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TROPICANA ENTERTAINMENT : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-Q)

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05/03/2017 | 04:24pm CEST

Cautionary Statement Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (Exchange Act). These statements involve known and unknown risks, uncertainties and other factors, which may cause our or our industry's actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some situations, you may be able to identify forward-looking statements by terms such as "may," "will," "might," "expect," "plan," "believe," "anticipate," "intend," "should," "could," "would," "estimate," "project," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding our expectations, hopes or intentions regarding the future, including, but not limited to, statements regarding our operating or other strategic plans, our competition (including online gaming), financing, revenues, or tax benefits; our beliefs regarding the sufficiency of our existing cash and credit sources, including our Credit Facilities (as defined herein) and cash flows from operating activities to meet our projected expenditures (including operating and maintenance capital expenditures)


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and costs associated with certain of our projects, our required capital
expenditures pursuant to agreements we are party to such as the landside
construction project at Tropicana Evansville, and our anticipated capital
expenditures, including our use of our CRDA project funds, estimated asset and
liability values, risk of counterparty nonperformance and our legal strategies
and the potential effect of pending legal claims on our business and financial
condition, and any financial or other information included herein based upon or
otherwise incorporating judgments or estimates based upon future performance or
events. Forward-looking statements involve certain risks and uncertainties, and
actual results may differ materially from those discussed in each such
statement. In light of these risks, uncertainties and assumptions, the events
described in the forward-looking statements might not occur or might occur to a
different manner or extent or at a different time than we have described. All
forward-looking statements are qualified in their entirety by reference to the
areas of risk and uncertainty described elsewhere in this Quarterly Report on
Form 10-Q as well as those discussed under "Item 1A-Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2016. Forward-looking
statements represent our estimates and assumptions only as of the date of this
report. We operate in a continually changing business environment and new risks
emerge from time to time. Except as may be required by applicable law, we
undertake no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Overview
We are an owner and operator of regional casino and entertainment properties
located in the United States and one hotel, timeshare and casino resort located
on the island of Aruba. Our United States properties include two casinos in
Nevada and one casino in each of Indiana, Louisiana, Mississippi, Missouri and
New Jersey. We primarily cater to local and regional guests to provide a fun and
exciting gaming environment with high quality and high value lodging, dining,
retail and entertainment amenities. Our properties offer a broad array of gaming
options specifically tailored for our patrons in each market. As of March 31,
2017, our properties collectively included approximately 392,000 square feet of
gaming space with approximately 7,900 slot machines, approximately 300 table
games and approximately 5,500 hotel rooms.
We view each property as an operating segment which we aggregate by region in
order to present our reportable segments: (i) East, (ii) Central, (iii) West and
(iv) South. As of March 31, 2017, our operations by region include the
following:
•      East-Tropicana Casino and Resort, Atlantic City ("Tropicana AC") located
       in Atlantic City, New Jersey;


•      Central- Tropicana Evansville ("Tropicana Evansville") located in
       Evansville, Indiana; and Lumière Place Casino, HoteLumière, the Four
       Seasons Hotel St. Louis (collectively, "Lumière Place") located in Saint
       Louis, Missouri;


•      West-Tropicana Laughlin Hotel and Casino ("Tropicana Laughlin") located in
       Laughlin, Nevada; and MontBleu Casino Resort & Spa ("MontBleu") located in
       South Lake Tahoe, Nevada; and


•      South -Belle of Baton Rouge Casino and Hotel ("Belle of Baton Rouge")
       located in Baton Rouge, Louisiana; Trop Casino Greenville ("Tropicana
       Greenville") located in Greenville, Mississippi; and Tropicana Aruba
       Resort and Casino ("Tropicana Aruba") located in Palm Beach, Aruba.



