Caesars Entertainment(US:CZR)2020-05-12 01:11Financial Data and Key Metrics Changes - In Q1 2020, net revenue decreased by 13.6% year-over-year to $1.8 billion, with adjusted EBITDAR declining 46.3% to $302 million [24][32] - For the first two months of Q1, net revenue was up 12% year-over-year, and adjusted EBITDAR increased 28.7% [23] - March revenue was 56% lower than the prior year due to COVID-19 related shutdowns [24] Business Line Data and Key Metrics Changes - Las Vegas segment saw a 13.9% year-over-year decline in net revenue to $822 million, with adjusted EBITDAR down 39.7% [25][26] - Other U.S. segment net revenue totaled $874 million, down 13.5% year-over-year, with adjusted EBITDAR decreasing 50.2% [27] - The "All Other" segment, including international operations, reported net revenues of $132 million, down 12% year-over-year [29] Market Data and Key Metrics Changes - Q1 occupancy in Las Vegas decreased to 77.5% from 95% in Q1 2019, with RevPAR declining 19.6% to $120 [26] - Significant cancellations of hotel and convention reservations occurred due to property closures [26] Company Strategy and Development Direction - The company is focused on preserving liquidity, having drawn down $1.14 billion under revolving credit facilities, ending the quarter with approximately $2.7 billion in unrestricted cash [32] - Plans to phase openings of properties based on demand and contractual commitments, with health and safety initiatives being prioritized [17][19] - The company is evaluating cost centers to ensure prudent spending as properties reopen [33] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the timing of reopening and consumer behavior post-reopening, but noted a strong connection with guests and geographic diversity as advantages [9][10] - There is optimism about a quicker recovery in regional markets compared to Las Vegas, with encouraging signs of demand returning [35][50] Other Important Information - The company has established an employee assistance fund, Caesars Cares, to support team members affected by COVID-19 [13] - A sale of Bally's Atlantic City for approximately $25 million is in progress, subject to regulatory approvals [20] Q&A Session Summary Question: Insights on customer types and market recovery - Management believes regional markets will recover faster due to less reliance on air travel, with positive signs for Las Vegas bookings in Q4 [35][36] Question: Breakeven points for revenue - Breakeven for regional properties is approximately 30% of prior revenues, while Las Vegas requires about 50% [44][46] Question: Online gambling performance - Online gambling in New Jersey has seen significant growth, with plans to expand into other states [53][54] Question: Reopening strategies - Reopening will be phased, prioritizing hotel guests and high-value customers, with marketing efforts adjusted based on demand [62][63]