UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 30, 2017

 

Eldorado Resorts, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

 

001-36629

 

46-3657681

(State or other jurisdiction

of incorporation)

 

(Commission File Number)

 

(IRS Employer

Identification No.)

 

100 West Liberty Street, Suite 1150

Reno, NV

 

89501

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (775) 328-0100

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 



Item 7.01

 Regulation FD Disclosure.

 

On May 1, 2017, Eldorado Resorts, Inc. (“ERI” or the “Company”) consummated its acquisition of Isle of Capri Casinos, Inc., a Delaware corporation (“Isle”) pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated as of September 19, 2016 with Isle, Eagle I Acquisition Corp., a Delaware corporation and a direct wholly-owned subsidiary of ERI, and Eagle II Acquisition Company LLC, a Delaware limited liability company and a direct wholly-owned subsidiary of ERI (the “Isle Acquisition”). As a result of the Isle Acquisition, Isle became a wholly-owned subsidiary of ERI.

 

ERI reports its financial results on a calendar fiscal year. Prior to the Isle Acquisition, Isle’s fiscal year typically ended on the last Sunday in April. Isle’s fiscal 2017 and 2016 were 52-week years, which commenced on April 25, 2016 and April 27, 2015, respectively.

 

The following table sets forth Isle’s unaudited consolidated historical net revenues and Adjusted EBITDA (defined below) as previously reported for the fiscal quarters ended January 24, April 24, July 24 and October 23, 2016 and January 22, 2017. The table below also sets forth Isle’s unaudited consolidated historical net revenues and Adjusted EBITDA for the calendar quarters ended March 31, June 30, September 30 and December 31, 2016 and March 31, 2017. Such information was prepared by the Company to reflect Isle’s unaudited consolidated historical net revenues and Adjusted EBITDA for periods corresponding to ERI’s fiscal quarterly calendar. Such figures are based on unaudited internal financial statements and have not been reviewed by the Company’s auditors. Such presentation does not conform with GAAP or the Securities and Exchange Commission rules for proforma presentation; however, we believe that the additional financial information will be helpful to users in comparing current results with results of prior periods. This non-GAAP data should not be considered as a substitute for data prepared in accordance with GAAP, but should be viewed in addition to the results of operations reported by Isle and the Company.

 

The following table summarizes net revenues for the periods presented (unaudited, in thousands):

 

 

 

Net Revenues, Fiscal Quarter Ended

 

 

Net Revenues, Calendar Quarter Ended

 

 

 

January

24, 2016

 

 

April

24, 2016

 

 

July

24, 2016

 

 

October

23, 2016

 

 

January

22, 2017

 

 

March

31, 2016

 

 

June

30, 2016

 

 

September

30, 2016

 

 

December

31, 2016

 

 

March

31, 2017

 

West Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Black Hawk

 

$

29,138

 

 

$

32,423

 

 

$

32,381

 

 

$

31,695

 

 

$

28,953

 

 

$

32,029

 

 

$

31,730

 

 

$

33,324

 

 

$

29,440

 

 

$

32,413

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Midwest Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf

 

 

16,812

 

 

 

18,482

 

 

 

19,176

 

 

 

20,993

 

 

 

18,079

 

 

 

17,767

 

 

 

17,627

 

 

 

22,361

 

 

 

19,053

 

 

 

19,580

 

Waterloo

 

 

21,313

 

 

 

23,827

 

 

 

21,818

 

 

 

20,969

 

 

 

20,328

 

 

 

22,934

 

 

 

22,271

 

 

 

21,625

 

 

 

20,630

 

 

 

22,527

 

Boonville

 

 

18,438

 

 

 

20,646

 

 

 

19,680

 

 

 

19,377

 

 

 

17,638

 

 

 

19,821

 

 

 

19,691

 

 

 

20,206

 

 

 

18,357

 

 

 

19,464

 

Cape Girardeau

 

 

14,614

 

 

 

17,030

 

 

 

15,488

 

 

 

15,318

 

 

 

15,066

 

 

 

16,174

 

 

 

15,559

 

 

 

16,307

 

 

 

15,043

 

 

 

16,351

 

Caruthersville

 

 

7,952

 

 

 

9,709

 

 

 

8,821

 

 

 

8,237

 

 

 

8,053

 

 

 

9,093

 

 

 

8,896

 

 

 

8,675

 

 

 

8,269

 

 

 

9,004

 

Kansas City

 

 

17,204

 

 

 

20,033

 

 

 

17,678

 

 

 

16,982

 

 

