The company took intangible and tangible non-cash asset impairment charges of $419 million in the quarter, which the company said resulted primarily “from changes in the business outlook in light of economic conditions.” Yesterday the company said it planned to abandon its plans to build a new casino and resort on the Chinese island of Macau.
The company’s CEO said:
As we enter the fourth quarter, we remain focused on increasing revenues, strengthening our capital structure, investing in growth opportunities in new markets, increasing our brand recognition and controlling expenses.
The company did not offer any guidance, but the consensus estimates for the fourth quarter call for an EPS loss of $1.43 on revenues of $2.15 billion. For the full-year the consensus estimates call for an EPS loss of $5.76 on revenues of $8.86 billion.
Ceasars plans to complete the sale of its St. Louis property for $610 million and will use the proceeds to “reinvest in our core properties and invest in growth opportunities.”
It’s difficult to find a bright spot in today’s results. About the only good news is that property EBITDA rose 3% compared with the year-ago quarter.
Ceasars’ shares are trading flat after hours, at $5.79 in a 52-week range of $5.69 to $17.90. The low was set before markets closed today. The consensus target price for the shares was around $9.20 before today’s report.
Paul Ausick
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