Eldorado Resorts, Inc. (NASDAQ:ERI) Q2 2019 Earnings Conference Call - Final Transcript
Aug 06, 2019 • 09:00 am ET
Thank you. At this time, we'd like to open the floor for questions. [Operator Instructions] And our first question will come from Carlo Santarelli with Deutsche Bank.
Hey, Tom, Anthony, Bret. Thank you for your remarks. Tom, just if I could touch on kind of the statement you just made in terms of the one-timers in the 2Q '19, extrapolating kind of the $8 million to $10 million or adding that back kind of implies a 7-ish-percent adjusted EBITDAR growth rate, inclusive of corporate. Is that more or less based on what you're seeing in July trends and kind of trends at non-disrupted and/or non-weather-impacted properties. Is that more or less what you see as kind of the cadence of the business as we move towards the back half or through the back half of 2019?
Thomas Robert Reeg
As you know, Carlo, we don't provide guidance. What I would say is the only thing maybe you're missing if you look 2Q '19 is we're now -- we now have an easier comp in Atlantic City, certainly easier than it was last quarter, but not necessarily easy. So other than that I would say there's no reason to believe it would be dramatically different from what we've been doing recently. In markets where we were not impacted by weather, our experience in terms of customer engagement, customer visitations, spend, was all consistent. So our belief is that most of the variance if not all of the variance was due to the items that we raised. So the absence of them would suggest that we can continue on that trajectory.
Understood. Great. Thank you. And then just in terms of the process now and kind of from the last time you guys addressed the investment community, which is a little over a month ago now, as you think about the things you've learned in the last call it month or so, including Caesars' results last night, has there been anything incremental that you have foreseen or acknowledged in that process that has made you any more or less bullish in terms of your targets?
Thomas Robert Reeg
Well, I think I'm looking at a different Las Vegas market than the market is. That's been the #1 trepidation from investors, is, "What about the Las Vegas Strip?" I just saw Caesars last night post 97 12% occupancy, which I would have told you is virtually impossible for a 90-day period across over 20,000 rooms. Highest cash room revenue ever. And they've got conventions that are coming. You've got conventions that are expansion here. You've got a better group calendar. I would say as we've gotten more into the weeds in Las Vegas, we feel very, very good about coming into this market at this moment.
And in terms of the rest of what we've been finding, it's as we would have expected. There was a lot of detailed analysis done prior to the transaction just in terms of functionally how it came together. We had a lot more intelligence