A strong start to the trading year for Eldorado Resorts has been hampered by the coronavirus pandemic, with Q1 results showing decline in net revenue and EBITDA coupled with operating losses.
During the period ended March 31, 2020, the firm reported net revenue of $473.1m, a decrease of 25.6% on a GAAP basis and a decrease of 17.5% on a same-store basis versus the comparable prior-year period
An operating loss of $123.2m was recorded compared with operating income of $123.6m on a GAAP basis versus the comparable prior-year period, with a GAAP net loss of $175.6m. Same-store adjusted EBITDA of $102.5m was down 33% year-on-year.
CEO Tom Reeg commented: “Our first quarter operating performance through the end of February 2020 represented a very strong start to the year. For the first two months of 2020, revenues were up 6.6% and adjusted EBITDA was up 24.7%, driving strong margin growth of 390 basis points year over year.
“We were encouraged by the strength of the consumer and the pace of revenue growth for this two-month period. However, the strength in January and February was offset by COVID-19 related weakness due to the mandated closure of all our properties by March 18, 2020. As a result, Eldorado generated first quarter same-store net revenues of $473.1m and EBITDA of $102.5m, down 17.5% and 33.0% year over year, respectively.
“Our primary focus since the mandated closure of our properties has been the safety and well-being of our team members and guests. We responded quickly to reduce costs and preserve liquidity following the closures and ended the first quarter of 2020 with over $670m of cash on the balance sheet after drawing $465m on our revolver in March.
“Our full-time team members received four weeks of pay after operations were suspended and we will continue to pay team member health care benefits through June 30, 2020. Compensation for the executive team has been reduced as well.”
Reeg concluded: “We remain actively engaged in satisfying the remaining steps to complete the Caesars transaction. Our teams also remain focused on the integration process and we remain excited about the long-term opportunity to create value for stakeholders of both companies.”