The Company, through its wholly-owned subsidiary, TEI Management Services LLC,
also provided management services to the Taj Mahal Casino Hotel property ("Taj
Mahal") in Atlantic City, which is a related party to the Company, that was
closed in October 2016 and subsequently sold in March 2017. In addition, the
Company, through our wholly-owned subsidiary, TropWorld Games LLC, operates an
online social gaming site. The operating results of all other subsidiaries of
the Company are reported under the heading of "Corporate and other" as they have
been determined to not meet the aggregation criteria as separately reportable
segments.
We are a Delaware corporation formed on May 11, 2009 to acquire certain assets
of Tropicana Entertainment Holdings, LLC ("TEH"), and certain of its
subsidiaries, pursuant to their plan of reorganization (the "Plan") under
Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code"). The
Company also acquired Columbia Properties Vicksburg ("CP Vicksburg"), JMBS
Casino, LLC ("JMBS Casino") and CP Laughlin Realty, LLC ("CP Laughlin Realty"),
all of which were part of the same plan of reorganization (the "Plan") as TEH
(collectively, the "Predecessors"). In addition, we acquired certain assets of
Adamar of New Jersey, Inc. ("Adamar"), an unconsolidated subsidiary of TEH,
pursuant to an amended and restated asset purchase agreement, including
Tropicana AC. The reorganization of the Predecessors and the acquisition of
Tropicana AC (together, the "Restructuring Transactions") were consummated and
became effective on March 8, 2010 (the "Effective Date"), at which time we
acquired Adamar and several of the Predecessors' gaming properties and related
assets. Adamar was not a party to the Predecessors' bankruptcy. Prior to the
Effective Date, we conducted no business, other than in connection with the
reorganization of the Predecessors and the acquisition of Tropicana AC, and had
no material assets or liabilities.
Except where the context suggests otherwise, the terms "we," "us," "our," and
"the Company" refer to Tropicana Entertainment Inc. and its subsidiaries.

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Results of Operations
Our financial results are highly dependent upon the number of customers that we
attract to our facilities and the amounts those customers spend per visit.
Additionally, our operating results may be affected by, among other things,
overall economic conditions affecting the discretionary spending of our
customers, competitive factors, gaming tax increases and other regulatory
changes, the opening or acquisition of new gaming operations, our ability to
reinvest in our properties, potential future exposure for liabilities of the
Predecessors that we assumed, and general public sentiment regarding travel. We
may experience significant fluctuations in our quarterly operating results due
to seasonality and other factors. Historically, our operating results are the
strongest in the third quarter and the weakest in the fourth quarter. In
addition, weather and long-weekend holidays affect our operating results.
Casino revenues are one of our main performance indicators and account for a
significant portion of our net revenues. Casino revenues represent the
difference between wins and losses from gaming activities such as slot machines
and table games. Key volume indicators include table games volumes and slot
volumes, which refer to amounts wagered by our customers. Win or hold percentage
represents the percentage of the amounts wagered by the customer that is won by
the casino, which is not fully controllable by us, and recorded as casino
revenue. Most of our revenues are cash-based, through customers wagering with
cash or chips or paying for non-gaming services with cash or credit cards, and
therefore are not subject to any significant or complex estimation. As a result,
fluctuations in net revenues have a direct impact on cash flows from operating
activities. Other performance indicators include hotel occupancy, which is a
volume indicator for hotels, and the average daily rate, which is a price
indicator for the amount customers paid for hotel rooms.
The following significant factors and trends should be considered in analyzing
our operating performance:
•      Atlantic City Market. Between January 2014 and October 2016, five Atlantic
       City casino hotels closed as a result of regional competitive market
       pressures and other factors. The Atlantic City gaming market experienced
       significant revenue declines in 2014 and 2015 due, in part, to these
       closures and market competition. In 2016, the Atlantic City gaming market
       experienced a slight 1.5% increase in casino revenue over 2015, including
       revenue from internet gaming which commenced in 2013. In addition, in
       November 2016 the State of New Jersey commenced a takeover of certain
       Atlantic City local government operations under a law enacted in May 2016,
       which gives the State the ability to direct certain financial and
       operational matters on behalf of the city in an effort to stabilize and
       strengthen its financial situation. The State's ability to stabilize
       Atlantic City's finances and restructure its debt is an important step
       toward improving the Atlantic City market.


•      Table games hold percentages. Casino revenues can vary because of table
       games hold percentages and differences in the odds for different table
       games. A variety of factors may impact table games hold, including
       variances in the amount of high end play. For the three months ended
       March 31, 2017 and 2016, the Company's total table games hold was 18.2%
       and 19.1%, respectively. This hold percentage is not necessarily
       indicative of results that can be expected for future periods.


