Exhibit 99.1
Caesars Entertainment Reports Record Results for First Quarter of 2005
LAS VEGAS--(BUSINESS WIRE)--April 21, 2005--Caesars Entertainment
Inc. (NYSE:CZR) today reported financial results for the first quarter
of 2005, including an all-time record for quarterly EBITDA from
continuing operations.
First quarter 2005 results
For the first quarter of 2005, Caesars Entertainment reported net
income of $50 million, or $0.16 per fully diluted share. That compares
to a net income of $71 million, or $0.23 per fully diluted share, for
the first quarter of 2004.
Adjusted net income for the quarter was $82 million, or $0.25 per
diluted share - $0.03 per share above the consensus of analysts'
estimates. First quarter adjusted net income excluded $155 million in
merger costs related to the company's pending acquisition by Harrah's
Entertainment, mainly related to a stock option cash-out program
established under the company's 1998 stock option plan. Adjusted net
income also excluded $4 million in operating results, net of tax, from
properties scheduled to be sold (classified as "discontinued
operations"); a $68-million after-tax gain related to the sale of the
company's interests in the Caesars Gauteng casino resort in South
Africa (also classified as "discontinued operations") and $1 million
in pre-opening expense.
Adjusted net income for the first quarter of 2004 was $61 million,
or $0.20 per diluted share. In that quarter, adjusted net income
excluded $10 million in operating results net of tax from properties
held for sale, which were included in discontinued operations.
Net revenue for the first quarter of 2005 was $1.096 billion, up
two percent from $1.075 billion in the first quarter of 2004. First
quarter EBITDA - earnings before interest, taxes, depreciation and
amortization and charges (and after corporate expense) - was $302
million, an all-time quarterly record for EBITDA from continuing
operations. EBITDA for the first quarter of 2004 was $291 million. The
EBITDA margin before corporate expense was 29 percent.
(Throughout this press release, results from the Atlantic City
Hilton, Bally's Tunica, Bally's New Orleans, Caesars Tahoe and Caesars
Gauteng are treated as "discontinued operations" for the current and
comparative year-ago period. Results from those properties are
excluded from such financial measures as net revenue, EBITDA,
operating income, interest expense and others. The company announced
last year that it had entered into definitive agreements to sell its
interests in each of those properties in 2005. The company completed
the sale of its interests in Caesars Gauteng on March 31, 2005.
Results from the Las Vegas Hilton, which the company sold in June
2004, are excluded from comparative results for the first three months
of 2004.)
Record EBITDA on Las Vegas Strip
"Our robust first quarter performance was driven by the continuing
strength of our Las Vegas Strip properties, which together reported
record EBITDA; year-over-year gains in the Mid-South and overall
margin improvement resulting from our ongoing efforts to reduce
expenses and increase efficiency," said Caesars Entertainment
President and Chief Executive Officer Wallace R. Barr. "As we move
toward the scheduled completion of our acquisition by Harrah's
Entertainment, we know that we have put in place a strong portfolio of
first class casino resorts that are well positioned to continue their
remarkable success under a new owner," Barr added.
First quarter highlights
-- Western Region EBITDA rose seven percent, to $159 million, up
from $149 million in the first quarter of 2004. On the Las
Vegas Strip, all-time record results were driven by improved
room rates - including higher cash room rates, which rose 13
percent - and the continuing strength of the company's
flagship property, Caesars Palace.
-- In the Eastern Region, EBITDA was $66 million, down 13 percent
from $76 million reported in the first quarter of 2004. Poor
weather in January and increased competition in the market
affected results.
-- The Mid-South Region recorded EBITDA of $65 million, up five
percent from $62 million in the first quarter of 2004. The
regional improvement was due to a nine percent EBITDA increase
at the company's Mississippi casino resorts.
-- The company on March 31 completed the sale of its ownership
and management interests in the Caesars Gauteng casino resort
near Johannesburg, South Africa to Peermont Global Limited, a
South African luxury hotel and casino company, and Peermont's
economic empowerment partner, Marang (East Rand) Gaming
Investments for approximately $145 million. Net after-tax cash
proceeds from the sale were approximately $100 million.
