Eldorado Resorts Results

Eldorado Resorts Reports Fourth Quarter Net Revenue of $206.5 Million

Operating Income of $13.1 Million and Adjusted EBITDA of $33.6 Million

Eldorado Resorts, Inc. (NASDAQ:ERI) today reported operating results for the fourth quarter ended December 31, 2016.

 

  Total Net Revenue
($ in thousands, except per share data) Three Months Ended
December 31,
2016   2015  

2015 Pre-

Acquisition(1)

 

2015

Total(2)

  Change
Reno Tri-Properties $ 75,314   $ 47,842   $ 28,168   $ 76,010   (0.9 )%
Eldorado Shreveport 30,982 32,422 - 32,422 (4.4 )%
Scioto Downs 38,422 39,087 - 39,087 (1.7 )%
Mountaineer 30,830 32,989 - 32,989 (6.5 )%
Presque Isle Downs   30,902       33,820       -     33,820     (8.6 )%
Total Net Revenue $ 206,450     $ 186,160     $ 28,168   $ 214,328     (3.7 )%
 
 
($ in thousands, except per share data) Adjusted EBITDA
Three Months Ended
December 31,
2016   2015  

2015 Pre-

Acquisition(1)

 

2015

Total(2)

  Change
Reno Tri-Properties $ 11,813 $ 6,927 $ 2,155 $ 9,082 30.1 %
Eldorado Shreveport 6,619 6,324 - 6,324 4.7 %
Scioto Downs 13,032 12,738 - 12,738 2.3 %
Mountaineer 2,427 2,732 - 2,732 (11.2 )%
Presque Isle Downs 3,289 5,248 - 5,248 (37.3 )%
Corporate   (3,605 )     (3,806 )     -     (3,806 )   (5.3 )%
Total Adjusted EBITDA (5) $ 33,575     $ 30,163     $ 2,155   $ 32,318     3.9 %
 
 
Operating income $ 13,091 $ 13,281
Net income $ 959     $ 110,153  
Basic EPS $ 0.02     $ 2.36  
Diluted EPS $ 0.02     $ 2.33  
 
  Total Net Revenue
($ in thousands, except per share data) Twelve Months Ended
December 31,
2016   2015  

2015 Pre-

Acquisition(1)

 

2015

Total(2)

  Change
Reno Tri-Properties $ 321,922   $ 127,802   $ 181,672   $ 309,474   4.0 %
Eldorado Shreveport 131,496 136,342 - 136,342 (3.6 )%
Scioto Downs (3) 162,413 157,525 - 157,525 3.1 %
Mountaineer 136,654 155,608 - 155,608 (12.2 )%
Presque Isle Downs   140,411       142,507       -     142,507     (1.5 )%
Total Net Revenue $ 892,896     $ 719,784     $ 181,672   $ 901,456     (0.9 )%
 
 
($ in thousands, except per share data) Adjusted EBITDA
Twelve Months Ended
December 31,
2016   2015  

2015 Pre-

Acquisition(1)

 

2015

Total(2)

  Change
Reno Tri-Properties $ 62,333 $ 20,194 $ 29,880 $ 50,074 24.5 %
Eldorado Shreveport 31,198 29,051 - 29,051 7.4 %
Scioto Downs (3) 56,855 54,017 - 54,017 5.3 %
Mountaineer 13,596 21,394 - 21,394 (36.4 )%
Presque Isle Downs 19,384 20,311 - 20,311 (4.6 )%
Corporate (4)   (15,080 )     (14,289 )     -     (14,289 )   5.5 %
Total Adjusted EBITDA (5) $ 168,286     $ 130,678     $ 29,880   $ 160,558     4.8 %
 
