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CZR Caesars Entertainment

Participants
Steven Rubis VP, IR
Tony Rodio CEO
Eric Hession CFO
Joyce Arpin SVP, Finance and Treasurer
Carlo Santarelli Deutsche Bank
Dan Politzer JP Morgan
Chad Beynon Macquarie
Harry Curtis Instinet
Shaun Kelley Bank of America
Thomas Allen Morgan Stanley
Jared Shojaian Wolfe Research
Barry Jonas SunTrust
Call transcript
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Operator

Hello and welcome to today's webcast, Caesars Entertainment Corporation 2019 First Quarter Earnings Call. My name is Leeway, and I'll be your event specialist today. Please note that all lines have been placed on mute to prevent any background noise, and that today's webcast is being recorded.

During the presentation, we’ll have a question-and-answer session. [Operator Instructions] It is now my pleasure to turn today's program over to Mr. of for President Entertainment. Vice Rubis, Investor Caesars Relations Steven The yours. floor is

Steven Rubis

welcome Good Conference Caesars Leeway. you, to Call. afternoon. Earnings Thank XXXX And the Quarter Entertainment First

Joining copy Joyce Also, please are a conference of our caesars.com. Arpin, our Tony call the in Vice President website call, slides Corporation Eric me Form and this and replay Chief file Relations press Senior Caesars Treasurer. release, Finance Executive presentation the A the Hession, and a XX-Q. and X-K, to copy that this of section Chief the note we available Officer; are Investor Officer; release SEC a Financial of to in today Form will prior from of at furnished earnings of Rodio, Entertainment earnings

I reference measures. Before forward-looking include of safe remind like would through X we X, certain to get definitions slides and which you underway, non-GAAP harbor disclaimers statements, to

statements Our Private forward-looking comments by Reform today Litigation the Securities will include as defined Act.

reflect differ Forward-looking to may have or results Actual our and projected we hold due any revise our them. SEC forward-looking to risks we other unanticipated or circumstances today's not impact our disclosed unforeseen may certain no that weather There control. in filings are statements and that obligation those fluctuations, date, including from update statements those materially as the of uncertainties, do in with expectations results.

Holdings therefore, of that of properties the of in performance. to GAAP Caesars refers acquisition acquisition of Holdings reflects the excludes addition, unless prior and to results Centaur versus In include hold-adjusted hold Centaur quarter XXXX in not prior of expectations. QX closed results acquisition all the the Therefore, to note otherwise do our Centaur on same-store third portfolio XXXX. our U.S. Also Entertainment Centaur term the The stated. performance

non-GAAP You call the XX. on Tony. over will to can GAAP reconciliations slide starting of now find figures and I turn

Tony Rodio

pleased Steve. of to I'm much, the good join today's afternoon, Entertainment. And as very incoming CEO everybody. call Caesars you Thank very

gaming important course at this industry, of for the the occasions lead on to years Entertainment is respect worked the tremendous more in me. a creating shareholders And value Caesars so be I've Over incredible a somewhat to of team and Caesars critically return I and who our this homecoming day. X my separate XX couldn't to I excited guests company's history. time and plus Harrah's, amount at serving in each for have members, every are dedicated of our for the

the in role the a will to I for the as announced, up new very of begin well support moment officially team, course a with to those value, of the to in on for to running. great progress company. can I've intend Mark my value. are provide at we that the opportunity my up In wrapping looking growth even to same Over the of the today I which if I diverse X. to doing we beginning making restructuring, Frissora as additional that closely of our to here employed eliminate for The smooth substantial more the opportunities. the identifying always conclusion at ground process has look look towards a thank the on to foundation, brands, and loyalty powerful was working team last and apply be Rewards previous company's weeks speak network I along members create company I activities several role want we strong combination the to people me value. of can new the and Caesars. and management I've opportunities do and management we made take have team, been Caesars properties at to A Caesars partnership the I Caesars. May begin the and confident senior an transition At hit look commonsense and add to I'm didn't with transitioning forward at appointment since forward that much strategy core, and do, meantime, take had program remiss to of not this I'd since create his build of things the leadership the