-- In Philadelphia, the company completed the purchase of
approximately 30 acres of land along the Delaware River
waterfront for the construction of a planned slot casino
property. Construction, which would include 18 acres of the
property, is contingent upon license approval by the
newly-created Pennsylvania Gaming Commission.
-- In New York, the Saint Regis Mohawk Tribe signed an historic
land claim settlement with Governor George Pataki, removing a
major obstacle to an agreement - or compact - with the state
that would authorize the Tribe to proceed with the
construction of the planned Mohawk Mountain Casino Resort in
the Catskill Mountains, about 90 miles north of New York City.
The casino resort would be owned by the Tribe and managed by
Caesars Entertainment.
-- As part of its strategy to harness leading-edge technology to
improve the efficiency of its casino operations, the company
won approval from New Jersey regulators to install the state's
first all-digital, casino floor video recording system at its
Bally's Atlantic City casino resort. Replacing all analog
video tape recorders with compact digital recorders that use
computer hard drives will enable the company to more
efficiently store and retrieve critical casino surveillance
video.
-- In a continuing commitment to offer guests premier gaming
options with impressive payouts, the company debuted an
exclusive line of Million Dollar Connection progressive slots,
created for the company by Bally Gaming and Systems (NYSE:
AGI). The progressive jackpots begin at $1 million and
accumulate across Caesars casino resorts within each gaming
jurisdiction.
-- The company was named Corporation of the Year by Las Vegas
Asian Chamber of Commerce, recognizing its efforts to promote
diversity in its management team, its workforce and in its
roster of vendors and suppliers.
-- "Training" magazine recognized the company for its extensive
employee training programs, naming those programs among the
"Top 100" in the United States.
Western Region
EBITDA for the Western Region's casino resorts was $159 million in
the first quarter of 2005, up seven percent from $149 million in the
year-ago quarter, driven by strength in Las Vegas. Caesars' Las Vegas
Strip casino resorts posted a 13 percent increase in cash room rates,
compared to the previous year's quarter.
At Caesars Palace, net revenue in the quarter was $170 million,
compared to $172 million in the first quarter of 2004. EBITDA was a
record $51 million - the highest quarterly EBITDA ever generated by
the property - up from the previous record of $47 million set in the
first quarter of 2004.
Lower slot and table volumes (excluding baccarat) and lower table
hold resulted in a nine percent decline in gaming win. Slot win rose
five percent in the quarter. RevPAR grew nine percent, to $170, on the
strength of a 19 percent increase in average cash room rate. The
average cash room rate for the first quarter of 2005 was $195, setting
a new record, up from $164 in the first quarter of 2004.
At Paris Las Vegas, first quarter EBITDA was $41 million, compared
to $43 million in the first quarter of 2004. Net revenue was $114
million, compared to $116 million in the year-ago quarter. Gaming win
declined 16 percent as a result of lower gaming volumes and a lower
table hold percentage. RevPAR grew five percent, driven by a nine
percent increase in the average cash room rate.
First quarter EBITDA for Bally's Las Vegas was $27 million, up 29
percent from the $21 million reported in the year-ago quarter. Net
revenue was $80 million, up from $75 million in the first quarter of
2004. Gaming win rose two percent, while RevPAR rose seven percent due
to higher room rates. The average cash room rate increased 10 percent.
The Flamingo Las Vegas reported first quarter EBITDA of $32
million, up from $30 million in the first quarter of 2004. Net revenue
was $92 million, up from $91 million in the year-ago quarter. A nine
percent decline in gaming win on lower volumes was more than offset by
a nine percent increase in RevPAR. The average cash room rate
increased 17 percent, to $110.
Other Nevada properties - the Reno Hilton and Flamingo Laughlin -
recorded combined EBITDA of $8 million in the first quarter, even with
the first quarter of 2004.
Eastern Region
EBITDA from Caesars' two Atlantic City casino resorts (the
company's management agreement with Dover Downs ended on December 31,
2004) was $66 million, down 13 percent from the $76 million reported
for the first quarter of 2004. (The year-ago figure included $1
million in results from Dover Downs). On a combined basis, gaming
volumes at the two properties declined eight percent. Lower results
were attributable to poor weather in January and increased competition
in the market.
