated affiliates | 11.2 | ||
Restricted cash | 10.5 | ||
Deferred charges and other | 292.9 | ||
Note receivable from non-debtor subsidiaries | 806.9 | ||
Assets held for sale | 21.2 | ||
Total assets | $ | 11,421.6 | |
Liabilities and Stockholders' Deficit | |||
Current liabilities | |||
Accounts payable | $ | 108.8 | |
Due to non-debtor subsidiaries and affiliates | 0.8 | ||
Accrued expenses | 488.6 | ||
Interest payable | 4.4 | ||
Deferred income taxes | 97.7 | ||
Total current liabilities | 700.3 | ||
Accumulated losses in excess of investment in non-debtor subsidiaries | 917.1 | ||
Deferred income taxes | 1,277.3 | ||
Deferred credits and other | 234.9 | ||
Liabilities subject to compromise | 18,910.4 | ||
Total liabilities | 22,040.0 | ||
Stockholders' deficit | (10,642.8 | ) | |
Noncontrolling interests | 24.4 | ||
Total stockholders' deficit | (10,618.4 | ) | |
Total liabilities and stockholders' deficit | $ | 11,421.6 |
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