 
Operating income $ 89,118 $ 72,516
Net income $ 24,802     $ 114,183  
Basic EPS $ 0.53     $ 2.45  
Diluted EPS $ 0.52     $ 2.43  
(1)   Figures for the three and twelve months ended December 31, 2015 represent the results of Silver Legacy and Circus Circus Reno for the period beginning on October 1, 2015 and January 1, 2015, respectively, and ending on November 24, 2015, the date that ERI acquired those properties. Such figures are based on the unaudited historical internal financial statements of such entities and have not been reviewed by the Company’s auditors.
(2) Figures for the three and twelve months ended December 31, 2015 include the operations of Silver Legacy and Circus Circus Reno, which were acquired by ERI on November 24, 2015, as if the acquisition occurred on January 1, 2015. Such presentation does not conform with generally accepted accounting principle (“GAAP”) or the Securities and Exchange Commission rules for pro forma presentation; however, we have included the combined information because we believe it provides a meaningful comparison for the periods presented.
(3) Effective January 1, 2016, the Ohio Lottery Commission enacted a regulatory change which resulted in the establishment of a $1.0 million progressive slot liability and a corresponding decrease in net slot win in Q1 2016. The changes are non-cash and related to prior years. If the regulatory change didn’t take place, net revenues at Scioto Downs would have increased 3.7% for the twelve months ended December 31, 2016. The net non-cash impact to Adjusted EBITDA was $0.6 million and that amount is added back to Scioto Downs’ Adjusted EBITDA for the twelve months ended December 31, 2016.
(4) Corporate for the twelve months ended December 31, 2016 and December 31, 2015 excludes severance expense of $1.5 million and $0.1 million, respectively.
(5) Adjusted EBITDA is not a GAAP measurement and is presented solely as a supplemental disclosure because the Company believes it is a widely used measure of operating performance in the gaming industry. See "Reconciliation of GAAP Measures to Non-GAAP Measures" below for a definition of Adjusted EBITDA and a quantitative reconciliation of Adjusted EBITDA to operating income (loss), which the Company believes is the most comparable financial measure calculated in accordance with GAAP.
 

“Eldorado’s fourth quarter 3.9% year-over-year increase in Adjusted EBITDA and 110 basis point improvement in our property operating margin to 18.0% reflects our focus on profitable revenue and operational execution. We achieved improved operating results despite a tepid operating environment, including the impact of weather disruption at our Eastern properties, which led to a 3.7% decline in total revenues,” said Gary Carano, Chairman and Chief Executive Officer of Eldorado. “Our focus on driving margins and Adjusted EBITDA growth is similarly reflected in our full year 2016 performance as Adjusted EBITDA increased 4.8% and the full year property operating margin rose 110 basis points to 20.5% on essentially flat revenues. Our three largest operations continue to be key drivers of our business and are offsetting temporary property-specific challenges at our Eastern properties. We experienced 30.1% growth in fourth quarter Adjusted EBITDA for our Reno Tri-Properties as well as a 2.3% rise at Eldorado Scioto Downs and a 4.7% increase from Eldorado Shreveport. Total Adjusted EBITDA for these three properties, which accounted for over 80% of total property Adjusted EBITDA in 2016, increased 13% year over year on a 2.1% revenue increase as the property operating margin for these properties improved 230 basis points to 24.4%.

“Overall, results across our property portfolio continue to benefit from our implementation of targeted, return-focused facility enhancement projects as well as focused cost-savings initiatives. At Eldorado Scioto Downs, the June opening of the second smoking patio and bar and the late 2015 opening of The Brew Brothers microbrewery and restaurant are leading to solid increases in gaming and non-gaming revenue while attracting new guests and players to the property. We expect that this month’s opening of the 118-room Hampton Inn Hotel at the property will fulfill the guest demand we have for lodging while further differentiating the property in the Columbus market. Similarly, we believe that our efforts to provide market-leading amenities and guest service have positioned Eldorado Shreveport to expand its market share while our focus on cost-disciplines is driving better flow through of revenue in a challenging market.

