Caesars Entertainment Reports Fourth-Quarter and Full-Year 2013 Results

   Caesars Entertainment Reports Fourth-Quarter and Full-Year 2013 Results

PR Newswire

LAS VEGAS, March 11, 2014

LAS VEGAS, March11, 2014 /PRNewswire/ -- Caesars Entertainment Corporation
(NASDAQ: CZR) today reported the following fourth-quarter and full-year 2013
results.

Caesars Entertainment Corporation logo.

  oRecently announced asset sales to Caesars Growth Partners, LLC
    demonstrating the Company's efforts to strengthen CEOC's financial
    position and capital structure
  oOngoing positive trends in F&B and hotel revenue in Las Vegas drove
    improved performance in 4Q of 2013
  oSuccessful completion of CGP LLC transaction in Nov 2013; CGP LLC Q4
    results consolidated into Caesars Entertainment
  oCIE launched real money online gaming in New Jersey on Nov 26
  oLaunched the LINQ at the end of Q4; on track to fully-open venue and
    unveil the High Roller in coming months
  oStrategic partnerships with Starwood Hotels & Resorts and Live Nation
    broaden and enrich hospitality experience

Summary of Financial Data

The table below highlights certain GAAP and non-GAAP financial measures:

             Three Months Ended                               Years Ended December
             December 31,            Percent                  31,                     Percent
(Dollars in
millions,    2013        2012^(7)    Favorable/(Unfavorable)  2013        2012^(7)    Favorable/(Unfavorable)
except per
share data)
Casino
revenues ^   $ 1,412.0   $ 1,487.3   (5.1)%                   $ 5,808.8   $ 6,243.0   (7.0)%
(1)
Net revenues 2,078.4     2,014.9     3.2%                     8,559.7     8,580.4     (0.2)%
^(1)
Loss from
operations   (1,864.2)   (353.4)     (427.5)%                 (2,234.6)   (319.9)     (598.5)%
^(1) (2) (3)
Loss from
continuing
operations,  (1,751.5)   (435.8)     (301.9)%                 (2,909.8)   (1,388.2)   (109.6)%
net of
income taxes
^(1) (3)
Loss from
discontinued
operations,  (0.5)       (40.7)      98.8%                    (30.0)      (114.6)     73.8%
net of
income taxes
Net loss
attributable (1,756.9)   (480.3)     (265.8)%                 (2,948.2)   (1,508.1)   (95.5)%
to Caesars
^(3)
Basic and
diluted loss (12.83)     (3.84)      (234.1)%                 (22.93)     (12.04)     (90.4)%
per share
^(4)
Property     386.4       441.4       (12.5)%                  1,876.6     2,028.1     (7.5)%
EBITDA ^(5)
Adjusted     406.3       420.1       (3.3)%                   1,854.5     1,937.7     (4.3)%
EBITDA ^(6)

____________________

^(1) - ^(7) See footnotes following Caesars Growth Partners LLC results later
in this release.

Management Commentary

"During 2013 we invested significantly in our properties and executed a number
of initiatives to enhance the company's capital structure and better position
the company for sustainable growth," said Gary Loveman, chairman, chief
executive officer and president of Caesars Entertainment Corporation. "The
recently announced asset sale to Caesars Growth Partners further supports
these objectives by increasing liquidity at our CEOC subsidiary and
facilitating new investment in some of the assets.

"While the operating environment remained challenging in the fourth quarter,
we are encouraged by volume and visitation trends in our core market of Las
Vegas. We are excited about our prospects here fueled by organic growth and
continued investments in hospitality assets, most notably the LINQ and the
High Roller. Looking ahead, our efforts to improve the company's capital
structure remain a key priority as we build on our recent actions and leverage
our operating and financial toolbox to create value. The asset sale is an
important step in our ongoing efforts to improve the health of the CEOC
subsidiary. The process to address CEOC's condition is well underway, but will
take quite some time to achieve. I am proud of the milestones we have reached
to date and look forward to making much more progress."

Basis of Presentation

In the fourth quarter of 2013, Caesars with its operating company, Caesars
Entertainment Operating Company, Inc. ("CEOC") consummated two
transformational transactions, creating a new structure called Caesars
Entertainment Resort Properties ("CERP") and closing transactions that formed
Caesars Growth Partners, LLC ("CGP LLC"), an entity that we consolidate as a
variable interest entity.

The operating results of CEOC, CERP and CGP LLC presented later in this
release cannot be added together to derive consolidated CEC results for the
following reasons:

  oCERP results presented herein reflect intercompany lease income from
    Octavius Tower for all periods presented, even though it was only acquired
    by CERP in October 2013. As this income is also presented in CEOC (the
    owner of the Tower until its transfer to CERP) for periods prior to the
    sale, results would be duplicated without proper elimination;
  oCEOC results presented herein reflect the operating results of Planet
    Hollywood through the sale date in October 2013 and CGP LLC results
    include Planet Hollywood for all periods presented;
  oEliminating and consolidating entries are not presented in the tables; and
  oCEC parent company operating results are not included.

In the discussion below, the words "Company", "Caesars", "Caesars
Entertainment", "we", "our" and "us" refer to Caesars Entertainment and its
consolidated entities, unless otherwise stated or the context requires
otherwise.

Consolidated Financial Results

Fourth Quarter 2013 results compared with Fourth Quarter 2012

Net Revenues

Net revenues increased 3.2% compared with the prior year quarter, primarily
due to the combination of increases in revenues of Caesars Interactive
Entertainment, Inc. ("CIE"), increases in pass-through reimbursable management
costs and a decrease in promotional allowances, partially offset by a decline
in casino revenue.

Casino revenues declined $75.3 million, or 5.1%, compared with the prior year
quarter, due to the continued impact of increased regional competition and
continued softness in the domestic gaming market in certain U.S. regional
markets outside of Nevada as well as the reduction of revenues resulting from
the partial sale of our Conrad Punta del Este casino in Uruguay ("the Conrad")
in the second quarter 2013. Gaming volumes for table games were up, driven by
strong results in the Las Vegas region. Slot volumes were slightly down,
driven by regional weakness consistent with slot trends over the recent past.
Additionally, revenues were negatively impacted by increases in certain
variable marketing programs, such as REEL REWARDS, discounts, and free play,
that are treated as reduction of revenue. On a consolidated basis, we
experienced slightly favorable hold (the portion of aggregate slot wagers and
table drop that are retained by the casino as win ("hold")) in 2013 compared
with the prior year, driven by the Las Vegas properties.

On a consolidated basis, rooms revenue increased $17.4 million, or 6.4%,
versus the prior year quarter, as a result of an increase in the average daily
rate paid for rooms sold, excluding fully complimentary rooms ("cash ADR") to
$100 in 2013 from $85 in 2012, primarily attributable to resort fees, which
were introduced in Las Vegas and other Nevada properties beginning in March
2013. Hotel occupancy decreased 0.8 percentage points to 83% in 2013.

Reimbursable management costs increased to $64.9 million from $23.6 million,
when compared with the 2012 quarter, due to new managed properties, including
Horseshoe Cincinnati, which opened in March 2013 and ThistleDown Racetrack in
Ohio ("Thistledown Racino"), which commenced video lottery terminal operations
in April 2013. Reimbursable management costs are presented on a gross basis as
revenue and expense, thus resulting in no net impact on operating income.

Loss from Operations

Loss from operations was $1,864.2 million compared with $353.4 million in the
prior year quarter, primarily due to higher non-cash intangible and tangible
asset impairment charges, which totaled $1,963.3 million in 2013, as compared
with $448.2million in 2012. Aside from the change in impairment charges, loss
from operations improved slightly by $4.3 million when compared with the same
quarter in the prior year, primarily due to the decrease in depreciation
expense.

During the fourth quarter 2013, several indicators arose that required us to
assess our goodwill, intangible assets and tangible assets for impairment.
These events included deteriorating market conditions in Atlantic City and
potential changes in the expected useful life of certain of our property
assets. Resulting impairments recorded were $1,963.3 million and consisted of
$1,852.0 million of long lived tangible assets and $111.3 million of
intangible asset impairments during the fourth quarter of 2013, compared with
total impairments of $448.2 million, primarily related to long lived tangible
assets, in the fourth quarter of 2012. We also wrote off our equity
investment in Suffolk Downs in Massachusetts in the fourth quarter 2013.

Net Loss and EBITDA measures

Net loss attributable to Caesars was $1,756.9 million compared with $480.3
million in the 2012 quarter, mainly due to the pre-tax impairments discussed
above, as well as a pre-tax $49.3 million increase in interest expense, and a
pre-tax $47.3 million loss on early extinguishment of debt in 2013 compared
with a pre-tax gain on extinguishment of debt of $56.5 million in 2012.
Partially offsetting the increased net loss attributable to Caesars was the
year over year change in loss from discontinued operations, which was a $0.5
million post-tax loss in 2013 compared with a $40.7 million post-tax loss in
2012 and the income tax benefit of the loss. Casino revenues were 67.9% of net
revenue in the 2013 quarter as compared to 73.8% in the 2012 quarter. These
factors are further described in "Additional Financial Information" that
follows herein.

Property EBITDA decreased $55.0 million, or 12.5%, compared with the prior
year quarter as a result of the income impact of lower casino revenues and the
sale of Harrah's St. Louis. Adjusted EBITDA decreased $13.8 million, or 3.3%.
Further details on these non-GAAP financial measures follow herein.

Year ended December 31, 2013 compared with December 31, 2012

Net Revenues

Net revenues were relatively unchanged in 2013 from 2012 as a $434.2 million
decrease in casino revenues was largely offset by increases in pass-through
reimbursable management costs, rooms, food and beverage, and other revenues,
coupled with lower promotional allowances. Net revenues attributable to CIE
increased from the prior year due to the combination of the Buffalo Studios
acquisition and continued strength in the social and mobile games business.
Las Vegas rooms and food and beverage revenues grew as a result of our
increased investment in hospitality offerings in this market.

Casino revenues declined in large part due to the continued weakness seen in
Atlantic City resulting from increased regional competition. Continued
softness in the domestic gaming market in certain other U.S. regional markets
outside of Nevada has also negatively impacted casino revenues, as has the
sale of the Conrad. Slot volumes were down in virtually all domestic markets,
while table volumes were relatively strong, primarily driven by baccarat in
Las Vegas. Casino revenues were also negatively affected by increased
variable marketing programs, notably in the fourth quarter. On a consolidated
basis, we experienced unfavorable hold in 2013 compared with 2012.

On a consolidated basis, rooms revenue increased $14.1 million, or 1.2%, and
cash ADR increased by 9% to $99 in 2013 from $91 in 2012, primarily from the
March 2013 introduction of resort fees at our Nevada properties. Occupancy
rates decreased 2.0 percentage points to 88% in 2013.

Reimbursable management costs increased to $268.1 million from $67.1 million,
when compared with the prior year, related to new managed properties,
including Horseshoe Cleveland, which opened in May 2012, Horseshoe Cincinnati
which opened in March 2013, ThistleDown Racino, which commenced video lottery
terminal operations in April 2013, and the Caesars Windsor management company,
which we are now consolidating since increasing our ownership in the
management company from 50% to 100% in June 2012. Reimbursable management
costs are presented on a gross basis as revenue and expense, thus resulting in
no net impact on operating income.

Loss from Operations

Loss from operations was $2,234.6 million, compared with $319.9 million in
2012. During the year several indicators arose that required us to test our
goodwill, intangible assets and tangible assets for impairment. During the
year, we recorded impairments of tangible assets of $2,564.7 million,
intangible assets of $349.9 million, and goodwill of $104.3 million in 2013,
for a total of$3,018.9 million, compared with total impairments of $1,074.2
million in 2012.

Loss from operations also worsened due to the income impact of the decline in
casino revenues, the write-off of our investment in Suffolk Downs in
Massachusetts, and a $52.9million charge for a contingent earnout liability
in 2013 related to the Buffalo Acquisition. These items were partially offset
by a $149.2 million decrease in depreciation expense resulting from assets
that became fully depreciated early in the first quarter 2013.

Net Loss and EBITDA measures

Net loss attributable to Caesars was $2,948.2 million, compared with $1,508.1
million in 2012. In addition to the factors described above, 2013 net loss
results include a $152.7 million increase in interest expense, partially
offset by an $84.6 million favorable change in the loss from discontinued
operations, net of income taxes, and a gain of $44.1 million related to the
sale of 45% of Baluma S.A., which owns and operates the Conrad. Additionally,
loss on early extinguishment of debt was $29.8 million in 2013 compared with a
gain on early extinguishment of debt of $136.0 million in 2012, driving an
unfavorable change of $165.8 million. Casino revenues were 67.9% of net
revenue in 2013 as compared to 72.8% in 2012. These factors are further
described in "Additional Financial Information" that follows herein.

Property EBITDA decreased $151.5 million, or 7.5%, primarily driven by the
income impact of the decline in casino revenues and the sale of Harrah's St.
Louis. Adjusted EBITDA decreased $83.2 million, or 4.3%. Further details on
these non-GAAP financial measures follow herein.

Regional Operating Results - Consolidated

To provide more meaningful information than would be possible on either a
consolidated basis or an individual property basis, the Company's casino
properties and other operations have been grouped into four regions. Operating
results for each of the regions, irrespective of which structure the
properties belong, are provided below.