to corporate I we success. identify will keyword mix are grow innovation act and management growth in across quickly like collectively support properties that that me determine profitably study quite operations -- optimized our the with and team up and in work speed, our entrepreneurs. to and center. profitably, our think bit culture a all team ensure market from about shared tactics the and something hear operating have talk As will to are members here I share get our invested I detail, which That's a want the and in of to and marketing to our strategies team

now our can of to Eric be the in turn discuss I Eric, the Company's work call the Before like and team to will all tactical formulate plans begin be our with as results. management provide that and course. that, due intend updates a executing I you transparent very turn With plan. I on to to to stakeholders to to call I'd assure let I with relevant the financial over quickly me intend over

Eric Hession

to Thanks, a our to healthy to solid discuss demand turning over Tony. Caesars year, a on a in same-store ongoing consumer driven billion in year-over-year, focus and totaled Centaur first was by our drove that of our Vegas food by Vegas in as $XXX by same-store year-over-year across grew closures City the up up I'll instances. impact in quarter, on competitive high before environment essentially some Las call a Atlantic was in properties and Corporation to in X.X% results some driven XX environment period. partially improved quarter a basis improvement on execution. $X.X performance and XX.X% level approximately labor Adjusted On the and basis. the regional XX.X%, our million, a business in delivered few of basis, and heightened offset Adjusted gross detail. in X.X% gross operational strong net or represented Vegas. updates of Joyce EBITDAR weather EBITDAR a Net X.X% and our inclement acquisition beverages a hotel the On margin give represented Las provide labor start Las strength by results then a XXX over flat trailing while of driven marketing gaming, revenues primarily XX.X% points both a revenues the basis the of reflecting greater the Entertainment year-over-year, overview improvements. our prior marketing a basis our point costs basis, XX-month revenues, XX of costs year domestic point improvement revenue, and

to quarter. and labor improve addition achieved continuing level In margins, record in we the and to customer marketing experience scores service

as and majority the cost-reduction of Centaur, additional I'll and each offset EBITDAR headwinds corporate $XX labor performance latest detail highlights a line performance integrated property, benefits annualized ongoing at cost approximately able recent savings growth continues in the these. cost At now XXXX, our achieved our marketing to annualized year Northern XX% Caesars exceeded from the few Harrah's database the Rewards newest synergies This our to us anticipate labor from in initiative. we cost with July where with progress table a headcount in in of legislation full than to year, would across $XXX remains effort providing the on legislation -- million to we've quarter allow spend has thus our state. within provide of basis. anticipate in sports successfully level, recently our effort, by cited for and We're we gains confident minutes our both by Indiana. we property We the call of implementing we earlier realize drive our operational betting the of opening pleased of growing more internal the introduce growing the being in expectations, continued in full of business tribal properties, achieving The expected and labor-related the quarter management driven in approximately that is been savings. include in of along While Centaur XXXX. $XX on this years combination with California. centralized at contribution strength If efficiency sports solid games goal and completed in plan million Key we margins March quarter. structure. in continued Centaur and Through since delivering first of the our betting and EBITDAR the Centaur pending the we've enable remain our a the reduced million in fourth would momentum enacted, in anticipated state

Philadelphia sportsbook to with total during the business of grow continue bringing well and Casino our the our state Racetrack, new XX, located quarter We betting the Harrah's introduction sportsbooks of a with sports of of to Nevada. first outside as at X number

it's share, While terms solid next facilities as regional opportunity. growth We legislation. of sportsbooks view customer continue at acquisition days opening market in early anticipate a we and XX our in still sports favorable betting to the months, additional pending

new We Caesars brand marquee with have partnerships. some Sports aligned the

draft the VIP has packages fans. NFL has exclusive in positioned and begun as more recently Super in XXX to strong football pay the and than already front partner, experienced resort dividends, of held the Caesars NFL its partnership casino As Bowl casino in The offerings million for we Nashville. engagement