“Eldorado’s Reno Tri-Properties operations offer ongoing organic growth opportunities as we continue to strengthen these properties to benefit from Reno’s improving economic outlook as Reno posted the nation’s eighth-fastest metro area job growth in 2016. We are making notable progress on our three-year $50 million Tri-Property facility enhancement plan that will further position us to address the expected growing customer activity in Reno. This plan further integrates the guest experience while delivering an enhanced and seamless luxury resort environment. Current work includes the renovation of approximately 750 guest rooms at two towers; a full redesign of the legacy buffet at Circus Circus Reno to transform it into a modern food court with three distinct offerings; the development of a new waffle house at the former Circus Circus Steak House; the addition of an arcade and redemption area to replace the Circus Circus Americana Café; and the construction of a Canter’s Deli and new poker room at Silver Legacy. These facility upgrades as well as our plans for a new luxury spa at Eldorado Reno and new public spaces and room renovations across the complex, are designed to significantly elevate the Reno Tri-Property guest experience which we anticipate will reinforce and augment its position as a leading entertainment and gaming destination in the Reno market.

“We expect to complement our organic growth initiatives by expanding our regional gaming platform through the planned $1.7 billion acquisition of Isle of Capri Casinos, which is expected to close in the second quarter of 2017, subject to regulatory approvals. The Isle of Capri acquisition is a transformational growth opportunity for Eldorado which will substantially increase the scale of our gaming operations while further diversifying Eldorado’s geographic reach and Adjusted EBITDA mix.

“The combined Eldorado and Isle operations will feature approximately 20,290 slot machines and VLTs, more than 550 table games and over 6,550 hotel rooms in ten states, after giving effect to the announced divestitures of Isle of Capri Casino Hotel Lake Charles and Lady Luck Casino Marquette. Isle of Capri experienced improved Adjusted EBITDA margins for their most recent quarter ended January 22, 2017 and we expect the combined company will achieve further improvements resulting from the previously announced $35 million of estimated annual cost synergies. As a result, we anticipate that Eldorado will be positioned to create near- and long-term value for our combined shareholder base following the completion of the transaction.”

Balance Sheet and Liquidity

At December 31, 2016, Eldorado had $61.0 million in cash and cash equivalents and $2.4 million in restricted cash. Outstanding indebtedness at December 31, 2016 totaled $822.6 million, including $29.0 million outstanding on the Company’s revolving credit facility. Capital expenditures in the fourth quarter and 2016 full year totaled $14.4 million and $47.4 million, respectively.

“We continue to focus on the strength of our balance sheet and capital structure and access to capital at attractive rates,” said Tom Reeg, President and Chief Financial Officer of Eldorado. “Reflecting this focus, we reduced debt by $68.8 million in 2016 and ended the year with trailing twelve month consolidated gross leverage ratio of 4.9x compared to 5.6x at the end of 2015. In addition, we expect that the combined Eldorado/Isle of Capri will generate free cash flow that will provide the flexibility to reduce leverage, fund the facility enhancement plan across our portfolio and evaluate additional accretive strategic growth investments.”

Eldorado – Isle of Capri Transaction Details

On September 19, 2016, Eldorado and Isle announced that they entered into a definitive merger agreement whereby Eldorado will acquire all of the outstanding shares of Isle of Capri Casinos (“Isle” or “Isle of Capri”) for $23.00 in cash or 1.638 shares of Eldorado common stock, at the election of each Isle of Capri shareholder, reflecting total consideration of approximately $1.7 billion, inclusive of $929 million of long-term debt of Isle of Capri and its subsidiaries. Elections are subject to proration such that the outstanding shares of Isle common stock will be exchanged for aggregate consideration comprised of 58% cash and 42% Eldorado common stock. Upon completion of the transaction, Eldorado and Isle of Capri shareholders will hold approximately 62% and 38%, respectively, of the combined company’s outstanding shares. The required approvals of the Eldorado and Isle of Capri shareholders were obtained at separate Special Meetings of Shareholders on January 25, 2017. The transaction is expected to be consummated in the second quarter of 2017 subject to the approval of applicable gaming authorities, and other customary closing conditions.

Eldorado has received committed financing for the transaction totaling $2.1 billion from J.P. Morgan.