Las Vegas

           Three Months Ended                           Years Ended December
           December 31,        Percent                  31,                     Percent
(Dollars
in         2013      2012      Favorable/(Unfavorable)  2013        2012        Favorable/(Unfavorable)
millions)
Net        $ 799.4   $ 742.6   7.6           %          $ 3,070.4   $ 3,029.9   1.3           %
revenues
Income
from       150.2     118.4     26.9          %          527.2       428.7       23.0          %
operations
Property
EBITDA     235.2     216.7     8.5           %          866.1       806.3       7.4           %
^(5)

____________________

Las Vegas properties include Bally's Las Vegas, Caesars Palace, The Cromwell
(formerly known as Bill's Gamblin' Hall& Saloon), Flamingo Las Vegas,
Harrah's Las Vegas, Paris Las Vegas, Planet Hollywood Resort & Casino, The
Quad Resort & Casino ("The Quad"), and Rio All-Suites Hotel & Casino.

Fourth Quarter 2013 results compared with Fourth Quarter 2012

Net revenues increased $56.8 million, or 7.6%, compared with the 2012 quarter,
primarily driven by growth in rooms and food and beverage revenue, which
benefited from resort fees and new venues, respectively. Casino revenues
remained flat compared with 2012 due to favorable Las Vegas hold that was
largely offset by the revenues impact of variable marketing programs.

Rooms revenues increased $16.2 million, or 8.8%, compared with the prior year
quarter. Resort fees, introduced in March 2013, contributed to a 19.5%
increase in cash ADR to $105 in 2013 from $88 in 2012. Occupancy declined by
3.6 percentage points to 88% in 2013. This decrease was primarily due to lower
group business and the disruption caused by construction activities related to
the LINQ project and the Quad renovation.

Food and beverage revenues increased $10.1 million, or 5.2%, compared with the
prior year due to the addition of several new restaurant offerings such as
Nobu at Caesars Palace and the Gordon Ramsay-branded restaurants at Caesars
Palace, Paris, and Planet Hollywood.

Income from operations increased $31.8 million, or 26.9%, as a result of the
positive impacts of the increase in net revenues discussed above and a
decrease in depreciation expense when compared to the prior quarter. These
factors were partially offset by an increase in property operating expenses,
primarily related to increased information technology and marketing expenses
compared to the prior year quarter.

Additionally, property EBITDA was $235.2 million compared with $216.7 million
in 2012, an increase of $18.5 million. Further details on this non-GAAP
financial measure follow herein.

Year ended December 31, 2013 compared with December 31, 2012

Net revenues increased 1.3% compared with 2012 on increases in rooms, food and
beverage and other revenues, which were largely offset by the decline in
casino revenues of $72.2 million, or 4.4%, compared with the prior year.
Casino revenues in 2013 were affected by increased variable marketing programs
and unfavorable hold when compared with 2012, while gaming volumes remained
flat year over year.

Food and beverage revenues increased $55.0 million, or 6.9%, due to the
addition of several new restaurants including Bacchanal Buffet at Caesars
Palace as well as the new restaurant offerings described in the quarterly
discussion above.

Rooms revenues increased $30.5 million, or 3.9%, primarily from resort fees,
which contributed to an increase in cash ADR to $102 in 2013 from $92 in 2012.
However, the region's occupancy declined 2.5 percentage points to 92% in 2013,
primarily due to lower group business.

Income from operations increased $98.5 million, or 23.0%, primarily due to the
net revenue increases described above and decreases in casino expenses and
depreciation expense.

Property EBITDA increased $59.8 million, or 7.4%, mainly due to the income
impact of higher net revenues. Further details on this non-GAAP financial
measure follow herein.

Atlantic Coast

           Three Months Ended                             Years Ended December
           December 31,          Percent                  31,                     Percent
(Dollars
in         2013        2012      Favorable/(Unfavorable)  2013        2012        Favorable/(Unfavorable)
millions)
Net        $  334.0    $ 335.1   (0.3)%                   $ 1,520.9   $ 1,681.3   (9.5)%
revenues
Loss from  (1,909.3)   (477.0)   (300.3)%                 (2,405.3)   (394.6)     (509.6)%
operations
Property
EBITDA     11.3        28.8      (60.8)%                  203.4       265.6       (23.4)%
^(5)

____________________

Atlantic Coast properties include Bally's Atlantic City, Caesars Atlantic
City, Harrah's Atlantic City, Harrah's Philadelphia, Horseshoe Baltimore and
Showboat Atlantic City.

Fourth Quarter 2013 results compared with Fourth Quarter 2012

Net revenues in the fourth quarter 2013 were relatively unchanged compared
with the prior year quarter during which Hurricane Sandy closed our properties
for five days in Atlantic City and two days in Philadelphia, significantly
reducing revenues in the 2012 quarter. Additionally, the Atlantic Coast
properties continue to be negatively affected by the competitive environment
in the region, which has caused a decline in visitation to its properties.
Casino revenues declined $10.8 million, or 3.7%, in 2013, compared with the
prior year quarter, offset by increases in food and beverage and rooms
revenues. Casino revenues declined due to increased spending on variable
marketing programs, partially offset by the impact of higher slot volumes and
favorable hold in 2013 compared with the prior year quarter.

Loss from operations was $1,909.3 million compared with $477.0 million in the
prior year, a worsening of $1,432.3 million, primarily due to tangible and
intangible asset impairment charges of $1,885.9 million in 2013 compared with
$450.0 million in the 2012 quarter. Aside from the impairment charges, loss
from operations remained relatively unchanged as a $17.7 million decrease in
depreciation expense was largely offset by increased property operating
expenses related to increased marketing spend and property taxes.

Property EBITDA in the region declined $17.5 million, or 60.8%, in 2013
compared with the prior year as a result of lower casino revenues and
increases in property operating expenses. Further details on this non-GAAP
financial measure follow herein.

Year ended December 31, 2013 compared with December 31, 2012

Net revenues decreased $160.4 million, or 9.5%, compared with 2012, primarily
due to the decline in casino revenues of $157.0 million, or 11.0%, as a result
of the continued decline in gaming volumes in this region compared with 2012,
while hold remained relatively flat. The region continues to be affected by
ongoing competitive pressure, and visitation to the region's properties has
not recovered following Hurricane Sandy in the fourth quarter 2012.

Loss from operations was $2,405.3 million in 2013 compared with $394.6 million
in 2012, primarily due to tangible and intangible asset impairment charges
totaling $2,444.5 million compared with $450.0 million in 2012, combined with
the income impact of lower net revenues. Property operating expenses in 2013
were lower than in the prior year as a result of decreases in costs
attributable to our cost savings initiatives, and depreciation expense
declines of $48.5 million.

Property EBITDA declined $62.2 million, or 23.4%, due to the income impact of
lower revenues, partially offset by the decline in property operating expense.
Further details on this non-GAAP financial measure follow herein.

We expect the region will continue to be challenged as a result of the
competitive pressures. We continue to consider our participation strategies in
this region to better align capacity with demand.

Other U.S

           Three Months Ended                           Years Ended December
           December 31,        Percent                  31,                     Percent
(Dollars
in         2013      2012      Favorable/(Unfavorable)  2013        2012        Favorable/(Unfavorable)
millions)
Net        $ 681.9   $ 715.5   (4.7)%                   $ 2,924.0   $ 3,048.8   (4.1)%
revenues
Income
from       95.1      149.6     (36.4)%                  56.6        33.2        70.5%
operations
Property
EBITDA     135.2     164.3     (17.7)%                  658.0       729.4       (9.8)%
^(5)

____________________

Other U.S. properties include Grand Biloxi Casino, Harrah's Council Bluffs,
Harrah's Joliet, Harrah's Lake Tahoe, Harrah's Laughlin, Harrah's Metropolis,
Harrah's New Orleans, Harrah's North Kansas City, Harrah's Reno, Harrah's
Tunica, Harveys Lake Tahoe, Horseshoe Bossier City, Horseshoe Council Bluffs,
Horseshoe Hammond, Horseshoe Southern Indiana, Horseshoe Tunica, Louisiana
Downs and Tunica Roadhouse Hotel and Casino.

Fourth Quarter 2013 results compared with Fourth Quarter 2012

Net revenues decreased by $33.6 million, or 4.7%, from the 2012 quarter,
reflecting the persistent softness in the regional markets as noted across the
industry in recent quarters, primarily attributable to lower visitation,
increased regional competition and severe weather in December 2013 across the
Midwest. Additionally, casino revenue declines of $40.3 million reflect the
factors mentioned plus unfavorable hold.

Income from operations was $95.1 million compared with $149.6 million in the
prior year, a decrease of $54.5 million, or 36.4%. In addition, declines in
casino revenue discussed above reduced income from operations but was
partially offset by an $18.0 million decrease in depreciation expense. In
2013, we reduced our preliminary impairment charges by a net $9.8million
compared to the net $50.8million reduction in the 2012 quarter, largely due
to the changes in estimates in our preliminary third quarter impairment charge
in each of the two years.

Property EBITDA declined $29.1 million, or 17.7%, compared with the prior year
quarter primarily due to the income impact of declines in revenues. Further
details on this non-GAAP financial measure follow herein.

Year ended December 31, 2013 compared with December 31, 2012

Net revenues declined $124.8 million, or 4.1%, in 2013 compared with the prior
year, primarily attributable to lower visitation to the region's properties,
driven by competition in the regional markets and the persistent softness in
the regional markets as noted above. Casino revenue declined $126.9 million
as a result of unfavorable hold and weaker slot volumes compared with 2012,
while table games volumes increased slightly.

Income from operations improved $23.4 million, or 70.5%, as a result of
reductions in property operating expenses related to lower variable costs and
a $45.4 million decrease in depreciation expense. Write-downs, reserves, and
project opening costs, net of recoveries were $9.4 million in 2013 compared
with $39.3 million in 2012, improving 2013 income from operations by $29.9
million. Additionally, non-cash impairment charges were $389.2 million in
2013 compared with $408.7 million in 2012.

Property EBITDA declined $71.4 million, or 9.8%, compared with prior year
mainly due to the income impact of lower revenues. Further details on this
non-GAAP financial measure follow herein.

Certain markets in the Other U.S. region have been challenged by new
competition, while others have been challenged by lower visitation trends over
time. We continue to evaluate our participation strategies in certain markets
to better align capacity with demand.

Managed, International and Other

              Three Months Ended      Percent                  Years Ended December    Percent
              December 31,                                     31,
(Dollars in   2013        2012        Favorable/(Unfavorable)  2013        2012        Favorable/(Unfavorable)
millions)
Net revenues
Managed       $ 76.7      $ 27.5      178.9%                   $ 318.5     $ 89.5      255.9%
International 85.8        121.5       (29.4)%                  366.3       455.2       (19.5)%
Other         100.6       72.7        38.4%                    359.6       275.7       30.4%
Total net     $ 263.1     $ 221.7     18.7%                    $ 1,044.4   $ 820.4     27.3%
revenues
Income/(loss)
from
operations
Managed       $ 5.0       $ 4.0       25.0%                    $ 20.4      $ 7.0       191.4%
International (2.4)       4.1         (158.5)%                 20.8        30.9        (32.7)%
Other         (202.8)     (152.6)     (32.9)%                  (454.3)     (425.1)     (6.9)%
Total loss
from          $ (200.2)   $ (144.5)   (38.5)%                  $ (413.1)   $ (387.2)   (6.7)%
operations

Managed properties include companies that operate three Indian-owned casinos,
as well as Horseshoe Cleveland, Horseshoe Cincinnati, Caesars Windsor, and
ThistleDown Racino since August 2012, when the racetrack was contributed to
Rock Ohio Caesars, LLC, a joint venture in which Caesars holds a 20% ownership
interest. Reimbursable management costs are presented on a gross basis as
revenue and expense, thus resulting in no net impact on results.

In March 2013, the Company closed the Alea Leeds casino in England and its
operating results have been classified as discontinued operations for all
periods presented and are excluded from the table above.

In May 2013, the Company sold 45% of its equity interest in the Conrad, and as
a result of this transaction, no longer consolidates this property's results
of operations, but instead accounts for it as an equity method investment. The
above table includes the consolidated results of the Conrad through May 31,
2013, and the equity method income or loss from operations beginning June 1,
2013.

In November 2013, we completed the sale of all of the equity interests of the
subsidiaries that held the Macau Land Concession. As a result, the related
operating results have been classified as discontinued operations for all
periods presented and are excluded from the table above.

Other is comprised of corporate expenses, including administrative, marketing,
and development costs, income from certain non-consolidated affiliates and the
results of CIE. CIE is a majority owned subsidiary of CGP LLC, which is
consolidated into our financial statements and whose results are presented
later in this release.

Fourth Quarter 2013 results compared with Fourth Quarter 2012

Reimbursable management costs increased $39.5 million, compared with the 2012
quarter, due to new managed properties opening in 2013 in Ohio, including
Horseshoe Cincinnati and ThistleDown Racino near Cleveland. Net revenues in
the international region declined $35.7 million, or 29.4%, in 2013 compared
with the prior year quarter, primarily as a result of the Conrad sale impact.

Other loss from operations was $202.8 million in 2013 compared with $152.6
million in the prior year. This change was primarily due to a $101.9 million
write-off of our investment in Suffolk Downs in Massachusetts in the fourth
quarter 2013.

