Caesars Entertainment Corporation (NASDAQ:CZR) Q1 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 04:30 pm ET

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Caesars Entertainment Corporation (NASDAQ:CZR) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Your first question comes from the line of David Katz from Jefferies. Your line is open.

Analyst
David Brian Katz

Hi. Good afternoon. Apologies for jumping back and forth quite a bit this afternoon with a few calls and issues going on. But I wanted to get a sense of what breakdown you can talk about between sort of driving customers versus flying customers and what insights you may be able to share about the strip to that end.

Executive
Anthony P. Rodio

Well, I mean, I don't think that -- I think we're all pretty much in agreement that we think that the regional markets are going to bounce back quicker because of the lack of -- to need to fly in. It still remains to be seen from a Las Vegas perspective, but we are seeing some encouraging statistics and information as we look toward around the fourth quarter. When the governor here in Las Vegas announced the move toward Phase 1 and the Raiders' schedule came out, we actually had a pretty significant bump in reservations booked for the fourth quarter of this year -- September through the fourth quarter of this year. Our group bookings in the fourth quarter are actually still ahead of last year's pace.

Keep in mind, we do have the four this year. Our regular bookings are off a little bit for the fourth quarter, down a little less than 10%. So there are some encouraging signs. The other thing, our player development folks and our hosts make outbound calls to our VIPs and our customers, and we're receiving a lot of encouraging feedback that customers are eager and excited to come back.

Analyst
David Brian Katz

Okay. If I can just follow that up and maybe ask something a bit more pointed and see if there's any info on it. Roughly, statistically, I think Las Vegas has about half and half drive-in versus flying in terms of visitation. My inclination is that you would be less than the average in terms of flying.But do you happen to attract any of those statistics?

Executive
Anthony P. Rodio

Yeah, sure, we do. I don't have that.

Executive
Eric Hession

We're approximately 40% coming from Southern California of our hotel business.

Analyst
David Brian Katz

Okay. Thank you very much.

Operator
Operator

Thank you. Your next question comes from the line of Carlo Santarelli. Your line is open.

Analyst
Carlo Santarelli

Hey, guys. Thank you for taking my question. Guys, when referring to Slide 9 in the deck, as Eric, you mentioned earlier, it looks like you guys have basically, just from an operational perspective, taken almost $7 million out on a daily basis. When you think about the business coming back online -- it's kind of a two-part question.

A, what does it require in terms of revenues potentially split between the regionals in Vegas to get to EBITDAR neutral or flat EBITDAR? And secondly, with respect to the January and February period, could you guys maybe talk a little bit about what you did from a cost side, perhaps, that maybe was driving some of the growth? Obviously, acknowledging