•      Debt and Interest Expense. In November 2013, we entered into the credit
       facilities (the "Credit Facilities"), which consist of (i) a senior
       secured first lien term loan facility in an aggregate principal amount of
       $300 million issued at a discount of 0.5% (the "Term Loan Facility") and
       (ii) a senior secured first lien revolving credit facility in an aggregate
       principal amount of $15 million (the "Revolving Facility"). Commencing on
       December 31, 2013, the Term Loan Facility requires quarterly principal
       payments of $750,000 through September 2020 with the remaining outstanding
       amounts due on November 27, 2020, the maturity date. The obligations under
       the Term Loan Facility accrue interest at a floating rate which was 4.00%
       as of March 31, 2017. A portion of the net proceeds from the Term Loan
       Facility was used to repay in full the amounts outstanding under the
       then-existing term loan facility which totaled approximately $172.4
       million in repaid principal, accrued and unpaid interest. The Revolving
       Facility was terminated by the Company effective March 31, 2017, in
       accordance with the terms of the Credit Agreement. There were no amounts
       outstanding under the Revolving Facility at the time of the termination.


Our interest expense was $3.0 million and $3.2 million for the three months
ended March 31, 2017 and 2016, respectively, which includes amortization of the
related debt discounts and debt issuance costs of $0.2 million and $0.3 million
for the three months ended March 31, 2017 and 2016, respectively, offset by
approximately $0.2 million of capitalized interest in the three months ended
March 31, 2017; no interest was capitalized in the three months ended March 31,
2016.
•      Insurance and other recoveries. In 2016, we filed a property damage and
       business interruption claim with our insurance carrier related to our
       HoteLumière room renovation projected that commenced in July 2016. In
       December 2016 we received insurance proceeds of $1.0 million toward the
       claim, which was recorded as a gain in 2016. In April 2017 we received
       additional insurance proceeds of $1.3 million, representing the balance of
       the property damage claim; this amount was recorded as a gain in the three
       months ended March 31, 2017.



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•      Cost Efficiencies. We continue to focus on areas where we may institute
       efficiency initiatives which may result in cost savings. In the past,
       these cost saving initiatives have included centralizing purchasing
       functions to reduce costs and maximize our potential buying power,
       consolidating and streamlining certain back office operations and
       decreasing benefits expense related to our company-sponsored plans.

Three months ended March 31, 2017 compared to three months ended March 31, 2016 The following table sets forth certain information concerning our results of operations (dollars in thousands):

                                    Three months ended March 31,
                                      2017                 2016
Net revenues:
East                            $       88,259       $       74,915
Central                                 73,531               75,365
West                                    27,447               28,208
South                                   26,900               26,665
Corporate and other                      1,250                    -
Total net revenues              $      217,387       $      205,153
Operating income (loss):
East                            $        9,879       $        1,491
Central                                 15,601               13,912
West                                     3,085                4,137
South                                    4,687                3,931
Corporate and other                     (3,779 )             (4,906 )
Total operating income          $       29,473       $       18,565
Operating income margin(a):
East                                      11.2 %                2.0 %
Central                                   21.2 %               18.5 %
West                                      11.2 %               14.7 %
South                                     17.4 %               14.7 %
Total operating income margin             13.6 %                9.0 %


(a)Operating income margin is operating income as a percentage of net revenues. The following table presents detail of our net revenues (in thousands):

                                        Three months ended March 31,
                                          2017                 2016
Revenues:
Casino                              $      177,420       $      165,055
Room                                        29,686               28,540
Food and beverage                           24,665               25,886
Other                                        6,806                7,217
Management fee from related party            1,250                    -
Gross revenues                             239,827              226,698
Less promotional allowances                (22,440 )            (21,545 )
Net revenues                        $      217,387       $      205,153