excited betting this addition, come currently much In Report development to and share Turner that Bleacher directly studio more of our Caesars we'll with new Palace Report. more odds will as our the into announcement and sportsbook facilitate developing We're the it it There the place content a Bleacher about we're from partnership, and matures. app. Caesars partnership is Sports in

gaming our offering, Caesars certain access new revenue in running for with offer Under generate agreement to agreement, streams that will for multistate also addition in we its In mobile return. products the signed online will Caesars DraftKings. DraftKings jurisdictions own a market

of all this to of laws subject passage course, and gaming receipt licenses. Of applicable applicable of being

grow in to additional The tribe management in portfolio. official Additionally, our new Caesars properties our Harrah's with several as over an fees after Las more attractive held states the and the our The in property Vegas Caesars' and well property to and million opening Reward We to Me-Wuk DraftKings partner We're Program across well other in by introduce partnerships Indians California, between new the XX betting. on a just relationship American excited Northern builds we're tribal results. times. DraftKings and gaming to enables agreement, opening. collaborate which properties. years newest in agreement. new sports region. and as America about only the of business further and now multiple network will us ago, soft Buena network, shortly for its went on position Loyalty days financial capital-efficient at reached X destination benefits call provide will opened in received where I'll marking in the various Caesars sports-themed $XX Native maximum viewing renew entered strengthening and property long-standing events owned companies with way believe promote operator into, agreements was fourth to of the Caesars the generating million dating Vista Harrah's be our a annual resort as anticipate as we've sports tribes the Joyce Sacramento, The specifics brand capacity has Caesars our located back other $X turn in well outside Northern experiences communities

Joyce Arpin

more our discuss Centaur detail. results will first stated. quarter I Eric. Please in note otherwise consolidated include that results you, unless our Thank

X.X% which across hotel performance EBITDAR $XX result partially margin first million, in online New and again increased million $XXX points high-margin XX% night segment. of a points softer experienced we was increase fully verticals occupancy revenues favorable results hold-adjusted the year-over-year Las revenue Las healthy positive demand, increased double-digit year-over-year, Vegas, for $XX and Adjusted versus Vegas volumes growth Las room favorable were decline primarily up and hold new revenues growth in was in us gaming to hotel X.X% table X.X% demand verticals. up in Vegas year-over-year growth Vegas growth XXX a Chinese in F&B business occupancy Las outlets basis Vegas and delivered $XXX up XXX and bookings year-over-year overall as strength to caesars.com. occupancy cash in Overall, gaming net baccarat increasing all a from group demand X.X%. driven game between saw due generate up where at lift basis year-over-year strong all or banquet by and quarter, EBITDAR leisure revenue million. expanded we hotel a higher helped grew performance of revenues verticals. For Las RevPAR due with revenues. totaled revenues X% the higher improved slot increased volume. consumer demand last Year to in a up in The on XX.X% hotel the direct provided strong million, contributed basis levels, Strong year. X.X% up notably hold from adjusted to offset as a XX.X%, by being year-over-year, with

net the to Turning up revenues down Centaur, X.X% X.X%, U.S. other a same-store $X or segments, totaled on including billion, basis.

of extreme results by positively activity our weather across continued City Centaur promotional were portfolio. quarter in offset inclusion but competitive First partially by and impacted the regional Atlantic and

EBITDAR, X.X% Centaur. and revenue the at Adjusted headwinds revenue The of $XXX was prolonged was City, driven Centaur $XX excluding flooding. favorable $XXX excluding a XX our for Our $XX liquidity net net X.X% totaled nonrestricted Metropolis closures declines All primarily estimate quarter. Southern EBITDAR year-over-year. billion due City. Other million, down adjusted our down hold ended technology and down adjusted to EBITDAR weather for Atlantic with in properties. loss cash. points, XX.X%, segment, primarily adjusted and XX.X%, down up Adjusted investments for was or international million, conditions the basis Other in to In sports EBITDAR EBITDAR that Atlantic From year-over-year, margin or XXX million points million $X.X Indiana due the experienced partnerships. of $XX loss excluding basis a due Centaur. growth Other quarter to decline net million, million year-over-year by resulted we both revenues in infrastructure up X.X% the approximately increased U.S. We $XX All in perspective, to totaled primarily and Horseshoe properties

