Caesars Entertainment reports second quarter 2015 results which highlights certain GAAP and non-GAAP financial measures on a consolidated basis.

Caesars Entertainment Corporation is primarily a holding company with no independent operations of its own. It owns Caesars Entertainment Resort Properties, LLC (“CERP”) and an interest in Caesars Growth Partners, LLC (“CGP”). It also owns 89% of Caesars Entertainment Operating Company, Inc. (“CEOC”). The results of CEOC and its subsidiaries are no longer consolidated with CEC subsequent to CEOC’s Chapter 11 filing on January 15. Caesars Enterprise Services, LLC (“CES”) provides certain enterprise services to properties owned and/or operated by CERP, CGP and CEOC, and this press release at times refers to system-wide trends and dynamics, inclusive of CEOC and its subsidiaries. In the discussion in this release, the word “CEC” refers to Caesars Entertainment Corporation without its consolidated entities, and the words “Company,” “Caesars,” “Caesars Entertainment,” “Continuing CEC,” “we,” and “our” refer to Caesars Entertainment Corporation and its consolidated entities, and not CEOC unless otherwise stated or the context requires otherwise.

Highlights:

  • Net revenues for Continuing CEC increased 17.4% year-over-year to $1,141 million mainly due to strong performance at Caesars Interactive Entertainment (“CIE”), the openings of Horseshoe Baltimore and The Cromwell, the renovation of The LINQ Hotel & Casino and continued growth in hospitality amenities in Las Vegas.
  • Adjusted EBITDA for Continuing CEC grew 55.6% year-over-year to $347 million primarily driven by marketing and operational efficiencies and other EBITDA enhancing initiatives, which resulted in strong flow through from top-line growth.
  • CERP results reflect increased gaming revenues due to increases in slot revenue and favorable hold year-over-year in Las Vegas, higher room revenues driven by cash ADR growth, and improved hotel and food and beverage margins.
  • CGP performance attributable to record results in its social and mobile games business, the additions of Horseshoe Baltimore and Cromwell and the renovation of The LINQ Hotel & Casino.

Supplemental materials have been posted on the Caesars Entertainment Investor Relations website at http://investor.caesars.com/financials.cfm. Chatham Lodging Trust reports second quarter 2015 net income of $12.8 million compared to $65.3 million in the same quarter for 2014. Portfolio RevPAR up 6.4%. Second Quarter 2015 Highlights

  • Portfolio RevPAR – Increased hotel RevPAR 6.4 percent to $139 for Chatham’s 35, wholly owned hotels, within the company’s guidance range of 6-8 percent. Portfolio RevPAR increased 7.0 percent, excluding the Homewood Suites Orlando-Maitland.
  • Adjusted FFO – Rose 84 percent to $27.2 million. Adjusted FFO per diluted share advanced 27 percent to $0.71 from $0.56, within the company’s guidance range of $0.69-$0.74 per share.
  • Operating Margins – Improved hotel EBITDA margins 240 basis points to an industry leading 46.0 percent. Year-over-year comparable hotel EBITDA margins advanced 60 basis points for the quarter (includes all hotels regardless of ownership).
  • Acquisitions – No acquisitions were closed during the second quarter. Subsequent to quarter end, the company announced that it has acquired the 81-room Residence Inn Boston (Dedham), Mass., and is under contract to purchase the 105-room Residence Inn Fort Lauderdale Intracoastal/ Il Lugano. The Fort Lauderdale transaction is expected to close in late August, following customary due diligence. The company is acquiring the two hotels for $55.5 million, or approximately $298,000 per room.

To view full second quarter financial results please visit: http://phx.corporate-ir.net/phoenix.zhtml?c=237429&p=irol-newsArticle&ID=2075945