Net Revenues In the East region, net revenues were $88.3 million for the three months ended March 31, 2017, an increase of $13.3 million, or 17.8%, when compared to the three months ended March 31, 2016. Tropicana AC's net revenues comprise approximately 41% and 37% of the Company's total net revenues for the three months ended March 31, 2017 and 2016, respectively. Tropicana AC's gross casino win (including internet gaming revenue) for the three months ended March 31, 2017 increased 25.9% over the three months ended March 31, 2016, outpacing the 5.7% increase in gaming revenues (including internet gaming revenue) in the total Atlantic City market, as reported, for the first quarter of 2017 in comparison to the same period of 2016. Gaming volumes at Tropicana AC reflected increases during the first quarter of 2017 compared to the comparable prior year period, including a 23.0% increase in table drop and a 27.1% increase in slot handle. The improvement in


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Tropicana AC's gaming volume was due, in part, to marketing efforts directed
towards customers who formerly visited the Taj Mahal casino; when the Taj Mahal
closed in October 2016, Tropicana AC entered into an agreement to license (and
subsequently purchased) the Taj Mahal customer database. Volume improvements at
the Tropicana AC are also attributable to renovation projects completed at the
property in 2016 and 2015, including hotel room renovations, a new high-end slot
area on the casino floor, a new TropAdvantage club promotional area, new and
renovated restaurants and other improvements. The table hold for the three
months ended March 31, 2017 was 17.0%, compared to 16.5% in the same period of
2016. The hotel occupancy and average daily room rate was 77% and $81,
respectively, for the three months ended March 31, 2017, compared to 74% and
$80, respectively, for the three months ended March 31, 2016.
In the Central region, net revenues were $73.5 million for the three months
ended March 31, 2017, a decrease of $1.8 million from the three months ended
March 31, 2016. Slot volumes in the Central region increased 2.4% in the first
quarter of 2017 as compared to the same period of 2016, while slot revenues
increased 3.4%, or $1.9 million, in the region during the first quarter of 2017
as compared to the first quarter of 2016. However, table games revenue in the
Central region declined 9.4%, or $1.2 million, in the first quarter of 2017,
primarily due to a lower table hold at Tropicana Evansville, which was 20.1% for
the three months ended March 31, 2017, compared to 24.5% for the same period of
2016. Table games volumes in the Central region increased 1.3% in the first
quarter of 2017. The occupancy rate for the three months ended March 31, 2017 in
the Central Region was 78%, compared to 75% in the first quarter of 2016, while
the average daily room rate was $127 for the three months ended March 31, 2017,
compared to $126 for the three months ended March 31, 2016. The room renovation
project at Lumière Place was completed during the first quarter of 2017.
In the West region, net revenues were $27.4 million for the three months ended
March 31, 2017, a decrease of $0.8 million, or 2.7%, compared to the three
months ended March 31, 2016. Gaming volumes at MontBleu, which declined 9.6% in
the first quarter of 2017 compared to the same period of 2016, were impacted by
severe winter weather throughout the first quarter of 2017, as well as increased
marketing efforts by competitors. The decreased volumes, combined with a lower
table games hold in the region, which was 19.2% in the first quarter of 2017
compared to 22.5% in the first quarter of 2016, resulted in a 2.4% decline in
total casino revenue for the three months ended March 31, 2017 compared to the
three months ended March 31, 2016. The average daily room rate for the West
region was $49 for the three months ended March 31, 2017, compared to $51 for
the comparable prior year period. The occupancy rate in the West region was 58%
for the three months ended March 31, 2017, as compared to 56% occupancy for the
three months ended March 31, 2016.
In the South region, net revenues were $26.9 million for the three months ended
March 31, 2017, an increase of $0.2 million, or 0.9%, compared to the three
months ended March 31, 2016. Casino revenues for the South region increased 2.7%
in the three months ended March 31, 2017, compared to the prior year period,
driven primarily by higher slot volumes and gross slot revenue at Belle of Baton
Rouge; however, higher promotional slot free play redemptions offset the
increase in gross slot revenue. Timeshare sales at the Tropicana Aruba were $0.9
million in the first quarter of 2017, compared to $0.8 million in the first
quarter of 2016. The occupancy rate at our properties in the South region was
73% for the three months ended March 31, 2017 compared to 72% for the same
period of 2016. The average daily room rate for the South region was $98 and $92
for the three months ended March 31, 2017 and 2016, respectively.
Net revenues for Tropicana Entertainment Corporate and other division represent
the management fee earned as a result of our management of the Taj Mahal.
Operating Income
In the East region, Tropicana AC reported an operating income for the three
months ended March 31, 2017 of $9.9 million, a $8.4 million increase compared to
$1.5 million of operating income in the three months ended March 31, 2016. The
improvement in operating results in the East region was primarily driven by the
increased operating revenues, as discussed previously. Although operating
expenses, such as gaming taxes, payroll costs, and promotional costs, also
increased as a result of the higher business volumes, the operating income
margin for the three months ended March 31, 2017 improved to 11.2%, as compared
to 2.0% for the three months ended March 31, 2016.
In the Central region, the operating income for the three months ended March 31,
2017 was $15.6 million, a $1.7 million increase over the three months ended
March 31, 2016. Although revenues in the Central region reflected a decline for
the first quarter of 2017 as compared to the first quarter of 2016, a decrease
in depreciation expense of $1.2 million at Lumière Place, combined with a $1.3
million gain on insurance proceeds at the property, more than offset the decline
in revenue for the period.
In the West region, the operating income for the three months ended March 31,
2017 was $3.1 million, a $1.1 million decrease compared to the three months
ended March 31, 2016. The decrease is mainly attributable to the decrease in
revenues as previously discussed, combined with increased depreciation expense
in the region; decreases in operating expenses as a result of the lower business
volumes partially offset the decline in revenue.

