Eldorado Resorts (ERI) Misses Q2 EPS, Revs

Eldorado Resorts (NASDAQ: ERI) reported Q2 EPS of $0.24, which may not compare to the analyst estimate of $0.52. Revenue for the quarter came in at $637.12 million versus the consensus estimate of $664.54 million.

• Operating Income of $102.6 Million
• Adjusted EBITDA of $178.7 Million

“Eldorado generated record second quarter Adjusted EBITDA of $178.7 million on a 6.9% decline in operating income and 6.2% net revenue decline. Adjusted EBITDA grew 2.2% on a year-over-year basis reflecting further success with our margin enhancement and operating efficiency initiatives coupled with revenuerecognition from our new sports betting partnerships, which helped offset property specific impacts across the portfolio, such as the final quarter of construction disruption at our Black Hawk properties and flooding that impacted much of the central United States. We achieved a 190-basis point improvement in our consolidated property-level Adjusted EBITDA margin to 29.5% and a 230-basis point year-over-year increase in the consolidated Adjusted EBITDA margin to 28.0%, both of which are quarterly records,” said Tom Reeg, Chief Executive Officer of Eldorado.

“We expect that our history of completing value-enhancing acquisitions and experience in unlocking value at acquired properties will serve us well as we move forward with the planned acquisition of Caesars Entertainment Corporation. When completed, this proposed transaction will represent the culmination of more than five years of execution on our strategic growth plan to expand our platform and geographic diversification through accretive transactions that have significantly increased our free cash flow. Inclusive of identified cost and revenue synergies of $500 million that we expect to realize in the first year following closing, the proposed transaction is expected to be immediately accretive to our free cash flow. In addition, we believe that there are opportunities to generate synergy upside from the acquired assets and our legacy portfolio that will enable us to reduce leverage following completion of the transaction.

“As we move through the regulatory review process in advance of the expected closing in the first half of 2020, our team is creating a detailed plan to marry best of breed practices from both entities. We believe the national, multi-brand footprint across all major markets created by the combination of Eldorado and Caesars is a strategically, financially and operationally compelling opportunity that is expected to deliver value to shareholders and stakeholders of both companies.”

For earnings history and earnings-related data on Eldorado Resorts (ERI) click here.

You May Also Be Interested In

• Wolfe Research upgrades Biogen, AbbVie on pipeline strength and valuation
• Ondas Holdings Inc. (ONDS) Misses Q2 EPS by 9c
• Parker Hannifin completes acquisition of Filtration Group Corporation