us ability million cash revolver. the pay giving During to million flow the the we generated quarter, of off $XXX $XXX CRC balance our from operations, on

million was March of total the quarter same-store our $XX first million capacity XX, development $XXX of CapEx. in In in spent revolver XXXX, we As $X.X and billion. a CapEx

of to of the Excluding X.X the the REIT X net sheet capitalizing payments X.X when the of time stands convertible times to and reiterate leverage lease balance lease year-end XXXX. leverage notes XXXX. compared X.X our turns times, times, over at now by We end at committed and deleveraging our target down gross our adjusted remain

in the attendance on to well shifts to the in driven Vegas Looking positioned as ahead, X.X%. we despite believe year-over-year. X.X%, calendar and term. growth and we Vegas we Vegas and margins continue EBITDAR continue X.X% quarter, events increased be are the stable, environment in to quarter-to-quarter the we growth overall the Las Las the last in XXXX, by expect to bullish city In citywide Vegas to in long Las growth benefit over view be line year's stable volatility from with expect demand deplaned and revenue holidays. convention first increased passengers Las In volumes We visitor increased

due expected the than now to we double-digit expected are stable XXXX first be we bookings strength the competition over to half our City $XX XX% of rest segment, We in XXXX. group bookings, Caesars second XXXX, half our and in is total headwind is see bookings to has low Centaur generate Other in the of of XXXX, of for the in segment. expect strong see this approximately partially arrival customers. this from across the by and catalysts basis. subside year-over-year in expect to beyond, Forum as expect XXXX April The million competition including already to of currently open XXXX. portfolio from XXXX to bookings for with representing convention in $XX Caesars And of annualize U.S. remain the million of a is opening and about versus recent above In of performance growth, we Atlantic a to in Forum which continue revenue through XXXX. growth in new million more of we Forum other $XXX to This on Raiders. $XX offset to the million. impact several in U.S. million business in $XX we expected those Total of Caesars continue In important growth

costs to in a Regarding segment, XXXX, to the operating results full drive the sequentially sports March the compared throughout sponsorships to Other for year. the and XXXX All to investments will We related taken year improve we the generate mentioned that larger expect loss in we that due this segment corporate around anticipate previously. actions technology

In net modeling expect labor a from the with of provide consider due few line to quarter. 'XX Las remain the union now pressures will for factors primarily cost expect in to qualitative quarter to expenses, Vegas, your increases. to face second in wage increased we second revenues We and

As of Vegas record last in strong Palace with experienced quarter line in quarter adjusted ever posted top gaming performance second a year. Caesars EBITDAR growth its reminder, hotel. the highest and 'XX, we in Las

quarter the second favorable in are 'XX, the Vegas with by period. quarter expectations, in tempered Las hold our of year-ago 'XX, the line For while of second

to City. the Other Our $XX pleased in with Atlantic this to impact the we from of a extreme group reflects our more operating of than the generate post weather normalized our regional low expect growth. which portfolio, represent as the segment quarter, Centaur second return expect negative competitive quarter. performance U.S. rest the early contribution Across quarter the the environment environment segment in of million were positive the double-digit first revenue offset In we the of should a segment, second in driver we EBITDAR to

in to in growth line second realize low as revenue expect transformation our EBITDAR segment, loss the from savings the In and of corporate Other 'XX, wind of with an IT adjusted investments we digits and generate is quarter down certain generate terms projects. the All that we to single

a CapEx, renovations CapEx includes million cash maintenance continue at room we to to $XXX For Harrah's in which and of Vegas XXXX, $XXX range Paris. expect for million Las

to spend includes commitment approximately Forum which a joint in is the million our expect cash to across venture CapEx, to cash million clubs We GAAP development-related Korea Korea our in Caesars $XXX the project, our consolidated. From perspective, for $XXX U.S. investments sports and

spending result, reflecting financial in $XXX a statement. capital our GAAP as million we So an additional anticipate on

the for answering regarding the the line that we'll opening discussing remind or be I'd Before to questions committee's like everyone any work. Q&A, not transaction

while he role of everyone I'd be like May Additionally, or not on or the CEO today's and the that now will call, Caesars' on take is to performance review question. the first strategy, We can assume commenting on remind process Tony X, will Q&A committee operations.

