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    Caesars Entertainment Inc (CZR)

    New Share Buyback Program

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    Business Description

    Caesars Entertainment, Inc. is a geographically diversified gaming and hospitality company that operates casino properties, hotels, restaurants, bars, entertainment venues, and retail shops. The company generates its primary revenue from gaming operations, including retail and online sports betting and iGaming, which accounted for approximately 55% of total net revenues in 2023 . In addition to gaming, Caesars' business activities include food and beverage operations and hotel operations, contributing to its diverse revenue streams . The company's operations are divided into four reportable segments: Las Vegas, Regional, Caesars Digital, and Managed and Branded .

    1. Gaming Operations - Operates approximately 51,300 slot machines and 2,700 table games, including poker, across its properties, and offers retail and online sports betting and iGaming .
    2. Hotel Operations - Owns, leases, brands, or manages 52 domestic properties in 18 states, providing accommodation services .
    3. Food and Beverage Operations - Manages restaurants, bars, and other dining establishments, contributing to the company's hospitality offerings .
    4. Caesars Digital - Engages in digital operations through platforms like the Caesars Sportsbook app, offering online gaming and sports betting .
    5. Managed and Branded - Involves the management and branding of properties, expanding the company's reach and influence in the hospitality sector .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Gary L. CaranoExecutive Chairman of the BoardJuly 2020Gary L. Carano has been the Executive Chairman of the Board at Caesars Entertainment, Inc. since July 2020. He previously served as Executive Chairman and CEO of Eldorado Resorts, Inc. .
    Thomas R. ReegChief Executive Officer and Board MemberJuly 2020Thomas R. Reeg has served as the CEO and a member of the Board of Caesars Entertainment, Inc. since July 2020. He was previously CFO and CEO of Eldorado Resorts, Inc. .
    Bret YunkerChief Financial OfficerMay 2019Bret Yunker became the CFO of Caesars Entertainment, Inc. in May 2019. He was a managing director at JP Morgan Chase & Co. and worked at Bank of America Merrill Lynch .
    Anthony L. CaranoPresident and Chief Operating OfficerJanuary 2019Anthony L. Carano became the President and COO of Caesars Entertainment in January 2019. He previously held various executive roles within the company and is the son of Gary L. Carano .
    Edmund L. Quatmann, Jr.Executive Vice President, Chief Legal Officer, and SecretaryMay 2017Edmund L. Quatmann, Jr. serves as the EVP, Chief Legal Officer, and Secretary at Caesars Entertainment, Inc. since May 2017. He was previously the Chief Legal Officer and Secretary for Isle of Capri Casinos, Inc. .
    Stephanie LeporiChief Administrative and Accounting OfficerJanuary 2019Stephanie Lepori became the Chief Administrative and Accounting Officer at Caesars Entertainment in January 2019. She has been with the company since 1995 and is a Certified Public Accountant .
    Josh JonesChief Marketing OfficerFebruary 2021Josh Jones became the Chief Marketing Officer of Caesars Entertainment, Inc. in February 2021. He previously held various operations and finance roles within the company .
    Rodney WilliamsBoard MemberJuly 1, 2024Rodney Williams was elected to the Board of Directors of Caesars Entertainment, Inc. on July 1, 2024, and resigned on October 21, 2024. His resignation was not due to any disagreement with the company .
    Kim Harris JonesBoard MemberApril 29, 2024Kim Harris Jones was elected to serve on the Board of Caesars Entertainment, Inc. in April 2024. She has extensive management and financial experience from her previous roles at Mondelez International, Kraft Foods Inc., and Chrysler LLC .

    Questions to Ask Management

    1. Given the decline in gaming volumes in your regional segment, particularly the reduction in unrated play due to increased competition, how do you plan to address this competitive pressure and regain market share, especially in affected geographies like Terre Haute?

    2. With adjusted EBITDAR in your regional segment down 8% year-over-year due to factors like competitive pressures, construction disruptions, and difficult comps, can you elaborate on your specific strategies to reverse this trend and improve margins in the regional market?

    3. You mentioned that your elevated capital investment cycle is nearing completion, leading to increased free cash flow, but with significant debt remaining, how will you balance debt reduction with potential share repurchases, and what factors will influence your capital allocation decisions?

    4. Given the significant increase in labor costs in Las Vegas and the impact of the new union contract, how sustainable are your current EBITDAR margins, and what measures are you implementing to mitigate future cost escalations while maintaining service quality?

