Caesars Entertainment, Inc., (NASDAQ: CZR) today reported operating results for the second quarter ended June 30, 2022.

Second Quarter 2022 and Recent Highlights:

  • GAAP net revenues of $2.8 billion versus $2.5 billion for the comparable prior-year period.
  • GAAP net loss of $123 million compared to net income of $71 million for the comparable prior-year period.
  • Same-store Adjusted EBITDA of $978 million versus $1.0 billion for the comparable prior-year period.
    • Same-store Adjusted EBITDA, excluding our Caesars Digital segment, of $1.05 billion versus $1.01 billion for the comparable prior-year period.
    • Caesars Digital same-store Adjusted EBITDA of $(69) million versus $2 million for the comparable prior-year period.
  • As of July 2022 the company has repaid approximately $770 million of outstanding debt on a year-to-date basis, including a $630 million repayment of the Caesars Resort Collection Term B-1 Loan and $100 million of open market repurchases of our outstanding notes.

Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented, "Our second quarter results reflect a consolidated EBITDA record for our brick and mortar properties led by an all-time quarterly EBITDA record in Las Vegas and continued strength in our regional markets when compared to 2019. Operating results in our digital segment improved dramatically versus the first quarter and we are optimistic regarding trends in this segment for the balance of the year."

Second Quarter 2022 Financial Results Summary and Segment Information

After considering the effects of our recent acquisitions and planned or completed divestitures, the following tables present adjustments to net revenues, net income (loss) and adjusted EBITDA as reported, in order to reflect a same-store basis:

Net Revenues

Three Months Ended June 30,

(In millions)

2022

2022 Adj.(a)

Adj. 2022

Total

2021

2021 Adj.(a)

Adj. 2021

Total

% Change

Las Vegas

$       1,142

$             —

$       1,142

$           855

$             —

$           855

33.6 %

Regional

1,455

(1)

1,454

1,490

26

1,516

(4.1) %

Caesars Digital

152

—

152

86

31

117

29.9 %

Managed and Branded

74

—

74

66

(10)

56

32.1 %

Corporate and Other

(2)

—

(2)

5

—

5

*

Caesars

$       2,821

$              (1)

$       2,820

$       2,502

$             47

$       2,549

10.6 %

Net Revenues

Six Months Ended June 30,

(In millions)

2022

2022 Adj.(a)

Adj. 2022

Total

2021

2021 Adj.(a)

Adj. 2021

Total

% Change

Las Vegas

$       2,056

$             —

$       2,056

$       1,352

$             —

$       1,352

52.1 %

Regional

2,818

(5)

2,813

2,681

32

2,713

3.7 %

Caesars Digital

99

—

99

125

135

260

(61.9) %

Managed and Branded

140

—

140

127

(20)

107

30.8 %

Corporate and Other

—

—

—

9

—

9

(100.0) %

Caesars

$       5,113

$              (5)

$       5,108

$       4,294

$           147

$       4,441

15.0 %

Net Income (Loss)

Three Months Ended June 30,

(In millions)

2022

2022 Adj.(a)

Adj. 2022

Total

2021

2021 Adj.(a)

Adj. 2021

Total

% Change

Las Vegas

$           313

$             —

$           313

$           184

$             —

$           184

70.1 %

Regional

145

2

147

251

(14)

237

(38.0) %

Caesars Digital

(116)

—

(116)

(22)

(22)

(44)

163.6 %

Managed and Branded

(132)

—

(132)

(13)

34

21

*

Corporate and Other

(333)

—

(333)

(329)

—

(329)

1.2 %

Caesars

$         (123)

$               2

$         (121)

$             71

$              (2)

$             69

*

Net Income (Loss)

Six Months Ended June 30,

(In millions)

2022

2022 Adj.(a)

Adj. 2022

Total

2021

2021 Adj.(a)

Adj. 2021

Total

% Change

Las Vegas

$           481

$             —

$           481

$           117

$             —

$           117

*

Regional

269

2

271

316

(30)

286

(5.2) %

Caesars Digital

(692)

—

(692)

(30)

(33)

(63)

*

Managed and Branded

(343)

—

(343)

2

38

40

*

Corporate and Other

(518)

—

(518)

(757)

—

(757)

(31.6) %

Caesars

$         (803)

$               2

$         (801)

$         (352)

$           (25)

$         (377)

112.5 %

Adjusted EBITDA (b)

Three Months Ended June 30,

(In millions)

2022

2022 Adj.(a)

Adj. 2022

Total

2021

2021 Adj.(a)

Adj. 2021

Total

% Change

Las Vegas

$           547

$             —

$           547

$           423

$             —

$           423

29.3 %

Regional

513

—

513

602

2

604

(15.1) %

Caesars Digital

(69)

—

(69)