 

17,056

 

 

 

19,113

 

 

 

18,203

 

 

 

17,120

 

 

 

17,406

 

 

 

19,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

South Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano Park

 

 

44,108

 

 

 

51,802

 

 

 

40,588

 

 

 

37,473

 

 

 

42,878

 

 

 

52,116

 

 

 

42,634

 

 

 

39,030

 

 

 

40,443

 

 

 

50,030

 

Lula

 

 

11,688

 

 

 

14,210

 

 

 

12,021

 

 

 

10,975

 

 

 

10,839

 

 

 

13,559

 

 

 

12,146

 

 

 

11,550

 

 

 

11,330

 

 

 

12,115

 

Vicksburg

 

 

7,448

 

 

 

9,258

 

 

 

8,262

 

 

 

7,458

 

 

 

7,142

 

 

 

8,724

 

 

 

8,452

 

 

 

7,801

 

 

 

7,420

 

 

 

8,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin

 

 

7,788

 

 

 

9,090

 

 

 

9,730

 

 

 

9,027

 

 

 

7,629

 

 

 

8,349

 

 

 

9,375

 

 

 

9,750

 

 

 

7,819

 

 

 

8,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Net

   Revenues Before

   Other

 

 

196,503

 

 

 

226,510

 

 

 

205,643

 

 

 

198,504

 

 

 

193,661

 

 

 

219,679

 

 

 

206,584

 

 

 

207,749

 

 

 

195,210

 

 

 

217,841

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

21

 

 

 

20

 

 

 

3

 

 

 

58

 

 

 

156

 

 

 

10

 

 

 

20

 

 

 

25

 

 

 

93

 

 

 

181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Revenues

 

$

196,524

 

 

$

226,530

 

 

$

205,646

 

 

$

198,562

 

 

$

193,817

 

 

$

219,689

 

 

$

206,604

 

 

$

207,774

 

 

$

195,303

 

 

$

218,022

 

 


2


The following table summarizes Adjusted EBITDA for the periods presented (unaudited, in thousands):

 

 

 

Adjusted EBITDA, Fiscal Quarter Ended

 

 

Adjusted EBITDA, Calendar Quarter Ended

 

 

 

January

24, 2016

 

 

April

24, 2016

 

 

July

24, 2016

 

 

October

23, 2016

 

 

January

22, 2017

 

 

March

31, 2016

 

 

June

30, 2016

 

 

September

30, 2016

 

 

December

31, 2016

 

 

March

31, 2017

 

West Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Black Hawk

 

$

6,742

 

 

$

9,215

 

 

$

8,629

 

 

$

8,974

 

 

$

7,618

 

 

$

9,130

 

 

$

8,297

 

 

$

9,402

 

 

$

7,792

 

 

$

9,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Midwest Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf

 

 

4,090

 

 

 

5,083

 

 

 

4,915

 

 

 

6,087

 

 

 

4,473

 

 

 

4,989

 

 

 

4,352

 

 

 

6,677

 

 

 

4,892

 

 

 

5,179

 

Waterloo

 

 

6,546

 

 

 

8,180

 

 

 

7,135

 

 

 

6,846

 

 

 

6,827

 

 

 

7,296

 

 

 

7,428

 

 

 

7,085

 

 

 

6,734

 

 

 

8,412

 

Boonville

 

 

6,629

 

 

 

8,077

 

 

 

7,465

 

 

 

7,097

 

 

 

6,364

 

 

 

7,564

 

 

 

7,463

 

 

 

7,442

 

 

 

6,618

 

 

 

7,724

 

Cape Girardeau

 

 

3,476

 

 

 

4,891

 

 

 

3,552

 

 

 

3,623

 

 

 

3,681

 

 

 

4,462

 

 

 

3,806

 

 

 

3,889

 

 

 

3,513

 

 

 

4,807

 

Caruthersville

 

 

1,998

 

 

 

3,194

 

 

 

2,362

 

 

 

2,125

 

 

 

2,187

 

 

 

2,847

 

 

 

2,445

 

 

 

2,278

 

 

 

2,193

 

 

 

2,833

 

Kansas City

 

 

4,036

 

 

 

5,840

 

 

 

4,385

 

 

 

4,219

 

 

 

3,946

 

 

 

5,254

 

 

 

4,730

 

 

 

4,312

 

 

 

4,635

 

 

 

5,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

South Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano Park

 

 

9,636

 

 

 

13,806

 

 

 

7,901

 

 

 

6,623

 

 

 

9,377

 

 

 

13,732

 

