Caesars Entertainment, Inc. Reports Fourth Quarter and Full Year 2022 Results
Caesars Entertainment reported strong fourth quarter and full-year results for 2022. Fourth quarter GAAP net revenues hit $2.8 billion, up from $2.6 billion year-over-year, with a reduced net loss of $148 million compared to a loss of $434 million in the prior year. Same-store Adjusted EBITDA surged to $957 million, reflecting growth across Las Vegas and Regional segments. For the full year, revenues reached $10.8 billion, a significant increase from $9.6 billion, and net loss narrowed to $899 million from $1.0 billion. Caesars also highlighted reduced total debt by over $1.2 billion and a strong foundation for 2023, buoyed by enhanced consumer demand in all verticals.
- Fourth Quarter GAAP net revenues increased by 8.3% year-over-year to $2.8 billion.
- Fourth Quarter same-store Adjusted EBITDA rose to $957 million, a substantial increase from $581 million in the prior year.
- Full Year revenues reached $10.8 billion, up from $9.6 billion in 2021.
- Improved net loss in the fourth quarter at $148 million compared to $434 million in the previous year.
- Permanent total debt reduction of over $1.2 billion during 2022.
- Fourth Quarter GAAP net loss of $148 million indicates ongoing financial challenges.
- Caesars Digital segment continues to show losses, reporting a loss of $35 million in Q4.
Fourth Quarter Results:
- GAAP net revenues of
$2.8 billion $2.6 billion - GAAP net loss of
$148 million $434 million - Same-store Adjusted EBITDA of
$957 million $581 million - Same-store Adjusted EBITDA, excluding our Caesars Digital segment, of
$962 million $886 million
Full Year Results:
- GAAP net revenues of
$10.8 billion $9.6 billion - GAAP net loss of
$899 million $1.0 billion - Same-store Adjusted EBITDA of
$3.2 billion $3.0 billion - Same-store Adjusted EBITDA, excluding our Caesars Digital segment, of
$3.9 billion $3.5 billion
Fourth Quarter and Full Year 2022 Financial Results Summary and Segment Information
After considering the effects of our acquisitions and 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 | |||||||
(In millions) | 2022 | 2021 | 2021 Adj.(a) | Adj. 2021 Total | |||
$ 1,154 | $ 1,040 | $ — | $ 1,040 | ||||
Regional | 1,356 | 1,364 | (4) | 1,360 | |||
Caesars Digital | 237 | 116 | — | 116 | |||
Managed and Branded | 72 | 72 | — | 72 | |||
Corporate and Other | 2 | (1) | — | (1) | |||
Caesars | $ 2,821 | $ 2,591 | $ (4) | $ 2,587 | |||
Net Revenues | |||||||||||
Years Ended | |||||||||||
(In millions) | 2022 | 2022 Adj.(a) | Adj. 2022 Total | 2021 | 2021 Adj.(a) | Adj. 2021 Total | |||||
$ 4,287 | $ — | $ 4,287 | $ 3,409 | $ — | $ 3,409 | ||||||
Regional | 5,704 | (5) | 5,699 | 5,537 | 64 | 5,601 | |||||
Caesars Digital | 548 | — | 548 | 337 | 135 | 472 | |||||
Managed and Branded | 282 | — | 282 | 278 | (28) | 250 | |||||
Corporate and Other | — | — | — | 9 | — | 9 | |||||
Caesars | $ 10,821 | $ (5) | $ 10,816 | $ 9,570 | $ 171 | $ 9,741 | |||||
Net Income (Loss) | |||||||
Three Months Ended | |||||||
(In millions) | 2022 | 2021 | 2021 Adj.(a) | Adj. 2021 Total | |||
$ 295 | $ 252 | $ — | $ 252 | ||||
Regional | (17) | 82 | 1 | 83 | |||
Caesars Digital | (35) | (360) | — | (360) | |||
Managed and Branded | 20 | 28 | (10) | 18 | |||
Corporate and Other | (411) | (436) | — | (436) | |||
Caesars | $ (148) | $ (434) | $ (9) | $ (443) | |||
Net Income (Loss) | |||||||||||
Years Ended | |||||||||||
(In millions) | 2022 | 2022 Adj.(a) | Adj. 2022 Total | 2021 | 2021 Adj.(a) | Adj. 2021 Total | |||||
$ 1,021 | $ — | $ 1,021 | $ 641 | $ — | $ 641 | ||||||
Regional | 463 | 2 | 465 | 637 | (44) | 593 | |||||
Caesars Digital | (790) | — | (790) | (580) | (33) | (613) | |||||
Managed and Branded | (301) | 385 | 84 | 68 | 13 | 81 | |||||
Corporate and Other | (1,292) | — | (1,292) | (1,785) | — | (1,785) | |||||
Caesars | $ (899) | $ 387 | $ (512) | $ (1,019) | $ (64) | $ (1,083) | |||||
Adjusted EBITDA (b) | |||
Three Months Ended | |||
(In millions) | 2022 | 2021 | |
$ 537 | $ 483 | ||
Regional | 443 | 430 | |
Caesars Digital | (5) | (305) | |
Managed and Branded | 20 | 18 | |
Corporate and Other | (38) | (45) | |
Caesars | $ 957 | $ 581 | |
Adjusted EBITDA (b) | |||||||
Years Ended | |||||||
(In millions) | 2022 | 2021 | 2021 Adj(a) | Adj. 2021 Total | |||
$ 1,964 | $ 1,568 | $ — | $ 1,568 | ||||
Regional | 1,985 | 1,979 | 7 | 1,986 | |||
Caesars Digital | (666) | (476) | — | (476) | |||
