Caesars Entertainment said revenues fell between 56% and 58% for the first week of reduced operations at the company’s five reopened properties in Nevada, according to a securities filing Tuesday.
The company said revenues for its six regional casinos in four states that reopened starting May 18 were either flat to up 2% through June 10.
Caesars released the preliminary totals through an 8K filings with the Securities and Exchange Commission in conjunction with several financing moves announced Monday by Eldorado Resorts, which is acquiring Caesars in a $17.3 billion merger.
Caesars’ entire gaming and non-gaming portfolio closed in mid-March in response to the coronavirus pandemic.
The filing did not provide raw numbers, just estimated percentages for each of the regions. The company said its properties reopened under each state’s COVID-19 health and safety guidelines and regulations that limit gaming positions and/or the number of guests allowed into each property.
Caesars said operating income at the five Nevada properties declined approximately 110% to 120% between June 4 and June 10 compared to the results from those some properties a year ago. Adjusted cash flow was off between 70% and 80%.
The Nevada results covered operations from Caesars Palace, Flamingo Las Vegas, Linq Promenade, and Harrah’s Lake Tahoe, which opened on June 4, and Harrah’s Las Vegas, which opened on June 5. The gaming floor and certain restaurants inside the Linq Resort opened last Friday and were not included in the filing.
As for the six regional properties, operating income increased by approximately 60% to 70% compared to the prior year period while adjusted cash flow increased approximately 35% to 40%.
Caesars reopened Harrah’s Bossier City and Harrah’s Louisiana Downs in Louisiana on May 18, Harrah’s Gulf Coast and Horseshoe Tunica in Mississippi on May 21, Horseshoe Council Bluffs in Iowa on June 1, and one Harrah’s North Kansas City in Missouri on June 1.
The Eldorado-Caesars merger, which was announced almost a year ago, still requires the approval of the Federal Trade Commission and gaming regulators in Nevada, New Jersey, and Indiana. The merger will give the combined company – which will be controlled by Eldorado management – control of some 60 properties in 16 states.
Reno-based Eldorado announced several financial transactions Monday that are intended to strengthen its balance sheet as it moves toward closing the Caesars deal, possibly by the end of June.
Eldorado is amending its current operating lease on casinos owned by real estate investment trust Gaming and Leisure Properties, will enter into a $400 million, five-year mortgage with VICI Properties for the 500,000 square-foot Caesars Forum on the Strip, and is selling 23 acres of undeveloped Strip land to VICI for $103.5 million.
In a statement Tuesday morning, VICI said the 23 acres – which is behind Harrah’s Las Vegas, The Linq, and Flamingo Las Vegas – would join with an existing 27 acres owned by VICI – behind Bally’s Las Vegas, Paris Las Vegas, and Planet Hollywood – to give the REIT some 50 acres of undeveloped land east of the Strip and adjacent to the Las Vegas Monorail.
“These investments express VICI’s strong conviction in Caesars’ market leadership, in Las Vegas as the world’s foremost convention destination and in Strip-proximate land as an opportunity to capitalize on the long-term growth of Las Vegas,” VICI CEO Ed Pitoniak said.
Eldorado also announced plans to sell 18 million shares of stock with the net proceeds to be used for general corporate purposes.
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“The announcements reaffirm both Eldorado and VICI’s confidence in the Caesars acquisition closing, though seemingly more likely in July than June,” Jefferies gaming analyst David Katz told investors.
Shares of Eldorado closed at $40.79 on the New York Stock Exchange, up $2.35 or 6.11%. Caesars closed at $12.06 on the Nasdaq, up 35 cents or 2.99%. VICI closed at $22.37 on the New York Stock Exchange, down 46 cents or 2.01%.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
