Caesars Entertainment Resort Properties, LLC (CZR) saw its loss narrow to $643 million, or $4.38 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $791 million, or $5.44 a share.
Revenue during the quarter grew 3.03 percent to $986 million from $957 million in the previous year period. Gross margin for the quarter expanded 115 basis points over the previous year period to 55.17 percent. Operating margin for the quarter stood at negative 4.46 percent as compared to a positive 8.78 percent for the previous year period.
Operating loss for the quarter was $44 million, compared with an operating income of $84 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $269 million compared with $246 million in the prior year period. At the same time, adjusted EBITDA margin improved 158 basis points in the quarter to 27.28 percent from 25.71 percent in the last year period.
"We achieved another solid quarter of performance, with a 3 percent increase in revenues paced by strong results in Las Vegas, our largest market," said Mark Frissora, president and chief executive officer of Caesars Entertainment. "We also continued to expand margins, a testament to the progress we have made to manage costs effectively while delivering enhanced customer service. Going forward, we remain focused on driving a balanced agenda of revenue growth and productivity gains to increase margins and cash flow. Our progress year to date gives us confidence that we are on the right path as we strive to maximize value for our stakeholders."
Operating cash flow improves significantlyCaesars Entertainment Resort Properties, LLC has generated cash of $454 million from operating activities during the nine month period, up 178.53 percent or $291 million, when compared with the last year period. The company has spent $3,391 million cash to meet investing activities during the nine month period as against cash outgo of $1,153 million in the last year period.
The company has spent $1,285 million cash to carry out financing activities during the nine month period as against cash outgo of $183 million in the last year period.
Working capital remains negative
Working capital of Caesars Entertainment Resort Properties, LLC was negative $2,334 million on Sep. 30, 2016 compared with negative $136 million on Sep. 30, 2015. Current ratio was at 0.70 as on Sep. 30, 2016, down from 0.80 on Sep. 30, 2015.
Days sales outstanding went down to 3 days for the quarter compared with 9 days for the same period last year.
Debt increases substantiallyCaesars Entertainment Resort Properties, LLC has witnessed an increase in total debt over the last one year. It stood at $6,806 million as on Sep. 30, 2016, up 46.87 percent or $2,172 million from $4,634 million on Sep. 30, 2015. Total debt was 44.34 percent of total assets as on Sep. 30, 2016, compared with 63.10 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