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In the South region, operating income for the three months ended March 31, 2017
was $4.7 million, an increase of $0.8 million over the operating income for the
three months ended March 31, 2016. In addition to the increase in net revenues
in the region, as previously discussed, reductions in certain operating costs,
such as costs associated with timeshare sales, payroll costs and repairs and
maintenance costs, contributed to the improvement in operating income.
The Corporate and other operating loss, which includes the results of all other
subsidiaries of the Company, was $3.8 million for the three months ended
March 31, 2017, reflecting improvement over the three months ended March 31,
2016 primarily due to the recognition of $1.3 million of revenue during the
first quarter of 2017 related to the TEI Management Services LLC agreement to
manage the Taj Mahal Casino Hotel.
Interest Expense
Interest expense for the three months ended March 31, 2017 and 2016 was $3.0
million and $3.2 million, respectively. The interest expense on our Term Loan
Facility accrues at a floating rate, which was 4.0% per annum as of March 31,
2017. Cash paid for interest, net of interest capitalized, was $2.7 million and
$3.0 million for the three months ended March 31, 2017 and 2016, respectively.
Interest expense also includes $0.2 million and $0.3 million, respectively, of
amortization of debt issuance costs and discounts for each of the three months
ended March 31, 2017 and March 31, 2016.
Income Taxes
Income tax expense was $16.0 million and $6.2 million, for the three months
ended March 31, 2017 and 2016, respectively, and our effective income tax rate
was 38.3% and 40.0% for the same periods, respectively. The difference between
the federal statutory rate of 35% and the effective tax rate for the three
months ended March 31, 2017 and 2016 was primarily due to disallowed foreign
losses, state income taxes (net of federal benefit), and other permanent
differences.
Termination Fee from Related Party
Concurrently with the sale of the Taj Mahal to a third party and the surrender
of TTMA's New Jersey casino license on March 31, 2017, TTMA exercised its right
to terminate the Management Agreement without Cause (as defined in the
Management Agreement), at which time TEI Management Services LLC was paid a
termination fee of $15 million pursuant to the provisions of the Management
Agreement.
Liquidity and Capital Resources
Our cash flows are and will continue to be affected by a variety of factors,
many of which are outside of our control, including regulatory restrictions,
competition, financial markets and other general business conditions. We believe
that we will have sufficient liquidity through available cash, credit facilities
and cash flow from our properties to fund our cash requirements and capital
expenditures for our normal operating activities for at least twelve months.
However, we cannot provide assurance that we will generate sufficient income and
liquidity to meet all of our liquidity requirements and other obligations as our
results for future periods are subject to numerous uncertainties that may result
in liquidity problems that could affect our ability to meet our obligations
while attempting to meet competitive pressures or adverse economic conditions.
In addition, we continually evaluate our financing needs and we may refinance
all or a portion of our indebtedness on or before maturity. Liquidity may be
impacted if additional stock repurchases are made under the stock repurchase
program noted below (the "Stock Repurchase Program").
Part of our overall strategy includes consideration of expansion opportunities
in new gaming jurisdictions, underserved markets and acquisition and other
strategic opportunities that may arise periodically. We may require additional
funds in order to execute on such strategic growth, and we may incur additional
debt or issue additional equity to finance any such transactions. We cannot
assure that we will be able to incur such debt or issue any such additional
equity on acceptable terms or at all.
Our material cash requirements for our existing properties for 2017 are expected
to include (i) principal and interest payments related to our Term Loan Facility
of $3.0 million and $11.8 million, respectively, (ii) maintenance capital
expenditures expected to be approximately $31 million, (iii) growth capital
expenditures expected to be approximately $22 million, (iv) expenditures related
to the Company's $50 million commitment to develop a landside gaming facility at
Tropicana Evansville, estimated to be approximately $45 million in 2017, and
(iv) minimum lease payments under our operating leases of approximately
$8.7 million. Except for the commitment to spend $50 million of capital
renovation at Tropicana Evansville required by the Sixth Amendment, the majority
of our planned capital expenditures are discretionary and we may decide to spend
more or less than the amounts described above.