Managed and Branded | 84 | 87 | (4) | 83 | |||
Corporate and Other | (124) | (168) | — | (168) | |||
Caesars | $ 3,243 | $ 2,990 | $ 3 | $ 2,993 | |||
(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 | ||||
(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
(In millions) |
|
| |
Cash and cash equivalents | $ 1,038 | $ 1,070 | |
Bank debt and loans | $ 5,836 | $ 6,972 | |
Notes | 7,200 | 7,300 | |
Other long-term debt | 49 | 51 | |
Total outstanding indebtedness | $ 13,085 | $ 14,323 | |
Net debt | $ 12,047 | $ 13,253 |
As of
(In millions) | ||
Cash and cash equivalents | $ 1,038 | |
Revolver capacity (a) | 2,220 | |
Revolver capacity committed to letters of credit | (82) | |
Revolver capacity committed as regulatory requirement | (48) | |
Total | $ 3,128 |
(a) | Revolver capacity includes | ||||
"We permanently reduced total debt by over
Reconciliation of GAAP Measures to Non-GAAP Measures
Adjusted EBITDA (described below), a non-GAAP financial measure, has been presented as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry and we believe that this non-GAAP supplemental information will be helpful in understanding our ongoing operating results. Management has historically used Adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of our core operating results and as a means to evaluate period-to-period results. Adjusted EBITDA represents net income (loss) before interest income and interest expense, net of interest capitalized, (benefit) provision for income taxes, unrealized (gain) loss on investments and marketable securities, depreciation and amortization, stock-based compensation, impairment charges, equity in (income) loss of unconsolidated affiliates, (gain) loss on the sale or disposal of property and equipment, changes in the fair value of certain derivatives, and transaction costs associated with our acquisitions and divestitures such as (gain) loss on sale, sign-on and retention bonuses, severance expense, business integration and optimization costs, contract exit or termination costs, and certain litigation awards or regulatory settlements. Adjusted EBITDA also excludes the expense associated with certain of our leases as these transactions were accounted for as financing obligations and the associated expense is included in interest expense. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with GAAP. It is unaudited and should not be considered an alternative to, or more meaningful than, net income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in Adjusted EBITDA include capital expenditures, interest payments, income taxes, debt principal repayments, payments under our leases with affiliates of
Conference Call Information
The Company will host a conference call to discuss the Company's results on
Once registered, participants will receive an email with dial-in number and unique PIN number to access the live event. The call will also be accessible on the Investor Relations section of
About
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results and other information that is not historical information. When used in this press release, the terms or phrases such as "anticipates," "believes," "projects," "plans," "intends," "expects," "might," "may," "estimates," "could," "should," "would," "will likely continue," and variations of such words or similar expressions are intended to identify forward-looking statements. Although our expectations, beliefs and projections are expressed in good faith and with what we believe is a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release. These risks and uncertainties include: (a) impacts of economic and market conditions; (b) our ability to successfully operate our digital betting and iGaming platform and expand its user base; (c) risks associated with our leverage and our ability to reduce our leverage; (d) the effects of competition on our business and results of operations; (e) the effects of inflation, increased inflation, supply chain constraints and continuing impacts of COVID-19 and (f) additional factors discussed in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent Annual Reports on Form 10-K and Quarterly Report on Form 10-Q as filed with the
In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. These forward-looking statements speak only as of the date of this press release, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.