Operator

your the Carlo Santarelli first coming of We question have line Deutsche from Bank. from

Carlo Santarelli

congratulations role. Rodio, Mr. on new the

Tony Rodio

very Thank you much.

Carlo Santarelli

demand current in of group about the coming certainly I different -- outlook? a most perspective, to lot where of color trends could mix very high it kind a mixed slew guys, business a currently different you're You part messages gives obviously, just little over a and of what with of favorable bit environment pressure, -- bit the near end though around is been little here in of last confidence seeing the near- helpful seeing Las plus. bit a a of obviously Las little beyond, favorable was guys, the you seems Obviously, Vegas out maybe over a Joyce, hoping seeing some the there's that maybe you year you're broader medium-term the Vegas and as what dynamics, some term. broadly here of talk And dynamics the what's

Eric Hession

we between that volatility is that, Las I It as your Carlo, would in have mentioned, believe solid. is Joyce Eric. quarters, environment Vegas comments the quite this general, in echo does from traction We're holidays we're good demand the and FIT side. different speaking, seeing But broadly shifting the group on seeing side. also very transient to events. and the due side solid

occupancies saw, As our XX%. points to XXX were basis you up

and So the there's clearly demand hotel coming in the side. for hotel

the on QX, the As room time XXX,XXX into have books, look last approximately more same currently than we non-group year. nights we

And the that, community. perception Las So The we will beverage are gaming certainly, certainly the that company, be we of I and in patterns to year for relatively overall strong. than continue believe and some food strong think, hotel in translate think a demand. into investing incremental as continue the to I demand more general, experience and on bullish itself Vegas

Carlo Santarelli

lot may, obviously, books, that's quarter we back talked and year-over-year. it up trying spoke or about helpful. Eric, just in more I room the less and what in baseload, And XXXX on XXX,XXX that, in already and like, nights mentioned quarter just you've seems to the second quarter a very if achieved fourth non-group the you you first the a

half, out as right get the about As part that of of, the of agenda still front second you is to look in playbook for beyond, company think the of and kind now kind really baseload kind XQ? you

Eric Hession

feel efforts that quarter, the started and That's well. quarter Yes. the fourth have first it exactly We certainly through and performed we in right. second into carried the quite

see and can as in the spend. beverage occupancy evidence in and the it -- You a food but increases see also other you'll number, headline ancillary

the there anticipate are We and that an better year. from throughout because in management better do is gaps cycle, the that also on a nights risk of that perspective from earlier believe, it's course continuing the or anticipate economy don't we books having bookings certainly, the if in strategy think the certain we shifts room perspective entertainment a

Carlo Santarelli

may, Las you revenues I they felt you with know I would broadly if in period. in one for then, just in And Joyce. said question be ‘XX XQ follow-up line the Vegas XQ

the reminded Las that Vegas. in period us of another hold might there? there we in XQ be favorable have kind of You that in that missed a mindful Was mentioned I last tidbit year should then you

Joyce Arpin

cost here continued we Las second Vegas. faced Just continue in the quarter the quarter into in will pressures

late union our last renegotiated contract As you recall, we year.

wages second increase union in see year-over-year quarter. those the in the you'll So

Carlo Santarelli

So, XQ XQ, accurate? of pressure obviously, year-over-year, staying is nicely that XXXX bit margins and flat, with but broadly little ahead comfortable a

Joyce Arpin

right. That's

Operator

Politzer next of the Dan from from Your question line JP Morgan. comes

Dan Politzer

a And more more you in time these the your call, So, the the how effectively throughout if around your yet? were my market think these you to spend? reduce that -- about first difficulty] think number the out launching I effectively respect forward question this [technical rolled mentioned to could customers. is and your we of marketing last with so, you to programs regionals should on year of you going impact opportunity Have rest the of

