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CZR Caesars Entertainment

Filed: 4 May 21, 8:00pm
Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
Exhibit. Supplemental Consolidating Financial Information
The following tables present the balance sheets as of March 31, 2021 and December 31, 2020, statements of operations and cash flows for the three months ended March 31, 2021 and 2020, and Adjusted EBITDA for the three months ended March 31, 2021 of Caesars Resort Collection, LLC (“CRC”), as it consolidates into CEI as a wholly-owned subsidiary. “Other Operations, Eliminations” presents the operations of CEI’s other subsidiaries, including eliminations of intercompany transactions. CEI consolidated balances do not include CRC until the period starting from July 20, 2020.
The consolidating condensed balance sheets as of March 31, 2021 and December 31, 2020 are as follows:

March 31, 2021December 31, 2020
(In millions)CRCOther Operations,
Eliminations
CEI ConsolidatedCRCOther Operations,
Eliminations
CEI Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$475 $1,319 $1,794 $374 $1,384 $1,758 
Restricted cash and investments20 2,053 2,073 2,012 2,021 
Accounts receivable, net267 57 324 262 76 338 
Due from affiliates357 (309)48 613 (569)44 
Inventories28 13 41 30 14 44 
Prepayments and other current assets145 91 236 157 93 250 
Assets held for sale1,479 567 2,046 1,500 712 2,212 
Total current assets2,771 3,791 6,562 2,945 3,722 6,667 
Investments in and advances to unconsolidated affiliates— 263 263 — 173 173 
Property and equipment, net11,586 2,497 14,083 11,763 2,570 14,333 
Gaming rights and other intangibles, net3,136 1,099 4,235 3,151 1,102 4,253 
Goodwill8,878 851 9,729 8,872 851 9,723 
Other assets, net1,412 (265)1,147 1,412 (176)1,236 
Total assets$27,783 $8,236 $36,019 $28,143 $8,242 $36,385 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable$112 $36 $148 $110 $55 $165 
Accrued interest138 100 238 46 183 229 
Accrued other liabilities878 429 1,307 827 412 1,239 
Due to affiliates20 (20)— 12 (12)— 
Current portion of long-term debt67 — 67 67 — 67 
Liabilities related to assets held for sale645 99 744 646 239 885 
Total current liabilities1,860 644 2,504 1,708 877 2,585 
Long-term financing obligation11,100 1,234 12,334 11,064 1,231 12,295 
Long-term debt8,325 5,778 14,103 8,304 5,769 14,073 
Long-term debt to related party15 (15)— 15 (15)— 
Deferred income taxes1,586 (495)1,091 1,223 (57)1,166 
Other long-term liabilities558 799 1,357 610 622 1,232 
Total liabilities23,444 7,945 31,389 22,924 8,427 31,351 
STOCKHOLDERS' EQUITY:


Caesars stockholders’ equity4,322 291 4,613 5,202 (186)5,016 
Noncontrolling interests17 — 17 17 18 
Total stockholders’ equity4,339 291 4,630 5,219 (185)5,034 
Total liabilities and stockholders’ equity$27,783 $8,236 $36,019 $28,143 $8,242 $36,385 




Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
The consolidating condensed statements of operations for the three months ended March 31, 2021 and 2020 are as follows:
Three Months Ended March 31, 2021Three Months Ended March 31, 2020
(In millions)CRCOther Operations,
Eliminations
CEI Consolidated
CRC (a)
Other Operations,
Eliminations
CEI Consolidated
REVENUES:
Casino and pari-mutuel commissions$759 $381 $1,140 $945 $(605)340 
Food and beverage137 29 166 329 (273)56 
Hotel175 40 215 317 (269)48 
Other156 22 178 236 (207)29 
Net revenues1,227 472 1,699 1,827 (1,354)473 
EXPENSES:
Casino and pari-mutuel commissions360 181 541 581 (402)179 
Food and beverage85 21 106 261 (208)53 
Hotel66 15 81 115 (93)22 
Other65 68 133 (124)
General and administrative265 101 366 413 (315)98 
Corporate48 18 66 49 (33)16 
Impairment charges— — — 65 96 161 
Depreciation and amortization217 48 265 255 (205)50 
Transaction costs and other operating costs10 10 20 13 (5)
Total operating expenses1,116 397 1,513 1,885 (1,289)596 
Operating (loss) income111 75 186 (58)(65)(123)
OTHER EXPENSE:
Interest expense, net(401)(162)(563)(316)249 (67)
Other income (loss)(4)(129)(133)13 (36)(23)
Total other expense(405)(291)(696)(303)213 (90)
Income (loss) from continuing operations before income taxes(294)(216)(510)(361)148 (213)
Benefit (provision) for income taxes70 79 71 (34)37 
Net income (loss) from continuing operations, net of income taxes(224)(207)(431)(290)114 (176)
Discontinued operations, net of income taxes— — — — 
Net income (loss)(217)(207)(424)(290)114 (176)
Net income (loss) attributable to noncontrolling interests— (1)— 
Net income (loss) attributable to Caesars$(217)$(206)$(423)$(289)$113 $(176)
____________________
(a)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.


Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)

The consolidating condensed statements of cash flows for the three months ended March 31, 2021 and 2020 are as follows:

Three Months Ended March 31, 2021Three Months Ended March 31, 2020
(In millions)CRCOther Operations,
Eliminations
CEI Consolidated
CRC (a)
Other Operations,
Eliminations
CEI Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities$134 $(89)$45 $(102)$132 $30 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net(38)(27)(65)(111)88 (23)
Acquisition of gaming rights— (2)(2)— — — 
Proceeds from sale of businesses, property and equipment, net of cash sold— 10 10 
Proceeds from the sale of investments— 42 42 — — — 
Proceeds from insurance— 26 26 — — — 
Investments in unconsolidated affiliates— (30)(30)— — — 
Net cash (used in) provided by investing activities(35)10 (25)(111)98 (13)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt and revolving credit facilities— — — 1,137 (672)465 
Repayments of long-term debt and revolving credit facilities(16)— (16)(16)(10)
Financing obligation payments— — — (2)— 
Transactions with parent— — — (5)— 
Taxes paid related to net share settlement of equity awards— (14)(14)— (7)(7)
Net cash (used in) provided by financing activities(16)(14)(30)1,114 (666)448 
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Cash flows from operating activities26 27 — — — 
Net cash from discontinued operations26 27 — — — 
Effect of foreign currency exchange rates on cash— 21 21 — — — 
Increase (decrease) in cash, cash equivalents and restricted cash109 (71)38 901 (436)465 
Cash, cash equivalents and restricted cash, beginning of period393 3,823 4,216 1,422 (1,205)217 
Cash, cash equivalents and restricted cash, end of period$502 $3,752 $4,254 $2,323 $(1,641)$682 
____________________
(a)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.


Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)

The reconciliations of net income (loss) attributable to Caesars to Adjusted EBITDA for the three months ended March 31, 2021 are as follows:
Three Months Ended March 31, 2021
(In millions)CRCOther Operations,
Eliminations
CEI Consolidated
Net loss attributable to Caesars$(217)$(206)$(423)
Net loss attributable to noncontrolling interests— (1)(1)
Net income from discontinued operations(7)— (7)
Income tax benefit(70)(9)(79)
Other loss129 133 
Interest expense401 162 563 
Depreciation and amortization217 48 265 
Transaction costs and other operating costs10 10 20 
Stock-based compensation expense10 13 23 
Other items11 
Adjusted EBITDA$356 $149 $505