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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Presentation
Executive
Anthony P. Rodio

about the program by ensuring the benefits they receive are protected. We've also worked closely with our broad family of talent, including entertainers, chefs, and our own bartenders to provide entertainment and recipes and other information to people while they are at home. As we think about the path toward reopening, we will make decisions in collaboration with local governments, tribal authorities, gaming regulators, and health experts, among others, with the health and safety of our employees, guests, and community in mind.

We will ensure that our operations are in compliance with applicable government directives and travel mandates. While we don't know the duration or the severity of the economic downturn stemming from this public health emergency, we recognize that a recovery will take time. We will be thoughtful and responsible in terms of how we bring the business back. In locations with multiple properties, we plan to phase openings in line with demand and our contractual commitments.

We are designing and implementing policies and procedures in consultation with an infectious disease specialist that align with recommendations from the US CDC and local public health officials to guide the reopening of our currently closed facilities, as well as ongoing maintenance of guest areas and team member work areas. As you would expect, our health and safety initiatives include, among other things, an increased frequency of cleaning and sanitizing of public spaces and guest rooms, more frequent hand washing by team members, requiring team members to wear mass while at work, implementing social distancing in areas where there are aligned and in gaming areas, including limiting table game spots and slot machines. Additionally, nongaming offerings, including entertainment, restaurants, and bars will likely be reopened on a phased basis with limited capacity in line with the consumer demand and guidance from public health authorities.

You can find further details on our health and safety approach and the announcement we put out today. Before I turn the call over to Eric, I'd like to briefly comment on a couple of business updates. A few weeks ago, we and VICI Properties announced the sale of Bally's Atlantic City to Twin Rivers Worldwide Holdings for approximately $25 million in cash. The transaction is subject to regulatory approvals and other closing additions.

Bally's Atlantic City will continue to be part of the Caesars Reward network until closing. Following the sale, we will continue to operate Caesars Atlantic City, which will include the Wild Wild West casino and sportsbook operation and Harrah's Atlantic City. Lastly, in terms of our pending merger with Eldorado, we remain focused on closing the transaction. Now I'll turn the call over to Eric to review the financial details of the quarter.

Executive
Eric Hession

Thank you, Tony. Good afternoon, everyone. I'd like to echo Tony's previous comments and hope that you're all safe and well. I'll start by providing some details on our Q1 performance and then discuss specifics regarding our balance sheet and overall financial position.

Our first quarter performance can be divided into