Eric Hession

We're our control, test continually overall make those marketing spend a when for the we company of and customer efforts increased that were to particular and despite lot do having marketing were of the We we customers. slightly Yes. we marketing. we to to evaluating now tailor higher in identify continuing back, reducing campaigns. to marketing marketing can or various were level, spend the We XX% comp XXXX, really reduce in Las so elasticity XX%. We're around Vegas customer due segment remember overall, But successful if that below in the reinvestment our you expense. a

There more to and successfully it production basis that have continue we phase sales we into a coming. to that put it cut targeted technology the as force, So us that with is use some We points. marketing. help job do for by we campaigns, XXX to respect enacted even which will recently better

Dan Politzer

seeing you you guess the and, mobile you're markets can betting, with of brick-and-mortar. a your some talk have maybe trends the and about on brick-and-mortar, the I then, the between properties sports -- impact And different I few guess, some online you operate in guys differences there? jurisdictions, I and know some guys

Eric Hession

products. both properties and into also those betting online shifting We're over accept opportunities online. Jersey, the that finding to and Sure. different sign currently We, up have sports online also know, we're and other also have we at good betting. our rules sports when finding New they as uptake different sports In online, you on customers are the betting states

So good acquisition it's a tool.

the seeing taken That increases larger the haven't the in reaction similar we're yet. this expect to properties. opened with driving to Those traffic coincides sportsbooks one are bets the opening much part see to For at the boardwalk property those We're of sportsbooks. definitely permanent Mississippi properties. what middle betting, once in we happen, sportsbooks on And we the the of our year. terms in

drivers. our betting concentration in optimistic regional it and up, during have Our or that will are spend legislation pending remarks, other for driver where debating that be states mentioned markets. of casinos events nongaming in people food a currently the those ultimately traffic very beverage this are high as our are we're about then with But is the be to great we new sports you traffic properties. in proving either particularly And the

Operator

your have from line Beynon coming from the of We question next Macquarie. Chad

Chad Beynon

in some of targets some the flow prior next free shifts, you couple CapEx changed for I just corporate I Eric, years, the cost just couple wanted since if of to the during looks in I of free willing of was to targets if general dramatically kind with couple cash wondering how were changes know terms flow. past given in and the you've of and of some model provide calls? the general start next and given calls, anything cash years now has

Eric Hession

the think in guidance But considerably billion target is $X and sure. down XXXX as up improvement that. cash periods. cash year. next The in spend marginally for our the free through Yes, same of it'll ramp our was period, next part it the this still add free once to roughly convention in our to starting the CapEx the have prior from flow our is in center cost-cutting will early slows year at of point, perspective a would I flow EBITDA

Chad Beynon

business at And the off marketing look you your could of your Has see So the then, environment on we different? accelerator? the kind competition seasonality in competitive have XQ, same adjusted type And XQ, Atlantic model of taken the City, all? business quarters new if marketing their foot how looking? higher is the

Eric Hession

terms in a right unfortunately now Yes, much Atlantic in change environment are we not seeing of the of competitive City.

the are the that the quarter first of the in certainly us fourth and impacted considerably. demand city The seasons terms and low to quarter

in in the third months. high. the competition, saw quarter well it's performed still quite last you stronger demand And a quite We summer reinvestment are much anticipating the we year, from as perspective, despite but

second the the headed we've We investment as modestly. bit a quarter, little and strategy quarter, have out modified we entering of we're first our our increased as

about that of that so we a the suboptimal As points slightly. it market EBITDA and from increased XXX we were basis we the rest portfolio, was perspective and felt a behind investing an

Operator

We from your the next Harry Instinet. line of coming question have Curtis from

Harry Curtis

Joyce, into to back of would that Vegas in it EBITDAR quarter, second Is least number? the to all heroic last sort made seem of and you cauldron year's about would be the it at just that the going you throw right? this to get comments

Joyce Arpin

environment to year, our ability bullish perspective. a Yes. those -- that we to a figures tap right. That's are meet on our from last very to although going it Again, still it's was the year-over-year and database, the quarter tough and demand record be market

