Hello and welcome to today's webcast. My name is Teresa and I will be your event specialist today. All lines have been placed on mute to prevent any background noise. And please note that today's webcast is being recorded. [Operator Instructions] It is now my pleasure to turn today’s program over to Jacqueline Beato, Senior Vice President of Finance. Jacqueline, the floor is yours.

Thank you. Good afternoon and welcome to the Caesars Entertainment third quarter 2015 results conference call. Joining me today from Caesars Entertainment Corporation are Mark Frissora, Chief Executive Officer; and Eric Hession, Chief Financial Officer. A copy of our press release, certain earnings presentation slides and a replay of this conference call are available in the Investor Relations Events and Presentation section on our website at caesars.com. The slides are available for download on the Events and Presentation section and will accompany Mark and Eric's prepared remarks for those of you on the phone they would like to follow along. Also, please note that, prior to this call, we furnished a copy of this afternoon’s press release to the SEC in a Form 8-K and will shortly filed almost recent Quarterly Report on Form 10-Q. Before we get on our way, I’d like to call your attention to the following information on Slide 1 through 4, which we incorporate by reference. The forward-looking statements Safe Harbor disclaimer in our press release and other public documents cover this call and simultaneous webcast at caesars.com. This call the webcast and its replay are the property of Caesars Entertainment Corporation It's not for rebroadcast or used by any other party without the prior written consistent of Caesars Entertainment Corporation. If you do not agree with these terms, please disconnect now. By remaining on the line, you agree to be bound by these terms. Today's call will include discussion of certain non-GAAP financial measures, including property EBITDA, adjusted EBITDA and certain supplemental financial information. Reconciliations of net income and loss to property EBITDA and net income and loss to adjusted EBITDA can be found in the tables of our press release. As a reminder, Caesars Entertainment Corporation is a holding company. Comprise mainly of…

Thanks Jackie. The factors that drove the company's tremendous first-half performance persisted through the third quarter and I am pleased to report the Caesars delivered another strong quarter and three months ended September 30. Starting on Slide 6, net revenues for continuing CEC, which as reminder excludes CEOC, increased 12% to $1.1 billion. Adjusted EBITDA grew 51% to $317 million. Adding CEOC to CEC on a supplement basis net revenues across the enterprise increased 5% year-over-year to $2.3 billion. The exceptional business performance is driven by higher gaming and hotel revenues, excellent labor and marketing productivity improvements as well as continued strong performance in Caesars Interactive Entertainment social and mobile games franchise. Gaming revenue increases were driven by a full quarter of Horseshoe Baltimore results compared with a partial quarter last year and a favorable year-over-year hold. The renovation of a LINQ Hotel and Casino, the expansion of resort fees across all properties and improved pricing power at our Las Vegas hotels to better yield management led to a strong growth in the hotel category. These revenue drivers coupled with ongoing marketing and operational efficiencies and improved customer mix in hotel outlets led to a 43% year-over-year increase in adjusted EBITDA to $630 million. Adjusted EBITDA margins rose 710 basis points to 27% our highest quarterly EBITDA margin system wide since 2007. Through the first nine months of 2015 we have delivered on our stated objectives to produce strong EBITDA margins and our properties continue to produce the highest margins on the strip. We also increased our net revenue share on the strip. Outperforming our peers and outpacing market growth these results are a testament to our teams focus on an effective execution of our cost control efforts as well as the performance of our new assets. We plan to…

Thank you, Mark. I’ll first start with continuing CEC’s consolidated results for the third quarter followed by a review of the company’s reportable segments and then discuss the supplemental information we have provided on our website which included CEOC’s third quarter performance as well as continuing CEC plus CEOC’s results. Slide 17 summarizes continuing CEC’s results which do not include our deconsolidated subsidiary CEOC. For the third quarter of 2015 continuing CEC net revenues increased 12% to $1.1 billion, adjusted EBITDA grew 51% to $317 million and margins improved 709 basis points. As Mark noted earlier revenue performance was driven by four quarter of Horseshoe Baltimore results, strength in hospitality offerings particularly in the hotel vertical. Mainly due to resort fees, driving higher cash ADR favorable year-over-year whole and continued organic growth in CIE’s social and mobile games business. The year-over-year improvement in EBITDA was primarily attributable the revenue increases, marketing and operational efficiency and improved hotel customer mix. As we mentioned in our press release Caesars Entertainment accrued $966 million of commitments related to the first lean RSAs. As you may recall we announced a few months ago the CEOC have secured the support of its largest and most senior creditor consistencies, representing holders of more than 80% of CEOC’s first lean bank debt and first lean notes. Slide 18, summaries the performance of Caesars Entertainment Resorts Properties. Third quarter net revenues grew 1% year-over-year to $542 million due to strong hotel performance driven by resort fees and improved hotel yielding, but was partially offset by a decline in entertainment revenues due to a lighter show calendar versus prior year. Adjusted EBITDA increased 28% year-on-year to $157 million, EBITDA margins expanded 602 basis points due to marketing and operational efficiencies improved hotel customer mix and favorable property taxes. There…

