Eldorado Resorts, Inc (ERI) has reported 69.70 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $1.02 million, or $0.02 a share in the quarter, compared with $3.37 million, or $0.07 a share for the same period last year. Revenue during the quarter dropped 5.92 percent to $200.92 million from $213.57 million in the previous year period. Gross margin for the quarter expanded 87 basis points over the previous year period to 36.53 percent. Total expenses were 92.96 percent of quarterly revenues, up from 91.45 percent for the same period last year. That has resulted in a contraction of 151 basis points in operating margin to 7.04 percent.
Operating income for the quarter was $14.15 million, compared with $18.26 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $33.40 million compared with $38.34 million in the prior year period. At the same time, adjusted EBITDA margin contracted 133 basis points in the quarter to 16.63 percent from 17.95 percent in the last year period.
“The year-over-year decline in Eldorado’s first quarter results reflects the impact of significant weather disruption at our Reno Tri-Properties’ operations. The impact of decreased visitation at the Reno Tri-Properties resulting from all-time record snowfall in the region was partially offset by continued strong performance of Eldorado Scioto Downs, and the benefit from cost reductions implemented at Mountaineer which drove a significant double digit increase in the property’s Adjusted EBITDA, the first such year-over-year improvement in 12 quarters,” said Gary Carano, Chairman and Chief Executive Officer of Eldorado.
Working capital remains negativeWorking capital of Eldorado Resorts, Inc was negative $5.01 million on Mar. 31, 2017 compared with negative $9.89 million on Mar. 31, 2016. Current ratio was at 0.94 as on Mar. 31, 2017, up from 0.90 on Mar. 31, 2016. Cash conversion cycle (CCC) has increased to 4 days for the quarter from 1 days for the last year period. Days sales outstanding were almost stable at 4 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 4 days for the quarter compared with 8 days for the previous year period. At the same time, days payable outstanding was almost stable at 12 days for the quarter, when compared with the previous year period.
Debt increases substantially
Eldorado Resorts, Inc has witnessed an increase in total debt over the last one year. It stood at $1,165.37 million as on Mar. 31, 2017, up 40.18 percent or $334.04 million from $831.32 million on Mar. 31, 2016. Total debt was 70.81 percent of total assets as on Mar. 31, 2017, compared with 64.64 percent on Mar. 31, 2016. Debt to equity ratio was at 3.87 as on Mar. 31, 2017, up from 3.02 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.12 for the quarter from 1.41 for the same period last year. 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: [email protected]