Last month, Isle of Capri reported that it continues to make progress on its previously announced divestitures including the $134.5 million sale of Lake Charles to an affiliate of Laguna Development Corporation and the $40.0 million sale of Marquette to an affiliate of Casino Queen, Inc. Isle of Capri expects the Marquette transaction to close in the first calendar quarter of 2017 and the Lake Charles transaction to close in the second calendar quarter of 2017, in each case, subject to regulatory approvals.

Summary of 2016 Fourth Quarter Property Results and Facility Enhancements

Nevada

Net revenue at the Reno Tri-Properties for the quarter ended December 31, 2016 declined approximately 1% to $75.3 million compared to $76.0 million in the prior-year period, with operating income increasing 40.3% to $6.8 million. Adjusted EBITDA rose 30.1% to $11.8 million reflecting a 370 basis point improvement in Adjusted EBITDA margin to 15.7%. The improvement in Adjusted EBITDA reflects the leverage in the Tri-Properties’ operating model as year-over-year increases in several of the complex’s volume indicators drove improved flow through of revenue to Adjusted EBITDA. RevPAR improved 3.1% in the fourth quarter and was up 11.3% in 2016. The consolidation of the Tri-Properties continues to bring efficiencies and growth with the ongoing implementation of revenue and expense synergy strategies and the commencement of the Company’s $50 million capital plan in the market.

Louisiana

Net revenue at Eldorado Shreveport declined 4.4% to $31.0 million in the fourth quarter of 2016 from $32.4 million in the fourth quarter of 2015 while operating income increased modestly year over year to $4.6 million. Adjusted EBITDA increased 4.7% to $6.6 million from $6.3 million in the comparable quarter of 2015 reflecting continued improvements in expense management. The property increased its market share in the fourth quarter and achieved above 100% “fair share” for the second consecutive quarter.

Eastern Properties

Net revenue at Eldorado Scioto Downs declined 1.7% to $38.4 million in the fourth quarter of 2016 from $39.1 million in the fourth quarter of 2015 and operating income of $8.7 million was in line with operating income of $8.6 million in the year-ago quarter. Scioto Downs’ fourth quarter 2016 Adjusted EBITDA increased 2.3% to $13.0 million from $12.7 million in the comparable prior-year period marking the eighth consecutive quarter that Adjusted EBITDA at the property rose on a year over year basis. The year-over-year decline in net revenues at the property is a result of inclement weather and marketing and promotional programs that emphasize profitable revenue generation, as reflected in the 130 basis point year-over-year improvement in the property’s Adjusted EBITDA margin to 33.9%. The 118-room Hampton Inn Hotel at the property developed by a third party will open later this month.

At Presque Isle Downs & Casino, fourth quarter 2016 net revenue declined 8.6% to $30.9 million reflecting in part a challenging weather comparison versus the prior-year quarter. The lower revenue led to a decline in operating income to $1.4 million compared to $3.5 million in the year-ago quarter and in Adjusted EBITDA which declined 37.3% to $3.3 million in the fourth quarter of 2016 from $5.2 million a year ago.

Net revenue at Mountaineer Casino, Racetrack & Resort declined 6.5% to $30.8 million in the fourth quarter of 2016 from $33.0 million in the fourth quarter of 2015. The property generated an operating loss of $0.3 million in the fourth quarter of 2016 compared with an operating loss of $0.1 million in the fourth quarter of 2015. Adjusted EBITDA declined 11.2% year over year to $2.4 million primarily due to the impact of inclement weather in December. Going forward, the Company expects to benefit from lower operating expenses at Mountaineer following the recent completion of a right-sizing of the property to match the current revenue volumes.