Source:
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
Three Months Ended | Years Ended | ||||||
(In millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||
REVENUES: | |||||||
Casino | $ 1,551 | $ 1,519 | $ 5,997 | $ 5,827 | |||
Food and beverage | 424 | 343 | 1,596 | 1,140 | |||
Hotel | 511 | 429 | 1,957 | 1,551 | |||
Other | 335 | 300 | 1,271 | 1,052 | |||
Net revenues | 2,821 | 2,591 | 10,821 | 9,570 | |||
EXPENSES: | |||||||
Casino | 799 | 1,018 | 3,526 | 3,129 | |||
Food and beverage | 251 | 223 | 935 | 707 | |||
Hotel | 138 | 121 | 529 | 438 | |||
Other | 113 | 111 | 411 | 373 | |||
General and administrative | 523 | 498 | 2,068 | 1,782 | |||
Corporate | 78 | 81 | 286 | 309 | |||
Impairment charges | 108 | 102 | 108 | 102 | |||
Depreciation and amortization | 295 | 284 | 1,205 | 1,126 | |||
Transaction and other costs | 28 | 31 | 14 | 144 | |||
Total operating expenses | 2,333 | 2,469 | 9,082 | 8,110 | |||
Operating income | 488 | 122 | 1,739 | 1,460 | |||
OTHER EXPENSE: | |||||||
Interest expense, net | (585) | (561) | (2,265) | (2,295) | |||
Loss on extinguishment of debt | (52) | (96) | (85) | (236) | |||
Other income (loss) | (7) | (22) | 46 | (198) | |||
Total other expense | (644) | (679) | (2,304) | (2,729) | |||
Loss from continuing operations before income taxes | (156) | (557) | (565) | (1,269) | |||
Benefit (provision) for income taxes | (6) | 116 | 41 | 283 | |||
Loss from continuing operations, net of income taxes | (162) | (441) | (524) | (986) | |||
Discontinued operations, net of income taxes | — | 8 | (386) | (30) | |||
Net loss | (162) | (433) | (910) | (1,016) | |||
Net (income) loss attributable to noncontrolling interests | 14 | (1) | 11 | (3) | |||
Net loss attributable to Caesars | $ (148) | $ (434) | $ (899) | $ (1,019) | |||
Net income (loss) per share - basic and diluted: | |||||||
Basic loss per share from continuing operations | $ (0.70) | $ (2.07) | $ (2.39) | $ (4.69) | |||
Basic income (loss) per share from discontinued operations | — | 0.04 | (1.80) | (0.14) | |||
Basic loss per share | $ (0.70) | $ (2.03) | $ (4.19) | $ (4.83) | |||
Diluted loss per share from continuing operations | $ (0.70) | $ (2.07) | $ (2.39) | $ (4.69) | |||
Diluted income (loss) per share from discontinued | — | 0.04 | (1.80) | (0.14) | |||
Diluted loss per share | $ (0.70) | $ (2.03) | $ (4.19) | $ (4.83) | |||
Weighted average basic shares outstanding | 215 | 214 | 214 | 211 | |||
Weighted average diluted shares outstanding | 215 | 214 | 214 | 211 | |||
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO CAESARS TO ADJUSTED EBITDA (UNAUDITED) | |||
Three Months Ended | |||
(In millions) | 2022 | 2021 | |
Net loss attributable to Caesars | $ (148) | $ (434) | |
Net income (loss) attributable to noncontrolling interests | (14) | 1 | |
Discontinued operations, net of income taxes | — | (8) | |
(Benefit) provision for income taxes | 6 | (116) | |
Other loss (a) | 7 | 22 | |
Loss on extinguishment of debt | 52 | 96 | |
Interest expense, net | 585 | 561 | |
Impairment charges | 108 | 102 | |
Depreciation and amortization | 295 | 284 | |
Transaction costs and other (b) | 42 | 55 | |
Stock-based compensation expense | 24 | 18 | |
Adjusted EBITDA | $ 957 | $ 581 | |
Years Ended | |||
(In millions) | 2022 | 2021 | |
Net loss attributable to Caesars | $ (899) | $ (1,019) | |
Net income (loss) attributable to noncontrolling interests | (11) | 3 | |
Discontinued operations, net of income taxes | 386 | 30 | |
Benefit for income taxes | (41) | (283) | |
Other (income) loss (a) | (46) | 198 | |
Loss on extinguishment of debt | 85 | 236 | |
Interest expense, net | 2,265 | 2,295 | |
Impairment charges | 108 | 102 | |
Depreciation and amortization | 1,205 | 1,126 | |
Transaction costs and other (b) | 90 | 220 | |
Stock-based compensation expense | 101 | 82 | |
Adjusted EBITDA | 3,243 | 2,990 | |
Pre-consolidation, pre-acquisition, and pre-disposition EBITDA, net (c) | — | 3 | |
Total Adjusted EBITDA | $ 3,243 | $ 2,993 | |
(a) | Other (income) loss for the three months and year ended | ||||
(b) | Transaction costs and other primarily includes costs related to the William Hill Acquisition, the Merger, various contract or license termination exit costs, professional services for integration activities and non-cash changes in equity method investments partially offset by gains resulting from insurance proceeds received in excess of the respective carrying value of the assets damaged at | ||||
(c) | Results of operations for Horseshoe Baltimore for periods prior to the consolidation resulting from the Company's increase in its ownership interest on | ||||
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