At Bally's Atlantic City, EBITDA for the first quarter was $33
million, down from $38 million in the first quarter of 2004. Net
revenue was $146 million, compared to $155 million in the year-ago
quarter. Gaming win declined seven percent, the result of a nine
percent decline in volume. RevPAR declined four percent from the first
quarter of 2004 because of lower occupancy.
First quarter EBITDA for Caesars Atlantic City was $33 million,
down from $37 million in the year-ago period. Net revenue at the
property was $116 million, down from $119 million for the first
quarter of 2004. Gaming win declined three percent due to a decline in
gaming volume. RevPAR rose four percent on a five percent increase in
the average cash room rate.
Because operating results from the Atlantic City Hilton are
classified as "discontinued operations," they are not included in
reported results for Atlantic City in the current or prior year. Net
revenue at the Atlantic City Hilton declined 13 percent to $59 million
and EBITDA was $2 million in the quarter compared to $11 million in
the first quarter last year. Gaming win declined 11 percent due to
lower gaming volumes and hold percentage.
Mid-South Region
Caesars Entertainment casino resorts in Indiana and Mississippi
reported first quarter EBITDA of $65 million, up five percent from the
$62 million reported in the first quarter of 2004. The company's
Mississippi casinos drove regional results with a nine percent
increase in EBITDA.
At Caesars Indiana, EBITDA and net revenue were down because of
January flooding along the Ohio River, which caused the property to
close for nearly ten days. EBITDA was $18 million, off from $19
million in the year-ago quarter. Net revenue was $73 million, compared
to $79 million in the first quarter of 2004. Gaming win dropped six
percent and RevPAR declined four percent. The average cash room rate
rose 13 percent.
In the first quarter, Grand Casino Biloxi reported EBITDA of $17
million, up from $15 million in the first quarter of 2004. Net revenue
rose $2 million, to $64 million. RevPAR grew 32 percent on the
strength of higher rates and occupancy. The average cash room rate was
up 12 percent. Gaming win was up two percent on a one percent increase
in gaming volume.
First quarter EBITDA at Grand Casino Gulfport was $10 million,
down from $11 million in the first quarter of 2004. Net revenue was
$47 million, even with the prior year. Lower gaming volumes resulted
in a three percent decline in gaming win. Higher room rates and
occupancy drove a 19 percent increase in RevPAR. The average cash room
rate rose 18 percent in the quarter.
In Northern Mississippi, Grand Casino Tunica reported EBITDA of
$12 million, up from $10 million in the first quarter of 2004. Net
revenue was $54 million, compared to $53 million in the first quarter
of 2004. RevPAR rose 10 percent, while gaming win declined one percent
because of a lower slot hold percentage.
Results for Bally's Tunica are included in "discontinued
operations." During the quarter, Bally's Tunica generated $17 million
in net revenue and $5 million in EBITDA, both even with the year-ago
quarter.
International
In the first quarter, the company's international properties
reported combined EBITDA of $24 million, up from $15 million in the
first quarter of the previous year. The improved results were driven
by a $10 million year-over-year increase in EBITDA at the Conrad Punta
del Este casino resort in Uruguay, attributable to the consolidation
of the resort's operating results beginning in September 2004.
On March 31, 2005, the company sold its ownership and management
interests in the Caesars Gauteng casino resort, near Johannesburg,
South Africa. For the periods reported, the revenue, expenses, EBITDA
and gain on sale associated with this property are included in
"discontinued operations."
Capital expenditures
The company invested $227 million of capital during the first
quarter of 2005. Maintenance capital expenditures were $32 million and
investments in growth projects were $125 million. The company also
invested $70 million to purchase its partners' interest in the Caesars
Indiana casino resort. Investments made in growth projects during the
quarter included $66 million for the new luxury room tower and
additional meeting space at Caesars Palace; $44 million to complete
the purchase of land in Philadelphia for the planned casino project
and $9 million at Caesars Atlantic City for a new parking garage.
The company currently expects to spend approximately $662 million
on capital investments in 2005. This includes maintenance capital
investments of $239 million and growth capital of $423 million,
including the Caesars Indiana buy-out and the Philadelphia land
purchase.
