American casino operator Eldorado Resorts has revealed that the strong performance of its Reno properties helped it to post a 0.8% increase year-on-year in first-quarter net revenues to $213.6 million.
Eldorado Resorts operates the Eldorado Hotel Casino, Circus Circus Reno?and Silver Legacy Resort Casino in?Nevada?and stated that overall earnings before interest, tax, depreciation and amortization for the first three months of 2016 grew by 17.3% year-on-year to reach $38.3 million. The outstanding debt stood at $855.8 million, which included $59 million on its revolving credit facility.
“We believe our first quarter results continue to highlight the value of our long-term strategy to build shareholder value by leveraging our proven operating model into a diversified regional gaming entity with growing margins while building scale through accretive acquisitions,” said Gary Carano, Chairman and CEO for Eldorado Resorts.
Eldorado Resorts declared that its three Reno?properties saw first-quarter net revenues expand by 6.9% year-on-year to $72.8 million while their earnings swelled by 49.2% to $11 million despite a decrease in occupancy rates due to “inclement weather”.
Reno-based Eldorado Resorts also runs Eldorado Scioto Downs in Columbus, Ohio, and this property posted $39.8 million in net revenues as well as $14.6 million in earnings for the first quarter, both of which represent year-on-year improvements. There was additionally a 4.8% rise in revenues to $33.1 million for its Presque Isle Downs And Casino in Erie, Pennsylvania, while earnings hit $4.8 million, which is a 34.5% boost.
However, the news was not all good as the firm also saw first-quarter net revenues from its Eldorado Shreveport property in Louisiana fall by 0.6% year-on-year to $34.4 million despite an 18.7% increase in earnings to $8.4 million. The company moreover reported that the recent implementation of a smoking ban is to blame for its Mountaineer Casino, Racetrack And Resort in New Cumberland, West Virginia, posting a 15.9% fall in net revenues to $33.4 million while its earnings fell by 31% to $3.5 million.
“Our commitment to reduce leverage remains a top priority,” said Tom Reeg, President and CFO for Eldorado Resorts. “We paid down nearly $36 million of debt during the quarter, bringing our consolidated gross leverage ratio to 5.15 times on a trailing twelve-month basis.”