Q4 profits fall at Reno-based Eldorado

Fourth-quarter profits fell 3.7 percent at Reno-based Eldorado Resorts Inc., as the company continues to adjust to its merger with MTR Gaming last September, officials said Monday.

2015-03-18

United States

Reading time 1:25 min

Fourth-quarter profits fell 3.7 percent at Reno-based Eldorado Resorts Inc., as the company continues to adjust to its merger with MTR Gaming last September, officials said Monday.

"The fourth quarter was a transitional period for Eldorado as we continue the integration of MTR and began implementing strategies to derive value from the newly expanded scale and geographic diversity of our property portfolio," Gary Carano, chairman/CEO of Eldorado said in a statement.

"Notwithstanding the impact of new competition in certain markets, we are pleased with our progress to date," Carano said. "We believe 2015 operating results will highlight the benefits of the strategic rationale for the MTR merger which we completed in September 2014. Despite harsh and in some cases record cold weather in several of our markets, first quarter results to date have been solid."

Eldorado also reported a 4.2 percent decline in profits for the calendar year 2014 compared with 2013, before the company's acquisition of MTR Gaming and before Eldorado began trading shares on the Nasdaq exchange.

Additionally, Eldorado's EBITDA, or earnings before interest, taxes, depreciation and amortization, a key indicator used in the gaming industry, fell 15.1 percent in the fourth quarter and 14.7 percent for the calendar year, the report showed.

Carano said Eldorado, whose origins date to 1973 when his father, Don Carano, opened the Eldorado Hotel-Casino in downtown Reno, will focus this year on three priorities: new food/beverage offerings at several properties, boosting EBITDA through operating and cost efficiencies, and enhancing shareholder value.

"We have also relocated certain members of Eldorado's senior management team to be closer to our new MTR properties to implement our industry-leading player service and hospitality practices at these properties," Carano said.

Last year's merger with MTR Gaming gave Eldorado Resorts Inc., six gaming properties with a total of 3,300 hotel rooms, 280 gaming tables, 32 restaurants and 10,000 slot machines and video games.

Earlier this month, Eldorado said it will build another microbrewery and restaurant, patterned after its 15-year-old flagship operation inside downtown Reno's Eldorado Resort Casino, at Scioto Downs Racino in Ohio as part of a $9.5 million expansion there.