The 2005 growth capital budget includes $215 million for the new
room tower and meeting space at Caesars Palace; $33 million for a new
parking garage adjacent to Caesars Atlantic City; $24 million to
construct a pedestrian bridge and other projects at Caesars Atlantic
City in anticipation of the opening of The Pier at Caesars and $15
million related to development of the Mohawk Mountain Casino Resort in
New York State.
Other items
Depreciation and Amortization in the first quarter was $97
million, compared to $101 million in the first quarter of 2004.
There was $1 million in pre-opening expense in the quarter related
to the construction of the new luxury hotel rooms and convention and
meeting space at Caesars Palace.
Total merger-related costs of $155 million include approximately
$143 million in cash proceeds distributed to stock plan participants
who elected to participate in a cash-out option available to them
under the company's 1998 stock option plan. The cash-out option became
available to the plan participants as a result of shareholder approval
of the Harrah's acquisition at a special meeting on March 11, 2005 at
Caesars Palace.
Corporate expense in the first quarter was $12 million, compared
to $11 million in the first quarter of 2004.
Equity in earnings of unconsolidated affiliates, which consists
primarily of the company's share of income from Casino Windsor, was $1
million. In the first quarter of 2004, when this item also included
results of Conrad Punta del Este in Uruguay, the item totaled $5
million.
Because of the reorganization of the Punta del Este casino resort,
Caesars Entertainment's ownership stake in the property increased from
approximately 46 percent to approximately 86 percent, requiring the
consolidation of results beginning in September 2004. Results from
Caesars Gauteng, also previously reported in this line item, now are
included in discontinued operations for the periods reported.
Net interest expense in the quarter was $66 million, compared to
$71 million in the first quarter of 2004. Capitalized interest was $5
million in the first quarter, compared to $1 million in the year-ago
quarter. There was $1 million in interest income in the quarter, even
with the previous year.
The $3 million in tax expense reported for the quarter was due to
the impact of merger costs on operating income and the
non-deductibility of certain merger-related expenses. Excluding the
effect of merger costs, the effective tax rate on continuing
operations in the quarter was 38.9 percent, compared to 46.6 percent
in the first quarter of 2004.
Discontinued operations includes operating results net of tax for
the Atlantic City Hilton, Bally's Tunica, Bally's New Orleans, Caesars
Tahoe and Caesars Gauteng and the after-tax gain from the March 31,
2005 sale of our interests in Caesars Gauteng. Results for the Las
Vegas Hilton for the first quarter of 2004 also are included in
"discontinued operations."
There were no share repurchases in the quarter.
Balance sheet
As of March 31, 2005, the company had a cash balance of $216
million, which consisted primarily of funds held in the company's
casinos.
The company had a debt balance of $4.1 billion and $1.2 billion
available on its credit facilities on March 31, 2005, subject to
covenant restrictions. The company has no debt maturities until
December 2005.
The number of diluted shares outstanding was 315 million at the
end of the first quarter. Normally, the diluted shares outstanding
would have been 322 million for the quarter ended March 31, 2005.
However, the additional shares were excluded from the EPS calculation
as required by Statement of Financial Accounting Standards No. 128
because including the additional shares would have had an
anti-dilutive effect on earnings from continuing operations. The
number of diluted shares outstanding at the end of the first quarter
of 2004 was 310 million.
Guidance
Consistent with the practice of other large-cap gaming companies,
Caesars Entertainment does not provide quarterly or annual earnings
guidance.
Non-GAAP financial measures
Adjusted net income, adjusted earnings per share and EBITDA are
non-GAAP financial measurements. EBITDA is earnings before interest,
taxes, depreciation and amortization (including depreciation from
unconsolidated subsidiaries), pre-opening expense, merger costs, asset
impairments, write-downs, contract and litigation settlements,
investment gains and losses, discontinued operations and other
non-recurring items.
Adjusted net income, adjusted earnings per share and EBITDA are
presented as supplemental disclosures because this is how the company
reviews and analyzes its performance and the performance of its
properties. These measures are used widely within the gaming industry
as indicators of performance and of the value of gaming companies.