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The following table summarizes our cash flows (in thousands):

                                                            Three months ended March 31,
                                                               2017               2016
Cash Flow Information:
Net cash provided by operating activities                $      46,507       $      23,493
Net cash used in investing activities                          (32,615 )           (17,774 )
Net cash (used in) provided by financing activities               (752 )             3,271
Net increase in cash and cash equivalents                $      13,140       $       8,990


During the three months ended March 31, 2017, our operating activities provided
$46.5 million in cash. Cash paid for interest, net of interest capitalized, was
$2.7 million and $3.0 million for the three months ended March 31, 2017 and
2016, respectively. This variance primarily relates to the capitalization of
interest in 2017. Net cash provided by operating activities for the three months
ended March 31, 2017 improved over the prior year period primarily due to the
improvement in operating income during the period, combined with the receipt of
the $15 million termination fee as a result of the sale of the Taj Mahal to a
third party and concurrent termination of the Management Agreement.
During the three months ended March 31, 2017, our investing activities used
$32.6 million in cash. Net cash used in investing activities primarily consisted
of $25.0 million for capital expenditures and $8.1 million for the acquisition
of the Taj Mahal's customer database and other intellectual property. Net cash
used in investing activities during the three months ended March 31, 2016
consisted primarily of $16.0 million for capital expenditures, partially offset
by $1.9 million of Approved CRDA Project Fund reimbursements received and
proceeds from the cancellation of the Ruby Seven preferred stock. Capital
expenditures relate to expenditures necessary to keep our existing properties at
their current levels and are typically replacement items due to the normal wear
and tear of our properties and equipment as a result of use and age.
During the three months ended March 31, 2017, our financing activities used
$0.8 million in cash, consisting primarily of principal payments on the Term
Loan Facility. Net cash provided by financing activities for the three months
ended March 31, 2016 primarily consisted of the proceeds of $7.6 million
previously classified as restricted cash for certain bankruptcy-related
professional fee liabilities, offset by principal payments on the Term Loan
Facility of $0.8 million, combined with the buy back of the Company's common
stock under the Stock Repurchase Program of $3.5 million, as further described
below
Credit Facilities
On November 27, 2013, we entered into (i) a senior secured first lien term loan
facility in an aggregate principal amount of $300 million, issued at a discount
of 0.5% (the "Term Loan Facility") and (ii) a senior secured first lien
revolving credit facility in an aggregate principal amount of $15 million (the
"Revolving Facility" and, together with the Term Loan Facility, the "Credit
Facilities"). Commencing on December 31, 2013, the Term Loan Facility is
amortized in equal quarterly installments of $750,000, with any remaining
balance payable on the final maturity date of the Term Loan Facility, which is
November 27, 2020.