Year ended December 31, 2013 compared with December 31, 2012

Increases in reimbursable management costs relate to new managed properties
described above and our consolidation of Caesars Windsor management company
since increasing our ownership of the management company from 50% to 100% in
June 2012. Net revenues in the international region declined $88.9 million, or
19.5%, in 2013 compared with the prior year, primarily as a result of the
Conrad sale, which resulted in a $73.8 million decrease in net revenues,
combined with net revenue declines at our London Clubs properties in 2013 due
to competitive pressures.

Other loss from operations was $454.3 million in 2013, compared with $425.1
million the prior year. This change was primarily due to a $101.9 million
write-off of our investment in Suffolk Downs in Massachusetts as mentioned
above, partially offset by improvement in operating results of CIE and a $33.6
million decrease in corporate expense.

Additional Financial Information

Interest Expense

During the fourth quarter 2013, interest expense increased by $49.3 million,
or 9.4%, to $575.3 million from $526.0 million from in the 2012 quarter,
primarily due to higher interest rates as a result of CEOC's February 2013
9.0% senior secured notes offering, the proceeds of which were used to repay a
portion of lower interest rate term loans on CEOC's credit facilities, as well
as with higher CEOC debt balances and increases in rates on the CERP
financing, which closed in the fourth quarter 2013. Interest expense for
fourth quarter 2013 includes $6.6 million of expenses related to derivatives
not designated as accounting hedges. Interest expense for fourth quarter 2012
includes (i) $2.5 million of expenses related to derivatives not designated as
accounting hedges and (ii) $7.2 million of expense due to amortization and
reclassification of losses on derivative instruments from Accumulated Other
Comprehensive Loss ("AOCL").

During the year ended December 31, 2013, interest expense increased $152.7
million, or 7.3%, from 2012 primarily due to higher interest rates as a result
of CEOC's February 2013 9.0% senior secured notes offering, the extension of
the maturities of CEOC debt, as well as higher CEOC debt balances and rates on
the CERP financing closed in 2013. Interest expense for 2013 includes (i)
$34.4 million of expenses related to derivatives not designated as accounting
hedges and (ii) $4.0 million of expense due to amortization and
reclassification of deferred losses on derivative instruments from AOCL.
Interest expense for 2012 includes (i) $140.0 million of expenses related to
derivatives not designated as accounting hedges and (ii) $28.4 million of
expense due to amortization and reclassification of deferred losses on
derivative instruments from AOCL.

Gain/(Loss) on Early Extinguishment of Debt

During the fourth quarter 2013, we recognized a $47.3 million loss on early
extinguishment of debt. The loss was primarily related to the CERP
refinancing. During the fourth quarter 2012, we repurchased $165.0 million
face value of CMBS Loans for $107.3 million, recognizing a net gain on early
extinguishment of debt of $56.5 million.

During the year ended December 31, 2013, we recognized a loss on early
extinguishment of debt of $29.8 million, primarily related to the CERP
refinancing and additional charges from the repurchase of debt under the CEOC
Credit Facility in the first and third quarters of 2013, partially offset by
third quarter gains on extinguishment of debt related to purchases of CMBS
Loans. During 2012, we recognized a net gain on early extinguishment of debt
of $136.0 million, primarily due to the purchase of $367.3 million face value
of CMBS debt for $229.3 million.

Gain on partial sale of subsidiary

In connection with the sale of 45% of our interest in the Conrad, we
recognized a gain of $44.1 million in the second quarter 2013. There was no
comparable amount in the prior year.

Benefit for Income Taxes

The effective tax rate benefit for the fourth quarter 2013 and 2012 was 29.4%
and 46.6%, respectively. The decrease in the 2013 effective tax rate benefit
is primarily due to deferred tax implications of the CGP LLC transaction in
2013, the change in our federal valuation allowance, and a larger tax benefit
from the reversal of uncertain tax positions in 2012.

The effective tax rate benefit for 2013 and 2012 was 34.7% and 38.5%,
respectively. The 2013 effective rate benefit was primarily impacted by the
tax benefits from a capital loss resulting from a tax election made for U.S.
federal income tax purposes and the reversal of uncertain tax positions offset
by the change in our federal valuation allowance and the deferred tax
implications of the CGP LLC transaction in 2013. The 2012 effective tax rate
benefit was primarily impacted by the tax benefit from the reversal of
uncertain tax positions offset by the tax effects of nondeductible goodwill
impairments.

Loss from discontinued operations, net of income taxes

During the fourth quarter 2013, loss from discontinued operations, net of
income taxes was $0.5 million compared with $40.7million in 2012, primarily
related to the fourth quarter 2012 sale of the Harrah's St. Louis casino.

During the year ended December 31, 2013, loss from discontinued operations,
net of income taxes was $30.0 million, primarily comprised of charges totaling
$21.5 million for exit activities and the write-down of intangible and
tangible assets related to the March 4, 2013 closure of the Alea Leeds casino
and net write-downs of $5.8 million related to our land concession in Macau.
During the year ended December 31, 2012, loss from discontinued operations,
net of income taxes was $114.6 million and included a $101.0 million non-cash
tangible asset impairment charge related to our land concession in Macau.

Cost-Savings Initiatives

The Company has undertaken comprehensive cost-reduction efforts to manage
expenses with current business levels. We estimate that our cost-savings
programs produced $7.2million and $12.1 million in incremental cost savings
for the fourth quarter and full year 2013, respectively, compared with the
same periods in 2012. Additionally, as of December 31, 2013, the Company
expects that these and other identified new cost-savings programs will produce
further annual cost-savings of $91.4 million, based on the full implementation
of current projects that are in process. As the Company realizes savings or
identifies new cost-reduction activities, this amount will change.

Recent Developments

Golden Nugget. On February 11, 2014, we permanently closed our Golden Nugget
casino in England.

Sale of Properties from CEOC to CGP LLC. On March 1, 2014, we executed a
definitive agreement to sell Bally's Las Vegas, The Cromwell, The Quad and
Harrah's New Orleans to CGP LLC for a purchase price of $2,200.0 million,
including assumed debt of $185.0 million, and committed project capital
expenditures of $223.0 million, resulting in anticipated cash proceeds to CEOC
of approximately $1,800.0 million.

CEOC Results

During the fourth quarter of 2013, the Company determined that certain amounts
related to intercompany insurance premiums within CEOC's unaudited
Consolidated Condensed Balance Sheets as of December31, 2013 and 2012, and
its unaudited Consolidated Condensed Statements of Operations and unaudited
Consolidated Condensed Statements of Cash Flows for the years ended
December31, 2013 and 2012 were improperly eliminated. The amounts were
determined to be immaterial to prior periods; however, correcting this error
in the fourth quarter would have been material to the fourth quarter results
of operations. Accordingly, we have recast prior CEOC results to reflect the
intercompany insurance premiums properly in all prior periods. CEC results, on
a consolidated basis, were not affected by this error. In addition, we changed
our accounting methods associated with accounting for income taxes on a
standalone presentation basis and pension accounting. Once recasting for the
prior period error described above, we are obligated to recast for all known
immaterial errors in prior periods. On a recasted basis, we remained in
compliance with the senior secured leverage ratio covenant under the CEOC
credit agreement at each reporting period, including and up to December 31,
2013.

Due to CEOC's continuing involvement with the LINQ and Octavius Tower, CEOC
continues to consolidate the related net assets and income statement impacts
into CEOC's financial results subsequent to the transfer of these properties
to CERP in October 2013, which is reflected in the tables below. Management
believes the Non-GAAP measures presented below are helpful to investors
because the LINQ and Octavius Tower are not legally owned by CEOC.
Reconciliation of Property EBITDA and Adjusted EBITDA to the most closely
related GAAP financial measure is presented later in this release.

CEOC is our wholly owned operating subsidiary that conducts a significant part
of our business operations. The following is being provided as supplementary
financial information. Full CEOC results will be provided in a report on Form
8-K subsequent to filing Caesars' Annual Report on Form 10-K ("Form 10-K") in
March 2014.

               Three Months Ended December 31,
               2013                                             2012
(Dollars in    CEOC Financial  Linq/Octavius(b)  CEOC Adjusted  CEOC Financial
millions)      Information                                      Information
Net revenues   $   1,497.1     $     3.2         $  1,493.9     $   1,577.3
Loss from      (869.8)         (4.3)             (865.5)        (343.9)
operations
Loss from
continuing
operations,    (1,046.9)       (9.2)             (1,037.7)      (458.4)
net of income
taxes
Loss from
discontinued
operations,    (0.5)           —                 (0.5)          (45.1)
net of income
taxes
Net loss
attributable   (1,049.0)       (9.2)             (1,039.8)      (506.2)
to CEOC
Property       271.9           5.6               266.3          349.9
EBITDA ^(a)
Adjusted       276.3           5.6               270.7          321.3
EBITDA ^(a)
               Years Ended December 31,
               2013                                             2012
(Dollars in    CEOC Financial  Linq/Octavius(b)  CEOC Adjusted  CEOC Financial
millions)      Information                                      Information
Net revenues   $   6,314.3     $     3.2         $  6,311.1     $   6,533.0
Loss from      (1,423.4)       (4.3)             (1,419.1)      (495.8)
operations
Loss from
continuing
operations,    (2,859.5)       (9.2)             (2,850.3)      (1,568.5)
net of income
taxes
Loss from
discontinued
operations,    (11.7)          —                 (11.7)         (132.9)
net of income
taxes
Net loss
attributable   (2,875.5)       (9.2)             (2,866.3)      (1,705.8)
to CEOC
Property       1,327.8         5.6               1,322.2        1,532.6
EBITDA ^ (a)
Adjusted       1,263.6         5.6               1,258.0        1,411.1
EBITDA ^(a)

____________________

(a) Reconciliation of Property EBITDA and Adjusted EBITDA to Net income is
    presented below.
(b) Amounts represent GAAP adjustments related to the LINQ and the Octavius
    Tower operations subsequent to their sale to CERP in October 2013.

CERP Results

CERP was formed as a result of refinancing transactions which closed in
October 2013.

CERP results include:

  oHarrah's Atlantic City, Harrah's Las Vegas, Harrah's Laughlin, Flamingo
    Las Vegas, Paris Las Vegas, and Rio All-Suite Hotel and Casino,
    collectively the former CMBS properties;
  oLease income of Octavius Tower for all periods presented (paid by CEOC),
    even though it was only contributed to CERP in October 2013;
  oOperating results from the LINQ, which partially opened in late December
    2013;
  oOperating results from the High Roller observation wheel, which will begin
    operations in 2014; and
  oLease income of O'Sheas casino (paid by CEOC) beginning in 2014.

The Company believes it is meaningful to provide information on the combined
results of operations of CERP which are summarized below. CERP's Supplemental
Information and Reconciliation of Net Income/(Loss) Attributable to CERP to
Adjusted EBITDA can be found later in this release. Full CERP results will be
provided separately in a report on Form 8-K subsequent to filing Caesars' Form
10-K.

              Three Months Ended  Percent        Years Ended December    Percent
              December 31,                       31,
                                  Favorable/                             Favorable/
(Dollars in   2013      2012                     2013        2012
millions)                         (Unfavorable)                          (Unfavorable)
Casino        $ 262.3   $ 269.2   (2.6)%         $ 1,128.6   $ 1,192.7   (5.4)%
revenues
Net revenues  462.8     452.0     2.4%           1,978.8     2,002.9     (1.2)%
Income from
operations    (992.2)   12.9      *              (803.3)     161.1       *
^(2)
Net           (712.3)   6.8       *              (654.7)     43.4        *
income/(loss)
Property      104.0     106.5     (2.3)%         530.1       516.3       2.7%
EBITDA ^(5)
Adjusted      94.8      88.3      7.4%           493.2       449.5       9.7%
EBITDA ^(6)

_______________________

* Not meaningful

Caesars Growth Partners Results

As previously disclosed, Caesars Acquisition Company ("CAC") was formed to own
100% of the voting membership units in CGP LLC. In October 2013, Caesars and
its subsidiaries, CAC and CGP LLC consummated a transaction in which Caesars
acquired all of the non-voting units of CGP LLC in exchange for certain
consideration. Our interests in CGP LLC constitute variable interests and CGP
LLC is a variable interest entity which we are required to consolidate.

The financial statement information for the year ended December 31, 2012 and
for the period from January 1, 2013 through October 21, 2013 does not reflect
the impacts of the October 21, 2013 formation transaction, including the
recording of non-controlling interest or the determination of taxes in
accordance with the LLC structure of CGP LLC. Instead, this financial
information presents the combination of the assets and entities that were
purchased by or contributed to CGP LLC for the periods presented as that
financial information was initially recorded in the underlying accounting
records of Caesars Entertainment.

The financial statement information for the period from October 22, 2013
through December 31, 2013 reflects the financial statements of CGP LLC on a
consolidated basis, giving regard to all impacts of the formation transaction.
Full CGP LLC results will be provided separately in CAC's Form 10-K.

                        Consolidated       Combined
                        October 22, 2013   January 1, 2013
                                                             Year Ended
(In millions)           through            through
                                                             December 31, 2012
                        December 31, 2013  October 21, 2013
Interactive
entertainment net       $      74.0        $    242.6        $    207.7
revenues
Casino properties and
developments net        67.7               270.2             303.7
revenues
Total net revenues      141.7              512.8             511.4
Income/(loss) from      (152.5)            43.8              88.5
operations ^(7)
Property EBITDA ^(5)    14.6               130.4             130.3
Adjusted EBITDA ^(6)    32.8               145.9             145.3

CGP LLC's Supplemental Information and Reconciliation of Net Income/(Loss)
Attributable to CGP to Adjusted EBITDA can be found later in this release.