Harry Curtis

did in then seen March you you some challenged then, experience April particularly a and positive the lost that that some to sense results. color days, markets markets, in business, Can the it XX us little extent sequential rumblings weather? give that their the in as on regional some March? were did oftentimes back well, companies And about to heard by April, would comes And you about you, that those regional in we've particularly, report of we've XX talk lift,

Eric Hession

good would this for month certainly is Harry, us. March I a say Eric. was that Yes.

period. returns the pent-up from mentioned government accelerated tax be and shutdowns combination -- weather that from February, the hit think March I that demand could but the the federal into in also it of in and really a you came the

period. improves that periods. prior then reasonably of year And conclusion for was quarter be the to March So in continued solid relative the April the either that has to correct way, kind us

Operator

line the We Bank next have of your coming Shaun question America. Kelley of from from

Shaun Kelley

beginning at in the to that wanted actually go is to? Vegas? into dig given kick of cost Las -- in labor second first the the were -- was environment, to that quite effect quarter? cadence I in contract, does quarter the on just Just maybe that couldn't I the union the clarify, Or alluded did that the in, tell

Eric Hession

addition earlier just company the good saw Yes, contract, we affected in all reasonably to XXX(k) had that our we were was broad aggregate Shaun. other that mentioned quarter, And But the first such in it the union base that in it of in quarter. the first and some as as employee successfully in costs some as headwinds, to you compounded, offset medical well. we the a able flow-through

Shaun Kelley

what then, And side, to accomplish the and and Centaur the sort regional core you're let's lot kind been the Atlantic growth what out or we if what's think now what like -- but leverage a sort what labor right talked about benign? those same the fighting, operations just it's on is in of of City in the just City you've guys cost but pretty question, seeing cost core headwinds environment regional are the strip are marketing for of it sort call you able about outliers, it, Atlantic and us, markets? or you standpoint, -- -- And or of and operating the

Eric Hession

price is that I lot as stemming but think the it lot very as pressure it's pushes difficulty finding well, from a of market-by-market of great in result, but basically the labor of There's it We're a in up certainly a these specific. and a lack is market Midwest. labor, markets talent -- labor. of having

Operator

Your of next Allen Stanley. the Thomas from question comes from line Morgan

Thomas Allen

remind into what high saw can New So just players the have us weakness And it it is? has just second quarter? of extended baccarat exposure kind gone handful on broad-based? that you did the your the of Year, of Or you Chinese And away? is a end is the -- around that Vegas,

Eric Hession

sure. Yes,

generally Las take Caesars We XX% and international XX% predominantly here Paris, really have that a bit ultrahigh-end a Palace. in market between crossover play it's big of in get only the Vegas. we share We effect. number Caesars at but business at little So, box Palace

And of it's here less speaking, at really both I say were our Caesars. -- came would offer -- less. peers less here, than little believe, because customers with also some frequency product that that they spent it's a then only Broadly we so I it's they when and

both into So kind effects first was quarter it it some throughout quarter that the and second to of was degree. even and

as say, as big However, so doesn't have impact. second much quarter, in concentration I would just the an there's it not normally

Thomas Allen

Any baccarat do feel said say you question, just quarterly or way to counted account how -- results? growth and helpful. quarter X.X% how you is of about this mixes Vegas That's like quarter for that year. cadence of a seeing last much you follow-up of for you How market baccarat after first then the guys

Eric Hession

the of baccarat fluctuations quarterly the have play. don't I Yes.

you would because what or I reports market think the trend to and does the periods. the at market with board tend best gaming generally we it thing do see holiday be LVCVA can look the does the to and over come to

generally So our first where on from this quarter the our expectation year, that standpoint, of kind was terms that's probably the full performance were. expectations view our our in best that of was answer. And right for then companywide in

of haven't projections varied our point. any year we at full this So

Operator

from of Your Jared the question Research. line Shojaian next from comes Wolfe

Jared Shojaian

when back opportunities And spend, of your versus show where basis you you peer terms in margins peers Just I what outside marketing think less? you outside guess, some analysis in your of more? do the that, your about of set? regionally marketing else you marketing a does to going the spend of your see tax on, Do adjusted efficiency Vegas, spend of versus do metrics

