Gaming companies without links to Macau had trouble showing a profit during the fourth quarter of 2012, and those with properties in Atlantic City were even harder hit with Hurricane Sandy.
That’s what contributed to a loss of $343.6 million during the quarter for Caesars Entertainment Corp. (CZR), which operates four Atlantic City casinos that were shuttered by the hurricane in October and November.
In 2011, the company reported income of $198.8 million during the final quarter of the fiscal year.
Also affecting the 2012 quarterly experience was a non-cash impairment charge of $448.2 million.
For the full year, the company said the loss was $313.4 million compared with income from operations a year earlier of $816.3 million.
In the management commentary accompanying the report, CEO Gary Loveman said: “The fourth quarter capped a year that was marked by significant progress on our strategy to reinvigorate our core business, expand our domestic distribution network, pursue growth online and internationally and continue to improve the company’s capital structure.”
As for the company’s debt in excess of $21 billion, Loveman said the company had taken additional steps to improve its capital structure by issuing $2.75 billion of new senior secured notes. The proceeds were used to repay outstanding term loans, a portion of which matured in 2015.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at [email protected].