____________________

    Casino revenues, net revenues, loss from operations, and loss from
    continuing operations, net of income taxes for all periods presented in
(1) the table above exclude the results of Harrah's St. Louis casino (sold in
    November 2012), Alea Leeds casino (closed in March 2013), and the
    subsidiaries that held the Company's land concession in Macau because all
    of these are presented as discontinued operations.
    Income/(loss) from operations for Caesars includes intangible and tangible
    asset impairment charges of $1,963.3 million and $448.2 million, for the
    three months ended December 31, 2013 and 2012, respectively, and includes
    intangible and tangible asset impairment charges of $3,018.9 million and
    $1,074.2 million for the year ended December 31, 2013 and 2012,
    respectively. Income from operations for CEOC includes intangible and
    tangible asset impairment charges of $935.3 million and $439.7 million,
    for the three months ended December 31, 2013 and 2012, respectively and
(2) includes intangible and tangible asset impairment charges of $1,963.6
    million and $1,054.1 million for the year ended December 31, 2013 and
    2012, respectively. Income from operations for CERP includes intangible
    and tangible asset impairment charges of $1,028.0 million for the three
    months ended December 31, 2013, and includes intangible and tangible asset
    impairment charges of $1,057.9 million and $3.0 million for the year ended
    December 31, 2013 and 2012, respectively. For the three months ended
    December 31,2012, there were no intangible and tangible asset impairment
    charges.
    In the fourth quarter 2013, we elected to change our method of accounting
    for our defined benefit pension plan in the United Kingdom from a method
    which defers actuarial gains and losses to a method which recognizes them
(3) immediately in income or loss. This change in accounting principle has
    been retrospectively applied, such that prior CEC and CEOC results have
    been recast to reflect this change. The impact of this change was
    immaterial to year over year results of operations.
    Basic and diluted loss per share for Caesars for the periods shown
    includes loss per share from discontinued operations, net of income taxes
    was $0.33 per share in the three months ended December 31, 2012. In the
(4) three months ended December 31, 2013, there was no loss per share from
    discontinued operations, net of income taxes. Loss per share from
    discontinued operations, net of income taxes was $0.23 per share and $0.92
    per share for the year ended December 31, 2013 and 2012, respectively.
    Property EBITDA is a non-GAAP financial measure that is defined and
    reconciled to its most comparable GAAP measure later in this release.
(5) Property EBITDA is included because the Company's management uses Property
    EBITDA to measure performance and allocate resources, and believes that
    Property EBITDA provides investors with additional information consistent
    with that used by management.
    Adjusted EBITDA is a non-GAAP financial measure that is defined and
    reconciled to its most comparable GAAP measure later in this release.
    Adjusted EBITDA is included because management believes that Adjusted
    EBITDA provides investors with additional information that allows a better
    understanding of the results of operational activities separate from the
(6) financial impact of decisions made for the long-term benefit of the
    Company. Adjusted EBITDA does not include the Pro Forma effect of
    adjustments related to properties, yet-to-be-realized cost savings from
    the Company's profitability improvement programs, discontinued operations
    and LTM Adjusted EBITDA-Pro Forma of CEOC's unrestricted subsidiaries.
    Adjustments also include 100% of Baluma S.A. (Punta del Este) adjusted
    EBITDA.
    Loss from operations for the period from October 22, 2013 through December
    31, 2013 was $152.5 million. This amount includes $138.7million of
    expense resulting from contingently issuable equity associated with the
(7) CIE earn-out calculation related to transactions establishing CGP LLC. As
    this liability is associated with units to be issued to a subsidiary of
    Caesars Entertainment, this expense is eliminated upon consolidation of
    CGP LLC into Caesars Entertainment.

Liquidity

Each of the structures comprising Caesars Entertainment's consolidated
financial statements have separate debt agreements with related restrictions
on usage of their capital resources. CGP LLC is a variable interest entity
that is consolidated by Caesars Entertainment. CAC is the managing member of
CGP LLC and therefore controls all decisions regarding liquidity and capital
resources of CGP LLC.

(Dollars in millions)                 December31, 2013
                                      CEOC        CERP      CGP LLC   Parent
Cash, cash equivalents, and short     $ 1,438.2   $ 181.3   $ 991.9   $ 159.8
term investments ^(1)
Revolver capacity ^(2)                215.5       269.5     —         —
Less: Revolver capacity committed to  (100.5)     —         —         —
letters of credit
Total Liquidity                       $ 1,553.2   $ 450.8   $ 991.9   $ 159.8

____________________

(1) Excludes restricted cash.
    As of December 31, 2013, the CEOC revolver provided capacity up to $215.5
(2) million, however $109.4 million of that revolver capacity matured on
    January28,2014 and available capacity is $106.1 million before the
    letter of credit commitments.

Conference Call Information

Caesars Entertainment Corporation (NASDAQ: CZR) will host a conference call at
2 p.m. Pacific Time Tuesday, March11, 2014, to review its fourth-quarter
results. The call will be accessible in the Investor Relations section of
www.caesars.com.

If you would like to ask questions and be an active participant in the call,
you may dial (877) 637-3676, or (832) 412-1752 for international callers, and
enter Conference ID 36895079 approximately 10 minutes before the call start
time. A recording of the live call will be available on the Company's website
for 90 days after the event.

About Caesars

Caesars Entertainment Corporation is the world's most diversified
casino-entertainment provider and the most geographically diverse U.S.
casino-entertainment company. Since its beginning in Reno, Nevada, 75 years
ago, Caesars has grown through development of new resorts, expansions and
acquisitions and now operates casinos on three continents. The Company's
resorts operate primarily under the Caesars^®, Harrah's^® and Horseshoe^®
brand names. Caesars also owns the London Clubs International family of
casinos. Caesars is focused on building loyalty and value with its guests
through a unique combination of great service, excellent products, unsurpassed
distribution, operational excellence and technology leadership. The Company is
committed to environmental sustainability and energy conservation and
recognizes the importance of being a responsible steward of the environment.
For more information, please visit www.caesars.com.

Forward Looking Information

This release includes "forward-looking statements" intended to qualify for the
safe harbor from liability established by the Private Securities Litigation
Reform Act of 1995. You can identify these statements by the fact that they
do not relate strictly to historical or current facts. These statements
contain words such as "may," "will," "project," "might," "expect," "believe,"
"anticipate," "intend," "could," "would," "estimate," "continue," "pursue," or
the negative or other variations thereof or comparable terminology. In
particular, they include statements relating to, among other things, future
actions, new projects, strategies, future performance, the outcomes of
contingencies, and future financial results of Caesars. These forward-looking
statements are based on current expectations and projections about future
events.

Investors are cautioned that forward-looking statements are not guarantees of
future performance or results and involve risks and uncertainties that cannot
be predicted or quantified, and, consequently, the actual performance of
Caesars may differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include, but are not
limited to, the following factors, as well as other factors described from
time to time in the Company's reports filed with the Securities and Exchange
Commission (including the sections entitled "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
contained therein):

  othe impact of the Company's substantial indebtedness and the restrictions
    in the Company's debt agreements;
  oaccess to available and reasonable financing on a timely basis, including
    the ability of the Company to refinance its indebtedness on acceptable
    terms;
  othe effects of local and national economic, credit, and capital market
    conditions on the economy, in general, and on the gaming industry, in
    particular;
  othe ability to realize the expense reductions from cost savings programs;
  ochanges in the extensive governmental regulations to which the Company and
    its stockholders are subject, and changes in laws, including increased tax
    rates, smoking bans, regulations or accounting standards, third-party
    relations and approvals, and decisions, disciplines, and fines of courts,
    regulators, and governmental bodies;
  othe ability of the Company's customer-tracking, customer loyalty, and
    yield-management programs to continue to increase customer loyalty and
    same-store or hotel sales;
  othe effects of competition, including locations of competitors and
    operating and market competition;
  othe ability to recoup costs of capital investments through higher
    revenues;
  oabnormal gaming holds ("gaming hold" is the amount of money that is
    retained by the casino from wagers by customers);
  othe ability to timely and cost-effectively integrate companies that the
    Company acquires into its operations;
  othe potential difficulties in employee retention and recruitment as a
    result of the Company's substantial indebtedness or any other factor;
  oconstruction factors, including delays, increased costs of labor and
    materials, availability of labor and materials, zoning issues,
    environmental restrictions, soil and water conditions, weather and other
    hazards, site access matters, and building permit issues;
  olitigation outcomes and judicial and governmental body actions, including
    gaming legislative action, referenda, regulatory disciplinary actions, and
    fines and taxation;
  oacts of war or terrorist incidents, severe weather conditions, uprisings
    or natural disasters, including losses therefrom, including losses in
    revenues and damage to property, and the impact of severe weather
    conditions on the Company's ability to attract customers to certain of its
    facilities, such as the amount of losses and disruption to the Company as
    a result of Hurricane Sandy in late October 2012;
  othe effects of environmental and structural building conditions relating
    to the Company's properties;
  oaccess to insurance on reasonable terms for the Company's assets; and
  othe impact, if any, of unfunded pension benefits under multi-employer
    pension plans.

Any forward-looking statements are made pursuant to the Private Securities
Litigation Reform Act of 1995 and, as such, speak only as of the date made.
Caesars disclaims any obligation to update the forward-looking statements.
You are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date stated or, if no date is stated,
as of the date of this release.

In addition, the Company's estimated financial performance for the Purchased
Properties for the year ended December 31, 2013 constitute forward-looking
statements and are based upon Caesars Entertainment's preliminary internal
estimates and best judgment of the performance of the Purchase Properties.
These estimates for the year ended December 31, 2013 may be subject to
adjustments in connection with the company's routine year-end procedures. The
Purchase Properties actual results for the year ended December 31, 2013 may
differ materially from its current estimates. The preliminary financial data
for the year ended December 31, 2013 for the Purchased Properties included on
page 36 and has been prepared by, and is the responsibility of, management.



CAESARS ENTERTAINMENT CORPORATION

CONSOLIDATED SUMMARY OF OPERATIONS

(UNAUDITED)

(In millions, except per share data)
                     Three Months Ended December 31,  Years Ended December 31,
                     2013              2012           2013          2012
Revenues
Casino               $   1,412.0       $  1,487.3     $  5,808.8    $ 6,243.0
Food and beverage    360.8             350.9          1,510.0       1,507.6
Rooms                290.6             273.2          1,219.6       1,205.5
Management fees      14.7              12.8           57.0          47.3
Other                232.3             181.9          874.8         762.0
Reimbursable         64.9              23.6           268.1         67.1
management costs
Less: casino
promotional          (296.9)           (314.8)        (1,178.6)     (1,252.1)
allowances
Net revenues         2,078.4           2,014.9        8,559.7       8,580.4
Operating expenses
Direct
Casino ^(a)          822.9             827.9          3,280.5       3,553.0
Food and beverage    154.9             156.3          658.4         657.6
^(a)
Rooms ^(a)           73.0              67.5           305.4         297.6
Property, general,
administrative, and  575.8             514.0          2,168.6       2,043.5
other ^(a)
Reimbursable         64.9              23.6           268.1         67.1
management costs
Depreciation and     132.0             180.6          565.2         714.4
amortization
Write-downs,
reserves, and
project opening      59.7              42.8           104.4         99.7
costs,

net of recoveries
Impairment of
intangible and       1,963.3           448.2          3,018.9       1,074.2
tangible assets
(Income)/loss on
interests in         (2.8)             8.7            17.6          17.5
non-consolidated
affiliates
Corporate expense    47.1              49.8           161.4         195.0
Acquisition and      11.7              3.9            81.3          6.1
integration costs
Amortization of      40.1              45.0           164.5         174.6
intangible assets
Total operating      3,942.6           2,368.3        10,794.3      8,900.3
expenses
Loss from operations (1,864.2)         (353.4)        (2,234.6)     (319.9)
Interest expense     (575.3)           (526.0)        (2,253.0)     (2,100.3)
Gain/(loss) on early
extinguishment of    (47.3)            56.5           (29.8)        136.0
debt
Gain on partial sale —                 —              44.1          —
of subsidiary
Other income,
including interest   4.9               6.1            13.8          25.5
income
Loss from continuing
operations before    (2,481.9)         (816.8)        (4,459.5)     (2,258.7)
income taxes
Income tax benefit   730.4             381.0          1,549.7       870.5
Loss from continuing
operations, net of   (1,751.5)         (435.8)        (2,909.8)     (1,388.2)
income taxes
Discontinued
operations
Income/(loss) from
discontinued         (0.5)             4.8            (29.8)        (64.5)
operations
Income tax provision —                 (45.5)         (0.2)         (50.1)
Loss from
discontinued
operations,          (0.5)             (40.7)         (30.0)        (114.6)

net of income taxes
Net loss             (1,752.0)         (476.5)        (2,939.8)     (1,502.8)
Less: net income
attributable to      (4.9)             (3.8)          (8.4)         (5.3)
noncontrolling
interests
Net loss
attributable to      (1,756.9)         (480.3)        (2,948.2)     (1,508.1)
Caesars
Loss per share -
basic and diluted
Loss per share from
continuing           $   (12.83)       $  (3.51)      $  (22.70)    $ (11.12)
operations
Loss per share from
discontinued         —                 (0.33)         (0.23)        (0.92)
operations
Net loss per share   $   (12.83)       $  (3.84)      $  (22.93)    $ (12.04)

____________________

(a) Property operating expenses are comprised of casino, food and beverage,
    rooms, and property, general, administrative and other expenses.





