Eldorado Resorts, Inc. (ERI) has reported 79.33 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $9.68 million, or $0.20 a share in the quarter, compared with $5.40 million, or $0.12 a share for the same period last year. Revenue during the quarter surged 31.61 percent to $241.56 million from $183.54 million in the previous year period. Gross margin for the quarter expanded 228 basis points over the previous year period to 40.77 percent. Total expenses were 88.36 percent of quarterly revenues, up from 86.87 percent for the same period last year. That has resulted in a contraction of 149 basis points in operating margin to 11.64 percent.
Operating income for the quarter was $28.11 million, compared with $24.09 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $49.72 million compared with $36.23 million in the prior year period. At the same time, adjusted EBITDA margin improved 84 basis points in the quarter to 20.58 percent from 19.74 percent in the last year period.
"Eldorados total net revenues, Adjusted EBITDA and consolidated Adjusted EBITDA margin for the 2016 third quarter were in line with the prior-year’s pro forma results, against what was our toughest comp quarter for the year," said Gary Carano, chairman and chief executive officer of Eldorado. "Our three largest contributing operations remain key catalysts for our business as Adjusted EBITDA increased year over year at all three with Adjusted EBITDA for our Reno Tri-Properties up 7.1%, Eldorado Scioto Downs increasing 4.4% and Eldorado Shreveport rising 13.6%.
Working capital turns negativeWorking capital of Eldorado Resorts, Inc. Resorts has turned negative to $5.70 million on Sep. 30, 2016 from positive $62.37 million on Sep. 30, 2015. Current ratio was at 0.94 as on Sep. 30, 2016, down from 1.89 on Sep. 30, 2015. Days sales outstanding were almost stable at 3 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 4 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 7 days for the quarter from 5 for the same period last year.
Debt remains almost stable
Total debt of Eldorado Resorts, Inc. remained almost stable for the quarter at $790.65 million, when compared with the last year period. Total debt was 61.82 percent of total assets as on Sep. 30, 2016, compared with 67.63 percent on Sep. 30, 2015. Debt to equity ratio was at 2.66 as on Sep. 30, 2016, down from 5.04 as on Sep. 30, 2015. Interest coverage ratio improved to 2.23 for the quarter from 1.66 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: editor@irisindia.net