This information should not be considered as an alternative to any
measure of performance as promulgated under accounting principles
generally accepted in the United States, such as operating income, net
income or net cash provided by operating activities.
Caesars Entertainment's calculation of adjusted net income,
adjusted earnings per share and EBITDA may be different from the
calculation used by other companies and therefore comparability may be
limited. The company has included schedules in the tables that
accompany this release that: 1) Reconcile EBITDA to operating income
and net income and 2) Reconcile net income to adjusted net income.
Investor information
Investors with questions regarding this earnings release should
contact Vice President for Treasury and Investor Relations Josh
Hirsberg by telephone at 702.699.5269 or by e-mail at
hirsbergj@caesars.com. As previously announced, the company will not
host a conference call to discuss first quarter earnings.
Annual shareholders meeting
The Board of Directors has established June 24, 2005 as the date
of the regular annual shareholders meeting, which will be held at 8
a.m. PDT at Caesars Palace in Las Vegas. The record date for the
meeting is April 25, 2005. However, if the Harrah's-Caesars merger is
completed before June 24, 2005, it will not be necessary to have the
annual shareholders meeting and it will be canceled.
About Caesars Entertainment
Caesars Entertainment, Inc. (NYSE:CZR) is one of the world's
leading gaming companies. With annual revenue of $4.2 billion, 26
properties on three continents, nearly 26,000 hotel rooms, two million
square feet of casino space and 50,000 employees, the Caesars
portfolio is among the strongest in the industry. Caesars casino
resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos,
Hilton and Paris brand names. The company has its corporate
headquarters in Las Vegas.
The company's Board of Directors in July 2004 accepted an offer
from Harrah's Entertainment, Inc. to acquire the company for
approximately $1.9 billion in cash and 67.9 million shares of Harrah's
common stock. Shareholders of both companies approved the merger in
separate meetings on March 11, 2005. The transaction is contingent on
approval by federal and state regulatory agencies and is expected to
close in the second quarter of 2005.
Additional information on Caesars Entertainment can be accessed
through the company's Web site at www.caesars.com.
Safe Harbor
This document includes "forward-looking statements" intended to
qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. You can identify these
statements by the fact that they do not relate strictly to historical
or current facts. These statements contain words such as "may,"
"will," "project," "might," "expect," "believe," "anticipate,"
"intend," "could," "would," "estimate," "continue" or "pursue," or the
negative or other variations thereof or comparable terminology. In
particular, they include statements relating to, among other things,
future actions, strategies, future performance, and future financial
results of Caesars and Harrah's anticipated acquisition of Caesars.
These forward-looking statements are based on current expectations and
projections about future events.
Readers are cautioned that forward-looking statements are not
guarantees of future performance or results and involve risks and
uncertainties that cannot be predicted or quantified and,
consequently, the actual performance or results of Caesars may differ
materially from those expressed or implied by such forward-looking
statements. Such risks and uncertainties include, but are not limited
to, the following factors as well as other factors described from time
to time in our reports filed with the SEC (including the sections
entitled "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" contained therein):
financial community and rating agency perceptions of Caesars, the
effects of economic, credit and capital market conditions on the
economy in general, and on gaming and hotel companies in particular;
construction factors, including delays, zoning issues, environmental
restrictions, soil and water conditions, weather and other hazards,
site access matters and building permit issues; the effects of
environmental and structural building conditions relating to our
properties; the ability to timely and cost-effectively consummate
Harrah's acquisition of Caesars and integrate Caesars properties into
Harrah's operations; the loss of Caesars personnel in connection with
Harrah's acquisition of Caesars; access to available and feasible
financing, including financing for Harrah's acquisition of Caesars, on
a timely basis; changes in laws (including increased tax rates),
regulations or accounting standards, third-party relations and
approvals, and decisions of courts, regulators and governmental
bodies; litigation outcomes and judicial actions, including gaming
legislative action, referenda and taxation; the ability of our
customer-tracking, customer loyalty and yield-management programs to
continue to increase customer loyalty and revenue; our ability to
recoup costs of capital investments through higher revenues; acts of
war or terrorist incidents; abnormal gaming holds; and the effects of
competition, including locations of competitors and operating and
market competition. Any forward-looking statements are made pursuant
to the Private Securities Litigation Reform Act of 1995 and, as such,
speak only as of the date made. Caesars disclaims any obligation to
update the forward-looking statements. You are cautioned not to place
undue reliance on these forward-looking statements which speak only as
of the date stated, or if no date is stated, as of the date of this
press release.