(5)

7

2

*

Managed and Branded

22

—

22

26

(2)

24

(8.3) %

Corporate and Other

(35)

—

(35)

(42)

—

(42)

(16.7) %

Caesars

$           978

$             —

$           978

$       1,004

$               7

$       1,011

(3.3) %

Adjusted EBITDA (b)

Six Months Ended June 30,

(In millions)

2022

2022 Adj.(a)

Adj. 2022

Total

2021

2021 Adj.(a)

Adj. 2021

Total

% Change

Las Vegas

$           947

$             —

$           947

$           585

$             —

$           585

61.9 %

Regional

972

—

972

995

(4)

991

(1.9) %

Caesars Digital

(623)

—

(623)

(7)

—

(7)

*

Managed and Branded

42

—

42

47

(3)

44

(4.5) %

Corporate and Other

(64)

—

(64)

(81)

—

(81)

(21.0) %

Caesars

$       1,274

$             —

$       1,274

$       1,539

$              (7)

$       1,532

(16.8) %

____________________

*

Not meaningful

(a)

Adjustment for pre-consolidation, pre-acquisition, and pre-disposition results of operations on a net basis reflecting (i) addition of results of

operations for Horseshoe Baltimore for periods prior to the consolidation resulting from the Company's increase in its ownership interest on

August 26, 2021 and William Hill prior to its acquisition on April 22, 2021, for the three and six months ended June 30, 2021 and (ii) subtraction

of results of operations for MontBleu, Evansville, Belle of Baton Rouge and discontinued operations of Caesars Southern Indiana, Harrah's

Louisiana Downs and Caesars UK group prior to divestiture, for the relevant periods. Such figures are based on unaudited internal financial

statements and have not been reviewed by the Company's auditors for the periods presented. The additional financial information is included

to enable the comparison of current results with results of prior periods.

(b)

Adjusted EBITDA is not a GAAP measurement and is presented solely as a supplemental disclosure because the Company believes it is a

widely used measure of operating performance in the gaming industry. See "Reconciliation of GAAP Measures to Non-GAAP Measures" below

for a definition of Adjusted EBITDA and a quantitative reconciliation of Adjusted EBITDA to net income (loss), which the Company believes is

the most comparable financial measure calculated in accordance with GAAP. 

Balance Sheet and Liquidity

As of June 30, 2022, Caesars had $14.2 billion in aggregate principal amount of debt outstanding. Total cash and cash equivalents were $997 million, excluding restricted cash of $355 million.

(In millions)

June 30, 2022

December 31, 2021

Cash and cash equivalents

$                               997

$                            1,070

Bank debt and loans

$                            6,935

$                            6,972

Notes

7,210

7,300

Other long-term debt

49

51

Total outstanding indebtedness

$                         14,194

$                         14,323

Net debt

$                         13,197

$                         13,253

As of June 30, 2022, our cash on hand and revolving borrowing capacity was as follows:

(In millions)

June 30, 2022

Cash and cash equivalents

$                            997

Revolver capacity (a)

2,180

Revolver capacity committed to letters of credit

(77)

Available revolver capacity committed as regulatory requirement

(48)

Total

$                         3,052

___________________

(a)

Revolver capacity includes $1,145 million under our CEI Revolving Credit Facility, as

amended, maturing in July 2025, $1,025 million under our CRC Revolving Credit

Facility, maturing in December 2022 and $10 million under our Baltimore Revolving

Credit Facility, as amended, maturing in July 2023.

"We successfully closed the William Hill non-US sale on July 1st and have applied $730 million in net proceeds to debt reduction as of July 22nd. We continue to invest in our brick & mortar and digital platforms across the U.S. using ample free cash flow," said Bret Yunker, Chief Financial Officer.

CAESARS ENTERTAINMENT, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions, except per share data)

2022

2021

2022

2021

REVENUES:

Casino and pari-mutuel commissions

$             1,549

$             1,571

$            2,841

$            2,798

Food and beverage

422

281

761

450

Hotel

519

396

902

611

Other

331

254

609

435

Net revenues

2,821

2,502

5,113

4,294

EXPENSES:

Casino and pari-mutuel commissions

825

694

1,889

1,281

Food and beverage

242

166

444

274

Hotel

134

106

249

187

Other

105

79

193

148

General and administrative

517

418

1,016

798

Corporate

76

76

145

142

Depreciation and amortization

306

301

606

566

Transaction and other operating costs, net

14

72

(21)

92

Total operating expenses

2,219

1,912

4,521

3,488

Operating income

602

590

592

806

OTHER EXPENSE:

Interest expense, net

(559)

(576)

(1,111)

(1,155)

Loss on extinguishment of debt

—

(23)

—

(23)

Other income (loss)

45

110

49

(23)