Thank you, Eric. If everyone can please turn to Slide 26, we are very pleased with our third quarter results. Though gaming volumes, particularly at regional properties have been under pressure as result of marketing program changes, these adjustments have driven improvements in gaming win and overall profitability. The investments we have made in enhancing our hospitality assets are clearly paying off. With improved pricing power of our hotels and better customer mix in hotel and food and beverage outlets. We also continue to realize benefits from our cost saving initiatives. Selectively this resulted in strong year-over-year EBITDA margin performance for the third consecutive quarter. As we closed out 2015 I believe we are well positioned to sustain this momentum. We are on track to achieve or exceed our previously stated goal of generating an incremental $250 million to $300 million of EBITDA from cost savings and EBITDA enhancing initiatives inclusive of CEOC. Further, CEOC is on page to meet or exceed its published EBITDA target of $1.024 billion this year. As far October, results demonstrated another strong months of performance driven by hospitality revenues with Las Vegas hotel revenues up double-digits. Turning now to Slide 27, as we move forward we are focused on enhancing revenue and driving productivity gains to further improve margins and cash flow while maintaining high levels in employees and customer satisfaction. In the most recent quarter, we have seen an improvement in customer satisfaction a very important measurement for us. This is in part due to our incentive platform that ties employee compensation to the overall customer experience. While the senior management team and I are in process of finalizing with the development of our strategic architecture for the business. We have identified a few cornerstone initiatives that will play pivotal role in achieving…

[Operator Instructions] Your first question comes from the line of David Farber. Your line is open.

Hi, guys how are you.

Good.

Very good, I have three questions. First on CERP, I just wanted to talk again about the margins they were up I don’t know some four or five season of basis points since 2013, 2014 obviously. Just curious what do you think the biggest contributors are to the margin improvement on the OpEx line? How do you see that going forward and then I had a couple of follow-ups? Thanks.

Again, we look at the combination of factors, but is kind of equally balance between the marketing spending efficiency that were getting coupled with the labor productivity at the property levels. So those two things kind of property represent 80% of that we also that some year-over-year improvements in margin due to some of the properties in CERP performing better because it had time to perform if you will. So that’s been an additional point. Eric anything to add to that.

The only thing I’d add Mark is that David as you know those CERP properties are very large properties with substantial hotels generally speaking and benefited from the increase in ADR and the associated flow through. As you know with the demand particularly coming into Las Vegas for the FIT and Group segment that’s enabled properties of large hotels to be able to increase their ADRs and that’s have great flow through. And then to respond your second comment we absolutely believe these margins are sustainable going forward and we will be driving to grow that through the initiatives that Mark mentioned focusing on the continual improvement environment.

Very good. You touched upon some of the targeted room product investments in Las Vegas and maybe just tacking on to what you just mentioned Eric, given some of your reason project that have been finished. Can you may be just walk us through how you are thinking about maybe return on investment or any expectations you have or just color around how some of the returns have been met with respect to link or any other properties you’ve done in the hotel side of Las Vegas and then I had just two more? Thanks.

Sure, David. So we as you know during the recession we had pull back on our room renovation projects and then recently ramp those up in 2013 and into 2014, completing a few hotel towers particularly the valley south tower and most notably the link and its entirety and what we’re realizing is that the customers that are coming to Las Vegas are absolutely willing to spend additional dollars per hotel night just stay in a renovated room and they will pay an incremental amount that provides a very solid return to us. So without getting into return specific numbers you can understand from our perspective that incremental ADR per room night over a period of time since we sold the room nights running in the mid-90s of occupancy generate substantial return. And from a risk perspective renovating a hotel room given that we do them continuously as relatively low.