CAESARS ENTERTAINMENT CORPORATION

CONSOLIDATED SUMMARY BALANCE SHEETS

(UNAUDITED)

(In millions)
                                                  As of December 31,
                                                  2013         2012
Assets
Current assets
Cash and cash equivalents                         $ 2,771.2    $ 1,757.5
Restricted cash ^ (a)                             87.5         833.6
Assets held for sale ^(b)                         —            5.1
Other current assets                              911.6        897.4
Total current assets                              3,770.3      3,493.6
Property and equipment, net                       13,237.9     15,701.7
Goodwill and other intangible assets              6,551.0      7,146.0
Restricted cash                                   336.8        364.6
Assets held for sale ^(b)                         11.9         471.2
Other long-term assets                            781.0        821.0
                                                  $ 24,688.9   $ 27,998.1
Liabilities and Stockholders' Equity
Current liabilities
 Current portion of long-term debt ^(a) $ 197.1      $ 879.9
 Other current liabilities              2,333.7      1,708.4
Total current liabilities                         2,530.8      2,588.3
Long-term debt                                    20,918.4     20,532.2
Liabilities held for sale ^(b)                    —            52.1
Other long-term liabilities                       3,143.5      5,157.1
                                                  26,592.7     28,329.7
Total Caesars stockholders' (deficit)/equity      (3,122.0)    (411.7)
Noncontrolling interests ^(c)                     1,218.2      80.1
Total deficit                                     (1,903.8)    (331.6)
                                                  $ 24,688.9   $ 27,998.1

____________________

    The balance of restricted cash at December31, 2012, includes $750.0
    million of escrow proceeds related to the Company's December13,2012,
(a) bond offering and the related debt obligation is included in the current
    portion of long-term debt. Escrow conditions were met in February2013, at
    which time the cash was released from restriction and the debt obligation
    was reclassified to long-term.
    The balances as of December31, 2013, relate to $11.9 million of
    non-current assets held for sale related to the pending sale of the
(b) Claridge Hotel Tower in Atlantic City, which was completed in February
    2014. The balances as of December31, 2012 related to the subsidiaries
    that held the Company's land concession in Macau.
(c) The increase in noncontrolling interests is primarily related to the sale
    of CGP LLC units to CAC.





CAESARS ENTERTAINMENT CORPORATION
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO
CAESARS ENTERTAINMENT CORPORATION TO PROPERTY EBITDA
(UNAUDITED)
Property EBITDA is presented as a supplemental measure of the Company's
performance. Property EBITDA is defined as revenues less property operating
expenses and is comprised of net income/(loss) before (i) interest expense,
net of interest income, (ii) (benefit)/provision for income taxes, (iii)
depreciation and amortization, (iv) corporate expenses, and (v) certain items
that the Company does not consider indicative of its ongoing operating
performance at an operating property level. In evaluating Property EBITDA you
should be aware that, in the future, the Company may incur expenses that are
the same or similar to some of the adjustments in this presentation. The
presentation of Property EBITDA should not be construed as an inference that
future results will be unaffected by unusual or unexpected items.
Property EBITDA is a non-GAAP financial measure commonly used in the Company's
industry and should not be construed as an alternative to net income/(loss) as
an indicator of operating performance or as an alternative to cash flow
provided by operating activities as a measure of liquidity (as determined in
accordance with GAAP). Property EBITDA may not be comparable to similarly
titled measures reported by other companies within the industry. Property
EBITDA is included because management uses Property EBITDA to measure
performance and allocate resources, and believes that Property EBITDA provides
investors with additional information consistent with that used by management.
The following tables reconcile net loss attributable to Caesars to Property
EBITDA for the periods indicated.

                 Three Months Ended December 31, 2013
                           Atlantic                Managed,
(In millions)    Las                     Other                 Other        Total
                 Vegas     Coast         U.S.      Int'l, and  Adjustments
                                                   Other
Net loss
attributable to                                                             $ (1,756.9)
Caesars
Net loss
attributable to                                                             4.9
noncontrolling
interests
Net loss                                                                    (1,752.0)
Loss from
discontinued                                                                0.5
operations, net
of income taxes
Loss from
continuing                                                                  (1,751.5)
operations, net
of income taxes
Income tax                                                                  (730.4)
provision
Loss from
continuing
operations                                                                  (2,481.9)
before income
taxes
Other income,
including                                                                   (4.9)
interest income
Loss on early
extinguishment                                                              47.3
of debt
Interest expense                                                            575.3
Income/(loss)    $ 150.2   $ (1,909.3)   $ 95.1    $ (200.2)                (1,864.2)
from operations
Depreciation and 58.9      28.0          36.3      8.8                      132.0
amortization
Amortization of
intangible       19.1      3.3           9.2       8.5                      40.1
assets
Intangible and
tangible asset   —         1,885.9       (9.8)     87.2                     1,963.3
impairment
charges
Write-downs,
reserves, and
project opening  7.1       3.4           4.5       44.7                     59.7
costs, net of
recoveries
Acquisition and
integration      —         —             —         11.7                     11.7
costs
Income on
interests in     (0.1)     —             (0.1)     (2.6)                    (2.8)
non-consolidated
affiliates
Corporate        —         —             —         47.1                     47.1
expense
EBITDA
attributable to                                                $  (0.5)     (0.5)
discontinued
operations
Property EBITDA  $ 235.2   $ 11.3        $ 135.2   $ 5.2       $  (0.5)     $ 386.4





CAESARS ENTERTAINMENT CORPORATION

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO

CAESARS ENTERTAINMENT CORPORATION

TO PROPERTY EBITDA

(UNAUDITED)
                 Three Months Ended December 31, 2012
                           Atlantic              Managed,
(In millions)    Las                   Other                 Other        Total
                 Vegas     Coast       U.S.      Int'l, and  Adjustments
                                                 Other
Net loss
attributable to                                                           $ (480.3)
Caesars
Net income
attributable to                                                           3.8
noncontrolling
interests
Net loss                                                                  (476.5)
Loss from
discontinued                                                              40.7
operations, net
of income taxes
Net loss from
continuing                                                                (435.8)
operations, net
of income taxes
Benefit for                                                               (381.0)
income taxes
Loss from
continuing
operations                                                                (816.8)
before income
taxes
Other income,
including                                                                 (6.1)
interest income
Gains on early
extinguishments                                                           (56.5)
of debt
Interest expense                                                          526.0
Income/(loss)    $ 118.4   $ (477.0)   $ 149.6   $ (144.5)                (353.4)
from operations
Depreciation and 67.0      45.6        54.3      13.7                     180.6
amortization
Amortization of
intangible       19.0      4.0         9.3       12.7                     45.0
assets
Intangible and
tangible asset   —         450.0       (50.8)    49.0                     448.2
impairment
charges
Write-downs,
reserves, and
project opening
costs,           12.8      6.0         2.1       21.9                     42.8

net of
recoveries
Acquisition and
integration      —         —           —         3.9                      3.9
costs
(Income)/loss on
interests in     (0.4)     0.1         (0.2)     9.2                      8.7
non-consolidated
affiliates
Corporate        —         —           —         49.8                     49.8
expense
EBITDA
attributable to                                              $   15.8     15.8
discontinued
operations
Property EBITDA  $ 216.7   $ 28.8      $ 164.3   $ 15.7      $   15.8     $ 441.4



CAESARS ENTERTAINMENT CORPORATION

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO

CAESARS ENTERTAINMENT CORPORATION

TO PROPERTY EBITDA

(UNAUDITED)
                 Year Ended December 31, 2013
                           Atlantic                Managed,
(In millions)    Las                     Other                 Other        Total
                 Vegas     Coast         U.S.      Int'l, and  Adjustments
                                                   Other
Net loss
attributable to                                                             $ (2,948.2)
Caesars
Net income
attributable to                                                             8.4
noncontrolling
interests
Net loss                                                                    (2,939.8)
Loss from
discontinued                                                                30.0
operations, net
of income taxes
Net loss from
continuing                                                                  (2,909.8)
operations, net
of income taxes
Benefit for                                                                 (1,549.7)
income taxes
Loss from
continuing
operations                                                                  (4,459.5)
before income
taxes
Other income,
including                                                                   (13.8)
interest income
Gain on partial
sale of                                                                     (44.1)
subsidiary
Loss on early
extinguishments                                                             29.8
of debt
Interest expense                                                            2,253.0
Income/(loss)    $ 527.2   $ (2,405.3)   $ 56.6    $ (413.1)                (2,234.6)
from operations
Depreciation and 233.7     131.2         166.4     33.9                     565.2
amortization
Amortization of
intangible       76.0      15.3          37.0      36.2                     164.5
assets
Intangible and
tangible asset   5.5       2,444.5       389.2     179.7                    3,018.9
impairment
charges
Write-downs,
reserves, and
project opening
costs,           26.9      17.7          9.4       50.4                     104.4

net of
recoveries
Acquisition and
integration      —         —             —         81.3                     81.3
costs
(Income)/loss on
interests in     (3.2)     —             (0.6)     21.4                     17.6
non-consolidated
affiliates
Corporate        —         —             —         161.4                    161.4
expense
EBITDA
attributable to                                                $  (2.1)     (2.1)
discontinued
operations
Property EBITDA  $ 866.1   $ 203.4       $ 658.0   $ 151.2     $  (2.1)     $ 1,876.6



CAESARS ENTERTAINMENT CORPORATION

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO

CAESARS ENTERTAINMENT CORPORATION

TO PROPERTY EBITDA

(UNAUDITED)
                 Year Ended December 31, 2012
                           Atlantic              Managed,
(In millions)    Las                   Other                 Other        Total
                 Vegas     Coast       U.S.      Int'l, and  Adjustments
                                                 Other
Net loss
attributable to                                                           $ (1,508.1)
Caesars
Net income
attributable to                                                           5.3
noncontrolling
interests
Net loss                                                                  (1,502.8)
Loss from
discontinued                                                              114.6
operations, net
of income taxes
Net loss from
continuing                                                                (1,388.2)
operations, net
of income taxes
Benefit for                                                               (870.5)
income taxes
Loss from
continuing
operations                                                                (2,258.7)
before income
taxes
Other income,
including                                                                 (25.5)
interest income
Gains on early
extinguishments                                                           (136.0)
of debt
Interest expense                                                          2,100.3
Income/(loss)    $ 428.7   $ (394.6)   $ 33.2    $ (387.2)                (319.9)
from operations
Depreciation and 268.2     179.7       211.9     54.5                     714.4
amortization
Amortization of
intangible       75.8      16.0        37.0      45.8                     174.6
assets
Intangible and
tangible asset   3.0       450.0       408.7     212.5                    1,074.2
impairment
charges
Write-downs,
reserves, and
project opening
costs,           33.1      12.2        39.3      15.1                     99.7

net of
recoveries
Acquisition and
integration      —         —           —         6.1                      6.1
costs
(Income)/loss on
interests in     (2.6)     2.2         (0.6)     18.5                     17.5
non-consolidated
affiliates
Corporate        —         —           —         195.0                    195.0
expense
EBITDA
attributable to                                              $   66.5     66.5
discontinued
operations
Property EBITDA  $ 806.3   $ 265.6     $ 729.4   $ 160.3     $   66.5     $ 2,028.1

 

CAESARS ENTERTAINMENT CORPORATION SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO
CAESARS ENTERTAINMENT CORPORATION TO
ADJUSTED EBITDA AND LTM ADJUSTED EBITDA-PRO FORMA
(UNAUDITED)
Adjusted EBITDA is defined as earnings before interest expense, income taxes,
and depreciation and amortization ("EBITDA") further adjusted to exclude
certain non-cash and other items required or permitted in calculating covenant
compliance under the indenture governing CEOC's secured credit facilities.
Last twelve months ("LTM") Adjusted EBITDA-Pro Forma is defined as Adjusted
EBITDA further adjusted to include Pro Forma adjustments related to properties
and estimated cost savings yet-to-be-realized.
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma are presented as
supplemental measures of the Company's performance and management believes
that Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma provide investors with
additional information and allow a better understanding of the results of
operational activities separate from the financial impact of decisions made
for the long-term benefit of the Company.
Because not all companies use identical calculations, the presentation of
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma may not be comparable to
other similarly titled measures of other companies.
The following table reconciles net loss attributable to Caesars to Adjusted
EBITDA for the three months ended December 31, 2013 and 2012.

(In millions)                                         2013          2012
Net loss attributable to Caesars                      $ (1,756.9)   $ (480.3)
Interest expense, net of interest income              568.9         521.8
Income tax (benefit)/provision ^(a)                   (730.4)       (335.5)
Depreciation and amortization ^(b)                    175.3         239.2
EBITDA                                                (1,743.1)     (54.8)
Project opening costs, abandoned projects and         17.3          24.3
development costs ^(c)
Acquisition and integration costs ^ (d)               11.7          3.9
(Gain)/loss on early extinguishment of debt ^(e)      47.3          (56.5)
Net income/(loss) attributable to noncontrolling      (4.9)         0.8
interests, net of (distributions) ^(f)
Impairment of intangible and tangible assets ^(g)     1,963.3       448.2
Non-cash expense for stock compensation benefits ^(h) 35.8          12.1
Gain on sale of discontinued operations ^(i)          —             (9.3)
Adjustments to include 100% of Baluma S.A.'s adjusted 9.7           —
EBITDA ^ (j)
Other items^(k)                                       69.2          51.4
 Adjusted EBITDA                        $ 406.3       $ 420.1

The following table reconciles net loss attributable to Caesars to Adjusted
EBITDA for the years ended December31, 2013 and 2012, and net loss
attributable to Caesars to LTM Adjusted EBITDA-Pro Forma for the year ended
December31, 2013.