    5. Considering that you need a favorable swing in hold to achieve year-over-year EBITDA growth in Las Vegas, how confident are you in meeting your full-year guidance without relying on variable factors like hold percentage, and what other drivers can support your growth expectations?

    Share Repurchase Program

    Program DetailsProgram 1Program 2
    Approval DateNovember 8, 2018 September 2024
    End Date/DurationCompleted in September 2024 No time limit
    Total Additional Amount$150 million $500 million
    Remaining Authorization$0 $500 million
    DetailsProgram completed No minimum repurchase required; shares retired

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate% of Total Debt
    202425 Principal payments on term loansN/A0.2% = (25 / 12,698) * 100
    2025105 Annual maturities of long-term debtN/A0.8% = (105 / 12,698) * 100
    2026105 Annual maturities of long-term debtN/A0.8% = (105 / 12,698) * 100
    20271,716 CEI Senior Notes8.125% 13.5% = (1,716 / 12,698) * 100
    2028832 CEI Revolving Credit Facility, Term AVariable 6.6% = (832 / 12,698) * 100
    20291,020 CVA Delayed Draw Term Loan, Senior Notes4.625% 8.0% = (1,020 / 12,698) * 100
    20301,000 CEI Term Loan B, Senior Secured Notes7.00% 7.9% = (1,000 / 12,698) * 100
    20311,000 CEI Term Loan B-1Variable 7.9% = (1,000 / 12,698) * 100
    20321,000 CEI Senior Secured Notes6.50% 7.9% = (1,000 / 12,698) * 100
    20379,915 Special Improvement District Bonds4.30% 78.1% = (9,915 / 12,698) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Native American casinos: Competitors that may pay lower taxes or no taxes, particularly in California and other jurisdictions where Native American tribes operate large-scale gaming facilities .
    • State lotteries: Compete with casino and entertainment products .
    • On-track and off-track wagering: Compete with casino and entertainment products .
    • Video lottery terminals: Compete with casino and entertainment products .
    • Card parlors: Compete with casino and entertainment products .
    • Internet gaming and sports betting: Compete with brick-and-mortar operations and online offerings .
    • Non-gaming resorts and vacation areas: Compete with non-gaming offerings .
    • Other entertainment businesses: Compete with non-gaming offerings .
    • State-sponsored lotteries: Compete with casino and entertainment products .
    • Cruise line operations: Compete with casino and entertainment products .
    • Pari-mutuel or telephonic betting on horse racing and dog racing: Compete with casino and entertainment products .
    • Fantasy sports websites: Compete with casino and entertainment products .

    Auditor

    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP2020PresentCurrent auditor.

    Latest news

    Recent developments and announcements about CZR.

    Financial Actions

      New Share Buyback Program

      ·
      Oct 17, 2024, 12:00 AM

      Caesars Entertainment, Inc. has announced a new buyback program. The company issued $1.1 billion aggregate principal amount of 6.000% Senior Notes due 2032. The net proceeds from the sale of these notes will be used to redeem $1.065 billion of the company's existing 8.125% Senior Notes due 2027, along with all accrued interest, fees, and premiums thereon. The notes are guaranteed by the material, domestic wholly-owned subsidiaries of the company that are guarantors with respect to the company's senior secured credit facilities under its Credit Agreement .

      Dividend Policy

      ·
      Oct 17, 2024, 12:00 AM

      Caesars Entertainment, Inc. (CZR) has announced a change in its dividend policy. The company has declared and paid dividends on its common stock of up to 6.0% per annum of the net proceeds received from any public offering of common stock, excluding public offerings registered on Form S-4 or Form S-8 and any public sale constituting an Excluded Contribution .

      Dividend Policy

      ·
      Feb 7, 2024, 12:00 AM

      Caesars Entertainment, Inc. (CZR) has announced changes in its dividend policy. The company has declared and paid dividends on its common stock up to 6.0% per annum of the net proceeds received from any public offering of common stock, excluding public offerings registered on Form S-4 or Form S-8 and any public sale constituting an Excluded Contribution .

    Financial Reporting

      Auditor Changes

      ·
      Jul 21, 2020, 12:00 AM

      CZR Auditor Change

      On July 17, 2020, the Audit Committee of CZR's board approved the engagement of Deloitte & Touche LLP as the new independent registered public accounting firm, replacing Ernst and Young LLP. This change will take effect after the review of the company's results for the quarter ended June 30, 2020. Deloitte was previously the auditor for Former Caesars and will now serve the combined company following a merger .