Reconciliation of GAAP Measures to Non-GAAP Measures

Adjusted EBITDA (defined below), a non GAAP financial measure, has been presented as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry and we believe that this non GAAP supplemental information will be helpful in understanding the Company’s ongoing operating results. Adjusted EBITDA represents operating income (loss) before depreciation and amortization, stock based compensation, transaction expenses, S-1 expenses, severance expenses and other, which includes equity in income of unconsolidated affiliates, (gain) loss on the sale or disposal of property, and other regulatory gaming assessments, including the impact of the change in regulatory reporting requirements, to the extent that such items existed in the periods presented. Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with U.S. GAAP, is unaudited and should not be considered an alternative to, or more meaningful than, net income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in Adjusted EBITDA include capital expenditures, interest payments, income taxes, debt principal repayments and certain regulatory gaming assessments, which can be significant. As a result, Adjusted EBITDA should not be considered as a measure of our liquidity. Other companies that provide EBITDA information may calculate EBITDA differently than we do. The definition of Adjusted EBITDA may not be the same as the definitions used in any of our debt agreements.

About Eldorado Resorts, Inc.

Eldorado Resorts is a casino entertainment company that owns and operates seven properties in five states, including the Eldorado Resort Casino, the Silver Legacy Resort Casino and Circus Circus Resort Casino in Reno, NV; the Eldorado Resort Casino in Shreveport, LA; Eldorado Gaming Scioto Downs in Columbus, OH; Mountaineer Casino Racetrack & Resort in Chester, WV; and Presque Isle Downs & Casino in Erie, PA. 

ELDORADO RESORTS, INC.

CONSOLIDATED BALANCE SHEETS

($ in thousands)

 
  December 31, 2016   December 31, 2015

ASSETS

CURRENT ASSETS:
Cash and cash equivalents $

61,029

 

$

78,278

 

Restricted cash 2,414 5,271
Accounts receivable, net 14,694 9,981
Inventories 11,055 11,742
Prepaid income taxes 69 112
Prepaid expenses and other   12,492     10,795  
Total current assets 101,753 116,179
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES 1,286 1,286
PROPERTY AND EQUIPMENT, NET 612,342 625,416
GAMING LICENSES AND OTHER INTANGIBLE ASSETS, NET 487,498 492,033
GOODWILL 66,826 66,826
NON-OPERATING REAL PROPERTY 14,219 16,314
OTHER ASSETS, NET   10,120     6,954  
Total assets $ 1,294,044   $ 1,325,008  

 

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Current portion of long-term debt $ 4,545 $ 4,524
Accounts payable 21,576 17,005
Due to affiliates 259 129
Accrued property, gaming and other taxes 18,790 19,424
Accrued payroll and related 14,588 17,852
Accrued interest 14,634 14,978
Accrued other liabilities   27,648     31,798  
Total current liabilities 102,040 105,710
LONG-TERM DEBT, LESS CURRENT PORTION 795,881 861,713
DEFERRED INCOME TAXES 90,385 78,797
OTHER LONG-TERM LIABILITIES   7,287     8,121  
  995,593     1,054,341  
 
STOCKHOLDERS’ EQUITY:
Total stockholders' equity   298,451     270,667  
Total liabilities and stockholders' equity $ 1,294,044   $ 1,325,008  
 

ELDORADO RESORTS, INC.

CONSOLIDATED INCOME STATEMENT

($ in thousands, except per share data)

 
  Three Months Ended   Twelve Months Ended
December 31, December 31,
2016   2015 2016   2015
Revenues:    
Casino $ 160,872 $ 153,420 $ 693,013 $ 614,227
Pari-mutuel commissions 1,496 989 8,600 9,031
Food and beverage 33,297 28,023 142,032 97,740
Hotel 20,469 12,795 94,312 37,466
Other   11,245     8,613     45,239     26,077  
227,379 203,840 983,196 784,541
Less: promotional allowances   (20,929 )   (17,680 )   (90,300 )   (64,757 )
Net operating revenues   206,450     186,160     892,896     719,784  
 