(In millions)                                       2013          2012
Net loss attributable to Caesars                    $ (2,948.2)   $ (1,508.1)
Interest expense, net of interest income            2,237.9       2,079.2
Income tax (benefit)/provision ^ (a)                (1,549.5)     (820.4)
Depreciation and amortization ^ (b)                 742.7         931.1
EBITDA                                              (1,517.1)     681.8
Project opening costs, abandoned projects and       61.0          65.2
development costs ^(c)
Acquisition and integration costs ^(d)              81.3          6.1
(Gain)/loss on early extinguishment of debt ^ (e)   29.8          (136.0)
Net loss attributable to noncontrolling interests,  (2.7)         (3.3)
net of (distributions) ^(f)
Impairment of intangible and tangible assets ^(g)   3,030.5       1,175.2
Non-cash expense for stock compensation benefits    53.9          55.1
^(h)
 Adjustments for recoveries from insurance      —             (6.6)
claims for flood losses^(i)
 (Gain)/loss on sale of discontinued operations 0.7           (9.3)
^(k)
Gain on sale on partial sale of subsidiary ^ (l)    (44.1)        —
Adjustments to include 100% of Baluma S.A.'s        9.0           —
adjusted EBITDA ^ (j)
Other items^(m)                                     152.2         109.5
 Adjusted EBITDA                      1,854.5       $ 1,937.7
Pro Forma adjustments related to properties ^(n)    5.6
Pro Forma adjustment for estimated cost savings     91.4
yet-to-be-realized ^(o)
 LTM Adjusted EBITDA-Pro Forma         $ 1,951.5

____________________

    Amounts include the provision for income taxes related to discontinued
    operations of $45.5 million for the three months ended December31,2012,
(a) and the provision for income taxes related to discontinued operations of
    $0.2 million and $50.1 million for the year ended December 31, 2013 and
    2012, respectively. There was no provision for income taxes related to
    discontinued operations for the three months ended December 31, 2013.
    Amounts include depreciation and amortization related to discontinued
    operations of $9.9 million for the three months ended December31,2012,
(b) and depreciation and amortization related to discontinued operations of
    $0.2 million and $29.0 million for the year ended December31, 2013 and
    2012, respectively. There was no depreciation and amortization related to
    discontinued operations for the three months ended December 31, 2013.
    Amounts represent pre-opening costs incurred in connection with new
    property openings and expansion projects at existing properties, as well
    as any non-cash write-offs of abandoned development projects. Amounts
(c) include reserves related to the closure of Alea Leeds in March 2013 which
    are included in loss from discontinued operations of $15.8 million for the
    year ended December 31, 2013.There were no reserves related to
    discontinued operations for the three months ended December 31, 2013 and
    2012 or for the year ended December 31, 2012.
    Amounts include certain costs associated with acquisition and development
(d) activities and reorganization activities which are infrequently occurring
    costs.
    Amounts represent the difference between the fair value of consideration
(e) paid and the book value, net of deferred financing costs, of debt retired
    through debt extinguishment transactions, which are capital
    structure-related, rather than operational-type costs.
    Amounts represent minority owners' share of income/(loss) from the
(f) Company's majority-owned consolidated subsidiaries, net of cash
    distributions to minority owners, which is a non-cash item as it excludes
    any cash distributions.
    Amounts represent non-cash charges to impair intangible and tangible
    assets primarily resulting from changes in the business outlook in light
    of economic conditions.  Amounts include impairment charges related to
(g) discontinued operations of $11.6 million and $101.0 million for the year
    ended December 31, 2013 and 2012, respectively. There were no impairment
    charges related to discontinued operations for the three months ended
    December 31, 2013 and 2012.
(h) Amounts represent non-cash stock-based compensation expense related to
    stock options and restricted stock granted to the Company's employees.
(i) Amounts represent adjustments for insurance claims related to lost profits
    during the floods that occurred in 2011.
    Amounts represent adjustments to include 100% of Baluma S.A. (Punta del
(j) Este) adjusted EBITDA as permitted under the indentures governing CEOC's
    existing notes and the credit agreement governing CEOC's senior secured
    credit facilities.
(k) Amount represents the gain recognized on the sale of the Harrah's St.
    Louis casino.
(l) Amounts represent the gain recognized on the sale of 45% of Baluma S.A.
    (Punta del Este) to Enjoy S.A.
    Amounts represent add-backs and deductions from EBITDA, whether permitted
    and/or required under the indentures governing CEOC's existing notes and
    the credit agreement governing CEOC's senior secured credit facilities,
    included in arriving at LTM Adjusted EBITDA-Pro Forma but not separately
    identified. Such add-backs and deductions include litigation awards and
    settlements, severance and relocation costs, sign-on and retention
(m) bonuses, permit remediation costs, gains and losses from disposals of
    assets, costs incurred in connection with implementing the Company's
    efficiency and cost-saving programs, business optimization expenses, the
    Company's insurance policy deductibles incurred as a result of
    catastrophic events such as floods and hurricanes, one time sales tax
    assessments and accruals, project start-up costs, and non-cash equity in
    earnings of non-consolidated affiliates (net of distributions).
    Amounts represent the estimated annualized impact of operating results
(n) related to newly completed construction projects, combined with the
    estimated annualized EBITDA impact associated with properties acquired
    during the period.
    Amount represents adjustments to reflect the impact of annualized run-rate
(o) cost savings and anticipated future cost savings to be realized from
    profitability improvement and cost-savings programs.

CAESARS ENTERTAINMENT OPERATING COMPANY, INC.
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO
CAESARS ENTERTAINMENT OPERATING COMPANY, INC.
TO PROPERTY EBITDA
(UNAUDITED)
Property EBITDA is presented as a supplemental measure of CEOC's performance.
Property EBITDA is defined as revenues less property operating expenses and is
comprised of net income/(loss) before (i) interest expense, net of interest
income, (ii) (benefit)/provision for income taxes, (iii) depreciation and
amortization, (iv) corporate expenses, and (v) certain items that the Company
does not consider indicative of CEOC's ongoing operating performance at an
operating property level. In evaluating Property EBITDA you should be aware
that in the future, CEOC may incur expenses that are the same or similar to
some of the adjustments in this presentation. The presentation of Property
EBITDA should not be construed as an inference that CEOC's future results will
be unaffected by unusual or unexpected items.
Property EBITDA is a non-GAAP financial measure commonly used in the Company's
industry and should not be construed as an alternative to net income/(loss) as
an indicator of operating performance or as an alternative to cash flow
provided by operating activities as a measure of liquidity (as determined in
accordance with GAAP). Property EBITDA may not be comparable to similarly
titled measures reported by other companies within the industry. Property
EBITDA is presented because management uses Property EBITDA to measure
performance and allocate resources, and believes that Property EBITDA provides
investors with additional information consistent with that used by management.
The following tables reconcile net loss attributable to CEOC to Property
EBITDA for the periods indicated on a regional view, Other Adjustments
includes the impact of discontinued operation and CEOC's adjustments related
to the continued consolidations of the LINQ and Octavius tower post transfer
to CERP.

                 Three Months Ended December 31, 2013
                           Atlantic              Managed,
(In millions)    Las                   Other                 Other        Total
                 Vegas     Coast       U.S.      Int'l, and  Adjustments
                                                 Other
Net loss
attributable to                                                           $ (1,049.0)
CEOC
Net loss
attributable to                                                           1.6
noncontrolling
interests
Net loss                                                                  (1,047.4)
Loss from
discontinued                                                              0.5
operations, net
of income taxes
Loss from
continuing                                                                (1,046.9)
operations, net
of income taxes
Income tax                                                                (400.1)
provision
Loss from
continuing
operations                                                                (1,447.0)
before income
taxes
Other income,
including                                                                 (7.9)
interest income
Loss on early
extinguishment                                                            2.2
of debt
Interest expense                                                          582.9
Income/(loss)    $ 91.1    $ (877.0)   $ 92.5    $ (176.4)                (869.8)
from operations
Depreciation and 26.6      18.1        34.9      16.7                     96.3
amortization
Amortization of
intangible       8.2       2.2         6.3       4.6                      21.3
assets
Impairment of
intangible and   —         857.9       (9.8)     87.2                     935.3
tangible assets
Write-downs,
reserves, and
project opening  2.8       1.7         4.4       44.3                     53.2
costs, net of
recoveries
Acquisition and
integration      —         —           —         (7.1)                    (7.1)
costs
Income on
interests in     —         —           0.1       (2.4)                    (2.3)
non-consolidated
affiliates
Corporate        —         —           —         45.5                     45.5
expense
EBITDA
attributable to                                              $  (0.5)     (0.5)
discontinued
operations
Property EBITDA  $ 128.7   $ 2.9       $ 128.4   $ 12.4      $  (0.5)     $ 271.9



CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO

CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

TO PROPERTY EBITDA

(UNAUDITED)
                 Three Months Ended December 31, 2012
                           Atlantic              Managed,
(In millions)    Las                   Other                 Other        Total
                 Vegas     Coast       U.S.      Int'l, and  Adjustments
                                                 Other
Net loss
attributable to                                                           $ (506.2)
CEOC
Net income
attributable to                                                           2.7
noncontrolling
interests
Net loss                                                                  (503.5)
Loss from
discontinued                                                              45.1
operations, net
of income taxes
Net loss from
continuing                                                                (458.4)
operations, net
of income taxes
Benefit for                                                               (389.9)
income taxes
Loss from
continuing
operations                                                                (848.3)
before income
taxes
Other income,
including                                                                 (2.5)
interest income
Interest expense                                                          506.9
Income/(loss)    $ 76.8    $ (472.1)   $ 155.1   $ (103.7)                (343.9)
from operations
Depreciation and 40.6      32.4        52.5      13.4                     138.9
amortization
Amortization of
intangible       8.2       3.0         6.3       9.7                      27.2
assets
Intangible and
tangible asset   —         449.4       (58.7)    49.0                     439.7
impairment
charges
Write-downs,
reserves, and
project opening  9.7       4.9         2.1       4.7                      21.4
costs, net of
recoveries
Acquisition and
integration      —         —           —         3.9                      3.9
costs
(Income)/loss on
interests in     —         —           (0.2)     9.2                      9.0
non-consolidated
affiliates
Corporate        —         —           —         37.9                     37.9
expense
EBITDA
attributable to                                              $   15.8     15.8
discontinued
operations
Property EBITDA  $ 135.3   $ 17.6      $ 157.1   $ 24.1      $   15.8     $ 349.9



CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO

CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

TO PROPERTY EBITDA

(UNAUDITED)
                 Year Ended December 31, 2013
                           Atlantic                Managed,
(In millions)    Las                     Other                 Other        Total
                 Vegas     Coast         U.S.      Int'l, and  Adjustments
                                                   Other
Net loss
attributable to                                                             $ (2,875.5)
CEOC
Net income
attributable to                                                             4.3
noncontrolling
interests
Net loss                                                                    (2,871.2)
Loss from
discontinued                                                                11.7
operations, net
of income taxes
Net loss from
continuing                                                                  (2,859.5)
operations, net
of income taxes
Benefit for                                                                 (682.9)
income taxes
Loss from
continuing
operations                                                                  (3,542.4)
before income
taxes
Other income,
including                                                                   (15.3)
interest income
Gain on partial
sale of                                                                     (44.1)
subsidiary
Loss on early
extinguishment                                                              32.1
of debt
Interest expense                                                            2,146.3
Income/(loss)    $ 252.9   $ (1,370.4)   $ 33.1    $ (339.0)                (1,423.4)
from operations
Depreciation and 144.0     89.4          161.9     40.1                     435.4
amortization
Amortization of
intangible       32.7      11.1          25.3      21.0                     90.1
assets
Intangible and
tangible asset   —         1,394.7       389.2     179.7                    1,963.6
impairment
charges
Write-downs,
reserves, and
project opening
costs,           23.6      8.8           9.4       50.1                     91.9

net of
recoveries
Acquisition and
integration      —         —             —         13.4                     13.4
costs
(Income)/loss on
interests in     —         —             (0.6)     21.3                     20.7
non-consolidated
affiliates
Corporate        —         —             —         138.2                    138.2
expense
EBITDA
attributable to                                                $  (2.1)     (2.1)
discontinued
operations
Property EBITDA  $ 453.2   $ 133.6       $ 618.3   $ 124.8     $  (2.1)     $ 1,327.8



CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO

CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

TO PROPERTY EBITDA

(UNAUDITED)
                 Year Ended December 31, 2012
                           Atlantic              Managed,
(In millions)    Las                   Other                 Other        Total
                 Vegas     Coast       U.S.      Int'l, and  Adjustments
                                                 Other
Net loss
attributable to                                                           $ (1,705.8)
CEOC
Net income
attributable to                                                           4.4
noncontrolling
interests
Net loss                                                                  (1,701.4)
Loss from
discontinued                                                              132.9
operations, net
of income taxes
Net loss from
continuing                                                                (1,568.5)
operations, net
of income taxes
Benefit for                                                               (954.7)
income taxes
Loss from
continuing
operations                                                                (2,523.2)
before income
taxes
Other income,
including                                                                 (14.3)
interest income
Loss on early
extinguishment                                                            39.9
of debt
Interest expense                                                          2,001.8
Income/(loss)    $ 220.3   $ (424.2)   $ 19.4    $ (311.3)                (495.8)
from operations
Depreciation and 166.3     129.1       204.9     53.6                     553.9
amortization
Amortization of
intangible       32.7      11.8        25.3      35.9                     105.7
assets
Intangible and
tangible asset   —         447.4       400.7     206.0                    1,054.1
impairment
charges
Write-downs,
reserves, and
project opening  24.0      10.6        39.3      (8.2)                    65.7
costs, net of
recoveries
Acquisition and
integration      —         —           —         5.8                      5.8
costs
(Income)/loss on
interests in     —         1.1         (0.6)     18.4                     18.9
non-consolidated
affiliates
Corporate        —         —           —         157.8                    157.8
expense
EBITDA
attributable to                                              $   66.5     66.5
discontinued
operations
Property EBITDA  $ 443.3   $ 175.8     $ 689.0   $ 158.0     $   66.5     $ 1,532.6

 

CAESARS ENTERTAINMENT OPERATING COMPANY, INC.
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO
CAESARS ENTERTAINMENT OPERATING COMPANY, INC.
TO ADJUSTED EBITDA, LTM ADJUSTED EBITDA-PRO FORMA AND
LTM ADJUSTED EBITDA-PRO FORMA - CEOC RESTRICTED
(UNAUDITED)
Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain
non-cash and other items required or permitted in calculating covenant
compliance under the indenture governing the CEOC credit facility.
LTM Adjusted EBITDA-Pro Forma is defined as Adjusted EBITDA further adjusted
to include Pro Forma adjustments related to properties and estimated cost
savings yet-to-be-realized.
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma are presented as
supplemental measures of CEOC's performance and management believes that
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma provide investors with
additional information and allow a better understanding of the results of
operational activities separate from the financial impact of decisions made
for the long-term benefit of CEOC.
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma include the results and
adjustments of CEOC on a consolidated basis without the exclusion of CEOC's
unrestricted subsidiaries, and therefore, are different than the calculations
used to determine compliance with debt covenants under the credit facility.
The reconciliation of net loss attributable to CEOC to LTM Adjusted EBITDA-Pro
Forma on the following page includes an additional calculation to exclude LTM
Adjusted EBITDA-Pro Forma of the unrestricted subsidiaries of CEOC resulting
in an amount used to determine compliance with debt covenants ("LTM Adjusted
EBITDA-Pro Forma - CEOC Restricted").
Because not all companies use identical calculations, the presentation of
CEOC's Adjusted EBITDA, LTM Adjusted EBITDA-Pro Forma, and LTM Adjusted
EBITDA-Pro Forma - CEOC Restricted may not be comparable to other similarly
titled measures of other companies.
The following table reconciles net loss attributable to CEOC to Adjusted
EBITDA for the three months ended December 31, 2013 and 2012:



(In millions)                                         2013          2012
Net loss attributable to CEOC                         $ (1,049.0)   $ (506.2)
Interest expense, net of interest income              577.7         503.4
Income tax (benefit)/provision ^(a)                   (400.1)       (344.9)
Depreciation and amortization ^ (b)                   120.8         179.7
EBITDA                                                (750.6)       (168.0)
Project opening costs, abandoned projects and         23.8          6.4
development costs ^(c)
Acquisition and integration costs ^ (d)               (7.1)         3.9
Loss on early extinguishment of debt ^(e)             2.2           —
Loss attributable to noncontrolling interests, net of (8.1)         (0.3)
distributions ^(f)
Impairment of intangible and tangible assets ^ (g)    935.6         439.7
Non-cash expense for stock compensation benefits ^(h) 19.1          9.5
Gain on sale of discontinued operations ^(k)          —             (9.3)
Adjustments to include 100% of Baluma S.A.'s adjusted 9.7           —
EBITDA ^ (j)
Other items ^(m)                                      57.3          39.4
Other adjustments for failed sale impact              (5.6)         —
Adjusted EBITDA                                       $ 276.3       $ 321.3

The following table reconciles net loss attributable to CEOC to Adjusted
EBITDA for the years ended December31, 2013 and 2012, and net loss
attributable to CEOC to LTM Adjusted EBITDA-Pro Forma and LTM adjusted
EBITDA-Pro Forma - CEOC Restricted for the year ended December31, 2013.

(In millions)                                       2013          2012
Net loss attributable to CEOC                       $ (2,875.5)   $ (1,705.8)
Interest expense, net of interest income            2,129.8       1,982.3
Benefit for income taxes ^(a)                       (680.3)       (907.1)
Depreciation and amortization ^ (b)                 538.6         701.7
EBITDA                                              (887.4)       71.1
Project opening costs, abandoned projects and       67.1          41.2
development costs ^(c)
Acquisition and integration costs ^ (d)             13.4          5.8
Loss on early extinguishment of debt ^(e)           32.1          39.9
Net loss attributable to noncontrolling interests,  (6.7)         (4.2)
net of (distributions) ^(f)
Impairments of intangible and tangible assets ^(g)  1,954.4       1,175.9
Non-cash expense for stock compensation benefits    34.4          33.4
^(h)
Adjustments for recoveries from insurance claims    —             (6.6)
for flood losses ^(i)
Loss/(gain) on sale of discontinued operations ^(k) 0.7           (9.3)
Gain on sale on partial sale of subsidiary ^ (l)    (44.1)        —
Adjustments to include 100% of Baluma S.A.'s        9.0           —
adjusted EBITDA ^ (j)
Other items ^(m)                                    96.3          63.9
Other adjustments for failed sale impact            (5.6)         —
Adjusted EBITDA                                     1,263.6       $ 1,411.1
Pro Forma adjustments related to properties ^(n)    5.6
Pro Forma adjustment for estimated cost savings     74.8
yet-to-be-realized ^(o)
LTM Adjusted EBITDA-Pro Forma                       1,344.0
LTM Adjusted EBITDA-Pro Forma of CEOC's             (99.6)
unrestricted subsidiaries
LTM Adjusted EBITDA-Pro Forma - CEOC Restricted     $ 1,244.4

____________________

    Amounts include the provision for income taxes related to discontinued
    operations of $45.5 million for the three months ended December31,2012,
(a) and the provision for income taxes related to discontinued operations of
    $0.2 million and $50.1 million for the year ended December 31, 2013 and
    2012, respectively. There was no provision for income taxes related to
    discontinued operations for the three months ended December 31, 2013.
    Amounts include depreciation and amortization related to discontinued
    operations of $9.9 million for the three months ended December 31, 2012,
    and depreciation and amortization related to discontinued operations of
(b) $0.2 million and $29.0 million for the year ended December 31, 2013 and
    2012, respectively. There was $0.0 million depreciation and amortization
    related to discontinued operations for the three months ended December 31,
    2013.
    Amounts represent pre-opening costs incurred in connection with new
    property openings and expansion projects at existing properties, as well
    as any non-cash write-offs of abandoned development projects. Amounts
(c) include reserves related to the closure of Alea Leeds in March 2013, which
    are included in loss from discontinued operations of $15.8 million for the
    year ended December 31, 2013.There were no reserves related to
    discontinued operations for the three months ended December 31, 2013 and
    2012 or for the year ended December31,2012.
    Amounts include certain costs associated with acquisition and development
(d) activities and reorganization activities which are infrequently occurring
    costs.
    Amounts represent the difference between the fair value of consideration
(e) paid and the book value, net of deferred financing costs, of debt retired
    through debt extinguishment transactions, which are capital
    structure-related, rather than operational-type costs.
    Amounts represent minority owners' share of income/(loss) from the
(f) Company's majority-owned consolidated subsidiaries, net of cash
    distributions to minority owners, which is a non-cash item as it excludes
    any cash distributions.
    Amounts represent non-cash charges to impair intangible and tangible
    assets primarily resulting from changes in the business outlook in light
    of economic conditions, includes the follow amounts related to
    discontinued operations: an impairment charge of $0.3 million for the
(g) three months ended December 31, 2013, an impairment recovery of $9.2
    million for the year ended December 31, 2013, and an impairment charge of
    $121.8 million for the year ended December 31, 2012. There were no
    impairment charges related to discontinued operations for the three months
    ended December31,2012.
(h) Amounts represent non-cash stock-based compensation expense related to
    stock options and restricted stock granted to the Company's employees.
(i) Amounts represent adjustments for insurance claims related to lost profits
    during the floods that occurred in 2011.
    Amounts represent adjustments to include 100% of Baluma S.A. (Punta del
(j) Este) adjusted EBITDA as permitted under the indentures governing CEOC's
    existing notes and the credit agreement governing CEOC's senior secured
    credit facilities.
(k) Amount represents the gain recognized on the sale of the Harrah's St.
    Louis casino.
(l) Amounts represent the gain recognized on the sale of 45% of Baluma S.A.
    (Punta del Este) to Enjoy S.A.
    Amounts represent add-backs and deductions from EBITDA, whether permitted
    and/or required under the indentures governing CEOC's existing notes and
    the credit agreement governing CEOC's senior secured credit facilities,
    included in arriving at LTM Adjusted EBITDA-Pro Forma but not separately
    identified. Such add-backs and deductions include litigation awards and
    settlements, severance and relocation costs, sign-on and retention
(m) bonuses, permit remediation costs, gains and losses from disposals of
    assets, costs incurred in connection with implementing the Company's
    efficiency and cost-saving programs, business optimization expenses, the
    Company's insurance policy deductibles incurred as a result of
    catastrophic events such as floods and hurricanes, one time sales tax
    assessments and accruals, project start-up costs, and non-cash equity in
    earnings of non-consolidated affiliates (net of distributions),
    Amounts represent the estimated annualized impact of operating results
(n) related to newly completed construction projects, combined with the
    estimated annualized EBITDA impact associated with properties acquired
    during the period.
    Amount represents adjustments to reflect the impact of annualized run-rate
(o) cost savings and anticipated future cost savings to be realized from
    profitability improvement and cost-savings programs.



CAESARS ENTERTAINMENT RESORT PROPERTIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET INCOME/(LOSS) TO PROPERTY EBITDA
(UNAUDITED)
Property EBITDA is presented as a supplemental measure of CERP's performance.
Property EBITDA is defined as revenues less property operating expenses and is
comprised of net income before (i) interest expense, net of interest income,
(ii) provision for income taxes, (iii) depreciation and amortization, (iv)
corporate expenses, and (v) certain items that we do not consider indicative
of our ongoing operating performance at an operating property level. In
evaluating Property EBITDA you should be aware that, in the future, we may
incur expenses that are the same or similar to some of the adjustments in this
presentation. The presentation of Property EBITDA should not be construed as
an inference that future results will be unaffected by unusual or unexpected
items.
Property EBITDA is a non-GAAP financial measure commonly used in our industry
and should not be construed as an alternative to net income as an indicator of
operating performance or as an alternative to cash flow provided by operating
activities as a measure of liquidity (as determined in accordance with GAAP).
Property EBITDA may not be comparable to similarly titled measures reported by
other companies within the industry. Property EBITDA is included because
management uses Property EBITDA to measure performance and allocate resources,
and believes that Property EBITDA provides investors with additional
information consistent with that used by management.
The following table reconciles net income to Property EBITDA:



                         Three Months Ended December  Years Ended December 31,
                         31,
(In millions)            2013            2012         2013            2012
Net income/(loss)        $  (712.3)      $  6.8       $  (654.7)      $ 43.4
Income tax               (418.8)         7.8          (392.8)         21.9
(benefit)/provision
Income/(loss) before     (1,131.1)       14.6         (1,047.5)       65.3
income taxes
Other income, including  —               (0.2)        (0.1)           (1.0)
interest income
(Gain)/loss on early     37.1            (56.5)       (15.3)          (135.0)
extinguishment of debt
Interest expense         101.8           55.0         259.6           231.8
Income from operations   (992.2)         12.9         (803.3)         161.1
Depreciation and         38.4            47.8         156.9           192.8
amortization
Amortization of          14.8            14.7         59.1            59.0
intangible assets
Impairment of intangible 1,028.0         —            1,057.9         3.0
and tangible assets
Write-downs, reserves,
and project opening      4.7             7.8          15.4            21.5
costs, net of recoveries
Income on interests in
non-consolidated         (0.2)           (0.3)        (3.2)           (1.4)
affiliates
Corporate expense        10.5            23.6         47.3            80.3
Property EBITDA          $  104.0        $  106.5     $  530.1        $ 516.3



CAESARS ENTERTAINMENT RESORT PROPERTIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET INCOME/(LOSS) TO
ADJUSTED EBITDA AND LTM ADJUSTED EBITDA-PRO FORMA
(UNAUDITED)
LTM Adjusted EBITDA-Pro Forma is defined as Adjusted EBITDA further adjusted
to include Pro Forma adjustments related to properties and estimated cost
savings yet-to-be-realized.
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma are presented as
supplemental measures of CERPs performance and management believes that
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma provide investors with
additional information and allow a better understanding of the results of
operational activities separate from the financial impact of decisions made
for the long-term benefit of CERP.
Because not all companies use identical calculations, the presentation of
CERP's Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma may not be comparable
to other similarly titled measures of other companies.
The following table reconciles net income/(loss) to Adjusted EBITDA for the
three months ended December 31, 2013 and 2012.



