Caesars Entertainment(CZR) - 2020 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This part covers the company's unaudited financial statements, management's discussion, market risk, and internal controls Item 1. FINANCIAL STATEMENTS This section presents the unaudited consolidated financial statements of Eldorado Resorts, Inc. for the three months ended March 31, 2020, and 2019, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with condensed notes detailing accounting policies, significant transactions, and financial impacts Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity | ASSETS (in thousands) | March 31, 2020 (unaudited) | December 31, 2019 | | :-------------------- | :------------------------- | :------------------ | | Cash and cash equivalents | $671,747 | $206,317 | | Total current assets | $1,242,406 | $604,643 | | Property and equipment, net | $2,455,332 | $2,614,524 | | Goodwill | $810,187 | $909,717 | | Total assets | $5,891,172 | $5,640,553 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | | | | Current portion of long-term debt | $246,109 | $246,175 | | Total current liabilities | $771,008 | $688,446 | | Long-term debt, less current portion | $2,780,691 | $2,324,541 | | Total liabilities | $4,950,963 | $4,523,296 | | Total stockholders' equity | $940,209 | $1,117,257 | | Total liabilities and stockholders' equity | $5,891,172 | $5,640,553 | - The company's cash and cash equivalents significantly increased from $206.3 million at December 31, 2019, to $671.7 million at March 31, 2020, primarily due to borrowings under its revolving credit facility[8][225] - Total assets increased by $250.6 million, from $5,640.6 million to $5,891.2 million, while total liabilities increased by $427.7 million, from $4,523.3 million to $4,951.0 million, leading to a decrease in total stockholders' equity[8] Consolidated Statements of Operations This section details the company's revenues, expenses, and net income or loss over specific periods | (dollars in thousands, except per share data) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net revenues | $473,069 | $635,823 | | Total operating expenses | $588,161 | $533,248 | | Operating (loss) income | $(123,180) | $123,604 | | Total other expense | $(89,630) | $(74,970) | | (Loss) income before income taxes | $(212,810) | $48,634 | | Benefit (provision) for income taxes | $37,172 | $(10,405) | | Net (loss) income | $(175,638) | $38,229 | | Net (loss) income per share of common stock: | | | | Basic | $(2.25) | $0.49 | | Diluted | $(2.25) | $0.49 | - The company reported a significant net loss of $175.6 million for the three months ended March 31, 2020, a substantial decline from a net income of $38.2 million in the prior-year period, primarily due to the impact of COVID-19 and related impairment charges[11][39][202] - Net revenues decreased by 25.6% to $473.1 million, and operating income swung from a $123.6 million gain to a $123.2 million loss, largely driven by casino closures and impairment charges[11][200][201] Consolidated Statements of Comprehensive (Loss) Income This section presents the comprehensive loss, which mirrors the net loss for the period | (dollars in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--------------------- | :-------------------------------- | :-------------------------------- | | Net (loss) income | $(175,638) | $38,229 | | Other comprehensive income, net of tax | — | — | | Comprehensive (loss) income, net of tax | $(175,638) | $38,229 | - Comprehensive loss for the three months ended March 31, 2020, mirrored the net loss at $175.6 million, with no other comprehensive income or loss reported[14] Consolidated Statements of Stockholders' Equity This section outlines changes in stockholders' equity, primarily due to net loss and stock awards | (dollars in thousands) | Balance, Dec 31, 2019 | Issuance of restricted stock units | Net loss | Shares withheld related to net share settlement of stock awards | Balance, Mar 31, 2020 | | :--------------------- | :-------------------- | :--------------------------------- | :------- | :------------------------------------------------------------ | :-------------------- | | Total Stockholders' Equity | $1,117,257 | $5,742 | $(175,638) | $(7,152) | $940,209 | - Total stockholders' equity decreased from $1,117.3 million at December 31, 2019, to $940.2 million at March 31, 2020, primarily due to the net loss of $175.6 million[17] Consolidated Statements of Cash Flows This section details cash flows from operating, investing, and financing activities | (dollars in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $30,524 | $65,440 | | Net cash (used in) provided by investing activities | $(13,089) | $129,505 | | Net cash provided by (used in) financing activities | $447,739 | $(209,826) | | Increase (decrease) in cash, cash equivalents and restricted cash | $465,174 | $(14,881) | | Cash, cash equivalents and restricted cash, end of period | $681,752 | $231,810 | - Net cash provided by operating activities decreased to $30.5 million in Q1 2020 from $65.4 million in Q1 2019, primarily due to cash used for operating expenses following casino closures[21][227] - Investing activities shifted from providing $129.5 million in Q1 2019 (due to asset sales) to using $13.1 million in Q1 2020 (due to capital expenditures and refunded deposits)[21][228](index=228&type