Expenses:
Casino 90,417 89,290 390,325 357,572
Pari-mutuel commissions 2,026 1,559 9,787 9,973
Food and beverage 20,321 16,222 81,878 52,606
Hotel 7,682 4,464 30,746 11,307
Other 6,931 4,812 26,921 15,325
Marketing and promotions 9,937 8,906 40,600 31,227
General and administrative 32,043 26,988 130,172 96,870
Corporate 4,196 4,756 19,880 16,469
Depreciation and amortization   15,852     14,467     63,449     56,921  
Total operating expenses 189,405 171,464 793,758 648,270
 
LOSS ON SALE OR DISPOSAL OF PROPERTY (96 ) (4 ) (836 ) (6 )
ACQUISITION CHARGES (3,858 ) (1,735 ) (9,184 ) (2,452 )
EQUITY IN INCOME OF UNCONSOLIDATED AFFILIATE   -     324     -     3,460  
OPERATING INCOME   13,091     13,281     89,118     72,516  
 
OTHER EXPENSE:
Interest expense, net (12,542 ) (12,612 ) (50,917 ) (61,558 )
Gain on valuation of unconsolidated affiliate - 35,582 - 35,582
Loss on early retirement of debt, net   -     (147 )   (155 )   (1,937 )
Total other expense   (12,542 )   22,823     (51,072 )   (27,913 )
 
NET INCOME BEFORE INCOME TAXES 549 36,104 38,046 44,603
BENEFIT (PROVISION) FOR INCOME TAXES   410     74,049     (13,244 )   69,580  
NET INCOME $ 959   $ 110,153   $ 24,802   $ 114,183  
 
Net income per share of common stock:
Basic $ 0.02   $ 2.36   $ 0.53   $ 2.45  
Diluted $ 0.02   $ 2.33   $ 0.52   $ 2.43  
Weighted average number of shares outstanding:
Basic   47,105,744     46,670,735     47,033,311     46,550,042  
Diluted   47,849,554     47,227,127     47,701,562     47,008,980  
 

ELDORADO RESORTS, INC.

SUMMARY INFORMATION AND RECONCILIATION OF

OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

($ in thousands)

 
 

Three Months Ended December 31, 2016

           

Operating

Depreciation

Stock-Based

Transaction

Severance

Other

Adjusted

Income (Loss)

and

Compensation

Expenses

Expense

(5)

EBITDA

 

 

Amortization

 

(3)

 

 

 

 

 

 

 

 

Reno Tri-Properties $ 6,794 $

4,847

 

$ - $ - $

77

 

$ 95 $ 11,813
Eldorado Shreveport 4,632 1,978 - - - 9 6,619
Scioto Downs 8,670 4,363 - - - (1 ) 13,032
Mountaineer (257 ) 2,643 - - 42 (1 ) 2,427
Presque Isle Downs 1,430 1,891 - - - (32 ) 3,289
Corporate   (8,178 )     130       591       3,858     -       (6 )     (3,605 )
$ 13,091     $ 15,852     $ 591     $ 3,858   $ 119     $ 64     $ 33,575  
 
 

Three Months Ended December 31, 2015

 

Operating

Depreciation

Stock-Based

Transaction

Severance

Other

Adjusted

Income (Loss)

and

Compensation

Expenses

Expense

(5)

EBITDA

 

 

Amortization

 

 

 

 

 

 

 

 

 

 

Reno Tri-Properties

$

3,493

$ 3,714 $ - $ - $ 52 $ (332 ) $ 6,927
Eldorado Shreveport 4,367 1,912 - - - 45 6,324
Scioto Downs 8,624 4,096 - - 18 - 12,738
Mountaineer (56 ) 2,801 - - 18 (31 ) 2,732
Presque Isle Downs 3,455 1,833 - - - (40 ) 5,248
Corporate   (6,602 )     111       333       2,352     -       -       (3,806 )
Total Excluding Pre-Acquisition   13,281       14,467       333       2,352     88       (358 )     30,163  
Pre-Acquisition (1)   1,348       834       -       -     -       (27 )     2,155  
Total Including Pre-Acquisition (6) $ 14,629     $ 15,301     $ 333     $ 2,352   $ 88     $ (385 )   $ 32,318  
 