                                               Three Months Ended December 31,
(In millions)                                  2013                2012
Net income/(loss)                              $   (712.3)         $   6.8
Interest expense, net of interest income       101.8               54.8
Income tax (benefit)/provision                 (418.8)             7.8
Depreciation and amortization                  53.2                62.5
EBITDA ^                                       (976.1)             131.9
Project opening costs, abandoned projects and  4.7                 4.4
development costs ^(a)
Gain on early extinguishment of debt ^(b)      37.1                (56.5)
Impairment of intangible and tangible assets ^ 1,028.0             —
(c)
Non-cash expense for stock compensation        0.4                 1.9
benefits ^(d)
Other items ^(e)                               0.7                 6.6
 Adjusted EBITDA                 $   94.8            $   88.3

The following table reconciles net income to Adjusted EBITDA for the periods
indicated, and reconciles net income to LTM Adjusted EBITDA-Pro Forma for the
last twelve months ended December31, 2013.

                                                      Years Ended December 31,
(In millions)                                         2013            2012
Net income                                            $  (654.7)      $ 43.4
Interest expense, net of interest income              259.5           230.8
Income tax (benefit)/provision                        (392.8)         21.9
Depreciation and amortization                         216.0           251.8
EBITDA                                                (572.0)         547.9
Project opening costs, abandoned projects and         9.5             6.3
development costs ^(a)
Gain on early extinguishment of debt ^(b)             (15.3)          (135.0)
Impairments of intangible and tangible assets ^(c)    1,057.9         3.0
Non-cash expense for stock compensation benefits ^(d) 0.9             1.1
Other items ^ (e)                                     12.2            26.2
 Adjusted EBITDA                        $  493.2        $ 449.5
Pro Forma adjustment for estimated cost savings       16.1
yet-to-be-realized ^(f)
Pro Forma adjustment for annualized resort fees ^(g)  2.7
Pro Forma adjustment for end of the Linq and Quad     $  8.5
disruption ^(h)
Pro Forma adjustment for Caesars Linq LLC^(i)         99.0
 LTM Adjusted EBITDA-Pro Forma          $  619.5

____________________

    Amounts represent pre-opening costs incurred in connection with new
(a) property openings and expansion projects at existing properties, as well
    as any non-cash write-offs of abandoned development projects.
    Amounts represent the difference between the fair value of consideration
(b) paid and the book value, net of deferred financing costs, of debt retired
    through debt extinguishment transactions, which are capital
    structure-related, rather than operational-type costs.
    Amounts represent non-cash charges to impair intangible and tangible
(c) assets primarily resulting from changes in the business outlook in light
    of economic conditions.
(d) Amounts represent non-cash stock-based compensation expense related to
    stock options and restricted stock granted to CERP's employees.
    Amounts represent add-backs and deductions from EBITDA included in
    arriving at LTM Adjusted EBITDA-Pro Forma but not separately identified.
    Such add-backs and deductions include severance and relocation, permit
(e) remediation costs, gains and losses from disposals of assets, costs
    incurred in connection with implementing the Company's efficiency and
    cost-saving programs, and non-cash equity in earnings of non-consolidated
    affiliates (net of distributions).
    Amount represents adjustments to reflect the impact of annualized run-rate
(f) cost savings and anticipated future cost savings to be realized from
    profitability improvement and cost-savings programs.
    Represents incremental adjusted EBITDA attributable to the annualized run
(g) rate impact of adjusted EBITDA of resort fees introduced for Las Vegas
    casino properties on March 1, 2013, based on actual resort fees received.
    Represents the estimated incremental adjusted EBITDA attributable to the
(h) projected recovery of lost adjusted EBITDA due to visitation reduction to
    Harrah's Las Vegas and the Flamingo due to construction at the Quad and
    the Linq.
    As per the credit agreement, consists of a proforma add back of the lower
(i) of $24.8 million per quarter or the difference between recognized adjusted
    EBITDA and $24.8 million per quarter. Caesars Linq LLC had no adjusted
    EBITDA during the year ended 2013.



CAESARS GROWTH PARTNERS, LLC
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO
CAESARS GROWTH PARTNERS, LLC TO PROPERTY EBITDA
(UNAUDITED)
Property EBITDA is presented as a supplemental measure of CGP LLC's
performance. Property EBITDA is defined as revenues less property operating
expenses and is comprised of net income/(loss) before (i) interest expense,
net of interest income, (ii) (benefit)/provision for income taxes, (iii)
depreciation and amortization, (iv) corporate expenses, and (v) certain items
that the Company does not consider indicative of CGP LLC's ongoing operating
performance at an operating property level. In evaluating Property EBITDA you
should be aware that in the future, CGP LLC may incur expenses that are the
same or similar to some of the adjustments in this presentation. The
presentation of Property EBITDA should not be construed as an inference that
CGP LLC's future results will be unaffected by unusual or unexpected items.
Property EBITDA is a non-GAAP financial measure commonly used in CGP LLC's and
in the Company's industry and should not be construed as an alternative to net
income/(loss) as an indicator of operating performance or as an alternative to
cash flow provided by operating activities as a measure of liquidity (as
determined in accordance with GAAP). Property EBITDA may not be comparable to
similarly titled measures reported by other companies within the industry.
Property EBITDA is presented because management uses Property EBITDA to
measure performance and allocate resources, and believes that Property EBITDA
provides investors with additional information consistent with that used by
management.
The following tables reconcile net income/(loss) attributable to CGP LLC to
Property EBITDA for the periods indicated.



                        Consolidated       Combined
                        October 22, 2013   January 1, 2013
                                                             Year Ended
(In millions)           through            through
                                                             December 31, 2012
                        December 31, 2013  October 21, 2013
Net income/(loss)       $    (127.5)       $    95.2         $    126.8
attributable to CGP LLC
Net (income)/loss
attributable to         (4.6)              (3.3)             0.6
noncontrolling
interests
Net (income)/loss, net  (132.1)            91.9              127.4
of income taxes
Provision for income    2.6                50.3              66.4
taxes
Income/(loss) before    (129.5)            142.2             193.8
income taxes
Other income, including (35.8)             (138.8)           (147.0)
interest income
Loss on early           0.9                0.7               —
extinguishment of debt
Interest expense        11.9               39.7              41.7
Income/(loss) from      (152.5)            43.8              88.5
operations
Depreciation and        8.8                35.1              32.2
amortization
Write-downs, reserves,
and project opening     2.0                1.0               5.5
costs, net of
recoveries
Transaction costs       14.6               —                 —
Change in fair value of
contingently issuable   138.7              —                 —
membership units
Change in fair value of
contingent              2.9                50.0              —
consideration
Acquisition and         0.1                0.5               4.1
integration costs
Property EBITDA         $    14.6          $    130.4        $    130.3



CAESARS GROWTH PARTNERS, LLC
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET INCOME/(LOSS) TO
ADJUSTED EBITDA AND LTM ADJUSTED EBITDA-PRO FORMA
(UNAUDITED)
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma are presented as
supplemental measures of CGP LLC's performance and management believes that
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma provide investors with
additional information and allow a better understanding of the results of
operational activities separate from the financial impact of decisions made
for the long-term benefit of CGP LLC.
Because not all companies use identical calculations, the presentation of CGP
LLC's Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma may not be comparable
to other similarly titled measures of other companies.



                        Consolidated       Combined
                        October 22, 2013   January 1, 2013
                                                             Year Ended
(In millions)           through            through
                                                             December 31, 2012
                        December 31, 2013  October 21, 2013
Net income/(loss)       $    (127.5)       $    95.2         $    126.8
attributable to CGP LLC
Interest expense from
related party, net of   (23.9)             (98.8)            (103.4)
interest income
Provision for income    2.6                50.3              66.4
taxes
Depreciation and        8.8                35.1              32.2
amortization
EBITDA ^                (140.0)            81.8              122.0
Project opening costs,
abandoned projects and  2.0                1.0               5.5
development costs ^(a)
Loss on early
extinguishment of debt  0.9                0.7               —
^(b)
Net income/(loss)
attributable to         (4.6)              (3.3)             0.6
noncontrolling interest
Change in fair value of
contingently issuable   138.7              —                 —
membership units
Change in fair value of
contingent              2.9                50.0              —
consideration
Acquisition and         0.1                0.5               4.1
integration costs
Non-cash expense for
stock compensation      17.8               13.2              11.4
benefits ^(d)
Other items ^(e)        15.0               2.0               1.7
 Adjusted $    32.8          $    145.9        $    145.3
EBITDA

____________________

    Amounts represent pre-opening costs incurred in connection with new
(a) property openings and expansion projects at existing properties, as well
    as any non-cash write-offs of abandoned development projects.
    Amounts represent the difference between the fair value of consideration
(b) paid and the book value, net of deferred financing costs, of debt retired
    through debt extinguishment transactions, which are capital
    structure-related, rather than operational-type costs.
    Amounts represent non-cash charges to impair intangible and tangible
(c) assets primarily resulting from changes in the business outlook in light
    of economic conditions.
(d) Amounts represent non-cash stock-based compensation expense related to
    stock options and restricted stock granted to CGP's employees.
    Amounts represent add-backs and deductions from EBITDA included in
    arriving at LTM Adjusted EBITDA-Pro Forma but not separately identified.
    Such add-backs and deductions include severance and relocation, permit
(e) remediation costs, gains and losses from disposals of assets, costs
    incurred in connection with implementing the Company's efficiency and
    cost-saving programs, and non-cash equity in earnings of non-consolidated
    affiliates (net of distributions).
    Amount represents adjustments to reflect the impact of annualized run-rate
(f) cost savings and anticipated future cost savings to be realized from
    profitability improvement and cost-savings programs.



SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS TO PROPERTY EBITDA FOR THE COMBINATION OF:
HARRAH'S NEW ORLEANS
THE QUAD
BALLY'S LAS VEGAS
THE CROMWELL
(UNAUDITED)
JCC Holding Company II, LLC and its subsidiaries (collectively known as
"Harrah's New Orleans"), 3535 LV Corporation ("The Quad"), Parball Corporation
and its subsidiaries (collectively known as "Bally's Las Vegas") and Corner
Investment Company, LLC and its subsidiaries, (collectively known as "The
Cromwell") are direct wholly-owned subsidiaries of Caesars Entertainment
Operating Company,Inc. ("CEOC"), which is a direct wholly-owned subsidiary of
Caesars Entertainment Corporation ("Caesars").
Harrah's New Orleans owns and operates an entertainment facility located in
downtown New Orleans, Louisiana, composed of one casino, a hotel, multiple
restaurants, and retail outlets. The Quad and Bally's Las Vegas each own and
operate entertainment facilities located on Las Vegas Boulevard, in Las Vegas,
Nevada. The Cromwell is currently a development project that is renovating the
casino and hotel space on Las Vegas Boulevard, which had previously operated
as Bill's Gamblin' Hall and Saloon. The Cromwell is expected to open in May
2014.
Harrah's New Orleans, The Quad, Bally's Las Vegas, and The Cromwell are herein
referred to as the "Purchased Properties".
Caesars executed a Transaction Agreement dated March 1, 2014, pursuant to
which, for the consideration set forth in the Transaction Agreement, CEOC
will sell to Caesars Growth Partners, LLC (a joint venture between Caesars and
Caesars Acquisition Company) the Purchased Properties and enter into the other
agreements and transactions contemplated by the Transaction Agreement. While
we have not yet completed the financial statements for the Purchased
Properties for the year ended December 31, 2013, set forth below are expected
financial results. Additionally, the table below provides a reconciliation of
estimated net income attributable to the Purchased Properties, its most
comparable measure in accordance with GAAP, to estimated Adjusted EBITDA for
the year ended December 31, 2013.



                                                       2013 (Estimated Range)
(In millions)                                          Low           High
Casino revenues                                        $  470.0      $  500.0
Net revenues                                           680.0         720.0
Adjusted EBITDA                                        145.0         175.0
Net income attributable to Purchased Properties        $  2.0        $  68.0
Interest expense, net of interest capitalized and      33.0          26.0
interest income
Provision for income taxes                             24.0          16.0
Depreciation and amortization                          62.0          52.0
  EBITDA                                   121.0         162.0
 Project opening costs, abandoned projects and         7.0           3.0
 development costs
 Non-cash expense for stock compensation benefits      2.0           —
 Other non-recurring or non-cash items                 15.0          10.0
  Adjusted EBITDA                        $  145.0      $  175.0

 

The amounts above exclude any management fees that will be charged to the
Purchased Properties in connection with management agreements to be entered
into pursuant to the Transaction Agreement, as such management fees were not
charged to the Purchased Properties during 2013. These management fees are
expected to include a base fee of 2% of net operating revenues, and an
incentive fee of 5% of EBITDA. Under the Transaction Agreement, Caesars Growth
Partners, LLC will purchase 50% of the management fees and 50% will be
retained by CEOC or its subsidiaries.

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SOURCE Caesars Entertainment Corporation

Website: http://www.caesars.com
Contact: Gary Thompson - Media, Caesars Entertainment Corporation, (702)
407-6529, or Jennifer Chen - Investors, Caesars Entertainment Corporation,
(702) 407-6407
 
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