Eric Hession

Yes.

of I good probably we have also have what peers. lead think, you tends are slightly however, in -- to On general, gaming that what Vegas. the in best to be spends, the has evidence of to whether then, here market-by-market. terms terms kind table others in that's know, we the the you in are in tend best below, by perspective, rate we have right do to relative that adjusted as destination so a with tax and mentioned City, those look as considerably tend strip where everybody In driven Atlantic I have. fairly line markets state it regional It to Las the at investing, some in we component, really a of regional labor hotel one's on be your now margin drivers the And the margin markets. you run as those to from evidence more perspective we and a the since do of disclosure

Jared Shojaian

Or just talking you now at GAAP are a than Maybe you slides, I rather gears switching a your to look help CapEx. I number can think If had million. you And of also this Korea Okay. should before the much you cash that And me reading might is of made the continue. for into that in slide, understand project expectation thought then there happen? with remaining too then difference not number, an comment? $XXX the to a CapEx CapEx cash that to Am footnote reference there? I

Eric Hession

Yes.

CapEx portion was that from how of the what our analysts lot was We For and because and cash a -- of asking and investors were some of having that consolidate question, the were reason both the GAAP flow. reporting finding GAAP it that we perspective project. the that we're definition questions is about referencing and impacts also and Korea a cash confusion actual first the

So invest our raising the and we're be is going the that way debt project and to financing. Caesars partners works capital,

So the highlight wanted to what amount investors. of we cash is to impact to us

that to our to So -- some actual was it clarity meant as try was to cash deployment. provide

project of the is project know, terms In you this as itself, in a development Korea.

secure We have financing. to

We project highlight so have with that and well. budget, of have project wanted always on come and associated to that any get the we type, to and risk as agreements so just there's

Operator

SunTrust. from last your from we And the line of Barry question have coming Jonas

Barry Jonas

marketing that a into bit digging more. Just efficiency

XX% too that run can quarters past over it's been of deep? going you risk improvements you've a think at point, you four certain been now. Do of pace capture roughly I the think mark the for or years the continue able three to around you do

Eric Hession

always market are we to customers. improve trying I that think, to can the we way

we it that to over last be did back to think giving pace we X would the We the made the amount customers. same dramatically that of can the change that change were continue years. unrealistic fairly assume we that I

more our our mentioned that to certain relative -- segments to we an City slight where competition as in can increasing example, money investment Atlantic As is. believe make we we by slightly

efforts So, on There are all going enhance that our to balance; is reducing just technology designed be be have down. it to modeling. that. that towards to the a we Certainly, of tends is out not coming able

greater that we'll also be the customers how able to some roll We to insights out. react have into changes marketing

be should you see pace to it was the along to at so won't expect these it years. same the improvement lines, continue And for X but last that

Barry Jonas

maintenance CapEx. a on the just then question And Great.

having Beyond the the still renovations, hotel you're work.

So need think any areas there to CapEx that be are of other you next over the deferred years? few addressed meaningful

Eric Hession

No. think We the like hotel specifically anything there's rooms. that with there was don't

Right machines properties. forward. your and situation always to to may appearance sufficient having new You and where slot and the in spend we of can more of evaluating for are good return try to that a expectations with always improve properties' as think is the the spending food mark do that the And Tony year with to million we invest you willing going the all can on enhanced be now, around continued a opportunities discussions into capital. that where basis. markets be beverage maintain certain there floor a what and improve are more $XXX us customers that We'll to of measured add in we're and

Barry Jonas

Mr. Great. Rodio. Congratulations,

Tony Rodio

much. you Thank very

Eric Hession

Thanks, everybody. call. That concludes the

Operator

today. webcast. our you, concludes a We day. our you great Have may webcast Thank And to And hope This for disconnect. us participants you informative. thanks joining presenters. all presentation now found this