The Revolving Facility was terminated by the Company effective March 31, 2017, in accordance with the terms of the Credit Agreement. There were no amounts outstanding under the Revolving Facility at the time of the termination.

Approximately $172.4 million of the net proceeds from the Credit Facilities were used to repay in full the principal amounts outstanding under our then-existing credit facilities, which were terminated effective as of November 27, 2013. A portion of the proceeds from the Credit Facilities was also used to finance our acquisition of Lumière Place in April 2014.

The Term Loan Facility accrues interest, at our option, at a per annum rate equal to either (i) the LIBO Rate (as defined in the Credit Agreement) (subject to a 1.00% floor) plus an applicable margin equal to 3.00%, or (ii) the alternate base rate (as defined in the Credit Agreement) (subject to a 2.00% floor) plus an applicable margin equal to 2.00%; such that in either case, the applicable interest rate shall not be less than 4.0%. The interest rate increases by 2.00% following certain defaults. As of March 31, 2017, the interest rate on the Term Loan Facility was 4.0%.

At our election and subject to certain conditions, including a maximum senior secured net leverage ratio of 3.25:1.00, the amount available under the Credit Facilities may be increased, which increased amount may be comprised of additional term loans and revolving loans.

The Term Loan Facility may be prepaid at our option at any time without penalty (other than customary LIBO Rate breakage fees). We are required to make mandatory payments of the Credit Facilities with (i) net cash proceeds of certain asset sales (subject to reinvestment rights), (ii) net cash proceeds from certain issuances of debt and equity (with certain exceptions),


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(iii) up to 50% of annual excess cash flow (as low as 0% if our total leverage ratio is below 2.75:1.00), and (iv) certain casualty proceeds and condemnation awards (subject to reinvestment rights).

Our interest expense for the three months ended March 31, 2017 and 2016 was $3.0 million and $3.2 million, respectively, which includes $0.2 million and $0.3 million of amortization of the related debt discounts and debt issuance costs for the three months ended March 31, 2017 and 2016, respectively.

Stock Repurchase Program

On July 31, 2015 our Board of Directors authorized the repurchase of up to $50 million of our outstanding common stock with no set expiration date. On February 22, 2017, our Board of Directors authorized the repurchase of an additional $50 million of our outstanding stock, for the repurchase of an aggregate amount of up to $100 million of our outstanding common stock. The Stock Repurchase Program will end upon the earlier of the date on which the plan is terminated by the Board of Directors or when all authorized repurchases are completed. The timing and amount of stock repurchases, if any, will be determined based upon our evaluation of market conditions and other factors. The Stock Repurchase Program may be suspended, modified or discontinued at any time and we have no obligation to repurchase any amount of our common stock under the Stock Repurchase Program.


There were no repurchases of our stock under the Stock Repurchase Program during
the three months ended March 31, 2017. During the first quarter of 2016, we
repurchased 221,578 shares of our stock under the Stock Repurchase Program. The
repurchased shares were subsequently retired.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements as defined in
Item 303(a)(4)(ii) of SEC Regulation S-K.
Critical Accounting Policies
There have been no material changes to our critical accounting policies during
the three months ended March 31, 2017 compared to those reported in our Annual
Report on Form 10-K for the year ended December 31, 2016.

© Edgar Online, source Glimpses

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Financials ($)
Sales 2017 909 M
EBIT 2017 52,9 M
Net income 2017 -
Debt 2017 -
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018 -
Capi. / Sales 2017 1,03x
Capi. / Sales 2018 -
Capitalization 936 M
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Tropicana Entertainment In Technical Analysis Chart | TPCA | US89708X1054 | 4-Traders
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Income Statement Evolution
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Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 1
Average target price 47,0 $
Spread / Average Target 24%
Consensus details
Managers
NameTitle
Anthony P. Rodio President, Chief Executive Officer & Director
Carl Celian Icahn Chairman
Theresa A. Glebocki Chief Financial Officer, Treasurer & Executive VP
Daniel A. Cassella Independent Director
Daniel H. Scott Independent Director
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