 

 

8,988

 

 

 

7,383

 

 

 

7,551

 

 

 

13,349

 

Lula

 

 

2,158

 

 

 

4,171

 

 

 

2,770

 

 

 

2,232

 

 

 

2,255

 

 

 

3,648

 

 

 

2,854

 

 

 

2,461

 

 

 

2,423

 

 

 

3,269

 

Vicksburg

 

 

1,804

 

 

 

3,113

 

 

 

2,272

 

 

 

1,750

 

 

 

1,944

 

 

 

2,760

 

 

 

2,501

 

 

 

1,824

 

 

 

2,155

 

 

 

2,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin

 

 

(477

)

 

 

(86

)

 

 

(126

)

 

 

(94

)

 

 

(672

)

 

 

(252

)

 

 

(124

)

 

 

(223

)

 

 

(523

)

 

 

(162

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

(5,451

)

 

 

(6,354

)

 

 

(5,968

)

 

 

(6,594

)

 

 

(4,532

)

 

 

(5,373

)

 

 

(6,623

)

 

 

(5,788

)

 

 

(5,718

)

 

 

(4,267

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted

   EBITDA

 

$

41,187

 

 

$

59,130

 

 

$

45,292

 

 

$

42,888

 

 

$

43,468

 

 

$

56,057

 

 

$

46,117

 

 

$

46,742

 

 

$

42,265

 

 

$

58,825

 

 

Adjusted EBITDA, 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) from continuing operations before depreciation and amortization, stock based compensation, certain preopening and severance expenses, gain on sale of assets and valuation charges 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, operating 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.

 

3


The following tables summarize Adjusted EBITDA for the periods presented, in addition to reconciling Adjusted EBITDA to operating income (loss) (unaudited, in thousands):

 

 

 

Three Months Ended January 24, 2016

 

 

 

Operating

Income (Loss)

 

 

Depreciation and

Amortization

 

 

Stock-Based

Compensation

 

 

Preopening, Severance

and Other

 

 

Adjusted

EBITDA

 

West Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Black Hawk

 

$

4,540

 

 

$

2,188

 

 

$

14

 

 

$

 

 

$

6,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Midwest Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf

 

 

1,180

 

 

 

2,902

 

 

 

8

 

 

 

 

 

 

4,090

 

Waterloo

 

 

5,223

 

 

 

1,317

 

 

 

6

 

 

 

 

 

 

6,546

 

Boonville

 

 

5,347

 

 

 

1,269

 

 

 

13

 

 

 

 

 

 

6,629

 

Cape Girardeau

 

 

942

 

 

 

2,527

 

 

 

7

 

 

 

 

 

 

3,476

 

Caruthersville

 

 

1,378

 

 

 

614

 

 

 

6

 

 

 

 

 

 

1,998

 

Kansas City

 

 

3,069

 

 

 

961

 

 

 

6

 

 

 

 

 

 

4,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

South Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pompano Park

 

 

7,837

 

 

 

1,785

 

 

 

14

 

 

 

 

 

 

9,636

 

Lula

 

 

824

 

 

 

1,331

 

 

 

3

 

 

 

 

 

 

2,158

 

Vicksburg

 

 

895

 

 

 

903

 

 

 

6

 

 

 

 

 

 

1,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

East Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nemacolin

 

 

(1,551

)

 

 

1,074

 

 

 

 

 

 

 

 

 

(477

)

Total Operating Properties

 

 

29,684

 

 

 

16,871

 

 

 

83

 

 

 

 

 

 

46,638

 

Corporate and Other

 

 

(6,567

)

 

 

447

 

 

 

669

 

 

 

 

 

 

(5,451

)

Total

 

$

23,117

 

 

$

17,318

 

 

$

752

 

 

$

 

 

$

41,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2016

 

 

 

Operating

Income (Loss)

 

 

Depreciation and

Amortization

 

 

Stock-Based

Compensation

 

 

Preopening, Severance

and Other

 

 

Adjusted

EBITDA

 

West Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Black Hawk

 

$

6,946

 

 

$

2,170

 

 

$

14

 

 

$

 

 

$

9,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Midwest Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bettendorf

 

 

1,751

 

 

 

3,082

 

 

 

7

 

 

 

149

 

 

 

4,989

 

Waterloo

 

 

6,078

 

 

 

1,212

 

 

 

6

 

 

 

 

 

 

7,296

 

Boonville

 

 

6,179

 

 

 

1,372

 

 

 

13

 

 

 

 

 

 

7,564

 

Cape Girardeau