(Financial tables follow)
CAESARS ENTERTAINMENT, INC.
Summary Statements of Operations
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Ended
March 31,
------------------
2005 2004
-------- --------
Net revenue $1,096 $1,075
-------- --------
Operating costs and expenses 783 779
Depreciation and amortization 97 101
Pre-opening expense 1 -
Merger costs 155 -
Corporate expense 12 11
-------- --------
Total costs and expenses 1,048 891
-------- --------
Equity in earnings of unconsolidated affiliates 1 5
-------- --------
Operating income 49 189
Net interest expense 66 71
-------- --------
Income (loss) from continuing operations before
taxes and minority interest (17) 118
Income tax provision 3 55
Minority interest, net 2 2
-------- --------
Income (loss) from continuing operations (22) 61
Discontinued operations
Income from discontinued operations (including
$68 million gain on the sale of our interests in
Caesars Gauteng), net of taxes (1) 72 10
-------- --------
Net income $50 $71
======== ========
Basic and diluted earnings (loss) per share
Income (loss) from continuing operations $(0.07) $0.20
Discontinued operations, net of taxes (1) 0.23 0.03
-------- --------
Net income $0.16 $0.23
======== ========
Weighted average shares outstanding
Basic 315 306
Diluted 315 310
- -------------------------------------------------
(1) Discontinued operations include the results of Atlantic City
Hilton, Bally's Tunica, Bally's New Orleans, Caesars Tahoe and
our interests in Caesars Gauteng for all periods presented and
the results of the Las Vegas Hilton in the prior period.
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(Amounts in millions)
(unaudited)
Three Months Ended
March 31, 2005
----------------------------------------------------
Deprecia-
tion and Pre-
Net Operating Amor- opening Merger
Revenue Income tization Expense Costs EBITDA
-------- --------- ---------- ------- ------ ------
WESTERN REGION
Caesars Las Vegas $170 $39 $11 $1 $- $51
Paris Las Vegas 114 34 7 - - 41
Bally's Las Vegas 80 19 8 - - 27
Flamingo Las
Vegas 92 25 7 - - 32
Reno Hilton 33 1 2 - - 3
Flamingo Laughlin 27 4 1 - - 5
-------- --------- ---------- ------- ------ ------
516 122 36 1 - 159
-------- --------- ---------- ------- ------ ------
EASTERN REGION
Bally's Atlantic
City 146 19 14 - - 33
Caesars Atlantic
City 116 23 10 - - 33
Dover Downs - - - - - -
-------- --------- ---------- ------- ------ ------
262 42 24 - - 66
-------- --------- ---------- ------- ------ ------
MID-SOUTH REGION
Grand Biloxi 64 12 5 - - 17
Grand Tunica 54 6 6 - - 12
Caesars Indiana 73 11 7 - - 18
Grand Gulfport 47 6 4 - - 10
Sheraton Tunica 21 6 3 - - 9
Regional Overhead - (1) - - - (1)
-------- --------- ---------- ------- ------ ------
259 40 25 - - 65
-------- --------- ---------- ------- ------ ------
INTERNATIONAL and
Other 59 14 10 - - 24
CORPORATE and
Other - (169) 2 - 155 (12)
-------- --------- ---------- ------- ------ ------
TOTAL $1,096 $49 $97 $1 $155 $302
======== ========= ========== ======= ====== ======
NOTE: All Property Operating Information excludes the results of the
Atlantic City Hilton, Bally's Tunica, Bally's New Orleans,
Caesars Tahoe, our interests in Caesars Gauteng, and the Las
Vegas Hilton (2004 only) which are classified as discontinued
operations for all periods presented.