Total other expense

(514)

(489)

(1,062)

(1,201)

Income (loss) from continuing operations before income taxes

88

101

(470)

(395)

Benefit (provision) for income taxes

(52)

1

55

77

Net income (loss) from continuing operations, net of income taxes

36

102

(415)

(318)

Discontinued operations, net of income taxes

(157)

(30)

(386)

(34)

Net income (loss)

(121)

72

(801)

(352)

Net income attributable to noncontrolling interests

(2)

(1)

(2)

—

Net income (loss) attributable to Caesars

$               (123)

$                   71

$              (803)

$              (352)

Net income (loss) per share - basic and diluted:

Basic income (loss) per share from continuing operations

$               0.16

$               0.48

$            (1.95)

$            (1.52)

Basic loss per share from discontinued operations

(0.73)

(0.14)

(1.80)

(0.16)

Basic income (loss) per share

$              (0.57)

$               0.34

$            (3.75)

$            (1.68)

Diluted income (loss) per share from continuing operations

$               0.16

$               0.48

$            (1.95)

$            (1.52)

Diluted loss per share from discontinued operations

(0.73)

(0.14)

(1.80)

(0.16)

Diluted income (loss) per share

$              (0.57)

$               0.34

$            (3.75)

$            (1.68)

Weighted average basic shares outstanding

214

209

214

209

Weighted average diluted shares outstanding

215

211

214

209

CAESARS ENTERTAINMENT, INC.

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO CAESARS TO ADJUSTED EBITDA

(UNAUDITED)

Three Months Ended June 30,

(In millions)

2022

2021

Net income (loss) attributable to Caesars

$                                     (123)

$                                        71

Net income attributable to noncontrolling interests

2

1

Discontinued operations, net of income taxes

157

30

(Benefit) provision for income taxes

52

(1)

Other income (a)

(45)

(110)

Loss on extinguishment of debt

—

23

Interest expense, net

559

576

Depreciation and amortization

306

301

Transaction and other operating costs, net (b)

14

72

Stock-based compensation expense

26

20

Other items (c)

30

21

Adjusted EBITDA

978

1,004

Pre-consolidation, pre-acquisition, and pre-disposition EBITDA, net (d)

—

7

Total Adjusted EBITDA

$                                      978

$                                   1,011

Six Months Ended June 30,

(In millions)

2022

2021

Net loss attributable to Caesars

$                                     (803)

$                                     (352)

Net income attributable to noncontrolling interests

2

—

Discontinued operations, net of income taxes

386

34

Benefit for income taxes

(55)

(77)

Other (income) loss (a)

(49)

23

Loss on extinguishment of debt

—

23

Interest expense, net

1,111

1,155

Depreciation and amortization

606

566

Transaction and other operating costs, net (b)

(21)

92

Stock-based compensation expense

51

43

Other items (c)

46

32

Adjusted EBITDA

1,274

1,539

Pre-consolidation, pre-acquisition, and pre-disposition EBITDA, net (d)

—

(7)

Total Adjusted EBITDA

$                                   1,274

$                                   1,532

____________________

(a)

Other income for the three and six months ended June 30, 2022 primarily represents the net change in fair value of investments

held by the Company, foreign exchange forward contracts, and the changes in the disputed claims liability related to the bankruptcy

of Caesars Entertainment Corporation prior to the merger in 2020 (the "Merger"). Other (income) loss for the three and six months

ended June 30, 2021 primarily represents a gain on the change in fair value of investments offset by a loss on the change in fair

value of the derivative liability related to the 5% Convertible Notes.

(b)

Transaction and other operating costs, net for the three and six months ended June 30, 2022 primarily represents a gain resulting

from insurance proceeds received in excess of the respective carrying value of the assets damaged at Lake Charles by Hurricane

Laura partially offset by various contract or license termination exit costs. Transaction and other operating costs, net for the three

and six months ended June 30, 2021 primarily represents costs related to the acquisition of William Hill and the Merger, various

contract or license termination exit costs, professional services, other acquisition costs and severance costs.

(c)

Other items primarily represent certain consulting and legal fees, rent for non-operating assets, relocation expenses, retention

bonuses, and business optimization expenses.

(d)

Results of operations for Horseshoe Baltimore for periods prior to the consolidation resulting from the Company's increase in its

ownership interest on August 26, 2021 and William Hill prior to its acquisition on April 22, 2021 are added to Adjusted EBITDA.

The results of operations for MontBleu, Evansville, and Belle of Baton Rouge prior to divestiture are subtracted from Adjusted

EBITDA. Such figures are based on unaudited internal financial statements and have not been reviewed by the Company's

auditors for the periods presented. The additional financial information is included to enable the comparison of current results

with results of prior periods.

SOURCE Caesars Entertainment, Inc.