 

Twelve Months Ended December 31, 2016

 

Operating

Depreciation

Stock-Based

Transaction

Severance

Other

Adjusted

Income (Loss)

and

Compensation

Expenses

Expense

(5)

EBITDA

 

 

Amortization

 

(3)

 

(4)

 

 

 

 

 

 

Reno Tri-Properties $ 41,620 $ 20,220 $ - $ - $ 230 $ 263 $ 62,333
Eldorado Shreveport 23,378 7,861 - - - (41 ) 31,198
Scioto Downs (2) 39,184 17,099 - - - 572 56,855
Mountaineer 2,150 10,371 - - 299 776 13,596
Presque Isle Downs 12,276 7,417 - - 6 (315 ) 19,384
Corporate   (29,490 )     481       3,341       9,182     1,461       (55 )     (15,080 )
$ 89,118     $ 63,449     $ 3,341     $ 9,182   $ 1,996     $ 1,200     $ 168,286  
 
 

Twelve Months Ended December 31, 2015

 

Operating

Depreciation

Stock-Based

Transaction

Severance

Other

Adjusted

Income (Loss)

and

Compensation

Expenses

Expense

(5)

EBITDA

 

 

Amortization

 

 

 

(4)

 

 

 

 

 

 

Reno Tri-Properties $ 13,989 $ 9,547 $ - $ - $ 115 $ (3,457 ) $ 20,194
Eldorado Shreveport 21,423 7,621 - - 25 (18 ) 29,051
Scioto Downs 38,612 15,368 - - 37 - 54,017
Mountaineer 6,776 14,523 - - 126 (31 ) 21,394
Presque Isle Downs 11,103 9,450 - - - (242 ) 20,311
Corporate   (19,387 )     412       1,488       3,069     75       54       (14,289 )
Total Excluding Pre-Acquisition   72,516       56,921       1,488       3,069     378       (3,694 )     130,678  
Pre-Acquisition (1)   19,850       10,008       -       -     20       2       29,880  
Total Including Pre-Acquisition (6) $ 92,366     $ 66,929     $ 1,488     $ 3,069   $ 398     $ (3,692 )   $ 160,558  
(1)   Figures for the three and twelve months ended December 31, 2015 represent the results of Silver Legacy and Circus Circus Reno for the period beginning on October 1, 2015 and January 1, 2015, respectively, and ending on November 24, 2015, the date that ERI acquired those properties. Such figures are based on the unaudited historical internal financial statements of such entities and have not been reviewed by the Company’s auditors.
(2) Effective January 1, 2016, the Ohio Lottery Commission enacted a regulatory change which resulted in the establishment of a $1.0 million progressive slot liability and a corresponding decrease in net slot win during the first quarter of 2016. The changes are non-cash and related primarily to prior years. The net non-cash impact to Adjusted EBITDA was $0.6 million for the twelve months ended December 31, 2016.
(3) Included in stock-based compensation expense for the three and twelve months ended December 31, 2016 is $0.1 million and $0.8 million, respectively, of additional stock-based compensation expense as a result of severance related to restricted stock units becoming fully vested during the three and twelve months ended December 31, 2016.
(4) Transaction expenses represent acquisition costs related to the MTR Merger, Reno Acquisition and Isle of Capri Acquisition and includes a credit of $2.0 thousand for the twelve months ended December 31, 2016 and an expense of $0.6 million for the twelve months ended December 31, 2015 related to S-1 offering costs.
(5) Other is comprised of (gain) loss on the sale or disposal of property, equity in income of unconsolidated affiliate and other regulatory gaming assessments, including the item listed in footnote (2) above.
(6) Figures for the three and twelve months ended December 31, 2015 include the operations of Silver Legacy and Circus Circus Reno, which were acquired by ERI on November 24, 2015, as if the acquisition occurred on January 1, 2015. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for pro forma presentation; however, we have included the combined information because we believe it provides a meaningful comparison for the periods presented.



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