Three Months Ended
March 31, 2004
---------------------------------------------------
Deprecia-
Deprecia- tion from
tion and Unconsoli-
Net Operating Amor- dated
Revenue Income tization Affiliates EBITDA
-------- --------- --------- -------------- ------
WESTERN REGION
Caesars Las Vegas $172 $34 $13 $- $47
Paris Las Vegas 116 35 8 - 43
Bally's Las Vegas 75 12 9 - 21
Flamingo Las Vegas 91 24 6 - 30
Reno Hilton 33 - 3 - 3
Flamingo Laughlin 28 4 1 - 5
-------- --------- --------- -------------- ------
515 109 40 - 149
-------- --------- --------- -------------- ------
EASTERN REGION
Bally's Atlantic
City 155 24 14 - 38
Caesars Atlantic
City 119 26 11 - 37
Dover Downs 1 1 - - 1
-------- --------- --------- -------------- ------
275 51 25 - 76
-------- --------- --------- -------------- ------
MID-SOUTH REGION
Grand Biloxi 62 10 5 - 15
Grand Tunica 53 4 6 - 10
Caesars Indiana 79 12 7 - 19
Grand Gulfport 47 7 4 - 11
Sheraton Tunica 20 5 3 - 8
Regional Overhead - (1) - - (1)
-------- --------- --------- -------------- ------
261 37 25 - 62
-------- --------- --------- -------------- ------
INTERNATIONAL and
Other 24 5 9 1 15
CORPORATE and
Other - (13) 2 - (11)
-------- --------- --------- -------------- ------
TOTAL $1,075 $189 $101 $1 $291
========= ========= ========= ============== ======
NOTE: All Property Operating Information excludes the results of the
Atlantic City Hilton, Bally's Tunica, Bally's New Orleans,
Caesars Tahoe, our interests in Caesars Gauteng, and the Las
Vegas Hilton (2004 only) which are classified as discontinued
operations for all periods presented.
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(unaudited)
Three Months Ended
March 31, 2005
---------------------------------------------
Table Occupancy APR (1) ADR (2) RevPAR (3)
Hold % %
------- ---------- ------- ------- ----------
WESTERN REGION
Caesars Palace 16.1% 92.6% $195 $184 $170
Paris Las Vegas 15.7% 91.1% $165 $160 $145
Bally's Las Vegas 15.6% 92.6% $129 $123 $114
Flamingo Las Vegas 17.3% 87.4% $110 $108 $94
Reno Hilton 15.6% 79.1% $73 $73 $58
Flamingo Laughlin 18.3% 87.4% $31 $30 $26
------- ---------- ------- ------- ----------
16.1% 88.7% $124 $119 $106
------- ---------- ------- ------- ----------
EASTERN REGION
Bally's Atlantic City 16.7% 88.2% $104 $79 $70
Caesars Atlantic City 17.8% 93.2% $107 $92 $85
------- ---------- ------- ------- ----------
17.2% 90.2% $105 $84 $76
------- ---------- ------- ------- ----------
MID-SOUTH REGION
Grand Biloxi 17.4% 97.5% $82 $81 $79
Grand Tunica 18.3% 79.4% $57 $55 $44
Caesars Indiana 17.1% 81.7% $97 $96 $79
Grand Gulfport 20.6% 95.5% $66 $60 $57
Sheraton Tunica 18.8% 97.4% $73 $68 $66
------- ---------- ------- ------- ----------
18.1% 88.8% $71 $69 $61
------- ---------- ------- ------- ----------
NOTE: All Property Operating Information excludes the results of the
Atlantic City Hilton, Bally's Tunica, Bally's New Orleans,
Caesars Tahoe, our interests in Caesars Gauteng, and the Las
Vegas Hilton (2004 only) which are classified as discontinued
operations for all periods presented.
(1) APR is Average Paying Rate and is calculated by dividing cash
room revenue by cash rooms occupied.
(2) ADR is Average Daily Rate and is calculated by dividing total
room revenue by total rooms occupied.
(3) RevPAR is defined as Revenue Per Available Room and is
calculated by dividing total room revenue by rooms available.
CAESARS ENTERTAINMENT, INC.
