Growing Eldorado Resorts showed healthy gains in profits and revenue in the first quarter, helped primarily by the acquisition last year of Isle of Capri Casinos.
The Reno-based company said Thursday its net income for the quarter that ended March 31 was $20.8 million, which compared with $945,000 a year ago. Earnings per share was 27 cents, up from 2 cents per share.
The first quarter of 2017 did not include Isle of Capri.
Eldorado posted revenue of $440.2 million in the 2018 first quarter, more than double produced 12 months earlier. The figure however, missed Wall Street forecasts.
Still, Eldorado CEO Gary Carano said in a statement adjusted cash flow increased at 15 of the company’s 20 casinos during the quarter, “despite challenging weather that impacted operations nearly system wide in January and February as well as our Reno operations in March.”
Last month, Eldorado announced two transactions that will continue to grow the regional gaming operation. The company is buying seven casinos operated by Tropicana Entertainment – including two casinos in Nevada (Tropicana Laughlin and MountBleu in Lake Tahoe) and the Tropicana Atlantic City – in a joint deal with real estate investment trust Gaming and Leisure Properties, Inc.
The company is also buying the Grand Victoria Casino in Elgin, Ill., from MGM Resorts International. Last week, Eldorado announced a joint venture with Cordish Companies to develop non-gaming entertainment and hospitality attractions adjacent to the Isle Casino and Racetrack in Pampano Park, Fla.
“We expect both transactions to be immediately accretive to our financial results, including free cash flow, and do not expect to make immediate significant cap-ex investment in the acquired properties,” Carano said.
On a conference call with analysts, Carano said there was “$1 billion of casino EBITDA” within a 25-mile radius of the company’s Pompano Park property. He called it “a crime” for the land surrounding the casino to go unused.
In Reno, where the company operates three casino-resorts, Carano said a shift is taking place with non-gaming revenue growing at a fast pace than gaming revenue. Eldorado has upgraded more than 1,000 hotel rooms and suites at the Eldorado, Silver Legacy and Circus Circus, updated food and beverage operations, opened a poker room and sports book and updated public spaces.
“We have generated healthy returns from targeted investments that improve our guests’ experiences and elevate our properties overall competitiveness in their markets,” Carano said.
Eldorado Resorts shares have increased 21 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $40, more than doubling in the last 12 months.