In fact, if I can just add that when we look at the last years of capital projects and to a detailed review which ones have had the highest returns for us and represent the low risk it is a renovation of our hotel room and Vegas its applicably high payout and we get ROI eyes of 35%, 40% on average which are very high returns as you might imagine and it’s because that in Vegas you can hold would say higher price typically and we can under index versus our competition for the last four, five years and we are still under index. If we look at our product you compare to theirs, our pricing isn’t where it needs to be, given that we actually have comparable facilities but the room products not quite up to snuff. So we think that’s big upside forces we move forward.

That’s helpful. Just CEOC for a moment you briefly touched up you are phase or potentially exceeding what was budgeted I guess couple of quarters ago at this point. What’s driving our performance there is at the top line is at the cost side and then may be just very broadly talk about your expectations for those regional businesses in 2016. I know you don’t give guidance but just broad expectations and then I just had one big picture questions and that’s it. Thanks.

Yes, broadly speaking David I would say that it has been more focused on the cost side both balance between our marketing initiatives and our operational initiative. There have been upsides on the CEOC side in terms of the hotel performance in number of markets. But CEOC is also through its ownership of Caesars Palace have been impacted by the decline in the VVIP business. Going forward, we don’t provide guidance but as we are working our way through the planning process for next year. We are assuming relatively modest revenue growth and we are continuing to focus on the cost side to ensure that we are able to achieve our plans, if we are fortunate enough to have the economy in such a state that there is tailwind in excess of what we are planning for, then we will be able to really see exceptionally strong flow through because we will make sure that our cost structure, which is entirely controllable is very tight.

Very good. Just real quick I mean since we spoke last obviously a competitor has announced a REIT and we have maybe another one with GLPI. I guess I am just curious big picture any thoughts around does the value creation change as there’s more REIT’s in the gaming land space at all any thoughts there? And then that’s it from me. Thanks.

Yes, unfortunately David, we are not in a position to comment on that due to the restructuring at this time?

Okay, thanks.

And your next question comes from the line of Susan Berliner. Your line is open.

Good afternoon.

Hi, Susan.

I guess I wanted to start, I know you guys talked a lot about room renovations and I was trying to, I know you haven’t announced anything for next year. But I was trying to get an idea of what kind of renovations you are talking about, are you talking about just kind of soft cause and any sort of magnitude and I guess secondly, Eric I was wondering if you could go through the CapEx spend because even though CERP came in higher than we expected. I am looking for some cash flow, I was kind of wondering if CapEx that was higher than we had modeled?

We kind of announced if you look at some of those slides, what projects we be doing next year, specifically in Vegas, so there are quite a few projects, we mentioned that why should in the progress flow for next year. And I don’t know if Eric, if you want to mention any another but goes for kind of the bigger ones, bigger - any big increase at all in capital spending. There is no plan at all to change if you will the way we spend capital; we are focused on spending at the narratives that we think have the highest returns. Eric.

Yes, I just say we have a couple of large projects rolling off. As you are aware the Atlantic City convention center and then the linked projects had considerable CapEx spend this year. As Mark mentioned, reallocating a fair portion of that to room rent innovation projects we believe is the next step forward. We mentioned some plans to renovate substantial room at Paris and Hollywood, the Harrah's Hotel Tower that will be starting later this year, but rolling into next year and then the Roman Tower here at Caesars will come fully online next year. From a CapEx standpoint for CERP we continue to project in that $130 million to $200 million range and that should be consistent with the prior guidance that we have provided.

Will be CapEx spend be in guess in the Qs after the quarter?

Sorry I didn’t get. Can you repeat your question?

Sure, I guess I was just wondering if the CapEx spend per I guess entity will be in their respective Qs?

Yes, it will be there.

Okay. And then just turning to I guess CES I know you guys had set it up last year around this time and I know there have been talk about you potentially looking to I didn’t know if it was kind of reset annually, if you can give us any update on how that’s going or fits in place already?

Yes, for those not as familiar I think you are talking about the reset of the allocation percentages, is that correct.

Yes.

Yes, we had discussions and we did reset the percentages earlier this year between the three subsidiaries.

And how would we know how they reset, is that going to be in the respective Qs?

The CGP Q will have the CGPH percentage and then - so it will be there.

Okay, great. Thank you.

Sure.

And we have no further questions in queue at this time.

Great. Listen, thank you operator and thanks everyone for listening in on call. We look forward to updating you on our future plans and initiatives to deliver stakeholder value. Thanks again.

Thanks again for joining. This concludes our webcast and you may now disconnect. Have a great day.