Property Operating Information
(unaudited)
Three Months Ended
March 31, 2004
---------------------------------------------
Table Occupancy % APR (1) ADR (2) RevPAR (3)
Hold %
------ ----------- ------- ------- ----------
WESTERN REGION
Caesars Palace 18.2% 97.1% $164 $160 $156
Paris Las Vegas 18.4% 94.4% $152 $146 $138
Bally's Las Vegas 13.9% 93.9% $117 $114 $107
Flamingo Las Vegas 17.6% 93.0% $94 $92 $86
Reno Hilton 17.8% 81.6% $70 $70 $57
Flamingo Laughlin 19.7% 87.7% $29 $28 $25
------ ----------- ------- ------- ----------
17.8% 91.9% $110 $108 $99
------ ----------- ------- ------- ----------
EASTERN REGION
Bally's Atlantic City 16.1% 94.8% $98 $77 $73
Caesars Atlantic City 17.6% 96.0% $102 $86 $82
------ ----------- ------- ------- ----------
16.8% 95.3% $100 $80 $77
------ ----------- ------- ------- ----------
MID-SOUTH REGION
Grand Biloxi 15.8% 96.8% $73 $62 $60
Grand Tunica 15.5% 73.2% $54 $55 $40
Caesars Indiana 17.8% 93.3% $86 $87 $82
Grand Gulfport 18.0% 89.2% $56 $54 $48
Sheraton Tunica 18.2% 98.0% $68 $63 $62
------ ----------- ------- ------- ----------
16.7% 86.4% $64 $61 $53
------ ----------- ------- ------- ----------
NOTE: All Property Operating Information excludes the results of the
Atlantic City Hilton, Bally's Tunica, Bally's New Orleans,
Caesars Tahoe, our interests in Caesars Gauteng, and the Las
Vegas Hilton (2004 only) which are classified as discontinued
operations for all periods presented.
(1) APR is Average Paying Rate and is calculated by dividing cash
room revenue by cash rooms occupied.
(2) ADR is Average Daily Rate and is calculated by dividing total
room revenue by total rooms occupied.
(3) RevPAR is defined as Revenue Per Available Room and is calculated
by dividing total room revenue by rooms available.
CAESARS ENTERTAINMENT, INC.
Reconciliation of EBITDA to Net Income
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Ended
March 31,
------------------
2005 2004
--------- -------
EBITDA(1) $302 $291
Depreciation and amortization (97) (101)
Depreciation from unconsolidated subs - (1)
Pre-opening expense (1) -
Merger costs (155) -
--------- -------
Operating income 49 189
Net interest expense (66) (71)
Income tax provision (3) (55)
Minority interest, net (2) (2)
Discontinued operations, net of taxes (2) 72 10
--------- -------
Net income $50 $71
========= =======
Earnings per share
Basic and Diluted $0.16 $0.23
Weighted average shares outstanding
Basic 315 306
Diluted 315 310
(1) EBITDA is earnings before interest, taxes, depreciation and
amortization, merger costs, pre-opening, and discontinued
operations.
(2) Discontinued operations include the results of the Atlantic City
Hilton, Bally's Tunica, Bally's New Orleans, Caesars Tahoe, our
interests in Caesars Gauteng, and the Las Vegas Hilton (2004). In
2005, discontinued operations includes a $68 million gain, net of
taxes, on the sale of our interests in Caesars Gauteng.
CAESARS ENTERTAINMENT, INC.
Reconciliation of Net Income to Adjusted Net Income
(Amounts in millions, except per share amounts)
(unaudited)
Three Months Ended
March 31,
------------------
2005 2004
--------- -------
Net income $50 $71
Adjustments:
Pre-opening expense 1 -
Merger costs 155 -
Income taxes on adjustments (52) -
Discontinued operations, net of taxes (72) (10)
--------- -------
Adjusted net income $82 $61
========= =======
Adjusted earnings per share
Basic $0.26 $0.20
Diluted $0.25 $0.20
Weighted average shares outstanding
Basic 315 306
Diluted 322 310
CONTACT: Caesars Entertainment, Las Vegas
Josh Hirsberg, 702-699-5269 (Investors)
hirsbergj@caesars.com
Robert W. Stewart, 702-699-5043 (Media)
stewartr@caesars.com